Materiality

02
CHAPTER

Supporting lifelong growth
to shape the next era
Materiality
While analyzing the dramatic changes of the current era,
we held repeated discussions to identify our materiality
in order to resolutely make it through to the next era.
New endeavors of the Benesse Group have already begun.

35

Benesse Report 2023

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36

CHAPTER

02 Materiality

Revision of Materiality
We have revised our materiality inconsideration of the changes in thesocial environment surrounding
the Benesse Group.

When formulating our Transformation Business Plan by updating our
medium-term management plan announced in 2020 in view of diverse changes
in the business environment, we also revised our materiality in line with thecurrent situation. Our new materiality is composed of three business themes
aimed at achieving the Group’s purpose, underpinned by a foundation of ESG
promotion.

Haruna Okada
Managing Executive Officer
Executive General Manager
of Sustainability

Toward the Achievement of our Purpose
We will provide products and services to help resolve key social issues in the fields of learning support for children, career development
support for working adults, and nursing care. Furthermore, we will establish and maintain a solid foundation for achieving our purpose,and will aim for sustainable growth while earning the trust of society.

Supporting diversified and multilayered learning experiences toprovide motivational education services
Amid dramatic societal changes affecting children and schools, we will provide education services that accommodate diversity and disparityof opportunity, with the aim of helping more children to thrive as they grow. Specifically, we will fulfill varied needs by harnessing ourcustomer base, professional insight, and digital transformation (DX); support the diversifying choices of postgraduation pathways andchanges in the way teachers work; and provide accessible educational opportunities.

Supporting sustainable corporate growth and personal careerdevelopment through learning experiences
In a society where the qualities and abilities required of workers are changing and autonomous career development is called for, companies
will need to foster individuals who can take ownership of their own career/life as drivers of sustainable corporate growth. We will lead thereskilling market by leveraging our rapidly growing Udemy user network, and expand our human resource matching business (recruitment,
transfers, job searches, job changes) by providing reskilling and skill development services.

Respecting the unique individuality of the elderly while resolving
structural nursing care issues
In the face of the increasing number of senior citizens requiring nursing care, a shortage of nursing care staff, and delays in DX, we will develop
more nursing care workers who can serve as role models while also enhancing the quality of life (QOL) of the elderly, making nursing care amore attractive career choice. To this end, we will proactively develop professional care staff and widely share their expertise with society atlarge, and visualize the tacit knowledge of care experts through the use of technology, thereby contributing to easing staff shortages.

Nurturingorganizations andpeople as drivers oftransformation
We aim to strengthen the leadership of
our employees in driving transformation
as well as their specialized expertise in aneffort to become a company capable ofdeveloping diverse personnel who cantake the lead in resolving social issues
through business. We will enhance
employee engagement by visualizing the
key positions and specialized expertise
required for transformation andimplementing training accordingly,
promoting diversity, creating a comfortableworkplace environment, supporting careerdevelopment, and ensuring appropriate
placement, among others.

37 Benesse Report 2023

Preserving asustainableglobalenvironment
We make concerted efforts to preserve
the environment with the aim ofproviding a secure world for thechildren of the future to grow up in. To
this end, we have endorsed the Task
Force on Climate-related Financial
Disclosures (TCFD) and conductedscenario analysis/action/disclosure, set
greenhouse gas (GHG) emissions
targets, and acquired Science Based
Targets initiative (SBTi) certification. In
addition, we promote environmental
education by providing related materials
and services and recycling of tablets
and toys.

Cultivating a corporate
culture conducive toserving society andcustomers with integrity
Toward the achievement of our
purpose, our Group makes unified
efforts to promote honest and soundmanagement and maximize customer
value through our business. For this,we set codes of conduct for eachGroup company based on the Group’s
purpose and Principles, conductongoing compliance activities basedon a PDCA cycle, ensure increasingly
rigorous information security, andimplement human rights measures,among others.

Upholding “Benesse (Well-Being)” as its corporate philosophy,
the Benesse Group engages in a variety of commercial activities,
including in the fields of education and nursing care, in the
belief that its business is synonymous with resolving social
issues. In keeping with this belief, we formulated our
Sustainability Vision in 2019 and our five areas of Materiality (keyissues) in 2020 following discussion of the specific themes andbasic policies of the Group in relation to our efforts to help
resolve the ever-evolving array of issues facing society.

Jumping ahead three years, the social environment
surrounding the Group has changed more than ever, andunprecedented perspectives have emerged in tackling the social
issues that our businesses seek to address. When formulating theTransformation Business Plan as an updated version of our
medium-term management plan announced in 2020, weconcluded that our materiality also needed to be revised in linewith the current situation, and proceeded with discussions.

To become a corporate group devoted to solving social issues centered on people
Under the Transformation Business Plan, we considered thevarious social changes that will impact our sustainablegrowth and that of society and, by backcasting from thefuture society of 2028 and beyond, redefined one of ourGroup visions as “a corporate group devoted to solving social
issues centered on people.”
In our efforts to achieve this vision, we decided to revise ourmateriality by focusing on the following points: (1) Fulfilling theBenesse Group’s corporate philosophy, “Benesse (Well-Being),”and our Group purpose; (2) Social issues faced by people at eachstage of life, which we identified by backcasting from the futuresociety of 2028 and beyond; and (3) Promoting ESG as thefoundation underpinning (1) and (2). Subsequently, we closely
examined and discussed the significance of (2) and (3) at theManagement Council and the Sustainability Promotion
Committee, and then drafted our new materiality.
Based on the draft materiality formulated through suchinternal discussions, we held dialogues with experts,
members of NPOs, and other external stakeholders toascertain their expectations and demands for our Group froman outside perspective, and incorporated the outcomes into
our revision process.

Materiality that sustains the achievement of the Group’s purpose and business
The revised materiality is configured with the aim of achieving
the Group’s purpose by resolving key social issues through theGroup’s core businesses—supporting children’s learning
experience, supporting working adults’ career development,
and nursing care—with such endeavors underpinned by afoundation of material issues related to the “development oftransformational human resources” as well as the “preservationof the global environment” and “corporate culture of integrity,”
which are prerequisites of economic activities.
We provide products and services for the future to help
resolve social issues with the aim of further achieving
sustainable growth as a corporate group devoted to solvingsocial issues centered on people.
Meanwhile, the supporting materiality items concerning“human resources development,” “preservation of the global
environment,” and “corporate culture of integrity” are pivotal inthat they build and maintain a solid foundation for pushing
forward our efforts to achieve our purpose through business. If
we are to become “a corporate group devoted to solving social
issues centered on people,” our corporate activities should earn
the trust of society and maintain impetus. We regard thetheme-specific goals to be indispensable for the Group’s
sustainable growth.
The Benesse Group will promote the redesigned
materiality and pursue our vision under the Transformation
Business Plan and the Group’s purpose in an effort to achievesustainable growth.

Process of materiality revision

STEP 1
Redefine thecorporate group’s
visionSTEP 2Clarify pointsof emphasis

STEP 3

STEP 4

Hypothesize
materiality

Discuss atmanagement
level

STEP 5
Dialogue withstakeholders

STEP 6

STEP 7

Considertargets

Approval by
the Board of
Directors

Benesse Report 2023

38

CHAPTER

02 Materiality

Toward the Achievement of our Purpose
Issues centered on people Group capitalCommitment

Business fields

Concrete approaches

Initiative examples & visions

Related page

▶ Changes in parenting

environment

Supporting
diversified andmultilayered
learning
experiences toprovidemotivational
education services▶ Disparities in educational

opportunities▶ Decreased motivation to

study▶ Diversification oflearning objectives andpostgraduation pathways▶ Technology▶ Social capital(customer base,schools/municipalities,
community network)▶ Intellectual capital

Provide education
services that
accommodate diversityand disparity ofeducational
opportunity and help
more children to thriveas they grow.

▶ Expand product lineup to meet diverse needs by harnessing▶ Kids & Family Business▶ Out-of-School Learning

Business▶ School and Teacher

Support Business

our educational expertise and DX on the back of ourunrivalled customer base.

▶ Support the diversifying choices of postgraduation
pathways and changes in the way teachers work based on
existing platforms used by a large number of schools.
▶ Provide educational opportunities that are readily accessible▶ Establishment of a scheme/model for new value creationthat links student assessment data, daily learning data,
and the school administration system.

▶ Provision of accessible learning opportunities throughP 41

next generation Shinkenzemi in view of the FY2025 Next
GIGA Program.

by all children.

▶ Changes in the way

teachers work

▶ Human capital

Supporting
sustainablecorporate growthand personal
careerdevelopment
through learning
experiences

Respecting theuniqueindividuality ofthe elderly while
resolving
structural
nursing careissues▶ Changes in required

qualities and abilities▶ Autonomous careerdevelopment by
individuals(strengthen humanresources and increase
number of personnel)▶ Investment▶ Technology▶ Social capital(customer base,governmental/corporate
networks)

By helping individuals
take ownership of
their career/life,
companies can drive
their own sustainablecorporate growth.

Adult Business▶ New businessdevelopment, M&A▶ Lead the reskilling market by leveraging our rapidly

expanding Udemy network of individual, corporate, andmunicipal users.

▶ Expand our human resource matching business(recruitment, transfers, job searches, job changes) byproviding reskilling and skill development services toindividuals.

▶ A capital alliance with SkyHive, a world-leading labormarket database provider▶ Inclusion of Waris (provider of recruitment support

P 42

services for Japanese women) into the Group▶ Intellectual capital▶ Increase in number of

elderly people requiring
nursing care

▶ Shortage of nursing care

workers▶ Delays in nursing careDX

▶ Human capital(professional humanresources)▶ Technology▶ Intellectual capital(know-how)▶ Social capital(multifaceted connections
with nursing care personnel)

Develop more nursing
care workers who canserve as role models
while also enhancing the
QOL of the elderly,
thereby making nursing
care a more attractive job
choice.

Benesse’s policy

Foundation that underpins the above

Nurturingorganizations
and people asdrivers oftransformation

Preserving asustainableglobalenvironment

Cultivating a
corporate culture
conducive toserving society
and customers
with integrity

39 Benesse Report 2023

▶ University and Working▶ Nursing Care andChildcare Business▶ Nursing Care

Peripheral BusinessCommitment▶ Develop nursing care workers with highly specialized skills

based on a systematic in-house training system, and widely
share their expertise with society at large.

▶ Introduction of an internal qualification and related

training system to foster nursing care experts, dubbed
Majikami, who will help enhance the QOL of the elderly(Over 600 Majikami to be certified by FY2025)▶ Visualize tacit knowledge of experts through the use of▶ Provision of support to acquire certified care worker▶ Ease nursing staff shortages through business efforts.

▶ Expansion of Benesse sensing homes that employ AI

technology.

qualification

P 43

technology (All care homes by FY2024)

Concrete approaches/targets

Related page

▶ Visualize the key positions and specialized expertise required to drive transformation and digitalization, and implement

Encourage individuals to achieve autonomous
growth based on a learning culture and provide
relevant opportunities.

Develop diverse talent to lead the drive toresolve social issues through business.

As part of our efforts to fulfill our corporate
philosophy and purpose, position the environment
as one of our material management issues and takeproactive steps to promote related measures in linewith the Group’s business characteristics.

Preserve the global environment with theaim of providing a secure world for futurechildren to grow up in.

Build and operate a management structure that
supports the autonomous growth of operatingcompanies and further enhances our management
oversight function.

Make Group-wide efforts in line with our
corporate philosophy and purpose topromote integrity and soundmanagement to maximize customer
value through our business.

training accordingly, aiming to achieve a fill rate of digital human resources of more than 85% in FY2025.

▶ Promote diversity in terms of experience, age, gender, etc., having at least one female director/executive officer andachieving a minimum of 30% female managers by FY2025.

P 44▶ Promote career development support to enhance employee engagement. Engagement score target: A▶ Set medium- and long-term GHG reduction targets and acquire SBTi certification.
● Benesse Group: Scope 1 and 2 (1.5°C target): <2030: 42.4%> <2041: 100%>● Benesse Corporation: Scope 1 and 2 (1.5°C target): <2030: 52.8%*> <2041: 100%> <2050: 100%*>

Scope 3 (2°C target): <2030: 14.8%*> <2050: 39.4%*>

P 46* SBTi certification already acquired.

▶ Set codes of conduct at all Group companies based on the Benesse Group purpose and Principles (within one year in thecase of a new Group company).

▶ Execute ongoing compliance activities using a PDCA cycle at all operating companies.
▶ Further enhance information security by continuing to hold Security Day, providing regular security training, etc.

P 77

▶ Enhance human rights initiatives through human rights due diligence and awareness-raising activities.

Benesse Report 2023

40

CHAPTER

Supporting sustainable corporate growthand personal career development throughlearning experiences

Supporting diversified and multilayered
learning experiences to provide
motivational education services
Changes in the environment surrounding children and their lack of motivation to study
As birthrates decline and the numbers of working mothers anddouble-income households increase, the parenting environment
is changing dramatically. Household income disparities areaffecting the learning experience of children, leading to gaps ineducational opportunities.
At educational settings, needs are rising for special educationand support tailored to the distinctive features of diverse children
including those with developmental disabilities and attendanceissues. Meanwhile, the way teachers work also needs to change sothat their excessive work hours can be rectified. Disparities among
regions and municipalities are also observed in the progress ofdigitalization and ICT introduction at schools, which points toanother kind of gap in educational opportunity.
Post-learning pathways are also becoming diversified. One of
the major issues is the conspicuous decline in children’s motivation
to study. The percentage of children who lack a sense of purpose or
direction and “do not feel like studying” has increased from 45.9% in2019 to 60.2% in 2022, according to a survey* conducted under ajoint research project by the Institute of Social Science, theUniversity of Tokyo, and Benesse Educational Research andDevelopment Institute.

41

Reskilled workforce needed by society; career design required of individuals
The rapid evolution of digital technology and AI is bringing globalchanges to the way people work and the qualities and abilities
required of them. At the 2020 Annual Meeting of the World
Economic Forum in Davos, it was reported that one in two workers
will need to be reskilled, and the reskilling of one billion people wasadvocated* by 2030.
In Japan, given the shrinking workforce due to its aging
population and declining birthrate, companies are required toenhance productivity. Meanwhile, their need for talent equippedwith the skills and knowledge required for them to achievesustainable growth and globalize their businesses is increasing
rapidly. Against such backdrop, companies view human capital as
their most important asset for maintaining competitiveness andinstigating innovation, and employee reskilling has therefore
become an urgent agenda for the business community.
In an age in which lifespans of a century are expected, people
must cast off conventional notions of lifetime employment andinstead design a longer career plan while acquiring new skill setsthat will allow them to adapt to change.
* The Future of Jobs Report 2020, Davos conference* 2022 survey of parents and children: children’s lifestyles and studying

Leveraging the Benesse Group’s strengths to deliver education catered to diverse learners
As a way to address the above issues, the Benesse Group will beable to deliver personalized learning opportunities optimized toeach child’s needs, while also making these opportunities
widely accessible. For this, we will draw on our unrivalledcustomer base established through Shinkenzemi and otherservices, as well as the knowledge and technology acquired
through our education business.
In addition, we can contribute to transforming school
education for the next generation while reducing teachers’
workload and catering to students’ varying academic abilities. To do

02 Materiality

this, we will harness our extensive networks of municipalities andschools that use our learning support and school administration
software and platforms, and pursue customer success by
responding to diversified region-specific needs.
We aim to capitalize on such unique strengths of the Groupto deliver, on a broad scale, education that motivates diverse
children to learn and grow, thereby helping more children to
thrive in the future.

Supporting individuals who take ownership of their lives to drive sustainable corporate growth
Amid dramatic societal changes, the Benesse Group formed apartnership in 2015 with Udemy, an online video learning platform
service launched in the United States, and expanded the service
into the corporate market as its business operator in Japan. We havetherefore been building a track record in supporting corporate
DX/reskilling in addition to services for individual customers.
Drawing on our know-how and advantages acquired throughsuch existing businesses, we are strengthening strategic
investments in the ever-expanding learning market for working
adults. By leveraging our various resources within the Group,

including our unrivalled customer base, and by collaborating withexternal partners for co-creation, we will proactively roll out new
initiatives, thereby offering a one-stop multifaceted reskilling
support service.
Based on this plan, we will help more people cultivate
fulfillment through lifelong learning in Japan, firmly sustaining thegeneration of a positive value creation cycle through reskilling,whereby the growth capacity of companies is enhanced, withpositive effects rippling out to the broader society.

To resolve social issues centered on children, we uphold the following three major themes, with concrete
approaches and initiatives for each theme to be implemented through our Kids & Family Business, Out-of-School
Learning Business, and School and Teacher Support Business.

By upholding the following three themes, we will implement strategic initiatives based on educational businesses foruniversities and working adults and collaborations with co-creation partners. Our aim is to support the career developmentof individuals who acquire new skills in response to changes, and help companies achieve sustainable growth.

Bridging opportunity gaps ineducation and fostering learning
motivation through unrivallednumber of customer contacts

Products that meet diverse needsof children and families

Supporting students and working
adults to learn and develop theircareer

Providing education services that
underpin corporate humancapital management

Expanding our matching businessthat connects individuals withcompanies

Businesses and services insupport of changing school
education

We will develop widely accessible andlow-priced next-generation models for ourcore education services, which maintain an
unrivalled customer base. We will also
provide a wide range of information
includinghigh-quality
free-of-chargelearning contents via Kodomo Challenge TV
and others.

We will promote computer based testing
and further strengthen our digital services
such as Mirai Seed, Classi, and EDUCOMManager C4th, which are used at numerous
schools, to help change the way teachers
work and provide personalized support indaily study and student assessment.

We will expand MARUG land, an ICT learning
support service catered to different
development characteristics, and enrich ourpersonalized learning support service
optimized for individual attributes andchallenges. Our efforts will also focus on
increasingly popular private lessons andcreating spaces for children experiencing
attendance issues at school.

We will strive to promote the Udemy online
video learning platform service in Japan andprovide students and working adults withgreater support for their education and careerdevelopment. Multifaceted support will be
provided to individuals who are eager toshape their circumstances by gaining a varietyof new learning experiences and achieving
personal growth throughout their lives.

To strengthen human capital as the key forsustainable corporate growth, we will
provide education services including a newoffering that visualizes the skills of each
employee and provides them with optimallearning services, which will be madeavailable in collaboration with SkyHive, a
global AI-based reskilling support provider.

Amid a decline in the working-age
population, we are expanding our matchingbusiness to tap into the potential of thefemale workforce. In collaboration with Waris,
which joined our Group in June 2023, we will
provide companies and individuals withlearning services and employment/career
support services by assisting with recruitment,
transfers, job searches, and job changes.

Kodomo Challenge TV

Mirai Seed / Classi

MARUG land

Udemy

Alliance with SkyHive

Waris

Benesse Report 2023

Benesse Report 2023

42

CHAPTER

Respecting the unique individuality ofthe elderly while resolving structural
nursing care issues

02 Materiality

Nurturing organizations and people asdrivers of transformation

As the first nation to experience a super-aging society, Japan will face a nursing carestaff shortage of approx. 690,000 in 2040.
As Japan’s declining birthrate and transformation into a super-aging
society is occurring ahead of other nations, an overwhelming
shortage of nursing care staff is emerging as a serious problem. In
2040, when second-generation baby boomers reach the age of 65,
there will be a shortage of approximately 690,000* nursing care
workers vis-à-vis the number of older persons in need of long-term
nursing care.
Against this backdrop, nursing care services are chronicallyshort-staffed, causing excessive workloads, which in turn is leading
to greater job turnover. The vicious circle is making it difficult tosecure enough nursing care staff to meet the growing care needs.

There are high hopes that AI and other technologies canalleviate staff workloads while enhancing the quality of service. But
it will be a tremendous challenge to uniformly mechanize or
automate nursing care, considering the varied physical conditions
and needs of each elderly individual, which require advanced skills,
knowledge, and experience on the part of caregivers. The situation
is causing delays in DX across the entire nursing care industry, whichis exacerbating the staff shortage issue.
* Source: “Required number of nursing care workers based on the 8th Long-term
Care Insurance Business Plan” by the Ministry of Health, Labour and Welfare.

Executive Officer, CHRO, Executive General
Manager of Human Resources and General
Affairs

Embracing “well-being,” a hallmark of our people

Develop more nursing care workers who can serve as role models while alsoenhancing the QOL of the elderly, making nursing care a more attractive career
choice.
Upholding the business principle of showing “deep respect for the
person’s individuality,” our Group company Benesse Style Carepursues high-quality nursing care tailored to the needs of eachindividual. Building on its know-how accumulated through longyears of business operation, the nursing care service provider
develops highly specialized human resources. The company also
focuses on implementing DX in nursing care, visualizing the tacitknowledge of highly specialized care workers with the use oftechnology in an industry-first initiative.
Furthermore, we are looking to resolve not only our own issues,
but those shared by the entire nursing care industry. Openly

Empowering employees to empathize with our
corporate philosophy in order to strengthen
our human capital
Hisano Murakami

providing useful information on our website for care workers is justone of our measures. We also engage in temporary staffing andplacement services in support of healthcare and nursing careservices, forging multifaceted and extensive connections withnursing care workers. As the leading company in the nursing careindustry, we intend to draw on inputs from these workers, achieve agreater degree of fusion of people and technology, enhance the
QOL of elderly people, increase the number of role model nursing
care workers, and make nursing care a more attractive career choice
to help resolve the serious societal issue of staff shortages.

We strengthened our initiatives under the following three themes with the aim of pursuing the QOL of elderly
people, fostering highly specialized nursing care workers, and enhancing the quality of our nursing care services,
thereby contributing to resolving the serious societal issue of nursing care staff shortages.

Developing Majikami, or highly
skilled nursing care experts

Developing and proliferating an
AI solution that capitalizes on theexpertise of Majikami

Sharing expertise and developing
a new business to help resolve
staff shortages

Aiming to develop workers who willcontribute to enhancing the QOL of carehome residents, we are advancing our own
system for fostering Majikami, experts
certified as practicing high-quality nursing
care. We also help our staff to acquire thecertified care worker qualification, motivatethem to become highly skilled care experts,
and offer a desirable workplace where they
can thrive, seeking to thereby create avirtuous cycle.

We have developed an AI solution byverbalizing the tacit knowledge of Majikami,
and are aiming to introduce the solution to
all our nursing care facilities. The AI solution
provides newer staff with nursing care hints
and tips from Majikami, which leads to careservices of a higher quality.

We share our nursing care expertise on our
Nursing Care Antenna website for everyone
engaged in nursing care in Japan to accessfree of charge. In addition, in an effort toaddress nursing care staff shortages, we willdevelop a new business that fulfills thediverse needs of workers and employers.

The Benesse Group has put people at the center of its businessever since its foundation. We have likewise long valued ourworkforce of like-minded people who share our goals as aconfirmed asset. In achieving our Transformation Business Plan,
we must continue to put people first while also becoming ateam of goal achievers. Another wonderful quality that ourpeople share is their firm embrace of our corporate philosophy

The key to enhancing organizational capacity lies with each and every employee.
“Nurturing organizations and people as drivers oftransformation” was newly added to our materiality. If we are toachieve our Transformation Business Plan, we need a major
upswing in capacity. In addition to our education and nursing
care businesses, we therefore intend to establish businesses in
new fields. Skills and leadership required for transformation
cannot be developed overnight, however. First and foremost, we
crucially need to clarify the nature of our organizations and

43 Benesse Report 2023

reinforce the areas where we are lacking. And we already havethe means to acquire the missing capacity and skills. Given theGroup’s purpose of “Anybody can enjoy lifelong growth,” I am
certain that each and every employee will participate inreskilling to update their capabilities.

Concrete measures to achieve our visions
There are three particularly important measures that must be
taken to execute the Transformation Business Plan. One is thedevelopment of digital talent. The Group has already started
visualizing its DX personnel and is now striving to speed up
development to meet division-specific targets. The second
measure is diversity promotion, especially in regard to gender.
The percentage of female employees has traditionally been highat the Group, which is why we were quick to introduce maternity
leave and childcare leave programs, with the latter also offered
to male employees. A high proportion of our female employees

choose to return to work after taking such leave. Now thatmaternity and childcare leave has become the norm, we havetaken a further step to empower employees to pursue theircareer and family goals. We also need to further increase thepercentage of female managers, which is already higher than
the industry average, by strengthening the candidate pipeline.
The third measure is about enhancing engagement. Our
employees greatly empathize with the Benesse Group’s
philosophy, as evidenced by their extremely high engagementscores. This is a unique advantage that we hope to build on.

Achieving transformation by unleashing the power of employees whostrongly embrace the Group’s philosophy
The B-Stage internal proposal system is helping us enhance
employee engagement. A total of 3,427 new business andoperational reform proposals were submitted in fiscal 2022
under the system. Many of the proposals, which are based on
ideas and awareness of workers, have already been implemented
in our business. We firmly believe that the initiative is bringing
vibrant energy to the entire Group. As I mentioned, the Benesse

Majikami systemof “well-being” and their deeply ingrained eagerness to engage
with and support our customers’ well-being and growth acrossevery business that we operate. Our philosophy resonates with
our employees because we teach the story of how it wasdeveloped in our training programs.

Utilizing AI at nursing care homes

Group is centered on its people. Our employees have embraced
our corporate philosophy to an unimaginable degree, giving us
our most powerful advantage. Going forward, we will capitalizeon this strength and deliver to each employee a message thatinspires further change, while at the same time transforming ourmanagement structures and HR programs, thereby making
step-by-step progress toward our goals.

Nursing Care Antenna website
Benesse Report 2023

44

CHAPTER

02 Materiality

Nurturing organizations and people as drivers of transformation
In an effort to nurture organizations and people as drivers of the Benesse Group’s transformation, we define the skills required fortransformation and visualize our employees’ existing skills, thereby creating a culture of learning in which the autonomous careerdevelopment of individuals is respected.

Visualize the key positions and specialized expertise required for transformation

Planning
Business process reengineering (BPR)

Assessed by experts
in each job field

Project management office (PMO)
Development management
Engineer
Employee
database

Data

Job type

Breakdown of assigned
personnel levels
Lv3 Lv2 Lv1

Planning
BPR
PMO
Development
management
Engineer
Digitalmarketing
Data
Total

DX training programs (31 courses; 58 times)
Planning● Agile development

in-house case studies

Practical● Defining wireframe

requirements● Implementing design

sprints● Digital teachingmaterialdevelopment● Introduction to DX● UI/UX fundamentals

Introductory● Website

fundamentals● App development
fundamentals

Development
management/
engineering● Using

wireframe-defining
requirements● Agile development● Databases● In-house systems
fundamentals● Systems

development
fundamentals● Development process
fundamentals—
waterfall● Development process
fundamentals—
agile

DigitalmarketingData● Using semi-structured● Digital marketing● Effect verification● Practical accessquery language● Data analysis

in-house case studies
analysisapplication● Using Shinkenzemi’s

elementary, juniorhigh, and high schooldata● Introduction to● Introduction to● Product log design● Marketing strategy

Benesse’s data

● Introductory andpractical analyticaldesign● Data usage
fundamentals

45 Benesse Report 2023

In March 2021, the Group revised the Environmental Policy that
it formulated in 2011. The Group will not only work to promoteclimate control and environmental consciousness in products
and services, as well as in sales and other activities, but also
engage with society to encourage energy conservation andwaste reduction for climate control, recycling, the preservationof biodiversity, and the conservation of water resources,
including the efficient use of water.

support, social media
marketing● Technical fundamentals ....● Operating systems ● Networks ● Databases ● HTML/CSS ● Java ● Web servers● Digital lectures ..................● External case studies ● Culture sessions, etc.

Skill development points

100,000 yen granted to each employee for planningand executing a skill development initiative

Udemy

Available to all employees; also used as a platform
for self-learning and internally developed courses(learning platform service)

Promotion systems
The Sustainability Promotion Committee, with the managing
executive officer for sustainability as its chair and members that
include full-time directors including the representative director
and president and the heads of business divisions, meetsregularly to make decisions about policies and initiatives
concerning sustainability issues, including environmental ones,
and to monitor the status of activities. The Committee’s
activities are reported to the Board of Directors.

formulation,
workshopEnhancing engagement by respecting the autonomous career development of individuals

Personnel
systemsustaining
autonomous
careerdevelopment of
individuals

Reduction rate for greenhouse gas emissions● Multi-device● DX literacy—An explanation of key terms (video)

Employees who have acquired new skills and knowledge bytaking reskilling leave and participating in training programs
are provided with various opportunities for self-fulfillment,such as the opportunity to spontaneously submit an internaltransfer request, whether solicited or not, to pursue a different
role, the opportunity to participate in a milestone career
training program and one-on-one interview, and theopportunity to seek career advice, if they so wish. Such systems
are based on our policy of respecting each employee’s
autonomous career development. The policy, as well as our
employees’ distinctive embrace of the Benesse Group’s
philosophy, has led to high levels of employee engagement,
generating a virtuous cycle that pushes transformation
forward with greater energy.

Environmental policy

marketing● Digital fundamentals.........● In-house DX case studies ● Disruptor analysis, etc.

Basic digitaltraining

Seeking the sustainable growth of society and the Benesse Group, we formulate medium- to long-term environmental targets andactively strive to reduce our environmental footprint while improving external assessments of our activities.

Up from previous year Down from previous year

Expanding training programs to support reskilling

Specialized knowledge
and skills training

We focus on reskilling our existing employees to foster thedevelopment of a workforce able to drive transformation. In
addition to on-the-job-training, we help employees develop
their capabilities by, for example, offering training programs
that include abundant internal case studies. The training
programs provide access to Udemy Business, a digital video
platform with over 210,000 business-related courses. In fiscal
2022, a total of 6,504 employees* participated in the programs,
up 80% from the previous fiscal year. We also started granting a
reskilling leave of three days a year from fiscal 2022 to provide
employees with an opportunity to reflect on their career anddeepen their learning. The leave system was used by 522
employees* in the first year of introduction. By promoting thesystematic use of the leave, we aim to foster a corporate culture
where reskilling is the norm.
(* Benesse Corporation)

The fill rate for DX jobs in 2022 was
86% (up 15% from previous year)

Define the essential skills required foreach job, ascertain the skills of each
employee, and manage the data byusing the talent management system.

Digital marketing

Human resources development andcareer support

Gap analysis of number of required
personnel and assigned personnel

Define jobs and identify individuals

Number ofassigned
personnel
Requirednumber of
personnel

At the Benesse Group, we identify the hiring and development
of digital talent as a key organizational capacity required forrealizing the medium-term management plan. As we see arising need to utilize IT and digital technology across ourbusinesses, we are striving to secure the necessary DX humanresources by defining the essential skills for each DX job,
keeping track of the skills already existing in our workforce, andcalculating the number of DX personnel required based on ourbusiness needs, thereby visualizing the fill rates. To fill vacant
positions, we are working to reskill our existing employees.

Preserving a sustainable global
environment

DX skills development
project

For internal development of programs for learninginternally required DX skills

Reskilling leave

Three-day paid leave for learning

Career advice

Milestone career training and one-on-one interview;advice provided upon request

Internal recruiting
Transfer request

Opportunities provided to spontaneously take on a
new job

Climate control measures
Benesse Corporation had previously set medium- to long-term
reduction targets for GHG emissions, but we have further
revised our Scope 1 and 2 targets upward from the well-below
2°C level to reduction targets in accordance with the 1.5°Clevel. In order to meet these targets, we moved forward withmeasures such as reducing paper consumption by promoting
the digitization of products and services, reducing office spaceby adopting a hybrid working style of office attendance/
working at home, and implementing a medium- to long-term
repair plan for our own buildings.
Medium- to long-term reduction targets for greenhouse gas
emissions(Years ending March 31)
Reduction from baseyear 2018

Every
year*

2030*

Scope 1 and 2

4.4%

52.8% 100%

Scope 3

1.23% 14.8%* Reduction targets have been certified by SBTi.

2041

2050*

100%
39.4%

Reduction frombase year 2018

2019

2020

(Years ended March 31)

2021

2022

2023

Scope 1 and 2(1.5°C targets)

12.0% 20.8% 30.5% 39.8% 59.3%

Scope 3(2°C targets)-2.7% -3.9% 5.4% 13.8% 26.8%

Note: The figures for 2023 are subject to change as third-party verification is in progress.

Reduction targets for the entire Benesse Group(Years ending March 31)

Base year: 2022

2030

2041

Scope 1 and 2

42.4%

100%

*Scope 3 targets under preparation

Evaluation by the Carbon Disclosure
Project (CDP)
In the CDP’s 2022 climate change survey, we were chosen as acompany with a leadership level of A-, a grade given tocompanies that conduct excellent activities in areas such as
reducing greenhouse gas emissions and implementing
measures to mitigate and adapt to climate change. In addition,in the CDP’s Supplier Engagement Valuation, we werechosen as a CDP 2022 Supplier
Engagement Leader—the highest
evaluation—for the fourthstraight year. Our previous CDP
climate change evaluations are
as follows.
CDP climate change evaluations(Years ended March 31)

2018

2019

2020

2021

2022

A

A

A

A-

A-

Biodiversity measures
To proceed with initiatives to promote biodiversity, Benesse
has set forth a procurement policy, based on which we procurematerials, design products, discuss transportation methods,
and conduct recycling/reuse activities.
Endorsement of the Keidanren Initiative
for Biodiversity
We have endorsed the Keidanren Initiative for
Biodiversity as part of our measures for biodiversity.

Benesse Report 2023

46

CHAPTER

02 Materiality

Non-Financial Information

Preserving a sustainable global environment
Conducted a scenario analysis in accordance with TCFD recommendations
In 2019, the Benesse Group expressed its agreement with the recommendations of the Task Force on Climate-related Financial
Disclosures (TCFD), the first education business operator in Japan to do so. With regard to the education business in Japan, we are
analyzing scenarios in accordance with TCFD recommendations, and conducting deeper analyses of the risks and opportunities to ourbusiness due to climate change.
The levels of impact and probability of occurrence are defined as follows.
Level of Impact—Large: 100 million JPY or more; Medium: 10 million JPY or more to less than 100 million JPY; Small: less than 10 million JPY
Probability of Occurrence [Transition Risks] 3: Already present/most likely; 2: Partially present/likely; 1: Latent/less likely
Probability of Occurrence [Physical Risks] 3: Once every few years; 2: Once in 10 years; 1: Once in 100 years
The following have been identified to have a large impact and a level 2 or 3 probability of occurrence.

Business-Related
Shinkenzemi and Kodomo Challenge
enrollments in April (Japan)

Kodomo Challenge enrollments in April(Overseas)

Nursing homes & elderly homes by
brand■Senior high school courses ■Junior high school courses■Elementary school courses■Kodomo Challenge (preschool courses)(thousands of students)■China■Aria ■Clara ■Granny & Granda■Madoka ■Bon Sejour ■Cocochi

3,000

1,500

2,620

2,710

2,720

■Taiwan

400

1,270

2,490
2,210

■Li-Re(thousands of students)

1,180

1,210

1,200

1,050

330

339

343

352

322

18

19

20

21

22 (end of

300

880

2,000

900
200

Analytical estimation of risks and opportunities

600
1,000

Analysis of the risks and opportunities that affect the Group is conducted on two key points: Probability of occurrence and level of impact.

Transitional Risks

Physical Risks

Opportunities▪Switch to alternative materials (recycled plastics, etc.)▪Increase in shipping costs (by truck)▪Increase in energy costs▪Risk to the Group’s reputation if we cannot meet consumers’ expectations with regard to environmental awareness▪Procurement failures from suppliers▪Changes in shipping methods due to suspension of the logistics network▪Major damage at logistics hubs
▪Restructuring of the logistics network due to environmental changes and the spread of infectious diseases▪Changes in the environmental awareness of consumers▪Competitive advantages through innovations in environmental technology▪Initiatives towards global environmental preservation▪Highly resilient logistics base

100

300

0

19

20

21

0

22
23 (year)[ as of April each year ]

19

20

21

0

22
23 (year)[ as of April each year ]Human Resources
Employees on consolidated basis

Employees who took childcare leave /Returned from leave

Ratio of female employees/managers
Employees

Managers (including officers)■ Employees who took childcare leave (left)
Percentage of employees who returned from childcare leave (right)(%)
80

25,00020,426 20,673

19,45620,00062.4
16,515 16,637

97.4

400

61.8

61.5

61.7

95.7
323

61.8

60

271

300

Research into alternative materials that take CO2 emissions reductions into account, resource circulation
initiatives (recycling), reductions in shipping fees through the adoption of digital educational materials,
reductions in GHG emissions due to office activities such as energy saving and other initiatives, establishment oftargets and promotion of initiatives for the introduction of renewable energy, consideration of a bring your own
device (BYOD) policy for tablets, etc.
Reduction in risks through the decentralization of production bases, securement of alternate means of transport,
strengthening of flood control measures at logistics hubs, etc.

The promotion of new environmental education, and reflecting innovations in environmental technology, etc.,
in products, services, and marketing activities based on changes in consumer behavior

0

304
90

18

19

20

21

22 (end of0

19

fiscal
year)

20

21

Human Resources

Environment

Male employees who took childcare leave(%)■Scope 2

10,000(thousands of t-CO2)
250

Benesse Report 2023

(t)
60,00055,903 55,102

209

54.7

8,000

56.5

55.4

190

200

6,595

161

5,929
5,204

20

21

22

(fiscalyear)

Note: Figures are for Benesse Corporation and Benesse Style Care
combined.

019(fiscal
year)

88

20

76

21

75

22

51,82345,82545,00038,253

100

50

2,000

19

22

30,000

3,016

88
0

21

150

4,502

50.0

40

20

Paper consumption

4,000

Benesse STEAM Festa

19

Scope 3

229

226

18

Note: Figures are for Benesse Corporation and Benesse Style Care
combined.

Amount of GHG emissions(t-CO2)70

50

Business initiatives Support for environmental education

47

80

70

0

22
23 (year)[ as of April each year ]Note: Figures are for Benesse Corporation and Benesse Style Care
combined.

6,000

Visit the following website for information on our response to climate change.
https://benesse-hd.disclosure.site/en/themes/148#1002

82.2

200

Note: Berlitz Corporation was sold during fiscal 2021.

60

Benesse has long supported environmental education. Benesse STEAM Festival is an
exploratory learning event where junior high and high school students gather from acrossJapan to discuss various subjects including the SDGs, a topic that has proven particularly
popular. Some students conduct investigations and experimental studies while others
develop apps. In fiscal 2022, the event was held on March 18 and 25, 2023, attracting a large
number of students eager to tackle environmental issues.

33.9

33.3

100

100

■Scope 1

Opportunities

33.7

20

5,000

Physical Risks

34.6

(%)

387

10,000

The Group will promote the following strategies and initiatives in the future based on the results of our climate change-induced risk-opportunity analysis.

Transitional Risks

34.8

40

377

90.7

15,000Future strategies and initiatives

fiscalyear)

Note: Information is shown by country and region.

15,00073

23(year)[ FY ended in March of each year ]Notes: 1. GHG emissions are those of Benesse Corporation.
2. The figures for 2023 are subject to change as third-party
verification is in progress.

0

19

20

21
22
23 (year)[ FY ended in March of each year ]Note: Paper consumption excludes printing paper for use in offices.

Visit the following website for the latest ESG-related information.
https://benesse-hd.disclosure.site/en/themes/168

Benesse Report 2023

48