Materiality

When formulating our Transformation Business Plan by updating our medium-term management plan in view of diverse changes in the business environment, we also revised our materiality in line with the current situation. Our new materiality is composed of three business themes aimed at achieving the Groupā€™s purpose, underpinned by a foundation of ESG promotion.

Materiality Review

Background

Three years have passed since we launched the Materiality. Significant changes have since emerged in social problems our businesses face in tandem with the rapid developments in society and the transformation of our businesses. Considering the environment surrounding us, we have decided to review the Materiality as we formulate a Transformation Business Plan, an improved version of the medium-term management plan announced in 2020. Moreover, we have set specific targets for the Materiality issues, based on "backcasting", further integrating sustainability and business promotion.

Identification and Review of Materiality Issues

We have decided on three key focus areas. Based on internal discussions and suggestions from outside experts, we had discussions at management level, reviewed the Materiality and set targets. We will proactively inform our stakeholders of our progress in setting Materiality targets and engage with them in a responsible manner.

  1. STEP 1
    Redefine the corporate groupā€™s vision.
    Examine the direction of the Transformation Business Plan considering social changes that will affect the sustainable development of both society and the Company, and through our Corporate Philosophy ā€œBenesse = Well-Beingā€, our group purpose to realize it, and "backcasting" from society in 2028 and beyond. As the first step in achieving the plan, we have focused on being a corporate group overwhelmingly committed to solving social problems by putting people first.
  2. STEP 2
    Clarify points of emphasis.
    Determine the key points in the Materiality to achieve the group purpose and the goals of the Business Transformation Plan.
    • Corporate Philosophy ā€œBenesse = Well-Beingā€ and Group Purpose.
    • Social issues faced by people at each stage of life, which we identified by "backcasting" from the future society of 2028 and beyond.
    • Implementing conscientious management that reflects expectations that companies should contribute to the sustainability of society.
  3. STEP 3
    Hypothesize materiality.
    Hypothesize the Materiality by closely examining the importance of the social problems identified in step 2 for each life stage and considering societyā€™s expectations of the Company.
  4. STEP 4
    Discuss at management level.
    Discuss at the Executive Committee, chaired by the CEO and comprising executive officers, and at the Sustainability Promotion Committee, chaired by the Managing Executive Officer and comprising the CEO, internal directors and executive officers.
  5. STEP 5
    Dialogue with stakeholders.
    Have dialogues with experts, NPOs and others based on the hypothesis, confirming expectations and requests to the Group from other outside parties and reflect them in the review process.
  6. STEP 6
    Consider targets.
    Set up goals in line with the Transformation Business Plan based on the Materiality.
  7. STEP 7
    Approval by the Board of Directors.
    Discuss and approve at the board meeting following discussion at the Management Committee and other meetings.

Benesseā€™s Value Creation Process

We seek sustainable growth for both the Benesse Group and society by bringing people ā€œBenesse = Well-Beingā€ through our business and social activities, and continuously creating new value that helps solve social problems.

Value Creation Process

Materiality

We will provide products and services to help resolve key social issues in the fields of learning support for children, career development support for working adults, and nursing care. Furthermore, we will establish and maintain a solid foundation for achieving our purpose and will aim for sustainable growth while earning the trust of society.

Supporting diversified and multilayered learning experiences to provide motivational education services

Issues centered on people
  • Changes in parenting environment
  • Disparities in educational opportunities
  • Decreased motivation to study
  • Diversification of learning objectives and postgraduation pathways
  • Changes in the way teachers work
Group capital
  • Technology
  • Social capital (customer base, schools/municipalities, community network)
  • Intellectual capital
Commitment

Provide education services that accommodate diversity and disparity of educational opportunity and help more children to thrive as they grow.

Business fields
  • Kids & Family Business
  • Out-of-School Learning Business
  • School and Teacher Support Business
Concrete approaches
  • Expand product lineup to meet diverse needs by harnessing our educational expertise and DX on the back of our unrivalled customer base.
  • Support the diversifying choices of postgraduation pathways and changes in the way teachers work based on existing platforms used by a large number of schools.
  • Provide educational opportunities that are readily accessible by all children.
Initiative examples & Visions
  • Establishment of a scheme/model for new value creation that links student assessment data, daily learning data, and the school administration system.
  • Provision of accessible learning opportunities through next generation Shinkenzemi in view of the FY2025 Next GIGA Program.
Corresponding SDGs goals
  • SDG 4 QUALITY EDUCATION
  • SDG 5 GENDER EQUALITY
  • SDG 17 PARTNERSHIPS FOR THE GOALS

Supporting sustainable corporate growth and personal career development through learning experiences

Issues centered on people
  • Changes in required qualities and abilities
  • Autonomous career development by individuals
Group capital
  • Human capital (strengthen human resources and increase number of personnel)
  • Investment
  • Technology
  • Social capital (customer base, governmental/corporate networks)
  • Intellectual capital
Commitment

By helping individuals take ownership of their career/life, companies can drive their own sustainable corporate growth.

Business fields
  • University and Working Adult Business
  • New business development, M&A
Concrete approaches
  • Lead the reskilling market by leveraging our rapidly expanding Udemy network of individual, corporate, and municipal users.
  • Expand our human resource matching business (recruitment, transfers, job searches, job changes) by providing reskilling and skill development services to individuals.
Initiative examples & Visions
  • A capital alliance with SkyHive, a world-leading labor market database provider
  • Inclusion of Waris (provider of recruitment support services for Japanese women) into the Group
Corresponding SDGs goals
  • SDG 4 QUALITY EDUCATION
  • SDG 5 GENDER EQUALITY
  • SDG 8 DECENT WORK AND ECONOMIC GROWTH
  • SDG 17 PARTNERSHIPS FOR THE GOALS

Respecting the unique individuality of the elderly while resolving structural nursing care issues

Issues centered on people
  • Increase in number of elderly people requiring nursing care
  • Shortage of nursing care workers
  • Delays in nursing care DX
Group capital
  • Human capital (professional human resources)
  • Technology
  • Intellectual capital (know-how)
  • Social capital (multifaceted connections with nursing care personnel)
Commitment

Develop more nursing care workers who can serve as role models while also enhancing the QOL of the elderly, thereby making nursing care a more attractive job choice.

Business fields
  • Nursing Care and Childcare Business
  • Nursing Care Peripheral Businesses
Concrete approaches
  • Develop nursing care workers with highly specialized skills based on a systematic in-house training system, and widely share their expertise with society at large.
  • Visualize tacit knowledge of experts through the use of technology.
  • Ease nursing staff shortages through business efforts.
Initiative examples & Visions
  • Introduction of an internal qualification and related training system to foster nursing care experts, dubbed Majikami, who will help enhance the QOL of the elderly (Over 600 Majikami to be certified by FY2025)
  • Provision of support to acquire certified care worker qualification
  • Expansion of Benesse sensing homes that employ AI technology (All care homes by FY2024)
Corresponding SDGs goals
  • SDG 3 GOOD HEALTH AND WELL-BEING
  • SDG 5 GENDER EQUALITY
  • SDG 8 DECENT WORK AND ECONOMIC GROWTH
  • SDG 11 SUSTAINABLE CITIES AND COMMUNITIES
  • SDG 17 PARTNERSHIPS FOR THE GOALS

Nurturing organizations and people as drivers of transformation

Benesseā€™s policy

Encourage individuals to achieve autonomous growth based on a learning culture and provide relevant opportunities.

Commitment

Develop diverse talent to lead the drive to resolve social issues through business.

Concrete approaches/targets
  • Visualize the key positions and specialized expertise required to drive transformation and digitalization, and implement training accordingly, aiming to achieve a fill rate of digital human resources of more than 85% in FY2025.
  • Promote diversity in terms of experience, age, gender, etc., having at least one female director/executive officer and achieving a minimum of 30% female managers by FY2025.
  • Promote career development support to enhance employee engagement. Engagement score target: A
Corresponding SDGs goals
  • SDG 5 GENDER EQUALITY
  • SDG 8 DECENT WORK AND ECONOMIC GROWTH
  • SDG 17 PARTNERSHIPS FOR THE GOALS

Preserving a sustainable global environment

Benesseā€™s policy

As part of our efforts to fulfill our corporate philosophy and purpose, position the environment as one of our material management issues and take proactive steps to promote related measures in line with the Groupā€™s business characteristics.

Commitment

Preserve the global environment with the aim of providing a secure world for future children to grow up in.

Concrete approaches/targets

Set medium- and long-term GHG reduction targets and acquire SBTi certification.

  • Benesse Group: Scope 1 and 2 (1.5Ā°C targets) : < 2030 : 42.4% > < 2041 : 100% >
  • Benesse Corporation: Scope 1 and 2 (1.5Ā°C targets) : < 2030 : 52.8%* > < 2041 : 100% > < 2050 : 100%* > Scope 3 (2Ā°C targets) : < 2030 : 14.8%* > < 2050 : 39.4%* >
* SBTi certification already acquired.
Corresponding SDGs goals
  • SDG 7 AFFORDABLE AND CLEAN ENERGY
  • SDG 12 RESPONSIBLE CONSUMPTION AND PRODUCTION
  • SDG 13 CLIMATE ACTION
  • SDG 14 LIFE BELOW WATER
  • SDG 15 LIFE ON LAND
  • SDG 17 PARTNERSHIPS FOR THE GOALS

Cultivating a corporate culture conducive to serving society and customers with integrity

Benesseā€™s policy

Build and operate a management structure that supports the autonomous growth of operating companies and further enhances our management oversight function.

Commitment

Make Group-wide efforts in line with our corporate philosophy and purpose to promote integrity and sound management to maximize customer value through our business.

Concrete approaches/targets
  • Set codes of conduct at all Group companies based on the Benesse Group purpose and Principles (within one year in the case of a new Group company).
  • Execute ongoing compliance activities using a PDCA cycle at all operating companies.
  • Further enhance information security by continuing to hold Security Day, providing regular security training, etc.
  • Enhance human rights initiatives through human rights due diligence and awareness-raising activities.
Corresponding SDGs goals
  • SDG 5 GENDER EQUALITY
  • SDG 10 REDUCED INEQUALITIES
  • SDG 16 PEACE, JUSTICE, AND STRONG INSTITUTIONS
  • SDG 17 PARTNERSHIPS FOR THE GOALS

Last updated : 2023/11/09