Materiality

Materiality

Materiality Identification Process

Using international frameworks and various guidelines as a starting point for understanding social issues, the Group analyzed business opportunities and risks for the Group, and then organized and identified key issues through dialogue with stakeholders.

Step
01

Identification and Extraction of Social Issues

Create a comprehensive long list of social issues by referring to international frameworks and guidelines on sustainability such as the Global Reporting Initiative, ISO26000, SASB, etc.

Step
02

Evaluate the level of importance to our group

Analyze and evaluate each item from both risk and opportunity perspectives based on the basic policies of the Purpose as well as the Medium-Term Management Plan (FY3/2024-FY3/2028).
The items of high importance to our group were extracted from a backcasting perspective based on our future vision.

Step
03

Understanding the level of importance to our various stakeholders

Evaluation based on interviews with internal and external directors and employees (management/career/recent hires).
Evaluation based on interviews with shareholders, business partners, local governments, and experts.

Step
04

Organize priority social issues

Identify high-priority social issues based on Step1-3.

Step
05

Validity assessment and identification of materiality

Discuss the identified materiality at the Sustainability Committee.
Finalize the materiality after deliberation and approval by the Board of Directors.

Key Areas	materiality
Creating a sustainable ecosystem through technology	Pursue new technologies for a better future	The Group’s strength is that it has always pursued new technologies and implemented them in society while capturing their essence, and it has and will continue to explore new technologies without being bound by existing systems and concepts.
	Creating a prosperous society through the utilization and application of fintech	The widespread use of fintech in society, which is easy for everyone to use, will contribute not only to the economy but also to the realization of a prosperous society by stimulating the flow of funds, improving accessibility and inclusiveness, and reducing environmental impact.
	Business co-creation efforts to contribute to a sustainable society	The company will continue to work with various partners to co-create new businesses, believing that creating sustainable businesses together with startups and business partners will contribute not only to the growth of the Group’s business but also to the realization of a sustainable society.
Creating an environment in which all employees can thrive	Creating a system which allows an inclusive and diverse workforce to thrive	The Group respects the diversity of each and every employee, and believes that creating a positive and rewarding work environment and systems will help the Group meet the diverse needs and challenges of society, and will continue to promote initiatives for human resources.
Creating an environment in which all employees can thrive	Developing Human Resources Management initiatives that can pave the way to the future	The Group believes that fostering employees who are brave enough to take on the challenges of a changing social environment while leveraging their individual strengths will enable these employees to build independent careers and enrich their own lives. The Group also believes that this will lead to the growth of the Group.
Building Trust to move forward Together with Society	Promote responsible corporate activities	As a company active in society and the economy, the Group will promote its business activities with a commitment to sound and transparent governance, compliance with laws and regulations, and consideration for the local and global environment.
	Co-existing in harmony with society while respecting all human rights.	The Group will respect the human rights of all people involved in the Group and value chain, and strive to coexist in harmony with society.
	Stable operation of systems that support society	As a group that operates businesses that serve as critical infrastructure for society, it is the Group’s responsibility to provide and operate safe and secure systems without interruption. The Group will continue to strive to improve the robustness and safety of its systems in response to the characteristics of the business and changes in society.

Materiality KPIs and Impact Stories

The DG Group has set KPIs for each of the eight materiality items identified across three key areas. Each responsible department has developed “Impact Stories” that visualize the impact on society and business, while keeping in mind the value created (outcomes), and set KPIs for each materiality. Going forward, the Group will continuously operate the PDCA cycle using KPIs as indicators to enhance the effectiveness of its sustainability management.

【Business】 Creating a sustainable ecosystem through technology

Key Areas	Materiality KPI	Achievement Timeline
Pursue new technologies for a better future	・Number of products & services positively impacting society	Annually
Creating a prosperous society through the utilization and application of fintech	・Payment transaction volume ・Number of payment transactions	Annually
Business co-creation efforts to contribute to a sustainable society	Invest in startups related to ESG ・Direct 50% of funds in Open Network Lab ESG 1 Investment Limited Partnership to ESG-related startups ・20% of investment targets in the same fund to be directed towards climate change related startups	Annually

Impact Story ＜Social Impact＞	Impact Story ＜Business Impact＞
・Contribute to economic revitalization and market creation by providing information and commercial transaction environments that respond to diverse values. ・Contribute to mitigating climate change issues by digitizing existing social systems and further promoting energy and resource conservation. ・Foster a secure and trustworthy society through services that reduce security risks. ・Contribute to correcting inequalities caused by regional, economic, and financial disparities through improved financial and commercial transaction access via digital technology. ・Contribute to solving the social issue of serious labor shortages by providing services that promote labor-saving and productivity improvement through digitalization. ・Contribute to realizing a sustainable society by promoting innovation in social and environmental fields through investment in ESG-related startups and co-creating new businesses and industries.	Achieve stable business growth by developing businesses that address medium- to long-term social and environmental challenges.

Impact Story ＜Social Impact＞

Impact Story ＜Business Impact＞

・Contribute to economic revitalization and market creation by providing information and commercial transaction environments that respond to diverse values.
・Contribute to mitigating climate change issues by digitizing existing social systems and further promoting energy and resource conservation.
・Foster a secure and trustworthy society through services that reduce security risks.
・Contribute to correcting inequalities caused by regional, economic, and financial disparities through improved financial and commercial transaction access via digital technology.
・Contribute to solving the social issue of serious labor shortages by providing services that promote labor-saving and productivity improvement through digitalization.
・Contribute to realizing a sustainable society by promoting innovation in social and environmental fields through investment in ESG-related startups and co-creating new businesses and industries.

Achieve stable business growth by developing businesses that address medium- to long-term social and environmental challenges.

【HR】 Creating an environment in which all employees can thrive

Key Areas	Materiality KPI	Achievement Timeline
Creating a system which allows an inclusive and diverse workforce to thrive	・Engagement Index ‘Total Engagement’ of 4.0 points or higher ・Female leadership representation: 30％ or more	By March 31, 2028
Developing Human Resources Management initiatives that can pave the way to the future	・Engagement Index ‘Human Resources Development Index’ improvement of +1.0 points compared to fiscal year ended March 2025	By March 31, 2030

Impact Story ＜Social Impact＞	Impact Story ＜Business Impact＞
Contribute to society by accelerating innovation and creating groundbreaking services.	By establishing an environment and systems where employees with diverse backgrounds can thrive, fostering employee attachment and job satisfaction, the Group promotes productivity improvement and new idea generation, leading to retention of excellent talent and enhanced recruitment capabilities.
Contribute to society by creating businesses that lead to mitigating social issues.	Continuous upskilling to create advanced technologies and businesses enhances both individual employee growth and overall organizational productivity and competitiveness, becoming a vital source of overall business growth.

【Foundation】 Building Trust to move forward Together with Society

Key Areas	Materiality KPI	Achievement Timeline
Promote responsible corporate activities	・Further improve governance disclosure & hold 200 or more dialogues with stakeholders annually	Annually
	・Compliance training for 100% of the workforce	Annually
	・50% reduction in greenhouse gas (GHG) emissions compared to fiscal year ended March 2022 ・Achieve carbon neutrality across the entire value chain compared to fiscal year ended March 2022	Fiscal Year ending March 2031 Fiscal Year ending March 2051
Co-existing in harmony with society while respecting all human rights	・Formulate and release DG’s Human Rights Policy ・Harassment prevention training for 100% of the workforce	By October 2025 Annually
Stable operation of systems that support society	・Cybersecurity management system coverage rate ・Security training for 100% of the workforce	Annually

Impact Story ＜Social Impact＞	Impact Story ＜Business Impact＞
Promote sustainable economic development by correcting information asymmetry through proactive information disclosure, enhancing fairness and transparency in capital markets, and improving the quality of investor decision-making and capital market credibility.	By enhancing risk management capabilities and transparency, we gain trust from stakeholders including investors and business partners, realize stable business operations, identify business opportunities to reduce risks, and achieve long-term enhancement of corporate value.
Support sound and sustainable growth by revitalizing markets through fair competition.	By ensuring all employees understand fundamental compliance knowledge and behavioral guidelines, we reduce risks of legal violations and misconduct, enhance trust from investors and business partners, and achieve continuous maintenance and improvement of corporate value.
Contribute to realizing a sustainable society by reducing greenhouse gas emissions and suppressing the progression of global warming.	Enhance corporate value through improved corporate reputation and investor evaluation, as well as cost reduction and risk management.
Contribute to realizing a fair and sustainable society by fostering social diversity and a culture of coexistence.	Integrating human rights considerations into management contributes to gaining social trust, reducing risks, and improving employee engagement, thereby enhancing corporate value from multiple perspectives.
Provide a foundation for smooth economic activities by supporting critical social infrastructure and deliver peace of mind and safety.	By reducing risks of incidents such as information leaks and avoiding serious damage including business disruptions and loss of credibility from system troubles, we enhance customer trust and achieve management stability.