SGH

Promoting Sustainable Procurement

3 GOOD HEALTH AND WELL-BEING 5 GENDER EQUALITY 7 AFFORDABLE AND CLEAN ENERGY 8 DECENT WORK AND ECONOMIC GROWTH

Awareness of Social Challenges

As the world becomes increasingly focused on the importance of respecting human rights and protecting the environment, companies must commit to sustainable business activities that extend throughout their entire supply chains, both domestically and internationally. The sustainable development goals (SDGs) set forth by the United Nations also call for revitalization of partnerships, stating that they "can only be realized with strong global partnerships and cooperation." The SG Holdings Group is a corporate group supported by many business partners (suppliers). Promoting sustainability activities throughout the entire supply chain not only contributes to the development of a sustainable society, but also our own development.

Policy

As a corporate group supported by many partners (suppliers), we believe that their continuity is one of the business issues faced by the Group. To ensure we can prosper alongside our business partners (suppliers), in 2014 we established the SG Holdings Group Business Partner Sustainability Guidelines, indicating the Group’s views on sustainability and corporate stance on procurement. These guidelines require business partners (suppliers) to understand and cooperate on seven items.

Business Partner Sustainability Guidelines

  • Legal compliance
    We will strictly comply with domestic and foreign laws, and carry out fair and impartial business activities based on corporate ethics.
  • 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.
  • 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.
  • 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.
  • 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.
  • 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.
  • 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 aiming to resolve any issues, and reviewing business with them if necessary.

Systems

Within the SG Holdings Group, Sagawa Advance 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

Initiatives

Raising Awareness of Safety in Long-haul Transport Partner Companies

SG Holdings Group has made the realization of a safe and secure transportation society one of its sustainability initiatives. Sagawa Express works with long-haul transport partner companies, its main business partners (suppliers), to engage in various initiatives to eliminate traffic accidents from society.

Item Details
National SG Long-Haul Transport Partner Company Meeting Monthly National SG Long-Haul Transport Partner Company Meetings are held via web conferencing to confirm safety-related indicators and reminders, etc. with managers and administrators of long-haul transport partner companies.
Long-haul Transport Terminal Inspections Long-haul Transport Terminal Inspections are conducted annually for long-haul transport partner company drivers who arrive at Sagawa Express sales offices and hub centers. Drivers receive encouragement and undergo routine inspections, etc.
National General Meeting of the SG Long-Haul Transport Partners Association The SG Long-Haul Transport Partners Association, which is organized by long-haul transport partner companies nationwide, holds a national conference once a year, bringing together managers and administrators from each company.