SGH

Climate Change

Decarbonization Vision

SG Holdings Group Decarbonization Vision

The SG Holdings Group will work with stakeholders to promote initiatives aimed at the realization of a carbon-free society. Vehicles : We will engage in the reduction of greenhouse gases emitted by vehicles. Facilities : We will promote the use of electricity produced by renewable energy sources. Supply Chain : We will engage in the reduction of emissions throughout the entire supply chain.

Backdrop to aiming for a carbon-free society

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 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 are gaining importance.

Reasons for the Group engaging in decarbonization

The transportation sector including private vehicles accounts for approximately 18%* 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.

*See the page on "CO2 Emissions in the Transportation Sector" on the Ministry of Land, Infrastructure, Transport and Tourism website. Figures are results for FY2019.

Emission reduction targets

Scope Target
Scope 1 and 2 2030: Reduce CO2 emissions by 46% (*Compared to FY2013)
2050: Aim to become carbon neutral
Scope 3 We will engage in the reduction of emissions throughout the entire supply chain.

Image of Scope 1 and 2 reductions

Image of Scope 1 and 2 reductions

Reduction level and prerequisites

Reduction level
In line with Japan's emission reduction targets
Including offsets using carbon credits, etc.
Prerequisites
Realization of the 2030 power generation mix* in the Sixth Strategic Energy Plan
(* 59% non-fossil: 36-38% renewable energy, 20-22% nuclear power, 1% hydrogen and ammonia)

*If there are changes in the reduction level of prerequisites due to social conditions, the emission reduction target may be reviewed.

Boundary

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

Monitoring

  • We will collect data on Scope 1, 2 and 3 to be verified by a third party.
  • Through monitoring, we will identify priority areas where CO2 reductions must be made, and take new reduction measures.

Emission reduction measures

Group Decarbonization Vision : Reduction of emissions from vehicles. Reduction of emissions from facilities. Reduction and absorption of emissions through the utilization of forest resources. Reduction measures contributing to a carbon-free society.
Item Major
Reduction of emissions from vehicles
  • Introduction of environmentally friendly vehicles (EVs, etc.)
  • Consideration of alternative fuels to fossil fuels, such as next-generation biofuels
  • Consideration of the form of vehicles including being more compact and lightweight
Reduction of emissions from facilities
  • Procurement and creation of renewable energy sources
  • Promotion of the introduction of energy-saving equipment (EMS, rechargeable batteries, air conditioning, lighting, etc.)
Reduction and absorption of emissions through the utilization of forest resources
  • Promotion of the public utility functions of forests including the function as a source of CO2 absorption through the expansion and sustained preservation of forests owned by the Group
  • Reduction of embodied carbon* through the promotion of use of wood in Group facilities
  • Creation and utilization of carbon offset credits including forest credits
Reduction measures contributing to a carbon-free society
  • Initiatives aimed at services and businesses providing decarbonization as added value
  • Implementation of communication to raise awareness of decarbonization among a wide range of stakeholders including employees (environmental action, video content, etc.)

*CO2 emitted during material procurement, processing, transportation, construction and disposal associated with construction.

Explanatory video

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

Systems Related to Climate Change

Person Responsible for Climate Change

In the SG Holdings Group, the director in charge is responsible for supervising the Group's policies and responses related to climate change Issues related to climate change. Issues related to climate change re reported and discussed in the CSR Committee with the representative director and directors as members, and reported to the Board of Directors as needed.

Risk Management

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

Actual CO2 emissions

CO2 emissions

*Please refer to the ESG Book for detailed data on greenhouse gas emissions.

Initiatives aimed at decarbonization

Reduction of emissions from vehicles

Introduction of environmentally friendly vehicles (EVs, etc.)

The SG Holdings Group is promoting the introduction of vehicles with little environmental impact. Sagawa Express plans to switch approximately 7,200 light vehicles to electric vehicles by 2030 as a target. The company is also introducing natural gas trucks, which have exhaust with fewer air pollutants (nitrous oxides, particulates, etc.), and hybrid trucks boasting good fuel consumption.
Furthermore, Sagawa Express has introduced the TRIKE CARGO towing-style electric power-assisted bicycle.

Breakdown of Vehicles Owned (Japan)

As of March 31, 2021

Electric Hybrid Natural gas Clean diesel Other Total
20 2,297 1,844 10,473 12,243 26,877
Electric truck (in trial operation)
Electric truck (in trial operation)
Hybrid truck
Hybrid truck
Natural gas truck
Natural gas truck

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. In October 2020, we commenced operation of the transfer center consolidating multiple transfer sites in the Kanto region into the "X FRONTIER" next-generation large-scale logistics center.

Transfer Centers (Sagawa Express)

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

Transfer Centers

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

Establishment of Service Centers

The Company has also introduced the TRIKE CARGO towing-style electric power-assisted bicycle in 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.

*Tokyo Metropolis and other areas (It differs depending on the ordinance of each prefecture.)

If a Service Center has been established

If a Service Center has been established
Service Center
Service Center
TRIKE CARGO
TRIKE CARGO

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
"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.

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% and drivers' driving time by 90% compared to transportation by truck.

Transportation by Ship

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.

Reduction of emissions from facilities

Introduction of carbon-free power at business sites

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. These efforts include SG Realty Wako (Wako City, Saitama), an environmentally friendly facility with a zero-energy design utilizing energy saving (use of LED lighting throughout the entire facility), energy generation (solar power generation system) and energy storage (rechargeable batteries). Although electricity derived from fossil fuels was used when there was a shortage in power generation due to factors such as insufficient sunlight in the past, the facility realized "zero CO2 emissions" by switching all electricity during shortages to electricity derived from renewable energy* from September 2020.

*Renewable energy

Energy that is permanently available in nature such as certain earth resources including sunlight, wind power and geothermal heat, in contrast to fossil energy using finite resources such as oil, coal and natural gas.

SG Realty Wako
SG Realty Wako
Certifications Obtained by SG Realty Wako Rank
DBJ Green Building Certification

★★★★★

5 stars (highest rank)

Building Energy-efficiency Labeling System (BELS)

★★★★★

5 stars (highest rank)

Reduction and absorption of emissions through the utilization of forest resources, etc.

Forest Preservation

Sagawa Forestry, which owns approximately 700 hectares of Sagawa Forests in Kochi and Tokushima prefectures, conducts a forestry business while cooperating with local forest associations to achieve its greatest mission of "protecting the forest cycle."

Reduction measures contributing to a carbon-free society

We will consider products and services leading 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 SDGs communication books, etc. as means of communication aimed at employees and other stakeholders.

Other initiatives for Climate Change

Measures to Adapt to Climate Change

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

Purpose
Prevention of heatstroke
  • Use of quick-dry uniforms and half pants
  • Capital investment in sales offices (fans and cool air fans)
BCP
  • Preparation of BCP charts for sales offices nationwide
  • Deployment of power supply vehicles in case of power outages/li>
BCM
  • Introduction of a "disaster response decision support service" utilizing climate data
  • Implementation of disaster drills assuming flooding

Direct Engagement with Climate Change Policymakers

Sagawa Express has concluded disaster agreements with the national government and local governments. In the event of a disaster, the company provides cooperation such as transportation of emergency supplies to evacuation centers and the handling of goods at supply centers based on the agreements. With regard to responses to disasters caused by the impact of climate change, Sagawa Express is proceeding to conclude disaster agreements with the national government, local governments nationwide and universities because greater coordination with local governments, etc. is essential for quickly conducting disaster relief activities utilizing the disaster response experience accumulated by the company.

Sagawa Express is also participating in a variety of external groups and projects to perform communication. The company participates in the Japan Climate Leaders Partnership (JCLP) as an executive member, providing the Japanese government with recommendations on the issue of climate change through dialogue with government officials, policymakers and industry groups. 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.


Promoting Environmentally Friendly Business Activities