Materiality & KPIs
In line with our sustainability policy, the Hakuhodo DY Group identifies material issues important to creating a society abounding in sei-katsu-sha’s aspirations and where they can live vibrant lives. Under appropriate managerial guidance, we implement effective sustainability management by executing initiatives after determining their relative importance and clearly setting priorities.
Materiality
The Group’s materiality consists of a total of nine items in three areas: contributing to a sustainable global environment, unleashing creativity through the growth of and respect for diverse individuals, and pursuing compliance and integrity. The common thread among these initiatives is human-centered sustainable management. By harnessing the power of people, which is the Group’s greatest strength, it aims to create unique value. We will enhance the effectiveness of these by establishing action policies and KPIs and monitoring indicators for each item, accelerating progress.
Materiality Implementation Structure
Under the supervision of Board of Directors, the Group Sustainability Committee is responsible for the implementation of tasks such as monitoring and reviewing progress in materiality. The Sustainability Steering Committee, which operates under this committee, implements specific measures with the participation of Group companies.
Materiality Operation Structure
We review our initiatives and manage the progress of KPIs at semi-annual Group Sustainability Committee meetings. We plan to regularly review our initiatives and make adjustments based on the progress of our Medium-Term Business Plan and various initiatives, as well as changes in the business environment.
Background to the Review of Materiality
In September 2024, we conducted a materiality review with the goal of promoting sustainability management based on our Global Purpose and new Medium-Term Business Plan. New material issues were identified by assessing current changes in the external environment, determining significant social challenges facing the Hakuhodo DY Group and its stakeholders, and analyzing them for both the risks and opportunities. The identification of materiality was conducted through collaboration between the Hakuhodo DY Holdings Corporate Sustainability Division, relevant departments, and various Group companies.
The Process of Reviewing and Identifying Materiality
STEP 1: Identify social issues based on business strategy
List social issues related to the Group’s business, taking into account international guidelines such as the SDGs, GRI, SASB, ISO, and industry trends.
STEP 2: Evaluate importance and prioritize
Evaluate the financial impact on the Group and the impact of the Group on the environment and society for each issue, considering both risks and opportunities, and prioritize the issues accordingly.
STEP 3: Assess validity
Engage in discussions with stakeholders (Group companies and external experts) to exchange opinions on validity and refine the content.
STEP 4: Determine materiality
After deliberation and approval by the Group Sustainability Committee, identify materiality through deliberation and approval by the Board of Directors. While implementing sustainability management, the PDCA cycle is run by monitoring and periodically evaluating indicators linked to these material issues at the management level.
State of progress
Details of progress made toward meeting our materiality commitments, and action being taken to that end, are given on the following pages.