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Takeshi Idezawa, Chairman of LY Corporation Who Spearheaded the LINE and Yahoo Japan Merger: We Are Advancing Human Rights Among Global Stakeholders!

Jack Huang by Jack Huang
August 20, 2024
Takashi Idezawa, Chairman of LY Corporation (Photography: Yahoo News Singapore)

Takashi Idezawa, Chairman of LY Corporation (Photography: Yahoo News Singapore)

As one of the leaders in Japan’s digital technology sector, LY Corporation has influenced the lives of hundreds of millions of people globally through innovative technologies and a wide range of services. The company’s flagship products include the instant messaging app LINE, along with other widely used digital services. LINE has become an indispensable part of daily life in key Asian markets such as Japan, Taiwan, Indonesia, and Thailand. From instant messaging on LINE, digital payments via LINE Pay, to entertainment through LINE TV, LY Corporation continues to expand its business landscape to meet the diverse needs of its users.

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Last year, LINE Corporation completed its merger with Yahoo Japan Corporation, and the company name was changed to LY Corporation, marking a significant milestone in the company’s journey within the digital economy. This merger not only strengthened LY Corporation’s leadership in the Japanese market but also opened new avenues for business development, enabling the company to offer more comprehensive digital services. The synergy between these two giants has enhanced the company’s competitiveness in areas such as data analytics, artificial intelligence, and fintech.

In the current global context of combating climate change, a company’s sustainable development strategy has become a crucial factor in determining its future success. With the increasing global emphasis on corporate social responsibility, LY Corporation, as a member of RE100, is led by Chairman Takeshi Idezawa, who is not only committed to achieving a sustainable society but also guiding the company forward in a rapidly changing environment.

Challenges of Energy Transition and Environmental Protection

Data centers are a core component of LY Corporation’s business operations, but Takeshi Idezawa also noted, “Data centers are the main source of the company’s CO2 emissions, so we must seek more efficient energy usage methods and technologies to address this issue.” Reducing the carbon footprint of these facilities without compromising operational efficiency is one of the major challenges he faces.

In alignment with the United Nations Sustainable Development Goal 13, “Climate Action,” Takeshi Idezawa mentioned, “LY Corporation will take the lead in transitioning all the electricity used in business activities to renewable energy by the end of the fiscal year 2025.” The implementation of this plan represents a significant investment in upgrading the existing infrastructure with advanced technologies. Although LY Corporation has a leading edge in technological innovation, achieving a large-scale energy transition will still face technical bottlenecks and market challenges.

According to LY Corporation’s basic environmental policy, the group will set targets to reduce environmental impact and collaborate with the supply chain to achieve these goals. In the short term, LY Corporation aims to reduce Scope 1 (direct emissions) and Scope 2 (indirect emissions from electricity) greenhouse gas emissions to net zero by the fiscal year 2025. To this end, the company has established a dedicated environmental team to focus on environmental protection.

Currently, LY Corporation has publicly disclosed relevant data on its sustainability goals on its official website. The proportion of renewable energy consumption in total electricity consumption has increased from 54.03% in 2022 to 63.13% in 2023, while the renewable energy electricity consumption has risen from 290,275 MWh in 2022 to 393,243 MWh in 2023, all of which are verified by third parties.

Additionally, in supply chain management, LY Corporation has implemented a series of sustainability measures. Takeshi Idezawa stated, “We will fulfill our responsibility to the global environment through sustainable procurement, waste management, and the protection of water resources and biodiversity, while also considering the impact on ecosystems.” He believes that when promoting sustainable development, companies should not only focus on their operations but also extend their responsibility to the entire supply chain.

LY Corporation has established a series of measures for environmental sustainability. (Photography: LY Corporation)

Creating a Diverse and Inclusive Work Environment

LY Corporation’s sustainability strategy extends beyond environmental protection to encompass responsibilities toward employees and society. Takeshi Idezawa emphasized the importance of human rights, stating, “We will actively address human rights issues, such as understanding diversity and eliminating discrimination, not only within our workforce but also among all stakeholders, including the supply chain and users.” At LY Corporation, creating a diverse and inclusive work environment is a key component of the company’s culture.

The company actively promotes gender equality and cultural diversity, ensuring that all employees work in an environment of respect and support. As of the 2023 fiscal year, the gender ratio among employees is approximately 33% female and 67% male. In contrast, the gender ratio in management positions is about 18% female and 82% male. Although the company’s Diversity, Equity, and Inclusion (DE&I) awareness survey did not reveal significant gender-based discrimination or bias within the company, there is a noticeable disparity between the overall gender ratio and that in management positions. To align with the United Nations Sustainable Development Goal 5, “Gender Equality,” and to improve the current situation, LY Corporation has set a goal to achieve gender parity among employees and management by 2030.

Additionally, LY Corporation aims to create a society where LGBTQ+ and other sexual minorities can live and work without discrimination or bias. The company has engaged in various activities both within and outside the organization, such as participating in the Tokyo Rainbow Pride event, to express support for LGBTQ+ and other sexual minorities. Through these efforts, LY Corporation received the highest “Gold” rating in the PRIDE Index in the 2023 fiscal year.

Furthermore, in addition to the previously mentioned environmental team, the group has also established a Human Rights Task Force. This new task force, led by the Board of Directors and management, has developed a fundamental human rights policy and designed monitoring and promotion systems to track progress on related measures.

Beyond its internal operations, LY Corporation adheres to its fundamental human rights policy across all business activities, contributing to the creation of a sustainable environment and society. The group also requires its suppliers and business partners to comply with international human rights principles and the group’s own code of conduct, setting guidelines for respecting human rights.

Social Responsibility and Future Outlook for Coexistence and Prosperity

Takeshi Idezawa is acutely aware that as a global enterprise, LY Corporation’s actions have a significant impact on the world. He emphasized, “To achieve a society where everyone can live happily, we will strengthen our sustainability efforts and continue to bravely face the challenges of change.”

To this end, LY Corporation has established a Sustainability Committee directly overseen by the Board of Directors, which includes both the Environmental and Human Rights Task Forces. Additionally, to ensure progress in promoting sustainability, LY Corporation has incorporated sustainability assessments as one of the indicators for cash bonuses for senior executives. These assessments are based on the results of various material indicators from the previous fiscal year, including progress toward carbon neutrality, diversity metrics, data governance, among others, with the goal of fulfilling the company’s mission and enhancing corporate value over the medium to long term, while also aiding in the external evaluations by ESG rating agencies.

In response to natural disasters related to climate change, LY Corporation will collaborate with social institutions through partnerships with local governments and disaster prevention and mitigation services. To address natural disasters, LY Corporation plans to sign disaster alliance agreements with local municipalities, aiming to protect over 90% of Japan’s population by the fiscal year 2025. Regarding employee education, the group will ensure that employees understand the importance of environmental issues to improve services and drive environmental innovation. Moving forward, LY Corporation will continue to explore new technologies and strategies, further advancing sustainability and working with stakeholders to achieve global sustainable development and shared prosperity.

Organizational Structure of LY Corporation’s Sustainability Committee and Related Departments. (Photography: LY Corporation)

From Commitment to Action: LY Corporation’s Path to Sustainable Development

Under the leadership of Takeshi Idezawa, LY Corporation has demonstrated strong leadership in addressing global climate change and social challenges. From the energy transition of data centers to supply chain management, and from employee inclusivity to social responsibility, LY Corporation has not only committed to integrating sustainable development into its business operations but has also taken concrete actions to achieve this goal.

As Takeshi Idezawa stated, “As a company and service, we will strive to coexist and prosper with all stakeholders.” This statement not only embodies LY Corporation’s corporate mission but also reflects the company’s commitment to the future. As global environmental and social challenges continue to intensify, LY Corporation remains dedicated to advancing sustainable development and making a positive contribution to the world’s future.

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Tags: esgLY CorporationSDGsTakashi Idezawa
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Jack Huang

Jack Huang

Enterprise Application Center Consultant / Data Analyst / International Press

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