CSR Report
Sustainability Report 2009

Supporting people, commerce,
and the futureTitle of the CSR report brochure
We entitled our CSR Report from this year based on the deep understanding that our CSR(Corporate Social Responsibility) is SG Holdings Group’s everyday philosophy centering on the distribution business, in which we play a large role, and fulfilling our responsibilities for people’s work andlife continuesly expanding our efforts.

Design of the front cover
At SG Holdings Group, we are responsible for an essential infrastructure which is indispensible forindustry and society, and moreover, for a prosperous future of our environment through our daily business operations. Our message, “Supporting people, commerce, and the future” represents the attitude of the group which is directly linked with these CSR activities.

Report editorial policy and scope of■Editorial policy■Period covered in this report

1. To make this report readable for broad stake-March 21, 2008 to March 20, 2009.

holders, we tried to make this report as comprehensible as possible, accompanying withsimple and plain explanation.
2. We consulted the Environmental Reporting
Guideline 2007, published by the Ministry of
the Environment, and the Sustainability■Organizations covered in this report
While focusing mainly on the achievements of
Sagawa Express Co., Ltd., the activities of thegroup companies and the foundations of SG
Holdings Group are also mentioned.

Reporting Guidelines 2006 (GRI).
3. The performance figures are taken from the■Other means to provide information

statistics of fiscal year 2008. (Some of theHoldings Group’s website: <http://www.sg-

activities reported here are to be implemented

hldgs.co.jp/>.

This report can be downloaded from the SG

in fiscal year 2009.)
4. According to the situations relating to theactivities, only the covered periods are shown
when it is impossible to report the performance figures.

Corporate profile of SG Holdings Co., Ltd.
SG Holdings Co., Ltd. is a pure holding company of groups centering on Sagawa Express and otherrelated companies, which has the business strategy of planning and managing functions through out
the group, and each company within the group concentrates on specific business operations. With
this management structure, we can make swift decisions and exploit the synergy effect of the group,
responding to the ever changing demands from our society.
■Trade nameSG Holdings Co., Ltd.

■Date of founding

March 21, 2006

■Description of business

The business strategy planning and managing for thewhole group and related businesses.

■Location

68 Tsunoda-cho, kamitoba, Minami-ku, Kyoto, Japan■President

Eiichi Kuriwada■Capital

11,383,000,000 Yen

2

Top Message

4

Cover feature“Distribution supports our life and work!”- Experience the ‘distribution’ field, a social infrastructure 7

Outline of SG Holdings Group

8

Business operations and culture of SG Holdings Group10

Philosophy and guidelines of SG Holdings Group12

CSR concept and system of SG Holdings Group

14

Business structure and domestic business summaries of SG Holdings Group

16

Management vision and mid-term management plan of SG Holdings Group

17

Business operations data of SG Holdings Group18

Overseas operating bases of SG Holdings Group19

Effort on safety

20

FeatureTruck Driver Contest held by Japan Trucking Association
One of our own is Japan’s No. 1
23

Scheme to enhanced safety

24

Efforts on Eco Safety Drive

26

Efforts on safety by vehicle servicing and safety devices

28

Looking to a safer society

31

Efforts on environmental conservation

32

Feature 1

Sustainability Report 2009

Table of Contents

Service devoted to CO2 reduction hand-in-hand with customers
34

Feature 2

Revitalization of healthy Satoyama full of learning and playing opportunities
36

Concept of environmental activities / Efforts against global warming

39

Environmental measures for improving transport efficiency

42

Effective utilization of resources

43

Efforts toward a Zero Waste society

44

SG Holdings Group’s environmental activities

46

Coexistence with nature

47

Efforts on environmental enlightenment

48

Building a framework to promote environmental activities

51

Relationship with society

52

FeatureCross-culture communication and economic development
Exploring different cultures to build mutual trust
55

Efforts on services and products for our customers

58

Efforts on quality improvement for our customers

59

With our employees

64

Human relationships and voices of society

66‘Internal and external local support and cooperation’ and ‘Collaboration and sponsorship
activities of industry, universities, government, and the private sector with local communities

68‘Hoping to continue to make a contribution to society, more and forever.’Message from SG Holdings Group’s employees

70

The third-party warranty report (Climate Savers Program)71

Our steps in the fiscal year 2008

1

TOP

MESSAGEWe think our most important social responsibility is
to make serious efforts in our business operations
which are part of the social infrastructure.
We aim to become a company responsible to society through the delivery of the customers’ valuable parcels as if they
were our own, efforts in safety and protecting the environment, and a wide variety of other activities.
What is the ideal social responsibility (CSR) of SG Holdings Group (SgH) under the current severe economic situation?
We interviewed Eiichi Kuriwada, Chairman and President of SG Holdings Co., Ltd.

How do you think CSR is holding up under
the current economy?
I think we must review our CSR now because theeconomy is stagnant. CSR must be continued by anymeans. When the CSR is considered to be an activity
which is totally different from the main business operations, it is hardly continued or developed. Physical distribution, which is the core business of SG Holdings,
plays a large role in the expansion and development ofindustrial and social infrastructures. Therefore, I think
SG Holdings Group’s main business operations per seare our CSR, and for this reason, it is important to have aview of how our business operations will lead to therevitalization of the economy and the expansion and thedevelopment of industrial and social infrastructures interms of both CSR and business operations.
The development of physical distribution has
improved speed and efficiency in industries and businesses, and has also contributed to their development.
We hope to make efforts to make a further contribution
to industries and businesses while continuing our cooperation in the environmental issues, safety, and the construction of a society where people can live happily.We
are proud that the efforts made by the distribution andtransport business industries were important for home
shopping services which we have highly emphasized asa purchase style for general consumers, and I think thisis because the superiority of home shopping services
responding to social changes such as a stagnation of theeconomy and penetration of IT as well as ‘physical distribution’ which delivers parcels speedily, reliably,
securely, and safely, have been one of the major factors
for the revitalization of consumption.
It is very important to forecast demands of the times ahalf step ahead. This contributes to the development of2

SG HOLDINGS GROUP Sustainability Report 2009

the entire society. As a company, We consider that activities designed to overcome various problems when theeconomy is stagnant will also contribute to the wealth of
the society.

How is the “SgH First Stage Plan” progressing?
This mid-term management plan looks at SG Holdings Group for the next ten years, and we created theSgH First Stage Plan as a plan for the initial three years.
Since our goal is clear, it will not fluctuate or be lowered
even when the economic environment changes. All wemust do is identify important issues sensitively, and act
solidly together toward the achievement of the goal.
Stagnation of the economy may be used as an excuse
because it is a problem of the whole society, but a resolute attitude whereby we consider, “Now is a chancebecause we face a crisis,” overcomes such a situationand creates wisdom and activities in a company. When
we cannot find a way out, an ad hoc performance cannot
solve the problems. However, our group is a strong organization which has thrived on adversity since its beginning. We have a field force of sales which is stimulated
by adversity and a strong organizational power andreadiness to support it. The advertising catch phrase of
Sagawa Express, Fit Your Business, entirely represents
our field force, organizational power, and readiness.

What do you think of SG Holdings Group’s
CSR? In addition, what do you think of therelationship between the business operations and the CSR?
Since the ‘physical distribution’ is closely connectedwith industries, businesses, and society, I think the business operations of SG Holdings Group per se have alarge social responsibility. I believe implementing secureand safe distribution and responding to the environment
seriously as our daily work in light of our own business
operations, without isolating the concept and activities
of CSR, will produce a sound CSR. SG HoldingsGroup’s business operations have the advantage of being
able to meet customers directly. It is important to understand customer demands and to build an organization
which can meet them effectively.
For compliance and internal control, it is important tocreate an organization which prioritizes the ideas andthinking that it are utilized in society, and not prioritizing the mechanism, and has a recovery function when it
goes off the road. We must think why we cannot observe
the rules together with the staff in the field, not limiting
the activities of the relevant department, aiming to solve
problems throughout the whole company. The current
internal control and company rules have an excellent
system, but we need to be flexible to always respond tothe challenges of society.

What is your future plan for environmental
activities?
We establish and implement our group’s own goals forenvironmental activities. Of course, it is also necessary
to watch national and global trends carefully and linkthem with our goals, but I recognize it is important tounderstand/capture the validity and problems correctly
as a company and as a distribution company, and thenproactively develop activities to solve problems.
In particular, it is necessary to evaluate important
issues such as the adoption of new transport means andmethods and alternative energy as the times and society
are developing by watching national and global trends
carefully and seeing their essence.
Establishing goals for a couple of decades for the next
generation and the generation after that by society,people, and companies is very important for the future.
At the same time, an activity such as reducing theamount of CO2 emissions in front of us now as much as
possible is also important. Innovative transport methods
and measures to improve energy efficiency such as theEco Safety Drive and Tri-Cycles are ideas createdthrough our daily work in the field. I think a field force
is important in terms of not only sales activities, but also
these environmental activities.

SG Holdings Co., Ltd.
Chairman and President

Eiichi Kuriwada

3

Cover feature

S g H

M O V E S

A Sound society by developing and seeking the next generations– report from work experience learning programs“Distribution supports our life and work!”- Experience ‘the distribution’ field, a social infrastructure -Work experience learning program

Parcels received from our customers are delivered to the place and time they are needed. Parcels ordered yesterday aredelivered this morning. These are very important, but also quite common in modern society. We understand that ‘physicaldistribution’, which supports such a common practice, is a key part of the system which supports the industrial and social
infrastructures of modern society. We believe that our serious engagement in this business, with such high exposure, isexactly our CSR.
SG Holdings Group cooperates in the ‘work experience learning programs of junior high school students’ recommended
by the Ministry of Education, Culture, Sports, Science and Technology as a part of career education at a company-wide level,
hoping to support the education of children who will be responsible for the next generation through this ‘distribution’ field.
a
In Sagaw okyo
T
Express okyo)
branch (TExperience encourages acheerful ‘thank you.’

As an on-the-job training program at the Tokyo
branch, three first year students of Nihonbashi
Junior High School experienced the delivery andpick up operations of parcels at the Service Centerin Horidome 1-Chome. On the first day, the students
were nervous and shy, and they hesitated to say,
“Sagawa Express. Thank you.” From the 2nd day,however, they spoke confidently and gradually got
used to the worksite and atmosphere.

<Example of 5-day curriculum of Sagawa Express work experience learning program>

Day 1

Training of morals and manners

Day 2Visit to branches, learning safety

Day 3

Experiencing delivery to companies

Day 4

Experiencing delivery to individual houses

Day 5

Experiencing dispatch of parcels

Many voices of students

who joined the work experience learning programs of other branches“I was surprised when I heard that parcels were carried not only bycars but also by cart. I was tired but had fun every day. I like thiswork experience learning program.”“It was hard because the parcels were heavy. But I was glad when
the customers thanked me.”4

SG HOLDINGS GROUP Sustainability Report 2009

- Conveying our message through work experience learning programs and various opportunities -Role of ‘physical distribution’and responsibility of SG Holdings GroupSG Holdings Group is a general distribution business group which consists of companies engaged in thephysical distribution business such as the delivery business and logistics business and other various businesses to support their system and structure such as vehicle servicing, insurance, and customs clearance. It
can be said that the ‘physical distribution’ system is a social infrastructure which plays a very important role
to support our life and work, and we believe SG Holdings Group assumes great responsibility in society forthis reason. We understand we must convey our important role in various places and fulfill our responsibility.
We can contribute to the education of the next-generations through our business operations if our workplace is shared and the learning can lead to the building of a positive view of work through our cooperation.

‘Physical distribution’ which delivers parcels received from our customers to a place and time they are needed.
‘Physical distribution’, which delivers parcels to arequested place at a requested time, is a common practice in modern society, and this is important as society develops and changes. To practice such a physical distribution, we make various efforts in logistics and systems byconstructing various processes and maintaining close
networks both domestically and abroad while paying
attention to the environment with efficient transport means
and methods. For this reason, it can be called a social
infrastructure. SG Holdings Group hopes that students
experience these invisible roles and functions of ‘physicaldistribution’ through our work experience learning programs.

Parcels collected from around thecountry are distributed to each destination at our hub centers.

‘Physical distribution’ as a partner to support offices, residential areas, industries, and life
One of the major purposes of ‘physical distribution’ is to support industries and the economy. A great many parcels such as
documents and products are transported from factories and offices. ‘Physical distribution’ also needs to be developed closelywith networks to transport parcels securely and safely. Another major purpose is ‘physical distribution’ to support our life. Thismeans transport of parcels such as daily commodities and gifts.
We believe ‘physical distribution’ is a partner to our work and life, and that is the responsibility and mission of SG HoldingsGroup.
An important partner to our life and work, ‘physical distribution’‘Physical distribution’ which also pays attention to the environment byusing vehicles and delivery methods with less CO2 emissions5

SG Holdings Group conducts work experience learning across the country.
We hope students experience the first step
toward fulfillment through work.
SG Holdings Group widely conducts work experience learning throughout its group companies including
Sagawa Express Co., Ltd. and Nouvelle Golf Club Co., Ltd. SG Holdings Group will proactively continue tosupport local educational activities through our work experience learning programs in which students work as
responsible members of the society as part of our CSR.

Sagawa Express has placed 178 students from 57 schools on the front lines of physical distribution
Actual results of accepted students in 2008
■Work experience learning program
Elementary Junior highschoolschool■InternshipHighschoolParticipating schools(No. of schools)

2

38

15

Students (No.)

42

99

34

Elementary Junior highschoolschoolUniversity

High
schoolUniversity

2

Participating schools(No. of schools)

0

0

6

6

3

Students (No.)

0

0

23

8

Elementary school students experience the job of sales drivers!
Our work experience learning programs accept not only juniorhigh school students but also elementary school students.
Sagawa Express participated in ‘The front lines of society – a field
trip to the front lines of distribution’ organized by the Future Innovation Forum (FIF) held in March 2009.
We invited 20 children from the 5th and 6th grade for a learning program entitled ‘A day of hands-on experience to learn what
the sales drivers do,’ in which they learned about the flow ofparcels, work site distribution, and experienced pick up anddelivery operations.

High school and university internship students are also welcomed!
SG Holdings Group also accepts high school and university internshipstudents.
A high school student who joined the training program at the Hiroshima branch in July 2008 said, ‘I learned a lot about the importance ofwork and the challenges of the sales drives who work with a smile.’
These work experience learning programs inspired many students toenter the company as sales drivers after they graduated from school andthey are now working hard. This makes the employees who serve as
instructors on site rethink work and saying, ‘I remember the time when I
entered the company, and at the same time I feel a responsibility for the
future of young people.’

6

SG HOLDINGS GROUP Sustainability Report 2009

A smile is very important for work.

Outline of

SG Holdings Group

Efforts on safety

oldings Group

Outline of SG H

mental conservation

Efforts on environ-society

Relationship with

Each business which supports thegroup– it’s also a power to support growing social infrastructure.
Efforts in physical distribution and other businesses related to it.
All of them contribute to the development of industrial and social infrastructures.We will pursue a valuable existence as a groupcompany which is widely trusted by society through our stakeholders by increasing and combining these individual abilities.

7

fOutline o
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in
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SG H
Group

Business Operations and Culture of SG Holdings Group

Environmental lectures
Activities throughour foundations

Traffic Safety Schools

Natural gas charging stands

Natural gas trucks

Super Rail Cargo

Sagawa Ryutsuu(stands for distribution) Center (SRC)

Hub Centers

8

SG HOLDINGS GROUP Sustainability Report 2009

Efforts on safety
Efforts on environ-mental conservation

Moving services

Outline of

SG Holdings Group

Activities at the forest of Takaosociety

IT systems

Service Centers

e-collect

Forwarding

9

Relationship with

Vehicle servicing
Delivery to customers

e ofutlin全
O安
ings
ld
の
o
SG Hへ
組uみ
p
りro
取G

Philosophy and Guidelines of SG Holdings Group

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

SG Holdings Group’s Corporate Philosophy

SG Holdings Group’s Conduct Charter

SG Holdings Group’s Code of Ethics and Conduct

SG Holdings Group’s unified slogan

SG Holdings Group’s Corporate Philosophy

SG Holdings Group reaffirms ‘Hikyaku no kokoro’ (the spirit of express messenger) withwhich Sagawa Express started the business, and performs fair and free business activities
with respect for human rights and compliance.

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

10

SG HOLDINGS GROUP Sustainability Report 2009

Management shall recognize that the implementation of the spirit of this Charter and setting an example by leadership is its task and thoroughly com-

Efforts on safety(Provision for responsibility)

Outline of-To obtain trust and understanding from society-

SG Holdings GroupSG Holdings Group’s Conduct Chartermunicate it to all relevant parties, including the personnel of SG Holdings Group. Further, management shall prepare an effective corporate governancesociety

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

Relationship with

(Joint declaration)

Efforts on environ-and shall make every effort to determine the cause and to prevent similar incidents in the future.

mental conservation

structure to ensure business compliance. If any infringement of this Charter occurs, management shall publicly take the initiative in solving the problem(Principles of conduct)
1 Considering the safety and the personal/customer information protection, we develop and provide the services and products that are useful toobtain trust and to give satisfaction to the consumers and customers.
2 As a good corporate citizen, we actively participate in social contributions.
3 In our international business operations, we respect the culture and practices of the countries involved, in addition to the observation of internationalrules and laws of such countries, and operate the business in a manner that can contribute to the development of the region.
4 Recognizing that environmental conservation is a common issue for all humanity and an essential requirement for a company to exist and operate,

we actively and voluntarily take the necessary actions.
5 We perform fair, transparent and free competition and fair trade. Also we maintain sound and proper relationships with politicians and governments.
6 We confront, in a determined manner, antisocial forces and groups which threaten the order and safety of society.
7 We have communication with society as a whole, along with shareholders, and disclose our corporate information actively and properly.
8 Respecting to the diversity of employees and their personalities, we ensure safe and good working environments to provide comfort and security.

SG Holdings Group’s Code of Ethics and Conduct:

We follow the Code of Ethics and Conduct which embodies SG Holdings Group’s Conduct Charter.
1 We think and act according to the thorough customer creed.
2 We think and act to contribute to the development of local societies.
3 We think and act fairly with responsibility and good faith.
4 We think and act to promote the growth of ourselves and colleagues and to create a better working environment.

SG Holdings Group’s unified slogan

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

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fOutline o
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Group

CSR Concept and System
of SG Holdings Group

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

SG Holdings Group

Advanced
CSR●Commodity/Service ●Environmental protection activities●Corporate activities to support the arts
●International activities ●Social Contribution activities●Information security ●Safety activities ●Quality control/CS

Economical responsibilities
Basic
CSR

●Sound and transparent management●Increasing profitability and giving back some of the profit to society

Compliance responsibilities
with laws●Good ethics and conduct ●Compliance●●●Respecting human rights and equal opportunities

SG Holdings Group’s Conduct Charter

Social contribution activities
Contribution to society in line with our main businesses

Shareholders

Customers

Local societies

Employees

Business
partners

Promoting CSR / Effort on Improving our Ethics and Compliance Checking System
The purpose of the CSR Committee is to construct a

Outline of SG Holdings Group’s Ethics and Compliance Checking System

checking system and promote continuous improvement activities with the purpose of putting SG Hold-SG Holdings Groupings Group’s Conduct Charter in practice and reflect-

Corporate Philosophy

Advisory centering on the management of the whole group. Starting in
2007, we have been trying to realize drastic improvement of Basic CSR. For this, we have unified the Cor-

Conduct Charter
Consultation
and reporting

porate Philosophy and Conduct Charter of our group
and also established SG Holdings Group’s Code of

Code of Ethics and Conduct

Ethics and Conduct. We will continue our efforts to

Communicationand education

develop an effective ethics and compliance checking
system which is stems from our daily business operations and the behavior of all members of our group.
*The CSR Committee consists of all the board members of SG Holdings Co., Ltd.

12SG HOLDINGS GROUP Sustainability Report 2009

Board members and employeessibility as a company and to be trusted by stakeholders, including shareholders, in our group’s overall business activities.

8 Matters relating to audit

4 Storage and control of information relating to

9 Reporting to auditors by board members andbusiness operation
5 Risk control

employees internal audit

society

3 Control in financial matters

Relationship with

7 Matters relating to business conduct

Efforts on environ-6 Social responsibility

2 Handling of information

mental conservation

1 Structure of business operations

Efforts on safety

effectiveness and efficiency of operations, compliance with the laws and financial reporting, in order to meet our social respon-

Outline of

SG Holdings Co., Ltd. set up the following policies because it is essential to prevent misconduct and obtain credibility for the

SG Holdings Group

Basic policies of the internal control system (outline)

10 Internal audit

Aiming to restore trust from society, we are strengthening our business compliance.
‘Report: Prevention of the air transport of fireworks (freight restricted from aircraft)’
Sagawa Express Co., Ltd. and Sagawa Global Logistics Co., Ltd. were involved in air transport of fireworks (freight restricted from aircraft).

Facts

Action and preventative measure

Sagawa Express accepted fireworks from a cus-

Both companies took prompt action to prevent a

tomer to Ishigaki City in Tokyo as air freight without

recurrence and submitted an improvement report tochecking the contents and consigned its air transport

the Ministry of Land, Infrastructure, Transport andto Sagawa Global Logistics. Sagawa Global Logistics

Tourism. The employees were informed of the out-

conducted a safety inspection by an X-ray inspectorline, and cautions when handling air freight were

but could not find the freight contained fireworks.

implemented. These include the checking of con-

They loaded the freight onto the container and the airtents when accepting freight and reeducation ofcarrier detected it at the Ishigaki Airport.

security personnel to strengthen the security system.

SG Holdings Group gravely acknowledges this caseand sincerely apologizes for the inconvenience. We will avoid recurrence byfurther strengthening our compliance checking system.

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fOutline o
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Business Structure and Domestic
Business Summaries of SG Holdings Group

Business Structure and Domestic Business Summaries of SG Holdings GroupSG Holdings Co., Ltd

Sagawa ForestryCo., Ltd.

Sagawa Express Co., Ltd.

Sagawa Global
Logistics Co., Ltd.

SagawaFinancial Co., Ltd.

World Supply
Co., Ltd.

SG Motors Co., Ltd.

Sagawa Computer
System Co., Ltd.

SG Realty Co., Ltd.

Sagawa AdvanceCo., Ltd.

Nouvelle Golf
Club Co., Ltd.

SG Motors KanEtsu Co., Ltd.

Sagawa Moving
Center Co., Ltd.

SG Mobile Support
Co., Ltd.

Overseas subsidiaries
Tianjin Poly-Sagawa International Trading Co., Ltd.

Sagawa Express International Taiwan Corp.

Sagawa Express Singapore, Pte., Ltd.

Shanghai Poly-Sagawa Logistics Co., Ltd.

Sagawa Express Philippines, Inc.

P.T. Sagawa Express Indonesia

Shanghai Dazhong Sagawa Logistics Co., Ltd.

Sagawa Express Vietnam

Sagawa Express Thai Container Distribution Service Co., Ltd.

Poly-Sagawa Logistics Co., Ltd.

Sagawa Logistics Korea Co., Ltd.

Sagawa Express Hawaii., Inc.

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

SC Logis Co., Ltd.

Sagawa Global Logistics (Malaysia) Sdn. Bhd.

SG Motors Kan-Etsu Co., Ltd.
(former Shin Mikuni Motors Service Co., Ltd.)SG Motors Co., Ltd. acquired the whole shares of Shin Mikuni Motors Service Co., Ltd. to make it a subsidiary, and changed the company name as of June 1, 2009.

Business summaries of domestic group companies

14

Sagawa Express Co., Ltd.

Sagawa Moving Center Co., Ltd.

Sagawa Express, the core company of SG Holdings Group, is enhancing and expanding
its courier service business, as well as providing total solutions for physical distribution inliaison with other group companies. Its handling volume of parcels per day is usually 4.5
million and it exceeds 6 million at its busiest period but each and every parcel is transported
swiftly, surely and carefully. Because the distribution business cannot avoid having a direct
impact on the environment, Sagawa Express actively makes efforts on the preservation of
our environment. Operating as a business with ‘Hikyaku’ in themodern world which carries
parcels with its heart and soul,
Sagawa Express will continue
to provide optimal service thatis to be appreciated by ourcustomers, aiming to become
the first choice.

With 16 branches throughout Japan, Sagawa Moving Center continues
to provide optimal service for our customers, by suggesting the best
possible distribution framework for each customer’ s needs with ourdomestic relocating transport services, transport of special goods which is
not the specialty of Sagawa Express, transport and installation of large
furniture and home electric appliances,and collection and transport of industrial
waste, seven-days-a-week, in cooperation with our domestic affiliates. What
will the distribution industry demand in
the future? What can we do for it? We
always ask these questions ourselves
while aiming to become a company
which can contribute to society.

Sagawa Global Logistics Co., Ltd.

Sagawa Financial Co., Ltd.

Sagawa Global Logistics supports our customers’ business bymeans of the global logistics service and exploiting our domestic
and international network. By flexibly combining accumulated
know-how on logistics and our global network, the company
improves and expands its solutions of domestic and international
physical distribution through our business networks in Asia, theASEAN region, North America andEurope. Sagawa Global Logistics
aims to answer the needs of all
customers who consider logistics
an important factor in theirbusiness strategies and to be able
to contribute to society.

Sagawa Financial provides various financial services of which‘e-collect,’ SG Holdings payment on delivery service, is the core.
The ‘e-collect’ service has been well-received by consumers as it
added options for payment, i.e. they could pay not only by cash but
also by credit card or debit card. Coupled with the expansion of mailorder markets, the transaction volumeof ‘e-collect’ has grown very steadily
both in the number of transactions andthe total amount of payments: 1211.5
billion yen in fiscal 2008.

SG HOLDINGS GROUP Sustainability Report 2009

SG Mobile Support Co., Ltd. works for the establishment, design, construction, supervision, and maintenance as a mobile communication base station
installation business. It performs the construction of electrical, communication,and disaster prevention equipment, civil engineering / architecture, water supply and drainage,
sanitary equipment, and air-conditioning equipment
as the building equipment construction business,management of pay-by-the-hour parking, construction of high-level security systems, emergency
maintenance, and installation of facilities as a
facility-related business. SG Mobile Support is agroup of such specialists in a wide range of fields,
and will challenge new businesses including
infrastructure development as society demands.

SG Realty Co., Ltd.

Nouvelle Golf Club Co., Ltd.

SG Holdings Group owns and rents many properties and facilities
to operate its delivery business and logistics business. SG Realty wasestablished as a general real estate company to maintain these many
properties and facilities to consolidate their general management andoperation, utilize them effectively, anddevelop new ones. SG Realty willcontribute to the business operations ofcustomers both inside and outside of
the group by its solid strategies of realestate assets and facility infrastructureof the group (PM/CRE strategies*).

Nouvelle Golf Club is located in Oami Shirasato-machi, Sanbugun in Chiba-pref, which is a favorable location 50 km from central
Tokyo and about 50 minutes from Hakozaki IC. The green forest
course surrounded by Sanbu-sugi (cedar) of the Kazusa hills is agentle course with few ups and downs, and players can enjoy golf
comfortably moving around cooltree-shaded trails by passenger
cart. The green, which is one of thegreatest features, uses a grassvariety called Penn A-1, and webelieve players can enjoy the samefine touch as on a pro course. We
look forward to your visit with oursmile and cordial service.

* PM strategy is to optimize lease methods and daily management, and costs and specifications of mid and long-term repair plans to maximize revenues from real estate andtheir values. The CRE strategy is to reconstruct corporate properties comprehensively
and strategically to enhance corporate values.

Sagawa Forestry Co., Ltd.

Foundations■Sagawa Foreign Students’ Scholarship Foundation■Sagawa International Economic Cooperation Foundation■Sagawa Cancer Research Promotion Foundation■Sagawa Art Museum Foundation■SG Holdings Group Health Insurance Association
Auxiliaryorganizations ■SG Holdings Group Corporate Pension Fundsociety

As a comprehensive service company in SG Holdings Group,
Sagawa Advance offers various services including an insurance
agency, a travel agency, personnel service, mail order and retailbusinesses, and delivers steady and strong results in every area.
An independent subsidiary company, SG Mobile Support, also
expanded its business field, and as the name ‘ADVANCE’ implies
Sagawa Advance will strive tomeet the challenges of newmarkets and businesses under
the slogan of ‘innovation,
challenge, and speed’ with thespirit and corporate culture ofenterprise.

Relationship withSG Mobile Support Co., Ltd.

Efforts on environ-

Sagawa Advance Co., Ltd.

mental conservation

Sagawa Computer Systems takes up the consulting, construction, operation and administration of information systems within SG
Holdings Group, while it has also served as ‘a think tank of information strategy’ to provide customer-oriented systems and solutions
with the correct understanding of customers needs and the managerial and strategic point of view. Sagawa Computer System willcontinue to provide practicalsolutions to customers in a wide
range of fields, beyond the field of
distribution, utilizing a proven trackrecord and accumulated technologies and know-how.

Efforts on safety

SG Motors operates a total vehicle business which includes theinspection and maintenance of vehicles owned by not only SG Holdings group companies, but general users, the sales of new andsecond-hand cars and the fabrication of truck bodies, utilizing thebroad experience and know-how of road vehicles to answer theneeds of customers. The company’ s nationwide network constitutes
15 designated inspection factories, 6 certified maintenance factories
and 2 body fabrication shops throughout
Japan. As an example of the environmental
activities of SG Motors in the vehicle
business, the environment friendly truck
body, ECObody, was developed with theglobal environment in mind and more than
7,000 units in total have been put into service.

Outline of

Sagawa Computer Systems Co., Ltd.

SG Holdings GroupSG Motors Co., Ltd.

World Supply Co., Ltd.
World Supply recently joined SG Holdings Group in February 2009.
Its major business line is delivery service to department stores andmass merchandisers, product management and food delivery. Its
inclusion in the group allowed aconsolidation of delivery routes to
distributors. In addition, in the foodarea, the construction of a one-stop
distribution system to department
stores and mass merchandisers will
strengthen the distribution services of
SG Holdings Group further.

15

fOutline o
gs
in
ld
o
SG H
Group

Management Vision and Mid-termManagement Plan of SG Holdings Group

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

mid-term management plan

Construction of a business platform
which allows continuous growth.

Accruing earnings and profits ineach business fieldOn the path of stable growth.

SG Holdings Group’s
mid-term management plan
Scale of operation (Operating revenue/Profit)

SgH First Stage Plan
Basic policies

SG Holdings

Self-reliance for each company in the group
Construction of business platforms to enhance the strength of the delivery business
which is the main function of our group.
Building up the logistics business as the second pillar of our operation.
Through the growth and expansion of each company in the group and M&A activities,

B

A

D

we make efforts to establish the third and fourth pillar of our operation.
Other businesses

Dealing with the issues around the strengthening

Logistics business

SG Holdings

and fostering of human resources.

Delivery business

B

A

C

Other businesses
Logistics business

SG Holdings

Delivery business

A

B

C

Other businesses
Logistics business
Delivery business2007-2009 mid-term management plan

2010-2012 mid-term management plan

2013-2015 mid-term management plan

■Achievement of the second year of the mid-term management plan, SgH First Stage Plan
Though the number of couriers handled by Hikyaku Courier remained strong, the operating revenue almost remained at
the same level due to the impact of the economic recession etc. The business profit recorded a decline due to investments and expenditures toward the business term ending in March 2010 and the mid-term management plan of thenext term.
* Settlement report in March 2009: The operating revenue was 887.2 billion yen and the business profit was 22 billion yen.

Though both revenue and profit were sluggish in 2008 due to the impact of the economic recession, proactive investments for the basic policy of the current mid-term management plan, ‘Construction of a business platform whichallows continuous growth’ were continued, which allowed a handover to the basic policy of the mid-term management
plan of the next term, ‘Accruing earnings and profits in each business field.’

16

SG HOLDINGS GROUP Sustainability Report 2009

e ofutlin全
O安
ings
ld
の
o
SG Hへ
組uみ
p
りro
取G

Business Operations Data of SG Holdings Group

Number of employees (consolidated)(100 millionyen )(persons)

44,624

Outline of

SG Holdings GroupOperating revenue (consolidated)

44,000
9,000

8,894

8,872

42,040Efforts on safety

8,692
8,243
8,000

39,60940,0007,819

36,5927,000

36,941

36,000

0

’04

’05

’06

’07

’08

( fiscalyear )

Composition of operating revenue (consolidated)
Logistics business
547

’04

’05

’06

’07

’08

( fiscalyear )* Only domestic employees were counted until 2005.
After 2006, the number includes the employees at overseas subsidiaries.

Number of couriers handled (Sagawa Express)

Other businesses
558

society0

Relationship with

5,000

Efforts on environ-

32,000mental conservation

6,000( thousandpieces )1,100,000

1,028,496

1,049,383

1,061,099

993,094

1,000,000

943,228900,000

Delivery business
7,767

800,000

700,000(100 million yen)0

Current earnings (consolidated)

’04

’05

’06

’07

’08

( fiscalyear )

Number of vehicles owned (Sagawa Express)(100 millionyen )Including lightvehicles (vehicles)

500

30,00026,623
24,79425,000
400

347

362
20,000315

311

19,867

20,202

21,473300
15,000200

182
10,000

100

0

5,000

’04

’05

’06

’07

’08

( fiscalyear )

0

’04

’05

’06

’07

’08

( fiscalyear )

17e ofutlin全
O安
ings
ld
の
o
SG Hへ
組uみ
p
りro
取G

Overseas Operating Bases of SG Holdings Group

Now is the era called the “Times of Asia”, and SG Holdings Group supports the construction of distribution infrastructures in Asia and China (which are changing dynamically) with its extensive know-how accumulated in Japan.

9 Sagawa Express Vietnam

A
1
C

B
6

D

The company provides
integrated transport service
from forwarding to delivery
by trucks. They also havetheir own bonded warehouseand operate a distributive
processing business.

Korea
Japan

2 3
China

4
E

7

5

TaiwanPhilippines

108
9 Vietnam

14
Hawaii(U.S.A.)

12

13

Indonesia

1 Tianjin Poly-Sagawa International Trading Co., Ltd.
The main businesses are
trading and forwarding*1. The
company also operates
warehousing business at its
own bonded warehouse whichmainly stores metal components and automobiles.

2 Shanghai Dazhong Sagawa Logistics Co., Ltd.

18

Along with forwarding
as the core business,the company also
operates warehouselogistics, transport,
courier and relocation services.

6 Sagawa Logistics Korea Co., Ltd.
The main business is domestic transport in Korea,
covering all major cities. The
company also operates a
courier and forwarding
business centering on freightin e-commerce trading.

3 Shanghai Poly-Sagawa Logistics Co., Ltd.

7 Sagawa Express International Taiwan Corp.

The main businesses
are courier* 2 , forwarding and 3PL* 3 that are
customized to eachcustomer’s needs.

The main businesses areshipping, storage, marinetransport and courier service.
They also run a small lot pickup and delivery service
operation with their own
trucks in the Taipei area.

The main businesses are forwarding and the distributive processing business. The company has
operational braches at Beijing,
Dalian, Tianjin, Qingdao andGuangzhou.
A
B
C
D
E

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

The main business is thecourier service in the city of
Shanghai. Many of the parcels
they handle are mail order
goods so they also provide thepayment for delivery service.

4 Poly-Sagawa Logistics Co., Ltd.

Poly-Sagawa Logistics Co., Ltd. Beijing Branch
Poly-Sagawa Logistics Co., Ltd. Dalian Branch
Poly-Sagawa Logistics Co., Ltd. Tianjin Branch
Poly-Sagawa Logistics Co., Ltd. Qingdao Branch
Poly-Sagawa Logistics Co., Ltd. Guangzhou Branch

SG HOLDINGS GROGROUP Sustainability Report 2009

Distribution Service Co., Ltd.
The main businesses
are storage andwarehousing at thecompany-owned
21,000m2 warehouse, forwarding
and courier service.

Thailand
Malaysia

11

Singapore

10 Sagawa Express Thai Container

8 Sagawa Express Philippines, Inc.
Comprehensive and integrated
transport including delivery bytrucks is their main business.
The company has the ability tohandle extremely heavy cargo,such as building materials forJapanese ODA activities.

11 Sagawa Global Logistics (Malaysia) Sdn. Bhd.
The main business isforwarding. The
company is run by
local staff only andprovides communitybased services.

12 Sagawa Express Singapore, Pte. Ltd.
The main businesses
are forwarding andcourier service. Since
October 2007, they
have operated pickup and delivery on
their own.

13 P.T. Sagawa Express Indonesia
Along with forwarding
as its main business,they also operate warehousing and courier
service, etc., mainly forJapanese companies
around Jakarta.

14 Sagawa Express Hawaii, Inc.
The main business istransport operation ofsouvenirs bought byJapanese tourists.

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

Outline of

SG Holdings Group

Efforts on safetytyEfforts on safe

mental conservation

Efforts on environ-society

Relationship with

Safetycomes first before anything else. In order to accomplish this mission,

we drive human-friendly and eco-friendly.
As a business group which operates commodity distribution service using many trucks as its core business, we will accomplish themission of delivering ‘safety and security’ respecting the human life as the number one priority.
We will make every effort to assure safety by raising our drivers’ safety awareness, improving their driving techniques, conducting
thorough vehicle control, and cooperating with local citizens.

19

Features

S g H

M O V E S

For enhanced awareness and skills for safe driving
At the Central Safe Driving Training Center in Ibaraki
Prefecture, we found MASAHIRO ITO (Tokyo RouteBranch). In the 40th National Truck Driver Contest heldon 25th (Sat) and 26th (Sun) of October, 2008, hereceived the best prize, the Prime Minister’s Award in
the 11ton division in his first competition, to be recognized as the No. 1 truck driver. This prize was the resultof invisible “good luck” and “efforts”.

Truck Driver Contest held by Japan
Trucking Association one of ourown is Japan’s No. 1
Due to the heavy social responsibility for safe driving to be assumed by professional drivers, excellent driving skills
and good manners are required from each of them. In the National Truck Driver Contest, many drivers compete witheach other over those skills. The podium for the Grand Prix winner can be reached only through unrelenting effort.
In the company’s internal driver contest, Mr. Ito won
the 3rd prize in the 11ton division, and was awarded withthe 2nd prize in the contest sponsored by Tokyo Truck
Association. Under normal circumstances, he would not
be entitled to come to the National Truck Driver Contest.
However, since the Tokyo area champion of the 11ton
division bowed out of the competition due to the rule
which prohibits more than one participant from the samebusiness entity in one prefecture, he was brought forward
to get the entry qualification.

20

SG HOLDINGS GROUP Sustainability Report 2009

“I wanted to make use of the chance I received by anymeans.” Not having been awarded with the first prize led
to his stronger resolution to win. He secretly started toprepare hard for the National Driver Contest. The mostmemorable thing in the course of preparation for winningthe championship was the support from his colleagues,
boss, and family. During daily work, he learned skills
from senior staff. The boss, who is usually very strict andhard in the work, supported Ito in his training exceptionally.
“Carry on, dad!” Encouragement from his son,Haruto, three years old at that time, cheered him up morethan anything else. Still, his wife would send Haruto to
bed before Ito came home from work, in order to maketime and a good environment for his concentrated study.
Above all, Ito himself accumulated efforts without spoilinghimself in such an environment. “My colleagues andfamily supported me in an integrated manner. It is thanks
to their concerns and support that I could prove myself inthe contest,” says Ito.
When asked in the interview if he had already informed
the good news to the family after his winning the championship, he answered “Not yet. I will tell them personallywhen I come home.” His gratitude to his family wasevident in his voice. However, as he did not call his
house, his wife waited for him, contemplating hard how
to cheer him up, because she thought he was unsuccessful again. “I am so grateful for the warmth in theworkplace and at home, ”says Ito.
The face of Ito, who works hard everyday driving atruck, was full of pride as a professional driver who bearssocial responsibility of ‘Safety’.

End of May

Sagawa Express National Driver Contest

March – ApriRegional Office TournamentFeb. – April

Preliminary Rounds in branch offices●Knowledge test (450 points; 60 min)Answer sheet examination on the Road Traffic Act, Road Trucking Vehicle Act, andother driving-related common knowledge required for professional drivers.

2
Day

Announcement of the results!
We won the 1st prize in three divisions!

●Driving techniques test (350 points; 10 min for all the divisions)●D
A wide range of driving techniques is evaluated in course driving,
compulsory driving, driving operation, safety check, etc.

society

For thedsee ne etails,
xt pageJune – Sept Prefectural tournament

Relationship with

Inspection skills for securing vehicle safety are evaluated.
Speedy and reliable inspection will result in a high score.

End of October National Truck Driver Contest

Efforts on environ-●Maintenance & inspection test (200 points; 7 min for women / 4 ton, 8 min for 11 ton / trailer divisions)●Mamental conservation

1
Day

Efforts on safety

After that, they compete with participants from othertransport companies in the driver contest organizedby the Trucking Association of each prefecture. Only
those who received good results in 4 ton, 11 ton,
women drivers, or trailer divisions will get entry qualification for the National Truck Driver Contest.
In the National Truck Driver Contest, about 170
representatives compete with each other in different
divisions, and the champion of the division will get theaward of the Director-General of the Police Agency.
And the top one scorer of all the participants will
receive the Prime Minister’s Award.

Outline of

The National Truck Driver Contest is a big momentfor drivers who compete with each other over themost excellent driving skills in Japan. However, inorder to enter this contest, you have to get past many
barriers. Preliminary rounds are held across the country with more than 30,000 participants, where representatives of each branch office are selected. And
then, several hundred drivers participate in the
Regional Office Tournament. 70 excellent drivers are
selected among them to compete in the Sagawa
Express National Driver Contest. You have to compete
in as many as three contests just within the company.

SG Holdings GroupThe road to glory
was not smooth.

ontestTruck Driver C
Association
40th National
pan Trucking
Ja
e
th
by
d
re
sponso33 sales drivers who passed the preliminary rounds participated in the contest, and 11 of them became prize winners.
List of prize winners

11 tondivision

13th Prime Minister’s award
for the first time in 2 years[4 ton division]
Rank
1

BranchScore

Hiroyuki Takabatake Takamatsu

Name

980

2

Yuji Sakamaki

Iwatsuki975

3

Jun Sakurai

Kameoka970

4

Takashi Inoue

Saiki

970

Remarks
Police Department
Minister’s Award[11 ton division]
Rank

Name

BranchScore

Remarks
Prime Minister’s Award
Police Depar tment
Minister’s Award

1

Masahiro Ito

Tokyo Route985

3

Tetsuya Kobayashi

Sapporo970[Women’s division]

Masahiro Ito, Tokyo Route Branch
I had a series of difficulties in my study everyday. I
couldn’t have done it without the support from myinstructor and other people around me.

4 ton

Women

division

division

Dominating the top ranks!

Dominating for thesecond year in a row

Rank

Name

1

Hitomi Ashizawa

Score

Remarks

Josai

Branch945

Police Department
Minister’s Award

2
3

Konatsu Sugimoto

Higashi Osaka944

Mao Eguchi

Nagasaki

938

4

Tomomi Oishi

Kyoto Minami

933

5

Rie Murata

Takamatsu

920*No contest was held for the 2 ton division this time.
*The Award of the Minister of Land, Infrastructure, Transport, and Tourism was granted to Takamatsu Branch,
Tokyo Route Branch, and Josai Branch, respectively, to which the best scorer in the each division belongs,
while the Award of the Chief of the National Trucking Association was granted to all the prize winners.

Prize winners made a courtesy call on the Prime Minister Aso
On January 15, 2009, Thursday, the champions of each division visited the officeof the Prime Minister to report the result of the contest. Feeling the importanceof the victory, they now have a stronger sense of safety responsibility.

Hiroyuki Takabatake, Takamatsu Branch

Hitomi Ashizawa, Josai BranchWith enhanced awareness of the
speed and safety check, I am now
able to drive more safely than
before in my daily work.

The reason of my success was that I
could keep cool during the contest. I willcherish my experience and my colleagues
I learned with for the rest of my life.

Photo provided by the Japan Trucking Association

21

On May 30th (Fri) and 31st (Sat) of 2008, the Sagawa
Express National Driver Contest was held at thee driving
school of Sagawa Express Training Center in Kanagawa
awa Prefecture. 70 drivers in total selected from all over the countrycompeted with each other in the fields of knowledge
edge onsafety, driving techniques and skills of daily inspection
ction ofvehicles. In this contest, a
new division, ‘Instructor
Division’ was newly provided, where instructors
engaged in training of
new drivers compete witheach other over leadership ability. Now, it’s time
for a fair battle.

Tight 1 precise
competition

Every year, even a small difference in the score results in a big difference in the ranking. All the participants are desperate to do their best in order to get even one point more. In ‘compulsory driving’ in thedriving technique test, many points may be taken off, if the gap between the vehicle and an installed object
is excessively big. Also the referees measure the distance to an accuracy of a millimeter.

Knowledge test (400 points)

Driving test (400 points)
Participants are evaluated whether they can perform safety checks and driving operationsppg &according to the traffic rules and operation
manual. With some importancelaid on ‘ecologic
safe driving’, a new check item
em has been introduced to measure fuel consumption. In addition
to normal driving,
driv a parallel parking test is carried out as a compulsory driving test item. This isa test where competitivenesscs is measured in
the deviation from the reference
nce values of the
distance from the vehicle bodydy to the objects
in the back andan both sides, respectively.

100 questions are asked related to the Road
Traffic Act, driving control, structure of the vehicle,
e’ or ‘false’.
etc. which should be answered with ‘true’
or a precise
There are also difficult questions asking forre tested.
value, so your memory and knowledge are

Inspection test (200 points)
A vehicle with some defects is inspected tosee if all the defects can be found within thetime limit. It is especially difficult todetermine whether
the air pressure in
the tire is right ornot, by hammering
the tire.

Total scorech
I was cheere ampion!
encouragem d up by theent from my sons!

Prize-winning groups
Rank

Name of the group

Prize-winning individuals
Score

Champion

Kansai Area

Average 938.89

2ndTohoku Block

Average 930.50

3rd

Kyushu Block

Average 923.25

Division

4 ton division
11 ton division
Light vehicle division

22

SG HOLDINGS GROUP Sustainability Report 2009

BranchScore

Koyaguchi

960

Selected from the top scorers in 2, 4, 11 ton divisions

1

Yoshihiro Hosono

Ichinomiya

960

2

Shunji Takebe

Kanawaza955

3

Teppei Shiraishi

Higashi-osaka

955

4

Kosuke Nagata

Yatsushiro

951

5

Motoyuki Kasai

Shinjo946

1

Yusuke Yamada

Koyaguchi

960

2

Takuya Okada

Nara

957

1

Shinya Sekizawa

Toyota953

2

Koji Kurosawa

Tohoku Route943

1

Konatsu Sugimoto

Higashi-osaka

965

Naoko Fujioka

Furukawa

942

1

Shinya Yoji

Himeji

916

2

Yoshiichi Nakajima

Aomori915

1

Koji Kurosawa(11ton)

Tohoku Route943

2

Takahiro Kuroda(LV)

Miyazaki

Eco & safe
driving div.

1

Hiroyuki Mizogami (11 ton) Konoike Center

2

Masahiro Ito (11 ton)

Special award(ladies)1

Yuko Takabatake (2 ton) Tokyo

2

Megumi Sekito (LV)

Rookie division

Group champion: Kansai Area

Name
Yusuke Yamada

2Instructor division

Yusuke Yamada, Koyaguchi Branch

Rank

Overall

2 ton division

I could win because I have been doing
my best from the preliminary round. I
thank many people who have supported
me. Especially, encouragement from myfamily.

We will not lose in theated battle for safety!
heateda Express
16th Sagawt
ver Contes
National Dri

Tokyo RouteKurashiki

936
999
998
925
912

EffortsonsafetyScheme to Enhanced Safety◎Diagram of the safety management organization * Since May 1, 2009
Voice of the field /feedback of opinion

Board of directors

Order / instructions

society

Review meeting for safety
promotion activities

Relationship with

Regional Office Managers’ Meeting

Safety promotion meeting

Efforts on environ-

Safety Conference

mental conservation

Safety Measures Committee

Efforts on safety

Giving the top priority in its business management to assuringsafety, Sagawa Express has established a Safety Measures
Committee. In October 2006, transport safety management rules
were legislated by the Trucking Transport Business Law for the
purpose of ‘improvement of the transport safety.’ The committee
was set up for this purpose prior to the legislation in 2003.
The director in charge serves as the chairman, while corporate
officers, branch office presidents, CEO of the group company
that performs actual transport works, and other executives serve
as vice chairman and committee members constituting the committee. The committee holds a monthly safety conference, where
the progress of safety campaigns are reported and various measures are discussed for assuring safety from the viewpoint of
hardware as well as software. Also, review meetings by the
persons in charge of safety promotion activities at branches are
regularly held to improve safety measures, reflecting mainly
opinions from the frontline.
As part of the safe driving management organization, we also
assign safety promotion staff at every branch. Those staff members work mainly on safety driving management in arranging agood working environment for drivers through smooth two-way
communication.

Outline of

SG Holdings Group

Safety management organization

Review meeting for
personnel and labor affairs

Review every safety-related issue

Meeting of branch managers

Regional
OfficeBranch Manager

Safety promotion meeting

Vehicle maintenance administrator
Branches

Vehicle operation administrator

DriverImprovement of safety with a license system◎Education flow of new recruit drivers
Regular attendance
12 month attending instruction(Ongoing driving duty test)

Follow-up
period with an
SD Instructor

6 month attending instruction
3 month attending instruction
1 month attending instruction
SD's graduation certifying training
Pick up and delivery duty test

Instruction
period with an
SD Instructor

Solo driving duty test
Attending instruction
Attending instruction starting test

* As of March 20, 2009

Tests conducted by a Safety Drive Supervisor

We have the ‘Sagawa License System’ to educate and certify
excellent drivers and instructors. As for those relating to safety,
there are two licenses; SD Instructor and Safety Drive Supervisor.
SD instructors are selected from the employees with detailed
work-related knowledge, and those who have sufficient knowledge, skills, and leadership and have passed the test are certified
as SD Instructors to be in charge of the education of new recruit
drivers on the on-the-job training. Safety Drive Supervisors are
selected from administrators and veteran drivers, and those whohave judgment ability in addition to professional knowledge andskills are certified as Safety Drive Supervisors to assume an
important role to judge whether a recruit driver is ready for independence on the job.
We enhance the human resource education system by separating the education and certifying functions. At present we have
9,029 certified SD Instructors and 2,172 Safety Drive Supervisors.

Basic education for safe driving
Basic education for new recruits
Company orientation
Certificate of SD
Instructor License

Certificate of Safety
Drive Supervisor License

Pre-employment education(SD = Sales Driver)23

EffortsonsafetyEfforts on Eco Safety Drive

Promotion of Eco Safety Drive
Sagawa Express has set out ‘7 Points for Eco Safety Drive’ as angear change are also included in the requirements. These efforts will

effort to assure safety and eco-friendly driving. The principle of ‘Ecolead to a reduction in fuel consumption in addition to safety and

Safety Drive’ is, first of all, driving without making any jackrabbit

environmental merits, bringing us a significant cost saving. In order

starts or crash stops. In addition, observation of an upper limit in theto implement ‘Eco Safety Drive,’ administrators and instructors wereengine evolution speed for startup and during driving, as well assolicited to take part in special training. In 2009, we started ourenhancement of the driving techniques related to the timing of theefforts in an “Eco Safety Driving Campaign,” with the goal of a 5%
decrease in fuel consumption from the previous year.

◎Example of Eco Safety Drive

Implementation of softer acceleration, “e-start”

Since much fuel is consumed at the time of startup and acceleration whendriving parcel delivery, the most important issue in Eco Safety Drive is operation
at startup. Stepping on the gas pedal softly is the deciding factor.
Keep a safe distance
between the two cars

If you step on the pedal only softly at startup, the inter-vehicular distancebecomes longer, allowing greater safety.

Early shift up

Usual start that emphasizes acceleration

By shifting up earlier, the throttle opening in acceleration
becomes smaller, which in turn leads to shorter braking
distances*.
* The distance a vehicle will travel from the point where its brakes areapplied to when it comes to a stop.

SecondThird

FourthFifthSecondThird
FourthFifth

Gentle driving with fuel saving start/acceleration
SecondThird(1) Softer acceleration, practice of “e-start”(2) Earlier shift up

FourthFifth

In 2008, five Eco Safety Drive training courses were organized in which 154 employees participated.

24

SG HOLDINGS GROUP Sustainability Report 2009

Outline ofEfforts on safetymental conservation

Efforts on environ-society

Relationship withSince 1997, Sagawa Express has campaigned for Idling
Stop, one of our ‘Seven Points for Eco Safety Drive,’ by making
it a rule to remove the ignition key (i.e. stop the engine) whenparking. Every time when leaving the car for delivery or pick up,
or when loading or unloading the parcels at stations, the drivershould pull out the ignition key to stop the engine.
Idling Stop reduces fuel consumption and contributes to the
reduction of tailpipe emissions that contains CO2, NOx*1, PM*2,
etc. In our calculation, when all of our vehicles implement Idling
Stop for two hours a day, we can reduce CO2 emission by 30
thousand tons a year (with the conversion rate of 300 days ayear), as well as saving 1.37 billion yen in fuel costs.

SG Holdings Group

Contribution to the reduction of tailpipe emissions with Idling Stop campaign

The driver is wearing a key chain.

*1 Nitrogen Oxide. Air contaminant which causes photochemical smog and acid rain.
*2 Particulate Matter. It is considered the cause of asthma and bronchitis.

■Seven Points for Eco Safety Drive
We have set up ‘Seven Points for Eco Safety Drive,’ a listof the seven most important items in Eco Safety Drive,
namely: Practice of softer acceleration, “e-startup,” Shift-up
operation well in advance, Driving at a constant speed inaccordance with traffic conditions, Keeping a safe intervehicle distance, Utilization of the engine brake by releasing the gas pedal in good time, Strict enforcement of key
pulling out (to stop the engine) when parking, and Daily
inspection / servicing and tire air pressure control. These
are also included in the employee’s handbook to enlighten
all our employees.
We also utilize an educational video, a Practicing Manualof Seven Points for Eco Safety Drive, for training at eachbranch, as an attempt to spread the idea to all employees.
Educational poster

Training facilities
Sagawa Express operates four practical training
facilities complete with driving grounds in the Miyagi,
Kanagawa, Aichi and Kagawa areas for the purpose ofthorough education and training of our drivers. For
driving lessons, the training ground reproduces theactual city streets, including a blind intersection etc., toconduct effective education for assuring traffic safety.

Sagawa Express Toyohashi Training Center

25

EffortsonsafetyEfforts on Safety by Vehicle Servicing
and Safety Devices

By performing rigorous vehicle inspections and maintenance, we are working to reduce traffic accidents
SG Motors Co., Ltd., which assumes the servicing workof all the vehicles owned by SG Holdings Group, is trying
to eradicate accidents caused by improper maintenanceby performing rigorous inspections and maintenance.
Good maintenance and strict inspections also leads to the
reduction of environmental load.
Daily inspections conducted by the drivers, 3-monthinspections and 12 months inspections according to thevehicle maintenance plan and other standardized inspection and maintenance works are conducted without fail.
The progress of the repair status of the vehicles that havebeen recalled by the manufacturer is properly controlled
to support the safe driving operation of more than 26,000
vehicles.

◎SG Motors vehicle servicing network
Head Office
BranchMaintenance factory

To prevent traffic accidents, Driver Recorders have been introduced
For safe driving, the awareness of each driver is essential
in addition to the enhancement of the driving techniques. In
order to make more effective safety driving instructions,
Sagawa Express has introduced Drive Recorders (a driving
recording device). The objective evaluations of driving withthe drive recorder has enabled us to know the driving traits
of individual drivers, which is especially useful for fairappreciation of the driving of exemplary drivers.
The Drive Recorder equipped on a vehicle evaluates thedriving operation with a point rating method in five different
fields. With this we can know each driver’s traits andinstruct them properly to overcome any weakness.
Because the driving is rated with points, the drivers makeefforts more actively on safe driving to get a higher score.
We have also improved the driver recorder in cooperation
with the manufacturer. The evaluation results, which could
be checked only in the relevant branch office earlier, can be
now observed from the head office and regional office.

On-board instruction

Driving directory
utilizing Drive Recorder

Utilization of Drive Recorder■Utilizing ‘Hiyari-Hatto’ (frightened/surprised by an incident) experiences for safety education
Do you have ever experienced a chilling moment during
driving in which you said to yourself later, “That was very
close!”? Sagawa Express utilizes various video pictures
recorded by the Drive Recorder for driver education. Video
pictures of such dangerous moments are not only playedon the screen in branch offices, but also utilized in the training course or as a theme of discussion in small groups inorder to deepen the understanding of risks during driving.

26

SG HOLDINGS GROUP Sustainability Report 2009

Driving diagnosis result chart‘Hiyari-Hatto’ video
recorded by Drive Recorder■Nationwide Simultaneous Safety Patrol for Arterial Transportsociety

Date

Relationship with

◎Results of the Nationwide Simultaneous Terminal Inspection for Arterial Transport (2008)

Efforts on environ-

For the purpose of maintenance and enhancement of the transport quality
by preventing traffic accidents and vehicle troubles during arterial transport, we
conducted “Sagawa Express Nationwide Simultaneous Terminal Inspection for Arterial Transport” onJune 30 and December 1, 2008. At all bases of
Sagawa Express, the branch managers and administrators, including
those from subcontracting companies,
conducted vehicle
checks for daily inspection before departure. A scene at the inspection The poster announcing terminal inspection

mental conservation

In ‘Sagawa Express Nationwide Simultaneous Safety Patrol for Arterial Transport,’ we make an interim roll call of drivers who are engaged in arterial transport,
mainly in the service and parking areas of key highways. For the purpose of
preventing traffic accidents and vehicle troubles by providing physical and mental
refreshment to drivers as well as inspection and maintenance of the vehicle, wehave been performing this patrol twice a year in spring and autumn since 1994.
In the spring patrol held on April 11 – 12 of 2008, the checking was
conducted at 43 locations, including the service areas and parking areas of the
key expressways all around the country and at a number of our branches. As
many as 829 vehicle operation administrators and service managers, not only
from Sagawa Express but those from subcontracting companies bearing ourarterial transport, checked the physical conditions of
the drivers and encouraged safety driving.
As a part of the environmental conservation
activities, we also conducted cleaning activities at
those patrol locations to
express our gratitude forsupport to our business
operation.

■Nationwide Simultaneous Terminal Inspection for Arterial Transport

Efforts on safety

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

Outline of

SG Holdings Group

Ensuring safety of arterial transport

Total number of inspected vehicles Number of defects foundJune 30, 2008

5,555

83

December 1, 2008

5,633

43

■Safety Seminar for the Arterial Transport Subcontracting Companies
On July 7, 2008, a seminar entitled ‘The Safety Measures in Arterial Transport’
was held for the management of our arterial transport subcontracting companies, and lecturers from the Ministry of Land, Infrastructure, Transport and

The poster announcing safety patrol

Tourism and Shibaura Institute of Technol-◎Records of the Nationwide Simultaneous Safety Patrol for Arterial Transport(FY 2008)

ogy were invited to give speeches. 307

A scene in the patrol

Date

Total number of inspected vehicles Number of defects found Number of participating inspection staff

April 11 – 12, 2008

3,480

25

829

Sept. 5 – 6, 2008

3,314

17

858

participants from 290 subcontracting
companies learned about the various efforts
on safetysand exchanged their opinions.

Opening of state-of-the-art automobile maintenance facilities.

A scene in the seminar

Voices of facility managers
Confidence and trust of the customers are generated from beautification：

SG Motors Co., Ltd., which assumes servicing works of all thevehicles owned by SG Holdings Group, has relocated and expanded
its maintenance facilities in Sapporo city and Takamatsu City. The
new factories opened on Dec. 21, 2008 in Sapporo and on Jan. 21,
2009 in Takamatsu.
The two factories were designed with the concepts of ‘Safety,’‘Environment,’ and ‘Efficiency,’ and the total floor area has been
almost tripled.

What all of our employees are trying to do isto keep our facility always clean and tidy sothat our customers will appreciate it every
time they visit us. We will do our best to gain
the confidence and trust of the customers inmaintaining the facility clean and tidy.
SG Motors Co., Ltd.

Hitoshi Ishino,
Facility Manager of Sapporo Branch

Trying to be an eco-friendly factory:In the Takamatsu Branch, we accumulate andpurify rain water to use it for washing the lower
part of vehicles and for flushing the toilet. Filthy
water from the factory is treated in a chemical
processer with a biodegradation system todischarge it as clean water. We always makeefforts to be an eco-friendly factory.

SG Motors Co., Ltd.

Masashi Ryu,

Facility Manager of Takamatsu BranchAppearance of Sapporo BranchAppearance of Takamatsu Branch27

EffortsonsafetyLooking to a Safer Society

Sagawa Express Traffic Safety School preserves the smiles of children“We want to protect children from tragic accidents.”
Since 2003, we have been organizing Sagawa Express
Traffic Safety Schools all over the country to make acontribution to traffic safety education. In the traffic schoolfor kindergarten and early elementary school children, weteach them how important it is to observe traffic rules. In
addition to teaching them the basic traffic rules, such as
how to cross a crosswalk and the meaning of traffic signals
and traffic signs, we make all kinds of efforts, like letting
them experience the blind spot of a truck using an actual
vehicle. In fiscal year 2008 (March 21, 2008 – March 20,2009), 789 such traf fic schools were held with theparticipation of 113,243 children.
Our traffic safety school is receiving a high evaluationfrom educational associations, PTA, and persons from thepolice authorities because of our meticulous teaching
method takes the children’s viewpoint into consideration.
The drivers also actively take part in the schools toreaffirm their safety awareness through contact withchildren. In 2008, 2,166 drivers participated in this program
and learned a lot in a joyful day spent with children.

■Messages from children
We often receive messages from kindergartens and primaryschools in which we have held a traffic safety school, in theform of a sweet picture or message of “Thank you for teachingus!” It goes without saying that the safety awareness of ouremployees is enhanced further upon receiving them. They feelanew how heavy their responsibility toward safety is.

We received a lot of sweet messages.

A scene in the Traffic Safety School◎Records of Sagawa Express Traffic Safety School (Fiscal Year 2008: March 21, 2008 – March 20, 2009)
Kindergarten & nursery Primary school Junior high school
Number of traffic schools

28

495

SG HOLDINGS GROUP Sustainability Report 2009

212

19

High school
3

Others
60

Total
789

◎Component rate of the victims of each age group (2008)15 years old and below

2.5%

16-24 years old 10.7%

Forties

8.1%

Fifties

11.0%
6.9%

60-64 years old

Traffic Safety School for Senior Citizen

Source: National Policy Agency

society

8.2%

Relationship withThirties

Efforts on environ-

48.5%

4.1%

mental conservation

65 years old
and above

25-29 years old

Efforts on safety

According to a report by the National Police Agency,
nearly half (48.5%) of 5,155 people killed in traffic accidents
in 2008 were senior citizens aged 65 years and above. The
number of aged people killed in traffic accidents has beensteadily increasing since 1975, while that number isdecreasing in other age-groups. In addition to the Traffic
Safety School for young children, Sagawa Express also
hosts the same kindof school tailored tosenior citizens in various regions.

Outline of

SG Holdings Group

Traffic Safety School for senior citizens

Traffic Safety School --- Voice of a staff ---I learn from children while teaching them in Traffic Safety School“Today, a big truck came to the nursery school. They said I
cannot go near it because it’s dangerous and I may get hurt!
So, don’t go near it, mummy! You may get hurt!” said thechild.
The other day, I heard such an episode when I had an
opportunity to talk with a parent of a child whom I taught inTraffic Safety School in a nursery. I was happy to hear that thechild reported what he had learned in Traffic Safety School to

his family. I was further more impressed that, through theschool, the children felt the importance of life and cared for
his family.
It was also a good opportunity for me, who is engaged in atransport-related job everyday, to renew myself in reviewing
the importance of life and safety. I will cherish this feeling in
future and keep working with pride.
Sagawa Express Yamanashi Branch Safety Promotion Section Hitomi Sumino

Traffic Safety School --- Voice of a kindergarten teacher ---In order to protect safety of the children
In the former kindergarten where I worked, I experienced a traffic safetyschool, but it was organized by a different company. Only after I came tothis kindergarten, I have come to know that Sagawa Express is promoting
such an activity. When I requested Sagawa Express to organize a traffic
safety school for the first time here, I was surprised at the meeting to see
how meticulous the schedule and curriculums are. To tell the truth, I did
not think they were dedicated in Traf fic Safety School so much. The

actual experience further surprised me. They knew very well that smallchildren cannot understand verbal explanations ver y well, so they
conducted presentations with an actual vehicle to make them understandby seeing, hearing, and experiencing. This method impressed me somuch. Now I know why our kindergarten asks Sagawa Express every year
to hold the Traffic Safety School. I hope these activities are promoted in
the future for the safety of children.

A scene in Traffic Safety School

29

Branches’ efforts on safety
As an achievement award regarding safety, Sagawa Express set up
the Continuous Accident Free Award scheme for our branches. ‘Continuous accident free’ is calculated by the number of vehicles thatbelong to the branch multiplied by the continuous days without accidents; that means, the results of the concerted efforts of all the branch
employees on safe driving are evaluated. Through such efforts, The
Santama Branch of the Kanto Regional Office achieved 50 thousand
continuous accident free days on January 20, 2009.
In the Santama Branch, each group prepared its own unique posterthat showed their enthusiasm for avoiding accidents. They raise theawareness of “no accident and no violation of regulation under any
circumstances” by creating posters that show how you yourself andyour family might be affected by an actual traffic accident. The strong
feeling of togetherness generated from working together on this activity
also contributed to the continuation of no-accident days.

◎58 branches without any accidents in the year
Sagawa Express
Regional Office

BranchKyushuMinami-Fukuoka, Omuta, Goto, Izumi, Minami-Satsuma,
Oshima, Nago, Hyuga

Chugoku & Shikoku

Imabari, Suzaki, Aki, Takahashi, Sanyo, Mihara,
Hamada, Yamaguchi, Chugoku RouteKansaiAkashi, Gose, West Japan Hub Center Route, Mineyama

Chubu

Kurobe, Owase, Ise, Izu, Chubu Route

Kanto

Iida

TohokuSukagawa, Kitakami, Kamaishi, Shimokita,
Goshogawara, Tohoku Route, Oomagari Route,
Aomori Route, Hachinohe Route

Hokkaido

Kucchan, Asahikawa, Nayoro, Fukagawa, Nakashibetsu,
Kitami, Monbetsu, Wakkanai, Shizunai, Iwamizawa

Sagawa Global Logistics
Haneda, Sendai, Chitose, Nagoya, Nagasaki
Sagawa Moving Center
Tohoku, Tokyo, Santama, Yokohama, Nagoya, Fukuoka, Kobe
Conditions: (1)Branches that achieved “no accident” in the year from Mar. 21, 2008 to Mar. 20, 2009. The definition of accident is
as per the criteria of Continuous Accident Free Award.
< Continuous Accident Free Award>
All the accidents including those of which loss is not registered in the accounting, but excluding the followings:- Accident involving only the company vehicles (and the branch facility) that occurred within the premise of the
branch and of which loss is 10,000 yen or less.
- Accidents of a private car, folk lift, or carriage car shall be accounted for only in case of a middle or high level
accident causing injury or death.

The Assessment Audit for Transport Safety Management by the MLIT
The Assessment Audit for Transport Safety Management by the Ministry of Land, Infrastructure, Transport
and Tourism (MLIT) was conducted on October 20-21,
2008. After the evaluation, we received high evaluation
marks in the following areas: (1) Tracking, verification,and review of fulfillment of important measures and policies for safety; (2) Collection, classification, arrangement, evaluation and analysis of accident-related infor-

mation and implementation of measures to prevent
recurrence; (3) Implementation of training in assumptionof a serious accident and verification of the accident
reporting system based on the result; (4) Improvementof the system for education / training of on-site technicalstaff based on the training review.
We will continue to work on the improvement of safety
awareness and further promote our efforts.

Certified as a Business Institution of Excellence in Safety
Sagawa Express, Sagawa Global Logistics, andSagawa Moving Center were certified as BusinessInstitutions of Excellence in Safety for their 328
branches (as of Mar 20, 2009) by an entity conducting
a National Trucking Rectification Operation. The purpose of this certification scheme is raising safety
awareness in the whole transport industry and making
it possible for customers to choose the best compa-

30

SG HOLDINGS GROUP Sustainability Report 2009

nies in terms of safety. We
will continue to makeefforts to receive a highevaluation.

Certification logo mark of a BusinessInstitution of Excellence in SafetyOutline of

SG Holdings Group

Efforts on safety

ental conservation
Efforts on environm

mental conservation

Efforts on environ-society

Relationship with

We will exercise wisdom forenvironment
protection. We will cooperate with society.

And we will make efforts for beautiful skies.
To preserve clear skies and beautiful earth forever; the destination of our trucks driving all over the country should be a wonderful
future not decimated by air pollution and global warming. We will make every effort for environment protection, the common task of
the human-being, with all our might as a business group, with aspects of hardware (physical side) and software (education /enlightenment).

31

Feature 1

S g H

M O V E S

Tackles the environmental conservation issues with unique ideas“I want to make some
contribution to CO2
reduction, but don’tknow what I can do. I
want Sagawa Express to formulate a way so that
we can make a contribution through utilization of
Sagawa’s service.” We have been receiving such
opinions from many participants in the SAGAWA
stakeholders’ dialog held every year. Since we hearthat many of our customers have a similar opinion,
particularly among housewives in their thirties andforties, we have created a mechanism in which

Service devoted to CO2
reduction hand-in-hand with customers
consumers can take part in CO2 reduction.

How to reduce the influence on global warming; this is the highest-priority task that SG Holdings Group isfacing. We will make every effort to produce valuable services in order to tackle this issue hand-in-handwith our customers, not to mention raising the environment awareness of individual employees.
The concept of “Do something for ecology” is increasingly appreciated in society. Besides, it surely is a theme that SG
Holdings Group should focus on from theview point of CSR. Therefore, we havecreated a system where the emission
credit equivalent to the CO 2 emission
related to the transport of one parcel(346g) can be automatically contributed
Plaque commemorating purchase of
CO2 emission rights of 10,000t from
Sumitomo Mitsui Banking corporationby the customer and Sagawa Express,
respectively. This ecologic activity inwhich our customers can participate has alreadycontributed to CO2 reduction of 95 tons (as of April 20,2009). We think this service will receive higher andhigher expectations as the first service in the industry
that enables our customers to contribute to ‘Team
Minus 6%’ for global
warming gas reduction.
Another new item isthe eco campaign inutilization of the ‘Parcel
Delivery Eco Point.’ Through the campaign for reduction of the environmental load due to re-delivery, we
could reduce excessive CO2 emission together with
the number of re-deliveries. Environment-friendly
32

SG HOLDINGS GROUP Sustainability Report 2009

logistics hand-in-hand with customers; this challenge
has only just begun.

Driver

Delivery

SagawaExpress

Customer

Bears thesame amountTransfersociety

Japanese
Government

Relationship withCounted in
Minus 6%C 2 emissCOemissioni ionrightsequall torights equa
the totall
paid
amount pa
aid

Efforts on environ-

The 10 thousands
tons of emission rights
owned by Sagawa
Express

mental conservation

The customer bears
the price of emission
rights equivalent to
the delivery-related
CO2 emission (346g)
per parcel.

Efforts on safety

In this service, if a customer chooses ‘Hikyaku Courier with
CO2 emission credit’ as a delivery method when purchasing agood in mail order shopping, the customer will bear a part ofthe price of CO2 emission credit, while the same amount isborn by Sagawa Express and the mail order company, and thetotal amount is transferred from the CO2 emission credit owned
by Sagawa Express to the national project for global warminggas reduction, ‘Team Minus 6%’.
The purpose of this system is to encourage contribution fromthe consuming public to Japan’s emission reduction commitment of 6% as stipulated in the Kyoto Protocol as much as
possible. The consumer public, mail order businesses, andlogistics businesses work hand in hand in this system. The
service started to answer the needs from our customers who
say that “we want to contribute to the national campaign asconsumers, but we do not know how to join.”

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

Outline of

CO2 reduction of 346g per parcel!

■Mechanism of the service

credit’SG Holdings Group‘Hikyaku

O2 emission
Courier with C

What is an emission credit?
The meaning of an emission credit differs depends on the
country or usage. One of them refers to the right to emit acertain amount of greenhouse gas that is traded based on the
result of a CDM (Clean Development Mechanism) projectapproved by the United Nations. The involved parties here area developed country at one side and a developing country at
the other side. The developed country makes technicaltransfer or investment in projects, which lead to advance intechnology and employment creation in the developing
country. As the fruit of such projects, the emission right iscredited to the developed country’s account.

More than 11,000 parcels delivered since introduction on the Belle Maison Net!
SENSHUKAI Co., Ltd. (head office in Kita-ku, Osaka)
has introduced ‘Hikyaku Courier with CO 2 emission
credits’ as a delivery service system for its online shopping site, “Belle Maison Net”, on September 1, 2008.
Within only one month after startup, as many as
11,773 parcels were sent out using this courier service
with the CO2 emission right. This corresponds to theCO emission rights of about 11 tons.

Something good happened
thanks to the saved point!

ecological!”“ECO is good”
the first delivery is
in
s
el
rc
pa
ng
vi
ei
Campaign of “RecAs one of the participating companies in the national campaign “Supporting 1kg of CO2 reduction per person per day,” we conducted theabove campaign from Nov. 21, 2007 to Mar. 20, 2009 as an effort to
reduce environmental load generated by redelivery. The concept is; themore customers receiving the parcels in the first delivery, the less CO2
emissions generated, because we do not need to deliver goods again.
To a participating customer, 3 points were given if the parcel wasreceived with the first delivery, and 1 point for redelivery. The collected
points could be exchanged with free bonus gifts. With 1,848 customers
participated in total, the campaign could reduce redelivery by 3,696
parcels, resulting in CO2 reduction of as much as 639kg. This volume isequivalent to about 63,900 soccer balls.
We will continue to expand the circle of the environmental activities
through various customer-participation type services.

■Flow of the campaign(1) Ask for a card in advance.

My Challenge Declaration Card

Stamp Rally Card

http://www.team-6.jp/

http://www.sagawa-exp.co.jp/(2) Present the card
at the point of delivery.
First delivery: 3 points
Redelivery: 1 point

33

Feature 2

S g H

M O V E S

Creating the future with rich natural environment in cooperation with the local community
In Kochi and Tokushima Prefectures in the
Shikoku Area as well as in Hachioji of Tokyo, SG
Holdings Group owns forests with the total areaof about 750 hectare. Many of you might find it
surprising. ‘Sagawa’s Forest’ in Kochi Prefecture
is properly cared for by Sagawa Ringyo Co., Ltd.
There, wee conduct environment training onservation, providing the participants
forest preservation,
ortuniwith opportunities to havee closeinteractio
on withinteraction

Revitalization of healthy Satoyama
full of learning and playing opportunities
nature.

A scene in the environment education for children

Another essence of the environmental measures beside reduction in environmental burden is to maintain andrecover a healthy ecological system and to enjoy its benefits. That means harmonious coexistence of humans andnature. SG Holdings Group thinks we have to promote both of these approaches in order to make a contribution tosustainable development in the real sense of the term.
As forf “Takao“
Forest” in Hachioji, preservation activities are
performed as a matter of course, to keep it as a property thatcan be shared with the citizens; but it is not all. Specifically,
we conduct a survey on CO 2 absorption amount, plants,
animals, and other natural resources, introduce state-of-theart technologies for prevention of global warming, and organize collaboration projects with the citizens, NPOs, universities, and governments. As a new model of forest utilization,
we are making efforts to recover Satoyama woodlands (i.e.
forest or woodland which is deeply associated with the life of
the local people), in pursuing a unique management system
and new possibility. A “Takao 100-Year Forest” project has
been started in the fiscal year 2007 there. With a dream that
this forest would become a healthy Satoyama someday, wemove forward steadily step by step in preparing a necessary
forest management plan and organizing practical trainings
and interaction events there.

In order to preserve the rich global
environment to hand it to the next
generation, we want to make use ofvarious environmental resources inand around the Takao 100-Year Forest.
We think this is our commitment as aunique CSR management, while such
34

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A scene in tree
thinning experience

activities themselves will enhance thevalue of our group.

ct
r Forest Proje

Takao 100-Yea

society

Description of the operations

Relationship with

From the viewpoint of maintenance of forest timbervolume, maintenance and improvement of the carbon
fixation function, and preservation of biodiversity, we
have classified the forests into the following zones todesignate them as forest management areas:
1. Artificial groves of Japanese cedar and Japanesecypress
2. Bamboo grove
3. Quercus and sawtooth oak brushes
4. Grove to be transited to natural vegetation consisting of different kinds of oak trees
5. Groves on both sides of small streams with spring
ephemerals like Ichirinso
6. Dwarf forest at the hill crest with potential naturalvegetation

Efforts on environ-

Designation of the Management Areas

mental conservation

In order to prepare a long-term forest management plan, we have executed surveys on the forest resources as well as plants andanimals, especially precious species such as the Tokyo Salamander and Ichirinso (Anemone Nicoensis) as a symbol of coppice formation.

Efforts on safety

SurveyOutline of

The stage of this project is a hillside with the area of about 100 hectare at 200 – 500m elevation, with a view of the Kanto Plain at its eastside. This area is also well known as ‘Ura Takao.’ It is located near (about 4km northeast) the dominant peak of Meiji Forest & Takao
National Park, Takao Mountain. Being covered with small groves producing a lot of materials for firewood and coal as well as with manmade groves, it has traditionally been used as a so called Satoyama, a place that is closely related to the living of the local people.

SG Holdings Group

Aiming to be a global model of forest formation
This is what the Takao 100-Year Forest Project is!

Monument commemorating the project activity

Two different kinds of operations are conducted in the forest; operation for preservation, recovery and utilization of the forest and operation for making use of its healing effects:
Preservation,
recovery andutilization of the forest(Use of the forest space)

Making use of
the healing effects ofthe forest space- Underbush clearing, pruning, thinning, maintenance of the walkways, and other preservation and management works, including anti-pollen-allergy measures.
- Utilization of the forest (use of biomass such as wooden pellets, fostering of volunteers for forest bath forthe elderly persons, assistant rangers in national parks, and leaders in nature education & play parks, etc.)- Nature school activities (trekking, camping, environmental education for children, etc.)- Employee training using the forest base and periphery facilities- Skill/qualification training for youth using the forest base and periphery facilities- Qualification training of aroma therapist, forest therapist, etc. as well as curriculums for additional job opportunities for university students, rehabilitation curriculums for NEETS, extra
classes of schools & cram schools using the forest base and periphery facilities- Culture schools using the forest base and periphery facilities, such as woodworking classes,
pottery classes, concerts, etc.

Three concepts provide a fresh breeze into forest formation
1. Long-term conservation & utilization for prevention of global warming
Promoting forest conservation with new technologies, including robots and remote control techniques,
while introducing state-of-the-art technologies for prevention of global warming, such as use of biomass

2. Fostering of youth who will be major players in the next generation
Creating opportunities in which young people can be actively engaged in forest formation, by granting
qualification or a credit for graduation of universities when the young people participated in practicalworks in forest conservation, or by using the forest as a space of employee training

3. Organization consisting of businesses, citizens, and government
Adopting the ‘Civil Trust (ground work)” system for forest, nature and environmental conservation; it is asystem born in England in which devastated fields and mountains are recovered and preserved incollaboration of the industry, government, academia, and citizens

I expect a lot fro

m this pioneering approach

I hear that the Ministry of Environment has also started
investigation to create a new system to support utilization of
Satoyama. In this trend, this is a path-breaking project, and I
am keeping an eye on it, because this is exactly the thing thata leading company in the environmental issues should tackle.
Earth Water & Green Foundation

Mr. Saiya Iwamoto

35

Efforts on
ntal
environme
tion
a
rv
e
s
con

Concept of Environmental Activities /Efforts against Global Warming

Environmental Philosophy and Environmental Policies

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

Environmental Policies
1 To restrain global warming and air pollution by tailpipe emissions, we will try to make continuous improvement

in environmental conservation, through promoting the streamlining of transport, the introduction of low-emission
vehicles and the practice of Eco Drive.
2 Promoting natural resource saving, energy saving and 3R, we will make improvements, planning and sugges-

tions for the effort on the structuring of a recycling-oriented society.
3 We will observe environment related regulations, ordinances, agreements and other requirements and try to

reduce environmental load and to prevent pollution.
4 Through the environmental education and enlightening activities, we will communicate these policies to all em-

ployees and promote environmental activities.
5 We will try to make continuous improvement in the environmental management system, by setting the environ-mental designs and goals and regularly reviewing them.

Participation in Climate Savers Program
Climate Savers Program is an effort to reduce thegreenhouse gas effect, initiated by the world’s biggest
nature conservation group in the private sector, the WWF(World Wildlife Fund), in which the most advanced companies in the field of environmental operations take partin. The particularities of this program are that firstly, thecompanies set the reduction targets through dialogue
with the WWF and secondly, a third party organization
conducts the verification process. This gives transparency and credibility to the participating companies.
As a condition to join this program, the companies are
required to set the reduction targets that exceed theircurrent plan and, in principle, the targets must be set in
the absolute quantities (gross emission), not in the basic
units that indicate the amount of emissions per production quantities or sales volume. This means that thequality of the program is extremely high and that strong
leadership is required for participating companies.
As of May 2009, only 21 companies are taking part inthis program in the entire world. Sagawa Express is thefirst Japanese company and the only distribution company in the world to join the program.

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SG HOLDINGS GROUP Sustainability Report 2009

A scene in the 2009 Climate Savers Summit

and started efforts in collaboration with the WWF. The target we

Reduction target : Reduce gross CO2 emissions by 6% before 2012
(Compared to the emission level of 2002)

mance continues to grow until 2012 and we don't take any environmental measures, our CO2 emissions will increase to approx. 390

Gross CO2
emissionsin 2002(366,600t)

Increase to393,500t

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

thousands tons compared to approx. 360 thousands tons in 2002.

6% reduction, we will need to achieve approx. a 14% reduction,
considering the increase of emissions due to the growth in businesssociety

introduce 7,000 natural gas fueled trucks. Although our target is a

Relationship with

2012, which means a 6% reduction, we have drawn up a plan toEfforts on environ-6%
reduction

mental conservation

To cut down the CO2 emission to approx. 340 thousands tons inEfforts on safety

stated was the reduction of gross CO2 emission by 6% (compared tofiscal year 2002) before 2012. Providing that our business perfor-

Outline of◎Reduction target and action

Sagawa Express sealed the Climate Savers Program in May 2003

SG Holdings Group■The Target of Sasgawa Express

performance.
The target was laid down in the absolute quantity which means
the gross CO2 emissions of the entire company, based on the usageof fuel and electric power consumed in our business operations. It isa very rigorous target because the increase of CO2 emissions won't
be allowed even if we manage to expand our business in the future.

2002(baseline)

In case we continue
to use only diesel trucks

2012(target)Action for reduction : Introducing 7,000 natural gas fueled trucks in total.

Progress
Sagawa Express made various efforts, including the introduction

The result of our efforts was apparent till the fiscal year 2005.

of natural gas fueled vehicles, for the six years (from 2003 to 2008),

Since fiscal year 2006, CO2 emissions have increased because ausing the gross CO2 emissions in 2002 as a reference point.

part of the courier business that had been outsourced earlier and agroup company engaged in the arterial transport have been

◎Progress of CO2 emission
Diesel oil(

Gasoline)

includingPremium gasoline(unit:t-CO2)

Natural gas

Electric
power

Total

2002

244,552

18,7805,810

97,477

366,619

2003

235,154

17,153

9,660

97,654

359,621

2004

221,886

19,474

14,658

101,459

357,477

2005

217,648

20,741

18,91697,927355,2322006

207,515

25,89324,30098,407356,116

2007

238,886

30,80828,261

101,307399,2622008

236,158

40,02832,01098,653406,849

merged into Sagawa Express.
◎Reason for the increase of CO2 emissions
As part of the subcontracted arterial transport and courier
operations were merged in Sagawa Express, the emission of
those former external companies, which had not been includedin the scope of statistics earlier, were included in Sagawa
Express’s emission, and this affected the figures significantly.
Conventional scope of statistics

Current scope of statistics

Sagawa Express
Sagawa Express

Changes（08-02）

Ratio（08-02）▲8,39496.57%

21,248213.14%

26,200550.95%

1,176
101.21%

40,230110.97%* The reference point (the baseline) is the amount in 2002 when we started to work on Climate Savers Program.
* Scope of statistics: The baseline in 2002 was calculated from statistics that included the electric power
consumed by our group companies and tenants located in Sagawa Express's facilities and the fuels sold tooutside parties. Since 2004, the scope of statistics was narrowed down to only the business operations of
Sagawa Express which is a participant in the program and, for the purpose of comparison with the baseline,
an equivalent amount to the CO2 emission from the electric power consumed by our group companies andtenants located in Sagawa Express's facilities and the fuels sold to outside parties (10,435t-CO2) was added.
* Standard of statistics: The Agreement on Climate Savers and the 2008 Environmental Accounting Manual.
* CO2 emissions coefficient: The coefficient according to Enforcement Order on the Promotion of Measuresagainst Global Warming (Ministry of the Environment, December 19, 2002).
* The fuel quantity is calculated from the quantity purchased. Some values are, however, quoted from the dataof the quantity filled, based on the company’s statistics.

Group company undertaking
arterial transport
Trucking (Outsourcing)

Subcontracting arterialtransport companies
Subcontracting
courier companies
Other hired trucks

MergerAcquiredsome of thecompanies

Trucking (Outsourcing)

Subcontracting arterialtransport companies
Subcontracting
courier companies
Other hired trucks

Modal Shift

Modal Shift

Railways/Marine transport/
Air freight

Railways/Marine transport/
Air freight■The scope of statistics for Climate Savers Program

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Introduction plan and history of natural gas fueled trucks

Environment-friendly natural gas fueled trucks

Sagawa Express had introduced 4,254 natural gas fueled trucks in total at

Natural gas fueled trucks use natural gas (utility gas)

erthe time of March 2009. This figure equals 25% of the total number of oper-

as fuel and emit less CO2 and NOx*1 compared to con-ating natural gas fueled trucks in Japan andventional diesel engine vehicles and no PM*2 at all.

we are the largest private user in the country.

◎Comparison of tailpipe emissions(between diesel and natural gas fueled truck)

We will also continue further introduction ofnatural gas fueled trucks proactively in future.

Natural gas fueled truck◎Introduction plan and history (as of Mar. 2009)of(numbervehicles )Actual total number of introduction
Planned total number of introduction

5,000

Diesel trucks

100

Natural gas fueled trucks

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

7,000
6,000

Researched by■Comparison in CO2 emission (Percentage.
Japan Gas Association, March 2007.)■Comparison in NOx*1 and PM*2 emissions
4,254

3,290
5,800

2,693

3,000

4,600

2,197

2,000
1,000
0

1,110

’02

7,000

5,200

4,000

1,647
1,110

6,400

3,400
2,200

2,800

1,640

PM regulation value(g/km)

3,695

4,000

0.18 (New short-term regulation for diesel. After October 2003.)(New long-term regulation for diesel. After October 2005.)

0.027(Post new long-term regulation. After 2010.)

0.01

Natural gas fueled trucks
0.00
0.3

’03

’04

’05

’06

’07

’08

’09

’10

’11

’12

0.7

2.0

3.38 (g/km)

NOx regulation value( fiscalyear )*1 Nitrogen Oxide. Air contaminant which causes photochemical smog and acid rain.
*2 Particulate Matter. It is considered the cause of asthma and bronchitis.

Setup of natural gas filling stations
In order to promote introduction of natural gas
fueled trucks, Sagawa Express has established its own
natural gas filling stations at 16 branches in the fiscal
year 2008. The number of its own natural gas filling
stations across the country now totals 23.
Sagawa Express’s own natural gas filling station (Josai Branch) A scene of refueling of a natural gas fueled truck

Start to use bio fuels
For the purpose of reducing CO2 emissions from delivery vehicles, we use
bio gas as fuel for natural gas trucks.

We have also started to use bio gasoline for light motor trucks. Mainly in

Bio gas is produced effectively utilizing digestion gas* which is naturally

Kanto and Kansai area, we

generated in the process of sewage treatment. Bio gasoline is a gasoline

also use commercially avail-based fuel with which bio ethanol made from plants is blended. These next

able bio gasoline.

generation fuels have attracted much attention because both of them canreduce CO2 emissions in the process of generation.

38

10 trucks in the Kobe Branch.

We will widely adopt thesebio fuels when they become

We are using bio gas, which is obtained from purification of digestion gas

more popular in the market.

generated from sludge in the sewage treatment facility in Kobe City, as fuel for* The gas generated in the process of sewage
treatment, containing much methane gas.

SG HOLDINGS GROUP Sustainability Report 2009

Bio gas station

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Environmental Measures for Improving Transport Efficiency◎Service Center Flow Chart

delivery vehicles, mainly in urban areas where the traffic is heavy andWithout Service Center

Trucks generate considerable impact on the environment and, in popu-

Customerparking of delivery vehicles is one of the reasons for traffic congestion

Customer

BranchAs many transport business firms concentrate in urban areas, the street

Using Service Center

Service
Centersocietyload.

Relationship withup and delivery by human power, we operate with less environmental

Efforts on environ-

Customerestablishing Service Centers and using only trolleys and bicycles for pickmental conservation

lated urban areas, environmental load by trucks can be concentrated. By

Customer

Branchparking spaces are normally scarce.

Efforts on safety

Sagawa Express has established Service Centers which do not use

Outline of

SG Holdings Group

Reduction of environmental load by utilizing Service Centers

Customer
Customerwhich can be reduced by using Service Centers. At the same time, those
who don't have enough confidence in driving can utilize their abilities at
Service Centers because they don't have to drive delivery vehicles. Many
female employees are actively working there.
As of March 2009, we have set up 221 Service Centers mainly in urban
areas all around the country and managed to cut down the requirements
for approximately 1,100 additional delivery vehicles.
We will actively expand the use of Service Centers because they arefriendly with not only the environment, but our employees and local societies.

Service Center and delivery scene Delivery using three-wheeled cycles

Streamlining of transport utilizing Hub Centers
As part of network building works that support our transport, we have estab-◎Transport Flow Chart using Hub Centers

lished Hub Centers which are large scale consolidated distribution facilities toWithout Hub Centerspromote enhancement of the transport efficiency.
Freight and parcels are gathered at Hub Centers and then sorted by their destinations, which increases the loading ratio of trucks and reduces the number ofUsing Hub Center

District

District

District

District

District

District

District

District

District

Districttrucks used. This contributes significantly to the reduction of tail pipe emissions
from trucks and suppresses air pollutants

Hub
CenterDistrict

and CO2 emissions as well.
Now we have five hub centers across theDistrictcountry, in which reduction of the environmental load is pursued in further enhanceTrucks heading for different destinations gathering in a Hub Center

ment of travel efficiency and loading ratio.

West Japan Hub Center

Chubu Hub Center

Kuki Center

Direct transport between
districts are required.

Tokyo Big Bay

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

Kitakyushu Center

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Utilization of Sagawa Ryutsu Center leads to reduction in CO2 emission
In general, distribution of commercial goods consists of many

◎Diagram of transport flow at SRC

different processes from manufacturing in the factory to shipConventional distributionmeans undertaking the acceptance, storage, inspection andprice labeling on behalf of the customer, to shipping of goods.

Shipping

Acceptanceinspection
Acceptance

tomers with total support from distributive processing, which

Shipping
inspection
Pickingtion’), operated by Sagawa Global Logistics, provides its cus-

Decrease in the number of transports = reduction in environmental load

Inventory
Storagement. Sagawa Ryutsu Center (SRC) (“Ryutsu” means ‘distribu-

DeliveryPick up

As we promote a thorough streamlining by consolidated

Pick up

As of March 2009, Sagawa Global Logistics makes full use of
26 SRCs and 29 business offices to contribute to streamliningof our customers logistic operation and the reduction of CO2
emissions.

Facility of a SRC

Shipping

Pickingof environmental load by eliminating unnecessary transport.

Price labeling

From the environmental point of view, it leads to the reduction

Inventory

Acceptanceflow around the distribution and a lower cost by using SRC.

PackagingDistribution using SRC

Shipping inspection

management, the customers will benefit from a simplified work

DeliveryA branch of Sagawa Express is adjacent to the site

At the SRC, they are actively working on environmental conservation, hand in hand with customers, through strict separate collection of waste generated from business operations, promotionof recycling which is obvious, and offering the packaging materials made from eco-material.

Commodity management

Inventory management

CO2 reduction effect of Modal Shift
Modal Shift refers to using alternative means of◎CO2 emission basic units of various transport means

freighting from trucks to railway or marine transport(g-CO2/t-km)

that generate less environmental load. For example, it

200

is said that when transporting a freight of 1t for 1km,150

the amount of CO 2 emission from a truck is eighttimes more than that of railways and four times more

100

than that of marine transport. The railways and39

marine transport can save energy by transporting alarge amount of freight at one time, hence improving
transport eﬃciency.

40

SG HOLDINGS GROUP Sustainability Report 200920
0Commercial freight vehicles Ships

Railways

Source: Website of Ministry of Land, Infrastructure, Transport and Tourism (FY 2006)

Efforts on safety

Sagawa Express promotes Modal Shift by using means of transport other than trucks, such as railways or marine transport of which
environmental loads are smaller than that of trucks, or combining
these multiple means.

On the busy (hence generating heavy environmental load)societywith JR Freight and charters all trains to transport courier parcels.

Relationship with

Tourism. Sagawa Express developed the freight car in cooperation

Efforts on environ-conducted by the Ministry of Land, Infrastructure, Transport andmental conservation

Super Rail Cargo was a result of a demonstration experimentTokyo-Osaka line, which is known as the main artery of Japan, now

Outline of

SG Holdings Group

Promotion of the Modal Shift through Super Rail Cargo

Super Rail Cargo

Super Rail Cargo covers approx. 10% of total amount of freight.
The 16 car train, carrying 28 31ft-containers, runs between
Tokyo and Osaka in 6 hours and makes a round-trip everyday. Itsload capacity is equal to 56 10t-trucks in one round trip.
By utilizing Super Rail Cargo, the CO 2 emissions from heavy
trucks are substantially reduced, which has a direct impact onlowering environmental load.
Special container truck for Super Rail Cargo◎Super Rail Cargo Vehicle Data
Max. speed

130km/hModel

M250 system

Number ofcoaches

16 coaches (4 motored + 12 trailed vehicles)

Route

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

Top lifter which loads and unloads containers■Further spread of Modal Shift◎Effect of Modal Shirt (2008)

Other than Super Rail Cargo, we are making use ofrailways and marine transport as much as possible
and promoting the reduction of truck transport. This
allows us to reduce environmental load, as well as
lowering the risk of traﬃc accidents and sorting out
labor diﬃculties caused by long distance drives. Generally, our eﬀort on Modal Shift signiﬁcantly paid oﬀ
in 2008.

Reduction of truck transport

Reduction of CO2 emissions(in number of 10t trucks)(t-CO2)

Super Rail Cargo

16,232

10,807

Railways(other than Super Rail Cargo)

26,56039,595

Marine (ferry)

40,17016,97382,961

67,375Total* Source: Calculation according to ‘Carbon Dioxide Emission Basic Unit of Freight Transport’ (2006)
by Ministry of Land, Infrastructure, Transport and Tourism.
* The amounts of reduction above are the calculated value of environmental load that would
generated by trucks assuming that we hadn’t used Modal Shift. Therefore, these aren’t the actual
amount of reduction in 2008.

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Effective Utilization of Resources

Development and introduction of the ECO-body
SG Motors appeals to prevailing ECO-bodies that are designed

1,412 units and the cumulative number of bodies built exceeded

to be environment-friendly and provide better working circum-

7,400 units. Looking to further the prevalence of the bodies, we are

stances on loading platforms for drivers. In 2008, the company built

working on with the target of 350 units built per year in 2009

T O P I C
Interior finishing material made from recycled resin

Forest protection using wood materials
produced from tree planting
Planting and utilization of acacia trees

In order to significantly reduce the wood material consumption, we use boards madeof recycled resin as the interior finishing material of vehicle bodies. The origin of theresin is waste from the production process of cups for pot noodles. By adopting theboards, we could reduce the annual usage of wood materials by 90 tons in 2008.

As a corporation which calls for coexistence with nature, SG Motors
Cool Courier box vehicle
equipped with the ECO-body

Overview of the ECO-bodyproactively supports the tree planting business, and uses wooden materials
produced from such planting in order to save limited natural resources, withthe motto of “Grow trees by ourselves to use wooden materials!”Heating, degassing,and re-pelletizing

They support tree planting (by providing sponsorship) of acacia trees thatgrow rapidly to use as the material of the floor inside the truck.
Since, by nature, the surface of the acacia material is rough, only a small

Grinding andpowderization of
the waste material

number of boards can be produced from one tree, if you try to get large

Waste from the production
process of cups of
instant noodles

sized boards. Therefore, though it requires more work, they produce more
smaller sized boards in order to make full use of the tree and thus contribute

Material
recycleto nature conservation.
Reproduction(polystyrene board)

Recycled resin material(polystyrene board)

Non-flon heat insulator(phenol foam)Aluminum plate

Interior finishing panel

Product

A scene in tree planting (in Sabah, Malaysia)

Introduction of Solar Power Generation Systems

Use of the LEUCO Card

Solar power generation, which is expected to come into wide use all over theheWith increasing information digitalization in the offices, a larger andworld, is a very environment-friendly electric power generation system and emits nolarger amount of paper is used for printing with a laser printer, etc. A

CO2 or other hazardous substances at all in the generation process.

large part of those printed papers are used only temporarily.

Sagawa Express has been introducing such solar power system since 2003 and,Sagawa Express uses the repeatedly rewritable and thus eco-at the moment, such systems are in operation at 21 sites across the country. The

friendly Leuco Card* to issue the statement of work containing

cumulative power output of these power generation systems reaches 440kW. This

description of the work. Compared to the usual printer system, we

capacity equals the annual energy production of approx. 440,000kWh which is thecan save about 1,500 sheets of paper a day in operation of theequivalent to the annual energy consumption of 120 households in Japan.

special automatic sorter for ‘Yu Mails’ in Tokyo Big Bay.

We will continue to promote utilization of natural and recyclable energy throughfurther introduction of solar power generation systems.

Also, we will continue our efforts to reduce the quantity of waste asmuch as possible.
* You can repeatedly write anddelete characters on this cardby applying heat on the recording surface. The data are easierto read and the card allows ahigher number of rewritingscompared to the magnetic card.

Solar power generation system

42

Four and a half years later after planting

Solar power output display panel

SG HOLDINGS GROUP Sustainability Report 2009

LEUCO Card

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Efforts toward a Zero Waste Society

The decommissioned vehicles from Sagawa Express

fiactivity to purchase earth-friendly goods proactively. Specifi-

are properly disposed of by SG Motors.

cally, we purchase Eco Mark certified clothing made fromrecycled polyester, which is produced in recycling of PET■Retrieval of CFC (Chlorofluorocarbon)

we properly retrieve the CFCs and make the neces-

The used uniforms are collected by our Uniform Control
Center and, after picking up the reusable ones, theremainders are ground and pelletized at an intermediate
repository site to be recycled as reductant for shaft
furnace in steelworks. We also purchase Eco Mark certified working gloves for sales drivers and 913,800 pairs ofthese gloves were used in 2008.

1

The bottles are

2 ground into PET flakes.
made into fibers.

Waste oil generated by regular changing of engine
oil used to be disposed of as industrial waste. Recently however, waste oil is recycled as a valuable■Collection of used tires
Used uniforms
are recycled asanother formof resource.

PET flakes are■Collection of used engine oil

recycled.

Eco Markcertified products.

3 melted and

CFCs were retrieved.

resource. In 2008, 434,900 liters of waste oil was◎Processes to make eco-uniforms
After removing caps and peelingoff labels, PET bottles are
washed with water.

sary treatment for disposal of it. In 2008, 41.7kg of

Used tires that cannot be used anymore arerecycled by the ﬁnal disposal service vendors, in theforms of material, heat source and other uses. In
forms

Fibers become the4 uniform fabric.

20008, 95,048 used tires were collected.
2008,

Supporting the transport of collected electric appliances for recycling

Measures to reduce waste

Sagawa Express operates a transport business for designated electric appliances

FFor realization of a Zero Waste society, Sagawa Express is working on efforts tothat are obliged to be collected by the Electric Appliance Recycling Law (air condition-

redu waste generated by our business operations as much as possible.
reduceers, refrigerators, TVs and washing machines, etc.) and, on request from home-

By conducting a campaign for completely separated collection in a step-up

appliance makers, sends them to specified recycling facilities. Our group companies

method, the total amount of waste in 2008 was approx. 46,642 tons.

and subcontractors in Kinki, Chubu, and Shikoku regions are certified as the desig-

As stated in our environmental policies, we will continue to promote 3R and practicenated service vendors and support the quick and efficient recycling of resources.

reduction and recycling of waste through completely separated collection.

◎Transported electric appliance for recycling (2008)◎Types of waste from Sagawa Express (2008)
Recyclable waste 110.7
Waste glass and ceramics 169.6

Air
conditioners

153,816

Sludge and waste water 243.3
Waste wood (pallets) 2,694.8

Refrigerators

168,479

General waste 6,256.9

TVs

328,076

Washing
machinessocietymeans that about 650,000 PET bottles were recycled.

Relationship withuniforms manufactured in 2008 is about 223,000 and thisEfforts on environ-

In order not to release CFCs into the atmosphere
during the process of vehicle servicing or disposition,

mental conservation

bottles, for our group companies’ uniforms. The number ofEfforts on safety

SG Holdings Group promotes “Green Procurement”, an

Outline ofEfforts on recycling of decommissioned vehicles

SG Holdings Group

Purchasing eco-uniforms

Metal and furniture 6,697.8

Waste oil 53.2
Others 47.4
Used tires 17.0
Rubble 0.7
Animal and plant
residues 0.2
Waste plastics
and mixed wastes

15,334.2

192,870
Wastepaper0100,000

150,000

200,000

250,000

300,000(number of unit)(Unit: ton)

15,015.8

43Efforts on
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SG Holdings Group’s Environmental Activities

Effort on environmental activities in 2008
For the purpose of promoting active efforts in environmental conservation by our employees, we established
Environmental Activities in 2003. This is a hands-on program throughout the year and keeps evolving every year.

◎Implemented items of Environmental Activities (2008)
Implemented items of Environmental Activities

1

Verification of Idling Stops

2

Companywide simultaneous Light-Down Campaign

3Clean-up campaign

4

Recycling campaign

5Energy saving campaign

6

Environment picture diary contest

7

Eco Family Contest

8

Environmental Model Branch Contest
Poster for Environmental Activities in 2008

■Companywide simultaneous Light-Down Campaign
On the sidelines of Earth Day, a day to do something for our planet, we haveAmong all of the branches and offices of SG Holdings Group, we

conducted a ‘Companywide simultaneous Light-Down Campaign’ for threeselect exemplary branches to recognize and publish them within thedays from April 20th to 22nd, on which we turned off the lights of the advertis-

group for the purpose of promoting environmental conservation anding displays and the like of all the offices and branches of our group.

enhancement of awareness on the environment. The winners of theSince this companywide simultaneous Light-Down Campaign was listed as

Grand Prix in 2008 included Sagawa Express Yokohama branch,

an item of the environmental activities to be implemented in this year, we have

which is working on ‘environmental conservation through collection

conducted it also in April, July, October, and January, for 12 days in total.

of caps of PET bottles and donation for vaccine injections’ among all

Because reduction in power consumption has a big effect, we will continue
this campaign.

Before “Light-Down”

44■Environmental Model Branch Contest

activities, as well as Sagawa Advance Head Office, SG Motors Head
Office, and Sagawa Global Logistics Sendai Branch.

After “Light-Down”

SG HOLDINGS GROUP Sustainability Report 2009

A scene from the awards ceremony

With the purpose of raising awareness on the environmental conservation of each employee as well as

Efforts on safety

making a contribution to the promotion of regional

Outline of

SG Holdings Group■Clean-up Campaign

beautification, employees of our group do cleanups ofthe neighborhood of the business office in cooperation
with the local government, companies, and NPOs.
A scene from the activity

society

Relationship withsion from home, we conduct “Environment

Efforts on environ-

For the purpose of reduction of CO 2 emis-

mental conservation■Environment picture diary contest

Picture Diary Contest” for the children of groupcompanies’ employees, so as to give them an
opportunity to think about the global environment in the family and to raise their awarenesson the environmental conservation in participation in an environmental conservation activity
Award winning work (by Akane Watanabe)in the family or local community. In the 2008
contest, 1,598 applications were received.
Earlier, we have organized an Environment
Poster Contest. However, we have changed it
to a picture diary contest in order to promotea more proactive approach to the environmental conservation activities. The children
described more specific content of the activity
in their picture diary.
Grand Prix winning work (by Mei Takayanagi)Award winning work (by Arisa Kojima)T O P I C
Winning a Grand Prix in the 3rd ‘ECO Statement in my house☆’ contest
Since 2005, the Ministry of Environment has been widely inviting eco-life messages and mini reports fromfamilies and children with the themes ‘what I noticed’, ‘what I am working on’, and ‘the action goals for future’
concerning the environment as an application for the ‘ECO Statement in my house☆’ contest, with the
purpose of promotion of eco life in the family.
Our group has been also actively participating in this project, assuming it as a good opportunity where thegroup employees and their families fight against global warming in an effort of environmental conservation.
This year, Ayami Sasaki, a child of our group employee, won the Grand Prix out of 4,980 applications in total.

Three participants received the Environment Minister’s Award.
Children’s division Grand Prix winning work “Because I like winter”

by Ami Sasaki

Children’s division Award winning work “Eco cycle is a happy cycle”

by Yuki Nakamura

Family division

by Yoshiko MurataAward winning work “CO2 diet by all the family members: -266kg”

A scene from the awards ceremony45

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Coexistence with Nature

Environmental education through the ‘Sagawa Express On-site study about nature’
Beside efforts for reduction of environmental loads, weare also making different approaches for coexistence withnature, considering that “coexistence with nature” is very
important.
The 'Sagawa Express On-site study about nature' program started in 2007 to provide opportunities for children
to closely experience nature and, at the same time, learn
about natural bounty and the value of foods through experiencing rice production work, such as planting, removing

Chemical-free paddies

weeds and harvesting.
We hope that through this on-site study, children
develop awareness of coexistence with nature and continue this effort in the future.

■Experiencing rice planting
Approx. 200 participants, including the families of ouremployees and people from the local community, joined arice planting experience held in Moriyama, Shiga Prefec-

A scene from rice planting

ture. Under a clear sky, children played in a 1,300m2 wet
paddy, totally covered in mud, while parents struggledwith unaccustomed work, but everybody seemed to enjoy
the experience with smiles on their faces.
Through the rice planting experience, they could
observe animals living near the rice paddies and perhaps
could feel the importance of nature and how important it is
to hand this nature to the next generation, while learning in

Release of Nigorobuna fish

nature together with their parent or children.
In a chemical-free paddy, we released young Nigorobuna fish, a threatened species. This activity is conducted for the purpose of recovery of the number of Nigorobunas whose population has been sharply decreasing

Nigorobuna grown to about 3cm

in recent years due to the increase of nonnative species in
Biwa Lake. These fish were later released in Biwa Lakeafter having been raised to about 3cm in the paddies freefrom the threat of enemy attacks.
After removing a huge amount of overgrown weed,
about 670kg of rice was harvested in September. The rice
was named as ‘Hikyaku-mai’ (courier rice) and allotted tothe participants of rice planting and harvesting.
A scene from rice harvesting46

SG HOLDINGS GROUP Sustainability Report 2009

Efforts on
ntal
environme
tion
a
rv
e
s
con

Efforts on Environmental Enlightenment

Efforts on safety

lectures.
We will continue ourchildren in various places.

using a picture-story show and other tools. Partly because of the increase in

the environment byinterest in the environment in society and TV, newspapers, and other informa-

explaining them Sagawa

tion media that are familiar to them, children’schildren s awareness on the environmental

Express’s efforts on

issues is very high, and many questions are asked in the environmental

environmental issues.

A scene from an environmental lecturesocietychildren’s awareness on

Relationship with“Distribution of goods and environment” in an easy-to-understand manner,

Efforts on environ-activities to raise

onservation
mental conservation

We introduce them to our efforts on environmental issues with the title ofOutline of

Sagawa Express organizes “environmental lectures” for elementary school

SG Holdings Group

Environmental lectures for elementary school children

Distribution of ECO karuta game sets
For the purpose of offering an opportunity to practice environmental conservation activities at home, we produced ECO karuta game sets for our employees
and their families.
Our eco karuta game is made up of three kinds of cards, each of which has adifferent theme; i.e. ‘What an individual can do’ cards are about issues which
individuals can do, and on the ‘The earth is in danger’ cards, environmental
problems which our planet is facing are explained, while ‘Efforts of Sagawa
Express’ cards introduce the activities that Sagawa Express is conducting. We
produced this game hoping that it offers an opportunity to our employees andEco karuta gametheir families to think about environmental issues while enjoying the karuta game.

Participation in environmental publicity events
To popularize environmental conservation activities, we actively participate andexhibit in environmental publicity events organized by local governments, national
government offices and other organizations as part of our environmental enlightening activities to the general public.
In the ‘Eco life fair’, we introduced to the public the activities of Sagawa Express
as an commodity distribution operator, such as introduction of natural gas trucks
and Idling Stop campaign, in an easy-to-understand manner, and about 3,000
people visited our booth. In the ‘Eco Products’ event, we set up among all an Eco

Eco Life Fair

Safety Drive experience corner, on which about 7,500 people visited.
◎Major events in which Sagawa Express set up a booth (2008)
Name of event

Date

Eco Life Fair
2008

June 7-8

Eco Products
2008

December
11-13

Venue

Organizer

Yoyogi Park,Tokyo

Ministry of theEnvironment, etc.

Tokyo Big
Sight

NikkeiInc., etc.
Eco Products

47

Efforts on
ntal
environme
tion
a
rv
e
s
con

Building a Framework to Promote Environmental Activities

Environmental accounting
To execute environmental management more effi-lion yen due to the mainly new establishment of theciently, Sagawa Express has introduced environmental

natural gas filling stations for corporate use, and theaccounting.

environmental expenses were 7 billion yen.

Monitoring investments and expenses relating toThough we could have a bigger environmental con-environmental measures is helpful for setting indexes

servation effect compared to the previous year, this did

for future investments and analysis of each project.

not bring about a positive economic effect due to the

In 2008, our environmental investment was 480 mil-influence of the rise in the price of crude oil.

◎Cost around environmental conservation
Items(unit: million yen)
2007

Description

Air pollution, water contamination, noise control.
(Introduction of oxidation catalyst, construction of soundbarriers, etc.)
Global warming, prevention of ozone depletion.
(Natural gas fueled vehicles, solar power generation systems, introduction of energy saving devices, etc.)

Breakdown(2) Cost for environmental conservation(3) Cost for recycling ofresources

Disposal of waste, water saving, recycling of tires, etc.

(2) Cost in upper/lower stream

79

1,028

484

1,060

5

121

2

41

Expenses decreased as the mounting of oxidation catalyst to the diesel
vehicles has been completed

73

146

482

178

Investment increased due to new establishment of natural gas filling
stations for corporate use at 16 locations

1

761

0

842

Expenses increased due to increase in the amount of recycled engine oil,tires, and batteries

─

─

─

0

230

─

─

0

─

220

(5) Cost for social activities
cost for(6) Compensation
environmental damage

Measures against asbestos dust.

─

0

─

0

(7) Cost for safety measures

Vehicle inspection, employee education, enlightening
activities such as safety measures.

─

5,230

─

5,516

79

6,708

484

7,004

(4) R&D cost

Total

◎Effects on environmental conservation
Environmental performanceindexes

2007

Expenses decreased due to decrease in the number of environment
publication related events─

79

Expenses for material procurement increased related to ‘Hikyaku PC Courier’─

166

Decrease in the amount of donation and expenses for event activities

Vehicle inspection expenses increased together with the increase in thenumber of vehicles◎Economic effect accompanying environmental conservation

Effects on environmental
conservation(Result in 2008 - result in 2007)

2008

183

Economic effect(Unit: 10,000 yen)Amount90,92389,881-1,042

Cost reduction by reducing the usage of heating oil

Heating oil (㎘)

438

292

-145

Cost reduction by reducing the usage of heavy fuel oil

0.4

Heavy fuel oil (㎘)

116

76

-40

Cost reduction by reducing the usage of propane gas

225

Natural gas (km3)

14,426

16,3401,914 (Note 1)

Cost reduction by reducing the usage of water (clean)

1,490

Utility gas (km3)

1,224

1,194

-30 (Note 1)

Propane gas (kg)444,447

383,557-60,891 (Note 2)

Gasoline (㎘)* including Premium
gasoline

13,26817,146

3,878

242,410,000

235,390,000-7,020,000

Water (clean) (km3)

951

913

-38

Water (sewage) (km3)

955

911

-43

8

30

22 (Note 3)

830

22 (Note 3)NOx (t)

1,059

1,115

56 (Note 4)

PM (t)

68

62-6 (Note 4)

Diesel oil (㎘)Electric power (kWh)Industrial water (clean) (km3)3Industrial water (sewage) (km )Number of recycled PET bottles

──

650,235 (Note 5)* Effects on environmental conservation are calculated as simple mathematical differences from theresult in 2007.
(Note 1) The volume of natural gas and utility gas depend on the values shown on the invoices fromsuppliers, hence before temperature and pressure corrections.
(Note 2) The value was converted into weight by multiplying the volume (m3) shown on the invoicesfrom suppliers by 2.07kg/m3.
(Note 3) Statistics on industrial water usage started in 2006.
(Note 4) The amount of NOx and PM emission from trucks only.
(Based on the emission coefficients for each model prescribed by Ministry of Land,
Infrastructure, Transport and Tourism, the theoretical estimation was calculated using thetravel distances of each vehicle.)(Note 5) Based on the number of uniforms used in 2008, the number of PET bottles recycled was
calculated using the conversion factors (a half sleeve shirt = 2.42 PET bottles, a long
sleeve shirt = 3.76 PET bottles), as those uniforms were made from recycled PET bottles.

48

─

Introduction of an environment management system, promotionof green business management, environmental advertisements,
environmental education, disclosure of environmental information.
Development of services and products relating to environmental conservation, such as Eco-body.
Donation to domestic and overseas environmental organizations, enlightening activities.

(3) Management cost

Main factors for increase/decrease

Environmental Environmental Environmental Environmental
investment
expenseinvestment
expense(1) Cost within business areas(1) Cost for pollution
control

2008

SG HOLDINGS GROUP Sustainability Report 2009

930

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

Efforts on safety

In 2001, Sagawa Express was certified according to
ISO 14001:2004. Looking to increase our environmental conservation activities, we established well-definedgoals for building frameworks and implementation andfield.

Green Business Management
Certificate of Registration
Sagawa Express
Bunkyo branch()

societyconservation and reducing energy consumption in the

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

Relationship with

Green Business Management Certification in 2004 forEfforts on environ-

In addition, 9 branches of Sagawa Express attained

mental conservation

regularly conduct performance measurements.

their efforts in building frameworks for environmental

Outline of

SG Holdings Group

Environmental Management System◎Major environmental targets and results in 2008

[Result]

Because we have modified the introduction plan for the purposeof utilization of the existing vehicles, the number of vehicles
introduced didn’t reach the target.

Not attained.

P38[Result]

We reduced the number of newly acquired vehicles by 78
vehicles by setting up 29 Service Centers newly (totaling 221
Service Centers across the country.)

Attained

The introduction of low emission vehicles(714 vehicles in 2008).

P39[Result]

We use bio-gas for 10 vehicles in the Kobe branch,and bio-gasoline for 86 vehicles in the Kanto area.

Attained[Target]P38

Attained

Suppressing global warming and air pollution due to tail pipe emissions

P43

Reducing the number of newly acquired vehicles through[Target] setting up more Service Centers (adding 25 Service
Centers and saving the acquisition of 50 vehicles).
Research and evaluation of the next

[Target] generation fuels (evaluation of bio-gasoline,
BDF and bio-gas)[Result]

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

[Result]

The following applications and notifications have been submitted
and processed paperless: 1,148 applications for retirement allowance, 4,822 notifications of change of address & commuting
method, 1,985 applications for change of salary transfer account.

[Result]

Out of 1,917 items listed in the merchandise catalog on the
procurement system, 1,152 items are listed now as environmentfriendly goods.

[Result]

We have promoted the Green Procurement campaign,and the ratio of Green-compliant goods reached 66.9%.

Providing dedicated collection boxes for[Target] each type of waste paper to promote
proper disposal and recycling.

[Target] Promoting the use of paperless forms.

Attained

Activities for No Waste societies by promoting resource saving, energy saving, and 3R

Putting a catalog environment-friendly
merchandises on the procurement system

Increase of the ratio of Green-compliant[Target] goods in the procurement order

Attained[Target]Attained

Promotion of Green Procurement[Result]

Publishing 12 issues of the company magazine (HIKYAKU), video
magazines (8 issues of “SG-stage” and 11 issues of ‘Fureai’), and9 issues of web news in the year, we promoted internal environmental awareness.

Attained[Result]

We published 12 news releases and 80 cases of media coverage.
Our web site was updated 12 times.

Attained

Promotion of internal and external environmental enlightening activities and disclosure of environmental information
Raising employees’ awareness on the companies environ-[Target] mental activities using company magazines in the formsof brochures, internet websites, and moving pictures
Providing information to broad stakeholders[Target] by publishing news releases, accepting
media coverage and dialogue with the press.

49

Observing environmental laws and regulations■Observing Law concerning the Promotion of Measures
to cope with Global Warming■Observing the Automobile NOx PM Control Law
As a company which conducts its business operations

As a company which consumes a large amount of energy in its

using many trucks, Sagawa Express has been making effortsbusiness operations, Sagawa Express is well a ware of its energy

for improvement of air in the urban areas in which the pollu-

consumption and calculates the CO2 emission to fulfill its obligation

tion in the air is an extremely serious problem. In order toof regular reporting to the government, as well as making active

reduce tailpipe emission of NOx (Nitrogen Oxide) and PMefforts against global warming.
And in accordance with the amendment of the law in May 2008,(particulate matter), we are actively introducing the change toeach business entity in SG Holdings Group will separately calculate

in the law target areas of the Automobile NOx PM Control

those values in its own business operation to report them to theLaw, but also in other areas.

natural gas fuelled trucks and conforming vehicles not only

government individually, if necessary, which was not obligatory
before the amendment.

■Observing the Law regarding the Rationalization ofEnergy Use (Energy Saving Law)
According to the amendment of the law in April 2006, Sagawa
Express as a designated transport business firm is making efforts inenergy saving in its business operations, while accurately knowing
its energy consumption to properly fulfill its obligation of reporting to
the government.
Due to the amendment of the law in May 2008, stricter environmental measures are now required in factories, offices, and the like.

Natural gas fuelled truck

Each business entity in SG Holdings Group will separately calculate
environmental values in its own business operations to report themto the government individually, if necessary, which was not obligatory before the amendment.

■Observing the Law concerning the Promotion of Environmental Education
As environmental conservation at a global level is increasingly
asked for, SG Holdings Group is expending its efforts on raisingawareness of the environment of all the employees in the group.
Among all, ‘environmental activities’ (P44 / P45) have been
conducted continuously since 2003, as the activities conducted

A scene from an environment lecture

voluntarily by the individual employees.
Since we consider it important to widen the circle of the environmental activity beyond the company framework to the generalpublic, we actively appeal to citizens at different event venues, whileon the other hand. organizing environmental lectures for primary andjunior high school children.(P47)

As companies which support our customers' daily business, SG Holdings Group properly observes allother legislation and regulations relating to environmental conservation and promotes efforts against
global warming and air pollution.

50

SG HOLDINGS GROUP Sustainability Report 2009

Efforts on safetywith society

Outline of

SG Holdings Group

Relationship

mental conservation

Efforts on environ-society

Relationship with

Placing importance on the relationship withsociety;
it is a duty of a corporation which connects one person to another.
The closer communication among customers, our employees, and local citizens is, the stronger the social infrastructure of “commodity distribution” is supported. We will make efforts to be a corporate group which develops continuously together with society,while striving for quality and service improvement and conducting necessary business operations and supporting activities.

51

Feature

S g H

M O V E S

International mutual understanding and economic cooperation with Asian countries
At 14:28 on May 12, 2008 (Monday), a
sudden earthquake (The Sichuan Earthquake) hit inland China. Houses and buildings were reduced to piles of rubble. As theextent of the reported damages got bigger
and bigger with each passing day, SG Holdings Group procured and shipped tents forthe victims of the disaster. This was done in
response to a request from China, but wethink we could play such an important role
because we had been cultivating closefriendships in the past.

Cross-culture communication and economic development
Exploring different cultures to build mutual trust
Making a contribution to the development of the local community is the expression of SG HoldingsGroup’s wish to give back some of the favor we received. Also, in order to fulfill our CSR, we willreach out a strong hand of friendship and cooperation, addressing challenges of the time and society.
Between SG Holdings Group and China as well
as between SG and Asian countries, there havebeen exchanges for more than 20 years. As well as
in establishment of the distribution infrastructure, wehave been actively supporting them in various fields
through local companies and financial groups,
including supply of vehicles and technologies which
are inevitable for transport, scholarship for education in Japan, and promotion of culture. What can
we do to assist the victims of the disaster and fordevelopment of the local community and econoefforts in a variety of ranges,
mies? Though we make eff
our wish is only
on one; what we do maylead to thet happiness of people.
China has made such big economic progressthat it is knownp
now as the ‘factory of the world.’
Asian countries
are attracting
cstrong expectation of the new
epoch. We think establishing the52

SG HOLDINGS GROUP Sustainability Report 2009

A scene from the ceremonyof donation of used trucks
M r. S o m m a d P o n s e n a ,Minister of Communication,
Transportation, Post andConstruction of Laos PDR(left) and our Director Naoi(right)future of Asia, not to mention thatof Japan,
Japa is a highly important
activity not only to deepen ourbond with them, but also to makea contribution to the society.

Sagawa Global Logistics was entrusted with pickup of relief
goods for the disaster-stricken area by the Japanese government. On June 9th (Mon), they picked up, together with Sagawa
Express, about 600 tents and other relief goods at 42 local
governments all over Japan to deliver them to Narita Airport,
from where the goods were shipped to the afflicted area.

Efforts on safety

Assistance to the afflicted area in Sichuan,
China, was realized through the intermediation of
the Chinese Peoples’ Association for Friendship*.
For this activity, Express Service of China Post
Group, Zhejiang Province Post Corporation, andJinhua City Post (Zhejiang Province), which are all business partners of SG HoldingsGroup, helped us by transporting the cargo within China free of charge. 1,200 tents
procured with the monetary donation from our employees and relief money from SG
Holdings were transported by four drivers about 2100km from Zhejiang Province toChengdu in Sichuan, in non-stop driving of 50 hours. The totally dust-covered truck told
us how harsh the driving through the continuing afterquakes had been.

Myanmar:Laos: 922

Vietnam: 70
Philippines: 11

Thailand: 38
Malaysia:

144
Cambodia:

12
Indonesia: 50
Singapore: 6

As support for economic development

They experienced a tee ceremony at a social event (at Raku-Kichizaemon-Kan, Sagawa Art Museum)ks

f used truc

Donation o

The Foundation of Sagawa International Economic Cooperation has been supplying used trucks to developing countries free of charge as economic support since1985. The total number oftrucks supplied is 3,000 for
China, 102 to Mongolia,
150 to Peru, and 53 to
Laos (as of 2008). In thesecountries, the trucks areused in different applications to meet the needs ofthe region.

society

We are working to promote communication among theprivately-financed students from southeastern Asian
countries through admission ceremonies and social
events organized by the Sagawa Scholarship Foundation.

Relationship with▼Distribution of nationalities of scholarship recipients from 1986 (First year) to 2008 (23rd year)

Efforts on environ-through learning

Dreaming development of the mother country

hip are deepened

mental conservation

A scene of the pickup at Kanagawa prefectural government*An entity which is charged with promotion of mutual understanding and friendship between Chinese citizens andpeople of all the countries of the world, preservation of the world peace, and promotion of collaborative development.

ds
The bond and frien

Outline of

We also received a request from thegovernment to pick up the cargo in Japan

SG Holdings Group

Selection of emergency assistanceen area

e disaster-strick

nts to th
Donation of te

Sagawa also accepts trainees andssumes development of human resource
Sagawa used the donation of used trucks as an opportunity to start
acceptance of trainees who learn vehicle maintenance techniques inJapan. Since 2001, we have also dispatched instructors to China to
implement training there. We contribute to international mutual understanding through human exchanges in the form of technical assistance.

53

Contact with new culturesh art works

Magnificent special exhibition incelebration of its 10th anniversaryange throughCultural exc‘Ikuo Hirayama Exhibition – Genjo Sanzo Guhoh-no-Michi (Road to enlightenment)’

Sagawa Art Museum is transmitting culture in the field of painting, sculpture, andwas held from September 12 (Fri) to November 30 (Sun), 2008. In this exhibition, theSilk Road was introduced in an unprecedented scale, while the main hall with a picture

pottery. As well as exhibiting Japanese works, they are making efforts in theof Genjo Sanzo in Yakushi-ji Temple (Nara) was reproduced for exhibition of theintroduction of Asian cultures, such as the special program for its 5th anniversary,

painting series of ‘Western‘Treasury of Ming Dynasty Official Court Blue Flower Porcelain (possession ofRegions in the Age of theGreat Tang’. The original fullNanjing Museum) – Chinese underglaze blue ware; World of cobalt blue,’ ‘Art of Sui

size drafts and many sketch

and Tang Dynasties (possession of Chinese National Museum) – Visiting homelands

panels were exhibited to showof the treasures of Shoso-in’, ‘Porcelain Art Works of Rhee Dynasty – White porce-

the works of painter Ikuo

lain and Punchong Ware (possession of Horim Museum in Seoul, Korea)’, etc.

Hirayama, comparing his
travels along the Silk Road tothat of Genjo Sanzo.

Scenes from the special exhibition
Scenes from the special exhibition

agent contract

in Malaysia

For expansion of the business of ‘Express Cargo,’ international parcel
delivery service destined for Japan, Sagawa Global Logistics has almost
completed establishment of bases in the ASEAN region, and is now working
on strengthening the ties between those bases. They concluded a contract
with a leading logistics company in Malaysia, City Link Express, as a part ofthis strategy. Malaysia is one of the countries which many Japanese home
appliance manufacturers and other businesses headed for in the earlystages of their overseas advance, and is now a production base of ASEAN
based on the export-oriented business. With the coming into effect of theFree Trade Agreement (FTA) with Japan, the express cargo business will
without a doubt increasingly support the economic growth of that country.

A scene in the signing ceremony

Stimulating the economy in Asian countries

anConclusion of

We have been offering support and cooperation in various fields, including culture, economy, and education, in China andProspect for other Asian countries. In the so-called ‘Age of Asia,’ SG Holdings Group wishes to continue its efforts on formation of
the future
closer relationship.

54

SG HOLDINGS GROUP Sustainability Report 2009

ip

Relationhsh

wit
society

Efforts on Services andProducts for Our Customers
Outline of

SG Holdings Group

3R compliant PC transport service, 'Hikyaku PC Express'

Efforts on safety

Sagawa Express provides a 3R* compliant transport service, 'Hikyaku
PC Express', for the customers who send and receive their personal
computers (PCs) for repair. For this service, we use 'Sagawa soft air
package' which is our original reusable packaging material for PCs.

from vibration or shock. In 2008, 'Hikyaku PC Express' was used
* 3R stands for Reduce, Reuse and Recycle.

272,000 times.

Hikyaku Green Mail significantly reduces packaging materials'Hikyaku Green Mail' is a mailing service in which only special tape andCompared with delivery using commonly-used A4 size envelopes, thisaddress labels are used. The special tape seals the opening side of acan reduce 13g of packaging materials per copy. In the case of sending

brochure or booklet and are easily removable without leaving adhesive. It is

10,000 copies per month, for example, it leads to the reduction of 1,560kg

an environmental-friendly delivery service which leads to considerableof such materials per year.

society

Our original 'Hikyaku PC Express' packaging materials

Relationship withconventional packaging), as well as for the ability to protect the goods

Efforts on environ-

friendly product for its reusability (hence generating no waste unlike

mental conservation

This packaging material is highly appreciated as an environmental-

reduction of packaging materials because no envelope made from paper orplastic film is required. With the growth of environmental awareness, use ofSpecial sealing tapethis delivery system has been rapidly increasing, with the number of deliveries reaching 550,000 in 2008, 3.8 times as many as the previous year.
◎Reduction of the packaging material in delivery of one copy of size A4
Weight of the packaging materials 10,000 copies /month for1 copy 500 copies 1,000 copies
1 yearConventional mail

14g

7kg

14kg

1,680kg

Hikyaku Green Mail

1g

500g

1kg

120kg

Detachable
mailing label

Hikyaku Confidential Document Recycling Courier also covers the dissolution process
As more and more companies are shifting their disposal method of confidential

dissolution processing. The

documents from shredding to dissolution in consideration of protection of personaldissolved documents are

information and environmental aspects for resource protection, we have set up a newrecycled into bathroom tissue

service to undertake processes from pickup from the offices to dissolution of confidential

or the like. On completion of

documents.

the dissolution process, a

The flow of this service consists of; packing of the confidential documents into boxes,

certification can be issueddelivery to the solution site in a unified delivery method securing confidentiality, and theon a Web service.

Special cardboard box

55

We are ready to start ‘Hikyaku Designated Correspondence Delivery’ service as the approval was granted
We have obtained the approval necessary to enter the delivery service

engag in the delivery business of designated mails. With this, we willbusiness of designated correspondences according to the Act on Corre-

deploy new services in conjunction with a bill collection service using thespondence Delivery by Private Business Operators. This allows us to‘e-collect’ system or using existing infrastructures such as the internet.

Our payment-on-delivery service, ‘e-collect,’ supports the infrastructure for mail-order shopping safely and securely
In the trend of diversification of the shopping environment, including that
stemming from internet dissemination, the mail shipping market tends togrow every year. The payment-on-delivery service of Sagawa Financial,‘e-collect,’ has come into wide use as a safe and secure transaction
method for mail shopping users, since the start of the service in 2000.
A bank transfer prior to shipment or a credit-card transaction on the

For the first time in industry history, we introduced payment byinternet has been the primary method of payment for internet or mail-orderelectronic money in July 2007 and began to accept QUICPay, an after

services. Therefore, the users of such services have always felt concern

payment type of electronic money, within 23 wards in Tokyo and the city

about the security of credit-card information or non-delivery after thecenter of Nagoya.

payment was made. In our ‘e-collect’ system, where the payment is madeIncreasing options for payment, such as cash, credit-card, debit-cardon delivery, the security measures are perfect, because the payment trans-

and electronic money, 'e-collect' precisely answers the needs of the age

action is handled by our dedicated transaction in our terminal. It has now

and plays the role of an important social infrastructure.

become a system absolutely necessary for support of the mail-order infrastructure, as it saves the trouble of making bank transfers in advance.

■Security-related services to accompanying the spread of the internet

Also, payments by credit card or cash card on delivery is accepted if

With the spread of the internet, criminal cases relating to credit-card

customers don’t have enough cash on hand. In 2008, the payment trans-

transactions or internet auctions are increasing. Consequently, enhancing

actions through ‘e-collect’ were used for approx. 105.34 million parcels

the security in commercial trade via the internet, as well as that in theand 1,211.5 billion yen in the total amount of payment.

delivery of goods, are required.
Sagawa Express has introduced the 'Consignee Identification Delivery
Service,' in which the consignee is identified at the point of delivery, for the
first time in the industry. In this service, the sales driver identifies theconsignee with an official identification and asks the consignee to input
the predetermined password into the sales driver's 'e-collect' transaction
terminal. This procedure ensures double security and provides safer
circumstances for commercial trade.

E-collect with perfect security

By extending the security of the 'Consignee Identification Delivery
Service,’ we also introduced the 'Credit-card Delivery Service' (started on■‘E-collect’ with growing versatility

April 21, 2008), which responds to the Law Concerning the Transfer of‘E-collect’ continues to expand its range of service to answer the

Criminal Profits enacted on March 1, 2008. With this service, we are able

demand of customers and for their convenience. As of March 2009, 20

to handle very important parcels which require the highest level of security

brands of credit cards are acceptable as payment methods in ‘e-collect’.

and provide safe and comfortable delivery service for both consumers andcredit-card companies.

56

SG HOLDINGS GROUP Sustainability Report 2009

Outline of

SG Holdings Group

3D Face Recognition Work Management System

Efforts on safety

In response to the increased importance of the internal control and growing awareness of compliance, SG Mobile Support Co., Ltd. has developed injoint venture and is marketing the ‘3D Face Recognition Work Management
System’ for recognition of individuals and enhanced security in daily work.

card. Since no issue of IC cards, etc. is necessary, it will lead to reductionsocietycontrol of work hours by utilizing such information also as a time-clock

Relationship withface as biological information for ID authorization, while enabling digital

Efforts on environ-face into a template consisting of units of 1/1,000,000 millimeters to use themental conservation

The 3D Face Recognition Work Management System makes a humanof the running cost, including the cost of cards and control works, as wellas to reduction in the work load related to card management, such as

Image of the product installation

Image of the 3D templatereissue of cards, data management, and security measures.

Activities of foundations

The Foundation of Sagawa International Economic Cooperation
Contributing to friendship with different countries through the donation ofused trucks and technical assistance in the field of vehicle maintenance
After Sagawa Express’s donation of 200 used trucks to China in 1985, this

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

Six trainees came from Ming Hu Railway
Corporation of Xining City, China,
as vehicle maintenance trainees in 2008

foundation was established in October 1986 in order to conduct such activities on
an ongoing base. Since then, it has been supplying used trucks to China and othercountries free of charge in order to contribute to the economic development there
and friendship with those countries. Hoping that the donated trucks are used for along time, they conduct vehicle maintenance training in Japan as well as in China.

Speech of thanks by Mr. Hun Tao, chief trainee
I thank you very much for the long-time, great contribution to human resources
development in China, support for reform and opening-up, cooperation in economic
development, and promotion of China-Japan civil exchange. During training in Japan,
we were most impressed by the Japanese people’s sense of responsibility, seriousness, and dignity. In China, there is a common saying that “doing one good thing is
not so difficult, but continuing to do a good thing for a whole life is very difficult.”
Sagawa Express’s development of friendship business activities as well as services
and contribution to society through the foundation for more than 20 years is a virtue
and something we have to learn. After coming back to my country, I will report this to
the top management of our company, and I surely will apply this precious experience
to my future career and to my life.

Donated truck driving on the road in Laos

<Achievement up to 2008>◇Number of donated trucks: 3,305 in total(Breakdown: 3,000 to China, 102 to Mongolia, 150 to Peru, 53 to Laos)◇Number of received trainees for vehicle maintenance training: 108 in total

A scene from the training in Tokyo Branch of SG Motors

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Efforts on Quality Improvement for Our Customers

Making efforts to attend customer calls ‘promptly, reliably, and politely’
Sagawa Express understands that one phone call from aand evaluated by external instructors and consultants. Teams repre-

customer may define our corporate image. In the Customer Service

senting different blocks and regions contend with each other for theSection where calls are handled, we make every effort to be appre-

purpose of enhancement of the quality of the daily service.

ciated in our service by the customers, as the “second sales
section” next to the sales drivers. Each regional office has its own
instructors for daily education, and external instructors are regularly■Success in the nationwide telephone manners contest
The Japan Telecom Users Association organized The 47th

invited for guidance.

National Telephone manners Contest 2008 where 9,669 applicants

New recruits receivefrom all over the country entered the competition. Sagawa Express

practical education insent 6 competitors as representatives of prefectures they belong toa man-to-man systemand the team from Ninohe Branch, Tohoku Regional Office, won thefor about one year.

outstanding performance award (equivalent to third place).

Education in the daily work is important■Securing a high, uniform level across the country by
the Customer Service Contest

T O P I C

Winner of the outstanding performance award in our
5th challenge and 3rd entry in the national competition!

Aiming at the improvement of telephone manners, the Customer

I am full of emotion because we have been working

Service Section has conducted an internal customer service contest

hard, hoping to realize the long-cherished wish ofsince 2001. For the contest, about 700 questions are prepared basedon the working procedures,back to the people who supported us.
Since the setting of the simulation in the competition
was a toy shop, I actually visited toy shops to researchand 100 questions out of

how they serve the customers, and I tried to answer

them are actually asked incalls in such a manner that I myself would feel happy if
I were a customer. I will continue to try to do my best to

the contest. Then, someanswer calls from the customers’ standpoint and to
speak lively, freshly, and cheerfully, so as to increase

situations of telephone
conversation are simulated“Getting an Award in Tohoku Block” to give something

Sagawa Express Ninohe Branch Junko Taguchi

admirers of Sagawa.

They compete with each other in a team of two

Efforts on improvement of quality.
■Certified according to ISO 9001

■Quality Mark certification

Aiming to provide the services that satisfy our customers, Sagawa Express
is working on the management of service quality to correctly answer thecustomer’s needs. As of May 2009, as many asMark. This is a service quality control method to correctly answer the customer's needs.
After the review of 15 criteria, including the performance rates of the specified time

373 branches and offices are certified accord-delivery and redelivery, 8 branches were

ing to ISO 9001: 2000, which is an international

certified in 2008. Through the efforts in ISO

standard of quality management system, and9001 and Quality Mark, we will continue to

we are making further efforts to the continuous

work on the maintenance and improvement of

improvement of various processes relating toservice quality to correctly answer thetransport services.

customer's needs.
ISO 9001 certificate

58

For our own quality control method, Sagawa Express conducts the certification for Quality

SG HOLDINGS GROUP Sustainability Report 2009

Quality Markip

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With Our Employees

them, we respect human rights, individuality, personality, and privacy at thetheir jobs and feel satis-

workplace while making efforts in 5S activities, namely arrangement (Seiri),faction, considering that

putting things straight (Seiton), cleaning (Seiso), purity (Seiketsu), and disci-

our employees are ourpline (Shitsuke) for the realization of safe and healthy working conditions. Our

indispensable assets.

Job development for persons with disabilities
Sagawa Express’ disabled persons’ employment rate in 2008is our understanding that only working with other employees andwas 1.80% and we have consistently exceeded the minimum rate

sharing the pains and joy of achievement with them results in self-

required by law. The big difference from many other companies isreliance of disabled persons in the true sense of the word.

that we don’t employ them at a specific company; namely, they are
assigned to work together with physically unimpaired employees. It

societymake achievements in

Relationship withencourage our staff toworkers are included. In order to realize ideal working conditions for all ofEfforts on environ-number reaches about 58,000 if part-timers, temporary staff, and contracted

mental conservationgroup always tries toEfforts on safety

The number of employees in SG Holdings Group is about 45,000. The

Based on this policy, we will continue our efforts in job development to grow with disabled persons.

Supporting female employees in various job categories
Providing opportunities for all employees to fulfill their personalities and abilities is one of our business strategies to secure a strong

male recruits in our compan
company◎Development of the number of female(number)

workforce in the future. Therefore, we actively recruit a variety

3,500

people, regardless of sex and age, for various job categories.

2,500

Particularly, the number of new female recruits increased by 108%

3,714

3,424

3,000

1,997

2,000
1,500

compared to the previous year and these women are working in

1,000

many fields. In the field of clerical work, there are 3,714 female staff

0

631

500
’05

’06

’07

’08

(year)

members, the largest in number, and there are 1,882 female drivers
and some female staff have advanced into administrative positions.

y job field◎Composition of female staff by
Managers: 3

Just employing many female workers isn't our aim. We actively
promote them to administrative positions in view of cultivating more

Distributive
workers:

female staff and developing their capabilities.

1,283

We have programs to support the child-raising in employees
Drivers:families, such as assistance for coming back to work from child-

1,882Workers at
Service
Centers: 323

Clericalworkers:

3,714

care leave. Many female staff have actually come back to work withus after pregnancy.

Outline of

SG Holdings Group

Realizing ideal working conditions

Chiefs: 72

59

Substantial education and training courses
In order to give all our employees the experience of◎Training courses conducted in 2008

feeling the reward of their jobs and growth throughName of course

Number ofparticipantsName of course

Number ofparticipants

educational training courses, Sagawa Express

1

Basic education course for new recruits

8,354

7

SD Instructor certifying course

promotes the nationwide standardized education

2

Basic education course for safe driving

6.022

8

Safe Driving Supervisor certifying course

442

system in various job fields.

3

Graduation certifying course for SD

7.018

9

Exclusive Safety Administrator training course239

We are working on the construction of a quantitative4

Basic practical training course for CS

1.489

10

Practical training for administrative staff

1,340

measurement system for achievement and growth5

Graduation certifying course for CS

708

11

Leadership training course

2,735

made by the employees who finished the courses,

6

CS Instructor certifying course

135

12

First-time manager training course

looking to the better development of human resources.

2,131

Total

42
30,655

Supporting quality of life of the employees and their families through an exclusive website
SG Holdings Group runs an exclusive internet website ‘SG HoldingsGroup exclusive site for staff and families.’ It has various contents, suchas consultation services for health or troubles in working conditions,information on recreation facilities and other resorts, and a wide varietyof life support information, with a view to helping our employees andtheir families enjoy physical and mental well-being.

Activities of foundations

Sagawa Scholarship Foundation

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

I want to contribute to the development of my country in making full use of what I learned in Japan
Sagawa Scholarship Foundation grants scholarships and lifestyle guidance to students from Southeast Asian countries. We
interviewed Mr. Itto Fuhchon from Malaysia, who received a PhD in Engineering in graduate school, The University of Tokyo.

●Why did you want to study in Japan?

●What is your goal in the future?

When I was a junior-high school student, Malaysia was booming withJapanese home electric appliances. Since I was interested in the field ofelectronics, I wanted to study in Japan where the technology wasstrong. Therefore, I came to Japan in 1996 when I was 21 years old.

Now I am engaged in development, manufacturing, and marketing ofelectric parts that allow large capacity data communication, etc. in a
venture business initiated by The University of Tokyo. For the time
being, dissemination of this technique and success in business are mygoals. In the future, I would like to establish a company in the same
field to contribute to the development of my country.

●Why did you apply for this scholarship?
I came to Japan using a scholarship from the Education Ministry to learn
Japanese and basic knowledge equivalent to high-school graduates in the
Department of Foreign Languages in Osaka University. After that, I went tograduate school The University of Tokyo. Since the Ministry’s scholarshiponly covered the master’s program, I applied for this scholarship, because I
really wanted to go to graduate school.

60(employee of Advanced Photoniques Co., Ltd.
and research worker in The University of Tokyo
Research Center for Advanced Science andTechnology; Doctor of engineering)●What do you expect from the Foundation?
I think, as globalization progresses, the role of theFoundation will become bigger and bigger. I hope thatthey accept more students for their scholarship withstronger support also in future.

Overview of the Sagawa Scholarship Foundation<Achievements up to 2008>

The foundation was established in February 1986 for the purpose of international
exchange and friendship between Japan and Southeast Asian countries. It grants
scholarships to students from Southeast Asian countries who study in Japan.
Beside the financial support, it makes an effort in exchange activities among
students, valuing the friendship and bond among scholarship students.

◇Number of students who received scholarships: 362◇Amount of granted scholarships: 804.3 million yen(Monthly amount of 100,000 yen per person for 2 years)

SG HOLDINGS GROUP Sustainability Report 2009

Recipient of the 19th Scholarship: Mr. Itto Fuhchon

A certificate of scholarship is handed to the students
by Mr. Eiichi Kuriwada, Chairman of the Board

Outline of

SG Holdings Group

Promoting mental health care

Efforts on safety

SG Holdings Group has established ‘SG Holdings Group
Health Dial 24’ for employees and their partners and families, andan expert organization provides 24-hour consultation on a tollfree telephone line. They accept a wide range of problems con-If the consultee wishes, ‘consultation in interview’ by an expert

societytions. Consultation on an anonymous basis is accepted as well.

Relationship withas mental affairs concerning distress about jobs or human rela-

Efforts on environ-raising children, and information on medical institutions, as wellmental conservation

cerning family life, including health, medical care, nursing care,is also available at 200 locations in 47 prefectures. We will continue our efforts to enhance the support and spread information
to our employees, their partners and families.
The post for “Health Dial 24”

V O

I C E

Raising health awarenessWe want to keep our physical and mental health always in good condi-

vigor).’ For the sales drivers who work outside all day, the heat in summer-

tion. To assuage that, we call our employees’ attention to health aware-time is something to reckon with. Therefore, we call their attention toness through various media.

health awareness by running a feature article about health control to deal

Particularly, in our monthly corporate magazine, ‘HIKYAKU,’ various
information on health management, from health self-check methods topreventive measures of lower-back pain, influenza, and pollen allergy,
appears in the section called ‘Hikyaku no Genki Kaido (Hikyaku’s road towith excessive heat. These articles are cordially written by four experienced health nurses from the corporate health insurance society.
SG Holdings Group Health Insurance Society Tokyo Health Promotion Room Health nurse,

Kana Yamamoto‘Workplace observation day’ enhances the power of our group
In response to family members of our staff wanting ‘to know what thejob of Sagawa Express' sales drivers involves,’ we organized aworkplace observation day.
From the participating family members, we heard voices saying; “Iwant to work like my dad!,” “It was a good opportunity to know what an
important job it is to handle customers’ goods,” etc.
Quite a lot of parents and children or siblings work together at
Sagawa Express and the warm feelings among all employees, basedon mutual understanding and respect, are a benefit to the whole group.

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Enrichment programs■Organizing SG Holdings Group’s Sport Festival■Club activities

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

In cooperation with local communities, Sagawa Express supports artistic and sports activities and educational programs forchildren.
We also support various sports club activities within the company for promoting sports and for the health of our employees.
Track and Field Athletics TeamThe team has taken part in the All
Japan Corporate Ekiden held on
January 1st every year for fourteen
consecutive years. Tomoya Shimizu
participated in the Lake Biwa Marathon
for the first time and secured 3rd placeon the all-time list of Japanese runners.
In the Beijing Olympics, Takayuki Tanii
took part in the walk race as a representative from Japan.

Soccer team
The team belongs to the Japan
Football League (JFL) and won theleague championship in 2007 for the
first time.Aiming at a third straightchampionship, the team is also actively
taking root in the local communities intheir home town Shiga throughactivities such as organizing a soccer
academy for primary and junior-highschool children.

Women’s softball team
The team joined Division 3 of the Japan
Women’s Softball League in 2005 and won
the championship that year. The next year,
when they were promoted to Division 2, they
won again in that division. In Division 1, theyfinished eighth in their first and second
seasons (2007, 2008). For the next year, theteam aims to become more competitive, witha bronze medalist at the Beijing Olympics
who has joined from overseas.

T O P I C
Tanii completed the full distance on the world’s big stage
On August 22,2008, the 50km walkrace was held at the Beijing Olympics.
Takayuki Tanii, who had been training
for this race, completed the full distancein over 30 degree heat and finished29th, acknowledging the cheers fromthe sidelines.
“Thank you for the encouragement! I
am going to take part in the Track and
Field World Championships held in
Berlin in August 2009 as a representative from Japan. I will do my best inorder to be more competitive and get abetter result there.”
Tanii was persistent in the race

62

SG HOLDINGS GROUP Sustainability Report 2009

Atami Sagawa Soh

Moriyama Park is located in Moriyamashi, Shiga Prefecture, and has an athlet-

These facilities are open for the people

Lake Sagawa

from local communities as well.
SG Holdings Group Moriyama Field Athletics Stadium

Further improvement through recognition of excellent staff

societya gymnastics hall and an indoor pool.

Relationship withfield, an artificially-turfed football ground,

Efforts on environ-

ics stadium, 3 baseball fields, a softballmental conservation

Located on the eastern lakefront of Biwako, the largest
lake in Japan, Lake Sagawa
has a rich natural environment and open views withwhich guests can feelrefreshed in mind and body. It
is adjacent to Moriyama Park.

Efforts on safety◎Major recreation facilities

Outline of

Atami Sagawa Soh is locatedin Atami which is one of themost famous resort districtsin Japan. With the large sunlit
waves of the Pacific Ocean
and lovely sea breezes,
guests can enjoy themselves
and relax.

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

SG Holdings Group■Providing recreation facilities

For the purpose of enlivening the group and motivating employees, SG Holdings Group conducts a joint
awards ceremony.
In this recognition system, staff who achieve excellent
results and Sagawa Express branches (group) whichmake efforts for improvement in terms of business performance, quality and safety, and achieve good results,
are awarded as valuable assets of our group.

Activities of foundations

The Sagawa Foundation for Promotion of Cancer Research

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

Improves the quality of palliative care to enhance the QOL (Quality of Life) of patients
The Sagawa Foundation for Promotion of Cancer Research grants ‘Sagawa Nursing Care Special Study Award’ as encouragement
for researchers with the purpose to promote study on the nursing care of cancer patients.
We interviewed Ms. Michiko Tsukada in the Palliative Care Team, Nursing Section of Tokai University Hospital who received the award.

●What is palliative care?

●What do you think of the activity of the Foundation?

A simple phrase of ‘cancer pain’ may mean different things.
Care for the pain is necessary as well as the treatment. Palliative
care is a method to support the patient, taking the physical andmental pains, social life, and families into consideration as awhole, so that they can live with the cancer without too much pain.

The studies on cancer are still in the course of development,
and the care from the patients’ view is not sufficient at the
moment. Since, unlike grants for medical treatments, there
have not been any grants for nurses, I am thankful for the
Sagawa Nursing Care Special Study Award, which gave mean opportunity to study for improvement of the palliative care.

Overview of the Sagawa Foundation for Promotion of Cancer Research
The foundation was established in February 1989 for the
purpose of supporting medical activities such as basic researchand study in the practical treatment of cancer, which is the leading
cause of mortality in Japan, and contributing to the improvementof medical welfare. It provides grants-in-aid for studies andresearch promotion awards, and organizes public lectures for the
purpose of knowledge dissemination for prevention of cancer.

Sagawa Nursing Care Special Study Award
Award Winner Ms. Michiko Tsukada(Full-time Nurse in Palliative Care Team,
Nursing Section of Tokai University
Hospital; certified nurse specialized innursing care of cancer patients)<Achievement up to 2008>◇Number of studies supported：331 (324 million yen)
◇Number of special studies supported：12 (60 million yen)
◇Number of grants for nursing care special studies：11 (11 million yen)◇Public lecture: Tokai TV Telepia Hall (Nagoya)
Number of participants: about 450

Chairman of the board, Eiichi Kuriwada, granted the aid

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Human Relationships and Voices of Society

Hosting Stakeholders’ dialog
What does society expects from the Sagawa Express?

pants to discuss the theme of “How can distribution compa-

What role is expected to be played by it? What can we do innies win the hearts and minds of consumers?,” with the pur-our business activity to contribute to society? Do we satisfy

pose of knowing in what activities distribution companies

such expectations sufficiently? In order to answer thesecan contribute to economic stimulation as well as to fightquestions, we have been holding ‘SAGAWA Stakeholders

against the economic crisis by hearing voices of the society

dialog’ since 2004. In the 5th session in 2008 held amid

in business operation, since material flow has a close rela-unprecedented economic stagnation, we asked the partici-

tionship with the social and industrial infrastructure.

* Stakeholders refer to all the persons concerned with the company. It includes not only customers and suppliers, but also employees, management, local citizens, government, mass
media, and all the other people who are directly or indirectly involved in the business operation.

The summary of the 5th Stakeholders Dialogue■Discussion based on the keywords
In the discussions held in two groups, each participant first wrote down some keywords on a paperboard to show the other members of the group. After
briefing them to share common awareness on thoseissues, more profound discussion was conducted. A
lot of ideas and advice were raised concerning thefuture activities of distribution companies.

[Theme]How can distribution companies win the hearts and minds of consumers[Date]
February 6 (Friday), 2009
[Place]Tokyo[Participants]
18 stakeholders
Representatives of public administrations, academic experts, NGOs, NPOs,
Journalists, our business partners and Sagawa Express[Programs]●Keynote speech●Group discussion in two groups
Theme (A): How to win the hearts and minds of citizens and individuals (to C)
Theme (B): How to capture the hearts of companies (to B)● Presentations of each group and general discussion
Group discussion

Sharing the keywords

64

SG HOLDINGS GROUP Sustainability Report 2009

Presentation by each group

A scene from the general discussion

After listening to various opinions, we felt that two-in going shopping. Specifically, elderly people who live alone tend

consumers. To this end,we will make efforts to contrib-to have only intermittent communication. It is of significance thatute to the society as a “Community Infrastructure” inhome delivery persons have a chat with them.

the local community.

‘Hosting a stakeholders meeting in the region’
It may be of importance to give consumers and citizens anactivities may be possible by holding a stakeholders meeting in theregion with full activity or in some environmental model cities.

‘Necessity of information provision’Companies(subcontractors, etc)

Companies have to evoke sympathy for consumers. We wantcompanies to provide consumers with information, if not the edu-

Journalists

Shareholders,management &employees

Academic
experts

cation.

society

new service for a specific region. Establishment of new regional

Relationship withNPOs &
NGOs

Efforts on environ-

National and local
governments

close contact with the community, it may be possible to produce amental conservation

opportunity to participate in discussion. If the delivery business has

Customers andconsumers(individuals &companies)

Efforts on safety

With the aging population, more and more people have difficulty

way communication is necessary to share feelings with

Activities of foundations

Sagawa Art Museum

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

Sgawa Art Museum celebrating its 10th anniversary
The museum, which was opened in Moriyama City, Shiga Prefecture as a part of Sagawa
Express’ 40th anniversary project with the purpose of contributing to the local community andsociety, celebrated its 10th anniversary. Along with the exhibition of art works by Japanese painterIkuo Hirayama and sculptor Churyo Sato, the museum conducts activities by Lake Biwa, including
introduction of precious art works from abroad with the theme of ‘exchanges between Eastern andWestern cultures,’ as well as exhibition of Japanese arts, Ukiyo-e and porcelain, and watercolors

Sagawa Art Museum

by foreign painters in the motif Lake Biwa’s nature.
At the commemoration of the 10th anniversary, ‘Ryohei Koiso and Churyo Sato Exhibition –Look on the models’ was held in April, at the request of Mr. Sato. In September, Ikuo Hirayama’ s
spectacular paintings, fruits of his dozens of years’ study on the Silk Road, were exhibited with thetitle of ‘Genjo Sanzo Guhoh-no-Michi (Road for enlightenment). The original paintings were mural
paintings with the title of ‘Western Regions in the Age of the Great Tang’ which were dedicated to
the Yakushi-ji Temple (Nara) on January 1st 2001. With the hope to show these works to many
people, Hirayama repainted these in a large size 50 paintings and exhibited them in this exhibition.
Also, the museum sets up a ‘welfare day’ on which people with disabilities and their families,

Hirayama Ikuo Kan

volunteers, and welfare service workers are invited at no charge.

Sato Churyo Kan
Sagawa Art Museum: Welfare day

Raku Kichizaemon Kan celebrated its first anniversary
Raku Kichizaemon Kan of Sagawa Art Museum celebrated its first anniversary in
September 2008. This museum exhibits works of Kichizaemon Raku, the 15th generation of an honorable Raku family of Japanese pottery with a tradition of more than 400
years, who continues to produce formative arts which are rooted in tradition but still
has fresh sensitivity.

Outline of‘Cooperation of the distribution business with the citizens and local community’■After the dialog

SG Holdings Group■Opinions raised in the general discussion (extract)

Raku Kichizaemon Kan

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society‘Internal and external local support and cooperation’ and ‘Collaboration and sponsorship activities of industry, universities,
government, and the private sector with local communities

Experimental study on the hospital logistics with an academic-industrial alliance
Sagawa Express has organized a sponsored course, ‘Hospital

to improve patients’ care, etc.

Logistics’, at the 22nd Century Medical Center at the University ofSome new logistics services

Tokyo Hospital. Since many people and goods come and go in thefor patients have been con-hospital, the themes of the study are on the procurement/supply

ducted as an experimental

methods of medicine and medical materials, distribution services

study.
Information is exchanged at a symposium.

Introduction of our advanced approaches through lectures
In the sponsored lecture organized by the ‘Business Leaders’ Inter-Forum for◎Records of lectures in 2008

the Environment 21 (B-LIFE 21)’ held in Ochanomizu University, Eiichi Kuriwada,

Date

Chairman and President of our company, delivered a lecture on environmental

July 14

Kyoto Women’s University Lecture

Kyoto Women’s University

efforts. He also made a speech

July 18

Natural gas fuelled vehicle forum

Keidanren Kaikan

in the number of seminars

Sep. 18

Logistics environmental administrator training course

Sabou Kaikan

organized by the Ministry ofOct. 15

Kyoto Chamber of Commerce CSR Special Committee

Karasuma Kyoto Hotel

Oct. 30

Environment training

National Environmental Research
and Training InstituteNov. 6

Meiji University ‘Environment and politics,
economy, and society II’ course

Meiji University, Surugadai Bldg.

Nov. 12

B-LIFE 21 sponsored lecture

Ochanomizu University

Land, Infrastructure, Transport
and Tourism and Ministry of theEnvironment to provide information for problem resolution.

Name of the event

Place

A scene in the lecture

Active sponsorship for sports events, etc.
Besides various sports events, Sagawa Express has been participating in

employees of Sagawa Art Museum and our soccer team boosted exchanges

the “Pink Ribbon Campaign” initiated in Kyoto in 2005, supporting thewith the local citizens in Shiga, the center of our group’s culture and sports.

enlightenment activities and sponsoring symposiums.

■Golden Rookie Award■Sagawa Kamamoto Junior Cup Moriyama 2008
With a view to promoting intercommunication of young football players andto a rookie player who makes the strongest showing in Japanese

upgrading their skills, we haveprofessional baseball, The aim of this award is to recognize the mostsponsored this event for 12 years,

valuable rookie of each season and the award winner is given a bronze

since the inaugural event.

statue entitled 'Moeru (budding talent)' that was created by Churyo Sato, aThis year, 24 teams consisting

sculptor who has strong ties to the Sagawa Art Museum.

of 500 young athletes participated■Sagawa Express Cup, The 54th National Amateur Hon-and played exciting games.

■ Spor ts R ecreation

66

Since 2002. we have sponsored the Golden Rookie Award, which is given

inbo Championship Competition
Heated games were played.

This is a Go competition that decides the national amateur champion from

Shiga 2008

among the representatives of each Prefecture, representatives of students

In the 21st Nationwide Sports

and that of female players. Sagawa Express has sponsored the competition

Recreation Festival, thesince 2004.

SG HOLDINGS GROUP Sustainability Report 2009

Efforts on safety

As a part of the contribution to the local community, our soccer team takes
part in the ‘Japan Football Association’s Kokoro-no-project (Project for Minds)- Dream Teacher’ for children’s education hand in hand with the experts inschool education. Till now, these soccer classes were held in five elementary

JFA Kokoro-no-project, Dream Teacher

Cooperation with Kyoto citizens’ event

society

to junior-high school students who applied for the school.

Relationship withschool named ‘Soccer Academy’ is organized for children from the 3rd grade

Efforts on environ-kindergartens and nursery schools to hold a soccer lecture, and a soccer

mental conservation

schools in local areas with 682 children participating. In addition, they visit

Our women’s softball team took part in a citizens’ event in Kyoto,‘Minna-no Sports Festa (everybody’s sports festival)’, teachingsoftball to about 300 primary and junior high school children in thecity. They also organized a joint training course for high school
students from all over Japan in SG Holdings Group Moriyama Park, inwhich about 330 young players participated in one year. They will
make efforts for promotion of softball and enhancement of skills.

Softball school

Various activities as a partner of the JOC
Since acknowledgement as an official partner of the JOC (Japaneselearning the pleasure of sports in jogging with Olympic athletes. In 2008, they

Olympic Committee) for environmental issues in 2003, Sagawa Express

organized an environmental

has proactively conducted many activities, including promotion of theevent, a ‘Sports Power

Olympic Movement, support of the Japanese Olympic delegation, andGeneration Relay Race’,environment enlightenment activities in different events sponsored by thewhere 2,695 participants

JOC.

generated electric power of

The Olympic Day Run is an activity with the objective of getting many people

2,884.24Wh.
A scene from the event venue

T O P I C
We demonstrated good performance in the‘transport’ race in Beijing Olympics
As a company supporting the JOC, we cooperated with them by transporting theentry tickets from China to Japan, shipping official articles for the Japanese delegation, setting up a parcel-delivery service counter and carrying out the international
parcel delivery services during the Olympic Games as a part of the service of the JOC
Japan House*.
*A facility established by JOC as a base for Japanese delegation and Japanese people at site.

Outline of

SG Holdings Group‘Dream Teacher’ fosters healthy minds

Sagawa Express’ booth within Japan House(Number of visitors: about 9,000)

Parcel-delivery service counter

67

From employees to the families
Friendliness to our planet

I want to deliverparcels with smile

Since the time I was assigned to the environmental accounting group, I have stronger
motivation for ecologic activities. I saveelectricity, I don’t waste resources, and I takepart in the used-stamp collecting activity to
donate wheel chairs. It would be wonderful if
we could convey the eco-friendliness to thenext generation and the generation after thatthrough many kinds of environment activities.
Sagawa Express Hokkaido Regional Office
Administrative Dept., Administrative Division

I joined Sagawa Express, because I wanted
to work just like a certain female driver I
knew who always delivered parcels cheerfully with a smile, however big the parcels
were. Now that I am a sales driver, just as I
wanted to be, I am doing my best to deliverparcels to customers with a smile.

Sagawa Express Sendai Branch Sales Dept.

Aya Kobayashi

Megumi Kitamukai

I never do any“sudden” operation

Be a driver who is loved
by people!

What I try to do everyday is Eco Safety
driving. While driving, in order to avoid
sudden startup, sudden acceleration, andsudden braking, I fully concentrate on
driving, having temporal and emotional
leeway, and check the situations around mewith a broad perspective. Such driving leads
to reduction of CO 2 emissions and safe
driving, which is the most important thing.

For the purpose of “no accident in my area,”
I contribute to safety by driving as apacemaker who observes the speed limit. I
will do anything, however trivial it may be,with the objective that as many drivers as
possible are loved by the local citizens andthat Sagawa Express can make further
contribution to society.

Sagawa Express Josai Branch Chief in Sales Dept.

Sagawa Express Nagoya Branch
Chief in Sales Dept.

Kuniyuki Ohsawa

Yuji Maeno

We want to make further contribu
Please listen to the voices of the empl

68

To be trusted by customers
through rapid delivery

Protect children’s smile
through traffic safety school

I feel happy when I can support the work of
my customers and make them happy
through pickup and delivery of parcels. I
would like to expand my knowledge I
learned in the driver contest to be a safer
and more reliable driver and to contribute to
reduction in the number of traffic accidents.

Through the contact with kindergarten andlower grade school children, I try to teachthem the traffic rules and safety issues fromthe point of view of the driver who drives
everyday. What I realize in conversation withour customers is that we deliver feelings ofcustomers together with the parcels. Feelingsatisfaction with this, I want to win more trustfrom the customers.

Sagawa Express Higashi-Osaka Branch Sales Dept

Sagawa Express Tottori Branch Sales Dept.

Konatsu Sugimoto

Nobuharu Suemune

Serve as a pipeline in every
process of the material flow

I also deliver feelings which are
put into the parcels with care

When I can support my customer’s work bymaking suggestions on the transport plansuitable for the customer, I feel that I am
serving society. If I visit my customer withsmile, a smile comes back. I want to contribute to the local society, by delivering positiveenergy together with the parcels.

When I delivered and installed a TV set foran old man who lived alone, he was very
pleased to see the DVD pictures of his
grandchildren on the TV set. Having seen
his pleasure, I felt so happy, becausedelivered the warm feeling of his son’sfamily, and I too could feel the sensation theold man was feeling.

Sagawa Express Miyakonojo Branch Sales Dept.

Sagawa Moving Center Tokyo Branch

Mitsugi Jingao

Takashi Tsuchie

SG HOLDINGS GROUP Sustainability Report 2009

To create a logistics center
considering the environment

Always friendly tothe customers

Sagawa R yutsu Center contributes toenvironment-friendly “Green Logistics” bysuggesting uses of recycled cushioning
materials, reduction of tailpipe gas, andrecycling of garbage. We will continue tomake efforts in eliminating “Muri, Muda,
Mura” (unreasonableness, waste, andinconsistency) in our operation, while taking
good care of our customers precious goods.
Sagawa Global Logistics Nishi-Tokyo
Branch Chief in Ohi SRC

I accept phone inquiries from customers. I
think my contribution to the company would
be to provide them with information necessary for easy management and more efficientuse of e-collect. In the future, I would like toactively take part in in-house environmental
activities, such as the Eco Cap Campaign.

Kanoko Miyagi

Sagawa Financial
Customer Support Team,Sales Promotion Group, Settlement Service Div.

Kyoko Takahashi

Giving satisfaction to customers
as a kind of repayment

Smooth shipment
to customers

As job a qualification, I had only a normal
driver’s license. Still, I could join thiscompany and am doing well, and that’s all
thanks to my boss and fellow workers. To
give something back to them, I haveobtained skills and knowledge to perform
vehicle inspection and servicing to customers’ satisfaction. I would like to make aneffort to further contribute to the company.

I provide customers with telephone support
concerning the Sagawa Express Shipment
Support System, “e-Hiden series.” When I
can solve a problem or trouble of thecustomer, I really feel happy to be able to beof service. The words of “thank you, you
helped me so much” please me very much.

SG Motors Hiroshima Branch

Sagawa Computer System, System Service Dept.
Okinawa Contact Center

Toyokazu Kawabata

Emiko Sakamototion to the society more actively!
oyees of SG Holdings Group

Giving priority to the otherperson over myself

Safer traffic withless illegal parking

Now that I am currently engaged in ISO
14001 related jobs, I make it a rule to think
before acting about what is a good environment for the company, employees, and local
community and what is needed from us.
This year is the 10th year since I joined thiscompany. I am very proud that I am an
employee of SG Holdings Group.

I think we contribute to society with ourbusiness operation of pay-per-the-hourparking spaces, in the sense of reducing
illegal parking. Besides, if we have moreparking lots, we can use roads more widely,which leads to reduction in the number oftraffic accidents. That means we protect thesocial safety.

Sagawa Advance Head Office
General Affairs Dept.

SG Mobile Support Tokyo Branch

Hisako Kondoh

Kouichi Hamada

To satisfaction of
the facility users

Nice words from
customers

We perform proper management of the facilitiesof our company as well as of buildings of which
management we are entrusted with, preventing
water and soil contamination related to fueltanks in the basement or septic tanks. Throughour business of real estate management, we will
make active proposals for building with theconcept of energy saving, when our customer
plans renewed or new construction.
SG Realty Operation Section, Operation Dept.
Tohoku Region Group“I had a good time today! I will come again.”“Thank you.” When I hear customers saying
so with smile, I feel refreshed and swear I
will work hard so that I can give energy forthe following day’s work to customers. I willcontinue providing good service, hopingthat our customers can have a good,
comfortable time from it.

Takaharu Komaki

Nouvelle Golf Club
Sales Section Reception Desk

Masami Matsubara

69

The Third-party Warranty Report Climate Savers Program70

SG HOLDINGS GROUP Sustainability Report 2009

Our Steps in the Fiscal Year 2008

(March 21, 2008 – March 20, 2009)

The following is the summary of major news releases transmitted in FY 2008 from SG Holdings Group.
Date
Mar. 21, 2008
Apr. 14, 2008
Apr. 21, 2008
Apr. 21, 2008
May 8, 2008
May 8, 2008
May 13, 2008
June 2, 2008
June 10, 2008
June 23, 2008
June 30, 2008
July 2, 2008
July 22, 2008
July 24, 2008
Sept. 8, 2008
Sept. 11, 2008
Oct. 1, 2008
Oct. 14, 2008
Oct. 27, 2008
Nov. 5, 2008
Nov. 5, 2008
Nov. 10, 2008
Nov. 17, 2008
Nov. 21, 2008
Dec. 17, 2008
Jan. 15, 2009
Jan. 19, 2009
Jan. 26, 2009
Jan. 30, 2009

Description
Started operation of a SG Holdings Group’s real estate company, “SG Realty”. Promotion of CRE strategy into the real estatebusiness
Conducted the 27th Sagawa Express Nationwide Simultaneous Safety Patrol for Arterial Transport with the objective of securing safe
driving & raising of safety awarenessStarted a mail shipping site “Cattocotto”, which lays importance on the security, safety, and health, making full use of Sagawa
Express’ network across the country
Conducted SG Holdings Group’s Companywide Simultaneous Light-Down Campaign (to turn off the advertising display lights, etc.
in Group’s all branches)
Organized the environmental training course, “Sagawa Express Nature On-site Learning (rice planting experience)” (parent-andchild environmental class in Golden Week)
Started full-fledged marketing of the security system which links the 3D face recognition with the work management, “3D Face
Recognition Work Management System”(Entry in the marketing & leasing of facility security devices)
The Minister of Environment inspected Sagawa Express’ environmental conservation activities
Organized the 16th Sagawa Express National Driver Contest” (with the purpose of traffic accident prevention and environmental
conservation)

SG Holdings
Sagawa Express
Sagawa Advance
Sagawa Express
Sagawa Express
Sagawa Express
Senshukai Co., Ltd.

“Team Minus 6%” through use of the mail shopping

Sagawa Express

Takayuki Tanii , a member of Track and Field Athletics Team of Sagawa Express, was selected as a member of the walk race inBeijing Olympics
Emergency assistance goods (tents) for disaster-stricken area arrived Chengdu in Sichuan Province. A letter of appreciation was
granted by the Chinese Peoples’ Association for Friendship
Sagawa Express was entrusted with transport of official articles for Japanese delegation for Beijing Olympics
Sagawa Express was entrusted with parcel-delivery service counter operation in JOC Japan House, which was set up in Beijing City
during the Olympic Games
Organized the 19th Sagawa Japan-China Friendship Vehicle Maintenance Technical Training” (Bringing Japanese technology on
vehicle maintenance to China)
Sagawa Art museum organized “10th anniversary commemorative exhibition: Ikuo Hirayama - “Genjo Sanzo Guhoh-no-Michi (Roadfor enlightenment) from Sep. 12 (Fri) – Nov. 30 (Sun), 2008

Sagawa Express
SG Holdings
Sagawa Express
Sagawa Express
SG Holdings
Sagawa Art Museum

Notification of the change of the Superyiser. Masafumi Nakaguchi was assigned to a new Superyiser of SAGAWA SHIGA FC

Sagawa Express

Senshukai and Sagawa Express: “Courier with CO2 emission credits service” on Belle Maison net enjoyed good reputation. 11,000

Senshukai Co., Ltd.

parcels within 1 month after introduction

Sagawa Express

Masahiro Ito received the Prime Minister’s Award in the 11ton division in the 40th National Truck Driver Contest. Sagawa’s 11 drivers
in total were awarded with a prize in 3 divisions (4 ton, 11 ton, and female divisions)Contributed to fostering of human resources who will become a cultural bridge between Southeast Asia and Japan (16 scholarshipstudents have been selected)
Organized an environment picture diary contest (Preventing global warming through environmental conservation efforts together
with employees’ families)
Accepted junior-high school students for “workplace experience” which was promoted by the Ministry of Education, Culture, Sports,
Science and Technology as a part of career education (from Nov. 21)

Sagawa Express
Sagawa Scholarship Foundation
SG Holdings
Sagawa Express

Selected 15 studies for “Sagawa Cancer Research Grant”. Granted “Sagawa Special Research Award” and “Sagawa Nursing Care

Sagawa Foundation

Special Study Award”

for Promotion of Cancer Research

In the 47th National Telephone Manners Contest 2008 organized by the Japan Telecom Users Association, participants from Sagawa
Express won the outstanding performance award
The state-of-the-art car maintenance factory (new Sapporo factory), “a blue motor station with an environment-friendly concept,”
opened on Dec. 21(Opening Campaign was held till Jan. 20, 2009)
The state-of-the-art car maintenance factory (new Takamatsu factory), “a blue motor station with good service and friendly
atmosphere also for women,” opened on Jan. 21 (Opening Campaign was held till Feb. 20, 2009)
Newly established 16 natural gas filling stations for global warming prevention and CO2 emission reduction. Promoting introduction
to be the biggest private natural gas fuelled truck operator in Japan

Sagawa Express
SG Motors
SG Motors
Sagawa Express

World Logi Co., Ltd. and Sagawa Express: notification of conclusion of a basic agreement on transfer of a consolidated subsidiary

World Logi Co., Ltd.

and business tie-up

Sagawa Express

Started a new service, “Hikyaku confidential documents recycling courier; confidential documents are picked up from the office andcontrolled up to dissolution process

Feb. 9, 2009

Organized the 5th SAGAWA stakeholders dialog (What is required from distribution companies in the new epoch of environment)

Feb. 16, 2009

Notification of stock transfer of World Supply Co., Ltd. and of conclusion of a business tie-up agreement

Feb. 25, 2009

Sagawa Express Softball Team: notification of an entry of a Beijing Olympics bronze medalist from abroad

Mar. 9, 2009

Sagawa Advance

Senshukai and Sagawa Express introduced “Courier with CO2 emission credits service” on Belle Maison net. Users contribute to

4 companies agreed to establish a joint-venture company specializing in sports article markets

Mar. 3, 2009

Sagawa Express

Sagawa was entrusted with transportation of entry tickets for Beijing Olympics (Air transportation from Beijing to Narita)

Feb. 3, 2009

Mar. 2, 2009

Issued by
SG Holdings

Organized the 8th Sagawa Express Customer Service Contest (Get back our supporters! Aiming at such a telephone manner as towin customers’ confidence)
Obtained the approval to enter the delivery business of designated correspondences – Development and commercialization of a newservice, “Hikyaku Designated Correspondence Delivery”

Sagawa Express
ZETT Corporation, Hitachi Transport System,
Sagawa Express, E-Logit Com.
Sagawa Express
Sagawa Express
World Logi Co., Ltd.
Sagawa Express
Sagawa Express
Sagawa Express

Establishment of a strong affiliation between Sagawa Express and Nichirei Logistics Group head office in the 10th year of “Hykyaku

Sagawa Express

Cool Courier -” Service of good quality is enjoying good reputation; highest sales records in 2008

Nichirei Logistics Group head office

Editor’s
Note

We believe that the businesses of SG Holdings plays a significant part in the enhancement and development of theindustrial and social infrastructures, and that the corporate social responsibility (CSR) of our company lies in our sincere
efforts on this highly public business operation.
We hope that SG Holdings Group’s various activities are properly understood by everyone through reading this CSR
report. Our group will continue to work hard in our business operations, while acknowledging the links with people andsociety. Your valuable comments and feedback will always be welcomed.

SG Holdings Co., Ltd.
CSR Environment working group71For inquiries about this report, please contact:

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

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Tel: 075-671-8600
http://www.sg-hldgs.co.jp/
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Title:CSR Report 2009

Date of issue:June 2009

Next issue:June 2010

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