erthge
Corporate Social Responsibility Report 2010

For inquiries about this report, please contact:

68 Tsunoda-cho, Kamitoba, Minami-ku, Kyoto,
601-8104 JAPANCSR Environment Working Group

Tel: +81-75-671-8600
http://www.sg-hldgs.co.jp/
Title:CSR Report 2010
Date of issue: September 2010
Next issue:
September 2011

This report can be found at our website shown above.

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Corporate Social Responsibility Report 2010

Opinions from A Third Party

Table of Contents
1
2

Corporate Social Responsibility Report 2010

Opening Message for the SG Holdings Group Corporate Social Responsibility Report 2010
Message from the President

Attempting to deepen
Fourstakeholder
Perspectives onmanagement
the SG Holdings Group5

The Earthfinite.
The1more
we useView
resources the more they will decrease, and6 isSpecial
FeatureA Consumer’s
eventually
will bedepleted.
If toxicView
substances are released into nature, the global
1 0theySpecial
Feature2 A Customer’s
environment
gradually
destroyed.
Businesses are currently living in an era where
1 2 will
SpecialFeature 3 be
An Employee’s
View
the Earth1 islimit.
It depends
on whether
or not the world needs a business for it to
4 at its
SpecialFeature4 An Expert’s
View
live in such an era. My company is ceaseless in our self-questioning to know whether or
18
Philosophy and Guidelines of SG Holdings Groupnot we are needed by society, and demands are being made for us to constantly
20
CSR Concept and System of SG Holdings Groupquestion how we can contribute to the sustainability of the Earth. Businesses are not
22
Corporate Profile of SG Holdings Co., Ltd.
public property, however in an era where environmental and resource restrictions are
Holdings
Group
2 3 it is Outline
increasing,inevitable of
thatSG
businesses
will takeon more and more qualities like thatof public property.
24
REPORT/FY 2009 Business Results
Tadahiro
Businesses also create and publish CSR reports as part of the demands of this era. The
25
Business Operations Data of SG Holdings Group
Mitsuhashi
SG Holdings Group is clearly a leading business in these fields as they are already26
Management Vision and Mid-term Management Plan of SG Holdings GroupAffiliate professor
managing stakeholders using management standards and putting efforts into CSR. In
28
Business Operations of SG Holdings Group
Chiba University ofparticular, they are actively working on a number of subjects and obtaining results, such
Commerce Graduate School
30
Business Structure and Domestic Business Summaries of SG Holdings Groupas the “Climate
Savers Program”
as aBases
measureagainstglobalwarming, which calls for
32
Overseas
Operatingof SG
Holdings
Groupurgent 3solutions.
In this year’s
report, they are shown to be comprehensively
3Foundation
Activities
implementing such measures and receiving praise.
34
Opinions on CSR
However, creating a report worthy of the SG Holdings Group requires a few moreplans andEfforts on Safety
3 5improvements.
The first is a method of writing placed in the middle of CSR management. It must be
3 6 that
REPORT/FY 2009
BusinessasResults/
FutureTargetsto the expansion ofclearly shown
pursuing
CSR activities
a business
contributes
37
Scheme to Enhanced Safety
corporate earnings. For example, the transportation efficiency, etc. of a large-scale
41
Efforts on Eco Safety Drive
intensive facility can have such a position. It will also be possible to create an
42
Efforts on Safety by Vehicle Servicing and Safety Devices
appearance that gives a stronger impression of win-win situations for both the business
44
Looking to a Safer Society
and stakeholders. CSR usually has an image of tree planting and other environmental
Opinions
on CSR
activities46
as wellas philanthropy
activities, etc. for returning some profit back to society.
However the true nature of CSR activities is creating corporate earnings by being placed
47 Efforts on Environmental Conservationin the middle of CSR management.
48
REPORT/
FYI2009
Business
Results/
FutureTargets
The second
issue is that
had hoped
to seemid-term
goals
for corporate measures
4
9
ConceptofEnvironmental
Activities/Efforts
againstGlobalWarmingagainst global warming. The Democratic Party of Japan has stated goalsof reducing
5 3 gases
Environmental
Measures
forof
Transportation
greenhousein 2020 by 25%of those
1990, and 80%Optimization
by 2050. In the current
5 6 the Effective
Utilizationof Resources
fiscal year,
SG HoldingsGroup started
a new Second Stage Plan, however it would
58
Efforts
towards
a Recycling-oriented
Society
be appropriate
to detailthe relationshipof this new planand measures against global
60SG
Holdings
Group’s
Environmental
Activities
warming. Management planning and measures against global warming are not2
Effortsfor Biodiversity
separate6 issues,
they should
be seen as different sides of the same coin. I believe that6
3
Efforts
Environmental
Enlightenment
stakeholders will alsoon
takeconcern at thisissue when they see this report. If the SG
Building
Framework
PromoteActivities
Holdings6 4Group
has notayetcompletedtosuch
work, Environmental
they should explain
their situationand makeinclude such information in next year’s report.
66a commitment
Opinions onto
CSR
The third issue is that the jobs of the SG Holdings Group are geared towards male
67 Relationship with Society
employees, therefore the ratio of female employees is comparatively low. There wasalso a limit
effortsFY
towards
CSR activities.
However,Future
they stateda goal of raising
REPORT/2009 Review
of Operations/Targets
6 8 in thethe female
to 16% and areincreasing
utilizationof female employees.
Efforts ratio
on Services
Products
for Our
Customers
6 9 employee
Female 7management
has
also been introduced. An organizational balance between
With Our
Employees
2
male and
Withemployees
Society is important for sound business activities. If female
7 6femaleSocialAction jobs
Programs
7 7 with
employees
CSR activity
with leadership responsibility and female employeesthat fill CSR
activitiyroles increase, CSR activities will expand and grow deeper, and the80
Opinions on CSR
report will
greaterequality.
Activeassignmentof female
employees is a vital part
81 have
The
Third-party
Warranty
Report(Climate Savers
Program)82
Opinions from A Third Partyof CSR activities.
83

82

Title of the CSR Report Brochure

Bringing people, society
andthe future together
Cover Design

Based on infrastructure operations in distribution, a service indispensable to modern society, we want to link people
with other people and society to create a prosperous future. This strong desire of the SG Holdings Group inspired theadvertising slogan “Supporting people, commerce, and the future”.

A Sagawa Express natural gas fueled truck is driving in the space balancing a city and nature. This represents theenvironmentally-friendly
activities of the SG Holdings Group. A blue sky that stretches as far as the eye can see isWekeep peoplebusinessin touch,

above the natural gas fueled truck, and a cloud in the shape of people holding hands floats above. This is our
stakeholders
leadingthe
prosperous
lives throughourfuture.
operations. Through graphic designs such as this, we express the SG
andconnect
present
to theHoldings Group’s position of supporting a prosperous future for the global environment through our daily businessactivities.

Every day, we will make deliveries

Editorial Policies and Report Scopeto customers, to employees,

Editorial policies

We strive topartners,
use easy to understandexpressions with clear and concise explanations.
businessto communities,
The Ministry of the Environment’s “Environmental Reporting Guidelines 2007” and “Sustainability reporting guidelines

andindividuals
everywherein the world.
2006”(GRI) were referredto.

The data
results
for fiscal 2009
being
totaled(the activityGroup.
content includes some content from fiscal 2010).
This
is ourmission
atare
the
SG
Holdings
The applicable periods are specified for values that could not be reported as yearly result values due to the status of
the efforts.

With the close cooperation of our stakeholders,Applicable report period

wesupportpeople,society, and the future.
Marchwill
21, 2009
to March 20,
2010

Applicable report organizations
The activities of the SG Holdings Group businesses and foundations are shown with a focus on the activity results of
Sagawa Express.

Other report provision methods
This report can also be downloaded from the website of the SG Holdings Group. (http://www.sg-hldgs.co.jp/)

Editor’s postscript
Through our businesses, the SG Holdings Group seeks to complete and develop industrial/societal infrastructures as we fulfill our
CSR duties through sincere efforts towards operations with high public praise such as those shown.
The opinions on the SG Holdings Group and the assistance received from many of our stakeholders were utilized in the creationof our 2010 CSR report as much as possible. As editor, I was able to once again see the positive aspects of the SG Holdings Groupand find areas where we should improve. I am grateful for my role.
With this CSR report, I hope that many people are able to understand our activities. In addition, I hope that our stakeholders will
give us their valued thoughts and opinions so that we can continue to implement business activities that strengthen the bonds
between people and society.

SG Holdings Co., Ltd
CSR manager

Title of the CSR report brochure/Cover Design/Editorial Policies and Report Scope/Editor’s Postscript

SG HOLDINGS GROUP Corporate Social Responsibility Report 2010

1 83

Bringing people, society
and the future together
We keep people in touch,and connect the present to the future.

Every day, we will make deliveries
to customers, to employees,
business partners, to communities,
and individuals everywhere in the world.
This is our mission at the SG Holdings Group.

With the close cooperation of our stakeholders,we will support people, society, and the future.

1

from the President
We will strive to fulfill
our corporate social responsibilities
through stakeholder-oriented management,
earning the trust of the people we serve.
Logistics is indispensable to social infrastructures.
At the SG Holdings Group, logistics is at the core of everything we do.
We believe that our most important contribution to society lies in our sincerity for the advancementand development of our logistics operations,contributing to the growth and development of industry and social infrastructures.
We increase our stakeholders’ understanding of the role we play, and making
that awareness an integral part of our operating base.
Through a wide range of activities, we are preparing to deliver a better future.

Eiichi Kuriwada
Chairman and President
SG Holdings Co., Ltd.

2“The fierce wind separates the strong grass from the weak”
This is the fifth year since the SG Holdings Group adopted a holding-company
structure. During that time, we have weathered some difficult business conditions,
including intense fluctuations in the cost of fuel and a global economic slump. Yet for
the SG Holdings Group, such times are an opportunity.

SG HOLDINGS GROUP Corporate Social Responsibility Report 2010

Such chances include looking back at our past operations, strengthening our positions,and seeking new paths. A classical Chinese proverb says, “The fierce wind separates thestrong grass from the weak.” When strong winds blow, the weaker stalks are knocked
down, while sturdier grasses bounce back no matter how many times they are pushed.
In other words, when conditions become unfavorable, the true value of a person or acompany is revealed. At the SG Holdings Group, we find reason to remain positive thisadversity. Our many business locations and staff departments that support them areworking together to build a stronger corporate group, a resilient grass that withstands
the harshest winds.

CSR is our expression of sincerity in operations

Getting the basics thoroughly right
When I joined Sagawa Express in 1977, at every turn we used to hear, “do a thoroughjob of the basics.” Today this attitude permeates our operations and management andis a part of the SG Holdings Group Code of Ethics and Conduct. All employees follow
this code every day, working in harmony with communities and the naturalenvironment.
To ensure compliance with all applicable laws, we have enhanced transparency in
our operations and built a robust system of internal controls. Of course, these structures
allow sufficient flexibility to respond to changing social needs.
For the SG Holdings Group to contribute even more to the communities in which we
do business, we are pouring efforts and resources into further measures to educate
individuals and develop systems.

Management that adapts to changing times,
with logistics at its coreAt the SG Holdings Group, logistics is the core of our operations. Through logistics,
we play a vital role in enhancing industrial and social infrastructures. At the same time,logistics operators cannot avoid the risk of traffic accidents or placing burdens on theenvironment. As an enterprise that uses public roads to serve the growth of business,
we can only earn the continuing trust of society if the effects of our operations onsociety are viewed objectively then addressed, if we listen humbly to our customers,
and if we respond quickly and flexibly as society changes. This reality means that
corporate social responsibility (CSR) must be integrated into our everyday operations.
An enterprise raises its value only when its operations play a positive role for its
customers and the communities in which it does business. Business and CSR are
inseparable. By working to improve road safety and prevent global warming, the SG
Holdings Group contributes to the prosperity of society through our operations.
The SG Holdings Group never forgets to give back to the communities on which our
success depends. We work through various foundations to support medical care andthe arts in the community, support exchange students from countries in Asia, andprovide assistance in the form of goods and people to the developing world. We areworking hard to make people’s lives fulfilling.

3

from the President

Preserving nature for the next generation

The foundations of our medium-term management plan:stakeholder-oriented management
The period from FY 2007 to FY 2009 encompassed the first phase of the SG HoldingsGroup’s medium-term management plan, which encapsulates our vision of the group
10 years in the future. The aim of this “First Stage Plan” was to establish an operatingbase that will support sustainable growth. In deliveries, logistics, and other operations,
all group companies are united in a concerted effort to grow and expand. In FY 2009,
our operating revenues were ¥888.1 billion and operating income was ¥30.2 billion.
The “Second Stage Plan” begins in FY 2010. The themes of this stage are expanding
the group’s domain of operations and strengthening our earnings base. In courier
operations, we aim to further strengthen our earnings base, while more generally weintend to focus management resources on our core operations. These themes and aims
constitute the four “pillars” of operations that are the target of the Second Stage Plan.
All of these initiatives of the Second Stage Plan are built on a single foundation:
stakeholder-oriented management. In today’s business world, any enterprise thatdesires long-term sustainable operations must maintain strong and cordial
relationships with their customers, employees, regional community, shareholders, andbusiness partners. We will strive to create new value guided by the knowledge thatstakeholder awareness is crucial in winning trust in our operations and brand.
To bolster awareness of stakeholders, we are accelerating our CSR activities. We will
ask ourselves what we can do for our customers, our employees, and the community,
then determine the answers and take action as the surest course toward a prosperous
society.
Supported by stakeholder-oriented management, the SG Holdings Group willcontinue to meet each new challenge, pursuing our vision of “Each group company
constructs its business platform and creates new value.”4

SG HOLDINGS GROUP Corporate Social Responsibility Report 2010

We are working with stakeholders
to create fresh value.

The SG Holdings Group is striving on many fronts to preserve the environment andrestrain global warming. Our fleet of delivery trucks is converted to compressed naturalgas, which emits little CO2. Instead of depending entirely on trucks, we use trains andships where possible, in a modal shift that improves transportation efficiency andlowers environmental impact. We are implementing delivery methods other than trucks
for urban areas and we support educational efforts that teach people in the community
about living in harmony with nature. Finally, the SG Holdings Group is proud toparticipate in the Climate Savers Program, an activity of the World Wildlife Federation(WWF), as its only corporate participant in the world from the transportation industry. In
this program, we set ambitious targets for CO2 reduction and execute a range ofmeasures to achieve them. At the SG Holdings Group, we recognize that, once a naturalenvironment is destroyed, it takes much effort to restore it to its original condition. To
pass on a planet with abundant nature to the next generation, we are moving forwardwith a diverse array of projects to protect the Earth’s natural heritage.

Four Perspectives
on the SG Holdings GroupThe key to effective CSR is to engage actively with society,listening closely to stakeholders to find out objectively
how they view the group, and what they wish the group to be.
With this imperative in mind,
we spoke to people from a wide range of perspectives,to understand the “now” of the SG Holdings Group.

A Consumer’s View
An expert on consumer issues reports
from the front lines

Look to the SG Holdings Groupfor logistics that is kind to people,
nature, and society.
How the SG Holdings Group integrates CSR into its operations

A Customer’s View
Listening to customers
with a global business reach

Making customers’
dreams come true
Logistics solutions, courtesy of the combined
strengths of the SG Holdings GroupAn Employee’s View
A sales driver talks about work-life balance“My family is smiling,
and my job is a pleasure.”
An Expert’s View
An expert view of “CSR, today and in the future”

DialogWhat sort of CSR
should the SG HoldingsGroup aim to achieve?
5A Consumer’s View

An expert on consumer issues reports from the front lines

Look to the SG Holdings Group for logistics
that is kind to people, nature, and society.
How the SG Holdings Group integrates CSR into its operations

Kikuko Tatsumi
Reporter

Born in 1948, Kikuko Tatsumi graduated from Nara Women’ s
University to begin a career as a high-school teacher and later as auniversity instructor. In 1998 she was appointed chair of the
Nippon Association of Consumer Specialists. She is especially
active on the environmental scene on many fronts.

Delivery and logistics, the art of taking charge of customers’ packages
and delivering them where they are needed,when they are needed on a daily basis, is the core of the SG Holdings Group.
In each process of logistics, we take countless measures to ensure safety,
environmental performance, and efficiency.
Kikuko Tatsumi of the Nippon Association of Consumer Specialists, an organization
which makes proposals based on consumer points of view, observed the efforts
at our distribution business locations which customers normally do not even notice.
She experienced our efforts towards people, nature, and society.
Logistical processes of the SG Holdings Group

Customer(sender)

Large-scale,centralized facility

Office(collection)

Office(deliveries)
Sagawa Ryutsu
Center (SRC)

6

Service center

SG HOLDINGS GROUP Corporate Social Responsibility Report 2010

Customer(addressee)

Local offices (collection, delivery)
Offices collect packages (collection) and deliver them to customers (delivery). Offices
actively implement measures to ensure safety and environmental performance.

Eliminating idling alone saves
the Group ¥1.37 billion a year.

The routine inspections are performed every morning.
More rigorous inspections are held once every three months andonce a year, along with regular maintenance.

A Consumer’s View

The majority of our customers’ packages are collected
and delivered by sales drivers at local offices. On a visit to
Sagawa Express’s Chiyoda Office, for example, we founda staff of about 450 employees, in charge of deliveries
and collections in Tokyo’s Chiyoda Ward.
Each truck is allocated to a particular area, and eachmorning the responsible sales driver inspects the truck.
Along with training to improve driving techniques,
requiring this routine inspection is one of the ways
Sagawa Express prevents traffic accidents. In addition,
Sagawa Express publishes the “Seven Points for Eco
Safety Drive,” encouraging sales drivers to drive in amanner that maintains safety, preserves the environment,
and reduces cost. One example is the elimination of
idling. Each sales driver wears his truck keys on a
keychain, reminding him of his duty to remove the keys
whenever he leaves the vehicle. The savings are
significant: Eliminating idling for two hours per day
reduces CO 2 emissions by 30,000 metric tons a year
(assuming a 300-day work year) and decreases costs byabout ¥1.37 billion. This simple measure is as good forbusiness as it is for the environment.

The initiative for eliminating idlingby removing keys began in 1997. If
the driver does not remove the key,
he is unable to leave the driver’s seat.

At Chiyoda Office is a natural gas station. Comparedwith diesel, natural gas emits far less CO 2 , NOx* 1 andparticulate matter (PM)*2. Looking closer at one of thenatural gas trucks, you notice that it has two large tanks,
one on each side of the vehicle. With both tanks full, theA natural gas station. It looks nodifferent than an ordinary gas station.
trucks can travel about 300km, providing roughly thesame fuel efficiency as diesel.
Due to a scarcity of natural gas stations, we install our own stations at certain branches, with some 23 locations
nationwide. Moreover, with approximately 4,300 natural gas trucks across Japan, Sagawa Express boasts the largest
collection of such vehicles of any private-sector company in the nation. The reasons can be seen throughout the city.
These figures offer the most telling indication of Sagawa Express’s proactive environmental stance.
*1 NOx = nitrogen oxide, a pollutant that causes such environmental problems as photochemical smog and acid rain.
*2 Particulate matter: assorted materials floating in the air in particles. Thought to cause asthma and bronchitis.

Four Perspectives on the SG Holdings Group

With the largest number ofnatural gas fueled trucks
in Japan, we lead the nation’s
logistics industry inenvironment-friendly
operation.

7

Large-scale centralized facilities

At large-scale collection facilities, packages collected from each branch are sorted by area. Trucks
from collaborating companies carry packages in and out. By painstakingly improving the quality
and efficiency of its shipping services, Sagawa Express meets the needs of our customers.

Automatic sorting equipment
processes 21,000 packages per hour,maximizing payload efficiency.
Sagawa Express operates five large-scale centralized
facilities throughout Japan. Packages for medium- andlong-range shipping are gathered in these centers fromoffices, sorted by destination area and loaded on large
trucks. Each truck’s payload is maximized to boost shipping
efficiency. The facility we visited was Tokyo Big Bay.
In the first-floor terminal, packages were unloaded one
after the other from the trucks onto a conveyor belt. Here
workers sort standard items from fragile items and itemswith unstable centers of gravity. Standard items are sent tothe automatic sorting machine on the second floor, while
the other items are hand sorted on the first floor.
Scanners on the automatic sorting machine read thebarcode data attached to the packages flowing in on thebelt conveyor, sorting them according to destination area.
Thanks to 30 years of constant improvements, theautomatic sorting machine can sort up to 21,000 packages
per hour—three times the speed of sorting by hand. In the
manual sorting line on the first floor, employees were
carefully sorting the fragile packages one by one. On thisvisit, we clearly observed how this combination of
automatic and manual processes enables Sagawa Express
to deliver packages quickly, accurately, and safely.

The automatic sorting machine appears in the foreground,while the manual sorting line can be seen in the back.
Employees work skillfully and with little wasted motion.

The automatic sorting line winds
around a large installation.
Packages are dropped into a seriesof chutes situated around theconveyor.

Hikyaku Yu Mail Express makes
use of post office infrastructure
The next stop on our tour was the fifth floor of Tokyo
Big Bay. This is the Yu Mail Center, the sorting point for
Hikyaku Yu Mail Express.
Hikyaku Yu Mail Express is a service in which Sagawa
Express collects packages from corporate customers andPackages are automatically sorted at post offices throughout Japan.
then sends them to the post office for delivery, standing
Sagawa Express transports already sorted packages to the post office,and the post office handles the work from that point onward.
in as the sender. It sorts the packages by destination
postal code in the Yu Mail Center before handing themover to the post office. The key advantage for customers
in choosing this service is low cost. Because Sagawa
Express serves as the sender on the customer’s behalf,
the customer does not need to conclude an individual
Packages collected from offices areaffixed with barcodes foragreement with the post office, using Sagawa Express’s
management of destination,weight, and other factors.
agreement instead. This arrangement eliminates an
expense for the customer. Though this way of sending
packages may take a day or two longer than ordinary mail, packages are still delivered reliably, and customers are quite
happy with the service. In addition to Hikyaku Yu Mail Express, Sagawa Express offers Hikyaku Mail Express, a service inwhich Sagawa Express sales drivers deposit packages directly in addressees’ mailboxes. For corporate customers, theselection of delivery services is a huge merit.

8

SG HOLDINGS GROUP Corporate Social Responsibility Report 2010

Sagawa Ryutsu Center (SRC)
At SRC, products from manufacturers, etc. undergo logistical processing—inspection,
primary storage, pricing, etc.—and finally shipped, in a seamlessly integrated process.

Centralized management
reduces waste in shipping

I visited Tokyo SRC in Katsushima,
Tokyo. Here a database system isinstalled, in which handheld
scanners and barcodes are used to
manage inventory accurately.

A Consumer’s View

Performing inspection, storage, pricing, etc. at separate
locations increases the burden of moving packages around. At
SRC, all these processes are performed at a single location,
reducing both transportation cost and CO2 emissions. SRC
manages the shipping and receiving of large items with thecollaboration of Sagawa Global Logistics Co., Ltd., whomanages SRC, and SG Systems Co., Ltd., which runs a variety ofsystems for the SG Holdings Group. For the corporate clients
who use these systems, the only costs involved are warehouse
space and personnel costs. Fixed costs are dramaticallyreduced. Recently, SRC has made a number of switches forbetter environmental performance, such as replacing
disposable cardboard boxes with reusable hanger boxes.

Operators read shipping
instructions from asheet of barcodes using
handheld scanners. As
they read the barcodes,
information on products
to be shipped appear on
the screen, with itemson the nearest shelvesappearing first. Even
beginners can pickpackages easily andefficiently.

Service Centers

To reduce traffic congestion and air pollution in the city and maximize transportation efficiency,
packages are collected and delivered by carts and bicycle as much as possible. Sagawa Express’s
aim is to achieve zero emissions in logistics.

Conducting logistics by humanmuscle power as much as possible
raises the efficiency of logistics
while reducing CO2 emissions.

At the service center we visited, instead of relying on trucks,
employees used carts, bicycles, and other human-powered
vehicles to deliver packages. In urban areas, where buildings areclose together, these forms of delivery are far more efficient thantrucks. The area served by each service center is typically within
A single collection or delivery takesa radius of 400m, so any destination is just a few minutes away.
between 20 and 30 minutes. As soon
With this arrangement, each service center’s fleet can generally
as an employee returns, they
immediately go out on another job.
be reduced by four or five vehicles. As a result, efforts to raiseThis high mobility keeps Sagawa
Express customers satisfied.
operating efficiency were kind to the urban environment as well.
Other good results follow as well. The service center has jobs even for those with no driver’s license. In Japan, women are less likely todrive, so this situation benefits women: Seven of the nine employees at the service station we visited were women. The image of male
employees in the distribution industry is strong, but I was reminded that women can also work in it.

Remarks at end of visit

Kikuko Tatsumi

I am familiar with Sagawa Express through delivery sales drivers, so it was interesting to observe the entire process bywhich packages are collected and delivered, and the many ways Sagawa Express ensures that the job is done safely, quickly,
efficiently, and with low environmental impact. In my work I deal with a wide variety of environmental problems; in eachcase, the key to a solution is the realization that something of value is being wasted. I would also like to add that I highly
recommend Sagawa Express’s use of recyclable boxes as much as possible, as well as their practice of calling ahead to ensuresomeone is home to receive packages, so deliveries can be completed in one trip. The understanding of customers is also
vital. I am confident that the SG Holdings Group will continue to listen to consumers, communicate well with thecommunities they serve, and make further efforts as a corporate group to realize a more prosperous society.

Four Perspectives on the SG Holdings GroupAs of March 2010,
Sagawa Express
operates 251 service
centers across Japan.
Thanks to the movetowardpeople-powered
delivery, we have
reduced the numberof vehicles wepurchased by 1,260
in total.

9

A Customer’s View

Listening to customers with a global business reach

Making customers’ dreams come true
Logistics solutions, courtesy of the combined
strengths of the SG Holdings Group
Tokamachi, in a mountainous area of
Niigata Prefecture, is best known forthe huge snowfalls that cover it each winter.
It is also home to Kimono Brain Corporation,a customer of the SG Holdings Group
that has steadily grown as a specialist in the
production, sale, and total care of kimonos.
Kimono Brain, which ships to customers
around the world, relies on the combined
strength of three Group companies—
Sagawa Express, Sagawa Global Logistics,
and Sagawa Express Vietnam—
to provide them with the effective
logistical systems they need.

Matsuo Okamoto

President and CEO
Kimono Brain Corporation

Mayumi Okamoto

Vice president
Kimono Brain Corporation

Bringing kimonos into everyday life, Kimono Brain succeedswith a steady stream of fresh, compelling approaches.
In today’s Japan, people delight in wearing kimonos for special occasions such as weddings and coming-of-age
ceremonies, yet few choose to wear them in everyday life. Overall demand is declining year after year. Kimono Brain isfighting this trend by modifying the basic kimono design, making the traditional garment easier to put on andoffering “ready-to-wear” options at reasonable prices. With a focus on young women, Kimono Brain is growing
steadily allowing more people to easily experience kimonos.
To support its kimono sewing operations, in 2006 the company opened a plant in Ho Chi Minh City. Operated
under Kimono Brain’s direct management, the Vietnamese plant employs 170 workers, all dedicated to the
production of kimono. The plant currently turns out 70,000 ensembles per year. Mayumi Okamoto, vice president ofKimono Brain, has high hopes for the plant: “Vietnam is a rising star in the textiles industry, and quality is as good asanything made in Japan. We expect production to continue to rise at our Vietnamese plant.”

Kimono Brain Corporation
Founded in 1976. Number of employees: 230. Handles all phasesof operations involved in kimono, from kimono after-sales andbefore-sales care (water-repelling finish, alterations, andproduction) to development and sales. Exceptionally active in
local-industry development and hiring of the physically/mentallydisabled, these efforts came to be widely recognized in 1995. In
2008, employees were given the Minister of Health, Labour andWelfare award for outstanding work by the disabled.
Safe and fast transportion is required

10

SG HOLDINGS GROUP Corporate Social Responsibility Report 2010

As the production volume at the Vietnamese plant ramps up, the huge volume of shipping between Vietnam andJapan became a growing issue. Water-repelling and other garment-protecting materials had to be shipped toVietnam and exchanged for completed kimonos, all within just two weeks. At first Kimono Brain used separate
companies for domestic and international shipping, but late deliveries and poor response when accidents occurred
soon obliged the company to lower their risk by choosing a different shipper.
After conferring with their existing domestic carrier, Sagawa Express, at the latter’s Muikamachi Branch, Kimono
Brain obtained a proposal for a total solution, drawing on the comprehensive strength of the SG Holdings Group.
The SG Holdings Group now provides Kimono Brain with a one-stop solution, including all shipping, logistical workand other details between the Japanese and Vietnamese base. We carry out import/export transport and customs
duties for Kimono Brain, while Sagawa Express Vietnam takes care of shipping within Vietnam. Of course, the SG
Holdings Group was immediately tasked with establishing a logistical framework capable of delivering the required
two-week turnaround time. Using Sagawa Express in Japan, the group utilized our resources to deliver the required
products directly to retail outlets and consumers.
According to Mayumi Okamoto, the boost to the company’s reputation was enormous. “Kimonos are high-value
products, and the dates when they need to be worn cannot be moved. We needed not only punctual delivery but
also safe and careful shipping. Even if the unexpected should occur, I have great confidence in the strength andconscientiousness of this logistical system created entirely within the SG Holdings Group.”

A Customer’s View

A smooth system for logistics between Japan and Vietnam

Aiming for optimum logistical solutions

Apparel production at the Vietnam Plant

Removing yellowing caused by the oxidationof fabric stains

Metal-foil repair is like restoring a work of art

Four Perspectives on the SG Holdings Group“Work is something that must be found,” says Matsuo Okamoto, president and CEO of Kimono Brain. “Without
innovation, there is no tomorrow.” At Kimono Brain, the invention of new business models is a regular occurrence. In
addition to a kimono storage service, the company has launched “extreme water-repelling dreamcare,” a water-resistanttreatment for kimonos as well as a foray to the textile industry with newly developed fiber-processing technology.
Moreover, the company envisions a future in which this new technology is deployed in China, significantly globalizing
their operations through enhanced trade between Japan and China. Sagawa Global Logistics seems set to become evenmore vital to the company than ever.
“Finding a logistics partner we could trust was our top priority, so we could focus on our core operations,” a vicepresident observes. Many companies, just like Kimono Brain, are looking for such backup, so that management resourcesin high demand can concentrate on what they do best, raising management efficiency. Raising the efficiency of logistics
is a vital factor in bolstering management efficiency, thereby underpinning business success.
The SG Holdings Group offers our customers comprehensive solutions, taking charge of every aspect of their logisticaloperations to deliver the best possible results. By streamlining logistics, we grow and prosper alongside our customers.

11

An Employee’s View

A sales driver talks about work-life balance“My family is smiling,
and my job is a pleasure.”
We work hard to keep our families happy and smiling.
I believe that this is an honorable way of living as an individual.
Whether on shift or off, our sales drivers recognize the value of time,living life to the fullest every day.
Their enthusiasm and hard work is strength that upholds the SG Holdings Group.

Communication with customers is vital.
“I joined Sagawa Express in 2003, at the age of 29. Conscious that I was starting at an older age than others, I wasdetermined not to be outdone by my colleagues. I gave a 100% effort, for myself and for my family” says Kenji Ishino of
Sagawa Express. Now in his seventh year as a sales driver, Ishino serves as sub chief at the Hachioji Office.
“When I joined the company, the workload was heavy. It took all my effort just to deal with the tasks given me. Today,
I have more sales driver co-workers and vehicles so that shipping efficiency is higher. As a result, we have more time todeal with our customers individually. Our work expands based on communication with customers.”
His service area centers on industrial parks. Since much of the work involves transporting precision equipment, thetrust of customers is especially vital. “When customers stopped calling me ‘the Sagawa Express driver’ and started
calling me ‘Ishino-san’, I was really happy.”
By painstakingly building this relationship of trust and learning to perceive customer needs accurately, Kenji Ishino
has gone from knowing how to do his work to knowing how to generate new work.

For sales drivers, safety is
top priority at all times.
“As sub chief, I not only have to manage thepeople under my direction, but also be awareof the company’s business. It is a lot of
responsibility, but it is rewarding, too.”

Kenji Ishino

Sales Section Sub Chief
Hachioji Office
Sagawa Express
Joined Sagawa Express in 2003.
Aquired qualification (throughnational exams) as an SD Instructor*1
and an operations manager. Named
employee of the year for FY 2009. His
hobby is “trying food at different
restaurants.”*1 SD Instructor: An employee thoroughlyversed in his job, with knowledge,
technique and skill as an instructor,
who has passed the necessary exams(for details, please see Page 38).

12

SG HOLDINGS GROUP Corporate Social Responsibility Report 2010

My family can beproud of my zeroaccidents/violations

Working conscientiously
and attentively,
no matter how busy

Work and family life need to be in balance.
Time spent with family is a source of strength at work.

*2 SSF: SG Holdings Group Sports Festival (For details, please see Page
75).
*3 Moriyama Park: A general sports and culture facility belonging to
the SG Holdings Group

graduations and athletic meets, and the kids really appreciateit. Because he drives for a living, I always make sure that heeats balanced meals and takes care of his health. I want him to
keep taking care of himself and drive safely.

Toward a supportive anddynamic workplace for everyone
For the SG Holdings Group, our people are our most precious resource.
We are working hard to create workplaces
that help all our employees to be the best they can be.

The SG Holdings Group rewards excellence,
without discrimination between men and women.
At Sagawa Advance, talented employees are promoted regardless of gender. In many of
our workplaces, the manager is a woman. Moreover, the company holds monthly meetingson diversity, publishing the details in the company newsletter for all employees to read. In
the future, the company plans to offer paternity leave and nursing-care leave for male
employees, encouraging a strong work-life balance and an environment where everyone
can continue to work with peace of mind while taking care of their families.

MiyakoYamamoto
Manager
Osaka Branch
Human Resources
Development
Department
Sagawa Advance

Four Perspectives on the SG Holdings Group

Kenji Ishino lives with his wife, daughter and son. What does he do to unwind on his days off? “I just like to be withmy family,” he answers immediately. “I want to take my family to see all kinds of places. The SG Holdings Group offers
all kinds of leisure facilities for employees and plenty of events that the whole family can take part in, so we get asmuch use out of these as possible. When I was named employee of the year for fiscal 2009, I went to Moriyama Park in
Moriyama, Shiga Prefecture, where the awards ceremony and SSF*2 were held. It was my first visit to Moriyama Park*3,
and when I saw other employees’ families having so much fun, I realized how great the company’s leisure facilitiesare. Next time I want to take my family.”
Whether on or off work, Kenji Ishino values his time,living life to the fullest every day. He feels strongly thatMy daddy looks so cool
the time he spends relaxing with his family is his source
when he is driving his truck!
of strength at work.
When they were little, whenever
The SG Holdings Group thinks of our employees’
the kids would see Kenji doing
family as group members, just as much as its employeesdeliveries near our house, they
themselves are. We want to be a company thatwould cry out, “Look, it is Dad!
Cool!” No matter how busy he is,continues to work to create supportive and dynamic
he always makes a point of taking
workplace environments, supporting the wellbeing oftime off for the kids’ events, likeour employees and their families.

An Employee’s View

Kenji Ishino has been sub chief for two years now. Heading a staff of eight, Ishino also takes the wheel to handle
collections and deliveries.
“As a sales driver, I look after safe driving and my own health above all. Before setting out I inspect my vehicle. I
utilize Eco Safety Drive with measures such as gently changing gears and keeping engine rotations below 1,500rpm. I
also make sure I get plenty of sleep, so as a driver I am alert at all times.”
Kenji Ishino is a sales driver, with SD Instructor qualifications. He told us with great enthusiasm of his desire to get
the basics right, build customer relationships, and never forget one’s position as a sales driver.

13

An Expert’s View

DialogAn expert view of “CSR, today and in the future”

What sort of CSR should
the SG Holdings Group aim to achieve?

For our customers, for the communities we serve, for our employees,
and for the future of the Earth, the SG Holdings Group conducts
all manner of CSR activities through our daily operations.
Yasuo Kobayashi, general manager for CSR at the SG Holdings Group,
and Takejiro Sueyoshi, Special Advisor to the United Nations Environment Program
Financing Initiative (UNEP FI), examine what stance companies
should take to improve their results in the CSR field.

Takejiro Sueyoshi

Special Advisor United Nations Environment Program Financing Initiative (UNEP FI)
Takejiro Sueyoshi was born in 1945 in Kagoshima Prefecture. After graduating from Tokyo University with a bachelor’s degree in economics,
Sueyoshi joined the Mitsubishi Bank (now the Bank of Tokyo-Mitsubishi UFJ). After serving as director of the bank’s New York Branch, thenmanaging director, president of the Bank of Tokyo-Mitsubishi Trust Company (New York), and vice president of Nikko Asset Management, Takejiro
Sueyoshi became Special Advisor to UNEP FI. Today, in addition to his duties at UNEP FI, Takejiro Sueyoshi engages in lectures and otherawareness-raising activities on environmental issues and CSR. He is a frequent commentator on TV public-affairs programs.

Yasuo Kobayashi

General manager for CSR and General Affairs Operating Strategy Department SG Holdings GroupIn the most recent global trends in CSR,
disclosure of environmental information is key.
Kobayashi: It is a great pleasure to have the opportunity for dialog with someone as knowledgeable about CSR asyou, Mr. Sueyoshi, and I am looking forward to getting started. Can you describe your activities as special advisor to
UNEP FI?
Sueyoshi: About 10 years ago, when I was working at a mutual-fund firm, a new mutual fund came out: the Eco-Fund.
It was a mutual fund that invested solely in companies that were enthusiastically engaged in environmental issues.
The Eco-Fund marked the first time a financial instrument had been linked with environmental concerns in this way inJapan. The fund sold well, and caught the eye of the United Nations. Soon I was on my way to a conference called theUnited Nations Environmental Plan Financing Initiative Conference. After that I served UNEP FI as special advisor. In
this collaborative framework with the world’s financial institutions, we examine what actions banks should take tosupport environmental sustainability in their various business activities, and work to promote the adoption andadvancement of those actions.
Kobayashi: As someone accustomed to international activities, can you talk about recent trends you have noticed in
global CSR?
Sueyoshi: One event that had a huge worldwide impact occurred in January 2010. At that time the SEC* announced
that listed companies would henceforth be required include information about the problems of climate change andglobal warming in their public disclosure filings. This requirement arises from the obvious importance the SEC has
always placed on releasing information about company’s financial position, such as an income statement andbalance sheet.
* SEC: Securities and Exchange Commission.
The United States federal government agency responsible for overseeing and monitoring equity and bond transactions in the United States.

Kobayashi: So you feel that publication of the financial statements is all the disclosure shareholders and investors need?

14

SG HOLDINGS GROUP Corporate Social Responsibility Report 2010

An Expert’s View

The environment is coming under increasing regulation.
Companies that respond quickest have the opportunity to lead.
Kobayashi: In effect, new guidelines on disclosure are being written. In environmental disclosure, for example, Japan
has just revised its energy-saving laws. Companies are now required to discover and report the energy they use. They
have to set targets and announce each year the progress they are making toward that goal.
At the SG Holdings Group, we assess total group energy use by holding seminars, in which the presidents andexecutives of group companies report their performance. During those seminars, as you mentioned, presentations are
given not only on the financial statements and other financial documents, but also on measures against global
warming. In other words, we’ve entered an age in which the amount of energy a company uses must also be disclosed.
It is easy to claim that your company is environmentally friendly, but future environmental risks are likely to be many,and difficult to confront.
We consider environmental matters to be essential issues in CSR. To take a proactive stance against global warming,
we are launching a series of environmental activities on our own initiative. With the recent revision of energy-saving
laws, new regulations are coming into effect; we believe this means we must not only re-assess our CSR activities but
also shift gradually toward greater emphasis on compliance in environmental issues. As you pointed out, the inclusionof measures against global warming in financial information indicates that the environment, social issues, andbusinesses are becoming ever more interrelated.

Four Perspectives on the SG Holdings Group

Sueyoshi: That is right. But remember, for many years America’s pension funds had been telling the SEC, “The financial
data are not adequate. You should require companies to completely disclose information about environmental, social,and governmental (ESG) problems such as the environment, social responsibility, and governance. Without thisinformation, there is no way of knowing a company’s true situation, and investors cannot judge whether to invest ornot.” These complaints are what prompted the SEC to issue this guideline. It is a revised interpretation of the kind of
information that needs to be disclosed.

15

The SG Holdings Group is already looking ahead, gathering information on how
to disclose data and incorporate it into our operations. When do you suppose these
new regulations and rules will be imposed in Japan?
Sueyoshi: The basic bill on global warming has been decided by Cabinet andsubmitted to the Diet. If it passes, Japan will for the first time become a country withlegally mandated, national targets for CO2 emissions reduction. The target is a 25%
reduction by 2020. If implemented, the bill will introduce a wide range of rules andregulations over the next two or three years.
So to answer your question, I would like to emphasize one thing: The schedule forrules and regulations to restrain global warming will be accelerated, because
immediate action is needed. At a certain point businesses will be affected, so it isimportant to make preparations with a sense of urgency. Companies that are
prepared for these changes will find new business opportunities awaiting them.

Logistics without automobiles: The ultimate goal is zero emissions.*1
Kobayashi: We also feel the need for speed that you talked about. We transported cargo to the international
convention center for the Kyoto Protocol in 1997, and afterwards we began to accelerate the incorporation ofenvironmental measures into group management. For example, we replaced our diesel fleet with natural gas fueled
trucks, as these vehicles emit less CO2 and NOx than diesel trucks and no PM at all. We now boast the largest numberof natural gas fueled trucks—4,355* 2 in all—of any company on the planet. Of course, in addition to ecologicalconcerns, safety is critically important as well. We promote the environmentally-friendly Eco Safety Drive and provide
training to all employees.
We are also trying to minimize the use of motor vehicles in Tokyo, where road and building regulations are
extremely strict. To that end we are concentrating on urban areas as we expand our number of service centers. Afterthe packages are brought to the service center, our employees deliver them on carts and bicycles. We are finding that
responding to the new law’s regulations makes our work more efficient, resulting in many other ecological benefits.
Sueyoshi: Avoiding the use of motor vehicles as much as possible in urban areas
is a concept that is bound to come into increasing demand. Nowadays people allover the world are demanding zero-emission schemes, and some are being put
into operation. Rather than merely reduce emissions a little, or a little more,
Japan’s urban areas offer the ultimate possibility of achieving zero emissions, by
not using motor vehicles at all. I think this is an idea whose time has come.
*1 Zero emissions: The reduction of a company’s final total waste products to zero, by measures such as
releasing emissions in forms that are useful as raw materials for other companies.
*2 As of March 2010

Stakeholder-oriented management begins
with an awareness of the problems
Kobayashi: At the SG Holdings Group, we plan our operations in three-year medium-term plans. In FY 2010 our Second
Stage Plan begins, bringing the concept of “stakeholder-oriented management.” Our basic policy is to meet the
expectations of each group of stakeholders—customers, employees, regional communities, shareholders, business
partners, etc. In today’s society, positive relations with a range of stakeholders are vital. But it is difficult to offer positive
results for all stakeholders all of the time. Mr. Sueyoshi, what do you think of this problem?
Sueyoshi: I think we need to be more specific about what we mean by stakeholder-oriented management. The SG
Holdings Group’s operations form a vital part of social infrastructures. What problems do you see that prevent you fromplaying that role? What do you intend to do about them? This should be your starting point. Once you have a clear ideaof the problem, your next objective becomes solving that problem. So when you are envisioning what the problem is,

16

SG HOLDINGS GROUP Corporate Social Responsibility Report 2010

do so from the stakeholders’ perspective. Whether you areselecting an approach for solving problems, or ranking
problems in order of priority, what is important is to do sofrom stakeholders’ point of view.
Kobayashi: So a company should always adopt the stakeholder’s point of view, and confront problems on that basis.

Kobayashi: I see what you mean. A company that is unable to broaden its perspective and shift its paradigm cannot
survive.
Sueyoshi: What does CSR mean to the SG Holdings Group? Your business operations themselves, namely logistics,
clearly serve a vital societal need. There are certain things that you must do as a logistics enterprise, and those duties
are both a major management issue for the group and a matter of great interest to society. Whatever logistics means
to society and other stakeholders will determine how you are expected to be aware of its problems and what
solutions you will be expected to propose.
I feel strongly that the SG Holdings Group is a pioneer in environmental action. It has been a great pleasure to
enjoy such a fruitful discussion with you. The world is changing quickly, and the world’s private enterprises areultimately the ones that must solve society’s problems.

An Expert’s View

Sueyoshi: A company needs to define its boundaries. Up until now, the SG Holdings Group has considered problems
only within the scope of the group. And from a business point of view, that makes sense. Today, however, society
demands a different set of boundaries. Beyond the boundary of the SG Holdings Group, there is the regional
community as a boundary, Japan as a boundary, then Asia, and the world. You must ask yourself whether what isgood for the SG Holdings Group is what is good for the region as well.

Kobayashi: CSR is an enormously challenging set of activities, but we are determined to play an active role, to meetthe expectations of the community and other stakeholders. Thank you very much for joining me today, Mr. Sueyoshi.

Takejiro Sueyoshi

Future expectations for CSR
A brief look at the history of the SG Holdings Group amply testifies to our devotion to CSR activities. A group executive
who said “Amid today’s stagnating economy, we must redouble our focus on CSR” has a strong point. Rather swinging
between joy and sorrow at immediate developments, the group needs to establish permanent CSR to serve future
generations. For consumers such as myself, it is exciting to imagine what next-generation logistical systems the SG HoldingsGroup will create, and how those systems will change people’s lives. I look forward to their future developments.

Four Perspectives on the SG Holdings Group

Concluding remarks

17

Philosophy and Guidelines of
SG Holdings Group
Corporate activities of SG Holdings Group consist of activities reflecting a sense of ethics among all
management and employees. SG Holdings Group established a Corporate Philosophy, a Conduct Charter, and a
Code of Ethics and Conduct to be observed by all affiliated companies of our group. The purpose of these rules
is to formulate a structure to assure the correctness of our business operations and to build our compliancesystem.

SG Holdings Group’s Corporate Philosophy
SG Holdings Group’s Conduct Charter
SG Holdings Group’s Code of Ethics and Conduct

SG Holdings Group’s unified slogan

SG Holdings Group’s Corporate Philosophy
SG Holdings Group reaffirms “Hikyaku no kokoro” (the spirit of express messenger) with which Sagawa
Express started the business, and performs fair and free business activities with respect for human rights andcompliance.

“Hikyaku no Kokoro” means,with a motto of “swiftly, surely and carefully,”- a strong commitment to the customer creed,- serving the development of local society, and- emphasizing responsibility and good faith.

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SG HOLDINGS GROUP Corporate Social Responsibility Report 2010

SG Holdings Group Conduct Charter
To obtain trust and understanding from societyManagement shall recognize that the implementation of the spirit of this Charter and setting an example

Provision forby leadership is its task and thoroughly communicate it to all relevant parties, including the personnel of
responsibility

SG Holdings Group. Further, management shall prepare an effective corporate governance structure toensure business compliance. If any infringement of this Charter occurs, management shall publicly take theinitiative in solving the problem and shall make every effort to determine the cause and to prevent similar
incidents in the future.

Joint
declaration
Principles ofconduct

All managers and employees within SG Holdings Group act responsibly and make a united effort topractice the following principles:

1 Considering the safety and the personal/customer information protection, we develop and provide theservices and products that are useful to obtain trust and to give satisfaction to the consumers and customers.
2 As a good corporate citizen, we actively participate in social contributions.
3 In our international business operations, we respect the culture and practices of the countries involved, in

addition to the observation of international rules and laws of such countries, and operate the business in amanner that can contribute to the development of the region.
4 Recognizing that environmental conservation is a common issue for all humanity and an essential

requirement for a company to exist and operate, we actively and voluntarily take the necessary actions.
5 We perform fair, transparent and free competition and fair trade. Also we maintain sound and proper

relationships with politicians and governments.
6 We confront, in a determined manner, antisocial forces and groups which threaten the order and safety ofsociety.
7 We have communication with society as a whole, along with shareholders, and disclose our corporate

information actively and properly.
8 Respecting to the diversity of employees and their personalities, we ensure safe and good working

environments to provide comfort and security.

SG Holdings Group’s Code of Ethics and Conduct:
We follow the Code of Ethics and Conduct which embodies SG Holdings Group’s Conduct Charter.
1

We think and act according to the thorough customer creed.

2

We think and act to contribute to the development of local societies.

3

We think and act fairly with responsibility and good faith.

4

We think and act to promote the growth of ourselves and colleagues and to create a better working environment.

SG Holdings Group’s unified slogan

Safety, Environment and Service
Improving all qualities to the global standard

19

CSR Concept and System of
SG Holdings Group
Basic idea of CSR (Corporate Social Responsibility)
Fulfilling CSR means the capability to adapt to the more sophisticated and diversified requirements and expectations fromsociety to obtain trust for our companies.
In our group’s CSR concept, there are 2 levels: “Basic CSR” and “Advanced CSR”. Basic CSR is the essential factors forcontinuing business operations, such as the compliance with laws. On top of this, Advanced CSR is in place to answer the
emerging expectations and requirements from various societies and to contribute to them. Our CSR is supported by these
two levels.
Diagram of the basic idea of SG Holdings Group’s CSR
SG Holdings Group

Society/Stakeholder

Advanced CSR
Socialcontribution
activities

Basic CSR
Information security/Safety activities/
Quality control & CS

Sound and transparent
management/ Increasing
profitability

Respecting human rights/
Corporate ethics/
Compliance with laws

Business activity
responsibilities

Economical responsibilities

Compliance responsibilities

SD Holdings Group Conduct Charter

Environmental protection activities/ Corporate
philanthropy activities/ International activities/
Social Contribution activities

Customers

Business
partners

Shareholders

Employees

Local societies

Promoting CSR / Effort on improving our ethics and compliance checking system
The purpose of the CSR Committee is to construct a checking
system and promote continuous improvement activities for putting
SG Holdings Group’s Conduct Charter in practice and reflecting on
the management of the whole group. In the First Stage Plan of thegroup mid-term management plan (fiscal 2007-2009), the group's"Corporate Philosophy" and "Conduct Charter" have been unified
as SG Holdings' "Ethics and Compliance Checking System", which iscentral for internal control regarding corporate law. In addition todeciding upon a "Code of Ethics and Conduct" and constructing
unified fundamental principles (control environment) for thegroup, we initiated instruction and penetration of the "Code of
Ethics and Conduct". In fiscal 2009 a questionnaire survey for the
purpose of monitoring the penetration rate among all group
employees was enacted, and 28,722 responses were received.
Based on the theme of "the creation of a vigorous and pleasantworking environment", we are endeavoring to achieve full
penetration and proceeding with activities for creating a healthy
corporate culture.
20

SG HOLDINGS GROUP Corporate Social Responsibility Report 2010

Outline of SG Holdings Group’s Ethics andCompliance Checking System

SG Holdings Group

Advisory center

Corporate Philosophy

Conduct Charter

Consultation
andreportingCode of Ethics and Conduct
Communicationand education
Board members and employees*The CSR Committee consists of all the board members of SG Holdings Co., Ltd.

Basic policies of the internal control system (outline)
SG Holdings Co., Ltd. set up the following policies because it is essential to prevent misconduct and obtain
credibility for the effectiveness and efficiency of operations, compliance with the laws and financial reporting, inorder to meet our social responsibility as a company and to be trusted by stakeholders, including shareholders,in our group’s overall business activities.

1

Structure of business operations

6 Social responsibility

2

Handling of information

7 Matters relating to business conduct

3

Control in financial matters

8 Matters relating to audit

4

Storage and control of information
relating to business operation

9 Reporting to auditors by board members

5

Risk control

10 Internal audit

and employees internal audit

Aiming to restore trust from society,
we are strengthening our business compliance.
Measures for the prevention of a re-occurrence of illegal parking on roads
There have been occurrences of Sagawa Express illegally parking on roads.

Summary

Measures for the prevention of a re-occurrence

Two Sagawa Express employees were
determined to have illegally operated
roadside parking meters for the purpose ofparking a truck for a long period. Due to this,in September 2009 the Metropolitan Police
Department filed charges on fraudulent
obstruction of business.

In 2007, Sagawa Express received a report of a similar
occurrence and made an investigation into the roadway
parking at all branches as well as made efforts to increase
the directives/supervision related to the proper usage ofroadway parking for all employees. Regardless, anothersimilar inappropriate incident was determined to haveoccurred, and we take this matter very seriously. To prevent
re-occurrences in the future, we will further increase
directives/training for all employees and re-evaluate thedirectives/management systems at business locations.

SG Holdings Group gravely acknowledges this case and sincerely apologizes for the inconvenience.
We will avoid recurrence across the group by further strengthening our compliance checking system.

21

Corporate Profile of
SG Holdings Co., Ltd.
Trade name

Board of directors

SG Holdings Co., Ltd.

Date of founding
March 21, 2006

Location
68 Tsunoda-cho, kamitoba, Minami-ku, Kyoto, Japan

Capital11,383,000,000 Yen

Group history

1957

March

1965
1975
1980

Toshiaki Tsujio

Director and Logistics
Business Supervisor

Yoshiaki Naoi

Director and Operations
Strategy Supervisor

Nobuaki Kondo

Director and Business
Strategy Supervisor

Kenji Hisamori

Director and Finance
Strategy Supervisor

Toru Mitani

Outside Director

Kunio Takagi

Corporate Auditor

Kiichi Suzuki

Corporate Auditor

Masayuki Tominaga

Corporate Auditor

Yoshinari Tsutsumi

Corporate Auditor

Kazuhito Ishii

Sagawa Cancer Research
Promotion Foundation
is established.

November Sagawa Express is established.

1990

December

Sagawa Forestry is established.

July

Sagawa Advance is established.

1998

January

Sagawa Art Museum Public
Interest Foundation is established.

May

SG Motors is established.

2001

September Sagawa Global Logistics is established.

2005

March

Sagawa Financial is established.

2006

March

Shifts to pure holding company
structure; SG Holdings isestablished.

2007

AugustSG Realty is established.

2009

February

World Supply joins the group.

June

SG Motors Kan-etsu joins
the group.

February

Sagawa Logistics Partners
business commences.

SG Holdings Group Health Insurance
Association established.

1983

February

SG Systems is established.

November SG Holdings Group Corporate
Pension Fund is established.

22

Senior Managing Director

February

July

1988

Eiichi Kuriwada

1989

A courier business focusing on
Kyoto – Osaka was started.

1981

1986

Chairman and President

February

Sagawa Foreign Students’ ScholarshipFoundation is established.

October

Sagawa International Economic
Cooperation Foundation isestablished.

October

Sagawa Moving Center is established.

SG HOLDINGS GROUP Corporate Social Responsibility Report 20102010

September Nouvelle Golf Club isestablished.

(current company/organization names are shown)Outline of
SG Holdings Group
Efforts on Safety

Relationship withSociety

Constructing an operating baseand adding new value

Efforts on
Environmental
Conservation

Outline of
SG Holdings
Group

23

Outline of SG Holdings GroupWe read the ebb
and flow of the times
to create new value.

Nobuaki Kondo
REPORT

Director andOperations Strategy Supervisor
The SG Holdings GroupThe operations of the SG Holdings Group consist of three business segments: Delivery operations, thedriving force of the group’s operations, encompassing courier services and transportation/installation
services; logistics operations, comprising comprehensive logistical services and international shipping;and other operations, such as vehicle maintenance, realty, and IT. Beginning March 2010, these
operations are guided by a new medium-term management plan, the Second Stage Plan, based on thegroup’s corporate vision: “Each group company constructs its business platform and creates new value.”
With globalization accelerating and the needs of customers diversifying rapidly, the logistics industry is
at a turning point. With keen sensitivity to the ebb and flow of this fast-changing age, we are utilizing
our combined resources to achieve true stakeholder-oriented management. In so doing, the SG
Holdings Group will meet the expectations of all stakeholders, including customers, employees, regional
communities, shareholders, and business partners.

FY 2009 Business Results
Number of employees (consolidated)/
All group companies are in sound condition andNumber of vehicles (Sagawa Express)
reporting growth over the previous fiscal year. Number of employees

FY 2009 marked the end of the First Stage Plan, amedium-term management plan in which the group
established a solid operating base and turned its focus
toward growth and expansion. All indices rose in the period
under review. Operating revenue rose from ¥887.2 billion in
the previous fiscal year to ¥888.1 billion, while operating
income grew from ¥21.9 billion in the same period to ¥30.2
billion. Income margin improved from 2.5% to 3.4%. FromFY 2010 forward, the Second Stage Plan begins, in which wewill aim to expand our sphere of operations and strengthen
our earnings base.

24

SG HOLDINGS GROUP Corporate Social Responsibility Report 2010

Number of employees
Number of vehicles

Number of vehicles
70,00063,02060,00058,61450,00040,00040,70948,24649,28030,00020,00020,202

21,473,,06

24,794

26,623

26,431,,08,

10,0000

05

07

09 (FY)* Up to and including FY 2005, only employees in Japan are counted. From FY 2006
onward, “number of employees” includes employees at overseas affiliates.
* “Number of vehicles” includes special light vehicles.

Outline of
SG Holdings Group

Data on Operationsof the SG Holdings Group (consolidated)
Operating revenue

Operating income(Billionsof yen)
9,000

8,000

8,692

Ordinary income(Billionsof yen)500

8,894 8,872

Net income(Billionsof yen)500(Billionsof yen)
300

8,881
400

8,243

396

364
302

200

6,000

219

300

347

100

,

05

,

06

,
07

,

08

,

09 (FY)

0

267

200

,
06

,
07

,
,
08 09 (FY)

0

41

0

▲56

100

100

,
05

102

315

182
5,000

185

100

362

200
,

05

,

06

,
07

,

08

,

▲590

600

09 (FY)

,

05

,

,
07

06

,

08

,

09 (FY)All of this category’s main products enjoyed solid growth, as the number ofpackages handled rose for Hikyaku Courier, the e-collect payment-on-delivery
service, and Hikyaku Cool Express. During the period under review, the group
launched the Recall Total Service and Document Storage Service. Also, World Supply
Co., Ltd. became a subsidiary in February 2009. In these ways new products andservices augmented the group’s ability to meet market needs. Small, short-distancepackage deliveries grew briskly, while a revamp of the group’s operating platform
significantly improved our cost structure. Operating revenue was flat compared withthe previous fiscal year, dropping 0.2% to ¥775.2 billion. Operating income grew
31.8% against the previous fiscal year to ¥22.8 billion.

Logistics
In domestic developments, we opened the Fukuoka Logistics Center and Kuki No. 2
Sales Office. We also refurbished a number of locations with a view to expanding
operations on a 3PL basis. At Sagawa Logistics Partners, we established a shared-platform
3PL operating framework. Overseas, we secured agreements on comprehensive
shipping services between Japan and China, and completed the Shekou Logistics
Center in China’s Shenzhen. Unfortunately, shipments faltered, particularly in apparel,and import/export cargo volumes declined. Though operating revenue in this segment
declined 4.9% to ¥51.9 billion, operating income jumped 80.0% to ¥3.1 billion, as work
processes were overhauled for greater efficiency.

Other
In automobile reconditioning operations, we focused on attracting new customers andstrengthening our operating framework. We acquired Shin Mikuni Motors Service Co.,
Ltd. and made it a subsidiary of SG Motors, renaming the company SG Motors Kan-etsu.
Real-estate operations saw large-scale investment in property as we pursued our strategy
in commercial real estate and expanded earning opportunities from direct sales. We also
created new business opportunities in IT operations, while reorganizing these operations
to strengthen our competitive position through a more effective IT strategy. Overall wecreated a solid foundation for growth in other operations. Operating revenue in thissegment rose 9.0% to ¥60.8 billion, while operating income soared 44.4% to ¥3.3 billion.

Operating revenue/Operating income
Operatingrevenue(Billionsof yen)Operatingincome(Billionsof yen)

8,000

400
7,539

7,000

7,711

7,767

Relationship withSociety

Results by business segment
Deliveries

Efforts on
Environmental
Conservation

300

7,000

200

400
390

0

Effort on Safety

The group deployed operations in three business domains: Deliveries, logistics,
and other businesses. Overall the group turned in solid growth in business results.

7,752

331

300
277

6,000

228

200

173
5,000

0

100

,

,
06

07

0
,
09 (FY),08

Operating revenue/Operating income
Operatingrevenue(Billionsof yen)Operatingincome(Billionsof yen)

800
700

100

704

80
673
60

600
500

42

546

519
31

29

400

40
20

17
0

,
06

,

07

,

,

08

09 (FY)

0

Operating revenue/Operating income
Operatingrevenue(Billionsof yen)Operatingincome(Billionsof yen)

800

100

700

80

600
500

608
509
449 40

558

0

40

38

33

400

23
,
06

,

07

,

08

60

,

09 (FY)

20
0* Operating revenue by segment and operating income
by segment are disclosed from FY 2006 onward only.

25

Outline of SG Holdings GroupManagement Vision and Mid-termManagement Plan of SG Holdings GroupManagement vision

Each group company constructs its business platform
and creates new value.
Corresponding to the changes in customers’ needs and market circumstances,
we will continue to evolve and succeed in the very long term.
To this end, we will try to create value and make efforts in establishing the second, third and fourth pillar of our business.

2010-2012 mid-term management plan “Second Stage Plan”

Expanding the sphere of operations andstrengthening the earnings base

SG Holdings Group’s mid-term management plan

“Second Stage Plan”
Construction of a businessplatform which allows
continuous growth.
Scale of operation (Operating revenue/Profit)

SG Holdings Group’s
mid-term management plan

“First Stage Plan”

1. Further strengthening of courier business revenue base
2. Acceleration of 2nd, 3rd, and 4th pillar business commercialization byfocusing on management resources for core businesses
3. Quickly responding to changes in society/customer needs andpromoting commercialization
4. Expansion/education for human resources and environmental
improvements to allow for various potential in human resources
5. Improvement of social trust/evaluation and activities that earn praise

On the path of stable growth.
SG Holdings Group’s
mid-term management plan

“Third Stage Plan”

B

B

A

B

C

Logistics business
Other businesses
Delivery business
FY 2007-2009

A

C

A

D

Logistics Other
Delivery business business businesses

Logistics Other
Delivery business business businesses

FY 2010-2012

FY 2013-2016

Fostering a clear sense of purpose and motivating people in new ways

Stakeholder-oriented management: Meeting the wide-ranging expectations of stakeholders

Customers
Improve the level of service

Employees
Consolidate and improve thebasis for a well-balanced life

Local societies
Safety and the environment

Shareholders
Improving shareholder value

Business partners
Fair and equitablebusiness practices

Themes for the Second Stage Plan

Expanding the sphere of operations and strengthening the earnings base

Policy26

1Further strengthening of the earnings base in courier operations

2

Concentration of management resources on core operations to accelerate commercializationof the second, third, and fourth pillars of operations

3

Responding promptly to social change and customer needs, to move commercialization forward

4

Expansion and training of personnel and creation of a workplace environment where people
with diverse capabilities can make excellent use of their talents

5

Activities to receive trust, approval, and praise from the community

SG HOLDINGS GROUP Corporate Social Responsibility Report 2010

Outline of
SG Holdings Group

Second Stage Plan strategy outline by segment
Strengthening of courier business market competition ability

Sagawa Express Co., Ltd/
Sagawa Moving Center Co., Ltd./ World Supply Co., Ltd.

Strengthening business areas other than our courier businessWe plan on creating a business structure where our three companies Sagawa
Express, Sagawa Moving Center, and World Supply are linked as well as
strengthening our business areas other than our courier business.

Core businesses for new business areas

Manufacturer
distribution

Retail supply
distribution

Medicalsupply/hospital
distribution

Agriculturaland marine
product
distribution

Installation/transportation

Logistics

We will be expanding our overseas business areas with a focus on distribution
processing/storage businesses and promoting integrated transportation.

Sagawa Global Logistics Co., Ltd./
Sagawa Logistics Partners Co., Ltd./ Overseas subsidiaries

Investment in management resourcesin the remarkable growth of Asian markets
Establishment of development areas in the astonishing preservation of growth
rates in Asian markets. Investment in management resources in China, which has
remarkable development even among the Asian markets.

Core businesses
3PL(including
overseas)

Relationship withSociety

Expansion of overseas business areasand promotion of integrated transportation

Efforts on
Environmental
Conservation

Actively entering into new business areas
We plan on actively entering into new business areas beyond our present
business areas and expanding the scope of our overall delivery business throughmarket expansion.

Efforts on Safety

Deliveries

Strengthening of our courier business market competition ability through cost
structure reform. We plan on changing to a high profit structure as we evolve.

Advancement into logistics business areas
with high added value/specialization
For businesses in Japan, advancement into business areas with high added
value/specialization and strengthening of distribution processing businessfoundation. Further expansion of scopes is planned.

Focusing on core businesses
while developing 3rd and 4th pillar businesses

Other businesses

Placing our four vehicle maintenance, realty, IT, and mail order businesses as corebusinesses and collecting our management resources. Developing our 3rd and 4thpillar businesses after our courier business and logistics business.

Sagawa Financial Co., Ltd. / SG Motors Co., Ltd./ SG Motors Kan-etsu Co., Ltd./
Sagawa Advance Co., Ltd./ SG Systems Co., Ltd./ SG Realty Co., Ltd./
Nouvelle Golf Club Co., Ltd./ Sagawa Forestry Co., Ltd.

Core businesses
Vehiclemaintenance

RealtyIT

Mail order

Second Stage Plan numerical targets
Consolidated numerical targets
toward March 2013 term
Operating revenue

1.1 trillion yen

Operating income

55 billion yen

Operating revenue(units:billions of yen)

12,000Operating income
11,00010,0008,000(units:billions of yen)

600

Operatingrevenue

Operating income
percentage

500

8,872

3.4%

400

8,881

6,000

300

2.5%

4,000

200

219

2,000

100

0

0

09/3 term (results) 10/3 term (results)

13/3 term (planned)

302(Units: %)

550
5.0%

6.0%
5.0%
4.0%
3.0%
2.0%
1.0%

09/3 term (results) 10/3 term (results)

0%

13/3 term (planned)27Outline of SG Holdings Group

Business Operations of SG Holdings Group

Forwarding
Logistics service
Sagawa Ryutsu Center (SRC)

Super Rail Cargo

Hub Centers

Natural gas charging stands

Delivery service

Service Centers

28

SG
G HOLDINGS GROUP Corporate Social Responsibility Report 2010

Outline of
SG Holdings Group
Efforts on Safety
Efforts on
Environmental
Conservation

Vehicle servicing

Relationship withSociety

Payment-on-delivery service “e-collect”

Mail-order services

Property management services

Moving services
IT systems

29

Outline of SG Holdings Group

Business Structure and Domestic Business
Summaries of SG Holdings Group
Business Structure of SG Holdings GroupSG HOLDINGS CO., LTD.

Sagawa Express Co., Ltd.

Sagawa Moving
Center Co., Ltd.

World Supply
Co., Ltd.

Sagawa Global
Logistics Co., Ltd.

Sagawa Financial
Co., Ltd.

Sagawa Logistics
Partners Co., Ltd.

SG Motors
Co., Ltd.

Sagawa AdvanceCo., Ltd.

SG Systems
Co., Ltd.

SG Realty
Co., Ltd.

Nouvelle Golf Club
Co., Ltd.

Sagawa ForestryCo., Ltd.

SG Motors
Kan-etsu Co., Ltd.

Overseas subsidiaries
Tianjin Poly-Sagawa International Trading Co., Ltd.
Shanghai Poly-Sagawa Logistics Co., Ltd.
Shanghai Dazhong Sagawa Logistics Co., Ltd.
Poly-Sagawa Logistics Co., Ltd.
QINGDAO SILOX CO., LTD.
SILOX SHANGHAI CO., LTD.

Sagawa Express (H.K.) Co., Ltd.
Sagawa Express International Taiwan Corp.
Sagawa Logistics Korea Co., Ltd.
Sagawa Express Philippines, Inc.
Sagawa Express Vietnam
Sagawa Express Thai Container Distribution Service Co., Ltd.

Sagawa Express Singapore, Pte., Ltd.
P.T. Sagawa Express Indonesia
Sagawa Global Logistics (Malaysia) Sdn. Bhd.
Sagawa Global Logistics (Philippines) Inc.
Sagawa Express Hawaii, Inc.

Business summaries of main domestic group companies

30

Sagawa Express Co., Ltd.

Sagawa Moving Center Co., Ltd.

Sagawa Express, the corecompany of SG Holdings Group, isenhancing and expanding itsdelivery businesses with a focus
on courier service business. Its
handling volume of parcels per day
is usually 4.5 million and carries
parcels with its heart and soul.
Sagawa Express provides totalsolutions for efficient physicaldistribution in liaison with othergroup companies.

In addition to moving for individual customers, this moving service also
provides for corporate relocation. Furniture and appliances are transported by
two staff members, and our installation/transport service supports assembly
and installation. The route delivery
business provides total service
including transport of equipment forevents, transport, installation, anddisassembly of furniture/fixtures.
Sagawa Moving Center aspires tofulfill the various needs of customers
to maximum potential and provide
wide-ranging services.

SG HOLDINGS GROUP Corporate Social Responsibility Report 2010

Sagawa Logistics Partners Co., Ltd.

Sagawa Financial Co., Ltd.

We offer total support for services from verification/inspection to storage/
distribution processing operations in eight locations across Japan. By
combining operations in order to maximize the processing ability of in-housesorters, multiple shipping for originators/destinations is possible under thesame system. Proposals are available
for low-cost operation with shared
operating bases. We strive to servevarious needs while seeking tobecome the business that iscontinually chosen by customers.

Sagawa Financial provides a variety of finance-related services. A strong
feature of our steadily evolving main business, “e-collect”, is the ability tomake payments through credit card or debit card with its link to our
information query service, “e-SAXIS”. As a comprehensive distribution/financecompany that everyone can feelsafe consulting, we are improving
service channel management andquality.

SG Motors Co., Ltd.

Sagawa Advance Co., Ltd.

With 25 vehicle maintenance shops, 270 associated maintenance shops, andtwo Sagawa vehicle body fabrication shops across Japan, every year nearly 40,000
Sagawa Express vehicles are inspected, serviced, or have body work done. In
addition, we also provide a wide range of general businesses and services forindividual users such as new/used vehicle sales, and maintenance for speciallyequipped vehicles. Furthermore, weare devising ways of lowering ourenvironmental burden by making
maintenance of CNG vehicles and HV
vehicles possible at all maintenanceshops. We are also working on thedevelopment/widespread utilizationof environmentally-friendly ECO
vehicle bodies.

As our goal is to be a comprehensive service provider, we have main pillars ofbusiness in a variety of fields, including human resource development, productdevelopment, travel agencies, and insurance agencies. In the future, we haveplans in particular to use the
combined strength of the SG
Holdings Group to focus on our
mail-order sales business. The"Advance" part of our corporatename will further symbolize ourincreasing ability to respond tothe various needs of customers.

SG Systems Co., Ltd.

SG Realty Co., Ltd.

We provide systems and solutions
such as information system consulting,construction, application, maintenancemanagement, and BPO center
management as an all-in-one company
for information. As we possess thedevelopment and processing capability
cultivated by advanced solutions, we
provide high-quality services tocustomers in a variety of industries.

We carry out property management for the SG Holdings Group as acomprehensive realty corporation and effectively use our resources for new
developments. Through realty for both SG Holdings Group and for otherlocations, we support the businesses of customers through a pillar of PM
strategies with methods for renting/leasing to tenants, daily management, andrepair planning optimization, as
well as a pillar of CRE strategies
that aim for balance sheet realty
market value improvement andbusiness value improvement.

Foundations

Auxiliaryorganizations

Sagawa Foreign Students’ Scholarship Foundation
Sagawa International Economic Cooperation Foundation
Sagawa Cancer Research Promotion Foundation
Sagawa Art Museum Public Interest Foundation

Relationship withSociety

Our many branches in Japan are linked with our overseas branches inlocations such as China and Southeast Asia. We have constructed a scheme forconsistent international transportation using various modes so that we canprovide services such as 3PL operations and distribution processing withintegrated information systems. In an age where many different items arecollected from various countries, we are able
to select an efficient mode of transportation,
increase sales opportunities, and decrease
distribution costs in order to improve
management efficiency. We support ourcustomers' businesses with tailer-made,one-stop logistics proposals.

Efforts on Safety

With a focus on delivery agent service for department stores, massmerchandiser, etc., this business provides 3PL service and food productcooperative delivery (Tsukiji Market). In addition, domestic/international logistics
services for apparel,cosmetics, etc. fromstorage to shipping areprovided in a center thathas acquired the TAPAClass-A international
security certification.

Efforts on
Environmental
Conservation

Sagawa Global Logistics Co., Ltd.

Outline of
SG Holdings GroupWorld Supply Co., Ltd.

SG Holdings Group Health Insurance Association
SG Holdings Group Corporate Pension Fund

31

Outline of SG Holdings Group

Overseas Operating Bases of SG Holdings GroupIn order to further develop distribution in the Asia region,
we at the SG Holdings Group are making efforts with our know-how cultivated in Japanto manage distribution infrastructures and expand networks.

A
C

1

B
D

9

5

Korea
Japan

3 2
6
E

8

4

7

TaiwanChina
12Thailand
11 Vietnam

Hawaii(United States of America)
17

10 Philippines
16

15 Malaysia
13

Singapore

14

Indonesia

Company nameMain business content

1

Tianjin Poly-Sagawa International Trading Co., Ltd.

Forwarding*1, trading, customs storage

2

Shanghai Poly-Sagawa Logistics Co., Ltd.

Forwarding, courier*2, 3PL*3

3

Shanghai Dazhong Sagawa Logistics Co., Ltd.

Courier service

Poly-Sagawa Logistics Co., Ltd.
A BEIJING BRANCH
4B DALIAN BRANCHC TIANJIN BRANCH

Forwarding, courier, 3PL, warehousing/storage, transportation, moving

D QINGDAO BRANCHE GUANGZHOU BRANCH
5QINGDAO SILOX CO., LTD.

Inspection, verification, distribution processing

6

SILOX SHANGHAI CO., LTD.

Inspection, verification, distribution processing

7

Sagawa Express (H.K.) Co., Ltd.

Forwarding, courier, warehousing/storage, transportation, moving

8

Sagawa Express International Taiwan Corp.

Forwarding, courier, small-lot collection (Taipei area)

9

Sagawa Logistics Korea Co., Ltd.

Forwarding, courier, electronic commerce cargo handling

10

Sagawa Express Philippines, Inc.

Forwarding, courier, warehousing/storage, transportation, moving

11

Sagawa Express Vietnam

Forwarding, warehousing/storage, transportation, moving, distribution processing

12

Sagawa Express Thai Container Distribution Service Co., Ltd.

Forwarding, courier, warehousing/storage

13

Sagawa Express Singapore, Pte., Ltd.

Forwarding, courier

14

P.T. Sagawa Express Indonesia

Forwarding, courier, warehousing

15

Sagawa Global Logistics (Malaysia) Sdn. Bhd.

Forwarding

16

Sagawa Global Logistics (Philippines) Inc.

Warehousing/storage

17

Sagawa Express Hawaii, Inc.

Transportation operations*1 Forwarding……Agency operations of transport and customs clearance on the import and export relating to international businesses.
*2 Courier (International courier)……Swift pick up and delivery service mainly for documents or small parcels using air freight.
*3 3PL……An outsourcing service to undertake all physical distribution functions of the customer company.

32

SG HOLDINGS GROUP Corporate Social Responsibility Report 2010

Sagawa Foreign Students’ Scholarship Foundation

Effort on Safety

In addition to distribution fields,
the SG Holdings Group makes strong ties with society through education,international exchange, medical support, and cultural arts in order to gain greater trust.

Outline of
SG Holdings Group

Foundation Activities

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

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

After Sagawa Express donated 200 used trucks to China in 1985, this foundation
was established in 1986 to continually provide support for regional development,with a focus on developing countries. We are also accepting vehicle maintenancetechnology trainees since we would like the donated trucks to be used for as long as
possible. We hope to continue contributions to the promotion of international
understanding through our operations.
In February 2007, we received a national award from the Lao People's Democratic
Republic for our many years of donating used trucks.

Relationship withSociety

Sagawa International Economic Cooperation Foundation

Efforts on
Environmental
Conservation

This foundation was established in 1986 to strengthen ties with countries inSoutheast Asia and contribute to cultural exchange through support funds for the
personal expenses of exchange students.
In order to allow exchange students to concentrate on their studies, financial
support is provided through scholarships, as well as mental support. In addition,
efforts are being made to create communication among scholarship students
through the holding of acceptance certificate award ceremonies and exchange
meetings, the publishing of scholarship student directories and graduation essaycollections, the creation of a website, etc.

Sagawa Cancer Research Promotion Foundation
http://www.sagawa-gan.or.jp/

This foundation was established in 1989 to make contributions towards the
improvement of cancer treatment.
To promote health in many people, we make contributions to the improvement of
medical welfare through support for basic cancer research and applicable treatment
research. We also contribute to regional communities with “cancer citizen public
lectures” that make the latest information on cancer prevention, diagnosis, andtreatment easy to understand for everyday people.

Sagawa Art Museum Public Interest Foundation
http://www.sagawa-artmuseum.or.jp/

This museum opened in March, 1998. Under the three pillars of the HIRAYAMAIKUO KAN, SATO CHURYO KAN, and RAKU KICHIZAEMON KAN, art/culturalexpressions shown repeatedly from each independent “mansion and theme”, andvarious exhibits are shown.
In addition to art/culture information distribution through the exhibition of works,
musicians in various genres are invited to concerts, workshops based on exhibits areheld. We are working towards the education of future generations along with
cultural exchange for regional communities.

33

Opinionson CSR

The voices of our members
nationwide who are working
in CSR activities

Tomohiro
IshidaSales driver
Odate Office
Sagawa Express

Providing quiet living environmentsby removing keys
As part of eliminating engine idling, Sagawa Express removes keys
when loading and unloading packages. Once when I made a delivery,
there was a note posted saying “my child is sleeping, so please do notring the doorbell”. I quietly opened the door and delivered the package.
If I had not removed the key, I probably would have woken the baby. I
realized once more that removing keys does more than economize fuelexpenses and reduce C02, it also is of use to local citizens.

I want to expand on small efforts
through workplace communication.
Yuki Teramoto
Business Strategy
Department
SG Systems

Takayuki
Takeuchi

I still remember the words“having insurance saved me”

Sub Chief
Insurance
Operation
Department
Tokyo Branch
Sagawa Advance

By offering insurance services, it is my duty to provide ease of mind
to the employees of the SG Holdings Group. One day, a driver who had
purchased insurance from me said “I was injured and had to take along leave of absence, but I was saved thanks to the insurance you
recommended. Thank You.” I felt that my efforts paid off. I willcontinue to support everyone’s lives as an unsung hero.

Kanae Onuma
Administration
Section
Sagawa Logistics
Partners

34

I am promoting education on the environment through workplacecommunication. In addition to Ecocap Movement, I highly value the
combined strength of other small efforts such as switching to energy-saving
LEDs for electric signs when changing a company name. Personally, I collectused stamps. In future communication activities, I would like to promotecollection exercises for used stamps/cards throughout the entire company
and make contributions to welfare organizations, etc.

I want to improve workplace environmentswith “the power to notice”
We at the administration section do not have the opportunity tocommunicate directly with customers, but I believe that allowing all
employees to do their jobs without hindrance is linked to safely andreliably delivering customers’ products. In this, it is important to have“the power to notice” when someone is troubled or inconvenienced. I
want to be watchful and attentive day to day while providing for
disregarded needs as much as possible.

SG HOLDINGS GROUP Corporate Social Responsibility Report 2010

Outline of
SG Holdings Group
Efforts on Safety

Relationship withSociety

Solid safety and reliability
in livelihoods

Efforts on
Environmental
Conservation

Efforts on
Safety35

Efforts on Safety

In all our activities,
safety is our top priority.

Hideo Kameda
REPORT

Department Manager
for Safety Promotion
Personnel and Safety
Control Department
Sagawa Express Co., Ltd.

The SG Holdings Group depends on trucks for our core logistics operations. Not surprisingly, safe
driving is our first priority, and we are promoting Eco Safety Drive and fully completing maintenancerequirements. We are also raising our drivers’ awareness and knowledge of driver safety, using training
and events such as driver contests to promote safe driving. For the wider public, we offer traffic safetyclasses for children and seniors in partnership with local communities.
In 2009, 4,914 people lost their lives in traffic accidents in Japan. In a bid to prevent traffic accidents,
Japan’s Ministry of Land, Infrastructure, Transport and Tourism issued the “2009 Comprehensive Safety
Plan for Commercial Drivers.” Based on this document, we declared our objective to “reduce traffic
accidents, violations of the law and work accidents” and began activities on that basis. Going forward,
we will continue to contribute to a safer, more secure society in partnership with other cooperatingcompanies.

FY 2009 Results
Constructing a group-wide safety databaseIn fiscal 2009, we implemented the “Operation Eco Safety
Drive” in Japan to reduce our environmental burden throughsafe driving. As a result, the total fuel efficiency of all vehicles
increased by 102.3%, bringing savings in oil costs andreducing CO2 emissions. A system was established for thecentral management of the drive recorders installed in all
vehicles. Based on the “Hiyari-Hatto” (frightened/surprised byan incident) experiences of drivers, a third-party agency
analyzed near-miss accidents, resulting in a list of the kinds oftimings, locations, etc. that are likely to cause accidents. We
plan to use this data in the preparation of educational
materials for future employee training.

36

SG HOLDINGS GROUP Corporate Social Responsibility Report 2010

Future targets
By strengthening our system for driver
instruction, we are improving our drivers’safety awareness and driving techniques.
In Operation Eco Safety Drive, which began in FY 2009, the key
objective is for drivers to develop habits of safe driving so eachand every employee can achieve the target of zero accidents. To
strengthen our routine instruction framework with this objectivein mind, Sagawa Express is revising our certification systems for
SD Instructors and Safe Driving Supervisor. Our goal is to educate
our managers to hold a high degree of knowledge and skill withrespect to safety, so those managers can play a leading role in
reducing the risk of accidents. Sagawa Express is moving forwardwith activities to improve on our performance in FY 2009, in
which both accident rates and environmental impact decreased.

Outline of
SG Holdings Group

Scheme to Enhanced Safety
The entire company is making efforts towards increasing driver skills and safety awarenessthrough the establishment of a safety management system and driver contests, etc.

Efforts on Safety

Safety management system
Diagram of the safety management organization* Since May 1, 2009
Voice of the field/
feedback of opinion
Order instructions

Board of directors

Safety Measures Committee

Safety Conference
Meeting ofmanagement directors

Efforts on
Environmental
Conservation

Branchmanagers’ meeting

Review meeting for safety
Review meeting for
personnel and labor affairs

Review every safety-related issue

Meeting of regional office managers Regional

Safety promotion meeting

Sales office manager

Vehicle maintenanceadministrator and assistant

OfficeVehicle operation
administrator and assistant

Sales
OfficeRelationship withSociety

Giving the top priority in its business management to assure
safety in transportation, Sagawa Express has established a
Safety Measures Committee. In October 2006, transport safety
management rules were legislated by the Trucking Transport
Business Law for the purpose of “improvement of the transport
safety.” The committee was set up for this purpose in 2003 prior
to the legislation in 2006.
The director in charge serves as the chairman, while thedirector of the board, corporate officers, branch office presidents,
CEO of the group company that performs actual transport
works, and other executives serve as vice chairman andcommittee members constituting the committee. The committee
holds a monthly safety conference, where the progress of safety
activities are reported and various measures are discussed forassuring safety from the viewpoint of hardware as well assoftware. In addition, review meetings by the personnel incharge of safety promotion activities at regional offices andsales offices are regularly held to improve safety measures,reflecting mainly opinions from the frontline.
As part of the safe driving management system, we also
assign dedicated safety promotion staff at every sales office.
Those staff members work mainly on safety driving managementin arranging a good working environment for drivers throughsmooth two-way communication.

DriverFully equipped training facilities
In order to develop excellent drivers, Sagawa Express has
training facilities equipped with courses for driving practicing
at four locations: Miyagi, Kanagawa, Aichi, and Kagawa.
Utilizing courses that simulate residential districts includingintersections with poor visibility, we conduct useful lessons
for how to drive safely on public roads.

Training facilities nationwide
Location

Training
course Area

Training
vehicleMiyagi Prefecture (Zao)

14,308m2

14

Kanagawa Prefecture (Ayase)

31,020m2

47

Aichi Prefecture (Toyohashi)

25,132.8m2

15

Kagawa Prefecture (Setouchi)

2,098.8m2

6* AT vehicles as well as light vehicles to be introduced for training vehicles

Zao Training Center

Ayase Training Center

Toyohashi Training Center

Setouchi Training Center

37

Efforts on Safety

Improvement of safety with a license system

SD Instructor License

Safe Driving
Supervisor License

Education flow of new recruit drivers

Regular attendance
12 month attending instruction

Follow-up
period withan SD
Instructor(Ongoing driving duty test)

6 month attending instruction
3 month attending instruction
1 month attending instruction
SD's graduation certifying training

Instruction
period withan SD
Instructor

Pick up and delivery duty test
Solo driving duty test
Attending instruction
Attending instruction starting test

Tests conducted by a Safe Driving Supervisor

We have the “Sagawa License System” to educate and certify
excellent instructors for the purpose of developing drivers inorder to prevent accidents. As for those relating to safety, there
are two licenses; SD Instructor and Safe Driving Supervisor. SD
Instructors are selected from the employees with detailed
work-related knowledge, and those who have sufficientknowledge, skills, and leadership and have passed the test are
certified as SD Instructors to be in charge of the education of
new recruit drivers on the on-the-job training. Safe Driving
Supervisors are selected from administrators and veterandrivers, and those who have judgment ability in addition toprofessional knowledge and skills are certified as Safe Driving
Supervisors to assume an important role to judge whether a
recruit driver is ready for independence on the job. We enhance
the human resource education system by separating the
education and certifying
functions.
As of March 20, 2010, we
have 9,130 certified SD
Instructors and 2,316 Safe
Driving Supervisor.
Certificate ofCertificate of

Basic education for safe driving
Basic education for new recruits
Company orientation
Pre-employment education

Heart to HeartTo inherit the DNA
called “safety”
Through the training progress ofa new driver who was hired in 2009,
we will show the efforts of
Sagawa Express to convey theimportance of safety to a new generation.

Kyohei Kodaira
Sales driver
Sagawa Express Yokohama Midori Office38

SG HOLDINGS GROUP Corporate Social Responsibility Report 2010

Training towards “Hikyaku no kokoro”(the spirit of express messenger)
and the basics of safe driving“When I went for a drive with a friend on a day off, I wastold “your driving has changed”, says 2nd year sales driver
Kyohei Kodaira. Hired in February 2009, he works in thenorthern area of the City of Yokohama.
“After seeing sales drivers working energetically every day,I felt it was a worthwhile job and decided to join” says Mr.
Kodaira. “I did not particularly have confidence that I could
drive a truck, I believe the reason why I am now able to work
as a sales drive is because of Sagawa Express’s unique humanresource development system. I have undergone various
training programs up until now, and I really think the
deepest impression is the basic education for new recruits.”
Basic education for new recruits is carried out over threedays and two nights. Training involves company operation
content and CSR environmental activities, etc., and sales
driver duties are learned through role-playing. “I learned thebasic attitudes for working at Sagawa Express through vocal
practice and other methods.” When making contact withcustomers, employees are thoroughly trained to take a social
attitude with a cheerful voice.

Outline of
SG Holdings Group
Efforts on Safety

Afterwards, new employee lectures are taken during“Basic education for safe driving”. “We must take an attitude
as a professional driver, learning starting and stopping,
acceleration and deceleration, as well as basic skills otherthan truck driving such as pointing and calling along withnight driving. In addition, there are lectures on vehicle
inspection and cleaning. I was able to systematically learn
skills and attitudes related to safe driving.”
Vehicle inspection is a basic of safe driving

Words from the SD Instructors
I decided to become an SD Instructor forthe goal of increasing safe driving awarenessthroughout the entire company. In myteachings, I have repeated “when driving,
focus only on driving” many times. This isbecause just a slight relaxing of one’s
attention can cause an accident. Accidents
cause problems for victims and those at
fault. In order to not cause trouble forpeople, we continue our thorough teachings.

Tomohiko
Kurokawa

Relationship withSociety

After safe driving basic training is complete, teachingsfrom SD Instructors and certification from Safe Driving
Supervisors continue. “In addition to driving techniques,
SD Instructors taught me detailed information on generalsales driver operations. It was very helpful for interactions
with customers and other areas. The Safe Driving Supervisor
taught me the importance of verifying every operation.
Sometimes they spoke harshly, but through the teachingsof my superiors I fully realized my weaknesses behind thesteering wheel before I had joined the company.”

Efforts on
Environmental
Conservation

Fully realizing one’s own pre-employee
weaknesses through the teachings of
instructors and supervisors

Sub Chief
Operations Division
Yokohama Midori Office
Sagawa ExpressThoroughly safe driving
in order to become a trustworthy driver
Mr. Kodaira is entering his second year as a sales driver.
While steadily learning work skills, as he also learned situations
in which accidents could easily occur as he became used tohis job. Becoming too accustomed to something is forbidden
for safe driving, and there is no such thing as being too
careful.
“The trucks have more blind spots than a passenger
vehicle. In particular, I am very careful in narrow roads towatch for suddenly appearing pedestrians and people on
bicycles, as well as rolling over during left turns. In addition,
I do whatever I want on a day off so I can clearly focus on myjob. Recently, I have finally been able to quickly switch
between on and off modes by refreshing my mood. Doing a
job at your own pace is linked to driving with a relaxed
attitude.”
When asked about his future aspirations, he enthusiasticallysaid “I want to satisfy customers more than I am now andbecome a reliable sales driver. To do this, I plan on working
on my duties with a greater awareness of safety.” Safe driving
is the foundation of building trust with customers. This feelingthat has been cultivated by Sagawa Express is being carriedon by new drivers.

Appropriate trainng from SD Instructors

Words from the Safe
Driving Supervisor
I believe what you are looking at and withwhat timing are important for safe driving.
In other words, your eye movements. This is
why I pay the most attention to a driver’s
line of sight during certification. When theirline of sight does not move, I immediately
warn drivers to pay attention to theirsurroundings. In the future, I hope that all
drivers do their jobs with a strong feeling of“driving is not a game, and I will not makeany compromises.”Hiroaki Sagawa
Assistant Manager
Safety Promotion Section
Yokohama Midori Office
Sagawa Express

39Efforts on Safety

Winners in a National Truck Driver Contest
In October 2009 at the Central Training Academy for Safe Driving in
Hitachinaka, Ibaraki Prefecture, the SG Holdings Group entered 30 drivers in theJapan Trucking Association’s 41st National Truck Driver Contest to compete insafety knowledge and techniques with truck drivers from other transportationcompanies. Nine drivers placed, including one who won the Police Department
Minister’s Award.
Competition content

Knowledge test

Answer sheet examination on the Road Traffic Act, Road Trucking Vehicle
Act, structural functions (vehicles) and other driving-related common
knowledge required for professional drivers.

Maintenance &inspection test

Inspection skills such as inspection locations and inspection content(observation points) for securing vehicle safety are evaluated.

Drivingtechniques test

A wide range of driving techniques is evaluated in course driving,
compulsory driving, driving operation, safety check, etc.

Scene from a competition

4 ton category
Rank

Branch

Name

Score

Remarks

978

Police Department
Minister’s Award

1

Masamitsu Nakayama

Tanabe2

Yoshio Kagasaki

Fukaya975

3

Yusuke Takano

Gifu

970

4

Hideyuki Sato

Shizuoka

970

Awards ceremony

Women’s category
Rank

Name

BranchScore

Remarks

1

Kaori Tsurusawa

Higashimatsuyama

975

Police Department
Minister’s Award

2

Yoko Arai

Koga

968

3

Tomoko Kasai

Akita

953

4

Konatsu Sugimoto

Higashi Osaka953

5

Yoshiko Umehara

Tosu

930

Prize winners made a courtesy callto the Prime Minister's residence
Photo provided by the Japan Trucking Association

Sagawa Express National Driver Contest
The 17th Sagawa Express National Driver Contest was held in May 2009 at the
Sagawa Express Training Center Vehicle Practice Area to prevent traffic
accidents. 60 drivers including drivers from group companies obtained perfect
1,000 point scores for their day to day driving skills and consideration for theenvironment, in the categories of “Study Subject Competition” (400 points),“Driving Competition” (400 points), and “Inspection Competition” (200 points).
Prize-winning individuals

Light vehicle division

Name

Branch (Regional Office)

Score

Toru Takahara

Suma (Kansai)

967

2 ton division

Kenta Inoue

Fukui (Chubu)

978

4 ton division

Hideyuki Sato

Shizuoka (Chubu)

969

11 ton division

Hiroshi Nishihara

Kyushu route Sales Office (Kyushu)

982

Rookie division

Yoshinori Irie

Koga (Kanto)

958

Special award

Tomoko Kasai

Group champion

Akita (Tohoku)
Chubu

Scene from a competition

952
949.78Awards ceremony

40

SG HOLDINGS GROUP Corporate Social Responsibility Report 2010

We believe that safe driving also has strong effects on the environment.
Therefore, we are promoting “Eco Safety Drive”, which combines safety and ecology.

Efforts on Safety

Promotion on Eco Safety Drive

Efforts on
Environmental
Conservation“Eco Safety Drive” training courses

Relationship withSociety

In order to assure safety and eco-friendly driving among
all our drivers, throughout the entire company Sagawa
Express promotes “Eco Safety Drive”, driving without making
any jackrabbit starts or crash stops. The principle of “EcoSafety Drive” is observation of an upper limit in the engine
evolution speed for startup and during driving, as well as
enhancement of the driving techniques related to the timingof the gear change. These efforts will lead to a reduction infuel consumption in addition to safety and environmental
merits, bringing us a significant cost saving. In order toimplement “Eco Safety Drive,” administrators and instructors
were solicited to take part in special training.
In FY 2009, three “Eco Safety Drive” training courses wereorganized in which 108 employees participated.

Outline of
SG Holdings Group

Efforts on Eco Safety Drive

Seven Points for Eco Safety Drive
We have set up “Seven Points for Eco Safety Drive,” a list of
the seven most important items in Eco Safety Drive. These areincluded in the employee’s handbook. We also utilize an
educational video, a Practicing Manual of Seven Points for Eco
Safety Drive, for training, as an attempt to spread the idea toall employees.

1 Practice of softer acceleration, “e-startup”
2 Shift-up operation well in advance3 Driving at a constant speed in accordance withtraffic conditions
4 Keeping a safe inter-vehicle distance
5 Utilization of the engine brake by releasing thegas pedal in good time
6 Strict enforcement of key pulling out (to stop theengine) when parking
7 Daily inspection/servicing and tire air pressure
control

Operation Eco Safety Drive
Operation Eco Safety Drive has been implemented since
fiscal 2009 with a competition for fuel cost economizing
between individual branches as well as efforts for further Eco
Safety Drive promotion. In order to ensure equality in the
public view, branches are divided into groups A-D based onscale, and the top ranking branches based on 1. Fuel costeconomizing rate, 2. Reduction in usage volumes, and 3. Low
fuel consumption is announced quarterly.

Operation Eco Safety Drive poster

41

Efforts on Safety

Efforts on Safety by Vehicle Servicing
and Safety Devices
In order to prevent traffic accidents, regular inspection of trucks,
thorough vehicle maintenance, and teachings using safety devices are carried out.

Traffic accident prevention through thorough vehicle maintenance
SG Motors Co., Ltd., which assumes the servicing work of all
SG Motors vehicle serving network
the vehicles owned by SG Holdings Group, is trying to eradicate
Head Officeaccidents caused by improper maintenance and reduce burdens
Branchon the environment by performing rigorous inspections andMaintenance factory
maintenance. Good maintenance and strict inspections also
leads to the reduction of environmental load. In fiscal 2008,
the expansion of the Sapporo and Takamatsu repair shops was
carried out through relocation to new buildings. In the following
fiscal year, new repair shops were opened in Saitama, Gunma,and Niigata prefectures in the northern Kanto region as we
expand the support framework and strengthen services.
Daily inspections conducted by the drivers, 3-monthinspections and 12-month inspections according to the vehicle
maintenance plan and other standardized inspection andmaintenance works are conducted without fail. The progressof the repair status of the vehicles that have been recalled by the manufacturer is properly controlled to support the safe
driving operation of more than 28,000 vehicles.

To prevent traffic accidents, Drive Recorders have been introduced
In order to objectively understand driving characteristics
and make more effective safety driving instructions, Sagawa
Express has introduced Drive Recorders (a driving recording
device). The Drive Recorder equipped on a vehicle evaluates
the driving operation with a point rating method in fivedifferent areas: brakes, stops, steering wheel, left/right turns,
and smoothness. With this we can know each driver’s traits
and weaknesses, furthermore drivers can aim for high scores
while raising their safety awareness. In addition, in order toprevent traffic accidents we are introducing devices thatsound an alarm when certain points designated on a map arereached and simultaneously record inmages on a hazard map.
As of March 2010, we have installed 5,351 drive recorders,
and the evaluation results are being shared between
headquarters and regional offices. This is linked to the increased
safety awareness for all of Sagawa Express.

Precise advice based on driver instructions

Driving diagnosis result chart

Confirmation of driving
diagnosis results

Utilizing “Hiyari-Hatto” (frightened/surprised byan incident) experiences for safety education
It is important for drivers to share close-call experiences
while driving in order to prevent accidents. Therefore, at our
workplaces we show videos of dangerous occurrences recorded
from drive recorders. These and other reference materials areused in training and discussions for risk aversion.

42

SG HOLDINGS GROUP Corporate Social Responsibility Report 2010

“Hiyari-Hatto” example video“Hiyari-Hatto” video recorded by Drive RecorderNationwide simultaneous safety patrolfor core transportation

For the purpose of maintenance and enhancement of thetransport quality by preventing traffic accidents and vehicle
troubles during core transportation, we conduct “Sagawa
Express Nationwide Simultaneous Terminal Inspection forCore Transportation” twice a year. At all bases of Sagawa
Express, the branch managers and administrators, including
those from subcontracting companies, utilize a custom
check sheet and conduct vehicle checks for daily inspection
before departure.

Safety seminar for the coretransportation subcontracting companies
Safty driving seminars were held featuring the invitationof outside lecturers from the Ministry of Land, Infrastructure,
Transport and Tourism and other organizations. These wereorganized for other core transport partners about subjects
on the responsibility of management including examples ofachievements in measures for the safety of truck operatorsand safety management.

Results

29th Total number of inspected vehicles: 3,276
Number of participating inspection staff: 830
Number of defects found: 12
30th Total number of inspected vehicles: 3,099
Number of participating inspection staff: 843
Number of defects found: 17
Core transportation drivers were called on for safe
operation and to carry out midway-point vehicle
inspection based on regular inspection standards
Sticker verification for the conforming vehicle
emblem for operation vehicles that conform to theregulations for vehicles entering Osaka Prefecture
Cleaning activities at each location before patrol
commencement

PatrolContent

Results of the Nationwide Simultaneous Terminal Inspection for Core Transportation
Date

15th: June 29 (Mon.), 2009
16th: December 7 (Mon.), 2009

Results

15th Total number of inspected vehicles: 5,335
Number of defects found: 56
16th Total number of inspected vehicles: 5,523
Number of defects found: 46

PatrolContent

Relationship withSociety

Nationwide simultaneous terminal
inspection for core transportation

29th: April 10 (Fri.)– 11 (Sat.), 2009
30th: September 10 (Thu.)– 11 (Fri.), 2009

Efforts on
Environmental
Conservation"Sagawa Express Nationwide Simultaneous Safety Patrol forCore Transportation" comprises measures such as the refreshingof the body/mind of drivers and vehicle inspection/maintenancein order to prevent traffic accidents and vehicle breakdowns. In
both spring and fall every year since 1994, safety issues arebrought up by core transportation drivers, mainly at service
areas/parking areas along major highways.
As part of our gratitude and environmental protection
measures, we also initiate clean-up activities at venues.

Records of the Nationwide Simultaneous Safety Patrol for Core Transportation
Date

Efforts on Safety

Concerning core transportation, Sagawa Express makes
various efforts to raise the safety awareness of drivers,
including those belonging to subcontracting companies.

Outline of
SG Holdings Group

Ensuring safety of core transportation

Vehicle inspection carried out using dedicated checksheets based on regular inspection standards
Strict check to make sure no alcohol is brought into
the driver's seat

Safety seminar
Area

Date

Number of participants

KyushuAugust 3

39

Chugoku/Shikoku

July 27

42

KansaiJuly 28

63

Chubu

July 31

35

Kanto

August 6

88

TohokuAugust 7

18

Hokkaido

August 5

16

Total

—

301

Seminar content: The theme of "Industrial Vehicle Comprehensive Safety Plan 2009"
Associated administrative organizations, etc. gave lectures on the main
points of the newly drafted 2009 safety plan for the purpose ofprotecting safety for transportation when using public routes.

“Beloved vehicle day” efforts
The trucks operated by Sagawa Express drivers are entitledwith “protecting safety in regional communities, transporting
customers’ precious packages while keeping the drivers
themselves safe” and are valued partners that spend moretime with us than even loved family members.
We started “Beloved vehicle day” to enhance a beloved
vehicle spirit since fiscal 2009.

A scene from “Beloved vehicle day”

43

Efforts on Safety

Looking to a Safer Society
As we use trucks daily, it is our important mission to help make safe traffic society a reality.
By communicating with local communities, we teach the importance of traffic rule observation.

Sagawa Express Traffic Safety School preserves the smiles of children
Sagawa Express Traffic Safety Schools were born from a desire to protect
children from tragic accidents. These traffic safety classes are taught tokindergarten to lower elementary school year age children. In addition toteaching the basics of traffic rules such as crosswalk crossing and the meaningof traffic lights/signs/symbols, demonstrations of blind spots using an actual
truck are included in lessons. 837 classes were taught in Japan in fiscal 2009
with 113,867 children participating. We have received many messages fromparticipants, which bring us joy and help us to feel a great responsibility
regarding safety. We will continue to raise traffic safety awareness among all
employees and be thorough in overall day to day safety in order to prevent
accidents.

Safe driving is our promise to children

Shiori Yasuda
Safety Promotion
SectionTohoku Branch Office
Sagawa Express

In a traffic safety class, people in pig suits were playing
around a parked truck. Then, many of the children started
shouting “That is dangerous!” and “Do not get close to a truck!”After seeing this, I felt that traffic safety class activities had great
merit. The teachers also asked us “Please come again. The
children learn better from seeing demonstrations rather thanbeing lectured.” In addition, the driver who participated in the
traffic safety class said “I made a promise to the children to drive
safely, so I will be sure to drive safely” in regards to his new
feelings. We were reminded of the importance of safe driving
through interacting with children in the traffic safety class. We
will continue to expand our traffic safety class activities in orderto protect the cute smiles of the children.

We received a lot ofsweet messages

Traffic Safety School

Traffic Safety School for Senior Citizen
According to a report by the National Police Agency, nearly half (49.9%) of
4,914 people killed in traffic accidents in 2009 were senior citizens aged 65 years
and above.
In addition to the Traffic Safety
School for young children, Sagawa
Express also hosts the same kindof school tailored to senior citizens
in various regions in order toprevent accidents among seniorcitizens.
Traffic Safety School

44

SG HOLDINGS GROUP Corporate Social Responsibility Report 2010

Component rate of the victims ofeach age group (2009)15 years old and below 2.3％
16-24 years old
10.6％

65 years old
and above
49.9％

25-29 years
old 3.7％
Thirties
7.6％
Forties
7.8％
Fifties
10.6％

Source: National Policy Agency

60-64 years old
7.5％

Outline of
SG Holdings Group

Offices’ efforts on safety

Efforts on Safety

As an achievement award regarding safety, Sagawa Express
set up the Continuous Accident Free Award scheme for ouroffices. “Continuous accident free” is calculated by the
number of vehicles that belong to the office multiplied by
the continuous days without accidents; that means, the resultsof the concerted efforts of all the office employees on safe
driving are evaluated.

The Assessment Audit for Transport Safety Management by the MLIT
The Assessment Audit for Transport Safety Managementby the Ministry of Land, Infrastructure, Transport and Tourism(MLIT) was conducted on October, 2009. After the evaluation,
we received high evaluation marks in the following areas: ①
Display of positive commitment by top management; ②As-needed understanding/verification of the achievement
status important safety measures and any revisions based onthem; ③ Increasing awareness of planning participation in
employees as well as policies for achieving full two-way
communication between the business management
departments and actual workplaces.
We will continue to work on the improvement of safety
awareness throughout the entire company and further
promote our efforts.

Relationship withSociety

The Asahikawa Office is working to overcome the driving
weaknesses of individual drivers. Through accompaniment
Pointing out weak points and raising awarenessby managers and safety patrols, individual drivers are able toobjectively understand their weaknesses. For man-to-man instructions, effective results are obtained by basing the instructions
on each weakness, allowing for improved safety awareness and a continued accident-free period.

Efforts on
Environmental
Conservation

The efforts of the office with the longest
accident-free period, Asahikawa Office

Scene from an evaluation by the Ministry of Land,
Infrastructure, Transport and Tourism

Certified as a Business Institution of Excellence in Safety
Sagawa Express, Sagawa Moving Center, and World Supply
were certified as Business Institutions of Excellence in Safety
for their 339 branches (as of March 20, 2010). This certification
by a National Trucking Rectification Operation can be achievedby businesses that have been properly evaluated for efforts
towards traffic safety, etc. We will continue to make efforts sothat we will also receive high evaluation in the future.

Certification logo mark of a BusinessInstitution of Excellence in Safety

45

Opinionson CSR

The voices of our members
nationwide who are
working in CSR activities

Kazuya Uchida
Sales driver
Tsuyama Office
Sagawa Express

Keiko Kudo
Management
Department
Operations
World Supply

Yoshiyuki
TanakaSales operations
manager
Minami-Osaka
BranchSG Motors

Mai Nakahara
Administration
SectionKyushu Branch
OfficeSagawa Express

46

Customer trust has developed
into new work
I am glad when I am told “thanks again” rather than “thank you” after
going to pick up or deliver packages for a customer. And one time, I
got a call from an unknown number on my mobile phone. When I
answered the phone, I was told “I was introduced by an acquaintance
who told me that Mr. Uchida of Sagawa Express could absolutely helpme” by a new customer. I was both surprised and impressed that I had
gained the trust of customers.

I want to make everyone cheerfulthrough a bright personality
With my duties in delivery agency operations, I value a bright
personality and always greet people with a smile when I am working,whether they are employees or customers. The other day, I was
introduced to a new customer by another customer “because I respondquickly and have a bright personality.” I try to be positive, energetic,
and sincere about everything. Through this attitude, I hope to be able
to make everyone cheerful, even if it is just a little bit.

Difficult work is an opportunity
to satisfy customers
My day to day work includes tight deadlines and orders with highhurdles. In such times I do not say “it is impossible” and simply refuse,
I say “how about this?” and try to find a proposal that will satisfy thecustomer. Difficult work gives a feeling of accomplishment, andcustomers respond with more gratitude. I will continue to endeavor forbusiness operations that satisfy customer needs in order to pleasecustomers.

Various activities are being developed with“consideration for people and the Earth” as keywords
Eco Cap activities are promoted throughout the entire Kyushu
Branch, and enough caps for vaccines for 145 people were collected asof April 2010. In addition, we are making contributions with volunteer
activities such as collecting pull-tabs for wheelchairs, collecting old
newspapers, and energy saving activities to reduce CO 2 emissions. In
the future, we will continue with activities that contribute to society
with “consideration for people and the Earth”.

SG HOLDINGS GROUP Corporate Social Responsibility Report 2010

Outline of
SG Holdings Group
Efforts on
Environmental
Conservation
Relationship withSociety

Partnerships with regional communities
and promotion of activities
that protect the environment

Effort on Safety

Efforts on
Environmental
Conservation47

Efforts on Environmental Conservation

We are making steady
improvements
in both hardware
and software terms.
Kinya Hiyama
REPORT

Manager
Environmental Preservation
Promotion Section
General Affairs Department
Sagawa Express Co., Ltd.

At the SG Holdings Group, many trucks are in operation every day to serving our valued customers.
As a company with logistics at our very heart, we recognize that vehicle emissions are an issue we must
consider seriously. That is why we are enthusiastically active in efforts to improve shipping efficiency
and are promoting Eco Safety Drive to reduce air pollution and global warming. We are also working inharmony with communities and nature on environmental issues, with efforts in both physical/technicalmethods and education/awareness-raising methods. To ensure continuous improvement, we clearly
disclose our environmental objectives and targets and review them regularly. To pass on ourirreplaceable natural environment to the next generation, the SG Holdings Group is constantly
imagining what else we can do and taking resolute action, fulfilling our duties as a corporate citizen.

FY 2009 Business/Results

48

Future Targets

Everyone’s energy-saving efforts
make a difference

Extending environmental-preservation
activities to the entire community

In FY 2009 Sagawa Express’s total CO2 emissions were 405,000
metric tons—10.56% higher than in the baseline year of FY
2002. The key factor in this rise was a significant increase in
our number of vehicles following major acquisitions
beginning FY 2006. At the same time, we embarked on a
campaign to reduce energy consumption, as a result of which
Sagawa Express’s energy consumption, at 9.92 million kWh,was 3.8% lower than in the previous fiscal year.
This energy consumption is equivalent to that of one million
typical households in Japan. This remarkable achievement isdue to the dedication and hard work of each and every
employee, in every Sagawa Express business location.

Every year the volume of packages shipped by Sagawa
Express increases. As such, we recognize that reducing
energy consumption in shipping activities is an issue ofpressing concern. To achieve maximum benefit in efforts to
reduce CO2 emissions and save energy, it is vital to promote
environmental activities that are group-wide in scope. In
future initiatives, Sagawa Express will continue to pursue
environmental measures in our own operations while
partnering with stakeholders across the SG Holdings Group,
aiming for environmental activities that encompass all ofsociety.

SG HOLDINGS GROUP Corporate Social Responsibility Report 2010

Environmental Philosophy and Environmental Policies
As a good corporate citizen, Sagawa Express establishes independent and continuous basic policies forenvironmental conservation. While trying to harmoniously coexist with society and nature, we will makeefforts to solve global environmental issues and contribute to the development of local communities.

Efforts on
Environmental
Conservation

Environmental Philosophy

Efforts on Safety

As we aim for harmony between society and nature,
the SG Holdings Group is introducing new technology and combining the efforts ofeach individual employee towards the prevention of global warming.

Outline of
SG Holdings Group

Concept of Environmental Activities/
Efforts against Global Warming

Environmental Policies

2 Promoting natural resource saving, energy saving and 3R*, we will make improvements, planning andsuggestions for the effort on the structuring of a recycling-oriented society.
3 We will observe environment related regulations, ordinances, agreements and other requirements andtry to reduce environmental load and to prevent pollution.

Relationship withSociety

1 To restrain global warming and air pollution by tailpipe emissions, we will try to make continuous
improvement in environmental conservation, through promoting the streamlining of transport, theintroduction of low-emission vehicles and the practice of Eco Drive.

4 Through the environmental education and enlightening activities, we will communicate these policies
to all employees and promote environmental activities. We will further spread information on theseobjectives and on our environmental activities to the general public.
5 We will try to make continuous improvement in the environmental management system, by setting theenvironmental designs and goals and regularly reviewing them.
* 3R is taken from the first letters of Reduce, Reuse, and Recycle.

Participation in Climate Savers Program
Climate Savers Program is an effort to reduce the greenhousegas effect, initiated by the world’s biggest nature conservationgroup in the private sector, the WWF (World Wildlife Fund), in
which the most advanced companies in the field ofenvironmental operations take part in. The particularities of thisprogram are that firstly, the companies set the reduction targets
through dialogue with the WWF and secondly, a third party
organization conducts the verification process. This gives
transparency and credibility to the participating companies.
As a condition to join this program, the companies are
required to set the reduction targets that exceed their current
plan and, in principle, the targets must be set in the absolute
quantities (gross emission), not in the basic units that indicate theamount of emissions per production quantities or sales volume.
This means that the quality of the program is extremely high andthat strong leadership is required for participating companies.

Scene in the Climate Savers Summit

As of March 2010, only 23 companies are taking part in thisprogram in the entire world. Sagawa Express is the firstJapanese company and the only distribution company in theworld to join the program.

49

Efforts on Environmental Conservation

Reduction target and action

The Sagawa Express target for
CO2 reduction

Reduction target: Reduce gross CO2 emissions by 6% before FY 2012

Sagawa Express sealed the Climate Savers Program in May
2003 and started efforts in collaboration with the WWF. The
target we stated was the reduction of gross CO2 emission by
6% (compared to fiscal year 2002) before FY 2012. We calculated
it based on the volumes of fuel and electric power used in ourbusiness activities, and it will be regarded as the absolute limit
for our CO2 emissions. Although our target is a 6% reduction,
we will need to achieve approx. a 14% reduction, considering
the increase of emissions due to the growth in businessperformance.
At Sagawa Express, we are implementing various measures
to reach this target, including further introduction of trucks
fueled by natural gas.

(Compared to the emission level of FY 2002)

Gross CO2
emissions in
FY 2002 (366,600t)

Increase
to393,500t

Reduction by 6%
compared to
FY 2002 (344,600t)

6% reduction

FY 2002(baseline)

In case we continue to
use only diesel trucks

FY 2012(target)Reduction measure: Large-scale introduction of natural gas fueled trucks
At Sagawa Express, our CO2 emissions are calculated from our actual fuel volume
used and verifications from a third party organization are implemented.

Progress
Sagawa Express made various efforts, including the introduction of natural gas fueled vehicles, using the gross CO2
emissions in FY 2002 as a reference point.
In fiscal 2009, through the thoroughness of Eco Safety Drive and the results of efforts in energy reduction, a 0.37% reduction
was achieved. However, it was a 10.56% increase compared to the baseline.
Sagawa Express trends in CO2 emission(unit:t-CO2)

Gasoline(including
Diesel oil Premium
gasoline, Natural gas

Electric
power

Total

FY 2002244,552

18,7805,810

97,477

366,619

FY 2003

235,154

17,153

9,660

97,654

359,621

FY 2004

221,886

19,474

14,658

101,459

357,477

FY 2005

217,648

20,741

18,91697,927355,232

FY 2006

207,515

25,89324,30098,407356,116

FY 2007

238,886

30,80828,261

101,307399,262

bio gasoline)

FY 2008

236,158

40,02832,01098,653406,849

FY 2009230,854

44,17735,397

94,902405,330▲13,698

25,39729,587▲2,57438,71294.40%

235.23％609.26%97.36%

110.56%* The reference point (the baseline) is the amount in FY 2002 when we started to work on Climate Savers
Program.
* Scope of statistics: The baseline in FY 2002 was calculated from statistics that included the electric power
consumed by our group companies and tenants located in Sagawa Express's facilities and the fuels sold tooutside parties. Since FY 2004, the scope of statistics was narrowed down to only the business operationsof Sagawa Express which is a participant in the program and, for the purpose of comparison with thebaseline, an equivalent amount to the CO2 emission from the electric power consumed by our groupcompanies and tenants located in Sagawa Express's facilities and the fuels sold to outside parties(10,435t-CO2) was added.
* Standard of statistics: The Agreement on Climate Savers and the FY 2008 Environmental Accounting Manual.
* CO2 emissions coefficient: The coefficient according to Enforcement Order on the Promotion of Measuresagainst Global Warming (Ministry of the Environment, December 19, 2002).
* The fuel quantity is calculated from the quantity purchased. Some values are, however, quoted from thedata of the quantity filled, based on the company’s statistics.

Conventional scope of statistics

Current scope of statistics

Sagawa Express
Sagawa Express
Group company
undertaking
core transportation
Trucking (Outsourcing)
Subcontracting coretransportation companies
Subcontracting
courier companies
Other hired trucks
Modal Shift
Railways/Marine transport/
Air freightMergerAcquired some of
Acquiredthe companies

Changes（09-02）
Ratio（09-02）

Reason for the increase of CO2 emissions
Subcontracted core transportation operations and part of courier
operations were merged into Sagawa Express. This had a large effect since
the emissions of these companies were not previously included in the total
for Sagawa Express.

Trucking (Outsourcing)
Subcontracting coretransportation companies
Subcontracting
courier companies
Other hired trucks
Modal Shift
Railways/Marine transport/
Air freightThe scope of statistics for Climate Savers Program

COP15/CMP5 support stickers
For approximately two months during November-December 2009, Sagawa Express placed
COP15/CMP5 support stickers on 1,105 natural gas fueled trucks for pickup/delivery operationsin the central Tokyo area. We are also cooperating in the notice development efforts of the WWF.
This sticker was created by WWF Japan towards the goal of success of the United Nations
Climate Change Conference in Copenhagen (COP15/CMP5), which was held in December 2009 in
Denmark. This was the conference for which the next period’s framework for the Kyoto Protocol
was decided.
Sagawa Express will actively continue activities in our partnership with the WWF as we work
towards reducing our environmental burden.
50

SG HOLDINGS GROUP Corporate Social Responsibility Report 2010

Truck with a sticker attachedComparison of tailpipe emissions (between diesel and natural gas fueled truck)
100 for diesel vehicle emissions.
Comparison in CO2 emission Assuming(Researched by Japan Gas Association, March 2007)

Diesel trucks

100

Natural gas
fueled trucks

78
CO2 reduction by 22%* CO2 emissions were calculated from the data taken from 101 trucks (2t-4t, ave. 2.7t) in the
period of 6 months.

Efforts on Safety

Natural gas fueled trucks use natural gas (utility gas) as
fuel and emit less CO2 and NOx compared to conventional
diesel engine vehicles and no PM at all. Therefore, they havegained attention in trucking fields as the cleanest vehicles
for cargo.

Outline of
SG Holdings Group

Environment-friendly natural gas fueled trucks

Comparison in NOx and PM emissions
PM regulation value（g/km）

Efforts on
Environmental
Conservation

0.18

New short-term regulation for diesel (after 2003)
0.027

New long-term regulation
for diesel (after 2005)
0.01

Post new long-term regulation (after 2010)
0

0.5

0.7

2.0

Natural gas fueled trucks

Natural gas fueled trucks

3.5
3.8
NOx regulation value（g/km)

Continued introduction of low-emission vehicles
Sagawa Express had introduced 4,355 natural gas fueled
trucks in total at the time of March 2010. This figure equals
25% of the total number of operating natural gas fueled
trucks in Japan and we are the largest private user in the
country. In addition, we are actively continuing to
implement low-emission vehicles such as hybrid trucks.

Relationship withSociety

0.00

Trends in introduction of low-emission vehicles(number ofvehicles)Other vehicles

Hybrid vehicles

Natural gas fueled trucks

10,000
9,000
8,000
7,000

4,417

6,000
5,000
4,000

304

3,000
2,000
1,000
0

26
1,110

1,647

'02

'03

61

39

49

2,197

2,693

'04

'05

52

1,716

4,835

100

100

4,254

4,355

86

3,290

3,695

'06

'07

'08

'09

(fiscal year)"Other vehicles" refers to the total number of vehicles among the diesel vehicles held by Sagawa
Express that meet the 2015 fuel economy standards and the 2005 gas emission regulations.

Setup of natural gas filling stations
In order to promote introduction of natural gas fueled
trucks, infrastructure maintenance is essential. However,since spread of public natural gas filling stations is stagnant,Sagawa Express has established its own natural gas filling
stations. As of March 2010, the number of natural gas filling
stations established by Sagawa Express across the country
now totals 23. In the
future, we will continue
infrastructure maintenancewhich is the core of theintroduction of natural
gas fueled trucks.

Promotion of light vehicle usage
For cities and towns, Sagawa
Express is promoting the usage offuel-efficient, light vehicles withlittle CO 2 emissions and no PM(particulate matter) emissions.
Light vehicles

Trends in light vehicle usage(number ofvehicles)

7,000
6,000
5,000
4,000
3,000

5,223

2,000
1,000

Home-use natural gas filling station (Chiyoda Station)

0

1,298

1,294

1,560

1,900

'02

'03

'04

'05

6,198

6,167

3,051

'06

'07

'08

'09

(fiscal year)51

Efforts on Environmental Conservation

Start to use bio fuels
For the purpose of reducing CO2 emissions from delivery
vehicles, we use bio gas as fuel for natural gas trucks. Bio gas is
produced effectively utilizing digestion gas* which is naturally
generated in the process of sewage treatment and haveattracted much attention as next-generation fuel sources that
can help reduce CO2 emissions.
In 10 trucks at the Higashi Kobe Office, We are using bio gas
which is obtained from purification of digestion gas generated
from sludge in the sewage treatment facility in Kobe City.
Mainly in Kanto and Kansai area, we also use commerciallyavailable bio gasoline for light motor trucks. Bio Gasoline isgasoline combined with bioethanol manufactured from theraw materials of living things. Like bio gas, it is being widely
developed as a bio fuel.
* The gas generated in the process of sewage including a large amount ofmethaneBio gas station

Examples of cooperation with
regional communities
Participation in
Osaka Green Delivery Promotion Activities
Green delivery is the transport and delivery of items using
vehicles that have low pollution (green delivery compliant
vehicles). At the Sagawa Express Kansai Branch Office, we areparticipating in Osaka Green Delivery Promotion Activities
so that the atmospheric pollution from the vehicles used forbusiness operations is reduced as much as possible.
Main efforts
Switching to green delivery compliant vehicles
We are planning to switch to green delivery compliant vehicles. Evenamong compliant vehicles, we endeavor to utilize natural gas trucks thathave fewer emissions and vehicles that have low emission gas certification.

Supply using green delivery
We are actively using green delivery for supply using our trucks.

Requests for green delivery in item procurement, etc.
We request green delivery support from business partners in regards tothe procurement of items/raw materials and the purchase of officesupplies, etc.

Transport and delivery using green delivery
When a shipper requests transportation and delivery using green delivery,
we shall endeavor to use a green delivery compliant vehicle for thetransportation and delivery whenever possible.

Activities for the wide usage ofeco cars in central Kyoto
Based on a partnership with businesses and the Kyoto
municipal government, we are utilizing green delivery andparticipating in the “Central Kyoto Green Delivery Promotion
Association” for the purpose of reducing environmental
pollution and preventing global warming. In the applicablearea of central Kyoto, all delivery vehicles are being switchedto natural gas fueled trucks and green delivery is being
implemented.

52

SG HOLDINGS GROUP Corporate Social Responsibility Report 2010

Green Delivery Promotion Activities sticker

Outline of
SG Holdings Group

Environmental Measures
for Transportation Optimization

Efforts on Safety

With the goal of “transportation with a low environmental burden”,
we are promoting efforts to optimize transportation such as reducing the number of trips
and utilizing transportation means other than trucks.

Reduction of environmental load by utilizing Service Centers
Service Center Flow Chart
Without Service Center
Customer
Customer

OfficeEfforts on
Environmental
Conservation

Customer

Using Service Center
Customer

Service
CenterOfficeService Center and delivery scene

Customer
Customer

Relationship withSociety

Sagawa Express has established Service Centers which usehuman-powered vehicles such as carts and three-wheeledbicycles instead of trucks.
Through the reduction in delivery vehicle use made possibleby these service centers, harmful emissions such as CO2, NOx/PM, etc. are reduced.
In addition, secondary effects from devising community-based
services include improved service quality for customers,
reduced parking expenses in traffic-heavy urban areas, and therelieving of traffic congestion.
As Service Centers are also located in easy access, office-heavy
areas, many female employees without driver’s licences cancommute and work effectively.
As of March 2010, we have 251 of these Service Centers,
mainly located in cities across Japan, and they have allowed areduction of 1,260 in new vehicle procurements. We willcontinue to establish new Service Centers to provide delivery
bases that are friendly to people, the Earth, and society.

Delivery using the three-wheeled cycles

Streamlining of transport utilizing Hub Centers
As part of network building works that support our transport,
we have established Hub Centers which are large scaleconsolidated distribution facilities to promote enhancement of
the transport efficiency.
Freight and parcels are gathered at Hub Centers and thensorted by their destinations, which increases the loading ratioof trucks and reduces the number of trucks used. This contributes
significantly to the reduction of tail pipe emissions from trucks
and suppresses air pollutants andCO2 emissions as well.
We are aiming for future reductionof environmental burdens throughfurther enhancement of travel
efficiency and loading ratios by
Trucks heading fordifferent destinations
utilizing hub centers.
gathering in a Hub CenterWest Japan Hub Center

Chubu Hub Center

Kuki CenterTransport Flow Chart using Hub Centers
Without Hub Centers

Using Hub Center

District

District

District

District

District

District

District

District

District

Direct transport
between districts is required.

Tokyo Big Bay

District

Hub
CenterDistrict

District

Freight is gathered at Hub Centersand sent on a consolidated transport
to each destination.

Kitakyushu Center

53

Efforts on Environmental Conservation

Sagawa Ryutsu Center (SRC) operations/management
In general, distribution of commercial goods consists of many different processes
from manufacturing in the factory to shipment, and cases where transportation
occurs between every working process can be seen. At Sagawa Ryutsu Center (SRC)
organized by Sagawa Global Logistics, through in-house uniform management of
products, transportation does not occur during the working processes fromreceiving to shipment. This reduces both customer distribution operation labor andcosts, and further contributes to energy reductions.
As of March 2010, Sagawa Global Logistics makes full use of 25 SRCs and 30
business offices to contribute to streamlining of our customers logistic operationand the reduction of CO2, NOx, and PM air pollutant emissions.

SRC exterior

Diagram of transport flow at SRC

Decrease in the number of transports = reduction in environmental load
Conventional distribution
Shipping

Shipping inspection
Picking

StorageInventor y

Acceptance inspection
Acceptance

Pick upCommodity management

DeliveryDistribution using SRC

SRC
Shipping

Packaging

Shipping
inspection

Price labeling

Picking

Storage

Acceptance

Pick upInventory management
DeliveryA branch of Sagawa Express is adjacent to the site
At the SRC, they are actively working on environmental conservation, hand in hand withcustomers, through strict separate collection of waste generated from business operations,promotion of recycling which is obvious, and offering the packaging materials made from
eco-material.

Modal Shift Promotion
Modal Shift refers to using alternative means of freightingfrom trucks to railway or marine transport. In addition tosaving energy and relieving traffic congestion, this also
reduces environmental burdens. For example, it is said thatwhen transporting a freight of 1t for 1km, the amount of CO2
emission from a truck is six times more than that of railways
and four times more than that of marine transport. The
railways and marine transport can save energy by transportinga large amount of freight at one time, hence improving
transport efficiency.
At Sagawa Express, we are increasingly adopting multifaceted
transportation combinations, including truck, railway, andmarine transport.

54

SG HOLDINGS GROUP Corporate Social Responsibility Report 2010

CO2 emission basic units of various transport means(g- CO2/t-km)

200

Source: Website of Ministry of Land, Infrastructure,
Transport and Tourism (FY 2008)

135

100

39

22

0
Commercial freight vehicles

Ships

RailwaysOutline of
SG Holdings Group

Courier transportion
through Super Rail Cargo

Efforts on Safety

Super Rail Cargo

Efforts on
Environmental
Conservation

In order to provide stable transportation service and reduce
CO 2 emissions during transport, in 2004 Sagawa Express
co-developed Super Rail Cargo with JR Freight Railway
Company.
Super Rail Cargo is the result of a trial experiment by the
Ministry of Land, Infrastructure, Transport and Tourism.
Sagawa Express charters entire trains for use in Tokyo – Osaka
courier transportation, a route which is central to the Japanese
economy. A 16-car train goes to and from Tokyo – Osaka every
night, with a round-trip cargo capacity equivalent to 56 10-ton
trucks.
Presently, Super Rail Cargo accounts for approximately 10%of our total transportation volume between Tokyo andOsaka. It has directly resulted in a large decrease in CO 2
emissions and other reductions in our environmental impact.

Relationship withSociety

Further spread of Modal Shift,
Earth-friendly transportation method
Other than Super Rail Cargo, we are making use of railways
and marine transport as much as possible and promoting the
reduction of truck transport. Currently implemented in morethan 50 sections, this allows us to reduce environmental load,
as well as lowering the risk of traffic accidents and sorting out
labor difficulties caused by long distance drives.
Generally, our effort on Modal Shift significantly paid off in
FY 2009.

Special container truck for Super Rail Cargo

Modal Shift achievements (fiscal 2009)
Super Rail Cargo
Usage area
Ajikawaguchi

Tokyo Terminal

Tokyo Terminal

Ajikawaguchi

Super Rail Cargo Vehicle Data
Max. speed

130km/hModel

M250 system

Total

Usage area

Tokyo Cargo Terminal Station (Tokyo) – Ajikawaguchi Station (Osaka)
Time required: 6 hours 12 minutes

8,119
16,281

Reduction oftruck transport(in number of 10t trucks)

Reduction of
CO2 emissions(t-CO2)

Super Rail Cargo

16,281

9,391

Railways (other than Super Rail Cargo)

29,29538,058Marine (ferry)

43,37516,09988,95163,548* Source: Calculation according to “Carbon Dioxide Emission Basic Unit of Freight Transport”(2008) by Ministry of Land, Infrastructure, Transport and Tourism.
* The amounts of reduction above are the calculated value of environmental load thatwould generated by trucks assuming that we had not used Modal Shift. Therefore, these
are not the actual amount of reduction in FY 2009.

Total number of containers

4,440

Fukuoka Terminal

Tokyo Terminal

Nagoya Terminal

Sapporo Terminal

3,339

Sumidagawa

Sapporo Terminal

17,018

Fukuoka Terminal

16,702

Kitakyushu Terminal

3,552

Effect of Modal Shift (FY 2009)

Total

8,162

Railways (other than Super Rail Cargo)

Number of coaches 16 coaches (4 motored + 12 trailed vehicles)
Route

Total number of containers

Tokyo Terminal

Other Terminals

15,116

Total

60,167

Usage area

Total number

Marine (ferry)

Tsuruga Port

Tomakomai-higashi Port

3,365

Aomori Port

Hakodate Port

7,454

Hachinohe Port

Tomakomai Port

7,184

Tomakomai Port

Hachinohe Port

7,855

Hakodate Port

Aomori Port

3,938

Other Terminals

9,495

Total

39,29155

Efforts on Environmental Conservation

Effective Utilization of Resources
We are making efforts to decrease our environmental burden
by effectively utilizing resources in our businesses.
This includes manufacturing products that use scrap material and the use of solar power.

Development and introduction of the ECO-body
In order to reduce environmental burdens through the
manufacturing of vehicles bodies, SG Motors develops anddistributes the ECO-body. The interior materials of the vehicle
body are made of recycled plastic materials using 100% wastematerial by-product from the production of instant noodles
containers. In comparison with conventional vehicle bodies,
the amount of wood materials used is greatly reduced. As of2009, the number of trucks using the ECO-body has increased
to 7,400 since its development in 2003, and the amount ofwood materials saved has reached 474 metric tons.
In consideration for temperature environments, non-CFC
materials are also used for heat insulation, providing a
reduction in CFC gas emissions and improving the work
conditions on cargo beds for drivers.
A variety of materials are used in vehicle bodies, and inlarge vehicles such as trucks, there is a great amount ofmaterial volumes used in the vehicle bodies. We expect
further developments in the decrease of the environmental
burdens related to trucks through reductions in fuel expenses
and gas emissions as well as environmentally friendly vehicle
body promotions.
Thanks to the positive appraisal of these efforts, inNovember 2009 we were awarded the Green Purchasing
Award (for excellence).

Overview of the ECO-bodyHeating, degassing,and re-pelletizing

Grinding
廃材を andpowderization
粉砕・粉末化 of
the waste material
Waste from the production
カップ麺容器のprocess of cups of
製造工程から出る
instant noodles
廃材

Material
recycleReproduction(polystyrene
board)

Recycled resin material(polystyrene board)

Non-CFC
heat insulator (phenol foam)Aluminum platesInterior finishing
panel

Hikyaku Cool Express BOX vehicle
with an ECO-body

Product

Scene from the Green Purchasing
Award ceremony

Support for tree-planting programs
As a corporation which calls for coexistence with nature,
SG Motors proactively supports the tree planting businesswith acacia trees, a rare plant that grows rapidly to adiameter of 50 cm after 20 years and has high-quality wood.
SG Motors uses these acacia trees as the material of thefloor inside the truck. With the motto of “Grow trees byourselves to use wooden materials”, we are actively utilizing
forestation with materials for vehicle bodies.

Scene in tree planting(in Sabah, Malaysia)

Two and eight months later after planting

56

SG HOLDINGS GROUP Corporate Social Responsibility Report 2010

Outline of
SG Holdings Group

Introduction of Solar Power Generation Systems

Efforts on Safety
Efforts on
Environmental
Conservation

Solar power generation system

Use of the LEUCO Card
With increasing information digitalization in the offices, alarger and larger amount of paper is used for printing with alaser printer, etc. Sagawa Express uses the repeatedly
rewritable and thus eco-friendly Leuco Card* to issue thestatement of work containing description of the work.
Compared to the usual printer system, we can save about
1,500 sheets of paper a day in operation of the special
automatic sorter for “Yu Mail” in Tokyo Big Bay.
In the future we will continue our efforts to reduce thequantity of waste as much as possible.

Relationship withSociety

Solar power generation, which is expected to come into wide use allover the world, is a very environment-friendly electric power generation
system and emits no CO2 or other hazardous substances at all in thegeneration process. Sagawa Express has been introducing such solar
power system since 2003 and, at the moment, such systems are in
operation at 23 sites across the country.
The cumulative power output of thesepower generation systems reaches
500kW. This capacity equals the annual
energy production of approx. 500,000kWh
which is the equivalent to the daily energy
consumption of approximately 51,000
households in Japan.
We will continue to promote utilizationof natural and recyclable energy throughfurther introduction of solar power
Solar power output display panel
generation systems.

* You can repeatedly write and delete characters on this card by applying
heat on the recording surface. The data are easier to read and the cardallows a higher number of rewritings compared to the magnetic card.

LEUCO Card (before inscription)

LEUCO Card (after inscription)

Environmentally friendly maintenance shop
SG Motors is proceeding with the repair of vehicle maintenance shops and introduction of the latest equipment under theconcepts of “safety”, “the environment”, and “efficiency”.

Sapporo OfficeTakamatsu Office(Completed 12/17/2008, site area: 42,211.00 m2, floor space: 1,636.47 m2)(Completed 1/14/2009, site area: 5,071.73 m2, floor space: 2,185.32 m2)

As a facility development with consideration for the environment,
the windows are designed to be large so that natural light can enter,allowing for the reduction of electric light usage time and air
conditioning operation time.
In addition, waste oil is used
as fuel for interior floor heatingin the shop and road heatingon the premises as a measureagainst fallen snow, providing
additional usage for resources.

Through the use of a waste processing system (utilizing
coagulation-sedimentation and microbes for drain waterfrom the shop), river pollution is prevented. In consideration
for this region withlittle precipitation,
rainwater is purified/processed and savedfor vehicle cleaning
and toilet water inthe shop.

Sapporo Office exteriorTakamatsu Office exterior

57

Efforts on Environmental Conservation

Efforts towards a Recycling-oriented Society
We implement various efforts in order to achieve a recycling-oriented society
such as the usage of Eco-mark certified products, appropriate disposal of used vehicles,
and contributions to home appliance recycling businesses.

Eco-uniform utilization
SG Holdings Group promotes “Green Procurement”, an activity to purchase earth-friendly goods proactively. Specifically,
we purchase Eco Mark certified clothing made from recycled polyester, which is produced in recycling of PET bottles, for ourgroup companies’ uniforms. The number of uniforms manufactured in 2009 is about 122,699 and this means that about
335,757 PET bottles were recycled.
Green purchase stationery products
After being collected by the Uniform Control Center, uniforms thatwould be difficult to re-use are ground and pelletized at an intermediate
repository site to be recycled as reductant for shaft furnace in steelworks.
Green
Total
conforming
We also purchase Eco Mark certified working gloves for sales drivers
2,656
products
and 865,013 pairs of these gloves were used in 2009. In addition, green
54.8% (1,456)
purchasing is also being actively promoted for stationery.
Recycling of used eco uniforms
Recycled as reductant
for shaft furnacein steelworks

Uniforms thatwould be difficult
to re -use

Used uniforms

Uniform Control Center

Ground and pelletized at anintermediate repository site

Final disposal location(ironworks)

Supporting the transport of collected electric appliances for recycling
Sagawa Express operates a transport business for designatedelectric appliances that are obliged to be collected by theElectric Appliance Recycling Law and, on request fromhome-appliance makers, sends them to specified recycling
facilities. Our group companies and subcontractors in Kinki,
Chubu, and Shikoku regions are certified as the designatedservice vendors and support the quick and efficient recyclingof resources.

Transported electric appliance for recycling (2009)Airconditioners

189,384
231,750

Refrigerators

902,106

TVs
Washing
machines

272,4520100,000

150,000

200,000

250,000

300,000(number of unit)

Efforts on recycling of decommissioned vehicles
The decommissioned vehicles from Sagawa Express are properly disposed of by SG Motors using methods with low
environmental impact.

Retrieval of CFC (Chlorofluorocarbon)

In order not to release CFCs into the atmosphere during the process of vehicle servicing or disposition, we properly
retrieve, dispose of, and prevent CFCs from entering the atmosphere. In FY 2009, 107.54kg of CFCs were retrieved.

Collection of used engine oil

Waste oil generated by regular changing of engine oil and transmission oil used to be disposed of as industrial waste.
Recently however, waste oil is recycled as a valuable resource. In FY 2009, 439,608 liters of waste oil was recycled.

Collection of used tires

Old tires that cannot be used anymore are recycled by the final disposal service vendors, in the forms of material, heatsource and other uses. In FY 2009, 92,000 used tires were collected.

58

SG HOLDINGS GROUP Corporate Social Responsibility Report 2010

Comparison of oil resources required at the time of manufacture(according to the Corrected Tire National Association)

100%

32%
New tires

Retreaded tires

In our fiscal 2008 CSR report, the total value for group
Sagawa Express Fiscal 2009 waste material types
companies including general waste was published. However,
Waste oil 14.5
beginning in fiscal 2009, the total waste materials values for
Rubble 11.8
Waste glass, concrete
Waste acid 0.3
Sagawa Express branch offices and locations are publishedand ceramics 129.5
Animal and plant residues,
based on the Waste Disposal and Public Cleansing Law.
wastepaper, waste cloth 13.9
Therefore, although the value reported in fiscal 2008 was Mixed wastes 144.6
Industrial waste
subject to special
approximately 46,642 metric tons, approximately 2,780 metriccontrol
tons were actually achieved using the previously mentioned(inflammable
Sludge 200.2
waste oil) 0.1
totals.
By conducting a campaign for completely separated
Metal 469.8
collection in a step-up method since fiscal 2008, the total
amount of waste in FY 2009 was approx. 3,795 tons (a 36.5%
increase compared to the previous year).
Waste plastics
Waste wood
As stated in our group environmental policies, we will
2,318.2
491.9
continue to promote 3R (Reduce, Reuse, Recycle) and practice(Unit: metric ton)
reduction and recycling of waste through completely
separated collection.

Relationship withSociety

Measures to reduce waste

Efforts on Safety68%
reduction

Efforts on
Environmental
Conservation

As part of Sagawa Express’s environmental protection
activities, used tires (retreaded tires) are being utilized for therear wheels of trucks for collection and delivery.
Used tires are worn out tires that have been sorted/processedso they can be reborn into tires that are just as good as newones but save approximately 68% of the amount of oil used.
Through their usage, efficient usage of resources leads to a
reduction in environmental burdens in addition to a large
reduction in costs. Furthermore, in operation tests of a 2-tontruck equipped with used tires, there was no loss of efficiency
in comparison with new standard tires.
Procurement began in September 2009 for 2-ton trucks
used in the Kanto region.

Outline of
SG Holdings Group

Utilization of used tire

Procurement of courier-use bicycles
Sagawa Express has procured this many courier-use
bicycles.
These bicycles are power-assisted, are three-wheeled, andhave an attached container for delivery of heavy packages
and usage on hills without much effort. There is a clear plasticroof attached above the operator’s seat so that delivery is
possible even during rain. Wide-angle mirrors are also
installed on the left and right. The aluminum container on
the back can hold up to 50kg of total packages and the tires
are two times the normal thickness for heavy loads.
Presently, 110 bicycles have been procured for use in cities
in regions such as Kanto and Kansai.

Courier-use bicycle

59Efforts on Environmental Conservation

SG Holdings Group’s Environmental Activities
In order to improve awareness for environmental protection issues among all group employees,
environmental activity guidelines are created every year.
The actions of all individuals help support the environmental activities of the SG Holdings Group.

Effort on environmental activities in fiscal 2009
For the purpose of promoting active efforts in environmental
conservation by our employees, beginning in fiscal 2003
Environmental Activities are established every year, implemented
with employee participation.
Implemented items of Environmental Activities (fiscal 2009)1

Verification of Idling Stops

2

Companywide simultaneous Light-Down campaign

3Clean-up campaign

4Copier paper reduction activities

5

Energy saving campaign

6

Environment picture diary contest

7

Eco Family Contest

8

Environmental Model Branch Contest

Environmental activities calendar (fiscal 2009)

Heart to Heart

Each and every person’s kindness form a powerful strength
The employees and families of employees of the SG Holdings Group promote
environmental protection activities while cooperating with regional communities.

Environment picture diary contest
For the purpose of promoting environmental protection activities at home, we conduct “Environment Picture Diary Contest”.
In the fiscal 2009 contest, 1,784 applications were received and have been increasing every year.

60

Grand Prix winning work

Award winning work

Award winning work

Chie Soeda

Hinano Hosaka

Hinata Hamanami

SG HOLDINGS GROUP Corporate Social Responsibility Report 2010

The “Environmental Model Branch Contest” is a system to publically recognize exemplary branches from among all of the
branches and offices of SG Holdings Group who promote environmental conservation and enhancement of awareness on
the environment as a model to other branches.

Outline of
SG Holdings Group

Environmental Model Branch Contest

Efforts on Safety

The most valuable branches and main efforts of fiscal 2009
Sagawa Express Bunkyo Office
Focusing on the transparency of results, managing the fuel expense trends from the base year to thepresent in a fuel expense chart
Exchanging the reduced CO2 amounts with a fixed amount of rainforest, implementing virtual tree
planting imagined on the green belts on the median on highways
Establishing an “Eco Library” for lending videos and picture books on environmental issues

Sagawa Express West Japan Hub Center
Efforts on
Environmental
Conservation

Thorough reduction of electricity in areas frequently used by employees
Thorough recycling of paper forms and collection activities for used batteries
Promotion of tree planting activities around administrative buildings, employee cafeterias, andentrance gates
Meetings on the environment held after safety/hygiene council meetings once per month;participation in regional clean-up activities

SG Motors Headquarters

Sagawa Global Logistics Nishitokyo Branch Kawasaki SRC

Utilization of a demand control system that sounds an alarm when the base standard power is This competition is judged based on the activity
content of each business location submitted in aexceeded; reduction of the electricity used for air conditioners
specified entry format.
Reduction of disposal costs and promotion of raw material recycling through thorough separation ofindustrial waste
Cleaning/mowing of areas around office building through cooperation with Sagawa Express Yokohama Tsurumi Office
Creation of an operation manual and holding of an explanation conference to promote understanding of the demand control system

Companywide simultaneous
Light-Down Campaign

Clean-up Campaign

We conduct "Company-wide simultaneous Light-Downs"
by turning off lighting in workplaces in the entire group.
In April, July, October, and January of fiscal 2009, lighting
was turned off for total of 27 days, resulting in an energy
reduction of approximately 980,000 kWh. This is theequivalent of a reduction of 553.6 metric tons in CO 2
emissions or an energy reduction equivalent to one day's
power 100,000 households.

Before “Light-Down”

After “Light-Down”

Relationship withSociety

Inspection twice per day to check if there is any unneeded lights being used in the headquarters building
Implementation of “thermal recycling activities” where used work clothes for maintenance employees,
etc. are re-used as a heat source
Implementation of clean-up activities to contribute to local communities
Explanations of environmental efforts and showings of instructional videos in order to raise employee
environmental awarenessWe conduct cleanup activities with the purpose of raisingawareness on the environmental conservation (waste
problem) of each employee as well as making a contribution
to the promotion of regional beautification.
In fiscal 2009, approximately 37,000 employees participatedin cleanups of the neighborhood of the business office incooperation with the local government, companies, andNPOs.

A scene from the activity ①

A scene from the activity ②

Winning the Environment Minister’s Award in the 4 th “ECO Statement in my house☆” contest
The Ministry of Environment has been widely inviting an application for the “ECO Statement in my house☆” contest. Our group has been also
actively participating in this project. In both the previous year and in fiscal 2009, children of group employees won the Grand Prix.

Children’s category Grand Prix winning work

"The Family Bonds Born from a Green Wall" by Haruka Kubo

Children’s category Award winning work

"Eco Life Learned from Edo" by Haruka Shidara

61

Efforts on Environmental Conservation

Efforts for Biodiversity
Similar to reducing our environmental burden,
we actively conduct activities for protecting biodiversity
with the theme of “harmony with nature”.

Activities for protecting forests
Within Kochi and Tokushima Prefectures as well as in
Hachioji of Tokyo, SG Holdings Group owns forests with thetotal area of about 750 hectares and is implementing various
activities for the protection of forests.
“Sagawa’s Forest” in Kochi Prefecture is properly cared forby Sagawa Forestry Co., Ltd. There, we conduct environment
training on forest preservation, providing the participants
with opportunities to have close interaction with nature.
As a “Takao 100-Year Forest” project in Hachioji, we arecarrying out reforestation activities for mountain woodlandareas near rural populations with NPOs and local citizens.
We will continue to work towards harmony with nature andinvestigation/proposals for new lifestyle models with forests.

“Takao 100-Year Forest”“Takao 100-Year Forest” is a hands-on event we are holding
to experience nature in various ways.
Major events held
July 2007

Management of mountain forests near rural residences

January 2008

Mt. Takao Land Workshop

March 2008

Love/Takao Forests

July 2008

Forest Relaxation Investigation

August 2008

Stage and Surrounding Workshop

June/August 2009 Nature Experience for Children
November 2009

Nature Experience for Sagawa Express
Prospective Employees in “Takao 100-Year Forest”

Observation of forest thinning

Backed by the Ministry of the Environment and the Ministry ofAgriculture, Forestry and Fisheries, the “Takao 100-Year Forest”
project won the judge’s special award at the “1st Ikimono-Nigiwai
Business Activities Contest”*.
*Public praise for corporations cooperating with local communities and municipalorganizations through effort activities in foresting and preservation/restoration ofterraced rice fields and mountain forests near rural residences.

Words from prospective Sagawa Express employees
who participated in nature experiences

I am glad to have experienced this because I have had an interest inforest thinning.
I learned about the difficulty of obtaining good balance with forests.
I am honored to be able
to join a business that
actively promotes thesekind of operations.
It was an excellent
opportunity to think
about the environment
after being away fromnature for so long.

Nature experience studies
The “Sagawa Express on-site study about nature” program started in FY 2007 to provide opportunities for children to
closely experience nature through experiencing rice production work, such as planting, removing weeds and harvesting.
279 participants, including the families of our employees and people from the local community, joined a rice planting
experience in a 2,970m2 paddy in Moriyama, Shiga Prefecture.
We will continue to conduct similar nature field trips so that children can learn of the symbiotic relationship with nature.
Words from parents/guardians

A scene from rice planting

62

A scene from rice harvesting

SG HOLDINGS GROUP Corporate Social Responsibility Report 2010

Our child now eats every last grain of their rice at meals.
Our child was very happy because they were not usually able toexperience this kind of thing.
After the nature experience, we started a home garden.
Through this experience, our children appear to have appreciatedthe hard work it takes to make rice and the gratitude for eating
rice.

Holding of environmental lectures

Efforts on
Environmental
Conservation

Sagawa Express organizes “environmental lectures” forchildren in various places on environmental subjects such as
global warming.
We introduce them to our efforts related to environmental
issues within distribution (courier service) systems in aneasy-to-understand manner.
We will continue our activities to raise children’s awarenesson the environment by explaining them Sagawa Express’s
efforts on environmental issues, as children will support
society in the future.

Efforts on Safety

We are conducting awareness activities so that a wide range of stakeholders
can understand the importance of protecting the environment,from employees and local children with hope for the future to core group company management.

Outline of
SG Holdings Group

Efforts on Environmental Enlightenment

Relationship withSociety

Environmental lectures

Participation in environmental publicity events
We actively participate and exhibit in environmental
publicity events organized by local governments, national
government offices and other organizations as part of ourenvironmental enlightening activities to the general public.
Major events in which Sagawa Express set up a booth (fiscal 2009)
Name of event

Date

Venue

Organizer

Eco Life Fair

June 6-7

Yoyogi Park, Tokyo

Ministry of theEnvironment, etc.

Eco Products

December 10-12

Tokyo Big Sight

Nikkei Inc., etc.

Eco Life Fair

Eco Products

Seminars for core management
Environmental seminars were held for the core management of various companies of the
SG Holdings Group for the purpose of understanding societal trends in environmental fields
and promoting environmental measures from the point of view of management. Seminars
for environmental strategists were also held.
Environmental seminars
for environmental strategists

Assistance to “ap bank fes”
The “ap bank fes” event was held at a Tsumagoi location in Kakegawa, Shizuoka Prefecture
as a place where people can see environmental issues up close and think positively while
enjoying music in a comfortable area. In addition to live music, talk shows, workshops,
organic foods, and environmentally friendly products can be enjoyed. Also, the event
location utilizes energy with little environmental burden with thorough trash sorting andrecycling. The eating/drinking establishments generally feature reusable utensils/dishes, andother environmental efforts are being implemented.
Sagawa Express approves and cooperates with such efforts. We have also been assistingwith the event’s transportation since 2006.

ap bank fes* The proceeds from “ap bank fes” are used as funds for ap bank finance capital, activity funds, and the support/promotionof other various projects for the environment and other subjects.

63Efforts on Environmental Conservation

Building a Framework to Promote Environmental Activities
Through environment accounting, environment management system utilization,and through PDCA (Plan, Do, Check, Action) cycle,
we are implementing appropriate and effective environmental activities.

Environmental accounting
To execute environmental management more efficiently, Sagawa Express has introduced environmental accounting.
Monitoring investments and expenses relating to environmental measures is helpful for setting indexes for future investments
and analysis of each project.
In fiscal 2009, our environmental investment was approximately 30 million yen, and the environmental expenses wereapproximately 6.8 billion yen.
Cost around environmental conservation
Items(unit: million yen)

2008

Main effort content

Environmental Environmental Environmental Environmental
investment
expenseinvestment
expense(1) Cost within business areas
Breakdown① Cost forpollution control② Cost for environmental
conservation2009

Air pollution, water contamination, noise
control (Construction of sound barriers, carwashing equipment installation, etc.)
Global warming, prevention of ozone depletion.
(Natural gas fueled vehicles, solar power generation
systems, introduction of energy saving devices, etc.)

Disposal of waste, water saving, recycling of③ Cost forrecycling of resources tires, etc.

484

1,060

31

995

2

41

0

34

482

178

30

193

0

842

1

768

Main factors for increase/decrease

Environmental expenses decreased as depreciation expenses
for existing equipment decreased.
Natural gas filling stations for corporate use were established at 16
locations in the previous year. As there were no newly establishedprojects this year, environmental investment decreased.
Environmental expenses decreased due to decreases inwaste disposal expenses and waste tire disposal expenserevisions.

(2) Cost in upper/
lower stream(3) Management cost

Introduction of an environment management system, promotionof green business management, environmental advertisements,
environmental education, disclosure of environmental information.

183

240

Expenses increased due to increase in the number of environment
related advertisements.

(4) R&D cost

Development of services relating to environmental
conservation.

79

67

Expenses decreased due to decrease in the material procurement
related to ‘Hikyaku PC Express’(5) Cost for social activities

Donation to domestic and overseas environmentalorganizations, enlightening activities.

166

64

Expenses decreased due to the JOC environmental official
partner contract ending.

5,424

Expenses decreased due to decrease in EMS implementation
expenses.

(6)

Compensation cost forenvironmental damage(7) Cost for safety measures

0

Measures against asbestos dust.
Vehicle inspection, employee education, enlightening
activities such as safety measures.

Total

5,516
484

Effects on environmental conservation
Environmental
performance indexes

2008

2009

(Result in 2009 - result in 2008)

89,88187,856-2,025

Heating oil (㎘)

292

253

-39

Heavy fuel oil (㎘)

76

90

14

Natural gas (km3) *including biogas

16,373

18,1101,737 *1

Utility gas (km3)

1,194

1,070

-124 *1

Propane gas (kg)383,557

371,847-11,710 *2

including premium
Gasoline (㎘) *gasoline
and biogasoline

17,241

19,0281,787

235.39 million 225.47 million-9.92 million

Water (clean) (km3)

913

876

-37

Water (sewage) (km3)

911

846

-65

Industrial water (clean) (km3)

30

26

-4 *3

Industrial water (sewage) (km3)

30

26

-4 *3

NOx (t)

1,115

1,105

-10 *4PM (t)

62

60

Number of recycled PET bottles-2 *4
335,757 *5* Effects on environmental conservation are calculated as simple mathematical differences from the result in fiscal 2008.
*1 The volume of natural gas and utility gas depend on the values shown on the invoices from suppliers, hence
before temperature and pressure corrections.
*2 The value was converted into weight by multiplying the volume (m3) shown on the invoices from suppliers by
2.07kg/m3.
*3 Statistics on industrial water usage started in 2006.
*4 The amount of NOx and PM emission from trucks only. (Based on the emission coefficients for each model
prescribed by Ministry of Land, Infrastructure, Transport and Tourism, the theoretical estimation was calculatedusing the travel distances of each vehicle.)*5 Based on the number of uniforms used in fiscal 2009, the number of PET bottles recycled was calculated using
the conversion factors (a half sleeve shirt = 2.42 PET bottles, a long sleeve shirt = 3.76 PET bottles), as those
uniforms were made from recycled PET bottles.

64

31

6,790

Economic effect accompanying environmental conservation
Effects on environmental
conservation

Diesel oil (㎘)Electric power (kWh)7,004

SG HOLDINGS GROUP Corporate Social Responsibility Report 2010

(unit: 10,000 yen)

Economic effectAmountCost reduction by reducing the usage of diesel oil

254,098

Cost reduction by reducing the usage of electric power

52,631

Cost reduction by reducing the usage of utility gas

2,305

Cost reduction by reducing the usage of water (clean)

1,254

Cost reduction by reducing the usage of water (sewage)

804

Cost reduction by reducing the usage of heating oil

643

Cost reduction by reducing the usage of propane gas

435

Cost reduction by reducing the usage of industrial water (clean/sewage)

18

Rules of statistics
Period: fiscal year 2008 (March 21, 2009- March 20, 2010)
Coverage: Sagawa Express Co., Ltd. (though some of the statistics
include SG Motors Co., Ltd)
Reference: “Environmental Accounting Guidelines 2005” published by
the Ministry of Environment
The acquisition of assets that cost 200,000 yen and above are booked as
investments.
The depletion of environmental facilities is calculated by a fixedinstallment for 4 years.
The labor cost is calculated by hours for environmental activities
multiplied by Sagawa Express' average hourly labor cost.

Outline of
SG Holdings Group

Environmental Management System

ISO 14001 Certificate(Sagawa Express Co., Ltd.)
Certificate of registration
no. NQE-07060074A

Efforts on
Environmental
Conservation

Major environmental targets and results in fiscal 2009

Efforts on Safety

In 2001, Sagawa Express was certified according to ISO
14001:2004. We established well-defined goals for building
frameworks and implementation and regularly conduct
performance measurements as we seek greater efficiency in
our environmental protection activities.
In addition, 9 branches of Sagawa Express attained Green
Business Management Certification in 2004 for their efforts
in building frameworks for environmental conservation andreducing energy consumption in the field.
Green Business Management
Certificate of Registration(Sagawa Express Bunkyo Office)Suppressing global warming and air pollution due to tail pipe emissions
The introduction of low emission

Target vehicles (108 compressed natural gas
Reducing the number of newly acquired
vehicles through setting up more Service

Target Centers (adding 32 Service Centers andBecause we have modified the introduction plan for the purpose of
more effective utilization of the existing vehicles, the number ofvehicles introduced did not reach the target (Target: 108 ⇒ Result: 97)

Unachieved

P51

ResultBy setting up 34 Service Centers (totaling 251 Service Centers acrossthe country), we reduced the number of newly acquired vehicles by 97.

Achieved

P53

ResultBusiness vehicle fuel consumption target: 5.77km/ℓ ⇒achieved: 5.85km/ℓ

Achieved

ResultRailway/marine transportation 10 mt conversion vehicle achievement target:
83,210 vehicles ⇒ achieved: 89,207 vehicles
Average payload number per vehicle target: 617 ⇒ achieved: 647
Large-sized company vehicle fuel expense target: 3.73km/ℓ ⇒ achieved: 3.84km/ℓ

Achieved

P54

ResultWe use biogas for 10 vehicles in the Higashi Kobe Office.
In fiscal 2010, trial utilization of BDF100% will begin in the Kansai region.

Achieved

P52

saving the acquisition of 64 vehicles).

Plans for environmental impact

Target reduction through theimplementation of Eco Safety Drive

Modal Shift usage/transportation

Target efficiency increases/promotion of Eco
Safety Drive

Research and evaluation of the next

Target generation fuels (evaluation of
biogasoline, BDF* and biogas)

Relationship withSocietyvehicles in 2009).

ResultActivities for establishing recycling-oriented societies by promoting resource saving, energy saving, and 3R
TargetProper disposal for used paper fromsecret documents

ResultWe provided dedicated collection boxes for general paper waste, newspaper
waste and used magazines to promote separated collection and recycling. At
the same time, we established another recycling flow with dissolution
treatment for secret documents with dedicated collection boxes.

Achieved

P59

ResultOut of 2,656 items listed in the merchandise catalog on the procurement
system, 1,456 items are listed now as environment-friendly goods.

Achieved

P58

ResultThrough a lineup filled with green purchase eligible products, theordering ratio for eligible products increased(target: 70% ⇒ achieved: 80%)

Achieved

P58

Promotion of Green Procurement
Putting a catalog

Target environment-friendly merchandiseson the procurement system
Increase of the ratio ofTarget Green-compliant

goods in the procurement order

Promotion of internal and external environmental enlightening activities and disclosure of environmental information
Creation of PR tools with various

Target environmental activity themes andenactment of publicity activities
Utilization of our website forTarget environmental activity information
distribution

ResultWe made educational efforts by publishing 17 news releases, 72 casesof media coverage, 30 issues of the company magazine (HIKYAKU), 16
issues of video magazines (SG-stage) and 6 issues of video magazines(Fureai), and 13 issues of web news in the year.

Achieved

ResultOur web site was updated 17 times with information widely distributed
to stakeholders.

Achieved* BDF (bio diesel fuel): A diesel engine fuel made from oils found in biological materials. It has been gaining attention as an alternative for petroleum fuels.

Compliance with environmental laws and ordinances
The SG Holdings Groups adheres to our spirit of upholding laws and ordinances, conforming appropriately toenvironmental laws, ordinances, and regulations such as the Law Concerning the Promotion of the Measures to Cope with
Global Warming, the Law Concerning Special Measures for Total Emission Reduction of Nitrogen Oxides and Particulate
Matter, and the Law Regarding the Rationalization of Energy Use.
Hereafter, we will continue promoting efforts for preventing global warming and atmospheric pollution.

65

Opinionson CSR

The voices of our members
nationwide who are
working in CSR activities
My safe driving set an example
for a driver next to me
Yutaka Kimura
Sales driver
Chiyoda Office
Sagawa Express

Sayaka Suzuki
Payment Service
Operations
Department
Sagawa Financial

KentaroSuetakeNo.1 Business
Division
Nagoya Office
Sagawa Moving
CenterNozomi Sone
Sales driver
Oigawa Office
Sagawa Express

66

When driving, I always consider safe driving above all else, such as
temporarily stopping at crosswalks when turning right or left at anintersection. Efforts such as these do more than gain the trust of local
people. For instance, when a Sagawa Express truck temporarily stops at a
crosswalk, other vehicles may also do the same thing. An unspoken
message on traffic safety is also sent to surrounding vehicles. I want tocontinue making contributions to society by setting safe driving examples.

Responding to inquiries with courtesy
and in an easy to understand manner
Presently, I am working in response operations for inquiries bytelephone. For me, I believe that CSR activities are satisfying
customers by responding sincerely and in an easy to understandmanner so that customers’ desires are fulfilled with our e-collectservice and so it can be used effectively. I also support polio
vaccinations for children in developing nations and am active in efforts
for eco-cap activities.

Turning my attention to unneeded items
during moving
When moving, customers take the opportunity to throw away unneeded
things. There are often items that are still usable, and I actively propose
recycling. The other day during a business relocation, after I arranged fora recycling company to purchase the desks and other items I was told
“You are the only ones who have been this helpful.” Our job is totransport things, however by noticing things that do not needtransportation, we can achieve a greater amount of customer satisfaction.

My gratitude for all the people
who have supported me
When I first started working, I was so busy I did not have time to thinkof anything else. Once, a superior told me “your attitude is showing on
your face, be careful.” After a while, customers started telling me “youhave a nice smile, I am starting to feel energetic myself” and “thanks
again, you can have this if you would like”, and I was treated to anenergy drink. I will continue doing my job with a feeling of gratitude
towards customers and coworkers, and I will never forget their smiles.

SG HOLDINGS GROUP Corporate Social Responsibility Report 2010

Outline of
SG Holdings Group

Efforts on
Environmental
Conservation
Relationship withSocietyCommunication with people
for becoming a trustworthy
business group

Effort on Safety

RelationshipwithSociety67

Relationship with Society

Bringing people
together fora prosperous society
Yasuo Kobayashi
REPORT

General Manager
CSR and General Affairs
Operating Strategy Department
SG Holdings GroupAs an enterprise that brings people together through logistics, we highly value our relationships with
communities. This conviction has been an enduring aspect of the psyche of the SG Holdings Group since
our foundation. In that connection, the group is constantly deepening our communications withcustomers, employees, and people in each community while improving our business, adding compelling
new services, and enhancing employee benefits. Moreover, we are determined to return prosperity to thecommunities that made us successful. This resolve manifests itself in contributions to medicine, culture,
the arts, sports, and much more. In China and other developing countries in Asia, we conduct
international exchange and offer support across a wide range of fields through appropriate
economic-cooperation agencies. To grow and prosper alongside the communities we serve, I believe the
SG Holdings Group must never cease asking, “What can we do to fulfill society’s expectations and the rolerequired of us?” We must always operate conscientiously, listening closely to the opinions of others.

FY 2009 Review of Operations

68

Future Targets

Working with stakeholders
for sustainable development

Strengthening CSR to build the foundationsof stakeholder-oriented management

Sagawa Express’s initiatives for stakeholders are as diverseas the company’s stakeholders themselves. In FY 2009, in abid to improve customer service, Sagawa Express launched
Hikyaku Special Correspondence Delivery service. To support
the education of the next generation, we continue to offer anationwide “bring your child to work” program. We are alsoproud to contribute to communities by sponsoring a wide
range of educational and sporting events. To create a
supportive work environment for employees, we introduced
shorts as part of our sales drivers’ summer uniform as ameasure against heat stroke during the summer. Finally, tosupport personnel training, we introduced career support
training for female employees.

Sagawa Express is a company that grows in partnership with thesociety it serves. The importance of our relationships with eachregion and community grows with each passing year. At the SG
Holdings Group, we work hard to provide the excellent quality
and high added value that serves customer needs, based on asolid foundation of stakeholder-focused management. We arecommitted to fulfilling our responsibilities as a good corporate
citizen by growing alongside regional communities as well as
supporting prosperous, healthy living in a safe and supportive
society. Finally, we are determined to provide employees withwork environments that bring out their best potential, and torespond flexibly to an ever-changing society with improvements
to our CSR framework.

SG HOLDINGS GROUP Corporate Social Responsibility Report 2010

Through developing high-quality products and high value-added services,
we seek to become a business that is chosen and trusted by customers.

Efforts on
Environmental
Conservation

Sagawa Express provides a 3R compliant transport service,“Hikyaku PC Express”.
For PC repairs, we use “Sagawa soft air package” which is ouroriginal reusable packaging material for PCs. This packaging
material is highly appreciated as an environmental-friendly
product for its reusability (hence generating no waste unlike
conventional packaging), as well as for the ability to protect
the goods from vibration or shock.

Efforts on Safety

3R compliant PC transport service, “Hikyaku PC Express”

Outline of
SG Holdings Group

Efforts on Services and Products for Our Customers“Hikyaku Green Mail” significantly reduces packaging materials“Hikyaku Green Mail” is an environmental-friendly delivery service which leads to considerable reduction of packaging
materials. This is a mailing service that uses a special tape that seals the opening side of a brochure or booklet without leaving
residue and is easily removable. All that is required for mailing is to attach an address label. With the growth of environmental
awareness, use of this delivery system has been rapidly increasing, with the number of deliveries reaching 572,548 in FY 2009,
which is 103.32% compared to the previous year.
Paper/plastic envelopes are no longer needed, and comparedwith delivery using commonly-used A4 size envelopes, thiscan reduce 13g of packaging materials per copy. In the case ofSpecialsealing tapesending 10,000 copies per month, for example, it leads to the
reduction of 1,560kg of such materials per year.

Relationship withSociety

Our original “Hikyaku PC Express” packaging materials

Reduction of the packaging material in delivery of one copy of size A4
Weight of the packaging materials 10,000 copies/
month for1 year
1 copy 500 copies 1,000 copies
Conventional mail

14g

7kg

14kg

1,680kg

Hikyaku Green Mail

1g

500g

1kg

120kg

Detachable
mailing label“Hikyaku Confidential Document Recycling Courier” also covers the dissolution process
As more and more companies are shifting their disposal method of confidential documents from shredding to dissolution inconsideration of protection of personal information and environmental aspects for resource protection, we have set up a newservice to undertake processes from pickup from the offices
to dissolution of confidential documents.
The flow of this service consists of: packing of the confidential
documents into special boxes, delivery to the dissolution site
in a unified delivery method securing confidentiality, and thedissolution processing. The dissolved documents are recycled
into bathroom tissue or the like. On completion of the dissolution
process, a certification can be issued on a Web service.
Special cardboard box

69

Relationship with Society

Approval received for the start of “Hikyaku Special Correspondence Delivery”
In March 2009, we obtained the approval necessary to enter the delivery service business of designated correspondences
according to the Act on Correspondence Delivery by Private Business Operators. This allows us to engage in the delivery businessof designated mails. With this, we will deploy new services in
Accepted document types
conjunction with a bill collection service using the “e-collect”
Letters, invoices, permits for licenses, etc., residence certificates,
system or using existing infrastructures such as the internet.
family register certificates, direct mail, etc.

Our payment-on-delivery service, “e-collect,” supports the infrastructure
for mail-order shopping safely and securely
The usage of the payment-on-delivery service “e-collect” issteadily spreading for its safe and secure transaction method
for mail shopping users.
In our “e-collect” system, the payment is made on delivery,
and its transaction is handled by our dedicated payment
terminal. Therefore, the users no longer feel the troublesomeof bank transfer prior to shipment, concerns about non-delivery
after the payment was made, or the leakage of credit-card
information on the internet. In FY 2009, the payment transactions
through “e-collect” were used for approx. 127.13 million parcels
and 1,370.9 billion yen in the total amount of payment. It has
now become a system absolutely necessary for support of the
mail-order infrastructure. As constant service improvements
continue, one of the possible payment methods is credit cards.
As of March 2010, 20 brands are accepted, and there is a wide
selection of other payment methods including debit cards andcash.
In addition, in order to provide greater ease of mind Sagawa
Express is developing the industry-first "Consignee Indentification
Delivery Service", which reliably confirms a specific receiving
party. We also developed "Hikyaku Security Express" and working
towards a full selection of security-related services.

Dedicated payment terminal

Valid credit cards“Hikyaku Courier with CO2 Emission Credit” development/commercialization
Sagawa Express has introduced “Hikyaku Courier with CO2
Emissions Credit” service in order to prevent global warming.
In this service, if a customer chooses “Hikyaku Courier with
CO2 Emissions Credit” as a delivery method when purchasing
goods in mail order shopping, the customer will bear a part ofthe price of CO2 emission credit, while the same amount isborn by Sagawa Express and the mail order company. This
service uses CO2 emission credit (CDM credit) to transfer CO2
emission credit for the equivalent CO 2 emissions that
accompany courier delivery transportation to an amount ingreenhouse gas reduction in Japan.
This system allows courier delivery users to participate in
the prevention of global warming in regards to Japan’semission reduction commitment of 6% as stipulated in the
Kyoto Protocol, and many people are using this system.
Presently, the amount of CO2 emission credit that has beentransferred to the Japanese government is approximately 115
metric tons of CO2.

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SG HOLDINGS GROUP Corporate Social Responsibility Report 2010

Mechanism of the service

The customer who buys Customer
an article from a home
shopping service venderassociated with Sagawa
Express and selects
Hikyaku Courier with
CO2 Emission Rights.

DriverDelivery

Customer￥￥

Sagawa Express￥￥￥￥

The customer bears theprice of emission
rights equivalent to thedelivery-related
CO2 emission per parcel.

￥￥
Bears thesame amountThe 10 thousands tonsof emission rights owned CO2 emission rights
by Sagawa Express
equal to the total
amount paid

Counted inminus 6%

Japanesegovernment

TransferEfforts on Safety

In response to demand from mail-order companies withexpanding businesses, Sagawa Express and Sagawa Moving
Center implement “Large-sized furniture/appliance installationand transportation” that emphasizes the transportation
network and potentials of the group.
This is a service for large-sized furniture and appliancesfeaturing delivery by two sales drivers, unpacking/installation
in a specific location, and collection of any waste from theunpacking such as cardboard boxes. Plus, an internet cargo
tracking system allows for confirmation of delivery status,and customers who purchase products through mail order
can utilize e-collect.

Relationship withSociety

Making efforts to attend customer calls “promptly, reliably, and politely”

Efforts on
Environmental
Conservation

Installation by a sales driver and staff member

Sagawa Express understands that one phone call from acustomer may define our corporate image. In the Customer
Service Section where calls are handled, we make every effort
to be appreciated in our service by the customers, as the“second sales section” next to the sales drivers. Each regional
office has its own instructors for daily education, and external
instructors are regularly invited for guidance. New recruits
receive practical education in a man-to-man system forabout one year.
Aiming at the improvement of telephone manners, theCustomer Service Section has conducted an internal customer
service contest since 2001. External instructors and consultants
make evaluations, and teams representing different blocks
and regions contend with each other for the purpose ofenhancement of the quality of the daily service.

Outline of
SG Holdings Group

Large-sized furniture/appliance installationand transportation that emphasizes the potentials of the group

Customer Service Section

Customer Service
ContestEfforts on improvement of quality
Certified according to ISO 9001

Quality Mark certification

Aiming to provide the services that satisfy our customers,
Sagawa Express is working on the management of service
quality to correctly answer the customer’s needs. As of May
2010, as many as 386 branches andoffices are certified according to ISO
9001: 2000, which is an international
standard of quality management
system, and we are making further
efforts to the continuous improvementof various processes relating totransport services.

For our own quality control method, Sagawa Express
conducts the certification for Quality Mark. This is a service
quality control method to correctly answer the customer's
needs. After the review of 16 criteria, including theperformance rates of the specified
time delivery and redelivery, 9branches were certified in FY
2009.

ISO 9001 certificate

Quality Mark71

Relationship with SocietyWith Our Employees
Employees are an invaluable resource for businesses.
In order to respect employees and guarantee equality,
we are making efforts to provide comfortable work environments for all our employees.

Realizing ideal working conditions
The number of employees in SG Holdings Group is about 44,000.
The number reaches about 63,000 if part-timers, temporary staff, andcontracted workers are included. Considering that our employees
are our indispensable assets, we must realize ideal working
conditions for all employees. We respect human rights, individuality,
personality, and privacy at the workplace while making efforts in 5S
activities, namely arrangement (Seiri), putting things straight(Seiton), purity (Seiketsu), cleaning (Seiso), and discipline (Shitsuke)
for the realization of safe and healthy working conditions.

Work-life balance andconsultation counters
As we seek to create comfortable work
environments in regards to employment andlifestyle, the SG Holdings Group is making
efforts towards work-life balance. One ofthese efforts involves introducing systems formaternity health care management, etc. sothat female employees can keep working. We
Miho Hyodo
will soon be implementing thorough training
Sub Chiefon general knowledge for female employees
Personnel and
Safety Control
and management. In addition, we have
Department
established the “SG Holdings Group General
Labor Section
Consultation Room” with counters for both
Sagawa Express
general issues and women’s issues. Consultation
is provided to employees and family members,
with subjects on company and work issues.
Through efforts on work-life balance, we strive to create work
environments where everyone can feel a sense of value in their jobs andmature with their life stage.

Substantial education and training courses
In order to give all our employees the experience of feelingthe reward of their jobs and growth through educational
training courses, Sagawa Express promotes the nationwide
standardized education system in various job fields.
We are working on the construction of a quantitative
measurement system for achievement and growth made by
the employees who finished the courses, looking to the better
development of human resources.

Training courses conducted in FY 2009
1
2
3
4
5
6
7
8
9
10
11
12
13
14

Name of course
Number of participants
3,99 4
Basic education course for new recruits
3, 295
Basic education course for safe driving
3,108
Graduation certifying course for SD
715
Basic practical training course for CS
459
Graduation certifying course for CS
113
CS Instructor certifying course
76 8
SD Instructor certifying course
202
Safe Driving Supervisor certifying course
195
Exclusive Safety Administrator training course
125
Female Career Support Training/Workplace Reform PJ
1,131
Leadership training course
1,195
Leadership training course
32Core Management Member Training
48
First-time manager training course
Total 15, 380

Job development for persons with disabilities
Sagawa Express is making efforts to employ the physically/mentally challenged. Our employment rate in FY 2009 was
1.85% and we have consistently exceeded the minimum rate required by law. The big difference from many othercompanies is that we do not employ them at a specific company; namely, they are assigned to work together with physicallyunimpaired employees. It is our understanding that only working with other employees and sharing the pains and joy ofachievement with them results in self-reliance of disabled persons in the true sense of the word.
Based on this policy, we will continue our efforts in job development to grow with disabled persons.

72

SG HOLDINGS GROUP Corporate Social Responsibility Report 2010

7,000

7,277

6,000
4,000
3,000
2,000

3,131

3,915

1,000
0

‘05

‘06

‘07

‘08

‘09
(FY year)

Breakdown of female staff by job field (Sagawa Express)
Managers 9

Workers at Service Centers 337

Distributive
workers
1,175
Drivers 1,686

Clerical workers
3,684

Sub chief
83

Relationship withSociety

The purpose of this training is for the study of knowledge
and skills that are linked to achievements and will stimulate
activity unique to Sagawa Express’s female management. In
particular, we recognize the expectations of the roles Sagawa
Express’s female businesspersons play in various businesssituations, and we value their captaincy and leadership
through the increase of motivation.

6,974

5,855

5,000

Efforts on Safety

Female career support /training

Trends in the number of female recruits in our company (Sagawa Express)(number)
8,000

Efforts on
Environmental
Conservation

Providing opportunities for all employees to fulfill theirpersonalities and abilities is one of our business strategies tosecure a strong workforce in the future. In an industry wherefemale employment is relatively low, Sagawa Express is making
efforts to hire female employees. The ratio of female employees
has been steadily increasing year by year. Just employing manyfemale workers is not our aim. We actively promote them toadministrative positions in view of cultivating more female
staff and developing their capabilities.
We have programs to support the child-raising in employees’
families, such as assistance for coming back to work fromchild-care leave. Many female staff have actually come back towork with us after pregnancy.

Outline of
SG Holdings Group

Supporting female employees in various job categories

Main curriculum
Female employee support in business organizations created by males
Stances during work
Communication and network creation that facilitates organization
Mindsets and skills necessary for a leader
Powers of expression expected of a leader
Drawing out motivation in members
Coaching
Basic management
Logical thinking

Scene from the first round of training

I can rest easy and do my job
thanks to various systems
Sagawa Express Ena Office Customer Service Section

Chitose Yamaguchi
During training, active female businesspersons are invited
as guests, and female employees learn how to collect,
recognize, and analyze information using proper thoughtprocesses for organization management. Based on this,judgment capability, etc. is studied to improve skills.

Thanks to maternity leave, I was able to enjoy a year of time withmy child. In addition, the birth of my child gave me motivation forwork, so I can now do each and every task with greater care.
From here on, I expect an increasing number of female employeesthat are able to effectively use welfare systems.

The first usage of shorts in the courier service business in JapanFor the first time in the courier industry in Japan, Sagawa
Express has introduced shorts as part of the summer uniforms.
This has expanded the “cool biz” scope to sales drivers in
addition to management and operations department staff,
and is also linked to work environment improvements such as
the prevention of heatstroke.

A sales driver wearing shorts

73Relationship with Society

Supporting quality of life of the employees
and their families through an exclusive website
SG Holdings Group runs an exclusive internet website “SGHoldings Group exclusive website for staff and families.” It
has various contents, such as consultation services for healthor troubles in working conditions, information on recreation
facilities, other resorts across Japan, various welfare
information, etc. with a view to helping our employees andtheir families enjoy physical and mental well-being.

Main website page

Promoting mental health care
The SG Holdings Group initiates measures for soundmental health in the workplace based on our Mental Health
Guidelines for preserving the health of our worker's minds.
SG Holdings Group has established “SG Holdings Group
Health Dial 24” for employees and their partners and families,
and an expert organization provides 24-hour consultation ona toll-free telephone line and website. They accept a wide
range of problems concerning family life, including health,
medical care, nursing care, raising children, and information
on medical institutions, as well as mental affairs concerning
distress about jobs or human relations. Consultation on an
anonymous basis is accepted as well.
If the consultee wishes, “consultation in interview” by anexpert is also available at 200 locations in 47 prefectures. We
support our employees, their partners and families.

SG Holdings Group Health Dial 24 pamphlet

Further improvement through recognition of excellent staff
Once every year the SG Holdings Group conducts a Group
Joint Awards Ceremony for acknowledging the outstandingachievements throughout the year of individual employees
and business locations.
Beginning in fiscal 2009, Environmental Protection Activity
categories were newly added to other categories such as
achievements, quality, and safety for the purpose ofincreasing public benefits and new industry developments
by increasing company awareness for these categories andpromoting activities.

Group Joint Awards Ceremony

74

SG HOLDINGS GROUP Corporate Social Responsibility Report 2010

Outline of
SG Holdings Group

Full Benefits
Organizing SG Holdings Group Sports Festival

Efforts on Safety

In order for our staff to work with vigor and enthusiasm, understanding and support by family members are highly valued.
We understand that their families are also an essential part of SG Holdings Group and thus organize various events to cultivate
mutual friendships between our employees together with their families, within each group company, branch, or region.
Among these, the SG Holdings Group Sports Festival (SSF), the largest such event for our group, is held in the beginning ofMay every year. The participating employees and their family members from all over the country get together at Moriyama
Park, one of our resort facilities located in Moriyama City, Shiga Prefecture, and enjoy the sense of togetherness through sports
and events.

Efforts on
Environmental
Conservation

We also support various sports club activities within the company for promoting sports and for the health of ouremployees. In cooperation with local communities, Sagawa Express supports artistic and sports activities and educational
programs for children.

Track and Field Athletics Team

Soccer team

Women’s softball team

The team has taken part in the All Japan
Corporate Ekiden held on January 1st every
year for fifteen consecutive years. Our
many achievements include Mr. Shimizu
placing in the Lake Biwa Marathon for two
consecutive years and Mr. Yamamotocoming in second place in the Hokkaido
Marathon.

The team belongs to the Japan Football
League (JFL) and won our second league
championship in fiscal 2009.
The team is also actively taking root in
the local communities in their home town
Shiga through activities such as organizing
a soccer academy for primary and junior-highschool children.

After the team joined Division 3 of theJapan Women’s Softball League in 2005,
they were further promoted twice moreand now compete in Division 1. In addition,
they competed in the 2009 Niigata National
Athletic Meet and came in third place as a
Kyoto Women's Adult representative
team.

Relationship withSocietyClub activities

Providing recreation facilities
We have several recreation facilities and contracted resort facilities, in which our employees can feel refreshed in mind andbody, both domestically and abroad and many employees use them to deepen bonds between their family members.
Major recreation facilities

Lake Sagawa

Atami Sagawa Soh

SG Holdings Group Moriyama Field Athletics Stadium

75

Relationship with SocietyWith Society
As we recognize our position as a “corporation within society” to fulfill
our responsibilities as a corporate citizen, we are constantly reviewing and implementing both“what we can do” and “what we should do”.

Hosting Stakeholders’ dialog
What does society expect from the Sagawa Express as a distribution business? What can we do in our business activity tocontribute to society? Do we satisfy such expectations sufficiently? In order to answer these questions, we have been
holding “SAGAWA Stakeholders dialog” every year since FY 2004.

Summary of the 6th SAGAWA Stakeholder’s Dialog
Aiming to become acorporation worthy of gratitude
February 5th (Fri.), 2010
Date:
Sagawa Express Tokyo Head Office
Location:
Facility field inspection: Tokyo Midtown, Service Center,
Mail Center
15
Participants:
Facility field inspection
Content
Keynote speech
General discussion
Theme:

Major topics of the general discussion
What we can do and what we should do in distribution
operations towards the creation of healthy economic
conditions
What is expected of Sagawa Express and how can we fulfill
these expectations

from a participant

Expectations for solution
possibilities of courier
service in societal problems
Previously, I used courier services
without giving it much thought. But
after participating in a Sagawa Express
dialog, I had an opportunity to re-think
my opinion on courier service.
Taken for granted in modern society,courier
service does not just support
Mika Takaoka
economic activities, it can also be
Professor
considered a societal infrastructure that
College of Business
contributes to links between people. In
Rikkyo University
the future as we confront societal
problems such as low birthrates, anaging society, and a declining population, expectations of a courier
service network are great. I will be interested in the developments
made in courier service as it continues to respond to the demands ofsociety.

As a distribution business, how can we link CSR activities
and intentions to business activities
Topics on partnerships and cooperation
As Sagawa Express, what can we do right now, what should
we do in the future, what is requested of us. etc.

Opinions raised in thegeneral discussion (extract)
The ideal standpoint of a distribution business

The preservation and continuation of a sound management
system for the distribution network which is our societal
infrastructure can now said to be our “ideal standpoint”.

New businesses that respond to societal problems

There is a necessity to review the provision of services thatcan precisely fulfill the needs of consumers and respond tosocietal problems in modern society.

Added value for services

New services become new business prototypes withpotential benefits as value-added services.
Scene from the discussion

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SG HOLDINGS GROUP Corporate Social Responsibility Report 2010

Contributions to society through sports events

Efforts on
Environmental
Conservation

Active sponsorship for sports events

As a part of our contributions to local communities andefforts with local school education, we are working towards
the sound development of children's minds. Our soccer
team takes part in the “Japan Football Association’s
Kokoro-no-project (Project for Minds) - Dream Teacher” forchildren’s education. In fiscal 2009, they participated in thelessons of 266 students in years 5 and 6 at Moriyama City
Hayano Elementary School. In addition, they visit kindergartensand nursery schools to hold a soccer lecture, and a soccer
school named “Soccer Academy“ is organized for children
from the 3rd grade to middle school students who applied
for the school.

Okinawa Marathon Tournament sponsored by Sagawa Express

Relationship withSociety

At Sagawa Express, we provide contributions to soccer,
baseball, and other sport events as well as to amateur Go
tournaments as part of our contributions to society as acorporate citizen.
Besides various sports events, Sagawa Express has been
participating in the “Pink Ribbon Campaign” initiated in
Kyoto in 2005, supporting the enlightenment activities andsponsoring symposiums.

“Dream Teacher” fosters healthy minds

Efforts on Safety

The SG Holdings Group has established a policy of “contributing to the development ofregional communities”. We conduct activities for contributing to society
based on a desire to return the favor to the customers that have supported us as well as society.

Outline of
SG Holdings Group

Social Action Programs

Soccer class

Cooperation with Kyoto citizens’ event
Our women’s softball team participates in various eventswith a desire to increase the popularity of softball and improveskills. A softball exchange tournament featuring 18 teams frommiddle schools in Kyoto was held on the grounds at Moriyama
Park. This tournament was held to contribute to the local region
and junior education through participation by Sagawa Expressin the 1st Japan women’s softball league. Approximately 500
players participated in the tournament.

Kyoto Middle School Exchange Tournament

Scene from a lesson in the Drream Teacher program

Softball class77

Relationship with Society

Activities by Four Foundations
In order to continue being a corporation that makes contributions to society, we conduct a wide range of activities such as“symbiosis with communities”, “international exchange”, and “academics/art” through foundation activities.

Heart to Heart

Overcoming the framework of distribution operations,our foundation activities aim for a better society
Sagawa Foreign Students’ Scholarship Foundation

Support for the first step of the dream of
16 students in the 24th period
We received applications from 84 privately funded foreign
students from Southeast Asia and were recommended bypresidents of national universities in Japan. Through impartial
judgment, 16 students (6 undergraduate, 10 graduate) wereselected to become scholarship students.
Accompanying this was the “Fiscal 2009 Sagawa Scholarship
Acceptance Certificate Award Ceremony/Cultural Exchange”
held on November 2nd. The 16 scholarship students attended
the award ceremony, and the scholarship student Le Thang
Scholarship student expressing gratitude
Tinh Buu (Fukushima University, symbiotic system scienceat the scholarship acceptance certificate award ceremonyand engineering, 3rd year) from Vietnam greeted the audience
with “I hope to study hard during my time in Japan so that Vietnam can make developments similar to Japan.” At the social
gathering after the ceremony, there was exchange between the guests, the 23 rd period upperclassmen students, foundation
members, and SG Holdings Group Members.

Sagawa International
Economic Cooperation Foundation

Fiscal 2009 saw the 20th Japan-China
cultural exchange meetingon vehicle maintenanceOur main business implements “Sagawa Japan-China relationsand vehicle maintenance skill training”.
In fiscal 2009, this training point reached its 20th milestone
year. Yuan Min Dao, chief secretary of the Japan-China friendship
Association (who are the source of the dispatched trainees) cameto Japan to give a congratulatory address at the opening lecture
on September 4th.
There were six trainees dispatched from the city of Xining,
Qinghai in the China Western Development region. Beginningon August 17th, they received basic training for approximately
two weeks in Shanghai, then beginning September 4th theyreceived intense vehicle maintenance skill training for twomonths in Japan.

78

SG HOLDINGS GROUP Corporate Social Responsibility Report 2010

Japanese vehicle maintenance skills
spreading across all of China
Thank you for your active support andcooperation over many years including
the donation of repaired used trucks to
China beginning in 1985 and the freetransportation of goods to orphanages inorder to improve China-Japan relations
and promote economic development. I
truly value your inviting and accepting
Chinese vehicle maintenance skill
Yuan min dao
trainees to Japan. The trainees learned
Chief Secretary
not only advanced vehicle maintenanceJapan-China friendshipskills, they will also carry on the passion
Association
for work held by the SG Holdings Group.
They are now working successfully across all of China.
On the occasion of this training, I hope for the continuation of
positive China-Japan relations.

Outline of
SG Holdings GroupScene from an opening lecture in Thailand

Efforts on Safety

Training in Japan involves the study of repairing engines,
electric devices, power transfer devices, control devices (brakes),etc., as well as the experience of international exchange throughtraining and third party observation programs.
We also accepted three vehicle maintenance skill trainees
over a period of 10 days. This was achieved by a request fromthe Lao People’s Democratic Republic, a recipient of donatedused trucks, and the support of Tri Petch Isuzu Sales.

Sagawa Cancer Research Promotion Foundation

Awarding of a grant by the chief director,
Eiichi Kuriwada

Relationship withSociety

A ceremony was held for the fiscal 2009 selection of the recipient research for the“Sagawa Cancer Research Grant” and the recipients of the 7th “Sagawa Special ResearchAward/Sagawa Nursing Care Special Study Award”. 195 applications from researchorganizations across Japan were received for the research grants. After an impartial
judgment by the selection committee, consultation on the results was performed by
the board of directors. A total of 14 research grants were awarded. Each research grant
was for 1 million yen (for a total of 14 million yen).
In addition, a similar process was used to select two people to receive the “Sagawa
Special Research Award” and one person/one organization to receive the “Sagawa
Nursing Care Special Study Award” and a bronze statue.

Efforts on
Environmental
Conservation

What we can do to reduce the number of people suffering from cancer

Sagawa Cancer Research Grant
Kyoto University Hospital Radiation Department Associate professor Masashi Ueda and 13 others
Sagawa Special Research Award
Jichi Medical University Medical Department Genome Function Research Department Professor/
University of Tokyo Graduate School of Medicine Genome Medicine Course Professor Hiroyuki Mano
Nagoya City University Graduate School of Medical Sciences Graduate Course Tumor/
Immunization Internal Medicine Professor/Nagoya City Hospital Authority Chief Ryuzo Ueda
Sagawa Nursing Care Special Study Award
Group Pallium Nursing Chief Hiromi Kawagoe
University Hospital, Kyoto Prefectural University of Medicine Pain Relief Medical Care Department Representative: Sawako Fujimoto

Sagawa Art Museum Public Interest Foundation

The joy of experiencing culture and art amongst nature
In fiscal 2009, in addition to permanent exhibits
for works by Ikuo Hirayama, Churyo Sato, andKichizaemon Raku, project exhibits and events
related to the community were held. 110,234
people visited the museum during these exhibits.
In October, the total museum attendance reached
one million people since its opening.

Scene from a workshop

Project exhibitions
Tomohiro Sekiguchi
Railroad picture diary original drawing exhibition: Travel, People, and Heart60 years of walking with children’s books
Daihachi Ota and his picture book friends exhibit
Kichizaemon X
Indonesian primitive art Takashi Inaba selection
Other events
40th Moriyama City Art Exhibition Contest
Sagawa Art Museum Children’s Picture Contest Exhibition
Twilight Concert, four total performances
Welfare day (May 11th, August 17th)
Art Museum Summer Activities (June 20th to August 30th)Workshop with Picture Book Authors (August 4th-9th)
Association Tour
Angkor Historic Ruins Tour (September 29th to October 6th)
Christmas with “Sagawan” Characters (December 23rd)

79

Opinionson CSR

The voices of our members
nationwide who are
working in CSR activities

Hiroki MoriTokyo SRC
Higashi Tokyo
BranchSagawa Global
Logistics

Tamami Ito
Sales Department
Nouvelle
Golf Club

TomoakiOkabe
Customer
Service Section
Wakkanai Office
Sagawa Express

Eri Mori
CRE Strategy
Department
SG Realty

Yuya Shimizu
Sales driver
Osaka Office
Sagawa Express

80

Feeling the importance of distribution when
I see a product I shipped myself in public
At my workplace, we manage general distribution from receiving toshipping of apparel products. When I casually go to a shopping malland see products I have shipped lined up, I can feel the meaning andimportance of logistics. My job is by no means extravagant, but I
proudly value being a part of the distribution that provides luxury topeople’s lives as I make contributions to society.

Placing value on the feeling of hospitality
Nouvelle Golf Club values hospitality. We determine what customers
are looking for, and we work hard so that they truly feel a desire tocome again. I do more than just try to provide satisfaction tocustomers, I receive an eagerness to keep doing well when they say“thank you”. By interacting with such customers, I hope to continue
maturing day by day.

Increasing love for my home town
through waste collection
Once a year, the regional community collects waste as part of the community
services. Seeing small children trying their best to carry collected items naturally
makes me feel a desire to keep up and compete. Even though Wakkanai is asmall town, through partnerships with people in the local communities I was able
to feel the pride of working in my home town. Events such as these help makehome towns into better places, and I have come to like Wakkanai even more.

The SG Holdings Group creates
opportunities for active female employees
The SG Holdings group has work environments that allow equal chances forfemale employees. I have worked in a variety of fields, and have numerous
experiences. They offer active support for acquiring qualifications and provide
optimum workplaces for people who seek to improve their skills. Presently, I am
working in realty management operations to provide appropriate answers forfacility users that have worries, feel inconvenienced, or have other problems.

Creating a relationship of mutual trust withproposals that fit a customer’s needs
When I interact with customers, I always try to greet them with a smile anduse an energetic tone of voice. I only meet with customers for brief periods
every day, but a relationship of mutual trust with customers is probably built
up little by little through this kind of communication. In the future I willpropose the very best transportation plans from the customers’ points of view
and aim to become a sales driver that is truly counted upon by customers.

SG HOLDINGS GROUP Corporate Social Responsibility Report 2010

The Third-party Warranty Report (Climate Savers Program)81

Opinions from A Third Party
Attempting to deepen stakeholder management
The Earth is finite. The more we use resources the more they will decrease, andeventually they will be depleted. If toxic substances are released into nature, the global
environment will gradually be destroyed. Businesses are currently living in an era where
the Earth is at its limit. It depends on whether or not the world needs a business for it tolive in such an era. My company is ceaseless in our self-questioning to know whether or
not we are needed by society, and demands are being made for us to constantly
question how we can contribute to the sustainability of the Earth. Businesses are notpublic property, however in an era where environmental and resource restrictions are
increasing, it is inevitable that businesses will take on more and more qualities like thatof public property.
Businesses also create and publish CSR reports as part of the demands of this era. The
SG Holdings Group is clearly a leading business in these fields as they are alreadymanaging stakeholders using management standards and putting efforts into CSR. In
particular, they are actively working on a number of subjects and obtaining results, suchas the “Climate Savers Program” as a measure against global warming, which calls forurgent solutions. In this year’s report, they are shown to be comprehensively
implementing such measures and receiving praise.
However, creating a report worthy of the SG Holdings Group requires a few moreplans and improvements.
The first is a method of writing placed in the middle of CSR management. It must be
clearly shown that pursuing CSR activities as a business contributes to the expansion of
corporate earnings. For example, the transportation efficiency, etc. of a large-scaleintensive facility can have such a position. It will also be possible to create an
appearance that gives a stronger impression of win-win situations for both the businessand stakeholders. CSR usually has an image of tree planting and other environmental
activities as well as philanthropy activities, etc. for returning some profit back to society.
However the true nature of CSR activities is creating corporate earnings by being placedin the middle of CSR management.
The second issue is that I had hoped to see mid-term goals for corporate measuresagainst global warming. The Democratic Party of Japan has stated goals of reducing
greenhouse gases in 2020 by 25% of those of 1990, and 80% by 2050. In the current
fiscal year, the SG Holdings Group started a new Second Stage Plan, however it would
be appropriate to detail the relationship of this new plan and measures against global
warming. Management planning and measures against global warming are notseparate issues, they should be seen as different sides of the same coin. I believe thatstakeholders will also take concern at this issue when they see this report. If the SG
Holdings Group has not yet completed such work, they should explain their situationand make a commitment to include such information in next year’s report.
The third issue is that the jobs of the SG Holdings Group are geared towards male
employees, therefore the ratio of female employees is comparatively low. There wasalso a limit in the efforts towards CSR activities. However, they stated a goal of raising
the female employee ratio to 16% and are increasing utilization of female employees.
Female management has also been introduced. An organizational balance between
male and female employees is important for sound business activities. If female
employees with CSR activity jobs with leadership responsibility and female employeesthat fill CSR activitiy roles increase, CSR activities will expand and grow deeper, and thereport will have greater equality. Active assignment of female employees is a vital partof CSR activities.

82

SG HOLDINGS GROUP Corporate Social Responsibility Report 2010

Tadahiro
Mitsuhashi
Affiliate professor
Chiba University ofCommerce Graduate School

Opinions from A Third Party

Table of Contents
1
2

Corporate Social Responsibility Report 2010

Opening Message for the SG Holdings Group Corporate Social Responsibility Report 2010
Message from the President

Attempting to deepen
Fourstakeholder
Perspectives onmanagement
the SG Holdings Group5

The Earthfinite.
The1more
we useView
resources the more they will decrease, and6 isSpecial
FeatureA Consumer’s
eventually
will bedepleted.
If toxicView
substances are released into nature, the global
1 0theySpecial
Feature2 A Customer’s
environment
gradually
destroyed.
Businesses are currently living in an era where
1 2 will
SpecialFeature 3 be
An Employee’s
View
the Earth1 islimit.
It depends
on whether
or not the world needs a business for it to
4 at its
SpecialFeature4 An Expert’s
View
live in such an era. My company is ceaseless in our self-questioning to know whether or
18
Philosophy and Guidelines of SG Holdings Groupnot we are needed by society, and demands are being made for us to constantly
20
CSR Concept and System of SG Holdings Groupquestion how we can contribute to the sustainability of the Earth. Businesses are not
22
Corporate Profile of SG Holdings Co., Ltd.
public property, however in an era where environmental and resource restrictions are
Holdings
Group
23 it is Outline
increasing,inevitable of
thatSG
businesses
will takeon more and more qualities like thatof public property.
24
REPORT/FY 2009 Business Results
Tadahiro
Businesses also create and publish CSR reports as part of the demands of this era. The
25
Business Operations Data of SG Holdings Group
Mitsuhashi
SG Holdings Group is clearly a leading business in these fields as they are already26
Management Vision and Mid-term Management Plan of SG Holdings GroupAffiliate professor
managing stakeholders using management standards and putting efforts into CSR. In
28
Business Operations of SG Holdings Group
Chiba University ofparticular, they are actively working on a number of subjects and obtaining results, such
Commerce Graduate School
30
Business Structure and Domestic Business Summaries of SG Holdings Groupas the “Climate
Savers Program”
as aBases
measureagainstglobalwarming, which calls for
32
Overseas
Operatingof SG
Holdings
Groupurgent 3solutions.
In this year’s
report, they are shown to be comprehensively
3Foundation
Activities
implementing such measures and receiving praise.
34
Opinions on CSR
However, creating a report worthy of the SG Holdings Group requires a few moreplans andEfforts on Safety
35improvements.
The first is a method of writing placed in the middle of CSR management. It must be
3 6 that
REPORT/FY 2009
BusinessasResults/
FutureTargetsto the expansion ofclearly shown
pursuing
CSR activities
a business
contributes
37
Scheme to Enhanced Safety
corporate earnings. For example, the transportation efficiency, etc. of a large-scale
41
Efforts on Eco Safety Drive
intensive facility can have such a position. It will also be possible to create an
42
Efforts on Safety by Vehicle Servicing and Safety Devices
appearance that gives a stronger impression of win-win situations for both the business
44
Looking to a Safer Society
and stakeholders. CSR usually has an image of tree planting and other environmental
Opinions
on CSR
activities46
as wellas philanthropy
activities, etc. for returning some profit back to society.
However the true nature of CSR activities is creating corporate earnings by being placed
47 Efforts on Environmental Conservationin the middle of CSR management.
48
REPORT/
FYI2009
Business
Results/
FutureTargets
The second
issue is that
had hoped
to seemid-term
goals
for corporate measures
4
9
ConceptofEnvironmental
Activities/Efforts
againstGlobalWarmingagainst global warming. The Democratic Party of Japan has stated goalsof reducing
5 3 gases
Environmental
Measures
forof
Transportation
greenhousein 2020 by 25%of those
1990, and 80%Optimization
by 2050. In the current
5 6 the Effective
Utilizationof Resources
fiscal year,
SG HoldingsGroup started
a new Second Stage Plan, however it would
58
Efforts
towards
a Recycling-oriented
Society
be appropriate
to detailthe relationshipof this new planand measures against global
60SG
Holdings
Group’s
Environmental
Activities
warming. Management planning and measures against global warming are not2
Effortsfor Biodiversity
separate6 issues,
they should
be seen as different sides of the same coin. I believe that6
3
Efforts
Environmental
Enlightenment
stakeholders will alsoon
takeconcern at thisissue when they see this report. If the SG
Building
Framework
PromoteActivities
Holdings6 4Group
has notayetcompletedtosuch
work, Environmental
they should explain
their situationand makeinclude such information in next year’s report.
6 6a commitment
Opinions onto
CSR
The third issue is that the jobs of the SG Holdings Group are geared towards male
67 Relationship with Society
employees, therefore the ratio of female employees is comparatively low. There wasalso a limit
effortsFY
towards
CSR activities.
However,Future
they stateda goal of raising
REPORT/2009 Review
of Operations/Targets
6 8 in thethe female
to 16% and areincreasing
utilizationof female employees.
Efforts ratio
on Services
Products
for Our
Customers
6 9 employee
Female 7management
has
also been introduced. An organizational balance between
With Our
Employees
2
male and
Withemployees
Society is important for sound business activities. If female
7 6femaleSocialAction jobs
Programs
7 7 with
employees
CSR activity
with leadership responsibility and female employeesthat fill CSR
activitiyroles increase, CSR activities will expand and grow deeper, and the80
Feelings on CSR
report will
greaterequality.
Activeassignmentof female
employees is a vital part
81 have
The
Third-party
Warranty
Report(Climate Savers
Program)82
Opinions from A Third Partyof CSR activities.
83

82

Title of the CSR Report Brochure

Bringing people, society
andthe future together
Cover Design

Based on infrastructure operations in distribution, a service indispensable to modern society, we want to link people
with other people and society to create a prosperous future. This strong desire of the SG Holdings Group inspired theadvertising slogan “Supporting people, commerce, and the future”.

A Sagawa Express natural gas fueled truck is driving in the space balancing a city and nature. This represents theenvironmentally-friendly
activities of the SG Holdings Group. A blue sky that stretches as far as the eye can see isWekeep peoplebusinessin touch,

above the natural gas fueled truck, and a cloud in the shape of people holding hands floats above. This is our
stakeholders
leadingthe
prosperous
lives throughourfuture.
operations. Through graphic designs such as this, we express the SG
andconnect
present
to theHoldings Group’s position of supporting a prosperous future for the global environment through our daily businessactivities.

Every day, we will make deliveries

Editorial Policies and Report Scopeto customers, to employees,

Editorial policies

We strive topartners,
use easy to understandexpressions with clear and concise explanations.
businessto communities,
The Ministry of the Environment’s “Environmental Reporting Guidelines 2007” and “Sustainability reporting guidelines

andindividuals
everywherein the world.
2006”(GRI) were referredto.

The data
results
for fiscal 2009
being
totaled(the activityGroup.
content includes some content from fiscal 2010).
This
is ourmission
atare
the
SG
Holdings
The applicable periods are specified for values that could not be reported as yearly result values due to the status of
the efforts.

With the close cooperation of our stakeholders,Applicable report period

wesupportpeople,society, and the future.
Marchwill
21, 2009
to March 20,
2010

Applicable report organizations
The activities of the SG Holdings Group businesses and foundations are shown with a focus on the activity results of
Sagawa Express.

Other report provision methods
This report can also be downloaded from the website of the SG Holdings Group. (http://www.sg-hldgs.co.jp/)

Editor’s postscript
Through our businesses, the SG Holdings Group seeks to complete and develop industrial/societal infrastructures as we fulfill our
CSR duties through sincere efforts towards operations with high public praise such as those shown.
The opinions on the SG Holdings Group and the assistance received from many of our stakeholders were utilized in the creationof our 2010 CSR report as much as possible. As editor, I was able to once again see the positive aspects of the SG Holdings Groupand find areas where we should improve. I am grateful for my role.
With this CSR report, I hope that many people are able to understand our activities. In addition, I hope that our stakeholders will
give us their valued thoughts and opinions so that we can continue to implement business activities that strengthen the bonds
between people and society.

SG Holdings Co., Ltd
CSR manager

Title of the CSR report brochure/Cover Design/Editorial Policies and Report Scope/Editor’s Postscript

SG HOLDINGS GROUP Corporate Social Responsibility Report 2010

1 83

er

th

ge
Corporate Social Responsibility Report 2010

For inquiries about this report, please contact:

68 Tsunoda-cho, Kamitoba, Minami-ku, Kyoto,
601-8104 JAPANCSR Environment Working Group

Tel: +81-75-671-8600
http://www.sg-hldgs.co.jp/
Title:CSR Report 2010
Date of issue: September 2010
Next issue:
September 2011

This report can be found at our website shown above.

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Bringing

p le,

ie
soc

ty

d
an

th

u
ef

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ur

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CSR Repor t

Corporate Social Responsibility Report 2010