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ENVIRONMENT
Greenhouse Gas Countermeasures

Initiatives

Environmentally Friendly Transportation/Delivery

The SG Holdings Group is working to reduce CO2 emissions throughout the entire transportation/delivery system.
The Group is promoting the introduction of environmentally friendly vehicles, a modal shift to trains and ships with less environmental impact, improved distribution efficiency by utilizing transfer centers and distribution centers (SRC) and collection and delivery shipments by bicycle or hand carts from a near-by service center.
As a result, CO2 emissions in fiscal 2017 were roughly 423,455 tons* (96.4% compared to fiscal 2016). In addition, Sagawa Express was one of the first in the logistics industry to publicly disclose information on "own emissions (Scope 1, Scope 2)" and "other indirect emissions (Scope 3)" to visualize emissions throughout the entire supply chain.

*Total of Scope 1 and Scope 2 for domestic Group companies (excluding Sagawa Humony)

Environmentally Friendly Transportation/Delivery

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Introduction of Environmentally Friendly Vehicles

The SG Holdings Group owns a total of 10,301 environmentally friendly vehicles (roughly 40% of the total number) that include natural gas trucks, hybrid trucks, electric vehicles and post-new long-term regulation compliant vehicles. These include 3,423 natural gas trucks and 596 hybrid trucks. Natural gas trucks reduce emissions such as CO2, NOx (nitrous oxides) and PM (particulate matter), and hybrid trucks are able to reduce fuel consumption and CO2 emissions.

Also, Sagawa Express has private-use natural gas filling stations set up in 22 locations across the country, and is independently promoting infrastructure arrangements. Furthermore, since June 2018, the company 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. LNG trucks enable a reduction of CO2 emissions by around 10% compared to ordinary diesel trucks, and are characterized by having a shorter refill time and longer travel distance than CNG vehicles.

Number of Environmentally Friendly Vehicles 10,301 Vehicles
Natural gas truck

Natural gas truck

Hybrid truck

Hybrid truck

Electric vehicle

Electric vehicle

Breakdown of Trucks Owned

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Environmentally Friendly vehicles Other Total
Natural gas Hybrid Electric Post-new long-term regulation compliant vehicles
3,423 596 16 6,266 15,563 25,864

*Does not include vehicles owned by overseas corporations.

Modal Shift

Modal shift refers to switching from the transportation of freight by truck to transportation by train and ship, which have a lower environmental impact. Sagawa Express has been carrying out door-to-door delivery transport via Super Rail Cargo express railway container cars developed jointly with Japan Freight Railway Company since 2004. 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 of the two trains traveling to and from Tokyo and Osaka is equivalent to 56 ten-ton trucks. This modal shift is also largely driving the effectiveness in reducing the environmental impact such as lowering CO2 emissions.

Super Rail Cargo

"Super Rail Cargo" express railway container cars

Total volume to and from Tokyo and Osaka by train Equivalent to 56 ten-ton trucks
ColumnSupport 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

Reduction of Environmental Impact through Cross-industry Modal Shift

In collaboration with Toyota Transportation, Sagawa Express began a cross-industry modal shift utilizing the TOYOTA LONGPASS EXPRESS in November 2017.
The TOYOTA LONGPASS EXPRESS is a dedicated freight train operated by Toyota Transportation along approximately 900 km between Tokai in Aichi and Morioka in Iwate for transporting automotive parts produced in plants in the Chukyo region to Toyota Motor East Japan's Iwate plant. Sagawa Express has made the shift to use spare space on the freight train for some of the freight being delivered from the Chubu region to the Tohoku region. All transportation between Chubu and Tohoku used to rely on large trucks, which required 23 to 24 trucks a day. By transporting one truckload of goods by train, it is estimated that truck driver work hours can be reduced by approximately 1,700 hours and CO2 emissions can be reduced by 83.5 tons. This initiative was recognized as a comprehensive streamlining plan under the Revised Act on Advancement of Integration and Streamlining of Distribution Business due to being able to realize energy savings and reduction of environmental impact. We are endeavoring to implement work style reform for truck drivers and reduce environmental impact through collaboration not only in the logistics industry but also across other industries.

Mark for Comprehensive Streamlining Plan Certification

Mark for Comprehensive Streamlining Plan Certification

Before shift → After shift

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Improvement of Efficiency of Transport by Transfer Centers

Sagawa Express is engaged in improving the efficiency of the transport process as part of the creation of the network supporting transport. Packages collected in each region are aggregated in transfer centers (24 nationwide) and delivered together to their respective destinations. We are striving to reduce the number of trucks used, limit CO2 emissions and prevent air pollution.

Higashi-matsuyama Center (Higashi-matsuyama, Saitama)

Higashi-matsuyama Center (Higashi-matsuyama, Saitama)

Transfer Centers Transport Flowchart
No transfer center:It is necessary to carry packages directly from each region. Establishment of transfer centers:Packages are aggregated from each region in a transfer center and carried together to each destination.

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Promotion of Greater Logistics Efficiency

Sagawa Distribution Center (SRC)

Sagawa Global Logistics operates and administers Sagawa Distribution Centers (Sagawa Ryutsu Centers = SRCs), logistics facilities directly connected to Sagawa Express Sales Offices. SRC centrally manages products and conducts operations such as storage and logistics processes. We are saving energy and limiting emissions by eliminating truck transport between each process. Furthermore, we are promoting recycling by ensuring the separate collection of waste materials generated in distribution processes. In addition, we are actively engaged in the reduction of environmental impact such as proposing packing materials using environmentally friendly materials.

SRC Transport Flowchart
Conventional Distribution
Distribution Using the SRC Model

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Establishment of Service Centers

Sagawa Express has established Service Centers (SC) that perform collection and distribution without using trucks such as with hand carts or bicycles at 324 locations throughout Japan. Each location is able to limit the use of three to five vehicles and reduce CO2 emissions and other air pollutants of 1,500 vehicles across all of these service centers. In addition, Carbon Neutral Certification* as a part of the carbon offsetting policy of the Ministry of the Environment has been granted to six business sites: the Tokyo Station Yaesu Exit Service Center, the Kyoto Shijo Takakura Service Center, the Hakata Ekimae 1-chome Service Center, Tokyo Service Center, Gion Sagawa Express Service Center, and Kyoto (Fuyacho) delivery Center.

*Carbon offsetting is an initiative to balance the amount of CO2 that is reduced or absorbed in another area with CO2 emissions in business activities.

Service Center

Service Center

Carbon Neutral Certification and Attachment

Carbon Neutral Certification and Attachment

Service Center Flowchart
No Service Centers
With Service Center Established

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ColumnWon the Minister of the Environment Award at the Carbon Offset Awards

Sagawa Express received the Minister of the Environment award at the carbon offset awards held by the Ministry of the Environment in December 2017. The award is given to recognize organizations with excellent carbon offset initiatives for supporting the realization of a low carbon society. This award was given in recognition of the initiative to provide "Carbon Neutral Package Delivery Services." This initiative realized carbon neutrality through operations contributing to the reduction of CO2 by transporting packages using hand carts and bicycles instead of trucks and the use of the credits of Sagawa Forestry to offset CO2 that is difficult to reduce even when engaged in active CO2 reductions. These have been implemented in six locations nationwide, and Carbon Neutral Certification has been acquired under the Ministry of the Environment's carbon offset system. Furthermore, we are also conducting activities to spread carbon offsetting among customers in an effort to actively realize a low carbon society.

The Industry's First Carbon Neutral Package Delivery Services
The Industry's First Carbon Neutral Package Delivery Services

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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. This prevents wasteful fuel consumption and reduces emissions.

Wearing a key chain

Wearing a key chain

SG Sagawa Ameroid's "Idling-Stop Action"

SG Sagawa Ameroid in Singapore strives to reduce greenhouse gas emission including CO2 by turning off engines while vehicles stop: "the idling-stop action." The company provides drivers an opportunity to realize the negative impact that the idling may cause on the environment and its business, and requests them not to leave the engine idling.

  • SG Sagawa Ameroid's
  • SG Sagawa Ameroid's
  • SG Sagawa Ameroid's

Educational material (sample)

ColumnSupport for the COOL CHOICE campaign encouraging the receipt of packages the first time

Sagawa Express and SG Moving support the "COOL CHOICE campaign encouraging the receipt of packages the first time - Everyone's project to prevent re-delivery of packages" run by the Ministry of the Environment. The project broadly conveys the social loss caused by increased CO2 emissions and long working hours due to re-delivery and introduces a variety of receipt services to people who use package delivery services. We will cooperate with resolving the problem from a delivery operator's perspective.

Support for the COOL CHOICE campaign encouraging the receipt of packages the first time

Encouraging Transition to LED Lighting

Sagawa Express is encouraging the introduction of LED lighting at sales offices and large logistics facilities. We have been able to effectively reduce CO2 emissions by roughly 12,300t (approx. 17,600 MW) by introducing LED lighting at 218 locations (+ 87 locations year-on-year) in fiscal 2017.

CO2 Reduction by Introducing LED Lighting Approx. 12,300t-CO2 by fiscal 2017

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