Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate Change
• Diversity, Equity and Inclusion (DE&I)
• Human Rights
• Corporate Governance
• Sustainable Business Management

Environmental Achievements

• Reduced Scope 1 and Scope 2 CO2 emissions by 37.7% (compared with fiscal 2019)
• Reduced Scope 3 CO2 emissions by 41.0% (compared with fiscal 2019)
• Achieved 1.8% renewable energy share
• Reduced energy consumption by 46.8% (compared with fiscal 2019)
• Reduced waste by 53.1% (compared with fiscal 2019) at Hakuhodo head office
• Developed Shellstic, an eco-friendly plastic made from discarded scallop shells and refuse plastic

Social Achievements

• Achieved 100% rate of male childcare leave at YOMIKO ADVERTISING in fiscal 2022
• Launched DE&I policy with a target of 30% female representation in management positions by fiscal 2030
• Expanded definition of “spouse” to include partners in de facto marriages and same-sex partners
• Established SUPERYARD, a joint venture to support career advancement for people with mental disabilities
• Launched Kepler Academy, a free online digital marketing training program to increase diversity in the industry

Governance Achievements

• Established Group Human Rights Policy and Due Diligence Guidelines
• Established Group Compliance Committee to enhance compliance awareness
• Appointed Chief Risk Officer to strengthen crisis management
• Established Corporate Sustainability Division to serve as the Group’s hub for sustainable management
• Conducted effectiveness evaluation of the Board of Directors

Climate Goals & Targets

Environmental Challenges

• Alleged violation of the Antimonopoly Act in connection with the Tokyo 2020 Olympic and Paralympic Games
• Need to further enhance capital efficiency by reducing cross-shareholdings
• Need to improve dialogue with shareholders and related disclosure
• Balancing short-term profit growth with long-term sustainable investments

Mitigation Strategies

• Established a Special Investigation Committee to prevent recurrence of compliance issues
• Gradually selling off investment securities with no logical reason to retain
• Improving investment and capital efficiency
• Engaging in appropriate dialogue with investors
• Maintaining financial soundness while investing in technology and globalization

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Ensuring traceability, production in clean-energy factories, eco-friendly transportation, and upcycling within the supply chain

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: TCFD

Certifications: ISO 14001 (Hakuhodo, OZMA Inc., HAKUHODO I-STUDIO Inc.)

Third-party Assurance: Deloitte Tohmatsu Sustainability Co., Ltd. (for CO2 emissions report in 2021)

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Shellstic

Awards & Recognition

• Multiple awards at ACC TOKYO CREATIVITY AWARDS, Cannes Lions International Festival of Creativity, ADFEST, and Spikes Asia

Environmental Metrics

ESG Focus Areas

• Climate Change
• Environmental Sustainability
• Waste Reduction
• Human Resources
• Diversity & Inclusion

Environmental Achievements

• Reduced Scope 1 and Scope 2 CO2 emissions by 37.7%
• Reduced Scope 3 CO2 emissions by 41.0%
• Reduced water consumption by 46.8%
• Reduced waste at Hakuhodo head office in Tokyo by 53.1%

Social Achievements

• 72.0% of employees felt they have grown from the previous year
• Average training hours per employee: 19.7 hours
• Investment in education for human resource development: ¥2.16 billion (¥238,000 per employee)

Governance Achievements

• Selected as Constituent of the ESG Investment Index FTSE Blossom Japan Sector Relative Index
• Achieved A- rating in CDP Climate Change Questionnaire
• Ratio of female employees in management positions: 11.5%

Climate Goals & Targets

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: TCFD

Awards & Recognition

• 62nd ACC TOKYO CREATIVITY AWARDS (4 grand prizes, 10 gold, multiple other awards)
• Cannes Lions International Festival of Creativity 2023 (4 gold, 5 bronze awards)
• ADFEST 2023 (5 gold, 3 silver, 4 bronze awards)
• Spikes Asia 2023 (1 grand prize, 2 gold, 11 total awards)

Environmental Metrics

ESG Focus Areas

• Climate Change
• Environmental Sustainability

Environmental Achievements

• Reduced Scope 1 and Scope 2 CO2 emissions by 33.0% in fiscal 2023 compared to fiscal 2019.
• Reduced Scope 3 CO2 emissions by 25.8% in fiscal 2023 compared to fiscal 2019.
• Increased renewable energy share to 36.5% in fiscal 2023.
• Reduced energy consumption by 27.2% in fiscal 2023 compared to fiscal 2019.
• Reduced waste by 40.3% in fiscal 2023 compared to fiscal 2019 (Hakuhodo head office in Tokyo).
• Increased recycling rate to 83.5% in fiscal 2023 (Hakuhodo head office in Tokyo).

Social Achievements

• Not disclosed

Governance Achievements

• Established the Environmental Subcommittee under the Sustainability Committee to manage climate-related risks and opportunities.
• Endorsed the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD).

Climate Goals & Targets

Environmental Challenges

• Reducing Scope 1, 2, and 3 emissions to meet carbon neutrality goals.

Mitigation Strategies

• Implementing measures in renewable energy introduction, energy conservation, waste reduction, and recycling.
• Setting interim targets for emission reductions and renewable energy use by 2030.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: TCFD

Certifications: ISO 14001 (certain units)

Third-party Assurance: Deloitte Tohmatsu Sustainability Co., Ltd.

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed