Aiming to Realize a Carbon-free SocietyEnvironment

Sagawa Express is helping to realize a carbon-free society by actively working on a range of initiatives to reduce CO₂ emissions and streamline business activities. These include modal shift promotion and reduction of fuel consumption through safe and eco-friendly driving. They also include the adoption of environmentally friendly vehicles such as compressed natural gas (CNG) trucks, hybrid trucks, and electric vehicles.

Related SDGs

Greenhouse Gas Emissions Reduction Targets

SG Holdings Group Greenhouse Gas (GHG) Reduction Targets

Sagawa Express Greenhouse Gas (GHG) Reduction Targets *SBT certified

Subject	Target
Scope1・Scope2	2030: 42% reduction in CO2 emissions (*from FY2020 levels)
Scope3	2030: 25% reduction in CO2 emissions (*from FY2020 levels)

Reduction Measures

Transition Plan

GHG Emissions Reduction Progress

SG Holdings Group Greenhouse Gas (GHG) Emissions Reduction Targets and Results

• Results at Sagawa Express

Sagawa Express Greenhouse Gas (GHG) Reduction Targets and Results *SBT Certified

• Scope 3 is calculated within the same scope as the base year.

Targets and Results

Air Pollution Prevention

Environmentally Friendly Transportation

Adoption of environmentally friendly vehicles

After early adoption in the 1990s ahead of competitors, the number of our environmentally friendly vehicles has more than doubled in the last eight years

Compared to conventional gasoline and diesel vehicles, environmentally friendly vehicles have a smaller impact on the global environment. They emit lower levels of greenhouse gases such as carbon dioxide which promote global warming, as well as air pollutants contained in exhaust gas (nitrogen oxides and particulate matter, etc.). As of the end of fiscal 2023, Sagawa Express owns 19,902 environmentally friendly vehicles, and environmentally friendly vehicle share of its fleet is increasing year by year.

Introducing FCV trucks and EV trucks for last one mile delivery

Sagawa Express is participating in the construction and social implementation of an energy management system to promote electric vehicles in Fukushima Prefecture and Tokyo^*. As part of this effort, we have been sequentially introducing FCV (fuel cell vehicle) trucks and EV (electric vehicle) trucks since November 15, 2023. Since these vehicles do not emit CO₂ or other exhaust gases while driving, we estimate that each vehicle can curb CO₂emissions by approximately 12 tons per year.

• Partially implemented as “Green Innovation Fund Project/Smart Mobility Construction,” a research and development project subsidized by New Energy and Industrial Technology Development Organization (NEDO)

Use of biodiesel fuel

Sagawa Express implemented the "Sustainable Delivery Project" in collaboration with Euglena Co., Ltd., a company engaged in the production and sale of biodiesel fuel. This project enabled consumers to actively participate in efforts to reduce CO₂ emissions based on their own choices. (Implementation period: June to December 2023)
This project is a new initiative to reduce CO₂ emissions from transportation by using the next-generation biodiesel fuel "SUSTEO" for a portion of mail-order deliveries. The cost is shared among the three parties involved: the customer (individual), the shipper (Euglena), and the transportation company (Sagawa Express).
We received a total of 845 units of support (1,000 yen per unit) from individual customers. Both companies contributed an amount equal to the total support received, and by using approximately 8,000 liters of "Susteo," a next-generation biodiesel fuel, in around 100 Sagawa Express vehicles, we were able to reduce CO₂ emissions by approximately 4.11 tons.

News Release on April 24, 2024
Japan's First "Sustainable Delivery Project" Achieves 4.11-Ton CO₂ Reduction—Equivalent to the Annual Absorption of Approximately 5,500 Cedar Trees (Japanese only)
https://www2.sagawa-exp.co.jp/newsrelease/detail/2024/0424_2243.html

Use of Sustainable Aviation Fuel

To help indirectly reduce CO₂ emissions from upstream activities in the supply chain (such as air transport), we are participating in the SAF Flight Initiative, a CO₂ reduction program that uses SAF* (sustainable aviation fuel) provided by ANA. We will continue to collaborate with our partner companies to reduce CO₂ emissions across the entire supply chain.

• SAF
  SAF (Sustainable Aviation Fuel) is a fuel produced from biomass and waste cooking oil. It is a sustainable alternative to conventional aviation fuel that can reduce CO₂ emissions by approximately 80% over its life cycle—from the production and collection of raw materials to processing and combustion.

Establishing Service Centers

Our 319 Service Centers eliminate the need for 1,500 trucks

Sagawa Express is also actively working to provide environmentally friendly pickup and delivery without the use of trucks. By using hand carts and bicycles at Service Centers for package pickup and delivery, we are reducing the use of trucks, which significantly reduces CO₂ emissions.

TRIKE CARGO: Power-assist electric tricycles for pickup and delivery

We introduced TRIKE CARGO, a power-assisted electric tricycle for business use, in August 2020. It can carry up to 150 kg* (one third of the loading capacity of a light truck), four times the conventional trike capacity.

• In the case of Tokyo (depending on the ordinance of each prefecture)

Modal Shift Promotion

Shifting from truck to rail or sea transport to reduce CO₂ emissions by about 1/10

Modal shifting means switching long-distance freight transport from truck to high-capacity rail or sea transport in order to lower CO₂ emissions. Sagawa Express is actively promoting a modal shift to reduce its CO₂ emissions.

CO₂ emissions reduction from modal shifting

Compared to truck transport, the amount of CO₂ emitted to transport a ton of cargo for one kilometer is about 1/10th for rail and 1/5th for ocean transport.

Mixing freight and passengers transport business - Advanced form of modal shift

Passenger trains and taxis in service are now also being used to carry cargo. In addition to reducing CO₂ emissions, this type of modal shift provides the added advantages of maintaining employment and streamlining logistics in depopulated rural areas. In cooperation with regional transportation companies such as rail, bus, and share-ride taxis operators, Sagawa Express is working to utilize various passenger services for cargo transport.

Mixing Freight and Passengers Transport Business

Proposing solutions for decarbonization

We are actively exploring products and services that support our customers' decarbonization efforts, including services that utilize low-environmental-impact transportation modes. One of these is Hikyaku JR Container Express.
Hikyaku JR Container Express is a rail transport service jointly developed by Sagawa Express and Japan Freight Railway Company. Since we use rail, which has a lower environmental impact, instead of trucks for long-distance transportation, we can reduce CO₂ emissions during transportation by approximately 90%*. Sagawa Express serves as an intermediary between Japan Freight Railway Company and the shipper and recipient, collecting cargo by truck and transferring it into rail containers, thereby making rail transport easier to use.

• CO₂ emissions for station-to-station transport compared to commercial trucks

An example of the transshipment service in operation

Service Overview

Click here for details on Hikyaku JR Container Express.

Operation of Large-scale Hub Facilities

An environmentally friendly transportation system with 22 Large-scale Hub Facilities across Japan

Sagawa Express has built a system in which packages collected in each region are taken to a Large-scale Hub Facility, before being transported in bulk to each region in Japan. By reducing the number of trucks used, we are reducing CO₂ emissions and preventing air pollution.

Transport Process Using Large-scale Hub Facilities

Facility Logistics Systems

Central management of people, goods, vehicles, information, and facility maintenance at large commercial facilities

At Sagawa Express, we are building a system whereby we bring together all the cargo collected from various regions in large-scale collection facilities and transport it out from the facilities en masse by destination. This reduces the number of trucks used and helps to limit CO₂ emissions and prevent air pollution.

Click here for more details

Some of our large commercial complexes with a facility logistics system

We optimize the system for each facility based on conditions such as location, scale, and tenant makeup.

Eco-Friendly Safe Driving

Promoting safety and environmental benefits using both devices and methods

Sudden acceleration and braking while driving not only increases the risk of traffic accidents, but also lowers fuel efficiency. Therefore, safe driving is also environmentally friendly driving. Sagawa Express provides thorough training to its drivers so that vehicles are always driven safely and in a way that reduces CO₂ emissions.

Seven Guidelines for Eco-Friendly Safe Driving

1. Implementation of "e-start" gentle acceleration

Safety effects	Gentle starts create leeway enabling safety checks of the surroundings to be carried out without delay. Prevents accidents by enabling immediate stops in the event of an emergency.
Environmental effects	Gentle acceleration uses less fuel and can reduce carbon dioxide (CO2) emissions and black smoke. Sudden acceleration wastes fuel!

2. Shifting up gears early

Safety effects	Shifting up gears early enables easy acceleration and maintains a safe speed and vehicle distance.
Environmental effects	Fuel consumption is minimized by shifting up early, also reducing carbon dioxide (CO2) emissions. High RPM in low gear produces noise and wastes fuel!

3. Driving at a fixed speed according to traffic conditions

Safety effects	Driving at a fixed speed enables anticipation of one traffic light ahead and congestion. It broadens the scope of reliably performing safety checks and provides leeway.
Environmental effects	Keeping the accelerator at a fixed point consumes less fuel and reduces carbon dioxide (CO2) emissions. Undulating acceleration wastes fuel!

4. Securing adequate vehicle distance

Safety effects	Having adequate vehicle distance reduces the danger of collisions. It prevents anxiety (stress) for the driver of the vehicle in front.
Environmental effects	It is possible to drive at a fixed speed by ensuring there is adequate distance to the vehicle in front, lowering fuel consumption and reducing carbon dioxide (CO2) emissions.

5. Utilization of engine brake by easing off the accelerator early

Safety effects	In connection with driving at a fixed speed, driving by anticipating the behavior of the vehicles in front and road conditions enables defensive driving predicting hazards.
Environmental effects	Easing off the accelerator early when reducing speed completely cuts the fuel supply and can minimize fuel consumption.

6. Encouraging removal of the key (stopping the engine) when parked

Safety effects	Ensuring appropriate parking actions (gear lock and pulling the side brake twice) prevents accidents the vehicle from. It also has the effect of preventing vehicle theft.
Environmental effects	Not idling and turning off the air conditioner can also lower fuel consumption. (Do not use the air condition except when necessary!)

7. Daily inspections, maintenance and air pressure management

Safety effects	Prevents traffic accidents caused by poor maintenance. Prevents unforeseen accidents and accidents caused by panicking when changing tires, etc.
Environmental effects	Inappropriate tire pressure increases rolling resistance and causes deterioration of fuel consumption. Air pressure management prevents uneven wear and prolongs the life of tires.

We are working to reduce traffic accidents and environmental impact by providing thorough driver training based on the Seven Guidelines for Eco-Friendly Safe Driving, a method that integrates eco-friendly and safe practices.

Environmentally Friendly Distribution Facilities

Installing solar power generation systems

Annual energy production equivalent to the daily energy consumption of approximately 6,500 typical households

To increase its use of renewable energy, Sagawa Express has installed solar power generation systems on the rooftops of 23 sales offices since fiscal 2003. In addition, efforts are underway to transition to renewable electricity. The proportion of renewable energy in total electricity consumption improved to 51.1% in fiscal 2023. The entire SG Holdings Group is also working to adopt renewable energy on an even larger scale. SG Realty Higashiosaka, which is home to Sagawa Express’ Higashiosaka Sales Office, uses a self-consumption power generation system and makes up the deficit with purchased renewable energy. In this way, the facility has achieved zero CO₂ emissions.

Renewable energy share in electricity consumption:
51.1% (FY2023 actual result)

LED Lighting

Installed at 405 sales offices and large distribution facilities

We are working to reduce our environmental impact by installing LED lighting at 386 sales offices and large distribution facilities.
The LED lighting installed by the end of fiscal 2023 has resulted in a CO₂ emissions reduction of about 16,000 tons of CO₂, which is a savings of about 32 million kilowatts of electricity.

Status of Life Cycle Assessment (LCA)

We at Sagawa Express are focusing on Life Cycle Assessment (LCA) in our parcel delivery business. By leveraging the results of these assessments, we are working to reduce emissions from Category 4 procurement logistics, which account for approximately 85% of our Scope 3 CO₂ emissions. We are promoting modal shift initiatives and will open a new large-scale relay center in the Kansai region (Amagasaki City, Hyogo Prefecture) in July 2026. By consolidating four existing relay centers in the area, we aim to reduce the number of trucks used in procurement logistics and cut CO₂ emissions.

Supplier engagement initiatives on climate change

We at Sagawa Express support the decarbonization efforts of our partner companies through the Eco Action 21*1 initiative's "Affiliated Company Greening Program"*2. We are taking the lead in encouraging them to participate in the program, and we host free study sessions on how to establish and manage an Eco Action 21 system in order to obtain certification. By encouraging our partner companies to disclose environmental information through Eco Action 21 and to engage in initiatives such as reducing CO₂ emissions, we aim to cut emissions across the entire logistics supply chain in the transportation sector.

• *1
  Eco Action 21
  A third-party certification and registration system for environmental management systems established by the Ministry of the Environment.
  Eco Action 21 website
• *2
  Green Program for Affiliated Companies
  This program is organized by major companies and business associations that aim to promote environmental initiatives across the value chain through Eco Action 21 and to strengthen the environmental capabilities of their member and affiliated companies.

Direct engagement with climate change policy makers

Sagawa Express has signed disaster response agreements with the national and local governments. In the event of a disaster, Sagawa Express will cooperate under the agreement by transporting emergency supplies to evacuation shelters and assisting in the operation of supply collection centers.
To respond swiftly to disasters caused by the effects of climate change, we believe it is essential to maintain close, ongoing collaboration with local governments and other organizations. We draw on our extensive experience in disaster response to carry out relief activities as quickly and effectively as possible. To enable rapid disaster response, Sagawa Express is working to conclude disaster agreements with the national government, local governments across Japan, universities, companies, and other relevant organizations.
Sagawa Express is also a full member of the Japan Climate Leaders' Partnership (JCLP). Through dialogue with government officials, policymakers, industry associations, and other stakeholders, we provide recommendations to the government on climate-related issues. Thus, we actively engage with a variety of external organizations and initiatives to promote collaboration and information-sharing. In addition, we serve as a member of the Environmental Measures Committee of the Japan Association for Logistics and Transport (JALoT) and participate as a supporting company of the Japan Climate Initiative.

Japan Climate Leaders' Partnership (JCLP) website
https://japan-clp.jp/en