ESG Initiatives Corporate Social Responsibility (CSR) Corporate Social Responsibility (CSR) Given the meaning of CSR, corporate activities that focus only on compliance are incomplete. Indeed, companies today are required to go a step further and understand that they are members of society and must therefore give due consideration to social ethics, human rights, the global environment and local communities. Embracing this change in the social environment, the Yusen Logistics Group is tackling its CSR sincerely, determined to meet the expectations of shareholders while aiming to achieve sustainable development. Initiatives through Business Pursuit of Social Sustainability Engagement Diversity and Environment Inclusion Initiatives through Business Yusen Logistics Transports Baseball Equipment to Cambodia in Support of Saitama Seibu Lions' Baseball Promotion Yusen Logistics has transported baseball equipment to Cambodia free of Japan Cambodia charge, in support of an ongoing project to promote baseball internationally, by Japanese baseball team, the Saitama Seibu Lions. The Saitama Seibu Lions, based north of Tokyo in Tokorozawa, Saitama, initiated the project in 2013, which aims to promote baseball overseas by donating baseball equipment to countries. Throughout August and September 2015, the team collected baseball equipment at Seibu Lions Annual Report 2016 29 games from supporting fans and team members. Together with baseballs donated by the team itself, donations numbered 6,357 items in total. On September 26th, 2015, a ceremony was held at the team's home ball park, the Seibu Prince Dome, to mark the donation of the equipment to Cambodia. Hajime Igo, President, and Yoji Seki, Senior Managing Director of the Seibu Lions, formally entrusted the equipment to Lao Nguon Eng, Commercial Counselor of the Royal Embassy of Cambodia and Kenichi Kotoku, Director and Managing Executive Officer of Yusen Logistics. The baseball equipment was transported to Cambodia using Yusen Logistics Group's door-to-door service. The collected donations were cleared through export customs, before being shipped by sea from Tokyo to Cambodia in December 2015. In January 2016, the equipment passed import customs clearance in Cambodia, and was delivered to the Cambodia Baseball Federation on January 24. Yusen Logistics Transports Food to Poverty-stricken Areas of Cambodia Yusen Logistics has helped support the non-profit organization (NPO), Japan Cambodia Peoples' Hope Japan (PHJ) in their “Maternal and Child Health Improvement” project in poverty-stricken areas of Cambodia, by providing free transport of nutritional food into the country. Donated to the organization by Otsuka Pharmaceutical Co., Ltd., Yusen Logistics transported 4,800 nutritional bars, making an export arrangement in Japan and then forwarding the food by air from Narita Airport to Cambodia. After their arrival, Yusen Logistics (Cambodia) Co., Ltd. handled the import customs clearance and arranged the delivery, with the Yusen Logistics Group arranging a one-stop service in support of the NPO. PHJ works to support the improvement of health and medicine, focusing on the “education of health and medical care” within developing Asian countries. It provides continuing support and educational activities in the field of maternal and child health in particular. The food delivered has helped to aid health education within Cambodia's Kampong Cham Province. 30 Annual Report 2016 Social Engagement Yusen Logistics Develops Diversity by Employing a Top Athlete Japan In April 2016, Yusen Logistics employed swimmer Ayatsugu Hirai, who participates actively in international meets. This was the first time for us to recruit top athletes by using “Athnavi,” a Japanese Olympic Committee (JOC) project that supports employment of top athletes. Hirai is a 1,500-m freestyle swimmer who has achieved a number of excellent results in swimming competitions in Japan and overseas. His 1. Sporting event ambition and passion, with the aim of continuing to be the best in the world, 1,500-m freestyle swimmer matches the philosophy of the Yusen Logistics Group, which seeks to be a 2. Major achievements world-leading total logistics provider, and this led to his recruitment. 2013: 1st place, 1,500-m freestyle, National Swimming Championships 1st place, 1,500-m freestyle, Japan Open To ensure that Hirai can fulfill his potential in the pool, we create an 9th place, 1,500-m freestyle, FINA World Aquatics Championships environment in which he can give his utmost attention to swimming. 2014: Providing Group-wide support to a top athlete who aims to be the world's 2nd place, 1,500-m freestyle, Japan Open 10th place, 1,500-m freestyle, Pan Pacific Swimming Championships best is expected to foster a sense of unity within the organization and 2015: enhance all the staff's morale. 1st place, 1,500-m freestyle, National Swimming Championships 2nd place, 1,500-m freestyle, Japan Open 3rd place, 800-m freestyle, Universiade Yusen Logistics conducts the recruitment and development of human 1st place, 1,500-m freestyle, Universiade resources with diverse experience as part of our personnel strategy within 1st place, 1,500-m freestyle, Swimming World Cup our Medium-Term Business Plan. In the years to come, Yusen Logistics will take a positive approach to the employment of top athletes and work to boost corporate value through the recruitment of diverse human resources. Comment from Ayatsugu Hirai I am pleased to join Yusen Logistics, which aims to be a world leading total logistics provider that is a global top five company and number one market position in Asia, and to be afforded such a great environment in which to continue my swimming. Besides working to boost my competitive ability, I will do my best to learn from others and grow as an individual. I aim to take part in international games and hope to produce results that live up to the expectations of everyone who is supporting me. I will strive hard to make whatever contribution I can at work and in swimming. I am committed to practicing my sport everyday so that I get to stand on the podium for the 1,500-m freestyle races I enter. Annual Report 2016 31 Raising Funds for Patriot Service Dogs U.S.A. The Transportation Division in Yusen Logistics Americas hosted a fundraising event for Patriot Service Dogs Inc. in Jacksonville, Florida. The event raised a donation of $760 for Patriot Service Dogs, an organization dedicated to helping disabled military veterans gain a sense of independence through their partnership with a well-trained service dog. We chose Patriot Service Dogs to show thanks to those in our Yusen Logistics family who have served in the U.S. Armed Forces. A service dog is individually trained for a full two years to learn more than 80 commands—all to help those veterans with mobility impairments, loss of limbs and post-traumatic stress disorder (PTSD). Yusen Supports Transaid in Zambia U.K. In January 2016, Yusen Logistics UK's Louise Gunby travelled to Zambia with our charity partner, Transaid, to help improve road safety in sub-Saharan Africa. Transaid is an international transport development charity, dedicated to reducing poverty and improving livelihoods across the developing world through creating better transport solutions and infrastructure. Yusen Logistics is a big supporter of the charity, and has been a corporate member since September 2014. Louise Gunby, who is Operations Manager for the Leeds distribution center at Yusen Logistics UK, was seconded for three months to the Industrial Training Center (ITC) in Zambia, supporting the center in its aim to reduce traffic fatalities in sub- Saharan Africa through professional HGV (Heavy Goods Vehicle), PSV (Public Service Vehicle) and forklift truck training. Whilst on secondment, Louise was responsible for helping the ITC team standardise training materials, identify areas of improvement in the teaching, scheduling and planning of training activities and processing the project's data. The Road Safety Project Manager for Transaid said: “We're grateful to Yusen Logistics for donating their time and expertise to help us develop the project and further enhance the skills of those at the ITC.” 32 Annual Report 2016 Yusen Germany Support Children's Cancer Hospital Germany Yusen Logistics Germany has been sponsoring the Children's Cancer Hospital in Dusseldorf with a yearly donation since 2014. The donation is used to purchase medical equipment and supplies to enable better medical treatment for the children at the hospital. It has also been used to fund special projects such as the building of a new in-door playroom and activities including horse riding, trips to the zoo, theme park excursions and football matches. The Children's Cancer Hospital was founded in 2010 with the aim of supporting children and young people with cancer. The Hospital works hard to help patients throughout the course of their treatment – an often very difficult journey – and seeks to provide the best possible care and emotional support. As a company, we believe we have a social responsibility to support our communities – local and worldwide. By donating to the Children's Cancer Hospital we want to support the Foundation in all the incredible work it does – everyday – to provide the best quality of medical care and support to its patients. Donation to an Orphanage Malaysia During the fasting month of Ramadhan in 2015, the staff of TASCO Berhad (our consolidated company in Malaysia) contributed cash of slightly over RM4,000 and items for donation to the orphanage and poor children. The Company chipped in RM3,000 to the collection. On July 13, 2015, our staff and management visited the Rumah Anak Yatim AS-Solihin in Banting to distribute goodies bag and presented a check of RM4,500 to the orphanage home. Another check of RM2,023 from the collection was given to another orphanage Rumah Anak Yatim Kampung Kuantan. Environment Support of Forest Development Japan Since 2010, Yusen Logistics has taken part in a foster parent program for forest conservation in Nagano Prefecture.