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NTT Group’s Material Issues

NTT Group’s Material Issues

STEP1 Identify CSR Issues

STEP2 Assign Priorities

STEP3 Confirm Validity

In revising our CSR Charter and reviewing the CSR Priority Activities,
we took the following steps based on the principles and processes of
the GRI G4 Sustainability Reporting Guidelines.

We identified 41 CSR Issues based on due consideration of GRI and other guidelines, external assessment of ESG aspects and new social requirements such as the SDGs.

We assigned priorities to the CSR Issues identified in Step 1 based on the two axes of “relevance to stakeholders” and “relevance to NTT Group” to identify the 18 NTT Group CSR Priority Activities representing the materiality that drives our CSR efforts.

The validity of the CSR Priority Activities was confirmed by the Group CSR Committee and CSR Committees.

In revising our CSR Charter and reviewing the CSR Priority Activities, we took the following steps based on the principles and processes of the GRI G4 Sustainability Reporting Guidelines.

STEP1 Identify CSR Issues

We identified 41 CSR Issues based on extensive consideration of various guidelines, including the GRI G4 and ISO 26000 (social responsibility) guidelines, external ESG assessments, such as the Dow Jones Sustainability Index (DJSI), as well as new issues related to sustainability, such as the SDGs.

41 CSR Issues

STEP2 Assign Priorities

The 41 CSR Issues identified in Step 1 were categorized under the four CSR Goals of the NTT Group CSR Charter and their underlying foundations. The four CSR Goals were evaluated along the two axes of “relevance to stakeholders” and “relevance to NTT Group,” and the results were mapped on the matrix to identify the NTT Group CSR Priority Activities.

In assessing priorities, we sought to reflect the expectations of a broad range of stakeholders by also taking into account the results of the NTT Group employee satisfaction survey and feedback from customers.

Activities categorized as the underlying foundations of the four CSR Goals have been positioned as activities requiring steadfast effort.

Enrich Social Communication
Protect the Global Environment
Ensure Reliable Communications
Unite the Energies of Team NTT

Underlying Foundation of the Four Communication Activities

  • Reinforce corporate governance
  • Brand management
  • Ensure diversity of directors
  • Manage intellectual property
  • Appropriateness and transparency of directors’ compensation
  • Determine materiality and manage PDCA cycle
  • Establish sustainability governance
  • Enhance reliability and disclosure of ESG data
  • Efforts to encourage long-term ownership of shares
  • Control negative incidents and disclose information
  • Risk Management
  • Engage with stakeholders
  • Formulate and comply with compliance guidelines
  • Participate in various initiatives

STEP3 Confirm Validity — Validation and Determination of New CSR Priority Activities

The identified CSR Priority Activities were examined by the Group CSR Committee attended by the CSR Committee Chairpersons of eight major NTT Group companies and the CSR Committee chaired by the representative director and senior executive vice president and comprised of heads of each department and office. The committees confirmed the validity of the CSR Priority Activities based on how well they reflected the expectations of stakeholders and whether they covered all the issues that are of importance to NTT Group. Consequently, the following 18 items were determined as new CSR Priority Activities.

Enrich Social Communication

CSR Priority Activities

  • Contribute to society through ICT
  • Improve access to ICT
  • Pursue customer satisfaction
  • Generate innovation
Protect the Global Environment

CSR Priority Activities

  • Use ICT to contribute to the environment
  • Reinforce value chain management(environmental)
  • Address climate change
  • Reduce environmental impact of business operations
  • Effectively use resources
Ensure Reliable Communications

CSR Priority Activities

  • Protect personal information
  • Reinforce information security
  • Ensure stability and reliability of communications services
Unite the Energies of Team NTT

CSR Priority Activities

  • Promote diversity
  • Respect human rights
  • Reinforce value chain management (social)
  • Promote safety, health and welfare
  • Create attractive workplaces
  • Promote a united Group effort on social contribution activities

Goals and Achievements of CSR Priority Activities

NTT Group has established CSR Quantitative Indicators (KPI) based on the NTT Group CSR Priority Activities identified as material issues in order to promote CSR in a uniform manner across the entire Group.
While evaluating efforts using the PDCA cycle based on these KPI, we also make changes to the indicators pursuant to changes taking place in society or within the Group. In fiscal 2018, “Employment rate of people with disabilities” and “Implementation rate of specified health guidance” were added as KPI.

Enrich Social Communication

CSR Priority Activities Medium-term Targets CSR Quantitative Indicators(KPIs) FY2016 Results FY2017 Results
Contribute to society through ICT Accelerate the B2B2X Business Model by taking opportunities to use “2020”and “Regional Vitalization” Acceleration of the B2B2X Business Model - -
Improve access to ICT

Enhance the system to provide diverse ICT services centered around the “Global Cloud Service” for the entire world

Provide ICT services available for a broad range of customers, including the elderly and persons with disabilities

Sales of global services: 22.0 billion dollars (by FY2018) 15.6 billion US dollars 16.9 billion US dollars
Global footprint: Expand 196 countries and regions 196 countries and regions
Percentage of the access network converted to fiber optics: NTT East: 95%, NTT West: 93% NTT East: 95%
NTT West: 93%
NTT East: 95%
NTT West: 93%
Percentage of the population covered by LTE: Expand 99% 99%
Number of UD-capable products and services provided: Expand 12 11
Pursue customer satisfaction Provide high value-added products and services and fine-tuned support Customer satisfaction survey: Better than in the previous fiscal year First First
Number of improvements made based on suggestions from customers: More than in the previous fiscal year 558 improvements 446 improvements
Response rate and number of response hours at our call centers: Better than in the previous fiscal year Response rate: approx. 73.3% Response rate: approx. 80.9%
Improve facility utilization efficiency: Reduce cost by at least 200 billion yen (by FY2018) Approx. 100 billion yen reduction Approx. 136.4 billion yen reduction
Establish highly efficient business operations: Reduce cost by at least 800 billion yen (by FY2018) Approx. 414 billion yen reduction Approx. 654 billion yen reduction
Generate innovation

In order to maintain our research and development as an important growth driver of NTT Group for the future, promote advanced R&D that will lead the world’s information communications technologies

Number of patent applications Approx. 2,250 Approx. 2,330
Number of academic papers published outside the company Approx. 600 Approx. 460
Person-days of participation in international standardization meetings Total of 2,780 person-days Total of 2,920 person-days

Protect the Global Environment

CSR Priority Activities Medium-term Targets CSR Quantitative Indicators(KPIs) FY2016 Results FY2017 Results

Use ICT to contribute to the environment

Reinforce value chain management

Address climate change

Reduce the environmental impact of business operations

Effectively use resources

While reducing CO2 emissions of the Company, contribute to the reduction of CO2 emissions of all society, including value chains, through the utilization of ICT Amount of contribution to the reduction of CO2 emissions of all society: At least 10 times of the Company’s emissions (by FY2030) Data compiled from FY2017

8.9 times

Improve power efficiency to reduce the environmental impact of business operations Power efficiency of the communications services: At least 10 times higher than in FY2013 (by FY2030) 2.7 times
Control the final disposal ratio of waste and work toward the effective use of resources Final disposal ratio of waste: Zero emissions (under 1%)(by FY2030) 1.03%

Ensure Reliable Communication

CSR Priority Activities Medium-term Targets CSR Quantitative Indicators(KPIs) FY2016 Results FY2017 Results
Reinforce information security Train security experts Number of security experts: 10,000 (by FY2020) 20,000 31,000
Protect personal information Prevent leaks of personal information Number of incidents of personal information leaks: 0 9

4

Ensure stability and reliability of communications services Provide stable communications services free of major communications problems Stable service provision rate: 99.99% 100% 99.99%
Number of major accidents: 0 0 2

Unite the Energies of Team NTT

CSR Priority Activities Medium-term Targets CSR Quantitative Indicators(KPIs) FY2016 Results FY2017 Results
Promote diversity Aggressively promote the active participation of women Ratio of female managers: 6.0% (by FY2020) 4.0%

4.6%

Expand employment of people with disabilities Employment rate of people with disabilities*:
2.0% (50 or more employees) (newly established in fiscal 2018)
NTT: 2.30% NTT: 2.43%
Major NTT
Group
Companies in
Japan: 2.21%
Major NTT
Group
Companies in
Japan: 2.32%
All Group
companies in
Japan: 2.06%
All Group
companies in
Japan: 2.16%
Respect human rights Conduct business activities with respect for human rights at all business locations by
introducing the United Nations Guiding Principles on Business and Human Rights (Ruggie
Framework) and other international principles
Number of confirmed human rights violations: 0 15 17
Percentage of participation in training concerning human rights: More than in the previous fiscal year 92.0% 92.9%
Reinforce value chain management Appropriate management of environmental and social risks, including value chains Number of confirmed high-risk suppliers: 0 0 0
Promote safety, health and welfare Enhance safety measures and the safety mindset of
employees in order to prevent accidents causing injury or death and industrial accidents
Number of accidents causing injury or death during construction work: 0 10 18
Number of industrial accidents: 0 2 4
Conduct specified health guidance and maintain employees’ health Implementation rate of specified health guidance: 60% (newly established in fiscal 2018) 18.9% 19.1%
Create attractive workplaces Provide workplaces where employees can work with good spirits Employee satisfaction: Better than in the previous fiscal year 3.88
(out of 5)
3.83
(out of 5)
Promote a united Group effort on social contribution activities Employees actively participate in volunteer activities Percentage of employees participating in volunteer activities: 80% (by FY2020) 69.0% 69.7%

* Results as of June 1 every year

Major Reports

  • NTT Group CSR
You can watch introduction videos here.
  • NTT Group Environmental Activities
  • NTT Annual Report 2017

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