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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, international conflicts, 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

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 logistics providers. For this reason, our annual logistics RC plan includes measures such as audits, educations, worksite dialogues, and campaigns for the logistics providers 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) 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 providers , 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 auditAuditing DivisionLogistics Division
ScopeThe Mitsui Chemicals Logistics Division groups and logistics providers
DetailsLogistics 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.
FrequencyOnce 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

MetricScopeFY2023FY2024FY2030
(Medium to Long-term)
GoalsResultsGoalsGoals
Number of serious occupational injuries in logistics*1Mitsui Chemicals, Inc.0000
Number of major accidents in logistics*2Mitsui Chemicals, Inc.
0
0
00

*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 Company including across the supply chain. Included decision standard considering impact on the environment.

Environment

MetricScopeFY2023FY2024FY2030
(Medium to Long-term)
GoalsResultsGoalsGoals
GHG emissions reduction rate in logistics in JapanMitsui Chemicals, Inc.GHG emissions reduction rate:
1% per year
1.0%GHG emissions reduction rate:
1% per year
-10%
(compared to FY2020)
Data acquisition rate on GHG emissions from marine container transportation*3 in international logisticsMitsui Chemicals, Inc.Building a trade digital platform for on-demand GHG visualization

Real-time visualization of GHG

GHG visualization using BI tools100%
(FY2025)

*3 Marine container transportation:
Transportation projects arranged by the Mitsui Chemicals Logistics Division

Quality

MetricScopeFY2023FY2024FY2030
(Medium to Long-term)
GoalsResultsGoals*5Goals
Number of spillage problems in logistics*4Mitsui Chemicals, Inc.12 or less1515 or less11 or less
Incidence of spillage problems in logistics*4Mitsui Chemicals, Inc.
30 ppm or less
43 ppm
42 ppm or less

*4 Spillage problems in logistics:
Troubles with a significant impact on society and customers (complaints, accidents, etc.).

*5 Goals:
Goal for the fiscal year set at 90% or less of the average results for the past three years

In FY2023, we took measures to prevent the spread of COVID-19, and resumed our work to get a grasp of logistics worksites through troubleshooting, follow-ups, audits, worksite patrols, and dialogues. Although this had some effect on reducing problems, it was not enough to reach the target. Although deterioration of logistics environment continues unabated, we will push ahead with comprehensive worksite safety and quality control based on the "three actuals" principle and support for improvement of the work environment through promoting DX of operations, leading to the establishment of a safe and stable logistics system.