Initiatives to Address Climate Change
and Other Environmental Issues
In its business activities, the Hakuhodo DY Group will comply with environment-related laws, regulations, and industry standards, and we will voluntarily work to reduce our environmental impacts. In addition, we will leverage each employee's creativity, ability to take action, and capacity to make things happen as we aim to support the realization and development of a sustainable society through our business and other activities with our business partners.
Basic Policy
Through its policies of Sei-katsu-sha Insight and Commitment to Partnership, the Hakuhodo DY Group aims to "create and spread new happiness among sei-katsu-sha and society" by finding solutions to the challenges faced by our business partners and society. With environmental awareness rising by the day, efforts to realize and develop a sustainable society are essential for the well-being of sei-katsu-sha and society as a whole.
The Hakuhodo DY Group is committed to complying with environmental legislation, regulations, industry standards, and other requirements related to its business activities. We are actively working to reduce environmental impact and are leveraging the creativity, ability to take action, and capacity to make things happen to support the realization and development of a sustainable society through our work with our business partners and other initiatives.
Implementation Structure
Reporting to the Hakuhodo DY Group Sustainability Committee, we have arranged for the Hakuhodo DY Group Environmental Manager to be the person responsible for environmental activities across the Group. As part of this, we have set up the Environmental Committee as a subordinate organization that conducts quarterly assessments and consolidates measures to address climate-related issues on a regular basis.
The Board of Directors receives reports from the Sustainability Committee on the evaluation, status, and goal management of climate-related issues. The Board also engages in comprehensive decision-making regarding the formulation of business strategies, taking climate-related challenges into consideration.
Endorsing the Recommendations of the Task Force on Climate-related Financial Disclosures
The Group endorses the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD). For scenario analysis, we have established the Environmental Committee under the Sustainability Committee, which is chaired by the Representative Director & President, and the Environmental Manager. Relevant departments of the head office and each Group company took part in the committee's efforts that—in fiscal 2022, for the first time—worked to identify significant risks and opportunities arising from climate change, and to evaluate them quantitatively and financially. We are moving forward with disclosure across the Group in accordance with TCFD recommendations.
Risks and Opportunities
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.
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°scenario, which assumed a rise in average global temperature of around 4°C.
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 existing 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 implement formulate measures in the four main areas of renewable energy introduction, energy conservation (paperless offices), waste reduction, and recycling.
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.
Introduction of Renewable Energy
Following YOMIKO ADVERTISING, which introduced renewable energy in April 2022, we have since 2023 switched electricity used in Akasaka Biz Tower, where various Hakuhodo DY Group companies are located, to green power*1. Utilizing a green power supply service*2, the Group succeeded in making Akasaka Biz Tower's electricity use 100% green for all of fiscal 2023.
- *1 Green power: An effectively renewable energy source with environmental value derived from residential solar power generation that has reached the end of its power purchase period under the feed-in tariff (FIT) scheme. Mitsui Fudosan Co., Ltd., and TEPCO Energy Partner, Inc., have concluded a comprehensive agreement related to the greening of power consumption for office buildings to provide a stable supply of electricity to tenant companies.
- *2 Green power supply service: A service developed by Mitsui Fudosan that provides effectively renewable energy for electricity used in office buildings and other facilities through the utilization of non-fossil fuel certificates. This service is designed to flexibly meet tenant needs in achieving the Science Based Targets (SBTs) for the reduction of greenhouse gas emissions, allowing for customizable implementation rates and other specifications.
Third-Party Guarantee
A third-party guarantee has been received from Deloitte Tohmatsu Sustainability Co., Ltd., for the CO2 emissions report available on the Company's corporate website containing data on Scope 1, 2, and 3 CO2 emissions from fiscal 2021. We are working to obtain a third-party guarantee for our Scope 1, 2, and 3 CO2 emissions in fiscal 2022.
- *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
- Sustainability at the
Hakuhodo DY Group - Diversity, Equity
and Inclusion (DE&I) - Workstyle Transforms
- Health and Productivity
Management - Human Rights Policy
- Initiatives to Address Climate Change
and Other Environmental Issues - Initiatives at Group Companies
- Hakuhodo Foundation