Integrated Report 2022
Hakuhodo DY Holdings
Integrated Report 2022

Materiality

With a view to realizing its sustainability goal, the Hakuhodo DY Group has identified material issues (materiality) as important management issues for realizing the sustainable growth of the Group and of society as a whole. In fiscal 2022, the Group revised and restructured the management of its materiality in light of circumstances in the current business environment, including the ongoing COVID-19 pandemic. At the same time, the Group determined indicators to monitor its progress in managing these revised material issues.

Structure of Value Creation and Position of Materiality

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Important Points of the Revisions

  • ①

    Based on our existing materiality, we have reorganized the structure of our value creation story so that our stakeholders can understand it more easily.

  • ②

    Of our existing material issues, we redefined “enhancement of creativity that shapes the future” as the essence of our value creation activities. In addition, we redefined “creation of markets that offer value to sei-katsu-sha” as the outcome of our sustainability goal.

  • ③

    We narrowed the scope of our materiality from eight issues to three issues that we believe we must tackle in order to provide the value and build the management foundations for achieving sustainable growth.

Revised Materiality

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    * Annual average growth rate through to fiscal 2023, with fiscal 2020 as the base year

    H: Hakuhodo Inc. D: Daiko Advertising Inc. Y: YOMIKO ADVERTISING INC. I: IREP Co., Ltd. MP: Hakuhodo DY Media Partners Inc. DAC: D.A.Consortium Inc.

  • img desc

    H: Hakuhodo Inc. D: Daiko Advertising Inc. Y: YOMIKO ADVERTISING INC. I: IREP Co., Ltd. MP: Hakuhodo DY Media Partners Inc. DAC: D.A.Consortium Inc.

  • img desc

    Note: Target values for items pertaining to climate change are all compared with fiscal 2019 figures.

    H: Hakuhodo Inc. D: Daiko Advertising Inc. Y: YOMIKO ADVERTISING INC. I: IREP Co., Ltd. MP: Hakuhodo DY Media Partners Inc. DAC: D.A.Consortium Inc.

Background to Materiality Revisions and Management Policy

  • Aim of Revisions

    We reorganized our materiality based on the notion that materiality comprises important issues for realizing sustainable growth. At the same time, we updated our materiality in light of the current business environment. We also established new indicators for monitoring progress in order to further entrench our materiality internally and to strengthen our overall monitoring activities.

  • Materiality Management Policy

    We will set into motion an appropriate PDCA cycle while maintaining a management structure that enables us to revise and update our materiality in accordance with changes in the business environment. Going forward, we will strive to incorporate our new materiality into our medium- to long-term strategies and medium-term business plans.

Materiality Promotion Structure

Sustainability Committee

(Chair: President Mizushima)

Materiality Working Groups

  • Hakuhodo

    (Head of Corporate
    Strategy Division)

  • Hakuhodo DY
    Media Partners

    (Head of Corporate
    Planning Division)

  • YOMIKO
    ADVERTISING

    (Head of Corporate
    Planning Division)

  • Daiko
    Advertising

    (Head of Customer Value
    Management Promotion
    Division)

  • DAC

    (Director)

  • IREP

    (Head of Corporate
    Planning Division)

  • kyu

    (Head of Business Office)

Secretariat

  • Hakuhodo DY Holdings

    Corporate Planning
    Division
    Sustainability
    Office

  • Edge International Inc.* (Advisory)

* Consolidated Group company that engages in consulting in the integrated reporting, investor relations (IR), and environmental, social, and governance (ESG) domains.

Materiality Revision Process and PDCA Cycle Structure

Key Processes Related to Revisions

  • Holding of training seminars on sustainability

  • Discussion and formulation of indicators to monitor progress

  • Implementation of presentations by working group participants

  • Discussion and formulation of management policy and PDCA cycle structure

  • Discussion and formulation of materiality revisions

  • Approval by the Sustainability Committee

Materiality PDCA Cycle Structure

  • Board of Directors

    Overall monitoring

  • Sustainability Committee

    Review of indicators to monitor progress

    Examination of the need to revise/update materiality

    Yearly reports

  • Secretariat

    Sustainability Office /
    Corporate Planning Division

    Aggregation of Group figures and actions for the next fiscal year

    Exploration of linkages with medium-term business plans

    Collection of feedback from investors and other stakeholders

    Yearly reports

  • Each Group company

    Measurement of indicators to monitor progress and exploration of actions for the next fiscal year in accordance with actual progress

    Yearly reports