Yamato Holdings Co., Ltd. · TSE:9064
Yamato — ESG Presentation (December 2022)
42 slides from Yamato's sustainability presentation, Dec 21, 2022
Slide 1: Briefing on “Sustainability (Environment)”
Briefing on “Sustainability (Environment)” December 21, 2022 Yamato Holdings Co., Ltd.
Slide 2: 1. Overview of “Sustainable Management”
1. Overview of “Sustainable Management”
Slide 3: Our aspiration
1．Our aspiration Sustainable corporate value enhancement, through Yamato’s “Contribution to realizing a rich and prosperous society” Management Philosophy Yamato helps enrich our society by enhancing our social infrastructure, creating more convenient services for evolving lifestyles and industries,
Slide 4: Change in the business environment
2．Change in the business environment Drastic and sudden changes in the environment surrounding Yamato’s business Diversification of customer needs Rapid growth of EC market Declining population & decaying regional infrastructure Decline of working population Climate change and resource scarcity Copy
Slide 5: Yamato Group’s materiality
3．Yamato Group’s materiality Based on risks and opportunities in our business, Yamato has identified its material issues which will contribute to establishing a sustainable society and enhancing Yamato Group’s corporate value Step 1 Step2 Step3 Refine Choices for Hold Stakeholder Identify Material I
Slide 6: Management embedded with sustainability
4．Management embedded with sustainability Yamato has, in its “YAMATO NEXT100” grand design for mid-to-long term management, outlined the environmental and social vision, and declared its goal of achieving climate neutrality in 2050 〜 Yamato embedded “Environment” and “Society” in its management plan
Slide 7: Organizational structure to promote sustainability
5．Organizational structure to promote sustainability Conduct “Yamato Group Environment Committee” and “Yamato Group Social Promotion Committee”, with President as Chairperson and Directors of Yamato Transport (Senior and Executive Officers, etc.) and Presidents of our major Group companies as member
Slide 8: Key initiatives related to sustainability
6． Key initiatives related to sustainability 2020 2021 2022 initiatives ●Set Environmental and Social Vision, as well as long-term targets General ●Set “Sustainable Medium-term Plans 2023” ●Deployment of EMS ●Announced mid-term target Environmental (Environment Management System) for GHG emission re
Slide 9: 2. Initiatives Based on the Recommendation of the TCFD
2. Initiatives Based on the Recommendation of the TCFD
Slide 10: Initiatives Based on the Recommendation of the TCFD
7．Initiatives Based on the Recommendation of the TCFD （１）Governance （２）Strategy Environmental management structure with the "Yamato Group Environment Yamato Transport’s risks Committee" as the decision-making and opportunities specified body, under the supervision of the as of today Board of Directo
Slide 11: Governance
8．Governance ■ Sustainability (Environment) Promotion Structure Yamato Holdings Board of Directors Yamato Group Environment Committee Yamato Group Social Promotion Committee Yamato Group Environment Subcommittee Yamato Group Social Subcommittee Yamato Transport Group Companies Environment Environmen
Slide 12: Strategy - Assessment of Risk Importance (Transition risk)
9．Strategy -Assessment of Risk Importance (Transition risk) Assumed time period: short term (up to 2023), medium term (up to 2030), and long term (after 2030) Level of importance: high (annual financial impact of over ¥10 billion), medium (between ¥1 billion and ¥10 billion), and low (less than ¥1 b
Slide 13: Strategy - Assessment of Risk Importance (Physical risk)
10．Strategy -Assessment of Risk Importance (Physical risk) Assumed time period: short term (up to 2023), medium term (up to 2030), and long term (after 2030) Level of importance: high (annual financial impact of over ¥10 billion), medium (between ¥1 billion and ¥10 billion), and low (less than ¥1 bi
Slide 14: Strategy - Evaluation of Business Impact and Countermeasures ①
11． Strategy -Evaluation of Business Impact and Direction of Countermeasures ➀ ■ Financial impact* due to introduction of a carbon tax *For Yamato Transport Evaluation of Business Impact Direction of Countermeasures • Implementation of measures to achieve targets for reducing GHG emissions by 2030 (
Slide 15: Strategy - Evaluation of Business Impact and Countermeasures ②
12． Strategy -Evaluation of Business Impact and Direction of Countermeasures ② ■ Financial impact* assessment regarding decreasing revenues and increasing repair costs for facilities and equipment due to abnormal weather and disasters *For Yamato Transport Evaluation of Business Impact Direction of
Slide 16: Risk Management／Indicators and Targets
13．Risk Management／Indicators and Targets ■ Risk Management Climate change-related initiatives for the entire Yamato Group ● Manage environmental issues and risks, including climate change, under Yamato Group Environment Committee and Yamato Group Environment Subcommittee ● Discuss and resolve impor
Slide 17: 3. Initiatives to make “Green Delivery” a reality
3. Initiatives to make “Green Delivery” a reality 〜Solving social issues through collaboration〜
Slide 18: Initiatives to achieve Green Delivery
14．Initiatives to achieve Green Delivery ＜Long-term Target＞ Achieve Climate neutrality in 2050 Virtually zero for Yamato’s own GHG emissions ＜Mid-term Target＞ 48% reduction in GHG emissions in 2030 (vs FY March 2021) ＜Focus initiatives＞ Reduce use of Introduction of Utilize renewable dry ice and EVs
Slide 19: Key initiatives towards 2030
15．Key initiatives towards 2030 Introduce 20,000 EVs Promote use of renewable energy （70% of electricity usage to come from renewable energy sources） Introduce 810 solar power generation (PV) facilities（On-site and off-site power generation） Integrate EV introduction and use of renewable energy (= s
Slide 20: Social issues related to Yamato’s initiatives
16．Social issues related to the Yamato’s initiatives Introduction of EVs and establishing charging infrastructure ・Usage and charging of commercial vehicles takes place at the same time Since both commercial vehicle use and solar power generation take place during the daytime, a way to “operate” a
Slide 21: Solutions for social issues
17．Solutions for social issues Develop new style of energy management to “Generate, store, transport and use” clean electricity, using cartridge-type batteries Cartridge batteries Standardization Transportation EVs Buildings Local community industry as a whole Usage of electricity ・Develop infrastru
Slide 22: Introduction & Operation of EVs to Realize Green Delivery
18．Introduction & Operation of EVs to Realize Green Delivery Demonstration Projects utilizing the Green Innovation Fund Period／Area FY March 31, 2023 to FY March 31, 2031 (Scheduled) ／Gunma Prefecture Optimization of EV Operations, Development of System to Standardize Charging Details of and Develop
Slide 23: Considerations to standardize and commercialize cartridge batteries
19．Considerations to standardize and commercialize cartridge batteries ■ Challenges in introducing commercial battery EVs (BEV) Longer charging time compared to filling gas and diesel vehicles Longer downtime in logistics (hours of non-operation vehicles and parcels), due to concentration of cha
Slide 24: Example of initiative to reduce dry ice usage
20．Example of initiative to reduce dry ice usage Introduce transportation material that does not use dry ice, thereby reducing GHG emissions, improving quality and optimizing costs ・ Introduced equipment and materials to allow ultra low temperature (minus 75℃ ) transportation of medicine ・ Jointly d
Slide 25: 4. Initiatives to provide value to corporate clients
4. Initiatives to provide value to corporate clients engaging in climate change
Slide 26: Value Provision for Corporate Clients
21． Value Provision for Corporate Clients Promoting comprehensive value provision on an “End To End” basis, from the upstream to downstream of corporate clients’ businesses, by positioning as opportunities the expansion of e-commerce in all industries as well as changes in the supply chain →contribu
Slide 27: Issues faced by clients in supply chain management (SCM)
22．Issues faced by clients in supply chain management (SCM) Risks heightening, with the globalization of clients’ supply chains → “Supply chain resilience” becoming ever more important in SCM ■ Risks related to supply chain resilience Natural risks Climate change, natural disasters, pandemics Politi
Slide 28: Supply chain optimization
23．Supply chain optimization ・Maintain and improve service level, while lowering total logistics cost → Contribute to reducing clients’ GHG emissions by avoiding waste in logistics and inventory ・At the same time, promote energy shift in transportation, simplify and reuse transportation and packagin
Slide 29: Example of initiative with client ① Nihon Michelin Tire
24. Example of initiative with client ① 【Nihon Michelin Tire】 As Lead Logistics Partner that achieves the sustainable growth of corporate clients, Yamato Transport is supporting supply chain innovation and optimization of logistics operation globally, contributing to better management for clients →B
Slide 30: Example of initiative with client ② Adastria
25. Example of initiative with client ② 【Adastria】 Yamato Transport signed logistics partnership contract, to make Adastria’s supply chain more sustainable →By reviewing the logistics and inventory operations in Adastria’s supply chain both in Japan and overseas, from the sourcing of raw materials t
Slide 31: Challenges in making clients’ GHG emissions more visible
26．Challenges in making clients’ GHG emissions more visible Challenges exist for clients (corporate clients) and/or logistics companies, in making GHG emissions in the supply chain more visible Logistics companies’ Clients’ challenges Challenges for both challenges • When calculating Scope 3 • Have
Slide 32: Initiatives to visualize clients’ GHG emissions
27．Initiatives to visualize clients’ GHG emissions Achieve the establishment of “GHG emission visualization system”, based on the new international standard (ISO14083) for calculating logistics GHG emissions, and make it possible to actually see reduction efforts → Collaboration with DPD Group of Fr
Slide 33: Summary
Summary Promote sustainable management, in order to “contribution to realizing a rich and prosperous society” Achieve sustainable corporate value enhancement, and realize a sustainable society Copyright 2022 Yamato Holdings Co., Ltd. All rights Reserved 28
Slide 34: Mitigate climate change
Ref. Sustainable Medium-Term Plans 2023 Progress 【Energy & Climate】 Mitigate climate change Risk Opportunity Reduce greenhouse gas emissions by using electricity generated via renewable Overview energy sources, enhancing transportation efficiency, and reducing the use of dry ice, etc. • Reduce GHG e
Slide 35: Clean up the skies (prevent air pollution)
Ref. Sustainable Medium-Term Plans 2023 Progress 【Atmosphere】 Clean up the skies (prevent air pollution) Risk Pursue transportation that reduces the effects of air pollutants emitted by vehicles Overview and cleans up skies in local communities FY 2024/3 • Reduce NOx and PM emissions from vehicle 25
Slide 36: Promote resource conservation and reduce waste
Ref. Sustainable Medium-Term Plans 2023 Progress 【Resource Conservation & Waste】 Promote resource conservation and reduce waste Risk Opportunity Drastically reduce our environmental burden and promote the use of technology Overview and creation of opportunities for minimizing environmental impact FY
Slide 37: Support a society that combats environmental changes
Ref. Sustainable Medium-Term Plans 2023 Progress 【Resilience of Companies & Society 】 Support a society that combats environmental changes Risk Opportunity Collaborate with diverse partners to increase the resilience of stakeholders and Overview local communities and create environmental value Advan
Slide 38: Yamato Group’s GHG emissions / breakdown
Ref. Yamato Group’s GHG emissions / breakdown GHG by source of emission ※Scope1 & Scope2 Dry ice, Electricity, fluorocarbon, heat etc. 25% 12% Fuel (vehicles) Fuel 62% (facilities) 1% GHG emission by Scope Scope1 ※Scope1&Scope2 21% Scope2 7% Scope3 72% Copyright 2022 Yamato Holdings Co., Ltd. All ri
Slide 39: ISO14083
Ref. ISO14083 ■International voting is ongoing, towards issuance of international standard ISO14083（As of Dec 20, 2022） ISO 14083 Name of Greenhouse gases — Quantification and reporting of greenhouse standard gas emissions arising from transport chain operations Date of 2023 (scheduled) issuance Req
Slide 40: Collaboration with DPD Group in the environmental domain
Ref. Collaboration with DPD Group in the environmental domain In July 2022, Yamato Holdings and France’s DPD group, which has the largest delivery network in Europe, signed a basic agreement with the aim of cooperating in the environmental domain, such as by examining common global standards for cal
Slide 41: External certifications and assessments
Ref. External certifications and assessments (As of Dec 20, 2022) Yamato HD’s Organization Metric, name, etc. certification MSCI Japan Empowering Women (WIN) Included in the index MSCI Select Index 6.675 （Max 10） FTSE 4 Good Index Series Included in the index FTSE FTSE Blossom Japan Index 4.0 （Max 5
Slide 42: Disclaimer
Disclaimer This material is intended for informational purposes only and is not a solicitation or offer to buy or sell securities or related financial instruments. Ultimately it is the responsibility of investors to select and buy securities and the Company assumes no responsibility for investors wh