Material Issues
The LOGISTEED Group Material Issues
The Group identified 15 material issues in FY2017 and developed four Focus Areas from CSV* viewpoint, but we reviewed the material issues in FY2021 in light of drastic changes in issues and management environment relating to sustainability. In doing so, we identified material issues not only from ESG perspective but also in consideration of their relevance to solutions for social issues in the logistics industry and the business strategy. As a result, we identified a total of 12 material issues including those with strong focus on business and those unique to logistics operations, which is a social infrastructure, such as "Prevent accidents during operation" and "Enhance disaster prevention/mitigation."
With the recognition of the identified material issues as the social responsibility that the Group should fulfill, we promote effective activities toward solving social issues.
*Creating Shared Value (CSV): Refers to practices that balance activities to create economic benefits with solutions to social issues, or management strategies to achieve them
Identification process
Step 1: Identified issues
- Understood issues of previous material issues identified in FY2017
- Identified ESG issues (SDGs, evaluation items by ESG rating agencies, disclosure guideline for non-financial information, material issues in the logistics industry, issues in our business strategy, strategic issues of corporate divisions)
- Created a list of material issues
Step 2: Prioritized issues
- Assessed the importance for stakeholders(Assessment weight of each industry by ESG rating agencies, Issues considered important by institutional investors, Investor survey)
- Assessed the importance the LOGISTEED Group (LOGISTEED WAY, our business measures, ESG initiatives, Medium-to-Long-term environmental targets, etc.)
Step 3: Checked the adequacy
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Assessment by the management
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Assessment of material issues by the management
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Discussion at the management workshop based on the assessment result in 1
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2.
Check of the adequacy by external experts
Interview by external experts about the assessment process and adequacy of material issues
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3.
Check of adequacy and approval by the Board of Directors
Developed Focus Areas and KPIs based on material issues
Material issues
- Contribute to decarbonized society
- Contribute to recycling-oriented society
- Secure diverse human resources to support growth
- Realize safe, healthy and rewarding workplace
- Establish a responsible supply chain in which human rights are respected
- Governance and compliance
- Prevent accidents during operation
- Risk management
- Build and evolve resilient, sustainable logistics services
- Step up DX
- Establish business models through collaborative innovation
- Enhance disaster prevention/mitigation
Check the adequacy of material issues
In the material issues review conducted in FY2021, we carried out dialogue with external experts on identified processes and identified adequacy of material issues.
Development of Focus Areas
To decide specific activities for the issues that we should address with priority, out of the 12 material issues identified, we classified those related to value creation into three "Focus Areas"; and we classified those related to the business base, such as compliance and risk management, into "Supportive foundation for the Focus Areas." We also clarified the relation between the Focus Areas and SDGs.
The Group is fully aware of the importance of achieving the Sustainable Development Goals (SDGs*), the universal goals the international community is aiming to reach by 2030.
Among the 17 SDGs the following eight goals are especially relevant to our Focus Areas. We will work with various stakeholders to do our part in achieving these SDGs as we move into high gear to reach our goals.
SDGs: Sustainable Development Goals
SDGs were unanimously adopted by 193 UN member nations at the UN Sustainable Development Summit held in September 2015. SDGs are essentially a universal call to action, involving both developing as well as developed countries, and a commitment to "leave no one behind."
Focus Area1Contribute to Decarbonized/Recycling-oriented Society
We aim to contribute to a decarbonized, recycling-oriented society by promoting initiatives to reduce greenhouse gas (CO2) emissions, improve the efficiency of energy use, reduce / avoid resource use, and prevent environmental pollution.
Material issues
- Contribute to decarbonized society
- Contribute to recycling-oriented society
Focus Area2Build and Evolve Resilient, Sustainable Logistics Services
We are working to sophisticate its supply chain optimization services and enhance its warehousing and transport businesses with an aim to build and evolve resilient and sustainable logistics services with a high level of safety/quality/productivity that contribute to solving social issues.
Material issues
- Build and evolve resilient, sustainable logistics services
Focus Area3Create New Values through Collaborative Innovation
We have been promoting DX and collaborative innovation across industries to create new values.
Material issues
- Secure diverse human resources to support growth
- Step up DX
- Establish business models through collaborative innovation
Supportive Foundation for the Focus Areas
We define matters related to our business base, such as safety, enhancement of disaster prevention/mitigation, and respect for human rights, as "Supportive Foundation for the Focus Areas," and take various measures to accelerate initiatives for three Focus Areas.
Material issues
- Realize safe, healthy, and rewarding workplace
- Establish responsible supply chain in which human rights are respected
- Governance and compliance
- Prevent accidents during operation
- Risk management
- Enhance disaster prevention/mitigation
Main initiatives in Supportive Foundation for the Focus Areas（PDF, 414kBytes） 
KPIs for Material Issues
We have set KPIs for 12 identified material issues based on the priority measures, etc. of the Mid-term Management Plan. We will promote group-wide initiatives to address issues, manage the progress of KPIs, promote information disclosure, and aim to realize a sustainable society through dialogues with stakeholders.
| Focus Areas | Material issues | KPIs | LOGISTEED | Japan | Overseas | FY2025 achievements | Targets Unless otherwise stated, the figures represent targets for FY2027 |
|---|---|---|---|---|---|---|---|
| Focus Area 1 | Contribute to decarbonized society | Reduction of CO2 emissions*1 | ● | ● | Down by 4% from FY2013 * Down by 21% from FY2013 when excluding the impact of consolidating ALPS LOGISTICS within the Group |
FY2030: Down by 50% from FY2013 | |
| Support customers' decarbonization by providing SCDOS "Decarbonization Monitoring Service" | ● | ● | ● | Proposed the SCDOS EcoLogiPortal (CO2 emission visualization solution) to numerous customers both Japan and overseas, and supported the visualization and reduction of CO2 emissions generated in their logistics areas | Achieve annual targets for the number of companies we approach | ||
| Promote initiatives to set CO2 emission reduction targets including supply chains | ● | ● | ● |
Japan: Continued aggregation and operation of Scope 1-3 data Overseas: Continued aggregation and operation of Scope 1-2 data and completed the construction of a Scope 3 calculation system and scheme |
Establish a framework and scheme for calculating supply chain emissions, including international operations | ||
| Contribute to recycling-oriented society | Recycling rate*2 | ● | ● | ● | Japan: 99% Overseas: Constructed a recycling rate collection scheme |
Maintain 99% every fiscal year | |
| Promote initiatives to build a circular economy business model | ● | ● | Participated in a demonstration project aimed at building a resource circulation system for used EV batteries | Keep track of the achievements | |||
| Focus Area 2 | Build and evolve resilient, sustainable logistics services | Support customers' SCM*3 with SCDOS | ● | ● | ● | Proposed solutions to numerous customers both in Japan and overseas, and supported the improvement of their SCM | Achieve annual support targets |
| Realize a comfortable workplace by installing automated/labor-saving equipment at logistics centers | ● | ● | ● | Installed automated/labor-saving equipment for cargo handling and delivery at multiple logistics centers in Japan and overseas, saving 100 FTE*4 per year compared to FY2024 | Mechanize cargo handling work (100 FTE per year) | ||
| Contribute to safe and more efficient transport by expanding user network of each "SSCV" function | ● | ● |
Expanded the LOGISTEED Group's ecosystem through the installation of "SSCV" (1) Smart: Installed at a total of 1,072 partner companies (2) Safety: Installed in a total of 4,629 vehicles (of which, 1,403 are vehicles operated by partner companies) (3) Vehicle: Installed in a total of 4,374 vehicles |
Achieve the targets to install: (1) Smart: partner companies (2) Safety: vehicles of group & partner companies (3) Vehicle: the LOGISTEED Group's vehicles*5 |
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| Enhance transport business to realize sustainable logistics | ● | ● | Number of violations of labor standards regarding drivers: 0 | Number of violations of labor standards regarding drivers: 0 | |||
| Expand GDP compliant equipment at medical DCs | ● | ● |
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Complete installations in target sites | |||
| Focus Area 3 | Secure diverse human resources to support growth | Implement education to develop human resources with DX skills | ● | ● |
|
All eligible employees complete training according to their skill levels | |
| Number of key management positions for which succession plans are prepared | ● | ● | ● | Number of key management positions for which succession plans are completed: 10 | Gradually increase the number of target positions from FY2025 to FY2027 | ||
| Improve operational efficiency through the introduction of digital tools such as generative AI and low-code tools | ● | ● | ● | Digital fit rate: 1.21% year-on-year improvement | FY2025: 1.1% year-on-year improvement in digital fit rate | ||
| Improve the score of sustainable engagement in the employee engagement survey | ● | ● | ● | Benchmark score clear rate by country*7: 58% | Benchmark score clear rate by country: 100% | ||
| Ratio of female managers | ● | 7.9% | FY2025: 8% | ||||
| Step up DX | Construct and deploy a company-wide optimization management foundation driven by KPIs and data | ● | ● | ● | Completed the renewal of ERP systems for group companies in Europe and North America as planned, and promoted the unification of code systems and integration of data models globally | Complete the renewal of ERP systems at overseas group companies and build an integrated data infrastructure to support the realization of data-driven management | |
| Implementation of Resource Control System | ● | ● | ● | Installed in 88 warehouse projects | Achieve the target number of installation | ||
| Number and percentage of DX related patent applications included in the total patent applications (publication) | ● | ● | ● | Number of DX-related patent applications: 8 Share of DX-related patent applications: 80% |
Keep track of the achievements | ||
| Establish business models through collaborative innovation | Develop new services and business models through collaborative innovation | ● | ● | ● | Conducted demonstration project in collaboration with partner companies aimed at optimizing power usage and improving operational efficiency in EV truck operations | Keep track of the achievements | |
| Supportive Foundation for the Focus Areas | Realize safe, healthy, and rewarding workplace | Workplace accident frequency rate/severity rate | ● | ● | Frequency rate: 0.80 Severity rate: 0.167 | Keep track of the achievements | |
| Number of serious accidents (fatal workplace accidents) | ● | ● | ● | Japan: 1, Overseas: 1 | 0 | ||
| Rate of paid leave taken | ● | ● | 59.9% | Keep track of the achievements | |||
| Rate of sick leave days*8 -Promote health and productivity management- |
● | ● | 1.00％ | Keep track of the achievements | |||
| Establish a responsible supply chain in which human rights are respected | Promote initiatives to develop a business platform that respects human rights | ● | ● | ● | Continued risk mitigation activities such as compliance with the Australian Modern Slavery Act and support for foreign technical intern trainees | Keep track of the achievements | |
| Human rights education | ● | ● | ● |
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Keep track of the achievements | ||
| Strengthen implementation of compliance screening for business partners | ● | ● | ● | Continued to conduct annual screening of customs clearance contractors and performed compliance checks on major overseas business partners | Keep track of the achievements | ||
| Governance and compliance | Attendance rate for LOGISTEED Group Code of Conduct education (e-learning)*9 | ● | ● | ● | 96.0% (75,056 participants in total) | Every fiscal year: 100% | |
| Ratio of female, non-Japanese nationals, and mid-career hires among executive officers*10 | ● | 31% (as of March 31, 2026) | Over 25% | ||||
| Reflect evaluation of sustainability initiatives, etc., in executive compensation | ● | In FY2025, we incorporated the achievement status of CO2 emission reduction and engagement survey results into the evaluation for annual bonuses for executive officers and operating officers, and also considered expanding the items subject to evaluation | Maintain and continue evaluation items | ||||
| Prevent accidents during operation | Reduce the "four major accidents"*11 to zero in Japan and overseas and cut loss costs | ● | ● | ● | Number of the four major accidents in Japan and overseas: 13 (year-on-year: -13) Loss cost: 20% reduction year-on-year |
Keep track of the achievements | |
| Implement measures to strengthen prevention | ● | ● | ● |
|
Keep track of the achievements | ||
| Reduce incidents during vehicle operation by utilizing "SSCV-Safety" | ● | ● | Number of incidents*13: 0.008 (Down by 20% YoY) The rate of serious accidents involving the LOGISTEED Group's vehicles was approximately 80% lower than the national average as of FY2023*14. As a further measure to prevent accidents in advance, we are promoting the visualization of incidents to reduce the number of close calls. |
Keep track of the achievements | |||
| Risk management | Conduct company-wide disaster prevention training and overseas BCP caravans*15 | ● | ● | ● |
|
Keep track of the achievements | |
| Number of information security incidents | ● | ● | ● | 0 | Every fiscal year: 0 | ||
| Attendance rate for information security training course and rate of targeted threat emails for simulation trainings opened | ● | ● | ● |
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Every fiscal year: 100% attendance/Open rate: 10% |
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| Enhance disaster prevention/ mitigation |
Enhance functions of the Centralized Safety and Quality Control Center | ● | ● | Installed advanced video management systems and other technologies at eight distribution centers in Japan (cumulative total), expanding remote monitoring of unsafe behaviors and hazardous events | Keep track of the achievements | ||
| Introduce firefighting visualization systems at new sites | ● | ● | ● | Moved forward with the introduction of systems at ALPS LOGISTICS Group sites in Japan, etc., and completed introduction at approximately 680 buildings (cumulative) | Keep track of the achievements | ||
| Conduct trainings for initial response at disasters | ● | ● | Conducted initial response training group-wide assuming natural disasters such as earthquakes: 14 companies (218 participants) | Keep track of the achievements |
- *1Total of Scope 1 and 2
- *2Recycling Rate for Packaging Materials
- *3Supply chain management
- *4Full-Time Equivalent: A unit of the full-time work amount in an organization
- *5Trucks, commercial vehicles, forklifts
- *6Certain components of training programs have been excluded from aggregate totals as these have been incorporated into the "VC Basics Course" e-learning program for all employees
- *7Proportion of companies implementing engagement surveys exceeding the country-specific benchmark scores provided by Willis Towers Watson
- *8Rate of sick leave days = (Number of sick leave days/Total prescribed working days for employees) × 100
- *9Training themes for FY2025 include conflicts of interest, laws and regulations on importing and exporting, money laundering, insider trading, political contributions and lobbying, integrity of records and reports, respect for human rights, antitrust law, and bribery
- *10Percentage for executive officers and operating officers
- *11Serious at-fault vehicle accidents, on-site work accidents, fire accidents, and heavy machinery accidents
- *12SSCV-Safety service is available only in Japan
- *13Average number of incidents per month per vehicle in operation owned by the LOGISTEED Group
- *14Calculated based on the "Data on Traffic Accidents Involving Commercial Vehicles (2023)" published by the Institute for Traffic Accident Research and Data Analysis. While the national average driving distance per accident stands at 46.5 thousand kilometers, for the LOGISTEED Group this figure is 236 thousand kilometers.
- *15Activities to build and improve risk management systems in overseas sites by sending instructors from Japan
- *16LOGISTEED China, Ltd., PT LOGISTEED Indonesia Forwarding, PT LOGISTEED Indonesia, PT VANTEC INDOMOBIL LOGISTICS, LOGISTEED INDIA PRIVATE LIMITED, MARS LOGISTEED GROUP LOJISTIK ANONIM SIRKETI
- *17The scope includes LOGISTEED and Japan group companies, with some exceptions for overseas group companies
Integrated Report 2026 (P43-48) Material Issues and KPI (PDF format, 513kBytes)