LY Corporation Achieves Carbon Neutrality in FY2025

In FY2025, LY Corporation (the “Company”) reduced Scope 1 and Scope 2*1 greenhouse gas (GHG) emissions from its standalone business activities to net zero and achieved carbon neutrality.*2

The LY Corporation Group (the “Group”) uses a significant amount of electricity to operate data centers and other facilities for one of its principal businesses, internet media and services. In light of these business characteristics, the Group positions the reduction of GHG emissions associated with its business activities as part of “fulfilling responsibilities for the global environment and future generations,” while also regarding it as an important initiative to reduce its own business risks. Accordingly, the Group has identified GHG emissions, including those from its supply chain, as a priority issue and aims to reduce overall energy consumption under its renewable energy strategy and other related initiatives.

Based on this approach, the Group has established its 2030 Carbon Neutrality Declaration, under which it aims to reduce the Group's Scope 1 and Scope 2 GHG emissions to net zero by FY2030. In addition, the Group aims to reduce all Scope 1, Scope 2, and Scope 3 GHG emissions to net zero by FY2050.
To achieve these goals, the Company announced its 2025 Carbon Neutrality Declaration, under which it committed to reducing Scope 1 and Scope 2 GHG emissions from its standalone operations to net zero by FY2025, and has advanced its initiatives ahead of the rest of the Group. In FY2025, the Company also sourced 100% of its electricity from renewable energy.

Additionally, the Company participates in the global initiative RE100, that brings together companies committed to sourcing 100% renewable electricity for their operations, and is actively promoting the adoption of renewable energy. In January 2025, to procure renewable energy with additionality, the Company entered into a virtual power purchase agreement (VPPA) with Vena Energy for the Maniwa Solar Project, which is being developed in Maniwa City, Okayama Prefecture. Under the agreement, the Company will purchase environmental value equivalent to 85 GWh annually for 20 years through non-FIT non-fossil certificates.*3 Through procurement that enables the development of new renewable energy facilities, the Company will advance the transition to renewable electricity for its own operations while also contributing to the broader adoption of renewable energy in Japan.

In addition, the Company is engaged in the conservation of natural capital through the use of forest-derived J-Credits. The Company concluded J-Credit sales and purchase agreements with TAJIMA FOREST CORPORATION in February 2024 and with Owase City, Mie Prefecture, in November 2024.*4,5 Through these agreements, the Company is further advancing its initiatives toward achieving net-zero GHG emissions while collaborating with its partners to support forest management, biodiversity conservation, and other activities that maintain and enhance natural capital.

Photo: Maniwa Solar Project: Built on the site of a former golf course, eliminating the need for new land development and reducing the impact on the natural environment.

Following the achievement of the goals set forth in its 2025 Carbon Neutrality Declaration, the Group will further accelerate its efforts to achieve the goals of its 2030 Carbon Neutrality Declaration, under which it aims to reduce the Group's Scope 1 and Scope 2 GHG emissions to net zero by FY2030.
Looking ahead to FY2050, the Group aims to reduce all GHG emissions associated with its business activities, including Scope 3 emissions, to net zero. To realize this, the Group incorporates environmental considerations into its supplier procurement policy and will work together with suppliers to further reduce Scope 3 emissions through contractual arrangements and engagements.

Guided by its mission, "WOW Our Users!," LY Corporation will continue to reduce the environmental impact of its business activities while working with Group companies, business partners, and local communities to contribute to the realization of a decarbonized society and the development of a sustainable society.

*1 Scope 1: Direct GHG emissions from fuel consumption and other sources within the company's operations. Scope 2: Indirect GHG emissions associated with the use of electricity, etc. purchased by the company. Scope 3: Indirect GHG emissions associated with business activities, including the supply chain, other than Scope 1 and Scope 2.
*2 The following voluntary measures are taken with respect to GHG emissions: Scope 1: Offsetting through the use of J-Credits Scope 2: Reflecting renewable energy certificates from neighboring countries for emissions at overseas locations where renewable energy is difficult to procure
*3 Press release:“LY Corporation Signs Its First PPA” (January 17, 2025)
*4 Press release:“LY Corporation and TAJIMA FOREST Conclude 10-Year Sales and Purchase Agreement for Forest-Derived J-Credits” (February 15, 2024)
*5 Press release:“LY Corporation and Owase City Conclude 10-Year Sales and Purchase Agreement for Forest-Derived J-Credits” (November 30, 2024)