Climate Change Data

Environmental Metrics

ESG Focus Areas

• Human Capital
• TCFD
• Digital Transformation (DX)
• Sustainable Supply Chain

Environmental Achievements

• Not disclosed

Social Achievements

• Initiated various training programs including entrepreneurship, diversity, global talent development, and operational efficiency improvement.
• Addressed the 2024 labor law changes by focusing on improving logistics efficiency for clients and implementing internal measures like improved attendance management and revised compensation systems.

Governance Achievements

• Aims to improve PBR (Price-to-Book Ratio) to over 1.0 and enhance corporate value through growth strategies and active IR activities.
• Increased dividend payout.

Climate Goals & Targets

Environmental Challenges

• Decreased cargo handling across various sectors (synthetic rubber, electrode-related products, automotive parts, robots, motors, etc.) due to sluggish cargo movement.
• Delays in new project launches.
• Decreased ocean freight rates.
• Increased costs due to the weak yen.
• Driver shortage.

Mitigation Strategies

• Expecting increased operation of power generation materials and large-scale plant equipment projects in the second half of the fiscal year.
• Seeking to diversify customers to reduce reliance on specific industries and clients.
• Proposing logistics improvements and collaborating with clients to address the 2024 labor law changes.
• Promoting modal shift, joint delivery, and negotiating appropriate fees.
• Implementing internal measures to address the 2024 labor law changes, including improved attendance management and revised compensation systems.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: TCFD

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Climate Change
• Human Rights
• Supply Chain Responsibility
• Safety
• Diversity & Inclusion

Environmental Achievements

• Promoting modal shift, LED conversion, EV conversion, and renewable energy introduction to reduce CO2 emissions.
• Planning to grasp and disclose Scope 1, 2, and 3 data on a consolidated basis (July 2024).

Social Achievements

• Held the first truck safe driving skills competition to improve safety awareness.
• Established Maruzen Logistics College and Maruzen DX Academy for employee development and upskilling.

Governance Achievements

• Established human rights and procurement policies (May 13, 2024).

Climate Goals & Targets

Environmental Challenges

• Decreased cargo handling by existing clients in the first half of 2024.
• Partial delay in the operation of new projects in the first half of 2024.
• Sluggish international logistics due to climate change and geopolitical tensions.
• Driver shortage.
• Price competition among industry players.
• High crude oil prices.

Mitigation Strategies

• Cost reduction measures.
• Appropriate price adjustments.
• Securing high-profitability projects.
• Promoting modal shift.
• Joint delivery.
• Negotiating appropriate fees.
• Improving vehicle utilization rate through enhanced internal collaboration.
• Considering using existing bases as rest stops for group company drivers.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Human rights and environmentally conscious business activities with all partner companies.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: TCFD

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

The company aims to contribute to the SDGs through core business growth and expansion into new business areas.

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Recommended logistics operator and on-site cargo handling designated operator for the International Horticultural Exposition

Environmental Metrics

ESG Focus Areas

• Safety
• Human Capital
• Sustainability

Environmental Achievements

• Reduced CO2 emissions through modal shift (specific numbers not provided)
• Introduced AI-equipped driving recorders to improve safety and reduce emissions

Social Achievements

• Expanded logistics expertise training
• Introduced safety driving skills competitions
• Established an internal certification system for logistics
• Halal certification obtained for Indonesian subsidiary's delivery and storage operations

Governance Achievements

• Strengthened IR activities (including facility tours and increased individual interviews)
• Focus on improving ROE and PBR

Climate Goals & Targets

Environmental Challenges

• Driver shortage
• Rising costs (labor, energy, materials)
• Competition
• Dependence on specific industries/clients
• 2024 labor law changes impacting driver working hours

Mitigation Strategies

• Pricing adjustments
• Focus on high-profitability businesses
• Modal shift initiatives
• Joint delivery
• Negotiating appropriate fees
• Improving vehicle utilization rates
• Developing a rest area system for group company drivers
• Implementing time management systems to correct long working hours

Supply Chain Management

Climate-Related Risks & Opportunities

Awards & Recognition

• First Modal Shift Excellent Operator Award (jointly with MOL Logistics)