Decarbonization Vision

SG Holdings Group Decarbonization Vision

The SG Holdings Group will work with stakeholders to promote initiatives aimed at the realization of a carbon-free society. Vehicles : We will engage in the reduction of greenhouse gases emitted by vehicles. Facilities : We will promote the use of electricity produced by renewable energy sources. Supply Chain : We will engage in the reduction of emissions throughout the entire supply chain.

Backdrop to aiming for a carbon-free society

In recent years, climate change has caused severe storms, droughts, water shortages and impact on ecosystems, and addressing these has become a pressing issue. As the trend of aiming toward carbon neutrality accelerates globally, the Paris Agreement was adopted in 2015, and Japan declared in 2020 that it would aim to become carbon neutral and realize a carbon-free society by 2050. As the transition to a carbon-free society progresses rapidly, initiatives to reduce emissions in companies have become important.

Reasons for the Group engaging in decarbonization

The transportation sector including private vehicles accounts for approximately 17%^* of CO₂ emissions in Japan, and we recognize that it has a significant impact. The transportation of passengers and freight included in the transportation sector is a function deeply related to many industries and everyday life, and reducing emissions in transportation is vital for the realization of a carbon-free society. The Group operates a comprehensive logistics business and uses many trucks. As a corporate group handling social infrastructure in the form of logistics, we recognize that it is our responsibility to take steps aimed at a carbon-free society, and believe that we should further strengthen measures to prevent global warming, which is an urgent issue faced by the world. We will cooperate with stakeholders to engage in the reduction of emissions throughout the entire supply chain.

*

Source: "Carbon Dioxide Emissions in the Transportation Sector, Ministry of Land, Infrastructure, Transport and Tourism website. Figures are results for FY2021.

Emission reduction targets

Scope	Target
Scope 1 and 2	2030: Reduce CO₂ emissions by 46% (*Compared to FY2013) 2050: Aim to become carbon neutral
Scope 3	We will engage in the reduction of emissions throughout the entire supply chain.

Image of Scope 1 and 2 reductions

CO2 equivalent emissions (1,000t-CO2) 2013:428(Base year) 2022:371 2030:231(-46%) 2050:0(Toward carbon neutrality)

Transition Plans (Domestic)

	Results of FY2024	Targets of FY2030
Adoption rate of environmentally friendly vehicles including EVs	92.1%	98%
Renewable energy rate to electricity consumption	56.4%	40%

Reduction level and prerequisites

Reduction level: In line with Japan's emission reduction targets
Including offsets using carbon credits, etc.
Prerequisites: Realization of the 2030 power generation mix^* in the Sixth Strategic Energy Plan
(* 59% non-fossil: 36-38% renewable energy, 20-22% nuclear power, 1% hydrogen and ammonia)

*

If there are changes in the national reduction level and prerequisites due to social conditions, the emission reduction target may be reviewed.

Boundary

The boundary shall be domestic Group companies (additional responses in overseas Group companies will be considered)

Monitoring

We will collect data on Scope 1, 2 and 3 to be verified by a third party.
Through monitoring, we will identify priority areas where CO₂ reductions must be made, and take new reduction measures.

Emission reduction measures

Group Decarbonization Vision : Reduction of emissions from vehicles. Reduction of emissions from facilities. Reduction and absorption of emissions through the utilization of forest resources. Reduction measures contributing to a carbon-free society.

Item	Major
Reduction of emissions from vehicles	Introduction of environmentally friendly vehicles (EVs, etc.) Consideration of alternative fuels to fossil fuels, such as next-generation biofuels Consideration of the form of vehicles including being more compact and lightweight
Reduction of emissions from facilities	Procurement and creation of renewable energy sources Promotion of the introduction of energy-saving equipment (EMS, rechargeable batteries, air conditioning, lighting, etc.)
Reduction and absorption of emissions through the utilization of forest resources	Promotion of the socially beneficial functions of forests including the function as a source of CO₂ absorption through the expansion and sustained preservation of forests owned by the Group Reduction of embodied carbon* through the promotion of use of wood in Group facilities Creation and utilization of carbon offset credits including forest credits
Reduction measures contributing to a carbon-free society	Initiatives aimed at services and businesses providing decarbonization as added value Implementation of communication to raise awareness of decarbonization among a wide range of stakeholders including employees (environmental action, video content, etc.)

*

CO₂ emitted during material procurement, processing, transportation, construction and disposal associated with construction.