The Hakuhodo DY Group’s Response to Climate Change
The Hakuhodo DY Group endorses the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD). For scenario analysis, we have established the Environmental Management Subcommittee (the “Subcommittee”) under the Sustainability Committee (the “Committee”), which is chaired by the Representative Director & President, and the Hakuhodo DY Group Environmental Manager. The relevant divisions of the Company and Group companies participated in the Subcommittee to identify key risks and opportunities posed by climate change and to conduct quantitative financial assessments for the first time in fiscal 2022. We are promoting relevant information disclosure on a Groupwide basis in accordance with the recommended disclosure items determined by the Subcommittee.
Hakuhodo DY Group Environmental Policy and Environmental Management System
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1. Hakuhodo DY Group Environmental Policy
The Hakuhodo DY Group’s action guidelines include not only reducing the environmental burden at the office level but also supporting the implementation of environmental contribution activities that leverage collaborations with stakeholders and the creativity of individual employees. We advance environmental initiatives in accordance with our Basic Policy.
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2. Hakuhodo DY Group Environmental Management System
The Hakuhodo DY Group Sustainability Committee considers basic policies, themes, and specific measures related to the environment. Under the Committee, we have appointed the Hakuhodo DY Group Environmental Manager, who is responsible for environmental activities on a Groupwide basis. In addition, we have established an Environmental Management Subcommittee as a subordinate organization to regularly evaluate climate-related issues and draw up measures once a quarter.
The Board of Directors receives reports from the Sustainability Committee on the evaluation and status of climate-related issues and environmental target management, and makes overall decisions on the formulation of management strategies and other important matters, taking into account climate-related issues. -
3. Status of Acquisition of ISO 14001
In accordance with the Hakuhodo DY Group Environmental Policy, certain units are implementing environmental management in conformity with the international environmental standard ISO 14001. Currently, ISO 14001 certification has been acquired by Hakuhodo Inc. and Group companies OZMA Inc. and HAKUHODO I-STUDIO Inc.
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Strategy: Scenario Analysis
The scope of the scenario analysis covers the entire value chain from research and development (R&D) to procurement, production, and service provision, with a focus on Japan, the Hakuhodo DY Group’s principal area of operation. To consider long-term assumptions for 2030 and beyond, analysis was conducted against two scenarios: a 1.5°C scenario, which assumed an average global temperature at the end of this century of no more than 1.5°C warmer than that prior to the Industrial Revolution (in some instances a 2.0°C scenario was also analyzed), and a 4°C scenario, which assumed a rise in average global temperature of around 4°C.
These analyses and response measures were approved and implemented following discussions with the Sustainability Committee Chair and the Environmental Manager, who received a report from the Environmental Management Subcommittee. We will continue to conduct scenario analysis on an ongoing basis to enhance its quality and quantity and further integrate it into our management strategies to enhance our resilience in dealing with an uncertain future. -
Risk Management
In fiscal 2020, the Group identified and assessed its material issues (materiality), which are important issues for achieving sustainable growth for both society and the Group with a view to realizing the SDGs. The Group Compliance Committee will manage progress and review materiality risks, including climate-related issues, on a case-by-case basis to establish an appropriate risk management system.
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Indicators and Targets
To achieve carbon neutrality by fiscal 2050, the Hakuhodo DY Group has set an interim target of a 50% reduction in Scope 1 and Scope 2 emissions by fiscal 2030 compared with fiscal 2019 and a 30% reduction in Scope 3 emissions.
To achieve this goal, we will not only conduct conventional energy conservation activities but also aim to introduce renewable energy-derived electricity to account for 60% of our total electricity consumption by fiscal 2030 and 100% by fiscal 2050. We will also set targets and formulate measures in the four main areas of renewable energy introduction, energy conservation (paperless offices), waste reduction, and recycling.
*1 Total values for Hakuhodo, Daiko Advertising, YOMIKO ADVERTISING, Hakuhodo DY Media Partners, and HAKUHODO PRODUCT’S *2 Waste volume and waste reduction targets for Hakuhodo head office in Tokyo *3 Recycling rate at Hakuhodo head office in Tokyo
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Third-Party Guarantee
A third-party guarantee has been received from Deloitte Tohmatsu Sustainability Co., Ltd., for the CO2 emissions report containing data on Scope 1 and Scope 2 emissions from fiscal 2019, and is available on the Company’s corporate website.
External Evaluations
We have been responding to the CDP Climate Change Questionnaire, an environmental survey administered by CDP,*1 every year since 2017. In fiscal 2021, we received a score of B. Furthermore, we have been selected as a constituent of the FTSE4Good Index Series and the FTSE Blossom Japan Index*2 for the fourth consecutive year. We have also been selected as a constituent of the FTSE Blossom Japan Sector Relative Index.*2 Moving forward, we will continue to provide appropriate information disclosure, including through our annual participation in a sustainability survey by EcoVadis.*3
*1 CDP: A not-for-profit charity that runs the global disclosure system for investors, companies, cities, states and regions to manage their environmental impacts
*2 FTSE4Good Index Series: A series of international ethical investment stock market indices covering environmental, social, and governance (ESG) performance that was developed by FTSE Russell, a member of the London Stock Exchange Group
FTSE Blossom Japan Index: One of four indices adopted by Japan’s Government Pension Investment Fund (GPIF) that measure the ESG practices of leading Japanese companies
FTSE Blossom Japan Sector Relative Index: An index designed to measure the performance of Japanese companies that demonstrate strong ESG practices relative to their sector peers
*3 EcoVadis: A research institute that provides platforms for examining policies, initiatives, and results related to corporate sustainability
