Materiality

Dentsu has significantly revised how it addresses materiality based on the two-axes assessment of "importance from management perspective" and "importance from stakeholder perspective" —new material issues as they emerge—in order to realize “an invitation to the never before.” This became our purpose in a bid to maximize corporate value for stakeholders. We view materiality as a key element for dentsu to achieve sustainable growth and value creation in order to evolve into a B2B2S company under a new management structure.

Group materiality

Business ethics & Compliance and Data security

  • Business ethics & Compliance
  • Data privacy and cyber security
  • Risk and crisis management
  • Corporate governance

Human capital development

  • Human capital development
  • Focus on well-being and enhancement of how we work
  • Developing future generations

Innovation leadership

  • Co-creation and global collaboration
  • Customer engagement and loyalty
  • Technology and creativity for a sustainable society
  • Contributing to local communities and society
  • Leading innovation with new ideas
  • New value for new markets

Climate action

  • Sustainable supply chain management
  • Getting to net zero, including decarbonizing media
  • Driving sustainable consumption through advertising and business activities

DEI

  • Diversity, Equity & Inclusion
  • Respect for human rights
  • Responsible media

Materiality formulation process

Step1: Identification of issues

Major issues have been identified in the Group’s current and future-oriented strategies and business models, Board of Directors and sustainability-related meeting materials, and dentsu’s purpose. The issues were narrowed down to 36 after analyses had been carried out of the following matters in dentsu’ s business domain:

1. Reports and frameworks published by rating agencies and specialized organizations such as NGOs and NPOs

2. Media reports on sustainability

3. Highly relevant social issues using AI

Step2: Ranking and grouping of issues

For issues identified in Step 1, questionnaires were issued to, and interviews were conducted with, Group management and stakeholders. In addition, a quantitative assessment was performed. The results of the assessments were mapped based on the two axes of “importance from management perspective” and “importance from stakeholder perspective.” 19 key issues were identified as a result.
The issues were further categorized into 5 major themes, and a materiality draft was created.

Step3: Management approval

The materiality draft was discussed at the Group Sustainability Committee, the Group Executive Management Meeting, and the Group’s Board of Directors, where the draft’s issues critical for dentsu were confirmed and the draft approved. Starting this year, we plan to implement initiatives to address materiality, as well as to conduct periodic revisions of materiality in response to changes in social conditions, management policies, and stakeholder expectations.

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