Climate Change Data

兵機海運株式会社 HYOKI KAIUN KAISHA, LTD.

Climate Impact & Sustainability Data (2019, 2023-03, 2024-03, 2024-03 to 2024-09)

Reporting Period: 2019

Environmental Metrics

ESG Focus Areas

  • Corporate Governance
  • CSR Activities
  • Environmental Sustainability
  • Employee Diversity and Inclusion

Environmental Achievements

  • Advancing the construction of inland vessels in line with carbon dioxide reduction standards (Railway Construction, Transportation Facilities Development Support Organization).
  • Compliance with IMO's strengthened Sox regulations (sulfur content in marine fuel oil) from January 2020 for all vessels.
  • Participation in initiatives to reduce carbon dioxide emissions based on the application of the Logistics Efficiency Act managed by the Ministry of Land, Infrastructure, Transport and Tourism.
  • Continued certification for eco-commuting by the Traffic Ecology Mobility Foundation.

Social Achievements

  • Promoting a system where women can further thrive, continuously conducting in-house enlightenment on childcare leave and nursing care leave.

Governance Achievements

  • Revision of the Hyoki Corporate Governance Guidelines to reflect increased interest in executive compensation disclosure and CSR activities.
  • Establishment of a Nomination Committee and an Audit Committee to enhance the objectivity, transparency, and accountability of the Board of Directors.
  • Implementation of self-evaluation forms for all directors to continuously improve compliance and awareness.
  • Strengthened procedures for related-party transactions to ensure fairness and prevent harm to the company and shareholders.

Climate Goals & Targets

Environmental Challenges

  • Absorbing and mitigating the impact of complex market conditions in the logistics industry.
  • Balancing profit growth and risk, as well as investment effects and capital costs.
  • Addressing the challenges of a declining workforce due to Japan's aging population.
Mitigation Strategies
  • Diversification into new areas such as hazardous materials warehousing.
  • Maintaining stable profitability through the synergy between shipping and port operations.
  • Promoting women's advancement and creating a system where childcare and nursing care leave can be taken more naturally.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Period: 2023-03

Environmental Metrics

ESG Focus Areas

  • SDGs
  • Governance
  • Safety
  • Employee Well-being
  • Environmental Sustainability

Environmental Achievements

  • SOx regulation compliant fuel oil usage
  • Installation and operation of UV ballast water treatment equipment
  • Eco-commuting certification and reduced truck waiting times at Kobe logistics center

Social Achievements

  • Initiatives for work style reform for seafarers
  • Community contributions in the head office area
  • Establishment of Hyoki Corporate Governance Guidelines

Governance Achievements

  • Establishment of Hyoki Corporate Governance Guidelines

Climate Goals & Targets

Environmental Challenges

  • High fuel oil prices
  • Ship maintenance costs
  • Shortage of seafarers
  • Driver shortage impacting logistics
  • Global economic uncertainty
  • Rising costs (labor, materials)
Mitigation Strategies
  • Cost management and appropriate fare adjustments
  • Collaboration with shipping agents and Chinese shipping companies for tripartite transportation
  • Improving working conditions and training young seafarers
  • Appropriate price transfer and strengthening of cooperation with partner companies
  • Improving operational efficiency through system utilization
  • Expansion of hazardous materials handling capabilities
  • Strengthening cooperation with hazardous materials handlers

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Period: 2024-03

Environmental Metrics

ESG Focus Areas

  • CO2 emissions reduction
  • Seafarer well-being
  • Corporate governance
  • Community contribution
  • Safety

Environmental Achievements

  • SOx regulation compliant fuel oil usage
  • Installation and operation of UV ballast water treatment system
  • Eco-commuting certification by the Traffic Ecology & Mobility Foundation
  • Reduced truck/trailer waiting time at Kobe logistics center through berth reservation system

Social Achievements

  • Initiatives for seafarer work style reform
  • Contribution to local community and organizations
  • Establishment of Hyoki Corporate Governance Guidelines

Governance Achievements

  • Establishment of Hyoki Corporate Governance Guidelines

Climate Goals & Targets

Short-term Goals:
  • Improve profit margin through high-value cargo orders
  • Secure appropriate profits through continued price revision negotiations
  • Maintain fleet through joint management with ship owners and exploring new charterers

Environmental Challenges

  • Increasing ship operating and maintenance costs
  • Shortage of truck drivers due to 2024 labor law changes
  • Potential shortage of warehouse workers
  • Geopolitical risks (e.g., Middle East tensions, Ukraine conflict, US-China trade friction)
Mitigation Strategies
  • Negotiating appropriate freight rates
  • Cost management and price revision negotiations
  • Maintaining fleet through joint management with ship owners and exploring new charterers
  • Increasing workforce
  • Strengthening sales efforts for high-value cargo
  • Developing integrated port and warehouse services for Osaka-Kansai Expo

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Period: 2024-03 to 2024-09

Environmental Metrics

ESG Focus Areas

  • CO2 emissions reduction
  • Safety
  • Governance
  • Workforce development
  • Community contribution
  • Sustainable business practices

Environmental Achievements

  • SOx regulation compliant fuel oil usage
  • Installation and operation of UV ballast water treatment equipment
  • Eco-commuting certification by the Traffic Ecology & Mobility Foundation
  • Reduced truck/trailer waiting time through berth reservation system at Kobe logistics center

Social Achievements

  • Initiatives for seafarer work style reform
  • Community contributions in the head office region
  • Establishment of Hyoki Corporate Governance Guidelines

Governance Achievements

  • Establishment of Hyoki Corporate Governance Guidelines

Climate Goals & Targets

Medium-term Goals:
  • Improve the accuracy of supply and demand adjustment through efficient vessel allocation
  • Expand the handling of other cargoes while maintaining steel transportation as the base cargo
  • Develop new business areas and routes using alliances with overseas partners
  • Expand new service routes such as South America and Europe in international combined transport
  • Increase handling of high value-added cargo such as hazardous materials and other legally regulated goods to improve profitability
  • Increase the operating rate and expansion of hazardous materials warehouses
  • Improve service quality through the development of specialized personnel
  • Expand direct manufacturer orders
Short-term Goals:
  • Increase cargo volume by strengthening proposals to existing customers

Environmental Challenges

  • High fuel oil prices
  • High shipbuilding and dock costs
  • Driver shortages leading to logistics stagnation
  • Geopolitical risks
  • Increased various costs (labor, etc.)
  • Decreased export/import handling
Mitigation Strategies
  • Appropriate cost management and requests for appropriate freight rate revisions
  • Strengthening cooperation with related companies
  • Improving operational efficiency through system utilization
  • Expansion of hazardous materials handling
  • Construction of a third hazardous materials warehouse at Hyogo Wharf Logistics Center
  • Building cooperative relationships with hazardous materials handlers
  • Appropriate price transfer for general cargo handling and storage
  • Strengthening the network with cooperating companies
  • Developing new service routes in international combined transport
  • Seeking new overseas agents for service proposals in countries without transport experience
  • Improving working conditions and fostering young seafarers to ensure stable securing of seafarers

Supply Chain Management

Climate-Related Risks & Opportunities