Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental Conservation
• Respect for Human Rights
• Appropriate Working Environment
• Sincere and Fair Business Activities
• Provision of Safe, High-Quality and Useful Services
• Coordination with Local Communities and International Society
• Organizational Governance

Environmental Achievements

• Reduced CO2 emissions (Specific figures not readily available, but a reduction is mentioned and data is available in the extended version online)
• Shifted to LED lighting in approximately 3,500 warehouse units
• Started operation of solar power generation facilities at Seishin Distribution Center (400 kW) and Minamihonmoku Distribution Center (220 kW)
• Achieved Rank A certification or above with CASBEE for multiple facilities

Social Achievements

• Held human rights awareness training for 49 employees
• Implemented child-care leave for 10 employees and general care leave for 31 employees
• Zero serious industrial accidents in Port and Harbor Operation Business
• Provided relief funds for disaster victims of Typhoon Hagibis
• Conducted various community engagement activities (charity fair, running club, etc.)

Governance Achievements

• Established a Nomination and Compensation Committee
• Established a corporate ethics help line
• Conducted compliance training on the Act against Delay in Payment of Subcontract Proceeds, etc. for 1,951 employees and insider trading prevention for 67 new employees
• Improved information security management

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to COVID-19 pandemic
• Intensification of natural disasters due to climate change
• Need to reduce environmental impact
• Maintaining compliance with various laws and regulations

Mitigation Strategies

• Implemented measures to prevent COVID-19 (3Cs avoidance, staggered working hours, work from home, etc.)
• Developed Disaster-Resistant and Eco-Friendly Warehouses and Office Buildings
• Promoted the use of renewable energy and energy-efficient technologies
• Strengthened compliance management through training, internal audits, and a corporate ethics help line

Supply Chain Management

Responsible Procurement

• Selection of environment-conscious suppliers
• Green Purchasing of stationery and office supplies
• Using recycled toners

Climate-Related Risks & Opportunities

Physical Risks

• Intensification of natural disasters (typhoons, earthquakes)

Opportunities

• Development of energy-efficient products and services

Reporting Standards

Frameworks Used: JIS Z 26000: 2012, ISO 26000: 2010, GRI Standards

Certifications: AEO warehouse, AEO customs, ISO 14001 (Fuji Logistics Co., Ltd. and Dia Buil-Tech Co., Ltd.), ISO 27001 (Dia Systems Corporation and Fuji Logistics Co., Ltd.), AS9120 (Nagoya Branch), CEIV Pharma (Kansai Airports)

UN Sustainable Development Goals

• Goal 9: Build resilient infrastructure, promote inclusive and sustainable industrialization and foster innovation
• Goal 11: Make cities and human settlements inclusive, safe, resilient and sustainable
• Goal 12: Ensure sustainable consumption and production patterns

Disaster-Resistant Facilities contribute to these goals

Environmental Metrics

ESG Focus Areas

• Safety, security, disaster response
• Environmental initiatives
• Cutting-edge technology, innovation
• Partnerships
• Human resource development, improving employee satisfaction
• Compliance, human rights, gender

Environmental Achievements

• Scope 1+2 CO2 emissions: down 30% (versus FY2013)
• CO2 emissions: down 20% (versus FY2018)
• Improved gas mileage by 30.6% compared with fiscal 2006 (Ryoso Transportation Co., Ltd.)
• Obtained Green Management Certification

Social Achievements

• Opened SharE Center misato, a next-generation e-commerce platform
• Established a marketing team to support sales activities
• Introduced a regional system for general employees to accommodate various workstyles
• Ryoso Transportation Co., Ltd. awarded one star at all its operating bases in the trucking business field under the “comfortable workplace certification system”

Governance Achievements

• Established a Sustainability Committee
• Established a Safety Promotion Department
• Reorganized the International Business Coordination Chamber as the Overseas Business Planning & Coordination Division
• Conducted self-assessment questionnaires for all directors and corporate auditors regarding the effectiveness of the Board of Directors

Climate Goals & Targets

Environmental Challenges

• Changes in the business environment (economic fluctuations, logistics rationalization)
• Damage to business assets caused by natural disasters
• Reduction in market value and profitability of business assets
• Fair value fluctuations of investment securities
• Compliance risk
• Country risk in overseas business development
• Exchange rate fluctuations
• Tightening of regulations on environmental conservation
• Information security risk
• Risk from COVID-19

Mitigation Strategies

• Planned capital investment and provision of sophisticated services
• Earthquake resistance and seismic isolation measures, insurance coverage, regular training
• Recording impairment loss to reflect the possibility of recovery
• Recording allowance for investment loss
• Code of Conduct, compliance training, Internal Control Committee, Internal Reporting Hotline
• Management activities in accordance with local laws and regulations, overseas investment insurance
• Recognizing potential impact on financial position and operating results
• Energy-saving measures, low-impact cargo handling equipment, environment-friendly services
• Strong security defense measures, software to detect suspicious behavior, information security education
• COVID-19 Response Headquarters, telecommuting, staggered work, health checks

Supply Chain Management

Responsible Procurement

• CSR questionnaire targeting subcontractors

Climate-Related Risks & Opportunities

Physical Risks

• Damage to business assets (warehouses, rental buildings, etc.) caused by natural disasters

Transition Risks

• Tightening of regulations on environmental conservation

Reporting Standards

Frameworks Used: JIS Z 26000: 2012, ISO 26000: 2010, Ministry of the Environment: Environmental Reporting Guidelines, GRI Standards, IIRC Reference Guidelines

Certifications: Authorized Warehouse Operator (AEO warehouse), Authorized Customs Broker (AEO customs), ISO 14001, ISO 27001, AS9120, CEIV Pharma

Awards & Recognition

• Green Management Certification (multiple times)
• One star in the trucking business field under the “comfortable workplace certification system” (Ryoso Transportation Co., Ltd.)
• Certified as an “advanced model company” by the Shanghai Fire Fighting Association

Environmental Metrics

ESG Focus Areas

• Safety, security, disaster response
• Environmental initiatives
• Cutting-edge technology, innovation
• Partnerships
• Human resource development, employee satisfaction
• Compliance, human rights, gender

Environmental Achievements

• CO2 emissions reduction rate down 28.1% versus FY2013 (Scope 1+2)
• CO2 emissions reduction rate for transportation down 44% compared with FY2018

Social Achievements

• Launched DP-Cool services nationwide for temperature-controlled pharmaceutical transportation
• Introduced a regional system for general employees to accommodate diverse workstyles
• Achieved 53% employee participation in childcare leave

Governance Achievements

• Published revised CSR & Compliance Handbook
• Endorsed TCFD recommendations and disclosed information based on the framework
• Established Sustainability Promotion Division

Climate Goals & Targets

Environmental Challenges

• Changes in the business environment (economic fluctuations, logistics rationalization)
• Damage to business assets from natural disasters
• Reduction in market value and profitability of business assets
• Compliance risks
• Country risk in overseas business development
• Exchange rate fluctuations
• Tightening of environmental regulations
• Information security risks
• Risks from COVID-19

Mitigation Strategies

• Planned capital investment and sophisticated services
• Earthquake resistance and seismic isolation measures, insurance, reserve for private insurance, inspections, maintenance, crisis manuals, training
• Recognizing impairment losses
• Code of Conduct, compliance training, Internal Control and Compliance Committee, Internal Reporting Hotline
• Management activities in accordance with local laws and regulations, overseas investment insurance
• Recognizing potential impacts in consolidated financial statements
• Environmental Policy, Environmental Voluntary Plan, ESG initiatives, energy-saving measures, eco-friendly cargo handling equipment, low-impact services
• Security measures, server management, information backups, information security education
• Minimizing effects through various measures

Supply Chain Management

Supplier Audits: Over 90% response rate for CSR questionnaire

Responsible Procurement

• CSR questionnaire for subcontractors

Climate-Related Risks & Opportunities

Physical Risks

• Decrease in labor productivity due to heatstroke
• Increased cost of introducing preventive measures

Transition Risks

• Impact from carbon taxes
• Increased cost of capital investment and facility replacement

Opportunities

• Growing need for low-CO2 emission services
• Increased need for temperature-controlled transportation/delivery

Reporting Standards

Frameworks Used: GRI Standards, TCFD

Certifications: AEO warehouse, AEO customs

Sustainable Products & Innovation

• DP-Cool
• ML Chain

Environmental Metrics

ESG Focus Areas

• Safety, Security, Disaster Response
• Environmental Initiatives
• Cutting-Edge Technology, Innovation
• Partnerships
• Human Resource Development/Employee Satisfaction
• Compliance, Human Rights, Gender

Environmental Achievements

• CO2 emissions down 19.8% (versus FY2021)
• Installed renewable electricity in four buildings of the Real Estate Business Division
• Achieved an “A” ranking from CASBEE (Comprehensive Building Environmental Performance Evaluation System) in Osaka Prefecture for Ibaraki Distribution Center No. 5

Social Achievements

• 92.2% of new graduates who joined the Company on April 1, 2020 remained in the Company’s employment as of April 1, 2023
• 43% of male employees used general care leave system
• Formulated the Mitsubishi Logistics Group Human Rights Policy based on the United Nations Guiding Principles on Business and Human Rights

Governance Achievements

• Increased the number of outside directors by two in June 2021
• Introduced the executive officer system in June 2022
• Adopted CO2 emissions reduction rate as a performance indicator for bonus payment (from payment starting June 2023)

Climate Goals & Targets

Environmental Challenges

• Changes in the business environment (economic fluctuations, logistics rationalization, market trends)
• Damage to business assets from natural disasters
• Reduction in market value and profitability of business assets
• Fair value fluctuations of investment securities
• Compliance risk and human rights issues
• Country risk in overseas business development
• Exchange rate fluctuations
• Tightening of regulations on environmental conservation
• Information security risk
• Risk from infectious diseases

Mitigation Strategies

• Planned capital investment and sophisticated services
• Earthquake resistance and seismic isolation measures, insurance, reserve for private insurance, inspections, maintenance, crisis manuals, training
• Impairment accounting
• Allowance for investment loss
• Code of Conduct, compliance awareness, training, Internal Control and Compliance Committee, Mitsubishi Logistics Group Human Rights Policy, Internal Reporting Hotline
• Management activities in accordance with local laws and regulations, overseas investment insurance
• Financial planning considering exchange rate fluctuations
• Environmental Policy, Environmental Voluntary Plan, Initiatives for ESG Management and the SDGs, energy-saving measures, Disaster-Resistant and Eco-Friendly Warehouses and Office Buildings, low environmental impact equipment and facilities, services that reduce environmental impact, TCFD disclosures, mitigation measures against transition and physical risks
• Server management, information backups, information security education, multilayer defense, software detecting suspicious behavior
• Group-wide efforts to minimize effects

Supply Chain Management

Supplier Audits: Sustainability questionnaire survey with approximately 60 subcontractors

Responsible Procurement

• Mitsubishi Logistics Group Human Rights Policy
• Procurement policy (to be formulated and disclosed)

Climate-Related Risks & Opportunities

Physical Risks

• Increasing severity of disasters
• Rise in average temperature
• Rises in sea level

Transition Risks

• Rising GHG emission-related prices
• Increase in capital investment costs to reduce GHG emissions
• Drop in sustainability ratings

Opportunities

• Reduce energy costs by improving energy efficiency
• Respond to transition to low-carbon/decarbonized society
• Adapt to climate change
• Provide climate change response-related services

Reporting Standards

Frameworks Used: GRI Standards

Certifications: ISO 27001 (Dia Systems Corporation, Fuji Logistics Co., Ltd., Tokyo Branch trunk room office), CEIV Pharma (Kansai and Narita International Airports), GDP (Mitsubishi Logistics Europe B.V., Mitsubishi Logistics Thailand Co., Ltd., P.T. Mitsubishi Logistics Indonesia)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• ML Chain pharmaceutical logistics platform
• Disaster-Resistant and Eco-Friendly Warehouses and Office Buildings

Awards & Recognition

• Noteworthy DX Company in Digital Transformation Stocks (DX Stocks) 2023