SG Holdings Group

SDGs Communication Book 2022
Special Decarbonization Issue

68 Kamitobatsunoda-cho, Minami-ku,
Kyoto-shi, Kyoto, 601-8104 Japan
TEL : +81 (0)75-671-8600

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

Title

SDGs Communication Book 2022

Publication date

October 2022

SDGs COMMUNICATION BOOK 2022

Smoothing Out Today,
for a Smarter Tomorrow

SDGs and Decarbonization
The theme for this year’s SDGs2030 to create a society in which people

factor in preventing climate change. The

Communication Book is decarbonization.

can live happily into the future. The 17

increase in CO₂ and other greenhouse

Le t u s b e g i n , h o w e v e r, w i t h a b ri e fgoals cover an array of themes includinggases in the atmosphere is a major cause

explanation of the SDGs. The SDGs arehealth, gender equalit y, pover t y andof global warming.

a collection of shared global goals thatpeace. One of the 17 goals is Climate

describes any activities that prevent thevarious countries and corporations are

Action. Climate change refers to the heavy

increase of greenhouse gases.

currently working to achieve. At the UN

rains, heat waves, sea level rises and

SG Holdings Group, as the use of trucks

Summit of 2015, 193 countries and regions

other natural phenomena that occur as

and other vehicles that emit CO₂ is key toagreed to adopt these goals. Under thea result of the increase in average global

our business, the reduction of greenhouse

central promise to leave no one behind,temperature.

gases is a major challenge and a core

the goals are to be achieved by the year

we can contain global warming is a key

And so, to what extent

D ecarbonization
At theresponsibility.

My name is Tsuji! My name is Ono!
We will be your guides
through this book.
Throughout this SDGs Communication Book,
we will introduce the various decarbonization
initiatives of the SG Holdings Group.

◀ Mr. Tsuji

Ms. Ono ▶

A highly experienced
Sales Driver. With anincrease in inquiries from
custo mers ab out theGroup’
s environmental
initiatives, he has
recently been learning
m o re ab o u t cl imatechange.

Involved in theformulation of theGroup’
s sustainability
strategies. M s. Onosays her son is al so
passionately learning
about decarbonization.

Today,CONTENTS

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

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

And by using the power of our comprehensive logistics solutions tocreate new value, we hope to build a smarter tomorrow.

The SG Holdings Group will continue contributing to society through its business,

Introduction… ……………………………………………… 1-2

Reduction of CO₂ Emissions from Our Vehicles… 11-12

The World Is Tackling Decarbonization

Initiatives with IKEA……………………………………… 13-14— What Is It?………………………………………………… 3 -4

Initiatives with Japan Freight Railway Company

The Relationships Between Society,and Tokyo Kyusyu Ferry… …………………………… 15-16

Logistics and the Environment… ……………………… 5-6

Environmentally Friendly Facility Creation… …… 17-18

Our Decarbonization Initiatives………………………… 7-8

Forest Protection Initiatives…………………………… 19-20

Decarbonization Vision……………………………………9-10

Other Activities…………………………………………… 21-22

working toward a future in which people connect,
and smiles bring them together.

1*Sales Driver ® and X FRONTIER ® are registered trademarks of the SG Holdings Group. Trademark notation has been omitted in this book.

2

SDGs COMMUNICATION BOOK 2022

For a Smarter Tomorrow
The Keyword Is Decarbonization

Countries and Regions Are Working on
Decarbonization Together
Emissions of CO₂, which is one of the

To prevent global warming, international

gaining momentum.

greenhouse gases that causes climate

discussions have been underway since theincluding Japan, 125 countries and one

change, have continued to increase at

second half of the 20th century. At theregion have declared their commitment*

an astonishing pace since the Industrial

21st United Nations Climate Change

to achieving carbon neutrality by 2050

Revolution of the 18th century. Global

Conference (COP21) held in 2015, a

to limit global warming to 1.5 degrees

temperatures have risen gradually as

new set of international rules on climate

Celsius.

a result, and it is said that the averagechange, the Paris Agreement, was adopted.

global temperature between 2011 andThrough this agreement, countries and2020 was around 1.1℃ higher comparedregions everywhere have agreed to work

to before the Industrial Revolution.

If

together to“limit global warming to wellglobal warming continues at this rate,

below 2, preferably to 1.5 degrees Celsius,

climate change will cause sea levels tocompared to pre-industrial levels.”As arise and bring about changes in natural

result of the Paris Agreement, countries

ecosystems. Among others, this in turnhave been working to achieve net zero

will lead to an increase in hunger andemissions of greenhouse gases including

i nfect i o us d i s eas es , caus i ng s er i o us

CO₂ to achieve carbon neutrality, andimplications for the world as a whole.

decarbonization initiatives have been

【 Changes in Average Global Temperature 】℃

As of April 2021,

Elsewhere, companies are also being
called upon to engage in decarbonization

2.0

initiatives. At the SG Holdings Group, weObserved values

1.5

have announced our target to achieve a

Estimated values from only natural changes

1.0

46% reduction in CO₂ emissions by 2030
(compared to FY2013), and to achieve net

0.5

zero emissions by 2050. We are therefore
constantly engaging in the development

0.0

and provision of businesses and services-0.5with even lower CO₂ emissions, and are
striving to help achieve a sustainable

1850

1900

1950

2000 2020（Year）

Source : Working Group I Report, IPCC Sixth Assessment Reportsociety where everyone can live in safety
and with peace of mind.

The Key Is to Reduce Emissions and Increase
Absorption
While it is important to cut emissions of CO₂ and other greenhousegases to zero, for modern-day society, this is extremely difficult to

Global warming and the ensuing climate change

have a serious impact on ecosystems and people’s lives.
To create a sustainable society in which people can livein safety and with peace of mind,

global-scale decarbonization initiatives are underway to ensure
the continued reduction of CO₂ emissions.

achieve.  This is why the“net zero”approach is key.  By absorbing
the emissions that cannot be completely cut out through othermeans, it is possible to reach net zero emissions.   For example,
we can increase tree-planting activities to increase the number oftrees that absorb CO₂ through photosynthesis, and protect forest
environments to make it easier for the trees to grow.   In this way,at the same time as reducing emissions, it is important to reinforce
efforts to absorb CO₂.

*Global Decarbonization Trends, Agency for Natural Resources and Energy

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SDGs COMMUNICATION BOOK 2022

Learning About the Past fora Better Tomorrow Society,
Logistics and Carbon Dioxide
Logistics is a key part of social infrastructure that supports
people’s lifestyles and upholds the economy.
Here we introduce its past, its present,

and its relationship with the global environment.

Society and Logistics
Have Developed Alongside One AnotherL o g i s t i c sof logistics functions was essential. Andrefers to theso, the public and private sectors worked

were beginning to grow in popularity indi s t rib u t i o n o f

in tandem to streamline and optimize

line with road improvements, there wereno established services that could quickly

transportation was by rail. While vehicles

goods. In Japan,

logistics processes, including transport,

logistics systems

storage, freight handling and distribution

and accurately deliver small quantities ofunderwent hugeprocessing.

At the same time, thepackages from door to door. In response,development

importance of logistics as a form of social

at the SG Holdings Group we used trucks

duringtheinfrastructure that linked production andand other means to build a system that

period of rapid

consumption grew significantly. It was atformed the basis of today’s expresse c o n o m i cthe dawn of this logistics era in Japan thatpackage delivery services. Through our

growth between

the SG Holdings Group was founded asservices, we used logistics to achieve more

the 1950s and 1960s. As the economy

a courier business connecting Kyoto andcomfortable lifestyles.

developed, Japan entered an era of mass

Osaka. However, the main goods to be

pouring our efforts into the creation of a

production and mass consumption.

Today, we areTotransported at the time were raw materials

sustainable logistics network to promote aensure the smooth distribution of thissuch as coal and large cargo direct

decarbonized society.

large volume of goods, the reinforcementfrom factories, and the central means ofBalancing the Environment and Logistics — Is It Possible?
In line with the growth of e-commerce

logistics industry, the reduction of vehicle

and a decrease in opportunities foremissions is a major issue.

people to go out, in recent years, logistics

Holdings Group, as demonstrated by being

has become more important than ever

one of the earliest to adopt environmentally

At the SG

before. At the same time, the Japanese

friendly vehicles such as natural gas trucks

government has declared its intention toin the 1990s, and also through the use

achieve carbon neutrality by 2050, andof rail and maritime transport, methods

the focus of society as a whole has takenthat are said to generate less CO₂ thana major turn toward decarbonization. On

vehicles, we have sought to reduce ourthe other hand, the transport sector—

CO₂ emissions during transport.

which includes private vehicles, trucks andcompany offering logistics infrastructure,

As aothers—accounts for approximately 20% of

we believe it is our duty to balance both

Japan’
s total CO₂ emissions, and so for the

eco-friendliness and enhanced service.

【 CO2 Emissions by Industry 】

Transport
sector(incl. private vehicles)

185 million tons
（17.7％）

Source: CO₂ Emissions in the Transport Sector, Ministry of Land, Infrastructure, Transport and Tourism (Figures are from FY2020; 1,044 million tons in total)

Reducing CO₂ Emissions in the Logistics
Industry Today

Although in recent years the CO₂ emissions from trucks and othercargo vehicles have been on a decreasing trend, it is still notenough.  Moving forward, in addition to initiatives to reduce vehicle
emissions, we will proactively move forward with a modal shift totransport methods that have lower environmental impact, such as
trains and ships.

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SDGs COMMUNICATION BOOK 2022

A Smoother Today Anytime,
Anywhere
The SG Holdings Group is predominantly
involved in the logistics business.

In addition to achieving a smoother, more
efficient society,we will also tackle decarbonization.

Transfer centers

Forests

By bringing together packages from each region andWe own approximately 800 hectares of forest in theensuring more efficient delivery, we are reducing

Kochi and Tokushima prefectures.

the number of trucks used. In 2021, we opened X

protecting these forests, which function as carbon

FRONTIER, a next-generation large-scale logistics

sinks, we sell the timber we create and utilize it incenter, in Koto-ku, Tokyo.

our facilities.

Urban areas

Real estate

We have set up Service

Centers nationwide for

Through distribution facilities that use solar powercollection and delivery

operations using carts

ge n e rati o n fa cil iti es , a n d e m p loye e resi d e ntial

and bicycles, reducing

the use of around 1,500

facilities that use timber from our forests, we are

We are promoting sea-top transport, which is thoughtvehicles as a result. We

will also promote gentle

engaged in enviro nmentally friendly real estate

to generate less CO₂ emissions than trucks. This isacceleration and eco-friendly driving whendevelopment and management.

also helping to improve working environments forusing vehicles, andpromote more efficient

truck drivers.

fuel consumption.

Maritime transport

In addition toRail transport
For long-haul transportation, we are making
use of rail-based transport, which has a lower
environmental impact than truck transport. This is
helping to significantly reduce our CO₂ emissions
during transport.

Offices
We have built facility logistics systems for the
integrated management of packages and vehicles
that enter and exit large-scale commercial facilities.
Through smooth management, we will lessen
congestion on surrounding roads and in turn reduce
CO₂ emissions.

We Are Not Only Involved in Logistics
In addition to logistics, we offer an array of services
throughout towns and cities, including temporary staffing,message delivery services, IT system development andm a n a g e m e n t , a n d o f f i c e r e l o c a t i o n s u p p o r t .    A s s u c h ,it is only natural that we have a strong duty to achieve
decarbonization.

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SDGs COMMUNICATION BOOK 2022

We Have Identified Three Key
Themes for Decarbonization Vehicles,
Facilities and Supply Chains

SG Holdings Group Decarbonization Vision
At the SG Holdings Group,
we will work with ourThrough the transport of goods, logistics helps to link people and support society.
Reducing CO₂ emissions in everyday work is essential toinitiatives to achieve a
decarbonized society.

achieving decarbonization.

1

stakeholders on various

At the SG Holdings Group, we will

1 Reduction of greenhouse gas emissions from vehicles
2 Use of electricity derived from renewable energy
3 Reduction of emissions throughout the supply chain

1 Reduction of greenhouse gas emissions from vehicles

strive to reduce the CO₂ emissions
from the approximately 27,000 trucks
that we use.

At the SG Holdings Group, we are aiming

by building efficient logistics systems,

for a 46% reduction in CO₂ emissions by

and working to reduce CO₂ emissions

2030 (compared to FY2013), and carbon

throughout our delivery infrastructure.

neutrality by 2050. As such, reducing

We are al so proactively promoting a

the greenhouse gases generated frommo dal shif t to more environmentally

our transport and delivery of packages

friendly means of transport, such as railis paramount. In addition to introducing

and maritime transport instead of trucks.

Illustration of【 CO emissions
reduction 】
2CO2 equivalent emissions（ 1,000 t -CO2 ）

428

46%

reduction
394
231

vehicles with low environmental impact
such as EVs and hybrid trucks, we are

３

2013

reducing the number of trucks we use【 Reference year 】

2020

2030

0

2050（Year）*Scope 1 and 2 emissions

2

2 Use of electricity derived from renewable energy
At the SG Holdings Group, we have set

have achieved net-zero CO₂ emissions

up solar panels at around 100 of ourthrough the use of electricity generated

facilities nationwide, using and supplying

from on-site solar panels and thethe renewable energy generated frompurchase of renewable energy.

them.

At the Group’s large-scale

distribution facilities SG Realty Wako
(Saitama Prefecture) and SG Realty
Higashiosaka (Osaka Prefecture), we
SG Realty Wako

At some of our Group facilities, weare using elec tricit y from CO₂ -free
renewable energ y sources such as
solar power and wind power.

To achieve decarbonization, in addition
to in- Group initiatives, we will also
work with our stakeholders to reduce
CO₂ emissions throughout the supply
chain.

9

3 Reduction of emissions throughout the supply chain
At the SG Holdings Group, our corporate

the supply chain.

activities are supported by fuel and material

accelerating the development of transport

suppliers, logistics partner companies andand delivery services and businesses withother business partners, and the many

lower CO₂ emissions, and in turn we will

customers who entrust their packages tostrive to create new value for society andus. To achieve a decarbonized society,our customers.

Specifically, we are

we are working with our stakeholders to
reduce greenhouse gas emissions across10

SDGs COMMUNICATION BOOK 2022

Vehicle-based Transport andDelivery for Smooth Logistics Starting with
the Decarbonization of Vehicles
Approximately 50%*1 of transportation of freight in Japan is undertaken by trucks.
Vehicles are essential to delivering cargo safely and accurately toevery corner of Japan, and this is why decarbonization initiatives forvehicles are paramount.

Looking at the Decarbonization of Vehicles
At the SG Holdings Group, we focused

impact. In addition to the decarbonizationin each direction between Tokyo andon the use of eco-friendly vehicles andof vehicles themselves, we are also

Osaka. The trains can carry the equivalent

the development of environmentallyworking to reduce our use of vehicles.

of 56 ten-ton trucks, and help to reduce

friendly means of transport from an early

Instead of having individual trucks

annual CO₂ emissions by 14,700 tons.

stage. We began using natural gas trucks

separately transport packages from each

We are also moving forward with ship-in 1997, which are said to generatesales office to different destinations, webased transport.

low emissions of air pollutants such as

have set up transfer centers where multiple

Kyusyu Ferry, since 2021 we have moved

carbon dioxide and nitrogen oxide. We

packages are first brought together in asome of our long-distance truck transportalso moved forward with the adoption

single location before being sent out in

operations between the Kanto and Kyusyu

of hybrid trucks and clean diesel vehicles

bulk to their destination. This process

off land, making use of maritime transportcompliant with exhaust gas regulations.

helps to reduce the number of times thatbetween Yokosuka and Shinmoji.

Moreover, since 2019 we have been

vehicles are used (see diagram below).

Compared to before this switch, this has

testing the use of EV trucks that emit zero

We are also promoting a modal shift toenabled us to cut CO₂ emissions by 48%.

air pollutants.

different means of transport, including

As a result of these and other measures,

As of March 31, 2022, the SG Holdings

use of trains and ships, both of which

the CO₂ emissions from the SG HoldingsGroup owns 15,956 environmentally

generate less CO₂ than truck transport. In

Group’
s business activities is consistently

friendly vehicles, which account for

2004, Sagawa Express worked with Japandecreasing.

approximately 59%*1 of its fleet. Moving

Freight Railway Company to develop

Compared to FY2013, in FY2020 we

forward, we plan to continue proactively

Super Rail Cargo express railway container

successfully reduced emissions byadopting vehicles with low environmentalcars.

approximately 8%.

One freight train is in operation

Working with Tokyo*2*1 : Number and percentage of domestic vehicles owned by Sagawa Express, SG Moving and World Supply*2 : Scope 1 and 2 emissions

Trucks Are Essential to Japanese Logistics
In the short-distance (100 km or under) transport of cargo,
for which logistics needs are particularly high, truck-basedtransport accounts for more than 90%*2 of the total. When cargo
is transported by ship or train, it is trucks that transport the
packages from the terminal to the sales office in town, and thento the customers.

What We Are Doing Now
As we work to achieve the government’s

59% in FY2021 to 98% by FY2030.

goal of carbon neutrality by 2050, we

In introducing these environmentally

have begun development of an EV

friendly vehicles, we will aim to reduce

specialized for delivery operations.

the CO₂ emissions from our vehicles.

Sagawa Express has put together a plan
to increase its ratio of EVs and otherenvironmentally friendly vehicles* from＊Natural gas trucks, hybrid vehicles, EVs and clean diesel vehicles(vehicles compliant with 2010 and 2016 exhaust gas regulations)11*1 : Based on ton-kilometers, which is the weight of the cargo transported times the
distance transported.  Trends in Transported Volume of Cargo by Transportation
Method, Ministry of Land, Infrastructure, Transport and Tourism*2 : Conditions Surrounding Logistics in Japan, Ministry of Land, Infrastructure, Transport
and Tourism

Sagawa Express’light EV (under development)

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SDGs COMMUNICATION BOOK 2022

We Even Help with
Smart Furniture Delivery

Making Delivery Services Sustainablewith EV Trucks

Using the transport and delivery expertiser e f e r s t o c u s t o m e r s ’t r a v e l t o I K E A
stores. Together, these two accountwe have built up over many years,

for approximately 9.5% of value chain

we are helping to reduce CO₂ emissions foremissions.*2 SG Moving is offering support
for the delivery side of the operation.

various corporations in their procurement of

Hirayama says, “Currently, *3 4% of all

raw materials and transport anddeliveries are made using EVs, but wedelivery of products.

hope to grow this to 25% by the springof 2023.”Shintaro Kitamura, Sales
Department Manager at SG Moving, hasgreat expectations for this joint initiative—“This work with IKEA Japan will help toimprove understanding of environmental
issues both in-house and among ourLeft : Shintaro Kimura, Manager, Setting Section, Sales Department, SG Moving Co., Ltd.
Right : Eri Hirayama, Country Sustainability Manager, IKEA Japan Co., Ltd.

Global furniture retailer IKEA has set

Hirayama, Country Sustainability Manager“People & Planet Positive” as its

at IKEA Japan.

sustainability strategy.

One area the

According to Hirayama, one target thatcompany is promoting is climate change

IKEA is working toward is the provision ofcountermeasures. To ensure sustainable

zero GHG emission delivery services in all

consumption, IKEA is engaged in aregions by 2025.

wide range of initiatives for 2030 in“To become carbon neutral, it’s essential

each country, including those related toto reduce CO₂ emissions across thedecarbonization.

value chain.*1 At IKEA Japan, in 2018 we

In full support of IKEA’s initiatives, in

successfully switched all of the electricity

2020, SG Moving worked with IKEA

we use within the group to that derived

Japan to adopt use of two EV trucks.

from renewable energy, and our next step

As a company famous for its proactive

is to reduce emissions from delivery andenvironmental protection activities, what

travel.”expectations does IKEA have for these EV

Here, delivery refers to the delivery oftrucks? In this section we hear from Eri

products to customers, while travel

partner companies.”
Hirayama also adds a word of warning,saying,“Although many companies areworking on decarbonization initiatives,
GHG emissions continue to increase.”Shegoes on,“As a Swedish company with anabundance of expertise on environmental
issues, as well as an eco-friendly mindset,
we will work with various companies toachieve decarbonization, just as we aredoing with SG Moving, and fulfil our role*4
in creating better ecosystems.”*1 : Value chain: The full chain of a business’value-creating activities, including the procurement of materials for products or services, manufacturing,sales, distribution, use and recycling*2 : Figures for the Ingka Group, IKEA’s parent company, as of 2020
*3 : As of July 2022
*4 : Ecosystems: Systems in which multiple companies and groups form business partnerships and aim for mutual success and prosperity

Major Ripple Effects of Inter-company Initiatives
The Paris Agreement aims to contain the rise in average temperature

IKEA Japan and SG Moving’s Initiatives“to well below 2, preferably to 1.5 degrees Celsius, compared topre-industrial levels.” However, unless countries and companies
work together, this target will be incredibly difficult to achieve.  
Inter-company initiatives must be spread to the stakeholders of each

SG Moving is using EV trucks for delivery

These vehicles can be charged in as little

operations especially for IKEA Japan.

as one and a half hours.

Of the two EVs adopted in 2020, one

high-voltage lithium-ion batteries, with

They use six

is dedicated to the delivery of IKEA

one single charge lasting approximately

company and bring more individuals into the fold in order to curb

Japan products, while the other is for

100 km.

climate change.

the delivery of products from the IKEA
Kohoku store to city-center stores.
IKEA Japan’s special EV truck

13

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SDGs COMMUNICATION BOOK 2022

Thinking About Environmentally
Friendly Transport Together
with Our Stakeholders

Tackling Social Challenges Through Modal Combinationby the fact that they could reduce CO₂
emissions while maintaining a level ofservice on par with their truck operations.

― What are the adv ant ages o fPreventing CO₂ emissions in logistics is not easy.

transport using the SRC?

To ensure transport operations with low environmental impact,
in addition to the use of trucks,

Nakamura : The use of four electric containersuch as the combined use of trains and ships.

between Tokyo and Osaka in around six

cars gives the SRC better acceleration than

we are also promoting a modal shift to different forms of transport,

standard freight trains, allowing it to travel
hours. Moreover, the round-trip loading
capacity of the SRC is equivalent to 56
ten-ton trucks. CO₂ emissions from rail
Members of JR Freight’s Sales Department from left : Takumi Imanaga, Senior Manager; Takashi Nakamura,
Deputy General Manager; Soichiro Wake, Executive Officer and Deputy General Director

Sagawa Express and Japan Freight Railway
Company (JR Freight) have been using
their jointly developed Super Rail Cargo(SRC) express railway container cars, sincetransport are said to be just one tenth ofthat generated by trucks, and so use of the
SRC is helping to cut annual CO₂ emissions― Please tell us the backdrop to theby approximately 14,700 tons.*

Imanaga : Development of the SRC began

the logistics industry compete over thedevelopment of the SRC.

2004. Among others, the SRC is helping

as part of the High-speed Freight Transport

to reduce CO₂ emissions. Here we speak

Development Strategy Project, which JR

to Soichiro Wake, Takashi Nakamura andFreight launched in 1999. In the process

Takumi Imanaga from JR Freight’s Salesof looking for a company to use the train,

Department. (Honorifics omitted)

Sagawa Express accepted our proposal.
I think Sagawa Express were attracted

Wake : Rather than having companies inmarket using train, truck or ship transport,
for example, we believe companies should
work together.

We call this approachmodal combination.

Moving forward, I

hope we can work together as an industry
to tackle environmental problems.

High-speed Vessels for People- and Environment-friendly Maritime Transport

Making Use of Mutual Strengths
In addition to reducing environmental impact, transport using train
and ships also avoids any influence from congestion, etc., ensuringstability in long-distance transport.   It also helps to eliminate
driver shortages.   Coordinating use of trucks, trains and ships,
and effectively using their respective strengths, will help to ensuresustainable transport operations.

Keisuke Nakamura, Manager, Sales Section,
Tokyo Kyusyu Ferry Co., Ltd.

Working together, Sagawa Express andTokyo Kyusyu Ferry have achieved a modal
shift, moving some of Sagawa Express’
long-distance truck transport operations
between the Kanto and Kyusyu regions
off land, switching to maritime transport
between Yokosuka and Shinmoji. Here, we
speak to Keisuke Nakamura, Manager ofTokyo Kyusyu Ferry’s Sales Section, to find

Environment Awards hosted by the Japanout more. (Honorifics omitted)

Association for Logistics and Transport.

Nakamura: While there was previously

Maritime transport helps to reduce thea maritime transport route between

distance covered by vehicles and in turnKanto and Kyusyu, it was slower than

reduce CO₂ emissions. The modal shift

the overland route. However, it began to

between Kanto and Kyushu has enabled agarner attention as an alternative means

48% annual reduction (1,704 tons) in CO₂

when overland transport was impossible

emissions.* Further, the use of trailers candue to a natural disaster, for example,

eliminate the need for drivers to board theand so in-house we began examining thecargo ships as the cargo can simply beidea of introducing high-speed vessels.

transferred to the ship. In the transport

Sagawa Express supported this plan, andindustry, which faces a range of challenges

we launched efforts to bring the idea tosuch as decarbonization and personnel

fruition. Following numerous discussions,shortages, opportunities are rising forin 2021 we opened a 21-hour route

maritime transport to offer a solution. I

linking Yokosuka and Shinmoji.

As athink our joint initiative was recognizedresult, together with Sagawa Express

as a successful example, leading to thewe received the Decarbonized Logistics

award. I look forward to maritime transport

Promotion Award at the 23rd Logistics

increasing its presence as a logistics option.

*Reduction effect calculated based on the environmental impact (theoretical values) of not undertaking a modal shift

15

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SDGs COMMUNICATION BOOK 2022

Energy for Facilities Generated
In-house

The First Distribution Facilities toAchieve Net zero Energy Consumption

Not only must we find solutions for transport and delivery,

the pioneer, and similar initiatives havesince spread throughout the industry.

it is also important that we make our distribution facilities
more environmentally friendly.

― GPlease describe the sustainabledistribution facilities that SG

By minimizing our power consumption and making use ofRealty is aiming to create.

solar power generation and other means,

we will aim to increase the number of zero-energy buildings.

Kobari : In addition to minimizing theenvironmental impact caused by ourenergy consumption, we are preparing fornatural disasters by using storage batteries
to store the power generated by the onsite solar panels. Moreover, some elementsof the interior design make use of theEngineering Management Section, Engineering Management Department, SG Realty Co., Ltd.
Left : Mutsuaki Enokido; right : Miharu Kobari

the annual energy consumed by around6,000 homes.*2

Group, is moving forward with the

SGR Wako and SGR Higashiosaka weredevelopment of environmentally friendly,

designed in a way that the power

the landscape through careful arrangement

sustainable distribution facilities. SG

generated through solar panels and otherof diverse trees and plants, roadside trees

Reality (SGR) Wako and SGR Higashiosaka,

means offsets the energy consumed on-

and lamps.

which were completed in 2018 and 2021

site. However, in-house power generation

respectively, have successfully achieved

alone is not enough to achieve net zero

Enokido : We are also making the roads

net zero energy consumption throughenergy consumption, and so drastic energy-

around our properties environmentallythe procurement of renewable energy,saving measures were also required. We

implementation of energy-saving measures,

installed high-efficiency air conditioning

and use of solar power generation systems.

equipment, and used materials with highFollowing an inspection by a third-party

thermal insulation properties in the externalorganization that evaluates energy-saving

walls. For lighting, not only did we switch

performance of buildings, both buildings

everything to LED, but we made use ofreceived ZEB (net zero energy building)*1

motion sensors and adjusted the number

certification, which is the highest possibleof lights while paying careful attention

In this sec tion w e speak t o

the Engineering Management Section at
SG Realty about environmentally friendly

Logistics At our distribution facilities, which are in chargeof sorting and storing packages, for example, we use large
amounts of electricity for various special equipment, air
c o n d i t i o n i n g a n d m o r e .    E n v i r o n m e n t a l l y f r i e n d l y e n e r g y
consumption is fundamental to sustainable logistics.

We areworking to make these facilities people-

SG Realty, which is in charge of the real

Mutsuaki Enokido and Miharu Kobari from

Environmentally Friendly Worksites to Support Sustainable

forest protection activities.

estate business within the SG Holdings

rating.

Environmentally Friendly Worksites to
Support Sustainable Logistics

thinnings generated by Sagawa Forestry’sreal estate development and management.
(Honorifics omitted)―Please tell us about yourto ensure that we maintained the qualityof work environments. These and othermeasures ensured we achieved net zero.
Kobari: SGR Wako was the first distribution
facility to be recognized with the ZEB
rating, which is awarded to buildings that
consume net zero energy. SGR Wako wasand environment-friendly in other ways too,such as by greening external walls, andharmonizing the facilities’surroundings withfriendly by introducing Super Polyascon, aconstruction method that utilizes recycled
PET bottles. This modified material madefrom recycled PET bottles has improved
durability, which helps to reduce thefrequency of repairs and renovations.
Compared to conventional materials, thismodified material also generates around
30% less CO₂ during production.
Kobari :IWhen proactively engaging
in initiatives like these, we have theopportunity to acquire a wide range ofexpertise from other companies who sharethe same interest. We believe that sharing
information on highly energy efficientfacilities and their mechanisms throughout

environmental initiatives.

the industry will help to create sustainabledistribution facilities.

Enokido : To date, we have installed solar
power generation equipment at around
100 of our facilities nationwide, and haveused the electricity generated for both inhouse consumption and external sales. In
FY2021, we generated a total of 2,400,800
kWh of electricity, which is equivalent to

SGR Higashiosaka*1: Buildings with net zero primary energy consumption through both energy-saving and energy-creating measures*2: Calculated based on FY2019 Home Energy Situation, Ministry of the Environment

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SDGs COMMUNICATION BOOK 2022

Nurturing Forests For
a Sustainable Future

Bringing Back the Forest Cycle
facilities. Working with these associations,
we are promoting use of this wood andForest protection activities are essential for decarbonization.

using the profits generated to grow our

we are joining forces with local forest associations.

― What is the significance of yourmountain forests and develop new forests.

At the Sagawa Forests we own in the Shikoku region,

collaboration?

Imahata : It’s incredibly reassuring to beable to ask a professional organization
like the Kami Forestry Association for help
with mountain forest management, as thework requires abundant experience andoutstanding techniques. Our role in the
From left : Sho Imahata of Sagawa Forestry; and from Kami Forestry Association, Director Akihiro Ishikawa,
Managing Director Yukihiro Mitani, Manabu Tajiri and Akio Yamazaki

The forestry industry in Japan is facing

introducing high-performance forestry

various challenges, including a slump in

machinery from overseas and opening up

domestic lumber prices and personnel

routes suited to machinery-based work. In

shortages. A stagnant forestry industry

doing so, we are improving the efficiency

can in turn stop the forest protectionof the thinning and recycling work thatcycle, which is maintained by planting,

mountain forest owners contract us tonurturing, thinning and use.

Decaying

undertake. In this way, we are working toforests have less ability to absorb CO₂ andreturn profits to forest owners and create

retain water, and can even cause naturalbountiful forests.

partnership is to communicate the appealsof wood and boost demand and value.
Bringing our strengths together is the ideal
way to ensure that bountiful forest cycles
are protected.
Ishikawa : In having Sagawa Forestry takeownership of a certain area of mountain
forest, forest maintenance has become
vastly more efficient, enabling morethorough, widespread management. If we
can appropriately maintain abandoned

disasters.
Sagawa Forestry, which owns the Sagawa

Imahata :At Sagawa Forestry, ourForests in Kochi and Tokushima, isphilosophy is to engage in forest

currently working with the Kami Forestry

protection activities to leave trees for the

Association, an organization mainly

next generation.

involved in forest regeneration projects

the mountain forests we own with help

in Kochi Prefecture. Their collaborativefrom local forestry associations, and are

activities are an attempt to tackle theworking to create mechanisms for forestry

various forest-related social challenges

cycles that include everything from tree-

we face today. Here, director of the Kami

planting to wood utilization.

Forestry Association Akihiro Ishikawa andWood taken from Sagawa Forests is being

Sho Imahata from Sagawa Forestry talkused in the interiors of SG Holdings Group

about the ideas and background behind

distribution facilities and recreational

We carefully manage

forests, the rate of CO₂ absorption will
improve and we will have more access towood, which is one of the few renewable
resources in Japan.
To widely communicate to the next
generation the fact that forests provide
us with various benefits, I hope we cancontinue working with Sagawa Forestry to
promote projects.

their project. (Honorifics omitted)― What are your thoughts on thecurrent state of the forestry

Working Together to Protect Our Forests
When the forest cycle of tree-planting and thinning is lost andforests fall to ruin, not only does the lack of sunlight within
mountain forests have a negative impact on nature, the soil
environment can also become damaged and heighten therisk of disaster.

As such, together with those in the forestry

industry, it is important that society as a whole engages inforest protection activities.

industry and forest protection
activities?

Takao 100-Year Forest
Sagawa Express owns approximately 50 hectares of forest in Hachioji Cityin Tokyo, and is engaged in activities to protect its function as a source ofIshikawa :In the past 50 years, theabsorption of CO₂ emitted from its truck-based business activities.

liberalization of wood imports and otherIn tandem with local citizens, universities

social changes have caused a significant

and other educational institutes, experts

drop in the profitability of forestry

and other external parties, restoration

businesses.

Meanwhile, the decliningof undeveloped woodlands, valuable forbirthrate and aging population havemitigating global warming and where

spurred industry personnel shortages,

people and nature can exist in harmony, isand the number of abandoned forests isbeing carried out under a long-term vision

increasing.

symbolized by the phrase“100 years.”

To improve this situation, we are

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SDGs COMMUNICATION BOOK 2022

Delivering the Future
Working Together for a Better Tomorrow

Below Are Some of the Initiatives Underway
at Our Group Companies

We believe that logistics has the power to link people, society and ideas.

Sagawa Humony

Sagawa Advance

Among others, Sagawa Humony provides the VERY CARD
message delivery service. In April 2022, the company launched
SUSTAINAGIFT, an ecommerce website bringing together arange of sustainable gift products. The company will continue topropose means of sustainable consumption for both companies
and individuals.

Sagawa Advance is involved in the procurement of vehicle fuelused by the SG Holdings Group and its partner companies.
Further, aiming to make the electricity used by the Group entirely
CO₂-free, the company is in charge of negotiations and contracts
with power companies.

We will therefore contribute to the achievement ofa decarbonized society with pride.

World Supply
World Supply is a comprehensive logistics company involved
in delivery operations for commercial and other facilities. For
food deliveries, World Supply has adopted use of CNG (naturalgas) trucks. The company manages delivery vehicles using
a proprietary facility logistics system, easing congestion insurrounding areas and in turn reducing CO₂ emissions.

SG Motors
SG Motors is responsible for the maintenance, sale, bodycustomization and more of SG Holdings Group vehicles.
By using easily recyclable materials on the roof panels ofcompact delivery vehicles, the company is contributing toresource circulation. Further, at its sales stores, the company ispromoting use of renewable electricity and in turn reducing CO₂
emissions.

Sagawa Global Logistics

SG Systems

At EC Logi Tokyo within X FRONTIER, Sagawa Global Logistics
has introduced Carton Wrap, a system that automatically packs
shipping boxes in the optimal shape depending on the size of the
product. This helps to reduce the volume of packages and in turnincrease the amount that can be loaded onto trucks, reducing
transport frequency and cutting CO₂ emissions.

SG Systems has developed Biz-Fleet, a cloud-based operation
management system compatible with multiple devices. The
system coordinates with various IoT equipment including digitaltachographs, drive recorders and smartphones for the integrated
management of operational information. The system is also
being used to teach drivers safe driving and eco-friendly driving
techniques.

SGH Global Japan
SGH Global Japan has donated bread, water and other items
from its emergency stockpiles with only a few months remaining
on their consume-by dates to Second Harvest Japan, a non-profit
organization engaged in food bank activities. By having these
donations contribute to the reduction of food loss, the company
is working to achieve a sustainable society.

EXPOLANKA HOLDINGS PLC
EXPOLANKA HOLDINGS is a Group company with its headquarters
in Sri Lanka. The company is currently promoting the use ofelectricit y derived from renewable energ y. At its warehousefacility in Orugodawatta, the company has installed more than
2,500 solar panel s, which provide approximately 80% of thepower it uses.

SG Fielder
SG Fielder is a human resources outsourcing company specializing
in logistics. The company offers temporary staffing, personnel
placement and outsourcing services, and manages more than 200
worksites under contract nationwide. The company has acquired
three-star Eruboshi certification, and has also been certified as an
Excellent Worker Dispatching Business.

Nouvelle Golf Club
Nouvelle Golf Club manages a golf course in Oamishirasato Cityin Chiba Prefecture. The new lakes that have been created oncourse are used for water management during disasters, helping
to prevent floods during heavy rain and supply water to local
paddy fields in times of drought.

SG Assetmax
SG Assetmax is an asset management company that mainly
invests in logistics-related real estate. When undertaking repair
work on its real estate under management, the company uses
environmentally friendly devices and building materials, working
with its tenants to reduce CO₂ emissions.

See Videos About Our Initiatives for the SDGs!
Take a look at the videos alongside this SDGs Communication Book.
https://www.sg-hldgs.co.jp/en/csr/sdgs-video/
Search for“SGH SDGs”or use the two-dimensional
barcode on the right.

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