Transportation & Logistics
CHIEF SUSTAINABILITY OFFICER
- Excellent Safe Driving Workplace Award
- Excellent Safety Workplace Bureau Director-General’s Award
- 5th Grand Prize Award for Excellent Business Entities Working on Modal Shift for Sagawa Express
- Minister of the Environment Award for Merit in the Promotion of the Creation of a Recycling-oriented Society at the 13th National Convention for the Promotion of the 3R Activities for Sagawa Express
- Runner-up for the Basic Achievement Award at the 2019 J-Win Diversity Awards
- Japan Resilience Award for Sagawa Express
SG Holdings Japan
SG Holdings is a comprehensive logistics group comprising 109 companies: the holding company SG Holdings, 100 consolidated subsidiaries, and eight equity method affiliates. SG Holdings Co., Ltd. (the “Company”) is the pure holding company of the SG Holdings Group (the “Group”) and implements management strategies and administration functions for the entire Group.
Shares of SG Holdings were listed on the first section of the Tokyo Stock Exchange in December 2017.
According to the company:
In Japan: “ The Delivery Business provides a variety of transportation services through our nationwide network. The Logistics Business offers cross-border supply chain optimization for customers in Japan and overseas by providing customized warehouse operations, international transport, and local logistics. The Real Estate Business develops, utilizes, and manages real estate, centered around distribution facilities and other Group business infrastructure.”
Overseas: “We set up SG Holdings Global in Singapore as the hub of our overseas business. In East Asia, the Group conducts a high-quality logistics business with its own warehouses in Shenzhen and Hong Kong in China, including freight forwarding operations such as arranging the transportation and customs clearance procedures of import and export freight on behalf of customers. It also provides international courier services and consistent transportation arrangements for cross-border EC packages to customers’ doors in coordination with Sagawa Express in Japan. With sites in major countries throughout Southeast Asia, SG Holdings provides comprehensive logistics services from upstream to downstream based out of its own warehouses. Centered on Expolanka Holdings PLC (Sri Lanka head office), the Group conducts freight forwarding operations with 20 sites in India. It is also building a network of sites in Bangladesh, the Middle East, and Africa, and has strengths in the transportation of products to North America and Europe.”
Company Sustainable Activity
The SG Holdings Group aims for sustained growth by resolving social issues through business as a comprehensive logistics group. When specifying seven material CSR issues, they utilized SDGs as a social perspective and also identified SDGs highly related to us.
Furthermore, in the Mid-term Management Plan Second Stage 2021, a three-year plan starting in fiscal 2019, “contribution to SDGs” is one of their key initiatives. This is because they believe their goal should aim in the same direction as the SDGs, which seek to realize a sustainable society, and they should move forward with it in order to sustain and evolve the logistics business as social infrastructure. They will contribute to the achievement of SDGs through various initiatives in line with the seven material issues.
- Providing Safe and Secure Services:
The total distance traveled by the Group in its transportation business is 420 million kilometers in Japan alone, and the number of vehicles owned totals approximately 27,000. Minimizing the impact of traffic accidents is the responsibility of everyone involved in this business. One of the sustainable development goals (SDGs) established by the United Nations is to “halve the number of global deaths and injuries from road traffic accidents by 2020” and they are committed to this goal.
- Traffic Safety
- Labor Health and Safety
- Promoting Environmentally Friendly Activities
The Group is engaged in “7. Affordable and clean energy” and “13. Climate action” due to the impact of the use of energy by vehicles and various types of equipment in distribution facilities through the logistics business. The SG Holdings Group engages in voluntary and continuous environmental management by conducting environmentally friendly business activities while seeking to coexist with society and nature.
- Prevention of global warming
- Prevention of pollution
- Promotion of the 3Rs (Reduce, Reuse, and Recycle).
- Environmental education initiatives
- Environmental communication initiatives
- Building an organization of diversity and inclusion:
Their main business is logistics, and that business involves a lot of people. Maintaining and raising the morale of their people is an important task for us. As many of their workplaces are predominated by men, it is their aim to realize Goal 5: Gender Equality and Goal 8: Decent Work and Economic Growth.
The SG Holdings Group believes that it is people who make the sustainable growth of a business possible. About 50% of their employees are regular employees. They work with people of diverse backgrounds, in a variety of contract relationships. By creating a workplace environment where a diverse group of employees can be comfortable working, they are also better able to provide services that meet the needs of a wide range of customers. To that end, they have established a Group-wide personnel vision and human resources systems, which form the basis of specific policies and practices. They are striving to make improvements in their corporate culture. As they persist in these efforts, they conduct surveys that gauge the engagement of employees in order to understand their current status at work, and they use that as a basis on which to formulate their goals and plans.
Work style reforms, diversity and inclusion, and respect for human rights, are important themes for the Group, and it is in these areas that they perceive the needs of society to be great. Going forward, they will deepen their discussion of these issues as a group, so that they may develop policies that are even more effective.
Creating new value through comprehensive logistics solutions:
They will contribute to the reduction of environmental impact, the creation of livable communities, and the development of industry through the improvement of efficiency of logistics and the utilization of technology.
The Group will focus on the two following points to continue to provide people with convenient lifestyles through their logistics business.
- Provision of evolved logistics solutions
- Promotion of digitalization and technologies
- Contributing to communities:
As a corporate group that does business in a wide range of places, both domestically and abroad, they are actively committed to the pursuit of Sustainable Development Goals (SDGs) for the environment, economy, and society.
They act based on their Charter of Corporate Conduct, which is their declaration to earn the trust and empathy of society, and their Code of Ethics and Conduct, which outlines the specific details. These policies express support for and cooperation with local governments, services for the development of regions, fostering future generations, and contributing to overseas communities. In line with them, they carry out a wide range of measures from a comprehensive perspective that embraces concerns for the environment, economy, and society of regional societies. Municipalities in Japan face a diverse range of issues. They work with municipalities throughout Japan, based on “comprehensive regional revitalization partnership agreements.” They assess their needs, and work actively with them to resolve the issues they face.
Promoting Sustainable Procurements:
In coordination with more than 16,000 business partners, they will not only conduct business with consideration for human rights and the environment, but also cooperate in a variety of areas such as contributing to environmental issues and local communities, ultimately contributing to the achievement of the SDGs as a whole.
As a corporate group supported by more than 16,000 partner companies, they believe that the continuity of partner companies is one of the business issues faced by the SG Holdings Group.
To ensure the prosperity of their business partners (suppliers), in 2014 they established the SG Holdings Group Business Partner CSR Guidelines, indicating the Group’s views on CSR and corporate stance on procurement. These guidelines require business partners (suppliers) to understand and cooperate in seven items.
Building a Responsible Management Foundation:
Corporate governance, compliance, and risk management are the foundation of their business.
These are important issues, connected to all their business activities. Initiatives to construct Sustainable management systems contribute to their efforts to achieve SDGs overall.
They conduct all their business based on their Corporate Philosophy, Charter of Corporate conduct, and Code of Ethics and Conduct.
- ISO 9001
- ISO 14001 for Segawa Express and Expolanka Freight
- ISO 14064 for Expolanka Freight
- Five Star certification under the Building-Housing Energy-efficiency Labeling System (BELS) for SG Realty
- Excellent Safety Workplace certification (G mark)
- EcoAction21 for SG Motors and SG Moving
- Kurumin Mark for SG Holdings
- 2019 Excellent Health Management Corporations for Sagawa Advance
Sustainable Development Goals
How company covers SDGs
SDGs 3, 11: PROVIDING SAFE AND SECURE SERVICES
1. Traffic Safety
They are systematically implementing traffic safety measures based on the Transport Safety Management System. The most emphasis is placed on the safety education of drivers. By thoroughly implementing this, they aim to reduce traffic accidents in the company and society as a whole.
2. Labor Health and Safety
Labor health and safety of employees is carried out based on the Group-wide “Health and Safety Regulations.” In addition to these, each business site implements measures according to risk to ensure the health and safety of employees.
They will constantly engage in the improvement of quality to provide services that support the sustained growth of the Group and society.
Traffic Safety Policy: The three following companies handle most of the transportation operations of the SG Holdings Group. To ensure traffic safety, they are all engaged in basic policies on transportation safety based on the Transport Safety Management System established by the Ministry of Land, Infrastructure, Transport and Tourism.
●Sagawa Express ●SG Moving ●World Supply
Basic Policy on Transportation Safety:
1. Under the Corporate Philosophy of the SG Holdings Group, all employees will work as one to constantly improve transportation safety by putting human life first through close cooperation between Group companies based on the Charter of Corporate Conduct.
2. Management executives will lead efforts to ensure transportation safety within the company by having a deep understanding that ensuring transportation safety is the bedrock of management of the business. Furthermore, they will ensure that employees are aware of the highest importance of ensuring transportation safety.
3. They will steadily implement safety management and conduct operations with a top priority on safety.
4. When utilizing partner companies, they will not conduct any act that impedes the business operator’s practice to ensure transportation safety. Furthermore, they will strive to cooperate with partner companies in the improvement of transportation safety.
5. They will publish information on transportation safety.
Labor Health and Safety: The SG Holdings Group has established common “Health and Safety Regulations” for the Group in an effort to improve health and safety activities, prevent workplace accidents, ensure the safety and health of employees, and form and promote comfortable working environments.
The areas where these initiatives are conducted are as follows.
●Health management of employees ●Stress management of employees ●Ensuring labor safety in the workplace ●Long working hours ●Health and safety education
The Group places a particular focus on initiatives aimed at the health of each of its employees. Preventing illnesses from becoming severe was set as a goal for fiscal 2018. This initiative covers employees found to be subject to health risks in health checkups conducted once per year in Japan. Health nurses from the SG Holdings Group Health Insurance Society conduct interviews with each person at risk, recommend being seen by a specialist, provide guidance on medication, and provide health guidance such as a review of lifestyle habits over one year for better results in the next year’s medical examination. Approximately 1,100 people were found to be at risk in fiscal 2018, but significant improvements were seen in 80% of the following fiscal year’s results, indicating a reduction in health risks.
Quality: The SG Holdings Group believes that quality underlies safe and secure services. To deliver services responding to the trust of customers and employees, they are establishing systems and mechanisms that improve quality according to the characteristics of each Group company.The Group has built quality management systems to match the characteristics of each Group company. For example, Sagawa Express, which is the core of the Group, has established a Quality Assurance Department in its head office, and also appointed quality managers in 18 branches and 427 sales offices nationwide. These quality managers aim to maintain and improve quality by periodically checking the level of service.
SDGs 7, 13: PROMOTING ENVIRONMENTALLY FRIENDLY BUSINESS ACTIVITIES
The SG Holdings Group engages in voluntary and continuous environmental management by conducting environmentally friendly business activities while seeking to coexist with society and nature.
1. Prevention of global warming
They will engage in the reduction of CO2 emissions in their business activities and the prevention of global warming through the provision of environmentally friendly products and services, and resource-saving and energy-saving activities.
2. Prevention of pollution
They will strive to prevent air pollution, water pollution, and soil contamination in their business activities.
3. Promotion of the 3Rs*.
All Group companies will further promote the 3Rs in business activities, contributing to a sustainable society.
*The 3Rs refer to Reduce, Reuse, and Recycle.
4. Environmental education initiatives
They will provide environmental education on reducing environmental impact in addition to preservation and regeneration of the natural environment to all Group employees in an effort to raise awareness of environmental issues.
5. Environmental communication initiatives
They will endeavor to provide active disclosure with the aim of achieving mutual understanding with local communities, and broadly engage in environmental communication to children who will be responsible for the next generation.
Climate Change: The Group is working to reduce CO2 emissions throughout the entire transportation/delivery system. For example, transfer centers and Sagawa Distribution Centers (SRCs) are utilized to promote the improvement of logistics efficiency by limiting the number of trucks used.
The Group is promoting the introduction of environmentally friendly vehicles such as electric vehicles, hybrid trucks, natural gas trucks, and clean diesel vehicles, which have a reduced impact on the environment. In April 2019, trial operation of electric trucks began in the Bunkyo Sales Office of Sagawa Express. Natural gas trucks reduce emissions such as CO2, NOx (nitrogen oxide) and PM (particulate matter), and hybrid trucks and electric vehicles are able to reduce fuel consumption.
Circulation of Resources:
- SG Realty is developing distribution facilities that lead to stable power supply and reduced environmental impact, and there are currently 99 distribution sites and distribution centers with solar power facilities in the Group. The total area of the panel installations is 197,273m2 and the total power generated in fiscal 2018 was 27,506MWh. Furthermore, the latest captive solar power generation system has been installed at SG Realty Wako, which was completed in February 2018, and annual energy consumption has effectively been reduced to zero due to the creation of natural energy using solar panels.
- The Group is promoting green purchasing in which products with a low environmental impact are chosen, and as part of this, the uniforms of Sagawa Express use EcoMark-certified products made by recycling plastic bottles. In fiscal 2018, they purchased roughly 320,000 uniforms (equivalent to roughly 1,790,000 plastic bottles of 500ml). Used uniforms are reused as much as possible and those that cannot be easily reused are collected and recycled as fuel for ironworks. They also use EcoMark-certified gloves for Sales Drivers®.
Coexistence with Nature:
The SG Holdings Group positions “coexistence of society and nature” as an important environmental initiative, and is engaged in a wide range of environmental communication activities primarily targeting children who will be responsible for the next generation in accordance with its Environmental Policy .
These include: – Takao 100-Year Forest Project -Rice Cultivation Experience Activities -On-demand Classes on the Environment -National Eco Art Contest -Environmental Awareness for Employees -Forest Preservation
SDGs 5,8: BUILDING AN ORGANIZATION OF DIVERSITY AND INCLUSION
The SG Holdings Group believes that it is people who make the sustainable growth of a business possible. About 50% of their employees are regular employees. They work with people of diverse backgrounds, in a variety of contract relationships. By creating a workplace environment where a diverse group of employees can be comfortable working, they are also better able to provide services that meet the needs of a wide range of customers. To that end, they have established a Group-wide personnel vision and human resources systems, which form the basis of specific policies and practices. They are striving to make improvements in their corporate culture. As they persist in these efforts, they conduct surveys that gauge the engagement of employees in order to understand their current status at work, and they use that as a basis on which to formulate their goals and plans. Work style reforms, diversity and inclusion, and respect for human rights, are important themes for the Group, and it is in these areas that they perceive the needs of society to be great. Going forward, they will deepen their discussion of these issues as a group, so that they may develop policies that are even more effective.
Human Rights: For the purpose of prevention and early discovery of wrongdoing within the Group, they have established “Internal Whistleblowing Regulations,” which form the basis of their SG Holdings Group Compliance Hotline. This is a means that allows employees, their family members, and people from partner companies to report violations of law, company regulations, codes of conduct or ethics by anyone within the Group. Communications may be in Japanese, English, or Chinese. Since 2017 they have been operating external contact points, and they are working to protect whistleblowers. Their Internal Whistleblowing Regulations stipulate that people who file reports, or other people cooperating in inquiries, must not be mistreated.
Shining Individually: They want each person to further their individuality, hone that individuality, and shine more than anyone else.
Connection Mentality (Spirit): Everyone should share a common spirit and build solidarity. They will seek to move continually toward a new future without ever forgetting the “hikyaku no kokoro” (spirit of Edo-era express messengers), which is the cornerstone of the Group’s foundation.
Widening World: They will take a broad view by connecting with a variety of personalities to expand their potential. They will seek to foster new values which hold true not only in Japan but throughout the world.
Diversity and Inclusion:
Their WakuWaku Women’s Project, which is aimed squarely at promoting women’s place in the workplace, started in 2011. It is now a part of every part of their business, and their Group-wide goal is to increase the share of their earnings generated by women to 30%. Another of their goals is, as a top runner in the logistics industry, to make use of women to reform their corporate culture, and thereby to enhance the position of their industry. To this end, each of the Group companies has set up a dedicated office or team as well as the head, promoters, and advisers. At each company, the dedicated office or department under its CEO as the head is joined by both men and women from both administrative and business departments. Depending on the size of the Group company, they are deploying D&I promotion people nationwide, with those in managerial or executive positions acting as advisers. They have built systems to ensure that this develops from the bottom up as well as top down.
SDGs 7, 8, 9, 11, 13: CREATING NEW VALUE THROUGH COMPREHENSIVE LOGISTICS SOLUTIONS
The SG Holdings Group has formed the “GOAL®” project team centered on Sagawa Express to resolve companies’ management issues through overall optimization of logistics. “GOAL®” consists of regional teams with a total of approximately 200 members nationwide. It resolves customers’ logistics issues across the Group. Proposals cover a wide range of areas, spanning customers’ entire supply chains from procurement, storage, and processing of raw materials and parts overseas, to delivery to stores in Japan. Furthermore, it involves not only logistics itself, but also the creation of systems enabling the centralized management of the flow of goods and the provision of a wide range of settlement services to both companies and individuals. They have also established a system enabling them to meet a wider range of needs by working not only within the Group but also partnering with Hitachi Transport System in recent years. In order to continue to provide optimal logistics solutions to customers in the future, they will further expand the Group’s international network and large-scale logistics infrastructure.
Targets and Results for Fiscal year 2018
Goal: Reduction of traffic accidents in the Company and society as a whole
Results: Initiatives such as increasing training opportunities were implemented and achieved with the objective of reducing the number of traffic accidents year on year.
Goal: Ensuring of the safety and health of employees
Results: They set the target of improving medical examination results one year later for people subject to health risks, and improved results in approximately 80% of all subjects through health supervision.
Goal: Reduction of CO2 emissions throughout the Group as a whole
Results: In fiscal 2018, the CO2 emission reduction targets set for Group companies were achieved.
Goal: Creation of a workplace for participation by diverse human resources
Results: With the target of women accounting for 10% of management positions at the end of fiscal 2020, the promotion of participation of women progressed to 7.6% as of the end of fiscal 2018.
Goal: Promotion of international logistics and provision of high value-added services overseas
Results: They established logistics infrastructure in Asian countries such as the commencement of rail transportation in China and the establishment of a fixed temperature warehouse in Thailand.
Goal: Contribution to the creation of sustainable communities
Results: They contributed to the creation of sustainable communities by increasing the number of instances of disaster support agreements and mixing of freight and passengers.
Goals and Results Related to Circulation of Resources:
Fiscal 2018 Goals
- Sagawa Express: Reduction in the amount of waste produced compared to the previous fiscal year.
Result: Failed to achieve goal due to +32.5% change year on year
- Sagawa Express: Reduction in the amount of water used compared to the previous fiscal year
Result: Failed to achieve goal due to +0.5% change year on year
- SG Moving: -1% change in the amount of copying paper used compared to the previous fiscal year
Result: Failed to achieve goal due to +18% change year on year
- SG Moving: Increase in the percentage of green office supplies purchased compared to the previous fiscal year
Result: Failed to achieve goal due to percentage being approx. 19% in fiscal 2018 compared to approx. 21% in fiscal 2017
- SG Motors: Promotion of thermal recycling and material recycling of waste
Result: Selected an industrial waste processor capable of thermal recycling and material recycling
Goals and Results Related to Labor Practices:
Medium to Long-term Goals
- Domestic Group companies: Creating a friendly work environment
Result: – Overtime hours in fiscal 2018 Reduction (actual) 9.5% reduction for drivers (YoY) -Overtime hours in fiscal 2018 Reduction (actual) 3.4% reduction for employees other than drivers (YoY) -56% affirmative response rate for employee engagement questions -49% affirmative response rate for questions regarding “creating an environment that makes good use of employees”
Goals and Results Related to Diversity and Inclusion:
Medium to Long-term Goals:
- Percentage of female employees: 35% (target for end of FY 2020)
- Percentage of female managers: 10% (target for end of FY 2020)
- Increase in female executives
Result: 3 people
- To meet government target for number of employees with disabilities [Reference] Ministry of Health, Labour and Welfare mandates 2.2% (as of April 1, 2019)
Goals and Results Related to Provision of Evolved Logistics Solutions:
Medium to Long-term Goals:
- Contribution to building communities through more efficient logistics
Result: Handling of facility logistics in Nihonbashi Muromachi Mitsui Tower among other results
- Promotion of international logistics and provision of high value-added services overseas
-Introduction of temperature controlled storage within company warehouse in Thailand -Launch of international express service in Nepal -Launch of railroad transport service in China
among other results
- Approach to wider target audience by deeper penetration and additional value creation
Result: -Relocation of laboratories and hospitals -Expansion of services in logistics payment among other results
among other results
Goals and Results Related to Contributing to Regions
Fiscal 2018 Goals:
- Promoting the mixing of freight and passengers
- Promoting conclusion of disaster agreements
Results: -Increased number of disaster agreements -Increased instances of mixing freight and passengers
- Promoting Hands-Free Travel
- Promoting comprehensive partnership agreements for regional revitalization
Results: -15 locations for HandsFree Travel (no change in fiscal 2018) -Increase in comprehensive partnership agreements for regional revitalization
- Holding events aimed at next generation
Result: -Sports initiatives
SG Holdings follows the SDGs applicable to them. They received many awards and certifications for their commitment to sustainability. They communicate very clearly and their goals and progress related to their SDGs, always with Key Performance Indicators.
However, they do not hold primary certificates, and therefore get the rating B.