Disclosure Based on TCFD Recommendations

Background of Initiatives

As the global transition to a carbon-free society progresses, the realization of sustainable management is becoming increasingly important for companies. The SG Holdings Group recognized its responsibility as a group of logistics companies handling social infrastructure, and expressed support for the Task Force on Climate-Related Financial Disclosures (TCFD) in 2019. Seeing climate change to be a serious issue for the Group, the Group began scenario analysis based on TCFD recommendations in July 2021. The Group established a “Decarbonization Vision” in 2022, has set CO2 emission reduction targets, and manages progress as metrics/targets for addressing climate change. The purpose of the analysis is to ascertain the risks and opportunities related to climate in business continuity, and to take measures based on the assumption of a variety of situations. In future, such efforts will continue in line with changes in social conditions and advancements in technology, and be merged with business strategy, included in risk management processes and utilized to engage in deeper internal and external communication.