Dentsu — full event log

Simplification of organizations - integrating Tokyo and London HQ functions, redefining role of Regional HQ, with cost reductions of 35-50 billion yen targeted by 2027. One-off cost of 50 billion yen planned in 2025.

sustainability_report p.21

Previous Mid-Term Plan targets (organic growth CAGR 4-5%, operating margin 18.0% by 2024) were not met. New plan targets 4% organic growth and 16-17% operating margin by 2027, with ROE in mid-teens range. Lowered profitability target.

sustainability_report p.20

Target to achieve 100% renewable energy (electricity, aligned with RE100) by 2030.

sustainability_report p.47

Dentsu has committed to 100% renewable energy by 2030, aligned with the RE100 definition (electricity-only). In 2024, the renewable energy rate reached 79.5%, up sharply from 53.7% in 2023, driven significantly by signing a renewable energy supply contract for the Dentsu Soken Inc. head office in Shinagawa (the second-largest Japan office by power consumption) in October 2024. Renewable energy usage rose to 52,141 MWh in 2024 from 35,565 MWh in 2023.

sustainability_report p.48

Due to changes in the scope of consolidation resulting from M&A, dentsu recalculated and revised the figures for 2019 (SBT baseline) and 2023 in reference to the GHG Protocol Chapter 5 Tracking Emissions Over Time.

sustainability_report p.79

Achieved environmental performance certifications including ISO 14001, ISO 50001, and BREEAM in key locations. Business Continuity Management System is ISO 22301-certified.

sustainability_report p.7

Consistent with SBTi guidance, dentsu may neutralize residual, hard-to-abate emissions (up to 10%) only after achieving a 90% reduction in absolute emissions. The Group does not currently offset annual GHG emissions but recognizes that achieving long-term goals by 2040 will likely require neutralizing residual emissions through credible and verifiable GHG removal projects. Future participation in voluntary carbon markets will meet the highest environmental and social standards.

sustainability_report p.16

Business travel accounts for ~15% of the 2019 Scope 3 baseline and is one of three near-term focus areas of the SBTi target. Between 2019 and 2024, Scope 3 emissions fell 28%, largely attributed to reductions in business travel and supply chain emissions. Travel-related categories (air, rail, ground) are tracked using spend-based methodology with USEEIO and Japan MoE factors.

sustainability_report p.14

Employee commuting represents ~13% of the 2019 Scope 3 baseline and is included in the 46.2% by-2030 near-term target. Emissions are calculated using employee survey data on commuting modes and distances outside Japan, and a spend-based methodology in Japan where commuting expenses are reimbursed.

sustainability_report p.25

Scope 1 emissions come from company cars, natural gas, and refrigerants; Scope 2 mainly from electricity, heating and steam (~20% of S2). Mitigation includes energy efficiency upgrades, office consolidation/rationalisation, switching to hybrid/electric vehicles in the fleet, and improving equipment and heating system efficiency. ISO 14001/50001 and BREEAM certifications obtained in key locations.

sustainability_report p.13

Purchased goods and services account for ~53% of the 2019 Scope 3 baseline — the largest category and a near-term target focus. Dentsu is enhancing its global value chain engagement strategy with scalable high-impact interventions, strategic partnerships, supplier engagement programs, capacity-building, and digital platforms for supplier data collection and emissions tracking. Spend-based methodology using USEEIO and Japan MoE factors.

sustainability_report p.14

Investments represent ~8% of dentsu's Scope 3 baseline. Most Japan investee emissions use investee-specific data; other regions use revenue-based methodologies. A critical action leading to 2030 is engaging investee companies to collect actual Scope 1 and 2 data, with target-setting in line with climate science, and embedding climate considerations into acquisitions and minority investments.

sustainability_report p.14

Since 2019 dentsu has collaborated with DIMPACT to model digital media GHG emissions and was a 2021 founding member of AdGreen. The proprietary Dentsu Digital Media Calculator was expanded in 2023 to cover full-service, all-channel media carbon calculations across Europe and Canada. Tools will be integrated into the CCS planning platform to drive supplier and client decarbonisation across the value chain.

sustainability_report p.13

Based on Business Ambition for 1.5°C commitment letter (2022), dentsu submitted new GHG reduction targets to SBTi in 2024 to expand scope from international operations to the entire Group. Under review as of July 2024.

sustainability_report p.1

Expanding use of Salesforce Net Zero Cloud to manage GHG data group-wide, aiming to complete within 2024.

sustainability_report p.1

Scope 3 Category 1 (purchased goods and services) is the largest emission category and one of three priority Scope 3 categories under the SBTi-validated near-term target. 2024 emissions decreased to 222,048 tCO2e, down from 264,790 tCO2e in 2023 and 316,082 tCO2e in 2021, driven largely by reductions in International business procurement. Includes considerations around GHG emissions, nature, and related stakeholders in procurement policies.

sustainability_report p.48

Driven by falling renewable energy costs, dentsu is accelerating its transition to clean energy. Global renewable electricity ratio rose from 54.5% in 2023 to 79.5% in 2024, supported by initiatives toward the 100% renewable energy goal for 2030. In addition to sourcing Renewable Energy Certificates (RECs) in line with RE100 guidance, dentsu is pursuing long-term solutions such as on-site renewable installations and power purchase agreements (PPAs). In 2024, on-site solar panels were installed at sites in Ireland and Japan.

sustainability_report p.13

Revised gender goals, setting a new aspirational goal for women to hold 35% of leadership positions across the Group (excluding the US) by 2030, based on critical mass theory.

sustainability_report p.44

Conducted high-level assessment of dependencies and impacts on natural capital across the value chain based on TNFD recommendations. Launched Butterfly Check and City Flora services for biodiversity.

sustainability_report p.48

Recorded goodwill impairment loss of 210.1 billion yen in EMEA and the Americas in Q4 2024, contributing to net loss of 192.2 billion yen - second consecutive year of net losses.

sustainability_report p.18

Completed long-standing initiative to establish a centralized system for managing environmental data across the Group, improving the efficiency of data aggregation.

sustainability_report p.48

In 2024, dentsu's near- and long-term targets were validated by the Science Based Targets initiative (SBTi) as conforming with the SBTi Corporate Net Zero Standard. Targets: reduce S1+2 by 46.2% by 2030 vs 2019; reduce S3 (cat 1, 6, 7) by 46.2% by 2030; reduce all scopes by 90% by 2040.

sustainability_report p.47

Scope 3 Category 7 (employee commuting) is one of three priority Scope 3 categories under the SBTi-validated near-term target. 2024 emissions were 53,767 tCO2e, slightly down from 58,601 tCO2e in 2023.

sustainability_report p.47

Major office renewable energy procurement is the primary lever for Scope 1+2 reductions, which have fallen 65.1% from 2019 baseline. Signed renewable energy supply contract for Dentsu Soken HQ in Shinagawa (second-largest Japan office by consumption) in October 2024.

sustainability_report p.48

Dentsu develops client-facing services that drive decarbonisation including the Carbon Calculator for Movie Production (used on NHK Taiga drama and other productions to confirm carbon reductions from virtual production), Butterfly Check for nature-related impact measurement, and City Flora for biodiversity-positive urban development.

sustainability_report p.51

Following the transition to a global management structure from 2023, SBTi target recalculation and baseline recalculation clauses were triggered. In H1 2024, dentsu conducted a baseline recalculation and revalidation exercise validated by SBTi in October 2024.

sustainability_report p.24

In the baseline recalculation, emissions from refrigerant leakage in air conditioning systems were collected for emissions calculations, and average leakage values were used for estimation in markets without refrigerant data.

sustainability_report p.24

The Group's GHG emissions and calculation methodologies have been validated by independent third-party assurance provider KPMG in March 2025.

sustainability_report p.26

Reduce absolute Scope 1 & 2 GHG emissions by 46.2% by 2030 and 90% by 2040 from 2019 baseline; Reduce absolute Scope 3 from PG&S, business travel, and employee commuting by 46.2% by 2030; Reduce all Scope 3 by 90% by 2040.

sustainability_report p.27

First report prepared while applying IFRS Sustainability Disclosure Standards (IFRS S2) as issued by ISSB, building on previous TCFD-aligned reports.

sustainability_report p.3

In 2024, dentsu installed on-site solar panels at sites in Ireland and Japan, alongside RECs sourcing in line with RE100 guidance.

sustainability_report p.13

The full-year effect of the acquisition of Tag, which was completed in June 2023, contributed to record net revenue in 2024.

sustainability_report p.18

Dentsu set group-wide targets: net-zero GHG (Scope 1-3) by 2040; 46.2% absolute reduction by 2030 vs 2019; 100% renewable energy by 2030; enable 1B people to make sustainable choices.

sustainability_report p.1

Emissions from Tag Worldwide Holdings Limited included in footprint from 2023, expanding scope of disclosure.

sustainability_report p.2

Scope 3 accounts for over 95% of total emissions, with Cat 1 (Purchased Goods and Services) the dominant driver of the 7.8% increase in total emissions vs baseline. In 2024 dentsu is launching a Group-wide Procurement Management Project to obtain higher-quality supplier data and reduce supply chain emissions.

sustainability_report p.2

Dentsu is an RE100 member and targets 100% renewable electricity by 2030. Global renewable electricity ratio rose from 35.6% in 2022 to 55.3% in 2023, driven by initiatives such as switching the Dentsu Building in Shiodome, Tokyo to 100% renewable sourcing. Renewable energy is defined per RE100 criteria.

sustainability_report p.2

Consolidated Scope 1+2+3 figures for 2023 received independent limited assurance from KPMG AZSA Sustainability Co., Ltd.

sustainability_report p.2

In 2023, dentsu conducted a high-level TNFD-aligned assessment of nature dependencies and impacts across its global value chain. In March 2024 joined the TNFD Forum.

sustainability_report p.3

Dentsu is transitioning company car fleets to hybrid and electric vehicles, a key driver of the Scope 1+2 (market-based) reduction of 46.2% vs the 2019 baseline.

sustainability_report p.1

Switched the Dentsu Building in Shiodome, Tokyo to 100% renewable electricity sourcing, contributing materially to Scope 2 market-based reductions.

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In 2023 dentsu launched the Decarbonization Initiative for Marketing in Japan, with an MOU with UK-based AdGreen, to drive GHG reductions across marketing communications supply chains while staying compatible with global standards.

sustainability_report p.4

Dentsu Creative Cube opened two next-generation FACTORY ANZEN STUDIO photography studios in 2024 sourcing equivalent of 100% renewable energy, with a 90% recycling rate target by 2025 (100% long-term ambition) and use of dentsu's proprietary Carbon Calculator for Movie Production. One studio uses virtual production (LED-panel backgrounds) to cut emissions from set disposal and location shoots.

sustainability_report p.4

Dentsu's strategic lever leverages its marketing reach to enable 1 billion people to make more sustainable choices by 2030 — using business transformation and marketing services for clients to drive consumer behaviour change toward low-carbon options.

sustainability_report p.1