CSR Report 2011 Delivering Your Passion Across the Globe

CSR Report 2011 Delivering your passion across the globe

Editorial Policy •This report covers the Nippon Express Group’s corporate social responsibility (CSR) initiatives during scal 2010, and comprises such features as an explanation of our CSR management structure, reports on our activities and performance data. •We have attempted to provide an understanding of the logistics industry’s CSR efforts by describing industry conditions, environmental challenges, recent policy measures and other factors behind our initiatives. •In addition to the use of illustrations and photographs, we have endeavoured to keep the text easy to understand. •In writing this report we have referred to the Environmental Reporting Guidelines (2007 Version) (published in June 2007 by Japanese Ministry of the Environment) and the GRI Sustainability Reporting Guidelines 2006. •This report also includes information about ongoing initiatives launched in or prior to scal 2009. This is to provide an overall understanding of CSR in our business.

Scope of This Report This report covers CSR-related initiatives and the management structure of the Nippon Express Group (including Group af liates in Japan and overseas). Some material reported here applies only to Nippon Express Co., Ltd.

Applicable Period April 1, 2010 to March 31, 2011 In certain places we have used data covering up to June 2011 for matters deserving special mention. CSR Report 2011

Contents

4–5 What does corporate social responsibility (CSR) mean to the Nippon Express Group? 6–7 Corporate Philosophy 8–9 CSR Activities of the Nippon Express Group 10–11 Targets and Achievements 12–13 Business Outline 14–15 Global Network 16–17 Nippon Express Initiatives in Four Overseas Regions 18–19 Feature 1: Global Network Supporting Growth in Asia 20–21 Feature 2: Logistics Services Supporting Comfortable and Prosperous Lifestyle

22–36 Environmental Initiatives 22 Environmental Charter 23–25 Modal Shift 26 Transport System Improvements 27 Industrial Waste Collection and Transport for Recycling 28–29 Initiatives to Introduce Low-pollution Vehicles and Enhance Fuel Economy 30 Promoting Environmentally-friendly Facilities 31 Initiatives for Promoting Resource and Energy Conservation 32 Reducing Waste and Advancing the 3Rs 33–34 Obtaining Environmental Certifications 35–36 Environment-related Data

37–40 Safety Initiatives

41–43 Together with Our Customers

44 Together with Our Partners

45–49 Together with Our Employees

50–53 Together with Society

54–56 Corporate Governance 54 Corporate Governance Structure 55 Crisis Management System 56 Compliance Initiatives

57 Third-party Evaluation 58 Responding to the Great East Japan Earthquake Nippon Express Head Office Building 59 List of Consolidated Companies: 250 Companies/Editors’ Note First, I’d like to extend my deepest sympathies to all those who suffered in the Great East Japan Earthquake. What does corporate Nippon Express has been appointed a designated public corporation at the Japanese national and prefec- social responsibility tural government levels for the transport of goods. We (CSR) mean to the are currently putting maximum effort into the delivery of goods, including urgent delivery of relief supplies, to the Nippon Express Group? disaster areas. The Nippon Express Group will continue to provide strong support for rapid recovery and restoration in the affected area.

Introduction Supporting the Since the establishment of the Nippon Express Group, we have expanded our business both in Japan and overseas, contributing to the development of industries development of industries and improvement in quality of life by delivering goods all over the world. In 2010, the Nippon Express Group developed the Corporate Strategy 2012–Towards New Growth, and improvement in promoting four key strategies:

•Growth as a Global Logistics Company quality of life worldwide •Promotion of Strategic Environmental Management •Enhancement of Management Infrastructure •Promotion of Corporate Social Responsibility (CSR) through logistics. Management

As we further implement initiatives under each strategy, we continue to act as a united team towards the realization of a truly global logistics company.

Growth as a Global Logistics Company We have made great efforts to grow as a global logistics company, building a network of overseas locations spanning 214 cities in 37 countries worldwide. Our goal for the near future is to increase the ratio of international sales to 50 percent on a consolidated accounting basis. Meanwhile, our immediate business plan is to raise international sales to 33 percent of Group sales, while supporting sustainable growth in overseas regions through logistics.

Promotion of Strategic Environmental Management Society is facing many environmental challenges, including climate change, and addressing them requires a comprehensive and collective approach. Learning from events created by the string of nuclear plant problems after the Great East Japan Earthquake, which underscore the need to reassess our mass consumption of fossil fuels, we strive to transition toward a sustainable society.

Nippon Express CSR Report 2011 4 Top Message

We at the Nippon Express Group fulfil our corporate social responsibility by reducing the environmental impacts of our operations, while cutting greenhouse gases (GHG) such as CO2 emissions through logistics. We continue to contribute to global environmental protection, implementing our environmental policy while developing and providing products and services that help clients reduce their environmental impact as well.

Enhancement of Management Infrastructure Enhanced management structure and a heightened competitiveness are essential to the future growth of the Nippon Express Group. Providing paramount quality while nurturing and effectively utilizing superior human resources is critically linked to the continuous growth of ees, but also their families and the society as a whole. the Nippon Express Group. In April 2011, we revised our conduct charter to The NITTSU Group University was established in ensure that the new Nippon Express Charter of Conduct fiscal 2010 expressly for such human resource develop- encompasses all Group affiliates, both in Japan and ment. Offering highly specialized education and training overseas. Such implementation of CSR initiatives across for employees of all Nippon Express Group companies, all Nippon Express Group companies is more effective we aim to enhance skills and employability. and also essential in responding to society’s expectations. Revisions were based on what we consider requisite of a Promotion of Corporate Social global logistics company, with contents emphasizing Responsibility (CSR) Management safety as well as environmental initiatives and the social Good governance based on responsibility management is nature and governance of the company, with additional essential for the long-term sustainability of business. references to human rights and supply chain manage- The Nippon Express Group’s global business expan- ment. We also recognize the necessity of increasing sion requires us to respect international rules as well as awareness to ensure that all Nippon Express Group laws pertaining to each region in which we conduct employees adhere to the Charter of Conduct, with business. As the scope of our social responsibilities compliance evident in their specific daily activities and continues to expand, it is very important for us to have concrete actions toward improvement, demonstrating high ethical standards beyond compliance with the law, that the charter is fully exploited. and to act in a socially responsible way. This report provides detailed coverage of CSR activi- Further, as we globalise business activities, we must ties underway at the Nippon Express Group. establish an environment that accepts, recognizes and benefits from our differences, be they external elements In Conclusion such as race, gender and age or inner aspects such as Please feel free to share your comments and opinions ideology and religion. concerning our CSR report and business activities. We Yet, as dynamic as CSR is, reflecting the evolution of integrate the invaluable feedback from our various social, environmental and economic concerns, there is stakeholders–be they customers or stockholders, local one feature of the Nippon Express Group that will community members or government officials, suppliers remain constant–our safety initiatives. As a company that or employees–to improve the CSR management of the uses public infrastructure such as roads, rails, and Nippon Express Group. seaports for its business, we are aware of our responsibil- September 2011 ity towards society at both the local and global levels. It is very important for us to have high ethical standards beyond compliance with the law, and to act in a socially responsible way. We diligently pursue our goal of “zero traffic and industrial accidents,” continually promoting Masanori Kawai and enhancing initiatives to heighten safety awareness President and improve safety skills, thereby fulfilling our responsi- Nippon Express Co., Ltd. bility to protect not only Nippon Express Group employ-

Nippon Express CSR Report 2011 5 Corporate Philosophy

As part of the 70th Anniversary Commemorative Projects to celebrate the founding of Nippon Express, we officially adopted the “Nippon Express Group Corporate Philosophy” in October 2007. The Nippon Express Group will continue striving to realize this corporate philosophy, which follows the spirit of Nippon Express’ previous guiding precepts, “Warera no kotoba”.

Nippon Express CSR Report 2011 6 Vision (Nippon Express Group’s to-be model) S A Global Logistics Company: Supports customers worldwide through logistics services S A Company that Fulfills its Responsibilities to the Earth: Cares for the environment and works to realize a low-carbon society S A People-friendly Company: Values its employees and helps them to achieve job satisfaction

(Declared as the Nippon Express Group model for the decade ahead)

Nippon Express Group CSR Initiative Concept

Management Nippon Express Group Corporate Philosophy, Vision Philosophy Management Philosophy Code of Conduct and Nippon Express Group Charter of Conduct, Environment Charter and Standards of Conduct Code of Conduct and Compliance Regulations Standards of Conduct Regulations and Employment Regulations, Standards Manuals Compliance Regulation, Regulations and Environmental Regulations, etc. Standards Manuals

Revisions to the Nippon Express Group Charter of Conduct*

Following the publication of ISO26000 (international Japan Fair Trade Commission regarding violations involving standards regarding social responsibility) in November the unfair restraint of trade regulations. Since then, we have 2010, the Nippon Express Group revised the Nippon sequentially implemented various preventative measures, Express Charter of Conduct (April 2011) based on recent such as creating and distributing a manual on compliance changes related to corporate social responsibility (CSR). with the Antimonopoly Act, The Antimonopoly Act Hand- The original Nippon Express Charter of Conduct, applicable book, and educating employees via e-learning to ensure only to Nippon Express Co., was revised as the Nippon their understanding of the laws concerning business activi- Express Group Charter of Conduct, and now embraces all ties. Group affiliates in Japan and overseas. The Nippon Express Group has further strengthened its While clearly stipulating respect for human rights, compliance management to abide by the competition laws interactive communication with myriad stakeholders, the of foreign countries as well as the Antimonopoly Act, respect for employee diversity essential to business globali- “carrying out appropriate business transactions within sation and other initiatives, the Nippon Express Group competition that is fair, transparent and open,” as clearly Charter of Conduct also promotes conduct exceeding CSR stated in the revised Nippon Express Group Charter of requirements throughout the supply chain in a manner the Conduct. Group is well positioned to implement. *Refer to the Nippon Express website to view the Nippon Express Group Charter of In 2009, Nippon Express was handed down a cease- Conduct. and-desist order and a surcharge payment order from the http://www.nittsu.co.jp/corporate/philosophy-charter/charter.html

Nippon Express CSR Report 2011 7 To fulfil our social responsibility as a global logistics company, we ensure safety and contribute to further development of society by CSR Activities of the Nippon Express Group providing various modes of transport, while actively carrying our responsibility for the environment.

Transport and Installation Safety Initiatives sP. 38 P. 21 of Wind-power Generators s Involvement with the Next Generation sP. 53

Promoting Environmentally- friendly Facilities sP. 30

Modal Shift sP. 23

Environmentally- friendly Vehicles sP. 28 Involvement in P. 52 Local Communities s

Modal Shift sP. 23 Biodiversity Initiatives sP. 51 Industrial Waste Collection Environmental P. 27 P. 50 and Transport for Recycling s Conservation Activities s

Our Responsibility to Various Stakeholders

Customers Shareholders and Investors Community Administrative Authorities Suppliers Employees Providing secure and reliable logistic Disclosing IR information Working with local communities, NPOs Securing permits/authorization and filing notifications Promoting fair business practices Undertaking initiatives for human resource services Ensuring stable dividends and NGOs Cooperating in transport- and traffic-related measures Maintaining and enhancing quality development and respect for human rights Disclosing company information Cooperating in environmental conservation Promoting occupational safety and health

8 Nippon Express CSR Report 2011 Nippon Express CSR Report 2011 9 Targets and Achievements

Targets and achievements of our overall CSR are organized and described in this section alongside items measured for importance (materiality analysis) in fiscal 2008.

Selection of Materiality Issues

In fiscal 2008, Nippon Express extracted and organized year’s CSR goals. This year we added the key issues clarified issues of high priority from the following two perspectives, by the materiality measurement results to the process of “sustainable development of the society” and “further determining the CSR activity goals for fiscal 2011. improvement of the corporate value of the Nippon Express.” *Explanation of the Three Fields This measurement of materiality was implemented for •Pattern 1: Field of Materiality sustainable development of business activities harmonizing This field is of great importance for both our stakeholders and Nippon Express. We believe that continued focus and effort is necessary in this field. with the society. •Pattern 2: Field of Management The figure below classifies the most important areas This field is of higher priority for our stakeholders than to Nippon Express. We believe (circled in dotted lines) into three fields* and maps each item that improving internal awareness and materializing the solutions for existing problems are necessary in this field. accordingly. •Pattern 3: Field of Communication Every year we list the current year’s CSR activity goals This field is of higher priority for Nippon Express than to our stakeholders. We believe and corresponding actual results along with the following further enhancing communication with our stakeholders and improving social recognition are necessary in this field.

Selecting Materiality Issues

The level of importance for 145 topics, which stakeholders includes various factors which lead to the improvements of are likely to request, was measured according to the follow- the corporate value. ing two axes, “level of importance (impact and interest) for Upon the measurement, we interviewed the representatives the stakeholders” and “level of importance for the Nippon of relevant departments. During the interview, we focused Express (effect on the corporate value).” on the following three points: understanding the conscious- The “level of importance for the stakeholder,” which ness that the interviewees had based on business activity indicates the level of impact and interest for the stakehold- situations, fostering self-motivated awareness on material- ers, was measured based on the contents and frequency of ity and sharing of acknowledgements. requests made in various guidelines, surveys, rating agency These activities were carried out under the supervision of research items and other information outlets. Moreover, the Caux Round Table (CRT)* with an effort to reflect the “the level of importance for Nippon Express” indicates mid- perspective of our stakeholders. and long-term effects on corporate value from the perspec- *Caux Round Table (CRT): CRT, comprised of business leaders from around the world, tives of both management and communication. This was established in Caux, Switzerland, in 1986. This group is active in projects promoting healthy economies and societies through business.

Level of importance for the stakeholders (impact and interest) 10 2 Field of materiality 9

1 Activities based on the corporate philosophy 8 Field of management 11 5 2 Promoting compliance 9 10 8 3 Protecting personal data 7 4 Promoting risk management 4 5 Ensuring customer satisfaction 6 7 1 6 6 Providing products and services with consideration to the environment and society 3 12 7 Promoting environmental management 8 Safety initiatives Field of communication 9 Human resource development 10 Promoting employee diversity 11 Communication with society 3 4 5 Level of importance for Nippon Express (effect on the corporate value) 12 Developing social action programmes

Nippon Express CSR Report 2011 10 FY2010 Achievements in CSR and FY2011 Targets–Based on Materiality

Reference Field Item FY2009 Achievements FY2010 Targets FY2010 Achievements FY2011 Targets page

Activities •Developed further understanding of the •Promote management plan based •Increased international sales to 30.9% of •Promote management plan based P.6 based on the corporate philosophy through seminars on the corporate philosophy total company business (ﬁscal year ending on the corporate philosophy –7 corporate held at headquarters for each rank March 2010: 27.0%) philosophy Promoting •Provided antimonopoly act training •Educate employees •Conducted compliance education for •Educate employees P. 56 compliance meeting for branch managers •Hold a meeting of compliance employees of all Nippon Express branches •Hold a meeting of compliance nationwide leaders and worksites leaders •Conducted employee education •Ensure full compliance through •Held meeting for all compliance leaders in •Ensure full compliance through (creation and distribution of inspection training Nippon Express business divisions and inspection training Antimonopoly Act Handbook, practicing •Assisting the education of each management branches •Assisting the education of each various e-learning programmes) group company •Conducted compliance education for group company •Branch inspections and instructional employees of all branch subsidiaries activities conducted by Headquarters and improvement study groups held based on inspection results •Conducted compliance survey targeting all employees

Promoting risk •Developed Business Continuity Plan •Revise Business Continuity Plan •Established Disaster Control Management •Conduct maintenance and training P.54 management (BCP) (BCP) against new risks Headquarters and invoked Business based on business continuity plan –55, Continuity Plan (BPC) 58 •Implemented Great East Japan Earthquake relief measures

Ensuring •65 out of 79 homepage inquiries have •Support and collect data from all •Improved website contact access. Inquires •Detailed analysis of “Search by P.41 customer been resolved or responded to through contact channels through VOCS increased by 70% compared to last year; Topic” on homepage and VOCS –43 VOCS system •Advance detailed analysis of analysis of results led to renewal of inquires, increase customer

Field of materiality of Field satisfaction accumulated VOCS data “Search by Topic” contents. satisfaction via the homepage

Providing •ISO14001: newly acquired by Nippon •Proactively develop an •Completed centre (August 2010) featuring •Proactively develop an P.22 products and Express (South China) Co., Ltd. environmentally-friendly business solar panel installations (maximum environmentally-friendly business –36 services with •Green Management Certification: •Establish environmentally-friendly electricity generated: 482 kilowatts per •Establish environmentally-friendly consideration Decreased due to branch logistics bases hour) in Narashino, Chiba Prefecture. logistics bases to the reorganization, etc •Proactively develop •Green Management Certification: •Proactively develop environment •Achieved total fleet of 4,485 environmentally-friendly logistics Decreased: due to branch reorganization, environmentally-friendly logistics and society environmentally-friendly vehicles (as of products and services etc products and services end of March 2010) •Expand modal shift focusing on •Achieved total fleet of 5,138 •Expand modal shift focusing on •Achieved 1.60% better fuel economy transport and coastal shipping environmentally-friendly vehicles (end of transport and coastal shipping compared to previous year •Achieve total fleet of 4,580 March 2011) •Achieve total fleet of 5,230 •Modal shift rate: 50.7% (FY2008) environmentally-friendly vehicles •Modal shift rate: 53.1% (FY2009) environmentally-friendly vehicles

Safety •Implemented internal audit: no •Continue transport safety •Zero major accidents in 2010 •Continue transport safety P.37 initiatives noncompliant items management •15 prize-winners in truck driver contest management –40 and 7 prize-winners in forklift operator competition

Promoting •3.3% CO2 reduction rate compared to •Reduce CO2 emissions by 1% •3.7% CO2 reduction rate compared to •Reduce CO2 emissions by 2.0% P.22 environmental FY2009 (CO2 intensity) compared to FY2009 (CO2 intensity) compared to –36 management •Green purchasing rate: 41.1% FY2009 Nippon Express Group •Green purchasing rate: 51.6% FY2009 Nippon Express Group results results •Promote green purchasing, green •Promote green purchasing, green purchasing rate of over 60% purchasing rate: over 60%

Human •36 employees took childcare leave •Childcare leave ratio: 80% or •89 employees took childcare leave •Childcare leave ratio: 80% or more P.45 resource (70.6% of women with newborns) more (68.5% of women with newborns) •Rate of employees remaining on –49 development •Continued employment rate: 77.5% •Rate of employees remaining on •Continued employment rate: 88.0% the job for one year or more after the job for one year or more after •Established NITTSU Group University returning from childcare leave: returning from childcare leave: 79% 78%

Promoting •Worked to maintain employment ratio of •Continually promote employment •Efforts to maintain employment ratio of •Continually promote employment of P.48

Field of management of Field employee handicapped individuals 2009 results: of handicapped individuals handicapped individuals, 2010 results: handicapped individuals –49 diversity 2.05% •Proactively recruit and assign 2.04% •Proactively recruit and assign •Proactively recruited women, 2009 women •Proactively recruited women, 2010 women results: 27.6% results: 27.9%

Communication •Streamlined relationships with suppliers •Strengthen relationships with •Initiatives implemented to maintain and •Strengthen relationships with P.44, with society stakeholders improve quality from suppliers stakeholders 50 •Expanded educational tours –53

Protecting •Educated all employees •Educate all employees •Conducted education for all employees •Educate all employees P. 56 personal data •Conducted workplace exchange •Ensure full compliance through •Conducted inspections and instruction in •Conduct workplace exchange inspections inspection and training two sections per block, targeting all inspections at all departments, •Maintained privacy mark •Renew privacy mark blocks ofﬁces, centres and other worksites •Renewed privacy mark •Maintain privacy mark

Social action •Held forest cultivation activity in Iide •Hold forest activities four times: •Held forest cultivation activities five times: •Hold forest cultivation activities six P.50 programmes Town twice twice in Eastern Japan, twice in twice in Iide Town, twice in Nichinan Town, times: twice in Iide Town, twice in –53 •Western Japan: began forest cultivation Western Japan and once in Izu Nichinan Town, twice in Izu project in Nichinan Town, Tottori •Continued community beautification activities •Continue community beautification Prefecture •Conducted kids X change classes and onsite activities

Field of communication of Field •Continued earth beautiﬁcation activities lessons •Distribute revised environmental •Distributed revised environmental •Distributed revised environmental education education materials education materials materials

Nippon Express CSR Report 2011 11 Business Outline

The Nippon Express Group comprises Nippon Express and 275 subsidiary and sub-subsidiary companies (including 250 consolidated companies), and 62 affiliates: a total of 338 companies. In addition to our core operations of distribution and transport, such as truck and railway cargo transport, we are also expanding in a variety of related areas, including security, travel, sales, real estate and driving education.

Motor transport Railway transport Air freight Marine transport Heavy haulage and construction Warehousing

Employing our network of transport locations Domestic and international freight transport Import and export services utilizing aircraft and International transport services mainly for Hauling of heavy loads, equipment installation, Warehouses that function not only as places for throughout Japan to provide general freight services utilizing railways, with major freight domestic freight forwarding services founded on import/export combined multimodal transporta- plant construction, maintenance services and product storage but also as centres for distribu- transport services such as reserved vehicle stations in Japan established as hubs advanced know-how and a network that spans tion, regularly scheduled on-ship transport high-tech factory equipment transport and tion processing as well as transport and delivery, shipping and special consolidated freight the globe mainly by domestic container liners and RORO installation both within Japan and overseas operating as the distribution centres for many transport vessels, and in-port transport services such as locations across Japan on-ship and harbour cargo handling for domestic companies

Moving Art transport Security transport Travel and events Goods sales Other businesses

Based on our domestic and overseas locations We offer the safest packaging and transport of In addition to the transport of cash, checks and related We are expanding business activities in the Nittsu Shoji Co., Ltd., and other Group affiliates Nittsu Research Institute and Consulting, Inc., works in and networks, our wide range of transport one-of-a-kind art objects, in the care of our items between headquarters and branches of many travel industry as well, focusing on group tours sell and lease products ranging from distribution consulting; Nittsu Capital Co., Inc., handles financing; modes, from trucks and railways to ships and experienced, professional staff and our vehicles, financial institutions and the transport of funds for the for corporate, civil service and educational equipment, vehicles, petroleum and LP gas, and Nittsu Real Estate Co., Ltd., designs buildings and airplanes, facilitates a full menu of moving which are climate-controlled and equipped with Bank of Japan, we are rapidly expanding our patented organizations, overseas business travel and also offer vehicle maintenance services, warehouses, and manages facilities; Careerroad, Inc., services to meet the needs of individual air suspension specifically for art transport. business model, the automatic teller CSD (Cash Safety travel in Japan for overseas visitors. We are also insurance sales and other services. serves as a dispatch company for workers; many other households and companies alike. Delivery) service, greatly reducing the burden of enhancing our event planning and management- affiliates, including Nittsu Driving School, provide a managing branch sales proceeds for our customers. related services. broad range of logistics-related services and products.

Financial Details

Revenues (consolidated) Operating income (consolidated) Current net income (consolidated) Total assets (consolidated)

(Unit: million yen) (Unit: million yen) (Unit: million yen) 2,000,000 1,901,433 (Unit: million yen) 50,325 40,000 1,500,000 1,866,267 50,000 48,502 1,828,946 36,439 1,360,694 1,297,406 33,208 1,617,185 1,201,801 1,569,633 1,172,074 1,147,539 1,500,000 40,000 37,535 30,000

33,513 1,000,000 31,629 30,000 1,000,000 20,000

15,172 20,000 12,566 500,000

500,000 10,000 8,541 10,000

0 0 0 0 FY2006 FY2007 FY2008 FY2009 FY2010 FY2006 FY2007 FY2008 FY2009 FY2010 FY2006 FY2007 FY2008 FY2009 FY2010 FY2006 FY2007 FY2008 FY2009 FY2010

12 Nippon Express CSR Report 2011 Nippon Express CSR Report 2011 13 The Nippon Express Group has one of the world’s largest logistics networks, with 271 companies in Japan plus 67 overseas, spanning Global Network 214 cities in 37 countries worldwide.

Europe

15 companies, 2 of ces East Asia North and 66 locations South America 2,174 employees 21 companies, 3 of ces Japan 125 locations 12 companies 5,667 employees 271 companies 91 locations 1,951 employees

South Asia/ Oceania 19 companies, 2 of ces 104 locations 6,032 employees

As of March 2011

Europe East Asia South Asia/Oceania The Americas

Nippon Express (Deutschland) GmbH Nippon Express (H.K.) Co., Ltd. Nittsu Sinotrans Logistic Dalian Ltd. Nippon Express (Singapore) Pte., Ltd. PT. Nippon Express Indonesia Nippon Express U.S.A. Inc. Nippon Express (Russia) LLC Nippon Express (Shenzhen) Co., Ltd. Nippon Express (Shanghai) Co., Ltd. Nippon Express (Singapore) Pte., Ltd., PT. Nittsu Lemo Indonesia Logistik Nippon Express U.S.A. (Illinois), Inc. NEX Logistics Europe GmbH Dhaka Representative Office Nippon Express (Zhuhai) Co., Ltd. NEX Global Logistics Korea Co., Ltd. Nippon Express (India) Pte., Ltd. Nittsu New York, Inc. Nippon Express (U.K.) Ltd. Nippon Express (Australia) Pty., Ltd. Nippon Express (Zhuhai F.T.Z.) Co., Ltd. Nippon Express (Taiwan) Co., Ltd. Nippon Express (Vietnam) Co., Ltd. NEX Transport, Inc. Nippon Express (Ireland) Ltd. Nippon Express (New Zealand) Ltd. Nippon Express (South China) Co., Ltd. Beacon International Express Corp. Nittsu Shoji (Thailand) Co., Ltd. Nippon Express (Nederland) B.V. Nippon Express Global Logistics, Inc. NEX Logistics (Malaysia) Sdn, Bhd Nippon Express Euro Cargo B.V. Nippon Express (China) Co., Ltd. Nippon Express Co., Ltd., Seoul PT. Nittsu Shoji Indonesia Nippon Express Travel USA, Inc. Representative Office Nippon Express (Malaysia) Sdn, Bhd. Nippon Express (Belgium) N.V./S.A. Nippon Express Cargo Service Nittsu Shoji Co., Ltd., Malaysia Nippon Express Canada, Ltd. Nippon Express France, S.A. (Shenzhen) Co., Ltd. Nippon Express Co., Ltd., Pusan Nittsu Transport Service (M) Sdn, Bhd. Representative Office Representative Office Nippon Express do Brasil Ltda. Nippon Express (Italia) S.R.L. Nippon Express Global Logistics Nippon Express (Philippines) Co., Ltd. (Shanghai) Co., Ltd. Dalian Nittsu Container Manufacturing Nippon Express (Schweiz) AG Nittsu do Brasil Comercial, Ltda. Co., Ltd. NEP Logistics, Inc Nippon Express de Espana, S.A. Nippon Express (Xiamen) Co., Ltd. Nippon Express de Mexico S.A. de C.V. Nittsu Shoji (Wu Han) Co., Ltd. Hi-Tech Nittsu (Thailand) Co., Ltd. Nippon Express Portugal S.A. Nippon Express (Jiaxing) Co., Ltd. NEX Global Logistics de Mexico, S.A. de C.V. Nittsu Shoji (H.K.) Co., Ltd. NEX Logistics (Thailand) Co., Ltd. Nippon Express (Middle East) L.L.C. Shanghai Nittsu Puling Logistics Co., Nippon Express (Thailand) Co., Ltd. Nittsu Shoji U.S.A., Inc. Nippon Express (Istanbul) Global Logistics A.S. Ltd. Japan Bingo Express Co., Ltd. Shanghai Representative Office Nippon Express Co., Ltd., Moscow Representative Office Nippon Express (Suzhou) Co., Ltd. Nippon Express Engineering (Thailand) Co., Ltd. Nippon Express Co., Ltd., Johannesburg Representative Office Shanghai e-Technology Co., Ltd. TBSC Logistics Co., Ltd.

14 Nippon Express CSR Report 2011 Nippon Express CSR Report 2011 15 Nippon Express Initiatives in Four Overseas Regions

In May 2010, Nippon Express reorganized the Asian/Oceanic Region into the East Asian and South Asian/Oceanic Regions. As of March 31, 2011, our global organization comprises five regions: Japan, the Americas, Europe, East Asia, and South Asia/Oceania. This section introduces initiatives underway in the four overseas regions.

The Americas East Asia

Established in 1962 with the founding of Nippon Express U.S.A. United States, Canada, and Mexico, the three originating countries The overall management of this region is handled from with Taiwan and South Korea. Nippon Express continues to Inc., this region now includes 11 local subsidiaries located through- of the North American Free Trade Agreement (NAFTA). In burgeon- Shanghai (moved from Hong Kong in May 2011). Nippon build a distribution network across China, expanding out the United States, Canada, Mexico and Brazil. Nippon Express ing Brazil, Nippon Express is focusing on system upgrades to keep Express operates 18 local subsidiaries in a close-knit logistics activities throughout the region to address growing has established an integrated forwarding system between the pace with the market penetration of Japanese-owned companies. economic region that includes primarily China, together transport mode diversification and market demand.

Initiative Case Study Resource and energy conservation initiatives Initiative Case Study Enhancing community ties through local events based on environmentally-friendly management —Nippon Express (South China) Co., Ltd. —Nippon Express U.S.A. Inc In December 2010, Nippon Express (South China) Co., Ltd., held (seven-stringed zither), xiju (comedy), and dancing and singing. a Christmas party for the students of two elementary schools In addition to such special occasions, Nippon Express In February 2010, Nippon Express U.S.A. Inc. completed construc- and Environment Design) certification from the U.S. Green Building located in the Yonghe Zone of Guangzhou, home to the Guang- (South China) is active throughout the year with facility tours for tion of the Los Angeles Air Cargo Branch building in California with Council, a non-profit organization offering comprehensive evalua- zhou Multi-Logistics Center. The party opened with a fashion school children, local hiring promotions and other events, hoping the installation of solar panels on the roof. tions of the environmental performance of buildings. Nippon show put on by the children, followed by the lighting of the to raise employee This new building features low power consumption and Express U.S.A continues to contribute to the promotion of Christmas tree and the highlight of the event, the arrival of Santa morale as well as reduced CO2 emissions and complies with Nippon Express environmentally-friendly facilities, from building site selection to Claus, played by a Nippon Express employee. School staff and reinforce “good U.S.A.’s Environmental Manifesto. It is fitted with high-functionality increased recycling of construction material, greater use of natural local government officials were pleased with the children’s delight corporate citizen” glass, high-efficiency lighting and controls, and high-performance light through design innovations, improved water and electricity as they enjoyed the creative festivities. awareness through system air-conditioning, and was constructed with recycled conservation based on advanced equipment and priority parking In January 2011, Nippon Express (South China) held a contributions to materials and heat insulation materials boasting a high R-value. for hybrid cars. special New Year’s party to celebrate Chun Jie (New Year accord- the local society. Located in southern California, where yearly rainfall is extremely ing to the old calendar), the most important festival in cultures low and the debate continues on the applicability of solar energy based on Chinese traditions, inviting guests from partner compa- as a resource, the new building has been equipped with a solar nies and local organizations. Employees practiced for over a power generation system that is expected to cover 10 percent of month on a show spotlighting Chinese martial arts, guqin the branch’s annual energy requirements. Christmas party In addition, the Chicago Logistics Center East, a new building opened in 2011 as part of the Chicago Logistics Center, is implementing an initiative to receive LEED (Leadership in Energy Los Angeles Air Cargo Branch Chicago Logistics Center

South Asia /Oceania

Europe From its regional base in Singapore, Nippon Express has deployed representative office in Bangladesh. In addition to building logistics 17 local subsidiaries in India, Australia, and six member states of systems meeting domestic demand in India, the region’s economic The entire European Region* is served by Nippon Express’ own Eastern European countries, the Russian Federation, and the the Association of Southeast Asian Nations (ASEAN), including powerhouse, Nippon Express is establishing logistics routes network, comprising 15 local affiliates situated in 19 countries, United Arab Emirates. An affiliate was established in the Repub- Malaysia, the Philippines and Thailand, with a newly established throughout the rapidly developing ASEAN economic bloc as well. including all major European nations, such as Germany, the lic of Turkey in 2010 to support continued growth there as well. Netherlands and the United Kingdom, as well as Central and *The European Region includes Europe, Africa and the Middle East. Initiative Case Study Locally based support activities/work experience programs Initiative Case Study Promoting energy conservation with the Green —Nippon Express (Malaysia) Sdn, Bhd. Plan; initiative furthering quality and safety Nippon Express (Malaysia) Sdn, Bhd. aims to earn society’s trust and figures were used for an overview of the Nippon Express Group —Nippon Express (Belgium) N.V./S.A. through its CSR activities, stressing interaction with the local commu- and the role of logistics, as well as the flow of product, using familiar nity and its children, the next generation’s leaders. foodstuffs as an example of where raw materials originate and how In November 2010, Malaysia’s northern region suffered significant finished product is delivered. The students were then joined by Nippon Express (Belgium) N.V./S.A. is promoting energy underway, such as operational safety courses for drivers and damage from heavy rains. Kedah State was hardest hit, with airports, Japanese members of the Nittsu Shoji Co., Ltd., Malaysia Represen- conservation as part of the Green Plan—a component in the warehouse workers as well as first aid seminars. roads and rail services closed from flooding while many homes tative Office for a hands-on session loading boxes into containers and 2010 Activity Plan established by the Safety Committee, a endured extensive damage from mudslides and inundation. At the reading barcodes with scanners. Impressions offered by the students group composed of corporate representatives and internal height of the disaster, over 30,000 people crowded into some 80 included, “Even though we can’t see it, logistics is really important,” labour union representatives. Posters displayed in company evacuation centres within the state. and “I realized that a simple mistake can affect the whole company,” buildings relating information about paper conservation and Nippon Express (Malaysia) provided food and water to the as well as, “The difference in cultures was really surprising.” electricity conservation, such as upper temperature limits for affected areas, dispatching volunteers to Kedah on December 12 and heating during the winter season, and the promotion of various 13 to bring aid to 82 households. An eight-ton truck transported the initiatives yield progress towards the 5% reduction targets set relief goods, which were transferred to smaller vans when the truck for both areas. Compared to the previous year’s numbers, reached an impasse. The 12 employee volunteers personally visited paper usage was reduced by 35 percent and electricity usage each household to deliver needed supplies. by 4.3 percent. Meanwhile, the Johor Bahru Branch invited first-year junior high Nippon Express Belgium also promotes the Nippon students from the Japanese School of Johor Bahru to a work Express Group Corporate Philosophy, targeting 100% customer experience program in November 2010. satisfaction through a Quality Policy awareness campaign. In Green Plan Quality Policy Nine students participated in the program, during which charts Relief activities in ﬂooded areas Work experience at addition, initiatives to bolster employee safety education are Johor Bahru Branch

16 Nippon Express CSR Report 2011 Nippon Express CSR Report 2011 17 Realizing a “truly global logistics company” is our vision. With one of the world’s largest logistics networks, spanning 214 cities in 37 countries, integrating land, marine and air transport Global Network Supporting modes, we make connections between people and between companies through logistics. By doing so, we aim to create new value, and Feature 1 contribute to further development around the world. This section introduces some of the initiatives we are undertaking in the rapidly Growth in Asia developing Asian region.

Boosting growth in Asia through logistics—Nittsu’s contribution to Support service for Chinese mail-order businesses the establishment of cross-border supply chain -quick and easy delivery of products to China

For the Asian region, which has become the world’s of operation locations in Asia, including China and India, The Chinese mail-order market is expanding alongside the manufacturing hub and a massive market, the establish- while creating new modes of transportation and develop- robust economic growth of the country. In particular, as the ment of supply-chains within the region is vital to achieving its network. We support growth and expansion in Asia Internet quickly takes root, logistics infrastructure to meet ing further economic growth. In addition, as regional through logistics with the implementation of optimal the exponentially expanding quantity of orders is urgently trade has been boosted by the FTAs* between China and supply chains, flexibly integrating both regional character- needed. ASEAN countries, there is an urgent need to establish istics and varying customer needs, while maintaining the In reponse, the Nippon Express Group launched a DMF Centre transport routes. Nippon Express Group’s quality standards. comprehensive, one-stop service to support mail-order (Nippon Express China The Nippon Express Group has established a number *FTA: Free Trade Agreement business to China called NEX@China DMF* in March 2010. Taopu No. 2 Warehouse) This service provides a platform serving all China DMF: Direct Marketing mail-order business needs, from customs clearance, Fulfilment inventory control, EC* site development and call centre management to introductions to proxy trading firms for customers who do not have a locally incorporated Korea company. Japan The Nippon Express Group will continue to contribute China to the economic expansion of both Japan and China, joining its expertise in the high-mix, low-volume mail-order Shanghai Super business developed in Japan, with the strong network Express (SSE) linking the two countries. EC Call Centre (Shanghai e-Technology) Bangladesh SS7000 EC: Electronic Commerce

India Myanmar Laos 1. Shanghai–Huanan Approx. 2,000 km Thailand Supporting transferees headed to China: quick and easy moves to China

Cambodia Philippines 2. Huanan–Hanoi With China’s economy growing, more and more people are residence and a smooth and hassle-free move allowing the Vietnam Approx. 1,500 km being transferred to China, with the majority leaving their transferee to start a new life in China the day he or she families behind in Japan and moving to China alone to take moves in. Mekong-India Brunei on their new assignments. A major headache in such The Non-family China Transfer Plan delivers household Express Malaysia 3. Hanoi–Bangkok moves is getting their household articles through customs articles to four inland China cities—Wuhan, Chengdu, Approx. 1,500 km and finding transport once in the country. Chongqing and Xian—in just 30 days, 10 days less than the Singapore In response, the Nippon Express Group started to offer conventional transport route. Cargo is handled entirely by 4. Bangkok–Singapore Indonesia Approx. 2,000 km two innovative moving services in November 2010 for the Nippon Express Group from pick-up in Japan to individuals not accompanied by their families: Shanghai delivery at the final destination in China, ensuring the safety

indicates Nippon Express Group main locations. Easy Move and Non-family China Transfer Plan. and security of each box. The Shanghai Easy Move is an industry-first full Both services include completion of all complicated package moving service for single transferees. The Nippon paperwork, which makes the move as easy as possible. Shanghai Super Express (SSE) SS7000 Mekong-India Express Express Group takes care of all packing without the need Our staff in China are proficient in Japanese, ready to help The Nippon Express Group operates a The SS7000 covers the approximately The Mekong-India Express was for a preliminary inspection appointment, providing simple customers get settled without a language barrier. regular marine shuttle, the Shanghai Super 7,000-kilometre overland route launched to meet the increasing boxes that can double as storage furniture in the new Express (SSE), twice weekly between connecting Shanghai and Singapore. logistics demand generated by the Hakata and Shanghai. Running at 20 knots, The route comprises four main trunks: AIFTA,* providing an overland and the high-speed transport vessel takes just (1) Shanghai–Huanan route (approx. marine intermodal transport service 28 hours to reach its destination. 2,000 kilometres), (2) Huanan–Hanoi linking Bangkok, Thailand and Chen- Non-family China Transfer Plan The RORO (Roll-On/ Roll-Off) vessel route (approx. 1,500 kilometres), (3) nai, India. The aforementioned SS7000 The Nippon Express Group offers door-to-door moving service to inland China via Hong Kong. feature, which allows wheeled cargo to Hanoi–Bangkok route (approx. 1,500 is used to transport goods overland directly roll on and roll off without using a kilometres) and (4) Bangkok–Singapore from Bangkok to the Port Kelang Number of days required from pick-up in Japan to delivery to customer’s final destination in China: large crane, facilitates highly efficient cargo route (approx. 2,000 kilometres). (Malaysia) midpoint, where cargo is handling that can unload or load a ship Compared to conventional marine shifted to marine transport for the Port By air: 22 or more days By air: 20 or more days within three hours. transport, this configuration has Kelang–Chennai leg. The conventional Japan Hong Kong Chengdu Japan Hong Kong Wuhan All domestic transport access points, greatly reduced lead time. Marine 17-day marine transport drops to 11 By sea: 29 or more days By sea: 27 or more days including airports, railways, highways, and transport between Hanoi and Bang- days, shaving off a full week in lead domestic marine vessels, are located within kok, for example, normally takes 15 time to yield logistics support for our a 30-minute radius of Hakata Port. The SSE days, whereas the SS7000 reduces the customers via the essential economic By air: 21 or more days By air: 22 or more days links Japan’s economic centres to Shang- time to four days. pipeline known as the Mekong-India Japan Hong Kong Chongqing Japan Hong Kong Xian hai, Huanan and other regions in China with Industrial Corridor. By sea: 28 or more days By sea: 29 or more days lead times as short as those of air transport. *AIFTA: ASEAN-India Free Trade Agreement

18 Nippon Express CSR Report 2011 Nippon Express CSR Report 2011 19 Since its establishment, the Nippon Express Group has contributed to the development of society through logistics. We transport everything from personal effects upon relocation to world-renowned art as well as heavy plant machinery. All of our Logistics Services Supporting work shares the common philosophy of “contributing to more comfortable lifestyles through logistics.” We are proud to have gained Feature 2 the trust of society and lived up to their expectations. Comfortable and Prosperous Lifestyle This section introduces some of the many logistics-related businesses we offer as we support diverse lifestyles.

Handling approximately 70 percent of all wind-power generator “Protecting family memories and belongings” transport and installation* Nippon Express moving services

*Based on FY2010 sales rankings provided by HJ Hikkoshi-Joho (HJ Moving Information) Recent years have seen a -number one in the industry* rapid rise in environmentally- The Nippon Express Group has friendly wind-power genera- transported myriad types of tion. The Nippon Express cargo-from world-renowned art Group is involved in both the such as the Mona Lisa, to heavy transport and on-site installa- loads such as the Shinkansen tion of windmills. bullet train and bridges. This Wind-power generators expertise comes into play when consist of the blades, the moving households goods during nacelle (internal section of Blade erection equipment family relocations. the power generator), the We understand the value tower and other parts needing transportation from factory contained in each picture drawn to installation site. As Japan’s wind-power generators are by a child, each well-used dish or often located near mountain ridges, specialized technology piece of furniture. We handle is required to avoid obstacles when carrying the 40- to family treasures with gentle care. 45-metre blades and multi-dozen-ton nacelles. The Nippon Express Group has successfully carried out the complex and delicate task by developing trailers designed to transport turbine installation equipment (blade erection devices) and implementing elaborate transport plans. These experiences and technologies have allowed the Nippon Express Group to expand its wind power transport and installation work since 1999, with the company handling approximately 70 percent of all domestic turbine installation to date. Packing that is kind to the Earth The Nippon Express Group will continue supporting Ecologicompo—packaging material developed by the Nippon the expansion of renewable energy through logistics. Express Group—has greatly diminished the environment burden of household moves, reducing “per move” waste from 70 kilograms to *75 windmills installed between January 2010 and January 2011. zero and CO2 emissions from 93 to 20 kilograms. In recognition of such accomplishments, the Nippon Express Group was presented the Minister’s Prize from the Ministry of Land, Infrastructure and Transport in the Eco-Services Category of the Third Eco Products Awards. In addition, the Nippon Express Group has developed specialized, reusable super-slim television packaging materials, reducing waste and packaging time while increasing safety during transport. Supporting 36,000 amateur runners in the Tokyo Marathon Transport of Buddhist statuary Relocation of monorail bridge Transport of Shinkansen train car The annual Tokyo Marathon was held in February 2011. The course follows major roadways around famous spots in the city such as the Imperial Palace, Asakusa and Ginza. Amateur runners can hardly wait to participate. Nippon Express has been working behind the scenes since 2007, the first year for Japan’s mega-marathon. Our job is to handle the personal belongings of some 36,000 runners during the event, returning them without error at the finish line. We also help ensure that everything is set for the race, transporting water to stations along the route, for example. The Nippon Express Group is proud to be a part of the smooth operations supporting the Tokyo Marathon, a new seasonal tradition for the city.

20 Nippon Express CSR Report 2011 Nippon Express CSR Report 2011 21 Environmental Initiatives Environmental Initiatives Leaving the environment in better shape for the next generation is a big challenge in today’s world. While achieving social development, human beings have created environmental burdens, including CO2 emissions. As a professional logistics group, we will contribute to society by delivering goods to people around the world, while striving to achieve more energy-efficient “Earth-friendly logistics.”

Environmental Charter Safety Initiatives

In April 2010, Nippon Express revised its Environmental Charter, first established in May 2001. The new revisions signal a step up from preservation-focused environmental management to strategic environmental management and set goals corresponding to changes to the nature and scope of environmental initiatives demanded of companies. Together with Our Customers

Established: May 10, 2001 Revised: April 1, 2010 Nippon Express Environmental Charter Together with Our Partners Basic Philosophy Nippon Express shall be mindful of its responsibilities as a corporation to society and the general public, and shall proactively contribute to environmental conservation as a “good corporate citizen” by practicing environmental management. Code of Conduct Recognizing that preservation of the Earth’s environment is a challenge facing all mankind as well as an indispensable requirement for our company’s existence and activities, we shall independently and proactively strive to fight global warming, preserve biodiversity and construct a recycling-based society. Together with Our Employees 1. We will promote green logistics. We will decrease our burden on the environment through the curtailment of harmful greenhouse gases by practising environmentally-friendly logistics. We will work to develop environmentally-friendly logistics products, services and packaging. 2. We will work to more efficiently use natural resources and energy. We will work to construct a recycling-based society by promoting the 3Rs and the conservation of energy and resources. We will expand our use of renewable energies. We will support our customers’ efforts toward building a recycling-based society. 3. We will adhere to environmental laws and ordinances. We will comply fully with the Act on the Rational Use of Energy, municipal ordinances and all other environmental laws. 4. We will train environmental personnel. Together with Society We will develop personnel with environment-oriented mindsets who will practice strategic environmental management. We will cultivate environmental personnel through environmental education and preservation initiatives. 5. We will promote an environmental social action programme. We will work to contribute to society in the areas of environmental preservation and environmental education of future generations. 6. We will report information about our environmental initiatives to society. We will work to communicate with society and proactively submit information concerning environmental initiatives.

7. We will continually improve upon our environmental management system. Corporate Governance We will create a company-wide environmental management system and enhance its functions. We will continually improve upon our efforts toward the environment and strive for successful environmental management.

Nippon Express CSR Report 2011 22 Modal Shift Environmental Initiatives

Modal shift in freight transport means switching from transport mostly by trucks to transport utilizing railways and ships. In keeping with the objective of the Green Logistics Partnership Conference, the Nippon Express Group promotes collaboration and cooperation between shipper companies and freight companies. In FY2010, we successfully implemented numerous modal shift initiatives, switching from a truck-centred transportation to one that makes much use of railways and ships. The Nippon Express Group is also expanding modal shift activities overseas as well as within Japan. Safety Initiatives

Rail Trucks Domestic Shipping •No cargo damage •Highly regular and fast •No restrictions on timing of shipments •Excellent safety •Capable of large bulk transport •Ships directly to destination •Long-distance transport of large quantities Together with Our Customers •Low CO2 emissions •Can ship smaller loads •Low cost

Choose the best combination of options, exploiting strengths to create transport routes that are dependable and low in emissions Together with Our Partners

¡CO2 Emission Basic Units by Transport Mode

Commercial large-sized trucks 132 Source: The Ministry of Economy, Rail 22 Trade and Industry Notiﬁcation No. 66 (March 29, 2006), Domestic shipping 39 “Method of Calculating the Energy

Air 1,490 Usage Involved in the Transport of Together with Our Employees Cargo Carried out by Freight 0 500 1,000 1,500 2,000 Haulers” (g-CO /t-km*) *When loading ratio of 11-ton 2 trucks is unavailable

Comparison of CO2 Emission Reductions Due to Modal Shift (calculated using the Revised T-km Method* in the case of transporting a 10-ton cargo)

•Tokyo–Osaka •Tokyo–Sapporo

Truck transport 549 Truck transport 782

Domestic marine Together with Society transport 487 CO2 emissions 38% reduction

Rail transport 142 CO2 emissions 74% reduction Rail transport 281 CO2 emissions 64% reduction

• • • • • • • • • • • • • • • • • 0 100 200 300 400 500 600 (kg) 0 100 200 300 400 500 600 700 800 900 (kg)

•Tokyo–Kushiro •Tokyo–Fukuoka

Truck transport 1,041 Truck transport 1,130 Corporate Governance Domestic marine transport 461 CO2 emissions 59% reduction Domestic marine CO2 emissions 56% reduction transport 457 Rail transport 281 CO2 emissions 75% reduction

• • • • • • • • • • • • • • 0 200 400 600 800 1,000 1,200 (kg) 0 200 400 600 800 1,000 1,200 (kg)

*Revised T-km Method: Calculation method described in the amended Act on the Rational Use of Energy (Energy Saving Act), which was revised in April 2006. This method computes the amount of energy used for a shipment based on the ton-kilometre value calculated with the actual cargo weight and transport distance.

Nippon Express CSR Report 2011 23 Modal Shift to Rail Transport Environmental Initiatives

Railways can transport large quantities of freight with good Transport) in fiscal 2006. regularity and economy as well as high energy efficiency. In fiscal 2007, the Shikoku Branch was also recognized at Another significant feature is that CO2 emissions per unit the Green Logistics Partnership Conference for using return rail distance and weight are lower than those of trucks. transport to carry procured materials after making product Nippon Express is actively promoting the truck-to-rail shift, deliveries; the branch received the Minister’s Prize from the thereby improving service, heightening the efficiency of opera- Ministry of Land, Infrastructure, Transport and Tourism for tions, minimizing energy use and thus decreasing the environ- contributing to CO2 emission reductions, while the Obihiro mental burden. Branch received commendation from the Director General for We have a wide variety of initiatives aimed at facilitating a Policy Planning at the same ministry for low-energy consumption

smooth switch from current truck transport to rail, such as using with a modal switch from truck to rail transport for potato Safety Initiatives containers that suit the amount and type of cargo and introduc- distribution. In 2009, the Yokohama Branch was awarded the ing a system that can easily transfer cargo between trucks and Minister’s Prize from the Ministry of Land, Infrastructure, ships. Transport and Tourism for introducing customized containers One example of these initiatives is the Super Green Shuttle resistant to vibrations and shocks for transporting mobile phone Train, which was selected as a model project by the Green base stations. Logistics Partnership Conference. The Super Green Shuttle Train In fiscal 2008, Nippon Express joined Toyota Motor Corpora- is specially equipped to handle 31-ft containers. It commenced tion, Toyota Transportation Co., Ltd. and Japan Freight Railway

operation between Tokyo and Osaka and received the Minister’s Company to create the Toyota Long Pass Express for auto parts Together with Our Customers Prize from the Ministry of Land, Infrastructure, Transport and transport. The project received the 9th Logistics Environment Tourism (formerly known as Ministry of Land, Infrastructure and Award from the Japan Federation of Freight Industries.

A Manager’s Perspective Modal Shift at Mitsubishi Fuso Truck and Bus Corporation

Mitsubishi Fuso Truck and Bus. We proposed a scheme for comprehensive management of procured materials delivery,

introducing a fundamental change for the customer. Various Together with Our Partners parts for small-sized buses, all with diverse packing require- Daisuke Akagi ments and volume, would be collected from 31 manufacturers at Assistant Manager 36 centres located in Aichi and Gifu prefectures, and consoli- Nagoya Container Branch Container Center dated at the Nagoya Cargo Terminal Station. Each shipment Nippon Express Co., Ltd. would then be assigned the optimum of three types of rail containers and trucks, and would be delivered to the transit When Mitsubishi Fuso Truck and Bus Corporation decided to shed in the Toyama Freight Station. consolidate their bus manufacturing division’s production plants The parts would then be removed from the containers, in Toyama Prefecture, they needed to establish a distribution sorted and set according to delivery destination, time, and

route for transporting parts from suppliers located near the production flow, ready for one of five daily factory deliveries Together with Our Employees former Oe Plant (Nagoya, Aichi Prefecture) to the Toyama Plant. from the Toyama Freight Station. Yet, with all the suppliers concentrated in Aichi Prefecture, Mitsubishi Fuso Truck and Bus praised the proposal as the extra transport distance posed by the new location inevita- economical and environmentally sound, representing a bly meant an increase in CO2 emissions. The Nippon Express reduction in CO2 emissions of approximately 70% on the trunk Group put its modal shift expertise to work and devised a line alone. solution to optimise logistics for Mitsubishi Fuso Truck and Bus, We hope to promote further modal shift for Mitsubishi Fuso an initiative that would reduce CO2 emissions in every step, from Truck and Bus, proposing use of rail containers as the backbone product manufacture to procurement and product transport. of all procured materials distribution. In the past, each supplier delivered parts independently to

Example of Meeting Supplier Needs with Together with Society Effective Combination Pickup Methods

Aichi Prefecture area suppliers Large parts are shipped directly by  Direct pickups from  truck to Toyama Freight Station  Milk-run pickups for large-lot manufacturers small-lot manufacturer Loaded container

Packing containers on station premises Corporate Governance

Nagoya Terminal Toyama Freight Station Mitsubishi Fuso Bus Manufacturing Co. Ltd. (Toyama Prefecture)

Unpacking containers Five smaller daily ]on station premises deliveries Sorting area

Nippon Express CSR Report 2011 24 Modal Shift to Domestic Marine Transport Environmental Initiatives

In 1964, the Nippon Express Group initiated combined On every voyage in each of our sea routes, the Nippon land-sea services with Japan’s first container vessel, the Express Group takes various data such as freight weight, Dai-ichi (No.1) Tennichi Maru, between Tokyo and Muroran, transport distance and fuel consumption to constantly followed by the Dai-ni (No.2) Tennichi Maru between research and analyse, ultimately realizing energy saving Osaka and Muroran. In 2003, Nippon Express and MOL navigation. We also check sea current speed and direction Ferry Co., Ltd. launched a joint service between Tokyo and for each season to select the most energy-efficient sea Hakata. At present, Nippon Express connects points routes. nationwide with eight cutting-edge large ships, including In addition to its environmentally-friendly aspects, three regular routes and some vessels operated jointly with Nippon Express’s domestic marine transport provides

MOL Ferry. reliable delivery times by running vessels regularly and Safety Initiatives In domestic marine transport, Nippon Express is imple- assures cargo safety through door-to-door intermodal menting various low fuel consumption initiatives to reduce transport. While we create information systems that make CO2 emissions. In particular, we outfitted our high-speed full use of the latest information technology and engage in RORO vessels,* Himawari 5 and 6, which were phased into other efforts to enable us to accommodate increasingly operation for coastal service between Tokyo and Kyushu diverse and sophisticated customer needs, we are actively and Setouchi routes, with auto-controlled engines that switching from truck to coastal marine transport. match fuel injection with vessel speed. The vessels employ Nippon Express and three other companies launched a

a narrow shape to create less water resistance. In addition, collaborative service between Hakata and Shanghai called Together with Our Customers we increased the propulsion power of the newest propellers “Shanghai Super Express.” The result is a high-speed and put movable blades on the hulls to prevent rolling, marine transport service between Shanghai and making for smoother voyages. Kanto/Hokkaido with Hakata Port as a transit point.

Domestic Marine Transport Service Network

Akashia Line Together with Our Partners

Himawari 1 Himawari 6

Oyashio Line

*RORO vessel: abbreviation for roll-on/roll-off type of shipping vessel. Kuroshio Line Roll-on/roll-off means the cargo is wheeled-vehicles that board and deboard a vessel Together with Our Employees independently. Similar to a car ferry, a RORO vessel is designed to carry wheeled cargo and does not usually include passenger cabins.

A Manager’s Perspective Case Study: Hitachi Metals, Ltd.

materials, and possible scratches on product. As a result, we were Suzuki Hisashi able to prove there were absolutely no scratches on, or damage to, product, Hitachi Metal’s main concern, and final decisions were

Manager Together with Society Sales Promotion Group, made regarding shock-absorbing materials and related matters. Domestic Marine Sales Center In January 2011, Hitachi Metals officially began using our Tokyo Shipping Office trailer-based marine transport service, which we combined with Nippon Express Co., Ltd. truck usage in a dual transport system to allow for potential changes in delivery time. We were onsite for the first official delivery to the customer and Hitachi Metals, Ltd. manufactures and supplies high-end die-cast are pleased to report that the cargo was delivered smoothly without parts for various automotive manufacturers. As an example, they a single complication. have long been making daily truck deliveries of aluminum wheels to Although deliveries Kanda Town in Miyako-gun, Fukuoka Prefecture. via the trailer-based

We suggested they convert to our trailer-based marine transport marine transport service Corporate Governance service, which reduces costs as well as CO2 emissions while are limited to 10 per ensuring on-time performance. As delivery of parts to automotive month for now, we will manufacturers requires strict adherence to delivery times, the promote further modal customer was concerned about cancellations and/or delays. After shift, expanding trailer presenting our past performance of on-time delivery, Hitachi Metals transport in the near agreed to try the service. future. Trial shipments were executed in September 2010 to investigate potential issues such as trailer loading methods, shock-absorbing

Nippon Express CSR Report 2011 25 Transport System Improvements Environmental Initiatives

Improving our transport system is another way in which the Nippon Express Group is pushing forward our initiatives to reduce the impact on environment.

Joint Delivery Safety Initiatives

In urban areas, where trucks are widely used for transport, To address this situation, the Nippon Express Group is major problems such as air pollution from CO2, NOx, PM advancing joint delivery. This method entails the loading of emissions and traffic congestion are prevalent. Many of similar category products from various manufacturers for a these problems are seen to have resulted from a higher single delivery. Compared to making individual deliveries frequency of collections and deliveries due to smaller lots, a based on manufacturer, fewer deliveries are necessary, lack of cargo processing facilities and increased street side reducing overall CO2 emissions with increasingly efficient

parking for pickups and deliveries. receipt of goods at the final destination. Together with Our Customers

Conventional Collection and Delivery Implementation of Joint Collection and Delivery

Food wholesale centre A Joint Delivery Centre Sort by product category and Food wholesale centre A delivery destination, determine delivery according to Manufacturer A destination, and Manufacturer A deliver cargo.

Convenience store Convenience store Together with Our Partners centre A centre A

Manufacturer B Food wholesaler A Manufacturer B Food wholesaler A

Food wholesaler B Manufacturer C

Manufacturer C Stored product Together with Our Employees Food wholesaler B Food wholesaler C

Milk-run operation:

Milk-run operation is a delivery method in which one shipments, shipping and delivery times become regular, vehicle makes stops at several suppliers on a regular route, facilitating well-planned and efficient procurement logistics. collecting all cargo in one trip. The method gets its unique Milk-run operations help reduce the impact on the environ- name from the dairy industry, with one truck visiting several ment while alleviating traffic congestion. dairy farms to collect milk. By setting a route for collecting Together with Society Individual deliveries Milk-run operations

Manufacturer A Manufacturer A

Manufacturer B Manufacturer B

Individual deliveries to Corporate Governance each manufacturer Joint collection and delivery Supply destinations (milk-run) Supply destinations

Manufacturer C Manufacturer C

Manufacturer D Manufacturer D

Nippon Express CSR Report 2011 26 Environmental Initiatives Safety Initiatives Together with Our Customers Together with Our Partners Together with Our Employees Together with Society Corporate Governance 27 Nippon Express CSR Report 2011 Nippon Express Designated collection point PCB delivery vehicle (tank lorry) *Approval not yet obtained for certain items *Approval Sludge removal using open-top containers Sludge removal

2 -

Contributing to a Recycling-based Society

The Nippon Express Group collects and transports Group industrial The waste Nippon as Express by part logistics all of business. its Approved comprehensive high the meet to logistics collection waste manage also we services*, delivery and collection of provider a governments as local authorized Utilizing a combination of a rail and wide and reuse. range ship of transport demand consolidated to for transport, provide recycling including other by unrivalled strength composite a has Group Express Nippon post-consumption—the through manufacturing from collection waste years in the logistics business. safe and dependable service cultivated over many its customers the benefits of a companies, and offers society. ute to a recycling-based actively working to implement such business are initiatives, which we have collectively to contrib- named “Eco-business,” in an effort We Industrial Waste Collection and Transport for Recycling and Transport Collection Waste Industrial In addition to the recovery of products that are required by law to to law by required are that products of recovery the to addition In Utiliza- Effective of Promotion the for Law the under recycled, be are who manufacturers supporting also are we Resources, of tion initiatives. engaged in recycling proactively manufacturers for point collection designated a operates Express Nippon initiative, service recycling appliance household a As Home of Kinds Specified of Recycling the for Law the observing collec- the including Law), Recycling Appliance (Home Appliances tion and transport of plant. appliances Similar to the recycling transport activities target automobiles, construction debris, containers and packaging, as well as confidential business documents, which receive dissolution treatment at processing into raw materials. plants for recycling of food waste. system that focuses on the reclamation recycling resource a of development the is initiatives newest our of One In In terms of industrial waste, we collect and transport waste products throughout the entire process—collecting from the industrial waste, company conveying discharging the load to an the final disposal facility and carrying it on to intermediate treatment plant. lamps (collected by - municipali fluorescent transport of discarded and collection the for containers rail use we example, For ties) to plants. and treatment Effluent sludge is collected and transported from factories to incineration facilities using rail containers; a safe and dependable method minimizes CO emissions and environmental impact. Open-top containers are used impact. Open-top containers are emissions and environmental and sludge to meet specific material requirements. for effluent The manufacture and use of PCBs, which were and used use mainly of PCBs, The which were manufacture was 1960s, and 1950s the in transformers in insulation as proper hazardous strong their to owing 1972 in prohibited ties, ties, after which safekeeping of PCB oil and electrical equipment containing PCB oil was strictly enforced. must Japan in PCBs all 2001, in effect into put Waste, PCB Under the Law Concerning Special Against Measures the of backing financial 100% With 2016. by of disposed be government, treatment companies have been systematically disposing of PCB waste since December 2004. operations with particular care Nippon being taken Express during carries the out safe and dependable and facilities treatment to PCBs of transport and collection the transfer to storage facilities. PCB Waste Transportation PCB Waste Initiative on Industrial Waste Industrial Waste Initiative on Transport Collection and Initiatives to Introduce Low-pollution Vehicles Environmental Initiatives and Enhance Fuel Economy

Nippon Express is making vigorous efforts to reduce emissions of CO2, NOx (nitrogen oxide) and PM (particulate matter), as well as putting environmentally-friendly vehicles into service to improve fuel efficiency.

Environmentally-friendly (Low-emission) Viecles Safety Initiatives Number of environmentally-friendly Vehicles in Fleet (as of March end, 2011) In addition to complying with the law and regulations, Nippon Express went a step beyond and actively Number Vehicle type introduced environmentally-friendly vehicles including Nippon Express Afﬁliate Total non-consolidated companies specially developed new models. Electric vehicles 2 2 0 In April 2005, we reviewed the definition of “clean CNG vehicles (compressed natural gas) 386 320 66 energy vehicle” that we had been adopting until then and Hybrid vehicles 665 595 70 revised our policy, shifting the emphasis to decreasing LPG vehicles 574 513 61 Together with Our Customers emissions from our large vehicles and revising the name to New long-term regulation vehicles 3,511 2,512 999 Ågenvironmentallyfriendly vehicles.” Since then, we have increased the number of CNG, hybrid and LPG trucks, Total 5,138 3,942 1,196 *Includes passenger cars for business use. while focusing on the addition of low-emission diesel trucks *Includes only related distribution companies managed by affiliates. that conform to the new long-term regulations for large- *The range of vehicles included in these numbers has varied each fiscal year. As of January 2010, we standardized the scope (for example, excluding ultra-low PM vehicles), sized vehicles throughout Japan, growing our fleet to a compiling and reviewing past data as well. In addition, as previous data lacked continuity due to numerous vehicle transfers from changes in business organization, etc., the chart total of 5,138 vehicles as of March 31. 2011. only shows the current fiscal year.

Environmentally-friendly Vehicles Together with Our Partners Together with Our Employees

Compressed Natural Gas (CNG) Trucks Bi-fuel CNG Trucks Fuel for these trucks is the same natural gas used by urban Used mainly in air service deliveries and for transport of valuables,

households, compressed under high pressure. CO2 emissions are 20 these modified vehicles run on both CNG and regular petrol. Once the to 30% lower than petrol, NOx emissions are much lower than diesel CNG is depleted, the motor can be manually switched to petrol, and there is no PM exhaust. eliminating any apprehensions of running out of CNG while out on the However, further problems that need to be solved include making road and covering quite a long distance in one day. fuel tanks smaller and lighter and enhancing fuelling stations. Together with Society Corporate Governance

Hybrids LPG Trucks Hybrids use a combination of motive force, including ordinary engines Engines are fuelled with liquefied petroleum gas, which is commonly used by and electric motors. Energy created by the engine and braking is taxis. Compared to diesel engines, NOx emissions are far lower and there is converted to electricity and stored, then used as supplemental driving no PM exhaust. Because more and more fuelling stations (LPG stations) are power when starting, accelerating and climbing. found nationwide, we have increased the number of LPG trucks in the fleet.

Nippon Express CSR Report 2011 28 Safe Eco-driving Education Environmental Initiatives

“Safe Eco-driving” has three meanings: safe driving, safe eco-driving, learning how to drive safely and having ecological driving and economical driving. The idea behind participants see how driving smoothly, without sudden eco-driving, or driving in an eco-friendly manner, is to acceleration and braking, is an integral element of safe protect the environment and resources while reducing driving. Those who complete the course are designated as costs. Furthermore, it involves seeking greater safety in-house driving instructors, who then train and instruct through moderate and responsible driving. drivers personally. This course enables instructors to Every year, Nippon Express gathers employees from understand safe eco-driving with both mind and body, and facilities around the country and provides comprehensive they further educate fellow drivers at their respective instructor training for the participants, all of whom play a branches. Every year, around 1,200 drivers attend the “safe central role in driving instruction. This training, called eco-driving” course at Izu Training Centre (see page 38 for Safety Initiatives “Driving Instructor Training Course,” focuses on mastering related article).

Installation of Digital Operation Recorders

Through the installation of digital operation recorders, and excessive engine speed. When values set in advance Together with Our Customers operation data items standardized for the entire company are exceeded, the date, time, place and other data are are accumulated in the operation management system’s recorded on a card, and an operation manager will use the server via our intranet, enabling people in all sections, performance output following vehicle operations to give the branches and headquarters to share objective data on fuel driver meticulous guidance. This continual driver guidance economy, engine idling and other information. and supervision concerning daily vehicle operations lead to This system now makes it possible to calculate safe both fuel efficiency improvements and safety enhance- eco-driving factors for each vehicle, such as excessive ments. vehicle speed, sudden acceleration and braking, idling time Together with Our Partners

Digital Operation Management System (conceptual diagram)

Receiving location information via GPS satellite

LoadingLoading DepartureDeparture

RestRest Commence work UnloadingUnloading Together with Our Employees Record on operation card status of operation and DepartureDeparture Finish work during transport work On-board terminal RestRest

DepartureDeparture UnloadingUnloading

Installation of Digital Operation Recorders Together with Society

TOPICS Optimal Navigational Planning Support System “ECoRO” (provisional name): Enabling implementation

Nippon Express and Nippon Shipping Co., Ltd. collaborated in an experiment, in which ECoRO (provisional name), an optimised navigational planning support system developed for domestic marine vessels, was installed and run on Nippon Express’s RORO container

ship Himawari 1. The Japan Weather Association joined forces with the National Maritime Corporate Governance Research Institute, an independent administrative institution, Tokyo University of Marine Science and Technology and other entities to develop this system, coupling the navigational performance of marine vessels with meteorological and oceanographic information supplied from the Japan Weather Association to enable optimal navigational planning (sea route recommendations, vessel speed planning, fuel consumption forecasts and estimated arrival times). The system enables accurate port arrival estimates while minimizing fuel consumption through navigational recalculations while at sea, based on Himawari 1 meteorological and oceanographic updates and other key informational changes.

Nippon Express CSR Report 2011 29 Promoting Environmentally-friendly Facilities Environmental Initiatives

The Nippon Express Group actively promotes environmentally-friendly facilities through activities such as construction of warehouses featuring solar panel installations and buildings hosting rooftop greenery.

Environmentally-friendly facilities employing solar power Safety Initiatives

Construction of the Chiba Marine Transport Branch corporate vision of “a company that fulfils its responsibility Narashino Logistics Centre was completed in October to the earth.” The 2,682 solar panels covering the facility 2010. The centre serves as the core facility for parts roof generate up to 480 kilowatts of electricity per hour, storage and transport operations for Mercedes-Benz Japan providing approximately Co., Ltd., whom the Nippon Express Group serves as one-third of the facility’s logistics partner. power consumption. This state-of-the-art logistics service centre, managed Together with Our Customers by the Nippon Express Group, provides after-service support for Mercedes-Benz vehicles sold in Japan by streamlining parts storage and import customs clearance, container export, warehouse operations and domestic transport operations. In other words, the centre, providing comprehensive services from warehousing to clearance and transportation, is run in a manner truly embodying our corporate vision—a “global logistics company.” At the same time, the centre is the essence of our Together with Our Partners

Winner of the Osaka Sustainable Architecture Award (Osaka Governor’s Award)

In February 2011, Nippon Express Group’s multipurpose tion of Global Warming, Etc., the Osaka Sustainable Archi- factory, located in Sharp Corporations “Green Front Sakai” tecture Award is presented in recognition of extraordinarily complex in Sakai City, Osaka, received the 4th Osaka environmentally-friendly structures helping prevent Sustainable problems such as global warming and the heat island

Architec- effect. Only the most exceptional structures are honored Together with Our Employees ture Award with the Osaka Governor’s Award, which aims at promoting (Osaka the development of environmentally-friendly architecture. Governor’s Green Front Sakai is home to many Sharp production Award). facilities, including the solar battery and liquid crystal panel Based plants. The multi-purpose factory is a logistics-related on Osaka facility built by Nippon Express, with the designs super- Prefecture vised by Nittsu Real Estate Co., Ltd. The Nippon Express Ordinances Group uses this as a hub, providing one-stop global Concerning logistics services for the entire Green Front Sakai complex. the Preven- Multipurpose factory Together with Society

Rooftop Greening Greening at Nittsu at Driving Nittsu School Driving School

The Nittsu Driving School’s new building incorporates rooftop greenery for energy conservation. The fourth floor rooftop is almost completely covered in flora, significantly contributing to insulation efficiency and reduction of the

heat island effect. Corporate Governance In the Energy Conservation Assessment Report published by Cool Net Tokyo (Tokyo Metropolitan Center for Climate Change Actions) in November 2010, Nittsu Driving Rooftop Greenery School received praise for its “highly advanced facility boasting nearly 100% greening when most companies are still experimenting with partial rooftop greenery.”

*As there is no fence installed, the rooftop is not open to the public for observation. View of Nittsu Driving School

Nippon Express CSR Report 2011 30 Initiatives for Promoting Resource and Energy Conservation Environmental Initiatives

In addition to implementing initiatives to promote environmentally-friendly truck transport, we are actively conserving resources used in packaging and promoting initiatives to ensure energy conservation in warehouses and offices.

Development of Reusable Packing Materials for Moving Safety Initiatives

The Nippon Express Group continues to develop various packing materials to promote resource conservation. For example, our Ecologicompo household moving service is both environmentally- and user-friendly, featuring reusable moving materials such as our exclusive chinaware trunk, shoe cabinet, and portable wardrobe. Together with Our Customers Ecologicompo packing materials

Resource-conserving External Packing Materials

The Nippon Express Group is gradually switching from the conventional cardboard crates* used as external packing material to reusable steel-frame containers. Use of steel-frame containers lessens the CO2 gases emitted during waste processing of the cardboard used in the conventional crates Together with Our Partners (reducing 47.6 kilograms of CO2 emmiossions per crate). According to fiscal 2010 calculations, 1,267 steel-frame crates were used, reducing CO2 Cardboard crate emissions by 60,309 kilograms.

*Cardboard crate: framed box made from cardboard for transport packing Steel-frame container

Packing Materials for Flat-screen Televisions Together with Our Employees

Development of “Flat-screen Television Packing Materials” was recently completed, expanding our lineup of resources for moving services from January 2011. With the complete switch to terrestrial digital broadcasting in July 2011, we have seen a surge in sales of flat-screen televisions. Yet conventional packing methods required excess materials and were bulky to handle. Many customers preparing to move indicated the need for simpler and safer packing materials.

Compression test breaking point (580 kg load) Together with Society

TOPICS Improved Flat-screen Television Container Guarantees Safe Delivery —Transport Environment Test Lab, Nittsu Research Institute and Consulting, Inc.

In development of the flat-screen television transport container, one of Nippon Express Group’s newest packing materials for our moving services, various factors were taken into consideration, such as vibration during transport, possible shock impact while carrying, and potential compression due to stacking for transport, to ensure the safest delivery of our customer’s household goods (particularly Corporate Governance flat-screen televisions). The Transport Environment Tes Lab at Nittsu Research Institute and Consulting, Inc. conducted a series of tests spanning vibration, free-fall drop, rotational edge drop and compression to evaluate the protection performance and strength of the container. Packing material durability was confirmed and the Institute gave the final approval for use of the container for safe transport. The Transport Environment Test Lab is equipped with a full lineup of test devices in compliance with JIS-Z-0200 (Packaged freights—General rules of testing), realizing reasonable material costs while ensuring protection against breakage during transport and storage for the customer. View of Nittsu Driving School

Nippon Express CSR Report 2011 31 Environmental Initiatives Safety Initiatives Together with Our Customers Together with Our Partners Together with Our Employees Together with Society Corporate Governance 32

ecycle

plastic bags plastic Recycled CSR Report 2011 Nippon Express R

possible extent the greatest the greatest

resources to resources

plastic sheets plastic Recycled Ecopuchi Logistics Environment Environment Logistics

cushioning Recycled bubble-pack Recycled educe 3R 3R as possible R wastes as much Cyclic Recycled pellets euse Awards. its expand to waste, continue generated “reduce” will to pledges Group which initiative, 3Rs Express Nippon The waste, “recycle” and possible, as much as waste “reuse” to the best of our abilities. resources forming renewed removed from the plastic sheets, separated according to to according separated sheets, plastic for the from vendor removed a to delivered then are resources The type. purchase later we which materials, renewed into processing materials.” as “recycled Freight of Federation Japan the by Award Environmental Logistics Special the with recognized was initiative This 11 the of presenter Industries, Material recycling Regeneration R as products many times as possible at Nippon Express.

Materials are separated and sheets and

Bubble pack Bubble Plastic wrap Plastic

After use as moving services... in Nippon Express packing materials Promoting the 3Rs by recycling packing materials the 3Rs by recycling Promoting Although returnable packing materials can be used in our our in used be can materials packing returnable Japan, Although in services moving other and Ecologicompo it make distances longer much involving moves overseas ensure to materials packing conventional use to necessary of cargo. protection robust the more are separates materials carefully and “garbage” Group moves, overseas Express from Nippon as generated materials the Thus, of disposed previously were that Ecopu- is reuse we material such One reuse. for processed chi, our bubble-pack cushioning. separa- “methodical is initiative carefully this are materials in packing other and point tape Paper tion.” key The

Through methodical separation of waste generated in all business locations, Nippon Express is able to promote methodical separation is of able waste to generated promote in all business locations, Through Nippon Express and electricity as well as purchasing green implement to continue also We recycling. and processing waste proper water conservation. Reducing Waste and Advancing the 3Rs Advancing and Waste Reducing The 3Rs is a principle for efforts to build a recycling-based society. It stands society. to build a recycling-based for efforts The 3Rs is a principle when- materials “reusing” generated, wastes of volume the “reducing” for ever possible and “recycling” used products as At resources. Nippon well as locations business all from waste reduce to best our do we Express for easy recycling. waste generated in our offices as sort paper and other Advancing the 3Rs Advancing the Promoting the 3Rs by recycling packing materials the 3Rs by recycling Promoting Processing ow of used packing materials Processing Environmental Initiatives Obtaining Environmental Certifications Environmental Initiatives

To further advance activities with respect to environmental conservation at its facilities, Nippon Express is actively working to obtain certification for ISO 14001, the international standard on environmental management systems, as well as Green Management Certification at each facility.

Obtaining ISO14001 Certiﬁcations Safety Initiatives

In June 1998, Nippon Express obtained ISO 14001 certifi- City, Chiba Prefecture). As of March 2011, we have cation for three service locations (since consolidated into obtained certification for a total of 14 locations around the two) at the Tokyo Air Service Branch in Baraki (Ichikawa world. Together with Our Customers Together with Our Partners Together with Our Employees Together with Society ISO 14001 registered certiﬁcation ISO 14001 registered certiﬁcation for for NEP Logistics, Inc. Nippon Express (South China) Co., Ltd.

First certifications, June 24, 1998 Additional certifications, March 29, 2002 Tokyo Air Service Branch: Baraki Export Cargo Centre Nagoya Air Service Branch: Nagoya Air Cargo Centre Tokyo Air Service Branch: Baraki Air Cargo Distribution Centre Takamatsu Air Service Branch: Takamatsu Air Cargo Centre Additional certifications, March 30, 2000 New certification, May 31, 2005

Tokyo Air Service Branch: Narita Airport Logistics Centre Shikoku Branch: Shikoku Heavy Haulage & Construction Branch Corporate Governance Nagoya Air Service Branch: Nagoya Distribution Centre New certification, May 10, 2007 Osaka Air Service Branch: Nanko Air Cargo Centre NEP Logistics, Inc. (Philippines) Fukuoka Air Service Branch: Fukuoka Air Cargo Centre New certification, March 24, 2010 Additional certifications, March 30, 2001 Nippon Express (South China) Co., Ltd. Hiroshima Air Service Branch: Hiroshima Domestic Air Cargo Centre New certification, March 18, 2011 Sendai Air Service Branch: Sendai Airport Logistics Centre Osaka Branch: Sharp Osaka Office

Nippon Express CSR Report 2011 33 Obtaining Green Green Management Management Certiﬁcation Certification Environmental Initiatives

Green Management Certification is a system of certifying certification of mainly trucks and warehouses. and registering businesses that promote environment The Kyoto Protocol Target Achievement Plan adopted friendly management (Green Management) and have by the Japanese Cabinet in April 2005 refers to the achieved a certain level. The certifying body for Green “dissemination and acceleration of Green Management in Management is the Foundation for Promoting Personal transport businesses,” while the operation policy of the Mobility and Ecological Transportation, which comes under Revised Energy the jurisdiction of the Ministry of Land, Infrastructure, Trans- Conservation Law which came into force in April 2006 portation and Tourism. recommends the selection of freight haulers who are The Green Management Certification system began as considerate of the environment (businesses that have

a basic environmental certification for small- and medium- obtained ISO 14001 certification and Green Management Safety Initiatives sized trucking businesses. However, Nippon Express devel- Certification). oped this further by instituting initiatives at each approved In the truck division, as of March 2011, 232 Nippon facility—placing emphasis on environmental performance Express facilities and 24 facilities in 12 group companies evaluation followed by certification through third-party have obtained certification. In our warehousing division, screening—after which they are considered to be effective which was established in July 2005, 33 Nippon Express environmental management systems operating at the facilities and one facility in one group company have facility level. Currently, we are focusing our efforts on the obtained certification. Together with Our Customers

Initiatives for Obtaining Green Management Certi cation

Specific initiatives to obtain Green Management Certification involve recognizing the environmental impacts in the table below regarding vehicles, taking steps to deal with them, and recording the results.

Inspection/repair items with environmental impacts Speciﬁc impacts Responses Exhaust gases Black smoke: needs maintenance Routine visual checks for black smoke are important. Regularly use tester to measure black smoke concentration. Together with Our Partners Immediate inspections (determining causes) and maintenance are important.

 Air filter Poor fuel economy: increases CO2 Regular cleaning and changing is important. Black smoke: needs maintenance

 Engine oil Poor fuel economy: increases CO2 Regular oil changes are important.

Tyre air pressure Poor fuel economy: increases CO2 (10% pressure Routine tyre pressure checking with tyre gauge is important. drop worsens fuel economy about 3%) Together with Our Employees Muffler Improper installation or damage cause noise Listen for unusual noises.

Air conditioner  Leaking CFC refrigerants, which are Routine checking of effective cooling is important. greenhouse gases. If air conditioner cools poorly, immediately inspect and repair. Together with Society Corporate Governance

Air pressure measurement Air pressure measurement Black smoke check using Air-conditioner gas status using tyre gauge using pen-type tyre gauge black smoke chart check using sight glass

Nippon Express CSR Report 2011 34 Environment-related Data Environmental Initiatives

In our Environmental and Social Report 2006, for the first time we disclosed data pertaining to the Nippon Express

Group’s energy usage, waste and emissions, as well as CO2 emitted by sources other than mobile emission sources such as trucks and ships. This compiled data includes estimated quantities calculated from the purchase value as well as annual estimates based on fixed monthly quantities.

Energy Usage, Etc. of Nippon Express Group (FY2010) Safety Initiatives Nippon Express Afﬁliates Nippon Express non- Domestic Group company Type Unit Total non-consolidated Domestic Overseas consolidated CO2 emissions (t) CO2 emissions (t) Electricity 1,000 kWh 379,805 42,976 70,991 493,772 213,071 24,110 Diesel oil kR 80,600 98,235 12,696 191,531 207,948 253,446 Petroleum kR 7,192 4,607 3,042 14,841 16,685 10,688 Natural gas 1,000 m3 2,018 703 2,721 4,500 1,568 Energy LP gas ton 3,846 1,943 5,789 11,538 5,829 Together with Our Customers Heavy fuel oil kR 257 4,520 4,777 696 12,249 Heavy fuel oil (for ships) kR 55,964 89,174 145,138 167,892 267,522 Kerosene kR 981 549 1,530 2,443 1,367

Total CO2 624,773 576,779

Nippon Express Afﬁliates Type Unit Total non-consolidated Domestic Overseas Water m3 1,726,828 1,726,828 Together with Our Partners Copy/printer paper 10,000 sheets 44,318 7,990 52,308 General waste ton 25,810 3,690 29,500 Waste Industrial waste ton 34,427 6,614 41,041 Total ton 60,237 10,304 70,541

Notes: 1. Data shown here is the aggregate of Nippon Express non-consolidated and consolidated companies (domestic 195, overseas 55) total 250 (as of March 31, 2011) 2. The Nippon Express non-consolidated and consolidated data for Japan was aggregated from various network systems, and the data of the overseas consolidated companies was aggregated from questionnaire surveys. The overseas consolidated data reflects survey results of 40 companies but does not include data concerning 15 companies where either offices are included in other consolidated companies or where no Japanese representative is present. 3. The numerical values include provisional calculations of quantities used from purchase value or provisional calculations restored to annual quantities from fixed monthly quantities.

4. The CO2 emissions basic unit was calculated in accordance with the Ministerial Ordinance on Calculation of Greenhouse Gas Emissions Pertaining to Business Activities by Specified Together with Our Employees Emitters (Ordinance of the Ministry of Economy, Trade and Industry and the Ministry of the Environment, No. 3 of 2006)

Industrial Waste Emissions by Item (FY2010: Nippon Express nonconsolidated)

Industrial waste items No. of control manifests Weight (kg) Weight distribution ratio for industrial waste 1 Sludge 186 313,130 0.91% 2 Waste oil 215 129,783 0.38%

3 Inﬂammable waste oil 5 816 0.00% Together with Society 4 Waste acid 5 14,129 0.04% 5 Waste alkali 21 123,439 0.36% 6 Waste plastics 12,916 12,471,536 36.23% 7 Waste metal 1,071 1,829,239 5.31% 8 Waste glass 143 75,299 0.22% 9 Combustion residue 2 7,840 0.02% 10 Debris 47 316,500 0.92% 11 Mixed waste 612 703,366 2.04% 12 Animal and plant residues 176 815,918 2.37% 13 PCB waste 7 236 0.00% Corporate Governance 14 Wood shavings 5,043 17,505,813 50.85% 15 Others 139 119,582 0.35% Total 20,588 34,426,626 100.00%

Notes: 1. Items recorded in units other than weight or volume (cars, roll containers, etc.) have been converted to weight (kg) or volume (m3). 2. Items expressed as volume (m3) were converted into weight based on a table of specific gravities by industrial waste item. For mixed waste, the specific gravity for general waste was applied. 3. The aggregate does not include cases where waste cardboard and the like is handed over to a used paper recycler, or where in buildings leased for commercial use the waste disposal for the entire occupied building is managed and the corresponding charge included in the rent. 4. Contrary to the case 3 above, where a company other than Nippon Express occupies a facility, this may be totalized as emissions of Nippon Express.

Nippon Express CSR Report 2011 35 Emissions of Substances Reportable under the PRTR Law (FY2010) Environmental Initiatives Although none of our facilities is required to report under the PRTR Law (Law Concerning Reporting of Releases into the Environment of Specific Chemical Substances and Promoting Improvements in Management), the facilities shown on the right handle reportable substances.

No. of Total amount used Facility type Main substance Main use facilities (kg/y) Reportable business category but amount 30 813 Methyl bromide Warehouse fumigation used by facility is under reporting threshold

Not reportable business category Methyl bromide, Fumigation for operations incidental but facility uses reportable substance 24 45,334 Hydrogen cyanide to import customs clearance Safety Initiatives

CO2 Emission Reductions in FY 2010

Product Name Basic unit (kg-CO2) CO2 emissions (t-CO2)

Conventional form 87.92585 17,638 Together with Our Customers Full Pack 5.50608 49 Half Pack 43.12909 903 Ecologicompo Self Pack 67.14119 11,465 Subtotal 12,417

Amount of CO2 reduction (t-CO2) 5,221

Notes: 1. Expresses the difference between the emissions with the moving service actually provided and the case where all the removals are carried out in the conventional style. 2. Ecologicompo Full Pack: moving plan in which the mover handles everything for the customer, including the packing and unpacking of smaller objects

3. Ecologicompo Half Pack: moving plan in which the mover handles all packing and unpacking, including smaller objects as specified by customer Together with Our Partners 4. Ecologicompo Self Pack: moving plan in which the customer handles the packing and unpacking of smaller objects 5. The “basic unit” in the chart is calculated as the average amount of household goods handled by Nippon Express in accordance with LCA (life cycle assessment)* basic unit for each individual material used.

Conventional form Ecologicompo Amount of CO2 emissions CO2 emissions CO2 reduction

2 2 2 17,638 (t-CO ) 12,417 (t-CO ) 5,221 (t-CO ) Together with Our Employees

Environmental Accounting

Nippon Express regards the introduction of detailed indicators but, for this year, we are environmental accounting as an important reporting the main investments in environmental indicator for evaluating environmental manage- conservation. Together with Society ment. In the future, we intend to develop more

Investments in Environmental Conservation (FY2010) (million yen/year) Investment category Major examples Amount Rail transport containers (Eco-Liner 31, Big Eco-Liner 31, etc.) 258 Investment in modal shift Ship containers (R&S container, etc.) 246 Tractors and trailers for freight containers 706

Investment in reusable packing materials for moving Ecologicompo , netted blankets, high-pad, etc. 266 Corporate Governance

Vehicle-related investments (environmentally-friendly vehicles, etc.) CNG, hybrid and LPG vehicles, heavy-duty vehicles that meet fuel efﬁciency 3,718

Costs for appropriate waste disposal and management Costs related to Manifest Management Centre 36

Costs for Environmental Management System registration ISO 14001 and Green Management certiﬁcation 20

Investment in planting greenery Forest cultivation project, landscape gardening and other work at branches 62

Total 5,312

*LCA (life cycle assessment): Life cycle assessment is the method of assessing the environmental impact of a product from its manufacture through to its use and disposal.

Nippon Express CSR Report 2011 36 Environmental Initiatives Safety Initiatives Together with Our Customers Together with Our Partners Together with Our Employees Together with Society Corporate Governance 37 Nippon Express CSR Report 2011 Nippon Express Safety Symbol: Poem of Wind and Light—A, artist: Itaru Mishiku our Nippon Express Headquarters and the Izu Training our Nippon Headquarters Express and the Izu Training to resolve our evinces Safety to Commitment The Centre. initiatives promote we as disasters, and accidents prevent daily a on practice into pledge this put to us reminding basis. anniversary of of anniversary th 2011 Safety and Health Management Policy always learn from them. conduct safer operations. remain conscious of safety and never forget past accidents and endeavour to prevent accidents. improve our expertise in order to

and prioritize safety above all else. abide by all applicable laws and rules

undertake daily risk prevention activities.

our mission to support and raise the standards of safety and prosperity for all society. our mission to support and raise the standards of safety and prosperity for Herewith, we formally pledge and announce for all to hear our Commitment to Safety. Herewith, we formally pledge and announce for all to hear our Commitment Employee safety and health is the foundation of the company’s competitive existence and Employee safety and health is the foundation of the company’s competitive social responsibilityassuring the safety and health of our employees is considered the of the through implementation of company. We shall establish our safety-first policy in the workplace based on in human dignity. the following guidelines in accordance with a management philosophy 1. Implement “Safety First” in the workplace. in basic activities. 2. Adhere to relevant laws/regulations and in-house regulations; be thorough 3. Continually improve upon the transport safety management system. 4. Reinforce initiatives promoting mental health measures for employees. 5. Promote measures to prevent the onset of lifestyle-related diseases. 6. Reinforce functions of health management system. Driven by respect for the preciousness of life, we in the Nippon Express Group regard it as Driven by respect for the preciousness of life, we in the Nippon Express Group

We will strive our utmost to fulfil this mission, earn the trust of society and prevent accidents, thus We will strive our utmost to fulfil this mission, earn the trust of society and ensuring sustainable company operations and the happiness of our employees and their families. ensuring sustainable company operations and the happiness of our employees

The Nippon Express Group aims to meet all the transport needs of our customers, from ultra-large cargo cargo ultra-large from customers, our of needs transport the all meet to aims Group Express Nippon The and art as such care, meticulous requiring articles valuable to equipment generating wind-power as such highest the place we safety, ensure to responsibility our Recognizing first. safety put always We money. priority on safety management initiatives, striving ceaselessly to safe realize and lifestyles secure for everyone. Safety Initiatives Safety Commitment to Safety and Safety Symbol to Safety and Commitment the Nippon Express Group’s founding, we adopted the a Nippon Group’s Express encouraging safety to awareness Commitment to Safety, inscribed the commitment permeate on the We Group. grace to commissioned we sculptures the Symbol, Safety In October 2007, in observation of the 70 the of observation in 2007, October In

Commitment to Safety and Safety Symbol Commitment Safety Initiatives Safety Environmental Initiatives Safety Initiatives Together with Our Customers Together with Our Partners Together with Our Employees Together with Society Corporate Governance 38 Company driver’s quali cation imparted on employees who pass all exams General Branch Manager approval of driver instructor Nippon Express CSR Report 2011 Nippon Express Certi cation exam •Skills exam •Academic exam (8 days) Driver Instructor Refresher Course Driver training Complete basic Driver course used for controlling quality or production. used for controlling Course (5 days) education training Practical Basic Training Pre-hiring education Driver Instructor Instructor Education System New employee *PDCA cycle: A business method with a “Plan-Do-Check-Act” cycle, which is cycle, which is business method with a “Plan-Do-Check-Act” *PDCA cycle: A environment for training with generously equipped facilities. facilities. equipped generously with training for environment - compre enhance to designed course the completing After hensive knowledge of safety as well as driving quality, and branches respective their to return instructors certified instruct fellow drivers and forklift operators. Instructors ongoing education receive and skill enhancement through follow-up courses. regular PDCA cycle* at the site level. PDCA cycle* a establish to aiming NSM, system. and health management safety efficient promote more to strive will We Truck Driver Education System - Izu Training Centre Izu Training Education and Training System Education and Training Application of Accident and Disaster Information and Disaster Information of Accident Application System) and Disaster Search (Accident Nittsu Safety & Health Management System (NSM) System Management & Health Safety Nittsu The Nippon Express Group maintains a system that shares shares that system a maintains Group Express Nippon The via company the throughout information crucial applies and the Accident and Disaster System, Search a database catego- providing intranet company the through accessible rized information concerning past traffic and labour accidents. with every workplace within Japan concerning and all traffic This system enables us to share as well as location any in occur that rapidlyaccidents labour share information - while developing proac recurrences, to prevent measures a on accidents of types similar for measures prevention tive lateral basis. The Nippon Express Group is continually committed to learning from past accidentssafe driving and safe work environments. and ensures tion tion program, the Course, Driving is Instructor Training perfect the boasts which Centre, Training Izu the at offered Safety Safety education and training for truck drivers and forklift to order In us. for importance significant a have operators workplace accidents, all drivers and folklift opera- prevent exclusive to complete Nippon Express’s required tors are training and testing starting before their work. For the educa special a training, of charge in are who employees In April 2010, upon thorough review of past safety and and safety past of review thorough upon 2010, April In health management practices within the Nippon Express - Manage Health & Safety Nittsu the established we Group, ment System (NSM), system, better to workplaces by create implementing the based on the ISO management Education and Training System Education and Training Application of Accident and Disaster Information of Accident and Disaster Application System) Disaster Search (Accident and Nittsu Safety & Health Management System (NSM) System Management Safety & Health Nittsu Environmental Initiatives Safety Initiatives Together with Our Customers Together with Our Partners Together with Our Employees Together with Society Corporate Governance 39 Nippon Express CSR Report 2011 Nippon Express Express Nippon seven all In September 2010, the in participants Group 25th All-Japan Forklift spon- Competition Driver - Trans Land the by sored portation Industry Safety and Health Association including prizes, top won 15 October, In place. first Nippon Express Group participants won prizes at the 42nd All-Japan Truck Driver Contest Japan the by hosted Association. Nippon Trucking Express Group employees in Prize Minister’s Prime the receive to honoured also were 2010. accidents, reduce environmental burdens and lower costs, costs, lower and burdens environmental reduce accidents, it and also instils self-awareness a sense of professional them pride in our drivers and forklift operators, and reminds of society. as a member of their responsibilities third-party deaths due third-party to negligence” Nippon as Express well as “zero industrial disasters causing workplace deaths.” securing safety. variety of initiatives toward continues to implement a Group The Nippon Express - - training training for participa tion in such competitive is arenas consid- a part of our train- ered upgrading. skills for ing Most contenders that participate in such take later competitions - in as roles key on training the in structors and education of their workplace colleagues for further skills upgrading. Nittsu Driving School: Lowest Accident Rate among New Drivers Lowest Nittsu Driving School: On June 1, 2010, Nittsu Driving School received the Award for Educational Organization with with Organization Educational for Award the received School Driving Nittsu 2010, 1, June On the of Headquarters License Driver’s of Chief the from Rates Accident Driver New Lowest the with school the to presented was award new The Department. Police Metropolitan Tokyo from selected drivers, licensed recently among years five past the over rate accident lowest area. metropolitan among the 49 certified driving schools in the Tokyo 2010. throughout rates accident low of terms in school top Tokyo’s remained School Driving Nittsu The has Group Express Nippon the as just curriculum, its in driving safe emphasized successfully has School Driving Nittsu the 1963, in establishment its since that, recognizes award The safety as its expected social responsibility. upheld traffic effectively TOPICS

TOPICS Achieving “Zero Serious Accidents and Disasters” and Accidents Serious “Zero Achieving Nippon Express Group All-Japan Driver & Forklift Operator Contest & Forklift Driver All-Japan Group Express Nippon The Nippon Express Group actively participates in contests contests in participates actively Group Express Nippon The Min the of organizations extra-departmental by sponsored Land, of Ministry the and Welfare and Labour Health, of istry The education and and Tourism. Infrastructure, Transport Every year the Nippon Express Group All-Japan & All-Japan Driver Group the Nippon Express Every year to effort our of part as held is Contest Operator Forklift improve driving performance, including compliance with driving and rules, maintenance fuel-efficient inspec- traffic tion skills. While this helps and traffic prevent industrial

As a logistics company that uses air, marine and land land and marine air, uses that company logistics a As safety, to ensure our responsibility transport, we recognize exaggeration no be would it it; to priority first give we and to comes it when unacceptable is compromise say to In goal. our is accidents” industrial and traffic “Zero safety. 2010, we achieved “zero fatal traffic accidents causing Achieving “Zero Serious Accidents and Disasters” and Accidents Serious “Zero Achieving Industry Competition Champions! Environmental Initiatives Safety Initiatives Together with Our Customers Together with Our Partners Together with Our Employees Together with Society Corporate Governance 40 3 7 0 0 1 2 3 1 4 1 All industries 15 26 Other companies in 296 114 480 the same industry* Nippon Express Total 2,532 1,596 • (Unit: million yen) 0.09 0.03 2010 Nippon Express CSR Report 2011 Nippon Express 4 0 0 0 0 3 1 • 0.37 0.17 0.09 No fault* 2009 Total hours worked Total No. of working days lost • = x 1,000 0.1 3 0 0 1 2 0 0 0.14 2008 Item At fault* • *2 0.3 0.17 0.11 2007 • 0.12 0.04 0.28 2006 SeverityRate 0 labour accidents. No. of days lost per 1,000 hours worked Labour cost of safety-related positions (domestic) Educational costs (training at headquarters) Material publishing Nippon Express Group National Health Convention Safety and etc. recorder), control system (digital Trafﬁc etc. awarenessAccident and disaster prevention material, SAS screening test Other safety measures Total Rollover Falling Collision etc. Serious injury, Vehicle malfunction Vehicle Fire Total Type of accident Type Actual Costs Incurred for Transport Safety(FY2010) for Transport Incurred Costs Actual * 3 Refers to general freight haulers for goods transported by road. * 3 Refers to general freight * 2 The severity rate is an international indicator showing the level of injury as a result of * 2 The severity rate is an international indicator showing the level of injury as a result 2009 results. prevent to work proactively of initiatives such to the promotion labour accidents through is 2010 for goal Our Manual and Procedure as the improving Safe Working training. enhancing risk prediction tions, tions, appointed a general for controller safety (responsible transport ensuring to related issues of charge in and for safety) and notified the and Minister of Land, Infrastructure of the appointment. Transportation the enhancement of transport safety through to ensure efforts The Nippon will Group Express continue our sincere system. our transport safety management Evaluations comprise 38 items and results are referred to the referred are Evaluations comprise 38 items and results Safety Evaluation Committee (part of the Japan Trucking Association), which then issues certifications after approval. all of (90.9% 566 was 2010 fiscal of as facilities” safety “excellent The total number of Nippon facilities Express certified as applicable facilities). In addition, a total of 279 facilities among companies have been certified. Group the Nippon Express transport safety initiatives by working to obtain certification for The Nippon Express Group will continue to implement facilities. more Safety Management Regulation Number 2 Number of Accidents (FY2010) Related to Transportation 0.7 0.6 0.5 0.4 0.3 0.2 0.1 * At fault: Accident is due to negligence of Nippon Express No fault: Accident is not due to negligence of Nippon Express * At fault: Accident is due to negligence of Nippon Express

3 1 - All industries Other companies in the same industry* Nippon Express • 1.61 1.70 3.25 2010 Total hours worked Total No. of deaths and injuries • = x 1,000,000 3.79 1.65 1.62 2009 improved in comparison to to comparison in improved check, action; see page 38 38 page see action; check, for details) cycle based on the cultivation of two-way communication between business management divisions and the workplace. - Transporta Truck Motor the In tion Business accordance Act, we with formulated a new Transport Safety Management Regula- 2 *1 • 1.75 3.47 1.95 2008 • 2.21 1.83 3.78 2007 • 1.33 1.9 2.58 2006 Tourism, held in February 2011 Tourism, at which labour accidents occur. No. of deaths and injuries per 1,000,000 hours worked Labour Accident Prevention Training Labour Accident Prevention At Nippon Express, all of our employees are our most most our are employees our of all Express, Nippon At valuable assets, and we consider maintaining the safety - respon social fundamental a employees our of health and 2010 accident Nippon frequency rate* Express’s sibility. worsened but our severity rate* severity our but worsened Causes of Traffic Accidents Causes of Traffic Transport Safety Management Safety Transport * 1 The accident frequency rate is an internationalrate * 1 The accident frequency indicator showing the haulers for goods transported by road. * 3 Refers to general freight 0 1 2 3 4 Labour Accident Prevention Training Labour Accident Prevention We regret to report that Nippon Express incurred seven incurred that Nippon Express to report regret We - Trans the of infractions were that 2010 in accidents traffic portation Safety Management Regulation Article 2. implementing measures deter- to currently mine the incident cause and are each of analysis full a performed We to similar prevent accidents happening from again. The members of Nippon continue Group Express to work accidents. traffic any future together to prevent Obtaining Certification under Safety Evaluation Programme Obtaining Certification under Safety Evaluation Accident Frequency Rate Causes of Traffic Accidents Causes of Traffic port Safety Management, as set forth by the Ministry of Land, to uphold in an effort and Tourism, Transport Infrastructure, safety. transport through responsibilities social corporate our While we proactively implement initiatives to improve we leadership, management senior on based safety transport are building a safety management system within the do, (plan, PDCA the of application proper the for company The Nippon Express Group is The actively Group Nippon implementing Express Trans Transport Safety Management Safety Transport Fourth evaluation by the Ministry of The safety evaluation programme is a system for fairly evaluating evaluating fairly for system a is programme evaluation safety The and certifying facilities proactively working to ensure transport to users transport for easier it making of aim the with safety, transport providers. select safe and secure transport via truck, the government entrusted the National Freight In order to establish regularity in evaluations of cargo Motor Transport Rationalization Programme Implementation Association) to establish evaluation Agency (the Japan Trucking (1) legal compliance pertaining to areas: safety; (2) criteria in three accidents of and safety violations; efforts. and (3) vigorousness Obtaining Certification under Safety Evaluation Programme Obtaining Certification under Safety Evaluation Land, Infrastructure, Transport and Transport Land, Infrastructure, Environmental Initiatives Safety Initiatives Together with Our Customers Together with Our Partners Together with Our Employees Together with Society Corporate Governance 41 Total 6,707 cases 9,524 cases Product Nippon Express CSR Report 2011 Nippon Express development FY2010 throughout Japan Branches and of ces 5,751 cases 8,721 cases satisfaction levels Enhancing customer The customer 956 cases 803 cases Quality FY2009 Complaints Inquiries Inquiries Complaints VOCS improvements System and related departments 0 sharing FY2009 FY2010 information Headquarters: Customer Consultation Centre Company-wide 7,500 5,000 2,500 cases 10,000 efforts efforts to upgrade packaging techniques and provide etiquette instruction at training centres across Japan. In Aichi in centre training moving new a established we 2010, added vast Prefecture, to the Nippon Express Group’s network of moving training facilities throughout Japan, Center. Training Tokyo and Center Training Izu the including to quality provide continue in pursuing order greater We maximum customer satisfaction. Number of cases received through VOCS of Number casesthrough received *Reusable materials: see page 31 (Development of Reusable Packing Materials for Moving) Moving staff during practical training

Nagoya Moving Training Center Pursuit of Quality for Full Satisfaction (Moving Service Case Study) Pursuit of Quality for Full Satisfaction (Moving Service Improvements to VOCS (Voice of Customer Solution) VOCS (Voice to Improvements

We at Nippon Express Group have established our group’s corporate vision as follows: “A global logistics logistics global “A follows: as vision corporate group’s our established have Group Express Nippon at We company—supports customers logistics worldwide services.” through Earning the trust of our customers Also, reality. a vision this making in essential are services and goods our with satisfied are they ensuring and endea- we now, services; even and products offer merely not does group our diversify, continue to values as with them. in concert as partners customers and act alongside our vour to think Together with Our Customers Our with Together As a domestic moving service, the Nippon Express Group Group Express Nippon the service, moving domestic a As to kind are that Ecologicompo—moves customers its offers Utilizing it. inhabit who people the and earth the both reusable materials* independently developed by our to us allows and time packaging reduces greatly company in fast and moves comfortable. that Moreover, are offer involved work of quality the improve continuously to order devel- independently materials various utilize that moves in out carrying systematically are we company, our by oped We consolidated and systematized inquiries, opinions and We complaints received from customers via the company homepage and introduced the company-wide customer consultation system (VOCS: Voice of Customer on focus to us enabled has system Solution) This ago. years four - improve corresponding implement and feedback customer right the on figure The services. and products in ments 2010. shows the number of VOCS contacts in fiscal improvements by explained be can year last to compared The dramatic in increase the number of inquiries made to the contact page in January 2010, facilitating for information or contact us to search customers’ efforts services via about our homepage. Nippon These Express a to are response improvements direct comments from to difficult for search customers office such as, “it’s locations,” and “contact access to specific services is vague.” added - accumu was data of analysis detailed on based 2011 April in Topic,” by “Search function, search new A lated from customer inquiries and Nippon Express products and demands services. Further website concerning needed, as implemented be will adjustments and additions and making service user product guidance friendly, more concerns customer to swiftly respond to us allowing while and demands. Pursuit of Quality for Full Satisfaction (Moving Service Case Study) Pursuit of Quality for Full Satisfaction (Moving Service

Improvements to VOCS (Voice of Customer Solution) VOCS (Voice to Improvements Together with Our Customers Our with Together Environmental Initiatives Safety Initiatives Together with Our Customers Together with Our Partners Together with Our Employees Together with Society Corporate Governance 42

2 credits? 2 emissions 2 AWB” are registered registered are AWB” 2 Nippon Express CSR Report 2011 Nippon Express AWB program program AWB 2 ” ” and “ECO 2 efforts efforts to greenhouse achieve gas Japan’s 6% Minus Team as known initiative reduction as levels) 1990 from reduction percent six (a first set established in the Kyoto Protocol’s timeframe (2008–2012). Nippon is Express a registered participant in this initiative. in 6% Minus Team succeeded 25 (Challenge January 2010; Nippon continues Express to be a participating member.) achievement achievement of the goal emissions reduction as established in the Kyoto Protocol. amount of the system allows this Specifically, harmful greenhouse gases a developing the into converted be to reduced has country achievement of that country’s reduction target. The Clean Development Mechanism (CDM) is one of those measures. trademarks of Nippon Express. *2 *2 “ECO *1 This refers to indirect participation participation in national to indirect *1 This refers *3 This refers to flexible measures that enable the the enable that measures flexible to refers This *3 AWB service AWB that provides CO 2 3 AWB system and do you have any specific 2 —Japan Support System Corporation AWB service from Nippon Express. We decided to cooperate in cooperate to decided We Express. Nippon from service AWB 2 AWB AWB” AWB” is an environmentally-friendly 2

2 Japanese government Clean Development Mechanism (CDM)* Emissions reduction project Emissions reduction this action and gladly joined forces. With major corporations actively involved, more and more organizations will advocate the service, further raising environmental awareness. CO and effect gas greenhouse the reducing to approach your is What through logistics (distribution of goods)? logistics (distribution of through We are registered as the Ibaraki Eco Business Facility and actively involved the in entire various staff measures, is such as indoor climate control, regular cleaning of air conditioner filters, and closing the lid employ- our on of homes heated the into toilet extends awareness seats this And (to heat). of loss prevent CO of reduction the to contribute to best their doing everyone with well, as ees emissions. What do you think of the ECO requests or suggestions for Nippon Express? or suggestions for Nippon requests for time around turn quick requiring customers, overseas with deal frequently We appreci- greatly We etc. repair, needing parts of return and parts new of delivery Nippon Express. from ate the swift service we always receive What encouraged you to use the ECO What was your reaction to this service when you first heard about it? when you first heard to this service What was your reaction With environmental issues the critical topic these something beneficial for the It environment. was this around time that we heard days, we wanted to start ECO the about Credits Credits

2 Capital

Contribution Emission credits Emission in June 2009, aiming at achieving the “Minus 6%” greenhouse gas gas greenhouse 6%” “Minus the achieving at aiming 2009, June in *2 emissions in our own business operations, the Nippon Express Group Group Express Nippon the operations, business own our in emissions transport 2 Express Commissioned AWB” 2 AWB 2 Case Study: Application of ECO Case Study: Certificates mandated by the Kyoto Protocol. “ECO Applications *1 Eco in February 2011. 2 emission credits. The Nippon Express Group will continue to be a conscientious partici- conscientious a be to continue will Group Express Nippon The credits. emission Offset provider Offset 2 CO 3 Customers Nippon Takeshi Sato President Japan Support System Corporation As a manufacturer of precision instruments, Japan Support System Corporation is involved in every stage of the process, from design to wiring processing, and assembly, shipping preparation of everything from manufacturing equipment to apparatus and production tooling. As they expand into the global market, their needs for export services are growing as well, and the Nippon to be selected as their logistics supplier. is pleased Group Express Sato, asking him what encouraged Japan Support interviewed Takeshi System President to use We the ECO and how has it benefited the company so far. Parts feeder TOPICS TOPICS Transport Service with CO Service Transport Transport Service with CO Service Transport emissions emissions goal pant with its customers in regards to environmental conservation, promoting environmentally-friendly environmentally-friendly conservation, promoting to environmental pant with its customers in regards sales started also We transportation. of modes various of advantage full take that products logistics Eco of Offset In addition to reducing CO reducing to addition In logistics logistics service that combines international airfreight transport service and Kyoto - mechanism based* started to sell “ECO sell to started Emissions InitiativeCredit Environmental Initiatives Safety Initiatives Together with Our Customers Together with Our Partners Together with Our Employees Together with Society Corporate Governance 43 Nippon Express CSR Report 2011 Nippon Express

Tsutomu Kanemaru Akio Yokasho Great Great East Japan Earthquake, but with the PRB, we don’t need electricity, which is a great saving electricity. help when it comes to and cardboard as such products paper into recycled are documents the process, erasure chemical the Following envelopes. and Paperclips other metal materials also are fully recycled, significantly lessening the environmental impact compared to burning or shredding confidential documents. Right: Manager, Accounting Section, Finance Department Japan Weather Association Left: Senior Staff Member, Business Office Sales Section Sumidagawa Branch Logistics Centre Chemically ease and recycle into Chemically ease and recycle raw material at processing facility —Japan Weather Association Weather —Japan Report to customer with Certification of Disposal emissions and and emissions 2 of Disposal Certification Box Paper Recycle Case Study: Paper Recycle Box Recycle Paper Case Study: save on power consumption. What is your approach to (Reduce, Reuse, Recycle)? waste reduction and the 3Rs The generation of a certain amount of waste is inevitable in any kind of business activity. But excess consumption can reuse can we how of aware be all should we feel I curbed. be them. or acquire goods when we purchase and recycle What do you think of the PRB now that you using are it, and Nippon for suggestions or requests specific any have you do Express? Although we haven’t taken any when accurate to compared measurements, now paper less it away throw we like seems we had periodic waste paper collections. I developed a think sense that document disposal has for recycling we have become an easier task. Some more than one PRB, which shows departments just how popular the idea require even has become. We have experienced many power outages since the What encouraged you to use about it? first heard to this service when you reaction the PRB? What was but previously processing used larger We your a shredder, a significant amount of time both amounts of paper required We paper. shredded remaining the of dispose and cut to of the PRB to lessen labour introduction costs in considered CO reduce to hoped also We office. the The Japan Weather Association (JWA) provides weather information and environment, preserving consulting safety in our daily services lives, promoting industrial activities, on and protecting the environment. In disaster the past, the prevention and the each in (PRB) Box Recycle Paper a maintain now but basis, seasonal a on disposal document for Bin Recycle Eco our used JWA convenience. division for greater was at this point. try the PRB and what his evaluation of the service Kanemaru, Accounting Finance Section Department, Tsutomu Manager what asked in encouraged We Mr. the him JWA’s to TOPICS Discard documents at customer site Collect and deliver Paper Recycle Box (PRB) Recycle Box Paper The Paper Recycle Box is a system that offers safe and and safe offers that system a is Box Recycle Paper The which of some documents, confidential of handling efficient into may include personal information, to enable recycling usable resources. Express Nippon the which box, locked the into documents The customer simply discards the confidential collects under Group and tight delivers control to the treatment facility for safe and secure chemical erasure the processed, been have documents the After processing. “Certification of Disposal.” customer is issued a Paper Recycle Box (PRB) Recycle Box Paper Environmental Initiatives Safety Initiatives Together with Our Customers Together with Our Partners Together with Our Employees Together with Society Corporate Governance 44 Nippon Express CSR Report 2011 Nippon Express Annual meeting of the Nippon Express Group CSR Council as a group, we aim to expand the range of group company company group of range the expand to aim we group, a as participants while continuing to hold this very valuable meeting. Act support system to each transaction to ensure fair and and fair ensure to transaction each to system support Act conduct, proper including the delivery electronic of order placement documentation and management of payment dates. systems, the Nippon Express Group aims to maintain With the expedient implementation of such internal with our partners. relationships appropriate quality. - agree an concluding after even partners our with meetings safety regular hold we standards, these to addition In enhance and maintain to strive mutually we as ment, a Branch, International Oi Transport example, an As quality. marine holds transport a Nippon business Express office, a on companies transport partner with meeting safety joint monthly basis to studies conduct of comprehensive past accidents and other topics to related securing transport safety.

Nippon Express Group Initiatives Group Nippon Express Partner CSR Quality Maintenance and Enhancement Initiative Partner CSR Quality Maintenance Appropriate Transaction Initiatives Transaction Appropriate

From their driving manners on the road while making deliveries to the way they greet the customer upon delivery, we we delivery, upon customer the greet they way the to deliveries making while road the on manners driving their From - to be consider a the reflec attitude and actions of our subcontracted drivers, to whom we entrust transport of cargo, diverse the to respond fully to order In overall. Group Express Nippon the of levels quality and safety the of tion contractor, principal as responsibilities our fulfil to aim we general, in society and customers valued our of requests businesses. as well as our partners’ both our business and work to expand as a partner relationships build trusting Together with Our Partners Our with Together Customers may have noticed trucks with the name of of name the with trucks noticed have may Customers “Nippon as such sides, the on painted Express Nippon our as Express,” Nippon “XXX or Transport” XXX Express these Actually, road. the on are or deliveries make drivers itself, vehicles not belong to Group the Nippon Express of array an by served are customers Our Express. Nippon companies 338 the from entities, Nittsu or Express Nippon that comprise Nippon worldwide Express to the many companies that perform as our major partners. group single a as entity together works to Group excellent promote Express Nippon CSR entire initiatives. The Two examples of tandem efforts transport rationalization (truck transport) initiative and the as a group are Safety Evaluation Programme (see page 40 thefor related motor article). in initiated was event This year. a Express once Nippon Council CSR the hold Group we efforts, such of part As June 2001 as the Environmental Nippon Group Express Issues Information Exchange Meeting, and developed into Council, finally becom- Environmental the Nippon Express fiscal the of as Council CSR Group Express Nippon the ing initiatives CSR our advance further to order In event. 2005 Nippon Express considers the maintenance and enhance- Nippon Express company, own our within only not important quality of ment to addition in beyond well, as companies partner within but transport. contracted for on rely we companies group the Externalthe developed have we Performance Accordingly, Evaluation Standards, an agreement comprising 16 to which potential suppliers must fulfil in order standards, We like. the and operations delivery for contract a enter have also determined additional key items concerning quality maintenance, which, used are when for required, enhancing and maintaining in parties both aid to evaluation The The Act against Delay in Payment of Subcontract Etc. to Subcontractors (Subcontractor Proceeds, Act) was in provided services the include to 2003 in revised partially all almost revisions, the to According industry. transport the and its fall partners transactions between Express Nippon compli- As Act. Subcontractor the of regulations the under business appropriate of basis the forms act this with ance relationships, Nippon Express applies our Subcontractor Nippon Express Group Initiatives Group Nippon Express Partner CSR Quality Maintenance and Enhancement Initiative Partner CSR Quality Maintenance

Appropriate Transaction Initiatives Transaction Appropriate Together with Our Partners Our with Together Environmental Initiatives Safety Initiatives Together with Our Customers Together with Our Partners Together with Our Employees Together with Society Corporate Governance 45 (FY) No. of women 5,106 36,746 Nippon Express CSR Report 2011 Nippon Express 4,832 35,174 5,665 38,984 2007 2008 2009 2010 5,428 38,517 2006 5,149 37,963 (3-year plan from fiscal 2010 through fiscal 2012) fiscal 2010 through (3-year plan from 0 50,000 40,000 30,000 20,000 10,000 that that the company expects in each qualification category (job and function criteria creates requirements), to judge whether those capabilities have been attained (promotion established the fulfil to necessary it making thereby criteria), conditions and criteria for promotion. (persons) Total Number ofEmployees Number Total Promote succession of skills and develop employee expertise Create corporate culture that allows employees to develop their skills and abilities B. of personnel a corporate culture Establish an OJT plan (on-the-job training plan) and create workplace by sharing the in the reflected training are of group the results development. Make sure at the workplace. performance improvements fruits of on-the-job training and applying them toward C. Develop independent-minded employees to instructions for wait just who staff passive from employees, in our change encourage We our personal will strengthen independent-minded employees who act on their own thinking. We of each and every employee. development development system and support the career D. with high-level specialized knowledge, skills, and human resources will develop professional We expert craftsmanship concerning logistics. E. Strengthen frontline and business capabilities that can adapt to corporate structure capabilities to establish a strong up our frontline will gird We we will develop human change. Along with fostering customer focus and business mentality, business solutions. that can provide resources Education and Training Policy Education and Training A. Implement Corporate Philosophy and promote ethical behaviour which employees can take personal pride and a a company in aim to earn the trust of society, We we aim to establish a code Furthermore, its employees with job satisfaction. company that provides education, CSR practise and training to foster continuous compliance of corporate ethics through awareness. environmental Average age Average years of service 39.5 15.6 5,106 31,640 36,746

Implement an ability-focused personnel system based on Implement an ability-focused personnel system demonstrable achievements. jobs. Endeavour to place talented employees in non-clerical Regard each employee as an individual with emotions and will, Regard each employee as not as mere labour. ¡Emphasis on Performance ¡Utilize Talent ¡Human Dignity Men Women Total no. of employees Human Resources Development Human Resources Personnel System Reform Personnel System

As our vision and Group Conduct Charter state clearly, the Nippon Express Group values its employees and and employees its values Group Express Nippon the clearly, state Charter Conduct Group and vision our As Nippon resources human job satisfaction. conducive of to The type work environment a create to strives own our with line in conduct of code personal a possess who individuals are most desires Group Express corporate philosophy—individuals who make efforts to improve themselves. develop We our human their ability. to the heights of to work up all of our employees a way that will allow in resources Together with Our Employees Our with Together To ensure continuous growth, it is is it growth, continuous ensure To a create to companies for essential corporate culture that allows employees to develop their skills rapidly chang- and abilities. Today’s ing business environment requires companies to foster - independent minded employees and the next generation of leaders. Companies also need to cultivate personnel of realization the to contribute who corporate goals, by providing education and training designed to skills business employees’ enhance as well as understanding of CSR. Group the Nippon Express growth, In order to realize further established an education and training policy (see right) in 2010, human resources and is promoting development. To make the personnel system acceptablemore To to employ- and fair through motivation job their increase to and ees impartial evaluations, we instituted a Job Function Qualifi- cation System and System in April 1999. Goal-based Personnel Evaluation capabilities sets System Qualification Function Job The Nippon Express’s personnel system has a basic philosophy philosophy basic a has system personnel Express’s Nippon principles. three comprising the following Human Resources Development Human Resources Personnel System Reform Personnel System

Employees (FY2010) Employees Together with Our Employees Our with Together Environmental Initiatives Safety Initiatives Together with Our Customers Together with Our Partners Together with Our Employees Together with Society Corporate Governance

46 Coordination with the personnel system personnel the with Coordination Nippon Express CSR Report 2011 Nippon Express personal and career Support for development development (management class) (Technology) Izu Campus Training session specialist Leader Development Workshop development Professional and Shibaura Campus (Sales and Administration) employees Rank-based training Baseline training Training for selected NITTSU Group University Division-based training Training through the Internet (Net Campus) Business leader development

Shiodome Campus

(Sales and Administration) Coordination with business strategy business with Coordination Human Human Resource Development Framework (Overall Image) NEX-TEC Shibaura In order to contribute to the company’s growth as a global logistics company, Nippon Express will Nippon Express as a global logistics company, growth to contribute to the company’s In order will we In addition, system. education and training the through resources human global develop affiliates. in overseas of local staff support the development management H. Promote diversity in culture that support a corporate instituting training programs diversity management by promote We their capabilities. which women can fully apply We will develop next-generation leaders who can adapt to a rapidly changing business environment business environment can adapt to a rapidly changing leaders who will develop next-generation We in the company. innovations and promote global human resources G. Develop F. Develop next-generation leaders F. Develop Establishment of NITTSU Group University of NITTSU Group Establishment Nippon Nippon Express started to send employees overseas in 1958, and established on overseas operations trainee programme in 1964. Though partici- few a only with began programme the year per employees young 50 about now pants, (in year 1 for subsidiaries overseas to sent are some cases 2 years) to undertake on-the-job completing employees 1,500 nearly With training. the training to contributes date, the programme global a be to goal our of realization the to greatly logistics company by helping our employees develop global expertise. In our 2010 programme, 22 in companies 27 to sent were employees 50 countries. The Nippon Express Group plans to unify and and unify to plans Group Express Nippon The - devel resources human conventional its innovate opment strategies and systems to develop logistics the lead will who personnel professional The industry. NITTSU Group University was established on April 1, 2010. Its main campus, and Training NEX-TEC Shibaura (Nippon Express with Education was Centre), completed in May, environmentally-friendly features such as solar- lights. street and wind-powered a fostering while values new create to seek we together, skills and knowledge our bringing By corporate culture that allows employees to develop their skills and abilities. Establishment of NITTSU Group University of NITTSU Group Establishment Developing global human resources: Developing global human resources: Programme Overseas Operations Trainee Environmental Initiatives Safety Initiatives Together with Our Customers Together with Our Partners Together with Our Employees Together with Society Corporate Governance 47 Nippon Express CSR Report 2011 Nippon Express Physical Health Consultation Line, an outside consultation service which can be reached online or by telephone, has been established. workplace managers are held in each region of Japan, taught by outside specialists. employees. undergo an outside training course called Mental Consultation Specialty Training and the consultation system is being improved. Self-care: An email magazine is distributed specifically for Workplace Health Care: Mental health training sessions for Care by Outside Specialists and Organizations: The Mental and In-house Care by Industrial Healthcare Staff: Health counsellors ¡ ¡ ¡ ¡ United Nations General Assembly in 1948, reads, “Everyone is entitled to all the rights rights the all to entitled is “Everyone reads, 1948, in Assembly General Nations United race, as such kind, any of distinction without Declaration, this in forth set freedoms and sex, language, religion, political colour, or other opinion, national or social origin, birth or other status. property, *Article 2 of the Universal Declaration of Human Rights, which was adopted by the the by adopted was which Rights, Human of Declaration Universal the of 2 *Article 2011, 228 employees took childcare leave. We are currently currently are We leave. childcare took employees 228 2011, Plan, Action Employer General the of period third the in for out carried be will and 2011 April in initiated was which two period, years. we In continue this encouraging third employees to take leave childcare and implementing are self-awareness training to reduce overtime work, while as part of our programme an onsite education instituting social contribution activities in each region. the on based measure key a as satisfaction job employee improving up take will we 2010, fiscal in Starting 2012—Towards Strategy Corporate Group Express Nippon and will continue to hold discussions between New Growth, management and labour a to balance promote between - environ work better a realize and life personal and work ment. overwork. We are also making an effort to streamline to streamline also making an effort are overwork. We inspections workplace joint implement and tasks employee with the labour union. employees, employees, management and labour exchange opinions concerning the management of the company in two venues: the Central Management Council, which is for Nippon the and headquarters between discussions general Union Express Central Worker’s Division, and Branch Committees, which held are between company branches and union branches. promoting as such topics on focused meetings committee Furthermore, labour and management hold special committees These health. and safety and balance work-life actions. and discuss future conditions analyse current arrange- have we treatment, such other any or harassment, our - whistle and ments consultation through for reporting blower system—“Nittsu Speak Up”—which enables us to and prevent discrimination address and similar behaviour immediate action. through - Workplace Healthcare Workplace Initiatives to Support the Nurturing of the Next Generation Initiatives to Support the Commitment to Human Dignity Commitment Relationship with the Labour Union the Labour with Relationship Based on the Law Concerning the Promotion of Measures Measures of Concerning Law Promotion the the on Based Children, of Generation Next the of Nurturing the Aid to Nippon Express values the various ideas the regarding balance between work and personal life, such as child and all rearing other work-life balance issues, under the bring sufficiently to able be will employees all that premise contributing actively are We work. their in abilities their out to activities on centred individuals independently realizing local the in rearing child as well as designs, life various a as responsibility social our fulfil to order in community, corporate citizen. 2007, September of end the and 2005 April between Plan, Action Employer General the of period first the During during Similarly, leave. childcare took women and men 116 the second period, from October 2007 to the end of March Nippon has Express assigned health advisors who are certified nurses, or certified with specialized knowledge employee for branches all to health, or medicine regarding health guidance. Advisors provide individual health in the workplace. rounds counselling by making regular we have the received Guidelines society, throughout for Concerning the rise recent in mental health issues Improvement of Preservation of Mental Workers’ Health from the Ministry of Health, Labour and Welfare and have key a as measures health mental of priority the heightened item within our safety and health management policy. The underway. currently are following measures a as hours work extensive eliminate to hours work overall decreasing at aimed targets set have we addition, In prevention measure for health impairment caused by Nippon Express’s compliance rules recognize the Nippon United Express’s Nations’ Universal Declaration of Human Rights,* and on that basis, prohibit all actions leading to discrimination, sexual harassment and so on. provide to opportunity every use we thinking, training this with line In on preventing discrimination against training minorities and other human rights issues in group fair use always we employees hiring When meetings. and and completely procedures exclude screening - discrimina power In the event of sexual harassment, tory treatment. The Nippon Express Worker’s Union was launched in 1946 1946 in launched was Union Worker’s Express Nippon The approximately has 2011, March of end the of as and, Express Nippon the and Express Nippon members. 26,000 that within Union their have relationship affirmed Worker’s the respect will parties both built, have they trust mutual of situation, maintain the between order labour other’s and the to aspiring while together cooperate and management common goals of the developing business and improving commu value we Express, Nippon At environment. labour nication between labour and management. In for order the collective will of the company management to reflect Workplace Healthcare Workplace Initiatives to Support the Nurturing of the Next Generation Initiatives to Support the Commitment to Human Dignity Commitment Relationship with the Labour Union the Labour with Relationship Environmental Initiatives Safety Initiatives Together with Our Customers Together with Our Partners Together with Our Employees Together with Society Corporate Governance 48 18,000 16,000 14,000 12,000 10,000 8,000 6,000 4,000 2,000 0 (Number of employees) Nippon Express CSR Report 2011 Nippon Express Forklift operator instructor Business card printing service Number of overseas employees Number of overseas Number of overseas locations Number of overseas 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 0 50 450 400 350 300 250 200 150 100 Nippon Nippon Express headquarters. Our Gambaritai Group is another business support service, assigning disabled employees to various Nippon Express locations in the we Group, Gambaritai the of support In area. Tokyo a as act to location each in manager dedicated a position special-needs close liaison between the employee, family, or his in comfortable feel employee the help to etc., school, her workplace. Female Female forklift operators work as instructors, playing an workplace.” in the development of a “strong important role management for educational training programmes at the and planning curricula oversee also employees Female allowing same drivers, centre, forklift operators and other employees from across the country to enjoy smooth our educational training course. through progress (Centres) Internal mail service Number of Overseas Locations and Overseas Employees Overseas and ofLocations Overseas Number Education & training staff at Izu Training Centre 14.4% 15.6% 22.5% 34.3% 27.5% 30.9% 29.1% 27.6% 27.9% 113 144 226 471 416 519 366 268 178 No.employed No. of women Percentage 786 923 972 637 1,004 1,373 1,515 1,680 1,257 FY2005 1.92% FY2006 1.95% FY2007 2.05% FY2008 2.08% FY2009 2.05% FY2010 2.04% 2003 2004 2005 2006 2007 2008 2009 2010 2011 Fiscal year Number of Employed Employment of Disabled People Women in the Nippon Express Workforce in the Nippon Express Women Employees Supporting Overseas Networks Overseas Supporting Employees Increased Employment Rate of Increased per FY) Disabled People (Total In an effort to step up employment of disabled people, people, disabled of employment up step to effort an In Nippon is Express expanding the range of occupational of part As Japan. throughout location every at offered fields these activities, Nittsu Heartful Co., Ltd., was founded in November 1997, and was accredited as a preferential subsidiary of Nippon Express under the Handicapped Act Persons’ in Employment May Promotion 1998. Nittsu for printing internalhandles Heartful card business and mail As active involvement of women is imperative for corporate corporate for imperative is women of involvement active As expansion, Nippon the is promoting Express aggressively hiring of female employees. employees in fundamental driving and Centre, Nippon At maintenance Express skills tutors its Izu Training safe driving and operational practice as well as providing driving and forklift designed operating to accidents. prevent It was 1958 when Nippon Express established its New York York New its established Express Nippon when 1958 was It The the Nippon first overseas office. office, representative has currently Group Express 15,824 employees in 386 locations within 214 cities spanning 37 nations, providing international services such as marine and air cargo - continue to proac transportation and overseas travel. We tively logistics pursue that domestic product and regional conform to the circumstances affecting each area. The the development of is Group reinforcing Nippon Express pluralistic provide to effort an in hires) (local staff national global a as country, each in companies local with services logistics provider. Employment of Disabled People Women in the Nippon Express Workforce in the Nippon Express Women Employees Supporting Overseas Networks Overseas Supporting Employees Environmental Initiatives Safety Initiatives Together with Our Customers Together with Our Partners Together with Our Employees Together with Society Corporate Governance 49 Nippon Express CSR Report 2011 Nippon Express Classroom lecture society’s society’s development, responding to many need customers’ for high quality and However, the speed, CSR Report shows as that the company well must as low also set an example in actively to responding environmen- cost. tal problems, facing many extra challenges beyond logistics. just developing economies produce logistics. new Nippon Express should markets be responsive to needing these changes, concomitantly fostering global human resources to thrive on the internationalready stage. As the industry leader, the company is a driving force in Express Express Group should play in future issues. related social changes and attempt at gathering the opinions first our of was student CSR applicants, promoting to approach new This positioned somewhere between Group employees and results valuable the apply to plan external We stakeholders. CSR activities. to benefit future nations’ emerging progresses, globalization (borderless) As with the focus on the Tokyo Air Service Branch. Air Service on the Tokyo with the focus Course has As been part of developed this for initiative, the operations key a Overseas that managers Recognizing Air companies. overseas Freight and from instructors Skills aspect of teaching skills is to have the trainee see the actual hands- a established we eyes, own her or his with operation on training programme, bringing leader-level employees in to supervision worksite and instruction operational of charge Japan for onsite training. Disseminating Japan among skills colleagues at learned their respective worksites, in the participants will augment the worldwide Express Group This transport system quality. is expected to level of Nippon trigger a beneficial cycle of improvement leading to higher levels of customer satisfaction. Worksite tour CSR Survey Targeting Prospective Employees Targeting CSR Survey Global Standard OperationsGlobal Standard Initiative the company’s social responsibility lies in its mission flow of goods. the smooth, uninterrupted ensure to Prospective Employees’ Key Impressions and Opinions Employees’ Key Impressions Prospective In March 2011, 241 prospective recruits expected in the April CSR Nippon 2011 Report Express received 2010 to join and were requested contents. While to introducing these new university graduates complete a to Nippon survey Express Group CSR about activities, prior content, Report this CSR on perspectives students’ gauged the survey also knowledge of Group CSR activities, the role of the Nippon Although most comments referenced environmental issues and Nippon Express’ role in Great East Japan Earthquake relief work, we also received feedback on Nippon Express’ mission, readiness for rapidly changing business ments, environ- and new challenges. The following is survey responses. a sample of If logistics fails, society will come to a halt. I realized that As many companies take on global expansions, the Nippon Express Group global network must respond to heightened cost on only not demands of focus the with needs, customer and speed, but on quality as enhance well. our To this operation services end, at we every must location, Japan or overseas. be it in quality for responsible was company overseas each past, the In control at each local professionals, worksite. we Now, must as uphold airfreight a recognized level throughout the of world, service affording services our Group that Express Nippon customers on depend to confidence is the the globe. expand across for all their needs as they an initiative to establish Global For Standard this reason, the Operations, Nippon Express Group is promoting aimed at raising the quality of our services to an even higher level, TOPICS TOPICS Environmental Initiatives Safety Initiatives Together with Our Customers Together with Our Partners Together with Our Employees Together with Society Corporate Governance 50 Nippon Express CSR Report 2011 Nippon Express Tree nameplate Collected plastic bottle caps Nationwide Cleanup Activitiy Leaf-raking Activity at Hama-rikyu Gardens Trees planted in the Tokyo metropolitan My Tree Program Forestation cultivation activity emissions by 2.7 tons.* 2

caps generates 3.15 kilograms of CO2 gases. Involvement in the Environment Involvement *800 caps earn a polio vaccine for one child. Incinerating 400 20 yen, enough to purchase

As a company using public infrastructure such as highways, railways, ports and airports for its business and and business its for airports and ports railways, highways, as such infrastructure public using company a As of step every trust inspire pride: “Our society. of member trusted a be should we society, with closely working to resolve our expresses which philosophy, corporate Group Express Nippon the of part integral an is way” the realize and society, of members other with communication promote to strive will We society. of earn trust the with them. mutual development Together with Society with Together The The Nippon Express group has been conducting Nationwide June In 2004. since Month Environment during Activities Cleanup 2010, 12,925 employees and family members joined in forces various cleanup events focusing on areas surrounding each conducting are facilities more and more Recently facility. business such activities on a monthly basis, - supplementing the Environ ment Month event. program collection Ecocap the in participated have We activities. recycling small-scale pursues also Group Express Nippon The since January 2009. The Ecocap Movement, an NPO selling companies, donates its collected plastic bottle caps to recycling of purchase toward vaccines profits for in children developing countries. As of 2011, March 393,960 caps collected were with 455 children providing Group, the Nippon Express throughout CO vaccines while reducing The Nippon Express Group is involved in yearly activities for for activities yearly in involved is Group Express Nippon The In soil. and water our safeguard that forests of protection the fiscal 2010, Nippon Express conducted such activities in three prefectures within and Tottori Japan—Yamagata, also launched a new initiative in which Shizuoka. We employees home acorns take cultivate. In and seedlings to erected we Prefecture, Shizuoka of forests Nirayama Izu the are birds as owls, of population the increase to houses bird of a forest. often used as an index to evaluate the health Tokyo the (supporting trees 100 of gift a included metropolis Our environmental protection initiatives in the Tokyo to plant along Sotobori-dori Program) My Tree metropolitan as well as joint group a major thoroughfare, Avenue, which Gardens, Hama-rikyu at Activity Leaf-raking company Tokyo). Headquarters (Shiodome, face Nippon Express Nationwide Cleanup Drive and Small-scale Recycling Activities Environmental Conservation Activities Environmental Conservation of variety a for facilities welfare social to presented and year each of end the at collected are calendars unused addition, In purposes.

Involvement in the Environment Involvement Together with Society with Together Biodiversity Initiatives Environmental Initiatives Before undertaking biodiversity initiatives, a prudent review Studies of local bird populations inhabiting the of the creatures sharing planet Earth sent Nippon Express company-owned forest in Izu Nirayama were conducted in “In Search of Living Creatures” inhabiting rivers bordering May 2010 (breeding season) and February 2011 (the the Nittsu Forest (Iide Town, Yamagata Prefecture) with Iide hibernation period). Results confirmed 43 types of birds Town Elementary School pupils. spanning 23 families and 8 orders inhabiting the forest. At Lake Biwa in Shiga Prefecture, Nippon Express Owls, woodpeckers and titmice were spotted, along with joined forces with a local NPO organization to expel the non-native species such as the Chinese Bamboo Partridge black bass from the lake. The goal was to maintain the local and the Chinese Hwamei. Birdhouses were erected to ecosystem after the drastic propagation of black bass, a boost the owl population, as birds serve as an index to non-native species, threatened indigenous sweetfish. evaluate the health of a forest. Safety Initiatives Together with Our Customers

“In Search of Living Creatures” program Black bass disinfestations activity Birdhouses for owls erected in the forests of Izu

InvolvementInvolvement inin thethe ArtsArts andand CultureCulture

Nippon Express presents Saori Yuki & Sachiko Yasuda,

Songs With Your Life Concert and Homemade School Concert Together with Our Partners

Based on their desire to “pass beautiful Japanese songs on to the children of the 21st century in the hope that they will inherit and continue to sing them,” sisters Saori Yuki and Sachiko Yasuda started this Children’s Songs concert. Nippon Express shares their cause and has continued to support the duo’s concerts since 1995. Homemade School Concerts are exactly what their

name implies— the pair visits junior high schools, borrows Together with Our Employees the gymnasium or auditorium, and produces a concert in collaboration with the schools’ students and staff. Nippon Express has supported these concerts since their inception in 2002 and, over a nine-year period, has held concerts at 70 schools across the country.

Museum of Logistics The Museum of Logistics, created by the Forwarders Coun- Nippon Express. cil, is Japan’s first museum specializing in the freight The museum features permanent exhibition rooms,

transport industry. The museum was established in 1998 to video viewing rooms, and other exhibits introducing the past Together with Society widely promote the logistics industry to the public. and present of the logistics industry, as well as a range of The museum houses approximately 2,000 actual docu- hands-on experiences, such as “making delivery vehicles ments, 10,000 historical documents, and 100 stock videos out of cardboard,” “wearing delivery driver uniforms,” “using from industry films and such produced over the years, delivery tools from the past,” and “using furoshiki (Japanese 40,000 pho- wrapping cloth).” In addition to group visitations for elemen- tographs, tary or junior high school field trips, company employee and a vari- training, etc., special exhibits, movie events and lectures are ety of other also occasionally held, attracting visitors of all ages. unclassifi- The “Treasured Document Exhibition—the Nippon able spe- Express Collection” was held in 2010. Around 130 Corporate Governance cialty items. documents providing insight into modern and contempo- A number rary history were introduced; a rare display of historical of items in documents related to transportation and distribution from this valuable our collection of some 70,000 items dating as far back as collection 1955. are owned Nippon Express supports the operation of the Museum or were do- of Logistics by offering donations, providing exhibit items Museum of Logistics B1: Modern Logistics Exhibition Room nated by and other means.

Nippon Express CSR Report 2011 51 Environmental Initiatives Safety Initiatives Together with Our Customers Together with Our Partners Together with Our Employees Together with Society Corporate Governance 52 Nippon Express CSR Report 2011 Nippon Express Express Express (Malaysia) will continue bringing joy implementing to initiatives the underprivileged upholding corporate children responsibility as of an entity the conducting area, business in the region. Japanese culture and education as well as disaster-stricken areas. In 2010 alone, the foundation donated to causes, some including 30 a special-needs school Massachusetts and in victims of the the Haiti earthquake and state the of donations two latter the explosion, gas California Bruno, San Red Cross. the American being made through anniversary of the company’s th Overseas Activities: Dinners Held for Children from Local Orphanage Activities: Overseas Supporting Cultural Exchange and Social Action Programs Supporting Cultural Exchange and Social through the Nippon Express Foundation —Nippon Express (Malaysia) Sdn, Bhd. —Nippon Express (Malaysia) Sdn, —Nippon Express U.S.A. Inc. —Nippon Express U.S.A. Once a year, Nippon Express (Malaysia) invites children from from children invites (Malaysia) Express Nippon year, a Once the local orphanage to dinner at a participate restaurant. Employees in the presented to the orphanage. As dinner, the initiative was started in during which 2009, the Nippon 2010 event was the second annual dinner. a donation is In observation of the 30 founding, Nippon Express U.S.A. established Express the Foundation in 1992, creating a way Nippon to give back to the local community. They have continued to contribute to community and cultural activities throughout the U.S. ever since. Recipients of such support include groups promoting TOPICS TOPICS TOPICS TOPICS Baseball Clinic with the Nippon Express Clinic with the Nippon Baseball Club Baseball Involvement in Local Communities in Local Involvement The Parent-Child Bicycling Workshop is sponsored by the by is sponsored Workshop Bicycling The Parent-Child Police Station twice a Department in the Takaido Traffic Safety Campaigns. year during the spring and fall Traffic local encourage to effort the in joins School Driving Nittsu and instructors, who its premises safety by offering traffic other lectures. and provide regulations explain traffic of September public and general the morning for class a with cycling March 2010, in held were events Such lower- targeting class afternoon special parent-child a and grade students local of elementary three schools. Partici- pants learned manners basic and rules traffic in both hands-on sessions on the driving course and classroom for class bicycling a featured also event fall The lectures. senior citizens, with some by families represented three generations! stuntmen with highlights such as pro and is peppered Each seasonal event attracts 150 around participants, bicycle accidents. re-enacting The Nippon Express Baseball Club holds a baseball clinic clinic baseball a holds Club Baseball Express Nippon The February around every year at Nippon baseball Express’ belonging students for City, Saitama Urawa-ku, in grounds to local junior high school baseball clubs. Fiscal 2010 an providing held, was event the year seventh the marked technical the only not improve help to us for opportunity partici- 170 the of bodies and minds the also but prowess the game of baseball. through pating young athletes Baseball Clinic with the Nippon Express Clinic with the Nippon Baseball Club Baseball Nittsu Driving School’s Parent-Child Bicycling Workshop Parent-Child Nittsu Driving School’s Involvement in Local Communities in Local Involvement Environmental Initiatives Safety Initiatives Together with Our Customers Together with Our Partners Together with Our Employees Together with Society Corporate Governance 53 Nippon Express CSR Report 2011 Nippon Express Shin-matsudo Campus Onsite class at a junior high school Junior high school students visiting the workplace offering university: the to support of variety a provided has Group Since the school opened, the Nippon Express Nippon Donated Express Courses, accepting interns and onsite offering tours of logistics facilities, and conducting joint research on logistics-related issues. The Nippon will continue to Group contribute to the Express further human to as well as industry logistics the of development development. resource five schools participated in worksite experiences at Nippon Nippon at experiences worksite in participated schools five Express facilities, while 162 students in two schools employees. onsite lessons by Nippon Express received Ryugasaki Campus Junior high school students gaining work experience Kids X change environmental study materials Nurturing the Next Generation Involvement with the Next Generation with Involvement Ryutsu Keizai University was founded in 1965 by the Nittsu Nittsu the by 1965 in founded was University Keizai Ryutsu Gakuen Educational Corporation, with the support of and research for the purpose of promoting Nippon Express, (RKU Kashiwa High School was also education on logistics. school). high affiliate university’s the as 1985 in established few very are there where Japan, in case rare a is This companies sponsoring the establishment or management learning industry and promote to institutions educational of development. Ryutsu Keizai University Ryutsu Keizai Nippon Express contributes to environmental education by by education environmental to contributes Express Nippon developing study materials named “Kids X change.” The elementary school students upper-grade materials targeting warm- global as such topics environmental various explain a in consumption and waste, water, resources, energy, ing, students 5,000 2008, Since fashion. understandable readily change” X for“Kids used have schools 80 of total a in study purposes. onsite lessons at schools upon request. The also instructor Nippon sends Express employees to conduct paper recycling how as such topics, environmental teaches reduces deforestation, using Nippon Express’s Box Recycle Paper the product, environmentally-conscious (PRB), as an example. school Each year the number of elementary and secondary students visiting Nippon Express worksites experiences work onsite of number the does as increases, students 86 2010, In students. school high junior by gained from eight schools visited worksites while 11 students from Nurturing the Next Generation Involvement with the Next Generation with Involvement Environmental Initiatives Safety Initiatives Together with Our Customers Together with Our Partners Together with Our Employees Together with Society Corporate Governance 54 - - Report removal Appointment and Nippon Express CSR Report 2011 Nippon Express Perform operations Appointment Supervise Board of Directors Board of Executive Ofﬁcers President Audit Audit of executive officers with the goal of ensuring rapid execu rapid ensuring of goal the with officers executive of 14 had we 2011, 31, March of As operations. of tion also acted as (13 of who executive 29 and officers directors In addition, meetings our auditors directors). attend board and other important key review conferences, documents, visit our main facilities for audits, perform at reviews board the of meetings at results all report and subsidiaries, of board The directors. of board the and auditors of operates that institution supervisory a as functions auditors we 2011, 31, March of As view. of point objective an from outside auditors). of who were had four auditors (three meeting. of directors at a board Basic the Exchange, Stock Tokyo the at Regulations Listing of the Securities revision with a partial In accordance adopted was Forces Antisocial of Exclusion the for Policy April in meeting Directors of Board the at instituted and to regulation a for need the to response a providing 2008, in our the intervention corporate of antisocial forces prevent activities. Enforcement Division (Headquarters divisions, Headquarters departments, regional administration [domestic/overseas], each business division, each branch ofﬁce, each group company) removal Appointment and Report Audit Board of auditors General shareholders’ meeting Audit Division Compliance Committee Report Findings Crisis Management Committee

removal

Appointment and Audit of accounts

Accounting auditor Corporate attorney

Corporate GovernanceCorporate Structure Creating a Internal System Creating Control Our Thinking on Corporate GovernanceOur Thinking on Corporate We, the Nippon Express Group, believe that high standards of corporate governance, transpar corporate compliance, of standards high that believe Group, Express Nippon the We,

ency and risk management create an important foundation for responsible business practice. We aim to business practice. We an important foundation for responsible ency and risk management create management speedy of realization “the of policy fundamental our to according acting by business conduct - strength while responsibility,” of division clear a of establishment “the and making” decision quick through trust. ening stakeholder Corporate GovernanceCorporate

Nippon Express strives for transparent and efficient business management as we establish a corporate governance structure. Corporate GovernanceCorporate Structure In order to conduct business fairly and efficiently, it is is it efficiently, and fairly business conduct to In order important to implement firm internal control systems. Nippon Express has created effective control systems, including a compliance system, a risk management system, an internal audit business operations in all companies. Group In addition, system and a system 2006, May in Law Corporate the of enactment the with to assure fair Nippon adopted Express and instituted the Basic Policy System Internal an Control of Establishment the to Relating Nippon Express’ fundamental Nippon with thinking Express’ corpo- related management speedy of governance rate realization “the is of a quick decision making” and “the establishment through clear division since Specifically, of June responsibility.” from reduced was members board the of number the 2001 Furthermore, less. or members 15 to less or members 25 this All year. one to years two from shortened was term the decision up speeded and board the revitalizing in resulted making. Attempts were made to clarify each directors’ year. for each business management responsibilities board a introduced has Company the time, same the At Creating a Internal System Creating Control Our Thinking on Corporate GovernanceOur Thinking on Corporate

Corporate Governance Organization Chart Corporate GovernanceCorporate Environmental Initiatives Safety Initiatives Together with Our Customers Together with Our Partners Together with Our Employees Together with Society Corporate Governance 55 - - Business Fundamental New Strains of Continuity Plan: Influenza Edition Nippon Express CSR Report 2011 Nippon Express Edition Business Fundamental System Failure Continuity Plan : Continuity Plan : Domestic Edition Fundamental Business Edition Business Fundamental Crisis Management Code Local Disaster Continuity Plan: Edition, Local Disaster Edition, System Failure Edition Widespread Disaster Edition, New Strains of Influenza Specific Plans and Precautionary Measures Documents: Business Subsidiary Edition Widespread Fundamental Fundamental Business Continuity Plan: Disaster Edition Continuity Plan: Overseas Organizational ChartOrganizational for Business Continuity System Documents situations as well. In response, we developed BCM (Business (Business BCM developed we response, In well. as situations Continuity Management) as well as a BCP (Business Continu- in 2009. ity Plan) specifically for Nippon Express their and employees of lives and health the place to continue The companies will of the Group Nippon Express families first when responding to states of emergencies caused by natural disasters, industrial disasters and man-made disasters. In addition to accomplishing the level of us sought as social from both responsibility a designated a and Law Basic Measures Disaster the under agency public we hope maintainer to the of ensure social functionality, In possible. as much as practices business our of continuity immedi- the in efforts restoration conduct to able be to order to initiatives implement will we disaster, a of wake ate capability first and advance responder preparation, promote based on our BCP. activity readiness recovery ters regarding the state of disasters, as well as a system for for system a as well as disasters, of state the regarding ters branches. sharing information between or failures power we networks, telephone other or phone mobile in disruptions to respond to us enable to Moreover, related in them installed and phones satellite introduced have divisions at headquarters and major branches. hygienic emergency of stock our increasing in progress made against influenza, we have as a counter-measure Finally, the to response In goggles. and gloves masks, as such items, in April 2009, we provided new strain of influenza that emerged or staff infected force to measures took and masks with staff work. from whose family had been infected to stay home staff warning reporting system between all branches and headquar and branches all between system warning reporting establishes criteria for determining whether a report is required required is report a whether determining for criteria establishes an of case the in example, (for occurs disaster a when seismic Japanese the on above or four registering earthquake Management System established scale). Utilizing the Disaster early an provide procedures reporting these intranet, our on

BCM Basic Policy

1. Priority of human life and safety Whether faced with widespread disaster, new strains of influenza, conflagration, failure terrorism, or any other system the risk, company will place the lives and safety of its as employees, well as their above all else. family and relatives, 2. Contribution to society Even in times of emergency, the company will work to achieve as local authorities whether by the federal authorities, when assistance is requested of us, Also, much possible. of its social mission as is of our ability and contribute to the good of society. we will respond to the best or the local community, on customers 3. Minimization of effects In times of emergency, in time when our business continuity operations of are all hindered of or those operations in is cases in when jeopardy, the company the will previously continue established to priority operate operations under for sustained the place continuity, top priority on recovery and strive to minimize the effects of these issues on the customer. compliance with laws and regulations 4. Thorough Even in the times company of will emergency, adhere to all relevant regulations laws, and ordinances when conducting business. in times of normal business operations 5. Disaster preparation the of members the between cooperation build will company the operation, business normal of times In promoting by accidents other and disasters of occurrence the against protect to Group Express Nippon necessarytraining conducting carefully by and supplies hygienic and rations food emergency of stocks drills while working to secure the resources necessary for business continuity. Crisis Management System Management Crisis About Business Continuity (BCP) About Business Continuity Creating a Crisis Management System a Crisis Creating

Nippon Express is actively involved in building a highly robust Crisis Management System preparing us to handle situa- handle to us preparing System Management Crisis robust highly a building in involved actively is Express Nippon emergency. kind of disaster or tions in any Crisis Management System Management Crisis In addition to the risk posed by the occurrence of natural natural of occurrence the by posed risk the to addition In earthquakes and typhoons, we are disasters such as large new of spread the from threat reemerging a facing now also strains of influenza. plans make and measures society necessary take we that demands temporary, only are risks these of some if Even recover to able are we that so action and preparation both for transportation a as obligations primary our fulfill and quickly company. Nippon has Express been Basic providing Measures Law, As a designated public agency under the Disaster support when natural disasters occur. of number large a and systematic asking us to develop comprehensive received requests have we years, recent In in business its continuing of capable company a as initiatives but in other challenging not only times of emergency, Nippon Nippon Express has created a crisis management system Code, the Natural Disaster based on the Crisis Management Management Code and the Management Code for New Strains of Influenza. Steps also are being taken against disaster widespread and new strains of influenza, risks to risks. terror-related information systems and Disaster on Act Basic the under Control agency public designated a As Measures, Nippon Express provides transportation emergency in accordance with requests from the national and prefectural governments for large-scale earthquake disasters such as the Hanshin-Awaji (Kobe) Earthquake and the Niigata Prefecture Chuetsu-oki East concerning Great details the for 58 page (see Earthquake Japan Earthquake). adopted in October 2001, Regulations were Disaster Measures Concerning natural disasters, the Nippon Group Express through which we are strengthening our cooperative effort within the Group. Our Reporting for Procedures Disasters About Business Continuity (BCP) About Business Continuity Creating a Crisis Management System a Crisis Creating Environmental Initiatives Safety Initiatives Together with Our Customers Together with Our Partners Together with Our Employees Together with Society Corporate Governance 56 ) guidance Planning, education, Promotion Group Nippon Express CSR Report 2011 Nippon Express Compliance Headquarters Compliance Committee Department or branch manager Department or branch coordinator Personal data protection promotion officer Personal Personal Data Promotion Group Protection Headquarters Personal (Personal Data Protection Division manager)(Personal (Meetings held when there are especially serious incidents or accidents) Compliance administrator Compliance promotion officer Regional managing branches, branches (in-house reception office) reception (in-house Reception and inspection of whistle-blowing and consultation Headquarters and branches Compliance Division Compliance Committee Personal data handling of cer Personal data handling coordinator (Director in Charge of Personal Data Protection Division) (Director in Charge of Personal Conformity Assessment Scheme for InformationAssessment Scheme Security Management System Conformity (Responsible for Personal Data Protection Division) (Responsible for Personal (Coordinators in Headquarters divisions and assistant business divisions; section managers, managers or assigned managers) of corporation lawyers) Division general managers, etc. 4. 4. Advisors: etc. corporation lawyers,accountants, tax certified public accountants, 2. Co-chairperson:2. Division) executive of charge (in vice president Compliance the Compliance co-chairperson), (excluding presidents executive vice Members: 3. 1. Chairperson:1. president and consultation (reception office (reception consultation and Nippon Express, Nittsu Shoji, Nittsu Capital, Careerroad, Nittsu Shoji, Nittsu Capital, Careerroad, Nippon Express, Ryutsu Service, NEXDG Nittsu Tokyo Nago E-Technology, Institute and Consulting Nittsu Research Nippon Express, Nippon Express Tokyo Airport Branch Information Information Branch Airport Tokyo Express Nippon Express, Nippon System Center, Branch, Service Office Tokyo Nippon Express Nittsu Information System External reception of whistle-blowing Audit Division ■Privacy marks ■TRUSTe ■ISMS ( Audit Regional General In-house Review Team Ongoing education utilizing DVDs and e-learning is offered e-learning and DVDs utilizing offered education is Ongoing about information make to attempt an in employees all to the company. better known within personal data protection data. of personal to the protection certifications related various has also received Group The Nippon Express (Managers of Headquarters divisions and business divisions) Department President Personal data - management coordinator Personal data manager Executive vice president (Managers of regional managing branches and branches) (Coordinators in regional managing branches and branches; section managers or assistant managers) Personal data general manager Headquarters Personal data manager Personal data managementPersonal coordinator (Audit Division manager) Regional managing branches, branches Revised October 26, 2007 (Adopted April 1, 2005) Auditing of cer

Division auditors Headquarters Audit

Personal data protection and management system Personal data protection Personal data use and handling system Regional General Audit Division

CSR Of cers personal data protection policy personal data protection protecting personal data protecting 5. Respond to complaints and counselling requests Continuing 6. improvement of programme for compliance with 1. for individuals’ personal data Respect 2. system data protection Personal 3. management of personal data Secured Compliance with laws 4. and other regulations pertaining to Personal Data Protection Policy (Items) Personal Data Protection Compliance Initiatives Compliance Personal Data Protection and Management System Personal Data Protection Compliance Management Promotion System Management Promotion Compliance (Ofﬁcers assigned to each regional bloc and business division; also promote protection and management of personal data)

Nippon Express adheres to the rules as set adheres the forth Conduct Nippon in Charter Express the Nippon (revised Nippon Express Express corpo- good a as activities business conduct to continue to intention its declares 2011), April in Charter Conduct Group compliance. for thorough and strives responsibility sense of social with a strong rate citizen Compliance Initiatives Compliance - Protec Data Personal the of establishment the with Along estab also Express Nippon 2005, February in Division tion lished the Personal Data Policy Protection and Personal Data Protection Code—exemplifying Nippon Express’s commitment to personal data protection management. Stressing Stressing the importance of compliance management, June in Division Compliance the established Express Nippon - Regula Compliance year, same the of October in Also, 2003. a of establishment the with along and, created, were tions Compliance Committee chaired by the company president and an internal whistle-blower system (Nittsu Speak-up), and honest encourage to undertaken were measures several fair company activities. - comprehen nationwide a which during Month,” “Compliance In fiscal 2010, Nippon Express declared November educa- employee related and adherence legal of review sive leading up to Compli- tion was undertaken. In September, manage- executive to spoke external a Month, lecturer ance answer session. ment about CSR, followed by a question and companies in Japan and distributed in overseas Group to Also, power harassment prevention pamphlets were compliance awareness. underscore Personal Data Protection and Management System Personal Data Protection Compliance Management Promotion System Management Promotion Compliance Organizational Chart for Business Continuity System Documents Documents System Continuity Business for Chart Organizational Third-party Evaluation

As the tides of the world economy shift acutely from we did revise what is now the Nippon Express Group predominantly Western G8 nations to an axis of developing Conduct Charter, demonstrating an example of CSR initia- countries, logistics is also on the move to the Asia Pacific tives for the Group as a whole. The company now needs an region. Since its founding, the Nippon Express Group has organization to promote CSR policies and goals as a united bolstered Japan’s logistics expansion, as it continues to do group while coordinating existing activities. now, accompanying Japanese businesses overseas with Similarly, the Nippon Express Group needs to demon- expanded infrastructures featuring logistics centres dotting strate such policies and seek cooperation from the suppliers the globe. responsible for part of the Nippon Express Group supply While pursuing its own growth as a global logistics chain. company, the Nippon Express Group acknowledges certain social responsibilities attending participation on the interna- 4. Stakeholder engagement tional stage, including vital interaction with its widening Unfortunately, the Nippon Express Group has not yet to periphery of stakeholders. The following four necessary establish opportunities for communication with its courses of action come to mind: stakeholders. The company urgently needs a system that facilitates direct contact with stakeholders, incorporating 1. Formulate a midrange CSR strategy stakeholders’ opinions into management level decision- As a global logistics company, the Nippon Express Group making. The company must recognize that business activities needs to identify and report targeted CSR activities in are evaluated not only by internal management, but by specific areas, along with resulting successes, as a part of our various stakeholders, including shareholders. Hereafter, I social responsibility, emphasizing our concern for the various hope to see elevated engagement with various stakeholders, CSR issues affecting the world on a day-to-day basis. By resulting in enhanced relationships. formulating a midrange plan and goals that can be verified by the stakeholders themselves, the company can further The above four points are not beyond reach. In fact, most heighten the trust it earns from society. globally expanding logistics companies already implement these as CSR foci. As the proportion of international 2. Expand business-related CSR activities business increases, the focus of various stakeholders, includ- The Nippon Express Group has undertaken a wide range of ing international NGOs and CSR evaluation organizations, social action programs. I believe the company should now on the Nippon Express Group will only grow sharper. I focus on CSR activities more directly related to existing welcome inspiring enhancements to CSR activities within business areas. Numerous roles await a global logistics the Nippon Express Group. company, as international organizations and NGOs search for collaborators. I would like to see the Nippon Express Hiroshi Ishida Group proactively expand their global social action programs Executive Director, in cooperation with such organizations. Caux Round Table-Japan Assistant Professor, Institute of Business and Accounting, 3. Strengthen partner relationships Professional Graduate School, The Nippon Express Group comprises myriad group compa- Kwansei Gakuin University nies. Although the 2010 CSR report covers the Nippon Express Group CSR Council, a joint meeting of all group companies, and activities undertaken by group companies, I sensed that efforts have not yet reached a level of systematic policies, goals and directions shared group-wide. However,

Nippon Express CSR Report 2011 57 Responding to the Great East Japan Earthquake

—Shipping Emergency Relief Supplies and Other Provisions (As of March 31, 2011)

On March 11, 2011, at 2:46pm JST, a magnitude 9.0 earthquake struck the Sanriku coastline in Japan’s Tohoku region. The earthquake shook an expansive area, extending south from Tohoku to the entire Tokyo/Kanto region, while unleashing a destructive tsunami which hit Japan’s northeast Pacific coastline minutes after the earthquake. Although Nippon Express Group locations along the coast suffered extensive earthquake and tsunami damage, Nippon Express quickly established a Disaster Response Headquarters at its corporate base in Tokyo for immediate response to the unprecedented Great East Japan Earthquake with emergency transport of relief goods. Truck driving along the Tohoku Expressway

Establishing Disaster Control Management Headquarters

As a designated public agency under the Basic Act on response to requests from Disaster Control Measures, Nippon Express established the national and prefec- the Disaster Response Headquarters immediately after tural governments (see the earthquake occurred on March 11. page 55 for details While participating in a 24-hour system for the concerning the Crisis acceptance and delivery of emergency relief supplies and Management System). other provisions, all branches throughout Japan were linked in a support network to provide immediate Truck carrying medical supplies

Transporting Various Relief Supplies From All Over Japan

In response to requests from the national and prefectural ments, towels, masks, personal heat packs, flashlights, governments, the Nippon Express Group delivered a candles, portable toilets, basic walkie-talkies, power- wide range of emergency relief supplies to collection supply cars and power generators. centres set up Emergency transport efforts had to overcome numer- throughout the ous hurdles, including aftershocks, severed road Tohoku region. networks and fuel shortages. In addition, the Tohoku Relief supplies Expressway, the main route to the Tohoku area, was including every- plagued by extensive road surface damage, requiring thing from daily extremely cautious driving. necessities— As the severity of the damage became clear, food, drinking transport demands on the Nippon Express Group accel- water and toilet erated. By March 31, we had 4,170 delivery vehicles paper—to blan- marshalled to transport relief supplies at the request of kets and bed- the national and prefectural governments and other Loading relief supplies onto Japan Self-Defence Force trucks ding, undergar- organizations.

Transport Support by Land, Sea and Air

The delivery of relief supplies was not covered by trucks the earthquake, alone—every available method, be it land, sea, or air the Nippon Ex- transportation, was deployed to meet demands. On press Group March 29, Himawari 1, a ship regularly operating be- began temporary tween Tokyo and Hokkaido (Tomakomai–Kushiro route), delivery services made a temporary call at Sendai Port to deliver relief from March 25, supplies, including 30 containers, five chassis,* and four delivering cargo forklifts. The containers and other transport equipment for JR Freight on were collected from the Nippon Express Group’s marine double-container Loading cargo onto Himawari 1 transport branches across Japan. In addition, as some trailers and domestic marine vessels. railway tracks to the Tohoku region has been severed in *Chassis: wheeled platform for loading containers

Nippon Express CSR Report 2011 58 List of Consolidated Companies: 250 Companies (as of March 2010)

Domestic Nippon Truck Co., Ltd. Tokushima Express BingoExpress Co., Ltd. Nippon Shipping Co., Ltd. MC Nittsu China Holdings Co., Ltd. Hokuoh Transportation Inc. Kita-Nihon Kaiun Co., Ltd. Tsutai Warehouse Co., Ltd. Touhoku Truck Co., Ltd. Shiogamako Unso Co., Ltd. Sendai Port Silo Co., Ltd. Nipponkai Warehouse Co., Ltd. Niigata Chuo Unso Co., Ltd. Nittsu Nagoya Seitetsu Sagyo Co., Ltd. Osaka Warehouse Co., Ltd. Sakaiminato Kairiku Unso Co., Ltd. Nagasaki Kowan Unyu Co., Ltd. Hakodate Air Service Co., Ltd. Nippon Courier Service Co., Ltd. NTS Co., Ltd. Shanghai Super Express Co., Ltd. Kato Transport Co., Ltd. Nittora Logistics Service Co., Ltd. Nittsu Sapporo Unyu Co., Ltd. Nittsu Sapporo Logistics Service Co., Ltd. Nittsu Sapporo Market Freight Handling Service Co., Ltd. Nittsu Otaru Unyu Co., Ltd. Nittsu Muroran Unyu Co., Ltd. Nittsu Hakodate Unyu Co., Ltd. Nittsu Asahikawa Unyu Co., Ltd. Nittsu Soya Nonyu Service Co., Ltd. Kitami Nittsu Unyu Co., Ltd. Nittsu Kushiro Unyu Co., Ltd. Nittsu Obihiro Unyu Co., Ltd. Hiroo Kaiun Cargo Handling Co., Ltd. Nittsu Obihiro Ryutsu Co., Ltd. Koun Yuso Co., Ltd. Koun Butsuryu Co., Ltd. Sendai Nittsu Unyu Co., Ltd. Nittsu Sennan Unyu Co., Ltd. Nittsu Soma-ko Unyu Co., Ltd. Nittsu Senhoku Unyu Co., Ltd. Nittsu Kesennuma Unso Co., Ltd. Nittsu Sendai-ko Butsuryu Co., Ltd. Aomori Koun Co., Ltd. Nittsu Hirosaki Unyu Co., Ltd. Nittsu Hachinohe Unyu Co., Ltd. Nittsu Iwate Unyu Co., Ltd. Nittsu Minami-Iwate Unyu Co., Ltd. Nittsu Akita Unyu Co., Ltd. Nittsu Akita Butsuryu Co., Ltd. Nittsu Yokote Unyu Nittsu Odate Unyu Co., Ltd. Nittsu Yamagata Unyu Co., Ltd. Nittsu Nagai Unyu Co., Ltd. Nittsu Shonai Unyu Co., Ltd. Nittsu Sakata Butsuryu Co., Ltd. Nittsu Koriyama Unyu Co., Ltd. Nittsu Fukushima Unyu Co., Ltd. Nittsu Aizu Unyu Co., Ltd. Nittsu Gunma Unyu Co., Ltd. Nittsu Maebashi Unyu Co., Ltd. Nittsu Ota Unyu Co., Ltd. Nittsu Utsunomiya Unyu Co., Ltd. Nittsu Takada Unyu Co., Ltd. Niigata Nittsu Unyu Co., Ltd. Sanjo Nittsu Unyu Co., Ltd. Nittsu Ojiya Unyu Co., Ltd. Nittsu Nagano Unyu Co., Ltd. Shinano Truck Co., Ltd. Nittsu Matsumoto Butsuryu Co., Ltd. Nittsu Suwa Butsuryu Co., Ltd. Nittsu Suwa Unyu Co., Ltd. Nittsu Ina Unyu Co., Ltd. Nittsu Tokyo Unyu Co., Ltd. Nittsu Tokyo Haiso Co., Ltd. Nittsu Fluid Transport Co., Ltd. Nittsu Tokyo Ryutsu Service Co., Ltd. Nittsu Consumer Service Co., Ltd. Nittsu Removal Service Co., Ltd. Nittsu Sumidagawa Unyu Co., Ltd. Nittsu Kanda Chuo Unyu Co., Ltd. Nittsu Tokyo-nishi Unyu Co., Ltd. Nittsu Tokyo Security Co., Ltd. Nittsu Yamanashi Unso Co., Ltd. Ryoso Tsuun Co., Ltd Nittsu Chiba-minami Ryutsu Service Co., Ltd. Nittsu Chiba Freight Transport Co., Ltd. Nittsu Funabashi Unyu Co., Ltd. Nittsu Sakura Unyu Co., Ltd. Nittsu Saitama Unyu Co., Ltd. Nittsu Kogoshi Unyu Co., Ltd. Nittsu Kashima Unso Co., Ltd. Nittsu Ibaraki Unyu Co., Ltd. Nittsu Tsukuba Unyu Co., Ltd. Chikutetsu Unyu Co., Ltd. Nittsu Yokohama Unyu Co., Ltd. Nittsu Shonan Butsuryu Co., Ltd. Nittsu Kawasaki Unyu Co., Ltd. Nittsu Shizuoka-chubu Unyu Co., Ltd. Nittsu Shizuoka-tobu Unyu Co., Ltd. Nittsu Hamamatsu Unyu Co., Ltd. Nittsu Nagoya Unyu Co., Ltd. Chita Tsuun Co., Ltd. Nittsu Nagoya-kita Unyu Co., Ltd. Nittsu Higashi-Aichi Unyu Co., Ltd. Nittsu Mikawa Unyu Co., Ltd. Nittsu Tsu Unyu Co., Ltd. Nittsu Yamamori Butsuryu Co., Ltd. Nittsu Mie Automobile Transport Co., Ltd. Nittsu Gifu Unyu Co., Ltd. Nittsu Tajimi Unyu Co., Ltd. Ishikawa Nittsu Unyu Co., Ltd. Nittsu Komatsu Unyu Co., Ltd. Nittsu Toyama Unyu Co., Ltd. Toyama Nittsu Automobile Co., Ltd. Nittsu Takaoka Unyu Co., Ltd. Nittsu Kurobe Unyu Co., Ltd. Fukui Nittsu Unyu Co., Ltd. Daiso Logi-Tech Co., Ltd. Nittsu Osaka Unyu Co., Ltd. Nittsu Osaka Ryutsu Service Co., Ltd. Nittsu Osaka Logistics Co., Ltd . Nittsu Nara Unyu Co., Ltd. Nittsu Osaka Terminal Unyu Co., Ltd. Nittsu Hyogo Unyu Co., Ltd. Nittsu Hikami Unyu Co., Ltd. Nittsu Kobe Unyu Co., Ltd. Nittsu Maizuru Unyu Co., Ltd. Nittsu Kyoto Unyu Co., Ltd. Nittsu Shiga Unyu Co., Ltd. Nittsu Wakayama Unyu Co., Ltd. Nisshin Kaiun Co., Ltd. Nittsu Kagawa Unyu Co., Ltd. Nittsu Takamatsu Logistics Service Co., Ltd. Nittsu Nishi-Kagawa Unyu Co., Ltd. Nittsu Kochi Unyu Co., Ltd. Nittsu Shikoku Unyu Co., Ltd. Nittsu Ehime Unyu Co., Ltd. Bintsu Butsuryu Co., Ltd. Sakaiminato Butsuryu Co., Ltd. Nihon-kai Port Service Co., Ltd. Nittsu Fukuyama Tekko Unyu Co., Ltd. Iwakuni Nittsu Unyu Co., Ltd. Nittsu Hiroshima Ryutsu Service Co., Ltd. Nittsu Matsue Unyu Co., Ltd. Mitsuwa Transportation Co., Ltd. Nittsu Yonago Unyu Co., Ltd. Nittsu Mizushima Unyu Co., Ltd. Nittsu Okayama Unyu Co., Ltd. Nittsu Shimonoseki Unyu Co., Ltd. Nittsu Hofu Unyu Co., Ltd. Nittsu Ube Unyu Co., Ltd. Nittsu Tokuyama Unyu Co., Ltd. Nittsu Fukuoka Truck Co., Ltd. Fukuoka Himawari Unso Co., Ltd. Nittsu Yahata Sagyo Co., Ltd. Nittsu Kurume Yuso Co., Ltd. Nittsu Kita-Kyushu Unyu Co., Ltd. Oita Unyu Co., Ltd. Nittsu Oita Truck Co., Ltd. Nittsu Kumamoto Unyu Co., Ltd. Nittsu Kumamoto Truck Co., Ltd. Nittsu Nagasaki Unyu Co., Ltd. Nittsu Miyazaki Unyu Co., Ltd. Nittsu Kagoshima Unyu Co., Ltd. Kyouritsu Air Transport Co., Ltd. Tokyo Air Cargo Service Co., Ltd. Narita Air Cargo Service Co., Ltd. Nittsu Haneda Grand Service Co., Ltd. Chubu Air Cargo Service Co., Ltd. Kanku Transport Service Co., Ltd. Logistics System Transport Co., Ltd. Nittsu Kaiun Drayage Co., Ltd. Nittsu Meiko Unyu Co., Ltd. Nittsu Shoji Co., Ltd. Taiyo Nissan Auto Sales Co., Ltd. Nittsukicoh Co., Ltd. Koun Shoji Co., Ltd. Nittsu Real Estate Co., Ltd. Nittsu Estate Service Co., Ltd. Nittsu Kansai Enterprise Co., Ltd. Nittsu Fukuoka Security Service Co., Ltd. Nittsu Research Institute and Consulting, Inc. Nittsu Information Systems Co., Ltd. Nippon Express Capital Co., Ltd Nittsu Driving School Co., Ltd. Careerroad Co., Ltd . Nittsu Heartful Co., Ltd. Gunma Ryutsu Service Co., Ltd. Nittsu Ofﬁce Facilities Co., Ltd. Nittsu Hokuriku Sogo Maintenance Co., Ltd. Nago e-technology Co., Ltd. NEXDG Co., Ltd.

Overseas Nippon Express U.S.A. Inc. Nippon Express Travel USA, Inc. Nippon Express U.S.A. (Illinois), Inc. Nittsu New York, Inc. NEX Transport, Inc. Nippon Express Global Logistics, Inc. Nippon Express Canada, Ltd. Nippon Express de Mexico S.A. de C.V. NEX Global Logistics de Mexico, S.A. de C.V. Nittsu do Brasil Comercial, Ltda. Nippon Express do Brasil Nippon Express (Nederland) B.V. Nippon Express Euro Cargo B.V. Nippon Express (U.K.) Ltd. Nippon Express (Ireland) Ltd. Nippon Express (Deutschland) GmbH Nippon Express (Russia) Limited Liability Company Nippon Express (Belgium) N.V./S.A. Nippon Express France, S.A. Nippon Express (Italia) S.R.L. Nippon Express (Schweiz) AG Nippon Express de Espana, S.A. Nippon Express Portugal S.A. Nippon Express (Middle East) L.L.C. Nippon Express (Istanbul) Global Logistics A.S. Nippon Express (Singapore) Pte., Ltd. Nippon Express (H.K.) Co., Ltd. Nippon Express (Shenzhen) Co., Ltd. Nippon Express (Zhuhai) Co., Ltd. Nippon Express Cargo Service (Shenzhen) Co., Ltd. Nippon Express (Zhuhai F.T.Z.) Co., Ltd. Nippon Express (Xiamen) Co., Ltd. Nippon Express (Suzhou) Co., Ltd. Nippon Express (Jiaxing) Co., Ltd. Nippon Express Global Logistics (Shanghai) Co., Ltd. Shanghai Nittsu Puling Logistics Co., Ltd. Nippon Express (South China) Co., Ltd. Nippon Express (Taiwan) Co., Ltd. Beacon International Express Corp. NEX Global Logistics Korea Co., Ltd. NEX Logistics (Thailand) Co., Ltd. Nippon Express (Thailand) Co., Ltd. Nippon Express Engineering (Thailand) Co., Ltd. NEX Logistics (Malaysia) Co., Ltd. Nippon Express (Malaysia) Sdn, Bhd. Nittsu Transport Service (M) Sdn, Bhd. Nippon Express (Philippines) Corporation Nep Logistics, Inc PT. Nippon Express Indonesia PT. Nittsu Lemo Indonesia Logistik Nippon Express (India) Pte., Ltd. Nippon Express (Australia) Pty., Ltd. Nippon Express (New Zealand) Ltd. Nippon Express (China) Co., Ltd. NEX Logistics Europe GmbH Shanghai e-Technology Co., Ltd.

Nippon Express Company Pro le (as of March 31, 2011)

Name: Nippon Express Co., Ltd. Name of representative: Masanori Kawai, President Founded: 1872, as Riku-un Moto Kaisha Paid-in capital: ¥70,175.27 million (Land Transportation Company) Number of shareholders: 85,765 Established: October 1, 1937 Number of employees: 36,746 Headquarters: 1-9-3 Higashi-Shimbashi, Minato-ku, Number of commercial freight transport vehicles: 15,165 Tokyo 105-8322, Japan

Editors’ Note

We sincerely thank you for taking the time to read the full-page version of introduce Nippon Express Group CSR activities in a 16-page printed our CSR Report 2011. From this fiscal year on we will post the full-page digest version of the CSR Report 2011. Although the concurrent produc- version in PDF format on the Nippon Express website, replacing the tion of both digest and full-page versions required more time and effort conventional printed version. We have also increased the number of than expected, we feel assured that this new endeavor has resulted in pages in an effort to maximize description of Group company activities, heightened satisfaction for our readers. We plan to expand and improve both in Japan and overseas. on the functions and contents of both the digest and full-page versions in To reach an even wider audience through various formats, we also the foreseeable future.

Issued by CSR Report Editorial Committee (Secretariat: Environment & Social Contributions Division) Nippon Express Co., Ltd. 1-9-3 Higashi-Shimbashi, Minato-ku, Tokyo 105-8322, Japan Phone: +81-3-6251-1418 Fax: +81-3-6251-6668 URL: http://www.nittsu.co.jp/

For making comments and sharing your opinions, please visit the “Contact Us” CSR Report Editorial Committee section of the Nippon Express website mentioned above. About the Cover Illustrations Scene of Steam Locomotive at the Yokohama Harbour Created: around 1874 Artist: Hiroshige Utagawa III Museum of Logistics Collection

As the Edo period (1603–1867) ended, Japan opened its country and ports to the world, and became integrated into the global market. Yokohama, a mere fishing village at the time, became a main port, thus assuming an important role. Soon after, in 1870, the Meiji government began work on the Tokyo-Yokohama Railway, and provisional service between Shinagawa and Yokohama (now Sakuragicho Station) was initiated on June 12, 1872, followed by the official opening ceremony of rail service between Shimbashi (Shiodome) and Yokohama held on October 14 at Shimbashi Station. Cargo service started the following year on September 15, with the freight train making two round trips daily. Until then, the Tokyo-Yokohama journey had taken eight to 10 hours on foot or three to four hours by horse and carriage; the approximately 29-kilometre trip between Shimbashi and Yokohama took a mere 53 minutes by rail. With this abbreviation of time and distance, modern transport methods joined Tokyo and Yokohama with the world. Behind the smoke-bellowing steam locomotive pulling a passenger coach, the painting depicts steamships and western-style sailing vessels moored in the port of Yokohama, bezaisen boat (classical Japanese large transport craft), sedoribune boats with their sails set, serving as barges to carry cargo from ships positioned farther out at sea, and even foreigners gazing out at the harbour. Rather than reproducing an actual scene, this painting seems to evoke images representing the new age of Yokohama and the railway. One could say this work of art is a cutaway of scenes from a new era, in which modern Japan ascends the world stage for the very first time.

Issued by (direct inquires to) CSR Report Editorial Committee (Secretariat: Environment & Social Contributions Division) Nippon Express Co., Ltd. 1-9-3 Higashi-Shimbashi, Minato-ku, Tokyo 105-8322, Japan Phone: +81-3-6251-1418 Fax: +81-3-6251-6668 URL: http://www.nittsu.co.jp/

Published September 2011 Next report scheduled for September 2012