Climate Change Data

Harima Company

Climate Impact & Sustainability Data (2022-04 to 2023-03, 2023-04 to 2024-03)

Reporting Period: 2022-04 to 2023-03

Environmental Metrics

ESG Focus Areas

  • Sustainable Distribution
  • New Value Creation using Functions and Improved Profitability
  • Active Participation of Diverse Human Resources and Coexistence
  • Labor Environment Improvement and Employee Health Promotion
  • Initiatives for Global Environmental Conservation
  • Sound and Transparent Corporate Management

Social Achievements

  • Initiatives for diverse human resources including women, foreigners, and career hires with various experiences; improvement of the work environment to maximize the characteristics and abilities of each employee; education of management personnel; revision of personnel systems.

Governance Achievements

  • Establishment of clear decision-making procedures for promoting sustainability; Compliance management, environmental management, and social contribution activities are promoted by the responsible departments; Sustainability-related important matters are reported and deliberated at the management meeting, and important matters are reported to the board of directors.

Environmental Challenges

  • Intensifying competition in the daily necessities distribution industry due to the oligopolistic trend among major retailers; Dependence of logistics department performance on specific retail companies; Dependence on outsourcing for some distribution and warehouse operations; Potential disruptions from natural disasters; Credit collection risks; System failures; Risks from infectious disease outbreaks.
Mitigation Strategies
  • Diversification of revenue through logistics services; Close collaboration with specific retail companies for business planning; Regular updates of logistics equipment; Maintaining good relationships with outsourcing partners and securing diverse partners; Thorough credit management and subscription to trade credit insurance; Installation of core computer equipment in a data center with earthquake-resistant facilities and a backup power generator; Server duplication and data backup; Establishment of appropriate management systems for prevention and containment of infectious diseases.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Period: 2023-04 to 2024-03

Environmental Metrics

ESG Focus Areas

  • Sustainable Distribution
  • New Value Creation and Profitability Improvement
  • Diverse Human Resources and Coexistence
  • Work Environment Improvement and Employee Health Promotion
  • Environmental Initiatives
  • Sound and Transparent Corporate Management

Environmental Achievements

  • Reduced return quantity by 72.9% compared to 2018.
  • Established a new logistics center in Komaki City, Aichi Prefecture, aiming to improve logistics efficiency and reduce CO2 emissions.
  • Introduced a truck berth reservation system to improve efficiency of loading and unloading.
  • Shifted to multimodal transport (inland waterway transport) to improve transport efficiency and reduce traffic congestion.
  • Converted 18 out of 33 company vehicles (excluding trucks) to hybrid vehicles, achieving a low-emission vehicle ratio of 54%.
  • Installed solar panels on the roofs of three logistics centers (Himeji, Fukusaki, Miyagi), contributing to CO2 reduction through renewable energy generation.
  • Recycled used plastic pallets and containers from logistics centers.

Social Achievements

  • Increased the number of group mid-career hires.
  • Implemented a job-type employment system.
  • Provided various training programs for employees at all levels.
  • Increased the proportion of women in new graduate recruitment.
  • Introduced a mentor system.
  • Implemented a re-employment system for employees up to age 65.
  • Increased the average number of paid leave days to 12.5 days (76.7% rate) in 2023.
  • Improved the male parental leave rate to 100% in 2023.
  • Renovated the Osaka office to improve work environment.
  • Received the “Hyogo Work-Life Balance Enterprise Certification” in September 2023.
  • Supported local sports team AS Harima Albion.

Governance Achievements

  • Adopted the audit committee system with three members (including two external auditors).
  • Established internal and external whistleblowing channels.
  • Developed a skill matrix for directors and auditors.
  • Implemented security measures to prevent system downtime and internal fraud.

Climate Goals & Targets

Environmental Challenges

  • 2024 problem in logistics (restrictions on overtime work hours for truck drivers).
  • Potential for increased transportation costs and labor shortages.
Mitigation Strategies
  • Promoting joint distribution.
  • Utilizing return trips of trucks.
  • Promoting modal shift.
  • Implementing a truck berth reservation system.

Supply Chain Management

Climate-Related Risks & Opportunities