MATERIALITY

The KADOKAWA Group discovers diverse talent from around the world to create more IP, while maximizing IP’s LTV (lifetime value) through inter-business collaboration. Furthermore, by constantly incorporating the latest technology, we are advancing our basic strategy of “Global Media Mix with Technology,” to spread our IP across the globe.

We will deliver the following values through the advancement of our basic strategy, thereby fulfilling our contribution to individuals, social, and culture.

  • Each individual finds their own types of content that make them happy in their own way
  • Diverse content (IP) promotes mutual understanding and aids in achieving peace
  • Culture is passed on to the next generation, then new culture emerges

Including the above, the Group has defined the issues that can be addressed through the sustainable development, execution, and growth of our businesses among the numerous challenges facing society as a whole as “Material Issues = Materiality,” and has established five materiality items.

Process for Establishing Materiality

STEP1

Organizing the relationship between the Group’s key business issues and societal issues

We have identified societal issues that can be addressed through the sustainable development and growth of the Group’s businesses, centered on IP Creation and Maximizing IP’s LTV.
STEP2

Identifying and aggregating societal issues

We have identified and aggregated key societal issues based on guidelines such as GRI, SASB, and SDGs, as well as disclosure requirements from ESG rating agencies.
STEP3

Establishing the Group’s materiality proposal by aligning both business and societal perspectives

We have re-examined the significant issues that fall within the overlapping area between the Group’s key business issues and societal issues. Based on this, we have established five materiality proposals for the Group.
STEP4

Determining materiality

The materiality proposal was discussed and reviewed at a meeting attended by management, corporate officers, and relevant department personnel. Following a report to the Members of the Board, materiality was determined.

KADOKAWA Group Materiality

Materiality Explanation
1 Contributing to the enrichment of individuals and communities, the advancement of culture, and the growth of the content industry through the creation and maximization of diverse IP (intellectual property) value We will foster diverse IP based on varied ideas and values, building strong relationships with creators and other stakeholders while accurately assessing market conditions. Furthermore, we will make the most of technology to expand IP globally, preventing unauthorized use while maximizing its value. Through these business activities, we aim to bring happiness and passion to our readers and individual users, while also fostering empathy with others on our platform. This contributes to societal development by invigorating communities, creating and preserving culture, and promoting mutual understanding of diverse values. We also contribute to the growth and globalization of the content industry, as well as the creation of employment opportunities for IP-related talent.
2 Maximizing results through enhanced employee motivation and creativity, while contributing to the creation of a fulfilling work environment for all people involved in making content By enhancing our human resources systems and building a better working environment, we will boost employee motivation and encourage the expression of creativity, thereby supporting the creation of business value. Furthermore, improving the working environment and strengthening systems will expand opportunities to attract new talent, enabling more sustainable business growth. These human capital initiatives will positively impact the entire industry, contributing to the creation of an environment where everyone working in the content industry can thrive.
3 Sustainable growth of our education business through the broad provision of specialized and practical educational programs, and the cultivation of talent for society as a whole, including the content industry We operate schools specializing in creative fields and provide unique educational content and systems, delivering specialized and practical educational programs including online classes. We position this distinctive education business as a key pillar of our business portfolio and will actively invest in it. Amidst a changing social environment, including declining birthrates, the growth of this initiative of high public importance expands equal educational opportunities for all. It particularly fosters the development and production of next-generation talent within the content industry, promotes reskilling for the current workforce, and helps alleviate the shortage of creative professionals.
4 Achieving sustainability for our publication business and the industry as a whole through the promotion of publication manufacturing and distribution DX, while optimizing resource usage and minimizing waste We are advancing publication manufacturing and distribution DX to deliver the necessary books to readers when they need them, thereby achieving sustainability for our Group's publication business and the publishing industry as a whole through measures such as reducing return rates. This will lead to the appropriate use of resources. We are also addressing challenges associated with climate change by minimizing waste through recycling and introducing renewable energy.
5 Enhancing stakeholder benefits and reliability through strengthened governance and fair, transparent management We will rigorously manage compliance and information security, strengthen corporate governance, and enhance trust in the Company through open and fair management decision-making. As a corporate group with a listed company as its parent, we will fulfill our responsibilities and contribute to ensuring peace of mind and enhancing the interests of our broad range of stakeholders.

*The numbers do not indicate priority.

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