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ENVIRONMENT
Climate Change

Policy

As a corporate group operating a logistics business, the SG Holdings Group emitted 400,000 tons of CO2 throughout the entire Group in fiscal 2018, and recognizes the impact we have on climate change. Meanwhile, in the medium to long term, we believe that climate change will have an extremely large impact on the continuity of business, such as stronger environmental regulation and an increase in disasters due to climate change.
For this reason, in accordance with our Environmental Policy, we have engaged in a variety of initiatives such as promoting the use of vehicles and logistics facilities with lower energy consumption and emissions of greenhouse gases, and limiting the use of energy in business facilities as initiatives leading to the reduction of CO2 emissions in business activities.
In addition to continuing these initiatives, we also began supporting TCFD (Task Force on Climate-related Financial Disclosures) in fiscal 2019. In the future, we will analyze the impact of climate change on the Group's finances, and utilize the resultant risks and opportunities in our business strategy.

Goals and Results

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Company Medium- to Long-term Goal Fiscal 2018
Goals
Fiscal 2018
Results
SG Holdings
Group
Reduction of CO2 emissions throughout the Group as a whole Sagawa Express: −1% year-on-year change in CO2 emissions (total) Achieved −2.7% change year on year
SG Moving: −1% year-on-year change in CO2 emissions (total) Achieved −7% change year on year
SG Motors: −1% year-on-year change in CO2 emissions (per unit of sales) Achieved −8% change year on year

As a result of initiatives implemented in fiscal 2018, Sagawa Express, SG Moving, and SG Motors all achieved the goals related to the reduction of CO2 emissions in each company. We will continue working to reduce CO2 emissions through both tangible and intangible aspects, which respectively include the adoption of next-generation vehicles and LED lighting, and transportation efficiency improvement and modal shift.

Initiatives

Improvement of transportation/delivery efficiency

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.

Transfer Centers (Sagawa Express)

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

Transfer Centers

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Sagawa Distribution Center (SRC)

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

Sagawa Distribution Center

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Establishment of Service Centers

Sagawa Express has established Service Centers (SCs) that perform collection and distribution with hand carts or bicycles, instead of using trucks, at 331 locations throughout Japan. With three to five fewer trucks run by each location, CO2 emissions and other air pollutants of 1,500 vehicles in total are reduced across all of these Service Centers.

If a Service Center has been established
If a Service Center has been established

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Service Center

Service Center

Idling Stop

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 reduce emissions.

Introduction of Environmentally Friendly Vehicles

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.
Since June 2018, Sagawa Express has been cooperating with field trials of large LNG (liquefied natural gas) trucks jointly developed by Isuzu Motors and Shell Japan in a first for the transportation industry in Japan. This will enable LNG trucks to reduce CO2 emissions by around 10% compared to ordinary diesel trucks.
Furthermore, SG Sagawa Ameroid is transitioning from trucks under old standards (Euro 2) to new standards (Euro 4 or 5), and replaced two vehicles in fiscal 2018.

Breakdown of Vehicles Owned in Japan

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Electric Hybrid Natural gas Clean diesel Other Total
16 1,204 2,858 8,001 14,803 26,882
  • Electric truck

    Electric truck

  • Hybrid truck

    Hybrid truck

  • Natural gas truck

    Natural gas truck

Modal Shift

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.

Transportation by Train

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.

Super Rail Cargo express railway container cars

"Super Rail Cargo" express railway container cars

"Support for Eco Rail Mark"

Sagawa Express has adopted the Eco Rail Mark and supports the Eco Rail Mark as a logistics business operator involved in transportation and distribution.
The Eco Rail Mark is a mark given to products and catalogs if companies and their products are recognized for being engaged in environmentally friendly railway transportation.

Eco Rail Mark
Transportation by Ship

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. In fiscal 2018, the "Modal Shift Utilizing Marine Transportation" implemented with the cooperation of MOL Ferry Co., Ltd. and Daito Jitsugyo K.K. was approved as an efficient and environmentally friendly action pursuant to the Act on Advancement of Integration and Streaming of the Distribution Business. This has had the effect of reducing CO2 emissions by 52.1% and drivers' driving time by 90% compared to before the implementation of the modal shift.

Transportation by Ship

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Encouraging Transition to LED Lighting

Sagawa Express is encouraging the introduction of LED lighting at sales offices and large distribution facilities. We have been able to effectively reduce CO2 emissions by roughly 13,000t (approx. 19,000 MW) by introducing LED lighting at 229 locations (+ 11 locations year-on-year) in fiscal 2018.

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