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Materiality

Background and Objectives of Materiality Review

  • Our company identified and promoted material issues in 2022, but we have reviewed them in response to changes in the external environment and requests from stakeholders.
  • In reviewing our purpose, long-term vision 2035, and medium-term management plan 2030, we have redefined and revised our materiality as an initiative to realize our desired future state and management strategy.
  • As a crucial initiative for our business growth, continuously meeting stakeholder expectations, and creating sustainable value, we will promote this in conjunction with our management strategy.

Materiality Review Process

  • The review will be conducted using the following steps.
  • The decisions will be reported and discussed as needed at the Sustainability Committee, the Management Meeting, and the Board of Directors, and final approval will be granted by the Board of Directors.

STEP01

List of potential materiality themes

This list broadly extracts and lists various documents and guidelines, including those from SASB and GRI * , as well as anticipated external environmental changes and social issues in the medium to long term.

*SASB: Sustainability Accounting Standards Board, GRI: Global Reporting Initiative

STEP02

Importance Rating

① Evaluation from the company's perspective

  • We evaluate the importance of risks and opportunities for our company's management and business, our desired future state, and their relationship to the new medium-term management plan.
  • We conducted a survey and discussion with the heads of key business and administrative departments.

② Evaluation from a stakeholder perspective

  • We assess the importance of requests from internal and external stakeholders to our company.
  • We conducted interviews with institutional investors, business partners, outside directors, and employees.
  • We also take into consideration the significant impact our company has on the environment and society.

STEP03

Materiality proposal review

Based on the evaluation results from STEP ②, identify priority issues (≒materiality) that should be addressed, focusing on themes of high importance.

STEP04

Examination of approaches, measures, and goals for each materiality.

For each materiality identified in STEP 3, the relevant departments will consider the approach, measures, and goals.

Overview of the new materiality

As part of our efforts to realize our purpose, long-term vision 2035, and medium-term management plan 2030, we will continue to promote and manage progress, as well as disclose information and engage in dialogue.

Materiality risk opportunity Approach
Promoting projects that contribute to solving social issues
  • In acquiring potential business opportunities, being at a disadvantage compared to other companies
  • Developing and creating businesses that capture new customer needs and markets.
  • Gaining a competitive advantage through pioneering efforts
  • By leveraging our strengths to solve problems, we aim to simultaneously achieve business growth and contribute to the realization of a sustainable society.
Contribution to carbon neutrality (CN)
  • Increased costs of carbon taxes, etc.
  • Loss of business opportunities due to inability to meet reduction requests from customers, etc., and a decline in ESG ratings and reputation.
  • Carbon tax: Improving cost competitiveness through proactive measures against rising energy costs.
  • By proactively addressing customer requests for Scope 3 reductions, we can improve our reputation and expand our order opportunities.
  • From an ESG perspective, we aim to gain the approval and support of investors, customers, and others, thereby reducing the cost of capital and building lasting relationships.
  • Environmental investments in logistics facilities and reduction of our own CO2 emissions through procurement of renewable energy-derived electricity (Scope 1, 2)
  • We will promote CO2 reduction related to customer transportation through measures such as responding to modal shift (Scope 3).
Ensuring the safety and quality of the service
  • Loss of revenue, damage to social credibility, and compensation due to service delays and business interruptions caused by accidents, etc.
  • Disruptions to the logistics network due to heavy rain, earthquakes, and typhoons, and business suspension in the event that appropriate measures cannot be taken.
  • Business disruption due to aging infrastructure, vehicle and equipment failures.
  • Inability to comply with emissions and environmental regulations may result in additional costs and business interruptions.
  • By ensuring a competitive advantage through improved safety and reliability, and differentiating ourselves from competitors, we will highlight our superior services in accident prevention and quality control.
  • By providing stable service even during disasters, we have gained the trust of our customers.
  • Improving the working environment leads to increased employee satisfaction and productivity, contributing to talent acquisition and reduced employee turnover.
  • Disaster prevention and mitigation at the site
  • Efforts to prevent quality-related accidents
  • Strengthening company-wide resilience
Advanced governance
  • Inadequate governance, human rights, and compliance measures directly lead to legal violations and litigation risks.
  • Insufficient disclosure can lead to a loss of stakeholder trust and a decline in ESG ratings and reputation.
  • By continuing to strengthen and improve governance, we will maintain sound and efficient management.
  • By strengthening organizational governance and information disclosure, we aim to gain the trust of customers, investors, and regulators, and secure a long-term competitive advantage.
  • From an ESG perspective, we aim to gain the approval and support of investors, customers, and local communities, thereby reducing the cost of capital and building lasting relationships.
  • Continued strengthening and improvement of governance, compliance, and respect for human rights.
  • Expansion of Corporate Citizenship
Promoting human capital management
  • A decline in population leads to a decrease in competitiveness due to an inability to secure sufficient human resources.
  • Deterioration of service quality and business suspension due to labor shortages on site.
  • Promoting innovation and improving service quality through talent development and acquisition of top talent.
  • Clearly define the personnel necessary for management and business operations, and secure a sufficient number of diverse and highly skilled individuals.
  • By creating a positive work environment and enhancing training programs, we aim to maximize the performance of each individual employee.
Promoting DX
  • High labor costs and other expenses due to stagnant productivity
  • Lost business opportunities due to inefficient customer data management
  • Falling behind other companies in DX results in a relative inferiority in service quality and productivity.
  • Business disruption, loss of social credibility, and compensation due to information security incidents.
  • DX enables improved operational efficiency, enhanced functionality, and creation of new value, leading to increased competitiveness.
  • Improving operational efficiency and expanding/enhancing the value provided through DX in administration, sales, and field operations.
  • Accelerating and improving data-driven management decisions (data-driven management)
  • Building an organization and human resources for promoting DX
  • Preventing serious incidents through enhanced information security.

New materiality initiatives, KPIs, and targets

Materiality Correspondence with the Medium-Term Management Plan 2030 Basic Policy attempt Policies KPI Target value (FY2029)
*Some exceptions apply.
Promoting projects that contribute to solving social issues

Basic Policy ①
Expanding and strengthening market share in domestic core businesses

Basic Policy ③
Business expansion to meet new logistics needs
  • Addressing energy challenges
  • Development and expansion of energy-related businesses (offshore wind power, battery storage business, etc.)
  • Sales figures and number of transactions for related businesses, etc.
 (Not disclosed)
  • Supporting our customers' decarbonization efforts
  • Responding to transportation needs arising from our customers' decarbonization efforts (e.g., decarbonization of the steel industry, modal shift).
  • Sales figures and number of transactions for related businesses, etc.
 (Not disclosed)
  • Promotion of other projects that contribute to solving social issues.
  • Development and promotion of businesses that contribute to solving other social issues.
  • The setting will be adjusted according to the progress of future business planning.
 (To be set in the future)
Contribution to carbon neutrality (CN)

 Basic Policy ①
Expanding and strengthening market share in domestic core businesses
  • Reducing our own CO2 emissions (Scope 1, 2)
  • Promoting environmental investments (installation of LED lighting and solar panels in warehouses, battery conversion of forklifts, procurement of electricity derived from renewable energy)
  • Emissions reduction rate
 △46%
  • CO2 emissions reduction (Scope 3)
  • Responding to Modal Shift
  • Sales figures for related businesses, etc.
 (Not disclosed)
Ensuring the safety and quality of the service

Basic Policy ①
Expanding and strengthening market share in domestic core businesses

Basic Policy ⑥
Improving operational efficiency and expanding/enhancing the value provided through DX
  • Disaster prevention and mitigation at the site
  • Establishment of a safety management system
  • Number of serious accidents
 Continuation of 0
  • Advanced vehicle operation management/safe driving education
  • Number of traffic accidents
 20% decrease (compared to previous year)
  • Improving the work environment and promoting communication
  • Number of work-related accidents
 Frequency rate 0.65 or less
Intensity rate 0.01 or less
  • Quality improvement
  • Efforts to prevent quality-related accidents
  • Number of property damage accidents
 20% decrease (compared to previous year)
  • Strengthening company-wide resilience
  • Business Continuity Plan (BCP) Development and Major Disaster Training
  • Business Continuity Plans (BCPs) have been finalized for all locations, and major disaster drills have been conducted at multiple locations.
 Conducting major disaster drills (at least once a year, at domestic business sites and major partner companies)
  • Disaster-adapted facility management
  • Installation of emergency power supplies, etc., at each location
 Installation rate at major locations: 15%
Advanced governance

Basic Policy ④
Transition to management control that supports portfolio management
  • Strengthening governance
  • Building an optimal governance system
  • Engine design review
 (Not disclosed)
  • Enhancement of information disclosure
  • CGC compliance rate achieved and maintained
 100% maintained
  • Strengthening compliance
  • Improving employees' compliance awareness / Preventing inappropriate behavior and interactions in corporate activities
  • Number of serious compliance violations
 0 items
  • Disclosure of results (compliance education)
 (Not disclosed)
  • Expansion of Corporate Citizenship
  • Expansion of social contribution activities
  • Disclosure of Results
 Continuous promotion
  • Respect for human rights in business
  • Implementation of Human Rights Due Diligence
  • Disclosure of Results
 Continuous promotion
Promoting human capital management

 Basic Policy 5
Implementing optimal human resource management across the entire company
  • Respect for human rights and diversity
  • Active promotion of women to management positions
  • Percentage of female executives (excluding management positions)
 23%
  • Actively promoting women to management positions
  • Ratio of female managers
 10% (FY2034)
  • Establishing a flexible work environment, including the widespread adoption of paternity leave.
  • Male parental leave rate
 65% (FY2029)
85% (FY2034)
  • Promoting health management
  • Promoting the use of paid leave
  • Paid leave utilization rate
 73%
  • Strengthening Human Resource Development
  • Enhancement of training and development programs
  • Training hours per person
 12 hours/year
  • Securing top talent
  • Increased number of new graduate hires, improved working conditions and systems to encourage retention.
  • Retention rate of new employees after 3 years
 Over 80%
  • Maximizing human resource value and organizational strength
  • Clarifying the ideal profile of human resources
  • Visualization of the talent portfolio
 Clarifying the required skills, abilities, and personnel numbers for each role, and continuously implementing and reviewing them.
  • Clarification of required personnel numbers for each job type and rank.
  • Improving employee engagement through continuous improvement of the workplace environment.
  • Engagement score
 Score 70
Promoting DX

 Basic Policy ⑥
Improving operational efficiency and expanding/enhancing the value provided through DX
  • Office Operations DX
  • Standardization of administrative tasks, improvement of work quality, and cost reduction.
  • Progress of related measures
 (Not disclosed)
  • Sales Operations DX
  • Utilizing customer data to improve sales efficiency and create new value
  • Progress of related measures
 (Not disclosed)
  • Field Operations DX
  • Accumulating on-site DX know-how to improve efficiency and create new value
  • Progress of related measures
 (Not disclosed)
  • Data-driven management
  • Achieve faster and more sophisticated management decision-making.
  • Progress of related measures
 (Not disclosed)
  • Establishment of a promotion system
  • Building an organization and personnel to promote company-wide DX
  • Progress of related measures
 (Not disclosed)
  • Strengthening information security
  • Promotion of information security measures
  • Number of incidents (data leaks/service outages, etc.)
 0 cases/year