CSR Report2018Editing Policy

SG Holdings Group Corporate Philosophy

In this report, we have included content that has majorinterest or significance for our stakeholders and which isextremely important for the SG Holdings Group, based on
our newly identified material CSR issues.

"Trust, Create, Challenge"

Reference Guidelines

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

Ministry of the Environment, “Environmental Reporting
Guidelines 2012”
ISO26000 (Guidance on Social Responsibility)

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

Report Period
March 21, 2017 - March 31, 2018
*When reporting periods differ, clarification will be provided
as needed.

Organizations Subject to Reporting
SG Holdings Group Companies and Foundations*Group-wide business initiatives are referred to as SG HoldingsGroup initiatives or our Group’s initiatives.
*Activities related exclusively to specific companies and organizations are clarified as needed.

CONTENTS
02

Message from Chairperson and President

03

Business Overview and Major Subsidiaries

05

CSR Management

09

CSR Activities Report

14

Achieving a Safe and Secure Transportation Society

15

Promoting Environmentally Friendly Business Activities

35

Building an Organization of Diversity and Inclusion

67

Creating New Value Through Comprehensive
Logistics Solutions

95

Contributing to Communities

111

Promoting Sustainable Procurement

125

Building a Responsible Management Foundation

129

Third-Party Opinion

156

The SG Holdings Group’s reports on CSR activities
are published separately as the CSR Report (thisdocument) and the CSR Communication Book.
The CSR Report contains all information on theGroup’s CSR activities, including numerical data as a
medium aimed at specialist researchers of theenvironment and CSR. The CSR Communication
Book contains excerpts of initiatives that the Groupparticularly wishes to convey to various stakeholders,
including consumers. In addition, the Grouppublishes an Annual Report for the purpose of
disclosure to investors, financial institutions, andothers.
Content with high importance for stakeholders

About the SG Holdings Group

CSR
Communication Book
Medium aimed at various
stakeholders including
consumers

CSR Report (this document)
Medium aimed at specialist researchersof the environment and CSR

Content with high importance for SG Holdings Group1

Message from Chairperson
and President

Corporate Information

Business Overview

CSR Management

CSR Report

About the SG Holdings GroupSG Holdings Co., Ltd. (the “Company”) is the pure

● Company Name

: SG Holdings Co., Ltd.

holding company of the SG Holdings Group (the● Established: March 2006

“Group”), which implements management● Head Office location : 68 Kamitobatsunoda-cho, Minami-ku, Kyoto-shi, Kyoto, Japan

strategies and administration functions for the● Capital: 11,882,905,000 JPY

entire Group. Each Group company performs the● Employees: 90,708 (consolidated, for fiscal year ended March 31, 2018)

function of business execution. On December 13,● Business Details: Group management strategies, administration, and related

2017, the Company was listed on the Firstbusiness

Section of the Tokyo Stock Exchange.
Consolidated Performance
Operating revenue by segment

Delivery

Other

Real estate

Logistics

Operating revenue(Billion yen)
1,200

835.0

1,000

43.3

800

12.3

58.3
54.8

4.5

930.3
49.4

54.0

857.4
45.5

943.3
60.0

59.3
80.9

47.5

62.7

17.5

60

1,045.0
69.7
10.6

64.1

114.0

(Billion yen)

50

140.4

110.4

40

600

30

400

20

721.5

712.5

709.4

738.1

824.1

200

10

0

0

FY 2014/3

FY 2015/3

FY 2016/3

FY 2017/3

FY 2018/3*The end of the fiscal year has been changed from March 20 to March 31 from FY 2018/3. As a result of this change, operating revenue increased by
48.9 billion yen and operating income increased by 3.0 billion yen.

Delivery Business
Operatingrevenue(Billion yen)

800

OperatingincomeOperatingrevenue(Billion yen)

824.1

1,000

Logistics Business

51.3
721.5 738.1
38.4 39.6

60

Operatingincome(Billion yen)

120

36

90

Operatingrevenue(Billion yen)

150

48

Real Estate Business

140.4
114.0 110.4

1.6

Operatingincome(Billion yen)
50

2.5

2.0

40

1.5

30

Other Businesses
Operatingrevenue(Billion yen)
15

47.5

(Billion yen)

1.0
400

24

60

0.7

20

1.0

200

12

30

0.5

10

0

0

0

0

0

FY
FY
FY
2016/3 2017/3 2018/3

FY
FY
FY
2016/3 2017/3 2018/3

5.7

6

4.9
12

10.2

75

17.5
5.1

9

5.5

10.6

60.0

64.1

69.7

5
4

45

3

30

2

15

1

0

0

6

3

0

FY
FY
FY
2016/3 2017/3 2018/3

2(Billion yen)

5.7

90

60
600

OperatingincomeFY
FY
FY
2016/3 2017/3 2018/3

Corporate Information

Message from Chairperson
and President

Business Overview

CSR Management

CSR Report

Message from Chairperson and President

Become Asia's Leading Comprehensive Logistics Group

Continuing to aim for sustained
growth by resolving social
issues through businessas a comprehensive logistics group
SG Holdings Co., Ltd.
President and COO
Tadashi Machida

SG Holdings Co., Ltd.
Chairperson and CEO
Eiichi Kuriwada■To greater heights in stakeholder management
The SG Holdings Group has been engaged in

Stock Exchange in December 2017, enabling us to

management that meets the expectations of

capture the interest of more stakeholders. As a listed

stakeholders surrounding the business, including

company that is a public entity of society, we will strive tocustomers, employees, local communities, shareholders,

implement sincere and highly transparent management

and business partners.

by promoting stakeholder management at an even

The Group was listed on the First Section of the Tokyo

greater level than in the past.

3

Corporate Information

Message from Chairperson
and President

Business Overview

CSR Management

CSR Report■Identifying new material CSR issues
We have considered and identified new material CSR
issues as an indicator for implementing stakeholder
management. We utilized Sustainable Development
Goals (“SDGs”) to identify material issues, and also
considered them from the perspective of social issues.
While keeping our eyes set on our long-term vision to“Become Asia’s leading comprehensive logistics group,”
we will endeavor to resolve material issues throughbusiness and build the foundations for sustained growth.

Material CSR Issues
1. Achieving a Safe and Secure Transportation
Society
2. Promoting Environmentally Friendly Business
Activities
3. Building an Organization of Diversity andInclusion
4. Creating New Value through Comprehensive
Logistics Solutions
5. Contributing to Communities
6. Promoting Sustainable Procurement
7. Building a Responsible Management Foundation

The logistics business also requires the strength of many
employees including drivers. Improving labor
management and implementing diverse work styles toensure employees continue to work with satisfaction are
also especially important issues.
In addition, we have identified the creation of new value
through comprehensive logistics solutions, contributing
to communities, sustainable procurement, and building a

Of the seven material issues, the most important are theresponsible management foundation as material issues

three issues essential for sustained development of therequired for sustainable management. Furthermore, we

logistics business: safety, the environment, and humanhave established a CSR Statement incorporating

resources. We operate a logistics business withelements of the material issues, and will continue toapproximately 26,000 vehicles using public roads. Due

actively communicate to stakeholders in the future.

to the large number of vehicles we use, our impact onsociety in relation to traffic safety and preservation of the■Toward sustainable growthenvironment is substantial, and we are conscious of the

Logistics provides an essential function for society asvery grave social responsibility to society that we hold.

infrastructure for supporting production and distribution.
The online shopping market continues to expand inJapan, and economic growth continues in Asia. Both ofthese developments are expected to further increasedemand for logistics in the future.
We would like to be a corporate group able to contributeto the development of society by supporting supply
chains spanning Japan and overseas. We will seriously
address international social issues through logistics
solutions that create new value. By doing so, we believe
we can achieve sustained growth as a trusted company.
Moving forward, the Group will consciously work as one
to conduct business in order to continue to be needed byour stakeholders. We ask for your ongoing support in the
future.

4

Corporate Information

Message from Chairperson
and President

Business Overview

CSR Management

CSR Report

Business Overview and Major Subsidiaries
The Group is comprised of the holding company SG

corporate customers. Utilizing the resources of its Group

Holdings, 101 consolidated subsidiaries, and eightcompanies, the Group produces proposals designed toequity method affiliates. With a business portfolio

solve customer-specific challenges. Our goal is tofocused on “fromB,” we have built a delivery andremain as the partner of choice by strengthening andlogistics network to respond to the various needs ofadvancing these efforts.

Delivery Business
Provides a variety of transportation services through our nationwide network.

Sagawa Express

Sagawa Humony

Offers a wide range of delivery
services centered around
express package delivery.

Handles a telegram-likeservice.

World Supply

SG Moving

Engaged in delivery for
department stores, third-party
logistics (3PL), and joint fooddelivery.

Offers delivery services of large
furniture and home applianceinstallation and moving.

Logistics Business
Offers cross-border supply chain optimization for customers in Japan and overseas by providing
customized warehouse operations, international transport, and local logistics.

Sagawa Global Logistics
Sagawa Logistics Partners

SGH Global Japan
Provides integrated global
transportation services, frominternational logistics, to distribution
warehouse operations anddomestic transportation.

Optimizes customer supply
chains through 3PL anddistribution processing.

5

Corporate Information

Message from Chairperson
and President

Business Overview

CSR Management

CSR Report

Real Estate Business
Develops, utilizes, and manages real estate, centered around distribution facilities and other Group business
infrastructure.

SG Realty and SG Assetmax
Develops, utilizes, and manages
distribution facilities.

Other Businesses
Engaged in a wide variety of businesses, including vehicle maintenance, IT systems, finance, and temporary staffing, tosupport the Group’s core business.

Sagawa Advance

SG Motors

Engaged in comprehensive
services including insurance, fuelsales, and product development.

Engaged in vehicle-related
services, including maintenance,
body manufacturing, and new andused car sales.

SG Systems

Sagawa Financial

Develops and operates Japan’slargest cargo tracking and shipping
support systems.

Develops finance related
businesses such as the “e-collect”
settlement service.

SG Fielder

SG Expert

Provides human resource
outsourcing services forwarehouse operations and otherbusinesses.

Brings together the Group’s
administrative tasks, such as
general affairs, human resources,
and accounting.

Nouvelle Golf Club

Sagawa Forestry Co., Ltd.

Manages a golf course in
Oamishirasato, Chiba prefecture,
which respects and is in harmony
with nature.

Cultivates, preserves, andmanages seven forests owned by
the Group in Kochi and Tokushima
prefectures.

6

Corporate Information

Message from Chairperson
and President

Business Overview

CSR Management

CSR Report

Overseas Corporations
In addition to Japan, the SG Holdings Group operates in
24 countries centered on Asia, and utilizes its global
network of 90 subsidiaries and affiliates (including 61
logistics-related companies) to provide consistentcomprehensive logistics services.

Republic of Korea
People’ s Republic of China

Pakistan

Laos
United Arab Emirates

India
Bangladesh

TaiwanHong Kong
Cambodia

Thailand
Vietnam
Myanmar

Sri Lanka
Maldives

Philippines

Malaysia

Singapore

Kenya

Indonesia

United States of America

Mauritius
Madagascar
South Africa
indicates countries and regions where SGH has business sites

7

Corporate Information

Message from Chairperson
and President

Business Overview

CSR Management

CSR Report

Major overseas sites
Thailand SG Sagawa (Thailand) Co., Ltd.
Total logistics

SG Holdings Global Pte. Ltd.

Overseas business management company (Singapore)
Planning, formulating strategy, financing, IT support, and othermanagement operations in the Group’s overseas business●

Vietnam

East Asia

The Group conducts a high-quality logistics business (3PL/CFS)
with its own warehouses in Shenzhen and Hong Kong in China,
including freight forwarding operations such as arranging thetransportation and customs clearance procedures of import andexport freight on behalf of customers. It also provides international
package delivery services and consistent transportation arrangements for cross-border EC packages to the door in coordination with
Sagawa Express in Japan.

Malaysia EFL Malaysia SDN. BHD
Freight forwarding

・Site network
Shanghai Poly-Sagawa Logistics Co., Ltd.
China
(North China/Shanghai)
Total logistics
Expo Freight (Shanghai) Ltd.
Freight forwarding
China(South China/Shenzhen)

Singapore SG Sagawa Ameroid Pte. Ltd.
Total logistics
Amgas Asia Pte. Ltd.
Crude oil sales
Indonesia PT Expo Freight Indonesia
Freight forwarding

Poly-Sagawa Logistics Co., Ltd.
Total logistics●

Hong Kong Sagawa Express (H.K.) Co., Ltd.
Total logistics
Expo Freight (Hong Kong) Ltd.
Freight forwarding
TaiwanSagawa Express International Taiwan Corp.
Total logistics

Korea

Sagawa Logistics Korea Co., Ltd.
Total logistics●

Sagawa Express Vietnam Co., Ltd.
Domestic trucking
SG Sagawa Vietnam Co., Ltd.
Total logistics
SG Sagawa Express Vietnam., LLC.
Domestic door-to-door delivery service
Expolanka Freight (Vietnam) Ltd
Freight forwarding

North America

The Group utilizes its global network to conduct operations in fivesites within the United States (Los Angeles, New York, etc.) toprovide handling of cross-border EC packages from the U.S. andfreight forwarding to and from the U.S.

・Site network
Los Angeles SG Sagawa USA, Inc.
Total logistics
Expolanka USA LLC
Freight forwarding

Southeast Asia●

With sites in major countries throughout Southeast Asia, SG
Holdings provides comprehensive logistics services from upstream
to downstream based out of its own warehouses (the Philippines,
Thailand, Vietnam, and Singapore). It provides high-quality logistics
services ranging from the formulation of logistics plans that meetcustomers’ needs to 3PL (3rd Party Logistics) and logistics
processing services (picking and packing, pricing, productinspection, needle detection, and assorting).

South/West Asia & Others

Centered on Expolanka Holdings PLC (Sri Lanka head office), itscore company in South Asia, the Group conducts freight forwarding
operations with 20 sites in India. It is also building a network of sites
in Bangladesh, the Middle East, and Africa, and has strengths in thetransportation of products to North America and Europe.

・Site network
Sri Lanka Expolanka Holdings PLC
head office
Sri Lanka Expolanka Freight (Pvt)
Limited
India

Expo Freight India (Private) Limited

Bangladesh Expolanka Bangladesh Limited
Dubai

Pakistan Union Cargo (Private) Limited

SG Sagawa Vietnam Distribution Center(Nhon Trach 3 Industrial Park)・Site network
Philippines Sagawa Express Philippines, Inc.
Total logistics
Sagawa Global logistics (Philippines) Inc.
Bonded warehouse within PEZA
Expolanka Freight Limited
Freight forwarding

Expolanka Freight FZCOSouth Africa Expolanka Freight (PROPRIETARY) Limited
Kenya

Expolanka Freight Limited

Mauritius Expolanka Freight Limited
Madagascar Expolanka Madagascar S.A

8

Corporate Information

Message from Chairperson
and President

Business Overview

CSR Management

CSR Report

CSR Management
Material CSR Issues and Processes for Identifying Them
The Group is conducting stakeholder management to

Sustainable Development Goals (SDGs), which are tomeet the expectations of customers, employees, local

be achieved with the efforts of the international

communities, business partners, and shareholders as acommunity, to ensure that there is no deviation from thecorporate group that is a public entity of society. We

requirements of society in the processes for identifying

have identified new material CSR issues as an indicator

material issues.

for implementing stakeholder management. We utilized

Processes for Identifying Material CSR Issues

1

2

Reacknowledge our social mission

Confirm the initiatives established in

Confirm business area risks andand identify the elements andthe Mid-term Business Plan

identify the initiatives required for

initiatives required for achieving this3
mitigating risks

4

5

6

Utilize SGDs to confirm that theGroup the initiatives identified in (1)Exchange opinions with experts on

initiatives identified in (1) to (3) doto (3) to identify material issues

whether the identification processes

not deviate from the requirements ofbased on discussion in the CSR

and content of material issues aresociety

Committee

appropriate(1) Reacknowledgment of social mission“To continue to unwaveringly provide the social infrastructure of logistics”(2) Confirmation of the initiatives established in the Mid-term Business Plan
The Group states in its Mid-term Business Plan that it aims to achieve sustained growth across a broader range
geographically and in terms of business areas.

Mid-term Business Plan “First Stage 2018”
1. Establish the platform for sustainable growth through productivity improvement and advanced logistics solutions
2. Develop global logistics network through the enhancement and integration of domestic and overseas businesses
3. Increase in value and optimization of ancillary logistics businesses
4. Establish talent management system and make best use of diversified talent pool
5. Employ the latest technology to deliver superior solution to our customers and streamline business activities
6. Ensure enhancement of the compliance system

9Corporate Information

Message from Chairperson
and President

CSR Management

Business Overview

CSR Report(3) Risks in business areas
In addition to various risks overseas and in Japan, the Group as a whole faces and needs to address risks in areas suchas governance, systems, the environment, safety, and quality.

Location of risks in business areas
Delivery and collection overseas
Human rights, labor,
and corruption risks

Airport/Port

Airport/Port

StationStation

Modal shift

Risks related tobusiness partners

Transfer center

Labor shortage

Sales office andservice center(collection)

Sender (client)Individual/
corporation

Sales office andservice center(delivery)

RecipientIndividual/
corporation

Moving, transportation of large furniture,home appliances, and artwork

Reputation risk
Distribution center

Governance-related risk

System-related risk

Environmental risk

10

Safety risk

Quality risk

Corporate Information

Message from Chairperson
and President

CSR Management

Business Overview

CSR Report(4) Using SDGs to confirm that there is no deviation from social requirements● Mapping of the initiatives identified in (1) to (3) in terms of “interest from society” and “impact on the company”
Large

Interest of society●Measures to address
climate change●Energy measures●Environmental preservation●Resolution of issues in local communities●Safety initiatives●Utilization of human resources●Promotion of diversity●Provision of high-quality services●Comprehensive logistics solutions●Sustainable procurement●Compliance●Governance●Information security●Disclosure●Systems (logistics technology)●Differentiation of services

Impact on the company

Medium● SDGs that are highly compatible with the initiatives identified in (1) to (3)What are SDGs?
An abbreviation of “Sustainable Development
Goals.” Seventeen goals and 169 targets
adopted at a UN summit in September 2015
where it was agreed that they should beachieved by countries worldwide over the 15
years from 2016 to 2030 to create a sustainable
society. Companies are also required to takeaction to achieve the goals.

11

Large

Corporate Information

Message from Chairperson
and President

Business Overview

CSR Management

CSR Report

Material CSR issues identified in (5) and (6)These were identified in discussion during the first to third meetings of the CSR Committee in fiscal 2017.
Themes of SDGs Corresponding to Material Issues

Activity Themes●Achieving a Safe and Secure Transportation Society

Provision of safe and secure services●Promoting
Environmentally
Friendly Business
Activities

Reduction of the environmental impact of business (reduction of
CO2 emissions, effective utilization of resources)
Implementation of environmental preservation activities
Creation of work-friendly organizations (personnel systems andeducation)●Building an Organization of Diversity
and Inclusion

Promotion of diversity and inclusion●Creating New Value throughComprehensive Logistics
Solutions

Provision of high-quality services

Provision of services that meet stakeholders’ needs

Expansion of international logistics
Provision of services leading to the development of local
communities●Contributing toCommunities●Promoting Sustainable Procurement

Engagement of existing business partners and selection of new
suppliers●Building a Responsible Management
Foundation

Establishment of corporate governance system

Ensuring compliance

Risk management system enhancement

Comment from Expert

Kaori Kuroda
Executive Director,
CSO Network JapanThe SG Holdings Group has meaningfully re-identified material
CSR issues by utilizing internationally agreed upon SDGs toensure that there was no deviation from social requirements.
Indicating the processes for identifying material issues and risks inbusiness areas in tables and diagrams also made these easy tounderstand. I would like to point out that although human rights andlabor risks are only shown to be overseas, these also exist inJapan. I think it would be a good idea to identify risks andopportunities for each activity theme for the material issues.

12Corporate Information

Message from Chairperson
and President

Business Overview

CSR Management

CSR Report

CSR Statement of the SG Holdings GroupThe Group has made a CSR Statement clearly
showing the significance and approach of its CSR
activities based on the material CSR issues of theGroup that were newly identified in the processes

from (1) to (6). This will be used as a guide to
return to when there are doubts about the directionof CSR.

“Smoothing Out Today, for a Smarter Tomorrow”
Today, the SG Holdings Groupis devoting all of our efforts to using logistics
to provide people with worry-free lives.
This means offering safe, reliable logistics infrastructure.
It means living in harmony with the global environment,
helping to preserve an abundant, happy way of life.
And by using the power of our comprehensive logistics solutions
to create new value,
we hope to build a smarter tomorrow.
The SG Holdings Group will continue contributing to society through its business,working toward a future in which people connect,
and smiles bring them together.

13

Creating New Value
Through
Comprehensive
Logistics Solutions

Promoting
Sustainable
Procurement

Achieving a Safeand Secure
Transportation
Society

Building an
Organization ofDiversity andInclusion

Promoting
Environmentally
Friendly Business
Activities

Contributing toCommunities

Building a
Responsible
Management
Foundation

Corporate Information

Message from Chairperson
and President

Business Overview

CSR Management

CSR Report

Achieving a Safe and Secure Transportation Society

Promoting Environmentally Friendly Business Activities Building an Organization of Diversity and Inclusion

Creating New Value Through Comprehensive Logistics Solutions

Contributing to Communities

Promoting Sustainable Procurement

Building a Responsible Management Foundation

Achieving a Safe and Secure
Transportation Society
Policy16P

Systems

18P

Initiatives

20P

Awards and Certification/Accreditation

33P■Awareness of Social Issues■Impact

According to a survey by the WHO (World Health
Total annual
distance traveledby SagawaExpress vehicles
Approx.

Organization), over 1.2 million people die in traffic
accidents worldwide every year, and one of the United
Nations’ sustainable development goals (SDGs) isstated as “By 2020, halve the number of global deaths

600 million

and injuries from road traffic accidents.” The SG

kilometers

Holdings Group is a corporate group conducting
business on public roads with approximately 26,000
vehicles of its own. As a company providing social
infrastructure in the form of logistics, we believe that it isimportant to minimize the impact of traffic accidents andtraffic congestion.

15

Corporate Information

Message from Chairperson
and President

Business Overview

CSR Management

CSR Report

Achieving a Safe and Secure Transportation Society

Promoting Environmentally Friendly Business Activities Building an Organization of Diversity and Inclusion

Creating New Value Through Comprehensive Logistics Solutions

Contributing to Communities

Promoting Sustainable Procurement

Building a Responsible Management Foundation

Policy■Approach
Initiatives to eliminate traffic accidents are the area theLand, Infrastructure, Transport and Tourism. Using thisGroup is placing the most emphasis on to realize a “safepolicy as a foundation, the companies have establishedand secure transportation society.” Sagawa Express, SG

systems for eliminating accidents. Furthermore, efforts

Moving, and World Supply, which conduct transportation

are also being made to ensure the safety of the Group’sbusiness, have established a basic policy on

entire transportation business, with support beingtransportation safety based on the transport safety

provided by SG Motors with vehicle maintenance andmanagement system established by the Ministry of

SG Systems through information technology.

■Basic Policy on Transportation Safety(1) Under the Corporate Philosophy of the SG Holdings(3) We will steadily implement safety management andGroup, all employees will work as one to constantly

conduct operations with a top priority on safety.

improve transportation safety by putting human life(4) When utilizing partner companies, we will not

first through close cooperation between Group

conduct any act that impedes the businesscompanies based on the Charter of Corporate

operator’s practice to ensure transportation safety.

Conduct.

Furthermore, we will strive to cooperate with partner(2) Management executives will lead efforts to ensurecompanies in the improvement of transportationtransportation safety within the company by having asafety.

deep understanding that ensuring transportation(5) We will publish information on transportation safety.

safety is the bedrock of management of thebusiness. Furthermore, they will ensure that
employees are aware of the highest importance ofensuring transportation safety.

16

Message from Chairperson
and President

Corporate Information

Business Overview

CSR Management

CSR Report

Achieving a Safe and Secure Transportation Society

Promoting Environmentally Friendly Business Activities Building an Organization of Diversity and Inclusion

Creating New Value Through Comprehensive Logistics Solutions

Contributing to Communities

Promoting Sustainable Procurement

Building a Responsible Management Foundation■Fiscal 2017 Goals and Overview
Boundary: Scope of application of goal
Related SDGs: Targets of SDGs (sustainable development goals) closely related to the goal
Long-term Theme

Results and progress offiscal 2017 initiatives

Fiscal 2017 Goals●Reduce traffic accidents
in the Company and thewhole society●Reduction of thenumber of traffic
accidents*1(year-on-yearcomparison)

Boundary
SagawaExpress

Japan

●

*2

Overseas

Related
SDGs●Sagawa Express: 22(+3 year-on-year)●SG Moving: 0(-1 year-on-year)

3.6●World Supply: 0(same as previous year)*1 Number of accidents specified in Article 2 of the Automobile Accident Reporting Rules*2 The figures for Japan are only for companies that have separate targets based on the transport safety management system.

The outcome of initiatives by Sagawa Express in fiscal

Sagawa Express began specific responses such as2017, unfortunately, resulted in an increase in theincreasing the number of instructors and reviewing

number of accidents compared to fiscal 2016. It istraining methods. Safety Promotion Manager Coaching

believed that one cause may have been a delay in filling

Training, which we introduced in fiscal 2017, is one of

the shortage of instructors who train new employees,these responses.

while the company’s hiring activities progressed steadily

Following on from fiscal 2016, World Supply again kept

as it pressed forward with work style reforms. Therefore,

the number of accidents to zero.

● Number of Traffic Accidents Based on the Automobile Accident Reporting Rules
Fiscal 2016

Fiscal 2017

Sagawa Express

Number of vehicles owned: 25,153 (as of March 31, 2018)

19

22

SG Moving

Number of vehicles owned: 74 (as of March 31, 2018)

1

0

World Supply

Number of vehicles owned: 136 (as of March 31, 2018)

0

0

17

Message from Chairperson
and President

Corporate Information

Business Overview

CSR Management

CSR Report

Achieving a Safe and Secure Transportation Society

Promoting Environmentally Friendly Business Activities Building an Organization of Diversity and Inclusion

Creating New Value Through Comprehensive Logistics Solutions

Contributing to Communities

Promoting Sustainable Procurement

Building a Responsible Management Foundation

Systems■Organization
The Group has established a transport safetycommittee. Safety meetings are held by the Safety

management systems for each Group company.

Measures Committee every month, and top

In October 2016, the Motor Truck Transportation

management discusses a variety of issues related toBusiness Act was revised, and the transport safety

safety, including the progress of safety measures. In

management system was introduced for the purpose ofaddition, taskforce meetings are held as necessary by“constantly improving safety.” A Safety Measuressafety promotion managers at the head officeCommittee was established in Sagawa Express, which(responsible for each area) to devise safety measures

plays a central role in the Group’s transport business, toreflecting opinions from the workplace and consider

ensure safety as the highest priority management issue.

improvements. Safety promotion managers have also

The chairman of the committee is the Managing Director

been appointed in the 426 sales offices that are home toand the vice chairman is the head of the department

drivers nationwide to provide not only guidance andresponsible at the head office. Branch managers from 18

training but also smooth communication. The Group’s

locations nationwide and general managers of headsafe driving management is based on creating an

office departments also participate as members of theenvironment where drivers can drive with peace of mind.

Sagawa Express Safety Management System
Listening to and reflecting
opinions from the workplace
Instructions and advice

Board of Directors

Safety Measures Committee
Safety Meeting

Safety Taskforce

Safety Promotion Meeting

Investigations into all safety-related issues

Sales Office Manager’s Meeting

BranchSales Office Managers
Operation Managers

Safety Promotion Meeting

Maintenance Managers
Sales Office18

Drivers

Corporate Information

Message from Chairperson
and President

Business Overview

CSR Management

CSR Report

Achieving a Safe and Secure Transportation Society

Promoting Environmentally Friendly Business Activities Building an Organization of Diversity and Inclusion

Creating New Value Through Comprehensive Logistics Solutions

Contributing to Communities

Promoting Sustainable Procurement

Building a Responsible Management Foundation■System for Accidents and Disasters
Sagawa Express has established a reporting system for promptly responding to an accident or a disaster.

Organizational Structure and Chain of Command Related to Transport Safety at Sagawa Express

Top Management

General Manager of Safety

Department responsible forpromoting safety at head office

Department responsible forpromoting safety at branch

Department responsible forpromoting safety at sales office

110 (local police station)

Driver/crew

119 (hospital)

Traffic accident, traffic
violation, disaster, abnormal
weather, trouble

Director ofTransport
Bureau Branch

Insurancecompany
Family of victim*The relevant case must be reported to the Operational Manager if there is no department responsible for promoting
safety or if no contact can be made with the department responsible for promoting safety.

19

Message from Chairperson
and President

Corporate Information

Business Overview

CSR Management

CSR Report

Achieving a Safe and Secure Transportation Society

Promoting Environmentally Friendly Business Activities Building an Organization of Diversity and Inclusion

Creating New Value Through Comprehensive Logistics Solutions

Contributing to Communities

Promoting Sustainable Procurement

Building a Responsible Management Foundation

Initiatives■Safety Education
Education and Training System
Sagawa Express has driver training facilities that provide
driving training courses in Kanagawa, Aichi, and Kagawa
prefectures, and provides a driver education system fromjoining the company to becoming an independent driver.
After joining the company, new drivers undergo Basic New
Employee Training and Basic Safe Driving Training. Once they
have passed a Driving Ability Assessment by an Advanced
Safe Driving Examiner, they undergo mentoring by Advanced
SD Instructors. Sagawa Express believes that instruction by amentor is the most effective method of education. Drivers thenundergo a Driving Assessment and a Collection and Delivery
Service Test, and can only be involved in operations alone as

Sagawa Express Toyohashi (Aichi prefecture)
Training Center

Sales Drivers® after these have been passed. After becoming
independent, they receive follow-ups and monitoring by
Advanced SD Instructors at one, three and six months, and by
Advanced Safe Driving Examiners at 12 months.
New Driver Training Flow
(SD: Sales Driver)

Regular Driver Observation

12 Month Driver Mentoring(Continuous Driving Assessment)

6 Month Driver Mentoring

3 Month Driver Mentoring

Period of follow-up by
Advanced SD Instructors
1 Month Driver Mentoring

SD Certification Training

Collection and Delivery
Service Test

Driving Assessment

Driver Mentoring

Driving Ability
Assessment

Basic Safe Driving Training

Basic New Employee Training

Join Company

Period of training by
Advanced SD Instructors

Tests Conducted by Advanced Safe Driving Examiners

Advanced SD Instructors who provide mentoring and Advanced Safe Driving Examiners who conduct tests are certified
under the “Sagawa License System.” There is also an adequate training system for not only new drivers but also theirinstructors.

20

Corporate Information

Message from Chairperson
and President

Business Overview

CSR Management

CSR Report

Achieving a Safe and Secure Transportation Society

Promoting Environmentally Friendly Business Activities Building an Organization of Diversity and Inclusion

Creating New Value Through Comprehensive Logistics Solutions

Contributing to Communities

Promoting Sustainable Procurement

Building a Responsible Management Foundation

Main Forms of Training●Basic Safe Driving Training
Basic Safe Driving Training is designed to provide theminimum necessary skills and knowledge as acommercial vehicle driver to new employees engaged indriving operations. The training includes lectures for
improving safety awareness and sensitivity to danger,
and practical training for learning about truck driving
characteristics and safety confirmation methods.
Through this training, we endeavor to standardize driving
quality and ensure safety in driving operations.
●Advanced SD Instructor Accreditation Training
Advanced SD Instructor Accreditation Training is aimed
at personnel who provide education to new employees in
the workplace. It teaches instruction methods foreliminating traffic accidents and violations throughpractical training. Specifically, it develops the ability todetect unsafe behaviors of new employees and provide
sound instruction and advice. Training is conducted inrole-playing format to enhance communication skills andteach more practical skills. Furthermore, efforts are
made to brush up as needed after acquiring
accreditation in a mechanism for maintaining a certain
level of instruction.

Advanced SD Instructors

9,529

Instructors●Advanced Safe Driving Examiner Accreditation Training
Advanced Safe Driving Examiner Accreditation Training
is designed to provide accreditation to examiners who
determine whether or not drivers are able to drive.
Through this training, the skill of being able toappropriately determine the state of correct driving andimplementation of safety checks. Furthermore, like
Advanced SD Instructors, efforts are made to brush up
as needed after acquiring accreditation to maintain acertain level of instruction.

Advanced Safe Driving Examiners

1,425

Examiners●Initial Safety Promotion Training
Initial Safety Promotion Training is designed for Safety
Promotion Managers conducting safety management
and instruction for the prevention of accidents. They are
the keystones of safety in everyday transport operations.
This training provides a broad range of study for newly
appointed Safety Promotion Managers ranging frombasic knowledge required for operation management
and labor management to responses in the event of an
accident. Basic knowledge includes learning about
relevant laws, internal regulations, and practicalmanuals. Responses in the event of an emergency
include role-playing based training and on-site
investigations in other sales offices.

Safety Promotion Managers

1,019Managers

21

Corporate Information

Message from Chairperson
and President

Business Overview

CSR Management

CSR Report

Achieving a Safe and Secure Transportation Society

Promoting Environmentally Friendly Business Activities Building an Organization of Diversity and Inclusion

Creating New Value Through Comprehensive Logistics Solutions

Contributing to Communities

Promoting Sustainable Procurement

Building a Responsible Management Foundation●Safety Promotion Manager Coaching Training
Safety Promotion Manager Coaching Training is
intended to improve the level of Safety Promotion
Managers that was newly established in fiscal 2017. It
involves studying how to ascertain the true causes ofaccidents and what steps to take to eliminate the causes
and ensure they do not occur again from a variety ofangles. The aim is to prevent traffic accidents and traffic
violations by drivers by improving the ability of Safety
Promotion Managers to provide instruction.
●Environmentally Friendly Safe Driving Training
Safe driving has a significant effect, reducing
environmental impact. Driving operations such as sudden
staring, sudden acceleration, and sudden braking that
could cause accidents also lead to losses of fuel.
Environmentally friendly driving techniques are safe
driving techniques.
Sagawa Express promotes Environmentally Friendly
Safe Driving combining both environmentally friendly
aspects and safety aspects. Specifically, this involves
driving skill instruction related to setting maximum engine
RMP when accelerating, and the timing of gear changes.
Sagawa Express Environmentally Friendly Safe Driving
Training is mainly conducted for all managers at sales
offices and Safety Promotion Managers. This is an
initiative aimed at strengthening instruction in on-site
education enabling drivers to learn driving skills forthemselves by understanding the necessity ofenvironmentally friendly safe driving.

Seven Principles of Environmentally Friendly Safe Driving

1. Implement “Soft Acceleration, e-Start”
2. Shift up early
3. Drive at fixed speeds according to traffic
conditions
4. Ensure adequate spacing between vehicles
5. Release the accelerator early, use the engine
brake
6. Enforce the removal of keys (stoppage ofengines) when parking
7. Conduct routine inspection and maintenance,and management of air pressureState of Implementation of Training in fiscal 2017
Training Title

Number of Instances

Number of Recipients

Basic New Employee Training

148

3,879

Basic Safe Driving Training

138

3,071

Initial Safety Promotion Training (*1)

6

128

Environmentally Friendly Safe Driving
Training

3

66

Advanced SD Instructor Accreditation
Training (*2)

132

1,091

Advanced Safe Driving Examiner
Accreditation Training (*3)

70

261

SD Adviser Training (*4)

24

102

22

*1 Safety Promotion Managers
Persons conducting safety
management in sales offices*2 Advanced SD Instructors
Persons conducting driver
mentoring*3 Advanced Safe Driving Examiners
Persons determining whether
drivers can work independently*4 SD Adviser
Persons in administrative positions
who provide practical consultation
and advice on customer responses
to drivers with less than one yearof experience driving.

Corporate Information

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and President

Business Overview

CSR Management

CSR Report

Achieving a Safe and Secure Transportation Society

Promoting Environmentally Friendly Business Activities Building an Organization of Diversity and Inclusion

Creating New Value Through Comprehensive Logistics Solutions

Contributing to Communities

Promoting Sustainable Procurement

Building a Responsible Management Foundation■Safety Supported by Technology
Verification of Safe Driving Using Driving Recorders
Sagawa Express and SG Moving have introduced

Number of vehicles with driving recorders in Sagawa Express

driving recorders (safe driving recording devices) to15,529provide more effective safe driving instruction. Some
driving recorders used are able to not only videotape but
digitize dangerous behavior such as engine revolutions(61.8%)and sudden braking while driving.
World Supply is scheduled to introduce driving recorders

Number of vehicles with driving recorders in SG Movingfrom fiscal 2018.

74(100%)

Driving behavior data are analyzed under five categories
to present the driving characteristic of the vehicle. This
makes it possible to identify a driver’s regular driving
behavior and weaknesses, enabling correct instruction
for overcoming issues. Drivers share their experiencesof near misses recorded by the driving recorder whiledriving, and these are also used to provide opportunities
to consider safety measures.

Driving Diagnosis Report Card

●Aptitude Tests Using a Basic Driving Simulator
World Supply introduced a basic driving simulator in
fiscal 2017. This enables driver aptitude tests to be
conducted without driving a vehicle, and is also utilized
in danger prediction training.

●Safety Education in HIKYAKU Company Newsletter
Sagawa Express publishes the HIKYAKU company
newsletter monthly. It includes news and warnings on
safety as necessary, lending itself to a safety education
tool for all employees.

23

Corporate Information

Message from Chairperson
and President

Business Overview

CSR Management

CSR Report

Achieving a Safe and Secure Transportation Society

Promoting Environmentally Friendly Business Activities Building an Organization of Diversity and Inclusion

Creating New Value Through Comprehensive Logistics Solutions

Contributing to Communities

Promoting Sustainable Procurement

Building a Responsible Management Foundation■Introduction of Safety Assistance Devices
Sagawa Express has introduced safety assistancedevices such as rear sonar and parking alarms toprevent accidents.

Prevention of Accidents When Reversing●Rear sonar
Sagawa Express has introduced rear sonar to eliminate
accidents when reversing. Rear sonar is a safetyassistance device that sounds an alarm when an
obstacle is approached.
Sagawa Express analyzed accidents that occurred in thepast to manufacture an original rear sonar. The units
have been progressively installed since fiscal 2017.

●Rear camera
Sagawa Express has installed rear cameras in all of its
vehicles.

Rear sonar
Rear camera

24

Corporate Information

Message from Chairperson
and President

Business Overview

CSR Management

CSR Report

Achieving a Safe and Secure Transportation Society

Promoting Environmentally Friendly Business Activities Building an Organization of Diversity and Inclusion

Creating New Value Through Comprehensive Logistics Solutions

Contributing to Communities

Promoting Sustainable Procurement

Building a Responsible Management Foundation

Prevention of Accidents When Vehicles Are Unattended
Serious damage can be caused in accidents that occur
when a vehicle moves without a driver. These accidents
have a significant impact on society.
Sagawa Express has adopted parking alarms andelectric parking brakes to prevent these accidents fromoccurring.
●Parking alarmピー

A parking alarm is a safety assistance device that warns
the driver by sounding an alarm when the driver forgets
to apply the parking brake. Like rear sonar, Sagawa
Express analyzed accidents that occurred in the past to
manufacture an original alarm. The units have been
progressively installed since fiscal 2017.

Parking alarm●Electric parking brake
An electric parking brake is a device for automaticallycontrolling the parking brake lever stroke according to
the vehicle conditions. This makes it possible to ensure
the necessary braking force is applied, and can prevent
accidents from occurring when a vehicle is unattended
due to the parking brake not being adequately engaged.
The units have been progressively installed since fiscal
2013.

Electric parking brake25

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Business Overview

CSR Management

CSR Report

Achieving a Safe and Secure Transportation Society

Promoting Environmentally Friendly Business Activities Building an Organization of Diversity and Inclusion

Creating New Value Through Comprehensive Logistics Solutions

Contributing to Communities

Promoting Sustainable Procurement

Building a Responsible Management Foundation■Internal Commendation Systems
Truck Driving Championships
We hold Truck Driving Championships every year at
Sagawa Express with the goal of cultivating professional
drivers and increasing the safety awareness of all our
employees. In fiscal 2017, a total of 84 drivers (including
employees of Group companies) were chosen from allover Japan to use the driving skills and knowledge they
have gained to compete in the categories of three:knowledge, driving, and inspection.
Training is performed for participating drivers fromthroughout the country when they participate in thechampionships, allowing them to share related
knowledge, hone their driving skills and etiquette, anddevelop professional awareness.

Truck Driving Championships

The championships were held for the 25th time in 2017.

Continuous Accident-free Award System
Sagawa Express has established a Continuous
Accident-free Award System for sales offices. Being
continuously accident-free is quantified by multiplying
the number of vehicles held by the continuous number ofdays without accidents. It provides a way to motivate all
drivers in a sales office to work as one to engage in safe
driving.

26

Corporate Information

Message from Chairperson
and President

Business Overview

CSR Management

CSR Report

Achieving a Safe and Secure Transportation Society

Promoting Environmentally Friendly Business Activities Building an Organization of Diversity and Inclusion

Creating New Value Through Comprehensive Logistics Solutions

Contributing to Communities

Promoting Sustainable Procurement

Building a Responsible Management Foundation■Ensuring Safety at Business Partners (Suppliers)
Sagawa Express is engaged in improving the safety oftransportation and the morale of drivers considering
partner companies.

Long-haul Transport Safety Patrols
Sagawa Express Long-haul Transport Safety Patrols are
performed once every year for the purpose of preventing
traffic accidents and vehicle breakdowns involving
long-distance highway drivers. Midway roll calls andvehicle inspections are carried out in service areas andparking areas on major highways nationwide in an effort
to raise awareness aimed at preventing vehicular
accidents and vehicle breakdowns.
Number of vehicles participating in Long-haul Transport
Safety Patrols

1,888

Activity of the Long-haul Transport Safety Patrol

VehiclesImplemented in September 2017

Long-haul Transport Partner Company Safety Seminars
Management executives of long-haul transport partnercompanies are invited in an effort to share information

Number of long-haul transport partner companies

on safety required for trucking business operators. In
fiscal 2017, we held seminars in two locations in the
Kanto regions and the Kansai region on addressing theApprox.

labor shortage and improving the work environment,

300

Companies

which have become problems in the transportation
As of March 31, 2017industry.

Long-haul Transport Terminal Inspections
Long-haul Transport Terminal Inspections for providing
encouragement and performing routine inspections are

Number of vehicles inspected in Long-haul Transport
Terminal Inspections

carried out annually for drivers of long-haul transport

4,648

companies who arrive at Sagawa Express sales offices
and hub centers. Managers including Sales Office

VehiclesManagers of Sagawa Express and employees oflong-haul transport partner companies cooperate in all

Implemented in April 2017

locations of Sagawa Express to perform vehicle
inspections prior to departure using special check sheets.

27

Corporate Information

Message from Chairperson
and President

Business Overview

CSR Management

CSR Report

Achieving a Safe and Secure Transportation Society

Promoting Environmentally Friendly Business Activities Building an Organization of Diversity and Inclusion

Creating New Value Through Comprehensive Logistics Solutions

Contributing to Communities

Promoting Sustainable Procurement

Building a Responsible Management Foundation■Ensuring Vehicle Maintenance
SG Motors Vehicle
Maintenance Network

The SG Holdings Group aims to eliminate traffic
accidents related to vehicle maintenance.
SG Motors oversees and manages all sales vehicles

Head office
Branch and maintenance plant
Maintenance plant
Body manufacturing plantwithin the Group. SG Motors has a maintenance network
covering 30,000 vehicles nationwide utilizing 14
branches, 25 company-owned maintenance plants, and
275 affiliates nationwide.
Vehicle inspections include routine inspections that mustbe performed by drivers, in addition to quarterly andannual inspections performed by SG Motors according
to a vehicle maintenance plan. Inspection andmaintenance items are standardized to provide amechanism to prevent problems being overlooked.

■Safety Supported by IoT
Telematics Cloud Service
SG Systems provides a telematics cloud service using acloud platform. “Telematics” is a collective term referringto the provision of information services by combining
communications systems with moving vehicles such as
automobiles. This will lead to the accumulation andanalysis of various information in the operation ofvehicles, contributing to the improvement of safety.
The service was chosen by the Japan Institute of
Logistics Systems as a certified business operator for
the fiscal 2016 subsidy for business expenses for the

Detailed screen image of driving data

creation of next-generation logistics systems. We are
currently developing a “Telematics Cloud System,”enabling dynamic management and communication
between trucks in transit, transfer centers, warehouses,
and long-haul transport companies using smart devices.

Image of driving journal

28

Corporate Information

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and President

Business Overview

CSR Management

CSR Report

Achieving a Safe and Secure Transportation Society

Promoting Environmentally Friendly Business Activities Building an Organization of Diversity and Inclusion

Creating New Value Through Comprehensive Logistics Solutions

Contributing to Communities

Promoting Sustainable Procurement

Building a Responsible Management Foundation■To Ensure Safety of Society as a Whole
Safety of Children●Sagawa Express Traffic Safety Classes
Sagawa Express provides Sagawa Express Traffic

distracted. They sometimes act unexpectedly in the

Safety Classes with the desire to enable as many

street due to their immature grasp of traffic rules. In

children as possible to avoid danger. They highlight thethese Traffic Safety Classes, we use trucks that areimportance of obeying traffic rules to children throughout

actually used and costumes with the aim of providing

Japan, especially young children from kindergarten to

simple explanations from a child’s viewpoint. They havethe lower grades of elementary school.

been well received by educational institutions, PTAs andChildren in the phase of mental and physicalthe police.

development have great curiosity but are also easily

Safety of the Elderly
As well as for young children, Sagawa Express
provides traffic safety classes for the elderly in

Number of traffic safety classes provided (fiscal 2017)

various regions.

920

classesNumber of participants (fiscal 2017)

77,389participants

Total number of participants to date (since 2003)

1,493,604

participants

Traffic safety class for the elderly29Corporate Information

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Achieving a Safe and Secure Transportation Society

Promoting Environmentally Friendly Business Activities Building an Organization of Diversity and Inclusion

Creating New Value Through Comprehensive Logistics Solutions

Contributing to Communities

Promoting Sustainable Procurement

Building a Responsible Management Foundation

ColumnSafety Picture Diary Contest

SG Motors has held the Safety Picture Diary
Contest since fiscal 2014. The purpose of theinitiative is to reduce traffic accidents andviolations by increasing safety awareness throughthe provision of opportunities for families to think
about safety. The contest was held for the fourth
time in fiscal 2017, and two grand prizes, twoawards for excellence, and four special awards
were awarded for contestants chosen from among
97 creative submissions drawn by the children of
employees.

Diaries awarded the grand prizes

We will continue with a variety of safety initiatives
in the future in an effort to reduce traffic accidents
and violations.

30Corporate Information

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and President

Business Overview

CSR Management

CSR Report

Achieving a Safe and Secure Transportation Society

Promoting Environmentally Friendly Business Activities Building an Organization of Diversity and Inclusion

Creating New Value Through Comprehensive Logistics Solutions

Contributing to Communities

Promoting Sustainable Procurement

Building a Responsible Management Foundation

Safe Driving Training Services

We are also providing know-how in safe driving
cultivated by Sagawa Express to general business
operators as fee-based Safe Driving Training Services
for both instructors and drivers. Participants are offereda variety of safe driving programs ranging from practicaltraining to classes such as safety lectures and driving
aptitude tests in the training facility located in Kanagawa
prefecture. This service has been requested by manybusiness operators especially in areas other thantransportation. We believe it plays a role in reducing
traffic accidents in society in general.

Providing instruction using training vehicles

Training Examples● Training for instructors: Safe driving instructor training

Number of training sessions(2 days & 1 night)● Training for drivers:

127

Safe driving basic training(2 days & 1 night)

Sessions

Training for people who
caused accidents (1 day)
Number of participating companies● Safety lectures and classes (accident prevention

30

measures, safety check methods, safe driving
instruction methods, danger prediction training, etc.)

Companies

Number of participants

2,551

Participants

Number of participants in fiscal 201731

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and President

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CSR Management

CSR Report

Achieving a Safe and Secure Transportation Society

Promoting Environmentally Friendly Business Activities Building an Organization of Diversity and Inclusion

Creating New Value Through Comprehensive Logistics Solutions

Contributing to Communities

Promoting Sustainable Procurement

Building a Responsible Management Foundation■Overseas Initiatives
SG Sagawa Ameroid (Singapore)
SG Sagawa Ameroid in Singapore established a Safetysystem (accident reporting system), systems for driverCommittee in 2015 and is striving to prevent traffic

training and driving analysis, and also install equipment

accidents.

such as high-definition cameras in vehicles for

The company is also working to establish a web portalmonitoring drivers and other purposes.

Main Initiatives(1) Include vehicle and forklift inspections in the(4) Formulate procedures to respond todaily reports of each driveremergencies such as vehicle damage,disasters, and accidents (distribute portable(2) Inspect warehouses, offices and otherpocket cards)

facilities monthly through safety management
committee members(5) Equip all vehicles with safety equipment suchas triangular indicators, safety vests, first aid(3) Conduct lectures related to safe driving as

kits, and fire extinguishers to use inwell as evasive driving training to avoid

breakdowns and accidents

dangers for all of our drivers (utilize a checksystem for driving conditions)

Check System Materials for Driving Conditions

Emergency Response Pocket Cards

32

Corporate Information

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and President

Business Overview

CSR Management

CSR Report

Achieving a Safe and Secure Transportation Society

Promoting Environmentally Friendly Business Activities Building an Organization of Diversity and Inclusion

Creating New Value Through Comprehensive Logistics Solutions

Contributing to Communities

Promoting Sustainable Procurement

Building a Responsible Management Foundation

Awards and Certification/Accreditation■Awards
Excellent Safe Driving Workplace Award
Ninety-six Sagawa Express workplaces received thegold and platinum awards to workplaces that haveexcellent safe driving workplace award from the Japan

achieved accident/violation-free operations by working

Safe Driving Center in 2017. This program utilizes

together to drive safely and prevent traffic accidents

certification of driving history to provide bronze, silver,

according to their level of achievement.

Results in Fiscal 2017

Platinum
Award

11

Gold
Award

22

SilverAward

28

BronzeAward

35

workplaces

workplaces

33

workplaces

workplaces

Corporate Information

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and President

Business Overview

CSR Management

CSR Report

Achieving a Safe and Secure Transportation Society

Promoting Environmentally Friendly Business Activities Building an Organization of Diversity and Inclusion

Creating New Value Through Comprehensive Logistics Solutions

Contributing to Communities

Promoting Sustainable Procurement

Building a Responsible Management Foundation■Certification/Accreditation

Excellent Safety Workplace Certification
Sagawa Express, SG Moving, and World Supply haveobtained Excellent Safety Workplace (G mark)certification in 390, 11, and four workplaces,
respectively, (total of 405 workplaces) as of March 31,
2018. This certification is granted to workplaces that arerecognized for traffic safety initiatives by a national
trucking rationalization organization.
Excellent Safety Workplacecertification mark (G mark)Motor Vehicle Operation Manager Training Certified Organization
Sagawa Express has been certified as an organization
to provide motor vehicle operation manager training
stipulated by the Minister of Land, Infrastructure,
Transport and Tourism pursuant to the motor truck
transportation business transportation safety rules. Basiccourses and general courses can be implemented in thefreight category. The company is one of the few certified
organizations in the trucking industry.

34

Achieving a Safe and Secure Transportation Society

Promoting Environmentally Friendly Business Activities Building an Organization of Diversity and Inclusion

Creating New Value Through Comprehensive Logistics Solutions

Contributing to Communities

Promoting Sustainable Procurement

Building a Responsible Management Foundation

Promoting Environmentally
Friendly Business Activities
Policy36P

Systems

37P

Initiatives

38P

Awards and Certification/Accreditation

57P

Environmental Data

59P

■Awareness of Social Issues■Impact

Two important environmental decisions were made ininternational society in 2015. One was the historic Paris

CO2 emissions*
t-CO2

Agreement made at COP21 (21st Conference of the430,285

Parties of the United Nations Climate Change
Conference), establishing the goal of effectively reducing
CO2 emissions by humans to zero. The other was the
adoption of sustainable development goals (SDGs) at
the United Nations Summit. As a logistics business
operator using approximately 26,000 vehicles andemitting approximately 430,000 t* of CO2 (fiscal 2017)
throughout the Group, SG Holdings considers efforts to
reduce its impact on the environment to be a great
responsibility.
*Total of Scope 1 and Scope 2 for domestic Group companies(excluding Sagawa Humony), SG Sagawa Ameroid andExpolanka Freight (Sri Lanka).

35

Achieving a Safe and Secure Transportation Society

Promoting Environmentally Friendly Business Activities Building an Organization of Diversity and Inclusion

Creating New Value Through Comprehensive Logistics Solutions

Contributing to Communities

Promoting Sustainable Procurement

Building a Responsible Management Foundation

Policy■Approach
The SG Holdings Group has established anenvironmental initiatives in collaboration with theEnvironmental Philosophy and Environmental Policy

national government, local governments and otheraimed at the realization of a sustainable society, andcompanies. We will fulfill our responsibility to provide

performs reduction of CO2 emissions throughsocial infrastructure by actively engaging in thebusiness, 3R promotion activities, preservation of

reduction of environmental impact as a leading

biodiversity and environmental education for the nextcompany in the industry.

generation. Furthermore, the Group is engaged in■Environmental Philosophy
The SG Holdings Group engages in voluntary andcontinuous environmental management by conducting
environmentally friendly business activities while seeking
to coexist with society and nature.

■Environmental Policy
1. Prevention of global warming

4. Environmental education initiatives

We will engage in the reduction of CO2 emissions in

We will provide environmental education on reducing

our business activities and the prevention of global

environmental impact in addition to preservation andwarming through the provision of environmentally

regeneration of the natural environment to all Groupfriendly products and services, and resource-saving

employees in an effort to raise awareness ofand energy-saving activities.

environmental issues.

2. Prevention of pollution

5. Environmental communication initiatives

We will strive to prevent air pollution, water pollution

We will endeavor to provide active disclosure with theand soil contamination in our business activities.

aim of achieving mutual understanding with local
communities, and broadly engage in environmental

3. Promotion of the 3Rs*.

communication to children who will be responsible for

All Group companies will further promote the 3Rs in

the next generation.

business activities, contributing to a sustainable*The 3Rs refer to Reduce, Reuse and Recycle.

society.

36

Achieving a Safe and Secure Transportation Society

Promoting Environmentally Friendly Business Activities Building an Organization of Diversity and Inclusion

Creating New Value Through Comprehensive Logistics Solutions

Contributing to Communities

Promoting Sustainable Procurement

Building a Responsible Management Foundation■Fiscal 2017 Goals and Results
Boundary: Scope of application of goal
Related SDGs: Targets of SDGs (sustainable development goals) closely related to the goal
Results and progress offiscal 2017 initiatives

Boundary

Goal

KPIs

●Realize sustainable business inharmony with the earth’s
environment by reducing CO2●CO2 emissions (total)-1% year-on-year●CO2 emissions (total)
378,788t (95.4%
compared to fiscal
2016)●Use of energy per
ton-kilometer transported-1% year-on-year●Use of energy per
ton-kilometer transported
1.37t (100.1% comparedto fiscal 2016)●Waste output
Year-on-year reductionof amount wasted●Waste output
3,417t (117.8% comparedto fiscal 2016)●●Water usage
Year-on-year reductionof amount used

●Water usage 723.152m3(100.1% compared tofiscal 2016)●

emissions throughout the Group,
improving energy efficiency, andincreasing the rate of use ofrenewable energy.

SagawaExpress

RelatedJapan Overseas SDGs

●

7.2
7.3
13.3

●

12.4
12.5

12.4

Systems■Systems Aimed at Reduction of Environmental Impact
Meetings of the CSR Committee attended by SG

dedicated department to promote activities related to theHoldings directors are held quarterly to discuss andreduction of environmental impact.

share information on policies and initiatives for ESG

Other Group companies have also appointed CSR

activities with a focus on the environment.

personnel, and meetings of Group CSR personnel are

Furthermore, the Public Relations and CSR Unit in theheld biannually (first half and second half of the fiscal

General Affairs Department conducts group-wideyear) to promote activities aimed at the reduction ofmanagement in SG Holdings.

environmental impact by sharing information on

The core company Sagawa Express has established ainitiatives and holding workshops.

37

Achieving a Safe and Secure Transportation Society

Promoting Environmentally Friendly Business Activities Building an Organization of Diversity and Inclusion

Creating New Value Through Comprehensive Logistics Solutions

Contributing to Communities

Promoting Sustainable Procurement

Building a Responsible Management Foundation

Initiatives
Initiatives Aimed at CO2 Reduction■Environmentally Friendly Transportation/Delivery
The SG Holdings Group is working to reduce CO2

As a result, CO2 emissions in fiscal 2017 were roughly

emissions throughout the entire transportation/delivery

423,455 tons* (96.4% compared to fiscal 2016). In

system.

addition, Sagawa Express was one of the first in the

The Group is promoting the introduction oflogistics industry to publicly disclose information on “ownenvironmentally friendly vehicles, a modal shift to trainsemissions (Scope 1, Scope 2)” and “other indirect

and ships with less environmental impact, improved

emissions (Scope 3)” to visualize emissions throughout

distribution efficiency by utilizing transfer centers andthe entire supply chain. (See data on p.60)

distribution centers (SRC) and collection and delivery
shipments by bicycle or hand carts from a near-by*Total of Scope 1 and Scope 2 for domestic Group companies

service center.

(excluding Sagawa Humony)Transfer centers

EV
Utilization ofenvironmentallyfriendly vehicles P.39

ShipperCollection anddelivery shipments bybicycle or hand carts
from the service
centers P.44

Improvement of efficiency oftransport by transfer centers P.42

Modal shift

Modal shift to trains and ships withless environmental impact P.40,41

Sagawa Distribution Center (SRC)

Improvement of efficiency throughcentralized management, storage anddistribution processes at Sagawa
Distribution Center called SRC P.43

38

EV
Utilization ofenvironmentally-fri
endly vehicles

Collection anddelivery shipments
by bicycle or handcarts from theservice centers

RecipientAchieving a Safe and Secure Transportation Society

Promoting Environmentally Friendly Business Activities Building an Organization of Diversity and Inclusion

Creating New Value Through Comprehensive Logistics Solutions

Contributing to Communities

Promoting Sustainable Procurement

Building a Responsible Management Foundation■Introduction of Environmentally Friendly Vehicles
The SG Holdings Group owns a total of 10,301
environmentally friendly vehicles (roughly 40% of thetotal number) that include natural gas trucks, hybrid
trucks, electric vehicles and post-new long-term
regulation compliant vehicles. These include 3,423
natural gas trucks and 596 hybrid trucks. Natural gas
trucks reduce emissions such as CO2, NOx (nitrous
oxides) and PM (particulate matter), and hybrid trucks
are able to reduce fuel consumption and CO2 emissions.
Also, Sagawa Express has private-use natural gas filling
Natural gas truck

stations set up in 22 locations across the country, and isindependently promoting infrastructure arrangements.
Furthermore, since June 2018, the company has been
cooperating with field trials of large LNG (liquefied
natural gas) trucks jointly developed by Isuzu Motors
and Shell Japan in a first for the transportation industry
in Japan. LNG trucks enable a reduction of CO2
emissions by around 10% compared to ordinary diesel
trucks, and are characterized by having a shorter refill
time and longer travel distance than CNG vehicles.

Hybrid truck

Number of Environmentally Friendly Vehicles

10,301

VehiclesElectric vehicle

Breakdown of Trucks Owned
Environmentally Friendly vehicles
Natural gas

HybridElectric

Post-new long-term
regulation compliant
vehicles

Other

Total

3,423

596

16

6,266

15,56325,864*Not including environmentally friendly vehicles at overseas subsidiaries

39

Achieving a Safe and Secure Transportation Society

Promoting Environmentally Friendly Business Activities Building an Organization of Diversity and Inclusion

Creating New Value Through Comprehensive Logistics Solutions

Contributing to Communities

Promoting Sustainable Procurement

Building a Responsible Management Foundation■Modal Shift
Modal shift refers to switching from the transportation of
freight by truck to transportation by train and ship, whichhave a lower environmental impact.
Sagawa Express has been carrying out door-to-doordelivery transport via Super Rail Cargo express railway
container cars developed jointly with Japan Freight
Railway Company since 2004. Trains run regularly to andfrom Tokyo and Osaka and transport roughly 10% of thetotal shipping volume between Tokyo and Osaka. The
total volume of the two trains traveling to and from Tokyo
and Osaka is equivalent to 56 ten-ton trucks. This modal
shift is also largely driving the effectiveness in reducing“Super Rail Cargo” express railway container cars

the environmental impact such as lowering CO2
emissions.

Total volume to and from Tokyo and Osaka by train

Equivalent to56

ten-ton trucks

ColumnSupport for Eco Rail Mark

Sagawa Express has adopted the Eco Rail Mark andsupports the Eco Rail Mark as a logistics business
operator involved in transportation and distribution.
The Eco Rail Mark is a mark given to products andcatalogs if companies and their products are recognized
for being engaged in environmentally friendly railway
transportation.

40

Achieving a Safe and Secure Transportation Society

Promoting Environmentally Friendly Business Activities Building an Organization of Diversity and Inclusion

Creating New Value Through Comprehensive Logistics Solutions

Contributing to Communities

Promoting Sustainable Procurement

Building a Responsible Management Foundation■Reduction of Environmental Impact through Cross-industry Modal Shift
In collaboration with Toyota Transportation, Sagawa

streamlining plan under the Revised Act on

Express began a cross-industry modal shift utilizing theAdvancement of Integration and Streamlining of

TOYOTA LONGPASS EXPRESS in November 2017.

Distribution Business due to being able to realize energy

The TOYOTA LONGPASS EXPRESS is a dedicatedsavings and reduction of environmental impact.

freight train operated by Toyota Transportation along

We are endeavoring to implement work style reform forapproximately 900 km between Tokai in Aichi andtruck drivers and reduce environmental impact throughMorioka in Iwate for transporting automotive parts

collaboration not only in the logistics industry but also

produced in plants in the Chukyo region to Toyota Motoracross other industries.

East Japan’s Iwate plant. Sagawa Express has madethe shift to use spare space on the freight train for someof the freight being delivered from the Chubu region to
the Tohoku region. All transportation between Chubu
and Tohoku used to rely on large trucks, which required
23 to 24 trucks a day. By transporting one truckload ofgoods by train, it is estimated that truck driver work
hours can be reduced by approximately 1,700 hours andCO2 emissions can be reduced by 83.5 tons. Thisinitiative was recognized as a comprehensive

Before shift

Mark for Comprehensive Streamlining Plan Certification- Distance: 873km- Transportation volume:1,600t/ year

Tokai
Transfer Center

Tokai
Transfer Center

LegendTruck- Distance: 941km

Railway transport

41

Morioka
Freight Terminal- Distance: 36km
- Transportation volume:1,600t/ year

Nagoya Minami
Freight Station

After shift

Iwate
Sales Office- Distance: 5km

Iwate
Sales OfficeAchieving a Safe and Secure Transportation Society

Promoting Environmentally Friendly Business Activities Building an Organization of Diversity and Inclusion

Creating New Value Through Comprehensive Logistics Solutions

Contributing to Communities

Promoting Sustainable Procurement

Building a Responsible Management Foundation■Improvement of Efficiency of Transport by Transfer Centers
Sagawa Express is engaged in improving the efficiencyof the transport process as part of the creation of the
network supporting transport. Packages collected ineach region are aggregated in transfer centers (24nationwide) and delivered together to their respective
destinations. We are striving to reduce the number oftrucks used, limit CO2 emissions and prevent air
pollution.

Higashi-matsuyama Center (Higashi-matsuyama, Saitama)Transfer Centers Transport Flowchart

Establishment of transfer centers

No transfer center

Region A

Region D

Region A

Region B

Region E

Region B

Region C

Region F

Region C

Region D

Transfer
centerRegion E

Region F

It is necessary to carry packages directly

Packages are aggregated from each region infrom each region.

a transfer center and carried together toeach destination.

42

Achieving a Safe and Secure Transportation Society

Promoting Environmentally Friendly Business Activities Building an Organization of Diversity and Inclusion

Creating New Value Through Comprehensive Logistics Solutions

Contributing to Communities

Promoting Sustainable Procurement

Building a Responsible Management Foundation■Promotion of Greater Logistics Efficiency
Sagawa Distribution Center (SRC)
Sagawa Global Logistics operates and administers

Furthermore, we are promoting recycling by ensuring the

Sagawa Distribution Centers (Sagawa Ryutsu Centers =separate collection of waste materials generated in

SRCs), logistics facilities directly connected to Sagawa

distribution processes. In addition, we are actively

Express Sales Offices. SRC centrally manages products

engaged in the reduction of environmental impact suchand conducts operations such as storage and logistics

as proposing packing materials using environmentallyprocesses. We are saving energy and limiting emissions

friendly materials.

by eliminating truck transport between each process.

SRC Transport Flowchart

Sales Office

Picking

Inventory

Shipping Inspection

Product

Sales Office

Supplier

Warehousing

Conventional Distribution

Line-up

Shipping
Destination
DeliveryDistribution Using the SRC Model

Line-up

Sales OfficePacking

Shipping

Tagging

Picking

Inspection

Product

Inventory

Supplier

Sales OfficeSRC

3PL Function + Sagawa Express Sales Office

Reduction

43

Reduction

Shipping
Destination
DeliveryAchieving a Safe and Secure Transportation Society

Promoting Environmentally Friendly Business Activities Building an Organization of Diversity and Inclusion

Creating New Value Through Comprehensive Logistics Solutions

Contributing to Communities

Promoting Sustainable Procurement

Building a Responsible Management Foundation■Establishment of Service Centers
Sagawa Express has established Service Centers (SC)that perform collection and distribution without using
trucks such as with hand carts or bicycles at 324
locations throughout Japan. Each location is able to limit
the use of three to five vehicles and reduce CO2
emissions and other air pollutants of 1,500 vehicles
across all of these service centers.
In addition, Carbon Neutral Certification* as a part of the
carbon offsetting policy of the Ministry of theEnvironment has been granted to six business sites: theTokyo Station Yaesu Exit Service Center, the Kyoto
Shijo Takakura Service Center, the Hakata EkimaeService Center

1-chome Service Center, Tokyo Service Center, Gion
Sagawa Express Service Center, and Kyoto (Fuyacho)delivery Center.
*Carbon offsetting is an initiative to balance the amount of CO2that is reduced or absorbed in another area with CO2emissions in business activities.

Carbon Neutral Certification and Attachment

Service Center Flowchart

Sales Office

No Service Centers
CO2

CO2

Destination A
Destination B

CO2

Destination C

Sales Office

With Service Center Established
Destination A
Service
Centers

Destination B
Destination C

44

Achieving a Safe and Secure Transportation Society

Promoting Environmentally Friendly Business Activities Building an Organization of Diversity and Inclusion

Creating New Value Through Comprehensive Logistics Solutions

Contributing to Communities

Promoting Sustainable Procurement

Building a Responsible Management Foundation

Column Won the Minister of the Environment Award at the Carbon Offset Awards

packages using hand carts and bicycles instead oftrucks and the use of the credits of Sagawa
Forestry to offset CO2 that is difficult to reduceeven when engaged in active CO2 reductions.
These have been implemented in six locations
nationwide, and Carbon Neutral Certification has
been acquired under the Ministry of theEnvironment’s carbon offset system. Furthermore,
we are also conducting activities to spread carbon
offsetting among customers in an effort to actively
realize a low carbon society.

Sagawa Express received the Minister of theEnvironment award at the carbon offset awards
held by the Ministry of the Environment in
December 2017. The award is given to recognizeorganizations with excellent carbon offset
initiatives for supporting the realization of a low
carbon society. This award was given inrecognition of the initiative to provide “Carbon
Neutral Package Delivery Services.” This initiative
realized carbon neutrality through operations
contributing to the reduction of CO2 by transporting

The Industry’s First Carbon Neutral Package Delivery Services

Sagawa Forestry
J-VER

Man-powered
zero CO2deliverySales Office

Collection anddelivery point A

Service
Centers

Collection anddelivery point B

Reduction of CO2 by establishing service centers and using
hand carts and bicycles to collect and deliver packages

Value of CO2
absorption created byforest cultivation in
Kochi and Tokushima
prefectures

Use of J-VER to offset
CO2* that is
unavoidably difficult to
reduce*Transport between sales offices and service centers, electricity used in service centers, etc.

Realization of Carbon Neutral Package Delivery Services
by combining the two45

Achieving a Safe and Secure Transportation Society

Promoting Environmentally Friendly Business Activities Building an Organization of Diversity and Inclusion

Creating New Value Through Comprehensive Logistics Solutions

Contributing to Communities

Promoting Sustainable Procurement

Building a Responsible Management Foundation■Idling Stop
Sagawa Express has implemented Idling Stop since
1997.
When drivers are away from their vehicles while
delivering and collecting to and from customers, andwhen unloading packages in sales offices, the key isremoved from the ignition to stop the engine.
This prevents wasteful fuel consumption and reduces
emissions.

Wearing a key chain

SG Sagawa Ameroid’s “Idling-Stop Action”
SG Sagawa Ameroid in Singapore strives to reduce

negative impact that the idling may cause on thegreenhouse gas emission including CO2 by turning off

environment and its business, and requests them not toengines while vehicles stop: “the idling-stop action.” Theleave the engine idling.

company provides drivers an opportunity to realize the

Educational material (sample)

ColumnSupport for the COOL CHOICE campaign encouraging the receipt of
packages the first time

Sagawa Express and SG Moving support the “COOL CHOICE
campaign encouraging the receipt of packages the first time Everyone’s project to prevent re-delivery of packages” run by
the Ministry of the Environment.
The project broadly conveys the social loss caused byincreased CO2 emissions and long working hours due tore-delivery and introduces a variety of receipt services to people
who use package delivery services. We will cooperate withresolving the problem from a delivery operator’s perspective.

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Achieving a Safe and Secure Transportation Society

Promoting Environmentally Friendly Business Activities Building an Organization of Diversity and Inclusion

Creating New Value Through Comprehensive Logistics Solutions

Contributing to Communities

Promoting Sustainable Procurement

Building a Responsible Management Foundation

Environmentally Friendly Facilities■Environmentally Friendly Logistics Facilities
SG Realty is involved in solar power generation at the Group's 99
distribution sites and distribution centers throughout Japan with thegoal of a stable supply of electric power and the reduction of theenvironmental impact.
The total area of the panel installations is roughly 197,000m2 andthe total power generated annually is approximately 27,772MWh.
This is equivalent to a reduction of about 13,811 tons of CO2
emissions compared to that generated through means other thannatural energy. The generated electric power is supplied to electric
power companies in each region, but SG Realty Wako completed in
February 2018 has introduced the latest captive solar power
generation system.
SG Realty Wako uses LED lighting for all lighting throughout thefacility, and has installed an outdoor deck using natural woodprocessed by Sagawa Forestry that can be used as a place for
employees to interact with each other and disaster prevention
electricity storage facilities using the generated power. It has
obtained five stars, which is the highest rank, under both the DBJ
Green Building certification system supporting environmentally andsocially friendly real estate (Green Buildings) and the BELS labelingsystem for energy-saving performance of buildings for being afacility where steps have been taken to address environmental,
comfort and disaster prevention aspects. Furthermore, it became
the first logistics facility to be recognized as a zero-energy building(ZEB) under BELS.

SG Realty Higashi-Matsuyama has the group’s
highest power generation output of 2MW

Number of Solar Panels (All 99 Facilities)

137,808

PanelsInstallation of Solar Power Generation in Environmentally Friendly Logistics Facilities
RegionNumber of
Facilities

Annual CO2 Reductions
Generation Scale
Annual Power(tCO2/kWh)(kW)
Generation (kWh)Area of Panels(m2)

Number of Panels

Tohoku4

1,136

1,226,163

672

10,043

6,870

Kanto

25

9,812

10,985,340

5,207

77,96852,197

Chubu

19

2,746

3,371,728

1,617

23,055

16,900Kansai

11

2,952

3,464,986

1,708

23,981

16,515

Chugoku/Shikoku

13

1,988

2,227,349

1,425

16,611

12,067

Kyushu27

5,484

6,497,039

3,181

45,80933,259Total

99

24,11827,772,605

13,811

197,467

137,808

SG Realty Wako

47

Achieving a Safe and Secure Transportation Society

Promoting Environmentally Friendly Business Activities Building an Organization of Diversity and Inclusion

Creating New Value Through Comprehensive Logistics Solutions

Contributing to Communities

Promoting Sustainable Procurement

Building a Responsible Management Foundation■Encouraging Transition to LED Lighting
Sagawa Express is encouraging the introduction of LED
lighting at sales offices and large logistics facilities. We

CO2 Reduction by Introducing LED Lighting

12,300have been able to effectively reduce CO2 emissions byroughly 12,300t (approx. 17,600 MW) by introducing

Approx.

LED lighting at 218 locations (+ 87 locations

t-CO2

by fiscal 2017

year-on-year) in fiscal 2017.

48

Achieving a Safe and Secure Transportation Society

Promoting Environmentally Friendly Business Activities Building an Organization of Diversity and Inclusion

Creating New Value Through Comprehensive Logistics Solutions

Contributing to Communities

Promoting Sustainable Procurement

Building a Responsible Management Foundation

Initiatives Aimed at Realization of a Circulating Society■Vehicle Recycling●Recycling of vehicle oil

Vehicles used by Sagawa Express and other Group
companies are acquired by SG Motors, which disposes

Various types of oil used in vehicles are all collectedof them in an environmentally friendly way such as

and recycled without being discarded as waste.

recycling.

●Recycling of waste related to vehicle maintenance andbody manufacturing●Collection of CFCs from vehicles

A variety of waste such as metal, plastic and glass

CFCs produced during maintenance are appropriately

produced in vehicle maintenance and bodycollected using a specialized device, and thenmanufacturing is recycled as much as possible.

destroyed to prevent their emission into the●Used batteries

atmosphere.

The batteries collected and replaced from vehicles in
the Group are recycled and reused as new batteries
by a specialized company.

■3Rs Related to Mounted Equipment for Commercial Vehicles
SG Motors is engaged in the promotion of eliminating

commercial vehicles (decision criteria)” announced byfour substances that have an impact on the environment

the Japan Auto-Body Industries Association for products

and reducing the use of these substances based on theused in body manufacturing.

guidelines on the “3Rs related to mounted equipment for
CFC-free insulation materials are used in roof
panels.

Chromium-free paint that does not containchromium in pigment is used for painting.

A change has been made from hexavalentchromium to trivalent chromium in the metal
pretreatment of items such as lock rods and hinges.
Chromium-free steel sheets are used for the plated
sheet steels in sub-floors and other areas.

49

Achieving a Safe and Secure Transportation Society

Promoting Environmentally Friendly Business Activities Building an Organization of Diversity and Inclusion

Creating New Value Through Comprehensive Logistics Solutions

Contributing to Communities

Promoting Sustainable Procurement

Building a Responsible Management Foundation■Use of Environmentally Friendly Floor Materials and Recycled Plastics
SG Motors conducts environmental preservation
activities directly linked to corporate activities bydeveloping “ECO bodies” based on the theme ofenvironmental activities achieved through truck bodies.

How an ECO body is madeCrushing and powderization

Waste materials producedin the manufacturing process

Conventional bodies used a large amount of wood in the
body interior, and there were concerns about thedestruction of the environment due to deforestation. To
address this, the use of wood is reduced as much as

Material
recyclingpossible in “ECO bodies” by using plastic panels

Reconversion into pellets

recycled from waste materials produced during the
manufacture of cup noodle containers in the interiormaterials of roof panels. Fast-growing acacia wood is

Reworkingused in the floor materials inside trucks in an effort topreserve forest environments.

Completion■Adoption of Eco-friendly Uniforms
The SG Holdings Group is furthering green purchasing
in which products with a low environmental impact arechosen. As one component of this effort, Sagawa
Express uniforms have adopted EcoMark-certified
products made by recycling plastic bottles. In fiscal
2017, we purchased roughly 171,000 uniforms

Sagawa Express EcoMark-certified uniform(equivalent to roughly 1,090,000 bottles of 500ml plastic
bottles). Used uniforms that cannot be easily reused arecollected and recycled as fuel for ironworks. We have

Equivalent number of recycled PET bottles (500ml)

also purchased about 550,000 EcoMark-certified gloves
in fiscal 2017 for Sales Drivers®.

Fiscal 2017 Approx.

1,090,000

bottles50

Achieving a Safe and Secure Transportation Society

Promoting Environmentally Friendly Business Activities Building an Organization of Diversity and Inclusion

Creating New Value Through Comprehensive Logistics Solutions

Contributing to Communities

Promoting Sustainable Procurement

Building a Responsible Management Foundation■Recycling of Confidential Documents
There has been an increase in cases requiring information

Utilizing these facilities, the confidential documents

security concerns for companies’ confidential documents,

produced by the SG Holdings Group companies, undergoetc. in the disposal of documents. To address this,dissolution treatment together by SG Moving to realize

Sagawa Express provides the Confidential Document

unified management ensuring security in addition to

Recycling Transport Service, which is a transport service

realizing closed loop recycling through complete recycling.

maintaining confidentiality throughout the entire process

These are being connected to initiatives to preserve thefrom receiving documents until they are dissolved.

environment.

Furthermore, SG Moving has introduced a specialized
vehicle capable of performing shredding and dissolving
documents. In a first for the moving industry, the On-site
Confidential Document Dissolution Service was launchedin April 2014. The confidential documents dissolved byusing these services are recycled as items such as toilet
paper.
Currently, SG Moving is increasing business partnerships
with confidential document dissolution treatment facilities
to enable business operations over a wide area, andbuilding confidential document dissolution treatment
facilities (carry-in yards) nationwide to further expand its
businesses.
SG Moving’s truck for dissolving documents (4-ton truck)■Enhancement of Reverse Solutions
The SG Holdings Group is contributing to theconstruction of a recycling-oriented society by providing
a variety of “reverse solutions” that utilize reverse
logistics.
Home Appliance Repair Center at the Sagawa Tokyo
Logistics Center is also involved in a Home ApplianceRepair Service that enables Sagawa Express to offer a
one-stop solution from the pick-up to the actual repair
and return of devices.
In addition, the company has been providing nationwide

Home Appliance Repair Centerat the Sagawa Tokyo Logistics Center

Home Pick-up Services for Used Small Home
Appliances based on the Home Appliance Recycling Act
since 2015 as an outsourcing business from ReNet
Japan Inc.

51

Achieving a Safe and Secure Transportation Society

Promoting Environmentally Friendly Business Activities Building an Organization of Diversity and Inclusion

Creating New Value Through Comprehensive Logistics Solutions

Contributing to Communities

Promoting Sustainable Procurement

Building a Responsible Management Foundation

Initiatives Aimed at the Preservation of Biodiversity
Enlightenment Activities■Environmental Awareness for the Next Generation
Nature Experience Training
Sagawa Express is continually holding nature experience training
at the Takao 100-Year Forest (in Tokyo) for children who will
represent the next generation to learn about connections between
nature and people through experiences in undeveloped
woodlands. Around 300 children participated in fiscal 2017.
Elementary school students learned about living organisms
through natural experiences and felt the appeal of nature andimportance of diversity of living organisms. High school students
and university students developed the ability to think forthemselves and problem-solving skills by understanding thecoexistence of nature and people, and the importance of
undeveloped woodlands through experiences preserving
undeveloped woodlands in a total of six programs. These
initiatives were recognized as a “Place for Experience
Opportunities” based on the Law for Promotion of Environmental
Education from Hachioji City, Tokyo. This was the first such
example in Tokyo.
Furthermore, the SG Holdings Group is implementing ricecultivation experience activities for the purpose of helping children
realize the blessings of nature, the importance of food and the rich
ecosystem growing in rice paddies. In Moriyama in Shiga
Prefecture, employees, their families and local residents haveexperienced traditional rice making such as the planting,harvesting and drying of the rice on racks since 2007. We are also
involved in activities to support the Fish Nursery Paddy Field
Project promoted by Shiga Prefecture, where “nigorobuna” (roundcrucian carp), a type of fish indigenous to Lake Biwa, are raised inrice fields and then released.

Experiencing the preservation of undeveloped woodlands

Rice cultivation experience activity

On-demand Classes on the Environment
Sagawa Express provides on-demand classes on the environment
for elementary schools and kindergartens. These were held 261
times nationwide with around 21,000 participants in fiscal 2017.
Eco activities and forest preservation activities by Sagawa
Express through its logistics business were introduced withquizzes and practical exercises for package delivery for the
purpose of helping children realize the importance ofenvironmental preservation based on the theme of“environmentally friendly ways to carry packages.” Furthermore,children became more familiar with nature through experiencessuch as making name plates from thinned wood sourced from
Sagawa forests.

52

On-demand class on the environment

Achieving a Safe and Secure Transportation Society

Promoting Environmentally Friendly Business Activities Building an Organization of Diversity and Inclusion

Creating New Value Through Comprehensive Logistics Solutions

Contributing to Communities

Promoting Sustainable Procurement

Building a Responsible Management Foundation

Eco Art Contest
SG Holdings and Sagawa Express have held the
National Eco Art Contest (with backing from the Ministryof the Environment) since 2014 with the goal of raisingawareness about the environment in the next
generation. In 2017, we received 14,197 entries of works
around the theme of protecting everyone's Earth. 56 ofthese pieces received awards with two selected as
outstanding works (the Environment Minister’s Award).
The outstanding works were used for the decoration
design on 80 Sagawa Express trucks driven mainly inmajor metropolitan areas throughout Japan since March2018.

Outstanding work by lower grades of elementary school:“Beautiful forever”

Decorated truck

Outstanding work by upper grades of elementary school:■Environmental Awarenessfor the Employees“The future of the globe will open up if we watch it”

Environmental Action
The SG Holdings Group is implementing “SG HoldingsGroup Environmental Action” establishing activity
themes related to the environment every month andfocusing on addressing these for the purpose of raising
environmental awareness among employees. In fiscal
2017, the entire Group engaged in the reduction ofenvironmental impact through initiatives such as
power-saving campaign and reduction of the use ofphotocopy paper.

Poster for raising environmental awareness53

Achieving a Safe and Secure Transportation Society

Promoting Environmentally Friendly Business Activities Building an Organization of Diversity and Inclusion

Creating New Value Through Comprehensive Logistics Solutions

Contributing to Communities

Promoting Sustainable Procurement

Building a Responsible Management Foundation

Environmental Preservation Activities■Forest Preservation
The functions of forests are indispensable to the life of

2011. These are utilized for the reduction of CO2 emitted

animals and plants such as the absorption of CO2,

during transport by Sagawa Express and inprevention of erosion, cultivation of water resources andenvironmental events in which the Group participates.

the preservation of biodiversity. Demand for domestic
timber is decreasing in Japan due to liberalization of

At the Sagawa Express’s Takao 100-Year Forest (intimber importer while the country offers an extremely richTokyo), activities for the coexistence of people andwealth of forest resources. The forest industry tasked

nature, to restore and preserve undeveloped woodlands

with preserving these forests is faced with an extremelythat can be sustained for 100 years, began in 2007. The

severe environment. As a result, we are facing

restoration of undeveloped woodlands in fields rich withchallenges as many forests are unable to manifest their

the splendor of nature, valuable for mitigating global

conventional functions because sufficient management

warming and where people and nature can exist in

cannot be done such as thinning to weed out trees at theharmony, carried out by the cooperative efforts ofappropriate time.

numerous parties including citizens, universities andother educational institutions, academic experts, andSagawa Forestry has a total of 703 hectares of Sagawa

NPOs, are symbolized by the phrase “100 years”, with

Forests in seven locations in Kochi and Tokushima

the project proceeding on an unhurried, natural time

prefectures in Shikoku. Working with local forest

scale.

associations, the company performs preservation
activities such as thinning to grow healthy forests thatabsorb CO2 by soaking up much sunlight. The thinning

Area of the Forests Owned by the SG Holdings Group*

trees are used for applications such as construction

Equivalent to approximately

160

materials and biomass fuel. We aim to conduct businessactivities that lead to the vitalization of local communities
and the creation of jobs by managing a healthy forest
cycle.

Tokyo Domes*Calculated using a total of 753 hectares combining the forests

Furthermore, 5,440 tons of carbon offset credits were

owned by Sagawa Express and Sagawa Forestry

obtained from the J-VER Certification Committee in

Tosayamada Forest

54

Achieving a Safe and Secure Transportation Society

Promoting Environmentally Friendly Business Activities Building an Organization of Diversity and Inclusion

Creating New Value Through Comprehensive Logistics Solutions

Contributing to Communities

Promoting Sustainable Procurement

Building a Responsible Management Foundation

Conclusion of “National Park Official Partnership”
with the Ministry of the Environment
In March 2017, SG Holdings concluded a “National Park
Official Partnership” with the Ministry of the Environment
in a first for the logistics industry. The purpose of the
program is for the Ministry of the Environment andcompanies/organizations to cooperate with each other tocommunicate the beautiful scenery and appeal ofnational parks to the world, expand understanding ofenvironmental preservation among people in Japan andabroad, and also promote the vitalization of regions
where national parks are located. Specific activities
include promoting easy visits to national parks by placing
delivery counters for inbound tourists to Japan in airports
nearest to national parks and communicating the appealof national parks through the Group’s websites.

Then Minister of the Environment Koichi Yamamoto (left)
and SG Holdings Chairperson and CEO Eiichi Kuriwada (right)

Details of Main Initiatives
Period: Until December 31, 2020
1. Support of logistical aspects through the provision of
optimal transport methods
Consideration of placement of delivery counters in
airports nearest to national parks aimed at improving
convenience for overseas users visiting Japan bypromoting “Hands-Free Travel”
2. PR and communication of appeal utilizing websites
and other media
Creation of dedicated pages for communicating theappeal of national parks on the Group’s websites

Official partner logo mark3. Promotion of the 3Rs.*
All Group companies will further promote the 3Rs in
business activities, contributing to a sustainable
society.
4. Environmental education initiatives
We will provide environmental education on reducing
environmental impact in addition to preservation andregeneration of the natural environment to all Group
employees in an effort to raise awareness ofenvironmental issues.
5. Environmental communication initiatives
We will endeavor to provide active disclosure with theaim of achieving mutual understanding with local
communities, and broadly engage in environmental
communication to children who will be responsible forthe next generation.
*The 3Rs refer to Reduce, Reuse and Recycle.

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Achieving a Safe and Secure Transportation Society

Promoting Environmentally Friendly Business Activities Building an Organization of Diversity and Inclusion

Creating New Value Through Comprehensive Logistics Solutions

Contributing to Communities

Building a Responsible Management Foundation

Environmental Preservation Activities at Expolanka(Sri Lanka)●Plan for planting 50,000 trees
Expolanka Freight (EFL) commits to plant over 50,000
trees in five years. Here is an attempt to give our children
a little luxury of nature which we have been blessed to live
through. This way EFL is contributing towards thesustainability of this one and only planet by fulfilling UN
SDG of Climate Action.

●“Light bulb campaign” on World Environment Day
In an ongoing effort to celebrate the World Environment
Day, EFL gave away free LED bulbs to employees andthe communities surrounding the EFL Campus in
Orugodawatta, in exchange for incandescent bulbs. Thiswas conducted consecutively during the past three years
and the campaign has resulted in the distribution of 6,000
LED bulbs in total to date.

56

Promoting Sustainable Procurement

Achieving a Safe and Secure Transportation Society

Promoting Environmentally Friendly Business Activities Building an Organization of Diversity and Inclusion

Creating New Value Through Comprehensive Logistics Solutions

Contributing to Communities

Promoting Sustainable Procurement

Building a Responsible Management Foundation

Awards and Certification/Accreditation■Awards
Minister of the Environment Award at the “Seventh Carbon Offset Awards” (Sagawa Express)
Ecological Life and Culture Organization Chairman’s Award in the “Sustainable Society Creation
Awards” (Sagawa Express)
Sagawa Express was recognized by the ecological lifeand culture organization for its initiatives aimed at
improving the efficiency of transportation and delivery,measures taken and creativity aimed at sustainable
development, and coordination with local communities.

Hiroyuki Uchida, Sagawa Express Director responsible
for General Affairs and CSR (left)■Certification/Accreditation
ISO14001 Environmental Management System●Sagawa Express (Tokyo Head Office)Covering the oversight and management of freighttransportation services, Sagawa Express sets goals
according to the company’s main business andcontinually verifies the level of achievement of these.
Transition made to the 2015 version in July 2018.
●Expolanka Freight (Sri Lanka)

ISO14001 Certificate

ISO14064 Standard for Quantification, Reporting and Verification of Greenhouse Gas Emissions
and Removals●Expolanka Freight (Sri Lanka)

57

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Promoting Environmentally Friendly Business Activities Building an Organization of Diversity and Inclusion

Creating New Value Through Comprehensive Logistics Solutions

Contributing to Communities

Promoting Sustainable Procurement

Building a Responsible Management Foundation

EcoAction 21●SG Motors
Acquired in all business sites (certification registration
period: November 22, 2017 - November 21, 2019).
The company established an environment in which all
employees voluntarily and actively engaged inenvironmental activities, and implemented initiatives
such as (1) reduction of electric power used byswitching lighting to LEDs, (2) effective utilization ofwater resources by implementing systems utilizing
rainwater in maintenance plants, and (3) utilization ofwaste oil for floor heating in plants and road heating
Certificate

within the premises to recycle resources.

●SG Moving
Certification was obtained by the Head Office and the
Kitakanto Sales Office (certification registration period:
March 1, 2018 - February 29, 2020). To obtain thecertification, the company engaged in activities
matching the content of its business such as (1)collection of environmental impact data according to
guidelines, (2) significant reduction of fuel with highCO2 emissions by improving the efficiency of vehicle
assignment utilizing an independently developed
vehicle assignment board, and (3) shifting to the use
Certificate

of public transportation by sales personnel.
*EcoAction 21: Guidelines drawn up by the Ministry of theEnvironment for the purpose of ensuring all business operators
effectively and efficiently engage in environmental initiatives.

58

Achieving a Safe and Secure Transportation Society

Promoting Environmentally Friendly Business Activities Building an Organization of Diversity and Inclusion

Creating New Value Through Comprehensive Logistics Solutions

Contributing to Communities

Promoting Sustainable Procurement

Building a Responsible Management Foundation

Environmental Data
Trends in CO2 Emissions [the Group]■Sagawa Express ■Total for all other Group companies (domestic) ■Overseas companies(t-CO 2)
480,000

Overseas
9,275

440,000

Overseas
1,527

Overseas
6,830

45,91844,80942,417393,862

387,271

391,965

397,031

378,788

2013

2014

2015

2016

2017

400,000

44,667360,000
320,000
280,000
240,000
0(Fiscal year)[Scope]2013

Only Sagawa Express

2014

All domestic Group companies (excluding Sagawa Humony)2015 - 2016 All domestic Group companies (excluding Sagawa Humony), Overseas: Expolanka Freight (Sri Lanka)
2017

All domestic Group companies (excluding Sagawa Humony), Overseas: Expolanka Freight (Sri Lanka), SG Sagawa Ameroid*Overseas Group companies are tallied using separate rules from the tallying rules for domestic companies

Trends in CO2 Emissions [Sagawa Express](Units: t-CO2)
Gasoline

Diesel(including high octane
and bio gasoline)

Natural gas

Electric power

Total

Fiscal 2013

195,699

35,90540,936

121,322393,862

Fiscal 2014

188,729

36,33839,940122,264

387,271

Fiscal 2015

189,343

36,84840,469125,305

391,964

Fiscal 2016

194,762

38,18039,786124,304

397,031

Fiscal 2017

197,067

38,80537,393

105,523

378,788*Decimals rounded to the nearest whole number

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Achieving a Safe and Secure Transportation Society

Promoting Environmentally Friendly Business Activities Building an Organization of Diversity and Inclusion

Creating New Value Through Comprehensive Logistics Solutions

Contributing to Communities

Promoting Sustainable Procurement

Building a Responsible Management Foundation

CO2 Emissions Throughout the Supply Chain (Fiscal 2017) [Sagawa Express](Units: t-CO2)
2013

2014

2015

2016

2017

Scope1Company-owned vehicles

272,540

265,007

266,659

272,728

273,265

Scope2Company-owned facilities

121,322

122,264

125,305

124,304

105,523

Scope3

Other supply chain

754,916

782,632

769,595

770,737

806,074*Decimals rounded to the nearest whole number*The above CO2 emissions have been verified by a third-party organization.

Greenhouse Gas Emissions Verification Report60

Achieving a Safe and Secure Transportation Society

Promoting Environmentally Friendly Business Activities Building an Organization of Diversity and Inclusion

Creating New Value Through Comprehensive Logistics Solutions

Contributing to Communities

Promoting Sustainable Procurement

Building a Responsible Management Foundation

Trends in the CO2 Emissions per Unit of Operating Revenue [the Group]■Emissions per Unit of Operating Revenue (g-CO2)

54.00
52.00
50.00
48.00
52.02

46.00
44.00

46.75

46.25

2016

2017

42.00
2015

*CO2 emissions per unit =(Fiscal year)

Total CO2 emissions
Group consolidated operating revenue[Scope]2015 - 2016 All domestic Group companies (excluding Sagawa Humony), Overseas: Expolanka Freight (Sri Lanka)
2017

All domestic Group companies (excluding Sagawa Humony), Overseas: Expolanka Freight (Sri Lanka), SG Sagawa Ameroid*Overseas Group companies are tallied using separate rules from the tallying rules for domestic companies

Trends in CO2 Emissions Per Package Delivered [Sagawa Express]■CO2 Emissions per Unit (g-CO2) ■(Emissions from vehicles)

350
310.8

306.7

310.2

314.3

(215.1)(209.9)(211.1)(215.9)(212.3)

2013

2014

2015

2016

2017

300

294.3

250
200
150
100

*CO2 emissions per unit =Total CO2 emissions
Number of packages delivered + number of letters delivered (10 letters converted into 1 package)*Calculated based on fuel and electric power consumed by Sagawa Express.
*Emissions from vehicles are shown in parentheses.

61(Fiscal year)

Achieving a Safe and Secure Transportation Society

Promoting Environmentally Friendly Business Activities Building an Organization of Diversity and Inclusion

Creating New Value Through Comprehensive Logistics Solutions

Contributing to Communities

Promoting Sustainable Procurement

Building a Responsible Management Foundation

Trends in Introduction of Environmentally Friendly Vehicles [Sagawa Express]■Natural gas trucks ■Hybrid vehicles ■Post-new long-term regulation compliant vehicles ■Electric vehicles
16(Vehicles)
9,000(Vehicles)

16

35,000Total number of vehicles
16

7,500

6,000

4,500

30,00013
24,47024,351

24,37924,517

1,311

2,801

3,990

5,073

94

91

93

25,15325,0006,266
305

20,000595
15,000

3,000
3,981

4,019

3,981

3,778

3,412
10,000

1,500

0

0
2013

2014

2015

2016

2017
(Fiscal year)62

Achieving a Safe and Secure Transportation Society

Promoting Environmentally Friendly Business Activities Building an Organization of Diversity and Inclusion

Creating New Value Through Comprehensive Logistics Solutions

Contributing to Communities

Promoting Sustainable Procurement

Building a Responsible Management Foundation

Effect of Modal Shift (Fiscal 2017)[Sagawa Express]

Per unit CO2 emissions by transport organization(g-CO2/ton-kilometer) [Sagawa Express]

Reduction in Number of Large Trucks(converted into 10t trucks)

97,094 trucks

Reduction of CO2 emissions

147,987t-CO2

Commercial-use trucks

Ships

Railways

39

21

240

*Calculated based on the per unit CO2 emissions of freightSource: Ministry of Land, Infrastructure, Transport andtransport organizations

Tourism website (fiscal 2016)*CO2 reduction effect calculated based on the environmental
impact (theoretical value) if modal shift did not take place

Results of Modal Shift (Fiscal 2017) [Sagawa Express]
Railway Transport (Super Rail Cargo)
Usage Section

Reduction in Number of Large Trucks (converted into 10t trucks)

Tokyo Freight Terminal Station

Ajikawaguchi Station

8,170

Ajikawaguchi Station

Tokyo Freight Terminal Station

8,200

Total

16,370Railway Transport (other than Super Rail Cargo) [Sagawa Express]
Main Usage Section

Reduction in Number of Large Trucks (converted into 10t trucks)

Fukuoka Freight Terminal Station

Tokyo Freight Terminal Station

4,895

Sumidagawa Station

Sapporo Freight Terminal Station

7,219

Tokyo Freight Terminal Station

Fukuoka Freight Terminal Station

9,788

Other than the above

13,883

Total

35,785

Sea Transport (Ferry) [Sagawa Express]
Main Usage Section

Reduction in Number of Large Trucks (converted into 10t trucks)

Aomori Port

Hakodate Port

2,516

Hachinohe Port

Tomakomai Port

12,327

Tomakomai Port

Hachinohe Port

10,771

Hakodate Port

Aomori Port

1,059

Other than the above

18,266

Total

44,93963

Achieving a Safe and Secure Transportation Society

Promoting Environmentally Friendly Business Activities Building an Organization of Diversity and Inclusion

Creating New Value Through Comprehensive Logistics Solutions

Contributing to Communities

Promoting Sustainable Procurement

Building a Responsible Management Foundation

Every year since 2009, Sagawa Express has aimed topartially due to the switch to new cool boxes. The entire

reduce the total amount of industrial waste compared toGroup will continue to promote the 3Rs, reduce waste

the previous fiscal year based on the Wasteand separate waste.

Management and Public Cleansing Act. In fiscal 2017,

Amount of waste produced per location =this amount was 117.8% of the previous year’s level

Approx. 4.4t (Total waste produced ÷ number of locations)

Amount of Waste Produced (Sagawa Express in Fiscal 2017)
Glass, concrete and ceramic waste (including fluorescent tubes)

Other

161t

18t

Sludge222t
Wood waste

234t

Total
3,417tMixed waste

472t

Waste plastics

1,767tMetal waste

543t

Trends in Water Usage [the Group]■Sagawa Express ■Total for all other Group companies (domestic) ■Overseas(thousand m3)

Overseas
229

1,000

900
255,802800

700

845,336

779,748600

747,809722,516

723,152

2016

2017

0
2013

2014

2015

(Fiscal year)*Figures from fiscal 2017 and thereafter are the amount used by all domestic companies in the SG Holdings Group(excluding Sagawa Humony) and SG Sagawa Ameroid. Figures until fiscal 2016 are only for Sagawa Express

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Achieving a Safe and Secure Transportation Society

Promoting Environmentally Friendly Business Activities Building an Organization of Diversity and Inclusion

Creating New Value Through Comprehensive Logistics Solutions

Contributing to Communities

Promoting Sustainable Procurement

Building a Responsible Management Foundation■Environmental Accounting
Sagawa Express has introduced environmental

investment and performing analysis by project.

accounting with the aim of realizing more effective

In fiscal 2017, the amount of environmental investment

environmental management. Accurately understanding

was approximately 161 million yen, and the amount ofinvestments and expenses related to environmental

environmental expenses was approximately 5,571

measures is useful for setting indicators for future

million yen.

Cost of Environmental Preservation (Units: Millions of Yen) [Sagawa Express]
Category

Main Initiatives(1) Costs within business

1,152

161

1,132

1

4

1

4

214

197

154

215

Treatment of waste materials, saving water, recycling oftires, etc.

1

951

7

913

Introduction of environmental management systems,
environmental advertising, environmental education,
disclosure of environmental information

―

5

―

5

Development of environmentally friendly services

―

―

―

―

―

1

―

1

―

―

―

―

―

4,562

―

4,433

216

5,719

161

5,571

Breakdown

Prevention of air pollution, water pollution and noise(installation of noise barriers, vehicle cleaning facilities, etc.)

2. Cost of preservation Prevention of global warming and destruction of the ozone
layer (introduction of natural gas trucks, solar powerof the global
generation systems, power-saving devices, etc.)
environment
3. Cost of resource
recycling

Fiscal 2017

216

area
1. Cost of pollution
prevention

Fiscal 2016

Environmental Environmental Environmental Environmental
Investment
Expenses
Investment
Expenses(2) Up and downflow cost(3) Cost of management
activities(4) Cost of research anddevelopment(5) Cost of social activities(6) Cost of responding toenvironmental damage(7) Cost of safety measures

Donations to domestic and overseas environmental
preservation organization, awareness activities
Measures against asbestos dust
Vehicle inspections as safety measures, employee
education, awareness activities

Total

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Promoting Environmentally Friendly Business Activities Building an Organization of Diversity and Inclusion

Creating New Value Through Comprehensive Logistics Solutions

Contributing to Communities

Promoting Sustainable Procurement

Building a Responsible Management Foundation

Effects of Environmental Preservation [Sagawa Express]
Environmental Performance Indicators

Fiscal 2016

Effect of Environmental Preservation(Fiscal 2017 Results - Fiscal 2016 Results)

Fiscal 201775,48976,382893

Kerosene (kl)

155

157

2

Heavy oil (kl)

120

111

-9

Natural gas (km3) (including biogas)

17,88816,814-1,074 *1

City gas (km3)

1,020

1,043

23 *1

Propane (kg)

182,680

183,939

1,259 *2

Gasoline (kl) (including high octane)

16,457

16,726269

211.76 million

206.10 million-566

Water (clean water) (km3)

723

723

0

Water (sewage) (km3)

488

476

-12

Industrial water (clean water) (km3)

3

3

0

Industrial water (sewage) (km3)

3

3

0

Number of PET bottles recycled

1,127,181

1,090,063-37,118 *3

Diesel (kl)Electricity (kWh)The effects of environmental preservation were calculated based on the net change compared to fiscal 2016.
*1 Figures for natural gas and city gas were tallied using the figures shown on invoices from suppliers without making temperature orpressure corrections.
*2 The figures shown on invoices from suppliers (m3) were converted into weight at 2.07kg/m3.
*3 The effect believed to have contributed to the recycling of PET bottles by using PET bottles as the raw material for uniforms in fiscal
2017 was converted into the number of PET bottles. (Value for conversion: Total weight (approx. 175g for short sleeves and approx.
240g for long sleeves) x number of uniforms x amount of polyester used (cotton material 65% / sweat absorption material 100%) x 1(100% recycling rate of polyester used) ÷ 30 (30g per 500ml PET bottle))

Tallying Method●Tallying period: Fiscal 2017 (March 21, 2017
- March 20, 2018)●Acquisitions of assets valued at 200,000 yen
or more are recorded as investments.

●Scope: Sagawa Express Co., Ltd.
(non-consolidated)●Environmental facilities are depreciated overfour years by the straight-line method.

●Guideline used as a reference:
Environmental Accounting Guideline, 2005
Edition, Ministry of the Environment●Personnel expenses are calculated based on
the number of hours of environmental activities
x the average personnel expenses of Sagawa
Express.

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Achieving a Safe and Secure Transportation Society

Promoting Environmentally Friendly Business Activities Building an Organization of Diversity and Inclusion

Creating New Value Through Comprehensive Logistics Solutions

Contributing to Communities

Promoting Sustainable Procurement

Building a Responsible Management Foundation

Building an Organization ofDiversity and Inclusion
Policy68P

Systems

71P

Initiatives

73P

Awards and Certification/Accreditation 89P
Employee Data

92P

■Awareness of Social Challenges■Impact

In Japan, due to a shrinking workforce resulting from adeclining birthrate and an aging population, thepromotion of work style reforms has become a social
challenge. Also, in the context of economic activity
expanding globally and the United Nations promulgating
Sustainable Development Goals (SDGs), including

Number ofConsolidated Employees

gender equality, companies are increasingly being asked
to undertake initiatives fostering respect for humanApprox.

90,000rights. The SG Holding Group, as an enterprise with
90,000 employees working worldwide, has developed
new employment and labor systems incorporating
diversity and inclusion as well as work-life management,
and we are promoting the respect for human rights
throughout its entire value chain.

67

Achieving a Safe and Secure Transportation Society

Promoting Environmentally Friendly Business Activities Building an Organization of Diversity and Inclusion

Creating New Value Through Comprehensive Logistics Solutions

Contributing to Communities

Promoting Sustainable Procurement

Building a Responsible Management Foundation

Policy■Approach
The SG Holdings Group believes that it is people who
make the sustainable growth of a business possible. The
recruitment of diverse human resources translates into
the ability to offer diverse services that meet the needsof customers. For that reason, we consider people thecritical resource of our business and have formulated agroup-wide personnel vision and personnel system
based on that. We strive to create a foundation ofsystems and culture that enable each and every

employee to capitalize on his or her individuality, findfulfillment in what they do while working healthfully andsecurely.
In 2016 we formulated the SG Holdings Group’s Human
Rights Policy in order to raise awareness of humanrights and are working to prevent harassment.
We will continue to place priority on diversity andinclusion and apply the PDCA cycle in our hiring,training, placement, and evaluation practices.

■Human Rights Policy
commitment both inside and outside of the Group.
This policy articulates in very concrete terms our conceptof human rights based on the SG Holdings Group
Charter of Corporate Conduct and Code of Ethics andConduct.

As our business accelerates globally, the SG HoldingsGroup is committed to corporate policy that respects thehuman rights of all of our stakeholders. For that reason,
we established the SG Holdings Group’s Human Rights
Policy to broadly declare and raise awareness about our■Preamble
The SG Holdings Group respects andadvocates the Universal Declaration of Human
Rights and its goals in regard to human rights.
This policy expresses in detail our stance onhuman rights based on our Charter ofCorporate Conduct and Code of Ethics andConduct.

forced labor. In addition, we will request ourbusiness partners to also prohibit child andforced labor.
■Avoidance of Complicity in Human Rights
Abuse
We will not be complicit in the abuse of humanrights. In addition, we will strive to avoid
complicity through receiving benefits or thesilent condoning of complicity.

■Respect for Everyone's Human Rights
We will not discriminate on account of gender,
race, religion, nationality, ethnicity, politicalopinion, sexual orientation (such as LGBT),
marital status, pregnancy, childbirth, medical
history, disability, illness, or any otherdiscriminatory basis.

■Response to Occurrence of Abuse
We will determine countermeasures to be
implemented in the event of human rights
abuse. We will protect the victim of abuse andthe informer, and work to promptly and fairly
resolve the situation.

■Legal Compliance
We will comply with all laws in each country
and region.
In countries or regions that do not have strictlaws, we will comply with international rules.

■Safety and Health
We will prioritize safety in the workplace andpromote the health of all employees.
■Transparency and Promotion of AwarenessWe will report the activities of the SG HoldingsGroup with transparency.
We will continue to promote awareness of the"SG Holdings Group's Human Rights Policy"
among our employees and will request ourbusiness partners to respect and enforce
human rights.

■Prevention of Human Rights Abuse
We will build and continue to implement asystem for “Human Rights Due Diligence”* toprevent occurrences of human rights abuse.
■Prohibition of Child Labor and Forced Labor
We will prohibit work by children under theminimum working age designated by the lawsin each country or region. We will also prohibit*Process to recognize, prevent, and respond to
any negative impacts on human rights

68Achieving a Safe and Secure Transportation Society

Promoting Environmentally Friendly Business Activities Building an Organization of Diversity and Inclusion

Creating New Value Through Comprehensive Logistics Solutions

Contributing to Communities

Promoting Sustainable Procurement

Building a Responsible Management Foundation■Personnel Vision
The SG Holdings Group relies on all of its employees toGroup Managers* (GMs), who comprise theoperate independently and in 2012 formulated the SG

management class, as influencers to foster theHoldings Group Personnel Vision with the goal of

penetration of this vision and are working tomaximizing the potential capacities and individuality ofcommunicate new values to all employees.

each employee. The Personnel Vision describes clearly
an organizational culture aimed at developing human*Group Managers means employees of general

resources and diversity of work styles and emphasizes

manager rank who comprise the management of

the importance of each employee working withgroups.

autonomy. In addition, since 2013 we have positioned

Shining Individuality
Fair Field

Continually seize equaland fair opportunities toproactively and boldly
take on new challenges
without fear of failure.

Higher Motivation
Reward people forwork toward goals,
achievement, andsuccess.

Connection Mentality (Spirit)

Shining Individuality,
A Connection Mentality,
and the Widening World- Challenge for Innovation Greater Skills

Time Management

Achieve maximum
performance within a
set time frame to create
added value.

We want each person to further theirindividuality, hone that individuality, andshine more than anyone else.

Take responsibility for
one’s role and put
passion into continuous
learning anddevelopment to growas an individual.

Everyone should share a common spirit
and build solidarity. We will seek tomove continually toward a new future
without ever forgetting the “hikyaku no
kokoro” (spirit of Edo-era express
messengers), which is the cornerstoneof the Group’s foundation.

Widening World
We will take a broad view by
connecting with a variety of
personalities to expand our potential.
We will seek to foster new values whichhold true not only in Japan but
throughout the world.

69

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Promoting Environmentally Friendly Business Activities Building an Organization of Diversity and Inclusion

Creating New Value Through Comprehensive Logistics Solutions

Contributing to Communities

Promoting Sustainable Procurement

Building a Responsible Management Foundation■Fiscal 2017 Goals and Overview
Boundary: Scope of application of goal
Related SDGs: Targets of SDGs (sustainable development goals) closely related to the goal
Results and progress offiscal 2017 initiatives

Fiscal 2017 Goals

KPIs●Respect for the human rights ofworkers throughout the entire
supply chain and provision of asafe and secure work
environment.

●Reduction of overtime
hours compared to theprior year

●1.6% reduction
compared to fiscal
2016●Provide a venue and opportunity
for everyone to develop andflourish equally regardless ofgender, age, handicaps, or otherdiscriminatory factors.

●35% ratio of female
employees (2011 –2020)●Progress in female
employee ratio(2011: 20.6%→2017:30.6%)●10% ratio of female
management personnel(2011 – 2020)●Progress in female
management ratio(2011: 1.0% → 2017:
4.2%)●Implementation ofannual D&I* training●D&I training:
Implementation of theDiversity Forum by the
WakuWaku Women’s
Project

Boundary
SagawaExpress●

Japan Overseas

4.7
8.8

●

●

●

●

●

Related
SDGs

●

4.4
5.5
8.5

*D&I: Diversity and Inclusion

70

Achieving a Safe and Secure Transportation Society

Promoting Environmentally Friendly Business Activities Building an Organization of Diversity and Inclusion

Creating New Value Through Comprehensive Logistics Solutions

Contributing to Communities

Promoting Sustainable Procurement

Building a Responsible Management Foundation

Systems■Organization
At the SG Holdings Group, which employs about 90,000

Strategy Department. While its Human Resources

people, the SG Holdings Human Resources Department

Department is in charge of administration and education,

takes the lead in developing administrative systems inthe Human Resources Strategy Department focuses oncollaboration with the human resources unit in each

employer branding and diversity promotion to create andGroup company. Sagawa Express, the core enterprise ofdevelop systems for attracting more diverse humanthe Group, has established a new Human Resources

resources.

■WakuWaku Women’s Project
To promote the participation of female employees

administrative and business departments, create athroughout the Group, we are continuing the activities ofvenue where business ideas from a woman’s

the WakuWaku Women’s Project across the entire

perspective are actively discussed. In addition, toGroup. With the SG Holdings Group Human Resourcesenhance motivation, the WakuWaku Award has been

Department serving as the secretariat, a coordinator isestablished to encourage the Group companies toappointed at each Group company. Coordinatorscompete with each other in creating business concepts

discuss and share initiatives and progress to increase

and demonstrating achievements based on the theme ofparticipation by female employees at each company

women’s participation. Once a year the Group also holds

through coordinator meetings held two or three times aa Diversity Forum inviting outside experts in order toyear and at a general meeting held once a year. Thesefurther understand Diversity and Inclusion (D&I) among

meeting, with representatives from both theexecutive management and middle managers.

71

Achieving a Safe and Secure Transportation Society

Promoting Environmentally Friendly Business Activities Building an Organization of Diversity and Inclusion

Creating New Value Through Comprehensive Logistics Solutions

Contributing to Communities

Promoting Sustainable Procurement

Building a Responsible Management Foundation■Group-wide HR Systems
Beginning in September 2012, the SG Holdings Group

competitive human resources by effectively mobilizing

initiated group-wide human resources systems aimed at

employees in a way that leads to maximum

leveraging human resources across the Group’s

self-development.

companies in Japan. The goal is to develop highlyGroup-wide Human Resource Systems (in Japan)

1.

Function-based Grade Level System

4.

GS (Group Staff) Skills Development System

2.

M/A (Manager/Associate) Promotion

5.

Rotation System

Evaluation System
3.

GM (Group Manager) Human Resources
System■Monitoring
In the context of promoting stakeholder management,

improvements in areas where there was relatively low

we conduct annual employee attitude surveys with thesatisfaction.

goal of understanding group employee attitudes,

We believe that incorporating the views of employees

identifying issues, and making improvements. The

as stakeholders into management decisions

survey, which covered approximately 50,000 Group

contributes to improving the overall level of employee

employees in fiscal 2017, showed that the overall levelsatisfaction, in turn, translating into greater customerof employee satisfaction was maintained together withsatisfaction. We are committed to continuing thisevidencing a positive trend on individual issues. On theapproach as a means of promoting a positive cycle ofbasis of these results, each Group company isemployee and customer satisfaction.

developing plans for implementing initiatives for72Achieving a Safe and Secure Transportation Society

Promoting Environmentally Friendly Business Activities Building an Organization of Diversity and Inclusion

Creating New Value Through Comprehensive Logistics Solutions

Contributing to Communities

Promoting Sustainable Procurement

Building a Responsible Management Foundation

Initiatives■Flexible, Diverse Work Styles
The SG Holdings Group is expanding various systems to

the promotion of diverse work styles will make it easier

allow employees themselves to practice work-life

to attract new talent and will also contribute to the

management and choose one among flexible andcorrection of long work hours.

diverse work styles that best fits them. We believe that

●Night Delivery
Sagawa Express has begun an initiative known as “Nightnighttime hours when people are most likely to be at

Delivery” utilizing delivery supporters (mostly

home. This initiative is expected to make possible a

professional parcel delivery drivers on service contract toreduction in nighttime deliveries by Sales Drivers® andSagawa Express) for making deliveries during limited

contribute to controlling their long work hours.

●Introduction of the Advance Collection Reservation Acceptance System
In April 2018, Sagawa Express changed its policy of

The prior-day reservation test resulted in contributing toaccepting telephone and online requests for collections

improved delivery service quality. With the introduction

on Sundays, holidays, and during certain periodsof this system, we will be aiming for further improvement

determined by Sagawa Express.* In a new system,in service quality and in employees’ work environment.

these collection requests are accepted until the day prior
to the desired pickup day. This policy change was based*The certain periods determined by Sagawa Express areon the results of an initial trial run of the system inassumed to be the Bon holidays, and year-end andDecember 2017, a time when there was a great volume

New Year's holidays.

of shipments due to Christmas and year-end gift giving.

*This does not apply to regularly scheduled collection.

●Four-Day Work Week
Sagawa Express has begun, on a trial basis, to hirethat hiring from this new range of potential workers,

sales drivers who work a four-day week and are allowed

which in the past was not able to apply for employment,

to hold second jobs. This new system was rolled out inwill lead to a more inviting work environment for

April 2017 for new hires in certain locations. It is aimed

employees with shorter working hours and a higher

to meet the needs of people who find it difficult to work atake-up rate of annual paid leave.

five-day week because of a side job, attending school,raising a child, caregiving or other factors. It is hoped73

Achieving a Safe and Secure Transportation Society

Promoting Environmentally Friendly Business Activities Building an Organization of Diversity and Inclusion

Creating New Value Through Comprehensive Logistics Solutions

Contributing to Communities

Promoting Sustainable Procurement

Building a Responsible Management Foundation●Introduction of Telework
The SG Holdings Group is promoting telework as one of

SG Systems introduced an online video telephone

the diverse work styles. Currently four companies* havesystem as a means of communication between

introduced the system, including working from home. In

work-from-home employees and other employees withaddition, being considered by other companies, thethe aim of improving work-life balance and labor

adoption of telework will gradually be expanding.

productivity. At the same time, in order to also enhance
the security environment, SG Systems employs remote*SG Holdings, SG Moving, SG Systems, and SG Expert

desktop tools and has connected the PC used bywork-from-home employees to the cloud so that

For example, in fiscal 2017 SG Holdings recruited

information does not remain at their location. From Juneapplicants and conducted a two-month trial of telework.

2017, SG Systems initiated a full-fledged telework

After reviewing the results, it began full-fledged adoption

system.

starting from fiscal 2018. This new work style has been

Starting from September 2017, SG Moving also

well received with the participants in the trial. They

introduced a work-from-home system and is promoting

commended that having extra time instead of commuting

its use as a tool for boosting employee energy andto work was appreciated by their families, and that theyenthusiasm in the context of changes in their life stage

were better able to focus on their work because theyand circumstances.

were freed from having to answer the phone.

●Delivery Mate
Sagawa Express is proposing a work style called

rate per parcel. The point of the program is that you can“Delivery Mate,” for which registrants enter into a service

work at your own pace by selecting the times and days

contract with Sagawa Express. They work on athat suit you best rather than working shifts atpiecework basis and the pay is based on the contract

predetermined times as in most part-time jobs.

●Logi Shift
Sagawa Global Logistics has introduced the workfrom 2017) and the cumulative number of registrants

program “Logi Shift” for warehousing operations such asalready exceeds 6,000 (an increase of 1,200 from 2017).

inspections and packaging that can be done in free time,

Currently, not only homemakers, but also college

which allows employees to freely choose the day andstudents and vocational school students are being hired

time they want to work. This creates an environment

for the program. Looking ahead, Sagawa Global

where it is particularly easy for part-time employees such

Logistics is hoping to further expand the range ofas homemakers to work. As of July 2018, this program

registrants.

was underway at 41 business sites (an increase of six

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Achieving a Safe and Secure Transportation Society

Promoting Environmentally Friendly Business Activities Building an Organization of Diversity and Inclusion

Creating New Value Through Comprehensive Logistics Solutions

Contributing to Communities

Promoting Sustainable Procurement

Building a Responsible Management Foundation

Column“SG Fielder Introduces Web-Based Interviews”

SG Fielder, a human resources outsourcing

briefing meeting. It can thereby respond to thecompany, introduced a “WEB Interview” system inneeds of job applicants who want to start working

November 2017. This has made it possible toimmediately from even the next day. People withcomplete the entire process from interview to final

multiple jobs or homemakers taking care of

employment registration procedures on thechildren who cannot easily attend registration

Internet using a smartphone or tablet. This system

briefing meetings can now have their interviews at

can shorten the time spent on the hiring andany time. SG Fielder is using digital tools in hiring

registration process, including scheduling an

in its efforts to increase opportunities for peopleinterview and participating in the registration

seeking work.

An Interview inProgress
Scene of Interview form the Hiring Side

Scene of Interview from the Applicant’s Side75

Achieving a Safe and Secure Transportation Society

Promoting Environmentally Friendly Business Activities Building an Organization of Diversity and Inclusion

Creating New Value Through Comprehensive Logistics Solutions

Contributing to Communities

Promoting Sustainable Procurement

Building a Responsible Management Foundation■Promotion of Diversity and Inclusion
Promotion of Participation of Women
The SG Holdings Group works to promote Diversity andof women as managers, creating new business by

Inclusion (D&I) and grow as a company with afemale employees, expanding occupational fields forcompetitive edge which respects diverse values. We are

women, putting the necessary systems in place andactively engaged, in particular, in initiatives to promotetransforming our corporate culture.

the participation of women, such as by active promotion●Women’s Career Support Training
The SG Holdings Group conducts Women’s Career

discussion with executives and group managers. Taking

Support Training led by external instructors for female

hints from the discussions with active female managers,

employees who are management candidates. Roughly

these women also created a vision for their own

70 women participated in the training, which was held

individual careers and action targets to realize thatthree times during fiscal 2017. The women learned thevision.

importance of diversity and business skills through●WakuWaku Women’s Project Activities
The SG Holdings Group conducts the WakuWaku
Women’s Project across the Group with the aim ofpromoting the participation of female employees. In
fiscal 2017, we held the 5th WakuWaku Award to honor
business sites working to create business based on
women’s participation and improve operations. In
addition, we announced the “IKUBOSU [a boss who
understands the needs of caregivers] Proclamation”
aimed primarily at executive management in Japan inorder to foster the active participation of diverse humanresources. We also held the 2017 Diversity Forum withthe aim of increasing understanding of D&I in ourmanagement ranks (GMs). The forum featured an

WakuWaku Awards Ceremony

address by Mr. Tsuneo Sasaki, a well-known leading
proponent of D&I, and also included a workshop forlearning IKUBOSU skills.

Number of New Female Employees
New Graduate
Employees in
Fiscal 2018

76

224

/ 627

Achieving a Safe and Secure Transportation Society

Promoting Environmentally Friendly Business Activities Building an Organization of Diversity and Inclusion

Creating New Value Through Comprehensive Logistics Solutions

Contributing to Communities

Promoting Sustainable Procurement

Building a Responsible Management Foundation●The “1-Hour Meeting”
In order to create a working environment where women

employees at each business site exchanged opinions

can work more easily and with greater enthusiasm, SG

about the topic from the viewpoint and perspective ofMotors held “1-Hour Meetings” for discussing women’s

women. In all, 120 women at 14 stores and twoparticipation in the workplace. All of the female

manufacturing plants participated in fiscal 2017.

●Expanding Occupational Opportunities for Women
The SG Holdings Group actively strives to create anenvironment where women can proactively take up the types ofjobs that have been primarily the domain of men.
Sagawa Express is promoting the introduction of swap body
vehicles which have a detachable body and cargo bed. We
expect this innovation will expand occupational opportunities
for female drivers as cargo loading can be handled separately
by other staff.
Sagawa Express has also established 324 Service Centers(SCs) throughout Japan that perform collection and distribution
using hand carts or bicycles. The non-truck business not onlytranslates into a reduction of CO2 emissions, but also serves tocreate a workplace that is more work-friendly for women.
Women now comprise about 40% of the employees working at

Swap Body Truck
This truck expands driver opportunities because it is a vehicle
that differs from a trailer truck and only requires a large-size
vehicle driver’s license.

SCs.
Taking into consideration ease of use by female employees
who work on-site, SG Motors has adopted lightweight lifts, jibcranes and other lightweight equipment for moving heavy
objects at its body manufacturing facilities. It is also promoting
expanded job opportunities for women through initiatives suchas holding in-house courses on welding operations where
employees can learn by practicing the techniques taught.

Lightweight Lifter

Jib Crane77Achieving a Safe and Secure Transportation Society

Promoting Environmentally Friendly Business Activities Building an Organization of Diversity and Inclusion

Creating New Value Through Comprehensive Logistics Solutions

Contributing to Communities

Promoting Sustainable Procurement

Building a Responsible Management Foundation●“Ladies Moving”— Moving Service by Female Staff
Since 2014, SG Moving has offered Ladies Moving, inwhich female staff assist female customers seeking
moving services.
This service grew out of requests from female customers
who were not comfortable having male staff enter theirrooms and handle their packages during moving.
Organizing and Storage Advisors* offer techniques fororganizing packages prior to moving, to roomarrangement advice to make their new home
comfortable. Combining past moving service with theknowledge and experience of female staff as added
value, SG Moving offer superior moving service geared

The female staff helps relieve every type of anxiety fromquestions about moving to the layout of furniture upon delivery.

to alleviating the concerns of female customers.
At the 6th Quality Championships held by SG Moving
November 2017, a team of three women splendidly won
the champion’s crown. This achievement at theChampionship also served to highlight how the
expansion of the Ladies Moving service has led topromoting a more diverse organization.
*An Organizing and Storage Advisor is a certification
given by the Housekeeping Association, a specified
NPO, to persons who have studied the foundations oforganization and storage of goods in an academic way.

Carefully moving interiors and clothing and customer’s otherprecious possessions with a sensitivity particular to women.

A women’s team won at the 6th Quality Championships.

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Achieving a Safe and Secure Transportation Society

Promoting Environmentally Friendly Business Activities Building an Organization of Diversity and Inclusion

Creating New Value Through Comprehensive Logistics Solutions

Contributing to Communities

Promoting Sustainable Procurement

Building a Responsible Management Foundation

Promoting the Participation of Diverse Human Resources
The SG Holdings Group has diverse human resources
actively working in a wide range of fields. For example,
as of the end of our fiscal 2017, we had over 3,700
foreign nationals in Group companies throughout Japan.
Some Group companies also provide career support forforeign employees returning to their home country. They
are encouraged to continue working at a local subsidiaryof the Group there while taking advantage of their work
experience in Japan.
We also promote continued employment of retirees andare considering new re-employment promotion
strategies that can increase opportunities for actively
leveraging the experience these employees have gained
during the course of their careers.
The Group is also working to create an environment inwhich persons with disabilities can manifest theirindividuality and capacities. We provide opportunities tolearn about the employment of the disabled and ensurethat correct knowledge is disseminated. The ratio of
persons with disabilities employed by the Group in
Japan is now 2.28%.

Group Employment Ratio of Persons with Disabilities

2.28

%

*As of June 2018

●Creating a Work Environment Friendly to Foreign Nationals
can effectively utilize their skills. These efforts to develop
a work environment friendly to foreign mechanics include
offering courses to them on Japanese culture and habits
and training sessions for exchanging opinions. There isalso training for the Japanese staff about effectively
interacting with the foreign mechanics. In this way
foreign mechanics hone their skills through work andtraining, and that in the future they will be able to takecharge of even the most difficult repair work alongside
their Japanese counterparts.

SG Motors employs foreign exchange students who
have studied at auto mechanics technical schools inJapan as auto mechanics.
In fiscal 2018 the number of foreign nationals employed
as automotive mechanics reached 53, or about 10% of
all automotive mechanics.
There is no difference in terms of employment
opportunities between foreign and Japanese auto
mechanics, but cultural and linguistic impediments doexist. Aware of this, SG Motors is working hard to create
an environment where its foreign automobile mechanics●Continuing Employment after Retirement
employment. They continue to work enthusiastically inworkplaces best suited to their respective skills andaptitudes where they can leverage their past experienceand also serve as strong mentors for young employees.
In order to further expand the opportunities forcontinuing work after retirement age, the Group is
working on re-employment promotion programs at eachGroup company.

Each year, the SG Holdings Group holds Pre-Retirement
Seminars for employees in Japan who will reachretirement age the following year to present a concrete
image of post-retirement life. The seminars cover work,
financial planning, the public pension plan, health, andother subjects.
Of the 144 employees who reached retirement age infiscal 2017, 123, or over 80%, opted for continued

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Promoting Environmentally Friendly Business Activities Building an Organization of Diversity and Inclusion

Creating New Value Through Comprehensive Logistics Solutions

Contributing to Communities

Promoting Sustainable Procurement

Building a Responsible Management Foundation●Welcoming Enrollees from Local Youth Support Stations
SG Fielder welcomes registrants from Local Youthworkplaces. During the period, by supporting the youth

Support Stations at its Tokyo Big Bay Complex, whichthemselves as well as their families, they help the youth

combines the functions of a transfer center and a sales

develop the ability to work. In fiscal 2017 SG Fielder

office.

provided for workplace experience to 14 youth. By

Local Youth Support Centers are support agencies

conferring with them about their aptitudes and futurecontracted by the Ministry of Health, Labour andcareer paths based on such experiences in the

Welfare. The purpose of the centers is to provide direct

workplace, the company wants to support the first steps

and comprehensive back-up to young people, who areof these youth toward becoming full-fledged working

first entering the workforce, up to the point that they

adults.

become firmly established in their respective●Employment of Athletes
The SG Holdings Group has a softball team belonging todevelop national team athletes, the SG Holdings Groupthe Japan Women’s Softball League Section 1 and aalso supports the development of the next generation ofmen’s track and field team as official sports clubs.

sportsmen by sponsoring training sessions for

Through them, the Group supports the creation of anelementary and junior high school students with ourenvironment where athletes can continue to actively

teams.

participate in sports, and at the same time work as
employees.* Cheering on these athletes, who are also

*There are also some athletes with the group having acolleagues at work, enhances group solidarity. In

different form of employment.

addition to striving to win top places in competitions andOfficial Sports Clubs

Softball Team

Track and Field Team80

Achieving a Safe and Secure Transportation Society

Promoting Environmentally Friendly Business Activities Building an Organization of Diversity and Inclusion

Creating New Value Through Comprehensive Logistics Solutions

Contributing to Communities

Promoting Sustainable Procurement

Building a Responsible Management Foundation■Supporting Work-life Management
Life Support
The SG Holdings Group has promoted workplace culture
reform and system reforms in order to respond flexibly tothe diverse values and family circumstances of
employees. By this, we aim to create an environment
where all employees can maintain work-life balance withpeace of mind and make the most of their capabilities.

●IKUBOSU Proclamation
In August 2017, the SG Holdings Group announced the
IKUBOSU Proclamation promoted by the Ministry of
Health, Labour and Welfare. IKUBOSU means bosses(managers and executives) who care about the work-lifebalance of their subordinates and staff in the workplaceand support them in their careers and private lives.
While enhancing the performance of the organization,these bosses never fail to enjoy their own work andprivate lives. The SG Holdings Group supports childcare,
caregiving, and the work-life balance of its employees.
By enabling them to choose from diverse work styles,
the Group hopes to see its employees work

Holding Up the IKUBOSU Proclamation
Chairperson and CEO Eiichi Kuriwada (Left) and President

independently and very productively to achieve strong
results.

and COO Tadashi Machida (Right)●Supporting Childcare
In the area of childcare, starting from fiscal 2016, we
lengthened the period for working shorter hours for
employees raising children to the time the childcompletes the fourth grade of elementary school andcreated an environment where it is easy for employees
entitled to childcare leave to return to the workplace. In
addition, we added a new page supporting male
employees’ participation in childcare to our childcare
support guidebook “Working Papa and Mama Guide” inorder to encourage male employees as well to takechildcare leave. Additionally, in conjunction with the

The Working Papa and Mama Guide

initiation of the Mutual Aid Society, information useful toemployees and their families about health, in-house
events, etc. has been expanded on the Group’s
employee welfare website “Familink.”

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Promoting Environmentally Friendly Business Activities Building an Organization of Diversity and Inclusion

Creating New Value Through Comprehensive Logistics Solutions

Contributing to Communities

Promoting Sustainable Procurement

Building a Responsible Management Foundation●“SGH Kids Garden” In-house Nursery School
The SG Holdings Group opened the SGH Kids Garden, theGroup’s first in-house nursery school, in April 2017. Its goals
are to solve the problem of children left on waiting lists to enter
nursery schools, which has become a major social issue,
promote the active participation of women in society, andsupport work-life balance. SGH Kids Garden achieves a levelof education and safety equal to that of a licensed nurseryschool. Comprehensive optional services such as laundry andtowels for naps are also available. We, of course, also support
Group employees to return to work and in this way also aid the
spouses of our employees to take their place in society.

Thinnings from forests owned by Sagawa Forestry are used
plentifully in the SGH Kids Garden facility and in toys to createan educational space where nature can be felt close by throughthe feel of wood.

Inside the Nursery School●Construction of a Shared House to Promote Interaction among Employees
different gender, age, and nationality to promote innovationand solidarity among employees.
Wood from the Sagawa Forestry, a Group company, will be
used in the entrance and the second floor of the building towelcome residents to an atmosphere of warmth and harmony.
In addition, there are plans for invigorating the local communityand events for creating interaction with local residents.

The SG Holdings Group has begun construction of a sharedhouse for Group employees in Koto-ku, Tokyo as a part of its
Diversity and Inclusion initiatives aimed at promoting theparticipation of diverse human sources.
This apartment, being built by SG Realty with the aim ofcompletion by January 2019, is planned to have common
spaces of kitchen and dining room, a gym and kids’ space.
This concept will promote interchange among employees of●Establishment of a Mutual Aid Society

groups—Benefits, Information, and Experience/Participation—in alignment with the three types of employment.
The Society will provide more comprehensive welfare services
to employees resulting in greater loyalty on the part of
employees and their families, creating an environment where
employees obtain greater work satisfaction and providing life
support. The Society also supports OB/OG clubs for retirees
and post-retirement part-time employees, publishes clubbulletins, and hosts gatherings.

From April 1, 2017, the SG Holdings Group began operation ofa Group employee welfare program through the newly
established the SGH Mutual Aid Society, a generalincorporated foundation. The Society provides a lineup ofservices based on the concepts of (1) provision of security
throughout life, (2) building an environment where employees
become healthy and (3) fostering a workplace where
employees can work together enthusiastically and enjoy life.
Furthermore, the services have been categorized in three82

Achieving a Safe and Secure Transportation Society

Promoting Environmentally Friendly Business Activities Building an Organization of Diversity and Inclusion

Creating New Value Through Comprehensive Logistics Solutions

Contributing to Communities

Promoting Sustainable Procurement

Building a Responsible Management Foundation

Care Support●Employees’ Health Management
The SG Holding Group holds Health Management

health by encouraging weight control and other

Project Promotion Meetings twice a year in cooperation

initiatives. We try to reduce health risks through suchwith its health insurance society in Japan to set specificefforts as measures to prevent illnesses from becoming

quantitative health goals, and works actively to help

severe for high-risk individuals and the SG Smart

resolve employees’ health issues to promote their health

Program (specific health guidance) for persons withand prevent illnesses.

metabolic syndrome. In addition, to promote a

The Group also conducts a lifestyle diseases prevention

non-smoking campaign, we have established acampaign and works to create an environment where

non-smoking promotion committee in each Group

employees themselves take charge of maintaining theircompany to enhance employee health.

●Employee Attitude Surveys
In the context of promoting stakeholder management,

implementing initiatives for improvements in areas where

we conduct employee attitude surveys to gain an

there was relatively low satisfaction.

understanding of Group employee attitudes, identify

We believe that incorporating the views of employees as

issues, and make improvements. The survey, whichstakeholders into management decisions contributes tocovered approximately 50,000 Group employees in fiscal

improving the overall level of employee satisfaction, and2017, showed that the overall level of employee

ultimately customer satisfaction. We are committed tosatisfaction was stable while also evidencing a positive

continuing this approach as a means of promoting a

trend on some individual issues. On the basis of these

positive cycle of employee and customer satisfaction.

results, each Group company is developing plans for83

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Promoting Environmentally Friendly Business Activities Building an Organization of Diversity and Inclusion

Creating New Value Through Comprehensive Logistics Solutions

Contributing to Communities

Promoting Sustainable Procurement

Building a Responsible Management Foundation●Efforts in Mental Health Care
Even prior to December 2015 when stress checks became
mandatory, the SG Holdings Group was implementing measuresin mental health care for employees in Group companies
throughout Japan. In terms of mental health management,
everyone insured by the health insurance society (approximately
47,000 individuals) takes stress checks once a year and anyone
who wishes to may consult with an industrial physician or othermedical professional.
In order to support the mental health of employees and theirfamilies, the Group has also established SG Holdings Group
Health Dial 24 staffed by a professional organization, which
provides free consultations on the telephone or online. Anyone
who wishes to may also arrange a free consultation with a clinical

A Poster Publicizing
the Group Health Dial

psychologist at counseling rooms located throughout Japan.
From fiscal 2016, annual common stress checks are conductedgroup-wide and employees wishing to may meet with an industrial
physician or other medical professional.
There is also an organizational analysis based on the results ofthe stress checks. The Group is making every effort to improve
the working environment.

●First Convocation of a Breast Cancer Seminar for Female Employees
In October 2017, SG Global Japan invited Ms. Kumiko

office, it sponsored this seminar as a part of its initiatives

Arai, Representative Director of Pink Ribbon, Inc., ain work-life management to spread awareness andgeneral incorporated foundation, and held a Breast

knowledge of breast cancer. Forty employees

Cancer Seminar for Female Employees. Breast cancer

participated in the seminar, acquiring basic knowledge

happens to many women and because women compriseabout breast cancer, and learning how to performover 40% of the workforce at SG Global Japan’s head

self-examinations using a Breast Care Glove.

Lecture on Self-examination with Practice Using a Breast Care Glove

Sensing the Hardness of a Breast Lump Using a Mannequin84

Achieving a Safe and Secure Transportation Society

Promoting Environmentally Friendly Business Activities Building an Organization of Diversity and Inclusion

Creating New Value Through Comprehensive Logistics Solutions

Contributing to Communities

Promoting Sustainable Procurement

Building a Responsible Management Foundation

Motivation Support
The SG Holdings Group formulated the SG Holdings

Personnel Vision, various personnel systems have beenGroup Personnel Vision with the goal of all employees

put in place with the aim of enhancing employee

acting independently and maximizing the potential of

motivation.

their skills and unique personalities. In line with this●Overseas Training
The Group has a 39-year history in overseas training.

managers selected from local subsidiaries for training in

Employees who are chosen from among applicants visit

Japan. With visits to various business locations of theSingapore and other Asian countries where we haveGroup, this program is aimed to help participants

local subsidiaries. Observing overseas sites and meeting

increase their understanding of the Group’s businesswith local management has brought a global perspective

and the logistics industry in Japan in general and foster

to the participants.

their motivation to promote business back in theirStarting from fiscal 2014, we also began inviting

countries.

Overseas Training

Training in Japan for Employees from Other Countries

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Promoting Environmentally Friendly Business Activities Building an Organization of Diversity and Inclusion

Creating New Value Through Comprehensive Logistics Solutions

Contributing to Communities

Promoting Sustainable Procurement

Building a Responsible Management Foundation●Bright Future Vision Committee
This project focuses on the vision(imagination/inspiration) of young employees for their
future. Fiscal 2017 was the fourth year for this program,which has already nurtured about 90 future-oriented

members. The goal is to transform the organization
using the skills and experience gained through its
committee sessions.

●Next-generation Leader Development Training●Excellent Employee Commendation Program

We conduct training for mid-level employees chosenfrom among assistant and section managers to develop
the human resources who create value and will lead thenext generation.

This program honors exemplary employees who havebuilt a superior record of accomplishment. An awards
ceremony is held, inviting the honorees’ families, as ameans of increasing the motivation of the honorees aswell as heightening awareness throughout the entire
group, including our overseas companies.

●In-house University “SGH University”
The SG Holdings Group opened SGH University as an
in-house university in March 2017 to support employee
development. The school was established with the goalof providing an environment where employees with adesire to learn and the ambition to explore new avenues
in their careers can study independently and further theirself-development.
As an academic venue combining group training ande-learning to provide a comprehensive curriculum, SGH
University supports career development from employees
first entering the company up to candidates for executive
positions. The university offers group training for
selected or general participants and optional training on
freely chosen subjects, and e-leaning is also available.
The university also has training rooms together with alibrary space to encourage employees to come together
and learn together in an enjoyable way.

SGH University has four training rooms and a library space.

Concepts of SGH University

Synergy
Student

Student

Innovation

Development

Student

BreakthroughDiscovery
Student86

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Promoting Environmentally Friendly Business Activities Building an Organization of Diversity and Inclusion

Creating New Value Through Comprehensive Logistics Solutions

Contributing to Communities

Promoting Sustainable Procurement

Building a Responsible Management Foundation●In-house Venture Program
The SG Holdings Group initiated its In-house Venture
Program in 2014. This program was set up to invite
business ideas from employees and assess
commercialization of promising proposals. In fiscal 2017,
after the final review of presentations, four proposals forcreating further added value in the logistics businesswere selected as winners. The next step will be
discussion and review of the possible commercializationof the winning ideas with the business units involved.
The concept of this program is to create a corporate
culture that encourages all employees to think aboutproblem areas and to challenge themselves to produce

The 4th Venture Business Grand Prix

innovative ideas that will benefit the Group’s business.

●Employee Seminars
With the aim of increasing employee job fulfillment andfamilies, and life satisfaction so that they can work andsatisfaction, in February 2017 we held a Life Planning

live energetically in the present while at the same time

Seminar and a Pre-retirement Seminar.

getting ready for the future.

The goal of these seminars was to help each employee

The Life Planning Seminar aimed at employees in theirdevelop their own life plan by thinking about financial

late 30s and the Pre-retirement Seminar for employees

planning, health, and their work-life balance as well asscheduled to retire the following year were held at 19

preparedness for caregiving, relationships in theirlocations throughout Japan.

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Promoting Environmentally Friendly Business Activities Building an Organization of Diversity and Inclusion

Creating New Value Through Comprehensive Logistics Solutions

Contributing to Communities

Promoting Sustainable Procurement

Building a Responsible Management Foundation●Children’s Observation Day
The SG Holdings Group has holds Children’sand experienced firsthand vehicle maintenance work.

Observation Days and Family Days at business

Family Day at SG Moving (Kanto Area) was held as ancompanies on an ongoing basis to help families better

event to show the head office, which was newly moved

understand the group’s business.

to Koto-ku in Tokyo in February 2017, to the visitors andIn 2017 SG Motors Children’s Observation Day was held

have the children of employees make soap and candles

at the Fuji Plant with the participation of 19 children, whofrom waste oil to foster learning about preserving theall put on the same blue uniforms as the auto mechanics

environment.

SG Motors Children’s Plant Visit

Learning to Drive with a Children’s Cart at SG Motors

Children Making Soap and Candles at SG Moving

Group Photo of Participants at SG Moving Family Day88

Achieving a Safe and Secure Transportation Society

Promoting Environmentally Friendly Business Activities Building an Organization of Diversity and Inclusion

Creating New Value Through Comprehensive Logistics Solutions

Contributing to Communities

Promoting Sustainable Procurement

Building a Responsible Management Foundation

Awards and Certification/Accreditation■Awards
J-Win Diversity Awards Corporate Prize
In March 2018, SG Holdings was the first logistics
company to win the Corporate Prize, Basic Division at
the 2018 J-Win Diversity Awards sponsored by the NPO
J-Win. This award acknowledges companies andindividuals who promote and maintain diversity
management.
The Basic Division is given to a business that has
initiated a system for encouraging the participation of
women.
The Company works to create an environment where
women can play active roles in many types of work andpositions throughout the Group, and actively promotes
women to decision-making management positions while
also working to enhance awareness among malemanagement. In keeping with diverse lifestyles, we
encourage male employees to also take childcare leaveand promote a work-at-home program and other work
style innovations.

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Promoting Environmentally Friendly Business Activities Building an Organization of Diversity and Inclusion

Creating New Value Through Comprehensive Logistics Solutions

Contributing to Communities

Promoting Sustainable Procurement

Building a Responsible Management Foundation■Certification/Accreditation
Youth Yell Certified Company
In October 2016 Nouvelle Golf Club became the first golfcourse recognized as a Youth Yell Certified Company by
the Ministry of Health, Labour and Welfare. Youth Yell isa system of certification by the Ministry of Health, Labourand Welfare based on the Youth Labor Welfare Act torecognize small- and medium-sized companies which
excel in employment policies actively directed at hiringand developing youth. Nouvelle Golf Club gained

certification by meeting all 12 of the certification
requirements under that program. Having received its
third consecutive certification in fiscal 2018, Nouvelle
Golf Club, going forward, intends to strive to hire anddevelop the youth who will lead the next generation andto carry out employment management comprehensively
to ensure an employee-friendly workplace.

Certification Ceremony at Chiba Labour Bureau on September 27, 2016

Youth Yell Certification Mark

Excellent Worker Dispatching BusinessIn 2018 SG Fielder was certified as an Excellent Worker
Dispatching Business under the Excellent Worker
Dispatching Business Certification Program
consecutively since the first certification in March 2015.
This certification is given to worker dispatchingbusinesses which fulfill requirements such as supportingthe career development of the dispatched workers,
ensuring an appropriate work environment, andpreventing problems, and it indicates that a certified
dispatching business is one that can be trusted. SG
Fielder earned this recognition for its awareness of thesocietal role of worker dispatching businesses andsupport for human resources development and career.
Other recognized efforts include compliance, promotionof work-life balance, hiring of temporary workers as
regular employees, and the “Give It Your All Support
Program” and other initiatives aimed at acquisition ofnecessary work skills.

Excellent Worker Dispatching Business Mark90

Achieving a Safe and Secure Transportation Society

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Creating New Value Through Comprehensive Logistics Solutions

Contributing to Communities

Promoting Sustainable Procurement

Building a Responsible Management Foundation

Tokyo Work-life Balance Certified Enterprise
Sagawa Financial was selected in November 2017 as aTokyo Work-life Balance Certified Enterprise. This
selection is made by the Tokyo Bureau of Industrial andLabor Affairs to single out “enterprises which implement
initiatives to create a workplace where employees cancontinue to work with energy and enthusiasm while
striking a balance between work and their private lives.”
Eleven companies were selected in 2017 and Sagawa
Financial was commended for its scheme to encourage
employees to take their annual vacation days and its
establishment of a new vacation system, among otherthings. The company promotes the “WakuWaku
Vacation” for combining Saturday, Sunday, and aholiday for four or more consecutive days off and“Anniversary Vacation” which can be freely used foranniversaries and other special days. Many employees
are taking advantage of these programs.

Winning “Child Raising Supporter Company” Certification— the Kurumin Next Generation Supporter’s MarkThe SG Holdings Group actively works on measures tosupport raising next-generation children. In 2015
Sagawa Global Logistics won the right to use theKurumin next-generation supporter’s mark by beingcertified as a child raising supporting company. Currently
six Group companies—Sagawa Global Logistics, SG
Holdings, Sagawa Express, Sagawa Logistics Partners,
SGH Global Japan, and SG Systems—are qualified todisplay the Kurumin mark.
Next Generation Supporter’s Mark (Kurumin)Sports Yell Company
SG Holdings received “Sports Yell Company”
certification from the Japan Sports Agency in December
2017. The Sports Yell Company program, which started
in 2017, certifies companies which promote the health of
employees in the prime of life who tend to lack exercise.
The Company earned this certification in recognition of
its efforts in sponsoring the activities of sports clubs andfor many years holding sports days for all Group
employees and their families, sponsoring sports eventsfor elementary school students and being a special
sponsor of the All Japan High School Ekiden[long-distance relay] Championships and othersports-based human resources development activities.
The Company has also received certification for three
years in a row as a “Tokyo Sports Promotion Company”
by the Tokyo Metropolitan Government for its active
promotion of sports activities on the part of its
employees and its support of activities contributing tosociety in the area of athletics.

2017 Certification Sticker

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Achieving a Safe and Secure Transportation Society

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Creating New Value Through Comprehensive Logistics Solutions

Contributing to Communities

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Building a Responsible Management Foundation

Employee Data
Number of employees (Group Overall)Fiscal Year

Fiscal 2013

Fiscal 2014

Fiscal 2015

Fiscal 2016

Fiscal 2017

Male

56,03059,24460,38060,77062,943

Female18,31621,16923,57425,036

27,765

Total

74,34680,413

83,95485,80690,708

Number of Employees by Type (Group Overall)Fiscal Year

Fiscal 2013

Fiscal 2014

Fiscal 2015

Fiscal 2016

Fiscal 2017

Regular employees

39,49742,30342,07843,13845,361

Quasi-employees

2,063

1,205

1,249

1,354

908

Commissioned
employee (Shokutaku)

605

598

667

702

789

Contract employees

9,109

9,233

9,671

15,00317,366

Temporaryemployees

21,173

24,101

26,17721,50523,000Registered temporary
employees

1,899

2,973

4,112

4,104

3,284

Total

74,34680,413

83,95485,80690,708

Numbers of Male and Female Managers and Supervisors (Group Companies in Japan)
Fiscal Year

Fiscal 2013

Fiscal 2014

Fiscal 2015

Fiscal 2016

Fiscal 2017

Male

1,861

1,818

1,838 (2,324)

1,846 (2,396)

1,990 (2,492)

Female4552

56 (196)

64 (220)88 (270)

Total

1,906

1,870

1,894 (2,520)

1,910 (2,616)

2,078 (2,762)

Ratio of Female Managers
and Supervisors

2.36%

2.78%

2.96% (7.78%)

3.35% (8.41%)

4.23% (9.77%)*The numbers in parentheses 2015 and after are for the entire Group, including overseas.

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Creating New Value Through Comprehensive Logistics Solutions

Contributing to Communities

Promoting Sustainable Procurement

Building a Responsible Management Foundation

Number of New Graduate Employees (Japan)
Fiscal Year

Fiscal 2013

Fiscal 2014

Fiscal 2015

Fiscal 2016

Fiscal 2017

Male

773

383

542

536

523

Female

289

166

223

230

244

Total

1,062

549

765

766

767

Employee Retention rate (Japan)
Fiscal 2016 Regular Employee Retention Rate

79.47%

Fiscal 2017 Regular Employee Retention Rate

84.82%New Graduate Employee Retention Rate (Japan)
Two-year Retention Rate

Fiscal 2016 Regular Employee Retention rate*1

75.84%

One-year Retention Rate

Fiscal 2017 Regular Employee Retention rate*285.73%*Number of persons who left the company by the end of the fiscal year / Number of employees joined at the start of the fiscal year
*1 100% – (number of employees who joined in 2016 and left by the end of fiscal 2017 / number of new graduates who joined on April 1, 2016)*2 100% – (number of employees who joined in 2017 and left by the end of fiscal 2017 / number of new graduates who joined on April 1, 2017)

Rate of Employment of Persons with Disabilities (Japan)
As of June 1, 2016

As of June 1, 2017

As of June 1, 2018

2.06%

2.04%

2.28%

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Achieving a Safe and Secure Transportation Society

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Creating New Value Through Comprehensive Logistics Solutions

Contributing to Communities

Promoting Sustainable Procurement

Building a Responsible Management Foundation

Turnover Rate (Japan)
Fiscal 2017 Attrition Rate*1 *2

5.90%*1 Calculated by dividing the number of employees at the start of the fiscal year by the number of employees who left in that fiscal year
*2 The attrition rate includes voluntary resignations

Prepartum and Postpartum and Childcare Leave Rates and Retention Rate (Japan)
Leave Classification

Fiscal 2015

Fiscal 2016

Number of persons who took prepartum and postpartum leave

239

253

259

Number of persons who took childcare leave

341

272

382

Childcare leave rate (%)*1

100

98.86

99.42

Return-to-work rate subsequent to prepartum
and postpartum leave and childcare leave (%)*2

99.16

99.74

95.22

*1 Ratio of women who took childcare leave subsequent to childbirth*2 Ratio of persons who returned to work prior to or at the termination of leave scheduled to terminate in fiscal 2017

Number of Employee Work-related Accidents per Year (Japan)
Number of Fiscal 2017 Work-related Accidents
Not resulting in absence

571

Resulting in absence

380

Serious injury―

Results of Employee Attitude Survey (Japan)
Fiscal 2017
Response rate (%)

84.20

Satisfaction score (maximum of 5)

3.54

Ratio of questioned employees tototal number of employees (%)

67.60

94

Fiscal 2017

Achieving a Safe and Secure Transportation Society

Promoting Environmentally Friendly Business Activities Building an Organization of Diversity and Inclusion

Creating New Value Through Comprehensive Logistics Solutions

Contributing to Communities

Promoting Sustainable Procurement

Building a Responsible Management Foundation

Creating New Value throughComprehensive Logistics Solutions
Development of comprehensive
logistics solutions

High-quality services

Policy96P

Policy106P

Systems

96P

Systems

106P

Initiatives

98P

Initiatives

107P

Awards and Certification/Accreditation 105P

■Awareness of Social Issues

Awards and Certification/Accreditation 110P

■Impact

The total size of the logistics business in Japan including

Overall
Logistics Approx.
Businesstrillion yen

25

trucks, railways, ocean-going shipping, airfreight andwarehouses is approximately 25 trillion yen, and thetrucking business accounts for approximately 15 trillion

15

yen (fiscal 2014) of this, indicating that our business

Trucking Approx.
Businesstrillion yen

provides an essential function to society. Meanwhile, thelogistics business still has much room for improvementof efficiency such as reducing its environmental impact.

*Current State and Issues of the Japanese Trucking

The Group not only conducts a trucking business, but

Industry 2018 (“Nihon no truck yuso sangyo genjou tocreates new value through comprehensive logistics

kadai 2018”) (Japan Trucking Association)

solutions combining a nationwide transportation anddelivery network, diverse functions of Group companies
and partnerships with partner companies.

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Achieving a Safe and Secure Transportation Society

Promoting Environmentally Friendly Business Activities Building an Organization of Diversity and Inclusion

Creating New Value Through Comprehensive Logistics Solutions

Contributing to Communities

Promoting Sustainable Procurement

Building a Responsible Management Foundation

Development of Comprehensive Logistics Solutions
Policy■Approach
The SG Holdings Group believes that realizing greater

forwarding not only in Japan but also overseas,

efficiency in logistics by responding to changes in theespecially in Asia, which is expected to grow into themarket environment through comprehensive logistics

future.

solutions is essential for continuing to provide people

Finding new possibilities for responding to the social

with a convenient lifestyle. In order to realize thebackground in Japan and overseas is seen to be an

improvement of efficiency, it is necessary to engage inimportant issue, and we will contribute to improving thethe creation of local transportation networks and provide

efficiency of logistics by seeking out new solutions.

Systems■Organization●GOAL® (GO Advanced Logistics)
GOAL is a specialized group providing the best solutions

strengths in distribution between businesses, the diverse

for logistics by identifying underlying customer issues.

resources of Sagawa Global Logistics such as logistics

Product life cycles are shortening, service competition isprocessing, and the global, IT and payment functions ofintensifying and business is becoming more globalized.

Group companies.

One of the keys to responding to such changes in the

GOAL uses a system of teams of four to six people, andmarket environment is improving the efficiency of

currently has around 200 people forming teams by area

management through overall optimization of logistics. In

nationwide. Sagawa Express has also established a

response to such changes in the market environment,

marketing team with specialized knowledge, providing

GOAL provides logistics solutions merging the

support to the area-based teams as required.

nationwide network of Sagawa Express, which has

96Achieving a Safe and Secure Transportation Society

Promoting Environmentally Friendly Business Activities Building an Organization of Diversity and Inclusion

Creating New Value Through Comprehensive Logistics Solutions

Contributing to Communities

Promoting Sustainable Procurement

Building a Responsible Management Foundation●Expansion of International Logistics
Overseas business
management company
Local subsidiaries

SG HOLDINGS GLOBAL
Tianjin Poly-Sagawa International Trading
Shanghai Poly-Sagawa Logistics
Poly-Sagawa Logistics
Sagawa Express (H.K.)
Sagawa Express International Taiwan
Sagawa Logistics Korea

Sagawa Express Philippines
Sagawa Express (Thailand)
SG Sagawa (Thailand)
Sagawa Express Vietnam
SG Sagawa Vietnam
SG Sagawa Express Vietnam

SG Sagawa Ameroid
SG Sagawa USA
Expolanka Holdings

90 companies in total

Through SG Holdings Global, our overseas business

warehouses and 99 hub service centers covering all ofmanagement company based in Singapore, we conduct

Vietnam as we build a network within the region toa freight forwarding business, which is our coreprovide total support to customers’ production and sales

business, in overseas markets especially in rapidly

in Vietnam from a logistical aspect.

growing Asia, and also provide high added value

Furthermore, we are also providing solutions linking 3PL

services from upstream to downstream in the supply

and the Last One Mile such as deliveries to individual

chain by strengthening businesses surrounding logistics,

homes using package pickup counters in shopping malls

such as customs clearance, 3PL (enterprise logistics)

in Vietnam and fulfillment centers (handling storage,

and domestic land transportation.

order management and delivery to individual homes) forIn particular, SG Holdings positions Vietnam with its

rapidly expanding e-commerce.

rapidly expanding textiles industry as a vital location in

In May 2014 we strengthened our freight forwarding

its global strategy. With Sagawa Express Vietnam

operations by acquiring a managing interest inlaunched in a joint venture with local capital under the

Expolanka, a Sri Lankan logistics company, through asocialist country’s regulations, SG Sagawa Vietnam

tender offer. The company has particular strength inestablished as a wholly-owned subsidiary in 2015, andlogistics not only in Sri Lanka, where it is based, but also

SG Sagawa Express Vietnam established through anin neighboring India and Bangladesh, and also has

M&A deal with a delivery company with a delivery

logistics networks in emerging markets such as the

network spanning all of Vietnam in 2016, it has become

Middle East and Africa, and has expanded out integrated

possible to conduct a variety of business using atransportation services in international logistics within

three-company system. At present, we have offices in

Asia and connecting Asia with Europe and America.

the north and south, in addition to five distribution

SG Holdings Group vehicles on the road in Vietnam

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Achieving a Safe and Secure Transportation Society

Promoting Environmentally Friendly Business Activities Building an Organization of Diversity and Inclusion

Creating New Value Through Comprehensive Logistics Solutions

Contributing to Communities

Promoting Sustainable Procurement

Building a Responsible Management Foundation

Initiatives■“TMS” Proving Diverse Means of Transportation
Sagawa Express provides “TMS (Transportation

other than package delivery services.

Management System) as a new logistics service forThis makes it possible to perform total management forcarrying all “goods” not limited to package delivery

the complete relocation of factories and large-scaleservices. This provides optimal solutions tailored to

offices, provide special transportation of heavy goods

customers’ needs by utilizing the know-how of the SGsuch as aircraft and railway cars, delicate goods such as

Holdings Group and the transportation networks ofartworks and animals, etc., and operate milk runs.

long-haul partners to produce transportation modes

Flow in the Example of Trailer Transportation of Concrete Blocks
Construction site of new plantof major manufacturer of
mechanical parts (Yamagata)

Manufacturer of secondary
concrete products (Aomori)

140 trips transporting concrete blocks
Special vehicle application
Lashing, etc.

Some of the special know-how used in this TMS●Proposal of transportation route ..............Proposal of route for special vehicles such as trailers●Special vehicle application.......................Advance applications to administrators of roads used on chosen route●Lashing .....................................................Using ropes, etc. to ensure the cargo does not fall off due to vibration orload during transportation98

Achieving a Safe and Secure Transportation Society

Promoting Environmentally Friendly Business Activities Building an Organization of Diversity and Inclusion

Creating New Value Through Comprehensive Logistics Solutions

Contributing to Communities

Promoting Sustainable Procurement

Building a Responsible Management Foundation■Smart Delivery®
Sagawa Express has been expanding the “Smartcenters are separately delivered by different suppliers,

Delivery®” services to dramatically increase efficiency

but under the Smart Delivery®, packages are gatheredfrom procurement (stocking) deals to receipt of goods

and sorted by product category or location in Sagawa(warehousing/inspection) between businesses. It is a

Express transfer centers and sales offices before being

service for reducing customers’ burdens on their staff

delivered to the final destination as specified by theand on the environment, and the service is operated inconsignee. Support is also provided for time slot-specificlarge logistics centers and large shopping malls. In usual

delivery including late night and early morning.

delivery, packages to large facilities such as shopping

Normal delivery of packages separately from multiple companies

Improvement of efficiency of logistics through smart delivery
Sagawa Express sales office99

Achieving a Safe and Secure Transportation Society

Promoting Environmentally Friendly Business Activities Building an Organization of Diversity and Inclusion

Creating New Value Through Comprehensive Logistics Solutions

Contributing to Communities

Promoting Sustainable Procurement

Building a Responsible Management Foundation■Facility Logistics
Sagawa Express and World Supply provide “facility
logistics systems” that centrally manage the entry andexit of people, goods, vehicles and information at
facilities such as large-scale commercial complexes topromote greater efficiency in logistics. The twocompanies combined have been entrusted with 90
properties in total, including Tokyo Skytree®, Tokyo
Midtown and GINZA SIX. The adoption of facility
logistics systems helps aggregate delivery vehicles,
mitigate traffic jams around facilities and reduce theenvironmental impact. The effectiveness of thesesystems earned a certification from the Tokyo District
Distribution Efficiency Certification System (2014) as

Delivery at GINZA SIX

well as the outstanding the Ministry of Land,
Infrastructure, Transport and Tourism (MLIT) Minister'sAward for the Excellent Green Logistics Commendation

Number of Facility Logistics System Outsourcing Contracts

Program (2014).

90■Fulfillment Service for Recalls
Sagawa Express has provided “Recall Total Service” forresponding to inquiries from customers in the event of ahandling all aspects of recalls since March 2012. The

recall. Implementing recall operations without delay notcontent of the service is diverse, and includes collection

only enables companies to avoid management risks, butof defective items, replacement with substitutes,

also fulfill their social responsibility.

handling of refunds, and operation of call centers for100Achieving a Safe and Secure Transportation Society

Promoting Environmentally Friendly Business Activities Building an Organization of Diversity and Inclusion

Creating New Value Through Comprehensive Logistics Solutions

Contributing to Communities

Promoting Sustainable Procurement

Building a Responsible Management Foundation■Provision of One-stop Solutions for Relocation of Offices and Stores
In March 2018, SG Moving newly obtained aconstruction business license from the Ministry of Land,
Infrastructure, Transport and Tourism, enabling it toprovide one-stop handling of all operations related to therelocation of offices and stores. Recently, there has
been an urgent demand to respond to needs including
not only the movement of packages in office relocation,
but also proposals of office design aimed at work stylereform.
In addition to know-how spanning from procurement ofconstruction materials to delivery and minor construction
work, the acquisition of this license has made it possible
to handle all aspects of operations such as large-scalerenovations and interior construction work within

General construction business license

facilities, enabling SG Moving to provide new services tomeet customers’ needs as a comprehensive production
business operator contracted to handle all aspects
including the design, proposal and construction of officespaces.

■Provision of “Extended Warranty Services”
in the E-Commerce (EC) Market
At present, there are not many companies providing

needs, SG Moving began the “SG Extended Warranty

extended warranty services for products in the EC

Service” jointly developed with TWG Warranty Service

market due to the complexity of sales schemes and theInc. in October 2015. It is a service for providing repairs

low level of awareness and use compared to similarin accordance with predetermined warranty provisions

services in large electronics retailers. However, because

for a certain period after the manufacturer’s warranty has

this is an area which consumers expect to meet their

expired.

101

Achieving a Safe and Secure Transportation Society

Promoting Environmentally Friendly Business Activities Building an Organization of Diversity and Inclusion

Creating New Value Through Comprehensive Logistics Solutions

Contributing to Communities

Promoting Sustainable Procurement

Building a Responsible Management Foundation■Commencement of Shipping and Receiving Inspections Using RFID
In 2017, Sagawa Global Logistics commenced shipping

shipping and receiving goods by installing gate-type

and receiving inspections using RFID with the

RFID readers.

cooperation of COEN CO., LTD., at COEN’s logistics

As a result, the productivity per hour has increased bysite which is contracted within the Higashimatsuyama

7.8 times in receiving inspections and 8.9 times in

SRC large-scale distribution facility. RFID is an

shipping inspections, and this is expected to lead to a

automated recognition system for reading and writing

reduction in personnel required. Future improvements inwireless communication data, and has been able toproductivity utilizing RFID are expected to provide a

improve the efficiency of inspection operations

solution to the issue of the “labor shortage” in thepreviously performed manually in two steps whenlogistics industry.

■Commencement of WeChat Pay Service
Sagawa Financial concluded an agreement with Tenpay

Business operators in Japan are asked to provide theirPayment Technology in November 2017 as an official

own tablets for reading QR codes, and can use WeChat

agent of WeChat Pay in Japan, and provides the

Pay by downloading the “SAGAWA SMART PAY”

“SAGAWA SMART PAY” payment application.

application. Sagawa Financial is supporting business

WeChat Pay is a mobile settlement service using QR

operators’ efforts to capture inbound demand throughcodes and account data from WeChat, which is one ofthe provision of settlement services in order to respondthe largest SNS in China. It is used by more than 800

to the needs of rapidly increasing Chinese tourists

million people, and has been implemented in overvisiting Japan.

10,000 stores in Japan.

WeChat Pay logo

Image of the SAGAWA SMART PAY icon

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Creating New Value Through Comprehensive Logistics Solutions

Contributing to Communities

Promoting Sustainable Procurement

Building a Responsible Management Foundation■Business in Collaboration with Hitachi Transport System
SG Holdings and Sagawa Express have concluded acapital alliance with Hitachi Transport System, Ltd. tostrengthen the ability to make proposals through sales
partnerships in Japan and abroad, jointly develop
services, and share facilities and vehicles. Within Japan,
the Sagawa Express Oyamazaki Sales Office was
opened within the Oyamazaki AE Sales Office owned by
Hitachi Transport System in Otokuni-gun, Kyoto in April
2018. The facility combines delivery and logistics
operations to provide one-stop solutions. This has madeit possible to move Sagawa Express delivery times

Comprehensive Rationalization Plan Certification Mark

forward, improve the working environment for drivers,
reduce the distance traveled by trucks and reduce thenumber of trucks. This also enables Hitachi Transport
System to postpone shipment work hours and effectively
utilize resources through facility sharing. As a result, CO2
emissions have been reduced by 32%, efficiency oflogistics operations have been improved, andlabor-saving has been achieved, leading to recognition
as a comprehensive rationalization plan under the
Revised Act on Promotion of Integration andRationalization of the Distribution Services specified by
the Ministry of Land, Infrastructure, Transport and

Sagawa Express Oyamazaki Sales Office

Tourism for the revised Act.
Furthermore, the know-how of both groups has beenutilized overseas in areas where each group has
strengths in Thailand (Hitachi Transport System Group)
and Vietnam (SG Holdings Group) to be morecompetitive in Asia especially in the 3PL and delivery
businesses through a variety of initiatives such as theenhancement and expansion of cross-border logistics inSoutheast Asia.

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Achieving a Safe and Secure Transportation Society

Promoting Environmentally Friendly Business Activities Building an Organization of Diversity and Inclusion

Creating New Value Through Comprehensive Logistics Solutions

Contributing to Communities

Promoting Sustainable Procurement

Building a Responsible Management Foundation■Smart Import® International Logistics Service for Japan
Smart Import is a service for business operators withcustoms, and (3) reducing lead times and optimizing

production sites across Asia. Products are received incosts. Service for companies selling apparel withlocal logistics sites and then internationally transported

production sites in China began to be provided into their destinations in Japan after distribution processes

collaboration with Hitachi Transport System Group insuch as inspection, sorting and Japanese delivery slips.

October 2016, and services from the SG Holdings

With all distribution processing completed overseas,

Group’s locations in Vietnam have also begun. The

customers receive benefits such as (1) reducing labor inrange of products handled will be expanded in future to

Japan, (2) reducing the cost of returns of defects andmeet customers’ needs.

Inspection
Sorting
Pasting Japanese shipping invoices

Hitachi Transport
System Group
Overseas
Inspection Center
Factory

Overseas
portJapanese
port

SagawaExpresstransfer site

Deliverydestination

Reduction of lead time
●Reduction of sorting operations and the time for Japanese shipping operations at centers in Japan.
Optimization of costs●Reduction of costs through overseas transfer of logistics process procedures (inspection, needle detection,
store-by-store sorting, etc.)●Reduction of expenses such as the costs of returning defective goods and import duties through inspection andneedle detection overseas

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Achieving a Safe and Secure Transportation Society

Promoting Environmentally Friendly Business Activities Building an Organization of Diversity and Inclusion

Creating New Value Through Comprehensive Logistics Solutions

Contributing to Communities

Promoting Sustainable Procurement

Building a Responsible Management Foundation

Awards and Certification/Accreditation■Certification/Accreditation●Accreditation under the Act on Promotion of Integration and Rationalization of the Distribution Services in fiscal 2017
Date ofaccreditation

March 29, 2017

Names of implementing
business operators

Area

Sagawa Express,

Railway

Hokuetsu Express Corporation

modal shift

Business details
Initiatives for mixing freightand passengers on passenger
railways

Effect (result as percentage of
pre-initiative level)

CO2 emissions: 88%
Driving hours for drivers: 60%

Sagawa Express, Sagawa
Railway modal shift such as

Advance, Japan Freight
Railway Company, Japan
August 8, 2017

Freight Railway South-Kanto
Logistics Company, Zenkoku

Railway
modal shift

for fresh flowers and fresh
food utilizing containers withfunctions for maintaining

CO2 emissions: 89.3%
Driving hours for drivers: 88.5%

freshness

Tsuun Co., Ltd.

Modal shift of transportation
September 1,
2017

Sagawa Express, Toyota
Transportation Co., Ltd.

Railwayfor package delivery services

CO2 emissions: 68.8%

modal shiftutilizing spare space on trains

Driving hours for drivers: 90.0%

for carrying automotive parts

Sagawa Express, Hitachi
March 22, 2018

Transport System West Japan
Co., Ltd.

Transportation

Transportation network

network

consolidation associated with

CO2 emissions: 31.6%

consolidation

the establishment of the

Driving hours for drivers: 16.1%

business

Oyamazaki Sales Office105

Achieving a Safe and Secure Transportation Society

Promoting Environmentally Friendly Business Activities Building an Organization of Diversity and Inclusion

Creating New Value Through Comprehensive Logistics Solutions

Contributing to Communities

Promoting Sustainable Procurement

Building a Responsible Management Foundation

High-quality Services
Policy■Approach
The SG Holdings Group believes that quality is the foundation for providing high-value services.
By establishing structures and mechanisms aimed at improving quality, the Group ensures quality management to respondto the trust of customers.

Systems■Organization
Sagawa Express, which is the core of the Group, isendeavoring to improve transportation quality by assigningpersonnel responsible for quality in 18 branches and 426 sales
offices nationwide, centered on the Quality Assurance
Department, which is the department responsible in head
office.
In nationwide quality promotion personnel meetings held
monthly, personnel responsible for promoting quality in the
responsible head office departments and branches reflect on
issues that have occurred, identify their causes and discuss
improvement measures, and the content of these discussions
is shared with all sales offices in real time using tablets.

Head office
Quality Assurance Department
All branches
Personnel responsible for promoting quality
All sales offices
Personnel responsible for quality control■Quality Control Systems
Sagawa Express has acquired the ISO 9001:2015 international
standard for quality management systems certification forcontinued improvements to transportation quality at 458
business sites.
In order to enable services with uniform quality to be provided
in sales offices nationwide, manuals on various services are
made available to enable Sales Drivers® to check the latest
manuals at any time. Furthermore, internal and external audits
are performed to check whether operations are being
conducted correctly in accordance with manuals. Internal

audits are conducted by auditors granted licenses unique to
Sagawa Express (2,655 license recipients nationwide). They
perform checks, reviews and guidance for improvements in all
operations in the services provided by their sales offices twice
each year. External audits perform checks on randomly
selected branches from the perspective of a third party, andissues discovered in the audits are shared with the nationwide
meetings for quality promotion personnel and put through the
PDCA cycle.

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Creating New Value Through Comprehensive Logistics Solutions

Contributing to Communities

Promoting Sustainable Procurement

Building a Responsible Management Foundation

Initiatives■Quality Improvement Initiatives
Sagawa Express establishes quality items for improving

where there is a potential for collisions and help intransportation quality every year, sets targets andpreventing disruptive accidents.

implements measures.

Furthermore, we are raising awareness about improving

The quality items are quantified and used to maketransport quality through means such as posters to

improvements by identifying the causes when theencourage caution as well as educational DVDs aboutstandard values are not reached. For example, we havecargo accidents in addition to quality improvement

installed “impact meters” together with dummy

poster contest for employees.

shipments that measure impacts to scientifically examine

Quality items in fiscal 2017
(1) Time-band service fulfillment rate(2) Absence redelivery fulfillment rate
Time quality(3) Hikyaku Just Time Express fulfillment rate(4) Morning commercial delivery rate(5) Hikyaku Cool Express freight temperature accident rate
Freight quality(6) Outbound freight accident rate(7) Inbound freight accident rate

Response quality(8) Complaint rate107

Achieving a Safe and Secure Transportation Society

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Creating New Value Through Comprehensive Logistics Solutions

Contributing to Communities

Promoting Sustainable Procurement

Building a Responsible Management Foundation■Improvement of Quality of Hikyaku Cool Express
Hikyaku Cool Express offered by Sagawa Express aims

Logistics Group cooling facilitates at transfer sites forto provide service quality able to bring peace of mind

long-haul transportation to sort shipments by delivery

through the use of vehicles, equipment and fixturesarea. We use cool shoulder bags for delivery from therepeatedly inspected so that shipments from collection totruck to the door of our delivery destination to thoroughly

delivery can be transported at cold or frozen

manage the temperature throughout the entire processtemperatures. Vehicles that support three temperaturefrom when we collect a package until we deliver it. Apartlevels and dedicated cool vehicles are used in collection

from these initiatives, we are constantly making

and delivery. “Cool boxes” are used when using vehicles

improvements. For example, we changed the shape,that transport items at normal temperatures. In addition,color and size of care mark stickers pasted to packages

all of our sales offices are fully equipped with cold or

to be easier to view based on comments from customers

frozen facilities. We use our alliance partner Nichirei

and reflections on what we have done in the past.

Cool
Shipper

Cool

Collection

Outbound Sales Offices

Long-Haul Transport

Transfer Site

Collected in a
dedicated coolvehicle or vehicle
that supports threetemperature levels

All sales offices fully
installed withcooling facility

Transport fromoutbound sales
office to transfer sitein cool vehicles

Sorting by delivery
area at Nichirei
Logistics Groupsites around Japan

Cool

Cool

Recipient

Delivery

Delivery Sales OfficeLong-Haul Transport

Taken to thedoor in ashoulder bag fordelivery

Delivery in a dedicatedcool vehicle, vehicle
that supports threetemperature levels or
cool boxes

Sorting by eacharea in cold andfrozen facilities

Transport fromtransfer site todelivery sales officein cool vehicles

Temperature levels for transport
Available shipping sizes

Cool: 2˚C to 10˚C at a standard of 5˚C, Frozen: -18˚C or colder
A total size of 140cm or less on three edges and weight of 20kg or less108

Achieving a Safe and Secure Transportation Society

Promoting Environmentally Friendly Business Activities Building an Organization of Diversity and Inclusion

Creating New Value Through Comprehensive Logistics Solutions

Contributing to Communities

Promoting Sustainable Procurement

Building a Responsible Management Foundation■Mechanisms for Fully Applying Customer Feedback
Breakdown of Improvement Requests

Sagawa Express is working to enhance mechanisms toleverage the valuable feedback of our customers in service
improvements as well as product and service development.
We specifically and finely classify the feedback the company
receives from customers using text mining technology andvisualize the claims and requests. These are used to improvecustomer satisfaction.
In the future, we will work to further improve the company’s
response to customer opinions and feedback in customer
satisfactions while we take the precision of our analyses to thenext level.

Other 14.7%

Systems 2.1%
Collection 2.1%
Product
accidents
3.1%
Manners
16.6%

Delivery,re-delivery,
failed delivery
notice, etc.
61.5%

■Holding Quality Championships
SG Moving has established the further improvement of “service
quality” in its main businesses of moving and equipment
transport and installation business as priority issues, and is
focusing on the development of specialized staff. As part ofthis, the Quality Championships have been held since 2012,providing a competition for manners to customers, advanced
knowledge and skills in an effort to improve service quality.
The championships were held for the sixth time in fiscal 2017,and a total of 24 people in 12 teams selected from throughout
Japan including partner companies participated. The
competition is based on the total score made up of two kinds ofresults; a written examination that tests skills developed ineveryday work and combined event (packaging, carrying andassembly). This year, a female team displaying detailed workand manners was victorious. In addition, more than 500 guests
were invited from inside and outside the company to view
demonstrations of the Company’s advanced technologicalcapabilities, such as new initiatives to install air conditioners
and built-in stoves, and the unloading and installation of large,
heavy objects such as endoscopic surgery robots andgate-type metal detectors.

The winning team during the competition■Provision of Warranties
vehicles including chassis in body manufacturing, and also
engaging in a variety of quality measures for providing
warranties in vehicle maintenance.

SG Motors is endeavoring to establish a quality assurance
system for products and service provided to customers.
Since 2016, the company has been selling warranties for used
vehicles, selling comprehensive warranties for mobile vendor

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Achieving a Safe and Secure Transportation Society

Promoting Environmentally Friendly Business Activities Building an Organization of Diversity and Inclusion

Creating New Value Through Comprehensive Logistics Solutions

Contributing to Communities

Promoting Sustainable Procurement

Building a Responsible Management Foundation

Awards and Certification/Accreditation■Awards●Six recipients of awards in the national competition of the “56th Telephone Response Competition” hosted by
the Japan Telecom Users Association■Certification/Accreditation●Acquisition of ISO 9001:2015 international standard for quality management systems- Sagawa Express Co., Ltd. (458business sites)- SG Moving Co., Ltd. (Head Office Sales Department, Tokyo Branch)- SG Systems Co., Ltd.
(Kanto Branch / Tokyo Contact Center,
Telematics Solution Unit / BPO Sales Unit 1 /BPO Sales Unit 2 / BPO Strategy PJ, Kanto BPS Center,
Kansai Branch / Kansai BPS Center,
Telematics Solution Unit / Kansai BPS Center,
Okinawa Contact Center, Fukushima BPS Center)- Expolanka Freight (India and Sri Lanka)- SG Sagawa Ameroid●SG Moving has passed “IKEA IWAY”
IWAY is “The IKEA Way on Purchasing Home
Furnishing Products.” It stipulates the minimum
requirements demanded of IKEA’s suppliers concerning
the environment, working conditions and child labor, andwhat suppliers can expect of IKEA.

Letter from IKEA

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Achieving a Safe and Secure Transportation Society

Promoting Environmentally Friendly Business Activities Building an Organization of Diversity and Inclusion

Creating New Value Through Comprehensive Logistics Solutions

Contributing to Communities

Promoting Sustainable Procurement

Building a Responsible Management Foundation

Contributing to Communities

Policy112P

Initiatives

112P

Affiliated Organizations

123P■Awareness of Social Issues■Impact

In Japan, revitalizing regional communities amidst aComprehensive Partnership Agreements for
Regional Revitalization

declining and aging population is a pressing issue. The
SDGs recognize the mutual links between

3environmental, economic, and social issues andemphasize integrated solutions. As a socially
responsible corporation operating in communities around

As of March 31, 2016

the world, the SG Holdings Group is working to solve
community challenges through an integrated approachthat includes all three factors. In Japan, we implement
various initiatives to contribute to sustainable
development, including disaster recovery assistance andforming comprehensive partnership agreements forregional revitalization with local governments.

111

26

As of July 31, 2018

Achieving a Safe and Secure Transportation Society

Promoting Environmentally Friendly Business Activities Building an Organization of Diversity and Inclusion

Creating New Value Through Comprehensive Logistics Solutions

Contributing to Communities

Promoting Sustainable Procurement

Building a Responsible Management Foundation

Policy■ApproachAs a socially responsible corporation operating incommunities around the world, the SG Holdings Group
strives for the social harmony through its business inlogistics, which serves as a social infrastructure.
Following our SG Holdings Group Charter of Corporate
Conduct and Code of Ethics and Conduct, we arefocused on three areas of initiative: supporting andpartnering with local governments, providing services
that contribute to community development, and fostering
future generations and contributing to overseas
communities.

Initiatives■Supporting and Partnering with Local Governments●Reconstruction support for local governments in the disaster-affected areas
Headquarters and the affected local government,
Kumamoto City, in the 2016 Kumamoto Earthquakes,
and from the affected Asakura City in the 2017 Northern
Kyushu Flood. Additionally, Sagawa Express has formed
disaster support agreements with 65 local governments(as of August 31, 2018).

Sagawa Express provides various forms of recovery
assistance when disaster strikes, such as transporting
emergency supplies and distributing them to evacuation
centers in affected areas. The company supported relief
operations including transporting supplies in response torequests from the Cabinet Office Disaster Control●Supporting community disaster risk reduction

Transport and Saitama City. Using the Kitakanto Branch
Saitama Sales Office as an in-city distribution center,participants practiced a fully integrated truck-basedtransport operation connecting regional distribution
centers in Saitama prefecture with local evacuation
centers.

As a designated public institution under the Disaster
Countermeasures Basic Act of Japan, Sagawa Express
assists local governments in the efficient preparation andimplementation of their disaster risk reduction plans. In
January 2018, the company collaborated in a training
event for transporting disaster relief supplies,
co-organized by the Ministry of Land, Infrastructure and112

Achieving a Safe and Secure Transportation Society

Promoting Environmentally Friendly Business Activities Building an Organization of Diversity and Inclusion

Creating New Value Through Comprehensive Logistics Solutions

Contributing to Communities

Promoting Sustainable Procurement

Building a Responsible Management Foundation

ColumnCase Study: Disaster Recovery Assistance in Asakura, Fukuoka

The SG Holdings Group provided disasterschool gymnasium, which served as arecovery assistance for about three months

consolidation center, to the Group’s distribution(August 8 to October 31, 2017) in response to awarehouse. At the warehouse, Sagawa Global

request from Asakura City, Fukuoka Prefecture,

Logistics organized the supplies by type andwhich was heavily damaged by torrential rains that

otherwise managed consolidation to streamline

hit northern Kyushu in July. Initially, the task of

shipments, while also handling receipt, storage,

managing relief supplies and delivering them toand shipping operations. Sagawa Express’s Sales

evacuation centers was handled by city

Drivers delivered relief supplies along fixed routes,

employees, but the pace of organizing supplies

while SG Systems provided support operations via

and the burden of the work proved too great for

its call centers. By collaborating in this way, Groupthem to handle alone.

companies found comprehensive and integrated

To address these issues, the SG Holdings Groupsolutions to the needs of affected local

set up a system that allowed city employees togovernments, thus enabling a more efficient

focus on their usual tasks and on reconstruction.

recovery.

SG Moving relocated the relief supplies from a

Ex-consolidation
center(school gym)

Relocate
supplies

SGL Sue(distribution
warehouse)

A course
Fixed route delivery of relief
supplies by Sagawa Express
B course

Transport relief
supplies (donations)from individuals/
companies

Give shipment
instructions/
Reception

Evacuation centers
Receive requests fornecessary supplies
from evacuation centers
Asakura City Hall

Individual
Information sharing
Company Respond to inquiries about supply
donations from individuals/companies

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Promoting Environmentally Friendly Business Activities Building an Organization of Diversity and Inclusion

Creating New Value Through Comprehensive Logistics Solutions

Contributing to Communities

Promoting Sustainable Procurement

Building a Responsible Management Foundation●Comprehensive partnership agreements for regional revitalization with local governments
Regional Japan faces a growing array of challenges, and many
local governments are taking proactive steps to build attractive,
livable communities. As a nationwide business, Sagawa
Express is entering into comprehensive partnershipagreements for regional revitalization with local governments
and actively seeking solutions to diverse issues. As of July 31,
2018, we’ve formed partnerships with 18 prefectures and 8
cities across Japan.
These agreements are broad in scope, covering everythingfrom economic revitalization to disaster recovery. Examples
include contributing to tourism through the promotion of“Hands-Free Travel" building systems to help distribute andsell local products, and transporting relief supplies during
disasters. To help build more secure and comfortablecommunities, we are also advancing initiatives that addresssocial issues, including fostering children and youth, supporting
the elderly and people with disabilities, and conserving theenvironment.

Partnership agreement signing ceremony with Okayama Prefecture

History of partnership agreements formed
2015

June

2016
March

2018

January

Tottori Prefecture

Kyoto Prefecture

February

Okayama Prefecture

Yamanashi Prefecture

March

Hiroshima City

Hirado City

Osaka Prefecture
AugustMay

Aichi Prefecture

Yokohama City
July

Tochigi Prefecture
October

Okayama City
Kagoshima Prefecture

2017
February

Miyazaki Prefecture
Niigata City
Kumamoto City

March

Gunma Prefecture
Shimane Prefecture

May

Yamaguchi Prefecture
Nagoya City

AugustOita Prefecture
Kochi Prefecture

September

Ehime Prefecture

October

Mie Prefecture

December

Shizuoka Prefecture

Hokkaido

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Promoting Environmentally Friendly Business Activities Building an Organization of Diversity and Inclusion

Creating New Value Through Comprehensive Logistics Solutions

Contributing to Communities

Promoting Sustainable Procurement

Building a Responsible Management Foundation■Providing Services that Contribute to Community Development●“Hands-Free Travel” service
The partnership agreement signed with each local
government includes “Hands-Free Travel,” a service thatcollects baggage from tourists and delivers them to their
desired location so they can enjoy traveling hands-free.
The services are offered at 15 permanent stores acrossJapan (as of April 2018), with11 counters in them
designated by the Ministry of Land, Infrastructure andTransport. As the number of tourists visiting Japan
grows, Hands-Free Travel encourages longer-distanceexcursions, thereby promoting tourism and revitalizing
metropolitan and tourist areas.
Tokyo Skytree Town Service Center

Meeting the growing inbound tourism demand
Sagawa Express operates a delivery counter at two
locations inside the JR Osaka station. Given the large
number of international tourists, English-speaking staff
are always available to provide easy access to services.
In April 2018, the company also began offering a bagcheck service inside the Hida Takayama Tourist
Information Center, a popular visiting spot for tourists,
located near Takayama Jinya, the heart of tourism in
Takayama City.

A delivery counter for inbound tourists inside
Osaka Station City (JR Osaka station)

Hands-Free Travel services used at events
Sightseeing Without Baggage services are offered not

for meeting demand, especially during Golden Week

just at permanent stores but also at various event

holidays when tourism peaks. Many users werevenues using temporary retail spaces. At Ashikagainternational tourists, and the spread of information over

Flower Park, Sagawa Express set up a temporary boothsocial media helped to increase the number of users.

in expectation that existing facilities would be insufficient115

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Creating New Value Through Comprehensive Logistics Solutions

Contributing to Communities

Promoting Sustainable Procurement

Building a Responsible Management Foundation

Permanent stores that offer Hands-Free Travel services

Store

Bag
check

Same-dayhotel
delivery

Airportpickup

Tokyo Skytree Town Service Center

◯

◯

◯

◯

◯

◯

Tokyo Service Center

◯

◯

◯

◯

◯

◯

Asakusa Kaminarimon Service Center

◯

◯

◯

◯

×

◯

Shinjuku Service Center

◯

◯

◯

◯

×

◯

Terminal Ginza delivery Counter

◯

◯

◯

◯

◯

◯

Kanagawa

LaLaport Ebina delivery Support Center

◯

×

×

◯

×

×

Gifu

Hida Takayama Tourist Information Center inside
Takayama Hand Baggage Counter

◯

×

×

◯

×

◯

Osaka Station City Tourist Service Center Delivery Counter

×

◯

◯

◯

◯

×

Travel Service Center Osaka Delivery Counter

◯

◯

◯

◯

◯

×

Kyoto

Kyoto Station Delivery Counter

×

×

×

◯

×

×

Ehime

Matsuyama Airport Home Delivery Counter

×

◯

×

◯

×

◯

Hakata Deitos Delivery Service Counter

×

×

×

◯

×

◯

Fukuoka Service Center

◯

◯

◯

◯

×

◯

Kagoshima

Kagoshima Central Station Baggage Storage

◯

◯

×

◯

×

×

Okinawa

Naha Airport delivery Counter

×

×

×

◯

×

◯

Prefecture

Tokyo

Domestic International MLIT
shipping shipping designation

Osaka

Fukuoka*

As of April 30, 2018
*At Fukuoka Service Center, two Hands-Free Travel counters are designated.

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Promoting Environmentally Friendly Business Activities Building an Organization of Diversity and Inclusion

Creating New Value Through Comprehensive Logistics Solutions

Contributing to Communities

Promoting Sustainable Procurement

Building a Responsible Management Foundation●Mixing freight and passengers with local transport networks
through reduced CO2 emissions, but also helps maintainbuses, trains, and other transport infrastructure thatprovides essential services to community residents.

Sagawa Express is promoting the mixing of freight andpassenger transport. Low passenger demand caused bypopulation decline and aging has made it difficult forcommunities, especially those experiencing
depopulation, to maintain infrastructure and secure laborfor transportation. By marrying different transport modes,
the company has built and begun operating systems thatmake use of excess capacity in each mode, thereby
solving their respective issues.
Transporting freight using excess capacity on trains,
buses, taxies, and other modes reduces truck
shipments, which not only benefits the environment

Going forward, we hope to create more success stories
in solving social issues by continuing to accurately
identify the specific issues communities face and bycomprehensively and organically changing the way
people and goods are carried through collaboration withstakeholders, such as through comprehensive
partnership agreements with local governments anddeeper partnerships with local businesses.

Milestones
Apr.

Began mixed transport of freight and passengers between Uragawara (Joetsu City, Niigata)and Muikamachi (Minami Uonuma City).

Hokuetsu Express
Chubu District Transport Bureau, MLIT

Aug.

Began a pilot test of a mixed freight and passenger model using fixed-route buses between
Takayama City, Gifu, and Matsumoto City, Nagano (until November 2017).

Nohi Noriai Jidosha
Alpico Kotsu

2017

Iyotestu Group
Sep.

Began offering the fixed-route bus service that delivers baggage to partner hotels in
Ehime Prefecture.

Uwajima Bus
Setouchi Bus

2018

Nov.

Asahikawa Chuo Limousine Taxi

Feb.

Ugokotsu

Mar.

Akita Chuo Kotsu

Jun.

MK
JAL ABC

Began a mixed freight and passenger model using shared taxis between
JR Higashi-Asahikawa Station and Peipan district in Hokkaido.
Pilot test between Yurihonjo City and Nikaho City (until February) and between Funagawa
and Kitaurayumoto in Oga City, Akita Prefecture (until March)

Began providing same-day baggage delivery service using shared taxis between
Kansai International Airport and locations in Kyoto City.

Shipping freight along with passengers on a shared taxi (Asahikawa Chuo Limousine Taxi)

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Promoting Environmentally Friendly Business Activities Building an Organization of Diversity and Inclusion

Creating New Value Through Comprehensive Logistics Solutions

Contributing to Communities

Promoting Sustainable Procurement

Building a Responsible Management Foundation●Home delivery service provided by retirement-aged workers
In the cities of Imari, Saga, and Kitakyushu in southern
Japan, local seniors are delivering packages for Sagawa
Express. The project is a business partnership between
Sagawa Express and local governments. Sagawa
Express delivers packages to distribution centers in eachregion, where retirement-aged staff transfer the
packages to a bicycle or hand cart and deliver them tonearby homes and businesses. This project not only
alleviates labor shortages in the logistics industry andreduces the burden on drivers, but also helps seniors
find paid work and can even be used in neighborhood
watch activities. The company plans to expand delivery
areas and workers going forward.

●Opening of the Nagasaki Business Support Center
SG Expert opened the Business Support Center in
Nagasaki City with the goal of strengthening disaster
preparedness as part of its Business Continuity Plan
(BCP) and securing a stable base of skilled humanresources. The center is the largest regional site for SG
Expert and the first in Nagasaki Prefecture to berecognized by a national program which aims for transfer
and expansion of headquarters functions away frommetropolitan areas. The center is also contributing to job
creation in the region.

●Alliance with Lawson, Inc.

SG Holdings created a business alliance with Lawson,
Inc. in 2015 and established the SG Lawson, Inc. joint
venture company. The business delivers Sagawa
Express packages and Lawson products within 500
meters of participating Lawson stores by hand cart orbicycle. It reduces environmental impacts while also
providing employment to at-home parents and seniors
who just want to work close to home.

SG Lawson delivers packages by hand cart or bicycle118

Achieving a Safe and Secure Transportation Society

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Creating New Value Through Comprehensive Logistics Solutions

Contributing to Communities

Promoting Sustainable Procurement

Building a Responsible Management Foundation■Fostering Future Generations and Contributing to Overseas Communities●Safety awareness initiatives
Sagawa Express holds employee-taught Sagawa
Express Traffic Safety Classes in communities acrossJapan. The classes began from a desire to protect
children from tragic traffic accidents. Course content
includes how to properly cross the street and read roadsigns and traffic signals. Truck blind spots and situations
that likely lead to accidents are also explained using
actual trucks.
We also hold classes on request from local police, fromthe perspective of helping entire communities protect

A traffic safety classchildren’s safety. In fiscal 2017, 77,389 people
participated in 920 classes nationwide.

Number of Participants in Traffic Safety Classes

77,389*Fiscal 2017

*Includes traffic safety classes for seniors.

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Creating New Value Through Comprehensive Logistics Solutions

Contributing to Communities

Promoting Sustainable Procurement

Building a Responsible Management Foundation●Hands-on learning about logistics

Sagawa Express is a supporter of Logistics Frontline, awork experience event for children, organized and run
by the Future Innovation Forum (FIF) since 2007. The
event is part of their career education curriculum andencourages them to think about work and how society
functions.
In 2017, 18 fifth and sixth-grade students were chosen
by lottery to participate. They toured the cooling facilities
and trucks at the Sagawa Tokyo Logistics Center andpracticed delivering packages using next-generation
devices. Through hands-on experience, the children
learned about the mechanisms of the home delivery
business and the work people do in it, providing themthe opportunity to contemplate their own future careers.

Logistics Frontline, a work experience event●Hosting special education students for work experience

Sagawa Global Logistics provides professional

several students join the company through thetraining in partnership with nearby special schools. In

program (seven joined in April 2018). Moreover, since

the first year, students become familiar with logistics

alumni look after younger students from the same

operations through visits to workplaces. In the second

school, a comfortable work environment is createdyear and beyond, they undergo practical training inwhich allows their guardians to feel a sense of

preparation for future employment. Every year,

security.

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Creating New Value Through Comprehensive Logistics Solutions

Contributing to Communities

Promoting Sustainable Procurement

Building a Responsible Management Foundation●Sports initiatives

The SG Holdings Group makes various efforts to help

School Ekiden Championship, held every December infoster the next generation through sports.

Kyoto, to support the development of young high-school

Since 2016, we have held the SG Holdings Kids Sports

runners.

Camp at our Moriyama Park athletic facility. In 2017, we

Sagawa Express hosts the Sagawa Shiga Footballinvited top athletes Yuko Arimori (marathon runner) and

Academy in Moriyama Park, supporting the healthy

Taeko Utsugi (softball player) and pro dancer Kento Moridevelopment of local children through soccer by running

to provide first-rate instruction to 57 participatinga junior youth team for junior high school students and aelementary school students. The event was ansoccer school for kindergarten and elementary school

opportunity for the children to learn important social

children. It also holds soccer events at kindergartens

skills through sports, such as teamwork, greeting others,

mainly in Moriyama City; in fiscal 2017, 650 kindergarten

and respecting peers by following rules.

students enjoyed soccer at 13 locations.

Since 2016, we have sponsored the All-Japan HighSG Holdings Kids Sports Camp 2017

Track and field: Group photo of Yuko Arimori and participating children

Softball: Children receiving instruction from Taeko Utsugi

All-Japan High School Ekiden Championship 2017

Sagawa Shiga Football Academy

Photo credit: Mainichi Newspapers Co., Ltd.

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Contributing to Communities

Building a Responsible Management Foundation●Local contribution activities of Expolanka (Sri Lanka)

Expo Microfinance for emerging Entrepreneurs
Expolanka has provided Rs.1 million for the microfinancing project through the revolving funds pumped in2016. So far 250 beneficiaries benefited and developed
as entrepreneurs through trainings.

Putting a Smile on the EFL Neighborhood
The “EFL Cares” team distributed gifts to 350 houses
targeting the children around the Expolanka Freight(EFL) campus area during the Christmas season tobring the spirit of Christmas in the neighborhood and thiswas conducted for the second consecutive year.

Expolanka Group Initiative – ROOM TO READ
Due to the recent floods many schools have been
devastated and libraries were also ruined. Expo Group
Care initiated a book collection programme from thegroup staff in order to restore libraries in affectedschools.

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Promoting Sustainable Procurement

Achieving a Safe and Secure Transportation Society

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Creating New Value Through Comprehensive Logistics Solutions

Contributing to Communities

Promoting Sustainable Procurement

Building a Responsible Management Foundation

Affiliated Organizations■SGH Foundation
The SGH Foundation, a public interest incorporated

welfare. Its mission is to contribute to a broad,foundation, supports research and business dedicated tomulti-faceted array of social activities toward creating a

the promotion and development of economy andvibrant globalized society.

industry, education and culture, and healthcare and●Study abroad scholarships
The SGH Foundation provides scholarships toself-funded international students from countries inSoutheast Asia. Since this program began in 1986, 510
students have been selected for scholarships totaling
1,154 million yen. Besides financial assistance, thefoundation also strives to give the students a richexperience in Japan by publishing written anthologies
and holding award ceremonies, social gatherings, andreunions. In fiscal 2017, 97 students from 83 universities
across Japan applied, of which 16 applicants wereselected for the program’s 32nd term.

Commemorative photo of scholarship recipientswith Chairperson Eiichi Kuriwada●Promotion of cancer research
The SGH Foundation issues grants and awards to basic
and applied research on cancer, hosts symposiums andopen workshops, and publishes reports on research
results. In fiscal 2017, grants were given to 15 of 195
applications from research institutions across Japan.
The foundation also presented the SGH Special Awardand the SGH Nursing Care Special Award to people whohave made distinguished contributions to cancer
research and the advancement of nursing care andshow strong future promise.
SGH Cancer Research Grant award ceremony• 29th SGH Cancer Research Grant: 15 recipients (15million yen)
• 15th SGH Special Award: 2 recipients (10 million yen)
• 15th SGH Nursing Care Special Award: 2 recipients (2million yen)123

Achieving a Safe and Secure Transportation Society

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Creating New Value Through Comprehensive Logistics Solutions

Contributing to Communities

Promoting Sustainable Procurement

Building a Responsible Management Foundation●International economic cooperation
The SG Holdings Group supports the development of
human resources in logistics by hosting trainees from
China and developing and emerging countries inSoutheast Asia and by dispatching experts to higher
education institutions specializing in logistics.
In fiscal 2017, we held an intensive course on logistics
for 120 students at the Ho Chi Minh City University ofTransport in Vietnam as a human resources
development program in partnership with the Ministry ofLand, Infrastructure, Transport and Tourism of Japan.
We also invited 10 Chinese university students who
major in logistics to Japan for an intensive course on
logistics.

■Sagawa Art Museum
The Sagawa Art Museum opened in March 1998 inMoriyama, Shiga Prefecture. The museum holds
permanent exhibitions of works by Ikuo Hirayama,
Churyo Sato, and Kichizaemon Raku, as well as various
temporary exhibitions. It promotes education and thecultivation of aesthetic sensitivity and expressivenessthrough the Sagawa Kids Museum, workshops, andother events.
In May 2017, the museum signed a partnership andcooperation agreement with Moriyama City to revitalize
the community through the promotion of local arts andSagawa Kids Museum: Magical Museum II (2017)

culture. As a cultural hub in Moriyama, the museum will
promote arts education and children’s development byfostering an understanding of and appreciation for the

Number of Museum Visitors in fiscal 2017

arts among residents. Specific activities include holding

172,342

arts appreciation classes for Moriyama City public
elementary school students and art courses for thegeneral public.

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Creating New Value Through Comprehensive Logistics Solutions

Contributing to Communities

Promoting Sustainable Procurement

Building a Responsible Management Foundation

Promoting Sustainable
Procurement

Policy126P

Initiatives

127P■Awareness of Social Issues■Impact

As calls for companies to address human rights and theenvironment increase globally, it has become necessary
to engage in sustainable business activities throughout
the entire supply chain in Japan and abroad. The

Business Partners

sustainable development goals (SDGs) set forth by theApprox.

United Nations also call for revitalization of partnerships,

16,000stating that they “can only be realized with a strong
commitment to global partnership and cooperation.”

Companies

The SG Holdings Group is a corporate group supported
by approximately 16,000 business partners (suppliers).
Promoting CSR activities throughout the entire supply
chain not only contributes to the development of asustainable society, but also our own development.

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Contributing to Communities

Promoting Sustainable Procurement

Building a Responsible Management Foundation

Policy■Approach
Sustainable collaborative relationships with businessviews on CSR and corporate stance on procurement.

partners (suppliers) are essential for the SG Holdings

These guidelines require business partners toGroup to conduct sustained business. We are aunderstand and corporate concerning 1) legal

corporate group supported by approximately 16,000

compliance, 2) maintenance and improvement of safety

subcontractors. The sustainability of subcontractors isand security, 3) consideration for human rights and work

one of the issues we face in our business.

environments, 4) fair trade transactions, 5) consideration

To ensure the prosperity of our business partners

for the global environment, 6) preservation of information(suppliers), we have established the SG Holdings Groupsecurity and 7) coexistence with local communities.

Business Partner CSR Guidelines indicating the Group’s■Business Partner CSR Guidelines

1.

Legal compliancecompetition. We will strive for co-existence
and mutual prosperity with our business
partners by building proper relationships oftrust.

We will strictly comply with domestic andforeign laws, and carry out fair and impartial
business activities based on corporate ethics.
2.

5.

Maintenance and improvement of safety
and security

We will take measures to prevent global
warming and air pollution, and promotebusiness activities with consideration for the
global environment.

We will consider safety and security to be ourhighest-priority issues. We will make every
effort to maintain and improve safety together
with our business partners.
3.

6.

Consideration for human rights and work
environments

Preservation of information security
We will carry out strict management ofconfidential information and personal
information related to our business activities,
and take steps to prevent acts such as
information leakage, theft, and manipulation.

We will respect basic human rights andensure a safe and sanitary work
environment. We will also strictly comply withany applicable regional laws.
4.

Consideration for the global environment

7.

Fair trade transactions

Coexistence with local communities
We will aid in the development of domestic
and overseas regional communities, andstrive for co-existence with society together
with our business partners.

We will carry out contact with our business
partners with an attitude of sincerity, andprovide opportunities for free and fair126

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Promoting Environmentally Friendly Business Activities Building an Organization of Diversity and Inclusion

Creating New Value Through Comprehensive Logistics Solutions

Contributing to Communities

Promoting Sustainable Procurement

Building a Responsible Management Foundation

Initiatives■Ensuring Safety at Business Partners (Suppliers)
The SG Holdings Group holds “Achieving a safe andand seminars for long-haul transportation companies

secure transportation society” as a key CSR issue. We

that are our main business partners (suppliers) in order

engage in a variety of initiatives such as safety patrols

to eliminate traffic accidents from society.

Long-haul Transport Safety Patrols
Sagawa Express Long-haul Transport Safety Patrols are
performed once every year for the purpose of preventing
traffic accidents and vehicle breakdowns involving
long-distance highway drivers. Midway roll calls andvehicle inspections are carried out in service areas andparking areas on major highways nationwide in an effort
to raise awareness aimed at preventing vehicular
accidents and vehicle breakdowns.
Number of Vehicles Participating in Long-haul
Transport Safety Patrols

1,888

Activity of the Long-haul Transport Safety Patrol

VehiclesImplemented in September 2017127

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Promoting Environmentally Friendly Business Activities Building an Organization of Diversity and Inclusion

Creating New Value Through Comprehensive Logistics Solutions

Contributing to Communities

Promoting Sustainable Procurement

Building a Responsible Management Foundation

Long-haul Transport Partner Company Safety Seminars
Management executives of long-haul transport partnercompanies are invited in an effort to share information

Number of Long-haul Transport Partner Companies

on safety required for trucking business operators. In
fiscal 2017, we invited external lecturers and held
seminars in two locations in the Kanto and Kansai

Approx.

regions on addressing the labor shortage and improving
the work environment, which have become problems in

300

Companies

As of March 31, 2017

the transportation industry.

Long-haul Transport Terminal Inspections
Long-haul Transport Terminal Inspections for providing
encouragement and performing routine inspections are

Number of Vehicles Inspected in Long-haul Transport
Terminal Inspections

carried out annually for drivers of long-haul

4,648

transportation companies who arrive at Sagawa Express
sales offices and hub centers. Managers including Sales
Office Managers of Sagawa Express and employees of

Vehicleslong-haul transport companies cooperate in all locationsof Sagawa Express to perform vehicle inspections prior

Implemented in April 2017

to departure using special check sheets.

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Promoting Environmentally Friendly Business Activities Building an Organization of Diversity and Inclusion

Creating New Value Through Comprehensive Logistics Solutions

Contributing to Communities

Promoting Sustainable Procurement

Building a Responsible Management Foundation

Building a Responsible
Management Foundation
Putting in Place a Corporate Governance System 136P
Ensuring Compliance

145P

Risk Management

147P

Information Security

151PAwards and Certification/Accreditation

155P■Our Thinking in Regard to Building a Responsible Management Foundation
Development of a sustainable society

We believe that it is essential that the SG Holdings Group, as acomprehensive logistics business providing social
infrastructure, build a responsible management foundation to
enable it to contribute to the development of a sustainable
society. We strive to establish our corporate governancesystem, ensure compliance with all applicable laws, andstrengthen risk management in accordance with thefundamental policies embodied in our Corporate Philosophy,
Corporate Charter of Business Conduct, and Code of Ethics
and Conduct.

Mid-termbusiness plan

Material
CSR Issues

Corporate
Philosophy
Corporate Vision

Become Asia's Leading Comprehensive Logistics Group

Declaration to Earn the Trust and Empathy of Society

Charter of Corporate Conduct(Code of Ethics and Conduct)

Expectations from Customer, Employee, Local
Community, Shareholder & Business Partner
Shareholders

Practical implementationby each employee

Business
partners

129

Collaboration

Local
Community

Customers
Employees

Collaboration

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Promoting Environmentally Friendly Business Activities Building an Organization of Diversity and Inclusion

Creating New Value Through Comprehensive Logistics Solutions

Contributing to Communities

Promoting Sustainable Procurement

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

●SG Holdings Group Charter of Corporate Conduct

Declaration to Earn the Trust and Empathy of Society
8 principles, in order to maximize stakeholder values,
respect human rights, both domestically andinternationally, and obey all laws, international rules
and the spirit thereof, with the aim of creating asustainable society with a strong sense of ethics.

The SG Holdings Group aims to be a company that isbeneficial to society, by creating added value, throughfair competition, whilst supporting the development of
economies and societies. All directors and employeesof the SG Holdings Group will act responsibly andwork together, at all times, to implement the following

Customers’ Expectations
1. We shall earn satisfaction and trust by developing and providing useful and convenient products and services, whilst aiming tocontinually improve our level of service.
Employees’ Expectations
2. We shall respect the diversity, character and individuality of each employee, and strive to create safe and employee-friendly
work environments that provide all employees with a sense of comfort and fulfillment.
Local Communities’ Expectations
3. We shall proactively carry out appropriate safety and environmental related activities, as we recognize that these are essential
to our business activities and the existence of the company.
4. We shall actively engage in philanthropic activities to contribute to society, as a "good corporate citizen."
5. We shall, in our global business activities, comply with the laws of each county and region, respect international standards,
including human rights, and contribute to the development of those countries; whilst respecting their cultures and customs,
and taking into account the concerns of stakeholders.
Shareholders’ & Business Partners’ Expectations
6. We shall communicate not only with our shareholders, but also with society as a whole and will proactively and fairly disclose
corporate information. Further, we will thoroughly protect and manage all the information we possess, including personal andcustomer information.
7. We shall engage in fair, transparent and free competition and proper transactions. We shall also maintain healthy and normal
relationships with political entities and government officials.
8. We shall resolutely oppose and disassociate from any anti-social forces and organizations that threaten social order and safety.

Management Stance
2. We, the management, shall make clear our stancetowards resolving any violations of this charter,
both internally and externally, investigate thecause and develop reforms to prevent
reoccurrence, and promptly and accurately
disclose information to the public.

1. We, the management, recognize that it is our
responsibility to uphold and implement the spirit ofthis charter, and to take the lead in promoting
awareness of this within the Group, as well as tobusiness partners. Additionally, we will establish
effective company-wide systems to promotebusiness activities and meet the expectations of
our stakeholders.

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Creating New Value Through Comprehensive Logistics Solutions

Contributing to Communities

Promoting Sustainable Procurement

Building a Responsible Management Foundation●SG Holdings Group Code of Ethics and Conduct

We will act in accordance with this Code of Ethics and Conduct, which is an embodiment of the Charter ofCorporate Conduct of the SG Holdings Group.
Section 1. With Customers’ Expectations ~We Continue Mutual Development~
1. Earning Satisfaction and Trust

4. Working Sincerely Responding to Confidence

We will continue to uphold “Hikyaku no Kokoro”(spirit of Edo-era express messengers), which isthe cornerstone of the Company’s foundation,
always act with the consciousness of being a
representative of the SG Holdings Group, andmake good faith efforts to meet our Customers’satisfaction.

We will respond to confidence of the customer byconducting operations with sincerity, following all
pre-determined rules, as well as abiding bycontracts and agreements with the customer,
when providing products and services.
5. Responding Actively to the Voice of the Customer

2. Developing and Providing Quality Products andServices
We will develop and quality products and services,
always from the viewpoint of the customer, toensure complete satisfaction of the customer.
3. Explaining in a Polite and Clear Manner
We will provide accurate information and explain ina polite and clear manner when providing products
and services to, and dealing with inquiries from,the customer.

We will listen attentively and respond actively tocustomers’ requests and complaints, and makeuse of such opportunities to develop and improve
products and services.
6. Management of Customers’ Personal andConfidential Information
We will carefully manage all customers’ personaland confidential information which is obtained in
the course of our operations, to prevent fraudulent
use, leak and falsification of the information.
Additionally, we will comply with all applicable laws
and the Company’s internal regulations and will
not use the said information for purposes otherthan the original intent nor will we provide it to athird party.

Section 2. With Employees’ Expectations ~We Jointly Create a Positive Workplace~
2. Safe Driving

1. Efforts toward Duties

We will adhere to safe driving principals based on
the common understanding that our group centerson transportation business.
■ Considering Vulnerable Road Users
We will drive carefully whenever we drive
vehicles, whether for work or privately, paying
particular attention to vulnerable road users,
such as children and elderly people.
■ Promoting Eco-Friendly Safe Driving
We will practice “Eco Safe Driving” of being
friendly to both people and the environment,
recognizing that eco-friendly driving leads tosafe driving.

We, as a member of the SG Holdings Group, will
engage in our duties, always keeping in mind to
improve ourselves and our colleagues.
■ Working Conscientiously and Thoroughness ofReporting, Communicating and Consulting
We will comply with all internal rules, including
working regulations, ensure to report to,communicate and consult with supervisors,
maximize our performance and sincerely
engage in our business operations.
■ Personal Development and New Value
Creation
We will make positive efforts to achieve
personal development and create new values,
making use of each personality andcharacteristics at the workplace.

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Contributing to Communities

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Building a Responsible Management Foundation

3. Fostering a Healthy Work Environment
We will care for each other and respect each
person’s way of thinking and position at theworkplace in order for all employees to work withvigor and enthusiasm.
■ Respect for Human Rights, Individuality andPersonality
We will respect each person’s human right,
individuality and personality and create aworkplace environment that maximizes theabilities of individual employees.
■ Respect for Beliefs of Others
We will respect the freedom of religious beliefsof all employees, and prohibit religious
solicitation, slander or libel. We will also respect
the political beliefs of all employees and will notcarry out political activities in the workplace
without the Company’s prior approval.
■ Safe and Healthy Workplace
We will adhere to the rules and regulations
pertaining to the workplace, including 6S
activities (Seiri, Seiton, Seiketsu, Seisou,
Shitsuke, Sahou) (Sorting, Setting-in-Order,
Standardizing, Shining, Sustaining theDiscipline, Showing the Good Manner).
■ Greetings and Communications
We will encourage greetings andcommunications and promote mutual
understanding in order to create a vibrantworkplace environment that increases job
satisfaction.

■ Protection of Employees’ Personal Information
We will respect the privacy of each employee.
Additionally, we will protect and manage thepersonal information of all employees pursuant
to all applicable laws and internal regulations,and will not use the personal information for
purposes other than the original intent, nor will
we provide it to a third party.
■ Prevention of Discrimination and Harassment
We will not engage in unjust discrimination,
sexual harassment, power harassment or otheractions in the workplace, which may violate
human rights. Should an employee feel he/she
is experiencing such discrimination, he/sheshould immediately report the matter to his/hersupervisor or the Company. If the situation
cannot be resolved, he/she should report thematter to the “Compliance Hotline” pursuant to
the Company’s Internal Whistleblowing
Regulations.

The Company will make appropriate
efforts by conducting impartial
investigations. Additionally, we will comply
with all internal reporting rules, and assure
anonymity of the informer, in order for
him/her not to be treated unfairly.

4. Management of the Company’s Assets andInformation
We understand the significance of the Company’s
assets, information and intellectual properties, andwe will protect the rights of our Company while
respecting the rights of other companies.
■ Prohibition of Inappropriate Use of Company
Assets
We will not use the Company’s assets, whether
tangible or intangible, such as the Company’s
products, information and intellectual
properties, for personal gain and / orinappropriate purposes.

132■ Information Management
We will, pursuant to the Information Security
Basic Policy, be always aware that protecting
the Company’s information assets including
confidential information is our societal
responsibility, and strictly manage theinformation. We will also not use theinformation improperly or unfairly nor discloseor leak the information, even after theretirement.
■ Intellectual Property Management
We will ensure proper management of theCompany’s intellectual property and will not
infringe the copyrights patents and otherintellectual property rights of other companies.

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Promoting Environmentally Friendly Business Activities Building an Organization of Diversity and Inclusion

Creating New Value Through Comprehensive Logistics Solutions

Contributing to Communities

Promoting Sustainable Procurement

Building a Responsible Management Foundation

5. Compliance with Laws and Behavior in a Sensible
Manner Respecting Social Norms
We will abide by all domestic and internationallaws. We will also respect social norms, act in asensible manner by high ethical standard, andupkeep the good name, reputation and brand of
the Company, even in our private lives.
■ Prevention of Improper Activities andEstablishment of Ethics
We will make efforts to establish the Company
culture and ethics to prevent misconduct, not tooverlook misconduct and not to hidescandalous events, by acting in a sensible andresponsible manner in accordance with thisCode of Ethics and Conduct as well as byabiding by all laws.
■ Respect for Human Rights and Prohibition ofDiscrimination
We will not use child labor or forced labor in all
countries that may lead to human rights
abuses. We will prohibit discrimination andmistreatment based on race, ethnic group,
nationality, religion, belief, gender, social
status, handicap, disease and so on. We will
also not overlook such discrimination andmistreatment by others.
■ Distinction between Private and Public Matters
We will keep private and public mattersseparated in the workplace, and will not takeadvantage of our position or title to achieve
personal gain or offer facility for a third party.
We will also not obtain personal rewards,
borrow money from, or lend money to, ourcustomers or business partners.
■ Propriety of Business Entertainment Expenses
We will ensure that all gifts, dinners and otherbusiness entertainments are within sociallyacceptable bounds and such entertainments
are not used for improper purposes.

133■ Dealings with Government Officials andPoliticians
We will ensure to use care in our dealing withpublic officials, abide by applicable laws, andnot offer gifts or entertainment in a way which
may be misconstrued as collusion or bribery. In
addition, we will not make unlawful
contributions to politicians, political parties orelectoral candidates.
■ Handling of Material Non-public Information(Insider Information)
We will abide by laws and internal regulations
pertaining to insider trading. If we have come toknow insider information in the course ofbusiness, we will not trade the Company’s
shares nor will we provide the information to athird party including our family, before theinformation is publicized.
■ Reporting to the Company and Notifying
Appropriately
Should we find or realize a misconduct or
mistake, we will report it to the Company or our
supervisors immediately. If the situation cannot
be resolved, then we will report it to the“Compliance Hotline” pursuant to theCompany’s internal reporting rules.

The Company will make efforts to resolve
the issue appropriately through impartial
investigations. Additionally, pursuant to allinternal reporting rules, we will ensure
anonymity of the informer and be careful
not to get the informer mistreated.

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Promoting Environmentally Friendly Business Activities Building an Organization of Diversity and Inclusion

Creating New Value Through Comprehensive Logistics Solutions

Contributing to Communities

Promoting Sustainable Procurement

Building a Responsible Management Foundation

Section 3. With Expectations of Local Communities ~We Continue to Move forward~
1. Living in Coexistence with Local Communities

3. Environmental Protection

We will pursue to live in coexistence widely withsociety through our contribution to local community
development both domestically and internationally.
■ Open Enterprise
According to societal expectations, we will
ensure transparency in all our businessdealings by actively disclosing corporate
information and promoting communications
with society.
■ Interacting with Local Communities
Toward the realization of a prosperous healthyand secure society, we will make efforts tointeract widely with local communities throughvarious events, disaster relief activities andvolunteer activities.
■ Respect for Local Culture and Customs
We will give consideration to stakeholders ineach country and respect the culture andcustom of each country and region.
2. Safety Activities
Following the principal of “Safety above all else”
we will practice approaches to safety in all ourbusiness activities.

We will, pursuant to our environmental principle
and policies, promote earth-conscious businessactivities, and make efforts to establish acirculating society.
■ Prevention of Global Warming
We will make efforts to prevent global warming
through providing environmentally friendly
products and services and making efforts forresource saving and energy conservation.
■ Pollution Prevention
We will make efforts to prevent air, water andland pollution as environmental preservation
activities.
■ Environment Education Initiatives
We will develop awareness of environmental
issues through environment education program
toward environmental load reduction andconservation / restoration of the environment.
■ Environmental Communication Initiatives
We will, toward mutual understanding with local
communities, make wide-ranging efforts forenvironmental communication, mainly intended
for children who are responsible for next
generation.
4. Supporting the Arts, Academic and Sports
We will support the arts, academic and sports,
through the actions of our foundations and sportclub activities.

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Promoting Environmentally Friendly Business Activities Building an Organization of Diversity and Inclusion

Creating New Value Through Comprehensive Logistics Solutions

Contributing to Communities

Promoting Sustainable Procurement

Building a Responsible Management Foundation

Section 4. With Expectations of Shareholders and Business Partners ~We Establish Mutual Trust~
1. Dialogue with Shareholders

4. Free and Fair Competition

We will be fair to all shareholders, and convey
accurate management information, so as to build
understandings and trust. We will also value
dialogues with shareholders, take their opinions
and suggestions seriously, and make efforts forsound and transparent corporate management.

We will not participate in collusive behavior which
restricts free and fair competition. We will also,
based on the competition principle, abide byapplicable laws such as antitrust laws, compete
openly and squarely, and will not defame orcalumniate competing companies.

2. Ensuring Reliability of Financial Reports

5. Dealing with Anti-Societal Groups

We will ensure the reliability of financial reports
through proper accounting procedures inaccordance with applicable laws and theCompany’s internal regulations.

We will maintain an attitude of resolution against
anti-social organizations / persons such as ganggroups and reject all inappropriate requests fromthem. If such requests are received, we will
immediately report it to our supervisors or theCompany. If the situation cannot be resolved, we
will report to the “Compliance Hotline.”

3. Coexistence and Prosperity with Business
Partners
We will mutually develop with our business
partners by adapting sincere attitude to thebusiness partners and building proper trust
relationships.
■ Prohibition of Abuse of Dominant Bargaining
Position
We will maintain a fair and equal relationshipwith others and will not take advantage of ourdominant bargaining position to force productpurchase products or financial burdens. We will
also not make unilateral demands for lowering
prices and shortening delivery time, without
valid reasons.
■ Management of Confidential and Personal
Information of Business Partners
We will rigidly manage our business partners’
confidential and personal information obtainedin the course of operations, to prevent
fraudulent use, leak and falsification of theinformation. We will also abide by applicablelaws and contractual provisions and will not use
the information for the purposes other than theoriginal intent nor provide it to a third party.

135

The Company will make it a priority toensure the safety of all employees, andresolve the matter organizationally andlawfully in cooperation with the police,
lawyers and other professionals.
Employees must not judge or resolve thematter by themselves.

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Creating New Value Through Comprehensive Logistics Solutions

Contributing to Communities

Promoting Sustainable Procurement

Building a Responsible Management Foundation

Putting in Place a Corporate Governance System■Policy●Approachequal and fair transactions with business partners. We haveformulated the SG Holdings Basic Policy of Internal Control
System as a statement of our internal control policies and work
to strengthen all of our systems accordingly based on the firm
conviction that creating a transparent management andadministrative structure through strong and comprehensive
corporate governance is a key requisite for realizing
stakeholder management.

The SG Holdings Group supports the concept of “Stakeholder
Management” as the foundation of its management philosophy
and promotes business activities which meet the expectationsof our various stakeholders by 1) continuous improvement of
our level of customer service, 2) stabilization and improvementof the foundation of living of our employees and their families,3) contribution to local communities, their safety andenvironment through diverse business and social activities, 4)enhancement of corporate value for our shareholders and 5)

Basic Policy of Internal Control
SG Holdings Co., Ltd. (hereinafter called as the“company”) has prescribed the Basic Policy of Internal
Control (hereinafter called as the “basic policy”) in order toestablish a transparent management system whichenables the company to fulfill expectations and trusts fromall the stakeholders, under the SG Holdings Group(hereinafter called as “SGH Group”) corporate philosophy
of “Trust, Create, Challenge” as below:

1. The system to ensure that Directors and employees execute their duties in compliance with the laws andregulations and the articles of incorporation
(1)

(2)

(3)

The company shall prescribe “Charter of Corporate
Conduct” and ”Code of Ethics and Conduct” of SGH
Group in order to establish a corporate culture inwhich directors’ and employees’ business operations
are conducted in compliance with the laws andregulations and the articles of incorporation. It is the
President’s responsibility to consistently
communicate the spirit of “Charter of Corporate
Conduct” and ”Code of Ethics and Conduct” todirectors and employees for penetration and educate
them to place the utmost priority on compliance inevery aspect of business operations.
The company shall prescribe policies andprocedures, etc. in accordance with related
regulations, and regularly review the basic policy,
other policies, procedures, etc. to ensure that they
are workable by addressing the changes, etc. in the
management environment.
The company shall appoint outside director toenhance monitoring function over directors’ executionof duties.

(4)

(5)

136

The company shall prescribe ”Internal Whistleblowing
Regulations” in order to prevent or facilitate early
detection of fraud, misconduct, etc., within the SGH
Group and establish “Compliance Hotline” - aninternal whistleblowing system of SGH Group. In
order to make the system workable, the company
shall place contacts inside and outside the company
to encourage the use of the system. The company
shall take prompt and appropriate measures for thereports made through the system according to“Internal Whistleblowing Regulations”.
In order to exclude antisocial forces that threaten theorder and security of civil society, the company shallprescribe the “Exclusion of Anti-social Forces
Regulations” and be fully committed to halting thedevelopment of any relationships with antisocial
forces by rejecting to respond to undue claims,
execute secret deals, provide funding, etc.
Additionally, in cooperation with outside professional
institution, the company shall address antisocial
forces in an organized and legally-compliant mannerand prioritize the security of Directors andemployees.

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Creating New Value Through Comprehensive Logistics Solutions

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Building a Responsible Management Foundation

2. The system to retain and manage the information related to the execution of duties by directors
laws and regulations and related policies.
(3) The information described in (2) above shall be kept
accessible for the timely use when in need.
(4) The company shall appropriately manage personal
information according to laws and regulationsand ”Personal Information Protection Regulations”.

(1) The company shall prescribe ”Information Security
Basic Policy” and establish information security
management system in order to appropriately
retain/manage information assets.
(2) The company shall appropriately retain/manage
significant information/decisions, etc. related to
execution of duties by directors in compliant with

3. The policies and other systems to manage the risk of loss
(1) In order to manage risks appropriately and efficiently,
the company shall prescribe ”Risk Management
Regulations” and establish risk management system
for the SGH Group, as well as responding
appropriately to the events that may damage
corporate management, business operations or
corporate image, or that may pose significant impact
to the society as a whole.
(2) The company shall hold "Risk Management Meetings
for the SGH Group" on a regular basis to minimizerisks, to prevent realization of them and to mitigate
loss from the realization of the risks, and enhancerisk management system.
(3) The company shall set forth Business Continuity Plan
(BCP) to minimize the business outages and fulfill thesocial responsibility even in the face of emergencies,and establish/operate Business Continuity
Management (BCM) system.

4. The system to ensure that the Directors’ duties are efficiently executedmanagement decisions in the Board of Directors
Meetings.
(3) In order to improve management efficiency, thecompany shall prescribe” and “Group Management
Plan Administration Regulations”, and authorize a
mid-term business plan and a single-year budget in
the Board of Directors Meeting, and directors shall
execute their duties efficiently based on theplan/budget.

(1) Directors shall execute their duties based on theorganizational structure and duties and authorities
authorized by the Board of Directors. The Board of
Directors shall monitor that the Directors’ duties are
executed appropriately and efficiently.
(2) The company shall discuss management issues
among its directors and hold directors’/corporate
auditors’ meetings to share significant management
information on a timely basis to make efficient

5. The system to ensure appropriateness of operations within SGH Group(1) The company shall prescribe the SGH
Group’s ”Charter of Corporate Conduct” and ”Code of
Ethics and Conduct” and be fully committed tocomplying with them to share the common behavioral
guidelines.
(2) The company shall prescribe “Business Corporations'Management and Operation Regulations”and ”Overseas Corporations’ Management andOperation Regulations” to support business
management in every business corporation, paying
due regard to their independence in management.
(3) The company shall hold ”SGH Group Management
Strategy Meetings” and ”SGH Group Administration
Department Managers’ Meetings” on a regular basis
and share SGH Group’s management policies,
significant decisions/reports, etc. to enhance theworkability of guidance and control toward eachcorporation’s business management in general.
(4) The company shall prescribe “Duty and Authority
Regulations” as SGH Group’s Uniform Standards

and manage each business corporation’s significant
decisions in their business operations are made withall the necessary preliminary discussions andreporting to/resolutions by the Board of Directors of
the company.
(5) In order to ensure reliability of financial reporting, thecompany shall prescribe ”Accounting Regulations” andrelated procedures, manuals, etc. as the SGH Group
standards. At the same time, the company shall consult
external professionals for their opinions as necessaryand establish a monitoring and auditing system.
(6) In cooperation with business corporations’ internal
audit departments etc., internal audit department
shall conduct internal audits on a regular basis andreport the internal audit results to the company’s
Board of Directors. When remedial actions arenecessary, internal audit department shall instruct thebusiness corporations to take actions and conductsubsequent monitoring to check the progress.

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6. Items related to the employees to assist corporate auditors’ duties and their independence, etc. fromdirectors, etc.
The company shall organize “Corporate Auditors’
Office” to assist corporate auditors’ execution ofduties and place dedicated employees. The number,qualifications, etc. of those employees shall be
determined based on the discussions with the Boardof Corporate Auditors. Additionally, in order to ensure

independence from directors, etc., and effectivenessof direction from corporate auditors, the personnel
transfers, performance appraisals, disciplinary
actions, etc. for those employees shall require a
consent from the Board of Corporate Auditors.

7. The system for directors and employees to report to corporate auditors and other systems related to thereporting to corporate auditors(1) In addition to the items required by laws andregulations, directors and employees of SGH Groupshall report following items to corporate auditors
without delay:[1] The fact that may incur significant loss to thecompany[2] The result of internal audit[3] The status of reports made through the internal
whistleblowing system[4] Other items related to the execution of operations
that are requested by the corporate auditors toreport(2) The company shall treat whistle-blowers, both
directors and employees, appropriately so that they
are not treated unfavorably for the reason that they
made reports to the internal whistleblowing system or
to corporate auditors.

8. Other systems to ensure that audits by corporate auditors conducted in a practical manner(1)

Corporate auditors shall execute their authority
prescribed in the laws and regulations, etc. andperform audit on the legality, validity and efficiency ofthe execution of duties by directors, in cooperation
with accounting auditors, internal audit department
and other organizations within the company.
(2) Corporate auditors shall appoint external
professionals such as lawyers, certified public
accountants, consultants, etc. when suchprofessionals are necessary for their execution ofduties.
(3) Corporate auditors shall attend the Board of Directors
Meetings, as well as other significant meetings whennecessary.

(4)

(5)

138

Corporate auditors shall hold regular meetings with
President and accounting auditors to exchange
information/ideas.
Upon request from corporate auditors, the company
shall bear the expenses incurred for the execution ofduties by the corporate auditors, unless it is regarded
as not necessary for their duties.

Revised August 31, 2018
(Effective September 1, 2018)

Achieving a Safe and Secure Transportation Society

Promoting Environmentally Friendly Business Activities Building an Organization of Diversity and Inclusion

Creating New Value Through Comprehensive Logistics Solutions

Contributing to Communities

Promoting Sustainable Procurement

Building a Responsible Management Foundation■Systems
SG Holdings, as a pure holding company, strives to

In addition, the Audit & Supervisory Board has beenstreamline the Group’s management structure andestablished consisting of four Audit & Supervisory Board

achieve rapid management decision making. The Board

Members, including three Outside Audit & Supervisoryof Directors, consisting of nine Directors, including two

Board Members, to supervise and audit management.

Outside Directors, oversees the overall management(The number of Directors and Audit & Supervisory Boardand business execution of the entire Group. SG

Members is stated as of August 31, 2018.) We

Holdings has also introduced an Executive Officer

continually strive to strengthen the Company’s business

System in order to separate the management oversight

management structure and the foundations of ourfunction and the business execution to ensure thatbusinesses to be prepared to respond to changes in theauthority and responsibilities are clear.

business environment and to manage with a high degreeof transparency.

Stakeholders(customers, employees, local communities, shareholders and business partners)
General Meeting of Shareholders
Election and dismissal

Election and dismissal

SG Holdings Group

ReportElection and dismissal

Board of Directors

Legal counsel

Supervision, selection and dismissal

Audit & Supervisory Board

ReportBusiness execution

Coordination

Approval

Investment Committee

Audits, etc.

Instruction

President and COO
ReportPolicy,planning,
deliberation,
instruction,
approval,
supervision,
etc.

Budget Committee

Internal Audit Department
ReportCoordination

Coordination

Audit

Management Strategy Meetings
Risk Management Meetings
Administration Department
Managers' Meetings
CSR Committee

Departments and UnitsManagement guidance /Approval and instruction of important matters
Presentation and reporting / Prior consultation

Group companies

139

Audit

Accounting Auditor

SG Holdings Co., Ltd.

Management and Administration
Enhancement Committee

ReportReport and discussion

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Contributing to Communities

Promoting Sustainable Procurement

Building a Responsible Management Foundation●Board of Directors
The Board of Directors consists of nine Directors (two ofwhom are Outside Directors), and four Audit &Number of Meetings

22

Supervisory Board Members (three of whom are Outside
Audit & Supervisory Board Members). It is responsible
for making decisions on general Group business

in Fiscal 2017

execution and reporting on the status of management
execution of the individual directors in accordance withinternal rules, including the Board of Directors’Regulations and the Duty and Authority Regulations.
In principle, regular meetings of the Board of Directors
are held monthly, while extraordinary meetings are held
when there are urgent matters to be decided.

●Independence of Outside Officers
The Company determines the independence of Outside

on the determination criteria set by Tokyo Stock

Directors and Outside Audit & Supervisory Board

Exchange, Inc., and deems them to be independent if

Members stipulated under the Companies Act bynone of the items apply.

checking whether any of the following items apply based

1.

2.

A Major shareholder (a person directly or indirectly

6.

holding 10% or more of voting rights) of theSupervisory Board Member (other than Outside

Company, or a business executive thereof

Audit & Supervisory Board Members), Executive
Officer or employee of the GroupA person whose major business partner is theCompany and its subsidiaries (the "Group”), or a7.

business executive thereof3.

A major client of the Group, or a business executive

8.

If a person to whom any of the items in 1 through 7
above applies is in an important position, thespouse and relatives within the second degree ofA person providing professional services such as akinship thereof

consultant, attorney or certified public accountant
who obtains a large sum of money or other financial

9.

gain from the Group other than officer remuneration
5.

A person to whom any of the items in 1 through 6
above have applied during the past three years

thereof4.

A Director (excluding Outside Directors), Audit &In addition to the preceding items, a person forwhom there may be special circumstances
preventing the fulfillment of duties as an

A person who has received the donation of a large

independent outside officer, such as the possibility

sum of money or other financial gain from theof a conflict of interest

Group, or a business executive thereof140

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Building a Responsible Management Foundation■Audit & Supervisory Board
SG Holdings’ Audit & Supervisory Board is structured asa four-person board of which three members are Outside

Number of Meetings

14

Audit & Supervisory Board Members. Audit &Supervisory Board Members continually audit andsupervise the business execution by Directors andin Fiscal 2017attend Board of Directors meetings, stating as necessary
their opinions from their perspective. In addition, thefull-time Audit & Supervisory Board Member attends
committees and meetings other than Board of Directors
meetings as an observer in order to deepen his/her
understanding of internal conditions and management,
actively works to maintain an effective auditing
environment and collect internal information and,moreover, continually monitors, expresses an objective
opinion and provides advice in regard to thedevelopment and operation the internal control system.

■Committees and Meetings

Management and Administration
Enhancement Committee

SG Holdings Directors, Executive Officers, Department Managers

4

Investment Committee

SG Holdings Directors, Executive Officers, Department Managers

24

Budget Committee

SG Holdings Directors, Executive Officers, Department Managers

8

Management Strategy Meetings

SG Holdings Directors, Executive Officers, Department Managers andGroup company presidents

12

Risk Management Meetings

SG Holdings Directors, Executive Officers, Department Managers andGroup company presidents

12Administration Department Managers’
Meetings

SG Holdings Directors, Executive Officers, Department Managers andGroup administration department Managers

11*The full-time Audit & Supervisory Board Member participates as an observer in all of the above committees and meetings.

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Building a Responsible Management Foundation■CSR Committee
The SG Holdings Group CSR Committee in principle meets quarterly to hold discussions, develop the administrative
framework and continually pursue improvements with respect to the implementation of important CSR policies andactivities.

Overview of CSR Committee
Members

Number of meetings in fiscal 2017

●Chairperson: Eiichi Kuriwada, Chairperson and●3 (May, August and December 2017)

CEO, SG Holdings Co., Ltd.
●Members:

SG Holdings Co., Ltd.

Major agenda topics in fiscal 2017

Directors (7), Executive Officer (1),●Report of matters relating to CSR management

General Managers (2) (in fiscal 2017);●Progress report on CSR activities

Sagawa Express Co., Ltd.
Directors (2)Meeting of CSR Managers from Group Companies in JapanThe Group regularly holds meetings of CSR managers
from the Group’s companies in Japan to share
information on the CSR activities of each company andto convene study sessions led by outside lecturers.
Occasions for the sharing of information and study
sessions for overseas Group companies are individuallyarranged.

The Meeting of CSR Managers

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Building a Responsible Management Foundation●An Audit

Audit by Audit & Supervisory Board Members
In their audit work, SG Holding Company’s Audit &closely with the Company’s and its subsidiaries’ internalSupervisory Board Members attend Board of Directors

audit units and Audit & Supervisory Board Members.

meetings and other important meetings as well as

They also meet periodically with the Company’s

conduct site visits to Group companies and businessAccounting Auditor to discuss issues relating to thelocations to ensure effective monitoring. To perform theirfinancial audit.

audit functions as efficiently as possible they collaborate

Internal Audit
The Company has established the Internal Audit

President and COO, and the Audit & Supervisory Board

Department as an independent unit to conduct theMembers and provides advice, proposals and directives

Company’s internal audits and pursuant to thefor improvements to the units it audits. Sagawa Express

Comprehensive Internal Audit Regulations carry out theand some other Group subsidiaries also have their ownfunctions required for comprehensive internal auditing ofinternal audit units which conduct audits as appropriate

the Group to ensure the conservation of its assets andin addition to audit by the Internal Audit Department ofpromote efficient management. The Internal Audit

the Company.

Department reports the results of its audits to the

Accounting Audit●Names of Engagement Partners of the certified public

The Company has appointed Deloitte Touche Tohmatsu
LLC as its Accounting Auditor. The Company has

accountants

concluded an audit agreement with it under which that

Yasuhiro Onishi, Engagement Partner

firm conducts an accounting audit in accordance with an

En Yamada, Engagement Partner

annual audit plan and the Company pays the agreed

Hideya Sudo, Engagement Partner

upon compensation to it. The names of the certified●Persons assisting in the audit work:

public accountants who performed the audit in the
consolidated fiscal year under discussion are listed

36 persons (including 19 certified public accountants)

below.

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Creating New Value Through Comprehensive Logistics Solutions

Contributing to Communities

Promoting Sustainable Procurement

Building a Responsible Management Foundation●Officer Remuneration
SG Holdings discloses the total amount of remuneration

General Meeting of Shareholders and taking into

paid to Directors as a group, to Audit & Supervisoryaccount such factors as performance and economic

Board Members as a group and to outside officers as aconditions.

group in its securities report and separately discloses the

Additionally, in order to clearly link the remuneration ofamount of remuneration of any individual whose total

Directors to share price and augment their motivation to

remuneration is 100 million yen or greater.

contribute to the improvement of performance and the

Officers’ remuneration is decided by a resolution of theincrease of corporate value over the mid- to long-term,

Board of Directors and Audit & Supervisory Board

starting from July 1, 2018, we introduced a company

Members’ remuneration is decided by deliberation of theperformance-linked share-based remuneration program.

Audit & Supervisory Board within the limit decided at a

●StockStock exchangeTokyo Stock Exchange, First Section

Date listed

December 13, 2017

Securities code

9143

Fiscal year

From April 1 to March 31 of the following year

General Meeting of Shareholders

Within three months of the close of the fiscal year

Shareholder record date

March 31

Record date for payment of dividends from surplus

March 31 or September 30

Trading unit

100 shares

Our Thinking in Regard to the Acquisition and Holding of Shares (Cross-shareholding, etc.)
We hold shares of companies we do business with if werights of the shares held, we judge each proposal on its

judge doing so necessary or reasonable from themerits taking into consideration the rationale for our

perspective of the maintenance and development of mid-holding the stock and potential contribution to theto long-term business relationships, the creation ofincrease of the company’s value and its shareholders’

synergies or other purposes. In exercising the voting

profits.

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Creating New Value Through Comprehensive Logistics Solutions

Contributing to Communities

Promoting Sustainable Procurement

Building a Responsible Management Foundation

Ensuring Compliance■Policy●Approach
The SG Holdings Group strives to create a corporate
culture in which every employee conducts business withthe high ethical standards and compliance standards
and responds appropriately to changes in the social andbusiness environment. The SG Holdings Group Code of
Ethics and Conduct constitutes the backbone of theGroup’s compliance posture. Based on our Compliance
Regulations we have built and maintain a culture of
conducting business with the high ethical standards,
continually striving to improve our business operations
and our credibility with the public.

■Fiscal 2017 Goals and Results
Compliance

Boundary: Scope of application of goal
Related SDGs: Targets of SDGs (sustainable development goals) closely related to the goal

Fiscal 2017 Goals

KPI

Results and progress offiscal 2017 initiatives●Create and maintain a compliancesystem that does not stop at
merely strict compliance with laws
and regulations but also meetsthe expectations of society atlarge●One Code of Ethics andConduct training session●Two insider trading
prevention training
sessions●One human rights andharassment training
session●One Code of Ethics andConduct training session held
●Two insider trading
prevention training sessions
held●One human rights andharassment education
session held

Boundary
SagawaExpress

Japan

●

●

RelatedOverseas SDGs

Some
Business
Locations

4.7■Systems
At the SG Holdings Group, the Legal Affairs Department of SG
Holdings in coordination with Group companies takes the leadin developing and guiding our compliance system, while theInternal Audit Department monitors compliance.
We operate an SG Holdings Group Compliance Hotline basedon the Internal Whistleblowing system as a means for
employees, their families and partner companies to reportbehavior which violates laws or regulations, internal rules or
the Code of Ethics and Conduct. Starting from 2017 we also
put in place an external hotline. Additionally, we are taking
steps to prevent insider trading. With instances of listed
overseas companies joining the Group and business andcapital alliances with listed companies increasing, andparticularly in conjunction with the recent listing of theCompany’s own shares, we have taken the occasion to further
strengthen our insider trading prevention regulations and haveestablished a system of controls including a blackout period
and establishment of an application procedure prior to trading
company shares.

A Poster Announcing the Internal Whistleblowing System

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Creating New Value Through Comprehensive Logistics Solutions

Contributing to Communities

Promoting Sustainable Procurement

Building a Responsible Management Foundation■Initiatives●Code of Ethics and Conduct Training
ethical standards and self-discipline based on that and training
sessions on the Code of Ethics and Conduct are held annuallyfor all Group employees. The code is read jointly by employees
at each department, section, service center and otherorganizational unit of the Group.

The SG Holdings Group Charter of Corporate Conduct places
great weight on the respect for human rights and otherinternationally accepted standards of conduct as well as clearlystressing the importance of giving consideration to the culture
and customs of all stakeholders.
Emphasis is also placed on the cultivation of employees’●Insider Trading Prevention Training

The SG Holdings Group also uses its internal portal site to post
“Compliance Newsletter” and “Insider trading Prevention
Newsletter” as key means for enforcing internal controls. Goingforward we will continue strengthening compliance efforts.

In conjunction with the listing of the Company’s shares we areholding insider trading prevention education sessions twice ayear aimed primarily at employees in Japan, providing
in-house training and taking other steps to inform employees
about insider trading prevention.
●Harassment Prevention Training

In fiscal 2017 we expanded and intensified our efforts in Japan
to include not only the prevention of sexual and power
harassment but other areas as well, including prevention ofmaternity harassment and moral harassment, which havebecome prominent social issues.

The SG Holdings Group has established June as “Harassment
Prevention Month” as a major initiative in our drive to create apositive harassment-free work environment where thediversity, personality and individuality of all employees arerespected and employees can work with enthusiasm andmotivation.
●Protection of Intellectual Property

centrally manage and maintain those rights.
In order not to infringe on the intellectual property rights ofothers we constantly monitor the intellectual property rights
where there is the possibility of infringement by us anddisseminate information to the concerned units to ensure thatthey take appropriate precautions. We continually make efforts
to promote knowledge and awareness about these activities
throughout the Group.

In order to conduct its business in a sound manner the SG
Holdings Group takes measures to effectively manage its
intellectual property and ensure knowledge and awareness ofintellectual property.
We have established the Intellectual Property Deliberation
Committee as a means of protecting the Group’s intellectual
property, work to obtain legal proprietary rights over theintellectual property of each Group company based upon thefull review and recommendations of that committee and●Blockage of Relationships with Anti-social Forces

concrete countermeasures we have (1) instituted thecontinuous review (“anti-social check”) of attributes ofcounterparties (both customers and business partners) and (2)established an Unjust Demand Hotline to ensure the quick
resolution of cases when employees receive unjust demands.
We continue to strengthen these systems and by sharing
information on anti-social forces and responses to them westrive to fully prevent and block interference of our business
partners.

The SG Holdings Group has established “Exclusion of
Anti-social Forces Regulations” to ensure that we have no
dealings with anti-social forces which threaten the order andsafety of society and we avoid any relationships whatsoever
with anti-social forces including but not limited to acceding tounjust demands, engaging in backroom dealings or providing
funds. These regulations are clearly stated in the Basic Policyof Internal Control and prescribed in the Charter of Corporate
Conduct and the Code of Ethics and Conduct and we work toensure that all employees are fully cognizant of them. As

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Creating New Value Through Comprehensive Logistics Solutions

Contributing to Communities

Promoting Sustainable Procurement

Building a Responsible Management Foundation

Risk Management■Policy●Approach
The SG Holdings Group maintains a risk management

based on a risk management flow and unified risk

system to monitor, evaluate and manage the risks

management is effectuated through sharing the risks set

attendant on the business operations of Groupby each company across the Group as whole.

companies. Each Group company monitors its risk cycle

Risk Management Flow
(1) Identification

Risk
Identification⇒Monitoring, documentation and unified risk management(2) Evaluation⇒Preparation of risk maps prioritizing risks by degree of
impact and frequency of occurrence

Review(3) Countermeasures

Evaluation⇒Development of countermeasures in accordance with theorder of priority(4) Review

Countermeasures⇒Review of the identification of risks, evaluation andcountermeasures at least once a year

Degree of Impact

Risk Map

High riskHigh
MediumLow

Low risk
Low

MediumHigh

Frequency of Occurrence147

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Creating New Value Through Comprehensive Logistics Solutions

Contributing to Communities

Promoting Sustainable Procurement

Building a Responsible Management Foundation■Fiscal 2017 Goals and Results
Risk Management

Boundary: Scope of application of goal
Related SDGs: Targets of SDGs (sustainable development goals) closely related to the goal

Fiscal 2017 Goals

KPI

Results and progress offiscal 2017 initiatives●Identification and adoption of steps tomitigate the risks facing the Group asa whole and, as a business
responsible for social infrastructure,
attainment of a high level of crisis
management●Two safety check training
sessions●Two safety check training
sessions held

Boundary
SagawaExpress

Japan

Overseas

●

●

Some
Business
Locations

Related
SDGs

11.b
13.1

■Systems●Organization
SGH Group RM Meeting

SGH: SG Holdings
Director in Charge of Administration

Division with Jurisdiction over
SGH Important Risks

Group RM Supervision Manager
Division with Jurisdiction over
General Affairs (Executive Office)

RM: Risk Management

RM Manager

Head of Division with
Jurisdiction over General Affairs

RM Manager

RM Supervision Manager

RM Manager
RM Manager

RM Meetings of subsidiaries

RM Meetings of subsidiaries

RM Manager

RM Manager

RM Manager

RM Manager

RM Manager

RM Manager

RM Manager

RM Manager

RM Manager

RM Manager

RM Manager

Division with Jurisdiction over Important Risks

RM Manager

Division with Jurisdiction over Important Risks

RM Manager

Division with Jurisdiction over Important Risks

RM Manager

RM Supervision Manager*

RM Manager

RM Supervision Manager*

RM Manager

RM Supervision Manager*

RM Meetings of subsidiaries*President of each subsidiaries●Group Risk Management Meetings
A general meeting having as participants SG Holdings

whole. At these meetings a review of the risks facing

directors, department managers and presidents of Group

each company based on the risk management flow iscompanies is held monthly to review and report on risks

discussed by the entire Group.

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Creating New Value Through Comprehensive Logistics Solutions

Contributing to Communities

Promoting Sustainable Procurement

Building a Responsible Management Foundation■Initiatives●BCP/BCM
In order to assure the continuity of the SG Holdings

action guidelines, organizational structure and functions,Group in the event of a major earthquake, fire,

the standards for the initiation of the BCP and the

explosion, flooding or other major natural disaster,

establishment of a crisis management headquarters in

accident or contingency, the Group has formulated athe event of a disaster, etc.

Business Continuity Plan (BCP) clearly setting forth an

We continue to work assiduously on Business Continuity

action plan starting from initial response through theManagement measures to ensure that the BCP works as

restart of business activities. The BCP states clear

effectively as envisioned.

Safety Check Training
We have established a safety check system covering allgroup employees in Japan and have conducted two
response training exercises under the system, whichconstitutes the initial response in the deployment of the
BCP. Based on the BCP, we have set a target rate forresponses within the first 24 hours after the occurrenceof an incident of 90%.

Business Continuity Training
We conduct group-wide joint business continuity training
annually with the focus on Group companies in Japan. In
fiscal 2017 we conducted a readiness test based on thepremise of the occurrence of a major earthquake with its
hypocenter in Tokyo Bay. The crisis management
headquarters of each Group company carried out asafety check of its employees; secured vehicles, fuel andstaff; checked the condition of systems and facilities,
took preservative measures and evaluated the ability torespond quickly and appropriately as a coordinatedgroup to requests from the competent ministries andagencies, local governments and customers.
The presidents and staff in charge of BCM from SG

Business Continuity Training

Holdings and business corporations in Japan andoverseas, 18 in all, together with people from outside thecompany including competent ministries and agencies
and local governments and business partners
participating as observers, were involved in the exercise.
In all 191 persons took part, the largest number since webegan conducting these tests.

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Building a Responsible Management Foundation

SGH Group BCM Structure

SGHGroup Crisis Management Headquarters

SGS

Group Companies

Systems

SGE
Administrative Operations

SGL•SGLP

SGM

SGMV

Overall SRC/3PL
Logistics

Vehicle MaintenanceInstallation Operations,Charter Trucks

Transfer CenterTransfer Center

Sales OfficeConsignee

SGR
Buildings andEquipment Repair
SGFD
Consignor

Sales
OfficeProvision ofCompany
Sales Office
Gas Station Human Resources

Consignee

SGW

SGA

SGF

Overall Delivery Services

Fuel Supply

Payments

Each business corporation deploys its resources while SG Holdings coordinates thedissemination and communication of information to ensure there is no interruption in the logistics
operations of Sagawa Express, the Group’s core business.

SGH: SG Holdings

SGLP: Sagawa Logistics Partners

SGFD: SG Fielder

SGW: Sagawa Express

SGR: SG Realty

SGM: SG Motors

SGMV: SG Moving

SGA: Sagawa Advance

SGF: Sagawa Financial

SGL: Sagawa Global Logistics

SGS: SG Systems

SGE: SG Expert

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Creating New Value Through Comprehensive Logistics Solutions

Contributing to Communities

Promoting Sustainable Procurement

Building a Responsible Management Foundation

Information Security■Policy●Approach
The SG Holdings Group considers the protection of information assets an important social responsibility. We haveformulated an “Information Security Basic Policy” and a “Personal Information Protection Policy” and work toward
strengthening information security.

Information Security Basic Policy
SG Holdings Co., Ltd. (the “Company”), aiming
to contribute to economic development andstriving to be a business broadly useful tosociety, considers the protection of theCompany’s information assets, including theinformation received from customers, a keysocial responsibility and to that end has
formulated the Information Security Basic Policy(the “Basic Policy”) shown below. The Company
continues to work to effectively implement andenhance information security.

1. Enactment and Implementation of Internal
Rules

5. Incident Response
If an information security incident occurs, theCompany will promptly investigate the cause,
work to prevent the expansion of damage andtake steps to prevent a reoccurrence.

The Company will establish information security
regulations and other relevant regulations basedon the Basic Policy and implement information
security measures.
2. Establishment of an Information Security
Management System

6. Compliance with Laws and Regulations,etc.

The Company will establish a management
system for ensuring information security and alsobuild and employ a system for coordinating asnecessary with external entities.

The Company will strictly comply with all laws
and regulations and internal rules, etc.
concerning information security.

3. Information Security Measures

7. Evaluation and Review of Information
Security Activities

The Company will adopt appropriate information
security measures and work to prevent
alteration, loss, leakage, improper access orother interference with the use of information
assets.

The Company will periodically review whether
information security is being appropriately
enforced and supported and implement remedial
measures as needed.

4. Continuing Education
The Company will work to ensure that all officers
and employees, etc. are fully cognizant of the
Basic Policy and will conduct necessary
education on information security on an ongoingbasis.

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Personal Information Protection Policy
SG Holdings Co., Ltd. (hereinafter referred to as the ‘Company') recognizes the importance of protecting
personal information. The Company has established this policy and has familiarized all employees with
its content, to ensure strict implementation of the following.
1.

5.

Definition

To achieve the purpose of use stated above, theCompany will share personal information in thefollowing manner.
• Items to be shared
Name, address, telephone number, fax number,e-mail address• Scope of information sharing
The Company's group companies• Party in charge of information sharing
The Company (Please contact Personal Information
Office for inquiries regarding information sharing.)

Personal information is defined as information
pertaining to individuals such as customers andemployees, including addresses, names, phone
numbers etc. that can identify a specific individual(including information that, together with otherinformation, can enable identification of a specificindividual). Specific Personal Information means
Personal Information that includes an Individual
Number (including the marks, such as the number orcode, that correspond to the Individual Number andare used in lieu of said Individual Number, other thana resident record code; excluding the exceptions set
forth in Article 2, Paragraph 8 of the Act on the Use of
Numbers to Identify a Specific Individual in the
Administrative Procedure.
2.

6.

Purpose of use of personal information

7.

Supervision of consignees

When entrusting personal information to outside
consignees, the Company will conclude a
nondisclosure agreement with each consignee, andwill supervise the consignee appropriately.
8.

Personal information management system

For handling personal information (including Specific
Personal Information), the Company has established apersonal information in-house management system. In
abiding by in-house regulations, the Company strives
for appropriate and careful handling of personal
information.

Use of personal information

The Company will only use personal information within
the scope of the purpose of use. If personal
information is to be used for purposes other thanthose stated in the purpose of use, the Company willclearly indicate such use upon receipt of such
personal information.
4.

Protection of personal information

The Company will take safety measures, such as
information security measures, to ensure the accuracy
and safety of personal information, and to prevent
unauthorized access to, leakage or loss of personal
information.

The Company uses personal information for thefollowing purposes.
• To handle various inquiries, document requests etc.
from its customers• To reflect opinions, requests etc. from its customers
in improving its services etc.
• To make reports to its customers and takeappropriate actions etc.
• To provide information regarding Company
operations• To implement administrative work to comply withlaws and regulations.
3.

Information sharing with third parties

9.

Compliance with pertinent laws andregulations

To ensure reliable personal information (includingSpecific Personal Information) protection, theCompany complies with all laws and regulations
pertaining to such information.

Provision of information to third parties

The Company will not provide personal information tothird parties, except in the following cases.
• When required by law• When the individual gives consent

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12. Disclosure etc. of personal information

10. Changes to Personal Information
Protection Policy

To request disclosure, correction, addition,
termination of use, deletion etc. of your own
personal information (including Specific Personal
Information), contact the Personal Information
Office. We will inform you personally as to thedetails of the procedure.

The contents of our Personal Information
Protection Policy are subject to continuous
review, with improvements made as needed, tomaintain the optimum level of personal
information protection.
11. Personal Information Office
If you have any questions regarding this Policy,
or inquiries regarding your own personal
information (including Specific Personal
Information), please contact the Personal
Information Office.

For inquiries regarding handling of personal information by this company

4. We require a copy of identification (driver's
license, etc.) to confirm the identity of theindividual or representative making the request.

1. Contact the Personal Information Office bypost. The address is provided below. The
company will send you a copy of the pertinent
documents.

5. Please prepare all necessary documents andmail them to the address below.

2. Requests for information regarding purpose ofuse and/or disclosure of personal information
require a handling charge of ¥1,000 plus an
expense charge (such as for postal fees) of¥1,220.
For all other requests there is an expense charge(such as for postal fees) of ¥1,220.

Personal Information Office
Personal Information Office of
SG Holdings Co., Ltd.
68 Kamitobatsunoda-cho, Minami-ku, Kyoto,Japan

3. Only postal notes (fixed postal money orderetc.) will be accepted for handling charges etc.

Effective October 5, 2015

153

Achieving a Safe and Secure Transportation Society

Promoting Environmentally Friendly Business Activities Building an Organization of Diversity and Inclusion

Creating New Value Through Comprehensive Logistics Solutions

Contributing to Communities

Promoting Sustainable Procurement

Building a Responsible Management Foundation■Fiscal 2017 Goals and Results
Information Security

Boundary: Scope of application of goal
Related SDGs: Targets of SDGs (sustainable development goals) closely related to the goal

Fiscal 2017 Goals

KPI

Results and progress offiscal 2017 initiatives●Identification and adoption of steps tomitigate the risks facing the Group asa whole and, as a business
responsible for social infrastructure,
attainment of a high level of crisis
management●One Information security
training session●Two Targeted e-mailattack response training
sessions●One Information security
training session held
●Two Targeted e-mailattack response training
sessions held

Boundary
SagawaExpress

Japan

Overseas

●

●

Some
Business
Locations

Related
SDGs

4.7■System●SGH-CSIRT
Enhanced information security management systems
are now more critical than ever as the potential danger
from a wide range of cyberattacks originating outside thecompany has grown significantly over the past several
years. Therefore, at the SG Holdings Group, in addition
to existing management systems, we have establishedthe SGH-CSIRT (Computer Security Incident ResponseTeam) for the purpose of minimizing damage to theextent possible in the event of a cybersecurity incident
and ensuring early recovery of the affected IT systems.

■Initiatives●Security Assessment
Security assessment is an essential tool for evaluating
the effectiveness of cybersecurity management systems
in order to prevent serious information security incidents.
Specifically, what this means is setting of a target levelof cybersecurity upon evaluation of the internal andexternal environment in which IT systems operate,

identifying the challenges to attaining that level andproposing and prioritizing the required solutions. SG
Systems is responsible for conducting security
assessments and developing effective security
enhancement plans for the entire Group.

●Educational Activities
We conduct ongoing education and dissemination of information on cybersecurity to all employees in Japan.
Type of Activity

Target individuals

Frequency

Reading jointly the “SG Holdings Group Security Handbook” and taking a test on its contents

All employees in Japan

Annually (in July)

Targeted e-mail attack response training*Follow-up e-training for employees who open the attached file or click on the link provided

All employees in Japan

Twice a year
(in the first half and thesecond half respectively)154

Achieving a Safe and Secure Transportation Society

Promoting Environmentally Friendly Business Activities Building an Organization of Diversity and Inclusion

Creating New Value Through Comprehensive Logistics Solutions

Contributing to Communities

Promoting Sustainable Procurement

Building a Responsible Management Foundation

Awards and Certification/Accreditation■Awards●Japan Resilience Award 2018
governments, etc.) through the conclusion of “Comprehensive
Partnership Agreements, Disaster Agreements, etc.” between
regions (local governments, etc.) and businesses to advancethe “strengthening of regional resilience and creation of asustainable society” contributing to increased resilience in theface of disasters and the mitigation of climate change(activities to reduce CO2 emissions).

Sagawa Express was awarded the Most Outstanding
Resilience Award in the corporate and industrial category at
the Japan Resilience Awards 2018.* Having previously been
awarded the Most Outstanding Resilience Award in the energy
category (logistics infrastructure resilience measures based ondiversification of transport vehicles and energy sources) in
2017, this marks the second consecutive award for Sagawa
Express. The fiscal year 2018 award was in the national landpreservation and information area (model for logistics
infrastructure strengthening regional resilience and regional
collaboration). The company was recognized for its ongoing
efforts to develop and implement a collaborative andcooperative model taking advantage of the respective
resources and strengths of the company and regions (local*An award established by the Association for Resilience Japanevaluating and recognizing companies, organizations andother entities for technological development, productdevelopment and other activities that contribute to national or
reginal resilience or to fostering personal and industrial
resilience to build a resilient society for future generations.

The Awards Ceremony(On the right, Hiroyuki Uchida, Director, Sagawa Express)■Certification/Accreditation●ISO 27001 Information Security Management System●JIS Q 15001 Personal Information Management System• Sagawa Express (Sales Department, Sales Section)

Sagawa Financial• Sagawa Global Logistics(Head Sales Department, Sales Development Department,
Logistics Solutions Department, Kita-Tokyo Sales Office inKitakanto, Tokyo Branch Oi SRC)
• SG Systems (Head Office, Kyoto SI Center, Fukushima BPS
Center)155

Corporate Information

Message from Chairperson
and President

Business Overview

CSR Management

CSR Report

Third-Party Opinion
Mami Oku
Professor
Department of Urban Policy and Science
Faculty of Urban Environment
Tokyo Metropolitan University

In reviewing its material CSR issues, the SG Holdings Group
organized the initiatives established in its Mid-termManagement Plan in relation to Sustainable Development
Goals (SDGs), thereby assessing their alignment with therequirements of society. The Group has now set seven newmaterial CSR issues―"Achieving a safe and securetransportation society,” “Promoting environmentally friendly
business activities,” “Building an organization of diversity andinclusion,” “Creating new value through comprehensive logistics
solutions,” “Contributing to communities,” “Promoting
sustainable procurement,” and “Building a responsible
management foundation.” The Group’s CSR Report 2018 (the“Report”) presents the policies, systems, specific elements, andexpected results for each of these seven material issues inreadily understandable form supplemented with data, diagrams,
and photographs. The Report highlights the strong commitmentof the comprehensive logistics group with global operations andmore than 90,000 employees, to contribute to the solution ofsocial issues through its business activities, and it also
describes the proactive and ongoing progress of the Group’s
initiatives in pursuit of that goal. It is particularly noteworthy thatin carrying out these CSR initiatives, the Group has put into
practice every means conceivable at present, not only throughthe efforts of its own employees but also through alliances andcollaboration with its various stakeholders. Furthermore, theGroup has made every effort to obtain third-party objective
evaluations on the results of its efforts as well as its CSR
promotion framework by utilizing awards, certification, andaccreditation programs.
Looking ahead, I think that if improvements are made in
keeping with the following three points, an even more complete
and compelling report could be prepared. The first point that I
would raise regards the overall structure of the Report. While it
is fine that the seven material issues are systematically andcomprehensively organized, I have a concern that any
circumstances or initiatives that newly appeared during theperiod covered by the CSR Report may be buried in the overall
content. However, if, for example, special topics werehighlighted by way of feature articles describing the new
initiatives undertaken in 2017 such as the in-house nurseryschool and the in-house university established within the Group,that would add significantly to the vividness of the report and its
appeal as a communication tool.
The second point that I would raise relates to the role of theReport as an opportunity for making improvements in thecontext of the PDCA cycle. Targets and key performanceindicators (KPIs) are set for four of the material issues—"Achieving a safe and secure transportation society,”“Promoting environmentally friendly business activities,”“Building an organization of diversity and inclusion,” and“Building a responsible management foundation”—andprogress is tracked with reference to them. For example, in“Promoting environmentally friendly business activities,” theGroup has the target of “realizing sustainable business inharmony with the earth’s environment by reducing CO₂
emissions throughout the Group, improving energy efficiency,
and increasing the rate of use of renewable energy,” andestablished KPIs in line with this target: “CO₂ emissions (total),-1% year-on-year,” “Use of energy per ton-kilometertransported, -1% year-on-year,” “Waste output, Year-on-year
reduction of amount wasted,” and “Water usage, Year-on-year
reduction of amount used.” The results achieved in fiscal 2017
for each KPI are shown in the Report; however, what is notindicated is the total amount of the reduction aimed for over the
medium to long term. Particularly in cases where fiscal 2017
results were inferior to those reported the prior year, there is noreference to the mid- to long-term program or analysis andevaluation of the results of efforts aimed at continuing
improvement such as the reasons for the deterioration and what
improvements are being considered for the upcoming year. The
same can also be said in regard to the other material issues.
Information covering the establishment of mid- to long-termtargets, each year’s targets and results, their analysis together
with future remedial plans, and courses of action are today
considered essential parts of any CSR report. The inclusion ofsuch information would make the report a more effective tool for
ensuring continuous improvement.
The final point is the question of whether the report adequately
presents the faces of employees and shareholders in all theirdiversity. The Group has been dedicated to building anorganization that is comfortable for all employees to work in andpromoting diversity and inclusion, while providing
comprehensives services which benefit the local communities
and contributing to society in a wide variety of ways. These
earnest initiatives deserve high marks. If the voices of
employees and various stakeholders could also be heard in theReport stating in their own words how they see and evaluate
these initiatives, the Report would be even more compelling
and alive. For example, it is mentioned that the Group
conducted an attitude survey covering 50,000 of its employees,
but I would also like to know what specific questions wereasked and what the results actually showed. We also learn that
the SG Holdings Group concluded disaster support agreements
and comprehensive partnership agreements for regional
revitalization with local governments, providing support for andcollaboration with them, but it would probably be possible toinclude in addition some direct input from the local governments
involved. In the future, together with the points that I have justdiscussed, I would also look forward to seeing details of theinitiatives undertaken at overseas bases presented through thevoices and faces of the people most involved.

156

Communication through websites
The SG Holdings Group communicates its corporate
68 Kamitobatsunoda-cho, Minami-ku, Kyoto-shi, Kyoto
601-8104, Japan
TEL +81 (0)75-671-8600
http://www.sg-hldgs.co.jp/english
Title: CSR Report 2018
Published in November 2018

information and business activities to stakeholders
through a variety of media including websites.
SG Holdings corporate site

http://www.sg-hldgs.co.jp/english/
Investor relations

http://www.sg-hldgs.co.jp/english/finance/