Chief Sustainability Officer
Stock Exchange and Ticker
Tokyo Stock Exchange: NTT
T: +81 368385111
- 2021 CDP Award – Supplier Engagement Leader
- Gold status in PRIDE Index 2021
- Listed on the A List of the CDP Climate
NTT Sustainability Report
Evaluation of NTT
The NTT Group Sustainability Report includes mainly information recorded between April 1, 2021 to March 31, 2022, but certain activities implemented after March 31, 2022 and the outlook for the future, were also included in the report. Furthermore, the NTT Group obtained third-party assurance from Sustainability Accounting Co., Ltd. with regard to indicators for the fiscal 2021 results of “Improving prosperity for all people and cultures” and “Maximising well-being for all,” and for the indicators of CO2 emission volumes (Scopes 1, 2, and 3), waste disposal volumes, and water intake (clean water) within the fiscal 2021 results of “Ensuring the positive coexisting of nature and humanity”.
The report is very comprehensive, includes goals, targets as well as measures and projects that will contribute to achieving the sustainability targets. Sustainable Development Goals (SDGs) are highlighted in the nine challenges that NTT Group identified as mandatory to address in order to achieve sustainable development of the Group, but also contribute to a sustainable society.
Important to note is the detailed data on the GHG emissions including the sources of emissions, but also the areas the group aims to address in order to achieve carbon neutrality by 2040. Examples of projects at the group level that address reductions of CO2e emissions include installations of energy-saving 5G base stations, construct and operate optical fibre networks (FTTH) to reduce electricity used, invest in data centre to achieve a Power Usage Effectiveness (PUE) of less than 1.5 etc.
When it comes to assessing the supplier’s sustainability efforts, specifically the supply chain activities that affect climate change, NTT Group has been selected by the CDP as the highest “Supplier Engagement Leader” in the “Supplier Engagement Survey”.
Information about governance of the sustainability efforts at NTT Group can be found throughout the report to provide a high level of transparency for the actions and metrics, as well as for the teams responsible with providing the data.
The report also includes very detailed information when it comes to social aspects, from diversity and inclusion, to employees’ training, supply chain management and community involvement. There are targets, but measured progress is lacking. However, there are plenty of examples to show how the NTT Group engages its employees and with the community.
When it comes to Certificates and Awards, very scarce data, which makes the evaluation of the Human Rights and Employment Quality to be based only on the data found on the report.
When it comes to standards, NTT Group follows the Global Reporting Initiative, the emission targets have been approved by the Science Based Target Initiative, and also the company has completed the CDP Questionnaire for Climate Change and the Task Force on Climate Related Financial Disclosures.
Overall, NTT Group has achieved a B sustainability score, but in order to get an A, it will be important for them to include more quantitative data against the targets and obtain more certificates and awards. The Outlook is also Positive.
NTT Company Activity
Since 1952, NTT Group has developed a wide range of technologies and services, and has been delivering infrastructure for services like mobile phones, internet and cloud computing. The company operates in five business segments namely, Mobile Communications, Regional Communications, Long Distance and International Communications, Data Communications and one other segment that includes real estate rentals, financial business, system development and other services related to research and development. It serves various industries such as government agencies and municipalities, manufacturing, healthcare and life sciences, automobile, banking and financial institution, electronics and high-tech field, insurance, transportation and logistics, telecommunication, media and entertainment, wholesale, retail, education, service, energy and utility, fundamental technologies, natural resources, and consumer products. The company is headquartered in Tokyo, Japan.
NTT Sustainability Activity - As per company declarations
At NTT Group the sustainability approach is guided by the United Nation Sustainable Development Goals (SDGs). Through a materiality assessment, the Group identified the areas where people, operations and solutions can have the greatest impact across three interconnected themes of planet, economy and communities: (1) ensuring a positive coexistence of nature and humanity to solve environmental issues as well as to achieve economic growth; (2) improving prosperity for people and cultures by accepting diverse, inclusive while aiming to build a better society and create value; (3) maximise well-being for all by respecting human rights and encouraging diversity. Furthermore, three initiatives are to be pursued to ensure that the NTT Group delivers new experiences and value to customers: (1) create better customer experience, (2) decarbonize through technology, (3) maintain connectivity with infrastructure and critical IT systems even in the event of major disaster.
Certificate & Labels, Standards and Frameworks
- Comprehensive Assessment System for Built Environment Efficiency (CASBEE)
- Building-Housing Energy-efficiency Labelling System (BELS)
- ZEB Ready
- GRI Sustainability Reporting Standards
- Environmental Reporting Guidelines 2018, Japan Ministry of the Environment
- ISO 26000: Guidance on Social Responsibility
- Task Force on Climate-Related Financial Disclosures (TCFD)
NTT in the news: Press Reviews and Social Media
No articles relevant to assess the sustainability of NTT Group.
Highlights from NTT Sustainability Report
- The following items have been added as key financial indicators, with compensation of members of the Board and audit & supervisory Board members linked accordingly:
- “Carbon neutrality” as an indicator for environmental issues
- “B2B2X earnings” as an indicator for resolving social issues
- “Ratio of women newly promoted to management positions” as an indicator for human rights, diversity and inclusion
- 97.8% Recycling rate
- 77.3% ratio of remote work
- 29.1% ratio of women newly promoted to management positions
- 100% ratio of direct dialogue with critical suppliers
- In 2021 the Science Based Targets Initiative (SBTi) approves NTT Group’s FY2030 GHG reduction target
- Although there was a slight decrease in the waste recycled, NTT Group is close to achieve the 99% rate of recycling waste set for 2030
Targets vs Progress Reported
|Carbon Neutrality by 2040||- The entire NTT group experienced a 38% reduction in GHG emissions compared with FY 2013
- The Mobile (NTT DOCOMO) recorded 1.25 million t of CO2e emissions in 2021 , down from 1.41 million t in FY 2013
- The data Centers recorded 0.45 million t of CO2e emissions in 2021, down from 1.05 million t in FY2013
|80% reduction in Greenhouse Gas Emissions by 2030 (2013 baseline)||- 38% reduction of GHG emissions in 2021 ( compared to FY2013) from switching to renewable energy sources (approx. 23% of power consumption, approx. 150% compared year-on-year)|
|Achieve 100% ratio of EV adoption in Japan by 2040 and 50% ratio by 2025||- In 2021 the EV adoption in Japan was at 15%, up from 8% in 2020|
|Improve by 10 times (compared to FY2013) the power efficiency per data transmission of telecommunications services||- In 2021 the power efficiency was improved by 7.1 times, up from 6.2 in 2020|
|Recycling Rate of 99% or higher (2030)||- In 2021 at 97.8%, down from 98.4% in 2020
- Currently, all components other than optic fibres are completely recycled (99% of total volume)
| Promote the appointment of females as managers and Board members and enhance various support and training programs:
> Newly appointed managers: 30% every year
> Managers: 15% in FY2025
> Board members: 25% to 30% in FY2025
| > 29%
|Aggressively hire foreign employees and outside personnel: Mid-career hires of outside personnel: 30% in FY2023||> 32.5%|
|Expand job-based personnel system to all management positions||- Introduced in October 2021|
|Promote self-guiding career formation for general employees (revision to specialisation-based personnel compensation system)||- New system to be introduced in April 2023|
|From FY 2022 decentralised organisation from metropolitan areas to regional areas (core cities)||- Began trial in October 2022|