The Group has identified "Establish a responsible supply chain in which human rights are respected" as a material issue, and implemented initiatives to build a responsible supply chain that respects human rights, such as establishing a human rights policy and evaluating human rights risk.

Under the corporate philosophy "to deliver high-quality services that will help make the world a better place for people and nature for generations to come", and taking into consideration the United Nations Guiding Principles on Business and Human Rights and the Based on the OECD Guidelines for Multinational Enterprises, the United Nations Global Compact, the International Labour Organization (ILO) Declaration on Fundamental Principles and Rights at Work, and the Universal Declaration of Human Rights, we have formulated our human rights policy in April 2023.

We have positioned this policy as the highest policy related to human rights, and will continue to promote initiatives related to human rights.

This policy has formulated after obtaining approval at the Board of Executive Officers' Meeting after receiving advice from an external specialized organization on human rights.

We also use the Group Code of Conduct as a manual, which includes "Respect for human rights" in the basic code of conduct to further deepen understanding of respect for human rights, and have been conducting employee training through e-learning, and training by rank for new employees, experienced workers, and for new assistant managers and new managers. In FY2023, we conducted human rights training for 182 officers of our Group (domestic and overseas). In addition, 299 full-time employees of the Company and its domestic Group companies participated in rank-based training and the like that included human rights-related topics.

Furthermore, in "Group Code of Conduct Month" held every October, the President issued a message on "respecting human rights and adhering to compliance" and we also conducted compliance training in the workplace using case studies incorporating content on human rights within LOGISTEED and its (domestic) group companies. In FY2023, 22,438 employees participated in workplace training.

The Group conducts human rights impact assessments via third-party institutions to identify risks and issues, and implements measures to build a business foundation that respects human rights. Specific steps toward human rights impact assessments and responses are as follows.

Since FY2022, through RightsDD Limited. and with the support of the Global Alliance for Sustainable Supply Chain, which possesses deep insight into human rights issues, we have been conducting global desktop research on our overall efforts to date as well as on the logistics industry as a whole to identify and outline global human rights issues common to all industries and those of particular importance in the logistics industry.

Based on the results of Step 1, we conducted fact-finding surveys on forced labor under the technical intern training program, which has been identified as a high-priority risk in Japan, at the domestic group companies that employ the largest number of technical intern trainees. The results of these surveys, which included training site surveys and interviews with technical intern trainees and the organizations that supervise them, confirmed that the surveyed group companies are implementing appropriate management.

Next, with the desktop research implementation rate as a FY2023 KPI, we conducted risk assessments for 81 domestic and overseas consolidated subsidiaries (as of April 2023), from five perspectives: geography, products, industry, employment type, and laws and regulations. (Implementation rate: 100%) While particularly emphasizing the perspectives of geography and products from among these, we implemented individual SAQs at the 27 companies (33%) that were identified as high-risk overall, and based on the results, we will continue to implement measures tailored to the risks and issues faced by each company.

We will continue to work with supervisory organizations to ensure appropriate training and to maintain and improve working environments, and in the future, we will continue to implement measures to establish a human rights due diligence promotion system and to strengthen the foundation needed to ensure a responsible supply chain that respects human rights.

With the establishment of the "LOGISTEED Group Human Rights Policy" in April 2023, the Group updated part of the "My Declaration of Human Rights" made in July 2021.

"My Declaration of Human Rights" is an initiative to realize a society in which everyone respects human rights by having companies, organizations, and individuals who participate in the "My Declaration of Human Rights" initiative administered by the Ministry of Justice declared that they will take actions respecting human rights. The "LOGISTEED Group Human Rights Policy" is the Group's highest policy on human rights, and the Group has positioned it as the premise for "respect for human rights" set forth in the fundamental guideline for action in the "Group Code of Conduct" established in 2016. We will take this update to "My Declaration of Human Rights" as an opportunity to further deepen our understanding of its intent of respect for human rights and business respecting human rights.

We are aware that harassment is increasing in workplaces, schools, and other places, and that it is becoming a social problem. To promote understanding of what harassment is, our group has hung posters in Japan to raise awareness of harassment prevention at offices. We have also set up a harassment consultation desk to respond to employee inquiries and otherwise promote harassment-free workplaces. In FY2021, we conducted video training on the prevention of harassment for all managers of domestic group companies and worked to strengthen measures against harassment, which has become an issue of increasing occurrence in companies. In addition, measures to prevent a recurrence are being taken at each business site where an incident has been confirmed.

The Group aims to be an organization where diverse human resources of different "gender," "race," "religion," "age," "disability," "sexual/religious/political orientation," "nationality," "social/cultural background" having various attributes, values, and backgrounds can fully demonstrate their potential and play an active role. In a society where it is difficult to predict the future, we will promote diversity and inclusion management so that diverse human resources can play an even more active role in the creation of added value and achieve growth of the company through contributions to society.

In order to raise awareness of human rights, harassment, and diversity, the Group provides repeated opportunities for training, with the goal of ensuring that all employees attend human rights training at least once a year. We continue to achieve this goal through the continuous implementation of educational measures focused on the key themes of each fiscal year, in addition to rank-based training and Code of Conduct Month^*.

The Company respects freedom of association, the right to organize, and the right to collective bargaining as workers' rights, and the Group Code of Conduct clearly identifies acts that hinder workers' freedom of association and right to collective bargaining as examples of prohibited conduct.

In addition, in an effort to improve the working environment through dialog between labor and management, the Company has also established a labor-management council and regularly organizes meetings to serve as venues for explaining important management matters to the labor union and for holding discussions between labor and management on benefits, wages, and other matters.

The Group strives to ensure appropriate working conditions by guaranteeing the minimum wage in the Group Code of Conduct and stipulating compliance with working hour limitations and provisions on equal pay for equal work as set forth in the laws and regulations of each country and region.

In addition, in accordance with established rules, all employees are treated fairly and appropriately based on the results of individual evaluations, and wage levels are determined by reflecting one's roles, abilities, and personal results, as well as the content of labor-management agreements.

The Group seeks to strengthen human resource capability through securing of human resources according to management strategy, training and skill development, and the establishment of the foundation of a personnel system.

Toward the "LOGISTEED2030," we strive to actively secure diverse human resources who can contribute to our business with skills for global business and DX and other expertise, and promote initiatives to support their early participation.

In addition to adopting a direct recruiting approach, we also offer internship programs and hold roundtable discussions with employees to provide those who were not interested in the logistics industry with opportunities to know about and become interested in Logistics DX. In FY2023, we held nine industry research events from summer to winter and six industry-specific events in winter, with over 300 students participating.

We are focusing on securing human resources who have practical language skill as well as understanding of the culture and business environment of relevant countries and can work together toward globalization to enhance and expand overseas business. We also actively hire foreign new graduates to deepen understanding of other employees around them about foreign cultures and also to promote globalization.

We provide trainings on the LOGISTEED WAY, safety, and legal compliance to young employees, and mid-career employees.

We conduct training aimed at making careers more relevant to the individual. In FY2023, career training was provided for managers and young employees in rank-based training programs, with 353 employees taking part. Under the mentor system, in addition to supervisors in assigned departments, senior employees also serve as mentors and counselors to support young employees in their career development. Through dialogue with mentors with diverse work experience, young employees have the opportunity to broaden their perspectives and deepen their understanding of careers in our group.

We conduct surveys on young employees to measure their awareness of participating in the organizations they belong to and improving their productivity, in order to use the results to give advice to their supervisors on management. We also strive to improve the employee retention rate by introducing a mentoring program and having career development interviews on a regular basis.

The Group is engaged in supporting active skill development of each and every employee. We organize the skills required for each role and key position, and provide education by rank, in addition to systematically providing specialized education in areas such as logistics site management and logistics technology, offering educational opportunities according to the steps of growth of employees. By periodically assessing skills, we visualize the gap between individuals' actual and desired skill levels, and provide an environment enabling them to participate in educational programs according to their respective development themes.

Furthermore, we provide development management support programs for managers, and are working to raise the level of the skill development environment within the workplace.

We have established a groupwide educational system, and conduct practical and specialized training for all employees. In addition to training such as training by rank, training to strengthen on-site capabilities and manager training, we have independently developed training for all employees aimed at improving the basic skills of all employees and promoting communication and training for core personnel handling 3PL operations, and conduct human resource development with a view to further strengthening our operating base. Since FY2022, in addition to conventional training for quickly gaining specialized knowledge required in our main business, we have also been implementing training measures for human resources with DX skills and human resources with global skills as priority themes required for the realization of the Mid-term Management Plan "LOGISTEED 2024."

We have been providing career training, in a primarily rank-based format, since FY2019 in order to aid employees in developing their own careers. In addition, we enhance skills training for career development via a variety of educational programs, with some focusing on general business skills and others designed to impart our business-specific specialized skills. (Number of attendees in skills training in FY2023: 18,998 (total attendees)/ Rate of attendees for domestic group employees(11,256): 168.7%)

In order to secure human resources with DX skills to handle the creation of new businesses utilizing IT, we are improving DX education in addition to existing training systems. Based on the results of a skills survey (IT literacy x IT work utilization) of employees, we are developing educational measures tailored to the level of each employee. Specifically, for those who are working to improve their IT literacy, we provide e-learning courses on "DX mindset training" for learning basic knowledge on DX, and for those who are working to improve their IT business application level, we also provide specialized training such as "transformation mindset development training" encouraging transformation (X) and "training to strengthen DX technical skills" for the purpose of strengthening practical DX skills.

We offer programs including a global communication education and an overseas business training program to develop human resources who think on a global scale, have a high degree of expertise and contribute to business by transcending differences in culture or values.

Trainees who have completed one-year training are required to report in English on issues they faced regarding the theme they addressed, the improvement recommendations implemented and the result, proposals to the Company based on their local experience, and their future action plan. Trainees also exchange their opinions each other. The number of countries and regions to which young employees were sent under the overseas training program in the last five years reached 15.

We have established the "Global Faculty" within the company for the purpose of developing human resources with global skills" capable of globally leading business by understanding the diverse values of employees each country and region and getting them involved. The Global Faculty has programs for developing personnel posted overseas according to their level (assistant manager, manager, general manager) and is aimed at developing human resources capable of working in each position including the management level of overseas local subsidiaries.

In addition to establishing the "Global Faculty" for the development of employees' global mindset, we provide assistance for English proficiency test expenses and voluntary programs for developing practical communication skills using English including reading, listening and writing, providing systems and opportunities encouraging autonomous behavior.

As the expected roles of employees are diversifying, we support independent career development.

We have been promoting the implementation of career design training as a support program for activating communication between superiors and subordinates, with the aim of instilling career design in each workplace.

In addition, as one support environment, we have offered about 100 correspondence courses to provide an environment where employees can acquire the universal skills required in each workplace in real time.

Furthermore, In FY2023, we introduced a system for employees of domestic group companies to take open courses outside the company to encourage the acquisition of skills necessary for individual issues based on the results of skills surveys, and 283 employees took these courses.

As the Group works to standardize the evaluation criteria, we are shifting, ahead of others, to the Group common "personnel system" applicable to managers in Japan in which we clarify roles, responsibilities, expectations, results, and required skills, placing "the right person in the right job" based on their ability and motivation. We will aim to create greater value for the Group as a whole by encouraging each employee to autonomously carry out their roles, have a challenging spirit and grow, as well as better reflecting their actions, processes, and results in evaluation and compensation in order to build their sense of satisfaction and accomplishment.

With a view to introducing the job-based personnel system, we are working to unify the criteria to establish organizations within the Group to enable flexible job rotation to place "the right person in the right job." We are also creating position profiles which clarify and stipulate roles to shift to a compensation system based on the evaluation criteria for the "position."

We are aiming to build a common "HR Visualization Platform" for both domestic and overseas groups, which will enable us to strategically develop and place human resources required for each "position" in a planned manner. This platform will support both employees and their supervisors in identifying gaps, thereby enhancing human resources capabilities through proactive career planning and supervisor support.

We are working to increase employee engagement and invigorate the organization through initiatives such as working-style reform and diversity and inclusion.

We are promoting the "working-style reform" through various initiatives to ensure employees can stay healthy, feel secure, and find their work rewarding, with an aim to increase the productivity of the organization as a whole and the corporate value through active participation of each and every employee.

We have been working on "VC activities" with the goals that "the Company continues to grow" and "employees find their work rewarding" as daily improvement activities to implement the "LOGISTEED WAY". We continue to improvement activities in a cycle in which employees come up with ideas on themes aimed at resolving various issues at each business site or department and systematically implement improvements.

We regularly hold workshop for generating improvement ideas by directly hearing the voices of employees working on-site. We are striving to improve work environment and operating process by sharing what they think is unnecessary or inefficient and exchanging ideas about how to improve them. In order to further cultivate the mindset of employees toward environmental activities, the "Green Action Workshop" on the theme of environmental protection held since FY2021 was also held in FY2022. We also held a workshop (Smart Work Design Workshop) as a new program on the theme of using digital technology to improve work efficiency. From FY2023, we are deploying new programs such as workshops on the theme of using digital technology to improve work efficiency and "communicative visual design training" to improve communication skills.

We provide various improvement education based on the self-developed "Improvement Handbook".

We are making various efforts such as preparing this in comic book format so that employees can learn enjoyably. We provide unique improvement education adopting Industrial Engineering (IE), etc. In FY2023, we implemented digital improvement ambassador education (leader development) and digital improvement power user education (developer training) to develop human resources for promoting digital improvements in work within the company.

We implement cross-departmental productivity reforms by making full use of digital tools such as RPA (Robotic Process Automation). We are promoting the introduction of digital tools from both top-down and bottom-up by sharing good examples of automation and improvement of efficiency of work utilizing various digital tools including RPA in places to share information such as executive meetings and on the company intranet. In addition, increased accessibility to examples of improvements in similar work has activated communication across departments, leading to further improvements in productivity.

We share excellent improvement cases within the Group and manage the progress of improvement initiatives using the dedicated system.

The VC Award is held once a year as a forum for the presentation and commendation of excellent cases of VC activities.

In FY2023, we held the "VC Award" in November and broadcast it online across regional and national boundaries. On the day of the event, more than 900 people, including the Company's officers and employees from Group companies, watched and participated, and if including those who watched the recording at a later date, 1,035 people participated in the awards. Among 66 improvement/excellent cases selected by Group companies and departments, four cases selected by a vote of 4,217 employees were elaborately presented.

The number of improvement initiatives of the entire our group proposed in FY2023 reached approximately 16,200.

In FY2023, we implemented various activities at group companies in addition to the following.

We comply with local laws and regulations in countries and regions where we operate to ensure appropriate working hours. In Japan, we ensure proper working hour management by using objective records such as PC logs and ID cards. Additionally, through the promotion of work style reform, we are working to reduce overtime hours and encourage the use of annual paid leave.
In addition, we are working to reduce employee working hours and improve productivity by improving the efficiency of administrative work using RPA (Robotic Process Automation) and other methods and by introducing AGVs and unmanned forklifts at logistics centers. In FY2023, we introduced the SSCV-Safety (safety operation management solution), which utilizes IoT in trucks, and are managing driving and tracking the physical condition of drivers in real time to reduce accidents and achieve efficient operation, leading to driver safety and working hours management.

For taking paid leave, we ensure that we comply with local laws and regulations in the countries and regions where we operate. In FY2023, in order to foster a workplace culture where it is easy to take paid leave, we carried out e-learning to promote the taking of leave for all employees of the Group in Japan, using a learning platform (event management system). And we also took measures to promote the taking of leave, such as continuing to share the status of leave-taking on a regular basis with the management departments of each business site.

We have introduced a teleworking system to enable employees to make the most of their abilities and improve their work productivity while harmony between work and personal lives, to ensure business continuity in the event of a disaster, and to enable flexible work styles to support the balancing of work with childrearing, nursing care, medical treatment and the like.

We are promoting the creation of a healthy and comfortable working environment by means such as the introduction of a smoke separation and air conditioning and ventilation system at logistics centers and sales offices across Japan.

We issued the Group Corporate Health Declaration in August 2022. Under the basic policy set forth for health and productivity management, we have established a system and are working on various measures.

Our group will implement various initiatives based on the concept of health and productivity management to realize a safe, healthy, and rewarding workplace.

Our occupational health staff, including public health nurses and other medical professionals, works in collaboration with the health insurance society (division of duties and coordination) to take a population approach^*1 by disseminating health topics (every month), and a high-risk approach^*2 by providing health guidance to those who have health problems.

We incorporate eye fundus examination and cancer screening into regular health checkups to ensure early detection and early treatment of illnesses.

Furthermore, we implemented workplace vaccinations for domestic Group employees and related parties to prevent the spread of COVID-19,with 10,190 people receiving vaccinations (first and second) in FY2021 and 6,633 people receiving vaccinations (third and fourth) in FY2022.

We have put in place a system in which industrial physicians are consulted about health by employees face-to-face and online during working hours, and as needed via e-mail. While utilizing external services, we have established a mental and physical health consultation desk for employees and their families, and provide support such as being able to receive advice from specialists.

We have established the Group Health Management Section, which is staffed by public health nurses and other dedicated staff to support the health promotion of our employees. In addition to providing consultation services to Group's employees regarding chronic illnesses, poor health, mental and physical health concerns, self-care, etc., monthly "Health Topics" are delivered on a dedicated intranet site to help improve health literacy by providing easy-to-understand information on how to live a healthy life. In this way, we work to enhance health management and health promotion support measures and strive to create a workplace where employees can work in good health and with peace.

Our group includes the following items in periodic health examinations to improve the health of employees, which exceed statutory requirements and lead to the corrective action against lifestyle-related diseases and the early detection and early treatment of cancer.

To ensure that each and every employee, the source of the Group's competitiveness, is able to display his or her abilities to the fullest, we promote the creation of a safe and healthy working environment where employees can work with peace of mind. Monthly Health and Safety Committee meetings are held at all domestic business offices to identify risks related to the health and safety of employees and discuss countermeasures. In particular, in regard to health, we monitor four items over time to serve as indicators for health risk assessments, and closely examine the correlation with the percentage of the number of sick days taken. We also provide rank-based training to deepen employees' understanding of occupational health and safety-related standards that are to be followed in the course of business, as well as diet, exercise, and sleep, which are important areas of knowledge for employees in managing their own health.

We ensure that all employees are covered by Health and Safety Committee activities, such as by holding committee meetings even at small-scale business offices that are not required to establish a Health and Safety Committee.

We conducted risk assessments for employees at all domestic business offices based on the following four indicators.
Every month, public health nurses distribute information on health topics (such as preventing adult diseases, stress management, and stopping smoking), and we are also continuously promoting the expansion of health guidance in collaboration with occupational physicians and others.

With the aim of creating a workplace where each and every employee can continue to work in good health and safety, we issued a health management declaration in 2022 and are promoting activities to promote the health of our employees, such as the promotion of mental health measures and the expansion of health guidance in collaboration with occupational physicians. As a result of these activities, LOGISTEED was certified as a "Health & Productivity Management Outstanding Organization (Large Corporation Category)" from 2023.

In order for the Group to contribute to society through its logistics business, we believe that the active participation of diverse human resources, including women and senior citizens, is an important initiative. In addition to developing systems and mechanisms that realize diverse ways of working, we are also promoting the development of a culture of diversity and inclusion mainly through education.

To realize sustainable growth, we need to develop strong relationship between employees and the Company and increase employee engagement. To increase employee engagement, it is imperative to deepen understanding of and spread the LOGISTEED WAY which shows the Group's role and the way to move forward and is the core of connections among employees. We will also conduct engagement surveys and address issues identified in the surveys to increase employee engagement and become a company where employees can keep working with enthusiasm.

To make the concept of the LOGISTEED WAY take root in employees' behaviors and judgment criteria, we hold workplace meetings and regular education, such as rank-based trainings and e-learning, and implement initiatives such as VC activities on an ongoing basis. In addition, in FY2023, we held dialogue sessions for the first time with overseas Group companies in Indonesia and Thailand, and we are working to disseminate the LOGISTEED WAY overseas as well.

We conduct an employee engagement survey annually for the purpose of invigorating the organization and increasing employee engagement. We analyze the survey results in detail, identify internal issues and take necessary actions to solve them. Overseas, the survey was conducted at some selected companies (11 companies) in FY2023, and it will be expanded to include major overseas Group companies in FY2024.

We analyze the results of the engagement survey over time, and we are working to revitalize the organization by going through the cycle of identifying issues, considering countermeasures, and implementing them in the areas of management, human resources, and the workplace.
In FY2023, the results of the survey were shared at management meetings such as the Board of Directors Meeting and Executive Committee Meeting, and discussion meetings were held for senior management to improve engagement. Issues were organized and improvement measures were considered, leading to company-wide improvement activities. Specific measures include holding dialogue sessions between senior management and employees, educational programs to deepen understanding of the LOGISTEED WAY among senior management, and training to strengthen management skills for managers.

The following is the data including Diversity and Job creation, Work-life balance and so on.