Basic Policy

The MEDIA DO Group’s mission is “unleashing a virtuous cycle of literary creation” and its vision is “More Content for More People!” These principles exemplify our commitment to building a social ecosystem founded on co-creation among the creators and publishers who produce written works, the users of these works, the eBook stores that serve as points of contacts between these two, and the Group, which functions as an intermediary between these parties.

Accordingly, sustainability for the MEDIA DO Group entails a concerted effort by all officers and employees to carry out their business activities based on a sense of responsibility and pride toward the contributions made by the Group’s businesses and services. These contributions support the development of a healthy economy and the cultural advances stimulated by written works. Based on this belief, we seek to address social and environmental issues, such as those identified by the United Nations Sustainable Development Goals (SDGs), through management practices and strategies founded on our mission and vision. In addition, we view business opportunities and risks through the lens of environmental, social, and governance (ESG) issues as we pursue increased corporate value by helping to resolve social issues while achieving steady growth.

MEDIA DO Group Basic Sustainability Policy

Based on the principles of growth and potential espoused by its corporate creed,
the MEDIA DO Group (comprised of MEDIA DO Co., Ltd., and its consolidated
subsidiaries) aspires to have a positive impact on society as a facilitator for
maximizing the value provided to all stakeholders involved in the process of
exercising its corporate philosophy. We thereby aim to become an organization
that will thrive over the next century.

At the MEDIA DO Group, we are firm believers in the potential of content
as well as in the endless possibilities of all people. By connecting the unlimited
potential of content and people, we seek to always function as an intermediary
that unites the world and helps shape a better future for society.

Sustainability Promotion System

MEDIA DO realizes that environmental and social issues have the potential to impact its business and corporate value creation activities, and these issues are being addressed through internal action. Such action is guided by the Sustainability Committee, which was established in June 2022. The Sustainability Committee is chaired by the director who serves as CSO and CFO and who is responsible for corporate divisions, with executive officers responsible for the Human Resources Department and the Accounting Department serving as vice chairs. Other members include officers designated by the chairperson and by representatives from other divisions. In principle, meetings of the Sustainability Committee will be held four times a year (once every quarter).

The committee also submits reports to the Board of Directors at the appropriate times after meetings in order to facilitate the identification and investigation of climate change and other risks and opportunities with the potential to affect the sustainability of the Company, the assessment of sustainability strategies and measures, and the enhancement of oversight and monitoring functions.

Moreover, the committee will coordinate with the Corporate Planning Department and the General Affairs Department, which will function as its secretariat, to maintain an understanding of social trends and shareholder expectations to be reflected in the medium- to long-term mission, vision, and strategies of the Company. This information will also be utilized when identifying and revising material issues. Based on the opportunities and risks identified in the process of defining material issues, concrete sustainability strategies, risk items to be managed, and response policies will be set for divisions and Group companies, and relevant measures will be monitored regularly.

Process for Selecting Material Issues

  1. ➊ Identification of Issues

    • Identification of social issues based on SASB, GRI, IIRC, and other international reporting frameworks and criteria of ESG evaluation firms, and tracking and compilation of hypotheses regarding desires of specific stakeholder groups
  2. ➋ Analysis of Issues

    • Comparison and analysis of identi-fied social issues and opportunities and risks with the potential to impact fulfillment of MEDIA DO’s purpose and implementation of business strategies
    • Examination of analysis results and business risks to compile long list
  3. ➌ Reporting to and Evaluation and
    Examination by Management

    • Prioritization of issues on long list through evaluation of potential impacts on stakeholders, strategy implementation, the environment, society, econo-mies, etc., by the Sustainability Committee to compile short list
    • Analysis of and deliberation on short list issues by the Executive Committee and the Board of Directors
  4. ➍ Selection of Material Issues

    • Selection of material issues with significant potential to impact management through deliberation and resolution by the Board of Directors

Material Issues Map

Monitoring and Disclosure

The Sustainability Committee will play a central role in the regular monitoring of initiatives for addressing material issues. From the perspective of stakeholder engagement, the material issues will be periodically reassessed, and information on related initiatives will be disclosed on MEDIA DO’s corporate website as appropriate.

Stakeholder Engagement

Stakeholder Principal Engagement Venues Area of Influence on Management/Strategies
Customers Contact venues
  • Improvement/development of products and services based on customer input
  • Appropriate management of personal information
Websites, social media
Email magazines
Sales activities, everyday communication
  • Improvement of value provided through value chain via stronger business partnerships
  • Fair business practices
  • Building of close relationships founded on mutual trust
Briefings for business partners
Business partner questionnaires
Shareholders and other investors General Meeting of Shareholders
  • Improvement of management quality through constructive conversations with shareholders and other investors
  • Appropriate accounting practices and timely information disclosure
  • Development of transparent and highly effective governance systems
Briefings for institutional investors
Integrated reports
Investor relations website
Meetings with investors
Employees Management policy briefings
  • Enhancement of workplaces and systems to share Company vision and help employees exercise individuality
  • Prevention of all forms of harassment
  • Promotion of occupational health and safety
  • Recruitment, cultivation, and retention of diverse human resources
  • Provision of opportunities for growth
Employee surveys (Employee Net Promoter Score® surveys, stress checks, etc.)
Internal communications (newsletters, owned media, etc.)
Employee training (for new graduates, mid-career hires, and managers)
Health consultations with industrial physicians and public health nurses
Conduct guidelines
Natural environment Reduction of environmental impact from business activities
  • Popularization of eBooks through business activities
  • Promotion of internal digital transformation
Information disclosure based on TCFD recommendations
Communities and industries Donations, sponsorship, and other forms of support
  • Partnership with communities and society
  • Contributions to local communities and industry through business
  • Identification and resolution of social issues using cutting-edge technologies
Development of businesses based outside of urban centers
Participation in and leadership of industry organizations (W3C, ABJ, JEPA, etc.)
Press Press releases
  • Earnest communication of accurate information
  • Transparent presentation of corporate value
Everyday communication

The MEDIA DO Group’s Material Issues

Theme Details Opportunities Risks

Preservation and optimal use
of natural capital

The MEDIA DO Group aims to continue to be a viable conglomerate even a century from now. The preservation and optimal use of natural capital is an important responsibility for the purpose of accomplishing this goal, as well as for reducing environmental impacts and preserving a pristine natural environment for future generations. The Group’s efforts do not stop at measuring and optimizing use of natural capital in its business activities; we also aspire to support the sustainability of our industry and operating environment through active involvement in the optimization of product mixes and resource use practices across the industry

  • Creation of business opportunities by examining ideal mix of paper and electronic mediums across the publishing industry and promoting digital transformation
  • Promotion of eBooks to grow business while contributing to effective use of paper and other resources and reductions in energy used in distribution
  • Concern for industry depression due to potential increases in energy consumption and greenhouse gas emissions from returning and destroying physical books
  • Increased costs for introducing and adopting renewable energy and damage to social reputation due to slow adoption

Sustainability for the MEDIA DO Group entails a concerted effort by all officers and employees to carry out their business activities based on a sense of responsibility and pride toward the contributions made by the Group’s businesses and services to the development of a healthy economy and the cultural advances stimulated by written works. We carry out our business activities based on the understanding that this approach is congruent with our mission and our vision while also being a driver of corporate value creation.

  • Exercise of corporate philosophy and contributions to social development and intellectual creation
  • Provision of social infrastructure through frameworks and systems deemed secure and reliable by creators, publishers, stores, users (readers), and other stakeholders
  • Mutual development with stakeholders founded on trust-based relationships and improvements to MEDIA DO’s presence
  • Impediments to social development and intellectual creation from declines in creative works and creators
  • Reduction to competitiveness and earnings through accelerated industry decline and diminishment of MEDIA DO’s presence

MEDIA DO’s corporate creed states that “MEDIA DO will continue to grow so long as its people grow.” As indicated by this statement, we view human resources as indispensable to the ongoing growth of the Company. We therefore seek to create a workplace environment that draws out the growth and potential of our employees and that allows all employees to achieve independence and demonstrate their growth and potential as they take the initiative in tackling new challenges.

  • Stabilization of management foundation through development of physically, mentally, and socially fulfilling workplace environment that contributes to human resource recruitment and retention
  • Enhancement of human capital and improvement of productivity driven by acceptance and inclusion of diverse values and individuals
  • Difficulty in recruiting and retaining human resources and instability of management foundation resulted from growing negative impacts associated with workplace environment
  • Reduced service quality, customer success, and labor productivity due to human capital shortages

As described in its corporate creed, the MEDIA DO Group believes in the potential of its employees and aspires to create mutually beneficial win–win relationships with employees in which the growth and ambitions of employees drive the growth of the Group. To this end, training and evaluation systems are being improved and expanded to cultivate people who are adept at transforming change into opportunities with their innovativeness and at tying these opportunities to the creation of new ideas or solutions to issues via entrepreneurship.

  • Improvement of organization resilience through cultivation of independent and autonomous human resources based on consideration of changing employment types and needs of consumers and other stakeholders
  • Increased opportunities for innovation created by fostering entrepreneurial spirit and providing opportunities to exercise skills and grow
  • Decreased resilience and weakened organization foundations as a result of lack of organizational flexibility
  • Reduced competitiveness and earnings opportunities due to diminished capacity for innovation

We are keenly attuned to the relationship between society and the MEDIA DO Group as we seek to link the sustainability of society to the value created by the Group and to achieve improvements thereof. At the same time, we adopt a collective impact approach, reaching beyond the boundaries of the organization to partner with various stakeholders in order to generate a positive impact on society by addressing the issues faced by communities and society as a whole.

  • Creation of positive collective impact through partnership with communities and associated stakeholders
  • Increased trust from stakeholders and brand value achieved by contributing to resolution of community issues and to community development
  • Fewer business opportunities and chances to create positive social impact
  • Reduced trust from stakeholders, fewer supporters, and lower brand value following declines in opportunities for coordination and engagement with a wide range of stakeholders

The MEDIA DO Group takes a technology-first approach toward developing and supplying solutions to the issues faced by the industry and society as a whole. By embracing internal digital transformation, we seek to deliver products and services that are matched to the needs of our diverse stakeholders and their equally diverse values to become an entity that supports the digital transformation of the content industry.

  • Increased competitiveness through diversification achieved by selecting optimal technologies for business/service needs
  • Greater capacity to supply solutions by positioning in-house research and development of sophisticated technologies as opportunities for engineering growth
  • Diminished competitiveness through lessened value or commodification of technological assets
  • Reduced business opportunities and efficiency due to inability to use ideal technologies

The MEDIA DO Group’s mission is to provide the social infrastructure necessary for robust cultural development and thereby support sound digital distribution and a creation cycle for written works. The development of frameworks and systems that are deemed secure and reliable by creators, publishers, stores, users (readers), and other stakeholders is imperative to accomplishing this mission. We have therefore identified information security as an important management priority and are implementing measures to strengthen security on a Groupwide basis.

  • Provision of frameworks and services that are deemed secure and reliable by creators, publishers, stores, users (readers), and other stakeholders
  • Acquisition of trust from customers through faithful fulfillment of function as distribution infrastructure for written works
  • Damage to reputation through information or data leakage
  • Costs or loss of earnings opportunities due to service failures or other incidents

Strategic investment and
business portfolio

The MEDIA DO Group is committed to the maximization of its business value through efficient business operation and disciplined investment based on a consideration of cost of capital and profitability of used capital. In tandem with these investments, we are optimizing our business portfolio while diversifying our management and businesses in order to accomplish our goal of becoming a Publishing Platformer.

  • Increased corporate value through management emphasizing cost and profitability of capital based on balance sheet
  • Enhanced competitiveness by diversifying management while maintaining good financial balance through investment discipline and effective management resource allocation
  • Decreased business value as a result of impairment of non-current assets or other adverse impacts on balance sheet
  • Reduced corporate value due to lower growth potential

Enhancement of corporate

The MEDIA DO Group recognizes the following as important management issues to be addressed as its management grows increasingly more global: The improvement of management health and transparency through enhanced corporate governance to facilitate the further broadening of its business and the heightening of corporate value. To ensure impartial and highly effective management, the Group will continue to strengthen its corporate governance systems through such means as more effectively allocating resources and expediting decisions under the guidance of the Board of Directors.

  • Realization of vision by reinforcing management foundation through ongoing pursuit of highly transparent and reliable corporate governance
  • Increased trust from stakeholders
  • Weakened management foundations, reduced business continuity, and lower corporate value due to insufficient governance functions
  • Damage to reputation and corporate value

Commitment to

Entrenching corporate ethics and awareness of these principles throughout the Group will be imperative to improving the health and transparency of management. By fostering such awareness, the MEDIA DO Group aims to develop a corporate culture in which all internal institutions, officers, and employees make fair and accurate decisions. At the same time, we pledge to remain mindful of our social responsibility as a good corporate citizen in all of our business activities in order to maintain the trust of our various stakeholders.

  • Fulfillment of responsibilities as good corporate citizen through legal compliance and honest business activities
  • Increased trust from society earned through disciplined business activities
  • Halts or delays to business activities due to insufficient compliance or legal violations
  • Loss of social trust and damage to reputation and corporate value

ESG Highlights

FY2019 FY2020 FY2021 FY2022
Environmental Total CO2 emissions (Scope 1 + Scope 2, t-CO2)*1 171.1 126.0 130.9 170.2
Scope 1 CO2 emissions (kg- CO2) 9.4 10.7 5.8 5.0
Scope 2 CO2 emissions (kg- CO2) 171,070.4 125,985.8 130,908.2 170,206.5
Electricity consumption (kWh) 365,535 283,688 296,844 376,563
Water use (m3) 15.9 11.1 7.4 14.8
Paper use (t) 2.85 1.11 1.11 1.43
294 [78] 295 [70] 328 [72] 345 [79]
167 [15] 153 [13] 162 [16] 172 [25]
127 [63] 142 [57] 166 [56] 173 [54]
51.08 54.52 55.50 50.14
89 87 104 97
70 68 80 75
19 19 24 22
21.35 21.84 23.08 22.68
0 [0] 2 [18.18] 8 [24.24] 2 [18.18]
0 [0] 0 [0] 1 [11.11] 1 [11.11]
6 [14.6] 3 [10.3] 4 [9.09] 7 [13.73]
15 [31.91] 16 [30.77] 20 [33.33] 14 [30.43]
207 [58] 216 [36] 62 [17] 64 [32]
117 [4] 113 [4] 31 [7] 35 [14]
90 [54] 103 [32] 31 [10] 29 [18]
13 [3.49] 5 [1.37] 8 [2.01] 9 [2.75]
10 2 1 2
3 3 7 7
28 [66] 27 [57] 28 [55] 31 [64]
3 2 2 4
34.89 35.39 35.35 34.11
36.16 37.21 36.84 34.56
33.20 33.38 33.88 33.57
58 59 48 46
49 50 42 39
9 9 6 7
2 2 1 0
5 7 9 8
100 100 100 83.35
169.5 168.5 176.0 174.2
14.2 14.7 15.5 12.6
1.8 0 0 0
95.0 95.7 97.0 96.8
92.3 99.7 99.7 100.0
40,000 40,293 51,031 194,293
0 0 0 1
0 0 0 0
700 777 830 881
0 0 0 0
0 0 0 0
3.0 39.2 59.5 70.0
Governance Number of directors Total 6 6 6 6
Women 0 0 1 1
Outside 2 2 2 2
Independent 2 2 2 2
Number of Audit & Supervisory Board members Total 3 3 3 3
Women 0 0 0 0
Outside 2 2 2 2
Independent 2 2 2 2
Ratio of independent directors 33.3 33.3 33.3 33.3
Ratio of independent auditors 66.6 66.6 66.6 66.6
Total compensation paid to directors (millions of yen) 84 98 107 107
Total compensation paid to Audit & Supervisory Board members (millions of yen) 14 13 15 16
Number of reports received through whistleblowing systems 0 0 0 11

Scope: Former MEDIA DO HOLDINGS Co., Ltd.; former MEDIA DO Co., Ltd.; Digital Publishing Initiatives Japan Co., Ltd.; and MEDIA DO TECH TOKUSHIMA Co., Ltd., for the fiscal year ended February 29, 2020; current MEDIA DO Co., Ltd., and MEDIA DO TECH TOKUSHIMA Co., Ltd., for the fiscal year ended February 28, 2021, forward

*1 CO2 emissions volumes were calculated with reference to Greenhouse Gas Emissions Accounting and Reporting Manual (Ver. 4.6), which was published by the Ministry of the Environment and the Ministry of Economy, Trade and Industry and is based on the Act on Promotion of Global Warming Countermeasures.

*2 Figures include full-time, part-time, and temporary employees.

*3 Figures represent the number of individuals that were first promoted to a management position in the relevant fiscal year.

*4 Figures represent the number of employees recruited and employed by MEDIA DO TECH TOKUSHIMA Co., Ltd.

*5 Figures include full-time, part-time, and temporary employees (including managers).

*6 Occupational accident frequency rate = (Number of occupational accident casualties ÷ Aggregate workhours) × 1,000,000

*7 The ABJ certification mark indicates that the certified eBook store or eBook distribution service is distributing authorized copies of content based on usage agreements with the copyright holder.

*8 Figures include donations, sponsorships, and investments.