Materiality & KPIs
Materiality Management Policy
With a view to attaining its sustainability goal, the Hakuhodo DY Group has identified three materiality issues as important management issues for realizing the sustainable growth of society and the Group. 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
Materiality PDCA Cycle Structure
Materiality
The Hakuhodo DY Group aims to ensure the attainment of its sustainability goal by defining the three materiality issues as well as concrete initiatives and targets to address each of them.
(1) Creation of new value by evolving marketing and driving innovation
Overview
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.
Monitoring Indicators, Targets and Results
Indicators to Monitor Progress | Results in Fiscal 2022 | Target Values |
---|---|---|
Gross profit growth rate in the marketing execution domain | Annual growth rate +9.6 *¹ | Annual growth rate of 10% or more *² |
Billings growth rate in the internet domain | Annual growth rate +15.2% *¹ | Annual growth rate of 15% or more *² |
Gross profit growth rate in the overseas business domain | Annual growth rate +26.6% *¹ | Annual growth rate of 15% or more *² |
- *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
Initiatives
• Implement full-funnel Sei-katsu-sha Data-Driven Marketing (promote value-creating DX, expand marketing execution domain, and utilize sei-katsu-sha data)
• Accelerate innovation through external collaborations
• Expand overseas businesses
(2) Implementation of human resource management to allow our employees to leverage their advanced creativity (investment, development programs, and building of an employee-friendly environment)
Overview
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.
Monitoring Indicators, Targets and Results
Indicators to Monitor Progress | Results in Fiscal 2022 | Target Values |
---|---|---|
Amount of investment in human resource acquisition and development | ¥2,160 million *¹ | - |
Total interview hours for managing employee targets and developing capabilities | 16,045 hours *¹ | - |
Percentage of employees receiving health examinations | 98.5% *¹ | - |
Percentage of employees maintaining/improving their health | 74.4% *¹ | - |
Ratio of female employees in management positions | 11.5% *² | Fiscal 2030 target 30% |
Percentage of women returning to work after maternity leave | 96.2% *¹ | - |
Percentage of employees who felt they have grown from the previous year | 72.0% *² | - |
- *¹ Hakuhodo, Daiko Advertising, YOMIKO ADVERTISING, IREP, Hakuhodo DY Media Partners, D.A.Consortium, SoldOut
*² Hakuhodo,Hakuhodo DY Media Partners
Initiatives
• Cultivate personnel who can realize outstanding specialization and innovation
• Promote health and productivity management (healthy and sound workstyles)
• Implement DE&I
(3) Strengthening of corporate governance with the aim of realizing harmony with sei-katsu-sha and society as a whole
Overview
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.
Monitoring Indicators, Targets and Results
Indicators to Monitor Progress | Results in Fiscal 2022 | Target Values |
---|---|---|
CO2 emissions: Scope 1 and Scope 2 | 37.7% reduction *¹ | Fiscal 2030: 50% reduction Fiscal 2050: Carbon neutrality |
CO2 emissions: Scope 3 | 41.0% reduction *¹ | Fiscal 2030: 30% reduction |
Targets for renewable energy introduction | 1.8% *¹ | Fiscal 2030: 60% Fiscal 2050: 100% |
Targets for energy conservation | 46.8% reduction *¹ | 30% reduction |
Targets for waste reduction | 53.1% reduction *² | Maintain average reduction rate of 50% or more |
Recycling ratio | 79.0% *² | 85% or more |
- *¹ Hakuhodo, Daiko Advertising, YOMIKO ADVERTISING, IREP, Hakuhodo DY Media Partners, HAKUHODO PRODUCT’S
*² Hakuhodo head office in Tokyo
Initiatives
• Human rights due diligence
• 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