In recent years, climate change has caused severe storms, droughts, water shortages and impact on ecosystems, and addressing these has become a pressing issue. As the trend of aiming toward carbon neutrality accelerates globally, the Paris Agreement was adopted in 2015, and Japan declared in 2020 that it would aim to become carbon neutral and realize a carbon-free society by 2050. As the transition to a carbon-free society progresses rapidly, initiatives to reduce emissions in companies have become important.

The transportation sector including private vehicles accounts for approximately 17%* of CO₂ emissions in Japan, and we recognize that it has a significant impact. The transportation of passengers and freight included in the transportation sector is a function deeply related to many industries and everyday life, and reducing emissions in transportation is vital for the realization of a carbon-free society. The Group operates a comprehensive logistics business and uses many trucks. As a corporate group handling social infrastructure in the form of logistics, we recognize that it is our responsibility to take steps aimed at a carbon-free society, and believe that we should further strengthen measures to prevent global warming, which is an urgent issue faced by the world. We will cooperate with stakeholders to engage in the reduction of emissions throughout the entire supply chain.

The boundary shall be domestic Group companies (additional responses in overseas Group companies will be considered)

The SG Holdings Group's Decarbonization Vision is simply explained in a video.

In the SG Holdings Group, President and COO is responsible for supervising the Group’s policies and responses related to climate change issues related to climate change. Issues related to climate change are reported and discussed at the Sustainability Committee with the representative director and directors as members, and reported to the Board of Directors as needed.

About the Sustainability Committee

Organization chart of other subcommittees under the Board of Directors

Climate change risk is incorporated into the Group’s risk management and assessed annually.

The SG Holdings Group is promoting the introduction of vehicles with little environmental impact. Sagawa Express plans to gradually introduce light electric vehicles into its fleet. The company is also introducing natural gas trucks, which have less air pollutants (nitrous oxides, particulates, etc.) in exhaust gas, and hybrid trucks boasting good fuel consumption.

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. In 2020, operations commenced at a transfer center consolidating multiple transfer sites in the Kanto region inside the "X FRONTIER®" next-generation large-scale logistics center.

The establishment of transfer centers can reduce the number of trucks used.

SRCs are distribution facilities directly connected to the sales offices of Sagawa Express, and enable the reduction of truck transportation between each process.

Sagawa Express has set up Service Centers nationwide where collection and delivery operations are carried out using carts and bicycles instead of trucks. The Company has also introduced the TRIKE CARGO towing-style electric power-assisted bicycle in sales offices and Service Centers. TRIKE CARGO has a maximum load of 150kg* and enables a large volume of packages to be carried without using an automobile.
Through such initiatives, CO₂ and air pollution emissions have been reduced by an equivalent of approximately 1,500 vehicles across all centers

If a Service Center has been established

Sagawa Express is promoting a modal shift, which refers to switching from the transportation of freight by truck to the modes of transportation that have a lower environmental impact, such as train and ship. Modal shift not only reduces CO₂ emissions but also contributes to saving energy and labor because a larger volume of freight can be transported at once.

In 2004, Sagawa Express began to transport express delivery packages via "Super Rail Cargo" express railway container cars developed jointly with Japan Freight Railway Company. Trains run regularly to and from Tokyo and Osaka and transport roughly 10% of the total shipping volume between Tokyo and Osaka. The total volume transported in both directions is equivalent to 56 ten-ton trucks.

We are engaged in replacing a part of the long-haul transportation from Kanto to Kyushu, which has mainly relied on trucks, with marine transportation. Tokyo Kyusyu Ferry, Japan Post, and Sagawa Express jointly won a special award at the 24th Logistics Environment Awards (sponsored by the Japan Federation of Freight Industries) for a modal shift to using high-speed ferries starting in 2022. Compared to truck transportation, this joint transportation is expected to reduce CO₂ emissions by 205.6 t-CO₂ per year (approx. 59%) and truck driver hours by 6,204 hours per year (approx. 90.7%).

Sagawa Express has implemented Idling Stop since 1997. When drivers are away from their vehicles while delivering and collecting to and from customers, and when unloading packages in sales offices, the key is removed from the ignition to stop the engine in an effort to control exhaust gas.

Sagawa Express is jointly implementing a sustainable delivery project that allows consumers to voluntarily take part in efforts to reduce CO₂ Emissions in collaboration with Euglena, which manufactures and sells biodiesel fuel. This is a new mechanism that allows shippers, companies, and consumers to work together to achieve decarbonization.

If consumers pay the product price plus a voluntary support amount (1,000 yen per unit) when purchasing products from the official Euglena online shopping website, the company and Sagawa Express will contribute the same amount towards the cost of introducing biodiesel fuel with superior environmental performance. The fuel will be used in Sagawa Express delivery vehicles.

Euglena's SUSTEO biofuel is a mixed fuel that contains 20% used cooking oil and Euglena microalgae-based biofuel. Although it emits CO₂ when burned, plants and algae absorb CO₂ from the atmosphere through photosynthesis as they grow, so emissions can be reduced to net zero.

Using biofuels in delivery vehicles that do not compete with food production or cause deforestation reduces CO₂ emissions from vehicles compared to diesel oil derived from fossil fuels.

Euglena Official Online Shop: With Sagawa Express and your cooperation, Euglena delivers its products with trucks powered by the biofuel SUSTEO! | Euglena Online Shop (euglena.jp)

SG Realty, which oversees property management of the SG Holdings Group, develops environmentally friendly logistics facilities with the aim of contributing to sustainable urban development and realizing a carbon-free society.

SG Realty Higashiosaka (Higashiosaka City, Osaka), completed in 2021, utilizes energy conservation (LED lighting and high-efficiency air conditioning) and energy creation (solar power generation system). In addition, when energy generation is insufficient, such as at night, electricity purchased from external sources is CO₂-free^*1, making 100% of the electricity used in the facility renewable energy.

As an environmentally friendly and sustainable facility, the property received a top-level 5-star rating under BELS (Building-Housing Energy-efficiency Labeling System), a third-party examination that evaluates the energy-saving performance of buildings, as well as the ZEB certification (Net Zero Energy Building^*2). At the same time, the building was also granted an A rank in the Comprehensive Assessment System for Built Environment Efficiency (CASBEE).

Sagawa Forestry, which owns approximately 800 hectares of Sagawa Forests in Kochi and Tokushima prefectures, conducts a forestry protection business to achieve its greatest mission of "protecting the forest cycle." The carbon credits generated from these forests are used to offset a portion of the Group's CO₂ emissions associated with its operations.

Coexistence with Nature

We will consider products and services that can lead to decarbonization for customers and partner companies with the aim of reducing CO₂ emissions throughout the entire supply chain (Scope 3).

In addition, we are creating video content and booklets, etc., as means of communication aimed at employees and other stakeholders.

SDGs video

Library

Sagawa Express is engaged in the following initiatives aimed at adapting to climate change.

Sagawa Express has concluded disaster agreements with the national government and local governments. In the event of a disaster, based on these agreements, the company helps to transport emergency supplies to evacuation centers, supports the operation of hubs where these goods are collected, and more.

Regarding its response to disasters caused by impacts from climate change, Sagawa Express utilizes its experience in disaster response, regularly coordinating with local governments and other organizations to provide support as early as possible in the event of a disaster. To enable rapid response, Sagawa Express is moving forward with the conclusion of disaster relief agreements with the national government, nationwide local governments, universities, corporations, and other organizations.

Sagawa Express participates in the Japan Climate Leaders Partnership (JCLP) as an executive member, providing the government with recommendations on the issue of climate change through dialogue with government officials, policymakers and industry groups. In this way, the company participates in various external organizations and projects to enhance its communication activities. In addition, the company is also acting as member of the Logistics Environment Measures Committee of the Japan Association for Logistics and Transport and a supporting member of the Japan Climate Initiative.