Nippon Express

Nippon Express acknowledges the importance of climate change but has not set a long-term emissions reduction target. The company may not achieve its current target of 20% reduction in absolute scope 1 and 2 emissions by 2030 compared to 2013 due to the lack of a low-carbon transition plan. The company should set a comprehensive transition plan that includes verifiable and quantifiable key performance indicators and financial commitments towards decarbonisation.

Nippon Express does not disclose a policy governing its engagement with trade associations. It is a member of several business organisations in the logistics industry, such as Keidanren (the Japanese Business Federation). There is evidence of Keidanren lobbying against positive climate policies, although its rhetoric has recently shifted. The company can increase its credibility by implementing processes to review the climate stance of organisations and trade associations of which it is a member and withdrawing from associations that oppose climate policies.

Nippon Express has taken some actions aiming to reduce emissions from clients’ logistic processes. These activities include the promotion of modal shifts, such as switching from truck-based transport to railways and ships , joint deliveries and improved loading efficiency. The company can benefit from including these activities in a detailed low-carbon transition plan and setting clear incentives for its clients to support this transition.

Nippon Express has not announced long-term emissions reduction targets. However, it is planning to set targets in accordance with the Japanese government’s 2050 Carbon Neutral Declaration. The company has a consolidated group goal to reduce absolute scope 1 and 2 emissions by 20% by 2030 compared to 2013.

The company does not have a low-carbon transition plan. To achieve its medium-term target of 20% reduction in absolute scope 1 and 2 emissions as a consolidated group, it is developing railway containers to enable a modal shift and is purchasing low-emission vehicles.

Nippon Express is reducing emissions through promotion of modal shifts, joint deliveries and improved loading efficiency. In 2021, the company had a domestic fleet of 12,076 low-carbon vehicles (about 36% of its total fleet). Such vehicles include low-emission diesel, compressed natural gas (CNG), and hybrid and liquefied petroleum gas (LPG) trucks.

The company’s emissions intensity has been increasing since 2015, with a slight reduction in 2020. The company is required to reduce its emissions intensity by approximately 3.8% per year to align with its 1.5°C pathway. However, currently, its emissions intensity has been rising by 6.9% on average per year.

Nippon Express has positioned climate change as an issue for sustainable business growth and will include it in its future initiatives. The company implements some emissions reduction actions but states that achieving net-zero by 2050 will only be possible in cooperation with other companies . However, there is no evidence to show any cooperative activities initiated by Nippon Express.

No evidence was found of the company’s commitment to social dialogue or of the categories of stakeholders the company engages with on a just transition. Furthermore, no evidence was found to demonstrate the company’s ongoing social dialogue and meaningful engagement with affected stakeholders.

No evidence was found of the company undertaking low-carbon transition planning to mitigate the social impacts of the transition on workers, affected stakeholders and its business relationships. Additionally, no evidence was found to demonstrate the company’s engagement in social dialogue or engagement with stakeholders in its just transition planning.

No public commitment by the company was found stating its intention to create and support access to green and decent jobs as part of the low-carbon transition. Moreover, no evidence was found of the company’s action to promote these jobs in a way that ensures gender balance and inclusion of vulnerable groups. Additionally, no relevant disclosure was found of the company’s assessment of employment dislocation risks.

No public commitment by the company was found stating its intention to reskill and upskill workers displaced by the transition to a low-carbon economy. Additionally, no evidence was found that the company reskills and upskills workers in a way that ensures gender balance and inclusion of vulnerable groups.

No relevant disclosure was found to show if the company identifies impacts of the low-carbon transition on social protection for workers and affected stakeholders, nor how it contributes to social protection. Additionally, no evidence was found that the company expects its business relationships to contribute to the social protection of their workers and affected stakeholders.

No relevant disclosure was found to show how the company identifies any misalignment of its lobbying activities with policies and regulations that support the just transition, nor of the measures it takes to address misalignment. Furthermore, no evidence was found that the company lobbies for policies and regulations for green and decent job creation; retention, education and reskilling; and social protection for workers.

The company commits to respecting human rights. However, the company’s Charter of Conduct does not state a commitment to respect all of the ILO fundamental rights at work. Furthermore, no evidence was found within the company’s policy documents stating an expectation of its business relationships to respect the ILO fundamental rights at work. In addition, the company can strengthen its disclosure on its human rights due diligence process and engagement with affected stakeholders.

No evidence was found within the company’s policy documents regarding a commitment to worker health and safety. The company does disclose a target of equal retention rates for male and female employees by 2023. However, no evidence was found of a broader-level company commitment towards gender equality and women’s empowerment. While the company discloses the gender of its workforce by employee category, it can strengthen its disclosure on this subject, as well as on its living wage, working hours and collective bargaining practices.

No evidence was found of a company commitment to protect personal data of employees and customers, or of a global privacy statement regarding the collection, sharing and access to personal data. Furthermore, no evidence was found of the company’s global tax strategy, an anti-bribery and anti-corruption policy or a lobbying and political engagement policy.