Logistics
Management System
Policy and Basic Approach
The Mitsui Chemicals Group Responsible Care Policy states that the Group implements activities designed to ensure safety, health, and quality, as well as protect the natural environment throughout the entire life cycle of its chemical products, including the logistics.
The environment surrounding the logistics industry is becoming even more challenging due to the increasing risk of disruptions to logistics networks caused by climate change, earthquakes, and other natural disasters, as well as a serious shortage of logistics labor. In this severe and dynamic social environment, the stable supply of our Group's products, which play a fundamental role in society, is not only our social responsibility but also our mission.
In VISION 2030, we defined the ideal state of our group's logistics in 2030 as "fulfilling our social responsibility as a shipper by ensuring safety, reducing environmental impact, and improving the logistics labor environment, and establishing a system that strongly supports business development and innovation through stable and competitive logistics."
The Group is working in collaboration with the supply chain to build a resilient logistics system that can respond flexibly to all environmental changes, mainly focusing on responsible care in logistics (Logistics RC) activities aimed at maintaining and improving the logistics environment, safety, and quality.
System and Responsible Officers
Under the supervision of the responsible officer for the Digital Transformation (DX) Sector, who oversees the Logistics Division, we are working to improve and promote logistics RC throughout the entire logistics supply chain, including at affiliates and partner companies.
Logistics RC Management System
The Logistics Division, as the department responsible for promoting logistics RC, sets goals for the fiscal year based on results up to the previous year (number of accidents, complaints, etc.), and establishes the annual Logistics RC plan. In order to ensure safe, environmentally sound, and quality logistics system, we believe it is important to collaborate with our logistics partners. For this reason, our annual logistics RC plan includes measures such as audits, educations, worksite dialogues, and campaigns for the logistics partners under our jurisdiction.
Progress in implementing the plan is checked at monthly meetings held by logistics RC promoters appointed from the departments in charge of logistics at the Head Office and each Works.
In addition, in order to horizontally deploy the Group's accumulated knowledge and experience throughout our global organization, we have established a Global Policy on logistics to prevent accidents during the transportation and storage of dangerous goods and to ensure transparency and prevent fraud in logistics management operations. We are also promoting penetration of the policy and its implementation in practice.
Furthermore, we regularly hold a Global Logistics Meeting with the heads of the logistics division of our overseas affiliates. The purpose is to share information on logistics issues and countermeasures at each site and to promote understanding of the company-wide policy toward a sustainable logistics supply chain.
Global Logistics Meeting held for the first time in four years, bringing together logistics managers from India, Singapore, and the U.S. (2023)
Monitoring
Monthly meetings of logistics RC promoters from the Head Office and each Works check the status of the Group's annual plan targets and monitor progress, and at the Responsible Care Committee meetings, logistics performance and plan progress are reported and opinions are exchanged.
The Logistics Division also conducts audits and worksite dialogues with logistics partners, and the results are shared at monthly meetings.
Internal Audit
The Logistics Division conducts logistics RC audits for each Mitsui Chemicals Group business site and logistics partner. *1
| Logistics RC audit | Auditing Division | Logistics Division |
|---|---|---|
| Scope | The Mitsui Chemicals Logistics Division groups and logistics partners | |
| Details | Logistics RC, including the correct and proper delivery of products to customers, is maintained and improved by checking and providing instructions on the management status of the logistics environment, safety, and quality based on onsite audit or document audit. | |
| Frequency | Once every one to three years (depending on size, business type, and management level of the audited organization). |
*1 The Internal Control Division, as the third line of risk management, conducts audits from an independent standpoint to ensure that logistics RC audits are properly carried out.
Goals and Results
Safety
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| Metric | Scope | FY2022 | FY2023 | FY2030 (Medium to Long-term) | ||
|---|---|---|---|---|---|---|
| Goals | Results | Level Achieved | Goals | Goals | ||
| Number of serious occupational injuries in logistics*1 | Mitsui Chemicals, Inc. | 0 | 0 | ◯ | 0 | 0 |
| Number of major accidents in logistics*2 | Mitsui Chemicals Group | 0
| 0
| ◯ | 0 | 0 |
*1 Serious occupational injuries in logistics:
Occupational injuries that fall under disability grades 1 to 7 and cause death, injury, or illness during a logistics activity in our premises. (This includes partners.)
*2 Major accident in logistics:
Major accident that occurred during logistics activities undertaken by the Mitsui Chemicals Group including across the supply chain. Included decision standard considering impact on the environment.
Environment
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| Metric | Scope | FY2022 | FY2023 | FY2030 (Medium to Long-term) | ||
|---|---|---|---|---|---|---|
| Goals | Results | Level Achieved | Goals | Goals | ||
| GHG emissions reduction rate in logistics in Japan | Mitsui Chemicals, Inc. | GHG emissions reduction rate: 1% per year | 0.11% | ✕ | GHG emissions reduction rate: 1% per year | -10% (compared to FY2020) |
| Data acquisition rate on GHG emissions from marine container transportation* in international logistics | Mitsui Chemicals, Inc. | Establish a method to calculate the GHG emissions from marine container transportation.
| Established measurement method
| ○ | Building a trade digital platform for on-demand GHG visualization | 100% (FY2025) |
*Marine container transportation:
Transportation projects arranged by the Mitsui Chemicals Logistics Division
Quality
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| Metric | Scope | FY2022 | FY2023 | FY2030 (Medium to Long-term) | ||
|---|---|---|---|---|---|---|
| Goals | Results | Level Achieved | Goals*4 | Goals | ||
| Number of spillage problems in logistics*3 | Mitsui Chemicals Group | 15 or less | 23 | ✕ | 12 or less | 11 or less |
| Incidence of spillage problems in logistics*3 | Mitsui Chemicals Group | 35 ppm or less
| 58 ppm
| ✕ | 30 ppm or less | ─ |
*3 Spillage problems in logistics:
Troubles with a significant impact on society and customers (complaints, accidents, etc.).
*4 Goals:
Goal for the fiscal year set at 90% or less of the average results for the past three years
In FY2022, in addition to changes in the environment surrounding logistics, the number of spillage problems increased due to confusion at logistics sites caused by the COVID-19 pandemic. We see this as largely due to our inability to fully grasp the situation at logistics sites, including troubleshooting, follow-up, and auditing, in order to prevent infection. In FY2023, we will actively engage in direct dialogue with logistics sites based on the "three actuals" principle (actual worksite, actual part, actual situation) to help improve the working environment, which will lead to trouble prevention.