Human Resource Management

Basic Approach

Sumitomo Warehouse believes that all officers and employees who conduct business activities being able to exhibit their own abilities and skills as they healthily and vibrantly engage in work will lead to the continuous development of the Company as a whole and the realization of a sustainable society.

In addition to changes in the business environment surrounding the Company such as rising costs set against the backdrop of the recent labor shortage, expansion of digital transformation initiatives and heightened awareness of ESG, as the needs directed toward the Company become more complex, it is our view that it is important to secure and develop human resources with diverse approaches, knowledge and skills.

For this reason, the Company provides a variety of education and training opportunities, and has established measures supporting the activities of each employee.

Furthermore, under the concept of “Connecting people” in the Moving Forward to 2030 long-term vision, the Company aims to further enhance development of our invaluable human resources, and address social changes, including the declining birth rate and aging population, adopt flexible and diverse work styles, and continue to be a company that attracts people to it.

Required Human Resource Form, Human Resource Training and Skill Development

Required human resource form

• People with the spirit of challenge thinking for themselves and acting with a sense of speed
• People who have the ability to think things through in order to provide high-quality logistics services, such as having sharp insight seeing through to the essence of a problem or flexible imagination not constrained by existing frameworks
• People with a sense of mission who sincerely engage in overcoming issues

Human resource training and skill development

The Company has established diverse training systems with consideration for the career advancement of each employee based on the belief that “growth of employees leads to growth of the company, and we would like to foster better company personnel for the development of society.”

Training for new employees includes one week of lecture and a six-month practical training period in which the employees receive guidance from more senior employees assigned as their training officers to provide support enabling them to get off to a start free of concern as a member of society. Many new employees are assigned to sites such as warehouses and harbors, and basically begin with on-the-job training provided by their superiors and more senior employees in the workplace. Following that, in order to supplement the on-the-job training, tiered training is provided according to seniority and position to provide an understanding of the current condition of the Company, expand knowledge and provide motivation to create a vibrant corporate structure and reform organizational culture. Training for employees at a general manager level is treated as a place for deeper thinking on the state of the business from a long-term perspective by fostering a management perspective with a view of the entire Group through discussion.

Furthermore, training through e-learning to supplement tiered training, language training and various business training providing certification and improving skills required in business such as bookkeeping, customs clearing agent, real estate transaction agent and international air freight handler certification are implemented to develop human resources capable of executing business with a broad perspective.

Development of global human resources (overseas training)

The Group would like to provide the detailed logistics quality developed in Japan overseas as well. Moreover, a global logistics strategy and the proposal of more innovative options are also essential for ensuring the sustainability of customers’ supply chains. In the Moving Forward to 2030 long-term vision, the Company states that it will provide multifaceted support for the overseas expansion of customers, further develop global logistics and increase operational capacity, recognizing that the development of global human resources is essential.

In order to achieve this, the Company encourages employees to obtain understanding of different cultures, communication skills and overseas logistics knowledge and skills required for working overseas through two-year overseas posting trainings and opportunities for overseas training, etc. to gain a deeper understanding of local logistics conditions.

Training System

Participation by a Diverse Range of Human Resources and the Active Participation of Women

To respond to the diverse needs in society and the trend of globalization, it is essential for companies to ensure diversity in its human resources.

The Company strives to ensure hiring is equitable, fair and transparent, and implements hiring practices in accordance with the Act on Securing, etc. of Equal Opportunity and Treatment between Men and Women in Employment, the Employment Measures Act and the Act for Employment Promotion, etc. of Youth.We also establish internal regulations to prevent unreasonable disparities in treatment based on employment type, in accordance with the 'Equal Pay for Equal Work Guidelines' issued by the Ministry of Health, Labour and Welfare.

Above all, women’s career advancement is one of the most pressing issues. The Company has formulated the General Employer Action Plan as follows and implemented a variety of measures, and has been working on the establishment of a system that encourages female employees to further exercise their abilities.

For activity by diverse human resources (re-employment after mandatory retirement)

As we enter the era of a hundred-year lifespan, the number of elderly people who want to work is increasing. The Company has rehired employees who wish to continue working after mandatory employment since before the relevant legislation was established. At present, the Company and Group companies have systems for re-employment of employees who wish to do so until the age of 65 under certain conditions. This is also a valuable system for transferring the knowledge of veteran employees to junior employees.

Working with disability consultation desk

The Company enables employees to consult and file complaints to the departments responsible within the Company (Personnel Section No.1, General Affairs Department and management sections in branch offices) by telephone or e-mail when having a disability may be an impediment to company life. The privacy of the people seeking consultation, such as the content of the consultation, is protected, and people are never treated disadvantageously due to consultation.

Support for participation by women

When hiring new graduates, Sumitomo Warehouse implements “Career Live” to provide deeper understanding of how easy it is for women to work in the Company and how work is done. The purpose of this is to clarify the image of the workplace and the work through gatherings of the Company’s junior employees and prospective employees.

However, there are still few female employees who have reached the age and career level to obtain management positions, and the lack of role models is an issue. In order to broaden horizons and provide contact with a variety of approaches, we will proceed with the development of women working in management positions through participation in training outside the Company.
Furthermore, due to the importance of men’s participation in raising children for expanding opportunities for women, male employees with children are encouraged to participate in raising them.

General Employer Action Plan based on the Act on Promotion of Women's Participation and Advancement in the Workplace

Respect for Human Rights

Sumitomo Warehouse established the Sumitomo Warehouse Group Human Rights Policy in 2023, and respects human rights in accordance with international standards. In 2024, we also signed the United Nations Global Compact, and support and respect the “freedom of association and the right to collective bargaining,” “prohibition of forced labor,” “prohibition of child labor” and “elimination of discrimination,” and comply with the laws and regulations of the countries and regions where we conduct our business activities. Furthermore, the Sumitomo Warehouse Group Business Conduct Guidelines set forth “Respect for Human Rights and the Dignity of the Individual” and explicitly state that we will not discriminate based on race, national origin, beliefs, sex, gender, age, religion, social status, or physical or mental disability.

Establishment of the Human Rights Subcommittee (Management System)

At Sumitomo Warehouse, the Human Rights Subcommittee, a subcommittee of the Sustainability Committee chaired by the President, formulates measures for the Group’s human rights, checks the progress of these measures, and shares information based on instructions from the Sustainability Committee. The Human Rights Subcommittee’s activity plan is implemented after approval by the Sustainability Committee, and the details are reported to the Board of Directors. The progress of human rights-related issues and targets is confirmed every quarter, and a report is made to the Sustainability Committee and the Board of Directors at least once a year, with management of human rights being carried out by receiving necessary instructions from the Board of Directors through the Sustainability Committee.

Initiatives to Respect Human Rights

Human rights due diligence

Sumitomo Warehouse is promoting human rights due diligence based on the Sumitomo Warehouse Group Human Rights Policy.

In FY2024, in order to identify and assess the risk of human rights violations in the Group, the Company examined the human rights violation risks that could be expected in each business field, and also conducted an internal questionnaire survey on human rights violation risks and exchanged opinions with labor unions and human rights experts. We also explained our human rights initiatives to our main contractors and suppliers.

Human Rights Education

In addition to providing training on human rights, including the Sumitomo Warehouse Group Human Rights Policy, to employees during training when they join the Company, we are also working to raise awareness of human rights by posting and disseminating information on “Preventing Harassment in the Workplace” on the Company’s intranet. In FY2024, we conducted human rights training (e-learning) for employees of the Company and domestic Group companies.

Participation in Initiatives

Sumitomo Warehouse has signed the United Nations Global Compact (UNGC) and is a member of Global Compact Network Japan (GCNJ), which is made up of Japanese companies and other organizations that have signed the UNGC.

Establishment of a Human Rights Consultation and Reporting Contact

In the event of a problem related to human rights, including harassment, consultations or complaints can be filed with the relevant department within the company (Personnel Section I, General Affairs Department and management sections in branch offices) or the helpline (internal contact point and external contact point (law firm)) by telephone or e-mail. The privacy of the person seeking consultation is protected, and they are never subject to disadvantageous treatment on the grounds of seeking consultation. Furthermore, anonymous reports can be made to the external contact point.

Initiatives to Address Labor Issues

Mechanism for employee representatives to be involved in company management

Sumitomo Warehouse has set up a forum for labor-management discussions as a mechanism for dialogue between employee representatives and company management. Labor and management are working together to achieve an appropriate working environment and working conditions.

Reduction of excessive labor and overtime work

Sumitomo Warehouse is committed to reducing excessive working hours and overtime, and in addition to complying with laws and regulations on working hours and overtime, we have also established a policy to reduce overtime in our General Employer Action Plan. We are working to reduce excessive and overtime work, including the conclusion of an Article 36 Agreement through labor-management discussions on working hours, guidance through interviews with an occupational physician for employees who have worked a certain amount of overtime, and ensuring that all lights are turned off once a week.

Support for a living wage

Sumitomo Warehouse not only complies with labor laws and regulations on minimum wages and laws and regulations on their payment, but also pays a living wage that allows employees to maintain a certain standard of living that exceeds this. The average annual salary at Sumitomo Warehouse in FY2023 is 7.9 million yen.

Prevention of Child Labor and Forced Labor (Overseas)

The Group operates a global business, and confirms that risks such as that of child labor are low when selecting partner companies overseas, with Group employees directly observing such companies as needed when commencing transactions.

Initiatives Aimed at a Fulfilling Work Environment

Human capital is a vital management resource for the Company because its principal business is logistics service.

We believe dialog with employees is very important for raising employee motivation, establishing a fulfilling workplace environment and helping to create a rich lifestyle.

For this reason, the Company endeavors to understand employee fulfillment and requirements through employee awareness surveys and labor-management consultations. We will continue to make an effort to strengthen management of human capital and create a fulfilling organizational culture through dialog with employees.