Climate Change Data

Nippon Express Co., Ltd.

Climate Impact & Sustainability Data (2012-04 to 2013-03, 2019-04 to 2020-03)

Reporting Period: 2012-04 to 2013-03

Environmental Metrics

Total Carbon Emissions:976,884 tCO2e/year
Total Energy Consumption:520,670 kwh/year (domestic) + 370,325 kwh/year (overseas)
Water Consumption:2,030 m3/year (domestic) + 3,803 m3/year (overseas)
Waste Generated:36,352 tons/year

ESG Focus Areas

  • Responsibility for the global environment
  • Contribution to the global community
  • Safety and security
  • Human Rights (Workplace Environment)
  • Community Involvement
  • Corporate Governance

Environmental Achievements

  • Reduced CO2 emissions through modal shift to rail and sea transport
  • Introduced digital driving recorders and safe eco-driving training, reducing fuel consumption and emissions
  • Developed reusable moving materials ("Ecologicompo"), reducing waste
  • Obtained LEED Silver Certification for Chicago Logistics Centre East
  • Implemented various initiatives to reduce waste and advance the 3Rs (Reduce, Reuse, Recycle)

Social Achievements

  • Launched "One Room Pack Plus" moving service, improving convenience for single-person households
  • Implemented a company-wide reinstatement support program for employees with mental health issues
  • Increased employment rate of disabled people
  • Supported community involvement through various activities (festivals, concerts, etc.)
  • Provided support for overseas relief operations

Governance Achievements

  • Established a robust corporate governance structure with clear division of responsibility
  • Implemented a comprehensive compliance management system, including a whistle-blower system
  • Developed a Business Continuity Management (BCM) and Business Continuity Plan (BCP) to ensure operational continuity during disasters

Climate Goals & Targets

Environmental Challenges

  • Long working hours and mental health issues among employees
  • Reducing CO2 emissions from logistics services (70% of energy from oil)
  • Ensuring continuous distribution (as highlighted by the Great East Japan Earthquake)
  • Addressing human rights issues throughout the supply chain
  • Managing the environmental impact of logistics operations
Mitigation Strategies
  • Implemented measures to limit overtime, including reporting excessive overtime to the Board of Directors
  • Introduced a company-wide reinstatement support program for employees with mental health issues
  • Actively promoted modal shift to rail and sea transport
  • Introduced digital driving recorders and eco-driving training
  • Developed and introduced reusable packaging materials
  • Participated in the Human Rights Due Diligence Workshop at the Nippon CSR Consortium

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Sustainability Reporting Guidelines G.3.1, Environmental Reporting Guidelines (2012 Version) (Japanese Ministry of the Environment)

Certifications: ISO 14001, LEED Silver

Sustainable Products & Innovation

  • Ecologicompo reusable moving materials
  • Offset Eco2 carbon offset service

Awards & Recognition

  • Special Logistics Environmental Award (Japan Federation of Freight Industries)
  • Osaka Sustainable Architecture Award

Reporting Period: 2019-04 to 2020-03

Environmental Metrics

Total Carbon Emissions:854,530 tCO2e/year (Scope 1 & 2)
Total Energy Consumption:349,009 kl/year (crude oil equivalent)
Water Consumption:1,223,000 m3/year
Waste Generated:39,802 tons/year
Carbon Intensity:370.70 kgCO2e/million yen in revenue (FY2019)

ESG Focus Areas

  • Environment
  • Social
  • Governance

Environmental Achievements

  • Reduced CO2 emissions by 15.4% compared to FY2013.
  • 49.5% of owned vehicles in Japan are eco-friendly.
  • Received the Ocean Cargo Modal Shift Award.

Social Achievements

  • Increased percentage of women among new graduate hires to 33.6%.
  • Launched Human Resources Strategy Division to establish uniform standards for compensation and welfare benefits globally.
  • Participated in MINDS, a work style reform promotion community.

Governance Achievements

  • Established a Compensation and Nomination Advisory Committee.
  • Implemented a performance-based stock compensation plan.
  • Improved information disclosure and dialogue with shareholders and investors.

Climate Goals & Targets

Long-term Goals:
  • Become a logistics company with a strong presence in the global market by 2037.
Medium-term Goals:
  • Achieve ROE of 10% by FY2023.
  • Increase overseas sales ratio to 25% by FY2023.
Short-term Goals:
  • Reduce CO2 emissions by 30% vs. FY2013 level by FY2030 (Nippon Express Parent); 20% reduction for domestic Group companies by FY2030.

Environmental Challenges

  • Contracting domestic logistics markets.
  • Expanding global logistics markets.
  • Declining relative position of Japanese companies.
  • Competition from overseas mega forwarders and new entrants.
  • Digital revolution and rapid business model innovation.
  • Labor shortages and work style reforms.
  • Market demands for effective use of capital and assets.
  • COVID-19 pandemic and its impact on global supply chains.
Mitigation Strategies
  • Three-dimensional growth strategy (customer, business, area).
  • Global expansion utilizing M&As.
  • Improved profitability in domestic businesses.
  • Accelerated response to advanced technologies and digital platforms.
  • ESG-oriented business management.
  • IT strategies to improve productivity and work style reforms.
  • Capital investments based on growth strategies.
  • BCP solutions to cope with logistics restrictions and emergencies.

Supply Chain Management

Responsible Procurement
  • Respect for human rights throughout the supply chain

Climate-Related Risks & Opportunities

Physical Risks
  • Abnormal weather impacting logistics infrastructure
Opportunities
  • Development of energy-efficient products and services

Reporting Standards

Frameworks Used: GRI Sustainability Reporting Standards (Core), IIRC International Framework

Certifications: ISO 14001, CEIV Pharma

UN Sustainable Development Goals

  • 7 (Affordable and clean energy)
  • 9 (Industry, innovation, and infrastructure)
  • 12 (Responsible consumption and production)
  • 13 (Climate action)

Initiatives contribute to these goals through CO2 emissions reduction, modal shifts, renewable energy use, recycling, and responsible supply chain management.

Sustainable Products & Innovation

  • Eco-friendly vehicles
  • Combined transport products
  • Recycling-oriented sales activities

Awards & Recognition

  • Ocean Cargo Modal Shift Award
  • Award for Best Company Working on Modal Shift