Long-term value

          Long-term value  -  Actions of EY Japan

          For many years, Building a better working world has been our purpose. In 2016, we participated in the Embankment Project for Inclusive Capitalism and established the LTV Promotional Office in July 2020. In September of the same year, we helped formulating the World Economic Forum (WEF) Stakeholder Capitalism Metrics.

          Traditionally, capitalist societies have adopted a relatively short-term perspective, focusing on the competitive edge, improved earnings and shareholder value. In recent years, corporate value is starting to be re-defined to include the value that companies provide to society and the environment from a longer-term perspective, areas traditionally positioned as CSR activities and companies' value to consumers and corporate members.

          To our clients, which include corporates, governments, institutional investors, and broader society, we offer various consultancy services to design and implement transformation strategies focused on creating long-term value. In doing so, we take on the challenge to make a transformative impact on business and society. We are committed to leading by example by launching the EY Japan LTV vision; our transformation is essential to achieve a transformative impact for our clients.

          We will achieve our purpose by serving and collaborating with stakeholders who share our vision to build a better society for the next generation.

          Edited by Tokuya Takizawa

          EY Japan Managing Partner –Markets, EY Japan Chief Sustainability Officer

          EY Japan Regional Markets leader. Strong loyalty to the EY organization for more than 30 years. Certified public accountant.

          EY Japan LTV Vision

          The achievement of long-term, sustainable and inclusive growth is part of our purpose at EY of Building a better working world.

          To achieve long-term value creation in an uncertain and new era, EY Japan has established its LTV activity policy for our clients, society, the economy and ourselves.

          LTV activity policy at EY Japan

          Clients:
          With a long-term perspective, we will transform companies and industries and contribute to the maximization of corporate value.

          EY Japan aims to find alternatives to the challenges facing Japan's economy and society. With this in mind, we offer various consultancy services to help companies design and implement transformation strategies focused on creating long-term value. EY services to support companies' long-term growth include the valuation of non-financial information and the provision of assurance on this information.

          Socioeconomic:
          To build a better society, we will work on transforming the socioeconomic system itself from a long-term perspective.

          Society has witnessed the birth of new technologies and industries, such as hydrogen power generation and renewable energy, decarbonization, the use of the human microbiome, symbiotics, a shift from the Internet of Things (IoT) to the Internet of Behavior (IoB) and Augmented Human technology. EY Japan continues to directly support the growth and development of these new industries and develop the tools to assess and analyze them to build the trust required by capital markets as value is created.

          Firm/HR:
          We will lead society by pursuing our own approach to being a sustainable corporate citizen. 

          As business leaders, we recognize the need to provide long-term value to all stakeholders to build a better working world. To achieve this, EY Japan will commit to engaging in its own transformation journey. We will pursue our goal of long-term value creation by executing specific goals and KPIs in principles of governance, planet, talent and social value.

          KPIs and targets at EY Japan

          In order for EY Japan to make a sincere effort to realize value creation from a long-term perspective and fulfill its accountability to stakeholders, we will disclose our KPIs ahead of the industry.

          • Principles of Governance

            As a trusted provider of specialized professional services, creating long-term value is an integral part of EY's LTV vision goals. EY believes that implementing quality improvement activities that consistently aim for high standards throughout the world will eventually create long-term value for society.                      

            • Purpose driven management 
              ・Describe Building a better working world
            • Activities on preventing corruption, fraud and non-ethical behavior 
              ・Percentage of employees taking anti-corruption training - 100% from FY22
              ・Percentage of employees who sign Global Code of Conduct - 100% from FY22
               
          • Planet

            Climate change is one of the key challenges of our time. There is no question climate change is a scientific fact. We face irreversible and significant climate change, and we need to take immediate action to protect our planet for the next generation.

            • Achieve net zero by FY25
              Achieve the science-based targets (SBT) in line with a 1.5℃ future and offset residual CO2 emissions with credits and removal from the atmosphere.
            • Percentage using renewable energy for office electricity - 100% by FY25
            • Reduce business travel CO2 emissions by 35% by FY25(compared to FY19)
                
              ・Firmwide introduction and utilization of CO2 emission calculation tool for client related business trips.
            • Recycling oriented office 
              Recycling rate for papers and general waste in Tokyo office - 80% by FY24 
              ・The use of disposable plastics in the Tokyo office cafeteria – Zero from FY22 
              ・Recycling rate for furniture in Tokyo office - 100% from FY22
            • Green procurement
              ・Science-based targets (SBT) rate setting for suppliers (based on order value) 75% by FY25
              ・The number of companies requesting to be set up as SBT suppliers – 54 companies by FY25

            1 Science-based targets (SBT); emission reduction targets based on scientific evidence: Greenhouse gas reduction targets. The goal is to reduce EY's CO2 emissions in line with climate science and the Paris Climate Agreement's goals to limit global warming to 1.5°C within pre-industrial levels.

            EY’s SBT: EY commits to reduce absolute scope 1, 2 and 3 GHG emissions 40% by FY25 from base year FY19. Within this target, EY commits to reduce absolute scope 1 and 2 GHG emissions 93% and absolute scope 3 GHG emissions from business travel, employee commuting, fuel and energy-related activities, upstream transportation and distribution, waste generated in operations 32% over the same timeframe. EY also commits to increasing the annual sourcing of renewable electricity from 41%in FY19 to 100% by FY25. The targets covering greenhouse gas emissions from company operations (scopes 1 and 2) are consistent with reductions required to keep warming to 1.5℃.

             

          • Talent

            At EY Japan, every professional is a valuable asset to the firm. To achieve our purpose of Building a better working world, we believe that it is necessary to create an attractive workplace where each professional can reach their full potential and achieve the highest possible standards.

            • DE&I
              ・Rate of women in managerial positions: up by 15% by FY25 for both PPAPD and Manager
              ・The number of companies registered as DE&I preferred suppliers 3: 20 companies by FY25
              ・Obtain “Rainbow 4” grade in the Pride Index 5, metrics for evaluating LGBTQ+-related initiatives from FY22
              ・Inclusive Culture Items Score6 77 by FY25
              ・Launch a Neuro Diversity Center7 by FY23
              EY has been promoting the Neuro Diversity Center since 2016. We have decided to launch it in Japan.
            • Health and work safety
              More than 2,000 participants in well-being activities from FY22
              ・More than six collaborations per year with experts, external organizations, and other initiatives from FY22
              ・Introduction of subjective well-being indicators from FY22
              ・Introduction and implementation of a comprehensive health management index8: Risk level 3 or less for each item and 21 or less for overall risk at all service lines in FY23
              ・Acquisition of Health and Productivity Management Index ”White 500”9  by FY25
            • Education and training
              ・Number of Purpose training recipients: over 250 people a year from FY22
              ・Number of EY Badges obtained: 500 in 2022, 3000 cumulatively by FY25
              ・Training hours: 60 units (hours) from FY22
            • Create a comfortable work environment
              ・Percentage of male members taking childcare leave and new fathers taking paternity leave: Achieve 70% in FY22, 90% by FY25 
              ・Continuous employment rate for women (ratio of women who are in employment when their child is 1 year old) 70% (within FY25)
              ・Engagement Index score11 70 by FY25

            2 PPAPD: Partner, principal, associate partner, and director
            3 DE&I preferred suppliers: register female entrepreneurs to improve supplier diversity
            4 Rainbow:  Rainbow encourages companies to go beyond what they can do on their own and join forces with other players to make a medium- to long-term commitment to creating a workplace and society where LGBTQ people can work as themselves.
            5 PRIDE Index: an evaluation index for initiatives related to LGBTQ and other sexual minorities (hereafter, LGBTQ) in companies and organizations, formulated by the voluntary organization work with Pride (wwP). It consists of the following five indicators:

            1. Policy
            2. Representation
            3. Inspiration
            4. Development
            5. Engagement/Empowerment

            6 Inclusive Culture Items Score: EY regularly conducts surveys on corporate culture and employee job satisfaction, and the results are calculated by synthesizing the scores of indicators related to inclusiveness.
            7 Neuro Diversity Center: A shared service that recruits and utilizes neuro-divergent individuals (developmental disabilities, Asperger's syndrome, autism, etc.).
            8 Comprehensive health management index: EY Japan’s original index. The calculation formula is as follows.
            absenteeism rate (mental) ×4 + risk of cerebrovascular/cardiac disease 《long working hours×risk of medical checkup×2 + score of stress level check×1》
            9 Health and productivity management index ”White 500”: In the "Excellent Health Management Corporation Certification System" established by the Ministry of Economy, Trade and Industry (METI) and operated by the Japan Health Council, corporations such as large corporations and small and medium-sized companies that practice particularly excellent health management are certified.
            10 EY Badge: The program was launched to gain valuable skills focused on the future, such as data science, AI and leadership, and to share them with EY members and the broader market. It is also linked to global standards and can be regarded as a credential that is maintained throughout one's career, rather than just an internal qualification.
            11 Engagement Index Score: EY regularly conducts surveys on corporate culture and employee job satisfaction, and the results are calculated by synthesizing the scores of indicators related to engagement.

             

          • Social Value

            We will focus on supporting next-generation talent, working together with entrepreneurs with a social impact. Leveraging our skills where we can best contribute, we bring the value created by EY knowledge to people around the world and to geographies where it is difficult to reach otherwise.

            • Number of EY Japan members participating in EY Ripples12 activities: Plan to reach 1600 people in FY22
            • Number of people EY Japan will positively impact with EY Ripple activities: 500,000 people in FY22

            12 EY Ripples: EY Ripples is our global corporate responsibility program aimed at mobilizing our 300,000 people around the world to build a better future by making a difference in 1 billion lives over the next decade. It puts our values into action and shows what’s possible when we work together. The program has three key areas of focus.

            1. Supporting the next generation.
            2. Working with impact entrepreneurs.  
            3. Accelerating environmental sustainability.
             
             

          EY Japan's main LTV vision initiatives in the fiscal year 22

          Distinctive initiatives from EY Japan

          EY Japan will collaborate with stakeholders who share our purpose of Building a better working world to lead transformation and contribute to the sustainable development of a better society for the next generation.

          Help create new industries that form the basis of sustainable socioeconomic systems and the platforms that support them

          Create a work environment where diverse talents can flexibly maximize their abilities

          Initiatives to build and realize a better society by fully utilizing our global network with more than 300,000 members in more than 150 countries and regions around the world

          EY Japan’s Long-term Value Vision

          We at EY Japan have launched our LTV vision and established the LTV activity policy for our clients, the economy, our society and for ourselves. We will support the sustainable growth of our stakeholders and take the lead in the transformation and pursuit of long-term value creation.

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          Long-term value

          Long-term value is created by focusing on a broad set of stakeholders, with a distinct purpose in mind, to sustain a business for the long term.

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