SGH

Promoting Sustainable Procurement

Awareness of Social Challenges

As calls for companies to address human rights and the environment increase globally, it has become necessary to engage in sustainable business activities throughout the entire supply chain in Japan and abroad. 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 more than 20,000 business partners (suppliers) (as of March 31, 2020). Promoting CSR 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 more than 20,000 partner companies(as of March 31, 2020), 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

  • 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 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

Boundary Medium- to Long-term Goals Fiscal 2019 Results
SG Holdings Group Dissemination and raising awareness of the SG Holdings Group "Business Partner CSR Guidelines" among business partners (suppliers) Based on the Business Partner Management Rules, we held the Business Partner Selection Committee to approve new business partners and prevent business relations with inappropriate parties and antisocial forces.

Initiatives

Management

The SG Holdings Group has established the "Business Partner CSR Guidelines" and works to share a common awareness with business partners. Regarding surveys of Group companies in Japan conducted in fiscal 2018 to determine CSR management of business partners, the results showed that some Group companies were utilizing the guidelines by distributing them to business partners and in other ways. Furthermore, it was observed that the content of the guidelines needed to be periodically reviewed to fully respond to the current demands from society. The Group is taking initiatives to follow up with these two issues.

Furthermore, we operate a Business Partner Selection Committee to prevent relations with antisocial forces and the confirm the credit of business partners. We plan to incorporate sustainability into these management processes in the future.

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.

Item Details Fiscal 2019 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. Implemented once
Long-haul Transport Partner
Company Safety Seminars
The management of long-haul transport partner association companies were invited to seminars on safety management training and practical skill sessions required by truck operators. Implemented once
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
Executive committee, SG long-haul transport partner association National conferences with management of long-haul transportation partner companies nationwide are held annually Implemented once
Theme: Sagawa Express's long-haul transportation strategy