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SOCIAL
Management and Raising Awareness
of Business Partners

Policy

As a corporate group supported by more than 16,000 partner companies, we believe that the continuity of partner companies is one of the business issues faced by the SG Holdings Group. To ensure the prosperity of our business partners (suppliers), in 2014 we 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.

Business Partner CSR Guidelines

  • 1. Legal compliance

    We will strictly comply with domestic and foreign laws, and carry out fair and impartial business activities based on corporate ethics.
  • 2. Maintenance and improvement of safety and security

    We will consider safety and security to be our highest-priority issues. We will make every effort to maintain and improve safety together with our business partners.
  • 3. Consideration for human rights and work environments

    We will respect basic human rights and ensure a safe and sanitary work environment. We will also strictly comply with any applicable regional laws.
  • 4. Fair trade transactions

    We will carry out contact with our business partners with an attitude of sincerity, and provide opportunities for free and fair competition. We will strive for co-existence and mutual prosperity with our business partners by building proper relationships of trust.
  • 5. Consideration for the global environment

    We will take measures to prevent global warming and air pollution, and promote business activities with consideration for the global environment.
  • 6. Preservation of information security

    We will carry out strict management of confidential information and personal information related to our business activities, and take steps to prevent acts such as information leakage, theft, and manipulation.
  • 7. Coexistence with local communities

    We will aid in the development of domestic and overseas regional communities, and strive for co-existence with society together with our business partners.

Business Partner Management Rules

The SG Holdings Group has established "Business Partner Management Rules" and conducts business in a way that is appropriate for both business partners (suppliers) and the Group. The Business Partner Management Rules stipulate matters related to the selection, evaluation, and management of business partners, and the Business Partner Selection Committee performs selection based on these to commence business once the business partners have agreed with the Group's policy.
Furthermore, our policy also includes performing periodic evaluations of existing business partners, jointly resolving any issues, and reviewing business with them if necessary.

Business Partner Management Rules (Excerpt)
  • Article 1  Purpose
  • Article 2  Scope of application
  • Article 3  Definitions
  • Chapter 2  Management, selection, and evaluation of business partners
  • Article 4  Management of business partners
  • Article 5  Meetings of the business partner selection committee
  • Article 6  Selection of new business partners
  • Article 7  Evaluation of existing business partners

Systems

Within the SG Holdings Group, Sagawa Advance Co., Ltd. handles the procurement of all fuel such as gasoline along with various other materials commonly used across the entire Group. On the other hand, each Group company procures other materials used for itself and manages its logistics partner companies. In this way, we efficiently manage our suppliers, considering those related to the entire Group and those for individual operating units separately.

System for Management and Raising Awareness of Business Partners

Goals and Results

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Companies Medium- to Long-term Goals Fiscal 2018 Goals Fiscal 2018 Results
Japan

● Establishment of supplier management policy

● 100% consent to supplier management policy by suppliers

Investigation of state of utilization of Business Partner CSR Guidelines Conducted survey of Group companies in Japan
Overseas Commencement of evaluation of existing suppliers Business Partner Selection Committee performed evaluation of the scores of suppliers

Initiatives

Management

The SG Holdings Group has established the "Business Partner CSR Guidelines" and works to share a common awareness with business partners. In fiscal 2018, we conducted surveys of Group companies in Japan concerning CSR management of business partners. The results showed that some Group companies are utilizing the Business Partner CSR Guidelines such as distributing them to business partners, and it was observed that the content of the guidelines needs to be periodically reviewed to fully respond to the current demands from society.
Furthermore, in fiscal 2018 we started an annual evaluation of business partners overseas, to assess suppliers from the perspective of quality, price, and delivery. Going forward, we intend to add the perspective of sustainability in communicating with suppliers.
Based on these results, the SG Holdings Group will engage in the following initiatives in fiscal 2019.

Schedule of Initiatives in Fiscal 2019

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Item Details
Review of Business Partner CSR Guidelines Review of the content of the Business Partner CSR Guidelines from the perspective of demands from society and the importance for the Group, and make revisions if necessary.
Revision of Business Partner Management Rules Revision of rules to ask suppliers for consent to the Supplier Management Policy when commencing new business
Strengthening of communication with existing suppliers Continuing the implementation of supplier evaluation, and strengthening of communication related to suppliers' policies and initiatives on CSR

Raising Awareness

The SG Holdings Group holds "Providing safe and secure services" as a material CSR issue. Sagawa Express engages in a variety of initiatives such as safety patrols and seminars for long-haul transportation companies, main business partners (suppliers) of ours, in order to eliminate traffic accidents from society.

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Item Details Fiscal 2018 Results
Long-haul Transport Safety Patrols Sagawa Express Long-haul Transport Safety Patrols are performed once every year in order to prevent traffic accidents and vehicle breakdowns involving long-distance highway drivers. Midway roll calls and vehicle inspections are carried out in service areas and parking areas on major highways nationwide in an effort to raise awareness aimed at preventing vehicular accidents and vehicle breakdowns. Cancelled due to typhoon
Long-haul Transport Partner
Company Safety Seminars
Management executives of long-haul transportation partner companies are invited to share information on safety required for trucking business operators. In fiscal 2018, a seminar was conducted in Kanto and Kansai each.

● East Japan Implemented once
Theme: Safe driving

● West Japan Implemented once
Theme: Shortening of working hours

Long-haul Transport Terminal Inspections Long-haul Transport Terminal Inspections are conducted annually for long-haul transportation company drivers who arrive at Sagawa Express sales offices and hub centers. Drivers receive encouragement and routine inspections. Implemented once
SG long-haul transport partner association
Labor executive committee
National conferences with management of long-haul transportation partner companies nationwide are held annually Implemented once
Theme: Reflection on first half-year results and response during peak period

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