The LY Corporation Group (the “Group”) strives to fulfill its social responsibilities and aims for a continuous social and environmental development, while maintaining open dialogues with its stakeholders.
The LY Corporation Group upholds "Create an amazing life platform that brings WOW! to our users." as its mission. The Group will bring positive impact to society through its businesses and promote sustainability management that takes responsibility for future generations by addressing social issues, including the global environment and human rights.
To promote sustainability management, the LY Corporation Group establishes the following Basic Policy on Sustainability and identifies six materiality issues.
1. Promote sustainability from the standpoints of both society and business
2. Work collectively to address sustainability while taking advantage of the unique characteristics of each Group company
3. Take on challenges without being bound by precedents, and strive to continuously generate innovation
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.
The LY Corporation Group formulates its materiality issues with the aim of building a sustainable society and realizing its mission, "Create an amazing life platform that brings WOW! to our users."
LY Corporation organized its activities in light of social demands, and identified items of high importance to both its stakeholders and the Company based on stakeholder expectations and internal analysis. The GRI standards and major ESG evaluation items were also referred to in this process.
Six materialities have been established for realizing the mission of the LY Corporation Group based on the evaluation map.
The LY Corporation Group established six materialities to realize its mission,"Create an amazing life platform that brings WOW! to our users." By addressing these issues, the Group will build a future with its stakeholders in which everyone can utilize the power of the internet with peace of mind.
The LY Corporation Group has established materiality initiatives and evaluation indicators*² for each materiality it has identified, and continuously monitors the progress of the initiatives. In addition, the Company sequentially reviews issues that are to be prioritized over the medium- to long-term based on its business environment and social conditions. The indicators and targets for such issues are set as top-priority issues upon the resolution of the Sustainability Committee and efforts are made to achieve the targets.
*¹ LY Corporation views the information leakage caused by unauthorized access (announced in November 2023) as a management issue that must be addressed with the highest priority. The Company is therefore promoting the following measures: (1) fundamental review and reinforcement of safety management measures and subcontractor management, (2) essential review and reinforcement of security governance involving the entire Group, including the parent company, and (3) thorough customer support, including the provision of appropriate information. For specific recurrence prevention measures and their progress, please refer to the dedicated webpage.
*² The evaluation indicators include undisclosed information as they were created for the purpose of tracking the progress of initiatives and considering further measures within the Group.
Practical and inspiring user experiences are realized not only through new features and excellent UI/UX, but also by adopting approaches that make full use of data/AI.
LY Corporation exists to create new experiences by promoting cross-use among diverse services, improving data quality through data linkage, performing AI analysis, and effectively repeating this cycle. For this, the Group will work on initiatives such as establishing systems, making technological investments, and promoting education.
Materiality Initiatives | Evaluation indicators and major items disclosed |
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Promotion of data linkage and cross-use |
Evaluation indicators
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Major items disclosed (FY2023)
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Establishment of data AI utilization policies and systems (UPDATE) | Evaluation indicators
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Major items disclosed
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Promotion of technology investment/education to further the development of AI services |
Evaluation indicators
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Major items disclosed (FY2023)
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Related Links |
*This section will be updated promptly based on recurrence prevention measures taken against information leakage due to unauthorized access and their progress.
Safe and secure IT services are demanded by society, and providing such services leads to the building of trust and reputation.
To provide such services, the LY Corporation Group believes it is crucial that it implements Group-wide training programs for achieving zero accidents.
To fulfill the responsibilities of a digital platform operator, the Group will also establish a sound operational framework and disclose the details of its initiatives in a transparent manner.
Materiality Initiatives | Evaluation indicators and major items disclosed |
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Establishment of a sound operational framework |
Evaluation indicators Internal control
External cooperation
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Major items disclosed
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Improvement of education and technology related to security/privacy protection | Evaluation indicators
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Major items disclosed (FY2023)
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Reduction and prevention of security-related incidents |
Evaluation indicators
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Major items disclosed
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Related Links |
In an increasingly uncertain world, societies are required to become more resilient. As a Group that specializes in creating new customer experiences and new business values through digitalization, the LY Corporation Group aims to take a long-term and broader view, and contribute to the building of social infrastructures.
To achieve this, the Group will cooperate with the society in the following focus areas: "disaster prevention/mitigation and reconstruction support," "3R promotion," "DX promotion," and "bridging information disparities."
Materiality Initiatives | Evaluation indicators and major items disclosed |
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Promotion of disaster prevention/mitigation using information technology and supporting the reconstruction efforts |
Evaluation indicators
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Major items disclosed
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Promotion of "3Rs" (Reduce/Reuse/Recycle) |
Evaluation indicators
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Major items disclosed (FY2023)
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Promotion of DX |
Evaluation indicators
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Major items disclosed (FY2023)
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Continuous service delivery and promotion of social approaches to address information disparities |
Evaluation indicators
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Major items disclosed | |
Related Links |
Having a competitive advantage in the internet business is essentially derived from the ability to generate innovative services and products, which is underpinned by employees. Therefore, establishing a cycle in which employees can work energetically and create outstanding services and products is one of the top priorities for LY Corporation.
To this end, the Company upholds the concept of "connecting people with business to maximize the performance of human capital and organizations" as the cornerstone of its human resources strategy so that employees can maximize their performance and contribute to improving the organization's growth. Specifically, the two main pillars are "reinforcing human capital" and "fostering a unique culture." The first pillar in particular is also positioned as one of the Company's materiality issues. In addition, while differences in culture, systems, and the environment among Group companies were a strength before the intra-Group reorganization, it did not generate a sense of unity for the Group. Thus, by also upholding the second pillar, the Company aims to create its own unique culture that will contribute to realizing its mission. To measure the progress of the two pillars, the Company implements a monthly engagement survey for all employees, and it is planning to also conduct a DE&I survey on a regular basis. It aims to maintain and improve these metrics from those measured at the time of the intra-Group reorganization.
For details on the metrics and targets for the Company’s human capital strategy, please refer to Human Capital Strategy (Reinforcing Talent and Fostering a Culture).
Materiality Initiatives | Evaluation indicators and major items disclosed |
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Promote recruitment and acquisition of human resources that contribute to the realization of the growth strategies of each company and group |
Evaluation indicators
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Major items disclosed (FY2023) | |
Ensuring diversity for the creation of new values | Evaluation indicators
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Major items disclosed (FY2023) | |
Creation of opportunities to learn/gain experience |
Evaluation indicators
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Major items disclosed (FY2023) | |
Improvement of well-being |
Evaluation indicators
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Major items disclosed (FY2023) | |
Related Links |
One of the LY Corporation Group’s main businesses is the operation of internet media and services, which is heavily reliant on water resources as they are essential for electricity and cooling servers required for data center operations. In addition, as the Group collaborates with a wide variety of companies, the Group's entire supply chain has a tremendous impact on the environment. The Group believes that its responsibility to the global environment for future generations includes reducing greenhouse gas (GHG) emissions from its business activities and being less dependent on water resources. This will also help the Group reduce business risks as it will lead to the enhancement of its own procurement capabilities for raw materials.
Top-Priority Issues
• Carbon neutrality
Indicator: |
Amount of GHG emissions |
---|---|
Target: |
Reduce LY Corporation Group’s GHG emissions to virtually net-zero by FY2030 (Scope 1 & 2) |
Performance: |
94,067 t-CO2 (LY Corporation Group, FY2023) |
• Net-zero
Indicator: |
Amount of GHG emissions |
---|---|
Target: |
Reduce LY Corporation Group’s GHG emissions to virtually net-zero by 2050 (Scope 3) |
Performance: |
3,289,809 t-CO2 (FY2023) |
• Conservation of water resources
Indicator: |
Water consumption (per JPY 1 million in revenue) |
---|---|
Target: |
Reduce LY Corporation Group’s water consumption by 10% from FY2022 levels by FY2030 |
Performance: |
0.367 m3 (FY2023) |
Materiality Initiatives | Evaluation indicators and major items disclosed |
---|---|
Tackling climate change (decarbonization) Scopes 1 & 2: achieve net-zero GHG emissions by 2030 (fulfilling RE100 commitments) Scope 3: understand and reduce Scope 3 aiming for SBTi certification, with a view to achieving net-zero emissions by 2050 (SBTi's Net-Zero Standard) |
Evaluation indicators
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Major items disclosed (FY2023) | |
Initiatives in sustainable use of natural capital Resource recycling: promotion of waste recycling initiatives Water resources: understanding the amount of water used in areas where water resources are depleted, expanding the range of indices on water use |
Evaluation indicators
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Major items disclosed (FY2023) | |
Continued investment in environmental domains |
Evaluation indicators
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Major items disclosed (FY2023) | |
Related Links |
One of the top-priority issues for the Group is to establish and improve its own unique Group governance structure that aligns with the speed and growth of its business and the industry. The Sustainability Committee plays a central role in promoting initiatives that require continuous efforts over the medium- to long-term, including areas such as human rights. Furthermore, the effectiveness of the Board of Directors will also be enhanced to strengthen corporate governance and raise the Group's corporate value.
Top-Priority Issues
• Establishment/improvement of a corporate governance system unique to the Company
Indicator: |
Independence/diversity of the Board of Directors |
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Target: |
(1) Ensure that the majority of the Board of Directors are independent outside directors |
Performance: |
(1) Published relevant information on the shareholders meeting’s notice of resolutions |
Materiality Initiatives | Evaluation indicators and major items disclosed |
---|---|
Establishment of a global standard data governance structure* |
Evaluation indicators
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Major items disclosed
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Compliance with and promotion of the Respect for Basic Human Rights policy |
Evaluation indicators
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Major items disclosed
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Establishment/improvement of a corporate governance system unique to the company |
Evaluation indicators
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Major items disclosed (FY2023)
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Related Links |
*The materiality initiatives and evaluation indicators will be promptly updated based on the recurrence prevention measures against information leakage due to unauthorized access and their progress.
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