Yusen Logistics (UK) Sustainability Report 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.

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September 2023

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