202 3 Sustainability Report Yusen Logistics (UK) Ltd.
Prologue
Yusen Logistics is building a more sustainable future.
Our corporate strategy is designed to encompass all our environmental, social and governance (ESG) activities globally. We’re bringing people, partners and communities together to reduce our environmental impact, advance social welfare and improve the governance of our business. We’re supporting our people to create a positive difference to business and society. We’re dedicated to creating shared value for our stakeholders by promoting fairness and transparency, and we’re committed to achieving net-zero emissions by 2050.
Together, we’re changing supply chain logistics for the better.
Sustainability is the DNA that runs through our strategy and is a part of our culture
David Goldsborough Managing Director
2
September 2023
CONTENTS
1. Introduction
1.1 Who we are 1.2 Our ESG story & sustainability journey 1.3 Our materiality assessment 1.4 Sustainability at Yusen Logistics UK 1.5 Managing Director’s message
2. Environment
2.1 Our ambitions 2.2 Our achievements to date & ongoing projects 2.3 Our next steps
3. Social
3.1 Our goals 3.2 Our achievements to date & ongoing projects 3.3 Our next steps
4. Governance
4.1 Our goals 4.2 Our achievements to date & ongoing projects 4.3 Our next steps
5. Databook
5.1 Company profile 5.2 Business Overview 5.3 Colleagues KPI data 5.4 Our certifications and accreditations
6. Closing
Disclaimers Scope of Report • Reporting period: Fiscal 2022 (April 2022 to March 2023) However certain information from April 2023 and after is included. • Date of issue: September 2023 Guidelines for Disclosure • GRI Standards, global standards for sustainability reporting produced by the Global Reporting Initiatives Cautionary Statement with Regard to Forward-Looking Statements
• Some statements made in this report are forward-looking statements based on information currently available and involve certain risks and uncertainties that could cause actual results to differ in materially from those projected. Yusen Logistics UK undertakes no obligation to publish revised forward-looking statements to reflect events, circumstances, or unanticipated events after the present juncture.
3
September 2023
WHO WE ARE
Mission
Vision
To become our customers’ preferred supply chain logistics company – applying insight, service quality and innovation to create sustainable growth for business and society
Connecting people, businesses & communities to a better future – through logistics
3,600 TON (FY2022) AIR FREIGHT
1991 Founded
11,000 TEU (FY2022) OCEAN FREIGHT
£332m Revenue 2022/2023
200,500+ M 2 WAREHOUSE SPACE
4
September 2023
OUR VALUES GUIDE OUR BEHAVIOUR
We invest in insight to get to the heart of our customers’ challenges. We are open and transparent in the way we work.
Deeply involved in building relationships – everything we do is with the long-term in mind. Our dedication to quality is the cornerstone of our success – we get every detail right.
We are constantly developing better ways of working. If we find a better way, we act upon it and share it.
Create Better Connections summarises our philosophy. It’s what we aim to deliver time and time again: a more prosperous future built through stronger relationships and ties across the world with all our stakeholders – customers, colleagues, partners, and society.
5
September 2023
OUR ESG STORY & SUSTAINABILITY JOURNEY
In April 2022, Yusen Logistics Group published our ESG story which outlines our 'aspirations’ - to create and deliver value that is unique to our company and to our stakeholders. Through our services, we aim to realise sustainability for society and the Group by acting as a bridge and collaborating with various companies and people to solve social issues, based on our promise 'Create Better Connections’.
Environment
The Yusen Logistics Group has set a goal of achieving net-zero emissions for all of the services it provides by 2050. This includes waste generated at our own offices and warehouse facilities. We need to work with our stakeholders and colleagues to achieve this goal. The Group is committed to contributing to society through sustainable growth.
Social
The Yusen Logistics Group is committed to providing all colleagues with the opportunity to do inspiring work that makes a positive difference to business and society and rewarding positive contributions. We will provide tools, development and a supportive environment where people are treated with respect and are encouraged to collaborate to achieve challenging goals, where colleagues can work with enthusiasm, confidence and pride. By promoting diversity and inclusion and well-being, we enable every colleagues to express their individuality and continue to grow. This will support the Group to “Create Better Connections” to ensure a brighter future with our customers and the people we work with.
Governance
The Yusen Logistics Group will further promote sound, transparent, and efficient management. To remain a reliable partner to all stakeholders, including business partners, the Group will further strengthen governance by providing quality services and creating new value. Furthermore, by making our suppliers aware of our quality services, we will provide a consistent level of service and build a stronger management system that responds to risks. We will also develop and build a corporate governance structure that ensures management transparency and strengthens the operation of our internal control system.
6
September 2023
To become the world’s preferred supply chain logistics company
Strategic Pillar 2 Our offensive strategy: maximising customer satisfaction
Strategic Pillar 1 Our defensive strategy: minimizing customer dissatisfaction
Corporate Transformation (CX)
Digital Transformation (DX)
DX Strategy • Set the clear direction of DX in the YL Group • Clarify the roles of Management, Business Unit / Sales / Business Partner and IT divisions and accelerate to proceed IT strategy
Human Resources Strategy Proceed HR strategy centred on visualization of human resources and talent management Organization Transformation Reorganize Head Quarters function to strengthen network sales and accelerate management decision making
Yusen Logistics Group ESG Story
Our Group ESG Story is the cornerstone of our corporate activities and how we prioritise our efforts to realise it. Based on the values we share as Yusen Logistics, we have established the following basic strategies that intrinsically link our key assets - our customers and our people.
In Phase 3 of our global corporate business strategy ‘Transform 2025‘, we focus on minimising customer dissatisfaction (Pillar 1) and maximising customer satisfaction (Pillar 2).
We are also developing Corporate Transformation (CX) and Digital Transformation (DX) measures.
7
September 2023
OUR MATERIALITY ASSESSMENT
We have taken steps to understand what sustainability means to us and where our focus currently lies by conducting an internal materiality assessment. Materiality is a concept helping organisations prioritise issues that are significant for the organisations sustainability performance, judging certain topics as more or less important. There are different perspectives of materiality. For Yusen Logistics’ initial materiality assessment, we have used the materiality maps of EcoVadis SASB and MSCI for the related industries (logistics and transportation services) and then further shaped the list based on the interviews with Yusen Logistics’ team, clients and vendors.
The business case perspective
Indicating that a topic is material when it has a significant (positive or negative) impact on the financial performance of the company.
The societal impact perspective
Indicating that a topic is material when it matters to society and the company significantly impacts this topic.
As a next step, we asked the team during the workshop to prioritise the final list of issues based on Yusen Logistics; potential impact and opportunity for each topic. Diagram below shows the prioritisation:
Energy consumption
Working conditions
Information security
Risk management
Community relationships
Diversity, discrimination & harassment
colleague H&S
Biodiversity
Water consumption
Corruption, anti-bribery and anti- competition
Service Design and use
Promotion of sustainable consumption
Social dialogue
Whistle blowing procedures
Supplier environmental practices
Materials, chemicals and waste
Pollution
Modern slavery
Supplier social practices
Customer H&S
Low impact
High impact
The materiality assessment reaffirmed the top priorities: reducing our carbon footprint, ensuring the physical safety of our colleagues at work, embedding diversity & inclusion in the workplace, and managing company-wide risks, including GDPR and cyber-attacks. These are synchronised with the programmes included in the aforementioned ESG story and represent our top priorities as one of the Group's companies. It is our responsibility to address these challenges in the UK too. Taking into account the group direction and the study conducted at our European headquarter, sustainability forms the foundation of Yusen Logistics UK's new medium-term management strategy, which will be implemented in accordance with the respective business and management strategies.
8
September 2023
SUSTAINABILITY AT YUSEN LOGISTICS UK
OUR BUSINESS STRATEGY
Our new UK business goals focus on four core pillars; Communities, Customers, Colleagues and Sustainability.
Our ambitious target will keep our company financially stable Our strategy has been built with a focus on delivering positive growth in the 4 core areas below
We’re trusted by our customers to deliver on our promises and go the extra mile to support and help them
We have big plans to work in our local communities and have already partnered with Business in the Community so we can make a difference where it matters most
We’re part of a fantastic team and are working hard to support the financial, physical and mental wellbeing of all our colleagues
Sustainability is the DNA that runs through our strategy and is part of our culture
Sustainability is the DNA that runs throughout our strategy and has become part of our culture, to create sustainable growth for society and business in the face of global environmental and social challenges, including Brexit, recruitment challenges, energy crisis, stagflation, and plays an essential role in shaping our corporate culture.
4 routes to success, each one supported with goal activities, milestones and resources to help chart our journey
Each time we achieve something positive in these areas then we score a goal for our people and our business!
All of our plans, goal initiatives and colleague objectives will support delivery in these 4 areas
We are 100% committed to doing the right things and will promote initiatives that protect our environment, our planet and our people – things that give us all a better future.
9
September 2023
SUSTAINABILITY AT YUSEN LOGISTICS UK
OUR SUSTAINABILITY STRATEGY
Our Sustainability Steering Committee oversees the execution of our Sustainability strategy, which outlines specific UK programmes and projects to meet our Environmental, Social and Governance objectives.
The Sustainability Steering Committee reports progress to the Company Executive Committee. This structure and process help us to achieve our sustainability goals in a realistic timeframe.
PRIMARY PROGRAMME
SECONDARY PROGRAMME
OVERVIEW
Value Provided for Environmental Issues
Create Shared Value (CSV) in our business to solve environmental issues in society.
ENVIRONMENT
Set tangible and achievable targets by 2030 that align with 2050 net zero service provider Provide full visibility of GHG emissions in all scopes on Power BI dashboard Accelerate our internal Green Initiatives, such as transitioning to Electric Vehicles for company cars users and installing additional EV charging stations at our UK sites. We have switched to Green Electricity. Deliver safety training and internal audits. We also provide mental, physical and financial wellbeing support.
Environmental Targets
Visualisation of GHG emissions
Going Green Internally
Physical, Psychological Health and Safety
SOCIAL
Engagement
Improve our comprehensive engagement score
Support our colleagues to learn a leadership and management skills Deliver DE&I training and the roll out “Count Me In” campaign supporting the “Free To Be Me” project Provide 5 days ‘paid’ volunteer days per annum to all colleagues, and roll out various charity / volunteer events
People Development
Diversity, Equity and Inclusion
Corporate Social Responsibility
Quality Management
Re-certified ISO 9001, 14001, 45001, and 28000
GOVERNANCE
Develop the supplier management system to align with our supplier management policy
Supplier Management
Business Risk Management Risk register updated by our risk committee to identify and mitigate future potential risks in business. Corporate Governance Reform our corporate governance structure to be more effective
Internal audit structure, whistle-blower system, external assessment in place
Compliance
10
September 2023
The Sustainable Development Goals (SDGs) are the successor to the Millennium Development Goals (MDGs) set out in the 2030 Agenda for Sustainable Development, which was adopted unanimously by Member States at the UN Summit in September 2015. UNSUSTAINABLE DEVELOPMENT GOALS ALIGNMENT
PRIMARY PROGRAMME SECONDARY PROGRAMME Environment Value provided for
● ● ● ●
environmental issues (pg.17) Environmental targets (pg.20) Visualisation of GHG emissions (pg.21) Going green internally (pg.22- 23) Physical and psychological H&S (pg.27)
●
●
●
● ●
Social
●
●
Engagement (pg.31) People development (pg.33)
●
●
●
Diversity equity & inclusion (pg.35)
●
● ●
●
●
CSR (pg.37)
Corporate governance (pg.43) Compliance (pg.46) Business risk management (pg.45) Quality management (pg.49) Supplier management (pg.51)
Governance
●
● ●
●
● ●
●
●
● ● ●
●
The SDGs consist of 17 goals & 169 targets, and pledge to "leave no one behind" on the planet. The SDGs are universal, and our sustainability activities are structured to cover as many of these goals as possible.
11
September 2023
MANAGING DIRECTOR’S MESSAGE
David Goldsborough Managing Director
12
September 2023
LESSONS LEARNT FROM THE TOYOTA KAIZEN METHOD
Yusen Logistics UK were established in 1991 as UCI LOGISTICS (UK) LTD, two years after the Toyota Motor Manufacturing UK plant commenced operations at Burnaston, Derbyshire. Our group parent company, NYK Line, transports Toyota cars produced by manufacturers, for distribution to domestic and overseas sales networks using roro vessels, rail and land car carriers. The Group's logistics domain is not limited merely to transporting vehicles, but has evolved into a total supply chain solution. This includes the procurement of production parts and components required at our customer’s automotive production plants as well as the parts needed for after-sales service. Previously, production parts and components were transported from suppliers in the EU and UK to the Toyota plants on a 'milk run' basis, consolidated at a warehouse in Derby just minutes from the plant and delivered to the plant on a 'just-in-time' basis. Since then, further improvements have been made and the consolidation function has been re-established at the plant By backcasting from the core of the site, the production line, and by walking through all the points of the operation, we were able to identify areas of defects and inefficiencies in the entire Toyota supply chain, including the logistics we provided, that needed to be thoroughly Kaizened. By streamlining the operation in this way, it provided direct benefits to the customer in the form of financial savings, whilst also ensuring the safety of colleagues on site. This aspect of our DNA, the Gemba and Kaizen principles, inspired by Toyota, is still firmly embedded in our culture as the basis for quality management, and forms part of our ESG story.
CHALLENGES FOR THE NEW BUSINESS ENVIRONMENT The UK has experienced various hardships, including leaving the EU in 2020, the Covid- 19 pandemic lockdowns, shortages due to stock piling, and fuel supply issues. The Russian invasion of Ukraine in January 2022, has also impacted the business environment. Our Management Conference is held annually in May, except in 2020 and 2021 due to the Covid-19 pandemic. Instead, our Director Roadshow saw Directors visiting our sites to brief colleagues in the field. Yusen Logistics Group released its “ ESG Story” in April 2022, which outlines the basic pillars of the Group ‘ s ESG management. Yusen Logistics UK have incorporated sustainability as a basis for evaluating our business and corporate strategies and launched our new medium-term business strategy at the 2023 Management Conference, which was attended by almost 160 colleagues. The new strategy covers six strategic business goals and four cornerstone pillars, the fundamental foundation of the business. Traditional management mindsets will not survive; the time may soon come when only companies that draw their business strategy from an ESG mindset will thrive. In a tremendously changing business environment, we needed to grow into a company that society, customers, colleagues & other stakeholders want to see.
13
September 2023
MANAGING DIRECTOR’S MESSAGE
ESG PROCESS
In 1991, UCI Logistics UK, the predecessor of Yusen Logistics UK, was born and in 2004, when NYK Logistics was renamed from UCI, our company has undergone many changes over the past 30 years. The journey has not been a smooth one. Our history as a logistics service provider supporting society and industry in areas such as car production and retail distribution has given us a sense of social mission as well as profitable growth, and our relatively large organisation, compared to other European companies in the group, has fostered a corporate culture with a sense of colleague's engagement. It can be said that the company was equipped with a culture that was more sympathetic to sustainability. Even so, there was still a strong sense of confusion on the ground as to how to incorporate the new evaluation criteria of sustainability into each individual job.
In 2022, the Sustainability Steering Committee was established within the organisation with members selected from each department in order to make ESG/sustainability a personal matter and to incorporate the basic concepts set out in the ESG story into more concrete activities. Although we have been improving colleague engagement, providing mental health care, compliance education and risk management, we started by sharing and visualising examples of initiatives and plans in each department in the committee first, in line with the ESG story. In the environmental area, we disclose our CO 2 emissions in our Financial Statement every year according to SECR (Streamlined Energy and Carbon Reporting), which came into effect in 2019, but we need to invest in environmental considerations in collaboration with our customers.
14
September 2023
However, it is not always a pretty story, as investments must be made in environmental considerations and costs will need to be shared with our customers. Even considering a modal shift from truck to rail transport can help reduce CO 2 emissions, but at the same time requires an operational plan and internal structure that meets the delivery requirements from customers. That is why we believe that by bringing sustainability as a management moniker, we can make the right management decisions. It is the responsibility of our management team to ensure that the ESG stories generated in the field are firmly established as a business, while keeping sustainability at the foundation of management. We believe that the accumulation of our originality and ingenuity will surely make a big difference in five- or ten-years' time.
In August 2022, the UK Government invited multiple consortia to bid for a £140 million fund to support the deployment of battery- electric 40-44 tonne HGVs into commercial operation through multi-year demonstrations over at least five years to 2030, with the aim of supporting the deployment of long-range zero-emission HGVs. This includes the development of the business model required for a scalable deployment and a network of dedicated charging infrastructure. The competition resulted in a consortium including Yusen Logistics, Nissan and other logistics partners, as well as GridServe as the charging partner, winning a total of £62.5 million. As part of the project, Yusen Logistics UK will acquire up to 15 fully electric HGVs, which will run in place of diesel HGVs under an existing contract with Nissan UK.
As the ESG story comes to fruition and takes shape in this way, the circle of co-creation is expanding. When results start to be seen in this way, confidence grows. External stakeholders are also participating with the expectation of business returns in terms of profitability and competitiveness.
David Goldsborough Managing Director
15
September 2023
Environment
OUR AMBITIONS
FEATURE 1: Environmentally friendly land transport service
Yusen Logistics Group’s ambition, is to contribute to the sustainable development of the economy and society, by taking on the challenges of growing social issues through logistics and creating a better future for all. This implies that our sustainable growth is due to our deep connection with our customers, society and people. In order to achieve a sustainable society and global environment through business, we must also work together with future generations. Environmental issues need to be tackled immediately, with our children and future generations in mind. In the UK, GHG emissions from the transport sector are the largest at 24% as of 2020, and we believe it is an ethical responsibility for us to take action to reduce our environmental impact. Activities and investments aimed at reducing the environmental impact of our planet will put pressure on our profits in the short term as a cost. However, if we do not carry out such activities and investments, we are shelving environmental issues and putting future generations at risk. For example, switching to renewable energy may be costly in the short-term considering the initial investment, however, in the long-term it is creating sustainable value for future generations. In addition, GHG reduction initiatives can themselves become a source of innovation that creates new green businesses, which differentiates us from our competitors and contributes to long-term profit growth.
In April 2022, our global headquarters announced the Yusen Logistics ESG Story. In terms of environmental initiatives, we aim to start providing net-zero emission services by 2030 and to achieve full net-zero emissions for all services provided by 2050. Yusen Logistics UK is working in tandem with our global goals to identify the right actions we can take every day in our business, and to ensure that we are already doing the right things. We have already started to identify what we can do every day in our business to provide decarbonisation services. We will then further improve emissions data quality and correctly disclose the results of each initiative to our stakeholders. By utilising our knowledge, expertise and IT systems to provide consistent, high-quality services and supply chain optimisation, we will help our customers to achieve net zero emissions throughout their supply chains and promote responsible business practices for the region and future generations. Value provided for environmental issues & going green internally It is our obligation to bring change to our services and operations to minimise the environmental impact we create. We are investigating new ways to provide greener services to our customers and suppliers and taking our first steps in moving towards a truly sustainable logistics provider.
17
September 2023
OUR ACHIEVEMENTS TO DATE AND ONGOING PROJECTS
We operate a fleet of approximately 160 tractors and 110 trucks (18 and 7.5 tonnes) on average every day of the year, delivering everything from production parts to factories, customer products from warehouses to retailers, products from warehouse to warehouse, or supplies to hospitals. The amount of carbon dioxide emitted from this transport activity is 18,000 tonnes per year, accounting for about 26% of all Yusen Logistics UK’s emissions. In the UK, the sale of fossil fuel-based medium- duty trucks will be banned by 2035. Therefore, with the support of all our stakeholders, we are exploring ways to offer transportservices that comply with the upcoming regulations well in advance of the ban. This will enable us to build experience of operating clean transport and avoid the business impacts that a sudden switch-over would entail, whilst also reducing our carbon emissions in the interim. After a thorough 10-day study conducted during summer 2022, it was decided that two Renault E-Tech 19 tonne Electric trucks would be deployed to our sites in Derby and Erith to support our customer Howdens. Swarco 22kW Charge points were also installed at each site, including power supply upgrades to enable future expansion of the fleet. During the summer 2022 trial, the total distance driven was 1,720 miles, covering 113 deliveries and delivering 44 tons of products to customer depots, whilst generating a net saving of 1.3 tons of CO 2 .
Howdens have been working in partnership with Yusen Logistics since 2020 and Yusen have helped support the expansion of the Howdens XDC (cross-dock centre) Network. This has included the setup and delivery of four operational sites around the UK, operating 40 rigid vehicles on a daily basis. This has evolved with further support to the Howdens’ Primary Network with 21 tractor units operating from 3 sites in 2022. Recently, the relationship has been enhanced with Yusen Logistics supporting Howdens’ strategic road to carbon zero ambitions through the sourcing of two electric vehicles to be operated on the XDC Network. This provides another step forwards for Howdens to utilise different alternative fuel vehicles on their transport network. Gareth Sterland Head of Transport The project goals are to build experience of operating electric 19 tonne trucks in partnership with Howdens, accelerating our electrification roadmap and getting ahead of the 2035 government ban on fossil fuelled medium duty trucks, whilst reducing CO 2 emissions to achieve our objectives in the ESG story
Fleet data: • Renault E-Tech D-Wide 19T Rigid • Range: 155 miles • Battery: Lithium Ion (Nickel- Manganese-Cobalt), 265kWh • 22kW recharge time (0-90%): 10 hrs • 150kW DC recharge time: 2 hrs
18
September 2023
SWITCHING TO RENEWABLE ENERGY FEATURE 2:
FEATURE 2: Switching to renewable energy
Yusen Logistics UK operate 25 warehouse and office sites which emit approximately 1,200 tonne of CO 2 per year, which is equivalent to the annual emissions of approximately 300 UK households.
The short daylight hours between November and March each year in the UK increase electricity use in warehouses and offices, and warehouse automation is expected to push increase of warehouse electricity use in the future. Therefore, from October 2022, we decided to switch our electricity supply to renewable energy sources at all our sites, thereby reducing our CO 2 emissions to zero.
In addition, our Wellingborough warehouse offers a BREEAM Excellent certified operation with a low environmental impact. In the future, we are considering converting to green gas at our facilities.
The Wellingborough site achieved a score of 78.2 and a rating of BREEAM Excellent, which in only achieved by the top 10% of facilities in the UK. It scored particularly highly on the energy, waste and water categories.
SmartestEnergy is one of the largest buyers and sellers of renewable certificates in the UK and across Europe. Their expert in-house team supports renewable generators, green gas producers and businesses with their transactions, to realise both their short-term and long- term energy strategies. The Carbon Trust helps companies to measure the carbon emissions associated with their products (embodied emissions) and also provides a label for these products carbon footprint.
19
September 2023
OUR ACHIEVEMENTS TO DATE AND ONGOING PROJECTS
FEATURE 3: Environmental targets
Sustainability is at the core of our corporate activities and is valued by our various stakeholders. The transport sector is the largest emitter of greenhouse gases in the UK industry* and as well as fulfilling our responsibilities as a corporate citizen, we need to provide more green solutions to contribute to a sustainable society and business through our services, and to remain the choice of all our stakeholders, including our customers.
The 2015 Paris Agreement, is an overarching goal to hold “the increase in the global average temperature to well below 2°C above pre- industrial levels” and pursue efforts “to limit the temperature increase to 1.5°C above pre- industrial levels.” source: United Nations Climate Change. Scientists predicted that exceeding the 1.5°C threshold risks severe climate change impacts such as more frequent and severe droughts, heatwaves & rainfall impacting humans, wildlife and ecosystems. To keep the temperature increase below 1.5°C, global CO 2 must be halved by 2030 compared to 2010 levels and virtually zero by 2050. In 2021 and 2022, Yusen Logistics and its parent company, NYK Line, decided to aim for net zero emissions by 2050 in their ocean shipping and logistics operations. In 2023, NYK and Yusen Logistics plan to jointly apply for certification under the Science Based Targets (SBT) initiative as targets based on scientific evidence. For the third year in a row, the international non- profit organisation CDP has awarded the NYK Group an 'A-List' company for climate change, recognising the company's outstanding climate change response and strategy. Yusen Logistics' logistics business was also comprehensively evaluated, including its efforts to reduce GHG emissions, with the GHG reduction target to achieve net zero emissions for all services provided to
Mitch Kobayashi Statutory Director Sustainability
* 2022 UK greenhouse gas emissions: provisional figures - statistical release (publishing.service.gov.uk)
The greenhouse gas emission reduction targets set by the NYK Group were accredited in 2018 as a science-based target (2.0°C target by 2030, i.e. a reduction of at least 2.5% annually) by the international initiative, the Science Based Target (SBT) Initiative. In FY 2023, a reassessment certification is planned for Scope 1 including Yusen Logistics, at the 1.5°C level (reduction of at least 4.2% each year).
customers by 2050".
20
September 2023
Visualisation of GHG Emissions
Emissions data quality improvement and visualisation is the first step towards achieving our 2050 net zero emissions and will be essential for designing the path to reach our goal. Some of the Scope 3 items are not yet captured, but we aim to visualise them further by the end of 2023. Based on the visualised emissions data, we will also start supplying dashboards with emissions data together with transport data to our colleagues and customers.
On a global level, CO 2 emissions through our logistics services amount to approximately 1.9 million tonnes per year, of which Yusen Logistics UK emits approximately 45,000 tonnes per year. Of these, Scope 1 land transport CO 2 emissions from our own deliveries account for about 40%, while Scope 3 land transport delivery networks within Europe and international air and sea freight transport account for about 50% of the total.
CO 2 Ton
CO 2 emission data
48,913
47,775
46,858
41,585
*The financial year starts on 1st April and ends on 31st March. *European Final Mile (In market) deliveries in healthcare business within each nation are currently excluded. Subcontracted land transport for both Contract Logistics and International Freight Forwarding emissions data in UK and destination countries are currently excluded. Employee business travel is not wholly excluded; grey fleet (business miles in own car) is captured, only flights/taxi/public transport are excluded.
Financial Year
Variation vs 2019 (%)
2019 2020
2021 2022
CO 2 Emission (t CO 2 e)
48,913 41,585 46,858 47,775
No. of Full time UK colleagues
1,368 1,320 1,528 1,848
Intensity Ratio (ton CO 2 e/per full-time UK colleagues)
36
32
31
26
- 28%
21
September 2023
OUR ACHIEVEMENTS TO DATE AND ONGOING PROJECTS
FEATURE 4: Introduction of sustainable packaging and recycling
Taxation on plastic packaging materials was introduced in the UK in April 2022. The tax aims to encourage the use of recycled plastic rather than new plastic. Plastic is widely used in our daily lives due to its convenience. However, its excessive use, illegal dumping and improper disposal have a significant impact on the environment, making it a common global issue such as resource depletion, marine pollution and global warming. We are actively replacing plastic packaging materials with recycled paper wherever possible to significantly reduce our use of plastics. We have also switched from conventional plastic packaging to paper boxes for large and small case racks used to store customer ‘aftermarket’ parts.
100% of paper materials are also collected for recycling.
243.42 ton recycled waste
In conjunction with our efforts to remove and improve that packaging that we use in our activities, we are also seeking ways to return used packaging in a more sustainable manner. We have installed cardboard and polystyrene compactors to significantly reduce the number of loads that require collection from our facilities. The polystyrene compactor, as an example, compacts the material to one 50th of its original size – meaning that what was previously a full load (26 pallets) collection now fits on 5 pallets.
381.70 ton recycled waste
*from Apr 22 to Mar 23
22
September 2023
FEATURE 5: Company cars are moving into the age of alternative fuels
The UK will stop selling new petrol and diesel cars in 2030 and hybrids in 2035. The 2030 petrol and diesel car ban is part of the UK Government's ‘Green Industrial Revolution’ initiative, which aims to reduce vehicle carbon emissions to 'net zero' by 2050. To meet our own goal of achieving net zero emissions by 2050 outlined in our ESG story, we will switch from our current 63% EV company car fleet to 100% by March 2025 and we are also increasing the number of EV charging stations at our sites in 2023. We also provide free installation of home chargers to colleagues participating in the company car scheme to enable them to charge their EV vehicles at home.
23
September 2023
OUR NEXT STEPS
In March 2023, Yusen Logistics UK set medium and long-term Green House Gas emissions reduction targets to decarbonise through green service delivery and in our own operations, in line with our aim to achieve net zero emissions for all services provided by 2050 at a global level.
The integration of rail to truck will realise a highly effective decarbonisation service for our UK and intra-European delivery network and will alleviate ongoing driver shortages.
We will promote the use of sustainable fuels (SAF) in our global air shipments and launch a mixed container service with carbon credits in our ocean shipment services.
Our property strategy is to actively source ’excellent’ class warehouses to reduce our environmental impact.
We plan to phase- out of diesel engines and switch to alternative fuel vehicles to align with our customers' business models
Overall GHG emissions and priorities NYK, our parent company, annually calculates and publishes Scope 1, 2 and 3 emission following the GHG Protocol, the international standard for calculating and disclosing greenhouse gas emissions, based on data collected from its group companies including Yusen Logistics. NYK has received verification by a third-party organisation and a certificate of guarantee. They have further improved the disclosure data and added GHG emissions from ocean transport and international air transport to Category 1 (purchased products and services) of Scope 3 from FY2021. Scope 1 & 2 emissions are the group's own GHG emissions. In contrast, Scope 3 refers to emissions in value chains outside the Group. Yusen Logistics will first prioritise the reduction of its own GHG emissions (Scope 1 & 2), and by FY2023, together with NYK, will set clear reduction targets based on scientific evidence (SBT 1.5°C Initiative certification) and steadily achieve its long-term goals for reducing environmental impact.
24
September 2023
SOCIAL
OUR AMBITIONS
Thorough Gemba safety learning from past lessons people growth = company growth We are committed to providing opportunities for each and every colleague to play an active role at Yusen Logistics UK and looking after our colleagues safety, physical and mental wellbeing are fundamental to our business continuity. Accidents in the workplace are mostly caused by human factors, such as collisions in warehouses, falls, truck collisions, etc. We provide continuous safety training for all warehouse operatives and drivers, and regularly review our safety policy. We also conduct internal audits to thoroughly evaluate safe workplace rules, share best practices learned from similar cases through our accident management system, and evaluate risks and monitor the implementation of preventive measures through our risk management system. etc.
Achieving 'Happiness' for our colleagues
Our most important resource is our people and their physical, emotional and financial wellbeing are key to happy workforce. Our 'Working Practices' and 'Culture Wellbeing Communications’, aim to embrace and create a Diverse, Equal and Inclusive workplace, and promoting this is directly linked to our aim of 'Being the best employer that we can be’.
Every colleague can access a variety of skill-building and self-development training through our inhouse training platform ‘ YusenAdvance ’.
We encourage all colleagues to take advantage of up to five days of ‘Volunteer Leave’ so that they can participate in giving back to the community and actively engage with local communities. We also offer joint research projects with students from universities across the UK. Yusen Logistics conducts a bi-annual Global Engagement Survey, which provides engagement levels against other regions in our network. In the first survey in 2014, Yusen Logistics UK's overall engagement score was 55%, and in the last survey conducted in 2021 the overall engagement score was 74%, which is a significant improvement. We aim to improve on that score to 80% by 2025, in our pursuit of even greater colleagues' 'happiness'.
26
September 2023
OUR ACHIEVEMENTS TO DATE AND ONGOING PROJECTS
For Yusen Logistics UK, the Social aspect of ESG is all about maintaining and improving the overall wellbeing of the people who work for us, our important assets, and to contribute to the society we interact with through every possible opportunity. As an innovative leader in society, we actively introduce new initiatives and, under the slogan 'The Best Employer We Can Be', we aim to create a safe and secure environment in which all of our colleagues can work in their own way and achieve self- fulfilling personal growth. We are also making various efforts to enable all colleagues to work in a safe and secure environment and realise personal growth in their own way, and to play an active role where we can make a contribution, without being bound by existing frameworks and with a strong awareness of our role as a corporate citizen.
Physical and Psychological Health and Safety
It is of utmost importance that our people work in an environment that guarantees their physical and mental safety, reflecting the lessons we learned from the Sywell warehouse fire in 2019. We have systems and initiatives in place to ensure our colleagues’ physical and psychological health and safety on a daily basis.
FEATURE 1: Our Health and Safety management systems
Yusen Logistics UK utilises the Incident Management System (I.M.S.), an incident management tool implemented globally to all companies in the Yusen Logistics network, to adequately capture, manage and pursue true causes of incidents and prevent similar incidents from reoccurrence.
Standard I.M.S. incident control process
Escalation input into ADS* Temporary countermeasure
INCINDENTS OCCURED
Root cause analysis
Fact finding
Yokoten Sharing lessons learned
Permanent countermeasure
Closing
Verification
(source: https://www.yusen-logistics.com/kr_en/about-us/our-quality) * ADS: Accident Disclosure System
We adhere to UK laws and carry out various assessments to ensure that we take a proactive approach to identify and prevent risks.
Yusen Logistics UK HSE management measures We use a standardised framework in all our operating sites to deliver effective risk management, which includes all our H&S meetings, risk registers, risk assessments and SSOW’s and all are based on visible actions that are tracked, reported upwards and shared with all colleagues. Our risk registers, management systems ensure compliance to UK HSE legislation and are wide ranging, including working with key vehicle and MHE providers, occupational health providers and specialists in legionella, fire and dangerous goods. All our colleagues are trained in the tasks they perform and the board have agreed minimum standards of HSE education levels for all colleagues.
27
September 2023
OUR ACHIEVEMENTS TO DATE AND ONGOING PROJECTS
FEATURE 2: The Wellbeing Committee
Our Wellbeing Committee, formed of colleagues representing various part of our business including HR, Health and Safety and Operations, are committed to working together to bring more Wellbeing benefits and campaigns to our colleagues, including psychological and physical health and safety.
We continue to explore ways to further enhance and extend support we can provide, to become the best employer we can be.
FEATURE 3: Free fruit & free vend drinks
We want our colleagues to be happy at work, feel appreciated and valued, and of course to stay healthy! We have introduced free fruit & free vend to all of our sites.
Free fruit Diet nutrition help provide the foundations for many aspects of wellbeing and getting your five a day contributes to a healthy diet and are essential for our general health and wellbeing. We work with a supplier who provides fruit to all Yusen sites in fully recyclable boxes with eco- friendly ink used to print the designs. The supplier also donates any waste to local foodbanks, so no fruit goes to waste.
Free vend It is important to stay hydrated and nourished throughout the day, so we have introduced free vend drinks to all of our sites.
Hot drink machines are free vend and accessible to all colleagues.
28
September 2023
FEATURE 4: H&S training, warehouse & driver training
Ensuring the physical safety of our colleagues is extremely important to us, and we especially focus on offering various opportunities for our colleagues to receive appropriate training and support from the company to make sure they are equipped with the right knowledge ranging from basic health and safety rules to standard procedures, so they can conduct work safely and efficiently with confidence.
Our H&S Training Programs
Our Operational Trainings
We off cross-business e-learning programmes aiming to provide comprehensive and fundamental knowledge on health and safety, to ensure our colleagues are equipped with the right knowledge to maintain a safe working environment and prevent incidents.
We offer various training programmes tailored for colleagues working in the warehouses and drivers serving one of our core businesses, Contract logistics colleagues are required to undergo training when they start work and are also required to attend regular refresher courses.
Available training programmes
Available training courses • MHE training • Driver training - High value & security
• Incident Management System Basics Course (e-learning) • First Aid (external training) • Fire Marshal/Warden (internal training) • Spill Kit (internal training) • Hazard awareness • General Risk assessments • IOSH Managing safely • Dangerous goods awareness • Manual Handling
- TAPA (Transport Asset Protection Association) accredited training
• ICT training - WMS - TMS
- Applications
• Kaizen • Other operational training - Manual handling - First aid - Fire warden/marshal - Good distribution practice
660 Operational training days provided
223 HSE training days provided
- CAA (Civil Aviation Authority) / DfT (Dept. for Transport)
29
September 2023
OUR ACHIEVEMENTS TO DATE AND ONGOING PROJECTS
Feature 5: Mental health first aider network
Wellbeing It is very important for us to ensure and provide for the psychological safety of our colleagues – we want to always be available when our colleagues reach out for help and be able to provide support quickly and appropriately. To create this safe environment, we have introduced the First Aider Network and provide additional support in partnership with external parties. We have invested in accredited training, following the guidelines set by Mental Health First Aid England to establish our ‘Mental Health First Aider Network’ which is available to all colleagues. We know that good quality mental health support can genuinely make a positive difference to colleagues’ wellbeing. Our trained Mental Health First Aiders (MHFAs) are located across our sites and are available to provide support to any colleague who may experiencing poor mental health or emotional distress. External Support
Our Mental Health First Aiders can: • Act as a point of contact to reassure colleagues in emotional distress or experiencing poor mental health • Listen non-judgementally and hold supportive conversations • Signpost colleagues to professional help • Identify the signs and symptoms for a range of mental health conditions • Use a five-step action plan to assist someone experiencing a mental health issue Our Mental Health First Aiders are advocates of positive mental health in the workplace and will be working hard to promote greater awareness of mental health in the workplace and reducing stigma.
We have partnered with a range of external networks to provide our colleagues with access to professional assistance 24/7.
colleague assistance helpline Colleagues can access a range of services to support their emotional, physical and financial wellbeing, including legal support.
colleague benefits app Our Benefits App is available to all colleagues, and offers a fantastic range of special offers, savings across everyday essentials including grocery shopping, discounts on holidays, gym membership, cinema tickets, family days out, offers provided by Yusen Logistics' customersand much more.
There are also useful resources on Health & Wellbeing to further support mental, physical and financial wellbeing. Colleagues can also access information on our cycle to work scheme, long service awards, pension, life assurance and critical illness cover.
Family Care
We Care
Financial Webinars To support with managing expenses and financial planning
Exercise & Nutrition App Provides physical exercise courses, diet nutrition advice, etc
Legal & financial advice & pointers on where to get the care
On-line support service and access to UK based GPs
30
September 2023
Feature 6: Team talks
Engagement Our mission is to become our Customers’ preferred supply chain logistics partner, this cannot be achieved without our colleagues. ‘Becoming the best employer , is one our strategic goals and, we strive to create a healthy and safe working environment for all our colleagues where they feel appreciated and valued and recognized and rewarded for their efforts. We work with enthusiasm to achieve sustainable improvements in both personal and organisational performance. From FY22, we launched our monthly ‘team talk’ communication process, important company -wide and local information is cascaded and shared with all our colleagues. Ensuring we communicate with all colleagues and have open two-way communication is crucial for us. The ‘team talk’ includes business headlines, key messages from our company’s MD and business units and functions and allows each manager to build in content relevant to their site / dept / team for further team building, continuous improvement and facilitating open two-way communication. The ‘team talk’ not only allows for consistent communication throughout the company at all levels, but also serves as a supporting tool for managers to encourage active communication within their teams, and for team members to ask questions, share ideas and suggestions to make Yusen the best employer we can be.
Team Talks are held each month following monthly MD Teams Briefings.
MD briefings are an important communication opportunityto share monthly performance highlights, any issues and the desire for growth. The MD is available to reply directly to questions from colleagues.
31
September 2023
Page 1 Page 2 Page 3 Page 4 Page 5 Page 6 Page 7 Page 8 Page 9 Page 10 Page 11 Page 12 Page 13 Page 14 Page 15 Page 16 Page 17 Page 18 Page 19 Page 20 Page 21 Page 22 Page 23 Page 24 Page 25 Page 26 Page 27 Page 28 Page 29 Page 30 Page 31 Page 32 Page 33 Page 34 Page 35 Page 36 Page 37 Page 38 Page 39 Page 40 Page 41 Page 42 Page 43 Page 44 Page 45 Page 46 Page 47 Page 48 Page 49 Page 50 Page 51 Page 52 Page 53 Page 54 Page 55 Page 56 Page 57 Page 58 Page 59 Page 60 Page 61 Page 62 Page 63 Page 64 Page 65 Page 66 Page 67 Page 68Made with FlippingBook Publishing Software