The SG Holdings Group is aware of the following human rights risks in the logistics and transportation business

The SG Holdings Group conducts education by exchanging opinions through groupwork between employees on the identification of causes and the prevention of harassment, and aims to eradicate human rights violations.

The SG Holdings Group has established its policies on respect for human rights and the ethics and norms of employees in the "Code of Ethics and Conduct," and is working to spread awareness by posting it on the company Intranet. Furthermore, periodic training is conducted for all employees to foster correct understanding and awareness of the policies. Efforts are also being made to introduce this into first-year training and prevent the violation of human rights.

The SG Holdings Group conducts groupwide education by sharing Japanese and English versions of the Code of Ethics and Conduct on the company Intranet to ensure all employees understand it and are able to implement it in their duties.

In addition, the Singaporean overseas subsidiary SG Sagawa Ameroid Pte. Ltd. has created a handbook specifying policies on labor standards in accordance with the Ministry of Manpower's requirements. The policies are communicated to all employees, and the handbook has been uploaded to the company Intranet and translated into English and Chinese to enable employees to view it at any time. A system enabling all employees to check the Code of Ethics and Conduct monthly has been adopted.

At present, the SG Holdings Group has not signed the United Nations Global Compact, which is a global framework for realizing sustainable growth. However, by adhering to the ten principles of the United Nations Global Compact and implementing them in business activities, we would like to create a healthy corporate culture and contribute to the sustainable development of society. Major consolidated overseas subsidiary Expolanka signed the United Nations Global Compact in October 2018.

The United Nations Global Compact is a voluntary initiative in which companies and organizations participate to act as good members of society and realize sustainable growth by exhibiting responsible and creative leadership. See the website of the Global Compact Network (https://www.unglobalcompact.org/) for details.

The SG Holdings Group recognizes that "contribution to local communities" is essential for the sustained implementation and expansion of business activities. The Corporate Charter of Business Conduct states that we shall "contribute to the development of those countries; whilst respecting their cultures and customs, and taking into account the concerns of stakeholders." In addition, the Group Code of Ethics and Conduct that describes the specifics of this states "We shall serve toward the development of local communities in Japan and overseas, and aim to coexist with society as a whole." We see local communities to be important stakeholders and believes that creating good relationships is important.

Based on this view, we will conduct economic activities that contribute to the establishment and expansion of local socioeconomic infrastructure, and actively work to contribute to local communities and conduct community investment through business activities to contribute to the development of local communities. We will generate regular local jobs by locally hiring drivers and other staff in business operations in Japan and overseas, and contribute to the stimulation of local economies by procuring goods and services locally whenever possible.

The overseas subsidiary Expolanka Holdings PLC is locally hiring staff in Europe and the United States where it is especially expanding business. Furthermore, the number of local staff members exceeds the number of Japanese staff members in all locations other than the head office in Colombo, Sri Lanka.

The SG Holdings Group complies with labor laws and regulations on the payment of wages to employees, and has set wages at no less than the minimum wages specified by law. Some overseas subsidiaries have also established policies on wages and wage management concerning minimum wages.

The SG Holdings Group is continually proceeding to reduce the total overtime hours of employees by promoting the improvement of efficiency of each employee's work. Furthermore, the Group thoroughly implements time management aimed at the prevention of overwork. Overseas subsidiaries also comply with the labor laws and regulations of their respective countries, and are proceeding to reduce overtime work with the aim of preventing overwork in accordance with policies based on these.

The SG Holdings Group will contribute to the development of society in its business activities and corporate management with the aim of realizing the ten principles outlined in the United Nations Global Compact. Furthermore, the Group will sincerely promote the effective approval of the right of freedom of association of all workers and employers and collective bargaining rights.