MATERIALITY

To identify the material topics the Company addresses in the areas of environmental, social, and governance (ESG) issues and to outline our direction with regard to sustainability, we utilized the 17 SDGs and visualized priority issues using a matrix analysis chart (Figure 1) to identify materialities.

Process to Identify Materiality

STEP 01

Select social issues important to the Company

We classified the importance of social issues, including the SDGs, in relation to our business and selected highly relevant and important targets.

STEP 02

Select social issues stakeholders expect us to address

We selected the social issues stakeholders expect us to address using the following methods:

  • Identifying the social issues prioritized by each stakeholder (shareholders, customers, and business partners) with whom we have a close relationship by reviewing their websites
  • Identifying the social issues the Company should focus on through employee surveys
  • Identifying social issues to monitor by considering job applicants who will shape the Company’s future as young employees (aged 25 or younger)

STEP 03

Set priority issues using matrix analysis

We set priority issues using matrix analysis, with relevance to our business (Step 1) on the horizontal axis and the targets stakeholders expect from us (Step 2) on the vertical axis. (Figure 1)

We identified the targets with the highest importance on both the horizontal and vertical axes and classified them into four areas: compliance, people, environment, and business. (Figure 2)

STEP 04

Identify materialities

We established the themes, KPIs, responsible departments, and achievement deadlines for material topics (materialities) in each area and formulated specific initiatives.

The materialities we identified were discussed by the Sustainability Committee and approved by the Board of Directors.

Figure 1: Setting priority issues using matrix analysis

Hi

Expectations from stakeholders and society

  • Social issues prioritized by stakeholders
  • Social issues deeply related to the company’s sustainable growth
  • Potential social issues
  • Social issues highly relevant to the Company
Low

Relevance to the Company

Hi

Figure 2: Four classifications of high-priority targets

Compliance

Personnel-related

Environment

Business-related

Materiality

Compliance

Strengthening systems for fair and sound business activities and enhancing social trust

Theme

Issues
KPI

Thorough compliance

Enhancing compliance education
  • Totalnumber of training hours
  • Number of training participants
  • Percentage of participants taking e-learning courses
  • Number of comprehension checks conducted after e-learning courses
Globalizing the whistleblowing system
  • Establishing a global whistleblowing system
Eradicating serious violations
  • Number of serious compliance violations

Enhancing information security

Raising information security awareness
  • Percentage of participants taking e-learning courses
  • Number of countries where e-learning courses were conducted
Implementation of information security measures
  • Number of serious information security incidents
  • Percentage of simulated phishing email drills clicked
  • Acquisition of information security standards (ISMS)

Support for incident and misconduct prevention

Prevention of incidents and misconduct
  • Percentage of participants taking e-learning courses on Yokoten
Measures in the event of incidents or misconduct
  • Number of interviews conducted after incidents or misconduct

Personnel-related

Building a corporate culture that fosters employee growth and job satisfaction

Theme

KPI

Promoting health management

  • Improvement in overall health risks identified through stress checks
  • Paid leave utilization rate
  • Health checkup examination rate (Japan)
  • Health checkup examination rate (Global)

Strengthening human capital development

  • Expansion of employee training by job level
  • Enhancement of department-specific training
  • Number of national staff participating in training in Japan
  • Creation and distribution of videos introducing other departments

Respect for human rights and diversity

  • Female employees comprising of managerial positions
  • Engagement surveys
  • Female employees comprising of regular positions
  • Percentage of female board members
  • Percentage of male employees taking childcare leave
  • Revision of senior personnel systems
  • Compliance with the statutory employment rate for people with
  • Acquisition of new insights from career professionals

Improving the work environment

  • Reduction in average monthly overtime working hours
  • Prevention of harassment
  • Activities to promote a healthy work-life balance
  • Support for hybrid work leading to improved productivity

Initiatives to ensure respect for human rights

  • Identification of key human rights issues for the Company and establishment of systems

Environment

Evolution into an environmentally conscious, comprehensive logistics company

Theme

Issues
KPI

Community investment through decarbonization and initiatives addressing environmental issues

Raising awareness of consideration for the environment
  • Formulation of environmental policies
  • Percentage of participants taking environmental training
  • Formulation of rules for handling industrial waste
  • Monthly percentage of company-wide 5S activity themes implemented
Logistics reforms aimed at reducing CO2 emissions
  • Visualization and reduction of GHG emissions (Scope 1, 2)
  • Number of SAF implementations

Business-related

Creating the future through supply chain stability and innovation

Theme

Issues
KPI

Eco-friendly business initiatives

Logistics reforms aimed at reducing CO2 emissions
  • Number of modal shift transactions
Active involvement in ODA projects (ESG-related)
  • Number of projects handled

DX promotion

Promotion of offensive and defensive DX
  • Number of business improvements through DX
  • Number of seminar participants

Strengthening resilience

BCP development
  • Development of BCP manuals
  • Verification of BCP effectiveness

Cooperation with partner companies

Strengthening relationships with overseas subsidiaries, agents, and domestic partner companies
  • Formulation of supplier procurement policies
PAGE TOP