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2023

Hakuhodo DY holdings

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 and is implementing and monitoring its progress on initiatives to resolve these material issues.

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.

Structure of Value Creation and Position of Materiality

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Materiality Implementation Structure

Sustainability Committee

(Chair: President Mizushima)

Materiality Working Groups

  • Hakuhodo

    (Head of Corporate
    Strategy Division)

  • Hakuhodo DY
    Media Partners

    (Head of Corporate
    Strategy Division)

  • YOMIKO
    ADVERTISING

    (Head of Corporate
    Strategy Division)

  • Daiko
    Advertising

    (Head of Customer Value
    Management Promotion
    Division)

  • D.A.Consortium

    (Director)

  • IREP

    (Head of Corporate
    Strategy Division)

  • kyu

    (Head of Business Office)

Secretariat

  • Hakuhodo DY
    Holdings

    Corporate Strategy
    Division
    Corporate Sustainability
    Division

  • Edge International Inc.* (Advisory)

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

Materiality PDCA Cycle Structure

  • Board of Directors

    Overall monitoring

  • Sustainability Committee

    Review of indicators to monitor progress

    Examination of need to revise/update materiality

    Yearly reports

  • Secretariat

    Corporate Sustainability Division /
    Corporate Strategy 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

Materiality

  • Materiality Overview Initiatives Indicators to Monitor Progress Results in Fiscal 2022 Target Values Scope of Data
    Aggregation

    Creation of new value
    by evolving marketing
    and driving innovation

    		 With Sei-katsu-sha Insight as our cornerstone, we will combine our creativity, integrative capabilities, and data and technology utilization skills to play a leading role in evolving companies’ marketing activities and generating innovation in the digitalized era. In this way, we will continue to impact and provide value to sei-katsu-sha and society as a whole.
    To ensure that we can implement full-funnel Sei-katsu-sha Data-Driven Marketing, which is the key to enhancing our value provision and realizing even greater profits, we will promote value-creating digital transformation (DX)—marketing DX and media DX—and strengthen our functions in the marketing execution domain.
    Furthermore, by striving to accelerate innovation through external collaborations and expand our overseas businesses, we will transform the Group’s business model and further enhance our corporate value. We will also ensure the secure utilization of personal information and other data within the digital advertising market and our business activities, thereby strengthening our management of various rights.
    • • Implement full-funnel
      Sei-katsu-sha Data-Driven
      Marketing (promote valuecreating DX, expand
      marketing execution
      domain, and utilize
      sei-katsu-sha data)
    • • Accelerate innovation
      through external
      collaborations
    • • Expand overseas
      businesses
    		 Gross profit growth rate
    in the marketing execution domain    		 Annual growth rate
    ＋9.6%*1    		 Annual
    growth rate
    of 10% or
    more*2    		 HDY Holdings
    Billings growth rate in
    the internet domain    		 Annual growth rate
    ＋15.2%*1    		 Annual
    growth rate
    of 15% or
    more*2    		 HDY Holdings
    Gross profit growth rate
    in the overseas business
    domain    		 Annual growth rate
    ＋26.6%*1    		 Annual
    growth rate
    of 15% or
    more*2    		 HDY Holdings
    Examining disclosure of monitoring indicators and numerical targets
    related to technologically-savvy human resources and innovation

    *1 Annual growth rate with fiscal 2020 as the base year

    *2 Annual 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. SO: SoldOut,Inc.

  • Materiality Overview Initiatives Indicators to Monitor Progress Results in Fiscal 2022 Target Values Scope of Data
    Aggregation

    Implementation of
    human resource
    management to allow
    our employees to
    leverage their advanced
    creativity (investment,
    development programs,
    and building of
    an employee-friendly
    environment)

    		 Human resources are the most important element underpinning the Group’s sustainable management and growth over the medium to long term. Through the strengths of our human resources, who can leverage creativity that shapes the future, we aim to create markets that offer value to sei-katsu-sha while achieving solid business results.
    We will seek to cultivate eclectic talents who demonstrate creativity in an integrated manner and can realize tremendous specialization and innovation in a wide range of domains, from idea development to social implementation, business creation, media evolution, DX, and global expansion. To that extent, we will further promote diversity, equity, and inclusion (DE&I), valuing differences not only in terms of gender, nationality, and race but also value systems and attitudes.
    Additionally, we will build frameworks for realizing collaboration that goes beyond the boundaries between businesses within the Group. As we strive to promote health and productivity management and reform workstyles, we will also create frameworks for encouraging collaboration even within a teleworking-centered environment. While doing so, we will establish environments that foster a strong sense of personal growth among Group employees.
    • • Cultivate personnel who
      can realize outstanding
      specialization and
      innovation
    • • Promote health and
      productivity management
      (healthy and sound
      workstyles)
    • • Implement DE&I
    		 Amount of investment in
    human resource acquisition
    and development
    		 ¥2,160 million － H、D、Y、I、MP、DAC、SO
    Total interview hours for
    managing employee targets
    and developing capabilities    		 16,045 hours － H、D、Y、I、MP、DAC、SO
    Percentage of employees
    receiving health examinations    		 98.5% － H、D、Y、I、MP、DAC、SO
    Percentage of employees
    maintaining/improving their
    health    		 74.4% － H、MP
    Ratio of female employees in
    management positions    		 11.5% Fiscal 2030
    target 30%    		 H、D、Y、I、MP、DAC、SO
    Percentage of women
    returning to work after
    maternity leave    		 96.2% － H、D、Y、I、MP、DAC、SO
    Percentage of employees who
    felt they have grown from the
    previous year    		 72.0% － H、MP
    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. SO: SoldOut,Inc.
  • Materiality Overview Initiatives Indicators to Monitor Progress Results in Fiscal 2022 Target Values Scope of Data
    Aggregation

    Strengthening of
    corporate governance
    with the aim of realizing
    harmony with sei-katsu-sha
    and society as a whole

    		We will focus our efforts on strengthening corporate governance in order to establish an environment that promotes independence and cooperation among operating companies under our corporate umbrella and to implement Groupwide governance. To continue to earn the trust of sei-katsu-sha and society as a whole, we will ensure that all Group employees maintain a high awareness of compliance and strive to secure integrity in our marketing activities.
    Our philosophy on sustainability is to create and spread new happiness among sei-katsu-sha and society by finding solutions to the constantly changing challenges facing sei-katsu-sha and society and providing them with new value. Guided by this philosophy, we will work to realize harmony with sei-katsu-sha and society as a whole, including through our response to social and environmental issues, such as climate change and respect for human rights.
    • • Promote respect for human
      rights
    • • Adhere to a high level of
      compliance and ethics and
      pursue integrity in our
      marketing activities
    • • Respond to social and
      environmental issues,
      including climate change
    		 Examining disclosure of monitoring indicators and numerical targets
    regarding respect for human rights, based on the report on human
    rights due diligence activities
    CO2 emissions: Scope 1 and
    Scope 2    		 37.7% reduction Fiscal 2030:
    50% reduction
    Fiscal 2050:
    Carbon
    neutrality    		 H, D, Y, MP,
    HAKUHODO
    PRODUCT’S
    CO2 emissions: Scope 3 41.0% reduction Fiscal 2030:
    30% reduction    		 H, D, Y, MP,
    HAKUHODO
    PRODUCT’S
    Targets for renewable energy
    introduction     		1.8% Fiscal 2030:
    60%
    Fiscal 2050:
    100%    		 H, D, Y, MP,
    HAKUHODO
    PRODUCT’S
    Targets for energy
    conservation    		 46.8% reduction 30% reduction H, D, Y, MP,
    HAKUHODO
    PRODUCT’S
    Targets for waste reduction 53.1% reduction Maintain average reduction
    rate of 50% or
    more
    		 H’s Tokyo head
    office
    Recycling ratio 79.0% 85% or more H’s Tokyo head
    office

    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. MP: Hakuhodo DY Media Partners Inc.