Nippon Express : CSR Data Book 2021

Nippon Express Group

CSR Data Book 2021

Contents

Editorial Policy

Scope of This Report

Reporting Period

Issue Date Reference Guidelines

Contact

1. Company Information ・Financial Information

3			・Global Network
		・Involvement in Initiatives
4		ESG Management	・Measures to Deal with COVID-19
	・Reconfirming of Materiality Assessment
5			・Main ESG Issues
	Stakeholder Engagement
6
7		・Environmental Management
	・Reduce CO2 Emissions by Reinforcing Controls on Climate Change
8		・Provide Logistics Technologies and Services with Low Environmental Impact
9		・Strengthen Adaptive Capacity and Resilience in the Face of Climate Change
10		・Promote Resource Recycling
	・Protect Terrestrial and Marine Ecosystems
11		・Environmental Data
13

Respect for Human Rights

・Ensure Robust Respect for Human Rights in The Supply Chains

1. ・Secure Occupational Health
2. A Workplace That Supports Sustainable Growth
   ・Create Job Satisfaction in the Workplace
   ・Train Human Resources Who Can Work Globally
3. ・Promote Diversity and Inclusion
4. ・Promote Workstyle Innovation

20		・Employee Data
21		Innovation Based on Collaboration and Co-creation
		・Strengthen Global Partnerships
22		・Contribute to Sustainable and Tough Infrastructure Development
	Community Involvement
	・Contribute to Society Through Our Business Operations
24

Sound Company Conduct

・Promote Fair Business Practices

25 ・Implement Robust Anticorruption Measures ・Ensure Occupational and Social Safety

1. ・Maintain Social Safety Involving Logistics
2. ・Encourage Global Quality to Meet Expectations from Customers and Society
3. Corporate Governance
   ・Enhance Corporate Governance ・Personal Data Protection
4. ・Risk Management

Up until now, the Nippon Express Group have reported annually on initiatives to solve social issues and realize a sustainable society through the business of our in the Nippon Express Group CSR Report.

In compiling this report, we have decided to publish it as a CSR Data Book, which is a concise and concrete summary of the Group's concept, stance and initiatives for CSR activities, so that a wide range of stakeholders can understand them, while maintaining consistency with the Integrated Report that we began publishing in the previous fiscal year.

This Report covers CSR-related activities and the management structure of the Nippon Express Group (including Group affiliates in Japan and overseas). Some of the material reported applies only to Nippon Express Co., Ltd.

Fiscal 2020 (April 1, 2020-March 31, 2021) (certain sections may include information prior to fiscal 2019 and up to 2021)

July 2021 (the previous report: July 2020, published as the CSR Report)

・GRI Sustainability Reporting Standards (Core option)

・Environmental Reporting Guidelines 2018 by the Ministry of the Environment

CSR Promotion Division Nippon Express Co., Ltd.

1-9-3Higashi-ShimbashiMinato-ku, Tokyo 105-8322, Japan Phone: [phone] Fax: [phone]

URL https://www.nittsu.co.jp

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Nippon Express Group CSR Data Book 2021

Company Information

Financial Information

Revenue (consolidated)	Net income (consolidated)
(Unit: hundred million yen)				(Unit: hundred million yen)
25,000	21,385	20,803	20,791	600	493				561
20,000	500
15,000										400
									300
10,000
									200				174
5,000										100
0										0
2019.3	2020.3	2021.3	2019.3	2020.3	2021.3

Total assets (consolidated)

Net assets (consolidated)

(Unit: hundred million yen)		(Unit: hundred million yen)	6,007
20,000				6,000	5,604	5,565
	15,180 16,318
15,000	15,366	5,000
			4,000
10,000				3,000
5,000				2,000
			1,000
0	2019.3	2020.3	2021.3	0	2019.3	2020.3	2021.3

Global Network: (As of March 31, 2021)

Number of	Number of	Number of	Number of
countries	cities	locations	employees overseas
47	314	733	21,520

Total number of

locally hired presidents

12 (This means the total number of locally hired presidents or chairmen of companies in the Nippon Express Group. For acquired companies, only those at the top of their corporate group areincluded in the count.)

Europe

• NIPPON EXPRESS EUROPE GMBH
• NIPPON EXPRESS (DEUTSCHLAND) GMBH
• NIPPON EXPRESS (NEDERLAND) B.V.

● NIPPONEXPRESS (U.K.) LTD.

• NIPPON EXPRESS (RUSSIA) L.L.C. etc.

East Asia

• NIPPON EXPRESS (CHINA) CO., LTD.
• NIPPON EXPRESS (H.K.) CO., LTD.
• NIPPON EXPRESS AUTOMOTIVE LOGISTICS

(CHINA) CO., LTD.

• NIPPON EXPRESS (TAIWAN) CO., LTD.
• NIPPON EXPRESS KOREA CO., LTD. etc.

South Asiaand Oceania

• NIPPON EXPRESS (SOUTH ASIA & OCEANIA)

PTE., LTD.

• NIPPON EXPRESS (SINGAPORE) PTE., LTD.
• NIPPONEXPRESS (MALAYSIA) SDN. BHD.
• NITTSU LOGISTICS (THAILAND) CO., LTD.
• NIPPONEXPRESS (VIETNAM) CO., LTD.

etc.

Americas

• NIPPON EXPRESS USA, INC.
• NIPPON EXPRESS CANADA, LTD.
• NIPPON EXPRESS DE MEXICO, S.A. DE C.V.
• NIPPON EXPRESS DO BRASIL TRANSPORTES INTERNACIONAIS LTDA．
  etc.

Sales by segment (consolidated) (Unit: 1 million yen)

Logistics support	Logistics
447,837	1,666,507
Heavy haulage
and construction
45,877
Security transportation	2,079,195
69,239	million yen
South Asia and Oceania
114,738
East Asia
143,689	Japan
Europe	1,212,803
117,134	Americas
	78,141

*The value in the center of the graph excludes adjustments.

Employees by segment (consolidated)

Logistics support	Adjustment* 153
Heavy haulage	3,990
and construction		Logistics
846		60,822
Security transport
6,555
South Asia
and Oceania		72,366
7,503
East Asia		employees
4,658
Europe
3,394		Japan
Americas	42,401
	2,866

*Adjustment: Employees engaged in the administration of the Company and group companies.

*Overseas employee data as of December 31, 2020

Key Locations /Facilities Established in Fiscal 2020	● Nippon Express USA, Inc, Chicago Logistics Center
	● Nippon Express USA, Inc., Huntsville Logistics Center
	● Nippon Express de Mexico, S.A. de C.V. Guanajuato-Apaseo Logistics Center
	● Nippon Express Global SCM (Shanghai) Co., Ltd. Qingpu Phase	II	Warehouse
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Nippon Express Group CSR Data Book 2021

Involvement in Initiatives

Nippon Express involves itself proactively in many different outside organizations and forums in the logistics industry relating to the environment and society. We are committed to contributing to a sustainable society.

Outside organizations and positions

Ministry of Land, Infrastructure, Transport and Tourism

Ad Hoc Committee Member, Environmental Division, Transport System Subcommittee, Council of Transport Policy

Keidanren (Japan Business Federation)

Member of Committee on Corporate Behavior, & SDGs Committee, Environmental Safety Committee, Special Committee for Post-EarthquakeRe-construction (Industrial and Regional Reconstruction Subcommittee)

Keidanren Committee on Nature Conservation

Vice chairman and member of Planning Division

Japan Association for Logistics and Transport

Member of Logistics Environmental Action Committee

Japan Trucking Association

Member of Environmental Action Committee and Environmental Action Subcommittee

Tokyo Employers' Association

Member of Environmental Committee

Tokyo Chamber of Commerce and Industry

Committee member of Certification Test for Environmental Specialists

Measures to Deal with COVID-19

Facilitating logistics as a social infrastructure company

In order to respond in a timely manner to changes in the situation regarding the COVID-19 pandemic, we established a general task force at the headquarters led by the president in February 2020 and also set up task forces at our major branches in Japan and overseas. The task forces cooperate on gathering information and taking action. To ensure the safety of our staff members and their families, the Nippon Express Group told its expatriate employees and their families to temporarily return to Japan in accordance with the level of pandemic risk announced by the Japanese Ministry of Foreign Affairs.

In addition, in order to place the highest priority on the safety and health of our customers, employees and their families, and to fulfill our mission as a social infrastructure company and designated public institution, we implemented thorough infection prevention measures and measures to prevent the spread of infection, and transported medical supplies such as masks and protective clothing to medical facilities.

In response to the declaration of a state of emergency in April 2020, the head office implemented remote work for more than 70% of staff by limiting the number of employees coming to the office to remote work in principle when possible. When the emergency declaration was reissued in January and April 2021, the number of employees working remotely was reduced as much as possible, and more than 70% of the head office employees worked remotely. Our branches have encouraged telework and staggered work shifts to the extent that their business operations would not be hampered, because they could not stop operating completely. Nippon Express is also a designated public corporation according to the Act on Special Measures for Pandemic Influenza and New Infectious Diseases Preparedness and Response that went into force in April 2013. Top priority is given to the transportation of supplies requested by the national government or local public organizations. In addition, we do everything we can to meet the requests of many customers to support social infrastructure through logistics.

We have been designated a designated public corporation, and we believe that our responsibility is not only to comply with the requests of the national government or local public organizations, but also to fulfill the extremely important mission entrusted to us by society.

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Nippon Express Group CSR Data Book 2021

ESG Management

Reconfirming of Materiality Assessment

In order to achieve the Nippon Express Group's long-term vision of becoming a logistics company with a strong presence in the global market, we have reviewed our materiality initiatives for 2021 In addition to the perspective of providing value to stakeholders, which is the same as the perspective of key issues that we have previously communicated, we have evaluated the issues from the perspective of priority in business terms to make them consistent with the management plan.

*Please see the Integrated Report for detailed information on the materiality initiatives identification process.

Priority according to the stakeholder perspective

	Respecting Human Rights in the Supply Chain ●	Six Materialities			Six Materialities
	Recycling of Resources ●	Improving	Employee Engagement
	Preventing Pollution of the Atmosphere, Soil, Etc. ●		Addressing	Climate Change	● Pursuing	Business		Business activities targeted
			for priority investment in the
			StrengtheningGovernance	Digitalization	and DX
	Preserving Ecosystems ●			immediate future to achieve
		● Improving Quality and
	Appropriate Use of Water ●	Building a Sustainable and Resilient ●	our Long-Term Vision.
	Creating New Value
		Logistics Infrastructure
	Correcting Inequality and Disparity ●							Current and Future Trends
			● Job Creation	(Published in Our CSR Data Book
	Health and Welfare ●	and Website)
	● Strengthening Risk	While not materialities per se, we will
	Poverty and Hunger ●
			continue to address these topics as a
			Management
								matter of course in line with
								international standards.
								We will monitor future trends closely,
								as these topics may become trends
								subsequently.
	● Topics related to creating value through our businesses (Value Creation)				Potential Topics in Future
	● Topics that tie to the source of value creation
					Business Creation
	● Topics related to avoiding value loss (Risk Mitigation)					We will examine the impact of these
								topics by identifying issues that align
								with our value creation engine.
	Priority according to the business perspective
				(Not disclosed)

Main ESG Issues

In this CSR Data Book, the Nippon Express Group's initiatives, including the main ESG issues identified in the above materiality assessment, are described separately for each ESG.

Issues	● Addressing Climate Change	● Building a Sustainable and	● Strengthening Governance
● Recycling of Resources	Resilient Logistics Infrastructure	● Strengthening Risk Management
● Preventing Pollution of the	● Respecting Human Rights in the	● Improving Quality and Creating
Atmosphere, Soil, Etc.	Supply Chain	New Value
ESG	● Appropriate Use of Water	● Job Creation
● Preserving Ecosystems	● Improving Employee Engagement
Main
	● Pursuing Business Digitalization
	and DX
Book	● Environmental management	● Ensure robust respect for human	● Promote fair business practices
● Reduce CO2 emissions by	rights in the supply chains	● Implement robust anticorruption
reinforcing controls on climate	● Secure occupational health	measures
Data	change	● Create job satisfaction in the	● Ensure occupational and social
● Provide logistics technologies and	safety
workplace
CSR	services with low environmental	● Train human resources who can	● Maintain social safety involving
impact	logistics
● Strengthen adaptive capacity and	work globally	● Encourage global quality to meet
the
resilience in the face of climate	● Promote diversity and inclusion	expectations from customers and
in	change	● Promote workstyle innovation	society
Description	● Promote resource recycling	● Strengthen global partnerships	● Enhance corporate governance
● Protect terrestrial and marine	● Personal data protection
● Contribute to sustainable and tough
ecosystems	● Risk management
	infrastructure development
	● Contribute to society through our
	business operations

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Nippon Express Group CSR Data Book 2021