CSR Report
Corporate
SocialResponsibility
ReportSG Holdings Group Corporate Philosophy
Editing Policy”Trust, Create, Challenge”

In this report, we have included content that has major interest or
significance for our stakeholders and which is extremely importantfor SG Holdings Group, based on our newly identified “priority
challenges in CSR.” This time, we have included a special feature on”GOAL®,” our advanced logistics project team. Also, at the end of thereport, we have asked Professor Mika Takaoka of Rikkyo University’s
College of Business to provide us with an expert third-party opinionon our activities in each of the “priority challenges.”

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

Reference Guidelines
Ministry of the Environment, "Environmental Reporting Guidelines
2012"
GRI*"Sustainability Reporting Guidelines (4rd Edition)"
ISO26000 (Guidance on social responsibility)*GRI: Abbreviation of Global Reporting Initiative. An international
independent standards organization whose goal is to create
international guidelines for sustainability reports and makethem widely known.

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

Report Period
March 21, 2015 - March 20, 2016
*When reporting periods differ, clarification will be provided asneeded.

Organizations Subject to Reporting

CONTENTS
Company Outline 

3Top Message 

4Mid-Term Management Plan 

6Business Outline 

8Overseas companies 

10Close-up

Support Activities for Areas Affected by
the Kumamoto Earthquakes 

12Highlight

Resolving Customer Issues with “GOAL®” by
Optimizing Overall Logistics

14

CSR Activities Report 

17

Providing High-Quality Services
with a Foundation of Safety

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 andorganizations are clarified as needed.

Two versions of the SG Holdings Group CSR Report havebeen published: a digest (PDF version) and a detailed report(an online version written in Japanese only).
The printed version is intended for the general public
and our many stakeholders, while the online version is for
professional researchers of the environment and CSR. The
printed version describes initiatives we particularly want tointroduce to readers. The online version contains information
related to our group CSR activities, including numerical data,targeting readers such as professional researchers of theenvironment and CSR.
Our CSR Report 2016 website is written in accordance with
the GRI’s 2013 Sustainability Reporting Guidelines (G4 Core).

18

The version for the general public
and our many stakeholders

Promoting Business Activities
24

Contributing to the Development of Communities 

31

Building an Organization
with Individuality and Diversity 34Constructing Supply Chain CSR 

38

Building a Responsible Management Foundation 

39Foundation Activities 

44

Global Group Company CSR Activities 

45

Third Party Opinion 

2

SG HOLDINGS GROUP CSR Report 2016

47

Important contents for stakeholders

with the Goal of Environment-Friendliness 

Printed version

Web
The version for professional researchersof the environment and CSR

Important contents for SG Holdings

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

SG HOLDINGS CO., LTD.

Head Office Location:

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

Established:

March, 2006

Capital:11,882 million yen

Employees:

83,954 (consolidated / for March 2016 period)

Consolidated Performance
Operating revenue by segment

Logistics

DeliveryReal estate(100 millions of yen)
10,000

8,811
28

9,433

400

475

809

45

548

(100 millions of yen)
500

600
593

583
123

540

455

433
652
498

Operating income

8,574

8,350

8,713
643
503

8,000

Other

1,140

6,000

300
310

295
4,000

200
7,664

7,534

7,125

7,094

7,215

2,000

100

0

0

2011

2012

2013

2014

2015

(FY)

Note: Since fiscal 2013 we have changed our calculations per segment to cover four businesses, including real estate, and adjusted the figures for fiscal 2012 accordingly.
The figures for fiscal year 2011 are based on the previous method of the three business segments; delivery, logistics and other.

Delivery Business

Logistics Business

Real Estate Business

Operating revenue

Operating income

Operating revenue

Operating income(100 millions of yen)(100 millions of yen)(100 millions of yen)(100 millions of yen)

10,000

500
384

391

1,250

400

1,000

300

750

4,000

200

500

2,000

100

250

8,000

7,215

7,125

6,000

10

10
1,140

809

3

Other Business

Operating revenue

Operating income

Operating revenue

Operating income(100 millions of yen)(100 millions of yen)(100 millions of yen)(100 millions of yen)

102

500

100

750

50

49

50

593

600

40

475
8

400

80

600

6

300

60

450

30

4

200

40

300

20

2

100

20

150

10

0

0

28
45

0

0

2014

2015

(FY)

0

0

2014

2015

(FY)

0

2014

2015

(FY)

0

2014

2015

(FY)

SG HOLDINGS GROUP CSR Report 20163

Message from Chairperson and President
Become Asia’s Leading Comprehensive Logistics Group

Contributing to the development of a sustainable society byreflecting the challenges and hopes of society in our businessactivities
The SG Holdings Group Corporate Philosophy is as follows: “Trust” (earn the trust of customers and society and growtogether); “Create” (create new value and contribute to social development); “Challenge” (always take on the challenges
presented to us, pursuing all possibilities). Our Group aims to contribute to the development of a sustainable society byimplementing this corporate philosophy.

“New Mid-Term Management Plan” and“Material CSR Issues”

Chairperson and CEO Eiichi Kuriwada (left) and President and COO Tadashi
Machida (right) of SG Holdings Co., Ltd.

4SG HOLDINGS GROUP CSR Report 2016

In fiscal 2016 we launched our new mid-term management
plan “First Stage 2018 (2016-2018).” (See pp.6-7) We areworking to expand our business under a long-term management
vision of “Become Asia’s Leading Comprehensive Logistics
Group” which is the basis for our Mid-Term Management Plan.
As we work towards achieving this vision, we have formulated
five basic strategies as part of “First Stage 2018.”
The first basic strategy is to “Ensure sustainable development
through productivity improvement and evolution ofcomprehensive logistics solutions.” We will provide added
value by utilizing a variety of resources, including our IT and
settlement services, global networks, and the delivery andlogistics capabilities of SG Holdings Group.
The second basic strategy is to “Develop global logistics
network through the strengthening and integration ofdomestic and overseas businesses.” We aim to establish a global
logistics network by strengthening our forwarding business inpartnership with EXPOLANKA, which has a strong presence inlocations such as South Asia and Europe. What’s more, we will
work to expand our delivery and logistics business overseas,
and to promote the construction of an express delivery networkand development of a refrigerated transport network.
The third basic strategy is to “Increase in value andoptimization of peripheral logistics businesses.” We will
strengthen and optimize our business by creating new services
in numerous fields, including real estate and settlement services,in partnership with our delivery and logistics businesses.
The fourth basic strategy is to “Establish HR management
system and utilize diversifi ed human resources.” In order tocontinue securing the outstanding human resources needed
to support the evolution of a global company, it is essential tocarry out appropriate hiring, training, and human resourcesmanagement, and to achieve an appropriate work-life balance
for all employees. For this reason, we will work to develop ourhuman resources management systems.
Lastly, the fifth basic strategy is to “Utilize the latest technology
to deliver superior solution to our customers and streamline
business activities.” We aim to provide new services to ourcustomers and achieve quality and productivity improvements

by using the new technologies that arise through technologicalprogress, including the use of AI (artificial intelligence),
automated driving technology, Big Data and robots.
Our social environment is undergoing major changes,
including changes to our business activities and lifestyles
brought about by the globalization of the economy, the fallingbirthrate and ageing population, environmental problems andtechnological progress. We are aware of just how important it is
to run our business from a CSR perspective in order to handle
the increasingly diverse needs of our customers and to help
overcome the challenges facing society. SG Holdings Grouphas established “Material CSR Issues” (see p.17) and promoted
measures aimed at tackling these issues. Furthermore, we havepromoted ongoing strengthening of management across thegroup as a whole with the goal of practicing CSR in a way thattakes into account the business characteristics of each company.

Measures implemented in fiscal 2015
In fiscal 2015, we made a major contribution to theachievement of cross-group business expansion by proposing
solutions led by our advanced logistics project team GOAL®
(GO Advanced Logistics). In fields in which logistics operators
have not traditionally been involved, such as the management,delivery and installation of building materials at construction
sites for large structures, etc., we have reconstructed SG
Holdings Group’s logistics supply chain management, andachieved efficient site operations and the optimization of
inventories. We have continued to evolve our business in orderto provide a better service, including the introduction of Smart
Delivery® at approximately 150 bases with the aim of developing
our service content. We offer a “temporary luggage storage”
service for travelers at tourist locations, as well as temporary
hand baggage storage and same-day luggage delivery to hotels.
We have taken the lead in our industry in promoting
environmental initiatives. These have included reducing CO₂
emissions in our overall business activities in order to reduce
our impact on the environment, expanding the scope of ourcarbon neutral accreditation acquired under the Ministry of theEnvironment, continuing to introduce environment-friendly
vehicles, and promoting logistics for facilities at large-scalecomplexes.
In our global business, as part of our efforts to promote thedevelopment of our global logistics network by strengthening
our forwarding business and expanding our customer base,
we formed a capital and business alliance with Hitachi
Transport System, Ltd. in March 2016 in order to establish arobust platform for providing integrated logistics in a waythat seamlessly links deliveries with 3PL. This will allow us toachieve Japanese delivery quality in promising markets, suchas Southeast Asia, China and India, which are experiencing
remarkable growth, and to expand our “last mile” network.
In terms of our efforts to support the growth of the group andbuild an organization that is capable of creating value, we haveaimed to utilize diverse human resources, create businesses thatencourage the participation of women, expand work fields, andpromote the hiring and utilization of global human resources.

A message to our stakeholders
We believe that CSR at SG Holdings Group means that eachand every employee is putting into practice our corporate
philosophy of “Trust, Create, Challenge” in cooperation with
our stakeholders, with the aim of developing a sustainable
society. As we launch our new mid-term management plan,“First Stage 2018”, and set about the taking the next leap
forward towards “Become Asia’s Leading Comprehensive
Logistics Group” as set out in our long-term management
vision, we will pursue our business and initiatives in ways thattake into account the challenges and hopes of society.
Furthermore, so that SG Holdings Group continues tobe needed by our stakeholders, we believe it is important
to continue providing reliable logistics as a part of society’s
infrastructure and to make an even larger contribution to society
through our business. What’s more, as a corporate group thathas developed a global business, we recognize our responsibility
to take a serious approach to overcoming the challenges facedin each country and region and meet the expectations for SG
Holdings Group.
Moving forward, we will carry out active communication
with our stakeholders, be sensitive to any changes in ourenvironment and the challenges or expectations we face, andexecute our business and initiatives in ways that allow us tomeet the demands of society.
We look forward to your ongoing support.
Eiichi Kuriwada
Chairperson and CEO
SG Holdings Co., Ltd.

Tadashi Machida
President and COO
SG Holdings Co., Ltd.

SG HOLDINGS GROUP CSR Report 20165

Mid-Term Management Plan

Third Stage Plan (2013-2015)
Aiming to build group synergy
Mid-Term Management Plan
SG Holdings was established in 2006. In 2007, we launched our Medium to Long-Term Management Plan with the aim of realizing our management vision. This was composed of three-year plans (mid-term management plans) set out in three stages, underwhich we promoted our business activities based on certain themes: in the First Stage Plan (2007-2009), we built a business platform; and in the Second Stage Plan (2010-2012), we expanded our business fields.
In the Third Stage Plan (2013-2015), we built new business models that make use of group synergy and promoted further global
developments based on a theme of “synergy, innovation and speed.” Here, we have summarized the results of the Third Stage
Plan, as the final year of the Medium to Long-Term Management Plan.

Vision and themes of the Medium to Long-Term Management Plan (2007−2015)
Management Vision

Create new value by utilizing management resources anddeepening cooperation inside and outside of the Group,
while aiming to strengthen our management foundation
and achieve lasting growth.
We will swiftly respond to changes in our customers' needs and the market environment,
continue to revolutionize and make new challenges for growth long into the future,creating new value, and striving to establish businesses
that will become the second, third, and fourth pillars of the Group.

1

2

ThemeFirst Stage Plan
2007-2009
Construction of a businessplatform which allows
continuous growth

Third Stage Plan(2013-2015)

Second Stage Plan
2010-2012
Expanding the sphere ofoperations and strengthening
the earning base3

Third Stage Plan
2013-2015
Synergy, Innovationand Speed

1. Maximize the Group’s earning capability
2. Enhance the comprehensive strength of the Group by expanding business areas
3. Reinforce and enhance operating platforms
4. Fully adopt stakeholder management

Summary of the Third Stage Plan (2013-2015)
Achieved a cross-group business expansion by proposing solutions led by the advanced logistics project team GOAL®

Results

Formed a private REIT and established a comprehensive real estate business, integrated from development through to sales
Strengthened our Asian network through the acquisition of EXPOLANKA HOLDINGS PLC* GOAL® is a registered trademark of SG Holdings Co., Ltd.

6

First Stage 2018 (2016-2018)
Become Asia’s Leading Comprehensive Logistics GroupNew Mid-Term Management Plan
In fiscal 2016, we launched our new mid-term management plan “First Stage 2018 (2016-2018).” The social environment surrounding SG Holdings Group is changing at a dizzying pace: a labor shortage has resulted from the declining birthrate and aging
population, the economy has become increasingly globalized and companies have invested in new technologies and new industrial fields, there has been strong growth in Asia (including ASEAN, China and India), Japanese companies have made overseas
investments, and the spread of e-commerce has resulted in an increase in the number of express deliveries. Recently, there has
been an increasing trend towards restructuring in the logistics industry, including the rapid pursuit of M&As by logistics operators
in both Japan and overseas.
In response to this trend, First Stage 2018 sets out a route-map to reforms aimed at achieving further sustainable growth. Taking
new steps towards becoming Asia’s leading comprehensive logistics group.

Basic strategies of First Stage2018

Become Asia's Leading
Comprehensive Logistics Group.

1. E
 nsure sustainable development throughproductivity improvement and evolution ofcomprehensive logistics solutions
2. D evelop global logistics network throughthe strengthening and integration ofdomestic and overseas businesses
3. I ncrease in value and optimization of
peripheral logistics businesses
4. E stablish HR management system andutilize diversifi ed human resources
5. U
 tilize the latest technology to deliver
superior solution to our customers andstreamline business activities

SG Holdings Group

Mid-Term Management Plan

Management Strategy
1.Ensure sustainable development through productivity improvement and evolution ofcomprehensive logistics solutions
2.Develop global logistics network through the strengthening and integration of domestic
and overseas businesses
3.Increase in value and optimization of peripheral logistics businesses
4.Establish HR management system and utilize diversiﬁed human resources
5.Utilize the latest technology to deliver superior solution to our customers and streamline
business activities

SG HOLDINGS
Notice Period

2016.3.21～

Priority measures

CMYK 2016.09.09.19:47

300833304

1. GOAL®
SG Holdings Group aims to develop integrated logistics
solutions that support our customers’ value chains by utilizing our proposal capabilities and synergy in fields suchas deliveries, logistics, IT, settlement services, and global
business. In addition to further strengthening upstream
sales in the supply chain, we aim to develop further synergy through active investments in new markets, such as
medicine, healthcare and cold chains.

2. Overseas businessIn addition to developing our business platform in Asia,
we aim to establish a global logistics network by using
the strengths of EXPOLANKA HOLDINGS PLC to enhance
our forwarding network. We will continue to strengthen
our deliveries and logistics businesses in Asian countries
in a way that utilizes the know-how of our group.

3. Logistics-related businessWe will strengthen all logistics-related fields, in partnership with our deliveries
and logistics business. In our real estate business, we will carry out competitive
real estate investments in conjunction with our logistics business. In our settlement service business, we aim to construct new settlement services based on
our logistics-related settlement service, e-collect®.

4. Human resources management
We aim to secure talented human resources and labor by developing systems tohire, train and manage our human resources. We have set the following priority
themes: “Utilization of diverse human resources”; “Reforming employees’ work
style”; and “Life support”. We aim to build an organization that continues to produce competitive and talented human resources through the construction andoperation of a new human resources management cycle.

5. Utilization of new technologies
We aim to provide our customers with new services and to achieve quality andproductivity improvements by using the new technologies that arise throughtechnological progress, including automation technology and robots that promote labor-saving and efficiency improvements achieved through the automation of warehouse operations.
SG HOLDINGS GROUP CSR Report 20167

SG Holdings Group Business Outline
SG Holdings Group has developed business both in Japan and overseas in a variety of fields, such as deliveries, logistics, real estate, finance and systems development, in a way that utilizes our group synergy to the full.
We will continue to make use of these efforts to increase the capabilities of the group in specific areas and achieve
the provision of total solutions as a whole group. In this way, we aim to respond rapidly to the diverse needs of ourcustomers, gain further trust from society, and become a corporate group that is needed by society.

Delivery Business
1

Sagawa Express Co., Ltd.

Providing total logistics
solutions in addition toa wide range of delivery
activities with a particularfocus on express delivery.

2

15

SG Moving Co., Ltd.

16

Offers various installationand moving related services, including large furniture and home appliances.

3

9

13

14

World Supply Co., Ltd.

Offers delivery agency services to department stores,
etc., 3PL, and cooperative
food delivery services.

Logistics Business4

3
1

 agawa Global
S
Logistics Co., Ltd.

Optimizes all aspects ofthe supply chain through3PL operations, logistics
processing, etc.

125

 agawa Logistics
S
Partners Co., Ltd.

Offers total logistics support, ranging from inspection and needle detection,
to storage and logistics
processing.

6

 GH Global Japan
S
Co., Ltd.

Offers comprehensive international transport services, from international
logistics and shipping storage to domestic transport.

8

SG HOLDINGS GROUP CSR Report 2016

Real Estate Business
7

SG Realty Co., Ltd.

Carries out development, application, andmanagement of logistics facilities.

8

SG Assetmax Co., Ltd.

Makes real estate investments focusing on logistics facilities owned by the Group.

Delivery Business

Logistics Business

Real Estate Business

Other BusinessWe provide one-stop solutions

We utilize the network we have

While managing and operating

Our Group companies are in-

not limited to simple transportation services and we resolve
customer issues from a logistics
perspective through coordination with our Group companies.

established and spread acrossthe entire country to provide
complete logistics solutions
that can resolve customer logis-

our Group’s real estate facilities,
we are also involved in the development, application, andmanagement of real estate andfacility infrastructures centeredon logistics.

volved in a variety of businesses, even in fields serving as
business foundations such as finance, IT, and human resources
cultivation.

tics issues.

16

6
4

 agawa Forestry
S
Co., Ltd.

Cultivates, preserves, andmanages forests ownedby the Group in Kochi and
Tokushima prefectures.

5

15

7

8

10

2

 ouvelle Golf Club
N
Co., Ltd.

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

14

SG Expert Co., Ltd.

BringstogethertheGroup’sadministrative
tasks, such as general affairs, human resources,
and accounting.

11
13

SG Fielder Co., Ltd.

Offers outsourcing servicesof personnel such as warehouse related business.

12

 agawa Financial
S
Co., Ltd.

Offers financial services
including e-collect® COD
service.

11

Other Business
9

Sagawa Advance Co., Ltd.

Offers general services such as insurance
business, travel business, and product development business.

10

SG Motors Co., Ltd.

Offers various services including vehicle maintenance, body production, as well as new and used
car sales.

SG Systems Co., Ltd.

Deploys businesses suchas development and operation of package tracking
and shipment support systems that are among thelargest in the country.

SG HOLDINGS GROUP CSR Report 20169

Overseas companies
In addition to its companies in Japan, the SG Holdings Group, centered in Singapore and Sri Lanka, owns roughly
100 affiliated companies (of which 62 companies are related to overseas logistics businesses) in 24 countries and regions around Asia, the Pacific Ocean and Indian Ocean , and is developing international businesses.

South Korea
8

China
5 2 4

Qatar
United Arab Emirates

3 6

Myanmar

India
Pakistan

Bangladesh

7

TaiwanCambodia

Thailand
11 12

Vietnam

9 10

13 14
20

Sri Lanka
Maldives

15 16

Singapore

Kenya

Philippines

Malaysia
1 17
18
19

Indonesia

1

SG Holdings Global Pte. Ltd.
Supervision of our Group’s international businesses (planning forinternational business, strategy formulation, fund raising, funding
international subsidiaries, and other management operations).

East Asia
2

6

7

8

Poly-Sagawa Logistics Co., Ltd.
Freight Forwarding / Logistics (storage, logistics processing, 3PL) /International express delivery*Sales branches: Beijing, Dalian, Tianjin, Qingdao, and Guangzhou

4

Shanghai Dazhong Sagawa Logistics Co., Ltd.
Delivery (express delivery, consolidated delivery, etc.) within Shanghai
and its surrounding areas, as well as cash-on-delivery services andlogistics

5

Wuxi Feisu Logistics Information Technology Co., Ltd.
Development and sales of logistics and mail-order ordering systems
within China

10

SG HOLDINGS GROUP CSR Report 2016

Sagawa Logistics Korea Co., Ltd.
Freight Forwarding / Logistics (storage, logistics processing, 3PL) /International express delivery

Freight Forwarding*1 / Logistics (storage, logistics processing, 3PL) /International express delivery*2

3

Sagawa Express International Taiwan Corp.
Freight Forwarding / Logistics (storage, logistics processing, 3PL) /International express delivery

Shanghai Poly-Sagawa Logistics Co., Ltd.

*1 Services relating to the carriage, consolidation, storage, handling, packing
or distribution of the Goods, including customs and fiscal matters, declaring
the Goods, procuring insurance of the Goods and collecting or procuring
payment or documents relating to the Goods.
*2 
A service to transport small packages with fast turnaround using
international air freight.

Sagawa Express (H.K.) Co., Ltd.
Freight Forwarding / Logistics (storage, logistics processing, 3PL) /International express delivery

Southeast Asia
9

Sagawa Express Philippines, Inc.
Freight forwarding / Delivery (such as domestic delivery and overseas
moving) / International express delivery

10

Sagawa Global Logistics (Philippines) Inc.
Logistics (bonded warehouse)

11
12

Sagawa Express (Thailand) Co., Ltd.
SG Sagawa (Thailand) Co., Ltd.
Freight forwarding / Logistics (storage, logistics processing, 3PL) /Delivery (domestic delivery, cross-border delivery) / International
express delivery

13
14

Sagawa Express Vietnam Co., Ltd.
SG Sagawa Vietnam Co., Ltd.
Freight forwarding / Logistics (storage, logistics processing, 3PL)
/ Delivery (door-to-door delivery, domestic delivery, cross-borderdelivery) / International express delivery

21 USA
Egypt

22

Mauritius
Madagascar
South Africa

Head office location of EXPOLANKA HOLDINGS PLC

15

Sagawa Global Logistics (Malaysia) Sdn. Bhd.
Freight Forwarding / Logistics

16

Sagawa Customs Brokerage (Malaysia) Sdn. Bhd.

South Asia
20

17

Sagawa Express Singapore Pte. Ltd.
Freight Forwarding / Logistics / International express delivery

18

Expolanka Holdings Plc
Core enterprises: Expolanka Freight (Pvt) Ltd.
With its Head Office set up in Sri Lanka, it owns 20 offices within India.
It deploys businesses focusing on freight forwarding, with its strength
lying in its network in the regions of South Asia, the Middle East, Africa,
Europe, and North America.

Export and import customs clearance

SG Sagawa Ameroid Pte. Ltd.
Logistics / Delivery (domestic delivery)

19

PT. Sagawa Express Indonesia
Freight Forwarding / International express delivery

North America
21

SG SAGAWA USA, INC.
Freight Forwarding / Logistics (storage, logistics processing, 3PL) /International express delivery

22

SAGAWA EXPRESS HAWAII, INC.
International express delivery

SG HOLDINGS GROUP CSR Report 201611

Close-up

Support Activities for Areas Affectedby the Kumamoto Earthquakes
To return to everyday life as quickly as possible

We extend our deepest sympathies to the victims of the Kumamoto Earthquakes.
The SG Holdings Group implemented its Group BCP*, which was built and enhanced based on its past experience in responding todisasters, and took steps toward continuing business and engaging in support activities. We are continuing to apply the efforts ofthe entire company so that the disaster-stricken areas can recover as quickly as possible.
*BCP (Business Continuity Plan): A company-wide action plan configured in advance so that business activities can be continued if an unforeseen event such as a disaster or
accident occurs.

Start of Sales Office Pickup Services
service as soon as possible, to address the wishes of customers desiring to pick up cargo or send goods to disaster-stricken
areas even when disrupted road networks or other conditions
make it difficult to provide standard express delivery services.

In addition to standard express delivery services, Sagawa
Express has started Sales Office Pickup Services allowing customers to make cargo pickups at Sales Offices, ahead of any of
our competitors. We considered it very important to begin thisRelief supplies which poured infrom across the country

Cargo sent with heartfelt wishes“Please send it to the disaster area.”

Transporting supplies to evacuation shelters
In areas with particularly extensive damage such as Mashiki
Town in Kamimashiki District, Kumamoto Prefecture, we carriedout activities to transport relief supplies in cooperation with theJapan Self-Defense Force.
Sagawa Express has concluded cooperative disaster relief

Delivering supplies to the Mashiki Town Office

12

SG HOLDINGS GROUP CSR Report 2016agreements with the government as well as with local governments, universities, and other parties across the country. ( seep.31) These agreements arrange for cooperative efforts in transporting emergency supplies and managing emergency supply
hubs in times of disaster.

Separating supplies at a supply collection pointWe have been developed our BCP based on experiences
The SG Holdings Group has taken steps to upgrade and enhance its crisis management system.
Our quick initial response measures based on our BCP fully apply the extensive experience
we have gained from the Great Hanshin Earthquake and Great East Japan Earthquake.

From “sending aid to affected areas” to “sending aid to each victim”
The foundation for the construction of our Group’s BCP was
our experience from the Great Hanshin Earthquake and theGreat East Japan Earthquake.
Sagawa Express carried out quick support activities for the
1995 Great Hanshin Earthquake, which included transporting
emergency supplies. During the period from January 30 to April

1 of that year, we gathered together support personnel fromacross the country and carried out activities so that relief supplies could be sent to disaster victims as quickly as possible. We
established a foundation for support activities to properly respond to the needs of disaster victims by thoroughly collecting
and sharing information.

In order to quickly and reliably deliver supplies to disaster victims awaiting them, we used Shin-Kobe Station as a temporary collection and distribution hub and delivered themto evacuation shelters in Kobe city.

“Deliver needed goods as needed to the people who need them”
Even at the time of the Great East Japan Earthquake which
occurred on March 11, 2011, Sagawa Express collected regional
information when carrying out deliveries, and responded to thisinformation in ways such as making changes to the goods to besent, in accordance with changes in the evacuation conditions.
We also delivered goods to locations other than evacuation
shelters depending on necessity. As time passes, the supplies
required by disaster victims in affected areas change. The information collected by Sagawa Express was shared with cities andthe Japan Self-Defense Force, proving highly valuable in properly
responding to the needs of disaster victims for supplies. We also
proposed improvements to the operation of supply collection
points to cities and the Self-Defense Force, and promoted fundamental system arrangements for their operation as logistics hubs.
Furthermore, we placed a high priority on resuming our expressdelivery services as quickly as possible, and on March 17 of thesame year, we resumed our Sales Office Pickup Services whichallowed customers to make cargo pickups at our Sales Offices.
Even after this, we worked on restoring our standard services andwere able to return, for the most part, to our normal operations
within around 2 weeks after the disaster had occurred.

We delivered necessary supplies to evacuation shelters and individual residences

The SG Holdings Group will continue to fulfill its social responsibilities
as a leading logistics group.
SG HOLDINGS GROUP CSR Report 201613

Highlight

Resolving Customer Issues with “GOAL®“
by Optimizing Overall Logistics“GOAL®“ is the SG Holdings Group’s advanced logistics project team. It strives to optimize overall logistics and improve the added
value of solutions in response to the potential needs of both domestic and overseas customers, regardless of business type. This
special feature introduces some of its initiatives.

GOAL®’s Priority Areas

Global logistics

Reverse logistics

3PL

Green logistics

Corporation

Overseas factories
and overseas
logistics centerss
Domestic
logistics
centers

Corporation

Large-scalecommercial facilities
Individual

Domestic factories
and domestic
manufacturers

Retailers, stores

International forwarding

Collection service

What is the advanced logistics project team “GOAL®“?
Today, product life cycles are becoming shorter, service-related competition is becoming more intense, and business is
becoming more global. Our Group can offer proposals to customers faced with issues arising from such changes in the market environment, on the key point of improving the efficiencyof management by optimizing overall logistics. The advanced
logistics project team “GOAL®“ is the group that can provide
these proposals. Its name “GOAL®“ is derived from the initialletters of “GO Advanced Logistics”. It refers to its existence asa specialized organization that can press on toward the “goal”
of resolving logistics issues together with customers by providing advanced logistics. The roughly 150 members of “GOAL®”,
consisting of experts in various fields, combine the nationwide
network of Sagawa Express with the diverse resources and functions possessed by our Group companies, to provide one-stop
coordination of overall logistics. Through “GOAL®”, our Groupis contributing to the further growth and development of ourcustomers while also assisting in the resolution of various social
issues.

* GOAL® is a registered trademark of SG Holdings Co., Ltd.

14

SG HOLDINGS GROUP CSR Report 2016

Examples of “GOAL®”’s Total Solutions
Smart
Delivery®

A delivery service offering custom tailoredservices to suit each customer’s needs andexpectations.

Globallogistics

Provides intermodal transportation services thatcoordinate logistics hubs in countries around theworld with our domestic network.

3PL

3PL that combines warehouse facilities, storage
spaces, distribution processing services, andmulti-transformational services is provided on a
one-stop basis through synergy between Group
companies.

Reverselogistics

Optimal reverse logistics is provided that includes
the collection of returned products and followup support functions (product buy-backs andrepurchases).

Green
logistics

Provides facility logistics services to largescale composite facilities, office buildings, andmass retailers for increasing logistics efficiency,
reducing environmental impact, and improving
safety in surrounding areas.

Consulting

Reviews office placement and transportation/delivery methods, and examines and improves
customer logistics from various viewpoints
including internal warehouse operations andstorage methods.

CASE 1

Kobori Sake Brewery

A one-stop solution for sending frozen sake overseas
under thorough temperature control
Social Issue
While the overseas demand for uniqueand distinctive types of Japanese sake is on
the rise, there were previously no logistics
companies able to transport frozen products at temperatures of -18°C or lower tooverseas markets.

Our Solution
We proposed a one-stop logistics process using the synergy between thetransportation quality of our Hikyaku
Cool Express and the overseas exporting know-how of SGH Global Japan.

The “Japanese food boom” occurring overseas is a valuable market expansion opportunity for companies involved with food production businesses. The Kobori Sake Brewery, a long-standing brewery in Hakusan City, Ishikawa Prefecture, has exported Japanese saketo locations primarily in Asia for the past 10 years. In spring of 2015,
it received a request from a regular customer in Shanghai for unusual types of Japanese sake, and it suggested “Manzairaku Hakusan
Himuro”, a type of frozen sake. Frozen sake is a variety of Japanesesake that has not undergone heating processes to extend its life,
and is frozen as it is immediately after being pressed. Although thecustomer was interested in importing it, the brewery at that time
was using room-temperature marine transportation for normal
shipments, and did not know of any logistics companies that could
transport frozen goods at -18°C or lower with stable quality.
When Sagawa Express was consulted regarding this, we sug-

Value Provided to Society
Smooth export transactions under frozen
conditions became possible, expanding
the sales channels for customer companies. We were able to contribute to introducing Japan’s rich food culture to export
destination countries.

gested that the products be transported using refrigerated transportation to the Kansai International Airport by Hikyaku Cool Express, and then SGH Global Japan would act as an agent to carryout the complicated export procedures (tax exemption application
for alcoholic beverages) and export packing work. We carried out
centralized management for both domestic and overseas matters
including confirmation of the local conditions, through support by
our Group’s overseas offices at the export destinations. With thisone-stop logistics process, the Manzairaku Hakusan Himuro products were successfully made available in Japanese restaurants inShanghai in the summer of 2015, and were eagerly welcomed bymany customers.
While playing a part in the global deployment of Japanese companies, “GOAL® is also contributing to introducing Japan’s rich foodculture overseas.

Within Japan

Within China

Exporter

3

4

Japanese restaurants

Import partners

2

Kansai International
Airport1

Cooling facilities(Nichirei)

Kobori Sake Brewery“Manzairaku Hakusan Himuro”, a frozen
sake with a fresh flavor that previously
could only be enjoyed at sake breweries

Importer

Quality is preserved by comprehensive optimal temperature control
1 Products picked up by Sagawa Express are put under optimal temperature control by the cooperative use of Nichirei coolingfacilities.

2 The products are transported to Kansai International Airport by Hikyaku Cool Express.
3 The products are loaded using our independent packing methods. After export customs clearance procedures (repacking,Kobori Sake Brewery, which has inherited the
traditions of “Kaga Kiku-zake”, a long-standing
brewery established in the Edo Kyoho era

Customer Feedback

liquor taxes, etc.) are carried out by SGH Global Japan, the products are transported internationally to Shanghai Pudong
International Airport by cooled international air transportation.
4 Import partners deliver the products to Japanese restaurants at the transaction destination.

Sagawa’s one-stop management reassured us and strengthened our feelings of trust

Koichi Hashimoto
Corporate Officer and General Affairs Department Manager, Kobori Sake Brewery

Capturing the interest of the people of Shanghai, who always want new and high-quality products, requires
unique products not found anywhere else. Just when we were searching for a way to transport Manzairaku Hakusan Himuro frozen sake to the people of Shanghai so they could enjoy its freshly-made flavor, we were fortunatethat Sagawa Express happened to visit us, and we consulted with them on this matter. Sagawa not only arranged
thorough temperature control, but provided one-stop management, acting as an agent in export-related document preparation and other customs procedures, and even gave us update reports after the products arrived at
the local areas, giving us a tremendous sense of reassurance. Our company is intending to expand our business to
the USA and Europe as well. We look forward to receiving additional future support from Sagawa.

SG HOLDINGS GROUP CSR Report 201615

Highlight

CASE 2

Mitsui Fudosan Retail Management Co., Ltd.

Providing Smart Delivery to the 263 tenants of LaLaport Ebina
Social Issue
If products were delivered to each tenant
separately, it would lead to risks of negative effects such as creating traffic congestion in the areas around the facility,
increased environmental impacts, and inefficient deliveries.

Our Solution
We proposed “Smart Delivery®“, a service for carrying out combined delivery
by sorting products in advance usinglarge-scale facilities and Sales Offices of
the SG Holdings Group.

Value Provided to Society
The number of vehicles used for bringing
in products was successfully reduced byconsolidating deliveries, environmental impacts were lessened, and traffic conditions
were eased. This also made it possible forthe quality of deliveries to be improved.

would allow deliveries to be made at definite and accurate
times.
“Smart Delivery®“ is a form of “custom delivery” where products are delivered in batches after being sorted in advance at
our Group’s large-scale facilities. Furthermore, combining Smart
Delivery® with facility logistics enabled the overall number ofdelivery vehicles to be controlled, minimizing vehicle entry andexit, and thereby reducing congestion in receiving areas andaiding in the reduction of CO2 emissions. This also contributed to
improvements in delivery quality from a variety of perspectives,
such as greatly reducing delivery completion times, increasing
the efficiency of receiving and sorting work, and reducing thesize of receiving spaces. It allows the time at which products will
be received to be known precisely, providing great value not
only to tenants, but even to facility users who wish to purchaseproducts on back order, since they can clearly know what timethey can go to pick up the ordered products.

Mitsui Shopping Park “LaLaport Ebina” is a large-scale commercial facility that was opened in October 2015 in Ebina City,
Kanagawa Prefecture. To this commercial facility, sustained
through its use by the approximately 130,000 local residentsof the area, regional development with full consideration for
an environment that would be welcomed by the community
was an important issue. In particular, reducing traffic in the surrounding areas was a high-priority issue to ensure the safety of
local residents. If, at a commercial facility like this with a large
number of tenants and with tremendous quantities of products
being delivered every day, all of the tenants were to purchasetheir products separately and they were delivered by multiple
logistics operators, it would bring about risks of significant traffic
problems occurring in the areas surrounding the facility. Therefore, the SG Holdings Group proposed a comprehensive solution for the opening of LaLaport Ebina. The core points of this
proposal were “facility logistics” and “Smart Delivery®”, which

Mitsui Shopping Park
LaLaport Ebina

Sagawa Express
large-scale facility

LaLaport Ebina, which contains roughly
263 tenant stores

1

2

3

1 Sorting at our Group’s large-scale facilities.

Combined delivery of sorted products

Customer Feedback

2 Combined delivery to LaLaport Ebina.
3 Staff members distribute products within the facility to tenants.

We received precise proposals one after the other, and are fully satisfied with the results.

Hidesugu Kikuta

Acting Director, LaLaport Ebina Operation Center, Mitsui Fudosan Retail Management Co., Ltd.

We chose Sagawa Express due to the sense of reliability we felt from their comprehensive proposals to resolve
issues with outstanding cost performance, and the smoothness of consultation meetings with them. We feel that
Smart Delivery® enables products to be distributed smoothly on a constant basis without accumulating. It also
allowed us to control the traffic conditions that are likely to occur when facilities are opened. After the opening,
we received a proposal for services allowing cargo to be picked up at the Sagawa Express Delivery Support Centerin the facility. It was an excellent proposal that will increase the opportunities for customers to visit Mitsui Shopping Park LaLaport Ebina. We look forward to further proposals from Sagawa in the future as a business partner.

16

SG HOLDINGS GROUP CSR Report 2016

CSR Activities Report
The SG Holdings Group recognizes that providing a safe and secure infrastructure to our stakeholders, as Sagawa Express designated public institution under the Disaster Countermeasure Basic Act, is the foundation of its business activities. Also, in association with the further globalization of our businesses, we intend to fulfill even greater responsibilities by addressing social issues
on a global scale. We strive to be conscious of the environment and to develop regional communities.
Based on these concepts, in fiscal 2013 we organized activities centered on the seven core subjects and issues of ISO26000, andclosely examined their related issues. In fiscal 2014, we identified the six material CSR issues and set activity topics and mid-termgoals for each material issue. In fiscal 2015, we and our Group companies set activity themes and mid-term goals for each material
issue, and moved forward with enhancing their management across the entire Group.
We will continue to promote practical CSR activities throughout the Group.

Material CSR Issues

Providing High-Quality Services
with a Foundation of Safety ⇒p.18

19
21
22
23

Contributing to a safe and secure transportation society
Quality control based on the customer’s viewpoint
Developing and providing products and services from the customer’s viewpoint
Reflecting customer feedback in corporate activities

Promoting Business Activities
with the Goal ofEnvironment-Friendliness ⇒p.24

25
28
29
29
30

Reducing CO₂ emissions throughout all business activities
Reducing environmental impacts in cooperation with regional communities
Contributing to a recycling-oriented society
Preservation and environmental awareness of forests and biodiversity
Environmental Awareness for the Next Generation

Contributing to the Developmentof Communities ⇒p.31

31
33
44

Supporting the foundations of local communities
Interacting with local communities through sports activities
Supporting academics, culture, and next-generation education (refer to “Foundation activities”)

Building an Organization
with Individuality and Diversity ⇒p.34

35
35
36
37

Respect for human rights
Promotion of diversity
Promoting human resources cultivation
Promotion of work-life balance

38
38

Promotion of CSR in the supply chain
Cooperation with business partners

39
41
42
42
43

Building a foundation for CSR promotion
Compliance and internal control
Risk management
Information security
Crisis management

Constructing Supply Chain CSR ⇒p.38
Building a Responsible
Management Foundation ⇒p.39

Processes for Identifying Material CSR Issues
To identify six material CSR issues, we first applied ISO26000 as
an important matter for stakeholders, organizing activities centeredon its seven core subjects and issues, and closely examined theirrelated issues. After this, we conducted hearing sessions with responsible personnel from each department to extract the issues
that were significant to our Group, and prepared a tentative draft ofthe material CSR issues. We then exchanged opinions with external
experts on the validity of the draft. In November 2014, the material
CSR issues, incorporating the opinions received from external experts, were shared by the CSR Committee. Furthermore, in February
2015, a meeting was held with the responsible personnel from eachdepartment, and the progress of the material issues was confirmed.

Organize activities and closely examine issues centered on ISO26000
Conduct hearings with responsible personnel from each department
Prepare drafts for material CSR issues
Exchange opinions with external experts on validity of drafts
Material CSR issues are shared by CSR Committee

Confirm progress of material issues

SG HOLDINGS GROUP CSR Report 201617

Providing High-Quality Services with a Foundation of Safety
Awareness of Social Issues
SD (Safe Driver) card certification rate

93.3

%

As social concerns for “safety” and “quality” grow, we believe that it is important for us
to provide high-quality products and services in our role as a corporate group responsible
for the social infrastructure component of logistics by paying strict attention to providing
business activities based on a customer viewpoint with the highest priority placed on safety
and security.

SG Holdings Group’s Management
The SG Holdings Group considers “safety” to be its highest priority and actively promotes
building an organizational system with the goal of completely eliminating traffic accidents.
Under the safety management systems unifying management and job sites according to the
Safety Measures Committee, we are striving to achieve a safe and secure transportation society
by deploying the PDCA cycle based on the transport safety management system. We havealso voluntarily specified seven quality KPIs regarding our product quality, and by constantly
working toward the improvement of their completion rates, we are taking thorough action
toward quality management that can meet the level of trust placed in us by our customers.
We are aware that with the needs of society and customers changing rapidly, it is vital togather feedback and reflect it in our corporate activities, and so in fiscal 2015, in addition
to developing new services, we made efforts to strengthen our time-related quality andtemperature control quality as well. Our Group is fulfilling our duties
as a corporation responsible for the social infrastructure componentof logistics, by not only meeting the expectations of society and ourcustomers, but exceeding them.
Hideo Araki

Director, SG Holdings Co., Ltd.
President, Sagawa Express Co., Ltd.

Goals and Results of Material CSR Issues
Activity Topic

Contributing toa safe and securetransportationsociety→

pp.19-21

Quality control
based on acustomer
viewpoint→

p.21

Developing andproviding products
and services
from a customer
viewpoint→

p.22•23

Reflecting
customer feedback
in corporate
activities
→

18

p.23

Mid-Term Goal

Results in Fiscal 2015

Action Plans for Fiscal 2016

◦To reduce accident index by
5 points every year from thefiscal 2012 reference value◦Applied measures including coming to full stops at temporary stop positions,◦To strive to prevent accidents at intersections andachieving 100% compliance with parking-related safety measures, and putting
accidents involving the movement of unattended
Environmentally-Friendly Driving into practice, as important measures, andvehicles, which have a high risk of leading to serious
implemented safety education and accident prevention instruction (number
accidentsof accident cases: 3.6% higher than previous year)◦To eliminate accidents related
to vehicle maintenance andto improve maintenancetechniques◦Continued the implementation of vehicle maintenance training forsafety promotion representatives at each Sales Office (number of vehicle
maintenance training sessions implemented: 23)◦To plan to raise the expertise of instructors throughongoing implementation of training for safety
promotion personnel◦To contribute to traffic safety
for the entire society◦Developed safe driving know-how courses to general businesses as training
services (number of participants in Safe Driving Training Services: 1,663)◦To implement training for employees as anorganization carrying out Operation Manager courses,
while also investigating further services to generalbusinesses◦To acquire an even higher
level of trust from customers◦To enhance quality control
system for refrigerated andfrozen cargo, and to create
mechanisms for monitoring
temperature during transport◦To apply the combined
power of the Group to build
systems that can provide new
businesses and new services◦To further expansion of new
products and new services
from a customer viewpoint◦Improved the speed of data disclosure by revising our quality management
system, and increased the speed of cause investigations and response
measures◦Implemented initiatives intended to improve convenience and quality forcustomers, such as Convenience Store Pickup Services (at all Lawson storesnationwide) and regular quality meetings◦Carried out regular inspections at Cool Centers and Sales Offices, andimplemented quality improvements by randomly verifying temperature
control conditions during transport◦To continue implementation of temperature
verification◦Improved and repaired equipment related to cooled deliveries, in order toprovide even safer and more secure low-temperature logistics services◦To strengthen our handling of refrigerated and frozen
packages by improving and repairing sales terminal
devices◦Deployed outstanding examples of initiatives by the advanced logistics
project team “GOAL®“ horizontally in order to expand sales

SG HOLDINGS GROUP CSR Report 2016

◦To further expand the logistics solutions created by“GOAL®“ across the Group◦To further expand internationally-seamless logistics◦Applied customer feedback to provide services such as the Same-Day
Delivery Service for the 23 Tokyo Wards, Living Space Organization Services,and SG Extended Warranty Services◦To develop and provide services that apply customer
feedback even further◦Expanded the services of Smart Delivery® to increase the efficiency of goods
receiving operations at large-scale commercial facilities and shopping malls(provided Smart Delivery 24® and delivery information services)◦To expand Smart Delivery® to large-scale commercial
facilities and shopping malls nationwide◦To expand contact windows for◦Regularly provided the results of analysis of customer feedback using text
collecting customer feedback,miningwhile enhancing the mechanisms
for fully applying this feedback◦Enriched customer feedback content analysis to enable a greater
to service improvement andunderstanding of the basis and background of customer requests than before
product development.
◦To establish support methods
that can provide an evenhigher degree of satisfaction,and to enhance follow-up
procedures with customers◦To maintain and improve quality by promoting andsupporting nighttime deliveries, which have a highrate of customers being at home, conducting impact
tests, and building delivery quantity estimation tools◦Regularly carried out customer satisfaction questionnaires and complaint
response satisfaction questionnaires for online members◦To enhance the collection functions of customer feedback
management systems, and to arrange environments forfurther internal sharing of analysis results◦To carry out improvements by providing effective
analysis data

◦To continually implement customer satisfaction
questionnaires

Providing High-Quality Services with a Foundation of Safety

Contributing to a safe and secure transportation society Safety Management Systems*Environmentally-Friendly Driving: a form of driving that aims to consider theenvironment and prevent traffic accidents. Drivers do not start, accelerate, or stop
their vehicles suddenly.

Safety Management Organization Diagram
Consider feedback
from on-site
employees

Board of Directors

Safety Measures Committee

Instructions,guidance

Safety Meeting

100

100

2000

10

31

30

80

13

14

15

70

(FY)

Transport safety management
evaluation by the Ministry ofLand, Infrastructure, Transport
and Tourism Promoting Safety Education
Sagawa Express carries out various types of training fordeveloping safe drivers at its training courses in Kanagawa,
Aichi, Hiroshima and Kagawa Prefectures.
Newly-employed drivers begin by undergoing basic safe
driving training, and continue to participate in training until
they are able to become independent outstanding SDs (Sales
Drivers). The training period, including follow-up activities,
is set at a period of one year. Dedicated efforts are also madeto develop instructors, with SD instructor certification training
and safe driving tester certification training provided to
employees engaging in on-site instruction. In addition, in order
for all drivers to practice Environmentally-Friendly Driving, we
conduct specialized training for management and instructors,
with roughly 100 instructors being cultivated every year.
In continuation from last year, we are carrying out ongoingtraining for safety promotion representatives from each Sales
Office, and in fiscal 2015 we conducted 23 training sessions
on vehicle maintenance, to educate participants on the mostcurrent technology and knowledge.
Safety-related training
SD instructor instruction
periodSD instructor
follow-up period(SD= Sales Driver®)Regular driver observation

6 month driver mentoring

12 month driver mentoring(continuous driving ability assessment)

3 month driver mentoring

1 month driver mentoring

SD certification training

Collection and delivery service test

Drivers

12

Driving Assessment

Service Managers

Maintenance Managers

11

Driver Mentoring

Human Resources/
Safety Promotion Meeting

35

75

Driving ability assessment

Branch37

28

25

Basic safe driving training

Office Manager
Meeting

90

20
0

95

85

40

Basic new employee training

Headquarters Safety
Promotion Meeting

93.4

85.8

Join company

Deliberations on
safety related topics

93.3

92.7

93.7

60

100

93.6

92.9

80

Training prior to joining company

Safety Discussion
Meeting(%)

SD (Safe Driver) certification trends

120

New driverdevelopment process

Sales Office

Labor Practices

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

Sagawa Express views transport safety as the most importantmanagement issue. Our mid-term goal is “To reduce theaccident index by five points every year from the fiscal 2012reference value”, and we are enhancing our efforts to achievethat goal.
In terms of the system, we are building safety management
systems that unify management personnel with job sites,such as by reflecting feedback from drivers in Safety Measures
Committee meetings primarily centered on management staff.
In terms of operation, a PDCA cycle aimed toward ensuringtransport safety is being deployed based on the transport safety
management system.
The Safety Measures Committee holds a safety meeting for
its committee members each month in which the Committee
deliberates on the progress of safety activities, and on
multifaceted measures to ensure safety. We are also holding
Sagawa Official Communication procedures participated inby employees across the country on a regular basis, applying
feedback from job sites to safety measures. Furthermore, in fiscal
2015 we underwent a transport safety management evaluationby the Ministry of Land, Infrastructure, Transport and Tourism, as
an initiative to maintain and improve the safety management
system of our company.
Although in addition to these, we carried out (1) coming
to full stops at temporary stop positions, (2) achieving 100%
compliance with parking-related safety measures, and (3)putting Environmentally-Friendly Driving* into practice, as
important measures toward traffic accident prevention, thenumber of traffic accidents occurring in fiscal 2015 was 3.6%
higher than the previous year.
In fiscal 2016, we will place high priority on initiatives toprevent accidents at intersections and accidents involving the
movement of unattended vehicles, which have a high risk ofleading to serious accidents.

Office Manager

Consumer Issues

Tests conducted by safe driving testers

SG HOLDINGS GROUP CSR Report 201619 Truck Driving Championships Securing Safety for Highway Transportation

At Sagawa Express, with the goal of cultivating professional
drivers and increasing the safety awareness of all our employees
as part of our responsibility as a corporation that uses publicroads to do business, we hold the Driving Championships every
year.
In fiscal 2015, a total of 81 drivers (including employees ofGroup companies) were chosen from all over the country to use
the driving skills and knowledge they have gained to compete
in knowledge, driving, and inspection.
The championships are a form of human resources
cultivation and an opportunity to enhance driver motivation.
Training is performed jointly at multiple Sales Offices for thechampionships, which allows participants to share related
knowledge, hone their driving skills and etiquette, and develop
professional awareness.

To improve safety in highway transportation, Sagawa Expressis engaged in a variety of initiatives together with partnercompanies.
Highway Transport Safety Patrols carry out activities to prevent
traffic accidents and vehicle breakdowns, by performing vehicle
checks and mentally and physically refreshing our drivers at main
service areas and parking areas on arterial routes. IT performs
vehicle inspections not only for partner companies but also on
general trucks. Also, Highway Transport Terminal Inspections
are being implemented in which administrators from all
Sagawa Express locations work together with administratorsfrom partner companies, using special check sheets to conduct
the inspections.
Furthermore, safety seminars are held for managers of partnercompanies related to highway transportation. In fiscal 2015,
managers from 243 companies participated in the seminars
held at five locations across the country.

Everyday inspection contest
including inspection withlightsHighway Transport Terminal
Inspections

Highway Transport Safety Patrols Providing Safe Driving Training Services Traffic Accident Prevention Initiatives
SG Motors maintains vehicles owned by the SG HoldingsGroup, with the goal of eliminating traffic accidents related tovehicle maintenance. Specifically, it is expanding its support
organization and improving service in an attempt to enhance
its maintenance network across the country.
Sagawa Express has equipped 32.5% of all of its vehicles(about 7,900) with drive recorders* to utilize in providing driving
instruction to drivers. Sharing of the information recorded inthese drive recorders by many drivers will help to prevent traffic
accidents.
*Drive recorder: Recording equipment specialized for installation in vehicles,
used to record the causes of accidents or to raise safe driving awareness. The
five actions consisting of “braking”, “stopping”, “steering”, “turning”, and “smooth
driving” are being applied in instruction to correct unsafe driver behavior.

To contribute to the traffic safety of society as a whole,
Sagawa Express also provides the knowledge of traffic safety
it has gained until now to general operators as a Safe Driving
Training Service. Provided a company-owned training facility
for driving (approximately 31,680 m2) in Kanagawa Prefecture,
which is also able to handle programs that meet the needs ofour customers.
This service includes programs such as safety lectures for
instructors and drivers as well as driving aptitude tests, and it
is notable for not being limited to classroom instruction but
also offering practical training through use of the company’s
facilities. We have received inquiries from not only corporations
dealing with freight and transportation, but from othercorporations in different type of business that use vehicles intheir businesses, such as those shipping their own products orin the nursing care business. In fiscal 2015, 42 companies held
127 training sessions, with 1,663 participants.
In fiscal 2016, we would like to contribute to the traffic safetyof our entire society as a service providing organization, byoffering our extensive safety-related know-how to customers inall business fields while also enhancing the training we provide
to instructors.

Drive recorder screen

Instructions being given using a
training vehicle

20

SG HOLDINGS GROUP CSR Report 2016

Providing High-Quality Services with a Foundation of Safety Providing Telematics Cloud Services
With consideration for the progress of IoT technology, SG
Systems is providing telematics cloud services using cloud
platforms. “Telematics” is a collective term that refers to providing
information services combined with telecommunications
systems to automobiles or other moving bodies. These services
provide a wide variety of support capabilities, beginning withbasic functions related to safety and security such as driving
evaluation and daily driving report creation, and extending tofunctions based on individual requirements. By accumulating
and analyzing various types of information during automobile
operation, SG Systems is contributing to improvements in thesafety and convenience of customers.

Image of driving datadetails screen

Image of daily driving
reportQuality control based on a customer viewpoint

Consumer Issues

 Quality Improvement Initiatives

 Improving Hikyaku Cool Express

With 457 Sagawa Express sales offices having obtained“ISO9001:2008”
international
quality
management
accreditation, Sagawa Express continues to improve transport
service processes with the goal of achieving an even stronger
relationship of trust with its customers.
In fiscal 2015, we strengthened our quality management
by setting seven quality KPIs (time band service fulfillment
rate, fulfillment rate of redelivery due to absence, just-in-time
delivery fulfillment rate, morning delivery rate, number ofCool Express freight accidents which are our responsibility,
number of freight accidents which are our responsibility, andcomplaint occurrence rate), and implementing measures suchas quickening the disclosure of data related to quality andimproving and repairing driver mobile terminal devices. With
data as recent as that for the previous day made available forviewing at all Sales Offices, investigations into the reasons for
non-fulfillment cases that have occurred, and their response
measures, can be carried out more quickly.
In fiscal 2016, we will take even greater steps to improve
quality, such as continuing the creation and application ofhighly-effective quality KPI analysis tools and improving theefficiency of delivery operations further.

With the goal of thorough temperature control for the Hikyaku
Cool Express, we have carried out various improvements in thepast including reprinting care mark stickers. In fiscal 2015, we
made efforts to provide safer and more secure low-temperaturelogistics services, including the development of supplies
for cooled delivery such as new types of shoulder bags, theimplementation of regular inspections of temperature andequipment at Cool Centers (relay bases) and Sales Offices, andrandom verification of temperature during transport of cargofrom pickup to delivery.
In fiscal 2016, while implementing site inspections on
an ongoing basis, we will build an even more thoroughtemperature control system from the perspectives of bothinspection and system construction, with the goal of preventing
human-related errors that are one cause of Cool Express
accidents, by introducing additional check systems when cargoenters refrigerating or freezing warehouses.

Delivery time selection service sticker

Hikyaku Cool Express delivery
SG HOLDINGS GROUP CSR Report 201621

Developing and providing products and services from a customer viewpoint Consumer Issues Providing Moving Services to Answer a Varietyof Needs
SG Moving began our Ladies Moving service in April 2014,
as “a service provided by women, with special consideration
for women”. This service was created in response to feedback
from female customers who felt some resistance to malestaff entering their residences or handling their belongings
as a part of moving work. Female staff members can provide
flexible support in accordance with customer requests, fromprice quotations and advance packing of belongings to sameday moving of belongings and unpacking work. In addition tocustomers living alone, there are also demands for this service
from homemakers and elderly couples, with its scale growing
every year.
In addition, to further respond to the needs of our customers,
we started our Living Space Organization Services from fiscal
2015. These provide a variety of lifestyle-related services
including personal effects organization (while alive), sortingand storage advice, room furnishing rearrangement, stand-in
removal of unneeded items, housework stand-in services, andhome staging. We are also promoting the acquisition of related
qualifications (Personal Effects Organizers, Sorting and Storage
Advisors, etc.) in accordance with providing these services.

customer inquiries, and also provides total support for manyother necessary operations involved in recalls. To a corporation,
conducting recall operations in a timely manner not only aids inthe avoidance of administrative risks but is also viewed as a partof fulfilling its social responsibilities.

 Express Delivery Counter Supporting“Sightseeing Without Baggage”
SG Holdings Group provides logistical support for nationaland corporate inbound strategies and contributes to therevitalization of towns and cities.
Sagawa Express is establishing service bases to support“Sightseeing Without Baggage”, promoted by the government
to increase customer satisfaction among foreign travelers visiting
Japan, in seven locations that are visited particularly often byforeign travelers, such as JR Tokyo Station and Osaka Station,
Tokyo Skytree®, and Asakusa Kaminarimon. These locations
provide services that include temporary hand baggage storage
for foreign travelers and same-day luggage delivery to thecustomer’s lodgings or the airport. We are also engaging in theprovision of other detailed services for foreign travelers, suchas appointing staff members able to speak multiple languages,
applying the next-generation translation system “SG Smile Call”,
and providing guidance on various services with the humanoid
robot “Pepper®“*.
We will continue to aim toward enriching our services related
to “Sightseeing Without Baggage” in order to improve theconvenience of sightseeing for visitors to Japan.

Ladies Moving services Start of Same-Day Delivery Service for the 23
Tokyo Wards
Recent trends show that requests for same-day delivery are
becoming extremely frequent, with trends even for delivery fromremote areas growing similarly. To respond to these requests,
Sagawa Express started the Same-Day Delivery Service for the
23 Tokyo Wards in March 2016, in which air cargo intended forthe 23 Tokyo wards that arrives at Haneda Airport using Hikyaku
Air Express can be delivered on the same day. The delivery ofcargo arriving at Haneda Airport by 14:00 can be completed by
18:00, while that arriving by 17:00 can be completed by 21:00(delivery to individual residences is not possible).

 Fulfillment Services in the Event of Recalls
In March 2012, the SG Holdings Group began offering “Recall
Total Service”, a service to take care of all aspects of recalls. In
addition to picking up, replacing, and refunding defective
products, the service manages a call center to respond to22

SG HOLDINGS GROUP CSR Report 2016

Sagawa Express Shinjuku
Service Center, within theTokyo Tourist Information
Center on the 3rd floor of
the Shinjuku Expressway Bus
Terminal

The Tokyo Service Center with
its Japanese design*”Pepper®“ is a registered trademark of SoftBank Robotics Corp.

Providing High-Quality Services with a Foundation of Safety Providing Extended Warranty Services in the
E-commerce (EC) Market
While extended warranty services are generally well-known
and often used at large electronics retailers, they are less widely
known in the EC market. They also have complex sales schemes
and there are not many businesses offering them as services.
To answer the desires of consumers for such extended

warranties in the EC market, SG Moving started the SG Extended
Warranty Service in October 2015 under joint development with
The Warranty Group. This service offers one-stop support as aservice providing repairs free of charge during a defined period
after a manufacturer’s warranty period, according to warranty
terms specified in advance, and covering service operation,
repair, collection, and return procedures for broken goods.

Reflecting customer feedback in corporate activities

Consumer Issues Mechanisms for Fully Applying Customer
Feedback Two-Year Consecutive Victory in Call Operator
ContestSagawa Express is focusing on efforts to strengthen our
mechanisms for fully applying opinions, requests, and othervaluable customer feedback to service improvements as well as
to product and service development.
In fiscal 2015, we specifically and finely classified the opinions
and requests of customers received by our company using text
mining technology. This made it possible to visualize the causes
and trends linked to dissatisfaction and requests, enabling theirapplication to initiatives for improving customer satisfaction.
From here on, we will improve the precision of analysis
to achieve an even deeper understanding of the basis andbackground of customer requests, while analyzing the responseof our company toward customers who have responded tosatisfaction questionnaires and given us their requests, to strive
for further improvement in customer satisfaction.

Sagawa Express aims to establish support procedures thatcan give customers an even higher level of satisfaction, and in
addition to carrying out various types of call support satisfaction
research, we are also actively taking steps to improve thetelephone support skills of our employees. Specifically, we arecarrying out telephone support education and training, as wellas verifying telephone response at all Sales Offices nationwide
to confirm and give instruction on the first thing Sales Office
operators say during phone calls, as well as the level of productknowledge possessed by employees.
We also participate actively in the Call Operator Contest heldby the Japanese Telephone and Telegraph Users Association as
one part of improving our telephone support skills. In November
2015, the 54th contest was held in Gunma Prefecture, with
13 participants from Sagawa Express. An employee fromthe Komaki Support Center won the contest, achieving theoutstanding result of consecutive victories for Sagawa over two
years. The winner demonstrated support skills showing close
consideration for the customer from the customer’s viewpoint,with resourceful support
ability evaluated highlyby the judges. Four otherparticipants from Sagawa
Expressalso
received
awards of excellence.

Providing customer support

Competing in the Call Operator
ContestComment from an expert

Nobuhiro Takahashi
Deputy Director, Safety Policy Division,
Road Transport Bureau,
Ministry of Land, Infrastructure, Transport andTourism

Ensuring transport safety serves as the foundation for an
automobile transportation business, and it is essential for suchbusinesses to view safety as their highest priority and take steps toensure it.
Sagawa Express has built a Safety Management System thatunifies its top level of management with its job sites, and is showing
its continual efforts to improve transport safety. It is also actively

carrying out advanced steps across the entire Group, including the
upgrading and expansion of vehicle maintenance networks andthe assurance of vehicle safety by SG Motors, as well as measures
for the education and cultivation of drivers and instructors, driving
instruction that utilizes drive recorders, and health managementfor drivers. Furthermore, in addition to conducting inspections
on general trucks in collaboration with partner companies andproviding public awareness on accident prevention measures suchas by holding ongoing traffic safety classes for children, it is also
contributing to the traffic safety of the entire society by providing its
own internal safety education services and general services involving
telematics technology that uses telecommunications systems.
There are high expectations for Sagawa to lead the industry, ina wide range of fields including safety measures, improvement oftransportation efficiency, and disaster response measures, in the
future.

SG HOLDINGS GROUP CSR Report 201623

Promoting Business Activities
with the Goal of Environment-Friendliness
Number of environmentally-friendly
vehicles* owned

8,080*Environment-friendly vehicles:
Post-new long-term regulation compliant vehicles
CNG trucks
Hybrid trucks
Electric vehicles

Awareness of Social Issues
With the danger of climate changes exceeding levels that can be sustained, we havea significant obligation as a logistics business operator that uses vehicles which have an
impacts on the environment to do business, to take initiatives for reducing those impacts.

SG Holdings Group’s Management
The SG Holdings Group is making efforts to prevent global warming and air pollution.
It is also promoting activities with consideration for the global environment while looking
toward the development of a sustainable society. Following an environmental philosophy
and policies that are shared across the Group, we are cooperating with the national andlocal government, and corporations to achieve even more effective measures to curb
environmental impacts, beginning with the reduction of CO₂ emissions throughout ourbusiness activities. In fiscal 2015, in addition to our past environmental response measures,
we expanded the number of our offices acquiring Carbon Neutral Certification as a way tofurther promote energy conservation. We also started Smart Delivery®, a service that can
reduce environmental impact by streamlining and improving the efficiency of logistics
processes when cargo is received, as a new logistics service contributing to the creation of alow-carbon society. In addition to deploying reverse solutions that use distribution systems
for the creation of a recycling society, we are preserving the biodiversity of company-owned
forests as an activity aiming for coexistence with society and nature, and cultivating the next
generation through environmental education. As a leading company
in the industry, it is the duty of our Group to take action toward actively
reducing environmental impact, and we wish to successfully fulfill
the responsibilities we have by driving the industry with pioneering
activities.
Hiroyuki UchidaDirector, Sagawa Express Co., Ltd.

Goals and Results of Material CSR Issues
Activity Topic
Reducing CO₂
emissionsthroughout all
business activities→ pp.25-27

Reducing
environmental
impacts incooperation with
communities
p.28→

Contributing to a
recycling-oriented
societyp.29→
Preservation andenvironmental
awareness offorests andbiodiversity→

p.29

Environmental
Awareness for the
Next Generation→

p.30

Mid-Term Goal

Results in Fiscal 2015

◦To reduce CO₂ emissions
throughout the Group◦Reduced CO₂ emissions through multiple business activities, such as theintroduction of environmentally-friendly vehicles, promotion of modal shifts,
and improvement of transportation efficiency◦To continue activities for reducing CO₂ emissions◦To actively participate in thecreation of environmental
impact reduction models
through cooperation
with national and local
governments◦Expanded the number of offices acquiring the Ministry of the Environment’s
Carbon Neutral Certification (total of 8 offices in the Group)◦Further promotion of new services leading toincreased numbers of carbon-neutral certified
offices and reduction of CO2 emissions◦To increase the efficiency oflogistics processes◦Expanded facility logistics and introduced Smart Delivery®

◦To expand facility logistics and Smart Delivery®

◦Expansion of Reverse
Solutions◦Responding to a request from RenetJapan Inc. which has received related
approval, accepted a commission for pickup and delivery for their Used
Small Home Appliance Pickup Service◦To expand pickup and delivery in the Used Small
Home Appliance Pickup Service◦To promote activities topreserve biodiversity◦Carried out measures to preserve biodiversity through preservation activities
in the company-owned forest known as the Takao 100-Year Forest◦To promote forest preservation activities incooperation with Group employees, local citizens,and volunteers◦To promote energy saving
through environmental
awareness within thecompany◦Implemented energy use reduction activities (1% increase in fuel efficiency,
1% decrease in power usage) at all Sales Offices◦To implement energy use reduction activities andintroduce LED lighting◦Implemented activities including rice cultivation experience activities(roughly 310 participants) and nature experience activities in forests (roughly
300 participants)◦To support next-generation
education throughenvironmental education◦The Takao 100-Year Forest, a company-owned forest, was recognized by
Hachioji City as a “Place for Experience Opportunities” based on the Act on
Enhancing Motivation on Environmental Conservation and Promoting ofEnvironmental Education◦Held the National Eco-Art Contest

24

Action Plans for Fiscal 2016

SG HOLDINGS GROUP CSR Report 2016

◦To implement rice cultivation experience activities
and nature experience activities in forests◦Held the National Eco-Art Contest

Promoting Business Activities with the Goal of Environment-Friendliness

SG Holdings Group Environmental Philosophy and Policies
SG Holdings Group Environmental Philosophy

3. Promotion of 3R*

To exist in harmony with society and nature, the SG Holdings Group will

All Group companies will reinforce their efforts to promote 3R in our businesspromote business activities with consideration for the global environment

activities, to contribute to achieving a sustainable society.

and will take steps for voluntary and continuous environmental management.

4. Environmental education initiatives
We will provide environmental education on reducing environmental

SG Holdings Group Environmental Policies

impacts and preserving and revitalizing the natural environment to all Group

1. Prevention of global warming
By providing products and services that take the environment into
consideration, and through resource-conserving and energy-conserving
activities, we will reduce the emissions of CO₂ resulting from our businessactivities and take steps to prevent global warming.

employees, in order to raise awareness of environmental issues.
5. Environmental communication initiatives
With the goal of achieving mutual understanding with communities, wewill make active efforts to release information and to take extensive steps
for environmental communication, primarily aimed at children who will be

2. Prevention of pollution
We will strive to prevent air pollution, water pollution, and soil pollution
resulting from our business activities.

responsible for the next generation.

*3R：The term “3R” is derived from the initials of its main points: “Reduce,”“Reuse,” and “Recycle.”

Reducing CO₂ emissions throughout all business activities

Environment

Reductions to environmental impacts in business activities

Modal shift

CO2
reduction
Train stations
and ports

Train stations
and ports

2 Modal shift
CO2 emissions reduction results(fiscal 2015)

1 Environmentally-friendly vehicles

119,756t-CO2

CO2
reduction
CNG
HV•EV

Shippers(clients)
Individual /Corporation

CO2
reduction

CO2
reduction

Sales Office(delivery)

Sales Office(pickup)4
Service
Centers

CNG
HV•EV

3
Large-scale Hub Facilities

CO2
reduction

CO2
reduction

4
Service
Centers

Deliverydestinations
Individual /Corporation

Logistics centers
5 Sagawa Distribution Center

CNG
HV•EV

Supplier(Sagawa Ryutsu Center = SRC)

CNG
HV•EV

Sales Office

1 Environmentally-friendly vehicles

2 Modal shift

3 Large-scale Hub Facilities

4 Service Centers

5 Logistics Centers (SRCs)

CNG trucks feature low CO
and NOx (nitrogen oxides)
emissions, and do not emitSOx (sulfur oxides) or PM(fine particulate matter). In
addition to these, hybrid
trucks and electric vehicles
have also been introducedin the collection anddelivery business.
See p.26“Modal shifts,” or transitioning
from traditional truck transportation to methods with less of anenvironmental impact such as
boats and trains, are being
promoted. The Super Rail Cargo
special container train, jointly
developed with the Japan Freight
Railway Company, is in operation
between Tokyo and Osaka.
See p.26

As part of efforts to build atransport supporting network,
we are working to reduce thenumber of vehicles we use by
optimizing transport usinglarge-scale Hub Centers (23locations nationwide). This willlead to reductions in theemissions of CO2 and air
pollutants from trucks.
See p.27

We have established Service
Centers in approximately 340
locations throughout Japan, whichcollect and deliver packages withhuman powered vehicles, such aspush carts and three-wheeled
delivery cycles, rather than using
trucks. Each service center has
reduced the use of automobiles by
3 to 5 vehicles per office.
See p.26

By having customers use SRCs
as logistics facilities, products
are centrally managed within
the facilities, so transportationfrom shipping centers toseparate storage or processing
centers is not required.
Twenty-seven SRC locations areoperated and managed as
logistics processing locations.
See p.27

2

SG HOLDINGS GROUP CSR Report 201625 Status of CO₂ Emissions

Trends in environmentally-friendly vehicle introduction(Sagawa Express)

Although Sagawa Express took steps toward reducing its
amount of CO2 emissions with the goal of a 1% decrease
compared to the previous year, its total CO2 emissions in fiscal
2015 were roughly 391,900 tons (101.2% compared to theprevious year).
Also, in recent years the volume of emissions has been madevisible across the entire supply chain, and steps have beentaken to disclose such information. In addition to information
on its “Own emissions (Scope 1, Scope 2),” Sagawa Express was
one of the first companies in the industry to publicly disclose
information on “Other indirect emissions (Scope 3)” as well.
Trends in CO₂ emissions

44
40

4.59

4.48

36
32
28
24
0

9,000
7,500

Electric vehicles
Post-new long-term regulation compliant vehicles
Hybrid vehicles
CNG trucks
25,965

6,000
4,500

26,86926,779

9

385
97

99

394
98

Total no. of vehicles(vehicles)
16

30,00013

24,47024,351

24,379

1,311

2,801

3,990

91

94

93

25,00020,00015,000

3,000
1,500
0

35,00010,000
4,349

4,293

4,258

3,981

4,019

3,981

2010

2011

2012

2013

2014

2015

0
(FY)

 Modal Shift Promotion

Sagawa Express
Total for all other Group companies (domestic)(10,000 tons)(vehicles)

41.87

40.39

39.23

39.39

38.72

39.19

2010

2011

2012

2013

2014

2015

(FY)

Trends in total CO₂ emissions*Data for fiscal 2014 and later includes all domestic emissions of the SG HoldingsGroup, while data up to fiscal 2013 includes only the emissions of Sagawa Express.

Sagawa Express is promoting “modal shift” in order to carryout transportation with a low environmental impact.
Express delivery by Super Rail Cargo, a special container train
jointly developed with the Japan Freight Railway Company, is
one component of this modal shift. Since its start in 2004 it has
expanded to cover approximately 10% of all freight transported
between Tokyo and Osaka. It is operated for one trip each way
late every night, with the total volume of cargo it carries over theround trip equivalent to 56 10-ton trucks. It is currently making
great strides in reducing our burden on the environment, suchas by reducing CO₂ emissions.

CO₂ emissions throughout the supply chain (fiscal 2015)[Sagawa Express]
Company-owned
vehicles
266,659t-CO2
23.0%
1,161,559
t-CO2
Other
Supply chain
769,595t-CO2
66.2%

Company-owned
facilities
125,305t-CO2
10.8%

 Introduction of Environmentally-friendly
VehiclesSagawa Express owns a total of approximately 8,080 vehicles(roughly 30% of the total number) that include post-new
long-term regulation compliant vehicles, compressed naturalgas (CNG) trucks, hybrid trucks, and electric vehicles. Amongthem are 3,981 compressed natural gas (CNG) trucks (4,002
trucks throughout the entire Group), and Sagawa Express wasrecognized as the top company in the world in terms of numberof such trucks owned in 2011 (International Natural Gas Vehicle
Association).
Also, Sagawa has private-use natural gas filling stations set
up in 22 locations across the country, and is also independently
promoting infrastructure arrangements. As a means ofenvironmental friendliness for large vehicles, it introduced fivelarge CNG trucks in March 2014, ahead of the rest of the industry.
Furthermore, it is actively striving to reduce environmental
impact with measures such as introducing 16 electric vehicles
(EV).

26

SG HOLDINGS GROUP CSR Report 2016

Special container train,
Super Rail Cargo Establishment of Service Centers
Sagawa Express has established Service Centers in 337
locations throughout Japan, which collect and deliver packages
with human powered vehicles, such as push carts and threewheeled delivery cycles, rather than using trucks, etc. Each service
center has reduced the use of automobiles by 3 to 5 vehicles
per office. This can lead to about 1,500 fewer automobiles on
the road in total, thus contributing to a reduction in CO₂ and air
pollutant emissions.

Tokyo Yaesu Exit Service
CenterPromoting Business Activities with the Goal of Environment-Friendliness Promoting Increased Logistics Efficiency with
Sagawa Distribution Centers
Sagawa Global Logistics operates and administers Sagawa
Distribution Centers (Sagawa Ryutsu Centers = SRCs), logistics
facilities directly connected to Sagawa Express Sales Offices.
In general, many processes are involved in the distributionof merchandise from factory to market. It needs trucks or othervehicles between each stage. However, products in an SRC
are centrally managed within the facility, so transportation to
separate storage or processing centers is not required, whichallows us to simplify our customers’ logistics operations andreduce costs. At the same time, CO₂ emissions and air pollutants
such as NOx and PM can also be curbed by reducing energy andminimizing truck transport.
Active efforts are also being made to reduce environmental
impacts, such as by thoroughly separating and collecting wastematerials produced by logistics processes in SRCs, promoting
their recycling, and proposing packing with environmentfriendly materials.

Conventional distribution
Sales Office

Shipping inspection
picking

Warehousing
Inventory

Sales Office

Product
lineupShipping
destination
DeliveryDistribution using the SRC model
SRC
Sales OfficePacking

Shipping inspection

Tagging

Picking

Sales Office

Product
lineupWarehousing

Supplier

Shipping
destination
Delivery3PL function + Sagawa Express sales office
Reduction

Reduction Improving Transportation Efficiency
with Large-scale Hub Facilities
As part of efforts to build a transport supporting network,
Sagawa Express is taking steps to optimize transportation
processes using large-scale Hub Facilities (23 locations
nationwide). By temporarily consolidating cargo picked up fromindividual regions at large-scale Hub Facilities and transportingthem in batches to each destination, the number of trucks
used can be reduced, which can aid in the suppression of CO2
emissions and prevention of atmospheric pollution.

Higashimatsuyama Center(Higashimatsuyama city,
Saitama prefecture)

SG Realty began clean energy supply businesses in April 2013,
utilizing the assets owned by the Group (delivery bases anddistribution centers).
With the goal of contributing to stable supplies of power andreducing environmental impact, it is carrying out solar power
generation at 98 facilities nationwide and supplying clean
energy to power companies in each region. The total area of theinstalled solar panels is roughly 191,000 m2, and the total annual
power generated is roughly
23.2 megawatts. Comparedto power generation bymeans other than naturalenergy, the scope of
this power generation isequivalent to a reduction ofroughly 13,383 tons of CO₂
SG Realty Kashiwa, equipped with solar
emissions.
power generation equipment Environmentally-Conscious Logistics Facilities

SRC transport flowchart

Supplier Clean Energy Supply Businesses

In November 2015, SG Realty completed the construction of
SG Realty Higashimatsuyama, an environmentally-conscious
logistics facility in Higashimatsuyama City, Saitama Prefecture.
A leading-edge solar power generation system was installed in
the facility, with a power generation volume of roughly 2,000
kW, the largest scale in the Group. This facility acquired CASBEE
certification (rank A) and also achieved the highest rank of fivestars for a DBJ Green Building Certification* by the Development
Bank of Japan in April 2016. In this certification, the following
points were highly evaluated: (1) environmental consciousness
such as the installation of LED lighting and solar power
generation panels; (2) improved transportation efficiency witha structure allowing the delivery center and warehouse area tobe connected; and (3) arrangement of environments making iteasier for employees to work in, such as refreshment corners set
up for tenant employees.
*System for selection and certification of real estate properties having consideration
for the environment and society (Green Buildings), implemented by the Development
Bank of Japan (DBJ).

SG Realty Higashimatsuyama Converting to LED Lighting
Sagawa Express is proceeding with the conversion of mercury
lamps, which are often used in logistics facilities and have highpower consumption, to LED lighting, as well as the introductionof LED lights equipped with sensors, which are highly effective inenergy conservation. In fiscal 2015, LED lighting was introduced
at 21 locations, including large-scale logistics facilities with highpower consumption. If compared to a situation without the
introduction of LED lighting, this is equivalent to a reduction ofroughly 1,240 tons of CO2 emissions.
SG HOLDINGS GROUP CSR Report 201627

Reducing environmental impacts in cooperation with communities Facility Logistics Initiatives
The execution of the Act on the Measures by Large-Scale RetailStores for Preservation of Living Environment in 2000 has led toa need for facility management that takes regional communities
into consideration. Based on these conditions, Sagawa Express
has implemented full-scale facility logistics initiatives. With ourpast results in large-scale commercial complexes such as Tokyo
Skytree Town® and Tokyo Midtown acting as models, Sagawa
Express is currently developing a service for constructing facility
logistics systems.
Facility logistics is a system that allows efficient central
management concerning moving “people, things, andinformation” in and out of large scale commercial complexes.
It can relieve traffic congestion within and around the facilities,
and it can contribute to the reductions in CO₂ emissions bylessening the number of vehicles involved in the deliveries. The
Group has been contracted for 88 such facility logistics projects.
It has been receiving positive comments, and has received
a certification from the Tokyo District Distribution Efficiency
Certification System. Also, it was awarded the Outstanding
Green Logistic Partnership Business.

Delivery at Tokyo Solamachi®
in the Tokyo Skytree®

 Expansion of Carbon-Neutral* Certified
Businesses
In March 2014, Sagawa Express became the first company inthe logistics industry to receive the Ministry of the Environment’s
carbon-neutral certification. As of March 2015, this certification has
been obtained by six locations: the Tokyo Station Yaesu Exit SC, theKyoto Shijo Takakura SC, the Hakata Ekimae 1-chome SC, the Tokyo
Service Center, Gion Sagawa Express, and the Kyoto (Fuyacho)
Sales Office. At these locations, while also making efforts to reduce
CO₂ emissions, the CO₂ emissions from fuel use for transportation
between warehouses from Sales Offices and from electricity use
required for office administration are calculated, and their total
amounts are converted to carbon-neutral form using offset credits(J-VER).
Furthermore, SG Moving was selected for the Ministry of the Environment’s
Carbon-Neutral Certification Model
Project by the Ministry of the Environment in December 2013, and took
steps toward acquiring certification.
In September 2015, this initiative was
Carbon-neutral certification

28

SG HOLDINGS GROUP CSR Report 2016

Environment

approved as fulfilling the prescribed certification standards of the
Carbon Offset System Registration and Certification Committee,
becoming the first in the moving industry to acquire certification.
To acquire this certification, the Tokyo Sales Office and Head
Office, whose main delivery area is the central Tokyo area, carriedout reduction measures such as introducing natural gas powered
trucks and promoting environmentally-friendly driving, with theremaining emissions being offset by J-VER credits for forest sinks
created by Sagawa Forestry of the SG Holdings Group.
*Carbon-neutral: An extended form of carbon offsetting. It is an initiative where all
greenhouse gases emitted by businesses such as through their business activities
are offset by reducing emissions or by amounts of absorption in other areas.

Improvement in vehicle fuelefficiency due to instruction
on driving skill and othermatters Environment Related Awards
In fiscal 2015, the initiatives taken by Sagawa Express toward
environmental preservation and environmental education werehighly evaluated, and we received the three awards consisting of:
the “Fiscal 2015 Kinki District Transport Bureau Director’s Award
for a Transportation-Related Business Operator for Outstanding
Environmental Preservation” (Sponsor: Kinki District Transport
Bureau of the Ministry of Land, Infrastructure, Transport and Tourism);
the “Fiscal 2015 Review Committee’s Honorable Mention Award fora Corporation Promoting Youth Experience Activities” (Sponsor:
Ministry of Education, Culture, Sports, Science, and Technology),
and the “2015 Award of Excellence for a Corporation Cultivating
Environmental Leaders” (Sponsors: Ministry of the Environment,
Environmental Consortium for Leadership Development).

Fiscal 2015 Kinki District Transport Bureau
Director’s Award for a TransportationRelated Business Operator for Outstanding
Environmental Preservation

Award certificate for 2015 Award of
Excellence for a Corporation Cultivating
Environmental Leaders

Fiscal 2015 Review Committee’s
Honorable Mention Award fora Corporation Promoting YouthExperience Activities

Promoting Business Activities with the Goal of Environment-FriendlinessContributing to a recycling-oriented society Enhancement of Reverse Solutions
The SG Holdings Group is contributing to the construction ofa recycling-oriented society by providing a variety of “reverse
solutions” by utilizing reverse logistics.

Environment

A full range of services can be contracted in the case ofvoluntary recalls, which include quick pickup and repairof applicable items, delivery of repaired items, call center
operation, and information management.

 Adoption of Eco-friendly Uniforms

Home Pickup Services
for Used Small Home Appliances
At the request of ReNet Japan Inc., which has received
approval from the Ministry of Economy, Trade and Industry
and the Ministry of the Environment, Sagawa Express began
undertaking small home appliance pickup services in all areas
nationwide from March 2015, as an initiative based on the
Home Appliance Recycling Act.

Home Appliance Repair Service
At the Home Appliance Repair Center in the Sagawa Tokyo
Logistics Center, Sagawa Express offers a one-stop solution
from picking up devices and performing the actual repair onthem, to delivery after repairs
are complete. Items can be
repaired as long as they arehome appliances sold within
Japan, with a dramaticallyshortened lead time frompickup to delivery after
repairs.
The Home Appliance Repair Center
within the Sagawa Tokyo Logistics
CenterThe SG Holdings Group is currently promoting green
purchasing, and is actively purchasing products that contributeto reducing our environmental impact. As one component ofthese efforts, EcoMark-certified reused polyester products madefrom recycled plastic bottles have been adopted for Sagawa
Express uniforms. During fiscal 2015, approximately 94,300 ecofriendly uniforms were manufactured (converted into 500 mL
plastic bottles, this is equivalent to roughly 393,000 bottles).
Additionally, used uniforms that cannot be easily reused arecollected at the uniform management center, and recycled
as blast furnace reductants for ironworks. EcoMark-certified
products are also used for the cotton gloves worn by Sales
Drivers, with roughly 474,600 pairs ofthese gloves used in fiscal 2015.

Eco-friendly uniform made fromrecycled materials

Preservation and environmental awareness of forests and biodiversity Environment Forest Preservation Activities
The SG Holdings Group owns a total of approximately 735
hectares (equivalent to the area of approximately 160 Tokyo
Domes) of forest in Shikoku's Kochi and Tokushima Prefectures, aswell as in Hachioji City (Takao), Tokyo. Preserving these forests allows
us to use them as a source for CO₂ absorption, as well as places forenvironmental communication and education.
The Sagawa Forest (Kochi Prefecture) project has been approved
as a source of greenhouse gas absorption by the Ministry of theEnvironment J-VER Certification Committee. Our Group is the firstin the logistics industry to have received offset credits (5,612t-CO₂).
At the Takao 100-Year Forest (in Tokyo), activities for thecoexistence of people and nature, to restore and preserve
undeveloped woodlands that can be sustained for 100 years, began
in 2007. The restoration of
undeveloped woodlands infields rich with the splendor
of nature, valuable for
mitigating global warming
and where people andnature can exist in harmony,
carried out by the cooperative Forest preservation activities

efforts of numerous parties including citizens, universities andother educational institutions, academic experts, and NPOs, aresymbolized by the phrase “100 years”, with the project proceedingon an unhurried, natural time scale.

 Continually Conducting Eco Actions
Year-round environmental awareness activities known as
Eco Actions were started from fiscal 2003 with participationby all employees, and every year these activities are carriedout throughout the entire Group with a focus on energy
conservation.
In fiscal 2015, Sagawa Express set the goal of reducing
energy consumption by 1% compared to the previous year,
and engaged in activities such as energy conservation in thesummer and winter, and theadoption of EnvironmentallyFriendly Driving.
Measures focusing onelectricity conservation andcleanup were also taken inbusiness offices of individual
Scene at Cleanup Day
Group companies.
SG HOLDINGS GROUP CSR Report 201629

Environmental Awareness for the Next Generation Nature program Eco-Art Contest

At the Takao 100-Year Forest (in Tokyo), nature experiencelearning activities are held on an ongoing basis for children who will
represent the next generation to learn about connections between
nature and people through undeveloped woodlands. During fiscal
2015 a total of 300 students from elementary schools and highschools visited these forests, explored, and created wooden items
such as chopsticks.
Such ongoing environmental education activities conducted by
Sagawa Express have been highly evaluated, and received a Review
Committee’s Honorable Mention Award for the Fiscal 2015 Award
for a Corporation Promoting Youth Experience Activities (Sponsor:
Ministry of Education, Culture, Sports, Science and Technology).
Also, in March 2016 the Takao 100-Year Forest was recognized by
Tokyo’s Hachioji City as a “Place for Experience Opportunities” basedon the Act on Enhancing Motivation on Environmental Conservation
and Promoting of Environmental Education. This is the first example
where initiatives such as environmental preservation activities andnature experience learning activities were recognized in Tokyo.
On the other hand, we have been conducting activities including
rice cultivation experiences in rice fields in Moriyama City, Shiga
Prefecture, since 2007 to help children realize the bounty of nature,
the importance of food, and learn about the vibrant ecosystemliving in rice fields. Approximately 300 of group employees, theirfamilies, and local citizens experience traditional methods of making
rice, such as planting, harvesting, and drying the rice on racks.
We are also involved in activities to support the Fish Nursery Paddy
Field Project promoted by Shiga Prefecture, where “nigorobuna”(round crucian carp), a type of fish indigenous to Lake Biwa, areraised in rice fields and then released.

SG Holdings and Sagawa Express held the National EcoArt Contest 2015 (with backing from the Ministry of theEnvironment). The goal of this contest is to contribute asa corporation to cultivating the next generation throughawareness education.
Held for the second time, the theme of the contest was“Preserving our Natural Environment for the Future”, and it
was an opportunity for children to think about environmental
preservation by creating works of art, and provided them withan enjoyable experience while also raising their environmental
awareness.
Out of 10,311 total entries, 52 pieces received awards. The two
entries that received the Ministry of the Environment Minister’sAward, given to the most outstanding pieces, were adopted
as wrap designs on Sagawa Express trucks. 100 trucks are in
operation from March 2016 in major cities across the country.

Scene at Takao nature experiencelearning class

Piece awarded the Ministry of theEnvironment Minister’s Award
Upper grade division: “Fireflies”

Piece awarded the Ministry of theEnvironment Minister’s Award
Lower grade division: “The Earth”

Rice cultivation experience activity

Comment from an expert

Masafumi Nojiri
Chief Examiner, Climate Change Policy Division,
Global Environmental Bureau,
Ministry of the Environment

The SG Holdings Group is implementing effective measures at
Sagawa Express after gaining an understanding of CO₂ emissions
not only for the company itself but over its entire supply chain,such as introducing environment-friendly vehicles across the entire
Group, promoting modal shifts, and improving the efficiency oflogistics. Regarding carbon-neutral initiatives, in continuationfrom the achievement of Sagawa Express becoming the first in

30

Environment

SG HOLDINGS GROUP CSR Report 2016

Departing ceremony for trucks with wrap design

the logistics industry to obtain certification, last year SG Moving
became the first in the moving industry to obtain this certification.
Last year, the Group also received an Award of Excellence for a
Corporation Cultivating Environmental Leaders, presented by the
Ministry of the Environment to recognize corporations carryingout initiatives for the cultivation of outstanding environmentallyconscious personnel among their own employees.
Based on the adoption of the Paris Agreement, a new internationalframework for reducing greenhouse gases in December of last year,
a global warming countermeasure plan received Cabinet approvalin May of this year to mark a new beginning where initiatives in thetransportation field, which accounts for roughly 17% of Japan’s CO₂
emissions, will be an upcoming key point for the government. We
are greatly looking forward to the Sagawa Group continuing to playa prominent role in driving the transportation field.

Contributing to the Development of Local Communities
Express packages handled
per year

about

1,200
millionAwareness of Social Issues
Issues such as responding to the decreasing birthrate and aging population, andencouraging the revitalization of local areas, are becoming urgent issues for regional
communities. To achieve the sustainable development of communities, our group believes
that it will be necessary to face these issues as a unified society together.

SG Holdings Group’s Management
As individual lifestyles continue to become more diverse, the demands placed on logistics
by local communities are also changing. The SG Holdings Group believes it is our responsibility
as a corporation involved in business in many regions both domestically and overseas, to strive
for stronger harmony with local communities by proposing and building logistics systems
aligned with the differing issues and needs for each region. Our activity themes for contributing
to the development of local communities include “Contributing to the development of local
communities”, “Interacting with regions through sports activities”, and “Supporting academics,
culture, and next-generation education”. We are taking steps to support safe and secure lifestyles
in collaboration with local governments and other corporations, offering services to support our
aging society, and engaging in safety education activities for children beginning with traffic safetyclasses. We also have concluded new comprehensive agreements for the regional revitalization of
Kyoto Prefecture and Yamanashi Prefecture. From here on, we will further
enhance the potential of logistics as a component of regional infrastructure,and contribute to the development of a sustainable society by responding
to the diversifying needs of local communities.
Yasuji Ioka

Executive Officer and Business Promotion
Department General Manager, SG Holdings Co., Ltd.

Goals and Results of Material CSR Issues
Activity Topic

Mid-Term Goal

Results in Fiscal 2015

Action Plans for Fiscal 2016

◦To revitalize local
communities throughlogistics services◦Concluded Comprehensive Partnership Agreements on
Revitalization, with Kyoto Prefecture and Yamanashi Prefecture

Regional◦To promote the conclusion of Comprehensive
Partnership Agreements on Regional Revitalization◦To contribute in local
communities by holding traffic
safety classes. Participation by
roughly 100,000 people every year.

◦Continued the implementation of traffic safety classes (731 traffic safetyclasses, 117,330 participants)◦To continue the implementation of traffic safetyclassesInteracting withlocal communities
through sports
activities
p.33→◦To support next-generation
education through sports◦Continued the implementation of sports classes primarily aimed atelementary and middle school students (6 classes, roughly 800 participants)◦To continue the implementation of sports classes
primarily aimed at elementary and middle school
students

Supporting
academics,
culture, andnext-generation
education
p.44→◦To build logistics humanresources cultivation
businesses in ASEAN
countries◦Implemented practical lecture classes for 125 students specializing in logistics
at Ho Chi Minh City University of Transport◦To continue logistics human resources cultivationin Vietnam, and to expand to other ASEAN countries
where our businesses are deployed

Supporting thefoundations oflocal communities→ pp.31-33

Supporting the foundations of local communities Concluding Comprehensive Partnership Agreements
on Regional Revitalization with Local Governments
The revitalization of local regions has become a prominent issue inrecent years, and many local governments are engaging in active initiatives to revive the attraction and charm that cities can offer. The SG
Holdings Group is applying its full Group power to provide expansive
logistics services and is promoting the conclusion of comprehensive
agreements with local governments.
In March 2016, Sagawa Express concluded such agreements with
Kyoto Prefecture and Yamanashi Prefecture. By promoting large luggage transportation services and “Sightseeing Without Baggage” networks to tourists visiting Japan, we are contributing to activities by local
governments to spread tourism, and building systems to cooperate

Participating in the Community and Supporting Community Developmentwith the distribution and sales promotion of specialty items. We arealso supporting the goal of building secure cities that are easy to live in,under coordination and cooperation with local governments, with multifaceted methods regarding the cultivation of children and youths, support for the elderly and disabled, and preservation of the environment.
Sagawa Express is also involved in concluding cooperative disaster relief agreements with thenational government, as
well as with local governments, universities,
and other parties acrossthe country.
Scene at ceremony forconclusion of agreement at
Kyoto Prefectural Office

SG HOLDINGS GROUP CSR Report 201631 SG Lawson’s major efforts
In 2015, the SG Holdings Group concluded a business
partnership contract with Lawson, Inc. and established SG
Lawson, Inc., a joint venture carrying out delivery services of
Sagawa Express cargo and Lawson products to customers
living within a 500-meter radius of Lawson stores. The use ofhand carts or bicycles instead of automobiles for delivery can
aid in reducing environmental impact, and we are intending tocontribute in other ways by proposing new work methods tocreate more opportunities for active participation by womenand to resolve the issues of our aging society. This service wasstarted at stores in an area centered on Tokyo’s Setagaya Ward,and expanded to include 16 stores (as of June 2016) in the spanof one year.
Sagawa Express also began Convenience Store Pickup
Services at Lawson stores nationwide (excluding Lawson Store
100 locations) where products purchased by consumers frommail-order and online business operations are available for 24hour pickup. With these services, we are aiming to improve
our delivery quality while also increasing convenience for ourcustomers.

SG Lawson, carrying out
deliveries with hand carts andbicycles Safety Awareness Initiatives
As a company that uses local public roads to do business,
contributing to a safe and secure transportation society is ourhighest priority.
Sagawa Express holds Sagawa Express Traffic Safety Classes
taught by Sagawa employees in every region, in an attempt toprotect our children from tragic traffic accidents. Course content
includes how to properly cross the street and the meanings ofroad signs and traffic signals. Subjects such as truck blind spots
and examples that are likely to lead to accidents are explainedwith impact by using actual trucks as examples.
As an effort to keep children safe throughout the entire
community, local police and parents are asked to participate
as well, creating an environment where everyone involved
can learn. During fiscal 2015, 731 classes were held across thecountry, with 117,330 people participating.

Traffic safety class32

SG HOLDINGS GROUP CSR Report 2016 Providing Services to Answer the Needs ofSociety
SG Moving is deploying moving services for the elderly
offering support by staff members who possess Service
Assistant certifications, so that even the elderly and people withdisabilities can move with a sense of security.
We are also deploying Living Space Organization Services inaccordance with the needs of society, such as personal effects
organization (while alive) services and home staging services
to present living spaces so that they have greater asset value
during real estate sales.
As of March 2016, there are a total of 71 of our staff memberswith qualifications such as Service Assistants, Personal Effects
Organizers, Home Stagers, and Sorting and Storage Advisors(Level 1 and Level 2 certifications) across the country. In the
future we intend to increase their numbers as necessary andexpand our service deployment areas.

 Learning about “Logistics Mechanisms”
through Experience
In September 2015, Sagawa Express worked in cooperation
with the Future Innovation Forum (FIF) to hold the Logistics
Frontline Work Experience Event, an event for children planned
and managed by the FIF at our Tokyo Head Office. Since its
start in 2007, this event has served as an opportunity for career
education where children could learn and think about society
and work through a work experience activity, and has been
participated in by over 140 children.
On the day of the event, 20 5th and 6th-grade elementary
school students put on Sagawa Express uniforms, rode alongwith drivers in trucks, learned about the mechanisms of thehome delivery business by observing equipment such as
automatic sorting machines at the Sagawa Tokyo Logistics
Center facility, and engaged in practical package delivery
training exercises.
During a question-and-answer session held by Chairperson
Kuriwada, many questions were received from the participating
children, and it was an excellent opportunity for them to thinkin depth about leadership and work.

The Logistics Frontline Work Experience Event

Contributing to the Development of Local Communities Holding Workplace Experience Activities in
Coordination with Special Support Education
Schools
In coordination with nearby special support education schools,
Sagawa Global Logistics is holding workplace experience
activities for first-year students with the goal of experiencing
logistics work, and practical learning activities for second-year

students and later with the goal of future employment. Every
year, a number of students enter our company through these
activities (five new employees entered in April 2016). Since
elder students who have graduated from these special support
education schools look after younger students from the sameschool, a comfortable work environment is created whichallows their guardians to feel a sense of security as well.

Interacting with local communities through sports activities

Participating in the Community and Supporting Community Development Initiatives Supporting Sports
The SG Holdings Group is engaged in initiatives to support
the development of the next generation, through the activities
of its track-and-field team and softball team.
Our softball team held six classes in fiscal 2015 and taught
roughly 800 students, including elementary school students
and middle school students, the joy of softball.
Also, to encourage sporting events for physical and mental
health, our Group is helping to create an environment in whichathletes who work for us and want to continue playing sports
can do so. Supporting employee athletes in the track-and-fieldteam and softball team encourages participation in sports. At
the same time, when people cheer on their top-level athlete
coworkers it contributes to a sense of company loyalty.
We will continue to design and implement new plans sothat our track-and-field team can train to win the New Year
Ekiden, and our softball team can reach the top of the Japanese
Women's League Division 1.

Softball team

Scene at the softball teamclass

Track-and-field teamFoundation Activities to Support Academics, Culture, and Next-Generation Education ( p.44)

Comment from an expert
Kaori Kuroda

Executive director
CSO Network Japan

In addition to contributing to the resolution of regional issues
by measures such as Comprehensive Partnership Agreements on
Regional Revitalization and SG Lawson “Machi no Kurashi Support”

which are being promoted together with other sectors, the SG
Holdings Group is receiving attention as a coordination modelutilizing logistics services, shown by its deployment of businesses
responding to new local community needs. However, we would
like Sagawa to also report not only on the points of improving
safety, security, and convenience such as by its support for theelderly and services to organize vacant residences, but on the
points of taking full consideration for connections between people
and for their important memories.

SG HOLDINGS GROUP CSR Report 201633

Building an Organization with Individuality and Diversity
Number of employees

about

80,000

Awareness of Social Issues
With social issues such as the aging society and the decrease in working population
caused by the declining birth rate becoming more and more apparent, it is being requiredfor companies to respond to those issues by re-evaluating personnel strategies andconstructing new employment and labor systems, such as by promoting diversity and worklife balance. While our demographics are undergoing great changes, we, as a corporategroup with 80,000 employees, recognize that securing and utilizing a diverse range ofhuman resources is a critical issue.

SG Holdings Group’s Management
Under the concept that the sustainable growth of a corporation depends on the supportof its people, the SG Holdings Group places people at the center of its business, formulating apersonnel vision and human resources system shared throughout our Group, and is enhancing
the creation of such a foundation in terms of both systems and culture. The shortage of laborassociated with the progress of the aging society and declining birth rate, and the relatedacquisition of human resources, are significant issues for our Group, and we are actively
promoting reforms in human resources management. In fiscal 2015, while taking steps,
such as expanding job categories for female employees, supporting diverse work styles, andemploying global human resources at each Group company, we established a new Human
Resources Cultivation Committee and made plans to encourage humanresources rotation within the Group, which have shown steady results.
From here on, we will place high emphasis on diversity management,
and are putting a PDCA cycle into practice to cover the process fromrecruitment to cultivation, assignment, and evaluation.
Hiroyuki Urushizaki

Director, SG Holdings Co., Ltd.

Goals and Results of Material CSR Issues
Activity Topic
Respect for humanrightsp.35→

Promotion ofdiversity→ p.35•36

Promotinghuman resources
cultivation
p.36→

Mid-Term Goal

34

Action Plans for Fiscal 2016

◦To create systems for fostering
human rights awareness◦To continue the implementation of Code of Ethics and◦Implemented Code of Ethics and Conduct training (April) and harassment
Conduct training and harassment prevention training.
prevention training (May) for all employees of domestic Group companies
To implement studies on actual situations at overseas
subsidiaries.

◦To establish a system wherefemale employees are
responsible for 30% of Groupbusiness revenue◦Held the WakuWaku Awards, a contest for competition in the expansion ofwork scope for and increases in contributions by females (131 entries), held ◦To continue the staging of the WakuWaku Awards andthe Diversity Forum by WakuWaku Women’s Project with the goal of career
Diversity Forum
progression for women (number of participants: roughly 400)

◦To enhance female
management positions, andcultivation of female senior
management candidates◦Held Career Support Training for the creation of female management positions ◦To continue the implementation of Women’s Career(number of participants: roughly 75), held training for current female Group
Support Training (number of training sessions held: 3,
Managers (GMs) and personnel who have newly acquired qualifications
number of participants: roughly 60 scheduled) and training(current GMs: 75, newly appointed: 15)
for personnel who have newly acquired GM qualifications◦To create workplaceenvironments where people
with disabilities can exercise
their expertise◦Actively collected information from external sources for promoting◦To continue the promotion of encouraging
employment of people with disabilities, and enhanced the distribution
employment of people with disabilities andof this information to related parties (employment rate: 2.06% *as of June
entrenchment of such policies
2016)◦To secure the workforce throughcontinued employment, and thesuccession of experience andknow-how◦Investigated re-employment promotion measures at Group companies,
to expand opportunities for continued work even after retirement (rate of ◦To expand opportunities for people to be able tocontinued employment of personnel after reaching retirement age: 81.0%,
continue work even after retirement
128 people)◦To systematize and enhance
initiatives for human resources
cultivation◦Implemented initiatives for global human resources cultivation such as ◦To continue implementing hires within the Groupestablishing a Human Resources Cultivation Committee, encouraging humanand establishing development systems, to expand theresources rotation within the Group, holding Group selective education, andtargets of selective education, and to enhance priorenhancing overseas training
learning for overseas training◦To introduce outstandingachievements and excellent
examples, and to share their expertise◦Shared the activities of employees embodying our personnel vision and aiming ◦To continue implementing activities to instill thefor its understanding and installment
personnel vision in staff members◦To arrange a working
environment accommodating
both work and family◦Gained a case-by-case understanding of employee needs and opinions, andimplemented investigations to revise the systems of the Group overall◦To promote life support
functions

Promotion of worklife balance
p.37→

Results in Fiscal 2015

◦To improve the system to be easier to use such as
by expanding short-term work systems, to plan forcontinued employment◦Distributed information and provided education on improving lifestyle ◦To further enrich the benefits package system andenjoyment and health awareness with the Group benefits package services
to encourage its use by widely communicating“Eraberu Club” and “Familink”
information◦Started investigations into the establishment of “Group benefit associations”
with the goal of more extensive and secure benefits package systems◦To execute preparations for the establishment of Groupbenefit associations, and support the construction of
infrastructure for employee lifestyles◦To promote mental health◦Prepared for the start of stress checks in June 2016, such as by selecting◦To further improve workplace environments applying
consignment businesses standardized across the Group related to measures
the implementation of stress checks and organizational
making stress checks mandatory, determining the policies for theirdiagnosis
implementation, and organizing related regulations◦To familiarize healthawareness as an everyday
practice for employees◦While starting the “population approach” that has become a model project◦To advance initiatives for health administration
for the Ministry of Health, Labour and Welfare’s Data Health Plan focusing onsuch as further improvement of health awareness,
obesity prevention and anti-smoking measures, the 100 Healthy Days Project
obesity prevention, and measures against worseningand Lifestyle Disease Prevention Campaigns were implemented on an ongoingconditions
basis including at Group companies◦To acquire an understandingof and trust in the company
by family members◦Held Children’s Observation Day workplace visits at Group companies (SGMoving, SG Motors)

SG HOLDINGS GROUP CSR Report 2016

◦To continue and firmly establish Children’s Observation
Days and Family Days at Group companies as a form of
distributing information to employees and their families

Building an Organization with Individuality and Diversity

Basic Philosophy SG Holdings Group Personnel Vision
The SG Holdings Group established our personnel visionin 2012, so that all employees of the SG Holdings Group can
act independently and make the best use of their abilities andindividuality. Our personnel vision clarifies our organizational
culture and the various ways of working, necessary to cultivate

human resources, and communicates the importance of each
employee acting independently. Furthermore, since 2013, GMs(Group Managers*) were given the task of promoting improved
communication activities, and are engaged in activities tocommunicate these new values to all employees.
*Group Managers: Division manager-level employees.

Respect for human rights Conducting Ethical Code of Conduct Training
In its code of conduct, the SG Holdings Group gives thehighest respect to various international norms including humanrights, as well as culture and customs, and clearly indicates these
considerations to its stakeholders.
In fiscal 2015, we provided training on our Code of Ethics
and Conduct to all employees of domestic Group companies,
with the goal of creating systems for fostering human rights
awareness. Our goal is to raise the ethical standards of theGroup by enhancing the humanity (character building) of ouremployees, and developing a wide variety of knowledge, skills,
and ethical viewpoints (moral framework). From fiscal 2016 andbeyond, we will take extensive steps to communicate thesepoints, including to overseas Group companies.

Human Rights

Labor Practices Continuing Implementation of Employee
Attitude Surveys
While promoting stakeholder management, we conduct
employee attitude surveys with the goal of understanding
Group employee attitudes, identifying issues, and making
improvements. These were held for roughly 50,000 Group
employees in fiscal 2015, with results showing that the levelof employee satisfaction was higher overall than in fiscal 2014.
Based on these results, each business company will make plans
and carry out initiatives for measures to improve items with low
satisfaction.
We will continue to improve the satisfaction of ouremployees in the future, and realize the creation of a positive
growth cycle connected with increasing customer satisfaction
by incorporating the opinions of our employees who also playroles as stakeholders into management.

Promotion of diversity

Human Rights

Labor Practices Promoting the Activities of Female Employees
To promote the activities of female employees within
the SG Holdings Group, we actively continue to expand job
categories for female employees and recruit more women into
management roles. We are continuing to implement systemrelated arrangements and culture-related reforms, as well as
supporting career progression for female employees.

Activities of the Wakuwaku Women’s Project
In fiscal 2015, in addition to the 2nd WakuWaku Awards,
which recognize offices that actively take steps to createbusiness opportunities or make business improvements for
women, Women’s Career Support Training was held for female
employees who are candidates to assume management rolesin the next term, and the target job categories and number ofparticipants were expanded. The Diversity Forum by WakuWaku
Women’s Project was also held as a part of career progression
support for female employees. A total of 400 female employees
and managers participated, raising their awareness towardtaking the initiative for career development.

Scene of final selection at
WakuWaku Awards

Promoting the Activities of Female Drivers
Swap-body vehicles, developed in 2015 by Sagawa Express, areable to connect and disconnect their vehicle bodies and cargo beds
from each other, making it possible
for loading and driving to be carriedout by separate staff members. With
this, it is anticipated that even large
vehicles that were formerly primarily
operated by male staff members will
be operated by more female drivers
in the future, which will contribute
greatly to the expansion of job
categories for female employees.
Swap-body vehicle

SG HOLDINGS GROUP CSR Report 2016

35

Delivery Mate, Carried Out by Homemakers
Sagawa Express’ Delivery Mate system has met with afavorable reception across a wide range of age groups since
it was launched in 2014. A new collection and delivery system
tailored for homemakers was constructed around delivery sites,
creating a convenient work environment for homemakers
already busy with housework and childcare. We employedaround 3,000 Delivery Mates in fiscal 2015 and are planning to
expand that number to 5,000 by fiscal 2016.

 Employing People with Disabilities
The SG Holdings Group continues to promote the arrangementof environments allowing both those with disabilities and those
without, to exercise their individuality and expertise and to workin a lively manner (employment rate of people with disabilities:
2.06% as of June 2016). Also, in order to enhance the acquisitionof accurate knowledge and understanding that is a prerequisite
to encouraging the employment of people with disabilities,
we are actively participating in external study sessions anddistributing information to related internal parties.

 Global Human Resources Employment andPromotion of Activities
Delivery Mate, a systemthat has expanded
work opportunities forhomemakers.

Expansion of “LogiShift”
Sagawa Global Logistics uses “LogiShift”, a work schedulingsystem with which working days and times can be freely
selected, allowing employees to effectively use their available
time and expanding the opportunities for employment ofhomemakers in local regions. As of March 2016, this has beenin operation at 28 offices, with a total number of over 3,000
people registered. Currently, recruitment is carried out not only
for homemakers (men or women) but also university students
and vocational school
students, with plansto further expand
the segments it isavailable to.

Scene of work

Currently, there are roughly 6,000 foreign employees working
in a variety of fields in the SG Holdings Group. At some businesscompanies, there are mechanisms in place where training is provided
in Japan to outstanding employees, who then utilize their experience
after returning to their home countries and continuing to work at
local subsidiaries. From here on, we will continue to entrench foreign
employees with high ability and motivation in our Group, and promote
the creation of opportunities and infrastructure which allow them tobe active.
Sagawa Global Logistics is partnered with Japanese language schools,
cooperating mutually by creating opportunities for employment ofinternational students by posting recruitment information within
schools. Also, as one part of logistics human resources cultivation
businesses, we are developing human resources who will be responsible
for our future by accepting requests from overseas universities to holdlecture classes at those locations for students specializing in logistics.
SG Motors has employed foreign personnel from 2012, with 28
members from seven countries currently enrolled. We will continue
to strengthen our understanding and expand employment of foreign
personnel by arranging work environments where foreign personnel
can be even livelier and active, and providing opportunities for
employees across the country to interact with each other.

Promoting human resources cultivation Enrichment of Training Systems
The SG Holdings Group has set the systemization of humanresources cultivation and the enhancement of initiatives for global
human resources cultivation as mid-term goals. In fiscal 2015,
it carried out seminars for current GMs (Group Managers), with
4 seminars held for 75 management personnel members who
support the core of the Group’s businesses.
It also carried out selective training for 25 members in Section
Chief positions, with the goal of systematically developing future
management personnel at an early stage. The training not only
covered knowledge and skills required for management, but also
incorporated content emphasizing the ability to think of new ideas,
to foster a management-oriented mindset as early as possible.
Furthermore, as part of the overseas training that has been
implemented continually for 36 years, a “Challenge Course” wasnewly established in fiscal 2015 under the concept of experiencing

Human Rights

the different cultures of South Asia and facilitating one’s own
growth as a global personnel member, with visits made to majorbases and customers in India and Sri Lanka.
Meanwhile, training for staff at overseas subsidiaries also
continued to be held. In fiscal 2015, 17 managers from overseas
local subsidiaries in various countries assembled in Japan
to visit and observe major business companies and deepen
their understanding of the Group. We will continue to create
opportunities like these for human resources cultivation andinformation exchange in the future.

Scene at overseas training

36

SG HOLDINGS GROUP CSR Report 2016

Labor Practices

Training for overseas staff

Building an Organization with Individuality and Diversity

Promotion of work-life balance

Human Rights

Labor Practices Diverse Work Systems Health Management for Employees

The SG Holdings Group is aiming to support work-life balanceand diversify working styles so that each employee can engage
in work while demonstrating the highest level of ability.
From fiscal 2016, we will arrange environments making
it easier for employees who had obtained child care leave toreturn to the workplace, such as extending the period of time
for shortened working hours up until the end of a child’s 4th
grade in elementary school. Also, in order to improve job
and employee satisfaction, we are taking steps to promote
life support functions through the enhancement of benefit
programs, with the start of operation of Group benefit
associations scheduled from fiscal 2017.
SG Systems is planning to introduce work-at-home systems
and develop and provide services for ICT* tools associated withthem. To advance these plans, we first set a temporary trial forthe one-month period of February 2016, and conducted tests
with the cooperation of the Group companies to verify the ICT
tools and clarify any system-related problems. Based on the
results, a new full-scale trial is being executed for approximately
half a year, with preparations for the official introduction of the
final “work-at-home system” underway.

A Health Management Project Promotion Meeting is held
once a year, to support the promotion of health for employees
by determining time periods, target levels, achievement levels,and practically applying the PDCA cycle to important initiatives.
These initiatives were selected as a model case in the Ministry of
Health, Labour and Welfare’s Data Health Plan for fiscal 2014. The
100 Healthy Days Project for voluntary improvement of health andstrengthening of mutual communication by setting individual
health goals and sharing information with work colleagues has also
been implemented. Furthermore, Anti-Smoking Programs are being
deployed as well. As additional initiatives for health maintenancewith cooperation between our company and our Health Insurance
Association, Lifestyle Disease Prevention Campaigns are carriedout. The measures include providing SG Healthy Balance Meals incafeterias, displaying calorie content, and providing food related
information. From November 2015, a vegetable recipe contest withcollaboration between our Health Insurance Association and Sagawa
Advance was held on the “Familink” benefits package website, toimprove the health awareness of employees and their families.

*ICT: Abbreviation for “Information and Communication Technology”.

 Mental Healthcare
The SG Holdings Group has carried out initiatives for mental
healthcare even before stress checks were made mandatory inDecember 2015, and to support the mental health of employees
and their families, we have established SG Holdings Group
Health Dial 24, which is operated by specialized institutions
and offers consultation services by Internet and toll-free
telephone. If desired, examinations and counseling by clinicalpsychologists can be received at no charge at counseling rooms
located across the country. From fiscal 2016, policies related
to the implementation of stress checks will be determined,
and related regulations will be organized so that standardized
checks can be performed across the entire company. We will
carry out organizational analysis based on their results, andstrive to provide an even better working environment.

 Children’s Observation Day
For family members of employees to obtain a higher
understanding of the company, and to raise the motivationof employees themselves, the SG Holdings Group started theChildren’s Observation Day program on an ongoing basis atbusiness companies from 2014. Allowing children to observe theirworking parents (employees) and their workplace and colleagues
in this program contributes to next-generation education by giving
them an opportunity to learn about society.
In fiscal 2015, this was held by SG Motors at its Tokyo locationand its Minami-Tokyo location, with 27 children participating. It wasalso held by SG Moving at its Head Office and Tokyo Sales Office,with 36 children and their guardians participating.

Situation on Children’s Observation Day Experience with packaging gifts andat SG Motors
delivering packages at SG Moving

Comment from an expert
Hiroshi Ishida

Executive Director
Caux Round Table - Japan

We would like to acknowledge the SG Holdings Group for its
initiatives showing great respect for human rights in fiscal 2015that aim toward becoming an organization with high diversity,
particularly its activities focusing on the expansion of job categories
for female employees (promotion of activity by female drivers), andthe improvement of ease of work in its Group companies (LogiShift).
In the future, we look forward to its efforts for due diligence
regarding human rights required by “Business and Human Rights”,
and the deployment of initiatives for diversity and inclusion toward
SG Holdings Group employees working overseas.

SG HOLDINGS GROUP CSR Report 201637

Constructing Supply Chain CSR
Awareness of Social Issues and our Group’s Management
Customer accounts

about

100

millionWith demands related to human rights and the environment increasingly being placedon companies worldwide, we believe that it is vital to carry out sustainable business activities
over our entire domestic and overseas supply chain.
To build sustainable cooperative relationships with business partners, the SG HoldingsGroup has established Business Partner CSR Guidelines that clearly indicate our conceptsof CSR and our corporate stance toward procurement and other subjects. We will promote
CSR activities throughout the supply chain and contribute to develop a sustainable society
together with our business partners.

Goals and Results of Material CSR Issues
Activity Topic

Mid-Term Goal

Results in Fiscal 2015

Action Plans for Fiscal 2016

Promotion of
CSR in the supply
chain
p.38
→

◦To create systems for strict
attention to CSR procurement◦To share Business Partner CSR Guidelines both inside and outside thecompany, and to announce them to major business partners of domestic
Group companies◦To continue promoting sharing of the Business Partner
CSR Guidelines

Cooperation withbusiness partners
p.38→◦To enhance cooperation withrespect to both safety and theenvironment◦Continued cooperative activities with respect to both safety and theenvironment◦Further promotion of cooperation with respect toboth safety and the environment

Promotion of CSR in the supply chain Establishment of the SG Holdings Group’s
Business Partner CSR Guidelines
In order to contribute to developing a sustainable society,
the SG Holdings Group believes that it is important to carry out
initiatives for CSR not only in our own Group but throughout
the supply chain. To aid business partners in understanding
our Group’s concepts of CSR and corporate stance toward
procurement and other subjects, and to gain their related
cooperation, the SG Holdings Group established the Business
Partner CSR Guidelines in 2014. In fiscal 2015, we promoted
sharing of these Guidelines both inside and outside thecompany, and announced them to major business partners ofdomestic Group companies. We will continue to build strong
partnerships in cooperation with business partners and promote
activities with consideration for social responsibilities such as
safety, security, human rights, labor, and the environment.

Fair Business Practices

SG Holdings Group Business Partner CSR Guidelines
1. Strict compliance with laws
We will strictly comply with domestic and foreign laws, and carry out fairand impartial business activities based on corporate ethics.
2. Maintenance and improvement of safety and security
We will consider safety and security to be our highest-priority issues. We
will make every effort to maintain and improve safety together with ourbusiness partners.
3. Consideration for human rights and work environments
We will respect basic human rights and ensure a safe and sanitary work
environment. We will also strictly comply with any applicable regional laws.
4. Fair trade transactions
We will carry out contact with our business partners with an attitudeof sincerity, and provide opportunities for free and fair competition.
We will strive for co-existence and mutual prosperity with our business
partners by building proper relationships of trust.
5. Consideration for the global environment
We will take measures to prevent global warming and air pollution, andpromote business activities with consideration for the global environment.
6. Preservation of information security
We will carry out strict management of confidential information andpersonal information related to our business activities, and take steps toprevent acts such as information leakage and manipulation.
7. Co-existence with regional communities
We will aid in the development of domestic and overseas regional
communities, and strive for co-existence with society together with ourbusiness partners.

Cooperation with business partners
 Initiatives from the Viewpoint of Safety
Sagawa Express carries out Highway Transportation Safety
Patrols and Highway Transport Terminal Inspections withcooperation from partner companies, in order to secure safety
during highway transportation.
We also are involved in initiatives to ensure safety carried out
through the supply chain, such as holding Safety Seminars for
managers of partner companies every year, and staging lectureson subjects including the basic and legal responsibilities oftransportation businesses, and how to avoid work-related
accidents.

38

SG HOLDINGS GROUP CSR Report 2016

Fair Business Practices Initiatives from the Viewpoint of theEnvironment
With the goal of achieving transportation that is safe andalso environment-friendly, Sagawa Express and the Japan
Freight Railway Company have jointly developed the Super Rail
Cargo special container train and are promoting transportation
using railways in place of trucks. We are also using EcoMarkcertified uniforms produced by Mizuno Corporation. In
addition, we are carrying out a wide range of initiatives for
reducing environmental impact, such as actively introducing
environmentally-friendly vehicles in cooperation with various
automobile manufacturers.

Building a Responsible Management Foundation
Awareness of Social Issues and our Group’s Management
Dialogue with
Stakeholders

12th occasion

We are deeply aware of our social responsibility as a corporation which uses public roads
to do business, and believe that it is essential for us to enhance the foundation of our CSR
promotion.
To carry out responsible business activities, the SG Holdings Group is involved in initiatives
to construct decision-making systems, strengthen its corporate governance and internal
controls. We are also moving forward with stakeholder management, in order to remain
relevant as a business group that society depends on, and to enable us to grow together
with society in a sustainable manner.

Goals and Results of Material CSR Issues
Activity Topic

Mid-Term Goal

Results in Fiscal 2015

Action Plans for Fiscal 2016

Building afoundation for
CSR promotion→ pp.39-41◦To create a CSR promotion foundation
based on global standards, and to acquire
trust from society by strengthening
stakeholder engagement◦Expanded the number of participating Group companies and held
regular CSR Committee meetings◦Held dialogues with stakeholders◦To construct systems involving CSR activity
promotion throughout the SG Holdings Group,and to implement education and awarenessactivities for domestic Group companies

Compliance andinternal control
p.41→◦To upgrade the compliance system◦Enacted regulations to prevent insider trading◦Carried out initiatives related to strengthening internal control(informational meetings, etc.)◦To further strengthen compliance and internal
control◦Carried out risk management based on the risk management flow
(identification, evaluation, trend analysis, verification)◦To improve the accuracy of risk analysis andevaluation, aiming for a more effective risk
management system according to Group
company operations and risk characteristics◦Collected and distributed information on overseas risks, managed
information on overseas travelers◦To strengthen global response capabilities forrisk management and crisis management◦Carried out initiatives related to strengthening information security(Group information security coordination meetings, training, e-learning,etc.)◦To further strengthen information security(management, incident response, training, etc.)

Risk managementp.42→◦To upgrade the risk management system

Information
Security→ p.42•43◦To upgrade the information security
systemCrisisManagementp.43→◦To upgrade the crisis management
system (1)To formulate Group BCP and coordinate
BCM◦To upgrade the crisis management
system (2)To upgrade the Group crisis management
system◦To construct BCP and BCM with Group
coordination from the BCP of each individualcompany, and to ensure strong Group
coordination◦Formulated a BCP for each Group company◦Implemented Group large-scale disaster response training and GroupBCM coordination meetings◦To strengthen the Group crisis management
system and plan to improve response capability
in the event of incidents◦Carried out responses to the occurrence of incidents (collection anddistribution of information)

Building a foundation for CSR promotion

Organization Governance Concepts for CSR
We believe that CSR for the SG Holdings Group consists oflooking toward the development of a sustainable society, andof each employee putting the SG Holdings Group corporate
philosophy of “Trust, Create, Challenge“ into practice withcooperation from stakeholders.

Sustainable Development

Corporate
Philosophy

Mid-Term
Management Plan

Material CSR Issues

Third Stage Plan

Create new value by utilizing
management resources and deepening
cooperation inside and outside of theGroup, while aiming to strengthen ourmanagement foundation and achieve
lasting growth
Declaration to Earn the Trustand Empathy of Society
The SG Holdings Group aims to be a company
that is beneficial to society, by creating added
value, through fair competition, whilst supporting
the development of economies and societies.

Management
VisionShareholders

Business
Partners

Corporate Charter ofBusiness Conduct

Practical implementationby each employee
Cooperation

Employees

Society

Customers

Cooperation

SG HOLDINGS GROUP CSR Report 201639 Corporate Governance

Overview of CSR Committee■ Members
・ Committee Chairperson:	SG Holdings Co., Ltd.
Eiichi Kuriwada, Chairperson and CEO・ Committee Members: 	SG Holdings Co., Ltd.
6 Directors and 1 Executive Officers■ Record of meetings held in fiscal 2015
・	Four meetings within the fiscal year (May 2015, September 2015,
November 2015, February 2016)■ Major discussion topics in fiscal 2015
・ Report of items pertaining to CSR management
・ Progress report of CSR-related activities

The SG Holdings Group strives to slim down our management
structure and practice speedy management, as well as work toenhance governance through separating management audit
functions and business affairs, and to clarify authority andresponsibility.
Since fiscal 2012, we have held a CSR committee meeting
every quarter to carefully consider the content of material CSR
activities to be carried out, create management systems, andpromote continuous improvement activities. In addition tobuilding systems to promote Group company CSR management
and various initiatives, we are holding informational meetingsand seminars related to CSR.

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

Election, Dismissal

Reports

SG Holdings GroupElection,
Dismissal

Election, Dismissal

SG Holdings Co., Ltd.

Cooperation

Financial Auditor

Legal Advisors

Board of Auditors

Board of Directors

Auditing, etc.
Supervision

Business Affairs

Assignment

Representative Director
Approval

Reports

Reports

Management and Administration
Enhancement Committee
Investment Review Committee

Cooperation

Internal Auditing Department
AuditsReports

Cooperation
AuditsManagement Strategies Meetings
Policy, Planning, Deliberation
Assignment, Approval, Supervision, etc.

Budget Committee

Risk Management Meetings
Administration Department
Directors' Meetings

department

CSR Committee

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

Group Companies Promotion of Stakeholder Management
We believe that CSR for our Group consists of looking
toward the development of a sustainable society, and of each
employee putting the SG Holdings Group corporate philosophy
of “Trust, Create, Challenge“ into practice with cooperation fromstakeholders.
Under this concept, we earnestly listen to the opinions fromexperts received through dialogues and the instructions of ourcustomers, then investigate and implement policies in response40

SG HOLDINGS GROUP CSR Report 2016

to widely apply the opinions of stakeholders to our businesses.
Dialogues in particular have been held on a continuing basis
since fiscal 2004, with their 12th session held in fiscal 2015. They
provide opportunities for opinion exchanges with stakeholders
from various standpoints regarding issues considered to beimportant by our Group and requests from society.

Building a Responsible Management Foundation

 Dialogue with Stakeholders
The fiscal 2015 dialogues with stakeholders were held inMarch 2016. The main subject of this session was “Aiming
for CSR based on social issues and changes in the businessenvironment”. Practical discussions were held with external
experts on various topics, including the ideal state of CSR overall
and issues that should be addressed from this point on. We
intend to rank the issues and requests identified through these
discussions by priority, and take steps to address them.

Scene at dialogue with stakeholders

Compliance and internal control

Organization GovernanceFair Business Practices

 Strengthening the Compliance System Cutting Relationships with Antisocial Forces

To deal with changing social and management environments,
and to build a corporate culture that performs business activities
with integrity, SG Holdings Group is working to improve themaintenance and management of our compliance system,
which abides by the SG Holdings Group Code of Ethics andConduct.
As one part of this, the SG Holdings Group Compliance
Hotline is being operated based on the internal notification
system, as a contact window for employees, their families,
and partner companies to report behavior in violation of laws,
company rules, or the Code of Ethics and Conduct.
Also, in consideration for increasing opportunities such astransitions of overseas listed companies to Group companiesor the creation of business alliances and capital alliances withlisted companies, efforts are being made to prevent insider
trading by enacting new insider trading prevention regulations
and implementing education by seminars.
We will continue to promote initiatives for legal complianceas pillars supporting the internal controls of the entire Group.

The basic policy of the SG Holdings Group is to cut any ties
with antisocial forces in order to take a firm stance against suchgroups that endanger the order or safety of civil society.
This policy is found in our basic internal control policy andstipulated in our Corporate Charter of Business Conduct
and Code of Ethics and Conduct, so that all employees canunderstand it thoroughly. As specific examples of related
activities, fact-finding surveys on business partners (payment
destinations) are conducted, and a Consultation Window for
Undue Requests has been established for early-stage resolutionof cases where employees receive inappropriate requests.
We will continue to develop the system, and thoroughly
prevent or block those who would interfere with our business
partners and others by measures such as sharing information on
antisocial forces and our responses to them.

■ Basic Internal Control Policy
SG Holdings Group make sure that our internal controls
function effectively, and evaluate them to make necessary
improvements. We also continuously review our policies
to keep up with changes in the management environment,
and strive to develop more effective internal controls, while
specifying the SG Holdings Basic Internal Control Policy as theguideline for our internal control.
To be specific, internal controls for the Group are managed
by the SG Holdings Internal Controls Promotion Office,with the Internal Controls Promotion Section of the Group’s
core business, Sagawa Express. Sagawa Express provides
explanations of internal control-related documents to theheads of each branch office and each sales office, while also
maintaining and evaluating internal controls for the Sagawa
Express headquarters and each branch office.

SG HOLDINGS GROUP CSR Report 2016

41

Risk management

Organization Governance Risk Management System Enhancement

based on the risk management flow. This unified risk
management is carried out across the entire Group toward risks
identified by each company, and includes analyzing their trends
and putting risks into visual form by creating risk maps.
In fiscal 2015, we strengthened our reporting system sothat initial responses can be performed quickly and reliably ifrisk events occur at Group companies. We have also started
collecting and distributing risk information at global bases,
and will proceed with further system arrangement andenhancement from here on.

The SG Holdings Group is proceeding with the enhancementof risk management systems to understand, evaluate, andmanage risks in the business operations of its Group companies.
At Risk Management Meetings, systems are arranged toinvestigate and report risks in Group companies. Also, BCPs
(Business Continuity Plans) are formulated and BCM (BusinessContinuity Management) systems are constructed so thatbusiness can be continued in the event of a large-scale disaster.
Our Group companies thoroughly carry out risk management

Risk Management System
SGH Group RM Meeting

Director in Charge of Management

Division with Jurisdiction over SGH Important Risks

RM Manager

Group RM Supervision Manager
Division with Jurisdiction over General Affairs

BCP•RM

Head of Division with Jurisdiction over General Affairs

RM Supervision Manager(Executive Office)

RM Manager
RM Manager

RM Supervision Manager

RM Supervision Manager

RM Supervision Manager

Division with Jurisdiction over Important Risks

Division with Jurisdiction over Important Risks

Division with Jurisdiction over Important Risks

The SG Holdings Group considers the protection of ourGroup’s information assets, including information assets
received from customers, to be our social responsibility. We
have therefore formulated Basic Information Security Policies
and are involved in initiatives to maintain and manage
information security.
We are also taking further steps to strengthen information
security by enhancing measures for information security
resources and arranging information security regulations andprocedures.

 Initiatives Related to Information Security
In fiscal 2015, we started holding Group Information Security
Coordination Meetings for information sharing and opinion
exchanges among information security representatives, andalso held seminars by external lecturers for managers andrepresentatives. We also implemented a variety of information
security training measures, including e-learning training andtargeted e-mail attack response training for representatives at
SG HOLDINGS GROUP CSR Report 2016

RM Manager

 Basic Information Security Policies

RM Manager

Information Security

RM Manager

Individual RM Meetings

RM Manager

RM Manager

RM Manager

RM Manager

RM Manager

RM Manager

RM Manager

RM Manager

RM Manager

RM Manager

RM Manager

RM Manager

RM Manager

Individual RM Meetings

42

SGH: SG Holdings
RM: Risk Management

RM Manager

Individual RM Meetings

Organization GovernanceConsumer Issues

Group companies.
Furthermore, with the goal of raising the information
security awareness of all employees, ongoing measures forcommunication and education, such as reading through the
SG Holdings Group Security Handbook and implementing
confirmation tests, are carried out at Group companies.

 Obtaining ISO27001
Sagawa Express (Sales Department, Sales Section) has
obtained the international ISO27001:2014 information security
management system certification, in order to meet ourcustomers’ needs and improve userfriendliness by providing
services that require high levels of information security.
This certification has also been obtained by Sagawa Global
Logistics (Head Office Sales Department, Sales Development
Department, Logistics Solutions Department, Nagoya Branch
Kanazawa SRC, Kita-Kanto Branch Kita-Kanto Sales Office), withcertification newly obtained by the Nishi-Tokyo Branch Oi SRC,
one of its major offices, at the start of fiscal 2016.

Building a Responsible Management Foundation Protection of Intellectual Property
SG Holdings Group protects the intellectual property rightsof our Group to maintain the health of our business activities,
manage our intellectual property rights, and spread knowledge
and awareness so that the intellectual property rights of otherparties are not infringed upon.
Our initiatives for protecting the intellectual property of theGroup include acquiring rights for the intellectual property ofeach company in the Group, and maintaining control of ourintellectual property rights. We regularly confirm the intellectual
property rights of other parties to avoid intellectual property
right infringement, and share this information with relevant
divisions and send out awareness messages.
We also spread knowledge and awareness of these activities
throughout the entire Group. The SG Holdings Code of Ethics
and Conduct includes a basic intellectual property policy as one
part of "Management of Corporate Property and Information."
We will continue to appropriately manage intellectual
property.

 New Establishment of Cyber-Security
Promotion Unit
Under recent conditions where there is a high risk of
exposure to numerous cyber-attacks from outside sources, it isnecessary to prevent serious security incidents before they canoccur. Therefore, in fiscal 2015 SG Systems established a new
cyber-security promotion unit as a specialized department,
for the purpose of taking active steps toward enhancing andpromoting cyber-security. With the initiatives of this unit as our
focus, we will investigate the introduction of an internal CSIRT*
in coordination with external organizations such as government
institutions and specialized vendors, and will further strengthen
our system for responding to security incidents.
*
CSIRT: Abbreviation for “Computer Security Incident Response Team”. A
specialized team that handles information security problems.

 Implementing Security Assessments
In order to prevent serious security incidents before they
can occur, the current conditions of internal and external
environments must be understood, and the cyber-security
management system must be evaluated. Then, after
benchmarking with other companies and setting target security
levels, the issues that must be addressed to reach the desired
state must be identified, policies and measures must be defined,
and relevant items must be ranked by priority. SG Systems is
implementing such security assessments while considering theentire SG Holdings Group, which is widely involved in overseas
deployment, and is formulating roadmaps so that even more
effective security measures can be reliably executed.

Crisis Management BCM Initiatives
The SG Holdings Group is aiming to upgrade its crisis
management systems, and is taking steps toward Group BCP
formulation and BCM coordination, while also enhancing theGroup crisis management system.

Formulating BCP for Each Group Company
Since 2012, we have started initiatives for BCP construction,and have formulated basic plans and action plans sharedacross the Group and for the Group’s core company of Sagawa
Express. Even regarding IT-BCP, we have also implemented
BCP measures such as system redundancy for systems related
to essential operations, after formulating basic policies. From
2015, we have been formulating BCP for each Group company
in sequence, and in the future will proceed with linking theseGroup BCPs together.

Large-Scale Disaster Response Training
In the Group Large-Scale Disaster Response Training held
in November 2015, third-party evaluation was conducted by
Deloitte Touche Tohmatsu LLC based on the training contents
and results, and we received external evaluation on theeffectiveness of our Group’s BCP and BCM.

Organization Governance

Arrangement of BCM Contact System
By arranging a BCM contact system in the SG Holdings Group,
we investigated the Group’s business continuity management,
shared information, and made plans to enhance the Group’s
crisis management system.
We are also holding BC Corporate Exchange Meetings
at Sagawa Express for the exchange of information such as
initiatives and issues regarding the BCP of companies in different
business fields. Roughly 50 corporations and administrations
participated in fiscal 2015, engaging in active discussions
and offering proposals on resolving common issues related
to business continuity and promoting specific cooperative
relationships.

Collection and Distribution of Information when
Incidents Occur
We improved our emergency information system as one
type of reporting tool to increase the reliability of reporting in
the case of emergencies. We will continue aiming to further
improve our response capability for the occurrence of incidents.

SG HOLDINGS GROUP CSR Report 201643

Foundation Activities
SGH Public Interest Foundation
With the goal of contributing to multifaceted and extensive social activities for the creation of a global and active society, the SGH
Public Interest Foundation assists with research and business activities to promote and develop fields such as economics, industry,
education, culture, medicine, and social welfare.

 Foreign Student Scholarships Promotion of Cancer Research International Economic Cooperation

We provide scholarships to privately
financed international students fromcountries in Southeast Asia. Since this project
began in 1986, 474 students have been
selected, with the total monetary amount ofscholarships provided reaching 1.071 billion
yen. In addition to granting scholarships,
we are also striving to enable international
students to enjoy a rich experience inJapan by publishing written anthologies
and holding award ceremonies, social
gatherings, and reunions.
During fiscal 2015, 72 students from 63
universities all over the country applied, of
which 16 applicants were selected as our
30th term scholarship students.

We are involved in activities such asoffering support and awards to research on
basic cancer studies and applied treatments,
holding cancer-related lectures and publiclyopen citizen courses, and publishing reports
on research results.
In fiscal 2015, 221 applications werereceivedfromresearch
institutions
nationwide, and we provided support to
15 of them. We also presented the Sagawa
Special Award and the Sagawa Nursing Care
Special Award to people with distinguishedachievements in cancer research and thedevelopment of nursing care, who also havehigh promise for future developments.

We donate transport vehicles to developing
and emerging countries in Asia, and accepting
trainees to study vehicle maintenance skills.
In 2015, we accepted five trainees from
China and five trainees from Laos for vehicle
maintenance skill training. In cooperation with
the Ministry of Land, Infrastructure, Transport
and Tourism, we are also involved in a projectto support human resource developmentof logistics management at the Ho Chi Minh
City University of Transport in Vietnam. We
are intending to investigate and discuss otherprojects, such as projects for human resources
cultivation of logistics management in Laossimilar to that in Vietnam, from here on.

30th Scholarship Student Selection Certificate
Award Ceremony

27th Awards Ceremony, 13th Prize Ceremony

Scene at lecture class at Ho Chi Minh City
University of Transport

27th Sagawa Cancer Research
Support15 awards (15 million yen)
13th Sagawa Special Award
2 awards (10 million yen)

Scene at awards ceremony

13th Sagawa Nursing Care Special
Award
2 awards (2 million yen)

Results of accepting trainees forvehicle maintenance skill training(cumulative total from 1987 to 2015)
China, Laos: total of 203 trainees
Results of donating repaired used
trucks (cumulative total from 1985
to 2015)
China, Mongolia, Laos, Peru, etc:
total of 3,327 vehicles

Sagawa Art Museum Public Interest Foundation
In March 1998, the Sagawa Art Museum was opened in Moriyama City, Shiga Prefecture. The Museum also holds specially planned art
exhibitions, focusing on permanent exhibitions of the works of Ikuo Hirayama, Churyo Sato, and Kichizaemon Raku. The Museum also
promotes education through events such as Sagawa Kids Museum and concerts, to cultivate aesthetic sensibility that creates abundantsenses of expression and sensitivity. *Total number of visitors in fiscal 2015: 160,462

Specially planned exhibitions
 Kiyoshi Yamashita Exhibition: The Wandering
Genius Artist Keith Haring Exhibition
 Oribe Furuta Exhibition: 400 Years After Death Exhibition of winning pieces from 7thChildren’s Art Contest
 Baikoan Collection: Exhibition of Magnificent
Beauties
Activities to spread art culture Exhibition-related lectures (299 participants)
 Concerts (469 participants)

44

SG HOLDINGS GROUP CSR Report 2016

 Tea parties (129 participants)
 Sagawa Kids Museum educational promotion
activities for the children who will be our next
generation (workshops: 407 participants,
exhibition events: 28,136 participants)
Interaction with local communities Art Appreciation Classes in cooperation
with the Moriyama City Board of Education(929 4th-grade students in 27 classes from 9
elementary schools)
 Welfare Day (1,785 participants from 124
welfare facilities)

Global Group Company CSR Activities
Expolanka Group Celebrating World Environment Day with the“Bulb for Bulb Campaign”
Expo Freight (EFL) conducted the “Bulb for Bulb Campaign”, inwhich free LED light bulbs were given to 1,000 employees and 1,000
homes in the Orugodawatta area, to celebrate World Environment
Day. The campaign sought to create awareness on the benefits of
LED bulbs, which are highly effective in saving energy, which also reduce greenhouse gas emissions from power plants, also helps in lowering electricity bills. Also these Free LED bulbs were exchanged withthe employees as we firmly believes that we should “walk the talk”.
In addition, EFL is taking measures as a Group to reduce its amountof CO2 emissions and mapping greenhouse gasses obtaining ISO
14064, which is an international standards procedureon calculating the GHG
emissions and implementing procedures in cutting
down CO2 emission.

Distribution of free LED light bulbs

 Rathugala Water & Sanitation Project
The Veddah community, Sri Lanka’s oldest indigenous community, in Rathugala, with a population of roughly 400 people,
faced many hardships with limited access to clean water. Expolanka provided funds and arranged the necessary equipment tobuild clean water storage tanks and water supply pipelines, allowing the residents of this community to enjoy the use of cleanwater. After this project was completed Expolanka embarked ona project to provide sanitation for the community by building 5common toilets for the people of Rathugala. They were erected
in key points in the village. The construction of common toilet
facilities in 5 locations that can be used by the local people has
given them a healthier lifestyle and has enabled residents of thecommunity to elevatetheir standard of living.

Providing clean water
to the Rathugala village Continuing the ‘Eyes of Hope’ project incelebration of ‘World Sight Day’
Continuing the ‘Eyes of Hope’ project from last year to fall in linewith the ‘World Sight Day’, Expolanka facilitated 25 cataract surgeries free of charge, bringing the number of patients the Group
has supported to 50. A series of free health checkups were also
held to examine over 300 senior citizens, and the Group donatedspectacles to these patients as well.
According to a United Nations WHO (World Health Organization) report, 80% of visual impairment, including blindness, isavoidable. In our various efforts to help senior citizens in Sri Lanka,

we noticed that a number of these individuals are forced to livewith ailments such as cataracts and are unable to receive proper
treatment. Expolanka is hoping to continue its efforts in doing
free cataracts surgeries through the “Eyes of Hope Project”.

Performing free cataract surgeries Celebrating Universal Children’s Day with
“Children’s Health Camp”
Expolanka celebrated Universal Children’s Day by holding
a “Children’s Health Camp” participated in by 250 children, including children with disabilities from Five Children’s Homes.
Established by UNICEF in 1954, Universal Children's Day aims
to improve and maintain the welfare and health of children
everywhere and encourages global initiatives to save the livesof children around the world. In this view, this free event held
by Expolanka began by providing dietary advice based on the
results of health checkups. Following the health camp, the children enjoyed a delicious lunch, took part in games and activities, and received gifts toconclude the event.

Scene atthe “Children’s Health Camp”

 Health camps and microfinance initiatives forthe elderly
Since the year 2014, Expolanka has been conducting support
programmes for the elderly every year to give needed assistance, and to celebrate World Elders Day, the “Healthy Living”
health camp was held to provide free health care to over 300
elderly people. General health examinations were given andmedicine was prescribed and distributed, free of charge to low
income senior citizens who required regular general medical
checkups. Inspired idea of free medical consultation, the Groupalso conducts an ongoing free healthcare programme called‘Expo Medix’, which is a fast-growing network of medical clinics able to offer affordable medical services to the low-income
class. To help in overcoming the emerging social problems
faced by Sri Lanka’s aging society, Expolanka initiated a microfinance project to assist entrepreneurship by senior citizens andthe establishment of business eco-systems in a variety of ways.

Health camp for the elderly

SG HOLDINGS GROUP CSR Report 201645

SG Sagawa (Thailand)

Sagawa Express Vietnam

 Environmental Greening Projects

 Providing Collection Services for Waste Paper
Resources

SG Sagawa Thailand is currently carrying out environmental
greening projects. It is improving the environment around its workplaces by actively cultivating and growing various kinds of plants,
such as by planting seedlings of trees and flowering plants in barefields with no plant life on its premises in June 2015. These activities for filling the surroundings with plant life are expected to not
only improve the environment, but also to encourage enjoyment in workand arouse the spirit ofmaking improvements toyield positive results.
Scene at greening activities

The transportation know-how of Sagawa Express Vietnam andthe advanced waste paper dissolution and household paper manufacturing technology of recycled household paper manufacturer
JP Corelex Vietnam are being applied to commercial provision ofconfidential document collection services. In these services, confidential documents collected by Sagawa Express Vietnam arebrought to a JP Corelex Vietnam factory and used as raw materials to produce toilet paper. With this system, the companies fromwhom waste paper has been collected then purchase the manufactured toilet paper, contributing to paper resource circulation.
This service is primarily used by Japan-affiliated companies, whichhandle large amounts of confidential documents and have a highdesire to contribute to a recycling-oriented society, with several
tons of confidential documents collected and recycled every year.

Sagawa Express Philippines
 Earthquake Disaster Training
Sagawa Express Philippines participated in an earthquake disaster training event on the largest scale in the country, held in
July 2015 in the entire Manila metropolitan area, and presented a series of videos related to the training. Information on response procedures recommended before, during, and after anearthquake at each stage of its occurrence were summarized in
the form of safety cards which were distributed to employees.
We are aiming to maintain a management system able to ensure
safety and provide high-quality services even in an emergency.

 Training Meetings for Drivers and Delivery Staff
As one part of human resources cultivation programs andeducation, training was held for drivers and delivery staff in
September 2015. The participants deepened their knowledge
and understanding, learning about cargo handling and standard business procedures related to delivery. Discussions werealso held by participants during this conference on the topic of
how to provide outstanding customer service. Participants presented their respective views using projectors and spoke about
them with each other.

SG Sagawa Ameroid(Singapore) Initiatives for Safe Driving and Accident Prevention
At SG Sagawa Ameroid, a Safety Committee was established inJuly 2015 and began efforts in accordance with the principle of“health, safety, and environmental policies”. It launched monthly
departmental reviews and web portal systems (reporting systems
for accidents, etc.) to gain an understanding of problems, and toprepare related countermeasures and prevention plans. It also
introduced systems for driver education and driving analysis, inaddition to equipping its vehicles with high-resolution cameras
for the purpose of monitoring driving behavior.

46

SG HOLDINGS GROUP CSR Report 2016

After confidential documents
arrive at the factory, they arefed directly to a belt conveyor
and dissolved under customer
observation.

Shanghai Dazhong Sagawa Logistics
 Receiving Used Home Appliances and Transferring
them to Proper Disposal Businesses
Shanghai Dazhong Sagawa Logistics receives requests frombusiness partners selling televisions, microwave ovens, and other home appliances, so that when it transports new appliances to sales customers, it also picks up old appliances and other items to transfer them to proper disposal businesses. Illegal
dumping and similar acts are becoming a widespread issue in
China, so taking custody of used appliances and bringing themto disposal businesses contributes to the prevention of illegal
dumping and other forms of improper disposal.

Sagawa Express Malaysia
 Export Cargo Handling of Biomass Power
Generation FuelAs a marine export operation,
Sagawa Express Malaysia is engaged in port cargo handling of
Malaysia-produced biomass fuelfor burning at thermal power
plants in Japan. Biomass is a formof clean energy with reduced CO₂
emissions.
Biomass power generation fuelThird Party Opinion on SG Holdings Group“CSR Report 2016”
Positively-rated Aspects
I believe that overall this is an excellent report whichclearly indicates the concept held by the SG Holdings Group
toward CSR, namely “Contributing to the development of asustainable society by reflecting the challenges and hopesof society in business activities”. In continuation from lastyear, the report includes many examples of opinions fromstakeholders such as customers, employees, NPOs, and government administrations, as well as job site photographs,
and really shows the character of the Group.
As stated in the Top Message, in recent years changes tobusiness activities and consumer lifestyles brought about by
the globalization of the economy, environmental problems,
the falling birth rate and aging population, and technological progress, are moving forward at a rapid pace, giving rise
to a succession of new social issues. For a corporation toearnestly promote CSR under such conditions, it is important to have ideas for CSV that incorporate the resolution ofsocial issues into its main business. As stated above, the SG
Holdings Group has the stance of “Contributing to the development of a sustainable society by reflecting the challenges and hopes of society in business activities”. In the special
feature section of this report (⇒ see pp.14-16), examples are
given where the Group has fully applied its total capacity tocontribute to the expansion of overseas sales channels forfood product manufacturers and has reduced environmental impacts in areas around shopping centers. There are alsosimilar examples given of the establishment of service bases to support “Sightseeing Without Baggage” (⇒ see p.22)
which can lead to higher satisfaction for foreign travelers
visiting Japan. I would like to highly praise this Group’s corporate stance of engaging in CSR through its main business.
What I would like to praise the most in this report is its
presentation of the “Awareness of Social Issues” → “Views ofManagement (Responsible Personnel)” → “Mid-Term Plans /Action Plans” on title pages provided for each of the material CSR issues identified based on ISO26000 (⇒ see p.17).
The Global Reporting Initiative (GRI) requires the publicationof management procedures to address specified impacts tothe economy, environment, and society (DMA: Disclosure
on Management Approach) in G4 guidelines. Also, in fiscal
2015, the three companies of Sagawa Global Logistics, SG
Realty, and SG Systems were positioned as Group companies to make focused efforts for this, and plans were madeto enhance the level of CSR further across the entire Group.

There is no question that the SG Holdings Group is actively
releasing information required by stakeholders while alsosteadily proceeding with measures to raise the effectivenessof CSR management.
Sagawa Express owns a total of approximately 8,080 environment-friendly vehicles, which is equivalent to roughly
30% of the total number, that include post-new long-term
regulation compliant vehicles and compressed natural gas(CNG) trucks (⇒ see p.26). It also has an established reputation of having a high awareness of environmental considerations, shown for example by the calculation and disclosureof its CO₂ emissions over its entire supply chain (Scope 3),
ahead of the logistics industry. In this fiscal year, it completed a new logistics facility in Higashimatsuyama City, Saitama
Prefecture, which received a Rank A CASBEE evaluation andalso obtained the highest rank of five stars for the DBJ Green
Building Certification by the Development Bank of Japan (⇒see p.27). Initiatives to address environmental fields are a vital issue for the Group due to its business characteristics. I
hope that the Group will continue to promote initiatives in
the future that will lead the industry.
Finally, I would like to refer to SG Holdings Group’s “Building an Organization with Individuality and Diversity” (⇒ see
pp.34-37). Diversity is an element that is essential in building
a lively organization and creating innovation. I would like togive high commendations to the Group’s steps taken in fiscal 2015 to expand the target job categories and numberof participants in Women’s Career Support Training, and toaddress the employment and career development of foreign
employees on an ongoing basis.

Future Requests
The SG Holdings Group is a global corporate body withbases in 24 countries and regions. Although this report introduces many examples of overseas Group company projects and CSR activities (⇒ see pp.45-46), the information
released regarding the six material CSR issues stated by theGroup is limited to domestic data. I would like the reportfor the next financial year to include more complete descriptions of these points with regard
to overseas Group companies.

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

SG HOLDINGS GROUP CSR Report 201647

Communication Through Websites
SG Holdings Group uses various means of communication,
including websites, to relay information to our stakeholders,regarding CSR and business activities.

CSR (Corporate Social Responsibility) Activities

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

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

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

601-8104 Japan68, Tsunoda-cho, Kamitoba, Minami-ku, Kyoto,
TEL +81-75-671-8600
http://www.sg-hldgs.co.jp
Title

CSR Report 2016

Published

June 2016

Next issue planned forPrinted byJune 2017

Sagawa Printing Co., Ltd.

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