Climate Change Data

Environmental Metrics

ESG Focus Areas

• Responsibilities to the Earth’s Environment
• Sound Company Conduct
• Respect for Human Rights

Environmental Achievements

• Reduced CO2 emissions by reinforcing controls on climate change
• Provided logistics technologies and services with little environmental impact
• Strengthened adaptive capacity and resilience in the face of climate change
• Promoted resource recycling
• Protected terrestrial and marine ecosystems
• Received the Logistics Environmental Conservation Award for modal shift efforts

Social Achievements

• Launched a company-wide program for supporting absent staff members’ rehabilitation and return to work
• Implemented an action plan based on the Act on Promotion of Women’s Participation and Advancement in the Workplace
• Increased the rate of taking paid annual leave
• Improved personnel systems to allow for longer leave or shorter hours for childcare
• Organized seminars to cultivate long-term career perspectives for young female staff members

Governance Achievements

• Strengthened supervisory functions and implemented effective operation by leveraging the Board of Directors, Audit & Supervisory Board and Compliance Committee
• Continued to provide compliance education programs to prevent anti-trust behavior and bribery
• Spread and promoted the use of Nittsu Speak Up, a whistleblowing system, among employees
• Used the Nittsu Safety & Health Management System (NSM) to thoroughly inform all staff members of the importance of health and safety
• Provided affiliates and subcontractors with guidance and education on safety

Climate Goals & Targets

Environmental Challenges

• Climate change and frequent natural disasters
• Air pollution
• Shortage of water resources
• Increase of waste and marine plastics
• Loss of biodiversity
• Violations of human rights in workplaces including supply chains
• Forced labor stemming from a lack of awareness regarding human rights
• Violations of compliance within the Company, including Group companies

Mitigation Strategies

• Reduce CO2 emissions by 30% from their FY2013 levels no later than FY2030
• Reduce industrial waste generation vis-à-vis sales each year by 1% from the previous year (until FY2030)
• Ensure that all facilities are lit by LED by FY2030
• Use the Nittsu Safety & Health Management System (NSM) to thoroughly raise staff members’ awareness of safety and health
• Provide guidance and education on health
• Encourage respect for human rights in procurement practices
• Strengthen supervisory functions and implement effective operation by leveraging the Board of Directors, Audit & Supervisory Board and Compliance Committee
• Continue to provide compliance education programs to prevent anti-trust behavior and bribery

Supply Chain Management

Responsible Procurement

• Criteria for selecting new business partners, including checks on compliance with the Labor Standards Act and operation control

Climate-Related Risks & Opportunities

Physical Risks

• Abnormal weather resulting from climate change

Transition Risks

• Increase in operating costs due to abnormal weather

Opportunities

• Modal shifts to reduce environmental impact

Reporting Standards

Frameworks Used: GRI Sustainability Reporting Standards (Core), Environmental Reporting Guidelines 2018 by the Ministry of the Environment

Certifications: ISO 14001, Green Management Certification

Third-party Assurance: SGS Japan Inc. (partial assurance for FY2018 CO2 emissions)

Sustainable Products & Innovation

• Reusable materials in moving services

Awards & Recognition

• Logistics Environmental Conservation Award
• Member of the SNAM Sustainability Index
• Commendation by the chief of Osaka Prefectural Police Headquarters
• Letter of gratitude from Nichinancho, Tottori Prefecture
• Award for Best Company (Modal Shift)
• Special Prize (Green Logistics Partnership Meeting)
• Letter of gratitude from the director of the Hokuriku-Shin'etsu District Transport Bureau
• First Maritime Modal Shift Award

Environmental Metrics

ESG Focus Areas

• Climate Change
• Resource Recycling
• Preventing Pollution
• Appropriate Use of Water
• Preserving Ecosystems
• Building a Sustainable and Resilient Logistics Infrastructure
• Respecting Human Rights in the Supply Chain
• Job Creation
• Improving Employee Engagement
• Pursuing Business Digitalization and DX
• Improving Quality and Creating New Value
• Strengthening Governance
• Strengthening Risk Management

Environmental Achievements

• Reduced CO2 emissions by reinforcing controls on climate change
• Provided logistics technologies and services with low environmental impact
• Strengthened adaptive capacity and resilience in the face of climate change
• Increased number of environmentally friendly facilities
• Introduced environmentally friendly vehicles
• Accurately controlled fluorocarbons
• Reduced industrial waste emissions
• Actively used reusable protection materials in moving services
• Proposed and delivered environmental products
• Prevented alien species from crossing habitat boundaries
• Conserved marine ecosystems

Social Achievements

• Ensured robust respect for human rights in the supply chains
• Secured occupational health
• Ensured occupational and social safety
• Implemented human resources principles
• Trained human resources who can work globally
• Promoted diversity and inclusion
• Promoted workstyle innovation
• Improved employee engagement
• Strengthened global partnerships
• Contributed to society through business operations
• Contributed to the development of local communities

Governance Achievements

• Strengthened governance
• Strengthened risk management
• Promoted fair business practices
• Implemented robust anticorruption measures
• Enhanced corporate governance
• Improved personal data protection

Climate Goals & Targets

Environmental Challenges

• Abnormal weather resulting from climate change may pose obstacles to logistics infrastructure
• Climate change may lead to an increase in operating costs and decreases in production and shipment quantities for clients
• Long-distance truck transportation will become more difficult due to the overtime cap for truck drivers and the future decrease in the working population
• Port congestion on North America’s West Coast
• Space shortages on routes to North America from Southeast Asia and other regions
• Shortage of classrooms in Karnataka State, India

Mitigation Strategies

• Enhanced the resilience of its operations against climate change by securing two or more modes of transport
• Worked proactively in cooperation with clients to make modal shifts
• Launched the NX Train service to charter sections of trains
• Promoted Sea & Rail, a combined railway and domestic marine transportation service
• Launched US EXPORT SERVICE Via MEXICO (U.S.E.ME), a new BCP-compatible multimodal transport service
• Collaborated with SIPGL to develop a new transshipment service
• Built and donated a school building in Karnataka State, India

Supply Chain Management

Responsible Procurement

• Respect for human rights in procurement practices
• Selection of suppliers based on criteria when starting business with new companies

Climate-Related Risks & Opportunities

Physical Risks

• Abnormal weather resulting in suspension of transport services and closure of highways

Transition Risks

• Increases in operating costs and decreases in production and shipment quantities for clients

Opportunities

• Development of energy-efficient products and services

Reporting Standards

Frameworks Used: GRI Standards for Sustainability Reporting, Ministry of the Environment's Environmental Reporting Guidelines (2018 Edition)

Certifications: ISO 14001, Green Management Certification

Third-party Assurance: SGS Japan Inc. (for FY2021 CO2 emissions data)

Sustainable Products & Innovation

• e-light pallet and e-light pallet PLUS
• Biomass Mark certified shipping bags

Awards & Recognition

• Best Logistics Improvement Award (NX NP Logistics Co., Ltd.)
• 2023 Health and Productivity Management Brand (Large Enterprises) certification (Nippon Express Co., Ltd.)
• Top overall place among moving companies in the Oricon® Satisfaction Survey (two consecutive years)

Environmental Metrics

ESG Focus Areas

• Climate Change
• Resource Recycling
• Biodiversity
• Human Rights
• Occupational Health and Safety
• Supply Chain Resilience
• Diversity and Inclusion
• Corporate Governance
• Community Engagement

Environmental Achievements

• Reduced NX GROUP Scope 1 and 2 CO2 emissions (compared with 2013)
• 100% LED lighting for Nippon Express Co., Ltd. bases
• Introduction of hydrogen fuel cell-powered trucks
• Increased number of environmentally friendly facilities
• Promotion of modal shift to rail and marine transport
• Encouraging eco-driving
• Annual reduction of industrial waste emissions versus the previous year (vis-à-vis sales)
• Initiatives to recycle plastics used for logistics materials
• Development of NX-GREEN SAF Program utilizing Sustainable Aviation Fuel

Social Achievements

• Formulated NX GROUP Human Rights Policy and Sustainable Procurement Policy
• Formulated NX GROUP Health Declaration and implemented health management measures
• Achieved 100% attendance at compliance education courses by NX GROUP companies in Japan
• Achieved target annual paid leave utilization rate (60% or more)
• Improved employee engagement (NX Core Engagement Score: 71 pts.)
• Increased rate of male employees taking parental leave (34.6%)
• Promoted diversity and inclusion initiatives, achieving target percentage of women with managerial-level positions (3%)
• Implemented various safety initiatives, resulting in reduced accident frequency and severity rates
• Introduced the Nittsu Safety & Health Management System (NSM)

Governance Achievements

• Established NX GROUP Charter of Conduct and Compliance Regulations
• Established Compliance Committee and Risk Management Committee
• Implemented robust anti-corruption measures
• Established Personal Information Protection Policy
• Conducted regular compliance awareness surveys
• Established Security Export Control Policy

Climate Goals & Targets

Environmental Challenges

• Climate change impacts on logistics infrastructure and operations
• Supply chain disruptions due to various risks (natural disasters, infectious diseases, etc.)
• Difficulty in reducing Scope 3 emissions
• Maintaining robust respect for human rights throughout the supply chain
• Ensuring occupational health and safety for all employees and subcontractors
• Promoting diversity and inclusion across the organization
• Maintaining high service quality and customer satisfaction

Mitigation Strategies

• Securing multiple modes of transport to enhance operational resilience
• Promoting modal shifts to reduce environmental impact and improve efficiency
• Investing in eco-friendly vehicles and technologies
• Implementing robust risk management systems
• Providing safety education and training
• Formulating and implementing diversity and inclusion policies
• Introducing customer consultation system (VoCS) and conducting regular customer surveys
• Strengthening global partnerships and promoting open innovation

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• NX GROUP Sustainable Procurement Policy
• Supplier selection criteria based on human rights and safety standards
• Contract provisions on environmental laws and regulations

Climate-Related Risks & Opportunities

Physical Risks

• Abnormal weather impacting logistics infrastructure

Transition Risks

• Regulatory changes, market shifts

Opportunities

• Development of energy-efficient products and services
• Expansion of sustainable transportation options

Reporting Standards

Frameworks Used: GRI Standards for Sustainability Reporting, Ministry of the Environment’s Environmental Reporting Guidelines (2018 Edition), TCFD recommendations, SBTi initiative

Certifications: ISO 14001, Green Management Certification, Health and Productivity Management Brand (Large Enterprises)

Third-party Assurance: SGS Japan Inc. (for FY2022 CO2 emissions data)

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Reusable protection materials for moving operations
• Environmental-friendly isothermal packaging for temperature-controlled transport

Awards & Recognition

• Bronze Medal in EcoVadis sustainability assessment (2023)
• B rating in CDP Climate Change Program (2023)
• Inclusion in MSCI Japan ESG Select Leaders Index, MSCI Japan Empowering Women Select Index, S&P/JPX Carbon Efficient Index, FTSE Blossom Japan Sector Relative Index, Morningstar Japan Co., Ltd. ex-Reit Gender Diversity Tilt Index