Natural Capital (Pollution Prevention, Water Resources, Biodiversity)

The LOGISTEED Group works to identify and appropriately manage the dependencies and impacts of its business activities on natural capital (pollution prevention, water resources and biodiversity). Furthermore, in light of the recommendations of the Taskforce on Nature-related Financial Disclosures (TNFD), we are working to enhance the assessment and disclosure of risks and opportunities related to natural capital.

Action Policy
Respond to the TNFD Recommendations
Targets and Performance
Initiatives

Action Policy

Basic approach

The Group recognizes growing global expectations for companies to address not only climate-related issues but also biodiversity and nature-related issues. We regard these issues as one of our highest management priorities and have identified "Contribute to a recycling-oriented society" as one of our material issues. We are working to reduce our impact on the natural environment through measures such as improving our resource recycling rate and preventing environmental pollution. We have also established "Promote Symbiosis with Nature and Environmental Communications" as one of our environmental policies and are advancing initiatives to conserve biodiversity and ecosystems.

Governance

The Group has established governance under its sustainability promotion framework to advance initiatives related to natural capital (pollution prevention, water resources and biodiversity). Specifically, important sustainability matters, including nature-related issues, are deliberated on and reported at management meetings and other forums, where policies and measures are determined and progress is monitored. Led by the Sustainability Promotion Department within the Corporate Strategy Headquarters, we advance measures in collaboration with Group companies in Japan and overseas, while pursuing continuous improvement through regular monitoring and evaluation. Furthermore, in line with the recommendations of the Taskforce on Nature-related Financial Disclosures (TNFD), we are working to identify risks and opportunities related to natural capital and enhance our governance framework.

Environmental management structure

Respond to the TNFD Recommendations

FY2025 Initiatives

In FY2025, following the organization of heat maps using ENCORE,^*1 we used the LEAP approach^*2 to evaluate and identify our dependence and impact on nature in our business activities. In the scoping phase, to prioritize the sites for analysis, we evaluated overseas sites based on two axes: "size of exclusive area" and "amount of CO₂ emissions," and selected 15 sites in Japan and 9 overseas sites based on criteria such as the top 10% of rankings. For the selected sites, in the "Locate" phase, we identified points of contact with nature (priority areas), and in the" Evaluate" phase, we conducted a survey to identify and evaluate our dependence on and impact on nature, and organized them as a diagram of dependence and impact pathways.

*1ENCORE (Exploring Natural Capital Opportunities, Risks, and Exposure) is a tool jointly developed by the United Nations Environment Programme World Conservation Monitoring Centre (UNEP-WCMC), Natural Capital Finance Alliance (NCFA), and others to assess a company's "dependence on" and "impact on" the natural environment
*2The LEAP approach consists of four components: "Locate", " Evaluate" (evaluation of dependence on/impact on nature), "Assess" (evaluation of nature-related risks and opportunities), and "Prepare" (consideration, planning, and preparation for disclosure).

■Dependence and Impact (Heatmap)

Business	Value chain	Operation Processes	Dependence on nature									Impact on nature
Business	Value chain	Operation Processes	Surface water	Ground water	Water source cultivation function	Water quality	Filtration	Mitigation of sensory impacts	Climate regulation	Flood and storm suppression	Terrain stabilization and erosion control	Use of marine ecosystems	Air pollution	Soil contamination	Water pollution	Solid waste	Water resource usage	GHG emissions	(Noise and other) disturbances
Warehouse	Procurement	Procurement of warehouses and ancillary facilities	VL	VL			L									M
	Procurement	Procurement of logistics equipment and facilities (material handling equipment, etc.)	M	M	M	L	VL	M	VL	M	VL		M	H	H	H	H	H	M
	Operation	Warehouse operations	VL	VL			L									M	L	VL	VL
Transport	Procurement	Procurement of large trucks	M	M	M	L	VL	M	VL	M	VL		M	H	H	H	H	H	M
	Operation	Truck transportation	M	M	M	L	VL	M	VL	M	VL		M	H	H	H	H	H	M
		Rail transportation	M	M					M	M	H		H	L	L			H	H
		Sea transportation	M	M		M			VH	H		H		H	H			H	H
		Air transportation							H	M	M	M	H	L	L			H	H

*VH: Very High, H: High, M: Medium, L: Low, VL: Very Low

■"Locate" phase: Evaluation results by type of area susceptible to impact at priority sites

Japan Overseas	Priority sites	①Areas important for biodiversity	②Areas with high ecosystem integrity	③Areas with low ecosystem integrity	④Areas with high physical water risk	⑤Areas of importance to indigenous peoples and local communities
Japan	15	13（86.7％）	0	13（86.7％）	7（46.7％）	0
Overseas	9	5（55.6％）	0	8（88.9％）	5（55.6％）	0

■"Evaluate" phase: Identification diagram of dependence and impact pathways

■Risks and opportunities

Category		Items associated with heatmap	Description	Risks and opportunities^*1	Timeline^*2	Measures
Risks	Physical	[Dependency] Climate regulation Flood and storm suppression Terrain stabilization and erosion control [Impact] GHG emissions	Suspension of logistics operations and revenue loss caused by extreme weather and increased natural disasters Increase energy costs due to rising temperatures, and costs associated with fitting out the workplace environment	Medium	Mid- to Long-term	Strengthen BCP measures against hazard risks, including wind and flood damage, by decentralizing business sites and enhancing solar power generation systems to establish an early recovery framework Promote energy savings through the introduction of high-efficiency equipment Promote automation/labor-saving/unmanned operations
Risks	Transition	[Dependency] Groundwater/Surface water/Water quality [Impact] Pollution/GHG emissions Noise and other disturbances	Increase costs directed at curtailing emissions due to stricter regulations on greenhouse gas emissions and pollutants related to transportation Decrease in reputation due to inadequate response to pollutants, etc. Decrease corporate evaluation and reputation due to a lack of consideration for ecosystems in warehouse facilities and equipment, and noise and vibration, etc.	Medium	Mid- to Long-term	Utilize vehicles with low emissions, such as non-fossil fuel vehicles, and reduce emissions through operational efficiency improvements Promote environmental mitigation measures, such as emission reduction, ecological considerations in facility development, and controls on noise and vibration, accompanied by enhanced stakeholder communication and disclosure
Opportunities	Resource Efficiency	[Impact] GHG emissions	Reduce energy costs through the adoption of low-carbon technologies	Large	Mid- to Long-term	Advance decarbonization initiatives (renewable energy, introduce non-fossil fuel vehicles, promote of modal shift)
	Reputation	[Dependency] Groundwater/Surface water/Water quality [Impact] General (excluding use of marine ecosystems)	Ensure reliability through the execution of proactive measures addressing pollution and GHG emissions	Large	Long-term	Ensure the effective implementation of measures through appropriate governance and risk management processes
	Products and Services	[Dependency] Flood and storm suppression Terrain stabilization and erosion control	Strengthen resilience by promoting BCP	Medium	Mid- to Long-term	Diversify transportation routes Plan transportation dynamically based on real-time weather data

*1Risks and opportunities listed primarily focus on items deemed to have a medium to large impact
*2Mid-term: 2 to 5 years, Long-term: 6 years or more

Future response policy

Moving forward, we will continue to address the following unaddressed or undisclosed items regarding the analysis of nature-related issues using the LEAP approach.

(1) Quantification in the "Evaluate" phase: Consideration and implementation of the measurement and disclosure of TNFD recommended global core disclosure metrics through the quantification of dependencies and impacts
(2) Transition to the "Assess" phase: Consideration and implementation of the prioritization of nature-related risks and opportunities arising from identified dependencies and impacts

Targets and Performance

The Group has established relevant targets and metrics to systematically address material issues related to natural capital. We continuously manage and evaluate progress and incorporate the results into future measures to further enhance our initiatives.

Promoting green purchasing

We try to promote Green Purchasing when purchasing office supplies by choosing stationery made from recycled materials, recycled paper, etc.

Scope: LOGISTEED, Japan group companies^*1

Green purchasing rate^*2 (FY2025)	Target	Result
Green purchasing rate^*2 (FY2025)	Promoting the purchase of green products	78.3%

*1Excluding ALPS LOGISTICS group

*2Green purchasing rate: the ratio of office supplies purchased at the e-sourcing MALL (an electronic purchasing system) that are environmentally-friendly products.

Reduction of water consumption

Water used for car washing and dust control is also a limited resource, therefore we have been working to reduce the amount of water consumption by using this efficiently.

Scope: LOGISTEED, Japan group companies

Reduction of water consumption intensity per floor space (FY2025)	Target	Result
	YoY -1%	YoY -4％

Reduction of copy paper

To protect forest resources, we have been working to reduce the amount of copy paper used by promoting paperless meeting materials.

Scope: LOGISTEED, Japan group companies

Rate of reducing copy paper consumption (FY2025)	Target	Result
Rate of reducing copy paper consumption (FY2025)	YoY -1%	YoY +23.7%

Scope: LOGISTEED, Japan group companies

Total amount of copy paper used (thousand of sheets) converted to A4 size	FY2023	FY2024	FY2025
	118,826	132,410	163,750

Initiatives

The Group applies its response to natural capital-related issues into concrete measures and works to reduce environmental impact and conserve biodiversity. The Group's principal initiatives aimed at achieving coexistence with nature are introduced below.

Boosting communication on the environment

As part of our environmental communication activities, in terms of external activities, we continue to apply for and receive awards from various logistics industry associations, including the Logistics Structural Reform Award at Excellent Logistics Partnership Commendation Program 2024. Additionally, as part of our internal activities, since 2010, we have annually been holding the Expanded Global Business Meeting (EGBM) where top management from across the Group and from around the world gather to engage in lively discussions on a variety of issues, including those related to the environment.

Posting education articles in the company magazine

We publish a newsletter for employees that includes general knowledge about the environment, examples of initiatives within the Group, and topical information in order to raise employees' environmental awareness and urge active participation in environmental initiatives. In FY2025, we published an environmental newsletter to raise employees' environmental awareness and encourage their participation in environmental activities. Going forward, we will continue to disseminate information on natural capital, including biodiversity conservation and pollution prevention, while enhancing each employee's understanding and fostering greater awareness of environmental conservation activities.

Establishment of clean-up activities/light-down -environment month

As environmental communication activities, we have implemented clean-up activities and light down around our sites.

In order to promote the understanding of employees regarding the environment, in line with World Environment Day on June 5, which is set by the United Nations, since FY2015 we have designated June, including this day, as the Group Environment Month, and has been promoting environmental beautification activities and social contribution activities around the common theme of "contribution to local community."

Clean-up activities around sites

Tree-planting establishment around sites (Before)

Tree-planting establishment around sites (After)

Community cleanup volunteer activities

Eco cap activity

Green curtain installation

Overseas environmental activities

Three group companies in Malaysia^* jointly held a cleanup event in August 2025, with approximately 100 volunteers, primarily employees, participating. This event was cosponsored by the Department of Irrigation and Drainage of Hulu Langat District, Selangor. On the day, the volunteers collected approximately 250 kilograms of waste, mainly along the river, and disposed of it appropriately. Moving forward, our group will continue to promote activities that contribute to ecosystem conservation together with local communities.

*LOGISTEED Malaysia Sdn. Bhd., LOGISTEED Forwarding Malaysia Sdn. Bhd., LOGISTEED Solutions Asia-Pacific Sdn. Bhd.