Dentsu Signs First Virtual PPAs in Japan for Japan’s Advertising Industry

- Long-term Procurement of Environmental Value from Renewable Energy Facilities -

Dentsu (Brand: dentsu; Headquarters: Dentsu Group Inc.; Location: Minato-ku, Tokyo; President & Global CEO: Takeshi Sano) has signed two Virtual Power Purchase Agreements (Virtual PPAs) for its Japan operations: one with HEXA Renewables Japan Co., Ltd. (Headquarters: Chiyoda-ku, Tokyo; Representative Director: Chenhua Shen) on May 18, 2026, and another with JDC Green Energy, LLC, a wholly owned subsidiary of JDC CORPORATION (Headquarters: Minato-ku, Tokyo; Representative Director, President: Yukio Hasegawa) on September 2, 2026. To our knowledge, these are the first Virtual PPAs signed in Japan’s advertising industry^*1.

A Virtual PPA is a contract under which a company purchases the environmental value - i.e., the renewable energy attributes, such as renewable energy certificates, associated with the electricity generated - from renewable energy power plants over the long term. This enables companies to expand their use of renewable energy while also supporting the development of new power generation facilities.

Dentsu has defined climate change as one of its key management priorities and is working to reduce greenhouse gas (GHG) emissions from its business activities while expanding its use of renewable energy.

Dentsu is also a member of RE100, a global initiative whose members commit to sourcing 100% renewable electricity for their operations, and has set GHG emission reduction targets validated by the Science Based Targets initiative (SBTi). The Virtual PPAs announced today represent a concrete step toward these commitments within dentsu’s Japan operations.

The Virtual PPAs cover newly built power generation facilities, meaning that the procurement has “additionality” - i.e., it supports the construction of new renewable energy facilities rather than purchasing from existing sources. Through these agreements, dentsu expects to procure environmental value associated with approximately two million kWh of renewable electricity annually, corresponding to an estimated CO2 emissions reduction of approximately 850 tons^*2. This represents approximately 3.2% of the Group’s total electricity consumption, based on 2025 figures. The environmental value procured through the agreements is expected to be allocated to dentsu offices in Japan.

Balancing Agriculture and Renewable Energy
In addition to their decarbonization benefits, certain facilities covered by the Virtual PPAs offer additional sustainability-related attributes.

Certain power plants covered by this agreement include nine agricultural solar power plants that repurpose abandoned farmland. At these facilities, sakaki (a sacred evergreen tree used in Shinto rituals) is cultivated beneath the solar panels, achieving both continued agricultural use of the land and renewable energy generation.

Through the Virtual PPAs, dentsu aims to procure environmental value from these agricultural solar power facilities over the long term, contributing not only to decarbonization but also to the productive use of local farmland and the creation of a sustainable society.

In pursuit of “the sustainable development of our clients and society”^*3, a core element of the Group’s Purpose, dentsu will continue to work with stakeholders, including clients and partners, to pursue sustainability initiatives aligned with its stated environmental goals. The activities described in this release relate specifically to dentsu’s Japan operations.

Overview of the Virtual PPAs

This initiative utilizes the Virtual PPA scheme provided by DIGITAL GRID Corporation (Headquarters: Minato-ku, Tokyo; Representative Director, President and CEO: Yusuke Toyoda), which operates a trading platform for electricity and environmental value.

*1:   To the best of our knowledge, based on publicly available information reviewed by Dentsu Group Inc. and DIGITAL GRID Corporation as of September 2026.

*2:   CO2 emissions reduction estimate based on Japan’s grid emissions factor as published by the Ministry of the Environment.

*3:   For details, please refer to the Purpose page on Dentsu Group Inc.’s website:
URL: https://www.group.dentsu.com/en/brand/

This release contains forward-looking statements based on current expectations regarding future events, including expected power generation, CO2 emissions reductions, and operational timelines. Actual results may differ materially due to various factors, including changes in energy market conditions, regulatory requirements, or operational circumstances.

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Contact:
Jumpei Kojima, Toru Nakagawa
Group Corporate Communications Office, Dentsu Group Inc.
Email: group-cc@dentsu.com