Amid global changes in values and behavior, as well as increasing awareness of the need to reduce the burden of climate change on the environment, the “K” LINE Group considers sustainability management a key issue for enhancing corporate value over the medium to long term, and the Board of Directors engages in ongoing discusses on this topic.
By fiscal year 2025, the “K” LINE Group had established the Corporate Sustainability Management Committee and the GHG Reduction Strategy Committee, chaired by Representative Executive Officer, President & CEO. To further strengthen sustainability management, the group reorganized its sustainability governance structure starting in fiscal year 2026.As part of this reorganization, these two committees were replaced by the Sustainability Management Council and the Environment & Technology Initiatives Council.Together with the Geoeconomics Management Council and the Digital Technology Initiatives Council, both newly established in fiscal year 2026, these two councils form part of the Integrated Strategy Council framework.This framework serves as a complementary body supporting the groups responsible for functional strategies, with the aim of advancing business and functional strategies in a more integrated and efficient manner.It is responsible for continuously monitoring the external environment in a comprehensive manner and, based on the Group’s accumulated expertise and insights, identifying key strategic issues, options, priorities, and considerations for execution.
The Sustainability Management Council, chaired by the Senior Managing Representative Executive Officer, consists of the officers responsible for each material issue (key sustainability issue) identified by the “K” LINE Group, as well as the officers from relevant business divisions.It is responsible for formulating and reviewing the medium- to long-term policies, strategies, and key initiatives related to the promotion of sustainability management across the “K” LINE Group.
In addition, the Environment & Technology Initiatives Council has expanded upon the role of the former GHG Reduction Strategy Committee and is responsible for formulating short-, medium-, and long-term strategies and initiatives across the environmental and technology fields.It also reviews underlying assumptions on a regular basis and, determines the direction for updating strategies and initiatives and implementing additional measures.
<Organizational Structure until Fiscal Year 2025>
<Organizational Structure from Fiscal Year 2026 Onward>
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Committees |
Month |
Main agenda |
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Corporate Sustainability Management Committee (Number of meetings held: two） |
July |
・Revision of the Purchasing Policy and CSR Guidelines for Supply Chain |
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・Revision of the “K” LINE Environmental Vision 2050 Environmental Targets |
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・Updates on Environmental Regulations (IMO Mid-Term Measures and Internal System Development for EU-ETS FEM) |
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・KPIs Related to Material Issues: FY2024 Results and FY2025 Targets |
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December |
・Revision of Environmental Targets of the “K” LINE Environmental Vision 2050 |
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・Report on the Outcomes of the Extraordinary MEPC and ISWG-GHG 20 |
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・Progress Report on Preparations for Mandatory Sustainability Disclosure in Accordance with SSBJ Standards |
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・Progress Report on Sustainable Procurement Initiatives |
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・Setting of Internal Carbon Pricing for Investment Evaluation |
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Sustainability Sub-Committee (Number of meetings held: two) |
June |
Same agenda as the Corporate Sustainability Management Committee meeting held in July 2025 |
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December |
Same agenda as the Corporate Sustainability Management Committee meeting held in December 2025 |
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Environmental Sub-Committee (Number of meetings held: one) |
December |
・Results of environmental management system (EMS) internal audit |
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・Management review on the environmental management system |
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・Report on chronological changes in environmental impact (CO2 emission efficiency in vessels under “K” LINE’s operation) |
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・Report on chronological changes in environmental impact (total CO2 emissions from the entire “K” LINE Group) |
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・Report on Social Contribution Activities |
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・Overview of the MEPC 83 Extraordinary Session and Future Outlook |
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・Progress of EU-ETS and FuelEU Maritime setup |
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・“K” LINE Environmental Vision 2050: Revision of Environmental Targets |
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GHG Reduction Strategy Committee (Management Conference/ Functional Strategy Conference) *Environment/Technical Strategy Group (established in March 2025), responsible for this area (Number of meetings held: five) |
July to February |
・Decarbonization Trends |
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・Our Growth Strategy Leveraging Low-Carbon/Decarbonization Opportunities |
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・Environmental Technology Strategy |
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・Reconstruction of the Promotion Framework |
As a part of our efforts to raise awareness among officers and employees at the “K” LINE Group worldwide, we offered e-learning program on sustainability, covering human rights, environmental issues, sustainable procurement, etc., in FY2023.
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FY2023 |
|
|
Headquarters(all executives and employees) |
89.2% |
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Group companies in Japan(nominated employees, including persons in charge of sustainability) |
86.4% |
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Group companies overseas(nominated employees, including persons in charge of sustainability) |
93.1% |
