Mitsubishi Logistics Corporation

Against a backdrop of increasingly sophisticated and advanced cyberattacks and growing dependence on information systems due to the progress of DX, there is a risk that, in the event of an incident, the resulting system outages, business disruption, and information leakage could lead to loss of credibility and liability for damages. This could also spread to a decline in social trust as a critical infrastructure provider. In response, the company is building a zero-trust security model, conducting vulnerability assessments, regularly conducting incident response training based on IT-BCP, and providing support to group companies.

Intensifying competition for talent due to the shrinking labor force is making it difficult to secure necessary personnel, including at logistics sites, and growing concerns over treatment and working conditions may lead to employee turnover and difficulty in passing on technical skills and know-how. As a result, there are concerns over increased recruitment and training costs, disruption to business continuity, decline in operational quality and competitiveness, and delays in new business expansion. The company is working to strengthen recruitment capabilities, improve employee engagement, consider hiring foreign nationals, and reduce labor requirements through DX and AI utilization.

Large-scale earthquakes, tsunamis, volcanic eruptions, and wind and flood damage could cause casualties among employees and related parties, damage to facilities and equipment, and infrastructure damage, potentially interrupting or halting business operations. If recovery is delayed due to inadequate communication systems or procedures, this could lead to prolonged business interruption and a decline in sales and profits. The company is revising its manual for countermeasures against large-scale earthquakes and typhoons, reviewing the BCP of each department, office, and branch, examining countermeasures for a Mt. Fuji eruption, and supporting revisions at domestic group companies.

When operations become dependent on specific individuals or authority becomes concentrated, misconduct by officers and employees is more likely to occur and remain concealed, and delayed detection could allow the resulting damage to expand. Should misconduct occur, it could result in damage to company assets, sanctions and liability for damages due to legal violations, damage to brand image, and loss of business relationships leading to deteriorating earnings. The company is working to disseminate regulations and policies, conduct focused training on priority issues, identify risks through analysis of surveys and consultation content, and establish operational processes for correction and recurrence prevention when misconduct is discovered.

Multiple geopolitical tensions—including strained Japan-China relations, the prolonged Russian invasion of Ukraine, and the deteriorating situation in the Middle East along with the risk of a Strait of Hormuz blockade—may affect business operations through disruption of logistics networks, rising energy and transportation costs, and changes to supply chains. Concerns include deterioration in logistics service quality due to delays and increased costs, declining performance due to reduced volume handled, and impacts on ensuring the safety of overseas staff and expatriates. The company is reviewing contracts, manuals, and emergency response systems, examining responses to various risk scenarios, and strengthening the sharing of information from overseas.

Social demands for respect for human rights are growing both domestically and internationally, requiring responses across the entire value chain. Inadequate response could lead to loss of business relationships, decline in social credibility, and damage to brand value. The company is confirming the effectiveness of measures to reduce priority human rights risks in accordance with its roadmap, while also considering its policy for implementing human rights due diligence from fiscal 2027 onward.

Inadequate response to GHG emissions reduction poses a risk of declining evaluations from stakeholders. Delays in reduction efforts could worsen corporate value and profitability in both the short and medium-to-long term. The company is promoting GHG emissions reduction through measures such as converting lighting to LED, introducing high-efficiency air conditioning equipment, and expanding the creation and procurement of renewable energy.