MATERIALITY|SUSTAINABILITY
Materiality (Key Issues) | Sustainability

Identification of Materiality (Key Issues)

We have identified materiality in order to advance our sustainability initiatives, establishing specific measures and evaluation metrics toward the realization of our Group’s purpose and Sustainability Policy.

Materiality Identification Process


  1. STEP 01

    Issue Extraction and Weighting

    Social issues were extracted and organized based on international standards. The extracted issues were then weighted and evaluated along two axes: "Importance to the Adways Group" and "Expectations from Stakeholders toward the Adways Group."

  2. STEP 02

    Mapping of Key Issues and Drafting of Materiality Proposals

    Mapping was conducted by narrowing down to high-priority issues. A draft materiality proposal was formulated based on the assessment map, the Adways Group’s purpose, and management policies.

  3. STEP 03

    Validity Review

    The validity of the drafted materiality proposal was discussed at the Sustainability Committee.

  4. STEP 04

    Materiality Identification

    Materiality was identified following approval by the Management Meeting and the Board of Directors.

Assessment Map

Assessment Map

Identified Materiality

Materiality

Materiality Sub-Categories

Relevance to ESG

E

S

G

Expanding opportunities for diverse talent and realizing “No People, No Gain” — broadening possibilities for every person.
· Enriching work-life balance and fostering diverse career development
· Diversity & Inclusion
Contributing to the healthy development of the internet ecosystem by pursuing the intrinsic value and potential of advertising.
· Resolving information asymmetry and delivering genuine advertising value
· Promoting a healthier internet ecosystem
Contributing to the Global Environment
· Initiatives toward a decarbonized society
Strengthening the Corporate Governance Framework
· Building and improving the corporate governance framework

Initiatives for Identified Materiality

We have established "evaluation metrics (*)" for each identified materiality item and continuously monitor progress on our initiatives. We regularly review the issues to be prioritized over the medium to long term, and following resolution at the Sustainability Committee, we set metrics and targets for the highest-priority issues and work toward achieving those targets.

"Evaluation metrics" are established for the purpose of tracking progress on initiatives within the Group and considering countermeasures or additional measures as needed, and therefore include undisclosed information.

Expanding opportunities for diverse talent and realizing “No People, No Gain” — broadening possibilities for every person.

Talent Development

The Adways Group places great importance on "believing in people’s potential and being a company filled with work that makes people want to say 'I want to take on that challenge!’" We also strive to provide work where employees can feel themselves growing every day — a company filled with valuable work that they can proudly share with their families. Our goal is to create an environment where values and individuality are respected, where systems allow each person to work in a way that fits their lifestyle and life stage, and where diverse talent can thrive and take on challenges.
With "expanding possibilities for every person and providing opportunities for growth" as our foundation, we are working to enhance our HR systems and talent development programs, and to improve the working environment.


Enriching Work-Life Balance and Fostering Diverse Career Development

The Adways Group values “No People, No Gain” — expanding possibilities for every person and providing opportunities for growth. We aspire to create an environment for our employees where they can feel themselves growing and are surrounded by meaningful, valuable work.

As part of our initiatives to maintain and improve employee health, we have established comprehensive health checkups and medical examinations. We foster systems that allow each employee to work in a way that fits their lifestyle and life stage, and cultivate an environment and culture where diverse talent can thrive and take on challenges. Through proprietary programs aimed at improving productivity, we develop talent capable of driving operational efficiency improvements and creating new products and value.

By believing in people’s potential and advancing initiatives that contribute to the growth of diverse talent, we aim to achieve corporate growth and enhance corporate value.

Work-Life Balance

Evaluation Metrics

Employee engagement survey (improvement/increase in engagement score compared to the previous fiscal year)

Promotion of health management

Improvement of productivity

Related Links


Diversity & Inclusion

We believe that improving innovation and creativity within a company is only possible through the active contribution of diverse talent.

In addition to focusing on building systems and environments where women can work comfortably and actively, and on improving the rate and duration of Male parental leave, we have expanded systems that respect each employee’s values and individuality and enable them to work in a way that fits their lifestyle and life stage — including the "Adways Marriage Registration (Same-Sex Partnership Certification System)," which defines "spouse" in our internal regulations to include same-sex and common-law partners. We are also working to cultivate a culture of respect for diversity.

Diversity & Inclusion

Evaluation Metrics

Employee engagement survey (improvement/increase in engagement score compared to the previous fiscal year)

Ratio of women in managerial positions (targeting parity with the overall employee gender ratio)

Key Achievements

Female employee ratio: 43%; female managerial ratio 1: 21% (as of December 31, 2025 / Group)

Male parental leave utilization rate 2: 81.8%; average number of days of male parental leave taken: 36 days (as of December 31, 2025 / standalone)

Gender pay gap 1 3: 73.4% (as of December 31, 2025 / standalone)

1Calculated in accordance with the provisions of the "Act on Promotion of Women’s Participation and Advancement in the Workplace" (Act No. 64 of 2015).

2Calculated in accordance with the provisions of the "Act on the Welfare of Workers Who Take Care of Children or Other Family Members Including Child Care and Family Care Leave" (Act No. 76 of 1991), specifically the utilization rate of childcare leave, etc., as set forth in Article 71-4, Item 1 of the "Ordinance for Enforcement of the Act on the Welfare of Workers Who Take Care of Children or Other Family Members Including Child Care and Family Care Leave" (Ministry of Labor Ordinance No. 25 of 1991).

3The number of employees has been converted and calculated based on working hours.

Contributing to the healthy development of the internet ecosystem by pursuing the intrinsic value and potential of advertising.

Advertising Value

In the internet advertising industry in which the Adways Group operates, deceptive, valueless, and fraudulent advertisements are rampant, and businesses that exploit information asymmetry are widespread.

We believe that such business practices, by causing a proliferation of advertisements unwanted by users and publishers, not only contribute to an aversion to advertising but also lead to the "pollution of the internet space."
To deliver advertisements as 'information worth encountering,’ we are committed to contributing to the sound development of the industry and, by extension, the advancement of the internet space, by not only researching and utilizing advanced technologies such as AI but also by delivering ads with consideration for the user’s advertising experience.

We will also leverage the expertise and digital technologies of the Adways Group to contribute to the communities closest to us.


Resolving Information Asymmetry and Delivering Genuine Advertising Value

Advertising, by its very nature, is a valuable medium that allows for the joy of "serendipity"—the unexpected discovery of information one might not ordinarily encounter in daily life.
We aim to establish an intrinsically valuable advertising business that provides value to all stakeholders, by eliminating "unpleasant advertisements for users" and "advertisements detrimental to advertisers."
To this end, we promote investment, research, and utilization of advanced technologies, including AI, to deliver advertising as "information worth encountering" through the creation of unprecedented innovative products and ad formats.

We will also leverage the expertise and digital technologies of the Adways Group — encompassing "genuine advertising value" and "new advertising experiences" — to contribute to the communities around us.

Delivering Advertising Value

Evaluation Metrics

Contributing to Communities Through Digital Technology

Implementation and continuation of sponsorships linked to social contribution activities

Investment in product development

Delivering new advertising experiences

Investment in cutting-edge technology


Promoting a Healthier Internet Ecosystem

In the internet advertising industry, misleading, low-value, and fraudulent advertisements are widespread and the display of numerous unwanted ads to users and publishers not only contributes to ad aversion but also leads to the "pollution of the internet ecosystem."

The Adways Group establishes and rigorously enforces its own unique standards for ad review, and through ad delivery that prioritizes the user’s advertising experience, aims to deliver advertising to all individuals as "information worth encountering."
Guided by this philosophy, we promptly address the needs and challenges of the diversifying and complex internet advertising market, contributing to the healthy development of the industry and, ultimately, to the advancement of the internet space.

Internet Ecosystem Health

Evaluation Metrics

Rigorous enforcement of proprietary standards in ad review

Contributing to the Global Environment

Contributing to the Global Environment

Our Group recognizes that climate change, which poses significant risks to society and businesses, is an important management challenge. Based on the TCFD framework, we disclose the following information on "Governance related to climate change," "Strategy," "Risk Management," and "Metrics and Targets."


Initiatives toward a Decarbonized Society

Governance Related to Climate Change

At the Board of Directors meeting held on December 26, 2023, we established the "Sustainability Committee," chaired by the President and Representative Director, to drive and manage sustainability initiatives across our Group and to support the Board of Directors in its decision-making. Matters discussed at the Sustainability Committee are reported to the Board of Directors, and decisions on significant topics are made at the board level.

For details on the framework, please refer to the"Promotion Framework Diagram".


Strategy

Our Group has identified climate-related risks and opportunities as described below, based on assumptions about the external environment under a 4°C scenario in which climate change mitigation measures do not advance sufficiently.

Risks / Opportunities

Category

Item

Impact Level

Transition Risks

Policy & Regulation

Increase in direct business operating costs due to the introduction of carbon taxes, rising energy costs driven by higher renewable energy ratios, and associated increases in raw material prices.

Low

Market

Price increases driven by a higher renewable energy ratio.

High

Contraction of economic activity resulting from price increases driven by a higher renewable energy ratio.

Medium

Decline in revenue from companies in industries with high greenhouse gas emissions.

Low

Reputation

Loss of business opportunities if clients perceive our decarbonization efforts as insufficient.

Medium

Decline in share price if investors perceive our decarbonization efforts as insufficient.

Medium

Physical Risks

Acute

Revenue decline due to natural disasters.

High

Revenue decline due to reduced purchasing intent among end users.

Medium

Chronic

Increased costs for air conditioning and related expenses in the event of prolonged chronic temperature rises.

Low

Opportunities

Market

Increase in revenue from client companies that manufacture and sell decarbonization-related or environmentally friendly products and services.

Medium

Reputation

Increase in business opportunities and revenue if clients perceive our decarbonization efforts as proactive.

Medium

Increase in share price if investors perceive our decarbonization efforts as proactive.

Medium

Risk Management

As part of strengthening our risk management framework, we have established a "Risk Management Committee" chaired by the Chairman of the Board and composed of full-time directors and audit & supervisory board members, the head of the Administrative Division, the head of the Compliance Office, and our legal counsel. This committee identifies business risks and examines preventive measures and response procedures in the event of risk materialization. The "Sustainability Committee" and the "Risk Management Committee" work in coordination to strengthen risk management and governance related to sustainability, including climate change.

For details on the framework, please refer to the"Promotion Framework Diagram".


Metrics and Targets

Given the nature of our Group’s business, we currently believe that the direct impact of climate-related risks on our financial performance is not significant, and we have not yet established greenhouse gas emissions reduction targets. However, we will continue to monitor developments and consider countermeasures as appropriate.

For information on greenhouse gas (GHG) emissions, please refer to theESG Data.


Related Links

Strengthening the Corporate Governance Framework

Corporate Governance

Our fundamental approach to corporate governance is to ensure the soundness and enhance the transparency of management, grounded in a commitment to stable growth in corporate value and a shareholder-oriented perspective. To this end, our most important management policies are: to pursue appropriate profitability and financial soundness; to build a disclosure framework that enables timely disclosure; and to ensure that directors and audit & supervisory board members each maintain their independence and fulfill their responsibilities for business execution and oversight.


Building and Improving the Corporate Governance Framework

To enhance the effectiveness of our corporate governance, we promote the strengthening of our internal control system and administrative functions, drawing on the expertise of attorneys, certified public accountants, and other specialists. We have also established and comply with the "Corporate Conduct Charter" to reinforce and instill a rigorous compliance-oriented culture throughout the organization. Furthermore, recognizing that respect for human rights is fundamental to all of our business activities, we have established the "Adways Group Human Rights Policy" as our commitment to fulfilling this responsibility.

Governance Framework Diagram

Evaluation Metrics

Content of Board of Directors Effectiveness Evaluation

Ratio of independent outside directors

Evaluations from markets and investors

Number of director attendance at Board meetings

Number of audit & supervisory board member attendance at Audit & Supervisory Board meetings

Key Achievements

Ratio of independent outside directors: 38% (as of December 31, 2025 / standalone)

Average attendance rate of directors at Board meetings: 100% (as of December 31, 2025 / standalone)

Average attendance rate of audit & supervisory board members at Audit & Supervisory Board meetings: 100% (as of December 31, 2025 / standalone)

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