In recent years, companies find themselves required to monitor the ESG risks and impact on sustainability, including consideration of human rights and mitigation of environmental impacts, of not only their own group companies but also throughout the entire value chain, from raw materials and supplies procurement to disposal and recycling.
Also, we are seeking to expand the B2B2X model and global cloud services under the medium-term management strategy "Towards the Next Stage 2.0" that we established in 2015. We expect our value chain to expand further globally, requiring us to enhance our value chain management initiatives.
The NTT Group's value chain management focuses on requiring suppliers to adhere to the various guidelines under the "Procurement Policies" established by NTT. For this reason, it is important for us to build partnerships of trust with all of our suppliers. In December 2013, we formulated the NTT Guidelines for CSR in Supply Chain to further promote CSR procurement and we carry out risk assessments of suppliers following these guidelines. Additionally, we have formulated the "NTT Guidelines for Green Procurement" and the "NTT Group Energy Efficiency Guidelines" as specific guidelines on the environment and we require all suppliers to comply with the provisions therein.