Sustainable Logistics

Policies

In the logistics industry, recent significant structural changes have occurred, and there is a growing demand for further reduction of environmental impact and more efficient transportation, facing various challenges in achieving stable transportation. As a Co-creative Chemical Company, we will carry out initiatives aimed at achieving stable and sustainable logistics through co-creation with employees, society, and partner companies.

Current Situation and Challenges Surrounding Logistics

Logistics faces challenges such as reducing CO₂ emissions, rising labor and fuel costs, and decreased transportation capacity due to labor shortages. Especially domestically, the decline in transportation capacity due to the shortage of truck drivers is a significant recent concern, and as cargo owners, there is a demand for improving the efficiency of transportation, waiting for cargo, and loading and unloading operations. In international transportation, geopolitical risks such as conflicts between countries and the US-China rivalry, which threaten stable logistics, have also increased.

Main Initiatives

As an effort to address domestic logistics challenges, in June 2023, the “Physical Internet Realization Conference Chemical Products Working Group (hereinafter referred to as Chemical Products WG),” consisting of the Ministry of Economy, Trade and Industry and other related ministries, chemical product companies, and logistics companies, was established. Our company also participates in this Chemical Products WG and is advancing initiatives by formulating concrete action plans for reforms in logistics commercial practices, standardization, digitalization, and more, all aimed at achieving sustainable logistics. In addition, we will implement the efforts required of cargo owners as established by the new Logistics Efficiency Act (revised Logistics Act) that came into effect in April 2025.

[Specific Initiatives]

1. 1. Compliance with the Voluntary Action Plan
   We will comply with the voluntary action plan formulated by the Chemical Products WG. (Reducing waiting and loading/unloading work to within two hours, optimizing transportation contracts, improving the efficiency of logistics operations, etc.)
2. 2. Holding of the Logistics Working Group General Meeting
   Our company's logistics staff gather regularly to share the latest information on logistics trends and exchange opinions on initiatives aimed at improving driver working conditions and enhancing logistics efficiency. Furthermore, subcommittee activities are being promoted according to each theme.
3. 3. Dialogue with partner transport companies (3PL) regarding the improvement of truck drivers' working conditions
   At each location, we hold forums with major partner transport companies to share awareness of issues concerning legal compliance, improvement of truck drivers' working conditions, and productivity, and to engage in dialogue. When requests for work rationalization or other measures are made by partners, we respond sincerely to discussions and actively propose improvements from our side as well. (Example: Organizing on-site traffic routes to prevent contact accidents, expanding safety equipment related to tasks handled by drivers, setting pickup times and locations considering waiting times for cargo, etc.)
4. 4. International logistics partners (freight forwarder)
   The company will share information about freight forwarders partners throughout the organization in international logistics, working to effectively utilize a logistics network that leverages each partner's strengths.