- Sustainability
- Sustainability initiatives
- Environment
- Basic Environmental Policy
Basic Environmental Policy
While information technologies make the world richer and more convenient, they have an impact on the environment in the form of Greenhouse Gas (GHG) emissions from the consumption of electric power and other energies. The environmental impact is increasing with the expansion of the industry as a whole. To realize a sustainable society, the LY Corporation Group will make efforts to address climate change as well as strive to reduce the environmental impact derived from business activities, implement measures to reduce waste, and protect biodiversity and natural capital.
The Group will also aim to help society by preparing and enhancing solutions to respond to the threat of natural disasters that are becoming more intense and frequent due to climate change.
Basic Environmental Policy
The LY Corporation Group, comprised of LY Corporation and its subsidiaries and affiliates, will continue to implement initiatives to conserve the global environment for future generations through the use of information technology. For this, the Group will strive to:
1. Realize a carbon neutral society
The LY Corporation Group will set medium-term environmental load reduction targets and work with the supply chain to achieve these targets.
2. Conserve natural capital
- The LY Corporation Group will consider the impact of its business on the ecosystem and strive for sustainable procurement, waste management, and conservation of water resources and biodiversity.
- The LY Corporation Group will support efforts to preserve the global environment.
3. Fulfill legal compliance and international responsibilities
- The LY Corporation Group will place importance on environmental issues and strive to reduce risks.
- The LY Corporation Group will comply with domestic laws and regulations related to environmental conservation.
- The LY Corporation Group will support international environmental initiatives and work in collaboration with the international community to combat climate change.
4. Cooperate with the society through our services
- In response to natural disasters associated with climate change, the LY Corporation Group will collaborate with the society through cooperation with local municipalities and disaster prevention and mitigation services, etc.
- The LY Corporation Group will expand and enhance its recycling-oriented services to realize a sustainable society.
5. Educate and enlighten employees to create the future
The LY Corporation Group will educate and enlighten its employees so that they understand the importance of environmental issues and are able to improve services and create innovations that are environmentally friendly.
Medium-Term Targets
Targets for Mitigation of Climate Change
|
Base year*1
|
FY2022
|
FY2023
|
|
|---|---|---|---|
| Short-term target By FY2025, reduce LY Corporation’s GHG emissions subject to Scopes 1 and 2 to net-zero (t-CO2) |
FY2022
|
99,433*2
|
79,698
|
| Medium-term target By FY2030, reduce the LY Corporation Group’s GHG emissions subject to Scopes 1 and 2 to net-zero (t-CO2) |
FY2022
|
117,759
|
92,567
|
* GHG emissions after compensations (A portion of the total emissions, specifically from Scope 1 and Scope 2 hot and cold water and steam, has been offset.). For carbon offsetting, please see here.
*1 Target revised in March 2022 using FY2022 as the base year, accompanying the announcement of "2030 Carbon Neutrality Declaration” by LY Corporation (then Z Holdings Corporation)
*2 Figure for FY2022 indicates the total GHG emissions of the former Yahoo Japan and the former LINE Corporation ("LINE Corp."), which went through a Group reorganization in FY2023 to form LY Corporation.
Target for Adaptation to Climate Change
| Medium-Term Target |
FY2020
|
FY2022
|
FY2023
|
|---|---|---|---|
| Conclude disaster alliance agreements with local municipalities to cover over 90% of Japanese population by FY2025 |
96.1%
|
98.3%
|
98.4%
|
Management Structure
Monitoring by the Board of Directors
LY Corporation (the “Company”) has established the Sustainability Committee as the executive body under the supervision of the Board of Directors, the highest decision-making body, to promote initiatives to address various sustainability issues across the Group companies.
The Sustainability Committee generally meets four times a year and is chaired by the President and Representative Director, with members including the CFO, outside directors, and more. The committee deliberates and makes decisions on the policies and various measures for the Group's materiality issues and sustainability, and monitors their progress. In FY2023, the Sustainability Committee discussed policies for addressing issues such as climate change and natural capital, as well as strategies for human capital and other ESG issues. Furthermore, the Environment Working Group and the Human Rights Working Group are established under the Sustainability Committee. The persons responsible for the environment and human rights issues in the Group companies serve as members of these working groups. They review policies and measures of the LY Corporation Group and promote these measures at each Group company.
Under the supervisory framework, the Sustainability Committee submits proposals and reports on important matters to the Board of Directors, and reports as appropriate to the Governance Committee, which is composed of independent outside directors.
The Board of Directors supervises the promotion of sustainability through deliberation and resolution of the important matters brought up for discussion.
In addition, in order to ensure that the directors* are committed to promoting sustainability, the Company has incorporated sustainability evaluation as an indicator for determining cash bonuses for their executive remuneration within the range of ±5%. The sustainability evaluation consists of the previous fiscal year's results of each materiality indicator, including progress of achieving carbon neutrality, diversity indicators, and data governance, which were established to realize the Company’s mission and medium- to long-term corporate value enhancement, as well as an external assessment by ESG rating agencies. The sustainability evaluation indicator (±5%) is resolved by the Nominating and Remuneration Committee, of which the majority is composed of independent outside directors.
Please refer to the Corporate Governance page for details on the remuneration policy.
*Excludes directors who are members of the Audit and Supervisory Committee.
Roles of the management
The Sustainability Committee, chaired by the President and Representative Director, CEO (Chief Executive Officer), has been established under the supervision of the Board of Directors to promote initiatives that address various sustainability issues. "Connect Meetings" are held regularly as the promoting body of sustainability initiatives within the Sustainability Committee, whereby basic policies and measures related to environmental issues are reviewed and deliberated in collaboration with each Group company (CSR Management Division, Corporate Division, and Business Divisions).
The President and Representative Director, CEO (Chief Executive Officer), is committed to environmental issues including the signing of CDP reports. The President and Representative Director, CEO (Chief Executive Officer), also establishes the Group's policy, and reviews and manages the progress of the environmental initiatives by receiving reports as necessary, including at the Sustainability Committee. The reports cover discussions held at the Connect Meetings, the Environment Working Group (which both promote the initiatives throughout the Group), and more.
Human Rights Policy for Stakeholders
In all areas of its business activities, the LY Corporation Group upholds its Basic Policy on Human Rights (Human Rights Policy) and respects the rights of members of regional communities that have deep ties to nature as it contributes to developing a sustainable environment and society. The Group also requires its suppliers and business partners to respect and refrain from infringing on human rights in conformity with international principles of human rights and the LY Corporation Group Code of Conduct.
To implement this, the Group has established the Human Rights Working Group (alongside the Environment Working Group) under the Sustainability Committee.
This new Working Group builds a monitoring system and promotional system—headed by the Board of Directors and management respectively—for basic policies on human rights and progress on related initiatives.
Related Links
Risk Management
Risk Management Committee
The LY Corporation Group establishes the Risk Management Committee, and risks related to the Group's business activities are recognized, identified and addressed under the leadership of the President and Representative Director, CEO (Chief Executive Officer). In the environmental area, the Group conducts risk assessments on the environmental impact risks of its business activities and the risks it faces in turn from changes in the external social environment, basing these on hypothetical risks such as large-scale natural disasters associated with climate change and the spread of infectious diseases. The Group promotes its ESG initiatives in cooperation with the Risk Management Committee, which analyzes management risks.
Related links
Coverage
Coverage of Environmental Index
The LY Corporation Group calculates each environmental indicator for the consolidated subsidiaries. Coverage ratio for each environmental indicator is calculated based on the sum of the consolidated revenue ratio of the consolidated subsidiaries for which the Group was able to compile data.