CSR Report 2014

Corporate Social Responsibility Report

Synergy, Innovation, and Speed

SG Holdings Group Corporate Philosophy"Trust, Create, Challenge"
The SG Holdings Group will:- Earn the trust of customers and society and grow together.
- Create new value and contribute to social development.
- Always take on the challenges presented to us, pursuing all possibilities.

2

SG HOLDINGS GROUP CSR Report 2014

CONTENTS
4

Business Outline

8

Message from the Chairman and President

10 Highlight 1

Corporate Responsibility toward Social Infrastructure:
Large-scale disaster response.
The future of BCP (Business Continuity Plan)/
BCM (Business Continuity Management)
as seen through dialogue with stakeholders
14 Highlight 2

Growing the Company through the Strength of Women:
Initiatives to promote the activities of women
16 CSR Activities Report
18 Safety
23 Environment
30 Society
36 Employees
39 Management
42 Foundation Activities
44 Global Group Company Business and CSR Activities
46 Third Party Opinions Regarding the SG Holdings Group"CSR Report 2014"
47 CSR Report 2013 Questionnaire Results

Editing Policy
Two versions of the SG Holdings Group CSR Report have been published: aprinted version (significant topics) and an online version (a detailed report). The
printed version of CSR Report 2014 is intended for the general public and ourmany stakeholders, while the online version is for professional researchers of theenvironment and CSR. The printed version describes initiatives we particularly
want to introduce to readers. The online version contains all information related
to our group CSR activities, including numerical data.
Highlights this year include initiatives concerning important topics within the
SG Holdings Group. Additionally, the report page introduces the main initiatives
we are focusing on, and includes comments we have received from experts inrelated fields. Each activity is based on and classified by the seven core subjectsof ISO26000, providing guidelines for international standards.

Reference Guidelines
Ministry of the Environment, "Environmental Reporting Guidelines 2007"
GRI, "Sustainability Reporting Guidelines (3rd Edition)"

Websitehttp://www.sg-hldgs.co.jp/csr/

Report Period
March 21, 2013 - March 20, 2014
* When reporting periods differ, clarification will be provided as needed.

Organizations Subject to Reporting
SG Holdings Group Companies and Foundations* Group-wide business initiatives are referred to as SG Holdings Group initiatives.
Activities related exclusively to specific companies and organizations are clarified
as needed.
SG HOLDINGS GROUP CSR Report 20143

Business Outline

SG Holdings Group:
Connecting People, Society, and the Future
Company Outline
SG Holdings Co., Ltd. is the pure holding company of the SG Holdings Group, which implements management strategies and administration
functions for the entire group. Each group company focuses on a specific area of expertise.
Name:

SG HOLDINGS CO., LTD.

Established:

March 21, 2006

Business Content:Group management strategies, administration, and related business.

Head Office Location:

68 Tsunoda-cho, Kamitoba, Minami-ku, Kyoto, Japan

Chairman and President: Eiichi Kuriwada
Total assets:

559,469 million yen

Net assets:

179,127 million yen

Capital:11,882 million yen

Consolidated Performance(100 millions of yen)(100 millions of yen)

10,000

8,000

8,881

8,943

8,811

608
519

633
500

643
503

8,713
28

433

652
498

303

295

7,752

7,809

7,664

7,534

7,094

200

100

2009

2010

Delivery Business

2011

2012

Logistics Business

Operating revenue

Operating income(100 millionsof yen)(100 millionsof yen)10,000500

02013 (FY)Real Estate Business

Operating revenue

Operating income(100 millionsof yen)(100 millionsof yen)750

10Real estate
Logistics
Delivery

300

2,000

0

Other

Operatingrevenueby segment

Operating income

310

6,000

4,000

400

583

548

123
302

500

8,350

Operating revenue

Other

Operating income(100 millionsof yen)(100 millionsof yen)200

Note: Since fiscal 2013 we have changed our
calculations per segment to cover fourbusinesses, including real estate, and adjusted
the figures for fiscal 2012 accordingly.
The figures for fiscal years up to 2011 arebased on the previous method of the threebusiness segments; delivery, logistics andother.

50

Operating revenue

Operating income(100 millionsof yen)(100 millionsof yen)

750

50
43

8,000

263

363

400

600

8

160

40

600

300

450

6

120

30

450

200

300

4

80

20

300

31

6,000

4,000
7,534

2,000

5

40
31

30

20
652

7,094

100

150

498

548

2

123

40

10

150

0
2013 (FY)

0

583

10

5

0

0
2012

4

2013 (FY)SG HOLDINGS GROUP CSR Report 2014

-0.1

0
2012

0
2013 (FY)

0

28

2012

2012

0
2013 (FY)Main Domestic Companies

Delivery Business(1) Sagawa Express Co., Ltd.
Providing total logistics solutions in addition to a wide range of delivery activities
with a particular focus on express delivery.

(2) SG Moving Co., Ltd.
Offers various installation and moving related services, including large furnitureand home appliances.

(3) World Supply Co., Ltd.
Offers delivery agency services to department stores, etc., 3PL*, and cooperative
food delivery services.
* A service that offers comprehensive solutions through undertaking all customer logistics operations.

Logistics Business(4) Sagawa Global Logistics Co., Ltd.
Optimizes all aspects of the supply chain through 3PL operations, logistics
processing, etc.

(5) Sagawa Logistics Partners Co., Ltd.
Offers total logistics support, ranging from inspection and needle detection, tostorage and logistics processing.

(6) SGH Global Japan Co., Ltd.
Offers comprehensive international transport services, from international logistics
and shipping storage to domestic transport.

Real Estate Business(7) SG Realty Co., Ltd.
Provides management and lease business for real estate facilities owned by theGroup.

(8) SG Assetmax Co., Ltd.
Makes real estate investments focusing on logistics facilities owned by the SG
Holdings Group.

Other(9) Sagawa Advance Co., Ltd.

(13) SG Fielder Co., Ltd.

Offers general services such as insurance agency, travel

Offers outsourcing services of personnel for warehousebusiness, and retail business.

related business.

(10) SG Motors Co., Ltd.

(14) SG Expert Co., Ltd.

Offers various services including vehicle maintenance

Brings together SG Holdings Group administration operations,

support, new and used car sales, and body production.

such as general affairs, human resources, and accounting.

(11) SG Systems Co., Ltd.

(15) Nouvelle Golf Club Co., Ltd.

An all-in-one logistics IT company offering system development

Manages a golf course in Oamishirasato, Chiba prefecture,and operation services, including a package tracking system.

which respects and is in harmony with nature.

(12) Sagawa Financial Co., Ltd.

(16) Sagawa Foresty Co., Ltd.

Offers a variety of financial services, including the "e-collect"

Cultivates, preserves, and manages forests owned by the

COD service.

Group in Kochi and Tokushima prefectures.

SG HOLDINGS GROUP CSR Report 20145

Business Outline

Our Global Network:
Connecting the World through Group Synergy

Customer accounts

1 million

China
Korea

India

TaiwanThailandLaos
Philippines

Cambodia
Vietnam
Malaysia
Singapore

Express packages handled

1,200 million

Indonesia

Vehicles in fleet(delivery trucks)

25,662

International Group Companies
SG Holdings Global Pte. Ltd.
The controlling company for the international business of theGroup that provides planning for international business, strategy
formulation, fund raising, funding of international locations, andother management operations.
z Tianjin Poly-Sagawa International Trading Co., Ltd.
Focuses on trade operations and forwarding (*1).
Storage agency business for metal parts, automobiles, etc. isconducted in our company-owned bonded warehouse.
*1 Forwarding: Agency work such as transport and customs procedures
related to import/export for international business.

z Shanghai Poly-Sagawa Logistics Co., Ltd.
Focuses on courier (*2), forwarding, and 3PL business to meetcustomer demands.
*2 Courier (International Courier Service): A service where documents andparcels, etc. are sent in a short period of time, using international air mail.

z Poly-Sagawa Logistics Co., Ltd.
Focuses on forwarding and logistics processing.
Sales branches are located in Beijing, Dalian, Tianjin, Qingdao,
and Guangzhou.

6

SG HOLDINGS GROUP CSR Report 2014z Shanghai Dazhong Sagawa Logistics Co., Ltd.
Focuses on express home delivery within Shanghai.
Many of the packages handled are mail order products. COD
service and operate depots within the city are also provided.
z Sagawa Silox Shanghai Co., Ltd.
Features a logistics center located in Shanghai's Waigaoqiao Free
Trade Zone, where various tasks are performed for textile goods,
including spec confirmation, needle detection, price tag attachment,
storage, high-speed sorting, store-specific classification, and kitting.
z Sagawa Silox Qingdao Co., Ltd.
Features a 12,540 square meter, company-owned warehousewithin the Qingdao Free Trade Zone, where various tasks are
performed for textile goods, including spec confirmation, needle
detection, price tag attachment, storage, high-speed sorting,store-specific classification, and kitting.
z Sagawa Express (H.K.) Co., Ltd.
Focuses on forwarding, warehouse logistics, transport, courier
tasks, and moving.
z Sagawa Express International Taiwan Corp.
Focuses on warehouse logistics, ocean transport, courier tasks,
etc. Company-owned trucks are also used for small lot collection
and delivery in the Taipei area.
z Sagawa Logistics Korea Co., Ltd.
Focuses on courier and forwarding operations, but also offersinternational, inter-modal transport services.

Global networkcountries
47andregions

Overseas corporations/offices
AgentsUSA

HawaiiConsolidated employees

International offices

1,376

74,000(as of March 2014)z Sagawa Express Philippines, Inc.
Offers a comprehensive range of transport services, including
truck transport. Also transports heavy goods, such as building
materials which are needed as a part of Japanese Official
Development Assistance.

z Sagawa Express Singapore Pte. Ltd.
Focuses on courier, forwarding and warehousing logistics.

z Sagawa Global Logistics (Philippines) Inc.
Warehousing and storage operations.

z Amgas Asia Pte. Ltd.
Provides transport of petrochemical products.

z Sagawa Express (Thailand) Co., Ltd.
Warehousing and storage operations.

z Pt. Sagawa Express Indonesia
Focuses on forwarding, warehousing, and courier operations.
Offers services to Japanese corporations in the Jakarta region.

z Sagawa Express Thai Container
Distribution Service Co., Ltd.
Uses a 21,000 m2 company-owned warehouse for warehousing,courier operations, forwarding, etc.
z Sagawa Express Vietnam Co., Ltd.
Offers a comprehensive selection of transport services, ranging
from forwarding to truck transport. Also features a storage
warehouse for logistics processing operations.
z Sagawa Global Logistics (Malaysia) Sdn. Bhd.
Focuses on forwarding. Exclusively made up of local staff
members, and offers services rooted in the local community.
z Sagawa Customs Brokerage (Malaysia) Sdn. Bhd.
Provides agency services for export and import customs
procedures.

z Ameroid Logistics(s) Pte. Ltd.
Provides services to support forwarding, such as domestictransport and warehousing, in Singapore.

z SG Sagawa USA, Inc.
Handles mail-order cargo and provides such services as courier
operations, warehousing and international freight transport
between corporations via air and ocean on the outskirts of Los
Angeles, California.
z Sagawa Express Hawaii, Inc.
Provides services such as inland transport and shipment ofsouvenirs and mail-order goods to Japan, as an outsourcing
agent.
z Wuxi Feisu Logistics Information Technology Co., Ltd.
Joint venture company that provides development and sales oflogistics and mail-order ordering systems within China.

SG HOLDINGS GROUP CSR Report 20147

Message from the Chairman and President

We aim to develop sustainability, and to
become a corporation people need everyday
To achieve continued growth, our corebusinesses must contribute to society

required to provide solutions that select and combine services
according to the needs and characteristics of our customers.
In doing this it's important to establish businesses from a

Fiscal 2013 marked the beginning of our new mid-termlong-term perspective, and to adapt to provide new value-

management plan, called the Third Stage Plan. The slogan foradded services that take advantage of our Group synergy. We

this plan is "Synergy, Innovation, and Speed," and our new

believe that we were able to make strategic moves during fiscal

Group management vision is "Creating new value by utilizing

2013 for the following fiscal year, such as strengthening ourmanagement resources and deepening cooperation inside andorganization and network, and providing new solutions in

outside of the Group, while aiming to strengthen ourour logistics business. We would like to solve various social

management foundation and achieve lasting growth." Withproblems through focusing our efforts even further.

this vision, we continue to tackle various initiatives in orderto build a healthy corporation that can respond to large-scale
structural changes, such as changing demographics andglobalization.
In order to achieve lasting growth mentioned in our

Significant CSR issues include
not only safety and the environment,
but changing demographics

management vision, our Group must be held in high regard

In fiscal 2013 we began sharing the safe driving experienceand seen as necessary by citizens. How necessary are our core

and knowledge we constantly pursue as a logistics company

businesses to everyone? It's important that our customers feelwith other corporations, in order to improve overall trafficthat without us their lives would be less convenient.

safety. In addition to environmental initiatives we have taken

Contributing to society through our core businesses is ourin the past, such as introducing natural gas trucks with a low

first priority, and this way of thinking forms our fundamental

environmental impact, we have continued our environmental

CSR principle.

preservation efforts as a value chain, such as implementing

We play a critical role in logistics, one part of the

carbon offsets using CO2 emissions credits.

infrastructure of society. Like blood flowing in the body, we

Furthermore, Japan is currently struggling with amust continue to offer services without interrupting the flow

decreasing birthrate and aging population, a very significant

of logistics. In other words, we must earnestly meet the needs

issue. It's estimated that there will be significant changes to theof our customers and continue to quickly, carefully, anddemographic composition by age, but there is no question thatcourteously deliver packages. In order to continue to do this, I

the young male demographic, which until now has been the

believe that we must come together as a single group and pushmain work force, has decreased. For corporations to continue

forward.

to exist, ways to ensure workers and their contributions
to supporting business activities is currently a significant

Strive to resolve social issues
through group synergy

8management issue. The answer is a divers workforce, regardlessof gender, age or nationality. In particular, we believe thathaving women for whom positions in logistics operations have

Logistics today differs from that of more economically

until now been limited, develope new markets, and support

stable times. Previously our role was to carry packages fromthe core of the business, will be crucial in the years to come.

manufacturers to primary and secondary wholesalers, andIn order to accomplish this, we have accelerated the three-retail stores. However, as a logistics company we are now

year old WakuWaku Women's Project (a project to promote

SG HOLDINGS GROUP CSR Report 2014

the activity of female employees) in fiscal 2013. In addition to
responding to legal requirements for childbirth and childcare
leave, caregiving leave, etc., we have made proactive efforts
in establishing a work-life balance that allows for a variety ofwork styles. As a result, we believe that each company in the SG
Holdings Group has laid the foundation for more women to beeven more active. We also believe that our initiatives toward
increasing work styles options will lead to hiring of older
generations and the utilization of global human resources.

It is important to tackle these issues
with modesty and sincerity
The SG Holdings Group plays a major role in social
infrastructures deeply related to the lives of many people. We
rely on public roads, in other words public assets, to conduct
our business. For this reason we must always be humble,
return profits to the company, and treat social contribution as
a duty.
We will continue to take responsibility in establishing asustainable company and aim to become a corporation that is
highly regarded and needed by all, by listening to the opinionsof our many stakeholders, objectively verifying our initiatives,and striving to continually make improvements.

Eiichi Kuriwada

Chairman and President
SG Holdings Co., Ltd.

SG HOLDINGS GROUP CSR Report 20149

Highlight 1
Corporate Responsibility toward Social Infrastructure:
Large-scale disaster response.
The future of BCP (Business Continuity Plan)/BCM (Business Continuity Management) as seen through dialogue with stakeholders
SG Holdings Group has identified specific items in our CSR activities and revised our initiatives after holding nine
discussion sessions with our stakeholders.
In order to objectively evaluate what the SG Holdings Group has accomplished in BCP/BCM, during the tenth discussion
we asked stakeholders in various positions, including public office, local governments, corporations, and consumer
representatives for their opinions. Let's look at how the SG Holdings Group is tackling these activities.
(Titles omitted)

Topic
1

What does business continuity mean to the logistics industry?

What did SG Holdings think of first during the Great East Japan earthquake?

Takegahara (Facilitator): Why was the SG Holdings Group able to resumeof course strive to ensure the safety of our employees, when it comes

operations much more quickly than other companies following the Greatdown to it, our company has a quality of working together as a single unit

East Japan earthquake? Please give your opinion on business continuity

until the end.

in the logistics industry.

Tsutsui: I think this spirit of challenge is an important point. While everyone

Suzuki: During the Great Hanshin-Awaji Earthquake, our group took thehas their own roles, I believe you all share the same awareness, from theinitiative over other companies in preparing local systems. This may just be

CEO to the people on site. I believe that during this major earthquake, youpart of our corporate culture, but we were able to prepare systems based

worked together with the same goals, and were able to accomplish a highon speedy management decisions, and focusing on corporate officers

level of activity locally.

with a high level of awareness during the 3/11 earthquake. The corporate

Tatsumi: Every one of your employees knew we had to recover quickly soofficers providing instructions all had local experience and therefore

that logistics could flow and daily necessities could be delivered. I am sureunderstood the conditions there. As a result, they made decisions andthat the strong desire of your employees to meet those needs was closely

gave instructions to take measures suited to the areas struck by theconnected with restarting services in a short period of time. Consumers

disaster, and we were able to restore operations more quickly than otherliving in Tokyo felt the importance of logistics when they were placed incompanies. For example, we reopened our sales offices on March 17.

this difficult situation.

Takegahara: Did the fact that your corporate officers had the same level

However, I believe the process of discussing safety with employeesof awareness as people in these local areas lead to your rapid response?

based upon information on which regions are safe or dangerous, andSuzuki: Our corporate culture is one of facing challenges head-on. I

providing services, is also an important process.

believe this is closely related to the motivation of our employees, which
resulted in our quick recommencement of activities. Of course, while we

10

SG HOLDINGS GROUP CSR Report 2014

Stakeholders

Keisuke Takegahara (Facilitator)

Masatoshi Yokkaichi

Satoshi Tsutsui

Shinpei Agou

Uichirou Masumoto

Environmental Initiative & CSR-Support
Department General Manager
Development Bank of Japan Inc.

Directorfor Disaster Preparedness, Public relations
and International Cooperation
Cabinet Office

Chief clerk
Business Continuity Section
for Disaster Management
Cabinet OfficeDirector
Distribution and Retail Industry Division
Commerce,Distribution andIndustrial Safety Policy Group
Ministry of Economy, Trade and Industry

Senior Officer
Road Transport Bureau,
Cargo Transport Division,
Ministry of Land, Infrastructure,
Transport and Tourism

Hisayoshi Tsuchida

Yoshiki Hiruma

Masahiro Shibuya

Kikuko Tatsumi

Kiichi Suzuki

Chief, Yahata-nishi Fire Station
Kitakyushu City
(Former Chief, Kitakyushu City
Crisis Management Department)

Director, Enterprise Resilience
Rated Loan program
Environmental Initiative &CSR-Support Department
Development Bank of Japan Inc.

Leader, BCM Operation Team
Administration Department
Corporate Support Division
DISCO CORPORATION

Environment Committee
Nippon Association ofConsumer Specialists

Managing Director
Sagawa Express Co., Ltd.

Topic
2

(Company/group names and titles are current as of March 5, 2014.)

What of issues facing inevitable earthquakes under the capital?

What points should plans be built around?

Takegahara: While the capital area was not directly affected by thesystem this is a role played by local governments. Is it really a good idea forearthquake, we became aware of several risks. Please give your opinion

local governments to do this? I wonder if we can ask logistics companies

on what points plans should be built around, assuming an earthquake

such as Sagawa Express — a transport and sorting professional — tooccurred directly under Tokyo.

provide their expertise. Is it okay to include this in the BCP activities of

Yokkaichi: It is estimated that there is a 70% chance of a magnitude

logistics companies in addition to transport?

seven earthquake occurring beneath the capital within the next 30 years.

Hiruma: Bringing up one more significant role, I believe logistics

The Cabinet Office has raised four issues facing the future of corporatecompanies including Sagawa Express have the two following roles,

business continuity.

assuming the threat of large-scale damage that an earthquake directly

1. The realization that BCM is an important management strategy.

beneath the capital would cause. First is the preservation of economic

2. Promoting collaboration between corporations, regions, and industries

activity. Many shippers have their headquarters located in Tokyo or thein addition to individual initiatives.

capital area, so it's important for logistics to support alternative strategies

3. Realizing valid investment in the future that is conducive to increasing

for production functionality. In other words, economic and corporate

corporate value and strengthening international competitive power.

management logistics. The other is public logistics. There are over 35

4. Creating structures for corporate evaluation that are conducive tomillion people living in the capital area. I expect this will result in logistics

continual initiatives.

that collects emergency assistance commodities from all over the nation.

I would like to see consideration for the initiatives of individual

One additional logistical characteristic of the capital area is that aroundcompanies, and then follow-up steps to take in collaboration ahead of

30% of all medical products in the country are stored there. These must be

time.

transported differently from standard packages. If this should happen, we

Takegahara: First is the building of functional BCM and BCP, right?

will have a problem with assigning priority to logistics. Should corporate

Agou: What should be done about commodity procurement and theshippers have priority, or should public emergency logistics under orders

trucks and boats that transport them? How should the commodities befrom the state be given precedence? Handling all of this with limited

divided and delivered to people? To accomplish this we will ask people

management resources is another BCM issue.

to take roles. For example, while sorting is a local issue, under the current
SG HOLDINGS GROUP CSR Report 201411

Topic3

How will citizens work as one with the government and with each other to respond?

Collaboration that leverages each opinion is the most important

Takegahara: We mentioned the word "role" earlier. What should be done

people gathered from each company during an emergency should set

regarding cooperation or residential segregation between citizens andup rules beforehand in order to improve efficiency and functionality inthe government, and with each other? Please discuss the importance ofsorting, inventory control, and shipping.

collaboration, concrete measures, obstacles, and the like.

Takegahara: As shown by our activity immediately after the Great East

Masumoto: Last year Sagawa Express was chosen as a designated public

Japan Earthquake, one of the strengths of SG Holdings is our strong

institution under the Disaster Countermeasure Basic Act to fulfill that role.

leadership and the on-site ability of each of our employees. You could say

The Ministry of Land, Infrastructure, Transport and Tourism will respond firstthat's the DNA of our group.

for emergency commodity transport. However, emergency commodity

I would like to carry on this BCP philosophy as a core value of ourtransport is only one part of logistics. I would like Sagawa Express to focus

organization and assess the creation of a stronger structure throughnot only on this, but to take on the burden of logistics throughout Japan,

collaboration, which has been today's topic. There are business risks

and take initiatives toward prioritizing smooth recovery of overall logistics

in disaster prevention and business continuity planning and, unlike

by acting as a contact point for citizens and restoring daily functions. I

environmental preservation activities, there are aspects that are difficult

believe it's important for companies to first recover and maintain their

to show as attractive sides of a corporation. However, Japan is a country

own functionality during a disaster.

of natural disasters, where roughly 20% of earthquakes of magnitude six

Shibuya: We spoke about economic/management logistics as wellor greater worldwide occur.

as overall logistics in Japan. I would like shippers to first be able to be

Increasing our ability to respond through BCP and BCM, then proactively

reached under any circumstances during normal deliveries. We can draft

sharing that information with customers and other companies will lead toa plan if you give us information on what you can do and how far you cancorporate competitiveness, and will work to raise corporate value.

transport. Collaboration in the semiconductor industry is difficult because
companies must also maintain their market share. How companies canuniquely respond is important for this reason. I think it would be importantfor you to handle this for us.
Tsuchida: Keeping our discussion focused on logistics, I believe it may benecessary to link information so that it can be shared and easily accessed
during an emergency; for example, information on what goods are locatedin each provider's distribution inventory. How about saving emergency
reserve information on a cloud system? It's also necessary to reconcile
sorting methods, which differ technologically from provider to provider. I
would like you to promote collaboration within the industry, such as how

Commitment

Hearing the opinions of our stakeholders

Strategic BCP is crucial

Plan), and continue to maintain and improve our organizational business
continuity functionality (BCM/Business Continuity Management).
In establishing our BCP, each division has conducted an operational inventory
count. Doing so has allowed us to visualize operational roles, how we should

Hiroyuki UchidaHead of General Affairs,
General Manager of General Affairs Department
SG Holdings Co., Ltd.

collaborate, and issues with our organization and assets. It has also led toopportunities to revise how we improve operations and communicate, and has
had a great effect on our BPR (Business Process Re-engineering).
BCP/BCM activities tend to focus on enhancing management of the company,
but we believe that is not enough. Tackling BCP/BCM not only increases resilience12

Our mission at SG Holdings Group is to continue logistics operations andduring an emergency, but is directly connected with creating continuous

maintain social infrastructure functions, even if an incident has occurred thatvalue, such as improving business processes and developing BCP businesses.

has caused significant damage. In order to carry out this mission and meet the

Furthermore, networking these win-win approaches carried out by each company

expectations of our stakeholders we have established a BCP (Business Continuity

will improve the resilience of each company during a disaster.

SG HOLDINGS GROUP CSR Report 2014

Business Continuity Plan

SG Holdings Group's BCP Initiatives
How should corporations responsible for logistics — part of the infrastructures ofsociety — continue operations in various conditions, including disasters?
If a serious loss occurs in our corporate management or businessdrills based on their first response manual that assume a large scale

activities, or if something occurs that has a serious effect on society inearthquake has occurred, so that they can take rapid action when ageneral, the SG Holdings Group's basic internal control policy tells us wedisaster occurs. Other group companies are also creating BCPs and BCM

must respond appropriately based on our crisis management regulations

while considering the business conditions of their own industries.

and disaster prevention control regulations. However, in response to the

While our priority during a disaster is on ensuring the safety of our2011 Great East Japan Earthquake we have begun to revise our chain of

employees and their families, we must also work to safeguard thecommand, including our organization, regulations, and how we collectassets our customers have entrusted us with. Additionally, as a provider

information.

responsible for social infrastructures directly connected to people's

Since fiscal 2012, we have imagined disaster scenarios such as

lives. As a provider deeply connected with supply chain management

earthquakes directly below the capital or in the oceanic trough to thein corporate activities, continuing our business is a fact of life. During oursouth, abnormal climates, and pandemics (large-scale disease outbreaks),

basic BCP plan we are selecting alternate sites, ensuring fuel and powerand have established highly viable BCP and BCM. In May 2013 SG Holdings

sources, and strengthening the DR (Disaster Recovery) functionality of ourand Sagawa Express decided on their basic BCP, while SG Systems did theinformation systems and data, among other initiatives.

same in March 2014. Currently, Sagawa Express is conducting simulation

BCM (Business Continuity Management) organization structure
Board of Directors

Managing Director
SG Holdings
Director
Head of Administration & Regulation

Project Supervisors
SG Holdings
Executive Oﬃcer, Head of General Aﬀairs

Executive Office

Project Observers
Sagawa Express
Director/Sales Department Manager/
Transport Network Department Manager

SG Holdings
General Aﬀairs Department
RM/Compliance Unit

Project Leaders
SG Holdings
General Aﬀairs Department
RM/Compliance
Unit Manager

Sagawa Express
CSR Promotion Department

Project members
Sagawa Express
IT Planning Department

Sagawa Express
Sales Department

Sagawa Express
Transport Network Department

SG Moving
General Aﬀairs Section

World Supply
Delivery Agent Operation Department

Sagawa Global Logistics
Administration Department

SGH Global Japan
Administration Section

Sagawa Logistics Partners
Administration Department

Sagawa Advance
General Aﬀairs Section

SG Motors
General Aﬀairs Section

SG Systems
General Aﬀairs Section

Sagawa Financial
Administration Section

SG Expert
Operations GroupSG Fielder
Compliance Promotion Section

SG Realty
Administration Section

SG System
Infrastructure Foundation
Platform Unit

Nouvelle Golf Club
General Aﬀairs Department

As a designated public institution under the Disaster Countermeasure Basic Act
In October 2013 Sagawa Express was selected as a designated public

goods such as food and medicine. We will deliver what is needed, where

institution as defined by the Disaster Countermeasure Basic Act. Selected

it is needed, in the quantities needed. Knowledge of logistics, such asproviders are given the responsibility to respond to emergencies in

how to sort and manage goods, is crucial in conducting this work. This

cooperation with the national and regional governments. As a logistics

is because efficiency during emergencies varies greatly according to theprovider, Sagawa Express will be responsible for delivering emergency

way it's managed.

assistance goods over the Group's logistics network. While Sagawa

The SG Holdings Group will continue to consider issues such as how

Express has worked with regulatory agencies and local governments

to combine logistics inside and outside of disaster areas to maintainduring disasters before being chosen for this role, we would like to use thisfunctionality, and how to build strategic collaborations with national andopportunity to again exercise our responsibility as a logistics company

local governments. The SG Holdings Group will continue to function in

supporting the infrastructure of citizens' safety and lives.

our role as a designated public institution.

Our transport work during emergencies is not limited to assistance
SG HOLDINGS GROUP CSR Report 201413

Highlight 2
Growing the Company through the Strength of Women
Initiatives to promote female employee activities
One measure to strengthen and upgrade our business infrastructure as part of our mid-term management plan, Third
Stage Plan, is establishing a system where women will be responsible for 30% of our business revenue. The WakuWaku
Women's Project is one initiative toward promoting the activity of female employees. By taking advantage of the abilities
of female employees we will respond to changes in worker populations in society, build a livelier work environment, andfurther meet the needs of our customers.

Promoting Female Employee Activities
Our management environment continues to change significantly,

Group, we have been able to transition satisfactorily and expect todue to such factors as changes in workforce demographics due toachieve our mid-term management plan goal of female employees

the decreasing birthrate and aging population, and the increasing

being responsible for 30% of our business revenue well before themail-order shopping market. Determining strategies to handle these

plan's final year. Continuing this project will make best use of thechanges is a major management issue. As one strategy to resolve

knowledge and strengths of our female employees, and will lead tosuch issues, we began initiatives to promote female employee

the development of new products and services to meet the needs

activities in 2011.

of our customers. In addition to raising awareness among male

Our mid-term management plan (Third Stage Plan), announced in2013 (until 2015), mentioned promoting female employee activies

14

employees, we hope this activity will lead to revitalization of ourworkplaces.

and giving responsibility of 30% of our business revenue to womenInitiatives to promote the activity of female employees is one

as a basic strategy. With this in mind we inaugurated the WakuWaku

way to promote diversity within our Group, and is a step toward

Women's Project. Each company in our Group established policies

expanding the employment of the older generation, the disabled

to promote female employee activities, raise awareness, and carryperson, and global human resources. With an aging society andout independent initiatives. We are now beginning to see thesignificant changes in worker demographics approaching, it's clear

results.

that the traditional work force composition is unable to respond to

At the end of fiscal 2013 we achieved 91.6% of our target

these changes in the social environment. Before that happens, we

number of female employees, and with 96 women in management

must prepare an organization in which a more diverse workforce

positions we were only three away from meeting our target. Thiscan flourish. We believe it's necessary to develop human resourcemeans that we were unable to accomplish our plan for the year.

strategies that fully utilize women, seniors, and others, and fulfill

However, as a result of the motivated efforts of each company in thetheir potential as members of the workforce.

SG HOLDINGS GROUP CSR Report 2014

Ladies Moving: Moving Services for Female Customers
SG Moving began our Ladies Moving service in April 2014, in
which female employees assist in moving. This service was created
to meet the requests of female customers who would prefer theirpossessions be handled by females during their move.
Female employees handle the entire process, from creating thequotation to the actual moving on the day.
Ladies Moving also allows customer to choose to have the work
handled by a Sorting and Storage Advisor (Housekeeping
Association, a specified nonprofit corporation). Our certified staff
offers professional advice on the moving process, from how toFemale Sorting and Storage Advisors propose moving solutions

store items prior to moving, to how to arrange rooms most
comfortably in their new home.
Furthermore, staff who have Service Assistant (certified by the
Nippon Care-Fit Education Institute) certifications are available
during the moving process to offer safe support and peace ofmind to senior citizens and the physically challenged.
In addition to support by these industry-first specialized
certification holders, we support the needs of customers more
completely thanks to meticulous and considerate moving services
that only women can provide.

Holding the WakuWaku Awards
In May 2014 we held the WakuWaku Awards, in which female
employees were recognized for outstanding contributions toward

Moving services provided by female staff

Voice

Comments from the winners of the highest award

planning such activities as creating business opportunities that use

Ideas from our customers inspired us

the unique sensitivity of women and improving or enhancing

SG Moving Co., Ltd.

existing businesses. This initiative was one means of promoting the

Kaori Aizawa

WakuWaku Women's Project with the aim of spreading awareness

Human Resources & Training Section,
Administration Departmentof the value of promoting female employee activities andAkie Hamasaki

accelerating initiatives for the next fiscal year.

Sales Development Section AssistantManager, Sales Department

This initiative targets female employees in all companies within
the SG Holdings Group. This year we received 76 applications. Of
these groups, one team received the highest award, one teamreceived the excellence award, and four teams received thefighting-spirit award.

Kimiko Yamane
Sales Development Section Sub Chief,
Sales Department

From left to right: Aizawa, Hamasaki, Yamane"Do you have a moving service for women?"
Ladies Moving was created thanks to a phone call from a customer.
Moving is physical work, and on-site work was handled mainly by
male staff. The central players in the workplace were also men. In order
for women to participate in planning, it was important for them toacquire knowledge about the jobs, and for male employees tounderstand that women wanted to take part. We communicatedclosely with management, and shared information on the company
Intranet. We also proactively set up opportunities for female
employees to try moving work.
One year was dedicated to planning and preparing before welaunched the service this spring. While there were various challenges
along the way, we are extremely pleased that we were able to receive
the highest award. In addition to putting the service into operation,
we would like to promote policies for all employees to work in a lively
manner from diverse perspectives rather than just from one point ofview.

The award ceremony (May 2014)
SG HOLDINGS GROUP CSR Report 201415

CSR Activities Report
Following is an introduction to the SG Holdings Group CSR activities during fiscal 2013. Please refer to our
website for further details.
http://www.sg-hldgs.co.jp/csr/

We believe these are important
to meet the expectations of society.
Our CSR activities bring important issue to light, and we continue to promote initiatives
based on the SG Holdings Group corporate philosophy of "Trust, Create, Challenge" tomeet the expectations of our stakeholders.
We earnestly listen to the opinions and comments from experts received throughdialogue and the instructions of our customers, then investigate and implement policies
in response to widely apply the opinions of stakeholders to our businesses.
We also take stock of our existing CSR activities with ISO26000 (international guideline
standards related to the social responsibilities of organizations) as our guide. We areworking toward thoroughly conducting initiatives necessary to fulfill our corporatesocial responsibilities.

16

SafetyP.18

Environment

P.23

Society

P.30

Employees

P.36

Management

P.39

Foundation Activities

P.42

International Group Company Business
and CSR Activities

P.44

SG HOLDINGS GROUP CSR Report 2014

CSR Management Through Dialogue with Stakeholders
ISO26000
ISO26000 is used to organize our activities and identify issues in order to revise our activities. We believe this is one process to move
forward as we confirm the direction of our initiatives.

Organization Governance

The seven core subjects
and issues of ISO26000

Human Rights

IImportant topics
in the SG Holdings Group

Labor Practices

SafetyEnvironment

Fair Business Practices

Environment

Consumer Issues

SocietyCommunity

Employees

Feedback from external experts
We ask experts in each specialized field for their opinions on
SG Holdings Group initiatives. We then identify issues in our CSR
activities, decide on plans, and revise our initiatives to reflect
opinions.

Dialogue with Stakeholders

Mr. Uichirou Masumoto

Mr. Yuta Okazaki

Nobuyoshi Ohmuro

Mr. Hiroshi Ishida

Ministry of Land, Infrastructure,
Transport and Tourism

Ministry of the Environment

Associate Professor
Faculty of Business
Administration,
Kyoto Sangyo University

Executive Director
Caux Round Table - Japan

Questionnaires

We create opportunities to exchange opinions on our basic

We analyze CSR report (printed and online versions)stance regarding issues the SG Holdings Group feels arequestionnaire results and make changes to our activities

particularly important, and their policies with our various

accordingly. Questionnaire results are released in a printed version

stakeholders. We use this process to confirm the direction of our(p. 47) and on our website.

activities, and change our future CSR activities accordingly. We
have been doing this since fiscal 2004, fiscal 2013 was the tenth

http://www.sg-hldgs.co.jp/csr/questionnaire/time we have held such discussions.

Customer Feedback

Social Studies Field Trips/Workplace Experience, etc.

The SG Holdings Group views customer opinions and requests as

The SG Holdings Group accepts requests for elementary andimportant guidance to improve the quality of our services andjunior high school student social studies field trips and workplace

products. We also reference opinions received on our corporate

experiences. We value communication with local children andand CSR activities when revising our activities and policies.

are creating learning opportunities for the next generation.

SG Holdings Group and Stakeholders

Customers
Employees
Education/research
institutions

National/local
governments
Business
partners

SG Holdings Group

NPOs/NGOs
Students

Regional
communities

Globalenvironment

SG HOLDINGS GROUP CSR Report 201417

Safety
Safety is the highest priority in our businesses. As such, we are involved in a variety of safety efforts Group-wide andwill proactively expand initiatives to develop safe transportation services for society.

(1) The following initiatives focusing on safety were implemented to eliminate serious accidents on pedestrian crossings:
improve driving manners, effectively use drive recorders, and curb important point violations

Fiscal 2013 Activity Results(2) Conducted training for sales office safety promotion workers (437 people) responsible for safety(3) Reduced traffic accidents by 94% over the previous fiscal year, and reduced traffic violations by 98% over the previous year
(4) Began safe driving education and training services, and safety management organization consulting from July 1, 2013

Safety Initiatives

Safety Management Organization Diagram
Consider feedback fromon-site employees
Instructions, guidance

Board of Directors

Safety Management & Education
Safety Measures Committee

Safety Management Systems
Labor Practices

Safety Meeting

Consumer Issues

Sagawa Express views transport safety as the most important

Safety Discussion Meeting

Deliberations on
safety related topics

Headquarters Safety
Promotion Meeting

Office Manager Meeting

BranchHuman Resources/
Safety Promotion Meeting

management issue.
With the Safety Measures Committee playing a central role, management
and local staff work together to build a safe organization, and to ensure
safety based on the transport safety management system.

Maintenance Managers

Office Manager

Committee members hold a safety meeting each month in which

Sales OfficeService Managers

Drivers

the committee deliberates on the progress of safety activities, and on
tangible and intangible measures to ensure safety. The committee also
holds periodic safety review meetings, in which safety promotion staff

SD instructor
follow-up period(SD= Sales Driver)

12 month driver mentoring

Regular driver observation(continuous driving ability assessment)

6 month driver mentoring

3 month driver mentoring

1 month driver mentoring

SD certification training

Collection and delivery service test

Driving Assessment

Driver Mentoring

Basic safe driving training

Join company

Basic new employee training

continuous safety initiatives.

SD instructor instruction period
Driving ability assessment

onsite employees to improve safety measures. They periodically promote

New driver development
process
Training prior to joining company

from around the country participate, and considers feedback from

Safety-related training

Tests conducted by safe driving testers

Traffic accident index trends (with year 2000 set at 100)

Transport safety management evaluation by the Ministry of Land, Infrastructure, Transport and Tourism

120
100

100
78 88.6 90.0 93.1

80
60

85.8

87.1 6291.5

93.1 92.7

02

03

38

32

28

30

04

05

06

07

08

22

25

09

10

28

37

35

18

SG HOLDINGS GROUP CSR Report 2014

80
75

11

12

13
(FY)

The regular monthly safety meeting

90
85

35

20
2000 01

95
93.4

93.7

93.1

92.4

100
93.6

92.9

51

40

0

(%)

SD (Safe Driver) certification trends

70SafetyPursuing Safety
Sagawa Express Driver Contest
Labor Practices

Health Management that Considers Safety:
SAS Screening
Labor Practices

Consumer Issues

Consumer Issues

Sagawa Express screens drivers throughout Japan in order to prevent
On Friday, June 28, and Saturday, June 29 2013, the 21st Sagawa

traffic accidents caused by health issues such as sleep apnea syndrome

Express Driver Contest was held at the Sagawa Express Training Center's(SAS). We began conducting this screening due to increasing public

Automobile Training Course.

concern over multiple incidents of collisions in Japan that were thoughtThis contest has been held every year since 1993, with the goals of

to have been caused by SAS. These efforts are designed to meet ourobserving traffic regulations, improving inspection skills along with driving

responsibilities as a corporation that uses vehicles in our businesses, and toskills, increasing driving safety awareness, and improving driving manners.

promote health management among our drivers. Currently examinations

A total of 61 drivers (including employees of group companies) areare held every 5 years, and drivers who are determined to be potential

chosen from all over the country to use the driving skills and knowledge

sufferers of SAS must take a detailed examination at a specialized agency.

they have gained to compete for a total of 1,000 points in three contests:

Treatment is then administered according to what the medical specialist

the knowledge contest (400 points), the driving contest (400 points), anddeems appropriate.

the inspection contest (200 points).
The Driver Contest is more than just a simple competition for points
in which results are given on the spot, because it also serves as a form of

We will continue to enhance our health management and benefits
package so that all of our drivers can work at a level of health appropriate
for driving.

human resource training. Training is performed at multiple sales offices
before the contest, allowing participants to share related knowledge, honetheir driving skills and etiquette, and develop a professional awareness.
Safety will always be our first priority, and we will work to cultivate

Ensuring Traffic Safety in the
Local Community

professional drivers, and increase the safety awareness of all our employees
as part of our responsibility as a corporation that uses public roads to dobusiness.

Preventing Traffic Accidents through Vehicle
MaintenanceLabor Practices

Environment

Consumer Issues

SG Motors maintains company vehicles owned by the SG HoldingsGroup, with the goal of eliminating traffic accidents caused by vehicle
maintenance defects, and reducing their environmental impact. Whiledrivers inspect collection and delivery vehicles daily, vehicles are given
more thorough inspections during three-month and 12-month periodic
inspections.
We will manage the progress of repairs and respond quickly to
manufacturer recalls, and continue to keep our vehicles in good condition
A scene from the knowledge contest

and carry out appropriate maintenance.

Checking with an inspection hammer is one part of the contest

Vehicles are always kept in good condition

SG HOLDINGS GROUP CSR Report 201419

Environmentally-Friendly Driving
Labor Practices

Environment

To respond to continuing diversification in logistics operations, we also

Consumer Issues

maintain specialized vehicles and industrial machines such as trailers andmixers, and sell and repair transport vehicles such as forklift trucks.

Safe driving has significant, positive effects on the environment. Sagawa
Express promotes Environmentally-Friendly Driving.

We will continue to expand our maintenance network and functionality
in order to meet the diverse needs of our customers.

Environmentally-Friendly Driving is a form of driving that aims toconsider the environment and prevent traffic accidents. Drivers do notstart, accelerate, or stop their vehicles suddenly. In addition to considering

when starting or running vehicles and improving manual transmission

Preventing Traffic Accidents through Effective
Use of Drive Recorders

driving skills, we have also seen economic results through curbing fuelLabor Practices

safety and the environment through setting maximum engine speeds

Consumer Issues

usage.
In order for all drivers to practice Environmentally-Friendly Driving, we

While all delivery vehicles are equipped with analogue tachographs,

conduct specialized training for management and instructors. The most

Sagawa Express has also equipped 26% (about 6,450) of these vehicles

important items in Environmentally-Friendly Driving are included as thewith drive recorders to manage employee driving habits. Every driver will

Seven Articles of Environmentally-Friendly Driving in booklets distributed

be expected to operate a drive-recorder enabled vehicle at least once ato our employees, so that they can carry them everywhere they go. We

year. Drive recorders will be installed in all vehicles added to our fleet.

also use training video tools during training.

Drive recorders assign scores to five actions to measure driver ability
and indicate problems with braking, stopping, steering, turning, and[The Seven Articles of Environmentally-Friendly Driving]
1. Practice e-Start soft accelerationsmooth driving. Drivers aim to obtain a high score, resulting in increased
safe driving awareness and improved skills.

2. Shift up earlier rather than later

Potentially unsafe incidents recorded when driving can be used as

3. Drive at a consistent speed in line with traffic conditions

material for safety-related training and discussion. Sharing this information

4. Maintain sufficient space between vehicles

with many drivers will help to prevent traffic accidents.

5. Utilize the engine break by stopping acceleration early
6. When parking, remove the key and turn the engine off

We plan to continue our efficient utilization of drive recorders to makecollection and delivery tasks even safer.

7. Perform daily inspections, maintenance, and pressure management

Expanding the Maintenance Network,
Increasing Functionality
Labor Practices

Consumer Issues

SG Motors is expanding our support organization and improving service

Drive recorder screen

in an attempt to enhance our maintenance network across the country.
As of March 2014, in addition to our 15 branch offices, 27 maintenancefactories, and two body manufacturing factories, collaboration with 287
locations of our partner companies has resulted in complete coverage of
all areas of the country.
Maintenance Network

Driving diagnostic results form

Headquarters
Branch/maintenance facility
Maintenance facility
Body production factory20

SG HOLDINGS GROUP CSR Report 2014

Safety

Securing Safety for Highway Transportation

Holding Safety Seminars for Highway Service Providers
Labor Practices

Fair Business Practices

Consumer Issues

Conducting Highway Transport Safety Patrols
Labor Practices

Fair Business Practices

Consumer Issues

Sagawa Express holds safety seminars for managers of partnercompanies related to highway transportation. In fiscal 2013 we invited

To increase safety during highway transportation, Sagawa Express has

lecturers from companies such as Mitsui Sumitomo Insurance Co., Ltd. to

conducted Sagawa Express Highway Transport Safety Patrols every year

lecture truck operators on safety measure initiatives, the basic and legal

since 1994. These patrols are done by Sagawa Express corporate officers,

responsibilities of operators, and how to avoid work related accidents.

employees, and employees or partner companies at the main service

Managers from 285 companies participated in the seminars held at fiveareas and parking areas on arterial routes, to mentally and physicallylocations.

refresh our drivers. Vehicle checks are performed as well to prevent traffic
accidents and vehicle breakdowns.
In order to contribute to the safety of society as a whole, we also
perform vehicle inspections as requested for cargo transport vehicles

Superior Safe Driving Operator Award

outside of the employment of Sagawa Express and partner companies.

Labor Practices

Fair Business Practices

Consumer Issues

We will continue to promote initiatives to improve the safety of highway
transport and increase driver awareness.

Driving records for the licenses of each employee in the SG HoldingsGroup can be obtained from the Safe Driving Center, upon the consent
of the driver. This initiative allows us to check whether drivers have traffic
violations outside of working hours, and is an attempt to increase safety
awareness among all employees.
In fiscal 2013, 169 Group offices received Superior Safe Driving Operator
Awards from the Safe Driving Center, through a system set up to use
driving records and award operators' safe driving management efforts. Of

Patrols are conducted at night. General trucks are inspected upon request

those that have been evaluated with an SD (Safe Driver) score higher than
the standard, 10 offices with the highest evaluation received platinum
awards, 44 received gold awards, 43 received silver awards, and 72

Highway Transport Terminal Inspections

received bronze awards. Out of approximately 10,000 business locations,

Labor Practices

872 were eligible for the award, roughly 19% of which were companies

Fair Business Practices

Consumer Issues

within our Group.
Sagawa Express Highway Transport Terminal Inspections are conducted
so that we always drive safely and maintaining and improving transport

We will continue our efforts to raise awareness among all Group
employees so that we always drive safely.

quality by preventing vehicle and traffic accidents during transport.
Administrators from all Sagawa Express locations work together withadministrators from partner companies, using special check sheets to
conduct the inspections. During morning meetings, we also share thelatest habits that may lead to accidents as a heads-up message to our
drivers.

Receiving an award from the Safe Driving Center

Visual Vehicle Inspection

SG HOLDINGS GROUP CSR Report 201421

Safe Driving Training Service
Fair Business Practices

In addition to offering training at our facility, we can respond flexibly
to requests from customers to conduct lectures and courses at specified

Consumer Issues

sites, provide training in customer facilities, and more.
As a corporation staffed by safe driving professionals, Sagawa Express
conducts training programs that incorporate unique content. Our
thorough training has resulted in a roughly 70% reduction in traffic

Columnaccidents compared to fiscal 2000.

Safety is a common needWith the goal of contributing to overall traffic safety, in July 2013 webegan offering our Safe Driving Training Service to general operatorsconcerned about reducing traffic accidents. This service takes advantage

Japan Beverage group companies own a total of 3,500 vehicles,
which are used to deliver beverages to customers and stock vending
machines. We believe that avoiding accidents and driving safely areimportant issues that lead to improving traffic safety for all of society,of our safe driving philosophy and the knowledge we have accumulated

and are closely connected with the lives of our employees andover many years of operation.

corporate trust. Initially we investigated renting out space to conduct
2

Our driving training facility (approximately 31,680 m ) located in Ayase,training. However, we heard that Sagawa Express had considerable

Kanagawa, offers 38 training trucks, 6 light automobiles, and one minivan.

knowledge in traffic safety training, and began by taking their leader

Fully equipped with lodging facilities, it's able to handle programs thatmeet the needs of our customers, such as overnight training sessions oreven single-day lectures.

cultivation course. Our leaders came back after the course and trained
our employees, beginning with new drivers, in philosophy andtechniques related to safety, evaluated their level of skill, and sent themoff to actual roads to train. As a result we have seen unprecedented

We have received many inquiries from not only corporations dealing

results in accident reduction/prevention. We were allowed to give ourwith freight and transportation, but from other corporations that use

honest opinions, and would like to see this information applied to theirvehicles in their businesses, such as those shipping their own products

safe driving courses in order to further increase effectiveness.

or in the nursing care business. Since starting this service, 15 companies
have already held 35 training sessions, lectures, and courses.
Ms. Kazue Yamamori
Human Resources Director
Japan Beverage Holdings Inc.

Training on checking
the rear of the vehicle
when exiting

Comment from management
Hideo Araki
President and CEO
Sagawa Express Co., Ltd.

Comment from an expert
Mr. Uichirou Masumoto
Senior Officer
Road Transport Bureau, Cargo Transport Division,
Ministry of Land, Infrastructure, Transport and Tourism

The SG Holdings Group sees safety as our immediate priority. As long as

Safety is the most important thing for transportation businesses. Sagawa

we are operating we need to always be aware of and maintain safety. During

Express has established a safety management organization, with the Safety

fiscal 2013 we were able to continue our record of no serious accidents

Measures Committee playing a central role. The organization confirms

causing injury or death. We believe this is a result of operating our transport

whether safety awareness initiatives are being carried out organization-

safety management system; conducting thorough safety management,

wide through safety promotion work conducted by each sales office. We

strict education, training; and through each of our drivers continuing tohope that you will continue these efforts so that everyone involved inpractice basic safe driving.

transport will hold safety as their top priority.

Eliminating accidents without overestimating our own driving skills or

It's also important to continue to conduct safety education, so we hopeconvincing ourselves there are no problems- we continue to strictly enforce

that you will continue to revise and enhance your initiatives through such

safe and sure driving. During fiscal 2013 we began a service to share ourmeans as enhanced instruction of new drivers and detailed evaluations ofknowledge of safety with other corporations. We intend to take corporate

all drivers using drive recorders.

responsibility for contributing to safety as a whole - not just within ourGroup.

Also, as your company began offering a safe driving education andtraining service in 2013, I hope you will share your enhanced safety initiatives
with other companies as a leading company in the truck industry.

22

SG HOLDINGS GROUP CSR Report 2014

Environment

Environment
As long as we continue our business activities we cannot ignore the environment.
In order to reduce our impact on the environment as much as possible, we continue to take a variety of environmental initiatives,
beginning with preventing global warming.
We cooperate with our stakeholders in efforts to preserve the environment throughout society.

(1) Total CO2 emissions for Sagawa Express was approximately 394,000 tons
* The emission factor has been changed this fiscal year, so a comparison with the previous fiscal year is not included.

(2) As a means of promoting modal shift, we have been operating the Super Rail Cargo special container train for 10 years.

Fiscal 2013 Activity Results(3) Sagawa Express received "carbon-neutral certification", the first company in the logistics industry to receive this.
(4) SG Moving began "carbon-neutral transportation", the first to do this in the moving industry(5) Began our clean energy supply business, by utilizing SG Realty Group assets

Introduction of Low-emission Vehicles

Environmental Initiatives

Environment

Initiatives to curb CO2 emissions
Our home delivery business involves repeated starting and stopping

Initiatives Implemented
throughout the Delivery Systemover short distances, so Sagawa Express is making efforts toward
introducing suitable vehicles by researching low-emission vehicles
that offer good fuel consumption for our vehicle-related operations. In

Introduction of natural gas powered trucks

addition to hybrid vehicles, we are introducing vehicles that can continue
Environment

to flexibly respond to conditions and offer a low environmental impact,
In order to reduce the amount of harmful substances released intosuch as low-emission vehicles that meet fuel economy standards andthe environment during collection and delivery, we have started using

emissions regulations, even for diesel vehicles that traditionally have had*1natural gas powered trucks. Natural gas trucks feature low CO2 and NOx*2

a large impact on the environment.

*3

emissions, do not emit SOx or PM , and have been attracting attention

Low-emission vehicle introduction trends (Sagawa Express)

as the most environmentally clean trucks currently available.
As of March 2014, Sagawa Express owns 3,981 natural gas trucks (4,002
trucks throughout the entire SG Holdings Group), and was recognized as
the top company in the world in terms of number of such trucks owned(International Natural Gas Vehicle Association, 2011).
We have introduced four large natural gas trucks into our fleet sinceApril 2014, after receiving verification that such vehicles could handle
medium distance highway transport. These efforts are estimated toreduce our CO2 emissions by over ten tons per year.

(vehicles)

10,000*1 NOx refers to nitrogen oxides*2 SOx refers to sulfur oxides*3 PM refers to fine particulate matter

26,43124,80030,00027,50026,86926,77925,00025,96524,4706,000
19,667 19,894

26

2,000
0

26,623

Total no. of vehicles

8,000

4,000

(vehicles)

Vehicles that comply with emission regulations
Hybrid vehicles
Natural gas trucks

12,0001,647

21,473
20,205

39

61
49

2,197

2,693

304
52

3,290

1,716
86

4,417

4,835

5,598

5,358

5,302

5,673

100

100

99

97

98

91

4,254

4,355

4,349

4,293

4,258

3,981

22,50020,00017,5003,675

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

0

(FY)

Introducing of 3-wheeled Electric Vehicles (EV)
Environment

SG Motors has developed an EV body exclusively for collection and delivery
Environmentallyfriendly natural
gas truck

purposes, which is part of a 3-wheeled EV called the LIKE-T3, developedby Mitsuoka Motor Co.,
Ltd. and Yuasa M&B Co.,
Ltd. Sagawa Express has
been introducing these3-wheeled EVs in Kyoto
since 2012.

Large natural gas truck

EVs do not release CO2
and other exhaust gases
during operation
SG HOLDINGS GROUP CSR Report 201423

Service Center Opened in Tokyo Station
Environment

Consumer Issues

Efficient Transport by Large-scale Hub Facilities
Environment

Sagawa Express has established Service Centers in approximately 340

As part of our efforts to build a transport supporting network, Sagawa

locations throughout Japan, which collect and deliver packages withExpress is working to reduce the number of vehicles we use by optimizing

human powered vehicles, such as push carts and three-wheeled delivery

transport using large-scale hub facilities. Reducing the number of vehicles

cycles, rather than using trucks, etc. Each service center has reduced thewe use will significantly cut vehicle gas emissions and will lead to curbing

use of automobiles by 3 to 5 vehicles per office, for about 1,500 fewer

air pollutants and CO2 emissions.

automobiles on the road in total, thus is contributing to a reduction in air

We have combined 6 hub centers, such as our Edogawa Center, Chuo
Center, and Yokohama Tsurumi sales office, into 2 locations: the Yokohama

pollutant emissions.
We have recently opened a service center in Tokyo station. The center

Higashi Center and Sagawa Tokyo Logistics Center. These centers also offer

offers services such as temporary storage of belongings and same-day

warehousing functions, and reduce vehicle movement distances when

delivery of packages to lodging facilities, with the goal of improving

collecting packages. Our optimization efforts have reduced our vehicle

usability for people making use of Tokyo station for sightseeing or otherusage by about 30 vehicles per day. Additionally, planting plants on the

purposes.

roof and walls of the Sagawa Tokyo Logistics Center is one other way weare contributing to reducing our burden on the environment.
By creating routes focused on such locations as the Nishi Nihon HubCenter, Chubu Hub Center, Kuki Center, Tokyo Big Bay, and the Kita Kyushu
Center, and by re-examining operation methods at our large-scale hub
facilities, we aim to reduce the number of vehicles we use.

Operational since
March 2014

DBJ Green Building Platinum and Gold
Certification ObtainedLabor Practices

Environment

The SG Realty Kashiwa large-scale logistics facility obtained Platinum
2012, the highest level of the DBJ Green Building certification (forThe Sagawa Tokyo Logistics
Center (Koto-ku, Tokyo)

logistics). The certification is awarded by the Development Bank of Japan
Inc. (hereafter, DBJ). The Sagawa Express Fukuoka Sales Office and Sagawa

Large-scale hub facility transport flowchart

Express Kanda Sales Office also received the Gold 2012 certification.

No hub centers

The DBJ Green Building certification comprehensively evaluates several
factors including the environmental performance of the building inRegion A

Region D

Region B

Region E

Region C

Region Fquestion and consideration of stakeholder social demands.

Necessary to carry packages from each region by direct highway.

With hub centers
Region A

SG Realty Kashiwa

Region B
Region C
Sagawa Express Fukuoka Sales Office24

SG HOLDINGS GROUP CSR Report 2014

Region D
Hub Center

Region E
Region F

Packages from each region are collected at the hub center, sorted by destination, and delivered.

Environment

Sagawa Distribution Center Administration/Management
Environment

Fair Business Practices

Modal Shift Promotion
Environment

Sagawa Global Logistics operates and administers Sagawa Distribution

Sagawa Express is promoting model shift in order to carry out

Centers (Sagawa Ryutsu Center = SRC's), a comprehensive logistics facility,transportation with a low environmental impact. "Modal shift" refers to

directly connected to a SAGAWA Express truck terminal. Many processes

transitioning from traditional truck transportation to methods with less ofare involved in the distribution of general merchandise from factory to

an environmental impact such as boat, and train.

market, with transport by trucks or other vehicles necessary between

Express delivery by Super Rail Cargo, a special container train jointly

each stage. However, products in the SRC are centrally managed withindeveloped with Japan Freight Railway Company, is one component of thisthe facility, so transportation from shipping center to separate storage

modal shift. Since its start in 2004 it has expanded to cover 10% of all freightor processing center is not required, eliminating the need to use trucks.

transported between Tokyo and Osaka and is currently making great strides

This is closely linked with simplifying our customer's logistics operations,in reducing our burden

reducing costs, reducing energy and reducing CO2 emissions and air

onpollutants such as NOx*1 and PM*2 by minimizing truck transport.

such as by reducing CO2

As of March 2014, we have been able to optimize customer's logistics

theenvironment,

emissions.

and reduce the environmental impact at 70 locations nationwide,
including 25 SRC facilities. The SRC is a model business for green logistics,

are environmentally friendly.

The special container train,
Super Rail Cargo, has beenin operation for 10 years*1: NOx refers to nitrogen oxide*2: PM refers to fine particulate matter

Results of modal shift (FY2013)

and we will continue to expand their operation, as logistics facilities which

No. of reduced trips (ten-ton truck conversion)
Reduced CO2 emissions

72,24385,597 t-CO2* Source: Calculated from CO2 emissions output levels of freight traffic institutions, Ministryof Land, Infrastructure, Transport and Tourism (FY2012)* CO2 reductions from environmental burden (theoretical value) if the modal shift had notbeen carried out

SRC transport flowchart

Standard product distribution model
Shipping

Shipping inspection
Picking

Warehousing
Inventory

Goods Receiving Inspection
Goods Receiving

PickupClean Energy Supply Business
DeliveryEnvironment

Consumer Issues

SG Realty began its clean energy supply business in April 2013, by
utilizing Group assets. We have begun to generate solar power in facilities
at 59 locations and to supply clean energy to power companies in each

Product distribution using the SRC model

region, with the goal of contributing to the supply of stable power and
SRC
Shipping

Packing

Shipping inspection

Tagging

Picking

Inventory

Goods Receiving

Pickupreducing our environmental burden. At a scale of approximately 13.2
megawatts, this generated power represents a reduction of about 5,850
Deliverytons of CO2 emissions when compared with power generated throughnon-natural means.

The Sagawa Express Branch is located nearby

We are planning to install solar generators in an additional 42 locations,

At SRC we sort and collect waste created during logistics operations, and promote
recycling. We are also working towards geo-environmental conservation with ourcustomers through such measures as proposing packing that use environmentallyfriendly materials.

for a final total of 101 locations generating an estimated 24.2 megawattsof power. This generated power represents a reduction of about 21,624
tons of CO2 emissions when compared with power generated throughnon-natural means.

Products centrally managed
at SRC'S

SG Realty Kashiwa equippedwith solar power panels
SG HOLDINGS GROUP CSR Report 201425

Initiatives to curb CO2 emissions

Collaborating at the National
and Regional Levels
Model Project Focusing on the Creation of a Low
Carbon Society Commissioned by the Ministryof the Environment in the Hakata Station area
Environment

Consumer Issues

First company in the logistics industry to receivethe "carbon-neutral*1 certification"
Environment

Community

Sagawa Express is the first company in the logistics industry to receive
the carbon-neutral certification.
Sagawa Express was selected as a trial business for carbon-neutral
certification by the Ministry of the Environment in March 2012. Three
service centers have worked toward obtaining certification: the Tokyo

In September 2012, Sagawa Express took on the Model Business Project
Focusing on the Creation of a Low Carbon Society commissioned by the
Ministry of the Environment, and started up the Model Project for theStation Yaesu Exit Service Center (Tokyo), the Shijo Takakura Service Center(Kyoto), and the Hakata Ekimae 1-chome Service Center (Fukuoka).
The selected service centers calculated their CO2 emissions, and worked

Creation of a Low Carbon Delivery and Collection System in the Hakata

proactively to reduce them. Additionally, the approximately 70 t-CO2 of

Station area. This project involves initiatives in the logistics processes

emissions that are difficult to reduce are offset by domestic emissionsof express delivery operations that are thought to be effective as

credits (J-VER)*2 generated by Sagawa Forestry to achieve carbon-

countermeasures against global warming.

neutrality (no actual CO2 emissions).

The Delivery Box Pickup Service was started in the Kyushu area in April

In recognition of these efforts, Sagawa Express has obtained carbon-

2013. The service allows redelivery of packages to delivery boxes installed

neutral certification (certification #CN004-01, valid from March 21, 2014

around the Hakata Station area. Currently, delivery boxes are installed in

until March 20, 2015).

18 locations around Hakata Station and in 4 Daiei, Inc. retail locations. As
a service that allows for simple "station pickup," it reduces CO2 emissions
and is a convenient option for users.
Furthermore, the light vehicles used in this area for collection anddelivery have been replaced with electric automobiles, a first in Fukuoka.
Also, three diesel vehicles used for shipments from hub centers tocommercial facilities (such as JR Hakata City) and for transport to service

Carbon-neutral certification

centers within the city have been replaced with natural gas trucks.
*1 Carbon neutralization is an effort to offset the total amount of CO2 emissions
resulting from business activities. In addition to reducing CO2 emissions, thisinvolves using credits to offset emissions that are difficult to reduce, resulting
in total CO2 emissions of zero.
*2 The 5,612 t-CO2 absorbed during the two years of the SG Holdings Group
Kochi/Tokushima Mountain Forest Long-term Management Project from April
1, 2008 until March 31, 2010 has been certified as domestic emissions credits.

Hakata Station delivery box

Hakata Ekimae 1-chome Service Center

26

SG HOLDINGS GROUP CSR Report 2014

An electric automobile charging up

Shijo Takakura Service CenterTokyo Station Yaesu Exit Service Center

Environment

Initiatives to curb CO2 emissions

Striving to become the world's first "carbonneutral transportation company"
Environment

Consumer Issues

Collaborating with Corporations

Community

In March 2014, SG Moving became the first company in the moving
industry to start carbon-neutral transportation that has resulted in zero

Facility Logistics Initiatives
Environment

Consumer Issues

actual CO2 emissions. In February 2013 SG Moving also became thefirst company in the industry to offer "carbon offset*1 moving services."

With examples of their initiatives in Tokyo Skytree Town (Tokyo), Tokyo*2

By offsetting CO2 emitted by moving trucks with offset credits (J-VER )Midtown (Tokyo), JR Hakata City (Fukuoka), and Shinshizuoka Cenova

generated by such organizations as the Kamaishi Regional Forestry(Shizuoka) acting as models, Sagawa Express and World Supply are

Association in Iwate, users of the service can contribute to both reducing

developing a service for constructing facility logistics systems. This service

their environmental impact and supporting earthquake recovery efforts.

works to reduce vehicle traffic around facilities and reduce CO2 emissions.

"Carbon-neutral transport" further deepens carbon offset moving

Furthermore, comprehensively managing people, objects, vehicles, andtransport and uses offset credits to offset emissions that are difficult to

information within the building prevents suspicious people and objects

reduce through operator CO2 reduction efforts, as noted in Ministry of

from

the Environment certification criteria. SG Moving was selected as a trial

thus enhancing security. Finally,business for carbon-neutral certification by the Ministry of the Environment

designing detailed logistics flowin fiscal 2013, and is currently working to obtain certification in 2015. SGroutes protects walls and floors

Moving plans to visualize the CO2 emitted in all business activities related

from damage, and contributes

to moving transport, use J-VER etc. created in areas struck by disaster, andto reducing facility repair andrealize carbon-neutral operations.

maintenance costs.

entering

thebuilding,

Tokyo Skytree Town
© TOKYO-SKYTREE*1 Carbon offsetting refers to offsetting emissions corresponding to the amountof CO2 reduced through efforts such as investment in CO2 reduction activities.
*2 J-VER is a system in which the Ministry of the Environment issues and certifies
credits necessary in carbon offsetting.

ColumnThe Tripartite Environment Ministers Meeting
Among China, Japan, and Korea (TEMM)

Activities to Popularize Eco-cars in Kyoto, in
Association with "Walking city Kyoto"
Environment

Consumer Issues

business forum presentation
Atmospheric and oceanic environmental issues may affect Japan,
China, and Korea due to our close geographical proximity. In order
to discuss environmental issues on a global scale and enhancecooperation, a meeting has been held every year since 1999.

As a company formed in Kyoto, Sagawa Express participates in central
Kyoto Clean Delivery Promotion Assembly, with the goal of reducing air
pollution and preventing global warming to tackle local environmental

Sagawa Express presented CO2 emissions reduction efforts taking
place in the logistics industry during the 16th Tripartite Environment
Ministers Meeting Among China, Japan, and Korea Business Forum
held in April 2014 in Daegu, Korea. Sagawa Express introduced several

issues. As one component of these efforts, Sagawa Express has replaced

examples of business activities, such as the introduction of low-emission

all collection and delivery vehicles in central Kyoto with natural gas trucks.

vehicles (including with natural gas trucks), modal shift promotion,

Additionally, the Kyoto Fuyacho Sales Office, established in April 2014, has

obtaining carbon neutral certification, and Environmentally-Friendly

built a collection and delivery system using push carts, and has begun

Driving that offers both economical and safe driving.

serving the area in association with the "Building a Fun Town that Prioritizes
People and Public Transportation Project" promoted by Kyoto city.
Sagawa Express Director
Akira Takemura,giving a presentation

SG HOLDINGS GROUP CSR Report 201427

Efforts Aimed at a Recyclingoriented Society

The process leading to an ECO vehicle body being madeWaste materials taken from instant noodle
container manufacturing

Adoption of Eco-friendly Uniforms
Environment

Consumer Issues

The SG Holdings Group is currently promoting green purchasing,and is actively purchasing products that contribute to reducing ourenvironmental impact. As one component of these efforts, EcoMarkRecycled plastic materials(polystyrene board)certified reused polyester products made from recycled plastic bottles
have been adopted for Sagawa Express uniforms. During fiscal 2013
approximately 208,500 eco-friendly uniforms were manufactured.
Pulverize/
powderize
the waste material

Converted into 500 ml plastic bottles, this comes to roughly 664,300
bottles.

Non-chlorofluorocarbon
foam insulation(phenol foam)Aluminumboard

Additionally, used uniforms that cannot be easily reused areInterior
panel

collected at the uniform management center, crushed and pelletizedat an intermediate disposal site, andrecycled as blast furnace reductants forMaterial Recycling

ironworks. EcoMark-certified products(Polystyrene Boards)

are also used for the cotton gloves
worn by Sales Drivers. Approximately

Heat applied, degassed,pelletized

650,000 pairs of gloves were used

Completeduring fiscal 2013.
Turned into
reprocessed
goods

Eco-friendly uniform made fromrecycling materials

Manufacturing and Introducing ECO Vehicle Bodies
Environment

Consumer Issues

Initiatives to Conserve Biodiversity
Forest Preservation Activities, Forest Experience Classroom
Environment

Community

SG Motors has developed environmentally-friendly ECO vehicle
bodies and is working to deploy them as Sagawa Express collection andWe own approximately 735 hectares of forest in Shikoku's Kochi anddelivery vehicles throughout the country. By using environmentally-

Tokushima Prefectures, as well as in Hachioji City (Takao), Tokyo. This isfriendly materials for vehicles, we are putting our efforts into reducing ourequivalent to the area of approximately 160 Tokyo Domes. Preserving

environmental impact.

these forests allows us to use them as a source for CO2 absorption, as

100% recycled plastic materials made from waste generated during

well as places for environmental communication and education. As one

the process of manufacturing instant noodle containers are used ascomponent of our forest preservation activities, we periodically restore

the interior materials of ECO vehicle bodies. Compared with traditional

undeveloped woodlands in cooperation with volunteers and local citizens.

vehicle bodies, the amount of wood used in these ECO vehicle bodies is

We also conduct forest experience classroom activities that allow children

greatly reduced.

to experience nature, in collaboration with environmental incorporated

During fiscal 2013, we had a total of 8,647 vehicles with ECO vehicle
bodies. We have reduced the amount of wood we use by approximately

non-profit organizations and educational groups.
During fiscal 2013 a total of 200 students ranging from elementary

600 tons since beginning development in 2003. Besides interior materials,

school to high school

we are working to manufacture vehicle bodies that are environmentally-

visitedfriendly, such as using non-chlorofluorocarbon foam insulation as heat

explored, and createdinsulating material and curbing the release of chlorofluorocarbon gas

wooden name plates.

these

forests,

when disassembling vehicles.
We will continue to develop and deploy vehicle bodies that contributeto reducing our environmental impact and costs.

28

SG HOLDINGS GROUP CSR Report 2014

Children creating
nameplates

Environment

Offset Credit J-VER Certification
Environment

Community

During fiscal 2013, we gave presentations at the Eco Life Fair 2013 inJune, and Eco-Products 2013, Japan's
premier environmental exhibition.

Sagawa Forests are located in Kochi and Tokushima prefecturesand managed by Sagawa Forestry. They are approved as sources ofgreenhouse gas absorption by the Ministry of the Environment J-VER
Eco-Products 2013 booth

Certification Committee and have received offset credits totaling 5,612tCO2. SG Holdings Group is the first transport/logistics corporation groupto receive offset credits.

Comment from management
Akira Takemura

Environmentally-friendly Golf Course
Environment

Director
Sagawa Express Co., Ltd.

Community

While the Group is pouring its efforts into reducing the environmental

The Nouvelle Golf Club is an environmentally-friendly golf course.
The course was designed and built with environmental conservationin mind, from the mock railway sleeper planting enclosures made from

impact of trucks (our central means of transport), we are also developing
environmental policies that focus on the entire supply chain. Keeping
this in mind from the creation of our logistics system, we have beenable to achieve effective results both nationally and in collaboration

100% recycled plastic, to the natural and artificial lakes that feature various

with local regions. In fiscal 2013 Sagawa Express was the first company

plants and living things.

in the logistics industry to obtain carbon neutral certification. In
addition to efforts at reducing our service center operations, we have
implemented initiatives in combination with the utilization of domestic
emissions credits generated within the Group.
We will continue our efforts as an environmentally-conscious
logistics company.

Comment from an expert
Mr. Yuta Okazaki

Biodiversity-conscious
golf course

Environmental Awareness Initiatives

Deputy Director
Environment and Economy Division
Environmental Policy Bureau,
Ministry of the Environment
The SG Holdings Group cannot avoid the environmental impact ofgreenhouse gases, due to the characteristics of its business. We believe

Conducting Environmental Behaviors

that their activities deserve some recognition as they keep this fact inLabor Practices

mind and continue to reduce their environmental impact as much as

Environment

possible.
Beginning with promoting modal shift and adopting natural gas

All employees in the Group have made proactive promotion oftrucks and electric automobiles, we must make note of their initiatives

environmental conservation activities their goal and have decided on

to incorporate options that utilize human power over motive power

participatory environmental behaviors, which they are conducting theminto the delivery system. Building a delivery system that combines

daily. Beginning with energy conservation exercises in the summer andboth hardware measures and software policies to allow the use of

winter, employees take part in year-round activities, such as regional
cleanup activities and environmental picture diary contests.

these hardware measures to their fullest- in other words, the optimaltransport mode in balance with our business- contributes not only tothe environment but to the living environments of towns.
Sagawa Express is participating in the carbon offset and carbon
neutral certification trial project run by the Ministry of the Environment.

Environmental Event Exhibition
Environment

Consumer Issues

Using the offset credits (J-VER) generated by Sagawa Forestry (anothercompany in the Group), Sagawa Express is working toward obtaining
carbon neutral certification for the CO2 emitted by the service centersin Tokyo, Kyoto, and Hakata.

In order to spread environmental awareness, the SG Holdings GroupWe hope they will continue to promote initiatives as a leading

makes presentations during environmental events held by ministries andlogistics company, and will fulfill their social duties as a good corporate

government offices, organizations, and other groups.

citizen.

SG HOLDINGS GROUP CSR Report 201429

Society
Community

Logistics is a part of our social infrastructure that connects people with people, and to society in general.
We will contribute to society through deeper communication with our customers, employees, and local communities
to benefit everyone.

Fiscal 2013 Activity Results(1) Improved quality by managing temperatures on the Hikyaku Cool Express and switching to new cooling boxes(2) Focused on information security services with the Hikyaku Security Express and the On-site Confidential Document
Disposal Service(3) Helped to resolve social issues by providing Reverse Solutions and home appliance repair services(4) Focused efforts on cultivating the next generation through traffic safety classes, and the Logistics Frontline work
experience event(5) Worked to advance health and revitalize regions through initiatives to support sports

Initiatives to Improve Customer Satisfaction

We will continue to meet the needs of our customers as we work tofurther improvement our transport service quality.

Quality improvements
Quality Improvement Initiatives
Consumer Issues

Report on inappropriate Hikyaku Cool
Express temperature management

With 460 Sagawa Express sales offices having obtained the

In November 2013, it came to light that some Hikyaku Cool Express

ISO9001:2008 international quality management accreditation, Sagawa

packages were handled at an inappropriate temperature. Once again,

Express continues to improve transport service processes.

we sincerely apologize for any trouble we caused to our customers.

During fiscal 2013, Sagawa Express focused on four quality KPIs for

Hikyaku Cool Express is a refrigerated transport service that often

our management system: shipping freight accident rate, arrival freight

handles goods such as food products. We realize that decreased

accident rate, morning delivery rate, and time band service fulfillment

transport quality due to improper temperatures is a serious issue related
to food safety, so we have re-inspected this service and consideredrate.

corrective measures.
We will continue to improve the quality of our Hikyaku Cool Express
service and regain the trust of our customers.

Implementing new Hikyaku Cool Express
cooling boxes
Environment

Consumer Issues

Since fiscal 2012, Sagawa Express has been introducing new coolingboxes for Hikyaku Cool Express, which specializes in collecting anddelivering refrigerated and frozen goods. The possible cooling time fortraditional cooling boxes was short, at six hours, so it was necessary tomaintain the temperature using dry ice. New cooling boxes have amaximum cooling time of 12 hours with storage coolant alone, allowing
us to reduce the amount of dry ice we use. As a result we have improved
the quality of our Hikyaku Cool Express service and have seen favorable
results from an environmental aspect. We have reduced the amount of
dry ice we use from 5,833 tons in fiscal 2012 to 3,062 tons in fiscal 2013,

Primary causes:- Insufficient management/instruction, and checking system- Sorting errors due to misrecognition of labels displaying refrigeration/coldstorage classification (care mark stickers). Wrong sticker applied or sticker
forgotten- Improper handling of packages return to warehouse when receiver notavailable- Storage coolant not replaced when using old style cooling boxes (cooling
duration: 6 hours)- Old cooling boxes mistaken for new style cooling boxes (cooling duration:
12 hours)
Countermeasures that have been implemented:- Enhanced equipment, such as replacing/reinforcing cooling boxes,
introducing temporary cooling warehouses, etc.
- Care mark stickers reprinted, information on packages appropriate
for Hikyaku Cool Express storage temperature ranges reinforced, rules
prohibiting packages that are difficult to store cooled (packages that arelarge, abnormally shaped, with multiple packaging, etc.) carried out morestrictly, checking of packages remaining in trucks when coming back towarehouses made more strict, operations improved such as reinforcing
employee training

Care mark sticker

and have reduced our CO2 emissions by about 47% compared with theprevious fiscal year.
Additionally, during fiscal 2013 we disposed of all six-hour type coolingboxes and have switched to our new cooling boxes nationwide, withthe goal of not using dry ice in sales offices. Furthermore, we plan tocomplete the replacement of refrigerants and cool storage related tochlorofluorocarbon regulations by fiscal 2020.

30

SG HOLDINGS GROUP CSR Report 2014

(As of June 2014)

Community

SG Moving Holds 2013 Fiscal Quality Championship

Improving Call Handling Quality

Labor Practices

Labor Practices

Consumer Issues

SG Moving Held the 2013 Fiscal Quality Championship in November
2013, at the Tokyo Sports and Culture Hall.

Consumer Issues

Sagawa Express is committed to improving telephone support skills.
We realize that a single phone call can determine how customers regard

SG Moving values service quality in its main businesses of moving

us, and our Customer Service Section, which is responsible for calland installation. We believe that it's necessary to further enhance thehandling, is classified as "sales" along with our Sales Drivers. We therefore

cultivation of specialized staff engaged in these businesses. For this reason

verify the first thing sales office operators say during phone calls, as well

we have held the Quality Championships since last fiscal year. Contestants

as their product knowledge, and are working to improve phone support

compete in customer etiquette, advanced knowledge, and skills in anawareness.

attempt to increase customer

We participate in the Call Operator Contest held by the Japanesesatisfaction by providing highTelephone and Telegraph Users Association to improve our phone support

quality services.

skills. Four employees received awards during the national tournament
held in November 2013.
We are also introducing IVR (Interactive Voice Response) for redeliveryof packages, so that customers do not have to wait on the phone.

The Quality ChampionshipThe contest

The award ceremony

World Supply's 4th MAPLE Activities

Original bottler vehicle FVV (For Vendor Vehicle)
reaches 700 vehicles released

Labor Practices

Consumer Issues

Consumer Issues

World Supply provides delivery agent services to department stores

SG Motors has developed the FVV, an original bottler vehicle meant forand large-scale retail stores, and continues to promote QC activities

soft drink manufacturers throughout the country. We have been sellingthroughout the company. All teams, made up of World Supply employees

the vehicle since fiscal 2012.

conduct MAPLE (Make, Action, Plan, Lead, Evaluation) activities, in which

The FVV has been praised for its features that meet various customer

they engage with improvement points they notice during their dailyneeds, such as the light bodies and improvements to driver work efficiency.

work activities and visualize the results. In January 2014, the fourth MAPLE

Over the three years since its release to market over 70 companies are

Strategic Presentation was held. Out of 59 participating teams, the 14

using a total of 784 vehicles.

teams who showed the most significant results gave presentations on theirinitiatives. Sharing best practices on operational improvements leading towork optimization and reducing time spent working is connected withoverall optimization and aims to further increase quality.

Presentation participants

Original bottler vehicle FVVSG HOLDINGS GROUP CSR Report 201431

Providing Solutions that
Strengthen Trust

Hikyaku Special Correspondence Delivery
Service
Consumer Issues

Hikyaku Security Express
Consumer Issues

In March 2009, Sagawa Express received permission from the Ministryof Internal Affairs and Communications to participate in the delivery of

The Security Transport Service offers increased security andspecial correspondence as stipulated by the Act on Correspondence

confidentiality during transport, delivering personal information and

Delivery by Private Business Operators. Hikyaku Special Correspondence

valuables with security and reliability, using independently developed

Delivery Service handles missives, invoices, permits such as licenses,

specialized boxes. These specialized boxes are equipped with twocertificates such as certificates of residence and official copies of family

combination locks, and with PHS (PHS is a cellular data network system)

registers, direct mail, and other correspondence. Handling volumes forlocation information terminals that allow real time location tracking of the

fiscal 2013 were 142% compared to fiscal 2012.

box.

We also began offering the Correspondence Collection Service forcollecting applications and other documents along with our call center
operation services.

Locked with combination
locks

Specialized box that allows location tracking

Document Disposal Service
Environment

Consumer Issues

Specialized envelopes used for the Correspondence Collection Service

B2B Settlement Service
Consumer Issues

The types of documents for which consideration must be paid to

Sagawa Financial offers the Sagawa B2B Settlement Service toinformation security, such as confidential corporate documents, areour corporate clients. As a service to replace selling on credit (credit

increasing. There are more and more cases where the disposal method ofpurchasing), which has been the traditional means of settlement between

these documents is transitioning from traditional shredding to pulping.

corporations, the Sagawa B2B Settlement Service collects payments on

In order to meet these needs, Sagawa Express offers the Hikyaku

behalf of the vendor.

Confidential Document Recycle Express Service, which offers uniform
confidential transport, from collection to disposal.
SG Moving has also introduced specialized vehicles (four-ton trucks

Service Flowequipped with pulping functions), and has begun the On-site Confidential
Document Disposal Service - a first in the moving industry. We are able

Company A(corporation)

to offer treatment with a higher level of confidentiality over traditional(1) Order received from Company A's customer
Company A's customer(corporation)(2) Sagawa Express delivers productmethods by traveling directly to the customer's location and carrying out
pulping on-site.
Documents treated by both companies are reduced to pulp, and(3) Requests payment

instead of being disposedof are recycled into new
products such as toilet
paper.

SG Moving pulping vehicle(four-ton truck)

32

SG HOLDINGS GROUP CSR Report 2014(4) Makes payment onbehalf of Company
A's customer(temporary payment)

Sagawa Financial(5) Collects payment
on behalf ofCompany A

Community

Reverse Solutions

Home Appliance Repair Service
Environment

Corporate Risk
Supporting Recalls, Recovery, and Repayment

Consumer Issues

In May 2013, Sagawa Express opened the Home Appliance Repair

Consumer Issues

Center, which offers 24-hour home electronics repair services. The Center
offers a one-stop solution for home electronics repair, from picking up

In March 2012, Sagawa Express began offering a service todevices and repairing them, to delivery after repairs are complete. This

comprehensively support recalls. In addition to picking up, replacing, andreduces lead time to around one-fourth, and customers can receive

refunding defective products, the service offers customer support when atheir repaired electronics the next day if they are within metropolitan orproblem occurs (call center), as well as many other necessary operations

surrounding areas.

involved in recalls. These operations cannot allow support mistakes, andSince beginning the service Sagawa Express had mainly been

are handled using our logistics functions as well as the administrative

commissioned by home appliance mail-order businesses and homeresources, such as financial functions and call centers, offered by the SG

appliance extended warranty companies for the repair of purchased

Holdings Group.

home appliances. Since last year, Sagawa Express has also been offering

Conducting recall operations in a timely manner not only avoids
administrative risks, but is connected to carrying out the social

one-stop pickup and repair of voluntary recall products of home appliancemanufacturers.

responsibilities of corporations. We will contribute to improving theDue to the Home Appliance Recycling Act of April 2013, there isusability for our consumers by carrying

increasing awareness in society of repair options for home appliances soout this service which follows thethey need not be discarded.

opposite workflow of normal logistics(delivering products to customers).

In addition to meeting these social needs, this service contributes tothe effective utilization ofnatural resources.

Sales Drivers pick up andreplace defective products

The Home Appliance Repair
Center within the Sagawa
Tokyo Logistics Center

Recall Total Service
1

PickupInstruction

Sagawa Express

Customer
Manufacturer
Retailer
Mail OrderBusiness etc.

SG Holdings Group2

Receive
Defective Goods

Planning, Pickup/Delivery of ProductProduct
Purchaser

4

Delivery of
Defective Goods

SG Systems
Call Center, Return of Data
3

PickupDefective Goods

Sagawa Global Logistics
Storage/Inspection
6

Provision of
all Data

RecallRequired

SG Moving
Large-scale Product Pickup

5

Refund7

Return of
all Data

Sagawa Financial
Refund Processing

SG HOLDINGS GROUP CSR Report 201433

Next Generation Education
Initiatives
Holding Traffic Safety Classes
Labor Practices

Consumer Issues

Community

Educational Activities: the Sagawa Kids Museum
Community

The Sagawa Art Museum holds two workshop events in the summer
and winter: the Summer Festa and the Christmas Festa. These events offer
parents and children the opportunity to experience the joy of interacting

Our Sagawa Express Traffic Safety Classes are held by Sagawa employeeswith the arts together.

in every region, in an attempt to protect our children, from tragic traffic

Since fiscal 2008, we have held Art Appreciation of Workshops inaccidents. Course content includes how to properly cross the street, thecollaboration with public elementary schools in Moriyama City, Shiga

meanings of road signs and traffic signals, etc. Truck related accidents andPrefecture, in which participants can learn about art appreciation etiquette

blind spots are explained with impact by using actual trucks as examples.

and works of art, and can participate in creating sand art. 934 fourth grade

As an effort to keep children safe throughout the entire community,

school children from the city visited the Sagawa Art Museum during fiscal

local police and parents are asked to participate as well, creating an

2013.

environment where everyone involved can learn. During fiscal 2013, 796

During the fifth Children's Art Contest, we collected as many as 1,000

classes were held across the country, with 86,626 people participating.

works of art from young artists who could become the next generationof master artists, and in February 2014 held the 5th Children's Art Contest
Excellence Exhibition in a special exhibition hall.
We hope that we can continue to contribute to cultivating theemotional development of children so as to create an abundant sense of
expression and sensitivity.

Traffic safety class held in anelementary school

The Logistics Frontline Work Experience Event
Community

We cooperate in offering the Logistics Frontline work experience eventto provide opportunities for children to work, and to think about careers.
This event is held in cooperation with the Future Innovation Forum, an

Works of art from children all over the country

organization that cultivates the next generation of leaders and conducts
activities to increase the potential of children, and allows participants tostudy the latest package sorting equipment or experience collection anddelivery work at the Sagawa Tokyo Logistics Center.

Learning about Nature through Experience
Environment

Community

In addition to learning how logistics works, participants are also able towork, learn about careers, exchange business cards with Group executives,

Since fiscal 2007 we have been conducting nature experience learningand take part in question and answer sessions. We will continue toactivities focusing on rice cultivation experiences in rice fields in Moriyama

contribute to the cultivation of the next generation.

City, Shiga Prefecture, to help children realize the bounty of nature, theimportance of food, and learn about the vibrant ecosystem living inrice fields. Group employees, their families, and local citizens experience
traditional methods ofmaking rice, such as
planting, harvesting, anddrying the rice on racks.

Participants can try out collection and delivery bicycles and sorting work

Rice harvesting

34

SG HOLDINGS GROUP CSR Report 2014

Community

Initiatives Supporting Sports
Club Activities
Community

Our softball team held four classes in fiscal 2013 and taught 520
elementary school students and middle school students the joy ofsoftball.
We will continue to maintain connections with our community throughsports.

To encourage sporting events for physical and mental health, SG
Holdings Group is helping to create an environment in which athletes who
work for us and want to continue playing sports can do so. Supporting
employee athletes encourages participation in sports. At the same time,
when people cheer on their top-level athlete coworkers it contributes toa sense of company loyalty.
We will continue to design and implement new plans so that our trackand-field team can train to win the New Year Ekiden, and our softball team

Track-and-field class and softball course

can reach the top of the Japanese Women's League Division 1.

Comment from management
Yasuji Ioka
Executive Officer, General Manager of Business Promotion Department
SG Holdings Co., Ltd.

In order to bring even more satisfaction to our customers throughour main businesses, the SG Holdings Group is improving our productand service quality. In addition to promoting our original quality
management system, we are working toward creating value in new
logistics fields that meet the needs of our customers, such as recall,product pickup, and refund services. Furthermore, we continue toSoftball teamcontribute to overall social development through next generation
education (such as work experience and company-owned forest
events), sports activities, foundation activities, and more. We believe
we can contribute to further improving the future of society using the
combined resources of our Group.

Comment from an expert
Professor Nobuyoshi Ohmuro
Associate Professor
Faculty of Business Administration, Kyoto Sangyo University

Track-and-field team

I have confirmed three points in the relationship between SG
Holdings and society: initiatives to improve customer satisfaction
in various ways, efforts toward cultivating the next generation, andsupporting sports initiatives. They show their level of engagement in
CSR activities as though they were just part of everyday routine, and I
am impressed that they do this without regard for outside evaluation.

Connecting with Regions through Sports
Community

Their Reverse Solution is a particularly excellent initiative for societythat combines customer satisfaction and the strengths of corporations.
They have also responded accordingly to issues with inappropriate
Hikyaku Cool Express temperature management and have released

Our track-and-field team is sent out to teach schoolchildren ranging

a report. I would like them to reveal the results of initiatives for thesefrom elementary school to high school students and assist in athlete

issues from the next fiscal year. On the other hand, while initiatives such

lectures, in collaboration with industries and universities. We plan toas customer service are mainly for corporations, packages are collectedfurther deepen our communication with local citizens through track-andfield.

by people, so attention should be focused more on communication
with individual consumers. In this respect I would like them to engage
with even better initiatives.

SG HOLDINGS GROUP CSR Report 201435

Employees
We believe that respecting each employee and providing a work environment in which they can continue to work
long-term, and according to their individual lifestyles regardless of gender or age, are corporate strategies to secure
excellent human resources for the future.

(1) Conducted an employee attitude survey with the goal of increasing employee satisfaction, as one component of
stakeholder management(2) Implemented an open application system for Overseas Training Tours, and revised the content as a global humanresources cultivation program(3) Conducted personnel vision acceptance training in order to change employee actions, awareness, and values, and to
put all Group companies on the same track(4) Established life support functions, such as introducing a defined contribution pension plan and renewing the benefits package website(5) Held the Women's Career Support Forum and WakuWaku Awards as a way of promoting the activities of female employees

Fiscal 2013 Activity Results

Human Affairs/Human Resources Initiatives

SG Holdings Group Shared Human Resources System
Organization GovernanceLabor Practices

Basic Philosophy
SG Holdings Group implemented a Group Human Resources System

Personnel Vision
Organization Governanceas a shared system in September 2012, in which human resources canLabor Practices

be managed efficiently by the Group in a cross-sectoral manner. Humans
are responsible for the Group's sustainable growth. Combined with the

The SG Holdings Group established our personnel vision in 2012, so that

efficient deployment of human resources and the achievement of self-

all employees of the SG Holdings Group can act independently and makegrowth, our aim is to produce a great deal of talented human resources

the best use of their abilities and individuality. Our personnel vision clarifies

with a competitive edge.

our organizational culture and the various ways of working, necessary tocultivate human resources, and communicates the importance of each

[System Points]

employee acting independently. Furthermore, since 2013, GMs (Group

1. Role-based system

Managers*) were given the task of promoting improved communication
activities, and we began activities to communicate these new values to

2. M/A (Manager, Associate) promotion screening system

all employees. We believe that creating a corporate culture in which each

3. GM (Group Manager) human resources system

employee is aware of issues and works toward innovation will lead to

4. GS (Group Staff ) ability development systembusiness growth.

5. Rotation system* Division manager-level employees.

Personnel Vision

Fair Field
Take advantage ofthe fair playing field
and fair opportunities,
continuing to strive
toward your goals
without fear of
failure.

Increasing
Motivation
Work hard to
improve motivation,
rewarding people
for their achievements.

Shining Personality,
a Connected Mentality,
and the Widening World-Challenge for Innovation-

36

Time Management

Improving Skills

Perform at yourmaximum potential
within time constraints,
and create added
value.

Take on a role toimprove your skills,
continue learning toattain self-growth,and develop with
passion.

SG HOLDINGS GROUP CSR Report 2014

Shining Individuality
Each individual strives to develop their personalabilities and then polishes them to shine brighter.
A Connected Mentality
All employees have the same mind and achieve
unity. We want employees to always remember
the "Hikyaku" sprit, which is the cornerstone of our
founding, and progress to a new future.
Widening World
We will broaden horizons and potential byconnecting various personalities. Then, we want
employees to create new value that can be usedworldwide, not just within Japan.

Employee

Human Resources Cultivation
Overseas Training Tours
Human Rights

Labor Practices

In fiscal 2013 we held the Women's Career Support Forum. In May 2014
we held the WakuWaku Awards (P.15) in order to award women who
took a leading role in operations contributing to increased business andresults.

SG Holdings Group has conducted overseas training visits since 1979.
In fiscal 2013, we introduced activities such as local corporate observationand group work, and have renewed our training content to focus on

Employing People with Disabilities
Human Rights

Labor Practices

global personnel resources in order to cultivate the next generation of
excellent human resources. At the same time, we have changed the

The SG Holdings Group actively promotes the employment of people

selection method for trainees to open application, and are transformingwith disabilities. We continue to promote improvements that allow boththe Group into a place for those with a strong will to grow along withthose with disabilities and those without, to exercise their individuality

the rapidly expanding Asian market and study hard. We will continue toand expertise and to work in a lively manner.

cultivate global human resources who will contribute to expanding ourbusinesses.

Employee Award System

Pleasant Workplace Environment
Employee Satisfaction Survey

Labor Practices

Human Rights

Labor Practices

Each year the SG Holdings Group holds the Employee ExcellenceAwards in the form of the SG Holdings Group Award Ceremony, in which

The SG Holdings Group has conducted employee attitude surveys sinceGroup employees who have delivered superior results are recognized.

fiscal 2013, with the goal of understanding Group employee attitudes,

Recognizing employees who have significantly contributed to

identifying issues, and making improvements. Specifically, we conductorganizational profits and growth during this award ceremony increases

web-based questionnaires for Group employees, carry out analysis based

motivation and spreads efforts and knowledge throughout the Group.

on replies, and provide feedback on the results throughout the entire

Our goal is to use this as a model to bring about even better results andGroup. We then take initiatives toward improving possible issues in each

improve quality. In fiscal 2013 we shared information on the efforts andarea based on these results. We will continue to improve the quality of

results of outstanding employees, and conducted an award ceremony toour products and services, and realize the creation of a positive growthwhich we invited the families of award winners.

cycle connected with increasing customer satisfaction by incorporating
the opinions of our stakeholder employees into management.

Initiatives to Promote Diversity

Preventing Harassment
Human Rights

Labor Practices

Promoting the activities of female employees
Human Rights

Labor Practices

Each year between June 1 and June 30 the SG Holdings Group holds
Harassment Prevention Month. During this period the Group engages in

To promote the activities of female employees within the SG Holdings

harassment prevention activities, with the main goals of respecting theGroup we actively continue to expand job categories for female

diversity, character, and individuality of all employees, and promoting theemployees and recruit more women into management roles. In addition

creation of a bright workplace environment in which employees are notto establishing an environment in which women can work comfortably

subject to harassment but instead are able to feel hope and ambitionin terms of both systems and culture, we are taking initiatives to promote

toward the future. All employees participate in Group initiatives such as

career progression for our female employees.

displaying posters, teaching via videos and written material, and voluntary
inspections of workplaces, and work toward creating a considerate
workplace that is pleasant for all employees.

Women's Career Support ForumSG HOLDINGS GROUP CSR Report 201437

Life Support/Work-Life Balance
Initiatives
Creation of Life Support Functions
Human Rights

Holding Mandatory Retirement Seminars
Human Rights

Labor Practices

The SG Holdings Group held Mandatory Retirement Preparation

Labor Practices

Seminars in Tokyo, Osaka, and four other locations across the country for
employees who are preparing to retire during the next fiscal year. During

The SG Holdings Group has established life support functions in orderfiscal 2013, 152 employees participated. The seminars featured topics

to improve job and employee satisfaction. We support our employees inretirees will face, such as retirement procedures, continued employment,

coming up with favorable life designs by expanding benefits programs,

financial planning (pensions, retirement pay, taxes, etc.), and health. The

offering PR and general knowledge that provides beneficial life

SG Holdings Group is working hard to help employees imagine their lives

information, and offering public awareness so that employees can learn

after retirement, and to resolve any issues.

how to make best use of it.
We are constructing an environment which promotes individual
employee growth and allows them to perform at their full potential byenhancing benefit package policies with a focus on life support functions.

Mental Healthcare Initiatives
Human Rights

Labor Practices

We also offer a benefits package website called "Familink" that allows
employees and their families to obtain information about the benefits
packages.

The SG Holdings Group continues to promote mental health measuresin order to maintain and improve the mental health of employees andtheir families. We established SG Holdings Group Health Dial 24, a means ofcontacting specialized institutions for consultation. It is available 24 hours

Life Support Functions Diagram

a day by Internet and toll-free telephone. In fiscal 2011, SG Holdings andAwareness

Awarenessother companies introduced a mental health program and are currently
offering self-check and education programs. We will continue to work to

Individuals (Life Design)

prevent mental health problems.
PR/General
Knowledge

Society (Benefits Package)

PR/General
Knowledge

Country (Society) (Social Security)

Comment from management
Hiroyuki Urushizaki
Director
SG Holdings Co., Ltd.

Comment from an expert
Professor Hiroshi Ishida
Visiting Professor, Graduate School of Economics, Kyushu University
Executive Director
Caux Round Table - Japan

With over 70,000 employees across all companies in the Group, people

One employee issue worth noting in the logistics industry is disparity

are at the heart of SG Holdings Group's businesses. While utilizing thein workplace environments, in particular working hours, work safety, andcharacteristics of each region and corporation, we continue to provide

treatment of employees. Of these, I would like to point out how progressive

workplace environments that are pleasant for our employees to work in. In

their initiatives supporting the activities of female employees are, in an

particular, we are working to improve quality and create businesses that takeindustry that often tends to be male-oriented. I hope for activities that are

advantage of the unique traits of women through the WakuWaku Women's

aware of diversity on a wider scale, such as the treatment of people with

Project, an initiative to leverage the ability of our female employees.

disabilities and elderly employees.

As the birth rate declines and the population ages, corporations are

On the other hand, due to the severe ups and downs of the logistics

under increasing pressure to revise their personnel strategies. We intend toindustry, it is necessary to manage possible long working hours during busy

become a group that can offer work-life balance initiatives, work styles that

periods. I look forward to seeing the Group continue to set and implement

suit the lifestyles of our employees, as well as a pleasant and diverse work

concrete and clear policies to address this.

environment.

Additionally, expanding globally with a focus on Asia requires a higher
level of response when it comes to these issues - that is, business andhuman rights. While this is a topic many Japanese companies have not yet
begun to engage with, looked at another way, this is an opportunity to gainsocial trust before anyone else. I'm looking forward to seeing the activitiesof the SG Holdings Group.

38

SG HOLDINGS GROUP CSR Report 2014

Management

Management
We will strive for lean and speedy management,
as well as engage in efforts to enhance governance and establish a risk management system.

Risk Management System MaintenanceCorporate Governance

Organization GovernanceCorporate Governance System
Organization GovernanceIn order to create a framework in which business risks that have a serious
effect on management can be dealt with in a cross-sectoral manner, we

The SG Holdings Group strives to slim down our management structure

are building up our risk management system, which will enable eachand practice speedy management, as well as work to enhance governancecompany in the Group to understand, evaluate, and manage the risks

through separating management audit functions and business affairs, andinvolved within their fields of business.

clarifying authority and responsibility.

During fiscal 2013 we drafted a BCP (Business Continuity Plan) and

Since fiscal 2012, we have appointed a CSR committee to carefully

established a BCM (Business Continuity Management) system in order toconsider the content of important CSR activities to be carried out, create

minimize business interruptions during emergencies.

management systems, and promote continuous improvement activities.

We will continue to build and enhance systems in preparation forvarious risks.

 Board of Directors

 Risk Management Meetings

Manages business by making decisions and reporting on important

Determines risk management regulations in order to minimize losses

matters such as budgetary control.

resulting from risks, and comprehensively manages risks across all

Oversees the business management of each director.

companies.

Holds regular monthly board meetings.

Establishes a group risk management system that cross-sectionally deals

 Board of Auditorswith various risks that could have a serious impact on management.

Audits the legality and validity (enhances corporate governance andComposed of the risk management managers and supervisors of the

management regulations) of the business management of directors, bycompany, as well as the representative directors of each company.

participating in board meetings and other important meetings.

Held monthly.
 Investment Review Committee

The Board of Auditors is composed of four individuals.
 Management Strategies Meetings

 Information Investment Review Committee Administration Department Directors' Meetings

Determines validity of investments based on their compatibility with Group

Directs and shares important matters such as Group management

management strategies, necessity, investment results, and risk awareness.

strategies and policies; confirms the status of resulting businessAlso verifies the status and results after investments have been made.
 CSR Committee

strategies, policies, management, and controls; and discusses topics

Carefully considers important planned CSR activities, creates management

such as policies and countermeasures.
 Management and Administration Enhancement Committee

systems, and promotes continuous improvement activities.

Promotes and monitors initiatives for enhancing management
controls such as internal controls.

Corporate Governance System
Stakeholders (clients, business partners, local community, shareholders, employees)
Shareholder Meetings
Election, Dismissal

Reports, Discussions

Reports

SG Holdings GroupElection, Dismissal

Election, Dismissal

SG Holdings Co., Ltd.

Board of Auditors

Board of Directors
Assignment

Representative Director
ApprovalManagement and Administration Enhancement Committee
Investment Review Committee
Information Investment Review Committee
Budget Committee

Reports

Cooperation

Internal Auditing Department
Reports

Financial Auditor

Legal Advisors

Auditing, etc.

Supervision

Business Affairs

Cooperation

AuditsManagement Strategies Meetings

Policy, Planning,
Deliberation, Assignment,
Approval, Supervision, etc.

Administration Department Directors' Meetings

Head Office Departments / UnitsCSR Committee

Reports

Cooperation

AuditsRisk Management Meetings

Management Guidance / Approval, Assignment of Important Issues
Agenda, Reports / Prior Consultation

Group Companies

SG HOLDINGS GROUP CSR Report 201439

Stakeholder Management and Fundamental
CSR Concept
Organization GovernanceCompliance
Basic Internal Control Policy

Fair Business Practices

Organization GovernanceFair Business Practices

We are moving forward with stakeholder management, in order toremain relevant as a business group that society depends on, and to carry

We make sure that our internal controls function effectively, and evaluate

out efforts that enable us to grow as a business together with society

them to make necessary improvements. We also continuously review

in a sustainable manner. In addition to enforcing compliance and risk

our policies to keep up with changes in the management environment,

management, we provide benefits between society and corporations

and strive to develop more effective internal controls. SG Holdings has

by contributing to society through our business activities as a means

formulated a Basic Internal Control Policy.

of running the Group in a way that meets the expectations of all of ourInternal controls for the Group are managed by the SG Holdings Internal

stakeholders, such as customers, business partners, local communities,

Controls Promotion Office, with the Internal Controls Promotion Section

shareholders, and employees. Carrying out our corporate socialof the Group's core business, Sagawa Express. Sagawa Express provides

responsibility in this way is the basic policy of the entire Group.

explanations of internal control-related documents to the heads of each

SG Holdings Group's CSR activities are based on two major pillars:branch office and each sales office, while also maintaining and evaluating(1) "activities as a business," which means to provide excellent social

internal controls for the Sagawa Express headquarters and each branch

infrastructure, and (2) "activities as a corporate citizen," which means to

office.

meet stakeholder expectations through social and environmental efforts.
Through these two types of activities, SG Holdings Group will continue its

 Basic internal control policy items

efforts to grow together with society in a sustainable manner, and to carry

1. Systems for ensuring that director's and employee's duties arecompliant with laws, ordinances, and company statutes

out activities which fulfill the requests of all of its stakeholders.

2. Systems related to the storage and management of information
concerning director's duties
3. Other systems for regulations concerning the management of loss

SG Holdings Group's CSR Frameworkrisks
4. Systems for ensuring that director's duties are executed efficiently
5. Systems for ensuring the suitability of the duties of corporate groups

Activities as a corporate citizen
Meeting and contributing to stakeholder
expectations

made from applicable public corporations, and from their parent

Sustainable Society

Offering superior social infrastructure

Sustainable Business

Sincere Business Management

Activities as a businessand subsidiary companies
6. Items related to applicable employees when auditors place said
employees in positions that must be supported
7. Items related to the independence of said employees fromdirectors
8. Systems for directors and employees to report to auditors, and othersystems for reporting to auditors

SG Holdings Group's CSR

9. Other systems for ensuring that auditors are inspecting efficiently

Strengthening the Compliance System
Organization GovernanceFair Business Practices

To deal with changing social and management environments, and tobuild a corporate culture that performs business activities with integrity,
we are working to improve the maintenance and management of ourcompliance system, which abides by the SG Holdings Group Code of
Ethics and Conduct.
We will continue to promote initiatives as pillars supporting the internal
controls of the entire Group.
CSR Committee

40

SG HOLDINGS GROUP CSR Report 2014

Management

Enforcing Fair-trade
Conducting Ethical Code of Conduct Training
Organization GovernanceLabor Practices

Fair Business Practices

Information Security
Information Security in Corporate Social
Responsibility
Consumer Issues

The SG Holdings Group trains all employees on ethics and behavioral
standards, under the assumption that Group business activities have

Sagawa Express considers information assets (information andan effect not only on certain customers, but on society as a whole. This

information systems) to be important management resources for fulfillingtraining is conducted not only for employees of all Group companies,

our corporate social responsibilities, conducting business continuity,

but for temporary workers, and everyone at Sagawa Express involved inpreserving information security, as well as ensuring business stability,

collection and delivery. Our goal is to raise the ethical standards of theefficiency, and trust. We have defined basic information management

Group by enhancing the humanity (character building) of our employees,

policies and continue to strengthen information security to enhanceand developing a wide variety of knowledge, skills, and ethical viewpoints

preservation of information assets, minimize risk, and reduce losses when(moral framework). During morning meetings and other meetings,

a risk actually occurs.

employees read through the SG Holdings Group Code of Ethics andConduct to spread awareness. Activity results are managed throughtraining records, and we attempt to accurately share this information with

Obtaining ISO27001

all employees.

Consumer Issues

We will continue to aim for an even deeper sense of awareness in all
employees, for the ethics and manners of each employee to align withthose of the Company, and to increase the quality of our services.

Sagawa Express (Sales Department, Sales Section and Reverse Solutions
Section) has obtained the international
ISO27001:2005

information

security

management system certification, in order toCutting Relationships with Antisocial Forces
Organization GovernanceFair Business Practices

meet our customers' needs and improve userfriendliness by providing services that require
high levels of information security.

The basic policy of the SG Holdings Group is to cut any ties with
antisocial forces in order to take a firm stance against such groups that
endanger the order or safety of civil society. This policy is found in ourbasic internal control policy and Corporate Charter of Business Conduct.
The same policy is also defined in our Code of Ethics and Conduct, so

Protection of Intellectual Property

that all employees can understand it thoroughly. As an example of one

Fair Business Practices

Consumer Issues

Community

activity, the staff in charge of undue request prevention in each Group
company takes a central role in conducting fact-finding surveys on

We protect the intellectual property rights of the Group to maintain thewhether auditors assigned to our business partners or employees receive

health of our business activities, manage our intellectual property rights,

inappropriate requests.

and spread knowledge and awareness so that the intellectual property

We will continue to develop the system, thoroughly share information
on antisocial forces and our response, and prevent or block those who
would interfere with our business partners and others.

rights of other parties are not infringed upon.
Our initiatives for protecting the intellectual property of the Group
include acquiring rights for the intellectual property of each company in
the Group, and maintaining control of our intellectual property rights. We
regularly confirm the intellectual property rights of other parties to avoid
intellectual property right infringement, and share this information with
relevant divisions and send out awareness messages.
We also spread knowledge and awareness of these activities throughout
the entire Group. The SG Holdings Code of Ethics and Conduct includes
a basic intellectual property policy as one part of "Management ofCorporate Property and Information."
We will continue to appropriately manage intellectual property.

SG HOLDINGS GROUP CSR Report 201441

Foundation Activities
The SG Holdings Group has established incorporated foundations and continues to conduct various activities tocontribute widely to the public good.

Sagawa Foreign Students' Scholarship
Community
Foundation

Sagawa International Economic
Cooperation Foundation

http://www.sagawa-ryugakusei.or.jp/newhp/

http://www.sagawa-kokusaikeizai.or.jp/

Community

As a way to contribute to friendly relations with Southeast AsianThe Sagawa International Economic Cooperation Foundation

countries, the Sagawa Foreign Students' Scholarship Foundation

donates transport vehicles and accepts trainees to study vehicle

provides scholarships to students from Southeast Asia to attend

maintenance skills to improve and develop emergent nations in Asia.

Japanese universities. We want scholarship students to have a fulfilling

In fiscal 2013 the Foundation donated four used trucks as a means ofand positive experience studying in Japan, so we are engaged ineconomic assistance. The Foundation accepted five trainees from China

activities that offer mental and spiritual support in addition to financial

and five trainees from Laos for vehicle maintenance skill training.

support.

Beginning in fiscal 2015, we will survey needs in other countries andDuring fiscal 2013, 109 students from 87 universities all over thecountry applied, of which 16 applicants were selected as our 28th term

continue to promote activities that suit the environments of the areas
we assist.

scholarship students. During the selection certificate award ceremony
held in November 2013, Eiichi Kuriwada (Foundation Director) stated,"I hope that you will gain a better understanding of Japan throughinteracting with Japanese people and experiencing Japanese culture
and society. I am looking forward to you flourishing as citizens of the Results of accepting trainees for vehicle maintenance skill
training (cumulative)
China: 157 trainees, Laos: 23 trainees
 Results of donating repaired used trucks (cumulative total)world." Kham Tipmart (in the second grade of the doctoral course,

China:

Graduate School of Niigata University), an exchange student from

Mongolia: 102 vehicles

Myanmar who represented the scholarship students, responded thatPeru:

150 vehicles"I would like to acquire knowledge and experience in Japan, returnLaos:

62 vehicles

home, and contribute to Myanmar's economic development."

Malawi:2 vehicles

During the network event, thirty-five 28th term scholarship students

3,000 vehicles

Total: 3,316 vehicles

and graduates experienced Japanese culture, art, and hospitality.

42

28th Graduating Class Award Ceremony

Trucks donated to Laos

Kham Tipmart speaking of her aspirations

Speech by a vehicle maintenance skill trainee

SG HOLDINGS GROUP CSR Report 2014

Foundation Activities

Sagawa Foundation for Promotion ofCommunity
Cancer Research

Sagawa Art Museum Public Interest
Community
Foundation

http://www.sagawa-gan.or.jp/

http://www.sagawa-artmuseum.or.jp/

To contribute to improvements in medical welfare, the Sagawa

The Sagawa Art Museum exists to cultivate creativity and developFoundation for Promotion of Cancer Research supports research

culture in citizens through the holding public exhibitions of works of art

and development efforts related to basic cancer studies and appliedand handicrafts. The Museum also works to collect, store, and researchtreatments. It offers research grants and awards for basic studies andworks of art, as well as to promote activities to spread education withapplied treatments to promising cancer researchers, holds cancer

the goal of widely contributing to social creativity as a space for the

related lectures/citizen courses, and publishes a report on researchtransmission of cultural exchange.

results.

The Museum also holds specially planned art exhibitions, focusing

In fiscal 2013, we nominated research eligible for the 25th Sagawa

on permanent exhibitions of the works of Ikuo Hirayama, Churyo Sato,

Cancer Research Support, and selected winners of the 11th Sagawa

and Kichizaemon Raku. The Museum also promotes education throughSpecial Award and the Sagawa Nursing Care Special Award.

events such as Sagawa Kids Museum (p. 34) and concerts, to cultivate
aesthetic sensibility that creates abundant senses of expression and Sagawa Cancer Research Support
The Foundation reviewed 183 applications received from research
institutions nationwide.

sensitivity.
We will continue to further open the Museum as a place for culturalcommunication with regional communities.

The Foundation awarded research funds of one million yen each tofourteen research projects, including to Professor Atsushi Kaneda

 Specially planned exhibitions(Department of Molecular Oncology, Graduate School of Medicine,

The Tale of Genji as Drawn by Hiroshi Senju: Gazing at the Heian Dynasty Sky

Chiba University), for his "Basic Research Toward Molecular Target

Mitsumasa Anno Exhibition: Anno's Work

Treatment of High Expression of EZH2 in Pulmonary Small Cell

Ikuo Hirayama Exhibition: Silk Road & Eternal Journey
Kichizaemon X: Dyeing & Weaving by Michiko Uehara, Pottery & Tea

Carcinoma".
 Sagawa Special Award and the Sagawa Nursing Care Special Award
The foundation awarded a prize of five million yen each to the two

Containers by Kichizaemon Raku, Silk Tea Pouches by Hanshiro Tsuchida Events

recipients of the Sagawa Special Award

Lobby concerts, twilight concerts, exhibition commemorative talks,

The foundation awarded a prize of one million yen each to the two

Seiro tea ceremony, Kanro tea ceremony, exhibition commemorative

recipients of the Sagawa Nursing Care Special Award
 Held our 12th Public Lecture, "Radiant Life"The lecture was held in February 2014 in the Yomiuri Hall (Yurakucho, Tokyo)

tea ceremonies
 Main educational activities- Sagawa Kids Museum 2013
17 workshops
Participants: 1,198- Collaborative classes with Moriyama City Board of Education
Art appreciation class in nine public elementary schools in the city
Participating children: 934- 5th Children's Art Contest and Excellence Exhibition

25th Award Ceremony

Sagawa Art Museum
exterior

12th Public Lecture

Art appreciation class

SG HOLDINGS GROUP CSR Report 201443

International Group Company Business and CSR Activities
The SG Holdings Group continues to increase convenience for our stakeholders and solve social issues through ourinternational businesses and services.

Recent Main International Business Developments
June 2012:

International business headquarters, SG Holdings Global Pte. Ltd. established

July 2012:

Obtained 26% of shares in Sindhu Cargo Services Pte. Ltd., an Indian logistics company

May 2013:

Obtained 90% of shares in Ameroid Logistics(s) Pte. Ltd., a Singaporean logistics company; Ameroid
becomes a subsidiary

March 2014: SG Sagawa USA, Inc. (located in outskirts of Los Angeles, USA) begins business
June 2014:

Obtained majority of shares in Expolanka Holdings Plc, a Sri Lankan logistics company; Expolanka becomes a
subsidiary

SG Sagawa USA Begins Service
Utilizing our global network to assist in mail-order that crosses borders from the USA to Japan
SG Sagawa USA, Inc. (headquartered in California), our local subsidiary

Angeles area, we will investigate opening up sales offices in other cities

in the USA, opened for business in March 2014. While the Group includes

and states in the future. We are also setting our sights on expanding

a local subsidiary in Hawaii, this is our first site on the mainland.

delivery outside of Japan and into other regions in Asia.

In response to increasing international transportation as e-commerce
becomes globalized, we will utilize the Sagawa Express network within

Trade name:

SG Sagawa USA, Inc.

Japan to offer transport services from the USA to Japan for Internet

Established:

November 2013

e-commerce businesses in the USA, and work to continuously expand

Headquarters: 16927 S.Main St., Unit A, Gardena, CA 90248

the scale of this business. Beginning with package collection in the Los

Director & CEO: Tomonari Niimoto
Capital:1 million US Dollars

Small-lot Consolidated Service* Started between Industrial
Parks in and around Bangkok
Sagawa Express Thai Container Distribution Service Co., Ltd., our local
subsidiary in Thailand, began offering small-lot transportation services in* Small-lot consolidation service: Consolidated freight transport service in whichsmall-lot freight is collected from multiple customers, loaded onto a single
truck, and delivered.

January 2014 to meet the small-lot freight transportation needs of ourcustomers, focusing on Japanese factories expanding into Thailand andindustrial parks in and around Bangkok. With a particular focus on nextday delivery, we offer services with the same quality as in Japan, such as

Trade name:

Sagawa Express Thai Container Distribution Service Co., Ltd.

Established:

June 1989

Headquarters: 138 Moo 5 Tiwanond Road, Tambol Bangkadi,
Amphoe Muang, Pathumthani 12000 Thailand

freight tracking, payment on delivery, and receipt return in Thailand, which
does not have as robust a small quantity freight transport network. These
services allow us to offer the inexpensive and reliable next-day delivery
our customers require.

44

SG HOLDINGS GROUP CSR Report 2014

Representative Director and President: Makoto Arai
Capital:

103 million Thai Bahts

Sagawa Express Thai Container
Distribution Service Co., Ltd.
z NONTHAPOON orphanage charity drive

Shanghai Dazhong Sagawa Logistics Co., Ltd.
z Recognized as an important road freight (logistics) company in Shanghai
In October 2011, Shanghai Dazhong Sagawa Logistics Co., Ltd. was

A donation box is always available at headquarters. Funds donated byrecognized as an important road freight (logistics) company in Shanghai

employees are collected annually, and donated to orphanages. This yearby the Shanghai Traffic Transportation Business Committee, which falls

we were able to donate

under the Shanghai Transportation Bureau. This organization proposes and10,000 Thai Bahts (aboutauthorizes how logistics and transport contribute to Shanghai and its people,

32,000 yen).

and authorizes proposals for in-building delivery and cooperative delivery.
Our proposal for vehicles
that are environmentallyfriendly was recognized

Presenting donations

Sagawa Express Philippines, Inc.
z Assistance for disaster victims

again in 2013.

Certificate from theassociation

We donated funds (disaster victim rehabilitation assistance) throughthe Philippine Red Cross to regions affected by Yolanda, a major typhoonthat struck in November 2013.

z Cleaning activities on Future Island (Taopu)
In October 2013 we cleaned around the company grounds (Future
Island (Taopu)). We participate in this activity twice per year, and this yearz Support for orphanages

20 employees took part

We have donated computers to children in educational foundation

and were able to deepen

institutions managed by priests, and donated encyclopedias to libraries.

their connection withlocal people.

Local employees cleaning

Support activity

Topic

Female-employee Activity

Sagawa Express Vietnam Co., Ltd.
z Communication among employees through sports
We support the sporting activities of soccer and badmintonfans. Sporting activities refresh the mind and body, and stimulate

Initiatives at Wuxi Feisu Logistics Information Technology Co., Ltd.
More and more women are being appointed to sales andmanagement positions in Chinese corporations. However, there
are few Japanese women working in Japanese corporations abroad.
Female staff are dispatched to the SG Systems international subsidiarycommunication among employees.

Hisoku* for this very reason. In addition to mastering Chinese, growing
accustomed to China, and building our sales network, they help
strengthen the system from a management point of view. While there
are relatively few women in the systems industry, 70% of our local
employees are women.
The SG Holdings Group will continue to promote the same female
employee activity initiatives in our international locations.

Supporting the sporting
activities of employees* Hisoku: Established in Jiagsu, China, in July 2011, this is the first international
SG Systems subsidiary. The official name of the company is Wuxi Feisu
Logistics Information Technology Co., Ltd. The company mainly deals with off
shore development for Japan and logistics-related system development forJapanese corporations in China.

SG HOLDINGS GROUP CSR Report 201445

SG Holdings Group
Third party Opinions Regarding "CSR Report 2014"<Positively-rated Aspects>

As for management, I am impressed with their creation of a businessOverall, I feel that this is a good CSR report that clearly reflects thecontinuity management (BCM) system, as mentioned in special feature

corporate philosophies of the SG Holdings Group: "Trust: earn the trust

article 1 (p. 10 to13). During this fiscal year, Sagawa Express was selected asof customers and society and grow together," "Create: create new value,

a designated public institution, as defined by the Disaster Countermeasurecontributing to social development," and "Challenge: always take on the

Basic Act. It goes without saying that the transport of emergency materials

challenges presented to us, pursuing all possibilities." The report includes

requires not only transport technologies, but logistics technologies suchmany honest opinions from stakeholders such as employees, and reallyas sorting and storage. However, it is also necessary to establish an

shows the character of the Group.

information network to share information on where materials are and inwhat quantity, and how much of what materials are required in which

Fiscal 2013 was the start of the new mid-term management plan for thelocation. I hope that the SG Holdings Group will build this information

SG Holdings Group, called the Third Stage Plan. The Group has succeeded

system in collaboration with concerned government agencies, and willin creating and challenging various things based on an awareness of theirfunction effectively as a social infrastructure not only for their customers,

responsibility for logistics, which is an important part of the infrastructure

but for all of Japan.

of society. However, as mentioned in the Message from the Chairman andPresident, the Group is taking advantage of synergy and moving away

<Future Requests>

from merely transporting things toward activities that provide solutions

It will be necessary to introduce the PDCA cycle to suitably andthat meet the needs of their customers, based on their Third Stage Plan

continuously improve their CSR activities. I would like the SG Holdings

this fiscal year. I rate the Group highly as they continue to consider theGroup to include an action plan that shows a list of the goals, details,

value they can provide to society and people, even as times change - interms, target values, and degree of attainment for the main CSR activities

other words, taking a corporate stance that keeps CSR in mind as theythat the SG Holdings Group is involved in.

pursue their core businesses.
Special feature article 2 (p. 14 to 15) introduces policies intended to
While the Group places safety at the forefront of its businesses andpromote the activity of female employees. Setting the goal of having

continues to conduct numerous safety initiatives such as the Driver

female employees responsible for 30% of business revenue and initiatives

Contest and Environmentally-Friendly Driving, I would like to draw

leading to the creation of new businesses shows the degree to which

attention to the Safe Driving Training Service that Sagawa Express (p. 22)

the SG Holdings Group understands diversity management. I would likebegan to offer this fiscal year. This safe driving training program is based

to see the Group expand these initiatives next fiscal year to the elderly,on their considerable knowledge and experience. I believe that providing

people with disabilities, and people from other countries.

it to other corporations will help create a safe driving society.

Due to the nature of their business, the SG Holdings Group cannot
avoid engaging in environmental initiatives. Their continually motivatedcorporate stance on reducing their burden on the global environment
can easily be seen in such examples as increasing the number of natural
gas trucks they own to approximately 4,000 vehicles this fiscal year (p. 23),and their efforts to become the first company in the logistics industry toobtain carbon-neutral certification (p. 26). The facilities logistics service forlarge-scale facilities (p. 27) provided by Sagawa Express and World Supply
is one example of a solution the Group provides to other corporations.

Mika Takaoka

I believe this is a good example of core business CSR that curbs CO2

Professor, College of Business,
Department of business,
Rikkyo University

emissions by alleviating traffic around facilities.

46

SG HOLDINGS GROUP CSR Report 2014

CSR Report 2013 Questionnaire Summary Results
We would like to thank everyone for sending us their opinions on our CSR Report 2013 through the questionnaire
form on our website, and the questionnaire sheet included with the printed version of the report. Below are theresults.
Also, we are currently administering a questionnaire for CSR Report 2014. We would appreciate your cooperation.
How did you feel about this report?

 How do you feel about our CSR activities?

 Overall rating

Cannot evaluate(no expectations)0%

Very good(understood)
33%

Evaluate highly(have great
expectations)37%

Evaluate normally(have expectations)
63%

Good
(mostly understood)67%

 Please tell us the topic you found most interesting.
 Please tell us how you felt about the amount of information in the reportInsufficient2%

Sufficient
64%(This includes multiple answers, so only the top 5 out of 12 are noted here.)
1 Special issue 1: Continue functioning as a logistics group that our customers
can trust, by bringing together the thoughts and abilities of each individual
2 Special issue 3: Striving to provide service that meets the needs of our customers
and a changing society
3 Support activities for areas affected by the Great East Japan Earthquake
4 Special issue 2: Ways SG Holdings Group can contribute to the creation of an
eco-friendly city
5 SG Holdings Group business outline: Connecting People, Society, and theRelatively sufficient34%

Future Please tell us how you felt about how easy the report was to read

 Main opinions- I felt your sense of responsibility toward the safety of society (Driver Contest,

Difficult to read3%

Easy to read52%

traffic safety, etc.)- I was very interested in the introduction of natural gas trucks and participationin the solar power generation business in order to reduce CO2- This is the first I have heard about such services as facility logistics in Tokyo
Skytree and other buildings and 24-hour phone support.

Relatively easy to read
45%

Please tell us about yourself

 Please tell us how you felt about how easy the report was to understandHard to understand9%

Easy to understand69%

Very easy to understand22%

Customer
Research/education institution
Student
Business Partner
Government/administrative organization
CSR/environmental specialist
Media organization
Corporate/organizational CSR/environmental staff
Employee of our Group or family member
Other

32%
0%
9%
11%
0%
2%
0%
0%
46%
0%

We will use your invaluable feedback in designing our reports and will reflect it in
our CSR activities. Thank you for your cooperation.

SG HOLDINGS GROUP CSR Report 201447

Communication Through Websites
SG Holdings Group uses various means of communication,
including websites, to relay information to our stakeholders,regarding CSR activities, information from other companies, andbusiness activities.
CSR (Corporate Social Responsibility) Activities

http://www.sg-hldgs.co.jp/csr/
SG Holdings Co., Ltd. Corporate Website

http://www.sg-hldgs.co.jp/
Financial Information

http://www.sg-hldgs.co.jp/finance/
SG Holdings Group Websites

68, Tsunoda-cho, Kamitoba,
Minami-ku, Kyoto, 601-8104 Japan
TEL: +81-75-671-8600
http://www.sg-hldgs.co.jp
Title — CSR Report 2014
Published — June 2014
Next issue planned for — June 2015
Printed by — Sagawa Printing Co., Ltd.

■ Sagawa Express Co., Ltd.
http://www.sagawa-exp.co.jp/■ SG Moving Co., Ltd.
http://www.sagawa-mov.co.jp/■ World Supply Co., Ltd.
http://www.world-supply.co.jp/■ Sagawa Global Logistics Co., Ltd.
http://www.sagawa-logi.com/■ SG HOLDINGS GLOBAL PTE. LTD.
http://sghg-sg.com/■ SGH Global Japan Co., Ltd.
http://www.sgh-globalj.com/■ SG Realty Co., Ltd.
http://www.sg-realty.co.jp/■ Sagawa Advance Co., Ltd.
http://sg-advance.co.jp/■ SG Motors Co., Ltd.
http://www.sg-motors.co.jp/■ SG Systems Co., Ltd.
http://www.sg-systems.co.jp/■ Sagawa Financial Co., Ltd.
http://www.sg-ﬁnancial.co.jp/■ SG Fielder Co., Ltd.
http://www.sg-fielder.co.jp/■ Nouvelle Golf Club Co., Ltd.
http://www.nouvelle-gc.co.jp/■ Sagawa Forestry Co., Ltd.
http://www.sg-hldgs.co.jp/sagawa-fore/