Climate Change Data

Environmental Metrics

ESG Focus Areas

• Not disclosed

Environmental Achievements

• Acquired solar power generation equipment (¥19 million)

Social Achievements

• Not disclosed

Governance Achievements

• Established a compliance promotion office and implemented corporate conduct guidelines and compliance regulations.

Climate Goals & Targets

Environmental Challenges

• Decreased domestic freight volume due to reduced domestic consumption.
• Slow recovery of export cargo handling volume due to the slowdown of emerging economies and prolonged high yen.
• Overseas relocation of manufacturing bases and decreased domestic production.
• High oil prices, spread of fuel-efficient vehicles, and energy conversion leading to reduced demand for oil transportation.
• Decreased sales in the warehouse business.
• Decreased delivery volume due to the high yen.
• Potential impact of rising import prices on corporate procurement costs and profits.

Mitigation Strategies

• Strengthening sales capabilities and improving operational efficiency.
• Proposing logistics reforms to customers and requesting the introduction of fuel surcharges.
• Streamlining operations and focusing on early acquisition of customer and cargo information.
• Developing new customers and expanding transactions with existing major customers.
• Establishing a system to stably supply products to customers by collecting recycled drums nationwide.
• Thorough operational efficiency to secure profits.
• Strengthening inter-departmental collaboration and promoting safety management, risk management, and compliance.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Not disclosed

Environmental Achievements

• Not disclosed

Social Achievements

• Not disclosed

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Decreased domestic freight volume due to reduced domestic consumption.
• Slow recovery of export cargo handling volume.
• End of earthquake reconstruction demand in tank cleaning and repair business.
• High oil prices.
• Strengthened environmental regulations related to air pollution in freight transportation business.
• Impact of climate conditions on transportation volumes.
• Fluctuations in material prices (steel, oil).
• Impact of overseas demand fluctuations on port transportation, customs brokerage, and warehousing businesses.
• Impact of bidding system on tank cleaning and repair, and oil/drum sales businesses.

Mitigation Strategies

• Strengthening sales capabilities and improving operational efficiency.
• Cost reduction efforts (fuel, vehicle rental fees).
• Thorough cost reduction.
• Human resource development.
• Strengthening inter-departmental collaboration.
• Establishment of a safety management system and risk management.
• Emphasis on cost management through a cost management system in the freight transportation business.
• Improving transportation efficiency.
• Increasing handling volume from existing clients and acquiring new clients.
• Addressing diesel vehicle emission regulations through mid-to-long-term equipment planning.
• Sharing group-wide departmental information and close collaboration to improve profitability.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Reduced transportation volumes due to weather conditions (e.g., warm winter, cool summer).

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Not disclosed

Environmental Achievements

• Not disclosed

Social Achievements

• Not disclosed

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Declining domestic demand in port transport and customs business and decrease in import handling volume due to the weak yen; Decrease in revenue due to the termination of business entrusted to Nakatsu branch in freight trucking business; Driver shortage, rising fuel prices, and abolition of highway discounts in the trucking industry; Declining sales for several years in warehousing business; Intensified competition and management pressure due to further reduction in construction volume in the petroleum and power industries in tank cleaning and repair business; Decreasing domestic usage of petrochemical energy, making securing sales volume difficult in petroleum sales; Securing new customers for recycled drums in drum sales.
• Rising fuel costs and increased expenses for safety measures (digital tachograph installation and dashcam installation in all vehicles).

Mitigation Strategies

• Strengthening sales capabilities to increase sales and improve operational efficiency; Implementing cost reduction measures, including business improvement, efficient re-allocation of employees, and thorough cost management; Implementing a fuel surcharge system and revising freight rates; Switching to load-type tanks to improve transport efficiency; Considering multi-workstation operations to handle dangerous goods; Thorough cost reduction efforts through streamlining, labor-saving measures, and personnel support systems; Strengthening relationships with existing clients and developing new clients; Focusing on profitable sales and acquiring excellent customers; Strengthening sales capabilities to acquire new customers for recycled drums and securing stable supply capacity through a nationwide collection network; Further strengthening bases for recycled drums; Promoting sales by improving efficiency and securing profits in distribution; Strengthening sales capabilities to maintain and expand sales in port transport and customs business; Active sales development to increase sales and secure profits in freight trucking business; Actively seeking new customers to increase sales and secure profits in warehousing business; Focusing on accident prevention and safety management in tank cleaning and repair business.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Decreased transportation volume of petroleum products due to warm winters and decreased transportation volume of air-cooling gas due to cool summers

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Safety Management
• Risk Management
• Compliance

Environmental Achievements

• Completed installation of digital tachometers and driving recorders in all vehicles.

Social Achievements

• Not disclosed

Governance Achievements

• Established a Compliance Promotion Office to promote compliance.
• Established risk management basic policy, risk management regulations, and management crisis countermeasures regulations.

Climate Goals & Targets

Environmental Challenges

• Driver shortage in the logistics industry.
• Increasing costs associated with replacing aging vehicles and facilities.
• Decreasing domestic consumption of petrochemical energy.
• Competition intensification and price reduction in the tank cleaning and repair business.

Mitigation Strategies

• Strengthening sales and improving operational efficiency.
• Expanding insurance business.
• Strengthening sales capabilities and expanding supply capacity by utilizing a nationwide collection network.
• Thorough improvement of operations and further safety measures.
• Strengthening management constitution and improving transportation quality from both aspects of transportation safety management and environmental management.
• Creating a workplace with a sense of fulfillment to secure crew members.
• Strengthening personnel development to deal with changes in logistics operations.
• Deepening cooperation with existing clients and promoting the development of new clients.
• Focusing on profitable sales and acquiring excellent customers.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Decreased transportation volume due to warm winters and cool summers

Transition Risks

• Strengthened environmental regulations

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Not disclosed

Environmental Achievements

• Not disclosed

Social Achievements

• Not disclosed

Governance Achievements

• Obtained AEO (Authorized Economic Operator) certification in February 2022.

Climate Goals & Targets

Environmental Challenges

• Prolonged economic stagnation due to the COVID-19 pandemic and global semiconductor shortage.
• Rising fuel prices and chronic driver shortage in the logistics industry.
• Uncertainty in economic outlook due to the war in Ukraine, rising energy and resource costs, and stock market decline.

Mitigation Strategies

• Strengthening sales capabilities, human resource development, vehicle investment, and operational efficiency improvements.
• Cost reduction through operational efficiency and thorough safety measures.
• Utilizing benefits from AEO certification for efficient customs operations and business strategy.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed