Modal Shift Evolution Through Cooperative Transport Initiatives

Promoting eco-friendly logistics through modal shift and cooperative transportation

By improving our distribution routes, choosing low environmental impact transportation methods, and cooperating with our external partners, Kao is improving its efficiency as well as lessening its impact on the environment.

Optimizing efficiency through cooperative transport

In Japan alone, Kao transports about 2.4 billion consumer products annually. From early on, Kao has been working towards modal transfers in order to transport goods more efficiently while avoiding creating a negative impact on the environment.
“Modal shift” is effective in reducing CO2 emissions by shifting transportation to mass transport, such as from trucks to rail and ship. In 1995, Kao switched to a full-scale modal shift, and since then we have maintained a high modal shift usage rate. For our efforts in rail transport usage, the Japanese Ministry of Land, Infrastructure and Transport selected Kao as an Eco-Rail Mark certified company at the first award certification meeting in 2005. Kao will continue to strive to increase its modal shift rate in order to reduce its CO2 emissions from an ESG perspective.

Loading containers onto a ferry

●Eco-Rail Mark certification criteria

  1. Companies that transport their cargo using at least 15% rail transport on distances of 500 km or greater.
  2. Companies that transport over 15,000 metric tons (or 15 million ton-kilometers) of cargo by rail per year.

●Eco-Ship Mark certification criteria

  1. Companies, sites, or plants that use ship transport for 20% or more of their total cargo transports.
  2. Companies, sites, or plants that have increased their sea cargo transport volume (in ton-kilometers) by 10% or more compared to the previous year.
  3. Companies, sites, or plants that have reduced their CO2 emissions through modal transfer by 10% or more compared to land transport.

Transportation

Transportation

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