Message from President & CEO

Action on Sustainability So Far
The KWE Group Sustainability Committee, established in FY2020, has been leading initiatives on sustainability, including establishing the KWE Group Sustainability Basic Policy, conducting a materiality assessment, and setting KPIs from FY2021 onwards. Our corporate culture prioritizes a customer-first approach. It has been the foundation for addressing sustainability in the context of daily customer contact by our employees around the world, while at the same time we have moved ahead with prioritizing sustainability on an integrated, group-wide basis. In particular, the younger generation who carry the future of the KWE Group are now highly aware of the importance of sustainability and have a strong will to focus on sustainability with a sense of personal responsibility.
Our global corporate efforts in sustainability with a customer-first approach and on-site capabilities are leading to stronger competitive advantage and brand power, enabling continuing growth and increased corporate value.

Material Topic Initiatives:
Looking Back at FY2022 and Creating New Priorities in FY2023
Working in line with global standards is a continuing priority in our material topic initiatives.
Regarding our environmental initiatives, in FY2022 we successfully sourced 100% renewable energy for our sites across Japan with the purchase of Renewable Energy Certificate. These efforts significantly reduced our Scope 2 emissions.
And moving toward Scope 3 reductions, we have been increasing our participation in Sustainable Aviation Fuel (SAF) programs worldwide in our air freight business. We are also promoting container round use and matching systems in our sea freight business, expanding the use of hydrotreated vegetable oil (HVO) fuel for truck transport.
We will continue these efforts in FY2023 to reduce CO₂ emissions. KWE has set our FY2030 reduction targets for Scope 1 and 2 emissions and implemented a data tracking system to mark our progress. We are working toward becoming carbon neutral by 2050. At this time we are also looking at initiatives to target biodiversity, which is closely linked to decarbonization.
In the social pillar, for our material topic data security in FY2022 we focused on improving employee training in cyber-security. In FY2023 we will be conducting security assessments in line with the local requirements at our subsidiaries around the world.
For our material topic of diversity and equal opportunity, in FY2022 we drafted the global KWE Group Diversity and Equal Opportunity Policy and we implemented global employee training in human rights and equal opportunity. We also recommended that our male employees take childcare leave and expanded our continued education programs.
In FY2023 we will formally establish the KWE Group Diversity and Equal Opportunity Policy and increase disclosures related to human resource investments. For our material topic of social impacts in the supply chain, we prepared and rolled out vendor requirements last year. In 2023, we will work on setting up a framework for improving our human rights initiatives, such as formally establishing a human rights policy. For occupational safety and health, we established the KWE Group Occupational Safety and Health Policy and the KWE Group Occupational Safety and Health Regulations. These form the basis for our activity in FY2023 which includes setting up a new Safety and Health Management Center as a group-wide structure. In Japan, we will be announcing our Health and Productivity Management Declaration - Kintetsu World Express (non-consolidated), to pave the way for future health management initiatives.
For our governance initiatives and regarding the material topic of anti-corruption, we conducted unified group compliance training last year under the lead of our General Counsel. In FY2023, we will appoint a Head of Compliance and our global whistleblower hotline will launch.
In line with our Management Plan 2027, our vision to be a global top 10 solutions partner, and the drive to be a global brand born in Japan, we are following our business growth strategy and driving corporate sustainability. These efforts will ensure ongoing growth and increasing corporate value.
We ask for the continuing support of our stakeholders in these endeavors.

Nobutoshi Torii
Kintetsu World Express, Inc.
President & CEO