Rakuten and Sustainability
LEADING
towards sustainability
Rakuten was established with the mission of empowering people and society
by creating value through innovation and entrepreneurship. Ever
since the inception, our efforts to
revitalize Japanese society as a whole has been unwavering.
Over the decades, we have successfully
grown into a global company, and we continue to play
an important role in establishing a more resilient future for all stakeholders.
As
we address climate change issues, provide an inclusive work environment,
and set up responsible governance system, we invite you to take a
look at how Rakuten creates a long-term
value and carries out responsible operation.
Management System
To strengthen the Group's framework for incorporating social and environmental perspectives into our businesses and supervising the implementation of related
initiatives, the Rakuten Group Sustainability Committee was established in 2021. The chairperson is the Group COO (Chief Operating Officer), currently.
This committee serves as a platform for sharing information on stakeholder expectations and industry best practices related to ESG (Environmental, Social, and Governance), while also functioning as a forum for decision-making regarding Rakuten’s sustainability strategy and goal setting.
In addition, for issues that require long-term discussion — namely the environment, human rights, and DEIB (Diversity, Equity, Inclusion, and Belonging) — we have established dedicated subcommittees. Each subcommittee conducts more detailed deliberations, including assessing current challenges, formulating and proposing measures, and implementing initiatives. Matters related to sustainability, including the discussions of the Group Sustainability Committee and the activities of the subcommittees, are quarterly reported to the Board of Directors.
Rakuten's Sustainability Strategy
Sustainability encompasses a wide range of topics. As a company with more than 70 services, identifying which ESG aspects are particularly important to the
Rakuten Group can be challenging, but this is crucial to our combined efforts to have an impact.
The identification of the ESG topics material to our
Group is a process formalized internally and conducted regularly, every 4 to 5 years, in order to reflect the latest changes in our business developments, macroeconomic affairs and
stakeholders' expectations. It is based on the principle of double materiality, meaning that topics were identified in view not only of our impact on our businesses but also of our impact on society.
The risks and opportunities highlighted through this process are at the center of the long-term vision and goals developed by the Group Sustainability Committee.
Additionally, our materiality analysis will guide the elements of our future ESG disclosures, ensuring alignment with emerging regulations such as Japan’s SSBJ and Europe’s CSRD.
Both the list of material issues and the establishment of related long-term goals are signed off by the Board of Directors.
The Sustainability Promotion Department, leading both the materiality analysis process and the management of sustainability risks as part of our Enterprise Risk Management (ERM), ensures that both are integrated.
Materiality Identification Steps
Our materiality was last updated in 2024, at the occasion of the setting of goals as part of our Group sustainability strategy, in line with our medium- to long-term business management plan, “Vision 2030”. Rakuten’s sustainability strategy consists of 10 ESG topics organized in 3 focus areas: “Growing with our employees,” “Providing sustainable platforms and services,” and “Addressing global challenges.”
Our Strategy
See the progress in 2024 for each Business foundations.
Focus Area and Goals
These are issues we anticipate to be key drivers in the years ahead. They are central to cross-organizational discussions aimed at clarifying the Group's vision and its role in driving positive social transformation. We have also set our vision and specific goals for these issues and are working to achieve them.
Diversity, Equity & Inclusion
Diversity is one of Rakuten's core strategies and the driving force for innovation. We extend equal opportunities to everyone and maintain a fair and inclusive working environment. Employees can demonstrate their individuality and play an active role in their daily work. We respect each person's background, values, and identity.
Talent Acquisition, Development & Retention
It is crucial for Rakuten to find talented people to ensure the successful execution of the business strategy and sustainable empowerment of society. In addition to hiring candidates with diverse backgrounds, skills, and expertise, we strive to develop an environment that will lead to personal and social growth and create a workplace where individual potential can be nurtured further.
Responsible Labor Practices
We recognize that responsible labor practices translate into reduced costs of compliance, lower turnover, and financial stability. While we seek ways to boost the competitiveness and productivity of our employees, we recognize their individual needs, background, and situations in life. We want to be an ethical employer proactively addressing human rights protection and organizational governance concerns.
Workplace Safety & Employee Wellness
Employees are an essential part of business execution and achievement of the corporate mission. We secure the safety of our employees and create a workplace where everyone can feel safe, healthy, and happy.
| ESG Challenges | Vision | Indicators & Goals | |||
|---|---|---|---|---|---|
| Result 2024 |
Target 2025 |
Target 2030 |
|||
| Diversity, Equity & Inclusion | Encourage diverse individuals, the foundation of our competitive advantage, to maximize their potential | Percentage of female managers* | 33% | 33% | 36% |
| Talent Attraction, Development & Retention | Promote individual development by offering various growth opportunities across our diverse businesses | Engagement score | 83pt | 84pt | 87pt |
| Responsible Labor Practices | Build solid organizational foundations through honest dialog about career, work environment, etc. | Communication satisfaction score | 94pt | 97pt | 98pt |
| Workplace Safety & Employee Wellness | Provide work environments that support the well-being of employees, for them to deliver high performance | Well-being score | 52pt | 53pt | 58pt |
*The target is Rakuten Group, Inc.
Responsible Advertising, Marketing & Labelling
Our brand is an important asset, present in all our service names. For "Rakuten" to be synonymous with trust, we engage in honest and ethical communication, providing accurate and relevant information on our services and products so our customers can make informed purchase decisions.
Internet Governance & Freedom of Speech
Rakuten offers various online content, applications, and platforms to users globally. We ensure that they are treated equally without discrimination or censorship, confirming there's no disinformation. We respect the rights of stakeholders so they can express their thoughts and opinions.
Sustainable Production & Consumption
Changing companies' behavior is fundamental to realizing a sustainable society. One of Rakuten's strongest advantages as a platformer is to engage with and influence a larger community, both on the providers of services and products and consumer sides. By promoting sustainable business practices with our partners, we will contribute to achieving more sustainable lifestyles for all.
| ESG Challenges | Vision | Indicators & Goals | |||
|---|---|---|---|---|---|
| Result 2024 |
Targets 2025 |
Targets 2030 |
|||
| Sustainable Production & Consumption | Develop robust relationships with suppliers to ensure the realization of supply chains free from negative impacts on the environment and human rights | Percentage of suppliers participating in briefings and study sessions | 53% | 80% | 90% |
| Percentage of suppliers answering our self-assessment questionnaire | 59% | 80% | 100% | ||
| Ratio of high-risk*1 suppliers | 10% | year-on-year decrease | |||
| Inspire partners to pro-actively participate in sustainability efforts (tentative) | Number of sustainable partners (tentative) | ー | ー | ー | |
| Responsible Advertising, Marketing & Labelling | Improve the accessibility of our digital touchpoints | Percentage of digital touchpoints meeting the requirements of “WCAG AA” | WIP for tracking system |
70 *2 | 100% |
| Percentage of employees taking and understanding the e-learning on accessibility | 96% | 100% | 100% | ||
| Provide fair and trustworthy content for our products and services | Establishment of internal guidelines on fair and trustworthy content, in line with related external standards : 2024 | Achieved | |||
| Percentage of employees taking and understanding the e-learning on fair and trustworthy content | 97% | 70% |
100% | ||
| Internet Governance & Freedom of Speech | Accelerate the social transformation driven by AI through the establishment of responsible AI services and robust governance framework |
Establishment of an AI Code of Ethics: Achieved in 2024 | |||
| Establishment of a responsible AI-Governance: from 2025 | |||||
*1 Suppliers considered as potentially having a significant impact on our supply chain, based on self-assessment survey results, transaction status, and other factors.
*2 Aim to achieve 100% of high-priority touchpoints in 2025
Climate Change & Energy
As a company offering various services online, we consume a large amount of electricity. Depending on how the energy is produced, it can result in the emission of greenhouse gases responsible for climate change. As one of the most pressing issues facing society today, we are committed to leading the fight against climate change and contributing to creating a carbon-neutral society.
Risk & Crisis Management
With over 70 businesses traversing the world, it is extremely important that we are always prepared for any unforeseen disaster and new challenges facing the world. Having robust risk management in place is essential for us to be ready for any unprecedented global challenge.
Innovation & Entrepreneurship
The spirit of entrepreneurship is what makes us Rakuten. It is deeply rooted in our corporate culture. Entrepreneurship drives us to challenge the status quo in pursuing innovation that positively impacts society.
| ESG Challenges | Vision | Indicators & Goals | |||
|---|---|---|---|---|---|
| Result 2024 |
Targets 2025 |
Targets 2030 |
|||
| Climate Change & Energy | Realize a future where our stakeholders are aware of environmental challenges and opt for green choices naturally | Scope 1, Scope 2 emissions | ー | ・Reduce absolute scope 1 and 2 emissions by 99.7% by FY2032 from FY2022 base year* | |
| Scope 3 emissions | ー | ・Reduce absolute scope 3 emissions by 30.0% by FY2032 from FY2022 base year*
・Reduce scope 3 emissions from all sold electricity by 76.8% per MWh by FY2032 from FY2022 base year* |
|||
| Renewable electricity adoption rate Target: Rakuten Group, Inc. |
100% | 100% | 100% | ||
| Risk & Crisis Management | Establish systems that prevent risks and their recurrence by identifying environmental changes and incidents in timely manner, and promptly respond to emergency situations, thereby contributing to the achievement of business goals | Percentage of organizations with a person in charge of incident management | 100% (globally) |
100% (globally) |
ー |
| Percentage of organizations with an incident management system in place | 100% (in Japan) |
100% (in Japan) |
100% (globally) |
||
| Percentage of employees taking the e-learning on incident management | 100% (in Japan) |
100% (in Japan) |
100% (globally) |
||
| Innovation & Entrepreneurship | Contribute to solving social challenges and to creating value for stakeholders through our investments, our incubation and development projects, and our M&A and alliances | Introduction of sustainability criteria in the decision making related to investments and M&A | 2024: Achieved phased implementation and adoption across the Group's inv estment projects From 2025: - |
||
| Review of sustainability criteria for investments and M&A | Annually | ||||
*These targets have been certified as Science Based Targets (SBT) by the Science Based Targets initiative (SBTi), which is an international climate change initiative.
Business Foundations
These are the fundamental issues for all our activities as a provider of internet services.
As they are highly important, management systems are
already in place to address them appropriately.
Information Security & Privacy
Measures against cyberattacks and protection of personal data are of utmost priority to us as a company providing most of its services online. Through our Ecosystem, our customers can enjoy a wide range of services using just one account. This Ecosystem must lie on the most robust information security infrastructure, with strict privacy protection mechanisms.
Engaging Employees in Sustainability
Employees play an essential role in our ability to operate sustainably and design sustainable services and products. Continuous engagement encourages employees'
more in-depth understanding of their responsibility, guides their actions in their daily work, and fuels their capacity to innovate for sustainable service
development.
Asakai, Rakuten's corporate-wide weekly meeting, is an opportunity where everyone shares regular updates on sustainability initiatives.
Annual training is mandated for all executives and employees to enhance their awareness of sustainability challenges. It covers our sustainability-related
policies, goals and initiatives including human rights and the environment, in our direct operations and procurement activities.
An employee-led
network, the Social Empowerment Community, offers further chances to examine and discuss sustainability through regular events, newsletters, and other
communication tools. The Community holds seminars on a variety of topics, including the basics of the Sustainable Development Goals (SDGs) and the issue of
marine plastics, etc.
Finally, the Sustainability Action Awards, which were launched in 2022 to celebrate Rakuten's 25th anniversary,
highlight notable sustainability initiatives by employees. In 2024, nearly 300 employees submitted their projects. The Grand Prize was awarded to the project "Rakuten MUZIN DELIVERY,", developed by the Incubation Business Department. The project utilizes an AI-powered electric autonomous delivery robot to reduce environmental impact and address logistics challenges.
