Corporate Social Responsibility (CSR) of the NTT Group

The NTT Group has formulated the following three corporate missions.

1. Increase corporate value and answer the expectations of everyone including our shareholders.
2. Take responsibility for universal service and other regulations laid down in the NTT law.
3. Contribute to the realization of Japan's IT strategy through the e-Japan Strategy and related initiatives.

We will not only practice "the imperative to continually contribute to the development of society while focusing on corporate responsibility" as a basic management principle within each of our three missions and maximally address full compliance and the protection of private/customer information but also contribute to solving various social and environmental issues in Japan and overseas with our advanced IT technologies.

In this context, we believe that CSR for the NTT Group consists of the roles (missions) the Group should practice. How these Group missions are to be fulfilled in the medium-term has been laid down in the "NTT Group's Medium-Term Management Strategy," which was announced in November 2004.

With our sights set on the realization of a safe and secure Broadband and Ubiquitous* communications era, while committing ourselves to continuing communications with all shareholders, directors, subscribers, clients, company employees and other stakeholders, we are aiming to step up CSR activities, directing our efforts towards the healthy management of our business including economic aspects as well as overcoming social and environmental problems.

* Broadband: High speed, large volume telecommunications Ubiquitous: Access to information such as that provided on the Internet at any time from any place.

To improve the health of our management, from the past the NTT Group has been involved in setting up a promotion system for corporate governance, corporate ethics, risk management, human rights enlightenment and similar concerns. To clarify the management structure for the promotion of the NTT Group's CSR, in June this year NTT Holding Company set up a "CSR Committee" with that company's vice-president as committee chairman. The committee is responsible for developing ongoing discussions relating to CSR activities of the NTT Group.

In fiscal year 1999, the NTT Group issued its "Report on Environmental Protection Activities". This fiscal year, in addition to the "Environment" the NTT Group is issuing its first "CSR Report", to keep all stakeholders informed of the sustained activity of the Group in the fields of "Society" and "Economy". By notifying everyone of our CSR undertakings and reexamining our activities in the light of opinions we have received from everyone, we are striving to become a better member of society.

- Social Advancement Activities

In order to offer safe and secure broadband-ubiquitous services, we are also positively tackling social problems. For instance, we are communicating rules (1) for the safe use of the Internet by children, as part of our research into the shady aspects of Internet society. In addition, we are working on a variety of disaster countermeasures (2) aimed at providing communications services that are well prepared for disasters.

In addition, the NTT Group is promoting its contribution to society over the long term. For instance, we actively participate in festivals and charity events. Employees and family members get involved in cleanup activities and forest maintenance work for the protection of nature and the environment. Many of our employees as well as retirees also participate in a range of activities that include teaching Internet classes that are open to all local residents.

- Environmental Activities: Environmental Conservation

Based on the "NTT Group Ecology Program 21," a concept that contributes to the creation of a sustainable society, we are implementing a range of environmental activities. We are aware of the pronounced environmental impact accompanying our business processes, particularly CO2 emissions due to the use of electric power in network equipment, waste material from used equipment and depletion of paper resources used in the production of telephone directories. In response, we have set planning targets for the reduction of the environmental impact due to these three factors, which we are striving to attain by 2010. For instance, NTT East and NTT West issue a total of around 102 million directories per year. In an effort to cut down the volume of pure pulp used in the production of the directories, the companies have set up a closed-loop directory recycling system that produces new directories from collected used directories.