to Dentsu 2024 ESG briefing. This is a reminder that today's call is being recorded and will be published on our website. This call will be held in Japanese and English with simultaneous translation for those joining online. Please choose your preferred language from the bottom of the Zoom screen. For those joining on telephone line, you will only be able to hear the original language spoken. [Foreign language] Please refer to our English website for today's presentation material in English, as some slides that will be shared on screen will only be in Japanese. Joining the call today are Director, Representative Executive Officer, President, and Global CEO, Hiroshi Igarashi. Director, Representative Executive Officer, Executive Vice President, Global CGO, and Global CFO, Arinobu Soga. Non-Executive Chairman of the Board, Tim Andree.
Hello, everyone. I'm Tim Andree.
Independent Outside Director, Mihoko Sogabe.
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Independent Outside Director, Yuka Matsuda.
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Global CHRO, Miho Tanimoto.
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Yuko Kitakaze, Global Chief Sustainability Officer, was planning to attend, but will not be able to give her presentation due to a delay of her flight from the United States, where she was participating in WBCSD. She will participate from the Q&A session if she arrives in time. We will start off with greeting and agenda explanation by our CEO, Hiroshi Igarashi, followed by presentations from other speakers. After all of the presentations, we will invite you to ask questions. Mr. Igarashi, please go ahead.
[Translator] Thank you for joining us today at the Dentsu Group ESG Briefing 2024. Last year, we held our first ESG briefing. There, we mainly shared about our efforts on governance, such as the transition to a company with three committees and the separation of the chairman of the board of directors from the CEO. This year, we will also focus on the E and S of ESG, and we'll use the opportunity to share our unique approach to increasing corporate value. Everyone is aware of the importance of both financial and non-financial initiatives in improving corporate value in the modern multi-stakeholder era. Non-financial initiatives are expected to increase a company's adaptability to change and reduce the number of unexpected events, thereby reducing financial volatility and increasing corporate value. However, non-financial initiatives do not have an immediate effect and must be sustained.
[Translator] As part of our leadership team's commitment to non-financial matters, we have introduced a system whereby part of executive remuneration is linked to ESG indicators, so that non-financial matters are linked to financial matters. In addition, we have continued to improve our information disclosure, including our integrated reports, over the past few years. As a result, we have received a certain level of recognition from ESG third-party assessments such as DJSI and MSCI. We have also started to use these acclaimed non-financial initiatives of ours to help clients who are having the same challenges. We have organized our expertise in sustainability into a solution for our clients called Sustainability to Impact in Japan, which was recently announced. The aim is to ensure that non-financial initiatives are translated into business performance and finance, which we consider to be a linkage between non-financial and financial activities that is unique to our company.
[Translator] We aim to continue these efforts and become a B2B2s, business to business to society company, which is our management policy, and continue to create value for society together with our clients.
[Translator] This slide introduces today's agenda. First, I will share the integrated report and the 2030 sustainability strategy. Also, with regard to the environment, our industry engagement efforts towards a decarbonized society will be presented. For social, Global CHRO Tanimoto will share about our human capital strategy. The global sustainability presentation part was to be delivered by Global Chief Sustainability Officer Kitakaze, but due to the delay of her flight, I will be presenting her part. For social, Global CHRO Tanimoto will share about our human capital strategy based on the idea that the growth of a company is achieved through the growth of its human capital. For governance, Soga, Global CGO and CFO, will share about our mindset and behavior reform that promotes organizational climate change. In addition, Tim Andree, Chairman of the Board of Directors, and Ms. Sogabe and Ms.
[Translator] Matsuda, independent outside directors, will share their candid views on the company's ESG initiatives. After the briefing, we would like to receive your questions and comments for our future reference. I will now explain about the 2024 Integrated Report and 2030 sustainability strategy. First, the Integrated Report. From this fiscal year, Kitakaze-san, who oversees the formulation and implementation of sustainability strategies, is serving as the editor-in-chief of our Integrated Report. There are three editorial policies. The most important policy was to convey Dentsu's commitment to enhancing corporate value rooted in our corporate philosophy. Since our founding, we have been working continuously for 123 years to solve issues and create a vibrant society from the perspective of consumers. We wanted to communicate to our stakeholders efforts we have been able to make because this DNA has been passed down.
[Translator] Next, we wanted to select content to set expectations around our return to organic growth and the future of our growth from medium to long-term perspective. For these reasons, we enhanced the level of disclosure, information disclosure. Specifically, we articulated our 2030 sustainability strategy and set specific action plans and KPIs related to our materiality. In addition, we introduced our efforts to create sustainable value by linking financial and non-financial factors. I will now explain in detail about our 2030 sustainability strategy. Dentsu's sustainability strategy is to generate ideas for the future to solve challenges facing society. We are not just trying to be sustainable, we are also creating possibilities for the future. To achieve this, we first draw up an ideal future unconstrained by current limitations.
We think freely about how to make that future a reality, not thinking in terms of an extension of the past, and we believe that by harnessing the insight into human behavior that we have calculated, cultivated since our founding, and by bringing about a transformation in the way people think and act, we can contribute to the promotion of sustainability throughout society. The world is currently full of difficult social issues. Solving these issues is a challenge for humanity, and it is worth making the most of the ideas of our seventy-one thousand employees. To articulate this aspiration, we have set as core themes, not just people and the planet, but also innovation. For each material issue, we have set out headline goals and action plans, as shown on the right of this slide.
[Translator] We also show how our ESG initiatives lead to increased corporate value in terms of three variables: mid to long-term value creation, short-term performance improvement, and reducing management risk. The five goals are putting integrity first, transforming business and society by winning as one team, unleashing the brilliant potential of our people, accelerating the low carbon transition, creating ideas for the future with the power of creativity and technology.... If we can achieve all of these, we believe we can generate ideas for the future to solve challenges facing society. The status of our efforts to address the five material issues is discussed by the Group Sustainability Committee on a quarterly basis. Kitakaze-san chairs the committee, and committee members are the CEO, myself, CGO, CFO, CHRO, and group management members in charge of legal, business solutions, corporate communications, and culture.
[Translator] In addition to discussing the progress of action plans, the committee also discusses issues such as human rights and regulatory compliance, including CSRD, across departmental boundaries. Through this group-wide approach, we believe we can promote sustainable transformation for ourselves, our client companies, and society as a whole. Next, our sustainability commitments. In order to create social value, collaboration among business, central and local government, and civil society is key. The ability to connect these three parties is one of Dentsu's greatest strengths. By connecting these three parties and harnessing the ingenuity of our diverse range of global talent, we will lead five systemic changes that will bring about future possibilities. As well as promoting the sustainability of our own group, we are also making proposals that extend to industry, clients, and society. Next, our environmental initiatives.
[Translator] In order to achieve our goal of accelerating the low carbon transition, we set, from fiscal year 2024, the four KPIs to promote our action plan, as you can see on the slide. The KPI enable one billion people to make more sustainable choices by 2030 relates to sustainable consumption. In order to transition to a low carbon society, the most significant opportunity for Dentsu Group is to contribute to changing consumer mindset and behavior. We will make necessary efforts to achieve this goal, including support in client corporate business transformation and marketing support. In pursuit of a decarbonized society, we are working to reduce risks and seize opportunities. As part of this commitment, we are conducting scenario analysis based on the recommendations of the Task Force on Climate-Related Financial Disclosures, TCFD.
[Translator] By examining various climate scenarios that could occur in the future, we can gain a deeper understanding of the uncertainties and risks associated with climate change. The insights gained from the analysis are incorporated into governance and decision-making processes, and are integrated into climate change considerations at all levels of the organization. In order to continue to create value for society over the mid to long term, it is essential that a healthy natural environment is maintained. Therefore, based on the framework of the Task Force on Nature-related Financial Disclosures, TNFD, we assess the dependency and impact on nature capital along the value chain for each of our main business models. As a result, we were able to confirm that while our dependence on and impact on nature are relatively low, there is still much we can do in the upstream part of the value chain.
[Translator] And by making use of the characteristics of our industry, which has contact with a diverse range of client companies and partners, and can encourage behavioral change in people, we can make a positive impact by providing solutions that contribute to nature, and by making recommendations to society that go beyond the value chain. Based on the results of this analysis, by taking the initiatives shown here, we will contribute to the realization of a healthy, natural environment. We are also focusing on raising the awareness and upskilling our employees on sustainability. In 2023, we developed new training modules on business cases for sustainability and sustainability strategies for the Dentsu University online learning platform for employees.
[Translator] And more than 1,000 employees worldwide took the course. We also supported 100 leaders selected from across business divisions to complete the Sustainable Marketing, Media, and Creative course provided by the Cambridge Institute for Sustainability Leadership of the University of Cambridge. It was an intensive eight-week course. In all 4 regions, through employee engagement, such as regular town hall meetings, we are developing initiatives tailored to each region to raise awareness of our sustainability strategy and deepen employees' knowledge in this area. For example, in Japan, we have developed an original program called Sustaina Leaders to learn about the latest internal and external themes, and more than 700 employees participated in it every month. In Denmark, we have launched the first Sustainability Marketing Academy on a trial basis, which is open not only to employees, but also to external stakeholders, including clients.
[Translator] We are also developing unique educational programs in the Netherlands and the UK. The main themes covered are the latest business trends and strategic insights related to sustainability, countermeasures against greenwashing, and CO2 reduction. We want all employees, not just those in charge of sustainability, to take for granted that they must have a sustainability perspective. We want to turn on the switch in all members of the Dentsu Group. This will enable us to contribute to society through our business. Regarding our industry transformation initiatives, the Dentsu Group's aim of creating a vibrant society where people enjoy a fulfilling life cannot be achieved through the efforts of a single company alone.
[Translator] As a responsible company that operates globally, and as a leading company in the industry, we will contribute to solving social issues by accelerating industry collaboration through the creation and participation in diverse initiatives that transcend industry boundaries. One of our representative initiatives is the decarbonization initiative in the marketing domain. Decarbonization initiative for marketing is an initiative launched to promote decarbonization across the entire Japanese marketing domain. We aim to promote this initiative with all related stakeholders. We will also work with competitors, and plan to invite media companies and, in the future, client companies to join.
[Translator] By signing a memorandum of understanding with AdGreen, a general incorporated association that provides carbon visualization tools for the advertising production sector in the UK, we will be able to respond to the needs of companies that are developing marketing activities globally while ensuring compatibility with global standards. Dentsu Creative Cube has opened the Factory ANZEN Studio, a photography studio with sustainability in mind. The studio uses 100% renewable energy and recycles waste from filming to reduce its environmental impact. One of the two studios uses virtual production. By combining the subject with a background image projected onto an LED panel, it is possible to reduce the disposal of art sets and CO2 emissions from location filming.
[Translator] The studio is also compatible with the Carbon Calculator for Movie Production, a tool for calculating and visualizing CO2 emissions in creative production developed independently by our group, and can visualize and reduce CO2 emissions in production at the studio. The third initiative is greenwashing. Greenwashing is a major problem, not just for Dentsu, but for the industry as a whole. We have published the Sustainability Communication Guide 2023, a document summarizing points to keep in mind when carrying out business. It is available for free to companies and organizations operating in Japan. By participating in and collaborating with initiatives with external stakeholders around the world, we can gain perspectives and insights that we would not have been able to gain by staying in Japan, and we are using these initiatives to enhance our group's management and our response to sustainability issues, including climate change.
[Translator] In Japan, we are participating as an associate member in the Japan Climate Leaders Partnership, JCLP, a unique Japanese corporate group that aims to create a sustainable decarbonized society, and are leading the way to a decarbonized society from the perspective of industry. Finally, the kind of sustainability that is unique to Dentsu is to create a series of contribution use cases together with our stakeholders through our marketing activities. In Japan, in particular, we have already provided a number of sustainability solutions to our client companies. These are all incorporated in the Sustainability to Impact that I mentioned at the outset. By creating success stories with our stakeholders, we believe that this knowledge will spread throughout our employees, and then to society as a whole, creating a virtuous cycle. Sustainability is not confined to short-term profit. It can change the relationship with stakeholders.
[Translator] In other words, it is a grand challenge that is future-oriented. But we wish to achieve sustainability together with everyone, to pass on a better society to the next generation. I would now like to turn over to Tanimoto-san, a global CHRO.
[Translator] Thank you. Hello, everyone. I am Tanimoto, Global CHRO. I would like to introduce to you the human capital strategy of Dentsu Group. After joining Dentsu team, it has been a year and nine months for me. Last year, I focused on building a solid leadership structure globally. This year, I am concurrently serving as Chief People Officer for Japan region, to promote HR initiatives within Japan business, which is the core of our group. As I gain deeper understanding of the business and people, I realize once again that the cornerstone of Dentsu Group is its people. The ideas, creativity, and innovation coming from our people are the source of the strength of our group. When our people grow, our businesses grow.
[Translator] I believe that it is crucial for people to be able to feel that they are growing themselves, to energize our people and have greater engagement from them. Today, I would like to share with you the policies and directions we are taking to promote the growth of our people and achievements thus far, and focus areas going forward. Since last year, as areas of focus for HR, we have identified three categories or pillars: people growth, winning as one team, and service excellence. First, on people growth. For any organization, the strong foundation is created with strong and excellent leadership. Last year, DLA, or Dentsu Leadership Attributes, were defined as the requirements for leaders who lead Dentsu to growth. Using DLA, global 100 top leaders were reviewed together with CEO.
[Translator] This year, the process is formalized as annual people discussion, and first in Japan, broadening the efforts to cover lower layers in the organization. A total of 3,000 people were reviewed through discussions with their superiors. Through this exercise, we were able to make talents visible in two axes of performance and leadership. What is more important is that we have increased the amount of time spent discussing the development of our human capital. As one initiative to help develop these top talents into the next generation of leaders, this year, we launched a global program called Dentsu Leadership Connect, where 40 participants from 14 countries gathered in Tokyo to intensively learn together for one week. The program included in-depth discussions in person with the senior leaders on realization of One Dentsu and integrated solutions.
[Translator] The purpose was to enhance the visibility of the top talents, and at the same time, to accelerate their growth through the practical discussions of the company's strategy. Next, realizing one team by cross-pollination of expertise to create customer value. People growth and winning as one team are the two sides of the same coin. Our company's One Dentsu operating model was introduced for the purpose of removing the silos in the organization, and to offer optimum solutions to our clients. In order for expert talents in each practice to collaborate, common objectives and values are indispensable, and there is a need for incentive design to promote collaboration among practices. Incentives and KPIs were reviewed to be in line with the DLA. For senior leaders, in addition to numerical performance indicators, individual assessments now include indicators to evaluate the degree of leadership and integrity.
[Translator] This is a reflection of the philosophy of cultivating more sound corporate culture by enhancing teamwork and ethical leadership. In carrying out these reforms, I consider quite important that leaders themselves speak to our people with transparency. Globally, open dialogue sessions are held between the leaders and our people in many locations. In Japan, in particular, open talk is held by Mr. Sano, CEO, with each of the group companies to have direct conversation. I also attended and spoke about how Dentsu executive management is selected, and had exchange of views with a very large number of our people.... Next, one team and DEI. Building one team and DEI, diversity, equity, and inclusion are inseparable. In addition to extending expertise, we continue to focus on developing female leaders at a global level and on a flexible way of working, which are also being promoted in Japan.
[Translator] As a part of our track record, half of the new recruits joining out of college and lateral hires at Dentsu Japan are women, and as many as 94% of our male colleagues are taking parental leave. The final pillar to strengthen human capital is service excellence, which is well aligned with the business strategy. First, HR must be an efficient function. I consider this to be the entry ticket. We are continuously improving the use of shared services and HR data system. Regarding recruitment, organizational development, and compensation, top talent with strong expertise are being hired as global practice leaders. In the earlier mentioned people discussion, HR is participating actively to put together talent development strategies and execute them. Gradually, in this way, we are implementing HR strategy.
[Translator] Through these initiatives, we have better understanding of the challenges and how to address those challenges. We need offensive HR strategy to develop our people and organization further. I would like to share with you some of the focus areas. This slide shows our medium-term goals for Dentsu, for about a three-year term period, of our vision as an organization and a vision for our people. First, robust leadership foundation and promotion of culture for the One Dentsu that supports the leadership foundation. Through the people discussion, we have been able to identify strong talents. Going forward, we will be developing around 100 global leaders who can lead diverse leaders. This is to develop pipeline of successors to senior leadership positions.
[Translator] Next, the core of our capability, IGS, is going from strength to strength, leading to greater competitive edge for Dentsu. There is also greater depth in expertise to provide integrated solution and in data and technology, which will be crucial going forward. We will aim to have highly skilled people assigned adequately, and this is also important that it lead to high quality of work. It is also important to actively embrace these technologies to enhance productivity and quality of our work. It is also important that processes are built in place to continue to develop human capital portfolio efficiently and in high quality. To realize this vision, we have the following key people initiatives that we will be focusing on. Dentsu Next Twenty, which is a custom-made program, will start to develop next generation of leaders.
[Translator] This will be initiated in 2025, irrespective of the length of service in Dentsu. Excellent talents will be identified and will be proactively given stretched assignments, including cross-regional assignments. To foster, collaborate, to innovate culture with diverse workforce, with wide-ranging expertise, the way we work at Dentsu will be established. While we leverage the benefits of hybrid work, we will redefine the way of working that recognizes the importance of collaboration and creativity engendered from people-to-people connection. We will also launch a new program where our people can acquire integrated solution skills. We will make sure to be able to exert our unique strengths, developed mainly in Japan, at scale in our top 13 markets. More specifically, our target is to develop 30 integrated client leads who have access to the C-suites of our clients, and to develop, every year, 100 new integrated strategists.
[Translator] We will continue to hire and strengthen human capital in data and analytics. To enhance services to our clients, it is also important to update our own way of working inside our organization. Already, there are 20,000 engineers and data scientists in Dentsu Group. Overall, of them, more than 2,000 are AI special engineers, and we also have AI community of 7,000 people, and we can review our way of working and focus on value creation in our work by utilizing AI, and to create such a culture is another of our focus point, and lastly, strengthening of people, data, and systems. HR system will be further integrated to promote collaboration in human capital development and enhance mobility by developing data and systems, and improve visibility of our human resources.
[Translator] Including my own impression, this year, I had many opportunities to have direct interaction with many of our people. From our people in Japan, I learned the attitude of creating expectations and exceeding those expectations, which is the strength of Dentsu people. This year, I was able to visit London, New York, Spain, and Italy, and had conversations with the next-generation talents in these areas, in international, in these regions.... Many of our people that I met are very enthusiastic about working to make our clients happy, and about acquiring new experience and knowledge through One Dentsu. At the core of Dentsu is client centricity and IGS, or Integrated Growth Solutions, which are supported by many people around the world. We have many excellent talents in our organization.
[Translator] I will continue to promote HR initiatives that puts trust in the capabilities of our people, and will help unleash the potential for growth and vitality of our people. Moving on to the next presentation, Soga-san, please.
[Translator] Hi, Tanimoto-san, thank you for the introduction. I would like to report on the progress of mindset and behavior reform that we are implementing at Dentsu Japan for about one and a half years. Mindset and behavior reform is being implemented through 17 initiatives based on three pillars. The three pillars are establishment of an organizational culture that ensures proper corporate activity, strengthening of the risk management system and legal compliance functions, and introduction of business processes that ensure fair and transparent transactions. As an example, one of the very important initiatives, transforming the organizational culture to prioritize integrity, is being promoted as one of the measures related to the first pillar. At the time of the ESG briefing last year, three initiatives have been completed, but as of today, nine initiatives have been completed.
[Translator] The remaining eight initiatives are being addressed by the entire Dentsu Japan, and we plan to complete all initiatives by the end of this year. We will introduce some examples of initiatives to mindset and behavior reform, and how the results of these initiatives have been incorporated into the normal business process and are being implemented. First, we have appointed compliance officers and managers at each DG at Dentsu Japan company. In January, we completed the appointment of compliance officers and managers, and they are now playing a role in ensuring that compliance is firmly established by responding to consultations within each organization. We have also received feedback from employees in many departments who have noticed a change in the environment, making it easier to consult about compliance. The next step is the formulation and operation of guidelines related to operations that need to be kept in mind.
[Translator] We have completed the formulation of guidelines for public business and the prevention of bid rigging and sports business, and have established organizations to operate them. We have also confirmed that the consultation service is functioning well, as the number of consultations from employees is increasing. And we are working to establish an organizational culture that prioritizes integrity. Integrity is a word that is also included in Dentsu Group Code of Conduct. We are promoting various initiatives throughout Dentsu Japan, such as encouraging each employee to think about integrity and providing opportunities for discussion, such as dialogue sessions. Here, I will introduce some of the results of the employee survey we conduct regularly to assess mindset and behavior reform. The understanding of the need for mindset and behavior reform, and the recognition of the need to change the organizational culture both exceed 90%.
[Translator] On the other hand, only half of the employees fully understand the reasons for aiming for an organizational culture that prioritizes integrity, and there are still issues to be addressed. As mentioned earlier, we plan to complete the 17 initiatives for mindset and behavior reform by the end of this year. We will continue to make use of the results and knowledge gained through these initiatives, and in addition to strictly implementing business processes and improving the effectiveness of compliance initiatives, we will also continue to work on reforming the organizational culture, including fostering employee understanding. This is the monitoring evaluation by advisory. Three external committee members have evaluated our current efforts.
[Translator] I will refrain from mentioning their comments, but all three committee members have given a certain amount of credit to our efforts to date, while pointing out what is essential for next year's efforts and beyond, and we will make use of their evaluation in our future efforts. This is all for today on the progress of mindset and behavior reform. Next, we would like to call upon the Chairperson of the Board and two outside directors. Tim Andree, please.
Thank you, Soga-san. I'm Tim Andree, and I'm honored to be in my third year as the Non-Executive Chairman of the Board of Directors of the Dentsu Group. I'm joined today by two of our independent outside directors. First, Mihoko Sogabe has been on the board for three years and is a member of our Audit Committee and our Compensation Committee. Also, we have Yuka Matsuda, who has been a member of our board for two years and is a member of the Audit Committee and the Finance Advisory Committee. In our section of the agenda today, we'll discuss Dentsu Group's ESG initiatives from the perspective of board members, hoping to have a bit of a candid conversation.
And we thought we would approach each topic, and try to predict or address a question we expect that you may have proactively in each area. Of course, we will take questions on any topic you may have later in the Q&A. To begin with, the subject of governance. From my perspective, as the longest serving member of the board, I thought it might be useful to review that we have been evolving our governance structure very proactively in the last several years. In 2022, we separated the board chair role from the CEO, and in the same year, we welcomed four new independent directors and created our most experienced and diverse international board in our history.
Later that year, we established a new role, a new executive role, the Chief Governance Officer, which is Soga-san's position, and empowered that role to enhance governance and compliance across the group. In 2023, we appointed one new BOD member, thus making five out of our nine board members freshly appointed in the last three years. And also, importantly, with the independent directors holding a majority for the first time, with six of our board members being independent, non-executive members. We have shifted our governance structure to the more international standard structure of having three statutory committees. Each are chaired by an independent non-executive outside director, and each having a majority of independent directors as their members. Based on all this structural change, one question you may have is: How has all of these changes impacted the actual governance?
How have these changes impacted the quality of our board discussion and our oversight ability? Sogabe-san, could I ask you to share a few candid comments on that, please?
[Translator] Thank you, Tim-san. As Tim-san just described, I have spent one year and two years, before and after the transition to a three-committee company, deeply involved in governance, and as a result of these structural changes, I believe that we have been able to deepen our discussions. Chairman and Chairman of the Board and chairman of the committees have made ample preparations to enable such a deep discussion. As for the board and the various committees, the Board Chair, Tim-san, and the committee's chairs and executive sides have deep preparations, and there is a perspective from outside the board of directors, which enhanced the quality of the discussion. Of course, each board member is fully prepared before the board discussion.
[Translator] In any of these committee meetings, it is possible to have discussion based on common understanding, which leads to a deeper discussion. MTP, medium-term management plan will be revised this year, and there have been several occasions of discussions of the medium-term management plan. As we have repeated discussions, we have been able to have higher quality discussion. There is also a delegation to executive officers, and this has enhanced the speed of the decision-making. But regarding cases where the board's perspective are necessary, there are deliberations at the board, and decisions are made at the board, and there's an appropriate demarcation between the board and executive side.
[Translator] As for outside directors of Dentsu Group, many are very honest and candid, and what is lacking in terms of executives' perspective, whether there is a full accountability, as such, sharp questions are raised constantly, and executive side, management side, square these face on and are sincerely responding to these questions. That is all.
Thank you, Sogabe-san. Matsuda-san, as part of our governance, and particularly our financial governance, a new advisory committee was formed this year, the Finance Committee, and you kindly serve on that committee. I'm sure our audience is interested in the objectives and the progress of the new Finance Committee. Could you please share a few of your thoughts and observations on the Finance Committee?
[Translator] Tim-san, thank you for the question. This is Matsuda speaking. The Finance Committee, as you may know, was established this year. It's a voluntary committee, not a statutory committee. In particular, it is not a statutory committee. Because of that and others, we are not constrained by having to reach certain resolution or decisions, which means we can spend more time on discussion. We are thus able to conduct very active discussion. In particular, finance numbers, we are focusing on financial numbers. And at the board meeting, because of time constraints and because of other constraints, these are some points that cannot be discussed by the board, but this level of detail can be discussed in the Finance Committee, and we recommend our findings, results of our discussions to the board.
[Translator] As a result, we think that the recommendation of the Finance Committee is of good use to the board. Specifically, what are we discussing? For example, business portfolio, a detailed analysis of business portfolio. An example would be ROIC level analysis.
[Translator] ... or business strategy, finance-related KPI setting, whether the KPI setting is appropriate or not, and not only about specific investment deals, but about investment projects in the past, and about the possible investment projects in the future. We review investment projects, and we also conduct monitoring from shareholders' perspective. The Finance Committee members place extreme importance on this. On the other hand, we concurrently serve as members of other committees as well. We think there's a smooth division of labor between Finance Committee and other committees. For example, division of labor with the Audit Committee. Take finance, for example, the finance structure, organization, process, these are matters monitored mainly in the Audit Committee. In the Finance Committee, on the other hand, we focus more on numbers. That is what we bear in mind.
[Translator] Consequently, a Finance Committee is able to function very flexibly and in an agile manner. That is how we understand the situation.
Thank you, Matsuda-san. Shifting the topic now from governance to the environment, I can say that the overall topic of sustainability, and environmental responsibility is a subject that the board has engaged quite heavily in our recent year. Matsuda-san, as an independent director, you can share, perhaps your expectation of the Dentsu Group regarding the environment, and perhaps share any thoughts you have about the board agenda and the discussion that we've had.
[Translator] Hi, Tim-san, thank you. Once again, Matsuda speaking. Specifically, regarding environmental initiatives, Igarashi-san gave a detailed description earlier. At the Board this fiscal year, on multiple occasions, we had reports and discussions under the theme of the environment, and each time, the Board members are raising specific, sharp questions. To the management side, there are suggestions to encourage their initiatives. As the consensus opinion of the Board members, we are of the view that environment-related initiatives are not only useful to the society, beneficial to the society, but will also be very important in terms of drawing growth trajectory for our group. Thus, everyone is interested in the discussion of environmental issues, industry overall, and with our stakeholders, including clients, we would like to involve them as we continue to engage in environment-related initiatives.
Business side top leaders also should have a strong sense of ownership. And overall, as a group, we need to promote environmental-related initiatives, and with that awareness, Board will continue to supervise closely. Thank you.
Thank you, Matsuda-san. Shifting again now to the human element and the people agenda. The talent is core to our competitiveness, and attracting and retaining talent is a key element of a sustainable business, as Tanimoto-san just, you know, mentioned in her presentation. Our employees are our greatest asset, and human capital management has been a key topic of the discussion with the board. So, Sogabe-san, as a independent board director and a member of our Compensation Committee, could I ask you to share your thoughts on the discussion the board has had on human capital strategy, and what types of opinions have been shared by the independent directors?
[Translator] Thank you, Tim-san. Regarding human capital strategy, we had earlier presentation by CHRO, Tanimoto-san, after Tanimoto-san joined the Dentsu Group. What Dentsu Group envisions regarding human capital strategy, the management side discussion has been clarified. More specific, more effective, measures are being proposed with a sense of speed and are being implemented speedily. The board is offering opinions so that Dentsu will be an organization where people can thrive. From outside the directors, in order for One Dentsu to function, there should be a greater sense of unity on a global level, and therefore, relevant measures should be implemented. Winning team is a highly engaged team, and therefore, not only compensation, but organization should offer growth opportunities. In addition to leadership, how leadership is asserted, culture fostering aspect should also be included in aspects.
These are comments from the boards, and these are also digested and integrated into the initiatives by the management side. As a result, human capital strategies are developed, and as for the execution of the strategies at the board, various KPIs will be reported, and progress will be supervised. And at the Nomination Committee, the involvement of the management side will be also monitored. At the compensation committee, whether compensation is working as a incentives, such monitoring will be carried out, so that we can supervise in multifaceted fashion. For Dentsu Group, the most important capital asset is human capital, and how our people can thrive will determine the corporate value over medium to long term significantly.
And going forward, as the board, we would like to support the management's initiatives, and at the same time, based on various background and experience of outside director, we would like to offer appropriate opinions and advice.
Thank you, Sogabe-san. Allow me to wrap up this section of the board discussion by just saying that the board recognizes fully that excelling in these areas of ESG is a core method of enhancement of the corporate value of the company over the long term, and a method of delivering consistently on shareholder expectations. Our board recognizes its responsibilities to the shareholders and is leaning in to all of these changes to enhance corporate governance and the independence of the board with ambition of leadership. We've hoped that this section was enlightening for you, and we look forward to being able to answer any other questions when we get to the Q&A. Thank you very much.
[Translator] This concludes the presentation. Thank you very much for your attention. We will now begin the Q&A session. Ms. Kitakaze, Kitakaze-san will also be available from now on. To welcome as much questions as possible, we would like to ask you to keep your questions to two at most. When you wish to raise two questions, please address them at once. For questions, please use the Raise Hand function on Zoom or press star nine on your telephone. I will ask you to unmute, then please introduce yourself. We are confirming several hands being raised. Please keep your hands raised as we are confirming your names. Thank you for your patience. Thank you for waiting. We have Mr. Abe from Daiwa Securities. Please unmute, and please introduce yourself.
[Translator] This is Abe from Daiwa Securities. Thank you very much for the presentations. I have two questions.
[Translator] First, about engagement score, which is declining in integrated report. This is also described in the report. In and outside of Japan, tendencies were different, but what was the change in score, and what were the tendencies in and outside of Japan? Could you offer commentaries? The second question is that you are active in various regions, including through acquisitions, and how are you fostering corporate culture and disseminating corporate culture? And how do you evaluate the current status, and what are the future measures? As of now, in managing the group, if you see any issues, if you could comment on those, please. So those are the two questions I have.
[Translator] Thank you, Mr. Abe. This is Igarashi, and I would like to moderate the Q&A session. We received two questions.
[Translator] The first is about a decline in engagement score, and the belief is that there may be different reasons in and outside of Japan. I would like to ask Tanimoto-san to respond. And the second question is that as a result of various corporate acquisitions, there is integration of corporate culture, and if there are any issues. I would also like to ask Tanimoto-san to take up that question as well.
[Translator] Thank you for those questions. Regarding the first question, which is on engagement score, well, unfortunately, last year, slightly overall score declined, but what is important is to look at the substance closely. For your information, as far as tendencies are concerned, we see similar trends in and outside of Japan, and personal integrity and compliance focus area and respect. In these areas, scores are very high.
[Translator] Of course, we would like to aim to achieve a hundred in all of the areas, and there is still room for growth, room for improvement, but we are seeing very high scores in these areas. On the other hand, last year, one of the issues is, one of the challenges is that we were in transition phase to transition to One Dentsu. One Dentsu’s strategy and Integrated Growth Solutions, the specifics of these, there is a need for closer communication. Clarity of strategy and communication are the challenges, and therefore, this year, we are focusing on these areas, and we, the management is directly communicating more to our people on a daily basis. I was taking note of the first question, and there was a second question. Could you repeat the second question?
[Translator] The second question is that we have had a series of acquisitions and mergers, and we have members who come on board with different cultural backgrounds. And what the current status is, and what measures are being implemented? And after Tanimoto-san, I would also like to supplement. Thank you.
[Translator] Dentsu, as a Dentsu family, has various brands. However, after introduction of One Dentsu model, we have global practice where all practices are now integrated into one team. And although we have different brands for go-to-market, we are One Dentsu family. And to have consistent corporate culture, there is still room for further improvement. But for example, since last year, we have North Star Awards, where we recognize contribution to corporate culture that we would like to foster. And what the corporate foster culture is...
[Translator] The culture that we aim at is being clarified through our 8 Ways, and we will embody these cultures, and DLA, Dentsu Leadership Attributes, will also be used to promote consistent application.
[Translator] Thank you, Tanimoto-san, and I would like to add, this is Igarashi speaking. Two years ago, globally, a Chief Culture Officer position was established. Under One Dentsu, culture will be shared with the same values. However, we also acknowledge the importance of diversity, and the Chief Culture Officer is implementing various initiatives. As mentioned earlier, there is North Star Award, and in our actual business operations, how do we implement these? How do we live these ourselves? That is very important in addition to being competitive, and starting this year, in Dentsu Japan, we also have established the post of Chief Culture Officer.
[Translator] We are collaborating in and outside of Japan, and in each market and each region, there are also specific measures, and with all of these are put together, we are implementing consistent corporate culture. Thank you very much.
[Translator] Thank you very much for the question. Next question is by Mitsui Sumitomo DS Asset Management. [Mr. Jang]. Please unmute. State your name and affiliation, and pose your question, please. Thank you.
[Translator] Can you hear me?
Yes, we can hear you.
[Translator] Thank you. Mitsui Sumitomo DS Asset Management, my name is Jang. Thank you for explanation. I have about two questions. First, as Tanimoto-san mentioned before in HR strategy, thank you very much for your very detailed presentation. I've been able to discover that you are implementing many wonderful initiatives. As you promote these initiatives, what is it that you think is particularly difficult? How are you trying to, or how have you overcome them, and how are you trying to overcome them? Secondly, cybersecurity is a hot topic, important topic in various industries. I think Dentsu Group is also taking various cyber-related initiatives. If there's a cyber attack, who takes leadership? Is there an expert? For example, CISO, do you have a chief information security officer? Do you have this kind of a position?
[Translator] If not, are you intending to establish this kind of a position in the future? Thank you.
[Translator] Thank you, Jang-san, for your questions. You raised two questions. First, about HR strategy. There are some difficult initiatives and challenges. How have you overcome them? What process do you go through to overcome difficult challenges? This question will be responded by Tanimoto-san. The second question was about cybersecurity-related measures. What is the current situation, and going forward, when it comes to security-related measures, is there going to be an expert who takes leadership? What are the future plans? I will respond to that question, as well as Chief Governance Officer Soga-san. First question, please, Tanimoto-san.
[Translator] Thank you for your question.
[Translator] ... HR initiatives, talent initiatives, what are difficulties? I don't know if it's necessarily a difficulty, but One Dentsu is what we are striving for. Japan and the international, overseas, all of our strategies need to be aligned. I always have that in mind, and this, I think, is a process that takes certain amount of time. Each region or each market further have their own challenges, which are slightly difficult, so how we try to overcome them would be to deepen our understanding of each market, have a better understanding of each market. I mentioned about dialogue with employees.
[Translator] Market leadership, market leaders, I need to get to know them more, and we need to share our challenges with them, and we have to think about what we can do from a global perspective and in order to empower market, what should we do? I always try to have this kind of a dialogue, and this is a process that takes time. Furthermore, HR initiatives, talent initiatives, this is a positive aspect. Everything shares the idea of what's good. So if everything—if everyone thinks that something is good, we are able to smoothly proceed with such initiatives. So the voice of people discussion, then to their attributes.
[Translator] 3,000 people, frankly speaking, I didn't think I would able to cover this much, but our team made a lot of effort, and I think we were able to create something together. We want to continue to cherish the voice of employees, and we want to know more about leaders and market.
[Translator] The second question about cybersecurity. Cybersecurity measures, as you mentioned, in order for us to continue our business, that is indeed a very important continuity. What are the risks? We constantly have to watch and take appropriate measures. First, expert responsible for risk. There is an executive who's specializing in risk, and in our company's Risk Committee, we extract a number of risk issues and are trying to take measures, and one of them is, of course, cybersecurity.
[Translator] The economic security, there's a person responsible for economic security as well, and they collect information. These people collaborate with the people responsible for risk, and then we try to share information to take appropriate measures. In order to ensure business continuity, we also collaborate with the company CIO. We conduct simulations and so forth. Measures going forward that will be commented on by Soga-san. Is there going to be a specialized expert organization? Are we going to appoint an expert responsible for cybersecurity? That will be responded by Soga-san.
[Translator] Igarashi-san, thank you. Jang-san, thank you for the question. This is an extremely important agenda. Other companies as well are seeing more and more of this risk coming to the surface, and we think we can learn from other companies.
[Translator] And what we are doing now is group-wide information security policy we are formulating, and we have various rules and regulations in handling information. These rules are now being operated. And I think this is done by other companies as well. It's a general countermeasure, but putting infrastructure on the cloud and constraining access, we are trying to take these measures as much as possible. And as you may know, information security management system ISO 27001 , we are already certified. And in the case of an emergency, what do we do? Risk-related response is part of corporate governance in the broad sense of the word. It's an important agenda.
[Translator] In the case of an emergency, how to respond, as Igarashi-san, CEO, just mentioned, Giulio Malegori is responsible for operation, and he's the direct reporting line when it comes to IT-related matters and in terms of risk management. I am responsible for risk management. The conclusion is, in the case of an emergency, reporting will go up to Giulio, as well as myself, as well as regional legal counsels, and Allison is the global legal counsel. We set up a task force led by Igarashi-san to respond in the case of an emergency. There are small incidents, not as frequently as daily, but in each region, country, there are small issues. First and foremost, region CEO will take responsibility to respond immediately.
[Translator] But, if there are serious cybersecurity issues, as I just mentioned, Igarashi-san will take leadership to form a task force to respond. Yeah, that is what we have in mind. This concludes my response.
[Translator] Thank you for those questions. Next, from Edison Group, Ms. Fiona Orford-Williams, please. Please unmute, and, please, introduce yourself.
Good morning, Fiona Orford-Williams from Edison. My two questions, well, first of all, I'm wondering where you're getting the most pushback from clients? What are they most reluctant to engage with you in? And my second question is about whether any of the initiatives that you've got underway are running behind your original intention. Thank you.
[Translator] Thank you for your questions, Fiona-san. First question was regarding if there is any pushback from clients, specifically, what kind of pushbacks? And the second question, could you repeat the second question? I'm sorry, could you repeat the second question?
Yes, of course. It's about whether any of your initiatives are running behind their original schedule.
[Translator] Thank you. The second question is about our measures, if they are behind the schedule. I would like to respond to both questions. This is Hiroshi Igarashi speaking. We are trying to solve challenges of the clients together, and we consider this to be very important. Regarding true client centricity, this is about what solutions we can offer and what capabilities we can enhance. We are considering this on a daily basis, and globally, as one team, we are implementing measures. Whether there are any pushbacks from our clients, the needs are different from client to another, and the challenges faced are also different from one client to another.
[Translator] But what we see as a major movement on the part of the clients is to narrow down on the number of agencies that clients are use. Clients are becoming more selective. And a single solution, whether a single solution is superior, integrated capabilities to commit to various market challenges of clients, I believe that is seen more important by clients. That is what we often hear in our communication with the client C-suite. And how to respond to those needs will be key to our growth going forward. Concerning the second question of whether there are any measures that are falling behind the schedule, I do not consider there are any that is behind the schedule. We are enhancing our competitiveness and ESG measures, which are the topic today.
[Translator] In regards to ESG measures, we are progressing in accordance with our roadmap, and at the board, the progress is being checked and inputs are given as we continue to make progress. In engaging in these efforts, we would like to make sure that we are able to achieve outcomes. Thank you for your questions.
[Translator] Thank you for the questions. I would like to repeatedly mention that if you have a question, please use the Raise Hand function on Zoom or press star nine on your telephone. Next question, SMBC Nikko Securities, Mr. Maeda. Please go ahead, please unmute, state your name and affiliation, and pose your question. Thank you very much.
[Translator] Thank you. From SMBC Nikko Securities, this is Maeda speaking. I also have two questions. First, ESG initiatives and your group's enhancement of corporate value, the relationship between the two. You explained in more detail than last year's ESG briefing and HR-related initiatives within Japan and overseas. Well, if I take a look at the win rate, I think you were able to increase competitiveness.
[Translator] Your win rate is increasing, so what is evidence of the fact that your measures are succeeding, particularly HR measures? And for E, with partner companies, I think you're working on various initiatives. You introduced them in your presentation, direction and the objectives, by aligning them, I think you can engage more, and, you'll probably be able to differentiate. What kinds of initiatives will lead to the growth, and improvement of your performance? Please comment about, E from that perspective. ESG and the improvement enhancing, corporate, value, the link between the two, that's my first question. And the question to Sogabe-san and Matsuda-san. I think you've already evolved, substantially. But there have been issues into group challenges, and that was the, next mid-term management plan.
[Translator] What particular areas of ESG do you want to reinforce further? Are there any thoughts on this point? These are the two questions I have.
[Translator] Thank you for the questions. First question, ESG and enhancing our corporate value, the relationship between the two. And I think you raised two examples as part of the question, HR perspective to increase competitiveness. Is there specific evidence of the fact that initiatives are succeeding? I would like to respond, again, that she will respond, and initiatives with the partner companies and specific initiatives. What are initiatives that contribute to our growth? Are there any initiatives? Yeah, that will be responded by Kitakaze-san. And the second question, I would like to call upon Sogabe-san, as well as Matsuda-san to respond. Please go ahead.
[Translator] And now, relationship between ESG and enhancing corporate value, particularly with regards to HR, talent initiatives. Whether these initiatives lead to increasing competitiveness of the group or not, whether there is any evidence as such. In each region and market, we confirm with clients. There's a client satisfaction survey. Region, we have data that the results of a client satisfaction survey is increasing, particularly increasing competitiveness by promoting HR initiatives. And clients have started to highly evaluate such initiatives of ours, and as a result, their satisfaction level is increasing, which means this is important in winning pitches. As Tanimoto-san mentioned in her explanation, we are focusing on such initiatives.
[Translator] A client satisfaction index, well, is a clear KPI that will enable us to measure how much success we are making in our ESG initiatives and how much we are able to increase our corporate value, so we want to continue to monitor such numbers. Initiatives with partner companies, particularly whether there are any initiatives that contribute to growth of our company. Kitakaze-san, can you respond? Are you available?
[Translator] This is Kitakaze speaking. I'm very sorry for being late. Initiatives with the partner companies, would that lead to enhancing ESG and increasing performance? I think ESG was originally a theme amongst investors, but I think sustainability is a goal that the humanity as a whole should strive for.
[Translator] Partner companies, employees, stakeholders within and outside of the company, we all have to cooperate, and maybe humanity is too grand a word, but in order for us to create a better society for the next generation, we think all of us must cooperate together. That, I think, is the first and foremost objective of the ESG. And under such circumstances, then, too, we'd like to do as best as we can, and if there's something missing, we have to fulfill missing capabilities. And we are working with partners who agree to our approach or not. Automatically, we are able to strengthen our ties with partner companies that share the same thinking. And employees are very proud of working for such a company, and that will ultimately lead to enhancing our corporate value and increasing competitiveness.
[Translator] I did talk about a grand concept, but this is what we are working on, and we want to continue such effort. This concludes my response.
[Translator] I would now like to call upon the two outside directors to respond.
[Translator] First, this is Sogabe. I would like to respond first. Maeda-san, thank you for your question. Challenges unique to Dentsu, and this relates to the important points we are working on in the area of ESG. Culture, creating culture, particularly integrity. Still, as Soga-san mentioned, why do we have to promote these initiatives? The reason is not yet fully understood by everyone in the group, but which means it takes time for this mindset to penetrate. This may be a unique challenge of Dentsu, and a very important core point of governance.
[Translator] And for E, part of ESG, as was explained before, Sustainability to Impact. The two sustainability initiatives are progressing quite well, and we want to share that knowledge with clients, and we want to incorporate what we learned in client services. We are able to do so, and we want to evolve further in this endeavor. And finally, about people talent, as Tanimoto-san explained, as One Dentsu, we are trying to evolve as one, and we're working on the various initiatives, and we are making steady progress, but we are engaged in business in various countries and regions, and working as one in this environment is very difficult. We want to make sure that our endeavors do not lag behind.
[Translator] We do not want to revert backwards, and for that purpose, we would like to support as much as possible from the board. This concludes my response.
[Translator] This is Matsuda. Sogabe-san, as what I may mention, that may overlap, with, so what Sogabe-san mentioned, I am a member of the audit committee. When it comes to G, we think there are still challenges within the Dentsu Group, and we think the board must try to enhance further the G portion of the ESG. Specifically, since last year, we've been working on One Dentsu, and under such circumstances, from my perspective, I have the impression that can we really continue business as one from various perspectives, in terms of talent, business, and in terms of control as well? How do we truly generate successful results as One Dentsu?
[Translator] It is an endeavor that takes time, but we want to tackle with as much speed as possible, and for that purpose, we think the board would have to extend our maximum support.
[Translator] Thank you very much.
[Translator] Thank you, Mr. Maeda, for those questions. We are nearing the time to end. The next question will be the final question from Tweedy, Browne . Mr. Olivier Berlage, please unmute and please introduce yourself.
[Translator] I, Tweedy, Browne. I'm Berlage Olivier from Tweedy, Browne . Can you hear me?
[Translator] Yes, we can.
[Translator] Over the last one to two years, when we look at the performance, we can see various issues, and if you reflect upon it at the board, what are the questions that are, that should have been posed by the board? What went well, or what should have been done better? What could have been done better in terms of, questions, performance, analysis or topics to be raised by the board? So that is the only question I have.
[Translator] We had some technical trouble with the audio, and the start of your question was cut off. Could you please repeat?
[Translator] At the board level, in the last one or two years, looking at the business performance issues, what were the problems and what questions should have been posed by the board? What agenda issues should have been discussed by the board? Looking back, what did the board miss? That was the question. About ESG's G part.
[Translator] Thank you, Olivier-san, for that question, and thank you very much for repeating the question. The question was regarding the business performance at the board level. If there are reflections, what were the issues, especially in the G of ESG, what were the issues? I believe that was the nature of the question. First, I would like to ask Tim-san, the Chair of the Board, to respond, and then one of the audit committee members, or since two of the outside directors are also on audit committees, I would like to ask Sogabe-san and Matsuda-san to comment. First, Tim-san, please.
Thank you, Igarashi-san, and, thank you, Olivier, for that question. It's a, it's a very difficult question to answer. It requires, you know, real introspection, and, and I think our board has been focusing on, you know, continuously improving the dialogue and the governance, you know, it, through, you know, the, the process of, of our, you know, continual meeting and our continual, evolution of the business. If, if I had to say the areas of, of, of improvement that we've focused on, based upon, watching how the business is operated, I, I would say, areas in, in, risk and internal control have been a subject of, of, of discussion.
I would also say the overall process of integration of our M&A has been a real topic of discussion that I think has led to some you know decision you know as you know in this year there's been a pullback from M&A to focus on investment in the business. And I think those types of discussions and direction of management have come from those kind of critical reflections that have occurred at the board and in discussion with the executive management have led to you know to areas of focus and improvement to move forward. I do think the board discussions are robust.
I think they're the ongoing performance challenges in the international business have been an area of focus, and I think that the upcoming midterm management plan is the board has been deeply involved in helping to give feedback to management that we expect will address the performance issues and allow us to move forward. Those would be my comments.
Sogabe-san, please.
Thank you. This is Sogabe speaking. As... In addition to what Tim-san mentioned, looking back on the discussions at the audit committee over the past one, two, or three years, most part of the discussion, much weight was given on various challenges related to internal control. The issues, the challenges that are related to internal control may lead to further issues, where management will have to address those issues. And the efforts that should have been concentrated on the businesses also had to be spent on addressing internal issues to a large degree, and therefore, internal control-related issues. And there are also reorganization efforts, and issues that were not as clear, have become much more clear.
To enhance efforts in these areas will lead to the business being facilitated, and the board and audit committee would continue to provide comments on these areas.
Matsuda speaking. What did the board miss, and what should have been done better? That is a very difficult question to answer, and as one of the members of the board, that is a very difficult question. We believe that we have had thorough, exhaustive discussions, but what more could have been done? I believe that there might have been more that could have been done. But looking back over the past may appear not to be forward-looking, but on occasions, I think it requires us to reflect seriously upon the past. And reflection on the past is not necessarily negative.
There are learnings that will be positive for the future, and there may have been more learnings by looking back. But as a member of the board, including these reflections, what is useful for businesses? In what way can we play a more useful role for the business? That is constantly on our mind. Thank you very much.
I'm also a member of the board, and therefore, I would also like to offer some additional comments. There are various challenges and issues in business performance, and there has been quite thorough discussions at the board. But as the viewpoints, we have established a finance committee, finance advisory committee. Although it is an advisory committee, for stronger discipline in finance and for the checking of the performance.
Regarding the past year's performance, there has to be a review, so that our businesses will be aligned with shareholder value, and the board agreed to that. And a finance committee, comprising solely of outside directors, was established. Of course, we are reflecting on the past, but at the same time, the strategy to be implemented going forward is also discussed, by establishing such a committee and also by deliberating at the board. And we would like to deepen our discussion, which is aligned with shareholder values. Thank you for your question. Thank you for all the questions. With that, we would like to conclude our ESG Briefing 2024. Thank you very much for participating today out of your busy schedules.