SG HOLDINGS GROUP Corporate Social Responsibility Report 2015

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

CSR (Corporate Social Responsibility) Activities

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

CSR Report 2015
Corporate Social Responsibility Report

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

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

68, Tsunoda-cho, Kamitoba,
Minami-ku, Kyoto, 601-8104 Japan
TEL +81-75-671-8600
http://www.sg-hldgs.co.jp
Title — CSR Report 2015
Published — June 2015
Next issue planned for — June 2016
Printed by — Sagawa Printing Co., Ltd.

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

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CONTENTS

SG Holdings Group Corporate Philosophy“Trust, Create, Challenge”

4

Message from Chairperson and President

6

Business Outline

12 Highlight 1

Creating Attractive Towns and Cities
New Urban Development that Takes Logistics into
Consideration

The SG Holdings Group will:- Earn the trust of customers and society and grow together.

14 Highlight 2- Create new value and contribute to social development.

From Expansion of Work Fields and Career
Development to Women-Driven Business Creation- Always take on the challenges presented to us, pursuing all possibilities.

Pioneering Management Promoting the Active Participationof Women

CSR Activities Report
16 Goals and Results of Material CSR Issues
18 Providing High-Quality Services with a Foundation of Safety
24 Promoting Business Activities with the Goal of EnvironmentFriendliness
31 Contributing to the Development of Communities

SG Holdings Group's Approach to CSR

34 Building an Organization with Individuality and Diversity
37 Constructing Supply Chain CSR
38 Building a Responsible Management Foundation

Sustainable Development

42 Foundation Activities
44 Global Group Company Business and CSR Activities

We believe that CSR for the SG HoldingsGroup advances the development of asustainable society. Each and every
employee puts the SG Holdings Group's
corporate philosophy to practice withcooperation of the stakeholders.

47 Third Party Opinions Regarding the SG Holdings Group CSR
Report 2015

Create new values by utilizing
management resources and deepening
cooperation inside and outside of theGroup, while aiming to strengthen ourmanagement foundation and achieve
lasting growth

Corporate
Philosophy

Mid-Term
Management Plan

Material CSR Issues

Third Stage Plan

Declaration to Earn the Trust andEmpathy of SocietyManagement Vision

The SG Holdings Group aims to be a company
that is beneficial to society, by creating added
value, through fair competition, whilst
supporting the development of economies
and societies.

Corporate Charter ofBusiness Conduct
Society

Shareholders

Editing Policy
Two versions of the SG Holdings Group CSR Report have been published: a digest(PDF version) and a detailed report (an online version written in Japanese only).
This CSR Report Digest emphasizes ease of reading, targeting readers such as
customers, business partners, employees and the general public. The online
version contains information related to our group CSR activities, including
numerical data, targeting readers such as professional researchers of theenvironment and CSR.
In this report, we have included content that has major interest or significance forour stakeholders and which is extremely important for SG Holdings Group, basedon our newly identified “priority challenges in CSR.” Specifically, we have included
special articles on “Revitalization of Towns and Cities” and “Promotion of Activities
by Female Employees” - areas in which we made significant progress in fiscal
2014. At the end of the report, we have asked Professor Mika Takaoka of Rikkyo
University’s College of Business to provide us with an expert third-party opinionon our activities in each of the “priority challenges.”

Reference Guidelines
Ministry of the Environment, “Environmental Reporting Guidelines 2012”
GRI, “Sustainability Reporting Guidelines (4th Edition)”
ISO26000 (Guidance on social responsibility)

WebsiteBusiness
Partners

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

Practical implementation by each employee
Customers
Cooperation

Employees

Cooperation

Report Period
March 21, 2014 - March 20, 2015
* When reporting periods differ, clarification will be provided as needed.

Organizations Subject to Reporting
SG Holdings Group Companies and Foundations* Group-wide business initiatives are referred to as SG Holdings Group initiatives.
* 
Activities related exclusively to specific companies and organizations areclarified as needed.

2

SG HOLDINGS GROUP CSR Report 2015

SG HOLDINGS GROUP CSR Report 20153

Message from Chairperson and President

As the challenges faced by society become increasingly complex, the SG
Holdings Group will contribute to the development of a sustainable society
by meeting the needs of our customers from a variety of perspectives.
Steady implementation of the Mid-term Management
Plan with a view to achieving the Management Vision(GO Advanced Logistics), cross-functional strategic sales development

a new company SG Lawson, Inc. in June 2015. By providing a delivery

the future in the light of the business environment that surrounds ourteams, and launched initiatives to allow us to make customized proposals

service at convenience stores nationwide, we have successfully establishedgroup. For this reason, revitalizing the organization and deepening

for each customer in the field of advanced and optimized logistics. We will

an even more convenient “last mile” in our delivery network.

communication between our employees is one of our most pressing

The business environment surrounding our group is changing at a dizzying

make use of this opportunity to expand the business, develop

pace. Changes include the globalization of the economy, declining birthrate,internationally integrated logistics, and promote the accelerated provisionaging society, and the hollowing out of industries. In these changing times,of new high value added services.

the needs of our customers and the living environments of individuals are

In terms of expanding our global business, we have acquired EXPOLANKA

management challenges. Through the WakuWaku Women’s Project, we

CSR Management Reforms
Identified Six Material Sustainability Issues

have pursued ongoing measures to promote the utilization of women’s
skills and in fiscal 2014. We also implemented a variety of measures topromote internal communication, including the establishment of the

HOLDINGS PLC (the largest freight forwarder in Sri Lanka). The aim of

As the structure of society undergoes rapid change, social issues have becomesociety, our group will implement reforms to achieve the following goals, as

the takeover is to develop our business westward from Asia with a view toincreasingly diverse and complex. Our group aims to work in partnershipset out under our Management Vision: “Create new values by utilizing

establish a global network to complement our existing network in thewith a variety of stakeholders and make full use of group synergy to help

management resources and deepening cooperation inside and outside ofPacific Rim, where our group already has a strong presence.

overcome these social challenges through our business. We recognize thatthe group, while aiming to strengthen our management foundation andRegarding innovation of our business models, in addition to launching acarrying out appropriate corporate management from the perspective of CSR

achieve lasting growth.”

new “smart delivery” service, which has brought about logistics innovations

has become more important than ever if we are to achieve this goal.

One of the strengths of SG HOLDINGS GROUP is our ability to provide

As the second year of the “Third Stage Plan” (SG HOLDINGS GROUP’s

at commercial facilities, we have provided “facilities management solutions”

In fiscal 2014, we newly identified Six Material Sustainability Issues andintegrated logistics solutions through the supply chain from upstream to

Mid-term Management Plan), during fiscal 2014 we promoted our businessin a way that displays the combined strengths of the group to the maximum.

developed management initiatives to increase the effectiveness of CSR at

downstream. In terms of the area of our activities, we cover 60 countries andbased on the following themes: “pursuing group synergy,” “expanding

Thereby developing new value-creating business with a view to promote

our group from the dual perspectives of developing a sustainable society andregions throughout the world. As we go about promoting CSR management inglobal business,” and “reforming business models.”

community development and the revitalization of towns and cities. In April

achieving ongoing growth of the business. We have also formulated a new

the future, it will become essential to implement initiatives across the supply

As part of our efforts to pursue group synergy, we have established GOAL

2015, we entered into a business alliance with Lawson Inc,. and established“Environmental Philosophy and Environmental Policies” and “Supplier CSR

chain. We intend to work in partnership with our more than one million

Guidelines” and we believe that this is an important strategic move in terms

suppliers throughout the world as we go about developing a sustainable societyof strengthening a platform on which to build a global governance system.

in a way that respects local cultures and the human rights of workers.

Furthermore, we have developed a variety of additional measures, including

We have a responsibility to provide logistics as a key part of social infrastructure.

a review of our risk management system and the further strengthening of

Similar to the blood that flows through a human body, we will provide our

BCP and BCM.

logistics service to society steadily and continuously. In other words, we will

also undergoing major changes. As we face these turning points in the“Internal Corporate Entrepreneurship System.”Approaching and promoting CSR throughthe entire supply chain

meet our customers’ demands with sincerity and deliver goods and services

Responding to social challenges and implementing
new initiatives to revitalize the organization

rapidly, reliably and carefully. The SG Holdings Group will work towards thisgoal as a united team so that we can continue to fill this role in the future.

In fiscal 2014, in the field of the environment, we received accreditationfor our on-site logistics initiatives under the “Tokyo regional logistics
streamlining accreditation system,” and took on the challenge of
implementing numerous advanced measures, including the acquisition ofcarbon neutral accreditation and the introduction of electric vehicles. In

Eiichi Kuriwada
Chairperson and CEO
SG Holdings Co., Ltd.

response to the major social challenges faced as a result of the declining
birthrate and aging of society, the entire group has come together to build
workplaces for a diverse range of employees, including female employees,
older employees and global human resources, as we seek to secure adiverse workforce. We have actively sought to promote diversity.

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

We believe that “group solidarity” will become increasingly important in
Chairperson and CEO Eiichi Kuriwada (left) and President and COO Tadashi Machida (right) of SG Holdings Co., Ltd.

4SG HOLDINGS GROUP CSR Report 2015

SG HOLDINGS GROUP CSR Report 20155

Business Outline

SG Holdings Group: Connecting
People, Society, and the Future
Key Figures - SG Holdings GroupAs of March 2015

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

Express packages handled per year

Customer accounts

about

1,200

about

1

million

Vehicles in fleet (Delivery trucks)

millionLow-emission vehicles

25,560Name:

SG HOLDINGS CO., LTD.

Established:

March 21, 2006

Business Content:Group management strategies, administration, and related business.

Head Office Location:

68, Tsunoda-cho, Kamitoba, Minami-ku, Kyoto, JapanCHAIRPERSON and CEO

Eiichi Kuriwada

PRESIDENT and COO

Tadashi Machida

Total assets:

585,230 million yen

Net assets:

207,547million yen

Capital:11,882million yen

Consolidated Performance

6,927(100 millions of yen)(100 millions of yen)

10,000

8,000

8,943

8,811

633
500

643
503

8,713
28

8,350

123
303

295

6,000

4,000

SD (Safe Driver) certification rate

Global network

92.7

%

7,809

455

433

652
498

583

548

500

8,574

400

593

809

45

7,534

7,094

200

7,125

60

100

0

2010

2011

Delivery Business

2012

2013

Logistics Business

Operatingrevenue

Operatingincome(100 millions of yen)(100 millions of yen)

10,000500

02014 (FY)Real Estate Business

Operatingrevenue

Operatingincome(100 millions of yen)(100 millions of yen)

1,000

Logistics
Delivery

300

2,000

countries
and regions

Real estate

Operating income

310

7,664

Other

Operatingrevenue by
segment

10

Operatingrevenue

Other Business
Operatingincome(100 millions of yen)(100 millions of yen)

200

Note: Since fiscal 2013 we have changed
our calculations per segment to cover fourbusinesses, including real estate, anda d j u s t e d t h e fi g u r e s f o r fi s c a l 2 0 1 2
accordingly.
The figures for fiscal years up to 2011 arebased on the previous method of the threebusiness segments; delivery, logistics andother.

50

Operatingrevenue

Operatingincome50(100 millions of yen)

750

(100 millions of yen)

50

43

Domestic and overseas offices

1,434

Consolidated employees

about

80,000

8,000

800

8

160

6,000

300

600

6

120

4,000

200

400

4

80

31

7,094

2,000

0

6

SG HOLDINGS GROUP CSR Report 2015

391

400

363

809

600

40

30

450

30

20

300

20
583

7,125

100

2013

548

28

40

0
2014 (FY)

200

0

3

2013

3

2

40

0
2014 (FY)

0

123

45

10

150

2013

0
2014 (FY)

0

593

10

2013

0
2014 (FY)SG HOLDINGS GROUP CSR Report 20157

SG Holdings Group Business Outline

Domestic Companies

SG Holdings Group has developed business both in Japan and overseas in a variety of fields, such as deliveries, logistics, real estate, finance

Delivery Businessand systems development, in a way that utilizes our group synergy to the full.

1

Sagawa Express Co., Ltd.
Providing total logistics solutions in addition to a wide range ofdelivery activities with a particular focus on express delivery.

We will continue to make use of these strengths to increase the capabilities of the group in specific areas and achieve the provision of totalsolutions as a whole group. In this way, we aim to respond rapidly to the diverse needs of our customers, gain further trust from society,and become a corporate group that is needed by society.

2

SG Moving Co., Ltd.
Offers various installation and moving related services, including
large furniture and home appliances.

3

World Supply Co., Ltd.
Offers delivery agency services to department stores, etc., 3PL,
and cooperative food delivery services.

Delivery and pickup (overseas)

Logistics Business

6

4

Sagawa Global Logistics Co., Ltd.
Optimizes all aspects of the supply chain through 3PL operations,logistics processing, etc.

5

Sagawa Logistics Partners Co., Ltd.
Offers total logistics support, ranging from inspection and needle
detection, to storage and logistics processing.

6
Airport, Port

Airport, Port
6

Modal shift

14
StationStation

7

1

8

12

13

11

e-collect®

Individual /corporate

2

Sales Offices /Service Centers(pickup)(delivery)

Moving services, transportation of large furniture, home appliances and work of art

4

5

7

SG Realty Co., Ltd.
Provides management and lease business for real estate facilities
owned by the Group.

8

SG Assetmax Co., Ltd.
Makes real estate investments focusing on logistics facilities
owned by the Group.

Other Business

Sales Offices /Service Centers

3Real Estate Business

111
Large-scale Hub Facilities

Shippers(clients)

SGH Global Japan Co., Ltd.
Offers comprehensive international transport services, frominternational logistics and shipping storage to domestic transport.

79Deliverydestinations
Individual /corporate

Sagawa Advance Co., Ltd.
Offers general services such as insurance agency, travel business,and retail business.

10 SG Motors Co., Ltd.

Offers various services including vehicle maintenance support,
new and used car sales, and body production.
11 SG Systems Co., Ltd.

10

An all-in-one logistics IT company offering system development
and operation services, including a package tracking system.

8 13

12 Sagawa Financial Co., Ltd.

Offers a variety of financial services, including the e-collect®
COD service.
13 SG Fielder Co., Ltd.

Offers outsourcing services of personnel for warehouse related
business.

Logistics centers

14 SG Expert Co., Ltd.

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

Insurance agency business / travel business /product development business / fuel sales business ( 9 )Golf course management ( 15 )Forest preservation ( 16 )Foundation activities

15 Nouvelle Golf Club Co., Ltd.

Manages a golf course in Oamishirasato, Chiba prefecture, which
respects and is in harmony with nature.
16 Sagawa Foresty Co., Ltd.

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

8

SG HOLDINGS GROUP CSR Report 2015

SG HOLDINGS GROUP CSR Report 20159

Overseas companies

SG HOLDINGS GLOBAL PTE. LTD.
Head Office
Associated companies
AgentsChina

SAGAWA LOGISTICS KOREA CO., LTD.

Korea

Pakistan

Bangladesh
India

UAE

TaiwanHong Kong

Laos
ThailandCambodia

Sri Lanka

Kenya

USA

Vietnam

Hawaii

Philippines

Malaysia
Singapore

Maldives

SHANGHAI POLY-SAGAWA LOGISTICS CO., LTD.

Indonesia
Madagascar

Mauritius

SAGAWA EXPRESS VIETNAM CO., LTD.

South Africa

SG HOLDINGS GLOBAL PTE. LTD.

EXPOLANKA HOLDINGS PLC(as of June 2015)

EXPOLANKA FREIGHT (PVT) LTD.

 SG Holdings Global Pte. Ltd.
The head office for the international business of the Group
that provides planning for international business, strategy
formulation, fund raising, funding to the subsidiaries, and othermanagement operations.
 Tianjin Poly-Sagawa International Trading Co., Ltd.
Conducts trading and freight forwarding (*1), which includes
storage agency service for metal parts, automobiles, etc., in its
company-owned bonded warehouse.
*1	Freight forwarding: Services relating to the carriage, consolidation,
storage, handling, packing or distribution of the Goods, including customs
and fiscal matters, declaring the Goods, procuring insurance of the Goods
and collecting or procuring payment or documents relating to the Goods.

 Shanghai Poly-Sagawa Logistics Co., Ltd.
Provides international express delivery (*2), freight forwarding, and3PL service to fulfill customers’ needs.
*2	International express delivery (courier): A service to transport small
packages with fast turnaround using international air freight.

 Poly-Sagawa Logistics Co., Ltd.
Offers freight forwarding and logistics processing service. Sales
branches are located in Beijing, Dalian, Tianjin, Qingdao, andGuangzhou.

10

SG HOLDINGS GROUP CSR Report 2015

 Shanghai Dazhong Sagawa Logistics Co., Ltd.
Provides express home delivery within Shanghai. Many of the
packages handled are mail-order products. Cash on Delivery
service is also provided. Hold deposit centers in Shanghai.
 Sagawa Express (H.K.) Co., Ltd.
Offers freight forwarding, warehouse logistics, transport,international express delivery, and moving service.
 Sagawa Express International Taiwan Corp.
Offers warehouse logistics, ocean transport, international
express delivery, etc. Also provides small parcel delivery service
in Taipei.
 Sagawa Logistics Korea Co., Ltd.
Provides import customs clearance service, and comprehensive
international transport service such as freight forwarding andinternational express delivery.
 Sagawa Express Philippines, Inc.
Offers a comprehensive range of transport services, including
truck transport. Transports heavy goods such as building
materials.
 Sagawa Global Logistics (Philippines) Inc.

 Sagawa Express (Thailand) Co., Ltd.
 SG Sagawa (Thailand) Co., Ltd.
Features a company-owned warehouse to perform warehousing service.
Also provides international express delivery, freight forwarding, etc.
 Sagawa Express Vietnam Co., Ltd.
 SG Sagawa Vietnam Co., Ltd.

 Amgas Asia Pte. Ltd.
Transports petrochemical products.
 PT. Sagawa Express Indonesia
Provides warehousing and international express delivery. Offers
services mainly to Japanese corporations in the Jakarta region.
 Expolanka Holdings Plc

Offers a comprehensive selection of logistics services including
freight forwarding and truck transport. Also features a storage
warehouse for logistics processing operations.
 Sagawa Global Logistics (Malaysia) Sdn. Bhd.

Provides freight forwarding and supply chain management solutions
through its subsidiary Expolanka Freight (Pvt) Ltd. Also has diversified
into travels and tours, trading, manufacturing and investment businesses.
 SG Sagawa USA, Inc.

Offers customers freight forwarding service.
 Sagawa Customs Brokerage (Malaysia) Sdn. Bhd.
Provides agency service for export and import customs clearance.
 Sagawa Express Singapore Pte. Ltd.

Handles mail-order cargo for Japan and provides such services asinternational express delivery, freight forwarding and warehousing
in the vicinity of Los Angeles, California.
 Sagawa Express Hawaii, Inc.

Offers international express delivery, freight forwarding andwarehousing logistics services.
 Ameroid Logistics(s) Pte. Ltd.

Provides inland transport and shipment of souvenirs and mailorder goods to Japan, as an outsourcing agent.
 Wuxi Feisu Logistics Information Technology Co., Ltd.

Provides domestic transport and warehousing services which
related to freight forwarding, in Singapore.

Joint venture company that provides development and sales oflogistics and mail-order ordering systems within China.

Provides warehousing and storage services.

SG HOLDINGS GROUP CSR Report 201511

Highlight 1

Creating Attractive Towns and Cities

Supporting the Construction of Infrastructure for New Urban Development
In April 2015, our group launched full-scale “Facility Management Solutions”

infrastructure that balances efficiency with security from the perspective of

New Urban Development that Takes Logistics into Considerationthat upgraded the efforts in facility logistics we had made up to that point

the “flow of goods” in urban and rural areas.

(see Column 1 in the lower right-hand corner). These provide total

Recent years have seen a surge in redevelopment in the Tokyo metropolitan area. There is also a pressing need to improve urban

management services for commercial facilities and office buildings including*1	PPS: Power Producer and
Supplier*2	TDM: Transportation
Demand Management

amenities in both the city center and regional cities to further increase the number of foreign travelers.

facility logistics management, management of document and assets such as

In response to these new urban development activities, our group is contributing to the construction of new social infrastructure

office furniture and equipment. In anticipation of the deregulation of electricthat generates economic, environmental, and social value by providing solutions drawn from our unique focus on the “flow ofpower that will take place in 2016, we will also design services that offer

goods” instead of the “flow of people.”more efficient energy use through partnerships with New Power Companies(PPSs)*1. We have achieved economically and environmentally efficientfacility management through the centralized management of “people,
goods, and information (including vehicles).” At the same time, we haveaddressed the urban challenge of security through reliable matching ofdelivery permits with the numbers of vehicles entering and leaving facilities.
We also have provided area-wide logistics management services. The OMYarea (Otemachi, Marunouchi, and Yurakucho), located around Tokyo Stationin Chiyoda-ku, is an economic hub packed with influential domestic andinternational companies that acts as an international business center.

Column 1
Sagawa Express’ Facility Logistics theFirst to be Certified by the Tokyo District
Distribution Efficiency Certification System
Facility logistics is a logistics system that leads to a reduction in air

As part of the efforts to optimize logistical efficiency there initiated by thepollution by improving logistical efficiency and security throughout“Committee to Promote Green Logistics in the OMY, Kanda, and Related

the entire facility and alleviating congestion around it through theAreas,” we participated in a logistics TDM pilot program in fiscal 2001 and*2served as 1 of 4 companies providing in-building cooperative delivery to thepromotion of cooperative delivery and central management ofentering vehicles, including direct delivery vehicles.
Sagawa Express has handled facility logistics in Tokyo Midtown

Marunouchi Building that was completed the following year. In an area-widesince its opening in 2007. From that time onward, the company

collaborative logistics pilot program conducted in fiscal 2014, we played a

has continuously optimized the site’s facility logistics, reducing

central role in the “Task Force for Pickup and Delivery Experiments in the OMY©TOKYO-SKYTREEExperiment with cargo vehicle
management using wide-areacooperative collection and delivery
in the OMY area, conducted on
October 21 and 22, 2014.

direct delivery vehicles by 22%—from 219,300 vehicles in fiscal
2007, the opening year, to 171,000 vehicles in fiscal 2013.

Area” established under the Committee to Promote Green Logistics in the

These efforts and achievements were recognized as leading to increased

OMY, Kanda, and Related Areas, helping to build a cooperative delivery system.

logistical security, convenience, and efficiency, with Sagawa Express
receiving a certification from the Tokyo Metropolitan Government in

Improving Convenience for Foreign Travelers

In 2015, we are replacing some of the trucks we use in the area with electricvehicles (EVs). We will build a cooperative hub delivery system, including

Tokyo District Distribution

The number of foreign travelers visiting Japan has dramatically increased

cooperative transportation and delivery services for low-temperature goods,

Efficiency

as differences in the cultures of checking luggage among the countries

September 2014 under the
Certification

System. This was the firstover the last decade—from 5.21 million in 2003 to 13.41 million in 2014.

customers hail from and changes in customers’ needs based on the time

to construct a more efficient and economical collaborative logistics system

The government has set a goal of attracting 30 million foreign visitors perof day. We will work to further improve convenience for travelers andthat will further improve pedestrian space and enhance the businessyear to turn Japan into a top travel destination. This has created a need increate new systems that facilitate collaboration with airports and lodging

environment through cargo vehicle management in the OMY area.

Express the first logistics

the logistics industry for support in securing a more efficient flow of goods

facilities to make their stay more comfortable.

Our group will contribute to green urban development, enablingcompany to be certified

pedestrians to walk the streets with ease at any time, by helping to build

to accommodate the expansion in consumption by travelers.

such certification in facility
logistics, making Sagawa

under the system.

Delivering packages within a facility.

In response to these social developments, our group has taken on new

Voice1challenges to provide logistical support for national and corporate
inbound strategies and contribute to the revitalization of towns and cities.
In March 2014, we opened the Tokyo Service Center, a Japanese-style

Building a Safe, Secure Transportation Environment through Logistical Optimization

service center in Tokyo Station that offers temporary luggage storage for

As our first contribution to comprehensively address urban logistics under the Committee to Promote Green Logistics in the OMY, Kanda, and related

visitors for sightseeing and other purposes. The center also provides

areas, we developed cooperative transportation and delivery services for low-temperature goods. For this, we received the first certification given byservices for same-day luggage delivery to the customer’s lodgings or the

the Tokyo Metropolitan Government under the Tokyo District Distribution Efficiency Certification System in September 2012.

airport. With the increase in foreign travelers, the service centerIn addition to these cooperative transportation and delivery services, we are currently considering the establishment of area-wide collection andtemporarily stored around 23,000 pieces of luggage over its first year,

delivery services centered in the OMY area as our second contribution. As part of this investigation, we are involved in facility logistics for the
Marunouchi Building and Shin-Marunouchi Building and have enlisted the help of Sagawa Express with its facility and area-wide logistical know-

exceeding expectations.
By providing these services, we have acquired valuable information, such

12

SG HOLDINGS GROUP CSR Report 2015

how. We hope for your continued support as we work to build a safe, secure transportation environment.
The Tokyo Service Center with its Japanese design

Executive Director,
Committee to Promote
Green Logistics in the OMY,
Kanda, and Related Areas(EX Research Institute Ltd.)

TakashiTsubouchi

SG HOLDINGS GROUP CSR Report 201513

Highlight 2

From Expansion of Work Fields and Career
Development to Women-Driven Business Creation

Three-Year Results of the WakuWaku Women’s Project
The WakuWaku Women’s Project is an initiative promoting the

Sagawa Global Logistics (Head Office).

establishment of a practical system for making women responsible for

As a result of these three years, the ratio of female employees has

30% of our revenue. Since the launch of the project in 2011, we haveincreased from 20.9% to 26.5%, and the number of women in managerial

promoted the participation of women in three phases.

positions has increased from 44 to 98.

In Phase 1 (2011 to 2012), we got rid of office uniforms, reformed facilities

Our future tasks are to support women’s career development andWith the expanding labor shortage caused by Japan’s falling birthrate and aging population and growing social demands for organizational

to make it more convenient for women to work, reduced overtime, andimprove awareness among male managers. To address these issues, wediversity, the Cabinet approved a bill to promote women’s active participation in society in February 2015. Anticipating these developments,

increased the usage of paid time off under the theme of providing anheld a Women’s Career Support Training program in fiscal 2014, which

our group began projects for the advancement of female employees in 2011, set a goal in our medium-term management plan for having

optimal work environment. Then, in Phase 2 (2012 to 2013), we increased

was attended by about 80 employees, including board members andfemale employees be responsible for 30% of our revenue, and quickly set up a system for achieving this goal. We are now achieving various

the number of women in sales, planning, and management positions

male managers from all the companies in our group.

under the theme of expansion of work fields and promotion of women

Going forward, we will continue to set clear goals and accelerate efforts

to managerial roles. We also made significant strides in other areas,

to further promote women’s participation.

Our Pioneering Management Promoting the Active Labor Force Participation of Women

results in terms of reforming our business culture, generating business, and employing and retaining female employees.

increasing the return rate of employees who had taken maternity andchildcare leave and adding “promotion of women’s participation” to theperformance evaluations for companies of our group. The theme forPhase 3 (2013 to 2015) was women’s participation in businessdevelopment. During this phase, we gave out WakuWaku Awards torecognize offices that proactively worked to generate and improvebusiness by women. The first round of awards was held in fiscal 2013,
with the highest award going to Ladies Moving, a moving service forwomen by women. There were 148 applications for the second round ofawards held in fiscal 2014. Out of these, the highest awards went tobusiness plans submitted by Sagawa Express (Chiyoda Sales Office) and

Women’s Career Support Training

Goals to Achieve by the Year 2020

Homemakers Handling the Last Stretch as “Delivery Mates”
Imagine a system in which homemakers deliver small quantities of packages

The Japanese labor force has been declining year after year. Meanwhile, theto locations near their homes in their spare time from their housework,

labor force participation of women in their thirties and forties, which forms achoosing the work days and hours that work for them. Sagawa Express’

so-called “M-shaped curve” of employment, has presented another social

Delivery Mate system, which offers stay-at-home homemakers this newchallenge. The Delivery Mate system represents a new form of business thatmode of working, has met with a favorable reception across a wide range ofaddresses both issues and creates new jobs in local communities.

age groups since it was launched in 2014. A new collection and delivery

Our group will continue to proactively adopt flexible and diverse work

system tailored for homemakers was constructed around delivery sites,

arrangements and promote the participation of women in the workforce.

creating a convenient work environment for homemakers already busy with

STEP 2

STEP 3

Women work and thrive
throughout the entire
group

Female managers
transform the group's
management

Employees contributeequally to business growth
regardless of gender

Voice 2
Opportunity to Work in a Fun, Flexible Way

housework and childcare. We employed around 2,500 Delivery Mates in

You can work in a familiar area at times that fit your schedule. The delivery packages have a size range that is comfortable

fiscal 2014 and are planning to expand that number to 10,000 by fiscal 2016.

for powerless persons to handle. I thought, “I can do this,” and decided to try working as a Delivery Mate. In our case, weWith the recent spread of mail-order sales, packages have shrunk in size so

are a team of four who met and became friends through our kindergarten-age children. We mainly handle deliveries tothat anyone, including homemakers, can deliver them easily on pushcarts orlarge apartment buildings and new residential areas. We voluntarily form shifts according to the amount of packages forbicycles. The meticulous consideration shown by our female employees has

each week and make deliveries with a system averaging two women per shift. Our work hours are typically from aroundbeen greatly appreciated by those at the delivery destinations. The ability to

10 a.m. to 1 p.m. on weekdays, allowing us to still do housework and take care of our children. The system also allows us

work close to home has contributed to the comfort of both mothers andto handle emergencies—like a child coming down with a fever—in a flexible way through coordinated teamwork. For
example, you can immediately contact the others and arrange a swap with another team member. Another advantage

children. Moreover, since trucks are not used to deliver the packages, thesystem has led to a reduction in CO2 emissions.

14

STEP 1SG HOLDINGS GROUP CSR Report 2015of the Delivery Mate system is how fun and healthy the work is. I think it is a form of work that aligns well with our lives.

The Delivery Mates at the Sagawa Express Narashino Sales
OfficeDelivery Mate, a system that has expanded work opportunities for homemakers.
SG HOLDINGS GROUP CSR Report 201515

CSR Activities Report
Goals and Results of Material CSR Issues
In order to further deepen its CSR activities, the SG Holdings Group is prioritizing initiatives to address our six
material CSR issues. Our mid-term goals and action plans are based on their respective activity topics, and CSR
activities are being promoted throughout the Group.
Material Issue

Activity Topic

Mid-Term Goal To reduce accident index by 5 points every year from the fiscal 2012 reference value

Contributing to a safe and secure transportation societyP18 - 20

Providing High-Quality Services
with a Foundation of Safety
We will provide high-quality products
and services in our role as a corporategroup responsible for the social
infrastructure component of logistics,
by paying strict attention to providing
business activities based on a customer
viewpoint with the highest priority
placed on safety and security.

 To contribute to traffic safety for the entire society
Quality control based on a customer viewpoint
P20

We will take measures to prevent
global warming and air pollution, andpromote business activities withconsideration for the global
environment.

Contributing to the Developmentof Communities
We will strive for co-existence withsociety by contributing to thedevelopment of domestic and overseas
communities.

 To acquire an even higher level of trust from customers
 To enhance quality control system for refrigerated and frozen cargo, and to create mechanisms for monitoring temperature duringtransport
 To apply the combined power of the Group to build systems that can provide new businesses and new services

Developing and providing products and services from acustomer viewpoint
P21, 22

Reflecting on customers feedback about corporate activities
P23

Promoting Business Activities
with the Goal of EnvironmentFriendliness To eliminate accidents related to vehicle maintenance and to improve maintenance techniques

 To further expansion of new products and new services from a customer viewpoint

 To expand contact windows for collecting customer feedback, while enhancing the mechanisms for fully applying this feedback toservice improvement and product development.
 To establish support methods that can provide an even higher degree of satisfaction, and to enhance follow-up procedures withcustomers

Reducing CO2 emissions throughout the delivery system
P24 - 26

 To reduce CO2 emissions throughout the Group

Reducing environmental impacts in cooperation with
communities
P27, 28

 To actively participate in the creation of environmental impact reduction models through cooperation with national and local
governments
 To expand facility logistics (services to achieve reduced environmental impacts, such as by lessening the number of trucks in operationand easing traffic congestion, through data management and aggregation of cargo)

Contributing to a recycling-oriented society
P28

 To expand reverse solutions that can contribute to a recycling-oriented society

Preservation and environmental awareness of forests andbiodiversityP29, 30

 To promote initiatives for preserving ecosystems, focusing on ecological communities
 To promote energy saving through environmental awareness within the company
 To support next-generation education through environmental education

Supporting the foundations of local communities
P32
Interacting with regions through sports activities
P33
Supporting academics, culture, and next-generation
education
P42, 43
Respect for human rights
P34

 To contribute to traffic safety in local communities by holding traffic safety classes. Participation of roughly 100,000 people every year.

Building an Organization with
Individuality and Diversity
We will promote diversity and humanresources development with the goal ofreinforcing the individuality of ourpersonnel and cultivating humanresources that can actively and boldly
take on new challenges.

Building a Responsible
Management Foundation
We will be responsible for the social
infrastructure component of logistics,
be aware of our responsibilities as acorporation that uses public roads to dobusiness, and strive to enhance thefoundation of our CSR promotion.

The SG Holdings Group will continue to promote practical CSR activities

Under this concept, to gain an understanding of the SG Holdings Group’s CSR-

throughout the Group.

Results in Fiscal 2014

Action Plans for Fiscal 2015

 Continued the implementation of measures such as safety training, safety patrols, and effective utilization of drive recorders
Accident index: 30 (with year 2000 set at 100)
 Continued the implementation of vehicle maintenance training Deployed safe driving know-how to general businesses as training services
Number of participants in Safe Driving Training Services: 1,073 (in 16 companies) Drivers consider full stops at temporary stop lines as a policy of full stops at temporary stop positions as a policy of highimportance, to increase safety awareness To acquire of the most current techniques through vehicle maintenance training Enhanced improvement activities for ISO9001, for strict compliance with delivery times (Seven quality KPIs were set
independently, and the progress of their fulfillment rates and other parameters were managed)

 Faster disclosure of data on time-related quality items, and strict attention to their progress management

 Gave thorough attention to temperature management by verification of Hikyaku Cool Express temperatures
 Conducted monthly verification at Cool Centers and twice-a-year verification at Sales Offices
 Inaugurated the strategic sales development team “GOAL (GO Advanced Logistics),” which provides customers logistics
solutions throughout the Group Provided Ladies Moving, a moving service intended for women Provided Smart Delivery, a system to increase the efficiency of goods receiving operations at large-scale commercial facilities
and shopping malls(adopted at Premium Outlet locations, etc.)
 Introduced text mining technology for multifaceted analysis of customer feedback Created mechanisms for sending feedback from customers who have visited our website to responsible staff within 15
minutes Implemented questionnaires on the degree of satisfaction with customer complaint support
 Continued the implementation of measures such as the introduction of low-emission vehicles, promotion of modal shifts,
and improvement of transportation efficiency
 Introduced electric vehicles in collection and delivery operations (total of 13 vehicles) Participated in the Ministry of the Environment’s Carbon-Neutral Certification Test Project and Model Project Focusing on theCreation of a Low Carbon Society

 To implement of on-site training and training for small groups in order to increase the number of participants To re-evaluate areas and delivery systems, and to improve delivery quality through pickup services in convenience stores
 To continue implementation of temperature verification
 To provide safe and secure low-temperature logistics services
 To enhance the organization of the strategic sales development team “GOAL,” and its further expansion
 To expand internationally seamless logistics from foreign countries to Japan, and vice versa
 To apply customer feedback for improvements to Ladies Moving services
 Further expansion at large-scale commercial facilities and logistics centers nationwide
 To use text mining to arrange an environment where analysis results can be shared within the company
 To understand customer feedback to a higher degree than before, through collection of customer feedback using SNS
and other methods
 To analyze the correlations between customer support methods and customer satisfaction, using the results ofquestionnaires on the degree of satisfaction with customer complaint support.
 Further reduction of CO2 emissions throughout the Group through continuing initiatives
 To continue the introduction of electric vehicles and other low-emission vehicles
 Further promotion of new services leading to increased numbers of carbon-neutral certified offices and reduction of CO2
emissions Reduced environmental burdens by increasing the efficiency of facility logistics

 To increase efficiency of facility logistics through cooperation with customers

 Received a commission for pickup and delivery in the Used Small Home Appliance Pickup Service under approval by
RenetJapan Inc.
 Implemented ecosystem studies and forest preservation activities in company-owned forests (Takao 100-Year Forest projectin Hachioji City, Tokyo)
 Implemented energy saving through environmental awareness within the company
 Implemented environmental awareness through forest experience activities (roughly 200 participants) and rice cultivation
experience activities (roughly 350 participants)
 Held the National Eco-Art Contest
 Held traffic safety classes nationwide
Total traffic safety classes: 1,069 classes, number of participants: 103,173

 To deploy nationwide pickup and delivery for Used Small Home Appliance Recycling service, and to obtain approval by
RenetJapan Inc.
 To promote forest preservation activities in cooperation with Group employees, local citizens, and general volunteers
 To continue energy conservation through environmental awareness within the company
 To continue implementation of forest experience and rice cultivation experience activities
 To continue the National Eco-Art Contest
 To continue the implementation of traffic safety classes

 To implement advance investigations into scholarship systems for ASEAN students, and to expand logistics humanresources cultivation training

 To expand countries and regions for vehicle maintenance and logistics human resources cultivation

 Implemented projects to donate vehicles (Laos) and accept trainees to study vehicle maintenance (China, Laos) To enhance logistics human resources cultivation in ASEAN countries and other areas

 To create systems for fostering human rights awareness To enhance female management positions, and cultivation of female senior management candidates
 To create workplace environments where people with disabilities can exercise their expertise To systematize and enhance initiatives for human resources cultivation
 To introduce outstanding achievements and excellent examples, and to share their expertise To promote mental health Implemented ethical code of conduct training for all employees of domestic Group companies in August Expanded participants in employee attitude surveys to include all employees, including non-regular employees in domestic
Group companies Held awareness training for all Group companies during June as Harassment Prevention Month Held the WakuWaku Awards, a contest for competition in the expansion of work scope for and increases in contributions byfemales Number of applications: 148
 Held Women’s Career Support Training as a measure for the creation of female management positions
Number of management position candidate (Chief level) participants: 79
 Promoted the employment of people with disabilities
Employment ratio: 2.08%
 Started support by Sagawa Express for independent express delivery businesses after retirement
Number of employees continuing work after mandatory retirement: 134 of 149
 Held seminars for employees with Group Manager (GM) certifications, overseas training sessions through open
application, and observation training in Japan for overseas Group company staff
 Held Group Award Ceremony
 Expanded shortened working hours systems (child care: up until admission to elementary school)
 Formulated guidelines for treatment accompanying the application of shortened working hours for managerial andsupervisory personnel
 Provided informational and educational materials through the Group benefits package website “Familink”
 Held mandatory retirement seminars
 Operated SG Holdings Group Health Dial 24, and carried out initiatives for improving mental health by individual Group
companies Carried out initiatives for maintaining health through coordination between our company and our Health Insurance
Association, such as trial implementation of the 100 Healthy Days Project, Anti-Smoking Programs, and SG Smart Programs

 To share information on human rights issues with overseas Group companies

 To continue the staging of the WakuWaku Awards
 To continue the implementation of Women’s Career Support Training (number of training sessions held: 3, number ofparticipants: roughly 60 scheduled) To encourage employment of people with disabilities, and formulation and implementation of plans for the firm
entrenchment of such policies
 To expand systems for people to be able to continue work even after retirement
 To implement hires within the Group, to create systems for development separated by level, and to encourage rotation ofhuman resources
 To coordinate Group award ceremonies with activities to instill the personnel vision in staff members
 To improve the system to be easier to use, to plan for continued employment
 To share guidelines among the Group, and their proper operation
 In addition to available benefit provided, information transmitting of family events and health programs aimed at
improving health.
 To start investigations into the establishment of “benefit associations,” and to expand such systems
 To formulate guidelines for mental health care policies
 To deploy the 100 Healthy Days Project to Group companies, and to expand the anti-obesity campaigns

 To acquire an understanding of and trust in the company by family members

 Held Children’s Observation Days with workplace visits for next-generation education

 To continue the staging of Children’s Observation Day workplace visits, and to investigate into their staging at Group
companies

Promotion of CSR in the supply chain
P37

 To create systems for strict attention to CSR procurement

 Established and publicly announced the Business Partner CSR Guidelines

 To share Business Partner CSR Guidelines both inside and outside the company, and to announce them to major business
partners of domestic Group companies

Cooperation with business partners
P37

 To enhance cooperation with respect to both safety and the environment

 Continued cooperative activities with respect to both safety and the environment

 Further promotion of cooperation with respect to both safety and the environment

Building a foundation for CSR promotion
P38, 39

 To create a CSR promotion foundation based on global standards, and to acquire trust from society by strengthening stakeholder
engagement

ComplianceP39

 To strengthen the compliance system (education, awareness) and to expand compliance hot-lines (internal notification system) To promote initiatives for minimizing the occurrence of risks in domestic and overseas Group companies
Risk management
P40
 To construct systems for cooperation with the national government, local governments, and shipper companies
Information security
P40

16

each material issue in order to strategically deploy PDCA.

to be conscious of the environment and to develop regional communities.

 To continue the implementation of sports classes primarily aimed at elementary and middle school students

 To familiarize health awareness as an everyday practice for employees

We will promote CSR activities
throughout the supply chain andcontribute to developing a sustainable
society together with our business
partners.

identified the six material CSR issues, and set activity topics and mid-term goals foreven greater responsibilities by addressing social issues on a global scale. We strive

 Implemented interaction programs for foreign students with scholarships, and training for logistics human resource
cultivation in Vietnam

 To promote life support functions

Constructing Supply Chain CSR

international standard for social responsibilities of organizations. In fiscal 2014, wein association with the further globalization of our businesses, we intend to fulfill

 Held sports classes primarily aimed at elementary and middle school students

 To arrange a working environment accommodating both work and family, through a system of shortened working hours

Promotion of work-life balanceP36

issues with a focus on the seven core subjects and issues of ISO26000, an

Disaster Countermeasure Basic Act, is the foundation of its business activities. Also, To create a scholarship system for ASEAN students

 To secure the workforce through continued employment, and the succession of experience and know-how
Promoting human resources cultivation
P35

related topics, in fiscal 2013 we organized our activities and closely examined

to our stakeholders, as Sagawa Express designated public institution under the To support next-generation education through sports

 To establish a system where female employees are responsible for 30% of Group business revenue
Promotion of diversity
P35

The SG Holdings Group recognizes that providing a safe and secure infrastructure

SG HOLDINGS GROUP CSR Report 2015

 To promote information security measures (management resources), and to instill their understanding in all Group employees Held regular CSR Committee meetings
 Conducted stocktaking of activities based on the seven core subjects and issues of ISO26000
 Held dialogues with stakeholders
 Revised the Basic Internal Control Policy
 Started compliance hot-line (internal notification system) operation
 Implemented education at Group companies using Code of Ethics and Conduct brochures
 Revised risk management regulations and procedures, and maintained and enhanced their systems (re-implementation ofassessments, establishment of PDCA systems such as evaluation and verification)
 Held risk management meetings monthly
 Constructed BCP and BCM systems throughout the Group Implemented BCP training (safety confirmation, large-scale disaster response training) Held BCM Informational Meetings
 Revised the Basic Information Risk Management Policies to the Basic Information Security Policies
 Revised information security regulations and procedures, and enhanced system arrangements
 Carried out training using security handbooks

 To construct systems involving CSR activity promotion throughout the SG Holdings Group, and to implement education
and awareness activities for domestic Group companies
 Further strengthening of internal control
 To start information exchanges with overseas Group companies on compliance To improve compliance awareness of Group employees
 To enhance awareness activities for Group employees
 To enhance risk management systems (establishment and verification of PDCA cycles) To strengthen the cooperation with the national government, local governments, and shipper companies

 To continue to enhance awareness activities for Group employees

SG HOLDINGS GROUP CSR Report 201517

Providing High-Quality Services
with a Foundation of Safety

Promoting Safety Education

Traffic Accident Prevention Initiatives

Sagawa Express carries out various types of training for developing safe

SG Motors maintains company vehicles owned by the SG Holdings Group,

drivers at its company-owned automobile training courses in Kanagawa,with the goal of eliminating traffic accidents related to vehicle

Aichi, and Kagawa Prefectures.

maintenance. Specifically, it is expanding its support organization andthat it is important for us to provide high-quality products and

Newly-employed drivers begin by undergoing basic safe driving training,

improving service in an attempt to enhance its maintenance network

services in our role as a corporate group responsible for theand continue to participate in training until they are able to become

across the country.

social infrastructure component of logistics by paying strict

independent outstanding SDs (Sales Drivers). The training period,

Sagawa Express has equipped 28% of all of its vehicles (about 6,800) withattention to providing business activities based on a customer

including follow-up activities, is set at a period of one year. Dedicateddrive recorders* to manage employee driving habits. Sharing of the

viewpoint with the highest priority placed on safety andefforts are also made to develop instructors, with SD instructor

information recorded in these drive recorders by many drivers will help

security.

certification training and safe driving tester certification training provided

to prevent traffic accidents. Drive recorders will be installed in all new

to employees engaging in on-site instruction.

vehicles added to our fleet.

In order for all drivers to practice Environmentally-Friendly Driving, we*Drive recorder: Recording equipment specialized for installation in vehicles, used to

conduct specialized training for management and instructors, withrecord the causes of accidents or to raise safe driving awareness. Scores are assigned to

As social concerns for "safety" and "quality" grow, we believe

Sagawa Express, which is SG Holdings Group’s core businesses,
continually verifies its safety initiatives based on the transport
safety management system. We have also set up seven quality

five actions: “braking,” “stopping,” “steering,” “turning,” and “smooth driving.” These canroughly 100 instructors being cultivated every year.

aid in improving a driver’s awareness of safe driving as well as driving skill.

KPIs to ensure quality, and are focusing on their execution.

Contributing to a safe and secure transportation society

Labor Practices

Regular driver observation

6 month driver mentoring

Tests conducted by safe driving testers

suddenly.

Drive recorder screen

Safety Management Organization Diagramtransport safety management system.

Consider feedback
from on-site
employees
Instructions,guidance

Board of Directors

The Safety Measures Committee holds a safety meeting for its committee
members each month in which the Committee deliberates on the

Safety Measures Committee

progress of safety activities, and on multifaceted measures to ensure

Safety Meeting

safety. The Committee also holds periodic safety review meetings, inwhich safety promotion staff from around the country participate, andconsiders feedback from on-site employees to improve safety measures.
Furthermore, transport safety management evaluations are conducted

Safety Discussion
Meeting

Deliberations on
safety related topics

Headquarters Safety
Promotion Meeting

Office Manager
Meeting

BranchHuman Resources/
Safety Promotion Meeting

once every 2 years by the Ministry of Land, Infrastructure, Transport andTourism, with the next evaluation scheduled for fiscal 2015.
In addition to these measures, a system is being created for drivers toyears, as one part of safety management with the goal of promoting

Office Manager

health management for drivers. Drivers who are determined to be

Service Managers

Sales Office

Sagawa Express Truck Driving Championships

Securing Safety for Highway Transportation

At Sagawa Express, with the goal of cultivating professional drivers and

To improve safety in highway transportation that is used for mass

increasing the safety awareness of all our employees as part of ourtransport, Sagawa Express is engaged in a variety of initiatives together

responsibility as a corporation that uses public roads to do business, wewith partner companies.

hold the Sagawa Express Driving Championships every year.

Highway Transport Safety Patrols carry out activities to prevent traffic

In fiscal 2014, a total of 66 drivers (including employees of Group

accidents and vehicle breakdowns, by performing vehicle checks andcompanies) were chosen from all over the country to use the driving

mentally and physically refreshing our drivers at main service areas andskills and knowledge they have gained to compete in knowledge,

parking areas on arterial routes, and even perform vehicle inspections bydriving, and inspection.

request on general trucks outside of the employment of partner

This championships not only serves to increase safety awareness, but iscompanies. In Highway Transport Terminal Inspections, administrators

also a form of human resources cultivation and an opportunity tofrom all Sagawa Express locations work together with administrators from

Maintenance Managers

enhance driver motivation. Training is performed jointly at multiple Sales

partner companies, using special check sheets to conduct the inspections.

Drivers

receive SAS (sleep apnea syndrome) screening examinations every 5

Offices before the championships, which allows participants to share

Furthermore, safety seminars are held for managers of partner companies

potential sufferers of SAS must take a detailed examination at a

related knowledge, hone their driving skills and etiquette, and develop a

related to highway transportation. In fiscal 2014, managers from 238

specialized agency, and if they are diagnosed with SAS, appropriate

professional awareness.

companies participated in the seminars held at five locations across thetreatment is then administered.

Traffic accident index trends (with year 2000 set at 100)
120
100

100

91.5

93.1

80
60

85
32

28

30

20
0
Transport safety management evaluation by the Ministry of Land,
Infrastructure, Transport and Tourism

SG HOLDINGS GROUP CSR Report 2015

2000

country.

SD (Safe Driver) certification trends (%)
100
93.6
92.9
92.7 95
92.7
93.4
93.7
93.1
90

85.8

40

18

12 month driver mentoring(continuous driving ability assessment)

ensuring transport safety is being put into practice based on the

3 month driver mentoring

playing a central role. In terms of operation, a PDCA cycle aimed toward

SD instructor follow-up period
1 month driver mentoringand prevent traffic accidents. Drivers do not start, accelerate, or stop their vehicles

SD certification training*	Environmentally-Friendly Driving: a form of driving that aims to consider the environmentbuild a safety management system with the Safety Measures Committee

Collection and delivery service test

In terms of the system, management and local staff work together to

Driving Assessment

putting Environmentally-Friendly Driving* into practice.

(SD= Sales Driver)

Driver Mentoringachieving 100% compliance with parking-related safety measures, and (3)the base of fiscal 2012).

Driving ability assessment

including (1) coming to full stops at temporary stop positions, (2)goal of reducing the traffic accident index by 5 points every year (fromJoin company

accidents even further in fiscal 2015, we will continue to take measuresmanagement issue, and is promoting activities to achieve the mid-term

SD instructor instruction period

Basic new employee training

in fiscal 2014 was 13% lower than that of the previous year. To prevent
Sagawa Express views transport safety as the most important

New driverdevelopment process
Basic safe driving training

As a result of these measures, the number of traffic accidents occurring

Safety-related training

Training prior to joining company

Safety Management Systems

Consumer Issues

06

07

08

22

09

25

28

37

35

30

80
75

10

11

12

13

14
(FY)

70

Checking with aninspection hammer is
one part of thechampionships

Highway Transport Terminal Inspections

Highway Transport Safety Patrols

SG HOLDINGS GROUP CSR Report 201519

Superior Safe Driving Office Award

provided at a company-owned training facility for driving (approximately
31,680 m 2 ) in Kanagawa Prefecture, which is also able to handle

The SG Holdings Group obtains the driving records for the licenses ofprograms that meet the needs of our customers.

each of its employees from the Safe Driving Center. They are obtainedThis service includes programs such as safety lectures for instructors andupon the consent of each driver, and this allows us to check whether

drivers as well as driving aptitude tests, and it is notable for not being

drivers have traffic violations outside of working hours, which is valuable

limited to classroom instruction but also offering practical training throughDeveloping and providing products and services from a customer viewpoint
Inauguration of the Strategic Sales Development
Team “GOAL”

Consumer Issues

Providing Products and Services to Protect
Customer Information

Together with the rapid changes occurring in the market environment,

The types of documents for which consideration must be paid tothe shape of logistics itself is also becoming highly diversified.

information security such as confidential corporate documents are

in increasing safety awareness among all employees.

use of the company’s facilities. We have received many inquiries from not

In fiscal 2014, 176 Group offices received Superior Safe Driving Office

only corporations dealing with freight and transportation, but from otherAwards from the Safe Driving Center, through a system set up to use

corporations that use vehicles in their businesses, such as those shipping

driving records and award operators who promote safe driving

their own products or in the nursing care business. In fiscal 2014, 16

management (platinum award: 11 offices, gold award: 37 offices, silver

companies held 42 training sessions, with 1,073 participants.

with customers. Through the fusion of the nationwide network offunctions, and has begun the On-site Confidential Document Disposal

award: 60 offices, bronze award: 68 offices). Out of approximately 6,000

In fiscal 2015, we will strive to expand our services even further, flexibly

Sagawa Express and its strengths in logistics between companies, with

Service - a first in the moving industry - from April 2014.

business locations, 1,100 were eligible for the award, roughly 16% ofresponding to a variety of needs such as by conducting on-site training

the know-how gained by Sagawa Global Logistics which includes

From December 2014, in a joint operation with Mitsubishi Paper Salesat sites specified by theknowledge of logistics processes and warehousing businesses, together

Co., Ltd., we have also begun deploying services for collecting thecustomer.

with the functions of individual Group companies such as international

materials remaining after

forwarding, IT systems, and settlement operations, it provides

documents have been

comprehensive logistics solutions such as procurement logistics, 3PL,

pulped, and recycling

and logistics center management.

them into toilet paper or

In the future, it will propose logistics that fully apply the strengths ofother products.

which were within our company Group.

Providing Safe Driving Training Services
To contribute to the traffic safety of society as a whole, Sagawa Express

Instructions being given using aalso provides the knowledge of traffic safety education it has gained until

training vehicle

In April 2014, Sagawa Global Logistics inaugurated the joint strategic

increasing. Sagawa Express offers the Confidential Document Recycle

sales development team “GOAL” (GO Advanced Logistics). By providing

Express Service, which offers uniform confidential transport, from theadvanced logistics, this team aims to become a specialized organization

receipt of documents to their disposal.

that can press on toward the “goal” of resolving logistics issues together

SG Moving has also introduced specialized vehicles equipped with pulping

Group companies, for the expansion of international comprehensive

now to general operators as a Safe Driving Training Service. Training is

logistics with the goal of achieving seamless logistics operations that are
unified domestically and overseas.

Quality control based on a customer viewpoint

SG Moving pulping vehicle(four-ton truck)

Consumer Issues

Flow of Domestic and Overseas Logistics Solutions that “GOAL” is
Striving for

Providing Moving Services to Answer a Variety of
Needs

Quality Improvement Initiatives

Improving Hikyaku Cool Express

With 458 Sagawa Express sales offices having obtained the ISO9001:2008

In November 2013, it came to light that some Hikyaku Cool Express

international quality management accreditation, Sagawa Express

packages were handled at an inappropriate temperature. Sagawa Express

continues to improve transport service processes with the goal of

realizes that this is a serious issue related to food safety, and have carried

achieving an even stronger relationship of trust with its customers.

out improvements such as replacing cooling boxes and reprinting care

In fiscal 2014, three new items (Cool Express freight accident rate,

mark stickers.

number of Cool Express freight accidents which are our responsibility,

In fiscal 2014, in addition to paying strict attention to temperature

number of mailbox complaints) were added to the four quality KPIs for

management with continuous temperature verification during transport,

our independent management system (shipping freight accident rate,

we carried out monthly inspections of Cool Express equipment andacting as professionals in cleaning and organizing household belongings,

arrival freight accident rate, morning delivery rate, and time band service

facilities as well as complete inspections of all Sales Offices and Cooland services in which our company’s staff members perform housework

fulfillment rate), strengthening our quality control to consist of seven

Centers (23 locations). We have also further strengthened our quality

on behalf of customers.

quality KPIs.

control system for refrigerated and frozen packages.

We are the first in the industry to assign staff who have Service AssistantIn fiscal 2015, we will take even greater steps to improve quality, such as

In fiscal 2015, we have plansincreasing the speed at which data on time-related quality items is

to introduce 1,290 new

disclosed, and paying strict attention to their progress management.

vehicles specialized for Cool

GOAL's Priority Areas
Overseas factories
and overseas
logistics centers

International
forwarding

SG Moving began our Ladies Moving service in April 2014, in which

Customs

female employees assist in moving. This service was created in response
to feedback from female customers who felt some resistance to male
RetailstoresDomestic factories
and domestic
manufacturers

Consumers

Domestic
logistics
centers

Restructuring of Service System for Improved
Convenience

Express packages, while also

To improve customer convenience and to enhance the ability of drivers

continuing to carry out

to offer on-site proposals, Sagawa Express restructured its service systemtemperature verification. We

in October 2014. With our products and services expanding year by year,

will continue to address thisit has now become possible for customers to select the ideal services

issue in order to improvethat match their needs.

our Cool Express services.

Under the new S-Quality Strategies service system, products, services,

staff entering their residences.
We are involved in developing and providing services with high added
value, not limited only to moving. These include advising services by
qualified staff such as Home Stagers and Sorting and Storage Advisors,certifications to our Sales Offices nationwide, and to station memento
processor and Sorting and Storage Advisors on a continuous basis.

and solutions have been grouped together in accordance with customer
needs, into three categories: “Standard (basic transportation, delivery),”

Ladies Moving services“Support (value chain support),” and “Solutions (resolution of multiple
Delivery time selection service sticker

20

SG HOLDINGS GROUP CSR Report 2015

Hikyaku Cool Express delivery

issues).”SG HOLDINGS GROUP CSR Report 201521

Fulfillment Services in the Event of Recalls

all aspects of recalls.
In addition to picking up, replacing, and refunding defective products,

Conducting recall operations in a timely manner not only aids in thethe service manages a call center to respond to customer inquiries, andavoidance of administrative risks but it also plays a role in fulfilling thealso provides total support for many other necessary operations involved

corporation’s responsibilities.

in recalls.

In March 2012, the SG Holdings Group began offering a service to support

Recall Total Service

SG Holdings Group
Business
Partner
Manufacturer
Retailer
Mail OrderBusiness etc.

1

PickupInstruction

2

Sagawa Express

PickupDefective Goods

Consumers

Planning, Pickup/Delivery of Product4

SG Systems
Delivery of
Defective Goods

3

Call Center Support, Return of Data
Sagawa Global Logistics

6

RecallRequired

Provision of
All Data

Return of
All Data

Consumer Issues

Mechanisms for Fully Applying Customer
Feedback

Achieving Winning Results at the National Call
Operator Contest

In addition to expanding our contact windows for receiving customer

Sagawa Express is committed to improving the telephone support skills of its

feedback, Sagawa Express is also focusing on efforts to strengthen our

employees. In addition to carrying out telephone support education andmechanisms for fully applying this feedback to service improvements

training, we verify the first thing Sales Office operators say during phone calls,

and to product and service development.

as well as their product knowledge, and are working to establish support

In January 2014, a dedicated Customer Support Section was newly

procedures that can give customers an even higher level of satisfaction.

established, and text mining technology was introduced for multifaceted

We also participate each year in the Call Operator Contest held by the

analysis of customer feedback. Furthermore, restructuring of ourJapanese Telephone and Telegraph Users Association to improve our phone

Customer Feedback Management System has allowed feedback received

support skills. In November 2014, 60 contestants selected from 13,362

from customers visiting our website to be sent to responsible staff within

participants across the country assembled together for the 53rd national

15 minutes, enabling quicker responses than ever before.

contest held in Ishikawa Prefecture. Among them, 13 staff members fromWe have also begun carrying out Customer Questionnaires on the degree

our company attended, and the grand prize winner of the contest was anof satisfaction with complaint support. By using the results of these

employee from our Customer Service Section. The winning employeequestionnaires and analyzing the correlations between customer support

concentrated on the customer’s voice and placed prime importance on

methods and customer satisfaction, we will make efforts to strengthen

listening when providing support, and as a result received high praise

our follow-up system.

stating that “the conversation felt very natural”. Furthermore, 7 of the 18

Storage/Inspection

contestants who received awards of excellence were from our company.

SG Moving
Large-scale Product Pickup

7

Reflecting customer feedback in corporate activities

5

RefundSagawa Financial
Refund Processing

Column 2
Higher Efficiency of Goods Receiving Operations with Smart Delivery

Providing customer support

At large-scale commercial facilities or shopping malls, congestion often occurs as acan be categorized in advance by time period, including late-night or early-morning

result of delivery vehicles bringing in products before the start of business. Resolving

periods, as well as by product categories and locations. This allows goods receiving

this congestion and shortening the time required for deliveries is a significant issue forbecomes more efficient if deliveries are carried out from Sagawa Express alone.

customers managing such facilities.

The Smart Delivery service began at the 9 domestic Premium Outlet locations

To resolve these issues, Sagawa Express started the Smart Delivery service fromoperated by Mitsubishi Estate · Simon Co., Ltd., and has currently spread across the

October 2014. Smart Delivery is the first delivery service in the industry to offer custom

country. Developed from the viewpoint of the customer, Smart Delivery will change

tailored service to suit each customer’s needs and expectations. Through thethe structure of logistics from here on.

Competing in the Call Operator Contest

Transport and Tourism

traffic accidents. While carrying out transport safety management, we are

Tomonobu Sugisaki

also taking thorough steps for safety management in terms of both

safety for the entire society, since fiscal 2013 we have provided the safe
driving skills cultivated by our Group to general business operators as
educational services, with over 1,000 participants in fiscal 2014.

Manufacturer A

From here on, by having each and every employee in our Group practice(Sales Office, Hub Center, etc.)

Road Transport Bureau, Ministry of Land, Infrastructure,building an organizational system with the goal of completely eliminating

training on a continuous basis. Under the concept of achieving traffic

Sagawa Express

Senior Officer for Accident Prevention, Safety Policy Division,

The SG Holdings Group considers safety to be its highest priority and isinstitution and operation such as providing strict safety education andapplication of our large-scale facilities such as Sales Offices or Hub Centers, deliveries

Comment from an expert

Comment from management

the fundamentals of safe driving without fail, and by continue to
implement initiatives to contribute to the safety of our society, we wish to
successfully fulfill the responsibilities we have as a corporate group thatuses public roads to do business.

Manufacturer B

It is essential for transportation businesses to view safety as their highest
priority and take steps to ensure it. Sagawa Express appears to bepositioning safety as the utmost priority for its business, and has set thegoal of completely eliminating traffic accidents, with management andlocal staff working together to undertake safety measures. Regarding safety
education, initiatives for contributing to the most critical factorfamiliarization with on-site situations include measures such as to cultivate
safety instructors, to raise motivation of employees, and to provide Safe
Driving Training Services to general business operators. This way, it iscontributing to the traffic safety of our entire society. It is also building
systems to promote the health management of its drivers, by offering SAS
screening examinations every 5 years. We look forward to the continuation

Categorized packages

Manufacturer Cof these initiatives as well as further improvements and expansions to theirHigher efficiency in goods
receiving operations

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

Manufacturer D

Collect packages together
and categorize in advance

Hideo Araki

With the progress of IT technology in recent years, we also anticipate active
leadership with initiatives to effectively utilize information pertaining to“people, vehicles, and things” in the entire transportation industry, as well as
the promotion of efforts across a wide variety of topics such as safetymeasures, methods for increasing transportation efficiency, and disastercountermeasures.

22

SG HOLDINGS GROUP CSR Report 2015

SG HOLDINGS GROUP CSR Report 201523

Promoting Business Activities with the Goalof Environment-Friendliness

Introduction of Low-Emission Vehicles

electric vehicles (EV), it has introduced eight light automobiles in the
Fukuoka and Kyoto areas as well as five 1-ton vans in the Tokyo area, andAs of March 2015, Sagawa Express owns a total of approximately 7,000

has carried out verification experiments of electric trucks jointly with

With the danger of global warming exceeding the level that can bevehicles (roughly 30% of the total number) that include post-new long-

Nissan Motor Co., Ltd. (see p. 26, 27).

sustained, we have a significant obligation as a logistics businessterm regulation compliant vehicles, compressed natural gas (CNG) trucks,

Low-emission vehicle introduction trends (Sagawa Express)

operator that uses vehicles to do business to take initiatives forhybrid vehicles, and electric vehicles. Among them are 4,019 compressed

reducing our impact on the environment.

natural gas (CNG) trucks (4,039 trucks throughout the entire SG Holdings

The SG Holdings Group is making efforts to prevent global

Group), and Sagawa Express was recognized as the top company in thewarming and air pollution. It is also promoting activities withworld in terms of number of such trucks owned (International Natural Gas

consideration for the global environment while looking toward the(vehicles)

Vehicle Association, 2011). Furthermore, Sagawa has private-use naturaldevelopment of a sustainable society. Following an environmental

gas filling stations set up in 22 locations across the country, and is also

philosophy and policies that are shared across the Group, we

independently promoting infrastructure arrangements. As a means ofare cooperating with the national and local government, and

9,000
7,500

Total no. of vehicles (vehicles)
Electric vehicles
35,000Post-new long-term regulation compliant vehicles
Hybrid vehicles
30,00013
CNG trucks
25,965

6,000
4,500

26,431

26,86926,779

0

9

100

99

385
97

394
98

24,47024,351

1,311

2,801

91

94

lowering the pollution produced by large vehicles, it introduced 5 large

1,500

environmental impacts, beginning with the reduction of CO2

CNG trucks in March 2014, ahead of the rest of the industry. In terms of

0

20,00015,0003,000

corporations to achieve even more effective measures to curb

25,00010,000
4,355

4,349

4,293

4,258

3,981

4,019

2009

2010

2011

2012

2013

2014

0
(FY)

emissions throughout our delivery system.
Reductions to environmental impacts in business activities

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

3. Promotion of 3R*

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

All Group companies will reinforce their efforts to promote 3R in our businessbusiness activities with consideration for the global environment and will take steps

activities, to contribute to achieving a sustainable society.

for voluntary and continuous environmental management.

4. Environmental education initiatives

SG Holdings Group Environmental Policies

We will provide environmental education on reducing environmental impacts and1. Prevention of global warming

preserving and revitalizing the natural environment to all Group employees, in

By providing products and services that take the environment into consideration,order to raise awareness of environmental issues.

and through resource-conserving and energy-conserving activities, we will reduce

5. Environmental communication initiatives

the emissions of CO2 resulting from our business activities and take steps to prevent

With the goal of achieving mutual understanding with communities, we will make active
efforts to release information and to take extensive steps for environmental communication,

2. Prevention of pollution

primarily aimed at children who will be responsible for the next generation.

We will strive to prevent air pollution, water pollution, and soil pollution resulting*The term “3R” is derived from the initials of its main points: “Reduce,” “Reuse,” andfrom our business activities.

“Recycle.”

Reducing CO₂ emissions throughout the delivery system

Train stations and ports

2

Environment

2

Shippers(clients)
Individual /Corporate

CNG
HV•EV

CO2
reduction
4 Sales
Offices /Service
Centers(pickup)such information. In addition to information on its “Own emissions

Holdings Group, has set the CO 2 emission reduction goal of “1%(Scope 1, Scope 2),” Sagawa Express was one of the first companies in

reduction compared to the previous year”. The total volume of CO2

the industry to publicly disclose information on “Other indirect emissions

emissions in fiscal 2014 was 387,200 tons, a reduction of 1.7% from the(Scope 3)” as well.

(10,000 tons)

43.3
4.59

36
28
24
0

1,169,904
t-CO2
Other supply
chain components
782,632t-CO2
66.9%

32

40.53

41.87

40.39

39.23

39.39

38.72

2009

2010*

2011

2012

2013

2014** (FY)Company-owned
facilities
122,264t-CO2
10.5%*The CO2 emissions noted above were verified by a third-party institution.

*With the absorption of domestic air cargo businesses from Group companies into Sagawa Express in fiscal 2010, CO2 emissions that previously were excluded from tabulation became a part of the calculations for Sagawa Express.
**Data for fiscal 2014 includes all domestic emissions of the SG Holdings Group, while data up to fiscal 2013 includes only the emissions of Sagawa Express.

24

SG HOLDINGS GROUP CSR Report 2015

CNG
HV•EV

Deliverydestinations
Individual /Corporate

reduction

CO2
reduction
5 Logistics centers
Sagawa Distribution Center(Sagawa Ryutsu Center = SRC)

Company-owned
vehicles
265,007t-CO2
22.7%

Sagawa Express
Total for all other domestic Group companies

40

3 Large-scale Hub Facilities

4 Sales
Offices /Service
Centers(delivery)
CO2

1 Low-emission vehicles

CO2 emissions throughout the supply chain (fiscal 2014) [Sagawa Express]

44

CO2
reduction

CO2
reductionacross the entire supply chain, and steps have been taken to disclose
Sagawa Express, which is responsible for the core businesses of the SG

Trends in CO2 emissions

Modal shift

CO2 emissions reduction results(fiscal 2014)

Also, in recent years the volume of emissions has been made visible

previous year.

Train stations and ports

112,530t-CO2

global warming.

Status of CO₂ Emissions

Modal shift

CO2
reduction

1 Low-emission vehicles

2 Modal shift

3 Large-scale Hub Facilities

4 Service Centers

5 Logistics Centers (SRCs)

CNG trucks feature low CO2 andNOx (nitrogen oxides) emissions,and do not emit SOx (sulfur
oxides) or PM (fine particulatematter). In addition to these,
hybrid vehicles and electricvehicles have also been
introduced in the collection anddelivery business.
=>See above“Modal shifts,” or transitioning fromtraditional truck transportation tomethods with less of anenvironmental impact such as
boats and trains, are being
promoted. The Super Rail Cargo
special container train, jointly
developed with the Japan Freight
Railway Company, is in operation
between Tokyo and Osaka.
=>See p. 26

As part of efforts to build atransport supporting network, we
are working to reduce thenumber of vehicles we use by
optimizing
transport
usinglarge-scale Hub Centers (25locations nationwide). This willlead to reductions in theemissions of CO2 and air
pollutants from trucks.

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

By having customers use SRCs
as logistics facilities, products
are centrally managed within
the facilities, so transportationfrom shipping centers toseparate storage or processing
centers is not required.
Twenty-five SRC locations areoperated and managed as
logistics processing locations.
=>See p. 26

SG HOLDINGS GROUP CSR Report 201525

Modal Shift Promotion

Promoting Increased Logistics Efficiency with
Sagawa Distribution Centers

Sagawa Express is promoting “modal shift” in order to carry outtransportation with a low environmental impact.

Sagawa Global Logistics operates and administers Sagawa Distribution

Express delivery by Super Rail Cargo, a special container train jointly

Centers (Sagawa Ryutsu Centers = SRCs), logistics facilities directly

developed with the Japan Freight Railway Company, is one component ofconnected to Sagawa Express Sales Offices.

this modal shift. Since its start in 2004 it has expanded to cover 10% of all

In general, many processes are involved in the distribution of merchandise

freight transported between Tokyo and Osaka. It is operated for one trip

from factory to market. It needs trucks or other vehicles between each

each way late every night, with the total volume of cargo it carries overstage. However, products in an SRC are centrally managed within thethe round trip equivalent to 56 10-ton trucks. It is currently making great

facility, so transportation to separate storage or processing centers is not

strides in reducing our burden on the environment, such as by reducing

required, which allows us to simplify our customers’ logistics operations

CO₂ emissions.

and reduce costs. At the same time, CO₂ emissions and air pollutants such

Reducing environmental impacts in cooperation with communities
Model Project Focusing on the Creation of a Low
Carbon Society Commissioned by the Ministry of
the Environment in the Hakata Station Area

Environment

systems.
Facility logistics is a system that allows efficient central management
concerning moving “people, things, and information” in and out of large
scale commercial complexes. It can relieve traffic congestion within andas NOx and PM can also be curbed by reducing energy and minimizing
truck transport.
Active efforts are also being made to reduce environmental impacts,
such as thoroughly separating and collecting waste materials produced

In September 2012, Sagawa Express took on the Model Business Projectaround the facilities, and it can contribute to the reductions in CO2

Focusing on the Creation of a Low Carbon Society commissioned by theemission by lessening the number of vehicles involved in the deliveries.

Ministry of the Environment, and implemented the Model Project for theIt has been receiving positive comments, and has received a certification

Creation of a Low Carbon Delivery and Collection System in the Hakata

from the Tokyo District Distribution Efficiency Certification System in fiscal

Station Area during the 2.5 year period until March 2015. This project2013. Also, it was awarded the Outstanding Green Logistic Partnership

involved initiatives in the logistics processes of express delivery operations

Business.

that are thought to be effective as countermeasures against global

To contribute to building environment-friendly cities in cooperation withwarming, with investigations held on the effectiveness of CO₂ emissions

regional communities, Sagawa will continue to strengthen its cooperation

reductions, business profitability, and repercussions to other regions.

with customers and take steps to further improve the efficiency of facility
logistics.

by logistics processes in SRCs, promoting their recycling, and proposing
packing with environment-friendly materials.

The special container train,
Super Rail Cargo

Establishment of Service Centers
SRC transport flowchart
Sagawa Express has established Service Centers in approximately 340
locations throughout Japan, which collect and deliver packages with

Shipping

Shipping
inspection
Pickinguse of automobiles by 3 to 5 vehicles per office. This can lead to about

Warehousing
Inventory

PickupGoods Receiving
Inspection
Goods Receiving

human powered vehicles, such as push carts and three-wheeled delivery
cycles, rather than using trucks, etc. Each service center has reduced the

Delivery at Tokyo Solamachi® in theStandard product distribution model

Hakata Station delivery box

Delivery

Product distribution using the SRC model
SRC
Shipping

Packing

Shipping inspection

Tagging

Picking

Warehousing

Goods Receiving

Pickup

Delivery

The Sagawa Express Branch is located nearby
Asakusa Kaminarimon Service CenterTokyo Skytree® Service Center

Column 3
Start of Collection and Delivery using Electric Vehicles (EV)

Voice3

Electric vehicles (EV) are also known as “zero-emission cars.” They emit no CO₂ and no

Nissan Motor Co., Ltd.
Fleet Office Manager, Sales
Headquarters

exhaust gases while in operation. However, they are associated with issues such as highinitial costs and requirements for infrastructure such as charging stations.
In July 2014, Sagawa Express and Nissan Motor jointly carried out verification runs of electrictrucks over a period of 2 months and confirmed their practicality. Based on the resulting data,
Sagawa finalized the introduction of “e-NV200” commercial EVs in February 2015.
At that time, five vehicles were introduced. Carried out as part of measures to construct
Green Logistics mechanisms in the OMY area (Otemachi, Marunouchi, and Yurakucho) (see p.

(Specific content of verification)

Masayuki Houshou

In the past, there have been no cases of cooperative delivery

In 2014, Sagawa Express became the first company in the logistics industry

achieved by a single company, and this was considered difficult

to receive the Ministry of the Environment's carbon-neutral certification at

to realize without cooperation with regional public organizations

three of our business offices. We are continuing to take initiatives with theor trade organizations. It has now been achieved with Sagawa

goal of increasing the number of our offices acquiring this certification.

Express acting as the central element and through repeated

Also, in May 2015, SG Moving was recognized for its plan to achieve

investigations with multiple logistics providers.

carbon-neutral status by the Ministry of the Environment’s Carbon Offset

Introduction of electric vehicles (EV)

System Registration and Certification Committee, and the plan was thenElectronic Vehicles had not been the means of freightregistered.

transportation up to this point. Since there was not enough data

Under this plan, of its 13 Sales Offices across the country, the Tokyo Saleson drivable distance of EV, we accumulated the data though the

Office and Headquarters, whose primary delivery area consists of theverification project.

central Tokyo area, will be the target of carbon neutral certification. It will

Creation of delivery box reception services

achieve carbon-neutral status beginning with its moving business andAs a new type of method for receiving packages that are re-extend to all of its businesses, by introducing natural gas powered trucks,

delivered due to absence, a service has been created where

and reducing CO₂ emissions through the promotion of Environmentally-

packages can be received at delivery boxes set up in train stations

Friendly Driving with the remaining emissions being offset by forest

or commercial facilities. Through this, we were able to understandsystem-related J-VER (offset credits) or other methods.

the needs of users and the practicality of this method.

*Carbon-neutral: An extended form of carbon offsetting. It is an initiative where all
greenhouse gases emitted by businesses such as through their business activities are

Reduction of exhaust gases and noise throughthe introduction of electric vehicles
Nissan Motor believes that having zero emissions is especially importantfor commercial vehicles, and launched the zero-CO₂ emission EV “e-offset by reducing emissions or by amounts of absorption in other areas.

Facility Logistics Initiatives13), charging stations for five vehicles were set up at the Chiyoda Sales Office.

NV200” in October 2014. With the reduction of environmental burdens

Commercial EVs are equipped with power supply functions, and can also be used asconsidered a vital CSR topic, Sagawa Express made the decision to

The execution of the Act on the Measures by Large-Scale Retail Stores for

emergency power supplies in the event

introduce these vehicles without delay. EVs, which have the potential

Preservation of Living Environment in 2000 has led to a need for facilityof disasters. With low noise, low vibration,

to create new values, are also effective in CSR and BCP applications as

and excellent acceleration, EVs are not only

“mobile storage batteries” for emergency situations. If the number offriendly to the environment, but can also

Sagawa Express electric vehicles operating in cities can be increased inon these conditions, Sagawa Express has implemented full-scale facility

contribute to BCP measures within local

the future, exhaust gases and noise can be reduced. They will be able

logistics initiatives. With our past results in large-scale commercial

areas.

to offer a sense of security by enabling business continuity in times ofcomplexes including Tokyo Skytree Town®, Tokyo Midtown, JR Hakata City,

disaster, and are expected to receive high praise from local citizens.

management that takes regional communities into consideration. Basedand Shinshizuoka Cenova acting as models, Sagawa Express and World
Supply are currently developing a service for constructing facility logistics

26

SG HOLDINGS GROUP CSR Report 2015

Expansion of Carbon-Neutral* Certified
Businesses

Implementation of cooperative delivery

1,500 fewer automobiles on the road in total, thus contributing to a
reduction in air pollutant emissions.

Tokyo Skytree®

An electric automobile charging up

Carbon-neutral certification

SG HOLDINGS GROUP CSR Report 201527

Participating in Carbon Offset Moving Services
and the Acorn Point Systemservices are eligible for “acorn points,” and in March 2015 a total of 500,000
points were accumulated.
By donating to the Green

Column 4
Ecological Activities Carried Out by Sagawa Express Receive three Environmental Awards

In February 2013, SG Moving became the first company in the industry toTokyo Fundraiser at aoffer “carbon offset moving services.” This is a transportation service whereconversion rate of 1 yen

In December 2014, the environmental initiatives implemented by Sagawa Express received high commendations, and were awarded the Ministry of the Environment

CO 2 emitted by moving trucks is offset with offset credits (J-VER)

per point, the collected

Minister’s Award for Global Warming Prevention Activities, the Award for Outstanding Green Logistics Partnership Businesses, and the Eco-Products Award.

generated by such organizations as the Kamaishi Regional Forestry

points (funds) can be

Association in Iwate Prefecture. Users of the service can contribute to bothprovided to projects for

reducing their environmental impact and supporting earthquake recovery

renewing Tokyo into a city

efforts.

abundant with plant life.

In November 2014, it also became a participant in the Acorn Point System

Ministry of the Environment Minister’s Award for Global Warming

Gift being received by

Ministry of the Environment

Promotion of Activity Measures

Minister’s Award for Global
Warming Prevention

Sponsor: Ministry of the Environment

Activities (left: Mamoru

Green Policy Promotion Senior Manager, Natural
Environment Division, Bureau of Environment, Tokyo
Metropolitan Governmentof the Ministry of Economy, Trade and Industry. Carbon offset movingAward ceremony for

Prevention Activities, Category of Practical Implementation andFukuyama, Parliamentary

Award for Outstanding Green Logistics Partnership Businesses

Secretary of theMinistry of Land, Infrastructure, Transport and Tourism Minister’s Award

Sakae Sudo (left)

Environment)

Sponsors: Japan Institute of Logistics Systems; Japan Association for Logistics
and Transport; Ministry of Economy, Trade and Industry; Ministry ofContributing to a recycling-oriented society
Enhancement of Reverse Solutions

Environment

Award for Outstanding

Land, Infrastructure, Transport and Tourism

Green Logistics PartnershipWith cooperation from: Keidanren (Japan Business Federation)

Businesses*Awards received together with Tobu Railway Co., Ltd.; Tobu Tower Skytree Co., Ltd.; andwarranty period, for the repair of home appliances. Since last year, Sagawa

Ministry of Land,

Tobu Town Solamachi Co., Ltd.

Infrastructure, Transport andExpress has also been commissioned for the total scope of pickup and repair
The SG Holdings Group is contributing to the construction of a recycling-of voluntary recall products of home appliance manufacturers.

oriented society by providing a variety of “reverse solutions” for reverse logistics.

In fiscal 2014, the number of pickups and repairs reached roughly 2,400

Tourism Minister’s Award

Eco-Products Award: Promotion Council Chairperson’s Award (Awardof Excellence)
Sponsor: Eco Products Award Promotion Council(200% compared to the previous year), and these services are therefore

Commission for Home Pickup Services for Used Small Home

contributing to the effective utilization of resources.

Appliances
With the execution of the Home Appliance Recycling Act in April 2013,

Preservation and environmental awareness of forests and biodiversity

the pickup of small home appliances using collection boxes set up in
individual municipalities was begun.

Forest Preservation Activities

Amidst these circumstances, Renet Japan, a company with extensive knowhow in the procedures for pickup of used home appliances, madeus to understand the actual conditions of a variety of ecosystems. We arecarrying out cooperative forest preservation activities such as accepting

preparations to initiate home pickup services for small appliances, andThe SG Holdings Group owns a total of approximately 735 hectares ofvolunteer activities by corporations and holding training activities on

conducted verification experiments in 14 cities including Kyoto andforest in Shikoku's Kochi and Tokushima Prefectures, as well as in Hachioji

forest preservation as well.

Yokohama. In January 2014, this program obtained its first certification as aresource recovery business plan by the Ministry of the Environment andthe Ministry of Economy, Trade and Industry. As the first initiative in theCity (Takao), Tokyo. This is equivalent to the area of approximately 160
The Home Appliance Repair Center within the Sagawa Tokyo Logistics Center

Adoption of Eco-friendly Uniforms

country based on the Home Appliance Recycling Act, home pickup services

Tokyo Domes. Preserving these forests allows us to use them as a source
for CO2 absorption, as well as places for environmental communication

Continually Conducting Eco Actions

and education.

of small home appliances were started in all areas across the country fromThe SG Holdings Group is currently promoting green purchasing,

The Sagawa Forest (in Kochi Prefecture) project has been approved as aYear-round environmental awareness activities known as Eco Actions

March 2015. Sagawa Express has received a commission for the pickup andand is actively purchasing products that contribute to reducing oursource of greenhouse gas absorption by the Ministry of the Environment

were started from fiscal 2003 with participation by all employees, anddelivery operations involved with these services from Renet Japan.

environmental impact. As one component of these efforts, EcoMark-J-VER Certification Committee. Our Group is the first in the logistics

every year these activities are carried out throughout the entire Group

Both companies will continue to promote the recycling of small homecertified reused polyester products made from recycled plastic bottles

industry to have received offset credits (5,612t- CO2).

with a focus on energy conservation.

appliances by utilizing home pickup services, and will contribute tohave been adopted for Sagawa Express uniforms. During fiscal 2014,

We are also involved in restoring undeveloped woodlands in cooperation

In fiscal 2014, Sagawa Express set the goal of reducing energy

securing resources and carrying out proper recycling in accordance withapproximately 89,400 eco-friendly uniforms were manufactured

with volunteers and local citizens, with the Takao 100-Year Forest (inconsumption by 1% compared

the goals of the Home Appliance Recycling Act.

(converted into 500 mL plastic bottles, this is equivalent to roughly

Tokyo) project. Ecosystem studies conducted in fiscal 2014 have allowed

to the previous year, and284,000 bottles).

engaged in activities such as

Home Appliance Repair Service

Additionally, used uniforms that cannot be easily reused are collectedenergy conservation in the

At its Home Appliance Repair Centers, which offer 24-hour homeat the uniform management center, andsummer and winter, and theelectronics repair services, Sagawa Express offers a one-stop solution fromrecycled as blast furnace reductants for

adoption of Environmentally-

picking up devices and repairing them, to delivery after repairs are

ironworks. EcoMark-certified products are

Friendly Driving.

complete. This reduces the lead time involved to around one-fourth what

also used for the cotton gloves worn by

Measures focusing on electricity

it would normally be, and customers can receive their repaired electronics

Sales Drivers, with roughly 551,000 pairs ofconservation were also taken in

the next day if they are within metropolitan or surrounding areas.

these gloves used in fiscal 2014.

business offices of individual

Since beginning the service, Sagawa Express had mainly been commissioned
by home appliance mail-order businesses and home appliance extended
warranty companies offering warranties longer than the manufacturer’s

28

Environment

SG HOLDINGS GROUP CSR Report 2015

Group companies.
Eco-friendly uniform made from recycledmaterials

Forest preservation activities

Company internal awareness poster

SG HOLDINGS GROUP CSR Report 201529

Environmental Awareness for the Next Generation
Nature program

Environment

Eco-Art Contest

Contributing to the Development ofCommunities
In recent years, issues such as responding to the decreasing
birthrate and aging population, and encouraging the revitalization

We have been conducting nature experience learning activities including rice

With backing from the Ministry of the Environment, SG Holdings and Sagawa Express

cultivation experiences in rice fields in Moriyama City, Shiga Prefecture, since 2007 toheld the 1st Eco-Art Contest 2014. This was an initiative in response to the staging ofhelp children realize the bounty of nature, the importance of food, and learn about the

the UNESCO Global Conference on ESD (Education for Sustainable Development) invibrant ecosystem living in rice fields. Group employees, their families, and local citizens

November 2014, in Nagoya City, Aichi Prefecture. Its goal is to contribute in our role

experience traditional methods of making rice, such as planting, harvesting, and drying

as a corporation to the development of the next generation through environmental

the rice on racks.

education.

particularly by activities with the three themes of “Supporting

We are also involved in activities to support the Fish Nursery Paddy Field Project promoted

With the theme of “Cherishing our Earth for us all”, it was an opportunity for children

the foundations of communities,” “Interacting with communities

by Shiga Prefecture, whereto think about environmental preservation by creating works of art, and provided

through sports activities,” and “Supporting academics, culture,“nigorobuna” (round crucian

them with an enjoyable experience while also raising their environmental awareness.

and next-generation education,” we will fulfill our responsibilitiescarp), a type of fish indigenous

Out of 2,599 total entries, 52 pieces received awards. The two entries that received

as a corporate citizen deeply rooted in the local community.

to Lake Biwa, are raised in rice

the Ministry of the Environment Minister’s Award, given to the most outstanding

fields and then released.

pieces, were adopted as wrap designs on Sagawa Express trucks which were in

We also conduct forest

operation for a limited time from February 2015 in major cities across the country.

schoolat

the

To achieve the sustainable development of communities, ourgroup believes that it will be necessary to face these issues as a
unified society together.
Through interaction with both domestic and overseas communities,

Supporting the foundations of communities
Construction of a New Delivery Infrastructure and
New Last-Mile Initiatives

SagawaRice cultivation experience activity

Forest and Takao 100-Yearof local areas are becoming urgent issues for regional communities.

(excluding Lawson Store 100 locations) where products purchased from mailorder and online business operations of Sagawa Express business partners will
be available for 24-hour pickup. By specifying the desired Lawson store for

Forest that allow children to experience nature, in collaboration with environmental
incorporated non-profit organizations and educational groups. During fiscal 2014 a

Due to changes in lifestyle brought about by the increased numbers of

pickup at the time of ordering, customers can designate pickup locations for

total of 200 students fromwomen in the workplace, the aging society, and greater numbers of 1- andtheir packages that match their lifestyles, such as homes, workplaces, andelementaryand2-person households, the needs of society are becoming more and moretravel destinations.

high schools visited thesediversified. This is in turn causing increased diversification of consumption

We will strive to establish a new business style that can offer a one-stop

forests, explored, and createdstyles as well, and as e-commerce continues to spread and advance, thesolution for the varying needs of communities through the operation of SG

wooden items such as photoservices that we provide must be able to respond to those needs.

Lawson and Sagawa Express.

frames and chopsticks.

Based on these circumstances, our Group deemed convenience stores aschools

Top: Pieces awarded the Ministry of the Environment Minister’s Award (for higher grades [left], for lower grades [right])
Parents and children making photo frames together

Comment from management

valuable network and an infrastructure component for home delivery to, andin April 2015, we concluded a business partnership contract with Lawson, Inc.,

Bottom: Departing ceremony for trucks with wrap design

Comment from an expert
Deputy Director, Environmental Transport Policy

1.	
Deliveries of Sagawa Express packages and Lawson products

the joint venture SG Lawson, Inc. was established, to carry out services such as(products sold in stores, fresh products from Lawson Fresh, etc.),

small commercial zone delivery and order-taking within a 500-meter radius ofDivision,with reducing CO2 emissions throughout its entire delivery system. Beginning with

Ministry of the Environment

Lawson stores.

the active introduction of low-emission vehicles, we have also promoted measures to

Maki Nakamura

Through SG Lawson, Inc., delivery services of Sagawa Express packages andEnvironment

Management

Bureau,Lawson products are being offered to customers in an area within a 500-meterusing facility logistics in large-scale commercial facilities to reduce fuel consumption

The SG Holdings Group is continuing to take a variety of actions to reduce environmental

by easing congestion in the areas around such facilities and by lessening the number

impacts in its logistics services. Activities such as taking the initiative in, as well as engaging

radius centered on Lawson store locations. Delivery in small commercial zones

of delivery vehicles, we have continued to take initiatives for CO2 reduction. Havingin the continuing introduction of, low-emission vehicles, participating in verification

enables detailed and precise support, allowing last-mile provision with anthese actions received high praise, Sagawa Express earned three environmental

experiments for electric vehicles, and improving the efficiency of collection and delivery

awards in fiscal 2014. By also participating in the construction of environmentally-

even higher level of convenience. This new service was started at

systems. All of the above can be be seen as extensive environmental preservation measures

friendly logistics systems around the OMY area together with relevant local

in the core areas of its business activities, and as ways to encourage the further technicalcompanies, exhaustive efforts are being made toward the development of products

development of vehicles and information systems. It is also demonstrating an active stancescheduled to expand to include roughly 100 stores in the span of one year.

and services not only by our group itself, but also in cooperation with stakeholders.

toward the goal of reducing environmental burdens in a variety of ways, such as with its

Since the services provided by SG Lawson use push carts instead of vehicles,

We will continue to promote business activities with consideration for the global

Delivery Mate service which integrates environmental measures with responses to multiple

environment while striving to exist in harmony with society and nature, and will takesocial needs, and by increasing the number of its business offices with the carbon-neutral

steps for voluntary and continuous environmental management.

certification, which is linked to CO2 reduction efforts throughout its business activities.

working styles offered by this system, we are intending to create more

These initiatives can be viewed as ways to aid in developing environmental measures inopportunities for active participation by women and to contribute to resolving

the industry as well as contributing to higher awareness of environmental preservation for

the issue of our aging society.

service users. We have high expectations for the SG Holdings Group to further expand the
Director, Sagawa Express Co., Ltd.

potential of environmental measures in the logistics field, while also making the processes

Hiroyuki Uchida

involved in its initiatives known to the public whenever possible.

SG HOLDINGS GROUP CSR Report 2015

SG Lawson’s major services

the owner of roughly 12,000 convenience store locations nationwide. In June,

The SG Holdings Group is taking steps to reduce environmental impacts, beginningcurb the use of delivery vehicles through the establishment of Service Centers. While

30

Participating in the Community and Supporting Community Developmentwith Lawson stores serving as delivery bases.
2.	Pickup of Lawson store products and delivery to homes or otherlocations, after orders are received at dedicated call centers and by
full-time delivery managers.
3.	Agency operations for various life support services and provisionof product special-order services using multi-functional tablet
devices.

approximately 20 stores in an area centered on Tokyo’s Setagaya-ku, and isthey are also linked to reducing environmental impacts. Through the new
Home deliveries and assistance with your lifestyle.

“Machi no Kurashi Support”

From July, Sagawa Express will also begin services at Lawson stores nationwide

SG HOLDINGS GROUP CSR Report 201531

Safety Awareness Initiatives

Learning about Logistics Mechanisms throughExperience

Interacting with local communities through sports activities
Initiatives Supporting Sports

As a company that uses local public roads to do business, contributing toand-field team can train to win the New Year Ekiden, and our softballteam can reach the top of the Japanese Women's League Division 1.

a safe and secure transportation society is our highest priority.

In April 2014, Sagawa Express worked in cooperation with the Future

Sagawa Express holds Sagawa Express Traffic Safety Classes taught by

Innovation Forum (FIF) to hold the Logistics Frontline Work Experience

The SG Holdings Group is engaged in initiatives to support the

Sagawa employees in every region, in an attempt to protect our children

Event, an event for children planned and managed by the FIF at our Tokyo

development of the next generation, through the activities of its track-from tragic traffic accidents. Course content includes how to properly

Headoffice. This event served as an opportunity for career education

and-field team and softball team.

cross the street and the meanings of road signs and traffic signals.

where children could learn and think about society and work, through a

Our softball team held eight classes in fiscal 2014 and taught roughly

Subjects such as truck blind spots and examples that are likely to lead towork experience activity. Since its start in 2007, it has been participated in

1,000 students, including elementary school students and middle school

accidents are explained with impact by using actual trucks as examples.

by over 120 children.

students, the joy of softball.

As an effort to keep children safe throughout the entire community,

On the day of the event, 17 randomly-selected students, including 6th-

local police and parents are asked to participate as well, creating an

grade elementary school students and 1st-year middle school students,

environment where everyone involved can learn. During fiscal 2014, 1,069

put on Sagawa Express uniforms and participated in a variety of educationalclasses were held across the country, with 103,173 people participating.

experiences such as riding along with drivers in trucks, learning about theIn the 12 years since its start in 2003, 9,000 classes have been held with amechanisms of the home delivery business by observing equipment suchtotal of 1.2 million participants.

as automatic sorting machines at the Sagawa Tokyo Logistics Center, andengaging in practical delivery training exercises.

Participating in the Community and Supporting Community Development

Softball teamThe softball team warming up

During a question-and-answer session held by Chairperson Kuriwada, manyquestions were received from the participating children, and it was an

Also, to encourage sporting events for physical and mental health, ourexcellent opportunity for them to think in depth about leadership and work.

Group is helping to create an environment in which athletes who workfor us and want to continue playing sports can do so. Supporting
employee athletes in the track-and-field team and softball teamencourages participation in sports. At the same time, when people cheer
on their top-level athlete coworkers it contributes to a sense of company
loyalty.
We will continue to design and implement new plans so that our track-

Traffic safety classMoving Services Provided by Service Assistants

Track-and-field team

The Logistics Frontline Work Experience Event

Foundation Activities to Support Academics, Culture, and Next-Generation Education (p. 42, 43)

At SG Moving, staff members who possess Service Assistant certifications
can respond to the various needs of the elderly and people withdisabilities.
During a case of simultaneous admission of all residents to an elderly
facility in Sapporo City in Hokkaido (169 units), a team was organized by

Column 5

Comment from management

Executive Director, CSO Network Japan

Contributions to Local Communities by Sales Drivers

In recent years, the state of logistics in local communities has been

Sagawa Express is taking steps for crime prevention and watching overIn addition to paying attention to safety and the environment, thethe elderly under cooperative systems with local police and regional

construction of logistics systems that can contribute to resolving regional

long process while listening closely to the requests of the residents. This

governments across the country.

undertaking received great praise by the residents’ family members. Even
aside from Service Assistants, our system can offer support from staff

occurring frequently in recent years, cases where Sales Drivers or
Customer Service Section Staff are able to notice suspicious mattersmembers who hold certifications as Sorting and Storage Advisors andduring their work and prevent incidents before they occur are

Personal Effects Organizers.

increasing, and are proving valuable in preventing fraud cases.

issues is also being required. Our Group is taking steps in various locations
toward these goals, as part of our responsibility as a corporation involvedin business in many regions both domestically and overseas. Our initiatives
cover a wide range of fields and apply the know-how we have cultivated
up to this point, and include continuing our activities to encourage traffic
safety, as well as providing services to support the elderly and opportunities
to educate children. In April 2015 we entered a business partnership with

Also, to contribute to creating cities where the elderly can live without

Lawson, Inc., beginning services to further enhance the convenience weworry, we conclude agreements for projects, such as watching over

Advisors (Level 1 and Level 2 certifications) stationed at our Sales Offices

can offer to mail-order shopping users and local residents. We will continue

the elderly with local governments, and arrange systems so that if any

to cooperate with communities and corporations to contribute to theacross the country on a continuing basis. We will continue to encourage

unusual circumstances involving elderly people are noticed, they candevelopment of a sustainable society.

As of April 2015, there are 47 Service Assistants and 15 Sorting and Storage

the acquisition of these certifications by our staff members.

be communicated to local government contact windows. As of March
2015, we have been concluded such agreements with roughly 60 local
governments.

Kaori Kuroda

diversifying together with the diversification of logistics in general.

our Service Assistants, and transportation was carried out over a week-

With incidents of fraud using home delivery for criminal purposes

Comment from an expert

The SG Holdings Group, which is primarily involved in the transportationindustry, is directly connected to citizens and communities through its
main businesses.
SG Lawson City Life Support, which will begin during this fiscal year, is
expected to lead to initiatives that can help resolving the shopping difficultyissue for the elderly, which is one of the major problems the society ofJapan is facing. Answering the needs of citizens in ways like this can not
only improve convenience, but measures such as helping to watch overelderly people living alone and offering support to ensure that they have
nutritional and balanced diets will become increasingly important from thestandpoint of providing safety and security.
Other than the currently involved initiatives of contributing to traffic safety,

Executive Officer and Business Promotion

reducing environmental impacts, and cultivating the next generation, weDepartment General Manager,

are also looking forward to SG Holding Group to establish their image of the

SG Holdings Co., Ltd.

ideal community that they wish to achieve.

Yasuji Ioka

32

SG HOLDINGS GROUP CSR Report 2015

SG HOLDINGS GROUP CSR Report 201533

Building an Organization
with Individuality andDiversity

Promotion of diversity

Human Rights

Labor Practices

Promoting the Activities of Female Employees

Employing People with Disabilities

as a corporate group with 80,000 employees, recognize that

To promote the activities of female employees within the SG Holdings

The SG Holdings Group continues to promote the arrangement of

securing and applying our diverse range of human resources asGroup, we actively continue to expand job categories for female

environments allowing both those with disabilities and those without toemployees and recruit more women into management roles. In addition

exercise their individuality and expertise and to work in a lively mannerto establishing an environment in which women can work comfortably(employment rate of people with disabilities: 2.08%).

While our demographics is undergoing great changes, we,a critical issue.
The SG Holdings Group promotes diversity and humanresources development with the goal of reinforcing thein terms of both systems and culture, we are taking initiatives to promoteindividuality of its personnel and cultivating human resourcesthat can actively and boldly take on new challenges. Under the

career progression for our female employees. Business development withconcept that the sustainable growth of a corporation depends

participation by women was a major topic in fiscal 2014. In addition to

on the support of its people, we have formulated a personnel

the continued staging of the WakuWaku Awards, which recognize offices

vision and human resources system shared throughout ourthat actively take steps to create business opportunities or make businessGroup, and are promoting activities in terms of both systems

improvements for women, we also conducted Women’s Career Support

Every year, the SG Holdings Group holds Advance Seminars for Mandatory

and culture.

Training,

forRetirement for all employees who are preparing to retire during the next

female employees who

fiscal year, with the goal of helping them imagine their situation after

are candidates to assume

retirement in specific terms. Information is provided on work, financial

management roles in theplanning, public pensions, health, and other subjects. 149 employees

next term.

retired in fiscal 2014. Of them, 134 employees, or nearly 90%, desired

Basic Philosophy
SG Holdings Group Personnel Vision

importance of each employee acting independently. Furthermore, since2013, GMs (Group Managers*) were given the task of promoting improved

WakuWaku Awards presentation

The SG Holdings Group established our personnel vision in 2012, so that

communication activities, and are engaged in activities to communicate*For details on promotion of the activities of female employees, see Highlight 2 (p. 14, 15)

all employees of the SG Holdings Group can act independently and makethese new values to all employees.

the best use of their abilities and individuality. Our personnel vision*Group Managers: Division manager-level employees.

necessary to cultivate human resources, and communicates the

Respect for human rights

Human Rights

Labor Practices

Continuing Implementation of Employee
Attitude Surveys

Conducting Ethical Code of Conduct Training

to continue working. While utilizing their accumulated experience inworkplaces suited to their individual abilities, they are taking on active roles
to provide excellent instruction and consultation to young employees.

Promoting human resources cultivation

clarifies our organizational culture and the various ways of working,

Human Rights

Labor Practices

Enrichment of Training Systems

Awards for Employees

The SG Holdings Group has set systemization and enhancement of its

The SG Holdings Group has set up an Employee Excellence Awards

initiatives for human resources cultivation as a mid-term goal. In fiscal

System in which Group employees who have delivered superior results

2014, it carried out seminars for employees with GM (Group Manager)

are recognized each year. Award recipients among them who havecertifications. In these, personnel who were candidates for management

achieved particularly noteworthy results and could be a model for othersroles that support the core of the Group’s businesses participated in

to follow are also invited to an awards ceremony together with their

In its code of conduct, the SG Holdings Group gives the highest respect toWhile promoting stakeholder management, we conduct employee

internal training for a total of 5 sessions over 9 days, and seminars at an

families. The motivation of award recipients is raised further by receiving

various international norms including human rights, as well as culture andattitude surveys with the goal of understanding Group employee

external school over a period of 3 months.

congratulations from their families and work superiors, and the morale ofcustoms, and clearly indicates these considerations to its stakeholders. In

attitudes, identifying issues, and making improvements. In fiscal 2014, theWe have also conducted overseas training sessions throughout the 35

other employees is strengthened as well. By reflecting the work-related

fiscal 2014, training on our Code of Ethics and Conduct was provided toparticipants in these surveys were expanded to all employees, includingyears since 1979. In fiscal 2014 as well, roughly 80 employees aspiring toattitude and skills of the award recipients in the form of videos andall domestic employees. Our goal is to raise the ethical standards of the

non-regular employees in domestic corporations.

be active on the global stage were selected, and visited our local Groupsharing them with the rest of the Group, the quality of service throughout

Group by enhancing the humanity (character building) of our employees,

We will continue to improve the satisfaction of our employees in thecompanies and shipper companies in ASEAN regions with outstanding

the Group can be improved and the awareness of employees can be

and developing a wide variety of knowledge, skills, and ethical viewpoints

future, and realize the creation of a positive growth cycle connected withgrowth. After exchanging information, the training participants gave aenhanced.

(moral framework). From fiscal

increasing customer satisfaction by incorporating the opinions of ourpresentation on our Group’s deployment of overseas businesses. We will

employees who also play roles as stakeholders into management.

continue to focus on further cultivation of our global human resources.

2015 and beyond, we will takeextensive steps to communicate

SGホールディングスグループ倫理・行動規範
私たちは、「ＳＧホールディングスグループ行動憲章」を具体的に表現した本倫理・行動規範に則り行動します。
第1章 お客さまの期待とともに ～私たちは、お互いに発展を続けます～1

私たちは、創業の原点である「飛脚の精神(こころ)」を継承し、常にＳＧホールディングスグループを代表しているという自覚を持って行動し、お客さまに満足していただけるよう誠心誠意尽くします。

2

優れた商品とサービスの開発・提供

4 会社の財産と情報の管理

私たちは、常にお客さまの視点に立って、心から満足していただける優れた商品とサービスを開発し提供します。

3

points,includingto

丁寧で分かりやすい説明

overseas Group companies.

私たちは、会社財産、情報及び知的財産の重要性を認識し、自社の権利を守るとともに他社の権利も尊重します。
■■

会社財産の不正利用の禁止
情報の管理

第4章

Preventing Harassment

株主・取引先の期待とともに ～私たちは、お互いに信頼を築きます～4

信頼に応える誠実な業務

5

お客さまの声に対する積極的な対応
5 法令の遵守と社会規範を尊重する良識ある行動
2 財務報告の信頼性の確保

6

3 取引先との共存共栄
お客さまの機密及び個人情報の管理不正行為の防止と倫理観の醸成

私たちは、情報セキュリティ基本方針を定め、機密情報を含む会社の情報資産を守ることが社会的な責務であることを常に意識し、これを厳重に管理し、在職中のみならず退職後も不正又は不当に利用、開示及び漏えい等を行いません。
1 株主との対話

私たちは、商品・サービスの提供をするときは、お客さまとの契約や約束を守ることはもちろん、決められたルールに従って誠実に業務を行■ 知的財産の管理
私たちは、すべての株主と公平に接し、正確な経営情報を適切に伝え、理解と信頼の構築に努めます。
また、株主との対話を大切にしてい、お客さまの信頼に応えます。
私たちは、会社の知的財産を適切に管理します。
また、他社の著作権や特許権をはじめとする知的財産権を侵害しません。
その意見や提案を活かし、健全で透明性のある企業経営に努めます。

私たちは、お客さまの要望やクレームには真摯に耳を傾け、積極的に対応し、今後の商品やサー
ビスの開発・改良に活かします。
私たちは、国の内外を問わず、すべての法令を守ります。
また、社会規範を尊重し、高い倫理観を持って良識ある行動を実践する
私たちは、
法令、社内規程に基づいた適正な会計処理を行い、財務報告の信頼性を確保します。 とともに私生活でも会社の名誉、信用及びブランドを損なう行為は行いません。

on a continuous basis. In fiscal 2014, 19 manager-level staff members affiliated

The SG Holdings Group believes that creating a corporate culture in whichwitheach employee is aware of issues and works toward innovation will lead

■

私たちは、
誠実な姿勢で取引先に接し、適切な信頼関係を築く
ことで相互の発展を目指します。
私たちは、業務上知り得たお客さまの機密及び個人情報を厳重に管理し、盗用、漏えい及び改ざん等を防止します。
また、関連法規や社
私たちは、法令遵守はもちろん本倫理・行動規範に沿った良識と責任ある行動を取ることにより、
不正の発生を防止し、不正を許さず、不祥事を隠さない企業風土と倫理観の醸成に努めます。 ■ 優越的地位の濫用の禁止
内規程を遵守し、目的以外の使用や第三者への提供は行いません。
■

人権の尊重と差別の禁止 私たちは、常に対等な関係で取引し、優越的地位を利用しての商品購入や金銭負担の強要は行いません。また、合理的な理由なしに、一方的な価格の引き下げや、無理な納期短縮の要求は行いません。
私たちは、人権侵害につながる児童労働、強制労働などは、
すべての国において行いません。人種・民族・国籍・宗教・信条・性別・社会的身分・障がい・病気・年令等による差別・虐待は行いません。
他者のこれらの行為も許しません。
■ また、取引先の機密及び個人情報の保護第2章 従業員の期待とともに ～私たちは、
お互いに明るい職場をつくります～
私たちは、業務上知り得た取引先の機密及び個人情報を厳重に管理し、盗用、漏えい及び改ざん等を防止します。
また、関連法規や契約条項を遵守し、目的以公私のけじめ■1

私たちは、職場での公私のけじめは外の使用や第三者への提供は行いません。
もちろん、職務・職位等を利用して私的な利益や協力を求めることや第三者に便宜を図ることは行いません。
また、お客さまや取
引先から個人的な報酬を得ることや金銭の貸し借りは行いません。

業務への取り組み

4 自由で公正な競争■ 接待の節度
私たちは、
ＳＧホールディングスグループの一員として、
常に自分自身と職場の人たちの成長を心がけて業務に取り組みます。
誠実な業務と報告・連絡・相談の徹底
自己啓発と新しい価値の創造

5 反社会的勢力への対応

私たちは、不正や誤りを発見したり気付いたりしたときは、速やかに上司又は会社に報告します。適切に対処されない場合は、社内通報のルールにより「コンプライ
会社は、従業員の安全確保を最優先し、警察や弁護士等の外部専門機関と連携の上、組織的かつ法的に対応します。個々人での判断や対応は行わないで下さい。
アンス・ホットライン」又は「何でも相談室」に通報します。

交通弱者への配慮

私たちは、子どもや高齢者等の交通弱者に配慮し、業務中・プライベートを問わず、
常に安全運転を徹底します。

■

エコ安全ドライブの推進

会社は、厳正な調査を実施して適切な対処を図ります。
また、社内通報のルールに基づいて対応し、通報者の匿名性を確保して不利益な扱いを受けないように配慮
します。

私たちは、
エコドライブが安全運転につながることを認識し、安全で人と環境にやさしい「エコ安全ドライブ」
を実践します。

3

働きやすい職場づくり

第3章

地域社会の期待とともに ～私たちは、お互いに歩み続けます～

Each June, the SG Holdings Group holds Harassment Prevention Month.

companies

into business growth. Under this concept, an Internal Venture System was

During this period efforts are made to create a bright workplace environment

Japan to share their company

newly established in 2014, with the goal of creating new businesses andin which the diversity, character, and individuality of all employees arecultures and participate incultivating human resources with an entrepreneurial mindset. This system

respected, and where employees are not subject to harassment but instead

training that included visits

invites business ideas and investigates the development of outstanding

are able to feel ambition toward their work. Awareness promotion throughto our major offices.

proposals into actual businesses. 501 applications were received in its

1 く
地域社会との共生
私たちは、職場のすべての人たちがお互いに気持ちよ
生きいきと働けるように、お互いを思いやり、それぞれの考え方や立場を尊重します。
■

人権・人格と個性の尊重

私たちは、国の内外を問わず地域社会の発展に奉仕し、広く社会との共生を目指します。

【付則】■ 開かれた企業
私たちは、お互いの人権・人格と個性を尊重し、一人ひとり私たちは、がその能力を最大限に発揮できる職場をつくります。
社会の要請に応え、企業情報を積極的に開示するとともに、広く社会とのコミュニケーションを促進し、透明性の高い企業活動を行います。
適用範囲■ 信条の尊重■ 地域社会との交流
本倫理・行動規範は、
ＳＧホールディングスグループのすべての役員・従業員に適用します。
私たちは、職場で働くすべての人の信仰の自由を尊重し、職場内では特定の宗教の勧誘、
誹謗及び中傷等は行いません。
ま
た、
職場で働く
すべての人の政治信
私たちは、豊かで健康な生活、安全で安心できる社会の実現に向け、
各種イ
ベン
ト活動
・・
災害支援活動・ボランティア活動等、広く地域社会との交流に努めます。
※従業員の範囲：
正社員・準社員・契約社員
・
臨時社員
嘱託社員
・派遣社員
条を尊重し、会社の許可なく職場内において政治活動は行いません。
■ 固有の文化・慣習の尊重■■安全で健康的な職場

私たちは、それぞれの国のス改廃
テークホルダーに配慮し、地域の文化及び慣習を尊重します。
私たちは、
６Ｓ（整理・整頓・清潔・清掃・
しつけ・作法）活動をはじめ、職場に係わるルールや法令を遵守します。
本倫理・行動規範の改廃については、
ＳＧホールディングス株式会社の取締役会に承認を得るものとします。

挨拶の励行とコミュニケーション

2

安全への取り組み

従業員の個人情報の保護

3

環境への取り組み

問い合わせ
・通報窓口
私たちは、
働きがいのある生きいきとした職場をつくるために、
挨拶の励行とコミュニケーションを活発化し、相互理解を心がけます。
私たちは、あらゆる事業活動において、「安全はすべてに優先する」の精神のもと、安全への取り組みを実践します。

■

■

Group

ません。
また、政治家、政党及び選挙立候補者に対して、違法な支援は行いません。

私たちは、積極的に自己啓発に努め、職場の一人ひとり■が個性や特性を活かして新しい価値の創造のために努力し未公開の重要な情報（イ
ンサイダー情報）の取り扱い ます。 ・個人に対しては毅然とした態度で対処し、不当な要求を受けた場合には断固として拒否を私たちは、
暴力団等の反社会的な団体
私たちは、
インサイダー取引に係わる法令及び規程を守ります。業務上インサイダー情報を知り得た場合には、その情報が公開されるまで、その会社の株式を売買します。そのような求めを受けた場合、速やかに上司又は会社に報告します。適切に対処されない場合は、「不当要求相談窓口」に
安全運転の徹底することや家族を含めた第三者に漏らす行為は行いません。

■

international

私たちは、贈答・会食・接待等を社会的に許容される範囲内に留め、
不正な目的に利用したり、利用されたりすることのないよ
うに十分注意を払います。 独占禁止法などの法令を守り、私たちは、自由で公正な競争を制限する談合等には参加しません。
また、
自由な競争原理に基づき、正々■ 公務員や政治家との付き合い
堂々と競争し、競争会社等の誹謗・中傷は行いません。
私たちは、就業規則をはじめとする社内の諸規程を守り、上司への報告・連絡・相談を徹底するとともに、能力を最大限に発揮し、誠実に業務に取り組みます。
私たちは、公務員との付き合いには十分注意を払い、関連法規に抵触しないよう配慮し、行政とのもたれ合いや癒着と誤解されるような贈答・会食・接待等は行い

■

■

2

相談します。
私たちは、物流業をコアとするグループ企業であるこを自覚し、安全運転を徹底します。
■と会社への報告と適切な通報

1.本倫理・行動規範の内容や解釈に関して疑義が生じた場合の問い合わせ窓口は「SGホールディングス株式会社コンプライアンス所管部署」とします。

2.本倫理・行動規範に違反する行為又は違反のおそれのある行為を発見した場合は、速やかに上司又は会社に報告して下さい。適切に対処されない
私たちは、お互いのプライバシーを尊重します。
また、従業員の個人情報は関連法規や社内規程に従って保護、管理し、目的以外の使用や第三者への提供は行
私たちは、環境理念と環境方針を定め、地球環境に配慮した事業活動を推進し、場合は、社内通報のルールにより「コンプライアンス・ホット循環型社会の構築に努めます。
ライン」又は「何でも相談室」に通報して下さい。
いません。
■ 地球温暖化の防止
3.通報者は通報したという事実により何ら不利益を受けません。
ただし相手を陥れるための誹謗中傷は受け付けません。
（内部通報規程）
差別・ハラスメントの防止
私たちは、環境に配慮した商品・サービスの提供や省資源・省エネルギー活動を通じて、地球温暖化の防止に取り組みます。
私たちは、職場において、不当な差別、
セクシャルハラスメン
ト及びパワーハラスメント等の人権侵害を行いません。
また、これらを受けていると感じた場合には、速や■ 汚染の防止
罰則り
かに上司又は会社に報告します。適切に対処されない場合は、
社内通報のルールによ「何でも相談室」に通報します。
私たちは、環境保全活動として大気汚染、
水質汚染及び土壌汚染等の防止に努めます。
本倫理・行動規範に違反する行為をした者や違反を放置した者は、就業規則やその他の社内規程に基づいて処罰の対象となることがあります。

会社は、厳正な調査を実施して適切な対処を図ります。
また、社内通報のルールに基づいて対応し、通報者の匿名性を確保して不利益な扱いを受けないように配慮■ 環境教育の取り組みします。
私たちは、環境負荷低減や自然環境の保全・再生に向けた環境教育を行い、環境問題への意識向上に努めます。
■

assembled

環境コミュニケーションの取り組み

私たちは、地域との相互理解をめざし、次代を担う子どもたちを主な対象として、広く環境コミュニケーションに取り組みます。

4

芸術・学術・スポーツの支援

私たちは、財団活動やスポーツクラブ活動等を通じて、芸術・学術・スポーツの支援に努めます。

SGホールディングス
掲示期間2015.3.21～

01

2008年3月21日施行
2009年3月21日改定
2011年3月21日改定
SGホールディングス
2015年3月21日改定
掲示期間

2015.3.21～

02

SGホールディングス
掲示期間2015.3.21～

03

Code of Ethics and Conduct training tools

videos and informational materials, self-checks of the workplace, and otheractivities are engaged in by the entire Group.

SG HOLDINGS GROUP CSR Report 2015

Internal Venture System

We also hold training sessions for staff from international Group companies

満足と信頼の獲得

私たちは、有形・無形を問わず商品・設備
・備品・情報・知的財産等の会社財産を私的な利益のため、
また、不正の目的をもって利用する行為は行いません。
私たちは、お客さまへの商品・サービスの提供や、お問い合わせ等については、情報を正確に提供し、丁寧に分かりやすく説明します。

these

34

intended

Initiatives for the Continuing Employment of theElderly

initial year, and the final review (Venture Business Grand Prix) was held
Training for overseas staff

in November.
SG HOLDINGS GROUP CSR Report 201535

Constructing Supply Chain CSR
Promotion of work-life balance

Human Rights

Labor Practices

Diverse Work Systems

Health Management for EmployeesWith the goal of achieving a good work-life balance and the diversification

A Health Management Project Promotion Meeting is held once a year, toincreasingly being placed on companies worldwide, we believeof working styles, the SG Holdings Group is carrying out initiatives tosupport the promotion of health for employees by determining timethat it is vital to carry out sustainable business activities over

expand the available options for working styles that fit each individual. Up

periods, target levels, achievement levels, and practically applying theour entire domestic and overseas supply chain.

to fiscal 2014, we arranged environments making it easier for employees

PDCA cycle to important initiatives. Due to these initiatives, the HealthTo build sustainable cooperative relationships with business

who had obtained child care leave to return to the workplace. We have

Insurance Association of the SG Holdings Group was selected as a model

partners, the SG Holdings Group has established Businessextended the period of time for shortened working hours up until a child’s

case in the Ministry of Health, Labour and Welfare’s Data Health Plan forPartner CSR Guidelines that clearly indicate our concepts ofadmission into elementary school. From March 2014, SG Expert has

fiscal 2014.

CSR and our corporate stance toward procurement and other

implemented an at-home work system to further diversify working styles.

The 100 Healthy Days Project for voluntary improvement of health andsubjects.

Also, in order to improve job and employee satisfaction, we are promoting

strengthening of mutual communication by setting individual health goals

We will promote CSR activities throughout the supply chain

life support functions through theand sharing information with work colleague has also been implemented.

and contribute to develop a sustainable society together withenhancement of benefit programs.

Furthermore, Anti-Smoking Programs are being deployed as well.

our business partners.

In addition to the informational

As additional initiatives for health maintenance with cooperationand educational materials available

between our company and our Health Insurance Association, Lifestyleon the Group benefits package

Disease Prevention Campaigns are carried out. The measures include

website “Familink”, the benefits

providing SG Healthy Balance Meals in cafeterias, displaying calorie

service “Eraberu Club” wascontent, and providing food related information.

With demands related to human rights and the environment

introduced in December 2014.
Familink top page

Promotion of CSR in the supply chain
Establishment of the SG Holdings Group’s
Business Partner CSR Guidelines

Children’s Observation Day
In order to contribute to developing a sustainable society, the SG

Mental Healthcare Initiatives

For family members of employees to obtain a higher understanding of theHoldings Group believes that it is important to carry out initiatives forcompany, and to raise the motivation of employees themselves, the Children’s

CSR not only in our own Group but throughout the supply chain.

As a support measure for maintaining and improving the mental health

Observation Day program was started from 2014. Allowing children to observe their

Therefore, to aid business partners in understanding our Group’sof employees and their families, we have established SG Holdings Groupworking parents (employees) and their workplace and colleagues in this program

concepts of CSR and corporate stance toward procurement and other

Health Dial 24, which is operated by specialized institutions and offers

contributes to next-generation education by giving them an opportunity to learn

subjects, and to gain their related cooperation, the SG Holdings Group

consultation services by Internet and toll-free telephone. If desired,about society. In the initial year, this was held

established the Business Partner CSR Guidelines in November 2014.

examinations by clinical psychologists can be received at no charge at

at SG Holdings and SG Motors, with 49

We will continue to build strong partnerships in cooperation withcounseling rooms located across the country. Systems for face-to-facechildren and their guardians participating.

business partners and promote activities with consideration for social

counseling with clinical psychologists are also available for maintaining

Situation on Children’s
Observation Day

mental health.

Comment from management

Hiroshi Ishidaapparent, it is being required for companies to respond to those issues by
re-evaluating personnel strategies and constructing new employment andfully applying the regional features and characteristics of each business, it
is taking steps to arrange and achieve working environments where
employees can feel greater motivation for their work. Particularly withrespect to initiatives for promoting the activities of female employees,
focus is being placed on enhancing systems to provide a workplaceenvironment not only with good work-life balance but where work can be
performed with enthusiasm and excitement, incorporating a stronger
viewpoint of “inclusion” in order to create new businesses. We willcontinue to strengthen our foundations to foster a
corporate structure allowing us to respond todiversifying customer needs.

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

Executive Director, Caux Round Table - Japan

population caused by the declining birth rate becoming more and more

SG Holdings Group places people at the center of its businesses, and whileenvironment.

Comment from an expert

With social issues such as the aging society and the decrease in working

labor systems, such as by promoting diversity and work-life balance. The

responsibilities such as safety, security, human rights, labor, and the

Fair Business Practices

Cooperation with business partners

Fair Business Practices

Initiatives from the Viewpoint of Safety

Initiatives from the Viewpoint of the Environment

workplace environments of employees, particularly with regard to labor hours,

Sagawa Express carries out Highway Transportation Safety Patrols andWith the goal of achieving transportation that is safe and also

work safety, discrimination in employee treatment, and equality in work

Highway Transport Terminal Inspections with cooperation from partner

environment-friendly, Sagawa Express and the Japan Freight Railway

opportunities, are viewed as points that should be emphasized in the logistics

companies, in order to secure safety during highway transportation.

Company have jointly developed the Super Rail Cargo special container

We also are involved in initiatives to ensure safety carried out throughtrain and are promoting transportation using railways in place of trucks.

Diversity and inclusion in workplace are essential for today's organization, in
the 2014 Stakeholder Engagement Program that we carried out, theindustry.
Under these circumstances, we would like to praise these full-scale initiatives
to support the activities of female employees, such as the Delivery Matethe supply chain, such as holding Safety Seminars for managers of

We are also using EcoMark-certified uniforms produced by Mizuno

service and having female employees be responsible for 30% of business

partner companies every year, and staging lectures on subjects including

Corporation.

revenue, as progressive measures in the industry.

the basic and legal responsibilities of transportation businesses, and how

In addition, we are carrying out a wide range of initiatives for reducing

to avoid work-related accidents.

environmental impacts, such as actively introducing low-emission

On the other hand, we also look forward to the deployment of initiatives fordiversity and inclusion toward SG Holdings Group employees working
overseas.

vehicles in cooperation with various automobile manufacturers.

Director, SG Holdings Co., Ltd.

Hiroyuki Urushizaki

36

SG HOLDINGS GROUP CSR Report 2015

SG HOLDINGS GROUP CSR Report 201537

Building a Responsible Management
Foundation

Promotion of Stakeholder Management

Procurement, Business Promotion, etc.) to extract the issues that weresignificant to our Group, and prepared a tentative draft of the material

We believe that CSR for the SG Holdings Group consists of looking toward

CSR issues.

the development of a sustainable society, and of each employee putting

We then exchanged opinions with external experts (Hiroshi Ishida,

corporation which uses public roads to do business, and believe

the SG Holdings Group corporate philosophy of “Trust, Create, Challenge“

Executive Director, Caux Round Table - Japan; and Kaori Kuroda, Executivethat it is essential for us to enhance the foundation of our CSR

into practice with cooperation from stakeholders.

Director, CSO Network) on the validity of the draft. While the current

promotion.

Under this concept, we earnestly listen to the opinions from experts

initiatives received a certain degree of positive evaluation during the

To carry out responsible business activities, the SG Holdings

received through dialogues and the instructions of our customers, thenopinion exchanges, items for investigation such as the importance ofGroup is involved in initiatives to construct decision-making

investigate and implement policies in response to widely apply theunderstanding social issues in the regions of various countries were alsosystems, strengthen its corporate governance and internal

opinions of stakeholders to our businesses. Dialogues in particular haveidentified, with consideration given to forthcoming global deployment.

controls. We are also moving forward with stakeholder

been held on a continuing basis since fiscal 2004, with their 11th session

In November 2014, the material CSR issues, incorporating the opinions

management, in order to remain relevant as a business groupheld in fiscal 2014. They provide opportunities for opinion exchanges withreceived from external experts, were approved by the CSR Committee.

that society depends on, and to enable us to grow together

stakeholders from various standpoints regarding issues considered to be

Furthermore, in February 2015 a meeting was held with the responsible

with society in a sustainable manner.

important by the SG Holdings Group.

personnel from each department, and the progress of the material issues

We are deeply aware of our social responsibility as awas confirmed.

Processes for Identifying Material CSR Issues

Building a foundation for CSR promotion
Corporate Governance

Organization GovernanceIn fiscal 2014, the SG Holdings Group identified six material CSR issues.
To do this, we first applied ISO26000 as an important matter for

Overview of CSR Committee

stakeholders, organizing activities centered on its seven core subjects

Members

The SG Holdings Group strives to slim down our management structure

and issues, and closely examined their related issues.

· Committee Chairperson:	Chairperson and CEO, SG Holdings Co., Ltd.
Eiichi Kuriwada

After this, we conducted hearing sessions with responsible personnel· Committee Members: 	7 Directors and 2 Executive Officers of SG

from each department (Safety, Quality, Environment, Personnel,

and practice speedy management, as well as work to enhance governancethrough separating management audit functions and business affairs,

Mr. Hiroshi Ishida

Ms. Kaori Kuroda

Holdings Co., Ltd.

and to clarify authority and responsibility.

Record of meetings held in fiscal 2014

Since fiscal 2012, we have held a CSR committee meeting every quarter to·	Four meetings within the fiscal year (April 2014, August 2014,

carefully consider the content of material CSR activities to be carried out,

Compliance

November 2014, February 2015)

create management systems, and promote continuous improvement

Major discussion topics in fiscal 2014activities.

· Overall organization of CSR activities

Basic Internal Control Policy· Approval of material CSR issues

Organization GovernanceFair Business Practices

employees, their families, and business partners to report behavior in
violation of laws, company rules, or the Code of Ethics and Conduct.

·	Promotion and monitoring, such as of Group environmental
philosophy and policy establishment

We make sure that our internal controls function effectively, and evaluate

We will continue to promote initiatives as pillars supporting the internalthem to make necessary improvements. We also continuously review

controls of the entire Group.

our policies to keep up with changes in the management environment,

Corporate Governance Systemand strive to develop more effective internal controls. SG Holdings has

Stakeholders (clients, business partners, local community, shareholders, employees)

formulated a Basic Internal Control Policy.

Shareholder Meetings
Election, Dismissal

Reports, Discussions

Reports

SG Holdings GroupElection,
Dismissal

Election, Dismissal

SG Holdings Co., Ltd.

Cooperation

Legal Advisor

Auditing, etc.
Supervision

Business Affairs

Assignment

Representative Director
Approval

Reports

Internal Auditing Department

Reports

Policy, Planning, Deliberation
Assignment, Approval, Supervision, etc.

Information Investment Review Committee

Budget Committee

Cooperation

AuditsManagement Strategies Meetings

Management and Administration Enhancement Committee

Investment Review Committee

Cooperation

Risk Management Meetings
Administration Department Directors' Meetings

Departments / UnitsCSR Committee

Reports

Financial Auditor

Board of Auditors

Board of Directors

Cutting Relationships with Antisocial Forces

AuditsInternal controls for the Group are managed by the SG Holdings Internal

The basic policy of the SG Holdings Group is to cut any ties with antisocial

Controls Promotion Office, with the Internal Controls Promotion Section

forces in order to take a firm stance against such groups that endangerof the Group’s core business, Sagawa Express. Sagawa Express provides

the order or safety of civil society.

explanations of internal control-related documents to the heads of eachThis policy is found in our basic internal control policy and Corporate

branch office and each sales office, while also maintaining and evaluating

Charter of Business Conduct. The same policy is also defined in our Codeinternal controls for the Sagawa Express headquarters and each branchof Ethics and Conduct, so that all employees can understand it thoroughly.

office.

As specific examples of related activities, fact-finding surveys on business
partners (payment destinations) are conducted, and a Consultation

Strengthening the Compliance System

Window for Undue Requests has been established for early-stage
resolution of cases where employees receive inappropriate requests.

To deal with changing social and management environments, and to

We will continue to develop the system, thoroughly share information onbuild a corporate culture that performs business activities with integrity,

antisocial forces and our response, and prevent or block those who would

we are working to improve the maintenance and management of ourinterfere with our business partners and others.

compliance system, which abides by the SG Holdings Group Code ofManagement Guidance / Approval, Assignment of Important Issues

Agenda, Reports / Prior Consultation

Group Companies

Ethics and Conduct.
In fiscal 2014, the SG Holdings Group Compliance Hotline was establishedbased on the internal notification system, as a contact window for38

SG HOLDINGS GROUP CSR Report 2015

SG HOLDINGS GROUP CSR Report 2015

39

Risk management

Organization GovernanceRisk Management System Enhancement

are formulated and BCM (Business Continuity Management) systems areconstructed so that business can be continued in the event of a large-

BCM Initiatives

Dialogue with Stakeholders

Fulfilling our responsibilities as a designated public institution in case ofContinuing on from the large-scale disaster response training,

scale disaster. In fiscal 2014, advanced risk management was promoted

disaster by building strategic BCP and BCM

management systems to understand, evaluate, and manage risks in theby preparing risk management regulations and procedures, and risks

In October 2013, Sagawa Express was selected as a designated public
institution, as defined by the Disaster Countermeasure Basic Act. As a logistics

dialogues were also held with stakeholders. Before engaging inthese dialogues, presenters participated in actual training to sharebusiness operations of its Group companies.

were made more visible by establishing new risk management methods.

provider supporting infrastructure for the safety and lifestyles of people, we

event of large-scale disasters, which allowed them to hold

At Risk Management Meetings, systems are arranged to investigate andWe will continue to further build and enhance our risk management

are responsible for delivering emergency assistance goods over the Group’s

discussions with a greater sense of real situations.

logistics network.

The dialogue theme was “Aiming for BCP construction and BCM toreport risks in Group companies. Also, BCPs (Business Continuity Plans)

systems.

Even before this selection, our Group had begun re-evaluating its emergency

respond stakeholder demands.” The previous year’s dialogue wasmanagement system, prompted by the 2011 Great East Japan Earthquake.

based on the Great East Japan Earthquake and centered on
discussions about transportation of public emergency assistance

The SG Holdings Group is proceeding with the enhancement of risk

Since 2012 we have imagined disaster scenarios such as earthquakes directly
under the capital, abnormal climates, and large-scale disease outbreaks,

Risk Management System
SGH Group RM Meeting

Director in Charge of Management

Division with Jurisdiction over SGH Important Risks

RM Manager

Group RM Supervision Manager
RM/Compliance UTRM Manager

RM Supervision Manager(Executive Office)

SGH : SG Holdings
RM : Risk Management
UT : Unit

RM Manager

Head of Division with
Legal Jurisdiction

Division with Legal Jurisdiction

RM Manager

RM Supervision Manager

RM Supervision Manager

RM Supervision Manager

Division with Jurisdiction over Important Risks

Division with Jurisdiction over Important Risks

Division with Jurisdiction over Important Risks

RM Manager

RM Manager

Individual RM Meetings

RM Manager

RM Manager

RM Manager

RM Manager

RM Manager

RM Manager

RM Manager

RM Manager

RM Manager

RM Manager

RM Manager

RM Manager

RM Manager

RM Manager

Individual RM Meetings

Individual RM Meetings

through cooperation between corporations, that will be secured
even during disasters.”

We are also taking further steps to strengthen information security by

SG Holdings Group protects the intellectual property rights of our Groupto establish even more viable
delivery business continuity
management.

enhancing measures for information security resources and arranging

to maintain the health of our business activities, manage our intellectual

information security regulations and procedures.

property rights, and spread knowledge and awareness so that theConsumer Issues

Section) has obtained the international ISO27001:2014 information
security management system certification, in order to meet our

The SG Holdings Group considers the protection of our Group’s

customers’ needs and improve userfriendliness by providing services

information assets, including information assets received from customers,that require high levels of information security.

to be our social responsibility. We have therefore formulated Basic
Information Security Policies and are involved in initiatives to maintainand manage information security.

intellectual property rights of other parties are not infringed upon.

Information Security Training

Our initiatives for protecting the intellectual property of the Group
include acquiring rights for the intellectual property of each company in

The SG Holdings Group provides information security training to all of

the Group, and maintaining control of our intellectual property rights. We

its employees. With the goal of raising information security awareness,regularly confirm the intellectual property rights of other parties to avoid

measures for communication and education, such as reading throughintellectual property right infringement, and share this information with

the SG Holdings Group Security Handbook, are carried out at Group

relevant divisions and send out awareness messages.

companies, and these activities are also managed in the form of

We also spread knowledge and awareness of these activities throughout

educational records.

the entire Group. The SG Holdings Code of Ethics and Conduct includes
a basic intellectual property policy as one part of “Management of

Obtaining ISO27001

Corporate Property and Information.”
We will continue to appropriately manage intellectual property.

Sagawa Express (Sales Department, Sales Section and Reverse Solutions
SG HOLDINGS GROUP CSR Report 2015

goods, while this year the content extended to “Supply chains built

specifications for selecting alternate sites, ensuring fuel and power sources,
and strengthening the recovery functions of our systems and data in the eventof disasters, among other initiatives. We are also promoting strategic BCM that
includes carrying out training to enhance the practicality of those plans, andmaking improvements to our business operations for business continuity.
Even in ordinary times when no disasters occur, as a provider responsible
for social infrastructures directly connected to people's lives and a provider
deeply connected with supply chains in corporate activities, continuing
our business is a social mission for our Group. We will continue to consider
strategic cooperation and system construction with the national government,
local governments, and shipper companies, for initiatives to strengthen the
BCP and BCM throughout the Group.

Protection of Intellectual Property

Basic Information Security Policies

Organization Governanceimpressions of the roles and duties of logistics providers in theand have established highly viable BCP and BCM. Our BCP contains

Large-Scale Disaster Response Training
On November 20, 2014, we carried out Large-Scale Disaster Response Training
with the goal of identifying the most important issues for our Group in theevent of a large-scale disaster.
This training was implemented comprehensively together with administrative
organizations and shipper companies in order to more accurately simulate
the establishment of policies for delivery business continuity within 24 hoursof a disaster. Beginning with safety confirmation training and initial response
training, missions were arranged assuming cooperation with administrative
organizations and shipper companies. With the inclusion of our own
company, issues of procedures for responding to demands from these threesources were clarified.
We will continue to carry out
advanced training sessions

Information Security

40

Column 6

 Dialogue Participants• Kenji Watanabe, Professor, Graduate School of Engineering,
Nagoya Institute of Technology (Facilitator)• Eigo Nomura, Director, Distribution and Retail Industry Division and
Director, Logistics Policy Planning Office, Commerce, Distribution andIndustrial Safety Policy Group, Ministry of Economy, Trade and Industry• Kenta Sakamaki, Minister’s Director for Logistics Industries Affairs,
Ministry of Land, Infrastructure, Transport and Tourism• Noriko Takemoto, Education and Research Coordinator, Collegeof Business, Rikkyo University• Yoshiki Hiruma, Director, Enterprise Resilience Rated Loan
Program, Environmental Initiative & CSR-Support Department,
Development Bank of Japan Inc.
•	Hirokazu Mori, Resiliency Service General Manager, ITS Operation
Department, IBM Japan, Ltd.
•	Yoshihiko Watanabe, Director, Wellthy Corporation (Mitsubishi
Rayon Group)• Tsutomu Furumoto, Head of Business Continuity Management
Training Center, Fujitsu Ltd.
• Kiichi Suzuki, Managing Director, Sagawa Express Co., Ltd.
• Hiroyuki Uchida, Executive Officer, Head of General Affairs andGeneral Affairs Department General Manager, SG Holdings Co., Ltd.
*Company names, personnel titles, and other information are as of November 2014.

 Main Opinions• BCPs and other non-financial information are viewed as highly
important information by investors. Actively providing
information extending as far as BCM is rare even on a global basis.
• BCPs are often perceived from the viewpoint of protective measures,

Large-scale disaster response training

Reception of Best Practice Award and Special Award in the BCAO Awards
2014, at the Public Forum of the UN World Conference on Disaster Risk
Reduction
At the Public Forum of the 3rd UN World Conference on Disaster Risk Reduction,
held in March 2015 in Sendai City, Miyagi Prefecture, our Group became thefirst in the logistics industry to be awarded the Best Practice Award and Special
Award in the business continuity category of the BCAO Awards 2014, hosted
by the BCAO (Business Continuity Advancement Organization).
For the Best Practice Award, we were evaluated highly on points that included
the formulation of BCPs involving all companies under the jurisdiction of SG
Holdings, and their implementation as a part of management strategies; andthe fact that our training exceeded the bounds of just the Group, extending
into a range that included shipper companies, external corporations andorganizations, and even foreign countries. Our reception of the Special
Award was connected to high praise on the collection of opinions fromparties outside the company through stakeholder dialogue sessions withexperts, administrative personnel, and shipper companies, and the active
incorporation of those opinions into our BCM.

but overseas there is a tendency to perceive them as opportunities.
• Since not many companies in the logistics industry have built
BCPs, we would like the scope of these BCPs to be expanded
even further in the role as a top runner.
• If investigations are held in advance by both shippers and logistics
providers on what will be required in the event of a large-scaledisaster, it should be possible to create more effective measures.

Dialogue with Stakeholders

SG HOLDINGS GROUP CSR Report 201541

Foundation Activities
The SG Holdings Group has established incorporated foundations to contribute widely to the public good, and continues to conduct various activities todevelop local regions and support academics, culture, and next-generation education.

*For details, see individual websites (refer to individual URLs).

Sagawa Art Museum Public Interest Foundation

SGH Public Interest Foundation

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

http://www.sgh-foundation.or.jp/

In April 2015, the Sagawa Foreign Students’ Scholarship Foundation, the Sagawa Foundation for Promotion of Cancer Research, and the Sagawa
International Economic Cooperation Foundation, with the Sagawa Foreign Students’ Scholarship Foundation as the corporation remaining after themerger. At the same time, it changed its name to the “SGH Public Interest Foundation” and embarked on a new start. With the goal of contributing tomultifaceted and extensive social activities for the creation of a global and active society, it assists with research and business activities to promote anddevelop fields such as economics, industry, education, culture, medicine, and social welfare.

Foreign Student Scholarships

Promotion of Cancer Research

We provide scholarships to students from countries in Southeast Asia to

We are involved in activities such as offering support and awards to research on

attend Japanese universities.

basic cancer studies and applied treatments, holding cancer-related lectures

During fiscal 2014, 93 students from 78 universities all over the country

and publicly-open citizen courses, and publishing reports on research results.

applied, of which 16 applicants were selected as our 29th term scholarship

In fiscal 2014, 214 applications were received from research institutions

students.

nationwide, and we provided support to 15 of them. We also presented the

The Sagawa Art Museum exists to cultivate creativity and develop culture

permanent exhibitions of the works of Ikuo Hirayama, Churyo Sato, andAt a network event, 28th and 29th term scholarship students andSagawa Special Award and the Sagawa Nursing Care Special Award to people

in citizens through the holding public exhibitions of works of art andKichizaemon Raku. The Museum also promotes education throughgraduates experienced Japanese culture, art, and hospitality.

with distinguished achievements in cancer research and the development ofhandicrafts. The Museum also works to collect, store, and research works

events such as Sagawa Kids Museum (p. 34) and concerts, to cultivate

72 students from 63 universities all over the country applied in fiscal 2015,

nursing care, who also have high promise for future developments.

of art, as well as to promote activities to spread education with the goal

aesthetic sensibility that creates abundant senses of expression andof widely contributing to social creativity as a space for cultural

sensitivity.

exchange.

We will continue to further open the Museum as a place for cultural

The Museum also holds specially planned art exhibitions, focusing on

communication with regional communities.

with 16 scholarship students already selected.

26th Sagawa Cancer Research Support

15 projects (15 million yen)

12th Sagawa Special Award

2 awards (10 million yen)

12th Sagawa Nursing Care Special Award

2 awards (2 million yen)

Specially planned exhibitions
 Ultraman Century Exhibition
From the birth of Ultra Q to Ultraman 80
 Hokusai and Riviere: Two Series of “Thirty-Six Views” and Hokusai Manga Kichizaemon X – Shinbei’s Raku Ware and Kichizaemon’s Hagi Ware Art in Wonderland - Magical Museum: The Fantasy of Light and Shadow
Ngouv Hayliang, giving an expression of thanks 29th Scholarship Student Graduating Class

Public Lecture

26th Awards CeremonyAward Ceremony“Hokusai and Riviere” summer
exhibition for fiscal 2014

International Economic Cooperation

vehicles to developing and emerging countries in Asia, and accepting
trainees to study vehicle maintenance skills).
In fiscal 2014, we donated five used trucks to Laos. We also accepted six
trainees from China and five trainees from Laos for vehicle maintenance Art Appreciation Classes held in cooperation with the Moriyama
City (Shiga Prefecture) Board of Education
Participants: 933 (28 classes from 9 public elementary schools) Tea ceremonies (seiro and kanro tea ceremonies, roshu tea
ceremonies, special commemorative tea ceremonies, ryurei(seated) style tea serving)
Participants: 288
 Other activities to promote education: Commemorative lectures
for exhibitions (2 sessions); Twilight Concert (3 sessions); Welfare
Day (2 days)
Total number of participants: 2,114

We are engaged in supportive projects for transportation and logistics
that support economic and industrial activities (such as donating transport

Main educational activities
 Exhibition-related workshops, and the Sagawa Kids Museum forthe children who will be our next generation
Participants: 705

Results of accepting trainees for vehicle maintenance skill training

Children enjoying their finished(cumulative total from 1987 to 2014)

creations in the “Let’s Make a
Pinhole Cinema” workshop

China, Laos: total of 193 trainees
Results of donating repaired used trucks(cumulative total from 1985 to 2014)
China, Mongolia, Laos, Peru, etc: total of 3,321 vehicles

Events Christmas Festaskill training.
In fiscal 2015, we plan to continue to develop the Logistics Human
Resources Cultivation Project in Southeast Asian countries introduced as atest project commissioned by the Ministry of Land, Infrastructure, Transport
and Tourism in fiscal 2014. We also will investigate and discuss donating

Special commemorative tea

vehicles to Myanmar, and accepting trainees from Myanmar to learn

ceremony for the exhibition“Kichizaemon X – Shinbei’s

vehicle maintenance skills.

Raku Ware and Kichizaemon’s
Twilight Concert
Ceremony for donation of vehicles in Laos42

SG HOLDINGS GROUP CSR Report 2015

Hagi Ware”

Vehicle maintenance skill training in Thailand

SG HOLDINGS GROUP CSR Report 2015

43

EXPOLANKA HOLDINGS PLC

Overseas Group Business and CSR Activities

Promoting forwarding business,
Expolanka joins the SG Holdings GroupSri Lanka's first"Carbon Neutral certification" acquired company(;32/$1.$+2/',1*63/&—Activities of a leading company in CSR that focus on social &water-saving consciousness among residents in the area surrounding Seethawaka
facing the Kelani River.
* Every Drop Matters means "Each and every single drop is important to us."Expolanka Freight Ltd (EFL), which is a core company of Expolanka Group,
received Carbon Neutral recertification in FY2014. Since becoming thefirst freight & logistics company to acquire certification in Sri Lanka in theenvironmental contribution

previous year, the company has become an industry leader in contributing

In May 2014, Sri Lanka’s largest freight forwarder (international carrier) Expolanka*1 became a new addition to the SG Holdings Group by way of an aquisition With

Achieving Carbon Neutral status is one of the logistic company group’s

its hubs mainly in South Asia, the Middle East, Africa, the USA, and also a sizable presence in Europe, Expolanka is a leading company in CSR for actively promoting

main sustainability targets.

‘Sustainable development of society’ and ‘Environmental management’.

Expolanka aims to continue

to reducing the carbon footprint.

Through synergy with the company, from a logistics standpoint, SG Holdings Group are strongly underpinning advancement into our customer’s international markets
and expansion of overseas business, particularly in developing operations in South Asia and African countries that are earmarked for future high economic growth.

Freight forwarder with a HQ in Colombo City.

Trade name

Expolanka Holdings PLC

Expolanka has offices in 45 cities in 18 countries around the world

Description of business

Freight & Logistics business, travel & leisure international trading & manufacturing,

http://www.expolanka.com/home/being a model company
within Sri Lanka in business

In March 2014, the third Venture Engine event, a startup business support
program, was held in Colombo. Over 100 plans were received and finallyconsciousness.

narrowed down to 14 plans were the startup entrepreneurs presented to ainvestment & services sectors

and offer air transportation of apparel in the core territories frompanel of angel investors from Sri Lanka and India.

Africa in the West to America in the East, and also has a strong

Year of establishment

1978

agency network in Europe. In South Asia, it is included in the top

Location

Colombo, Sri Lanka

10 of the International Air Transport Association (IATA) Ranking. In

Representative

Chairman of The Board : Nobuaki Kondo

Carbon Neutral certificate

Executive Director and CEO : Hanif Yusoof

addition to its core freight & logistics business, Expolanka also plays

EDM ceremony

Participating in startup businesssupport programs

activities and environmental*1 : Expolanka

Financial support to EDM projects

a role in travel & leisure, unternational trading & manufacturing, andNumber of employees

Consolidated: 2,965 people

investment & services sectors.

Consolidated net sales

54,379 billion LKR (approx. 43 billion yen)*2*2 : Information listed in March 2013
financial results
Calculated by 1LKR = 0.79JPY

To protect biodiversity
Participation in tree planting activities forWorld Environment Day

The most potential 3 were chosen and given trophies and cash prices at the
finale. However, almost all of the final 14 received funding to transform theirplans into actual businesses.
Although Expolanka Group has since grown to become Sri Lanka’s leadingbusiness group, in the 1970s it started from a single business premises. This

Sri Lanka is globally renowned for its rich biodiversity.

entrepreneur spirit is inherent in

However, due to destruction to forests caused by deforestation and use of

its corporate DNA, giving strong

Expolanka Group’s CSR Vision prescribes ‘to be a leader in enhancing

pesticides, currently only 4% of the country's land area is covered by rain forest.

support as a leading sponsor of

integrity, reliability and ethical business practices. Our vision for thethe long term sustainability of the communities it serves; our CSR

Expolanka Group participated in 'World Environment Day 2014'. Between Sinharaja

the Venture Engine programme.

future is entrenched in sustainability. Our CSR vision pledges ‘to bepractices will be integrated throughout our business operations

and Kaneriya, where the damage to the rain forest is significant, Expolanka hasThis event, in the past three years

a leader in enhancing long term sustainability of not only within our

and will deliver social, economic and environmental benefits to ourestablished a corridor ofhas raised funding of over 500

business but also within the communities we function in.

employees, communities and other stakeholders, while delivering a

biodiversity by planting

million LKR.

As such, the Group’s corporate strategy is fused with its sustainability

business advantage to our organization.’more than 1,000 trees. In

strategy creating a scenario where all corporate objectives are

We have nominated the five important areas of ‘Environment, Health,addition,

directly aligned to sustainability objectives. In a nutshell, theEducation, Community Development and Disaster Relief’ as the pillar

activities, the Group also

intent therefore is to create a multiplier effect of positive, broadlyof our CSR activities.

implemented a project that

Top Message

CSR Vision

From inception, Expolanka’s corporate philosophy was built on

throughsuch

Offering affordable health care
to people with lower income

will contribute to improving

contributing sustainable outcomes
Environmentthat will shape society, economy andthe environment.
Community
Development

5 Pillar
CSR Activities

HealthWinner “Intellocut”, of the Venture Engine
programme receiving his award

the lives of the people in the

Expo Medix is a health clinic run by Expolanka Group. This is for people intraditional inhabited areas

the lower income bracket, who are generally unable to receive expensiveof the surrounding area.

private health care from medical organizations or adequate emergency
Participating in tree-planting activities in Hiniduma (Sri Lanka)

medical treatment. Presently, we have opened clinics in eight locations
within Colombo and suburbs where each month over 5,000 people

Education
Executive Director and CEO

Hanif Yusoof

Disaster Relief

To conserve water resources
Sponsoring the World Water Day project

receive consultation. Giving precedence to our local communities in all of
our activities is rooted in our Group’s business culture.

Expolanka Group, by cooperating with the United Nations Development Program(UNDP) and Sri Lanka’s Ministry of the Environment and Renewable Energy, has shown
renewed commitment to protecting the environment and, in particular, conserving
water resources through financially supporting the ‘Every Drop Matters (EDM)’ project.
The project was launched on World Water Day on March 22 and is intended to raise
Medical care at Expo Medix

44

SG HOLDINGS GROUP CSR Report 2015

SG HOLDINGS GROUP CSR Report 201545

Global Group Company Business and CSR Activities

Other Major Initiatives by International Group Companies
The SG Holdings Group continues to increase convenience for our stakeholders and solve social issues through our international businesses
and services.

SG Holdings Group Third Party Opinions
Regarding “CSR Report 2015”

SG Holdings Global
SG Sagawa (Thailand)

Sagawa Express Singapore and SG Holdings Global
Participation in Charity Marathon

Group has enacted new environmental philosophies and policies (p. 24).

Sagawa Express Vietnam

Positively-rated Aspects

Two teams from Sagawa Express Singapore and SG Holdings Global

In continuation from last year, I believe this is a good CSR report thatIn the past, this Group has actively engaged in environment-related

Commission for Investigation by the Ministry of Land,

participated jointly in the long-distance relay category of the Standard

reflects the innovative corporate stance taken by the SG Holdings Group,

initiatives based on its business characteristics, being one of the first in

Infrastructure, Transport and Tourism

Chartered Marathon Singapore 2014, a marathon event held in Singapore

shown by their corporate philosophy of “Trust, Create, Challenge”. As

the logistics industry to publicly announce the amounts of its CO2

SG Holdings has received a commission for the Project to Investigate the Feasibility

in December 2014. At that time,stated in the introductory message, the business environment

emissions throughout its supply chain, and taking the lead in introducingof and Issues Related to Cross-Border Express Delivery Transportation in the

donations totaling S$1,220 were madesurrounding the SG Holdings Group has been changing greatly in recent

low-emission vehicles. I would like to evaluate the Group very highly for

Mekong Region*, by the Ministry of Land, Infrastructure, Transport and Tourism.

to the Make-A-Wish Foundation, an

years. It can be fully understood from reading this report how much thispromoting business activities with the goal of harmonious existence with

With cooperation from the international Group companies SG Holdings Global,

organization which carries out activities

Group is attempting to achieve its management vision of “Creating new

the environment.

SG Sagawa (Thailand) (former company name: Sagawa Express Thai Container

to give children facing serious illnesses

value by utilizing management resources and deepening cooperation

Distribution Service), and Sagawa Express Vietnam, a cross-border express delivery

the hope, strength, and joy needed totransportation test (using 2 routes, northern and southern) was conducted in thissurvive.

Long-distance relay participants

region in March 2015. This transportation test was the first initiative involving

Shanghai Dazhong Sagawa Logistics Co., Ltd.

inside and outside of the Group, while aiming to strengthen our

Future Requests

management foundation and achieve lasting growth,” even as the

The SG Holdings Group established its Business Partner CSR Guidelines indomestic and overseas social environments are approaching a period of

fiscal 2014. With concern for ensuring human rights and protecting thetransition. The report includes information on the work situations ofenvironment growing across the world, enacting guidelines such as

into a single container, and through the test the issues involving transportation

Certification as a Credible Enterprise Corporationindividual stakeholders and many honest opinions from on-sitethese show this Group’s high awareness of governance. I look forward toin this region were clarified. We will continue to investigate the improvement

In October 2014, Shanghai Dazhong Sagawa Logistics Co., Ltd. was certified

personnel, and really shows the character of the Group.

the promotion of suitable supply chain CSR measures in accordance withof transportation services while coordinating within our Group, to resolve theseas a “credible enterprise” corporation by the Committee for Shanghai

issues and to realize cross-border express delivery transportation in this region.

Credible Enterprise Campaign and the Shanghai Transportation Association.

Fiscal 2014 marked the second year of the mid-term management planThis is a certification presented to corporations recommended by thecalled the Third Stage Plan. With regards to the three topics of “PursuingShanghai

Bureau,Group synergy,” “Expanding global businesses,” and “Reforming businessLooking toward the domestic business environment, the problem of a

who have built an honest and sincere

models,” new measures such as the inauguration of the strategic sales

lack of vehicle drivers is evident and will only become more serious inmarket environment that strictly

development team “GOAL” (p. 21), Group inclusion of the largest freightthe future. Along with arranging further improvements in productivity

follows ethical business practices. This

forwarder in Sri Lanka, EXPOLANKA HOLDINGS PLC (p. 11, 44, 45), theover medium and long distances, and preparing environments that arecompany is the only Japan-affiliatedlaunch of Smart Delivery (p. 22), and facility management solutions (p.

easy to work in by deepening the understanding of diversity (activities oflogistics company to have received it.

13), are being started. I would also like to commend the Group on fully

women and the elderly) over the “last-mile,” reforms to the current

applying the strengths possessed by large-scale logistics centers andbusiness models are likely to also be required. I would like for the SG

proceeding steadily with CSR that takes great consideration for the needs

Holdings Group to proceed with CSR activities through their mainof society and people, such as by utilizing logistics to contribute tobusinesses, by continuing to provide services reliably and at suitable

activities for creating cities with great appeal.

costs, with no disruptions to the logistics operations that are part of

mixed loading of commercial-purpose cargo and small lots of cargo for individuals*Mekong region: Vietnam, Cambodia, Thailand, Laos, Myanmar

Transportation

Credible Enterprise Certificate

Sagawa Express Vietnam
Support for Joint Japan-Vietnam Movie

these guidelines together with stakeholders in individual countries as itsociety’s infrastructure.

Sagawa Express Vietnam gave its support to the first joint Japan-Vietnam

Northern route
Southern route

Express delivery in Ho Chi Minh (Vietnam)

proceeds with global deployment.

movie, “Blown by the Vietnam Wind,” produced in commemoration ofCompared to the previous version of this report, the greatest

the 40th anniversary of the founding of the country of Vietnam. As part ofadvancement I can see is the identification of the six material CSR

the cultural exchange between both countries in the production of thisissues based on ISO26000, and the setting of activity themes, mid-movie, a subsidy was received from the Japan Agency for Cultural Affairs.

term goals, and action plans for each material issue (p. 16, 17). SettingThis cooperative effort was made possible by the friendly relationships

such items are essential in enhancing the viability of this Group’s CSR,

built by the SG Holdings Group with Vietnam since its entry into thefrom the standpoints of both developing a sustainable society andcountry, ahead of the rest of the industry. In the movie, boxes showing

achieving sustainable business growth. I believe we can look forward

our Group logo are used in scenes depicting goods transported during

to even more in-depth CSR activities through elaboration of the mid-moving or express deliveries from Japan.

term goals and action plans, and application of the PDCA cycle.

Cleanup Activity

From the environmental perspective, this fiscal year the SG Holdings

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

Mika Takaoka

Sagawa Express Vietnam regularly
engages in cleanup activities of
the areas around its offices, to exist
Container reloading workat the Cambodia-Vietnam

in harmony with the local region.

Cleaning up the area around an officeborder46

SG HOLDINGS GROUP CSR Report 2015

SG HOLDINGS GROUP CSR Report 201547