Climate Change

Policies, Systems and Initiatives

Policies, systems and initiatives related to climate change

Goals and Results

Boundary	Medium- to Long-term Goal	FY2020 Goals	FY2019 Goals	FY2019 Results
SG Holdings Group	Reduction of CO₂ throughout the entire Group	Sagawa Express: CO₂ emissions (total) -1.0% by the end of FY2020	Sagawa Express: CO₂ emissions (total) -1.0% by the end of FY2019	Achieved target at -2.2% year-on-year
SG Holdings Group	Reduction of CO₂ throughout the entire Group	SG Moving: CO₂ emissions (total) -1.0% by the end of FY2020	SG Moving: CO₂emissions (total) -1.0% by the end of FY2019	Achieved target at -5.0% year-on-year

Greenhouse gas (GHG) emissions1 2 (Units: t-CO₂)

(Units: t-CO₂)

	Boundary	FY2015	FY2016	FY2017	FY2018	FY2019*4
Scope 1 *5 (Direct emissions,breakdown shown separately)	Sagawa Express	275,306	280,818	281,885	272,343	269,251
	EXPOLANKA	655	581	472	745	566
	Other	7,384	7,630	18,254	12,492	12,274
	Total	283,345	289,029	300,611	285,580	282,091
Scope 2 *5 (Indirect emissions)	Sagawa Express	125,305	124,304	105,523	105,310	100,182
	EXPOLANKA	872	679	669	620	2,249
	Other	37,425	34,787	31,609	28,945	26,413
	Total	163,602	159,770	137,801	134,875	128,844
Scope 3 *5 (Other indirect emissions,breakdown shown separately)	Sagawa Express	769,595	770,737	806,074	878,300	962,084
	EXPOLANKA	3,941	6,054	6,482	9,159	1,028
	Other	-	-	-	-	399,355
	Total	773,536	776,791	812,556	887,459	1,362,467
Scope 1+2	Sagawa Express	400,611	405,122	387,408	377,653	369,433
	EXPOLANKA	1,527	1,260	1,141	1,365	2,815
	Other	44,809	42,417	49,864	41,436	38,687
	Total	446,947	448,799	438,413	420,454	410,935
GHG emission intensities (consolidated operating revenues)*3		0.47	0.48	0.42	0.38	0.35
Scope 1+2+3	Sagawa Express	1,170,206	1,175,859	1,193,482	1,255,953	1,331,517
	EXPOLANKA	5,468	7,314	7,623	10,524	3,843
	Other	44,809	42,417	49,864	41,436	438,042
	Total	1,220,483	1,225,590	1,250,969	1,307,913	1,773,402

*1Numbers are rounded down to the nearest unit and the sum of the data of the Group Companies may not match the total (same as in the following tables). Data on Sagawa Express has undergone third-party validation by the Japan Management Association GHG Certification Center (JMACC).The validation report is shown on pages 26-27.

*2CO₂ emissions by Sagawa Express in FY2019 were 369,433 tons (Scope 1+2). If carbon taxes in Japan are raised to the highest level in the world, a cost of 5,160 million yen (13,970 yen x 369,433 tons) will arise (Calculated based on the figures for Sweden which are the highest in the world at USD127 / t-CO₂ and USD1=110 yen).

*3GHG emission intensities: Scope1+2 (t-CO₂) / consolidated operating revenues (millions of yen)

*4EXPOLANKA's FY2019 figures are provisional and the finalized figures will be disclosed at a later date.

*5Scope of "Other": For Scope1 and Scope2, domestic operating companies (excluding Sagawa Humony) are tallied from FY2015 to FY2016. SG Sagawa Ameroid was added to the total in 2017. Sagawa Humony was added to the total in 2018. Scope2 FY2019 includes SG Sagawa Vietnam (only 2 warehouses). Scope3 FY2019 includes four companies: World Supply, Sagawa Global Logistics, SG Reality and SG Motors.

Scope 1 Emissions

(Units:t-CO₂)

Greenhouse gases	FY2019
CO₂	262,724
CH4	0
N₂O	0
HFCs	6,527
PFCs	0
SF6	0
NF3	0

*The scope of tallying is Sagawa Express. The method of calculation of HFCs is based on the IPCC Fourth Assessment Report (AR4-50 year values). Other values are based on the Ministry of the Environment's "List of Calculation Methods and Emission Coefficients in Calculation, Reporting and Publication Systems."

Scope 3 CO₂ Emissions

(Units: t-CO₂)

Scope 3		FY2017	FY2018	FY2019
Cat.1	Purchased products and services	723,759	777,716	838,907
Cat.2	Capital goods	29,552	48,150	43,431
Cat.3	Fuel and energy	33,405	31,868	57,746
Cat.4	Transportation and delivery (upstream)	Included in calculation of Scope 1
Cat.5	Waste from operations	1,948	2,429	2,298
Cat.6	Business travel	1,674	1,839	2,474
Cat.7	Employee commuting	14,439	15,066	15,883
Cat.8	Leased assets (upstream)	Included in calculation of Scope 1+2
Cat.9	Transportation and delivery (downstream)	Included in calculation of Scope 1+2
Cat.10	Processing of products sold	Not applicable
Cat.11	Use of products sold	Not applicable
Cat.12	Waste from products sold	1,297	1,231	1,346
Cat.13	Leased assets (downstream)	Included in calculation of Scope 1+2
Cat.14	Franchises	Not applicable
Cat.15	Investment	Not applicable
Total		806,074	878,300	962,084

*The scope of tallying is Sagawa Express. See Sagawa Express's environment data page (http://www.sagawa-exp.co.jp/csr/eco/data-scope3.html) for details on the calculation method and conversion factors for Sagawa Express. Japanese text only.

Internal Carbon Price

Sagawa Express is implementing "environmental investment promotion measures" by utilizing the mechanism of internal carbon pricing, and is updating facilities to enable the reduction of greenhouse gases in Scope 2. (35,000 yen / ton-CO₂ (FY2018 power charges / Scope 2 CO₂ emissions)

Total Energy Input

			Unit	FY2015	FY2016	FY2017	FY2018	FY2019
Renewable energy	Electricity	Solar power generation	GJ	3,815	3,792	3,657	3,527	3,149
Renewable energy	Gas	Biogas	GJ	228	2,102	2,042	2,456	1,763
Non-renewable energy	Electricity		GJ	2,157,667	2,111,257	2,054,812	2,050,661	2,046,758
	Gas	City gas	GJ	855,136	845,002	797,937	685,895	536,738
		Propane	GJ	10,315	9,280	9,344	8,208	7,493
		LNG	GJ	-	-	-	999	1,256
	Fuel oil	Diesel	GJ	2,766,754	2,845,940	2,879,620	2,822,425	2,867,891
		Gasoline (Including high octane)	GJ	549,538	569,402	578,734	570,651	576,109
		Kerosene	GJ	4,649	5,703	5,768	4,931	4,665
		Heavy oil	GJ	3,519	4,692	4,340	3,910	4,223
Total			GJ	6,351,621	6,397,169	6,336,255	6,153,664	6,050,045

*The scope of tallying is Sagawa Express. See Sagawa Express's environment data page (http://www.sagawa-exp.co.jp/csr/eco/data.html#c01) for details on the calculation method and conversion factors for total energy input. Japanese text only.