Climate Change Data

Environmental Metrics

ESG Focus Areas

• Corporate Governance
• Respect for Human Rights
• Ensuring a Safe and Civilized Working Environment
• Environmental Protection
• Fair Business Practices
• Addressing Consumer Issues
• Contributing to the Community

Environmental Achievements

• Reduced CO2 emissions at the Dentsu Head Office Building by 27.2% in fiscal 2014 (compared to the fiscal 2003–2004 average).
• Improved waste recycling rate to 74.8% in fiscal 2014.

Social Achievements

• Launched the "Female Employees Promotion Project" to create a working environment where women can continue to be active without interrupting their careers.
• Established Dentsu Solari, a wholly owned Group company, to promote the employment of people with disabilities.
• Various social contribution activities including Advertising Elementary School, Keys to Communicating program, support for Chinese advertising human resources development, and support for disaster-affected areas.

Governance Achievements

• Updated the Dentsu Group Code of Conduct based on ISO 26000.
• Established the Compliance Line to receive reports on legal violations.
• Implemented a performance-linked framework for executive remuneration.

Climate Goals & Targets

Environmental Challenges

• Responding to large-scale disasters (earthquakes).
• Maintaining compliance across a globally expanding scope of operations.
• Balancing growth with profitability.

Mitigation Strategies

• Reviewed and improved disaster response manuals.
• Established a robust internal control system and Compliance Line.
• Implemented cost reduction measures in the Japan business.

Supply Chain Management

Responsible Procurement

• Revised Dentsu Basic Procurement Policy and Dentsu Procurement Guidelines to include compliance with international anti-corruption regulations and conflict minerals regulation.
• Established a Partner Hotline for business partners to report legal violations.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI G3.1, UN Global Compact, ISO 26000

Certifications: ISO 14001

Third-party Assurance: Deloitte Tohmatsu Evaluation and Certification Organization Co., Ltd.

Awards & Recognition

• Eco-First Company certification by the Ministry of the Environment
• CDP score of 93B in 2014

Environmental Metrics

ESG Focus Areas

• Corporate governance
• Respect for human rights
• Ensuring a safe and civilized working environment
• Environmental protection
• Fair business practices
• Addressing consumer issues
• Contributing to the community
• Environment
• Community
• Supply Chain
• Responsible Marketing and Sustainable Consumption

Environmental Achievements

• Not disclosed

Social Achievements

• Not disclosed

Governance Achievements

• Established three principal committees under its Executive Management Committee and Business Supervision Committee, responsible for major management decisions. Established a CSR Committee with five board members.

Climate Goals & Targets

Environmental Challenges

• Not disclosed

Mitigation Strategies

• Not disclosed

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Developing sustainable procurement practices
• Supply chain charter principles

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: UN Global Compact

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Climate Action
• Sustainable Consumption
• Diversity and Inclusion
• Responsible Media
• Trust

Environmental Achievements

• Reduced Scope 1 and 2 emissions by 29.0% against our FY2019 baseline, and by 10.6% compared to FY2020. Market-based Scope 1 and 2 emissions were 24,103 tons of CO2e in FY2021.
• Reduced Scope 3 emissions (business travel) by 87.5% against FY2019 baseline.
• Reduced water consumption by 85.1%, waste by 3.1%, and paper by 67.5%.

Social Achievements

• Reached over 200 million people with campaigns that challenge perceptions and stereotypes.
• Reached over 12,000 young people through The Code and other local education initiatives.
• Achieved 12.8% female representation in senior management team in Japan, and 34.0% in international business.
• Launched a global “Rise Up” challenge to combat food waste.
• Developed “Dentsu Good—a sustainability accelerator”

Governance Achievements

• Established a Sustainable Business Board.
• Linked 500 million GBP of untapped revolving credit to ESG performance.
• Linked ESG performance to executive incentive scheme from FY2022.
• Increased the ratio of female and independent directors.

Climate Goals & Targets

Environmental Challenges

• Increasingly complex challenges facing clients.
• Need for digital transformation.
• Heightened social demands on corporations.
• Intensifying competition to acquire employees.
• Climate change impacts on business growth.
• Risks associated with cyclical changes in the global economy and social changes accelerated by the impact of COVID-19.
• Risks associated with the development of new businesses from the medium- to long-term perspectives.
• Risks related to securing human resources.
• Risks related to the business transformation.
• Risks associated with the competitive environment and structural changes in the existing advertising industry.
• Risks related to the content business.
• Impairment risk of goodwill and intangible assets related to Dentsu International.
• Risks related to information security and cyber security.
• Sustainability-related risks.
• Risks related to laws and regulations, litigation, etc.
• Risks related to unforeseen incidents, disasters, accidents, etc.

Mitigation Strategies

• Providing Integrated Growth Solutions.
• Investing in Customer Transformation & Technology (CT&T).
• Evolving conventional marketing into creativity-based community design.
• Recruiting new graduates and experienced individuals, offering skill development programs.
• Setting a deep decarbonization target by 2040.
• Developing regional resilience policies and BCPs.
• Using cloud-based technology infrastructure.
• Achieving Medium-term Management Plan targets.
• Providing clients with solutions integrating responses to climate change.
• Regularly monitoring the responses.
• Implementing structural reforms of DJN and DI.
• Providing high added value consisting of consumer insights and integrated solutions.
• Flexibly allocating and investing Group resources in next-generation media.
• Integrating and enhancing expertise cultivated in the advertising marketing with data and technology.
• Managing many content business projects as portfolios.
• Establishing a dedicated cyber security department.
• Establishing a work environment that ensures the mental and physical wellbeing of all employees.
• Complying with laws and regulations.
• Regularly reviewing crisis management and business continuity plans.

Climate-Related Risks & Opportunities

Physical Risks

• Increasingly extreme weather, frequent natural disasters

Transition Risks

• Increased costs associated with the introduction of carbon taxes, emissions trading

Opportunities

• Greater availability of solutions as markets shift to a net-zero economy
• Increased potential to cut marketing communication costs

Reporting Standards

Frameworks Used: International Integrated Reporting Framework, GRI Standards, TCFD

Third-party Assurance: Lloyd’s Register Quality Assurance Ltd (LRQA)

UN Sustainable Development Goals

• SDG 5: Gender Equality
• SDG 10: Reduced Inequalities

Sustainable Products & Innovation

• Chefbot
• Regional food circulation system

Awards & Recognition

• Cannes Lions Agency of the Year
• Spikes’ Network of the Year
• Fast Company’s best places to work for Innovators
• Cannes Lions Silver for Roadside Markets
• Grand Prix and two gold medals at ECHO Latam for Hits Que Duelen
• Top five applause-worthy ads across Asia Pacific (Campaign Asia)
• Grand Prix and Social Good accolades at the World Media Awards 2021

Environmental Metrics

ESG Focus Areas

• Climate action
• Sustainable consumption
• Diversity and inclusion
• Data privacy and security
• Business ethics & Compliance
• Human capital development
• Innovation leadership

Environmental Achievements

• Reduced Scope 1 and 2 emissions by 52.8% against 2019 baseline and by 33.5% compared to 2021. Market-based Scope 1 and 2 emissions were 16,039 tonnes of CO2e in 2022.
• Independently verified as carbon neutral in the business, excluding Japan, by investing in nature-based solutions.
• 37.7% of dentsu’s operations powered by renewable electricity, committed to 100% by 2030.
• Reached more than 59 million people with campaigns promoting sustainable behaviors.

Social Achievements

• Launched the ‘More Than That with Gia Peppers’ podcast, exclusively produced and distributed by minority-owned partners.
• Reached over 511 million people with campaigns challenging perceptions and stereotypes.
• In the US, achieved 31% BIPOC representation among employees in 2022.
• Supported 5,800 young people to become empowered digital citizens.

Governance Achievements

• Transitioned to a company with three committees (nominating, audit, and compensation).
• Increased the number of independent outside directors to a majority of Board membership.
• Separated the roles of Chairman of the Board and Group CEO.
• Established the dentsu Japan Reform Committee to address compliance issues.

Climate Goals & Targets

Environmental Challenges

• Alleged violation of the Japanese Antimonopoly Act related to the Tokyo 2020 Olympic and Paralympics test events bidding.
• Inadequate governance and compliance issues.
• Scope 3 emissions remained broadly flat due to increased business travel.
• Risks associated with cyclical changes in the global economy and social changes for the post-pandemic era.

Mitigation Strategies

• Established a Special Committee and an Investigation and Review Committee to investigate the Antimonopoly Act violation.
• Implemented the “Mindset and Behavior Reform” for recurrence prevention.
• Strengthened risk management system and legal/compliance functions.
• Introduced business processes that ensure fair and transparent transactions.
• Implemented Salesforce Net Zero Cloud to improve data accuracy of carbon footprint reporting.

Supply Chain Management

Responsible Procurement

• Dentsu Procurement Guidelines

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Destabilizing regulations
• Greenwashing regulations
• Increased disclosure requirements
• Carbon pricing
• Changing energy landscape
• Global GDP change

Opportunities

• Help clients and society adapt to climate change
• Build greenwashing-proof services
• Build a client base of companies with sustainable products and business models
• Win new business by working with companies that thrive as society decarbonizes

Reporting Standards

Frameworks Used: GRI, TCFD

Third-party Assurance: Lloyd’s Register Quality Assurance Ltd (LRQA)

Sustainable Products & Innovation

• Canopy
• More Than That with Gia Peppers
• The Unfiltered History Tour
• Flex Kitchen

Awards & Recognition

• Microsoft Advertising’s Marketing with Purpose top global award
• Adweek’s Podcast of the Year
• The Global Media Awards Grand Prix
• The Drum Awards Grand Prix
• Good Design Award (Haptic Field)
• Minister of Economy, Trade and Industry Award (Shiodome PORT)

Environmental Metrics

ESG Focus Areas

• Business Ethics & Compliance / Data Security
• DEI
• Human Capital Development
• Climate Action
• Innovation Leadership

Environmental Achievements

• Progress in initiatives to expand the scope of GHG reduction targets for international operations, certified by SBTi.
• Purchased renewable energy certificates and procured renewable electric power for the Shiodome Building.

Social Achievements

• Launched "The Code," a youth social education program providing digital skills training, active in nine countries in 2023.
• Various employee training programs, including mandatory training, voluntary training, and company-nominated training.

Governance Achievements

• Established the Group Sustainability Committee directly under the Group Management Board.
• Progress in promoting ESG-related initiatives reflected in the Group’s Executive Incentive Program since 2022.

Climate Goals & Targets

Environmental Challenges

• Difficulties in collecting data necessary to calculate emissions in Japan (Scope 3, Category 2 and 15).
• Fugitive emissions data collection underway.

Mitigation Strategies

• Improving emissions data accuracy with a project to introduce Salesforce Net Zero Cloud to the Japan market.
• Developing a comprehensive Climate Transition Plan to identify funding requirements for decarbonization efforts.

Supply Chain Management

Supplier Audits: 84% of in-scope UK and Global Functions suppliers (by spend) will be asked to report on their environmental performance via CDP in 2024.

Responsible Procurement

• Dentsu Group Supplier Code of Conduct
• Sustainable Procurement training for procurement staff.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events (floods, storms, typhoons, heatwaves)

Transition Risks

• Regulatory changes, market shifts, technological advancements

Opportunities

• Development of energy-efficient products and services

Reporting Standards

Frameworks Used: GRI Standards

Certifications: ISO 14001

Third-party Assurance: KPMG AZUSA Sustainability Co., Ltd. (limited assurance)

Awards & Recognition

• Microsoft Advertising Partner Award
• General Motors Overdrive Award
• Podcast of the Year (AdWeek)
• Good Design Award
• Workplace Wellbeing Awards
• Top 30 Employers
• Corporate Equality Index
• Stonewall Top 100 Employers
• D&I AWARD
• Asia-Pacific Climate Leaders