SGH

Diversity and Inclusion

Policy

The SG Holdings Group works to promote D&I as a way to grow as a company with a competitive edge that respects diverse values, with a flexible decision-making process and a variety of perspectives. Right now, our company is working hard to do more with a diverse group of employees who are female, or from other countries, or who have disabilities, or who are senior citizens. We want to create a workplace environment where all of these people feel comfortable and enthusiastic about working. Even within the area of diversity, we view promoting the participation of women as a particularly important issue. We want to expand opportunities for women, and promote their promotion to managerial positions. Through a variety of initiatives, we are hoping that readying the proper environment and systems, and reforming our corporate culture, will help women generate new business for us.

Systems

Our WakuWaku Women's Project, which is aimed squarely at promoting women's place in the workplace, started in 2011. It is now a part of every part of our business, and our Group-wide goal is to increase the share of our earnings generated by women to 30%. Another of our goals is, as a top runner in the logistics industry, to make use of women to reform our corporate culture, and thereby to enhance the position of our industry.
To this end, each of the Group companies has set up a dedicated office or team as well as the head, promoters, and advisers. At each company, the dedicated office or department under its CEO as the head is joined by both men and women from both administrative and business departments. Depending on the size of the Group company, we are deploying D&I promotion people nationwide, with those in managerial or executive positions acting as advisers. We have built systems to ensure that this develops from the bottom up as well as top down.

Goals and Results

Boundary Medium- to Long-term Goals Fiscal 2020 Goals Fiscal 2019 Results
SG Holdings
Group
(Japan)
Percentage of female employees: 35%
(target for end of FY 2020)
Percentage of female employees: 35.0% 32.9%
Percentage of female managers: 10%
(target for end of FY 2020)
Percentage of female managers: 10.0% 8.6%
Appointment of female executives 2 persons
To meet government target for number of employees with disabilities
[Reference] The statutory rate mandated by the Ministry of Health, Labour and Welfare for companies in the private sector is 2.2% (as of April 1, 2020)
To meet government target for number of employees with disabilities 2.5%
Female Employee Ratio
Female Employee Ratio
Female Managers Ratio
Female Managers Ratio

Female Employee Ratio

Our core business, Sagawa Express, and Group companies in Japan, are taking steps so that people with outstanding capabilities join us as regular employees, promoting quasi-employees and partner employees to regular employees, and promoting the hiring of new graduates and mid-career workers, and we are experiencing robust growth.

Female Managers Ratio

We are actively encouraging women to become managers, and the percentage of female managers has been steadily growing. We will have to show more growth, though, to reach our final goal. We aim to promote the promotion of women to managerial positions by expanding the areas where women can work, and by supporting their careers.

Initiatives

Support Women's Careers and Address Changing Corporate Culture

A Day to Consider Diversity: SGH Diversity Day 2019

SGH Diversity Day 2019 was held February 4, 2020 for SG Holdings executive officers, Group company presidents, general managers and other employees as a way to promote diversity and inclusion (D&I). The participants engaged in discussions on various issues at each Group company based on the Group's next-generation D&I policy, Diversity Grand Design. The keynote speaker for the event was Work Life Balance Co., Ltd. Representative Director Yoshie Komuro, who spoke on how work style reform can be used as a management strategy. Following the speech, consultants from Work Life Balance led workstyle reform training sessions for general managers. These sessions delved deeper into methods of promoting work style reforms and the importance of creating a work atmosphere where all employees can strive ahead with peace of mind.

Support Women's Careers and Address Changing Corporate Culture

Expanding Occupational Opportunities for Women

We are actively striving to create an environment where women can proactively take up the types of jobs that have been primarily the domain of men.

Creating a Work Environment Friendly to Women

Sagawa Express has introduced swap body vehicles as a way of creating opportunities for a diverse group of employees, including women. In swap body vehicles, the cargo bed where the packages are loaded can be separated from the truck cab. The driver does not need to load or unload the freight from the vehicle. The cargo beds can simply be "swapped," and then the driver can set out for the destination. The driver can concentrate solely on driving, which opens up these kinds of jobs for women and others who might be at a disadvantage when it comes to physical labor.
SG Motors, which is in the business of vehicle maintenance and sales, already employs female mechanics. In instances that require manual labor, for example, to lift heavy items, special tools can be supplied that might allow women to perform these tasks without undue wear-and-tear on their bodies. We want to create a work environment that allows employees to work in a variety of areas, without regard to gender.

Creating a Work Environment Friendly to Women

Women's Career Support Training

The Group conducts Women's Career Support Training led by external instructors for female employees who are management candidates. The women learned the importance of diversity and business skills through discussion with executives and group managers. Taking hints from the discussions with active female managers, these women also created a vision for their own individual careers and action targets to realize that vision.

Diversity Awards

Since fiscal 2013, SG Holdings Group has recognized exceptional internal initiatives to promote D&I with the WakuWaku Award. The award initially recognized only female employees, but in fiscal 2018 the scope was expanded and the name changed to Diversity Award. For the Diversity Award 2019, 102 initiatives were considered in the two categories of Women's Activities Promotion and Work Style Reforms. The preliminary review narrowed down the list to six finalists.

・Grand Prize

Women's Activities Promotion

◆Recipient:Sagawa Global Logistics, Kyushu Branch

◆Initiative:New Sagawa service for repeat mail-order businesses
SAGAWA TAOPack(TsuhanAll in OnePackage)

Description:Two female employees led the development of a new service platform for repeat mail-order businesses. The new platform enhanced customer convenience and expanded their sales by providing a thorough solution featuring higher efficiency and better quality.

Work Style Reforms

◆Recipient:Sagawa Express, Kyushu Branch, North Kyushu sales office

◆Initiative:Making progress through a new diversity strategy: "Continue in North Kyushu Project"

◆Description:The initiative included programs to support disabled employees seeking new work challenges, along with efforts to generate new work by raising the retention rate of global employees . The office also strove to raise retention rates and secure a stable workforce through such measures as introducing a new collection and delivery work system with flextime and shortened working hours.

Diversity Awards

In-house Magazine "HITO" Launched for Group-wide Communication

SG Holdings Group strives to create workplaces in which employees can thrive and continue to do great work. As part of this effort, the Group launched publication of in-house employee magazine "HITO" in March 2019. The magazine features articles on both work life and home life with the goal of promoting exciting, fulfilling ways of life. Articles feature employees with interesting life events to share, along with case studies on work style reforms at other companies.

HITO

LGBT Seminar

SG Holdings Group held an online LGBT seminar in June 2020 as part of its D&I promotion. The seminar's goals were to promote diversity throughout the Group and encourage a better understanding of LGBT, which has attracted greater public interest. The seminar focused on developing a fundamental understanding of the issues among the D&I core members at each Group company, thereby leading to further initiatives to promote an understanding among all employees of the Group. The seminar was attended by approximately 50 employees and was joined by external lecturers who discussed LGBT issues, along with two individuals who shared their life stories. These discussions served as a strong foundation for future Group initiatives.

Supporting Work-life Management

The Group promotes workplace culture reform and system reforms in order to respond flexibly to the diverse values and family circumstances of employees. By delving deeper into these questions, we want to allow employees the chance to choose from among a variety of working styles, so they will want to work, productively and of their own accord, and we think this will show strong results.

Systems to Support Work-life Management

We have instituted systems to support employees who are working in various stages of their lives.

Overview of Our Systems
Marriage Pregnancy Birth Childcare Nursing care
Systems Leave before birth
Six weeks before due date
Leave after birth
Eight weeks after birth
Childcare leave
Until the day before child's third birthday
Leave for nursing care
Up to 180 days
Seven days marriage holiday Birth leave
Three days for men
Care leave
10 days per year
Care leave
10 days per year
Reduced working hours Reduced working hours
Until the end of fourth grade
Reduced working hours
Three years, from date of initiation
Treatment of various conditions Exemption from late-night work hours Exemption from late-night work hours
Adjustment of break time Less overtime work Less overtime work
Going to hospital during work hours Exemption from overtime work Exemption from overtime work
Wedding gift (cash) Relaxation of commuting
Adjustment of up to one hour per day, up or down
Birth gift SGH Kids Garden: nursery at workplace

As of March 31, 2020

Efforts to Support Work-life Management

Supporting Childcare

We have published the "Working Papa and Mama Guide," our guidebook for supporting childcare (one version for employees, another for managers), detailing the support systems the company offers for childbirth and child-rearing. We want to create an environment where people are comfortable continuing to work. In recent years, to encourage male employees to take time off for child-rearing, we added pages describing the company's support for male employees to care for children.

Supporting childcare guidebook
Supporting childcare guidebook for employees (right), for managers (left)

"SGH Kids Garden" In-house Nursery School

The Group opened the SGH Kids Garden, our first in-house nursery school, in April 2017. Its goals are to solve the problem of children left on waiting lists to enter nursery schools, which has become a major social issue, promote the active participation of women in society, and support work-life balance. At the nursery school, we provide a safe environment, and education at the same level as a licensed nursery school, to support Group employees returning to work, and to help support the spouses of employees who also wish to return to work.

In-house Nursery School

Encouraging Employees to Take Vacation and Offering a Variety of Vacation Schemes

Sagawa Advance has introduced new systems to improve employee health and welfare. The company has designated one weekday a "no-overtime day" while encouraging employees to take paid leave by introducing a new system based on hourly paid leave instead of days. Among its initiatives to promote preventive healthcare, the company offers free colon cancer screening and other tests while holding walking events to encourage regular exercise. Based on its health declaration, Sagawa Advance has made health a management priority by promoting collaborate efforts among management, the Health Insurance Society, and employees. The company's efforts were distinguished by its inclusion in the Certified Health & Productivity Management Organization Recognition Program 2020, White 500, jointly sponsored by the Ministry of Economy, Trade, and Industry and Nippon Kenko Kaigi to recognize companies with exceptional employee health management programs.

Vacation Scheme

Promoting a Variety of Working Styles by Encouraging Flextime

For two months, in summer and winter, SGH Global Japan participated in the Jisa Biz program sponsored by the Tokyo Metropolitan Government, promoting staggered work hours. Employees were permitted to choose their own working hours, fitting their individual circumstances. Four work patterns were set up, starting up to two hours before the normal starting time, allowing people to commute at times when trains are less crowded, making it easier for them to get to work. We got good responses from people who actually took advantage of this system: "I was able to commute early, when the trains are empty, and I could get a seat. It was great!" "I was able to spend more time with my family." "This was a good opportunity for me to think about how I work."

Jisa Biz
Jisa Biz

Workplaces Where Global Employees Are Active

SG Motors, whose business is vehicle maintenance, manufacturing, and sales, employs foreign exchange students who have studied at auto mechanics technical schools in Japan as auto mechanics. As of July 2020, the number of global employees working as auto mechanics was 85 from eight countries, or about 23% of all automotive mechanics employed at SG Motors.

Overview of Employees, by Nationality

  • Vietnam
  • China
  • Nepal
  • Myanmar
  • Indonesia
  • Peru
  • Sri Lanka
  • Taiwan

No. of Foreign Mechanics at SG Motors

No. of Foreign Mechanics at SG Motors

Workplaces Employing People with Disabilities

We are also working to create an environment in which persons with disabilities can manifest their individuality and capacities. We provide opportunities to learn about the employment of the disabled. The rate of persons with disabilities employed by the Group in Japan is 2.46% (as of June 1, 2019).

Hosting Special Education Students for Work Experience

Sagawa Global Logistics provides workplace experience in partnership with special schools in each region.

First-year students of high school become familiar with logistics operations through visits to workplaces. In the second year and beyond, they undergo practical training in preparation for future employment. Through these activities, the Group hires several students each year (five in April 2020). Moreover, since alumni look after younger employees from the same school, guardians tell us a comfortable work environment is created that allows them to feel a sense of security.

Creating a Work Environment Friendly to Seniors

Cases of Older People Working at Sagawa Global Logistics

The shortage of labor is getting more serious, becoming a real social issue, while demand for logistics services is growing every year. The warehouse sector is no exception. Sagawa Global Logistics is in the logistics business in Japan. In its workplaces, it directly employs many older workers, alongside workers from the Silver Human Resources Center, and others from subcontractors. Many people age 60 and over bring their abundance of experience and make a valuable contribution.

Many workers age 65 and above are also receiving pensions, and need to adjust their shifts to meet their own needs. This has advantages for both sides, because the workload in the warehouse ebbs and flows with the seasons, depending on the volume of commerce.

At the operations center, senior workers are involved mainly in distribution process procedures such as picking, inspection, price-tagging, and packing. The average work history of the roughly 500 workers age 60 and above is long, at about 10 years. Because they can be relied on to work in shifts, we think they will be an even more important component of our workforce going forward.

The Silver HR Center
What is the Silver HR Center?
The Silver HR Center is a public-service corporation with branches certified by prefectural governors, which finds temporary, short-term, or light jobs that are closely tied to their localities and suitable for senior citizens. It accepts requests from companies, families and public bodies, and assigns members, who are generally at least 60 years of age.

In Kitakyushu, Sagawa Express Offers Delivery Services Staffed by Silver Employees

At the Sagawa Express Kitakyushu Sales Office, some delivery services that do not require a vehicle are performed by personnel assigned by the Kitakyushu Silver HR Center.

This initiative began in August 2017 as a three-party alliance. The Kitakyushu Silver HR Center and the city government wanted to find jobs for senior citizens, while the Kitakyushu Sales Office of Sagawa Express was facing difficulty because the declining population was making it hard to hire sufficient personnel. Working with outside partners to offer delivery services started as a part of Sagawa's solution to its problem. The delivery personnel use hand carts and bicycles to deliver mail and small packages from delivery depots, small logistics sites. The city is divided into very small service districts, so the depots work closely with customers in their immediate area. This results in a higher level of service, providing employment support for senior workers and achieving a high degree of customer satisfaction.

This initiative was recognized with the Grand Prize in the Work Style Reforms category in the Diversity Awards 2019, which is our internal commendation system to promote diverse working styles.

Results of Cooperation

Please see the linked ESG Data Book for the following information.

Human resources P16-17


Building an Organization of Diversity and Inclusion