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.