Communication through Websites

The SG Holdings Group communicates corporate information, business activities, etc. to stakeholders
through a variety of media such as websites.
SG Holdings Corporate Site

Investor Relations

https://www.sg-hldgs.co.jp/english/finance/

https://www.sg-hldgs.co.jp/english/

URLs of Companies in the SG Holdings Group■ Sagawa Express Co., Ltd.
https://www.sagawa-exp.co.jp/english/■ SG Assetmax Co., Ltd. (Japanese)
https://www.sg-assetmax.co.jp/■ SG Moving Co., Ltd. (Japanese)
https://www.sagawa-mov.co.jp/■ SG Motors Co., Ltd. (Japanese)
http://www.sg-motors.co.jp/■ Sagawa Humony Co., Ltd. (Japanese)
http://www.humony.co.jp/■ World Supply Co., Ltd. (Japanese)
https://www.world-supply.co.jp/■ Sagawa Global Logistics Co., Ltd. (Japanese)
https://www.sagawa-logi.com/■ Sagawa Advance Co., Ltd. (Japanese)
https://sg-advance.co.jp/■ SG Systems Co., Ltd. (Japanese)
https://www.sg-systems.co.jp/■ SG Fielder Co., Ltd. (Japanese)
https://www.sg-fielder.co.jp/■ SGH Global Japan Co., Ltd.
■ Nouvelle Golf Club Co., Ltd. (Japanese)
https://www.sgh-globalj.com/english/index.html
http://www.nouvelle-gc.co.jp/■ Expolanka Holdings PLC
https://www.expolanka.com/■ SG Realty Co., Ltd. (Japanese)
https://www.sg-realty.co.jp/■ Sagawa Forestry Co., Ltd. (Japanese)
https://www.sg-hldgs.co.jp/sagawa-fore/

About the cover illustration
A three-dimensional representation of
the connection between the Group’ s
initiatives and society. Our objective is tocontribute to the achievement of SDGs as acomprehensive logistics group and realizea recycling, low-carbon society providing a
comfortable life for everyone.
SDGs explained in video
We have published short videos explaining
the Group’ s initiatives aimed at SDGs. Pleaseview them along with this Communication
Book.
https://www.sg-hldgs.co.jp/csr/sdgs-video/
Search for “SGH SDGs” or use the twodimensional barcode on the left.

68 Kamitobatsunoda-cho, Minami-ku,
Kyoto-shi, Kyoto, 601-8104 Japan
https://www.sg-hldgs.co.jp/english/
TEL: +81 (0)75-671-8600
Title

Publication date

SDGs Communication Book 2021
October 2021

SDGs

SG Holdings Group

Communication Book

2021

SG Holdings GroupWe will promote initiatives
enabling contribution

CSR Statement

to the environment and society

through business with the aim of

The Group has made a CSR Statement clearly showing the significance and approach ofachieving SDGs that are

its CSR activities based on the material CSR issues of the Group

common global goals

that were newly identified in fiscal 2017.

This is used as a guide to go back to whenever
there is doubt about CSR Policy.

Eiichi Kuriwada

for a sustainable society.

SG Holdings Co., Ltd.

Chairperson, CEO and President

Smoothing Out Today,

for a Smarter Tomorrow
Today,

the SG Holdings Group is devoting all of our efforts to using
logistics to provide people with worry-free lives.

This means offering safe, reliable logistics infrastructure.
It means living in harmony with the global environment,
helping to preserve an abundant, happy way of life.

And by using the power of our comprehensive logistics solutions tocreate new value,

we hope to build a smarter tomorrow.

The SG Holdings Group will continue contributing to society through its business,working toward a future in which people connect,
and smiles bring them together.

01

SG Holdings Group SDGs Communication Book 2021

To our stakeholders

The challenges to be overcome for the realization of a sustainable

society are becoming increasingly serious, such as abnormal
weather occurring in locations around the world due to global
climate change, violations of human rights including discrimination

against minorities, and medical problems caused by COVID-19, andour stance toward these challenges is being tested.

The Group takes pride in being an infrastructure group supporting
people ’s lifestyles and society through logistics, and the Grouphas worked as one to conduct business based on the “Hikyaku no
kokoro ” (spirit of Edo-era express messengers), in which we areconstantly thinking about what we can do for our customers. Goingforward, we will maintain our stance of constantly thinking “whatcan we do ” not only for the customer but also for the environmentand society, and promote initiatives enabling contribution to

the environment and society through business with the aim ofachieving SDGs that are common global goals for a sustainable
society.

SG Holdings Group SDGs Communication Book 2021

02

Publication of this Book

In fiscal 2017, we reviewed material CSR issues and incorporated SDGs (Sustainable Development Goals) that offer a common

global perspective in the process. At the same time, we identified the SDGs that are highly compatible with the material CSR
issues established by the Group, and have set out to contribute to the achievement of SDGs through our efforts to addressmaterial CSR issues.

For example, for the material CSR issue of “promoting environmentally friendly business activities,” we have implemented
initiatives related to our core business of logistics, such as promoting the introduction of environmentally friendly vehicles

including hybrids and EVs to curb the emission of greenhouse gases, and the modal shift switching modes of transportation
to railways, ships and bicycles. Furthermore, we are proceeding to implement renewable energy by promoting the installationof solar panels on the Group ’s logistics facilities with the aim of reducing greenhouse gases produced in the generation ofelectricity used. We believe these initiatives are able to contribute to the SDGs “13: CLIMATE ACTION ” and “7: AFFORDABLE AND
CLEAN ENERGY.” By considering SDGs and the Group ’s business together in this way, we are promoting initiatives that lead to theresolution of environmental and social issues through our business.

Demand for express package delivery services is also rising with the expansion of the e-commerce market against the backdropof changes in lifestyles and logistics structure. In modern society where logistics is perceived to be social infrastructure, theSG Holdings Group has conducted business with the mission and pride of playing a part in that. We will continue to fulfill our

responsibility as social infrastructure in the form of logistics, and strive to be able to contribute to the realization of a sustainable
society.

In this book, we have summarized the initiatives of each Group company in relation to the SDGs the Group is focusing upon. We

would appreciate it if everyone who picks up the book gains a deeper understanding of our activities aimed at the future painted
by the SDGs.

Positioning of CSR in
the SG Holdings Group

Material
CSR Issues

Corporate
Philosophy
Management Vision

Charter of Corporate Conduct(Code of Ethics and Conduct)

Shareholders

Practical implementationby each employee

Business
partners

Collaboration

Employees

Customers

Collaboration

Now that initiatives aimed at a sustainable society have become an indicator representing corporate

value, the SG Holdings Group believes that we should share goals with the SDGs to maintain and deepen

the logistics business providing social infrastructure, and “contribution to SDGs ” was established as a key
measure in the Second Stage 2021 Mid-term Management Plan covering the three years from fiscal 2019.

Material CSR issues and SDGs

As a comprehensive logistics group, we are aiming for sustained growth while resolving social issues through ourbusiness. Material CSR issues were specified by identifying risks and opportunities in business domains, extracting
efforts required for risk mitigation and applying requirements from society. In this process, SDGs were utilized associety ’s perspective.
Seven SDGs highly compatible with material CSR issues were identified, and action is being taken to address each ofthese.

SDGs highly compatible with material CSR Issues
Seven MaterialIssuesProviding
Safe and Secure Services
Promoting Environmentally Friendly Business
Activities

Development of Sustainable Society
Mid-term
Management
Plan

The reason the SG Holdings Group is engaging in SDGs

Local
communities

Building an Organizationof Diversity and Inclusion
Creating New Value
Through Comprehensive
Logistics Solutions

Related SDGs

Initiative Themes● Traffic safety● Labor health and safety● Quality● Climate change● Circulation of resources● Coexistence with nature● Human rights● Labor practices● Diversity and Inclusion (D&I)● Provision of advanced
logistics solutions● Promotion of digitalizationand technologies

Contributing toCommunities● Local contributions

Promoting Sustainable
Procurement● Supplier management

Building a Responsible
Management Foundation● Corporate governance● Compliance● Risk management andinformation security* Sales Driver®, GOAL®, X FRONTIER® and SG-ARK® are registered trademarks of the Group. Trademark notation has
been omitted in this book.

03

SG Holdings Group SDGs Communication Book 2021

SG Holdings Group SDGs Communication Book 2021

04

ClimatechangeWe are proceeding to implement environmentallyfriendly vehicles such as hybrids, natural gas
vehicles and EVs. In addition, we have begun
utilizing the TRIKE CARGO electrically assisted
pickup/deliver y vehicle that significantly
increases the load compared to a conventional
electrically assisted bicycle.

P. 07-10

Renewable
EnergyWe have installed solar panels on 100 logistics
facilities owned by the Group in Japan, supplying
the electricity generated as renewable energy
and using it in the Group ’s facilities.

P. 13 -14

GenderWe are promoting D&I (Diversity & Inclusion) for
respecting diverse values and creating new value. Aspart of this, we aim to be a group where women canshine by establishing systems for the empowerment of
women, such as Women's Career Support Training.

P.15 -18

Labor-saving
measuresApproach to SDGs

Delivering to the future with supporting strength

We are promoting the introduction of robots in logistics
facilities for the purpose of increasing productivity.
Furthermore, we are engaged in the optimization ofdelivery routes utilizing AI to contribute to the reductionof driver workload. We are supporting the growth ofthe e-commerce market and the decline in the working
population with technology.

When SG Holdings was listed on the first section of theTokyo Stock Exchange in December 2017, we added theperspective of social issues utilizing SDGs to stakeholder
management. Here, we introduce the responsibilities ofeach employee as a member of a listed group - the action

Traffic safety
We also provide specialized technology andknowledge on safe driving that we have developed
over many years to external business operators
as Safe Driving Training Services. We are also
engaged in initiatives to spread safe driving
not only within the company but also outside
the company for the realization of a safe trafficsociety.

that should be taken to address key issues as we handle theInfrastructure
innovationsocial infrastructure of logistics in response to SDGs thatare goals aimed at the realization of a sustainable society.

P. 11-12

P.19-20

We are creating innovations to resolve a variety
of issues by building infrastructure in the area of
logistics based on new approaches and throughpartnership with start-up companies that haveinnovative and creative ideas.

Response todisasters

We make detailed preparations and plans from all angles
for maintaining and continuing social infrastructure in theform of logistics, and are building systems enabling speedy
execution of these. We are also contributing to society
through logistics by responding to local governments ’requests for delivery of COVID-19 vaccines.

05

SG Holdings Group SDGs Communication Book 2021

SG Holdings Group SDGs Communication Book 2021

06

Climate change/Renewable Energy

The volume of packages
that can be delivered with clean energy
will increase further

FACT The greatest overall global risk combining “likelihood ” and “impact ” is “failure to mitigate and adapt to climate change ”
TargetSource: The Global Risks Report 2021, World Economic Forum

Development for the future13.3 improve education, awareness raising and human and institutional capacity on climate change

mitigation, adaptation, impact reduction, and early warning

Carbon-free trucks becoming
more widespread against
the backdrop of government
policies and regulations

In its action plan for the Green Growth Strategy, thegovernment set the target of aiming for 100% of newsmall commercial vehicles such as light trucks (with amaximum load of 2 tons) sold being electric vehicles(EV, hybrid vehicles, fuel cell vehicles) or supporting
carbon-free fuels such as synthetic liquid fuel by 2040,
setting the direction leading to net zero greenhousegas emissions in 2050.
Overseas, there are countries and regions withemission regulations on commercial vehicles aimed at
becoming carbon-free. The EU requires average CO 2

emissions to be 30% less than 2019 in 2030. California
in the United States decided on regulations requiring
55% of medium-duty trucks and 75% of heavy-duty
trucks to be zero-emission vehicles by 2035. Against
the backdrop of government policies and regulations
aimed at a carbon-free society, manufacturers ofcommercial vehicles and related companies invarious countries are engaged in fierce competition todevelop technologies.

１４，
６３４
Environmentally friendly
vehicles owned by the Group

Changing the Future of the Earth with Diverse
Transportation Methods

�����The number of environmentally friendly vehicles such as hybrid,

energy in distribution warehouses and other business facilities,

gasoline and diesel mainly in urban areas

Group is 14,634 (as of March 31, 2021). Sagawa Express has led

centers and Sagawa Distribution Centers (SRC).

and offices.

natural gas and electric vehicles owned by the SG Holdings

the industry in the introduction of environmentally friendly

vehicles contributing to the reduction of air pollution andgreenhouse gas emissions since the 1990s. In fiscal 2020, theGroup began development of a light electric car poweredby electricity. Field trials are being conducted with a target
range of 200 kilometers. In addition, the Group is promoting

environmentally friendly business such as implementing amodal shift by switching the mode of transportation to trains

and ships with a lower environmental burden, using carbon-free07(As of March 31, 2021)

SG Holdings Group SDGs Communication Book 2021

and improving the efficiency of logistics by utilizing transfer

Sagawa Express is deploying the TRIKE CARGO electricallyassisted pickup/delivery vehicle jointly developed with T-TRIKE.

By employing a towing type in which the load is not directly
borne by the frame, it is possible to increase the maximum
load from 30 kg to 150 kg compared to the electrically assisted

bicycles used in the past, reducing the number of round trips

required to and from pickup sites. Leveraging the characteristics
of a bicycle, these are being utilized as a new means oftransportation in addition to vehicles requiring fuel such aswith high concentrations of residences

We will continue to promote the reductionof CO 2 to contribute to the realizationof the carbon neutral goal set by thego v e r n m e n t fo r 2 0 5 0 t h ro u g h t h ediversification of means of transportationaccording to the delivery area and thecharacteristics of the packages.

■ Clean diesel vehicles ■ Natural gas truck■ Hybrid vehicles ■ EV

�����
����
����
����
(vehicles)

�

����

����

����

����

���� (ﬁscal year)

Number of Environmentally Friendly Vehicles* Only figures for Sagawa Express from fiscal 2016
to fiscal 2018. The figures from fiscal 2019 are for
Sagawa Express, SG Moving and World Supply.

TRIKE CARGO. It can be ridden without powerfulpedaling, and is expected to enable deliveries
to be made by a wide range of people including
women and people without a driving license.

SG Holdings Group SDGs Communication Book 2021

08

Climate change/Renewable Energy

FACT The government has the ambitious outlook of renewable energy accounting for 36% to 38% of all energy by 2030.
Target7.1

Source: Summary of Strategic Energy Plan (Draft), July 21, 2021, Agency for Natural Resources and Energy

By 2030 ensure universal access to affordable, reliable, and modern energy services

Development for the future

New “FIP ” system for promoting
renewable energy in JapanA future where life issupportedby the power of nature

Renewable energy is becoming more widespreadworldwide. Since the introduction of “FIT ” (a systemfor purchasing renewable energy at a fixed price) in
2012, the volume of electricity generated has increased
at an accelerated rate and renewable energy has
become more widespread, but the price of renewableenergy remains high compared to international
standards, and challenges remain for making it
more widespread. To address these, the government
decided on the “FIP* ” system adding a fixed premium
to the market purchase price of renewable energy.
In addition to encouraging competition through theentry of new business operators, it is also expected tolead to investment in electricity storage technologies.
* Feed-in Premium

Active Introduction of Electricity
from Renewable Energy

In order to reduce CO2 emissions, the SG Holdings Group, began introducing CO2-free
power including renewable energy in fiscal 2020, and 18 of the Group ’ s facilities suchas the Sagawa Tokyo Logistics Center switched to using CO2-free electricity in fiscal
2021. This resulted in an estimated reduction of CO2 emissions by 22,000 tons* per year
compared to fiscal 2019.
In response to heightened interest in the environment, comments have also been
heard from within the Group demanding consideration of the introduction of CO2-freeelectricity as a measure to combat climate change. At present, with electricity fromrenewable energy in Japan in limited supply, it was necessary to dispel concerns about
increased costs and to coordinate among divisions.
As part of the work to consolidate electricity contract procedures, the Group hasaligned the contract periods that were previously different for each facility in Group
companies, at the same time has conducting negotiations to introduce CO 2-freeelectricity. We have overcome numerous obstacles related to contract negotiations,obtained the understanding of Group companies, and in the fiscal 2021 contract
realized the introduction of CO2-free electricity in 18 facilities within the Group.
In future, we will continue to switch to CO2-free electricity as one of our initiatives aimed
at the realization of a sustainable society based on the Environmental Philosophy andEnvironmental Policy.
* Calculated based on the amount of electricity used in fiscal 201909

Introduction of
CO2-free electricity

18

facilities(As of August 31, 2021)

Expected reduction in CO2
in the 18 facilities

that introduced CO2-free electricity

Approx.

22,000tons-CO2 / year

Solar panels
installed in

1facilities
００

Promotion of the Operation
and Development of Environmentally
Friendly Facilities(As of August 31, 2021)

SG Realty is continuing initiatives to increase the environmental performance offacilities themselves to curb CO 2 emissions from facilities. In newly developed

logistics facilities, it is possible to curb CO2 emissions more efficiently because anenvironmentally conscious perspective can be incorporated from the design phase.
The SG Realty Higashiosaka logistics facility completed in 2021 has solar panels

installed on the roof to provide a source of electricity used in the facility. Furthermore,

the shortfall in electricity at night and other times is covered using CO2-free electricity,
resulting in the realization of an environmentally friendly sustainable logistics facility.

In addition, energy is also saved by selecting lighting equipment with high light

diffusion and brightness to reduce the power consumed, and well-insulated exterior
walls called sandwich panels. These facility specifications have resulted in SG Realty

Higashiosaka obtaining ZEB* evaluation, which is the highest level of BELS certification
evaluating the energy-saving performance of buildings.

SG Realty Higashiosaka* Zero Energy Building: A building that has net zero primary energy consumption due to energy saving and energy

SG Holdings Group SDGs Communication Book 2021

creation.

SG Holdings Group SDGs Communication Book 2021

10

Traffic safety

FACT One life is lost worldwide every 24 seconds in traffic accidents,
Target

3.6

with 1.35 million people fatalities each year
Source: Global Status Report on Road Safety 2018, World Health Organization (WHO)Cars may become safer
vehicles in the future
Initiatives aimed at the future

by 2020 halve global deaths from road traffic accidents

Drive recorder
Digital tachograph
Smartphone

Car navigation

Health check
Alcohol check

Other IoT devices

Multi-vendor/multi-device support
SG Systems

Telematics platform (Biz-Fleet)

Cloud-based operations
management system

SG Systems has developed and offers services using
the Biz-Fleet cloud-based operations management
system for transportation business operatorsand passenger business operators such as buses
and taxis. It features multi-vendor support for
digital tachographs* enabling linkage with digitaltachographs from multiple manufacturers, and multidevice support enabling linkage with devices such as
drive recorders, car navigation systems, smartphones
and alcohol detectors. It is a service enabling complex
centralized management of vehicles and drivers, andreal-time confirmation and analysis by consolidating
information from devices linked over the Internet on a
cloud-based platform.
* Digital tachograph: A device for digitally recording avehicle’s driving data. Installation is mandatory in businessSupporting a Safe Traffic Society
through the Provision of Safe Driving
Training Services

As a professional of safe driving, Sagawa Express is putting into practice the creationof safety management systems and the reduction of traffic accidents not only byincreasing the driving skills of drivers, but also raising safety awareness and thoroughly
implementing vehicle management.
Under the theme of “reducing traffic accidents within the company and throughout
society as a whole,” we have provided Safe Driving Training Services for generalbusiness operators outside the company since 2013 based on the safe driving knowhow
we have developed over many years.
In addition to holding various forms of driving skills training such as Basic Safe Driving
Training using training vehicles to learn the basics of driving and Safe Driving Instructor
Training for developing driving teachers at the company ’s training center, the company
also conducts on-site training, safety lectures and aptitude tests (OD safety tests) thatare customizable to meet participants ’ requirements.
Furthermore, since being certified as training institution by the Minister of Land,
Infrastructure, Transport and Tourism in 2015, the company has also provided basic
classes and general classes for operation managers. In future, we will continue tocontribute to traffic safety of society as a whole through a variety of Safe Driving
Training Services.
11

SG Holdings Group SDGs Communication Book 2021

vehicles with a gross vehicle weight of 7 tons or more or a
maximum loading capacity of 4 tons or more.

Training results

202
1,371
sessions

Total ofparticipants(FY2020)

Creation of a preventative inspection
and maintenance system based on
the characteristics of delivery vehicles

SG Motors performs vehicle inspections and maintenance on the approximately 26,600
vehicles owned by the Sagawa Express and other Group companies. Due to manyof the delivery vehicles used by Sagawa Express being operated with practices suchas stop-and-go, turning off the engine and removing and inserting the key, detailed
inspections are conducted on areas subject to more wear than ordinary vehicles, andthe relevant parts are replaced more frequently. In addition, inspection items havebeen established according to the model year of the vehicle, and a system is in place
to provide preventative inspections and maintenance to prevent failures occurring
due to deterioration caused by aging. In the event of a failure or a problem, the actual
vehicle is checked with the manufacturer, and the knowledge of the manufacturer isalso utilized in an effort to identify the cause and take measures to prevent recurrences.
Furthermore, SG Motors has also built a partner network with vehicle maintenanceproviders with national certification as designated maintenance facilities to provide
vehicle maintenance in areas that cannot be covered by the company ’s own facilities.
The service providers in the partner network are required to comply with the Group ’s
maintenance standards, and SG Motors makes an effort to maintain the same service
level throughout all of Japan through bidirectional sharing of information as needed.

Maintenanceperformed

220,000
vehicles in total(FY2020)

SG Holdings Group SDGs Communication Book 2021

12

Gender

Diverse values will
create a new future

FACT Japan is ranked 120th worldwide in the Global Gender Gap Index
Target5.5

Source: The Global Gender Gap Report 2021, World Economic Forum (WEF)

Ensure women’s full and effective participation and equal opportunities for leadership at all levels of decision-making inpolitical, economic and public life

Development for the future

Promotion of participation
by women in politics andcompanies

Japan was ranked 120th among 156 countries in the“Global Gender Gap Index 2021 ” published by theWorld Economic Forum. This index is prepared using

data from the four categories of economy, politics,

education and health, and Japan ’ s ranking wasparticularly low in economy and politics, with low

participation by women in politics and in managerial

positions within companies. Participation by womenin politics and companies is required to fill the gendergap.

Promote the participation of women and transform
corporate culture
The SG Holdings Group is promoting D&I (Diversity & Inclusion)
creating new value through flexible ideas and decision making
from a multi-faceted perspective with respect for diverse values.
The logistics industry is largely made up of men due to thenature of the business, and it could be described as an industry
where the working environment and corporate culture tend tosuit men especially in the transportation division. Furthermore,
one issue for gender equality is that it is also a fact that mosthousework and childcare is handled by women when reaching
the phase of marriage, giving birth and raising children. *The Group is no exception with few women employed. In
today ’s society with a declining birthrate and aging population,
however, we must undergo a transformation to provide a
working environment and corporate culture accessible toanyone in order to be chosen as a company. Against the
backdrop of this sense of urgency, the WakuWaku Women ’s
Project spanning the Group was established in 2011 with theaim of promoting active participation by women.
Since then, the project has expanded activities into thepromotion of D&I (Diversity & Inclusion), while implementing

13

SG Holdings Group SDGs Communication Book 2021

the five-year plan mentioning the percentage of female
employees rate and the percentage of females in managerial
positions as its key performance indicators since fiscal 2016.
Awareness of both male and female employees has changed
greatly since the initial phase, and due to the progress madewith various systems and the establishment of training, thepercentage of female employees has increased to 33.9% (up5.8 points from 28.1% in fiscal 2016), and the percentage ofmanagerial positions held by women has increased to 9.2%
(up 5.8 points from 3.4% in fiscal 2016). Furthermore, we will
establish a new three-year plan in fiscal 2021 and proceedwith initiatives aimed at promoting women to decisionmaking positions. The Women ’ s Career Support Training
we have implemented to date has been renewed to be morepractical, and we are establishing systems for supporting theempowerment of women, such as continuing to implement thesystem for training candidates for managerial positions.

* In the “National Survey on Family in Japan, 2018 ” by the National Institute ofPopulation and Social Security Research, the percentage of housework done by thewife was 83.2%.

The “ability to think and act for
oneself ” learned through training

Ayako Umino, General Manager of the Internal Audit Department of Sagawa Global
Logistics, is one person who received Women ’s Career Support Training for supporting
career development and changing the mindset of women. She was very anxious when

she was nominated for a managerial position, but says that she learned the “ability
to think and act for oneself ” by taking the training. “In the training, I learned about

the importance of work-life balance, understanding diversity, and a long-term career2016▶2020
The percentage of managerial

5.8

positions held by women
increased bypointsvision. In group work, we shared our worries and concerns, and learned constructive

approaches through the process of thinking through to solutions, and I feel that thesense of ownership of participants including myself was increased.”“Thanks to the training, I have been able to face my everyday work with a constantsense of ownership. The things I learned in training such as logical thinking and theimportance of time management are useful even now in day-to-day operations.”“I would like any female employees who are anxious about career advancement to takethe training. If you gain any realizations through the training, I would like you to takethem back to your department and actively share them with the people around you.
If the circle of such realizations spreads among the surrounding female employees, I

think it may lead to development of younger personnel, and changes in the awarenessof women and the organizational culture.”

Sagawa Global Logistics
Ayako Umino, General Manager,
Internal Audit Department
SG Holdings Group SDGs Communication Book 2021

14

Labor-saving Measures and Infrastructure Innovation
FACT Since 1970, Japan has been consistently last in the ranking of G7 labor productivity
Target8.2

Source: Japan Productivity Center “International Comparison of Labor Productivity 2020”

Achieve higher levels of economic productivity through diversification, technological upgrading andinnovation, including through a focus on high-value added and labour-intensive sectors

Initiatives aimed at the future

Selection in the DX Stocks 2021

SG Holdings was selected in the DX Stocks 2021*
due to being recognized for “elimination of legacy
systems and internalization of development andmaintenance,” “data-driven management based on
one-stop accumulation, utilization and analysis ofdata ” and “operational reforms and strengthening ofservices utilizing advanced technology such as IoT, AI
and robotics.” We will continue to promote DX and

The era when robots
deliver packages is nearprovide optimal solutions to customers.

* DX Stocks: A selection of companies with an excellent
digital utilization track record jointly selected by the Ministryof Economy, Trade and Industry and the Tokyo Stock
Exchange.

Supporting the logistics workplacethrough the utilization of robots

The labor savingrate of the seamless
e-commerce platform
is approximately

50%

times while looking at the packages for the area they cover, and spend tens of minutes
on loading packages and arranging invoices. An issue for improving the efficiency ofoperations such as loading of packages and rearranging invoices. Presenting optimized

on people and increasing productivity. For example, the seamless e-commerce platform

delivery routes makes it possible to provide a uniform level of service to customers

within the X FRONTIER next-generation large-scale logistics center has achievedby ensuring even drivers with little experience in the area such as new personnel andapproximately 50% labor saving by adopting shelf transportation robots and a robot

those brought on as support can deliver packages efficiently. Furthermore, it can also

storage system developed based on a concept called “goods to person ” in which goods

contribute to the reduction of the workload of new drivers, the creation of a driverare brought to people rather than people going to pick up goods.

support system during busy periods and assisting the alleviation of the driver shortage.

This has led to the establishment of an environment in which employees can engage

SG Holdings Group SDGs Communication Book 2021

Drivers think about the order of deliveries with consideration for addresses and delivery

the optimal delivery order, and this is expected to improve the efficiency of associatedrobotics technology related to logistics for the purpose of reducing the burden placed

15

addresses and designated times, and the optimization of delivery routes utilizing AI.

the information in these handwritten invoices, it is possible to set routes rearranged in

dependent on human labor. Sagawa Logistics is proceeding with the introduction of

productivity.

Sagawa Express is engaged in the digitalization of invoice information such as delivery

this task is that around 10% of invoices are handwritten. By using AI-OCR* to digitalize

Work in logistics facilities is very labor intensive with a high percentage being

in work that produces higher value, and contributed to improvements in labor

Supporting drivers on the front linewith AI“AutoStore ” robotic storage system.

* Optical Character Recognition is a technology for reading handwritten and printed text with a scanner andconverting it into digital text code.

Delivery route displayed on a driver ’ssmartphone (image).

SG Holdings Group SDGs Communication Book 2021

16

Labor-saving Measures and Infrastructure Innovation
FACT Japan is 16th in the Global Innovation Index
Target9.1
9.4

Source: Global Innovation Index 2020, World Intellectual Property Organization (WIPO)

Develop quality, reliable, sustainable and resilient infrastructure, including regional and transborder infrastructure, to support economic development and human well-being, with a focus onaffordable and equitable access for allBy 2030, upgrade infrastructure and retrofit industries to make them sustainable, with increased
resource-use efficiency and greater adoption of clean and environmentally sound technologies

Initiatives aimed at the futureand industrial processes, with all countries taking action in accordance with their respective

The eggs of ideas
may change thefuture of logistics

9.5

capabilities

Enhance scientific research, upgrade the technological capabilities of industrial sectors in all
countries, in particular developing countries, including, by 2030, encouraging innovation andsubstantially increasing the number of research and development workers per 1 million people
and public and private research and development spending

Support for the GIGA School
Concept

We provide GIGA Smart Support utilizing the Group ’s
logistics know-how for the realization of the GIGA School
Concept* advocated by the Japanese government.
GIGA Smart Support contributes to the rapid realizationof the concept by providing all-in-one support ranging
from transportation of one device per child to thecollection and repair of damaged devices and thedeployment of school networks.

* GIGA School Concept: A concept put forward by theJapanese government with the aim of distributing one
ICT device to every elementary and junior high school

student, and establishing high-speed broadband network

SG-ARK home appliance recycling
collection matching system

17

SG Holdings Group SDGs Communication Book 2021

８，
５６０matches(August 2020 - July 31, 2021)

Sale
Pick-uprequestConsumer

SG-ARK

Contract

Collection

the resources and know-how of Sagawa Express to create innovation for resolving

needs and issues in society and the logistics workplace, thereby contributing to theadvancement of society. Business development with start-up companies is conducted

90

applicants(FY2020)

dedicated personnel and actively communicating with start-up companies, we provide
Electronics
manufacturer, etc.

Collection service provider

Image of recycling of home appliances using
SG-ARK.

aim of aggregating the innovative technologies and ideas of start-up companies andworking hand in glove to consider commercialization of the business. By assigning

Retailer e-commercesite or store

Matching

Sagawa Express is implementing the SAGAWA ACCELERATOR PROGRAM with theby selecting dedicated business development personnel within the company, andThe SG-ARK System

Recycling

SG Moving is providing new logistics infrastructure through the SG-ARK service foracting as an intermediary between retailers selling home appliances and collection
service providers picking up recycled home appliances. The Home Appliance Recycling
Act requires retailers to collect four types of home appliances (refrigerators and freezers,
washing machines and clothes dryers, air conditioners and televisions) for recycling anddeliver them to the manufacturer, etc. When a retailer uses a collection service provider
to perform collection for recycling, a direct contract must be concluded. For this reason,
the selection of nationwide collection service providers and conclusion of contracts isa significant burden for retailers with a nationwide sales network due to e-commerce,
etc. This service enables retailers requested to pick up goods by consumers to searchfor collection service providers in the relevant area via the Web, and conclude directcontracts while comparing transportation prices, etc. The use of electronic contracts
also simplifies procedures compared to conventional written contracts. Furthermore,with regard to the “obligation to deliver, manage and retain home appliance recycling
vouchers ” imposed on retailers under the law, the information be digitized andmanaged in the system, enabling all of the complicated procedures in the collectionof home appliances for recycling to be completed. The provision of the system
improves efficiency of home appliance recycling and ensures appropriate collection
and transportation, contributing to the realization of a recycling-oriented society withsustainable consumption and production.

Open innovation with start-up
companies

environments in schools.

backup for commercialization in a variety of ways.

In fiscal 2020, five companies were chosen from among 90 applicants, and PoC (Proof ofConcept) work was carried out. Of these, progress has been made in the developmentof a system for supply chain coordination among business operators using two-

dimensional barcodes and a system for delivering packages to the front door or inside
apartments* using “smart locks ” with smartphones being used instead of keys or facialrecognition technology to open the lobby doors of apartment buildings.

* Deliveries are only made inside apartments when consent has been obtained from the customer in advance.

One of the chosen ideas. Using smart locks
to reduce absence redelivery.

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Responses to Disasters

FACT Economic losses caused by disasters worldwide total USD 300

billion annuallySource: United Nations Office for Disaster Risk Reduction (UNISDR)

Target"The Pocket GAR 2015. Making Development Sustainable: The Future of Disaster Risk Management".

11.b By 2020, substantially increase the number of cities andhuman settlements adopting and implementing integrated

Initiatives aimed at the future

policies and plans towards inclusion, resource efficiency,
mitigation and adaptation to climate change, resilience

to disasters, and develop and implement, in line with the
Sendai Framework for Disaster Risk Reduction 2015-2030,
holistic disaster risk management at all levels

11.4 Strengthen efforts to protect and safeguard the world ’s

cultural and natural heritage

11.5 By 2030, significantly reduce the number of deaths and thenumber of people affected and substantially decrease thedirect economic losses relative to global gross domestic
product caused by disasters, including water-related
disasters, with a focus on protecting the poor and people

Aiming for a planet where
humans and nature coexist

in vulnerable situations

Expolanka Freight (EFL) in Sri Lanka is working with
the Sri Lankan government to plant trees to restore

native plants in Bundala National Park where alienplant species have proliferated. The activities began

in 2019 with the plan to plant 125,000 trees over
five years. The activities will restore biodiversity and

Delivery routes may
not just be roads

Supporting the restoration of the functionsof society with vaccine transportation“Sustainable cities and communities ” are mentioned in the SDGs. It is no overstatement
to say that COVID-19 wreaking havoc worldwide is a disaster that threatens people ’s
lifestyles.
Sagawa Express and Sagawa Global Logistics are operating vaccine distribution sites anddelivering vaccines at the request of local governments throughout Japan. Sagawa Global
Logistics has been entrusted to operate vaccine distribution centers (intake, inspection,
storage, sorting, etc.) due to having experience and know-how in pharmaceutical logistics
requiring temperature control and hygiene control, and being recognized for good accessfrom warehouses to urban areas in some regions. In addition, Sagawa Express handles
the delivery of vaccines from storage warehouses to vaccination sites using dedicatedvehicles. Due to the characteristics of the vaccines, know-how for efficiently delivering
to more sites in a limited time is required. It is sometimes necessary to deliver vaccines
to hundreds of locations in a single day, and the know-how on dispatching vehicles that
we have accumulated is used to provide efficient vaccine transportation. Going forward
as a logistics business operator, we will contribute to the restoration of the functions ofsociety affected by infectious diseases and disasters.

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SG Holdings Group SDGs Communication Book 2021

270
contracts(As of August 19, 2021)

Inside of a transportation vehicle

contribute to the preservation of the rich nature where
various native plants can thrive.

Maintaining and continuing logistics
as social infrastructure

In order to return to normal as quickly as possible after the occurrence of a disaster, it isnecessary to make detailed preparations and plans from all angles and have the ability
to swiftly implement these.
Sagawa Express has prepared a BCP (Business Continuity Plan) chart summarizing therisks surrounding sales offices nationwide in the event of a disaster. If systems cannot
be used due to power outages, power supply vehicles deployed in each area are used,
and a system has been put in place to maintain and continue logistics by using analog
methods such as telephones and paper for items normally managed using systems.
In addition, large-scale scenario drills are also periodically conducted in the Group to
ensure appropriate responses can be made in the event of a disaster. We also cooperatewith external drills, and participated in an air transportation drill assuming roads havebeen cut off that was conducted by the Ministry of Land, Infrastructure, Transport andTourism and Saitama Prefectural Government in fiscal 2017.
Further, we have concluded disaster agreements and comprehensive partnershipagreements with local governments nationwide in an effort to resolve regional social
issues in cooperation with local governments. We will continue to create systems in
preparation for disasters, etc. to maintain and continue logistics services providing vitalsocial infrastructure.

Total
number of disasteragreements andcomprehensive partnershipagreements with local communities

120
Approximately(As of March 31, 2021)

Drill conducted with the Ministry of Land, Infrastructure, Transport and Tourism and Saitama
Prefectural Government. Supplies carried by
Ground Self-Defense Force helicopters were
loaded into trucks and transported to evacuation
centers and other locations.
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Efforts by Group companies to address SDGs
Sagawa Humony

Evolved telegram services providing the giftof words and thoughts

SG Fielder

As a result of hiring female partner employees as regular employees, supporting careerwith communications infrastructure in the form of telegrams. For example, telegrams are used

Promotion of Female Participation and Career Advancement in the Workplace, SG Fielder

development and promoting work styles through work-life balance based on the Act on

obtained the highest rank (three stars) in “Eruboshi ” ( “L Star ” ) certification as a company thathas actively engaged in promoting the participation of women in the workplace.

to provide new value by creating new services such as flower gifts offering joy and inspiration,and unique designs for new applications that do not fall within area of traditional ceremonial

The company will expand its efforts into promotion of D&I in future, and promote initiatives
that make work feel fulfilling by seeking to develop diverse work styles and friendly working
conditions.

functions.

Delivery operations for freshly baked wholecake mail order services

Nouvelle Golf ClubWorld Supply has been entrusted with delivery operations for the TOKYO CAKE DIARY freshly
baked whole cake mail order service operated by Hankyu Hanshin Department Stores ’website. (Limited to the 23 wards of Tokyo) Through our delivery operations, World Supply
supports the mail order service delivering delicate freshly baked cakes that require difficult
temperature management and susceptible to damage. As many people are refraining fromgoing out due to the prolonged COVID-19 pandemic, department stores are expanding new
initiatives to meet the needs of customers who wish to buy cakes from popular patisseries andbrands in department stores as a little bit of luxury for special occasions.

SGH Global Japan

Supporting Japanese companies’ entry into
Asian markets

Sagawa Forestry

Kochi and Tokushima with the mission of “protecting the forest cycle. ” Forest preservation
operations such as tree thinning and reforestation contribute to the “sustainable forest
management ” included in the SDGs, and the proceeds obtained through the operations areused to continue acquisition of new forests.
The timber grown is used for applications such as construction materials for the Group ’ sfacilities, and creating demand for the utilization of timber contributes to the sequestration of
CO2.

Taiwan and China. The company supports the expansion of global sales channels of a varietyof customers by developing and providing a high-quality, reliable transportation network. Bybuilding sustainable, robust logistics infrastructure in various countries, SGH Global Japan willcontinue to contribute to the development of customers businesses and the enrichment of the
lives of people living in Asia.

with consideration for ESG

As the asset management company of a privately placed real estate fund along with SGASSETMAX-REIT, a privately placed REIT mainly investing in logistics properties, SG Assetmax
is promoting ESG initiatives in cooperation and coordination with a variety of stakeholders
surrounding the real estate under management. One such initiative is the acquisition ofenvironmental real estate certification, and in June 2021, the Sagawa Tokyo Logistics Center
obtained A-rank evaluation under CASBEE real estate evaluation certification providing
comprehensive evaluation of the environmental performance of buildings.

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SG Holdings Group SDGs Communication Book 2021

Forest preservation in Sagawa Forests
Sagawa Forestry conducts business in approximately 800 ha of Sagawa Forests owned in

Asian markets, SGH Global Japan is strengthening coordination with logistics companies in

Promotion of asset management operations

Coexistence with the community throughjob creation and preservation of the naturalenvironment

Nouvelle Golf Club has actively hired young people from neighboring areas and createda fulfilling working environment. The female employees who account for 90% of the total
are active in a variety of positions including managerial positions. In addition to working topreserve the forest environment through tree planting and tree thinning, the four ponds within
the golf course are maintained and managed to serve as regulating ponds to contribute to thecreation of a sustainable local community by providing measures to address flooding causedby heavy rainfall in the region and maintaining water supply to rice paddies in the event of adrought.

In order to support the cross-border e-commerce operations of Japanese companies in

SG Assetmax

Acquisition of highest rank (three stars) in the “Eruboshi” (“LStar”) certification system of certification by the Minister of
Health, Labour and Welfare

Sagawa Humony supports the advancement of society and the happy and high-quality

lifestyles of people by encouraging communication in a variety of situations connecting people

World Supply

Initiatives to address SDGs are also being carriedout in a variety of other fields within the Group.
Some topics from Group companies are introduced
below.

We welcome your feedback

The SG Holdings Group discloses its initiatives aimed at SDGs and sustainability, and aims toachieve meaningful communication with stakeholders. We ask that you send your feedback to
the following email address in order to enable us to receive a wide range of opinions to improvethe content of this report in future.

PR&CSR Unit in the General Affairs Department, SG Holdings Co., Ltd.

group-csr@sg-hldgs.co.jp

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