Materiality
Yokorei sets long-term targets and determines the KPI to achieve them based on the needs of stakeholders in relation to the materiality themes.
Climate change (Global warming)
- Risk Decrease in fish catches and production volume due to changes in the natural environment, outbreaks of disease or insect pests
- Risk Increase in procurement cost of farmed fish and livestock due to rise in feed costs (plants, animals)
- Risk Increase in cost of introducing decarbonization and energy-saving equipment
- Risk Increase in cost of electricity to operate refrigerated warehouses due to introduction of carbon pricing
- Risk Increase in cost of electricity to operate refrigerated warehouses due to higher temperatures
- Opportunity Rise in demand for temperature-controlled storage of food items due to higher average temperatures
- Opportunity Rise in demand for eco-friendly refrigerated warehouses and logistics services
- Opportunity Rise in demand for eco-friendly products (such as marine products with eco-label certification)
- Opportunity Decrease in energy costs from use of energy-efficient equipment
Principal Measures
- Strengthen handling of eco-friendly products (ASC and MSC certified products)
- Diversification of suppliers in Food Sales Business
- Strengthen cooperation with producers to ensure stable procurement
- Build and operate eco-friendly refrigerated warehouses that contribute to decarbonization
- Proactive introduction of energy-efficient equipment to reduce GHG emissions
- Installation of rooftop solar panels to increase generation of renewable energy
- Switch to renewable energy
- Switch to natural refrigerants to reduce GHG emissions
- Curb power consumption utilizing system to make power consumption visible (BEMS)
- Implement measures for greater logistics efficiency in cooperation with cargo companies, and reduce GHG emissions
Natural disasters
- Risk Increase in prices for marine, livestock and agricultural products due to declines in catches and production yields, and higher procurement costs for alternative products
- Risk Decrease in sales from suspension of refrigerated warehouse operations or supply chain disruptions
- Risk Increase in repair costs for damaged facilities and equipment
- Opportunity Increase in demand for disaster-resistant facilities
Principal Measures
- Examine and revise BCP strategies on ongoing basis
- Construct natural disaster-resistant refrigerated warehouses (logistics centers to support BCP)
- Develop aquaculture business in countries and areas with few natural disasters
- Diversify supply chains and develop relationships with new suppliers
Economic situation and the business environment
- Risk Slowdown in cargo movements and decline in storage volume due to markets adjusting to supply and demand
- Risk Increase in product procurement costs due to soaring prices of raw materials and fuel
- Risk Increase in construction costs for refrigerated warehouses due to rise in prices
- Risk Intensification of competition due to companies from other industries entering the temperature-controlled logistics market
- Risk Deterioration in earnings due to sudden exchange rate fluctuations
- Opportunity Increase in food storage demand of highly processed foods such as frozen food
- Opportunity Rising demand for facilities with exceptional logistics efficiency due to increase in e-commerce
Principal Measures
- Build refrigerated warehouses
- Accumulate information
- Acquire certification under the Act on Advancement of Integration and Streamlining of Distribution Business
- Provide consolidated, multi-distribution logistics services
- Expand customs clearance business
- Foreign exchange contract trading
- Price adjustments to pass on rising costs
- Diversification of suppliers and customers, revision of product balance
Securing human resources
- Risk Difficulties continuing refrigerated warehouse business due to shortage of warehouse workers
- Risk Loss of workers due to a lack of measures to provide an appropriate work environment or make improvements
- Risk Increase in costs due to intensification of competition to hire and retain workers as a result of Japan’s decreasing birthrate and aging population, and population decline
Principal Measures
- Proactively introduce systems for labor-savings and automation
- Support creation of workplaces comfortable for women and many types of employees
- Strengthen internal education system
- Promote DX
- Enhance name recognition through branding
- Revise the personnel system to enhance job satisfaction and strengthen human capital
Product, service quality and safety
- Risk Decline in consumer trust due to customer complaints regarding product or service quality
- Opportunity Gain trust in Yokorei quality and brand by enhancing customer satisfaction
- Opportunity Gain trust by providing appropriate disclosure to stakeholders
Principal Measures
- Food defense measures for all refrigerated warehouses
- Improve quality of storage of frozen foods through employee operations
- Management through the Quality Control Department
- Strengthen education and training for quality control
- Strengthen relationships with contracted manufacturers
- Timely and appropriate disclosure
Harmony with the Global Environment
Yokorei’s Response
- Lessen the environmental load by operating environment-friendly refrigerated warehouses
- Reduce GHG emissions through cooperation with other companies
- Establish an environment-conscious supply chain
Long-Term Targets Relative to Materiality
- Enhance energy efficiency to reduce energy consumption, and increase use of renewable energy
- Facilitate shift to natural refrigerants to reduce GHG emissions
- Appropriate processing and recycling of waste to lessen environmental load
- Protect marine ecosystems
FY9/25 Measures
- Complete construction of three environment-friendly refrigerated warehouses (natural refrigerants used, increased solar power generating capacity)
- Replace the refrigeration equipment at one existing refrigerated warehouse with a natural refrigerant unit
- Install solar panels on two existing refrigerated warehouses
- Continue handling ASC/MSC certified marine products
KPI
- Natural refrigerant implementation rate
- Solar power generation capacity and output
- GHG emissions per storage capacity
- Procurement amount of ASC/MSC certified marine products
Create a Rewarding Workplace
Yokorei’s Response
- Change consciousness (promote open communication and emphasize dialogue)
- Implement measures for labor savings
- Provide a work environment suited to employee diversity
- Secure global human resources
- Strengthen cooperation with other companies
Long-Term Targets Relative to Materiality
- Strengthen measures to cope with labor shortage
- Provide a comfortable work environment
- Implement measures to secure employee diversity, including promoting active roles for women
- Ensure and ingrain occupational health and safety
FY9/25 Measures
- “Job satisfaction survey” conducted
- Continue progress with DX (nationwide implementation of RPA)
- Promotion of paperless operations (online issuing of digitized forms, etc.)
- Continue to promote smart offices
- Establish an external contact point for internal reporting
KPI
- Proportion of employees with job satisfaction
- Proportion of women in career-track positions
- Proportion of women in management positions
- Employment ratio of persons with disabilities
- Number and proportion of employees taking child-care leave, and return rate
- Number of employees completing trainings, and cumulative hours
Provide Better Quality and Service
Yokorei’s Response
- Deepen Yokorei quality
- Strengthen education and training
- Invest in IT and robotics
- Develop original products and establish sales channels
- Provide services to solve customers’ supply chain management issues
- Strengthen collaboration with other companies
Long-Term Targets Relative to Materiality
- Provide stable supply of food
- Reduce food waste
- Establish a structure to provide safe products and services
FY9/25 Measures
- Strengthen human resources development for food sales professionals
- Complete two fully automated warehouses
- Strengthen transfer and transport initiatives in cooperation with affiliated companies (adapt to regulatory changes for truck drivers in 2024)
- Expand the scope of the customs clearance business
KPI
- Number of automation systems installed
Develop together with Communities
Yokorei’s Response
- Construction of refrigerated warehouses throughout Japan and in the ASEAN region
- Social contribution program through donations and sponsorships
Long-Term Targets Relative to Materiality
- Support revitalization of local industries
- Establish a cooperative framework for environmentally and socially conscious supply chains overall
FY9/25 Measures
- Build new refrigerated warehouses
- Social contribution based on business activities (provision of foodstuffs, storage space, etc.)
- Continuation of sponsorship activities
KPI
- Number of donations and amount
Strengthen the Business Foundation and Ensure Soundness
Yokorei’s Response
- Organizational reform (fast sharing of information and strengthening of collaborations)
- Reform of the personnel system
- Improve capital efficiency and maintain financial soundness
- Strengthen monitoring of overseas risks
- Practice health and productivity management
- Expand and improve disclosure
Long-Term Targets Relative to Materiality
- Enhance corporate governance
- Establish BCP structures (natural disaster response, data management)
- Ensure legal and regulatory compliance
- Strengthen initiatives for sustainability and provide proactive disclosure
FY9/25 Measures
- Review and strengthening of BCP measures
- Establish the Risk Management Department
- Establish the Risk Management Committee
- Obtain certification as a 2025 Health & Productivity Management Outstanding Organization (Large Enterprise Category)
- Further enhancement of disclosure
KPI
- Credit rating (Japan Credit Rating Agency)
- Capital ratio
- ESG evaluation organization score