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NTT Group Materiality

NTT GroupMateriality

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 the 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.

NTT Group Materiality

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.

STEP1 Identify CSR Issues

STEP1Identify 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.

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STEP2 Assign Priorities

STEP2Assign 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 the 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 governanceEnsure diversity of directors Appropriateness and transparency of directors’ compensationEstablish sustainability governanceEfforts to encourage long-term ownership of shares Risk ManagementFormulate and comply with compliance guidelinesBrand managementManage intellectual propertyDetermine materiality and manage PDCA cycle Enhance reliability and disclosure of ESG dataControl negative incidents and disclose informationEngage with stakeholdersParticipate in various initiatives

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STEP3 Confirm Validity

STEP3Confirm 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 the NTT Group. Consequently, the following 18 items were determined as new CSR Priority Activities.

  • Enrich Social Communication

    Enrich Social Communication

    CSR Priority Activities
    Contribute to society through ICT
    Improve access to ICT
    Pursue customer satisfaction
    Generate innovation

  • Protect the Global Environment

    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

    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

    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

  • 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

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Goals and Achievements of the New CSR Priority Activities

To coincide with the latest review of our CSR Charter and CSR Priority Activities, we revised our CSR Quantitative Indicators and relevant numerical targets that serve as indicators for managing the NTT Group’s PDCA cycle for CSR activities.
Guided by the new CSR Quantitative Indicators, we will continue to engage in PDCA management of our CSR.

Enrich Social Communication

Enrich Social Communication
New CSR Priority Activities Medium-term Targets CSR Quantitative Indicators (KPIs)
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)
Global footprint: Expand
Percentage of the access network converted to fiber optics: NTT East: 95%, NTT West: 93%
Percentage of the population covered by LTE: Expand
Number of UD-capable products and services provided: Expand
Pursue customer satisfaction Provide high value-added products and services and fine-tuned support Customer satisfaction survey: Better than in the previous fiscal year
Number of improvements made based on suggestions from customers: More than in the previous fiscal year
Response rate and number of response hours at our call centers: Better than in the previous fiscal year
Improve facility utilization efficiency: Reduce cost by at least 200 billion yen (by FY2018)
Establish highly efficient business operations: Reduce cost by at least 800 billion yen (by FY2018)
Generate innovation In order to maintain our research and development as an important growth driver of the NTT Group for the future, promote advanced R&D that will lead the world’s information communications technologies Number of patent applications
Number of academic papers published outside the company
Person-days of participation in international standardization meetings

Protect the Global Environment

Protect the Global Environment
New CSR Priority Activities Medium-term Targets CSR Quantitative Indicators (KPIs)

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)
Improve electrical efficiency to reduce the environmental impact of business operations Electrical efficiency of the communications services: At least 10 times higher than in FY2013 (by FY2030)
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)

Ensure Reliable Communications

Ensure Reliable Communications
New CSR Priority Activities Medium-term Targets CSR Quantitative Indicators (KPIs)
Protect personal information Prevent leaks of personal information Number of incidents of personal information leaks: 0
Reinforce information security Train security experts Number of security experts: 10,000 (by FY2020)
Ensure stability and reliability of communications services Provide stable communications services free of major communications problems Stable service provision rate: 99.99%
Number of major accidents: 0

Unite the Energies of Team NTT

Unite the Energies of Team NTT
New CSR Priority Activities Medium-term Targets CSR Quantitative Indicators (KPIs)
Promote diversity Aggressively promote the active participation of women Ratio of female managers: 6.0% (by FY2020)
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
Percentage of participation in training concerning human rights: More than in the previous fiscal year
Reinforce value chain management Appropriate management of environmental and social risks, including value chains Number of confirmed high-risk suppliers: 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
Number of industrial accidents: 0
Create attractive workplaces Provide workplaces where employees can work with good spirits Employee satisfaction: Better than in the previous fiscal year
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)

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Targets and results for CSR Priority Activities up to fiscal 2016

In fiscal 2010, the Group companies formulated CSR action plans for each of the eight CSR Priority Activities to link these with the companies’ respective businesses and raise CSR activities across the Group to a higher level. In fiscal 2012, we started setting common Group-wide quantitative indicators and completed the establishment of quantitative indicators for all eight CSR Priority Activities in fiscal 2013. In addition, we have been promoting CSR activities across the Group.
In fiscal 2017, we will begin taking action with the new quantitative CSR indicators. However, the goals we have pursued up to fiscal 2016 remain important, and we will continue to engage in activities toward achieving them.

Enrich Social Communication

Enrich Social Communication
CSR Priority Activities Quantitative Indicators Results in
FY2014 FY2015 FY2016
Helping to build a sustainable society through providing value to customers Number of new products and services qualifying as contributing to sustainable society: Understanding of the actual number of products and services 271 248 159

Protect the Global Environment

Protect the Global Environment
CSR Priority Activities Quantitative Indicators Results in
FY2014 FY2015 FY2016

Creating a low carbon society

CO2 emissions: 3.42 million tons*1 4.852 million tons 5.07 million tons 4.87 million tons
Implementing closed-loop recycling Final disposal rate for all waste materials: 2%*1 1.15% 0.88% 0.82%
Total paper consumption: 58,000 tons*1 60,000 tons 50,000 tons 45,000 tons
Conserving biodiversity Common qualitative initiatives for ecosystem preservation and forest improvement activities

Ensure Reliable Communications

Ensure Reliable Communications
CSR Priority Activities Quantitative Indicators Results in
FY2014 FY2015 FY2016
Ensuring information Security Number of employees receiving information security training*2 300,000 342,000
Number of security personnel: 10,000*3 Approx. 20,000
Ensuring stable and reliable services as critical infrastructure Service stability: 99.99% 99.90% 99.99% 100%
Number of major accidents: 0 4 1 0

Unite the Energies of Team NTT

Unite the Energies of Team NTT
CSR Priority Activities Quantitative Indicators Results in
FY2014 FY2015 FY2016
Promoting respect for diversity and equal opportunity Ratio of women in managerial positions: 6%*1 3.30% 3.60% 4.0%
Implementing citizenship activities Number of local community cleanup participants: 120,000 123,000 126,000 129,000
Number of PET bottle caps collected (Ecocap Movement): 30 million 29.00 million 29.95 million 14.58 million

*1 Target up to fiscal 2021
*2 Target up to fiscal 2015
*3 Target from fiscal 2016

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