Sustainability Management｜LY Corporation

The LY Corporation Group (the “Group”) is dedicated to engaging with social issues through its business activities, aiming to achieve both a sustainable society and sustained corporate growth.
To achieve its mission, the Group carries out initiatives aligned with six identified material topics, addressing risks associated with medium- to long-term changes while also uncovering new growth opportunities.

Basic Policy on Sustainability

The LY Corporation Group’s mission is to "Create an amazing life platform that brings WOW! to our users." The Group will bring positive impact to society through its businesses and promote sustainability management that takes responsibility for future generations by addressing social issues, including the global environment and human rights.

To promote sustainability management, the LY Corporation Group establishes the following Basic Policy on Sustainability and identifies six material topics.

Promote sustainability from the standpoints of both society and business
Work collectively to address sustainability while taking advantage of the unique characteristics of each Group company
Take on challenges without being bound by precedents, and strive to continuously generate innovation

Sustainability Management Structure

To promote initiatives addressing various sustainability issues across the Group companies, LY Corporation (the “Company”) has established an operational framework centered around the Sustainability Committee under the supervision of the Board of Directors, as outlined below. The Sustainability Committee includes two groups: the Environment Working Group and the Human Rights Working Group, each responsible for examining and promoting measures to address specific issues. Additionally, the Risk Management Committee, which oversees Enterprise Risk Management (ERM), and the Supervisory Organization of Risk Management collaborate with sustainability-related organizations to address sustainability-related risks.

Regarding the supervisory structure, the Board of Directors receives proposals and reports on important matters from the Sustainability Committee as needed, and also receives reports on company-wide risks, including sustainability-related risks, from the Risk Management Committee once every six months in principle. The Board of Directors oversees sustainability-related risks and their management through deliberation and resolution of the important matters brought up for discussion. Matters proposed or reported by the Sustainability Committee to the Board of Directors include the policy for reviewing material topics in response to changes in the social and business environment, as well as policies related to human capital.

Diagram on Sustainability Management Structure. The Sustainability Committee is chaired by the President and Representative Director, and the Environment Working Group and the Human Rights Working Group are established as umbrella organizations. The Board of Directors receives proposals and reports on important matters from the Sustainability Committee as needed, and also receives reports on company-wide risks from the Risk Management Committee. The Board of Directors oversees sustainability-related risks and their management through the deliberation and resolution of the important matters brought up for discussion.

Roles, Composition, Frequency of Meetings, and Major Agenda of Each Organization

*Please scroll horizontally for more information.

Organization	Roles	Composition	Frequency of meetings	Major agenda
Sustainability Committee	The executive body promoting the sustainability initiatives of the LY Corporation Group	Chair: President and Representative Director Members: Executive Corporate Officer (CFO/Governance) Corporate Officer (Sustainability) Senior General Manager (Human Capital & General Affairs) Independent Outside Director	In principle, four times a year	Approval of material topics Meeting reports from each working group
Environment Working Group	Discussion and promotion of environmental policies and initiatives of the LY Corporation Group	Chair: Corporate Officer (Sustainability) Members: Environmental officers from each Group company	In principle, three times a year	Activity reports from each company Aggregation reports of environmental data from each company and sharing of outlooks and initiatives
Human Rights Working Group	Discussion and promotion of human rights policies and initiatives of the LY Corporation Group	Chair: Senior General Manager (Human Capital & General Affairs) Members: Human rights officers from each Group company	In principle, twice a year	Activity reports from each company Report on the implementation of a human rights survey
Risk Management Committee	Policy decisions related to identifying and managing significant risks of the LY Corporation Group	Chair: President and Representative Director Members: Directors (excluding Outside Directors) Person designated by the Chief Executive of Risk Management Corporate Officer (Risk Management)	In principle, twice a year	Identification of top risks Risk management reports from risk owners

In addition, in order to ensure that the directors* are committed to promoting sustainability, the Company has incorporated sustainability evaluation as an indicator for determining cash bonuses for their executive remuneration within the range of ±5%. The sustainability evaluation consists of the previous fiscal year's results of each materiality indicator, including progress of achieving carbon neutrality, diversity indicators, and security governance, which were established to realize the Company’s mission and medium- to long-term enterprise value enhancement, as well as an external assessment by ESG rating agencies. The sustainability evaluation indicator (±5%) is resolved by the Nominating and Remuneration Committee, of which the majority is composed of independent outside directors.

*Excluding directors who serve on the Audit and Supervisory Committee

Risk Management

As an ERM framework, LY Corporation has set in place a comprehensive company-wide risk management system to accurately identify and respond to management and business-related risks at the LY Corporation Group. Risk management related to sustainability are also integrated into this system. The Company identifies risks that could affect the achievement of the mission statement of the LY Corporation Group and business goals through risk assessments conducted under its ERM framework. These risks are then analyzed from two angles: (i) how severe the impact would be if the risk materializes (i.e., how much it would affect the ability to achieve goals), and (ii) the likelihood of the risk materializing (i.e., how likely and frequently it would occur). From this, the Company assesses the risk level based on impact × likelihood and prepares measures accordingly.
Among the risks identified under the ERM framework, those related to environmental and social issues are assessed by the ESG management division (the department responsible for managing such risks) based on risk assessment results collected from business divisions and Group companies. The department handles risk identification, evaluation, prioritization, and monitoring, and reports its findings to the Environment Working Group and Human Rights Working Group under the Sustainability Committee, where risk countermeasures are reviewed and implemented.

Related Links
Enterprise Risk Management (ERM)

Material Topics for the LY Corporation Group

The Company’s Views on Material Topics

LY Corporation strives to stay close to users and drive positive changes in society under its mission to "Create an amazing life platform that brings WOW! to our users." To realize this mission, the Company recognizes the importance of viewing both social issues and its own management challenges as opportunities to create new value. The material topics serve as a guiding framework for meeting social expectations while achieving medium- to long-term growth, balancing risk mitigation with the generation of new opportunities.

Background to the Revision of Material Topics

LY Corporation began reviewing its material topics in FY2024 following its intra-Group reorganization. In September 2025, the Company updated these topics in response to rapid social and business changes, including accelerated technological innovation such as generative AI, heightened concerns over climate change and information security, and increased uncertainty. Through a review of its business portfolio, the Company optimized the allocation of its management resources, identifying its broad user touchpoints across services such as search, messaging, commerce, and financial services as core strengths. Leveraging these touchpoints, which play an integral role in users’ daily lives, the Company developed its material topics to deliver sustainable value to society, building a new corporate culture that inherits the values fostered by LINE Corporation and Yahoo Japan Corporation. LY Corporation recognizes that it must not only adapt to medium-to long-term societal shifts—such as rapid AI advancement and climate change—but also take a leading role in addressing them. As a platform operator with diverse user touchpoints, the Company aims to contribute to both a sustainable society and corporate growth by identifying material topics that reflect these social and environmental challenges from a medium- to long-term perspective.

Material Topics Formulation Process

To ensure a proactive response to social issues and the sustainable enhancement of enterprise value, the LY Corporation Group systematically identifies material topics at the Group-wide level. This process is grounded in an analysis of risks and opportunities based on social expectations and the Group’s ERM framework.
The Group considers how social and environmental changes affect its business, and how its activities impact society and the environment—across short-, medium-, and long-term horizons—to determine priority topics.
The evaluation process incorporates feedback from executives, business unit leaders, Group companies, and stakeholders such as customers, partners, and employees. It also includes desktop research and multifaceted input from government officials and ESG experts.
To ensure objectivity and transparency in the identification and disclosure process, the Group refers to international reporting standards, including those established by the GRI, SASB, and others.
The identified material topics are integrated into management through discussions by the Sustainability Committee and approval and oversight by the Board of Directors and are regularly reviewed to reflect changes in society and business.

Step 1 Identification of material sub-topics	Create a long list based on frameworks (e.g., GRI, SASB), ESG index criteria, and LY Corporation Group’s ERM (risk/opportunity) analysis, etc. Narrow down to a shortlist by considering relevance to business operations

Step 2 Evaluation of material sub-topics	Conduct surveys, interviews, and desktop research involving key internal and external stakeholders Assess each item on two axes: “level of stakeholder concern” and “importance to the LY Corporation Group”

Step 3 Identification of material topics	Develop a materiality map based on evaluation results Ensure robustness of findings through dialogue with external experts, such as government officials and ESG specialists Finalize the draft on material topics through discussions with the top management

Step 4 Approval	Deliberate and resolve at the Sustainability Committee and Board of Directors Publicly disclose the LY Corporation Group’s material topics

Materiality Map

When creating the materiality map, the impact on enterprise value is assessed from both quantitative and qualitative perspectives, based on the relative significance of identified risks and opportunities. The identified material sub-topics are then mapped using two evaluation axes: “level of stakeholder concern” and “importance to the LY Corporation Group.” The assessment considers the scale of impact on stakeholders, the financial impact on the LY Corporation Group, and the likelihood of those impacts occurring.

Identification of Material Topics

Material sub-topics identified in the materiality map were reviewed and grouped based on their alignment with the LY Corporation Group’s core strengths, its diverse business domains, and evolving social and business conditions. Upon receiving approval from the Board of Directors, six material topics were defined for the LY Corporation Group.

*Please scroll horizontally for more information.

Identified Material Topics	Explanation	Material sub-topics	Stakeholders
Delivering Amazing WOW! Experiences Through Data & AI	The Group aims to enrich people’s lives and society by providing life platforms that deliver personalized services and high-quality user experiences through the use of generative AI, data, and other information technologies.	Use of data Deployment of AI Enhancement of customer experiences and satisfaction Advancement of fintech services	Customers Partners National and local governments Employees Regional communities Shareholders and other investors
Operating Safe & Secure Digital Platforms	The Group is committed to building and operating safe and secure digital platforms that ensure security, privacy, and fairness, creating an environment where everyone can securely access reliable, safe, and fair information every day.	Reinforcement of security governance and privacy protection Establishment of AI ethics and governance Provision of reliable life infrastructure Maintenance of integrity in internet advertising Countermeasures against illegal and harmful content Ensuring accessibility Creation of a trustworthy information environment with respect for freedom of expression
Addressing Disasters and the Digital Divide	The Group will contribute to an inclusive society where everyone can access information and services at any time through digital technology, by working with diverse public and private partners to respond to disasters and bridge the digital divide through IT literacy education.	Disaster preparedness, mitigation, and recovery support and pandemic response Bridging the digital divide through IT literacy education Enhancing convenience through digitalization Development of local communities
Establishing Governance to Support Sustainable Growth	The Group strives to build a corporate foundation that earns the trust of society and enables continuous business growth, by developing a governance framework that emphasizes both effectiveness and transparency, and by ensuring thorough compliance and risk management.	Thorough risk management Respect for human rights Maintenance of sound and effective corporate governance Thorough compliance and prevention of corruption Strengthening of supply chain management Ensuring a stable financial foundation Maintenance of a fair competitive environment Respect for and protection of intellectual property
Maximizing Human Capital Value	The Group aims to enhance human capital value by strengthening talent and fostering corporate culture, creating a foundation for individual growth through continuous challenges, and developing an environment rooted in understanding and respect for diversity to maximize both individual and organizational performance.	Development of human resources Fostering corporate culture Respect for human rights Promotion of diversity, equity, and inclusion
Fulfilling Environmental Responsibilities for Future Generations	Through the adoption of renewable energy, construction of next-generation data centers, and provision of eco-friendly products, the Group works to address climate change, conserve natural capital, and promote resource circulation through its businesses and services, contributing to a sustainable planet where future generations can thrive.	Response to climate change and conservation of natural capital Supply chain management Realization of a circular economy

Approach to Material Topics

Through its materiality initiatives, the Company aims to fulfill its mission, to “Create an amazing life platform that brings WOW! to our users.”
To this end, it identifies risks and opportunities, sets indicators and targets, and monitors progress on an ongoing basis from both quantitative and qualitative perspectives. The scope of these indicators and targets may apply to the LY Corporation Group or LY Corporation alone, with achievement timelines set individually based on the progress of each topic.

Delivering Amazing WOW! Experiences Through Data & AI

The Group aims to enrich people’s lives and society by providing life platforms that deliver personalized services and high-quality user experiences through the use of generative AI, data, and other information technologies.

Material sub-topics

Use of data
Deployment of AI
Enhancement of customer experiences and satisfaction
Advancement of fintech services

Risks	Opportunities
Loss of public trust and user attrition resulting from improper use or management of data and AI Decline in competitiveness and customer base due to delays or quality issues in new service development, insufficient improvement of existing services, ineffective use of AI, or poor market acceptance of new or existing services	Expansion of the customer base, increased market share, and enhanced competitiveness through service personalization and sophistication driven by AI and data Improved labor productivity through AI-driven operations, cost optimization through product integration, and accelerated business growth and innovation

Indicators	Targets	FY2024 Results
LINE MAU/Population *1	75% or more	79.4%
Yahoo! JAPAN DUB *2	110 million or more	108 million

*1 Calculated by dividing the number of users who have activated LINE with a valid account within each month by the total population (in Japan)
*2 The number of browsers used to access Yahoo! JAPAN services. If both the browser and the app on a smartphone are used, they are counted as duplicates.

Initiatives
The LY Corporation Group is committed to addressing challenges faced by individuals and society, through the use of data and AI. It aims to continuously provide convenient and inspiring user experiences. ■Launch of LINE AI and LINE AI Talk Suggestions LINE AI is a free service that allows users to ask questions as if chatting with a friend, gather information, and generate images. LINE AI Talk Suggestions supports users by helping them compose messages when they are busy or unsure how to reply. Related Links New Generative AI-Powered Services Launched on LINE LINE AI and LINE AI Talk Suggestions Now Available LINE Evolves Into a Platform That Connects People With AI (Japanese only) ■Yahoo! JAPAN App Launches “AI Assistant” Feature Yahoo! JAPAN app launched an AI assistant feature that provides deeper information in chat format. By allowing users to ask questions in a conversational manner, such as “How can I make canned mackerel taste its best?” or “What is a foolproof self-introduction that sparks conversation?”—the feature helps them quickly access relevant information, even when their queries are abstract. Related Links Yahoo! JAPAN App Launches “AI Assistant” Feature That Answers Questions and Provides Deeper Information in Chat Format (Japanese only) ■Yahoo! JAPAN News Launches AI Topics Yahoo! JAPAN News launched “AI Topics,” a new feature that uses generative AI to select key stories from a wide range of articles and generate and organize headlines approximately every 30 minutes. Available in the News tab of the Yahoo! JAPAN app (iOS version), this feature enables users to stay informed of the most relevant and trending news at any time. Related Links Yahoo! JAPAN News Launches “AI Topics,” a New Feature That Uses Generative AI to Select Important, Trending News from a Wide Range of Articles (Japanese only) ■Launch of LY Corporation Data Story Official “note” The official platform features reports on real-life themes related to data usage such as data science, data marketing, and AI, as well as introductions to social contribution initiatives involving data in collaboration with educational institutions and local governments. Related Links LY Corporation Data Story Official “note” (Japanese only)

Initiatives

The LY Corporation Group is committed to addressing challenges faced by individuals and society, through the use of data and AI. It aims to continuously provide convenient and inspiring user experiences.

■Launch of LINE AI and LINE AI Talk Suggestions
LINE AI is a free service that allows users to ask questions as if chatting with a friend, gather information, and generate images. LINE AI Talk Suggestions supports users by helping them compose messages when they are busy or unsure how to reply.

■Yahoo! JAPAN App Launches “AI Assistant” Feature
Yahoo! JAPAN app launched an AI assistant feature that provides deeper information in chat format. By allowing users to ask questions in a conversational manner, such as “How can I make canned mackerel taste its best?” or “What is a foolproof self-introduction that sparks conversation?”—the feature helps them quickly access relevant information, even when their queries are abstract.

■Yahoo! JAPAN News Launches AI Topics
Yahoo! JAPAN News launched “AI Topics,” a new feature that uses generative AI to select key stories from a wide range of articles and generate and organize headlines approximately every 30 minutes. Available in the News tab of the Yahoo! JAPAN app (iOS version), this feature enables users to stay informed of the most relevant and trending news at any time.

■Launch of LY Corporation Data Story Official “note”
The official platform features reports on real-life themes related to data usage such as data science, data marketing, and AI, as well as introductions to social contribution initiatives involving data in collaboration with educational institutions and local governments.

Operating Safe & Secure Digital Platforms

The Group is committed to building and operating safe and secure digital platforms that ensure security, privacy, and fairness, creating an environment where everyone can securely access reliable, safe, and fair information every day.

Material sub-topics

Reinforcement of security governance and privacy protection
Establishment of AI ethics and governance
Provision of reliable life infrastructure
Maintenance of integrity in internet advertising
Countermeasures against illegal and harmful content
Ensuring accessibility
Creation of a trustworthy information environment with respect for freedom of expression

Risks	Opportunities
Loss of social trust and user disengagement due to deficiencies, inappropriate responses, or legal violations related to security, privacy, AI, advertising, or infrastructure Increased operational costs arising from responses to security incidents or service outages	Enhanced brand value and stabilized revenue opportunities through strengthened security governance and AI/data risk management that fosters trust Sustained customer relationships and revenue opportunities through enhanced brand value built on ethical and socially responsible practices

Indicators	Targets	FY2024 Results
Number of critical security incidents *1	0	1

*1 Critical cases at LY Corporation involving inquiries or administrative guidance from regulatory authorities

Initiatives
To earn and uphold the trust of its users and society, LY Corporation places the highest importance on delivering safe and secure digital platforms with strong security and privacy protections. ■Promoting Comprehensive Cybersecurity Measures in Line With International Standards LY Corporation implements a range of cybersecurity initiatives, drawing on international frameworks such as the Cybersecurity Framework of the U.S. National Institute of Standards and Technology (NIST). The initiatives include the enforcement and institutionalization of recurrence prevention measures, the steady execution of security enhancements, the development of systems for managing and protecting user data in Japan, and the formulation of a security roadmap. Related Links Information and Progress on Measures to Prevent a Recurrence of Information Leakage Due to Unauthorized Access Development and Data Management Frameworks for Services Provided by LY Corporation (Japanese only) ■Establishing the Basic Policy on AI Ethics, Governance Framework, and Internal Operational Rules Based on recommendations from an expert advisory panel, LY Corporation’s Board of Directors approved the Basic Policy on AI Ethics in 2022. Since then, the Company has been enhancing the policy’s effectiveness and developing internal operational rules to build a robust governance structure for responsible AI use. Related Links Responsible AI Initiatives ■Establishing a Risk Assessment and Monitoring Framework for Contractors LY Corporation conducts risk assessments when outsourcing operations and maintains a continuous monitoring framework, including follow-up evaluations when necessary, from the perspectives of security, compliance, and other relevant factors. Related Links Purchase and Procurement (Japanese only) ■Ensuring the Integrity and Transparency of Ad Distributions LY Corporation maintains a healthy advertising environment by eliminating inappropriate ad content and placing emphasis on protecting user interests. The Company also promotes greater transparency in ad operations through the regular publication of transparency reports that disclose the number of reviews conducted and reasons for ad disapprovals. Related Links Improving Service Quality Undertakings to Improve the Quality of the Advertising Services

Initiatives

To earn and uphold the trust of its users and society, LY Corporation places the highest importance on delivering safe and secure digital platforms with strong security and privacy protections.

■Promoting Comprehensive Cybersecurity Measures in Line With International Standards
LY Corporation implements a range of cybersecurity initiatives, drawing on international frameworks such as the Cybersecurity Framework of the U.S. National Institute of Standards and Technology (NIST). The initiatives include the enforcement and institutionalization of recurrence prevention measures, the steady execution of security enhancements, the development of systems for managing and protecting user data in Japan, and the formulation of a security roadmap.

■Establishing the Basic Policy on AI Ethics, Governance Framework, and Internal Operational Rules
Based on recommendations from an expert advisory panel, LY Corporation’s Board of Directors approved the Basic Policy on AI Ethics in 2022. Since then, the Company has been enhancing the policy’s effectiveness and developing internal operational rules to build a robust governance structure for responsible AI use.

Related Links
Responsible AI Initiatives

■Establishing a Risk Assessment and Monitoring Framework for Contractors
LY Corporation conducts risk assessments when outsourcing operations and maintains a continuous monitoring framework, including follow-up evaluations when necessary, from the perspectives of security, compliance, and other relevant factors.

■Ensuring the Integrity and Transparency of Ad Distributions
LY Corporation maintains a healthy advertising environment by eliminating inappropriate ad content and placing emphasis on protecting user interests. The Company also promotes greater transparency in ad operations through the regular publication of transparency reports that disclose the number of reviews conducted and reasons for ad disapprovals.

Addressing Disasters and the Digital Divide

The Group will contribute to an inclusive society where everyone can access information and services at any time through digital technology, by working with diverse public and private partners to respond to disasters and bridge the digital divide through IT literacy education.

Material sub-topics

Disaster preparedness, mitigation, and recovery support and pandemic response
Bridging the digital divide through IT literacy education
Enhancing convenience through digitalization
Development of local communities

Risks	Opportunities
Decline in public trust due to inadequate disaster preparedness, insufficient support—including user support—during disasters or pandemics, and a lack of commitment to nurturing the next generation of talent in the IT and media sectors	Development of new services and customer acquisition through disaster preparedness and support for disaster and pandemic response Enhanced social presence and reputation through support for next-generation talent development

Indicators	Targets	FY2024 Results
Population coverage rate through disaster agreements with local governments *1	95% or more	98.6%
Number of municipalities with LINE Official Accounts *2	1,788 by 2030	1,500 or more

*1 Calculated as the total population of municipalities that have signed disaster agreements with LY Corporation, divided by the total population.
*2 Number of municipalities have launched and manage a LINE official account under the special municipal plan.

Initiatives
To respond to events that threaten the lives and property of users, LY Corporation engages in awareness-raising activities during normal times and conducts support efforts during emergencies. ■Disseminating Shelter and Relief Information via LINE Official Account In response to the Noto Peninsula Earthquake, a staff member dispatched from Kobe City provided official, accurate information in real time through Suzu City’s LINE official account. The messages included updates on shelter availability, aid supplies, food distribution sites, and disaster victim certification procedures. A collection of 636 materials, including more than 600 messages and 36 images, were compiled and published as a case study. It includes actual message texts, distribution timing, and comments from the staff, making it a valuable reference for future disasters. Related Links LY Corporation Releases Study Results on the Use of Information Tools During the Noto Peninsula Earthquake and a Collection of LINE Official Account Use Cases for Disaster Situations (Japanese only) ■Special Feature on the Noto Peninsula Earthquake: “Let’s Support Noto Together” LY Corporation released an analytical report using location-based big data to examine the current evacuation situation following the Noto Peninsula Earthquake and heavy rainfall disasters. At the same time, it launched a “Shopping is Supporting” campaign to encourage recovery by promoting purchases of local specialty products from the region. Related Links Let’s Support Noto Together (Japanese only) ■Launched Push Notifications for Shelter Openings LY Corporation launched push notification services for “shelter opening information” issued by local governments via Yahoo! JAPAN Daily Life, the Yahoo! JAPAN app, and the Yahoo! JAPAN Disaster Alert app. By linking with the L-ALERT system, this service quickly notifies app users of nearby shelter openings, helping to reduce the burden on local governments during disasters while supporting timely communication with residents. Related Links Yahoo! JAPAN Daily Life, Yahoo! JAPAN App, and Yahoo! JAPAN Disaster Alert App Begin Push Notifications for Shelter Openings Issued by Local Governments (Japanese only) ■Publication of Case Studies on the Use of LINE Official Accounts by Local Governments LINE Official Account enables local governments to deliver essential, community-focused information, such as disaster alerts, child-rearing support, and event notices, via push notifications, while also supporting two-way communication. More than 1,500 municipalities across Japan have adopted the service, making it an increasingly common tool for public-sector communication with residents. Related Links A Collection of LINE Official Account Use Cases in Local Governments (Japanese only)

Initiatives

To respond to events that threaten the lives and property of users, LY Corporation engages in awareness-raising activities during normal times and conducts support efforts during emergencies.

■Disseminating Shelter and Relief Information via LINE Official Account
In response to the Noto Peninsula Earthquake, a staff member dispatched from Kobe City provided official, accurate information in real time through Suzu City’s LINE official account. The messages included updates on shelter availability, aid supplies, food distribution sites, and disaster victim certification procedures.
A collection of 636 materials, including more than 600 messages and 36 images, were compiled and published as a case study. It includes actual message texts, distribution timing, and comments from the staff, making it a valuable reference for future disasters.

■Special Feature on the Noto Peninsula Earthquake: “Let’s Support Noto Together”
LY Corporation released an analytical report using location-based big data to examine the current evacuation situation following the Noto Peninsula Earthquake and heavy rainfall disasters. At the same time, it launched a “Shopping is Supporting” campaign to encourage recovery by promoting purchases of local specialty products from the region.

■Launched Push Notifications for Shelter Openings
LY Corporation launched push notification services for “shelter opening information” issued by local governments via Yahoo! JAPAN Daily Life, the Yahoo! JAPAN app, and the Yahoo! JAPAN Disaster Alert app.
By linking with the L-ALERT system, this service quickly notifies app users of nearby shelter openings, helping to reduce the burden on local governments during disasters while supporting timely communication with residents.

■Publication of Case Studies on the Use of LINE Official Accounts by Local Governments
LINE Official Account enables local governments to deliver essential, community-focused information, such as disaster alerts, child-rearing support, and event notices, via push notifications, while also supporting two-way communication.
More than 1,500 municipalities across Japan have adopted the service, making it an increasingly common tool for public-sector communication with residents.

Establishing Governance to Support Sustainable Growth

The Group strives to build a corporate foundation that earns the trust of society and enables continuous business growth, by developing a governance framework that emphasizes both effectiveness and transparency, and by ensuring thorough compliance and risk management.

Material sub-topics

Thorough risk management
Respect for human rights
Maintenance of sound and effective corporate governance
Thorough compliance and prevention of corruption
Strengthening of supply chain management
Ensuring a stable financial foundation
Maintenance of a fair competitive environment
Respect for and protection of intellectual property

Risks	Opportunities
Impeded growth and reputational decline due to ineffective or non-transparent governance, weak compliance and risk management, or lack of accountability in these areas Loss of business continuity and erosion of social trust and stability due to deficiencies in risk management systems	Greater stakeholder trust and expanded funding opportunities achieved through an effective and transparent governance structure, along with a strong commitment to compliance and respect for human rights. Increased enterprise value and social trust through robust risk response and stable business continuity Competitive advantage and market position gained through swift decision-making and strong compliance practices

Risks

Opportunities

Impeded growth and reputational decline due to ineffective or non-transparent governance, weak compliance and risk management, or lack of accountability in these areas
Loss of business continuity and erosion of social trust and stability due to deficiencies in risk management systems

Greater stakeholder trust and expanded funding opportunities achieved through an effective and transparent governance structure, along with a strong commitment to compliance and respect for human rights.
Increased enterprise value and social trust through robust risk response and stable business continuity
Competitive advantage and market position gained through swift decision-making and strong compliance practices

Indicators	Targets	FY2024 Results
Board effectiveness assessment results (conducted once a year) *1	Rating confirming the board’s effectiveness	Assessed as maintaining effectiveness
Completion rate of e-learnings on compliance issues *2	90% or more	98%

*1 The evaluation was conducted through interviews and questionnaires administered to LY Corporation’s directors, with the effectiveness results assessed by the Board.
*2 Data reflects annual training performance compiled from LY Corporation and its subsidiaries that outsource their training programs to LY Corporation, including information on training topics, intended audiences, and number of participants.

Initiatives
LY Corporation aims to build a corporate foundation that is supported by sustained business growth and trust from society. ■Evaluation of the Effectiveness of Board of Directors LY Corporation evaluates the effectiveness of the Board of Directors once a year. In FY2024, the Company evaluated the effectiveness on the following four points. The Board of Directors analyzed and discussed the results and concluded that the Company's Board of Directors is effective as a whole. (1) Feedback interviews on the Board of Directors meetings with outside directors serving on the Audit and Supervisory Committee (2) Questionnaires targeting all directors (3) Interview with internal directors (4) Discussions at the Governance Committee, etc. Related Links Corporate Governance ■Disclosure of Issues and Action Plans Discussed in the Board Effectiveness Evaluation Disclosed in “Analysis and Evaluation of the Effectiveness of Board of Directors (3) Challenges to be addressed in FY2025” in the Corporate Governance website. Related Links Corporate Governance ■Implementation of E-Learning Aimed at Promoting Compliance Awareness The LY Corporation Group conducted the following e-learning programs: Period: June 24–July 8, 2024 Topic: Receiving entertainment and gifts Completion rate: 99% Period: February 7–26, 2025 Topic: Learning Compliance Through Drama—Business Rules and Etiquette (When Using Social Media) Completion rate: 97% ■Promotion of ERM Activities LY Corporation implements risk management initiatives centered on ERM activities, risk intelligence, incident tracking across the Group, and the development of a risk-conscious culture, all aimed at minimizing risks. Related Links Enterprise Risk Management (ERM) ■Corporate Activities that Support/Respect International Human Rights Standards The LY Corporation Group identifies potential human rights risks and impacts arising from its business activities and has established a human rights due diligence process including assessment and identification, as well as mitigation and correction. In addition, the Group has set up a consultation channel for all stakeholders involved with LY Corporation to ensure human rights issues are properly identified and addressed. Related Links Respect for Human Rights

Initiatives

LY Corporation aims to build a corporate foundation that is supported by sustained business growth and trust from society.

■Evaluation of the Effectiveness of Board of Directors
LY Corporation evaluates the effectiveness of the Board of Directors once a year.
In FY2024, the Company evaluated the effectiveness on the following four points. The Board of Directors analyzed and discussed the results and concluded that the Company's Board of Directors is effective as a whole.
(1) Feedback interviews on the Board of Directors meetings with outside directors serving on the Audit and Supervisory Committee
(2) Questionnaires targeting all directors
(3) Interview with internal directors
(4) Discussions at the Governance Committee, etc.

Maximizing Human Capital Value

The Group aims to enhance human capital value by strengthening talent and fostering corporate culture, creating a foundation for individual growth through continuous challenges, and developing an environment rooted in understanding and respect for diversity to maximize both individual and organizational performance.

Material sub-topics

Development of human resources
Fostering corporate culture
Respect for human rights
Promotion of diversity, equity, and inclusion

Risks	Opportunities
Loss of opportunities for new business development and growth, along with rising costs, due to insufficient efforts to support talent development Decline in employee motivation and performance stemming from a deteriorating work environment and diminished engagement Reputational damage and disruption to supply chain partnerships caused by neglect of human rights or improper labor practices	Maximized performance and accelerated innovation through a culture and capability development framework that empowers employees to learn, take initiative, and grow through hands-on experience Enhanced corporate appeal by building a strong reputation as a workplace where individuals can maximize their growth and potential—thereby attracting top talent Promotion of employee psychological safety, supply chain stability, and social trust through ethical and transparent human capital management

Risks

Opportunities

Loss of opportunities for new business development and growth, along with rising costs, due to insufficient efforts to support talent development
Decline in employee motivation and performance stemming from a deteriorating work environment and diminished engagement
Reputational damage and disruption to supply chain partnerships caused by neglect of human rights or improper labor practices

Maximized performance and accelerated innovation through a culture and capability development framework that empowers employees to learn, take initiative, and grow through hands-on experience
Enhanced corporate appeal by building a strong reputation as a workplace where individuals can maximize their growth and potential—thereby attracting top talent
Promotion of employee psychological safety, supply chain stability, and social trust through ethical and transparent human capital management

Indicators	Targets	FY2024 Results
Changes in items related to “growth support,” “environment,” and “philosophy strategy,” in the engagement survey *1	Maintain or improve compared to previous fiscal year	(Results will be collected from FY2025)
Ratio of females in managerial positions *2	By 2030, same level as the gender composition of entire employees (33%)	19%

*1 Group-wide year-on-year performance in the engagement survey categories of growth support, environment, and philosophy strategy is evaluated using a three-point scale: improvement, maintenance, or no improvement.
*2 Figure as of March 31, 2025 for LY Corporation Managerial positions mean managers, senior managers, general managers, senior general managers, heads of in-house companies and groups

Initiatives
The Group upholds the concept of "connecting people with business to maximize the performance of human capital and organizations" as the cornerstone of its human resources strategy so that employees can maximize their performance and contribute to improving the organization's growth. ■Reinforcing Human Capital—Supporting Growth In addition to organizing INTERSECTION, a contest-style event that promotes the sharing of outstanding knowledge across LY Corporation Group companies, the Company provides a learning system that enables employees to study at their own pace based on their job needs and schedules, as well as regular training programs and e-learning opportunities. The Company also promotes career opportunities within the Group through an open application–based secondment program. Related Links Human Capital Strategy (Reinforcing Talent and Fostering a Culture) ■Reinforcing Human Capital—Fostering a Supportive Environment The LY Corporation Group promotes employee health through initiatives addressing lifestyle-related diseases, mental health, overwork prevention, and women’s health. These efforts support health and productivity management and contribute to reducing risks related to talent acquisition, development, and retention. They also help create an environment that enhances employee performance and fosters innovation. LY Corporation has also set a target of 90% improvement in presenteeism (work productivity). Related Links DE&I, Work Style, Well-Being —Creating an Environment for Maximizing Performance ■Fostering Corporate Culture Companies within the LY Corporation Group promote a sense of unity and shared values across their organizations through initiatives such as all-hands meetings, executive messaging, and employee recognition programs. At LY Corporation, the Company facilitates dialogue between management and employees on topics such as work styles, evaluation systems, and data governance, helping to instill corporate culture and align the organization’s direction. Related Links Human Capital Strategy (Reinforcing Talent and Fostering a Culture) ■Respect for Human Rights The LY Corporation Group stipulates the LY Corporation Group Human Rights Policy and is committed to complying with applicable laws and creating a workplace environment where all employees can thrive, regardless of their background or life stage. Related Links LY Corporation Group Human Rights Policy ■Promotion of Diversity, Equity, and Inclusion The LY Corporation Group has positioned “understanding and respecting diversity” as a key pillar of its overall talent strategy and promotes the development of inclusive environments across all Group companies. At LY Corporation, company-wide DE&I awareness surveys are conducted regularly to visualize employee awareness and the current state of the organization. Related Links DE&I, Work Style, Well-Being —Creating an Environment for Maximizing Performance

Initiatives

The Group upholds the concept of "connecting people with business to maximize the performance of human capital and organizations" as the cornerstone of its human resources strategy so that employees can maximize their performance and contribute to improving the organization's growth.

■Reinforcing Human Capital—Supporting Growth
In addition to organizing INTERSECTION, a contest-style event that promotes the sharing of outstanding knowledge across LY Corporation Group companies, the Company provides a learning system that enables employees to study at their own pace based on their job needs and schedules, as well as regular training programs and e-learning opportunities. The Company also promotes career opportunities within the Group through an open application–based secondment program.

■Reinforcing Human Capital—Fostering a Supportive Environment
The LY Corporation Group promotes employee health through initiatives addressing lifestyle-related diseases, mental health, overwork prevention, and women’s health. These efforts support health and productivity management and contribute to reducing risks related to talent acquisition, development, and retention. They also help create an environment that enhances employee performance and fosters innovation. LY Corporation has also set a target of 90% improvement in presenteeism (work productivity).

■Fostering Corporate Culture
Companies within the LY Corporation Group promote a sense of unity and shared values across their organizations through initiatives such as all-hands meetings, executive messaging, and employee recognition programs. At LY Corporation, the Company facilitates dialogue between management and employees on topics such as work styles, evaluation systems, and data governance, helping to instill corporate culture and align the organization’s direction.

■Respect for Human Rights
The LY Corporation Group stipulates the LY Corporation Group Human Rights Policy and is committed to complying with applicable laws and creating a workplace environment where all employees can thrive, regardless of their background or life stage.

■Promotion of Diversity, Equity, and Inclusion
The LY Corporation Group has positioned “understanding and respecting diversity” as a key pillar of its overall talent strategy and promotes the development of inclusive environments across all Group companies. At LY Corporation, company-wide DE&I awareness surveys are conducted regularly to visualize employee awareness and the current state of the organization.

Fulfilling Environmental Responsibilities for Future Generations

Through the adoption of renewable energy, construction of next-generation data centers, and provision of eco-friendly products, the Group works to address climate change, conserve natural capital, and promote resource circulation through its businesses and services, contributing to a sustainable planet where future generations can thrive.

Material sub-topics

Response to climate change and conservation of natural capital
Supply chain management
Realization of a circular economy

Risks	Opportunities
Decline in competitiveness due to loss of social trust and weakened stakeholder relationships stemming from delayed or insufficient responses to environmental issues Increased BCP-related and regulatory compliance costs due to climate change, along with negative impacts on business continuity from emerging water resource risks	Strengthened trust with customers and partners and expanded revenue opportunities through advanced environmental initiatives such as green data centers, renewable energy adoption, and biodiversity conservation Enhanced business continuity, supply chain stability, and corporate reputation through proactive adaptation to climate and natural capital risks Improved operational efficiency through cost optimization and expanded access to green financing driven by environmentally conscious management

Risks

Opportunities

Decline in competitiveness due to loss of social trust and weakened stakeholder relationships stemming from delayed or insufficient responses to environmental issues
Increased BCP-related and regulatory compliance costs due to climate change, along with negative impacts on business continuity from emerging water resource risks

Strengthened trust with customers and partners and expanded revenue opportunities through advanced environmental initiatives such as green data centers, renewable energy adoption, and biodiversity conservation
Enhanced business continuity, supply chain stability, and corporate reputation through proactive adaptation to climate and natural capital risks
Improved operational efficiency through cost optimization and expanded access to green financing driven by environmentally conscious management

Indicators	Targets	FY2024 Results
Scope 1, 2 & 3 GHG emissions 12	Virtually net-zero by FY2025 (Scope 1 & 2)*3	8,400 (mtCO2e)
	Virtually net-zero by FY2030 (Scope 1 & 2)	19,689 (mtCO2e)
	Virtually net-zero by FY2050 (Scope 1, 2 & 3)	4,004,124 (mtCO2e)
Water consumption (per JPY1 million in revenue)	Reduce by 10% from FY2022 levels by FY2030	0.431 (m3/JPY million)

*1 Scope 1: GHG emissions generated directly by the Company (e.g., fuel combustion)
Scope 2: GHG emissions generated indirectly by the Company (e.g., use of electricity supplied by other companies). Calculated based on the market-based method.
Scope 3: GHG emissions from activities such as raw material procurement and post-sale processes
*2 On a net basis (Scope 1 emissions were offset in FY2024. Click here for more information on carbon offsetting.)
*3 LY Corporation (non-consolidated)

Initiatives
The Group works to reduce its reliance on greenhouse gases and water resources, recognizing its dependence on electricity for data center operations and water for server cooling, as well as the impact across its value chain. ■Carbon Neutrality Initiatives The LY Corporation Group works toward achieving carbon neutrality and net zero through measures such as the introduction of renewable energy leveraging PPA agreements and implementation of carbon credit initiatives that support sustainable CO₂ reduction. Related Links Climate Change Strategies ■Protection of Water Resources The LY Corporation Group strives to conserve water resources by improving water use efficiency to reduce consumption and identifying priority areas through water risk analysis. Related Links Protection of Water Resources ■Initiatives Based on TCFD/TNFD Recommendations and Disclosure The Group engages in initiatives and disclosures based on the disclosure frameworks recommended by the TCFD and TNFD. Related Links TCFD Correspondence Table

Initiatives

The Group works to reduce its reliance on greenhouse gases and water resources, recognizing its dependence on electricity for data center operations and water for server cooling, as well as the impact across its value chain.

■Carbon Neutrality Initiatives
The LY Corporation Group works toward achieving carbon neutrality and net zero through measures such as the introduction of renewable energy leveraging PPA agreements and implementation of carbon credit initiatives that support sustainable CO₂ reduction.

Measurement and Assessment of Social Impacts (Social Values)

As part of an effort to achieve the identified materiality, LY Corporation measures and assesses social impacts (social values).

Measure

Measurement results

Major outcomes/indicators

Related materiality

Impact assessment of municipalities’ consultation services using LINE (SROI*)
Source : Impact Assessment of Municipalities’ Consultation Services Using LINE

SROI：1.89 (Breakdown)
Total benefits
JPY1,126,388,221 Total cost
JPY597,042,000

Major outcomes （Children)

Improvement in friendships
Improvement in relationships with schools and teachers
Alleviation of concerns about bullying victimization
Improvement in school attendance issues

(Guardians)

Alleviation of concerns and anxieties related to parenting

Major indicators (financial proxy indicators)

Cost per psychological counselling
Administrative cost per service user (beneficiary)
CWillingness-to-pay for using LINE

Addressing Disasters and the Digital Divide

Assessment of usefulness of the LINE platform in times of disaster
Source : Research Report on the Use of Information Tools in the 2024 Noto Peninsula Earthquake (Japanese only)

For details, please refer to the relevant pages in the report.

Affected individuals who cited information disparities as an issue: 48% (p. 16)
Most useful information sources after the earthquake: LINE ranked second (p. 18)
Affected individuals who stated their quality of life would have decreased without LINE: 65% (p. 29)
Other evaluations of LINE platform utility by affected individuals (pp. 21, 24, 28)
Registration rate for municipal LINE Official Accounts after the disaster: 56.2% (p. 20)
Increase in participation rate in LINE and other local community groups after the disaster compared to before: 6.2% increase (pp. 33, 34)

Major outcomes

Reduction of information disparities
Improvement in information access
Activation of local information sharing networks

Major indicators Value of community infrastructure (IRIS metrics PI7788) (Specific indicators)

Useful information sources
Impact on Quality of Life (QOL)
Utility regarding the following information characteristics:
Information reliability, timeliness, accuracy, stability, scarcity, volume, local information and information from outside the community
Utility regarding the following disaster support information :
Safety confirmation, evacuation, lifelines, support, transportation, daily life, administrative services
Administrative account registration rate after disaster
Increase in participation rate in local information sharing networks after the disaster

Addressing Disasters and the Digital Divide

(Social Return on Investment) is a methodology that quantifies the social value created by converting the value into monetary terms. The total amount of benefits (the sum of the monetary value of social impact) is divided by total costs. An SROI greater than 1.0 indicates that the social program is effective and can be considered efficient.

Consultation services using LINE