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NTT Communications

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Activity Results and Targets

Contributions to Society

Actions Implemented in Line with CSR KPIs

We have been pursuing the sustainable development of society by providing stable and highly reliable services while also offering secure environments for communication with robust disaster countermeasures and information security. As a result of these efforts, we were able to attain our targets in the six areas of the CSR Priority Activities: “Innovation that Supports a Networked Society,”“Ensuring Stable and Reliable Services as Mission-critical Infrastructure,” “Robust Network Security for Customers,” “Continuous Improvement in Customer Satisfaction,” “Collaboration with Suppliers,” and “Social Contributions and Fostering of Communities.”
In particular, we developed measures to address major natural disasters by establishing a process for gathering information and releasing external reports during large-scale events, identifying issues,and formulating solutions. In addition, the Group-sponsored Shining Arcs rugby team pursued various initiatives for addressing social issues, such as organizing rugby classes at elementary schools and junior-high schools and actively in classes promoting the Tokyo 2020 Olympic and Paralympic Games. The team also supported the “deleteC” movement during their official games in the Japan Rugby Top League.

Fiscal 2019 Activity Results and Fiscal 2020 Targets

CSR Priority Activities Initiatives Medium-term Targets
(Form We Want to Take in Five Years)
Fiscal 2019 Targets Fiscal 2019 Activity Results Fiscal 2020 Targets Scope SDGs
Specific Activities Quantitative Results Self-assess
ment
Activities
Innovation that Supports a Networked Society Provision of new value that contributes to business transformation Utilize IoT and cloud technologies to develop and seamlessly deploy a range of global services that meet the business needs of corporate customers Create new areas for applying IoT by strengthening the three solutions from the perspective of providing a full-stack, full-lifecycle service and by expanding the co-creative ecosystem through the Things Partner® Program

Enhanced the Things Partner® Program and created a mechanism for providing full-stack support of IoT systems. Launched the Things Advisory, Things Coordination, and Things Management services to provide a one-stop service for customer support.

Expanded participation in the Things Partner® Program to 36 companies (from 13 in FY2018). Enhanced the networks by adding 6 services and options, including LoRaWAN/Sigfox connectivity and the Things Cloud Private service, which provide a secure environment for gathering IoT data.
Created new areas for applying IoT.

★★★ Contribute to realizing a Smart World by providing customers with valuable IoT solutions in combination with Smart Data Platform services that serve as an IoT infrastructure.
To do so, we will create new IoT applications through value proposals that address customers’operational issues and continuously expand the capabilities of the Things Partner® Program.
Within/
outside the Organization
9
11
Realization of safe and secure daily lifestyles; bridging the digital divide Bridge the digital divide inside and outside Japan, develop accessibility-enhanced services for individual users and a framework for delivering them Launch new services for improving OCN and continuously implement functional enhancements

Began offering a new OCN Mobile ONE plan for phone and Internet access, starting at 980 yen a month
(November 20, 2019)

One activities ★★★

・Launch new services for improving OCN and continuously implement functional enhancements

・Continue to implement measures to support the change in network usage resulting from the COVID-19 pandemic

Within/
outside the Organization
Ensuring Stable and Reliable Services as Mission-critical Infrastructure Development of disaster-resilient networks Preventing the loss of communications during disasters by constantly developing resilient ICT infrastructure (buildings, steel towers, electricity, power lines/public works)

・Consider construction projects
‐ Flood prevention: Odori, Sapporo,etc.
‐ Fire alarm receiver: Tsu, Mie, etc.
‐ Elevator: Jicchaku, etc.
‐ Plumbing: Utsunomiya, etc.Environmental maintenance:Hitotsubashi
‐ Upgrade power receiving equipment: Sainen, Kanazawa,Odori, Sapporo, etc.
‐ Repair smoke exhaust device:Sakae, Nagoya, etc.
‐ Building removal: Nakano-koji Building, Saga
‐ Underground leakage: Aomori, etc.
‐ Air conditioner conversion:Yamashita, Yokohama, etc.

・Improve the reliability of power receiving equipment and engines

・Decide on new buildings and start construction

・Upgrade power receiving equipment at 16 buildings Upgrade 12 engines

・Improve the reliability of landing stations

・Strengthen building security and other measures (introduction of a suspicious person detector)

・Completed or began flood prevention work

・Completed or began seismic reinforcement and building removal


・Improved the reliability of power receiving equipment and engines
» Addressed upgrades for power receiving equipment and engines at a decision making meeting and began construction work

・Installed surveillance cameras along the outer perimeter of Shima Landing Station

・Flood prevention: completed at 1 building (August 2019); started at 7 buildings

・Seismic reinforcement and building removal: completed 1 building (March 2020); started at 1 building

・Improved the reliability of power receiving equipment and engines
» Power receiving equipment: discussed and approved upgrades for 15 out of 16 planned buildings at a decision making meeting
» Engines: discussed and approved upgrades for 9 out of 12 planned engines at a decision making meeting (decided to postpone 1 building and 3 engines to next fiscal year due to necessary adjustments for future building plans and lack of building space)
» Started construction of 13 out of 16 buildings approved for upgrades

・Enabled surveillance of Shima Landing Station

★★

・Flood prevention and seismic reinforcement
‐ Started work on flood prevention: 5 buildings
‐ Started work on seismic reinforcement andremoval: 1 building

・Improved the reliability of power receiving equipment and engines
» Decide on new buildings
‐ Upgrade power receiving equipment at 6 buildings
‐ Upgrade 9 engines

・Communication routes: allocate materials for relieving route interruptions

・Transmission equipment: create BCPs to flexibly procure materials and bases for allocating alternative equipment

・Internal surveillance network: reinforce security (introduce system for detecting abnormal transmissions)

・Formulate maintenance guidelines Assess vulnerability level of existing routes and incorporate results in an upgrade policy for nationwide DSM (dedicated service handling module) cables

Within the Organization
Measures to address major natural disasters

・Continuous strengthening of the planned response for hypothetical earthquakes in the Nankai Trough and directly under the Tokyo metropolitan area, conducting blind drill themes (drill format not made known to participants)

・Gathering disaster relief information for liaising with government and municipal bodies and making reporting processes faster and more operationally entrenched

・Enhance liaison within the NTT Communications Group

・Migrate to the new Disaster Response Headquarters environment following the relocation of the head office to Otemachi

・Reconfirm basic action process and confirm operational process for new Disaster Response Headquarters to prepare for an earthquake directly under Tokyo

・Conduct an emergency assembly drill assuming the occurrence of an earthquake directly under Tokyo at night or on a holiday and conduct an initial response drill for west Japan

・Firmly establish processes for gathering information on damage and reporting to entities outside the company by members of the west Japan initial response centers

・Make NTT Communications support bases available to Group companies in Japan

・Conducted a case study to review response to a natural disaster (Typhoon No. 19) that occurred during a large-scale event (Rugby World Cup 2019) (December 2019)

・Knowledge gained from the abovementioned review was applied to the internal operating team for the Tokyo 2020 Olympic and Paralympic Games* scheduled for FY2020 and incorporated into its response procedures (February 2020)

・Collaborated with the government’s verification team for natural disasters, including typhoons No. 15 and No. 19;identified, compiled, and implemented improvements based on various standpoints and perspectives (March 2020) (http://www.bousai.go.jp/
index-e.html)

・Response to major disasters that occurred in fiscal 2019 showed greater understanding of the process for gathering damage information and reporting to entities outside the company

・Identified 15 specific issues and formulated countermeasures in the course of reviewing actual cases of natural disasters and applying the results to the internal operating team for the Tokyo 2020 Olympic and Paralympic Games*

・Strengthened collaboration with relevant government agencies and other companies through interaction with external organs such as the national government (implemented 6 drills and study groups with external organizations)

★★★

・Reconfirm the process of basic actions to be taken for a hypothetical earthquake in the Nankai Trough; confirm the operational process for the new Disaster Response Headquarters

・Reconfirm the response procedures in anticipation of a natural disaster during a largescale national event

・Upgrade the system to bolster information gathering ability and simplify the disaster response process (including response to infectious diseases such as COVID-19)

Within the Organization
Robust Network Security for Customers Network surveillance 24 hours a day, 365 days a year

・ Constantly monitor customer services, including networks, Internet, cloud, email, hosting, and voice-based services

・Construct a framework to monitor seamless global networks

・Ongoing reduction in the number of long-term malfunctions

・Due to the solid progress being made in reducing the number of long-term malfunctions for networks in Japan (more than 3 hours) and for overseas networks (more than 4 hours), a new target of more than 1 hour of long-term malfunctions will be set for these networks and other services
DNW: 1,297 lines/month
CL: 17 incidents/year
A&C: 38 incidents/year
Voice: 16 incidents/year

・Alternative routes and equipment are in place and operational from normal times as backup for maintaining the functionality of overall services in the event of a malfunction in part of the networks or systems; work began on reinforcing measures for quickly discovering malfunctions and automatically switching to backup systems by anticipating specific malfunctions

・ Replaced obsolete equipment to reduce the occurrence of malfunctions

Number of long-term malfunctions exceeding 1 hour for each service:
DNW: 947 lines/month
CL: 16 incidents/year
A&C: 24 incidents/year
Voice: 7 incidents/year

★★★

・While FY2019 targets were achieved in all services, the following targets have been set for long-term malfunctions exceeding 1 hour to firmly establish the effort:
DNW: 1,303 lines/month
CL: 12 incidents/year
A&C: 46 incidents/year
Voice: 16 incidents/year

・Maintain and enhance the quality of service and operations by taking into consideration remote monitoring and associated operation systems to prepare for an outbreak of disease such as COVID-19

Within/
outside the Organization
Strengthening vulnerability response functions Develop measures for both domestic and overseas Group companies to strengthen their vulnerability response functions

・Conduct vulnerability assessment of Web-based apps owned by the NTT Communications Group and overseas Group companies

・Bolster the Group’s software development capability by continuously improving the assessment record management system

・Set up a vulnerability assessment system for the NTT Communications Group

・Improved the assessment record management system.

・Completed the assessment system and continue to identify issues for assessment

・Established an agile development system and improved the assessment record management system by conducting upgrades about once a month

★★

Integrate vulnerability assessment with system audits and apply throughout the Company

Within the Organization
Rapid and reliable responses to security threats Continuously enhancing and strengthening services that contribute to safe and secure corporate and national information systems

・Strengthen solutions that support CSIRT operations in professional services

・Expand security measures for cloud gateways and IoT/OT*1 in managed security services

・Bolstered customer security by offering OSINT Monitoring*2 as part of NTT Com’s professional services to promptly detect and report information that may pose a threat to cybersecurity on the Internet; began providing a Cloud Diagnosis Solution that visualizes usage status to ensure secure SaaS operation

・Strengthened measures against cyberattacks on ICT in general by developing security services for cloud gateways and IoT/OT in managed security services

Number of new services: 2 ★★★

Expand security measures for cloud gateways, end points, and IoT/OT to strengthen the ICT environment based on the zero trust model and changing work styles

Within/
outside the Organization
Continuous Improvement in Customer Satisfaction Ongoing CS surveys Continuous improvements in customer satisfaction level scores

・Strengthen analysis of customer needs and utilize results in marketing activities.

・Change survey questions to further promote the PDCA cycle for improvements by measuring the effect of the previous year’s activities (Example: add a question asking whether the results of kaizen activities have led to higher levels of customer satisfaction)

・Revised the survey method to launch a relational survey targeting CXOs and business users within corporate customers to strengthen needs analysis for creating new businesses; collected information on the status of DX and future plans from corporate customers

・Continued to conduct the ongoing service survey in FY2019; added a question asking respondents to compare their level of satisfaction over successive years to measure the effectiveness of actions taken in the previous fiscal year

・Began interviewing target users of the VOC survey to more deeply analyze customer needs; analyzed survey results to gain an accurate understanding of customer requests and promote planing actions that cater to their needs

・Survey responses
- Relational survey (new): 292
- Service survey (continuation): 2,703
(year on year increase in rate of response: +1.5%)
- Customer interviews: 12

★★★ Review survey questions and conduct advanced analysis of survey results to clearly identify topics with higher impact on customer satisfaction; particularly during the COVID-19 outbreak in FY2020, raise customer satisfaction by grasping their needs and issues and working on sales activities and service improvements Within/
outside the Organization
8
Collaboration with Suppliers Dissemination of CSR and green procurement

・Promoting the procurement of environmentally sound products through measures such as having individual suppliers assess products

・Preventing complicity in anti-social behavior across the supply chain by, for example, addressing the conflict minerals issue

Continue to conduct the annual supplier survey on promoting CSR procurement Continue to conduct the annual supplier survey on promoting CSR procurement Survey conducted for 18 companies ★★★ Continue to conduct the annual supplier survey on promoting CSR procurement Within/
outside the Organization
Social Contributions and Fostering of Communities Contributions to communities Promoting social contribution activities in a variety of fields and according to the social contribution principles, such as sustainability, efficiency, due diligence, global perspective, and skills

・Continue local cleanup activities and introduce cleanups by individual Group companies

・Continue holding events with sales of breads, snacks, and other items in cooperation with local organizations supporting persons with disabilities

・Conducted a cleanup activity around the head office; local cleanups also took place at other business bases and Group companies

・Held sales events at the head office building and other locations as well as some Group companies

・Head office area cleanup activities: held twice (June and November) with a total of 588 participants

・Head office sales events: held 3 times (July, November, and February), with gross sales of 300,650 yen

★★★

・Continue local cleanup activities

・Continue holding events* with sales of breads, snacks, and other items in cooperation with local organizations supporting persons with disabilities

*Reconsider schedule of events with respect to the spread of COVID-19

Within/
outside the Organization
4
Fostering communities and the next generation Developing a strategic social contribution framework that leverages the Group’s business characteristics
to support community development and contribute to fostering youth
Continue promoting initiatives for the sound development of children by providing social education opportunities such as workplace visits that offer firsthand experience of cutting-edge AI and IoT technologies, and by organizing rugby classes by the Group’s sponsored rugby team

・Held Family Day and a beach cleanup

・Held rugby classes, career education classes, and leadership training at elementary and junior high schools in Urayasu City; dispatched employees to local events in Urayasu City

・Organized classes promoting the Tokyo 2020 Olympic and Paralympic Games at elementary, junior high, and high schools in Tokyo

・Offered physical fitness training and stretching programs as part of an effort to promote health management and healthy living both inside and outside the Company

・Participated in the deleteC project for educating the public about cancer and held activities including deleteC matches and donations to cancer research

・Held the Calorie Offset Program, which is part of the Shining Arcs 2019 project, in which the monetary equivalent of calories burnt by players and fans in the top league is donated through TABLE FOR TWO International toward addressing the global food shortage

・Family day: held 3 times in August, with 64 children participating

・Conducted a beach cleanup in June, with 49 children participating

・Held 12 classes, training sessions, and workplace visits in Urayasu City

・Dispatched players to 6 elementary and junior high schools in Tokyo to offer classes promoting the Tokyo 2020 Olympic and Paralympic Games

・Held events to promote health with 4 outside companies and shared 20 videos titled Arcs Break for addressing the lack of exercise for employees and the general public

・On January 18, 2020, held the second match in the top league against Suntory as a deleteC match and raised awareness through social media and the Internet; produced goods and collected donations; project was expanded to involve the top league and attracted 15,826 spectators

・The 5 matches of the 2019 Top League Cup were attended by 5,800 fans and supporters, and the calories they burned, combined with those of the players, were converted into a donation of 114,622 yen; 2 matches of the 2020 Top League were attended by 4,377 fans and supporters and resulted in a donation of
56,058 yen

★★★

・Continue promoting initiatives for the sound development of children by providing social education opportunities such as workplace visits that offer firsthand experience of cuttingedge AI and IoT technologies

・Earnestly engage with SDG activities* through sports based on various perspectives to address social issues and continue building a team deeply rooted in the local community by contributing to the region

*Reconsider schedule of events in response to the spread of COVID-19

Within/
outside the Organization

*1 OT: operational technology
*2 OSINT: open-source intelligence

Achievement levels based on self-assessment ★★★: Target achieved ★★: Target almost achieved ★: Target only partially achieved

Contributions to the Global Environment

Actions Implemented in Line with CSR KPIs

In line with the three underpinning themes of fiscal 2019: “Realizing a Low-carbon Future,” “Implementing Closed-loop Recycling,” and “Planning a Future of Co-existing with Nature,” we worked to reduce the environmental impact associated with all our business activities and achieved Groupwide results. In particular, we helped reduce global carbon emissions by deploying measures for lowering power consumption at more Group buildings, promoted remote work and paperless meetings as workstyle reform initiatives, and improved the landfill rate by promoting the 3Rs (reduce, reuse, and recycle). We also held the fourth biodiversity photo contest.
In fiscal 2020, we continue pursuing various measures with a focus on activities that include reducing electricity consumption, promoting waste recycling, and preserving ecosystems in order to contribute to reducing the environmental impact of our Group as well as society as a whole.

Fiscal 2019 Activity Results and Fiscal 2020 Targets

CSR Priority Activities Initiatives Medium-term Targets
(Form We Want to Take in Five Years)
Fiscal 2019 Targets Fiscal 2019 Activity Results Fiscal 2020 Targets Scope SDGs
Specific Activities Quantitative Results Self-assess
ment
Activities
Realizing a Low-carbon Future Cutting carbon emissions from businesses We will raise power efficiency per data transmission in our telecommunications businesses, including data centers, by at least 10 times compared to fiscal 2013 levels (fiscal 2030 target). Raise power efficiency per data transmission in our telecommunications businesses, including data centers, by at least 10 times in 2030 compared to fiscal 2013 levels (fiscal 2019 target: 3.8 times higher)

・Implement the following energy management measures to further reduce electricity use
- Remove equipment that consumes large amounts of power and shut down surplus air-conditioners
- Use Dash Board to visualize efficiency of air-conditioning and usage of power and air-conditioners
- Improve airflows and promote air-conditioning controls that take into account external and internal temperatures through visualization
- Install DASH (air-conditioning control system) at a data center

・CO2 emissions: 240,000 t-CO2 (new calculation method)

・Adjustment of telecommunications facility intake

・Improvement of airflow control using humidity sensors

・Optimization of indoor temperature

・Air-conditioning control

・Increase installations of automated airconditioning control systems

Fiscal 2019 Results

・Power efficiency: Increased by 4.1 times compared to fiscal 2013

・CO2 emissions generated by NTT Communications alone: 235,000 t-CO2 (CO2 emission factor: 0.462 kg-CO2/kWh)
- Telecommunications facility:219,000 t-CO2
- Offices: 17,000 t-CO2

★★★

・Raise power efficiency per data transmission in our telecommunications businesses, including data centers, by at least 10 times in 2030 compared to fiscal 2013 levels (fiscal 2020 target: 4.5 times higher)

・CO2 emissions generated by NTT Communications alone: 233,000 t-CO2 (CO2 emission factor: 0.454 kg-CO2/kWh)
- Telecommunications facility: 217,000 t-CO2
- Offices: 16,000 t-CO2

Within the Organization 7
13
Cutting society’s carbon emissions through products and services We will contribute to reducing CO2 emissions across society by at least 10 times more than the NTT Communications Group’s own emissions (fiscal 2030 target).

Expand the use of the Environmental Solutions Label System to contribute to reducing CO2 emissions across society by at least 10 times more than the NTT Communications Group’s own emissions in 2030 (fiscal 2019 target is 15.9 times more)

・Maintain and promote the sales of Environmental Solutions Label-certified services capable of contributing to reducing CO2 in society

Fiscal 2019 result: 16.5 times more ★★★ Expand the use of the Environ-mental Solutions Label System to contribute to reducing CO2 emissions across society by at least 10 times more than the NTT Communications Group’s own emissions in 2030 (fiscal 2020 target is 15.3 times more) Within/
outside the Organization
Implementing Closed-loop Recycling Realizing a low environmental impact business model Implementing a low environmental impact business model

・Building and maintaining a low environmental impact business model
- Implementing measures to reduce electricity use
- Installing energy-saving equipment
- Appropriately managing hazardous substances

・Installation of energy-saving equipment

・Installation of direct and indirect ambient air-conditioning system

・Increase in the number of buildings with airflow control systems

・Appropriate management of PCB/asbestos hazardous substances

-

★★★

・Building and maintaining a low environmental impact business model
- Implementing measures to reduce electricity use
- Installing energy-saving equipment
- Appropriately managing hazardous substances

Within the Organization 12
Thorough implementation of a 3R policy in businesses

Thorough implementation of a 3R (reduce, reuse, and recycle) policy with regard to all resources relevant to our business activities
- Improvement in the final waste disposal ratio: 1.5% or lower (fiscal 2030 target)

・Continue the implementation of a 3R (reduce, reuse, and recycle) policy with regard to all resources relevant to our business activities
- Improvement in the landfill rate: 2.0% or lower

・Strengthen measures at the level of individual organizations based on data on multifunction printer usage and promote a paperless working style that utilizes ICT equipment

・Enhanced promotion of the 3R policy

・Confirmation of waste process flow and method and promote thermal recycling to improve the landfill rate

・Promotion of a paperless working style based on data on multifunction printer usage

Landfill rate: 2.1% ★★

・Implement the 3R (reduce, reuse, and recycle) policy for all resources relevant to our business activities
- Improvement in the landfill rate: 2.0% or lower
- Reduce, reuse, and recycle plastic

・Promote a paperless working style that utilizes ICT equipment

Within the Organization
Planning a Future of Co-existing with Nature Facilities that show consideration for biodiversity

・Facility construction, maintenance, and repair based on NTT Group building concepts

・Compliance with action guidelines with regard to biodiversity conservation

・Facility construction, maintenance, and repair based on NTT Group building concepts

・Compliance with action guidelines in regard to biodiversity conservation

・Facility construction, maintenance, and repair based on NTT Group building concepts

・Compliance with action guidelines in regard to biodiversity conservation

・Offering our stations for observing the migration of Chinese sparrow hawks

-

★★★

・Facility construction, maintenance, and repair based on NTT Group building concepts

・Compliance with action guidelines in regard to biodiversity conservation

Within the Organization 14
15
Utilize ICT to contribute to biodiversity Utilize ICT to contribute/respond to biodiversity Utilize ICT to contribute/respond to biodiversity

・Expansion of Mimawari Rakutaro to 50 local governments nationwide

・Information dissemination and educational

・Activities through the goo Green Label

-

★★★

Utilize ICT to contribute/respond to biodiversity

Within/
outside the Organization

Achievement levels based on self-assessment ★★★: Target achieved ★★: Target almost achieved ★: Target only partially achieved

Respect for Employees

Actions Implemented in Line with CSR KPIs

In fiscal 2019, we almost achieved the targets for the priority areas of human resource development, respect for diversity and equal opportunities, and maintaining and improving employee health.
The favorable assessments were particularly due to innovative initiatives focused on diversity, which included maintaining and enhancing career development, implementing measures that led to an improvement in the employee satisfaction survey results, supporting the development of women’s careers, and organizing various seminars for employees.
In fiscal 2020, we will seek to create work styles geared to the “new normal” lifestyle while also taking on the challenge of becoming a corporate group that respects diversity and enables employees to grow alongside the Company by launching a new program for human resource development.

Fiscal 2019 Activity Results and Fiscal 2020 Targets

CSR Priority Activities Initiatives Medium-term Targets
(Form We Want to Take in Five Years)
Fiscal 2019 Targets Fiscal 2019 Activity Results Fiscal 2020 Targets Scope SDGs
Specific Activities Quantitative Results Self-assess
ment
Activities
Human Resource Development Maintenance and improvement of motivation To consistently maintain and improve motivation among NTT Communications Group employees

・Construct a mechanism for identifying and analyzing issues over a shorter timespan to provide even greater motivation for diverse employees

・Pursue measures for revitalizing the organization

・Conducted an employee satisfaction survey targeting employees and contract workers of the NTT Communications Group

・Implemented action plans to continuously maintain and improve employee motivation based on the results of the employee satisfaction survey

Action plans led to an improvement in the responses to employee satisfaction survey (positive responses: 60.0%, up 1.4 points year on year)

★★★

Review and analyze employee satisfaction survey responses to identify issues and develop and implement action plans to continuously maintain and improve employee motivation

Within the Organization
8
Building a career development program Environmental enhancements for improving Companywide skills in new business fields Training time per person: more than 19 hours Reinforced efforts for increasing the number of talented employees capable of major contributions, such as setting up new communities and organizing lectures and workshops by top engineers in the industry and conducted OJT by dispatching outside for talented employees Training time per person: more than 18 hours ★★ Training time per person: more than 18 hours Within the Organization
Respect for Diversity and Equal Opportunities Employment and promotion of diverse human resources

・Foster female employees and support measures to improve the percentage of women in managerial positions

・Further promotion of hiring persons with disabilities

・Continue to enhance career development for diverse employees by offering support for building networks among female employees, developing careers, and balancing childcare and nursing duties with work

・As part of promoting diverse human resources and to raise the percentage of employees with disabilities to 2.3% by the end of fiscal 2020, promote the hiring of people with disabilities; maintain the ratio at 2.2% or higher

・Each organization took the initiative to offer opportunities for presenting role models for new female employees through panel discussions involving senior female employees and group discussions

・Held seminars on the desirable qualities and skills of a leader for female employees one step away from managerial positions, with the aim of improving the percentage of women in these positions

・Held a dialogue between personnel managers of other companies and the head of NTT Communications’Human Resources Department to offer advice on designing careers and communicating with supervisors for employees aspiring to become managers and those returning to work from childcare leave

・RAINBOW CROSSING: Introduced NTT Communications’ initiatives on women’s career development, hiring of people with disabilities, and LGBT issues at a diversity hiring event

・Held seminars for employees returning from childcare leave to support balancing child raising and careers

・Opened a helpdesk in collaboration with clinical psychologists for persons with mental disabilities

・Offered opportunities for practical training prior to employment for persons with disabilities

・Seminars on developing women’s careers and exchanges with other companies held by each organization

・Raised the percentage of women in managerial positions from 6.1% to 6.7% through measures for career enhancement for female employees

・The dialogue with the head of human resources was published on the corporate website, where employees, both female and male, posted comments such as: “given responsible tasks raises motivation,” “this was a good opportunity to reflect on how to communicate with subordinates,” and “it was gratifying to see that attention was being given to the feelings of employees returning from maternity leave”

・NTT Communications’ RAINBOW CROSSING exhibit attracted twice the number of students compared to the previous year; one student expressed the hope of joining the Company

・Over 90% of employees who participated in seminars aimed at balancing child raising and careers found them “helpful” or “useful”

・NTT Communications hired 28 persons with mental disabilities in the past 3 years and achieved the statutory requirement on a nonconsolidated basis

★★★

・Continue to enhance career development for diverse employees by offering support for building networks among female employees, developing careers, and balancing childcare and nursing duties with work

・Consistently implement activities by organizations and Group companies in Japan while also seeking broader exchanges outside the Company to expand initiatives not only for developing women’s careers but also for promoting diversity in general

・As part of promoting diverse human resources and to raise the ratio of employees with disabilities to 2.3% by the end of fiscal 2020, promote the hiring of people with disabilities; maintain the ratio at 2.2% or higher

・As part of promoting diverse human resources and to raise the percentage of employees with disabilities to 2.3%, promote the hiring of people with disabilities; maintain the ratio at 2.2% or higher

Within the Organization
Training global personnel In every country and at every level, provide flexible and appealing workplaces based on business demands We will strive to second 30 employees. As for accepting employees, we will continue to give consideration in view of the ongoing reorganization of the NTT Communications Group for achieving further growth in global operations As destinations for secondment, created more posts that contribute to developing human resources in areas essential to future business, such as managed services and security. As for accepting employees, we will continue to give consideration in view of the ongoing reorganization of the NTT Communications Group for achieving further growth in global operations Seconded 32 employees on a nonconsolidated basis ★★★ We will strive to second 30 employees. As for accepting employees, we will continue to give consideration in view of the ongoing reorganization of the NTT Communications Group for achieving further growth in global operations. The timing of dispatches will be determined as we observe the COVID-19 situation Within the Organization
Maintaining and Improving Employee Health Respect for work-life balance Creation of more satisfying workplaces and improvements in employee work-life balance Further improve productivity, including the promotion of digital transformation (DX), by accelerating work style reform based on the integration of systems, tools, and awareness Systems and Rules

・Created systems for new work styles to address the “new normal”

・Legal compliance (observed mandatory 5-day annual leave for employees)

Environment and Tools

・Continued holding DX liaison meetings

・Expanded the use of smart devices and chatbots

Awareness

・Promoted work styles with an emphasis on working from home

・Conducted employee pulse surveys and held a DX Summit

・Reduced annual total work hours by 19 hours year on year

・Due in part to measures for preventing COVID-19 infections, over 80% of employees were engaged in remote work on a daily basis as of March 2020; about 150,000 remote conferences took place monthly, which is 10 times more than in past years

★★

・Further improve productivity, including the promotion of DX, by accelerating work style reform based on the integration of systems, tools, and awareness

・Explore new work styles in the wake of COVID-19 by drawing on the experience of handling the pandemic

Within the Organization 5
8
Thorough implementation of occupational safety and health Maintenance of healthy and comfortable workplace environments Health checkup rate: 100% Mandated health checkups for employees and thoroughly promoted attendance

Health checkup rate: 99.7%

★★

Health checkup rate: 100%

Within the Organization

Achievement levels based on self-assessment ★★★: Target achieved ★★: Target almost achieved ★: Target only partially achieved

Continuous Strengthening of Corporate Governance

Actions Implemented in Line with CSR KPIs

To address changes in the business environment and public expectations, including the needs arising from the advance of ICT throughout society and supply chain management, we designated thorough compliance, respect for human rights, risk management, and ensuring information security as our CSR Priority Activities. All of our employees personally strive to fulfill our new corporate mission and put our core beliefs into practice to ensure the sustainability of business operations.
This has enabled us to meet, for the most part, our goals in fiscal 2019. With particular respect to risk management, we reviewed the documents defining risks in terms of the restructuring of our organization and business and also guided Group companies in this area. To ensure information security, we revised our guidelines for protecting customer information for the EU region in accordance with the newly enacted regulations on protecting this data. We intend to incorporate the results into developing our initiatives further in fiscal 2020 on a Groupwide basis.

Fiscal 2019 Activity Results and Fiscal 2020 Targets

CSR Priority Activities Initiatives Medium-term Targets
(Form We Want to Take in Five Years)
Fiscal 2019 Targets Fiscal 2019 Activity Results Fiscal 2020 Targets Scope SDGs
Specific Activities Quantitative Results Self-assess
ment
Activities
Thorough Compliance Raise awareness and establish compliance throughout the Group Becoming a company that practices corporate ethics,including compliance with laws, social norms, and internal rules

・Bolster the compliance promotion framework through such measures as updating rules and processes according to the current state of applications and addressing diversity

・Visualize compliance initiatives

・Thoroughly establish risk-based auditing in line with international standards on internal audits and conduct well-balanced audits through focused investment of auditing resources in high-risk areas

・Strengthen preventive auditing by effectively use data analytics commensurate with our standing as a DX Enabler

・Emphasized communication with whistleblowers, regardless of whether or not their identity is known, to address dissatisfaction (cultivate a sense of satisfaction)

・Standardized the investigation process by reviewing the flow of addressing reports

・Held job level-based training for new employees, the NTT Com Group in Japan, newly appointed directors, and all employees

・Enhanced corporate ethics training materials for NTT Communications Group companies

・Used a risk map to conduct audits based on themes selected through discussions with management; conducted focused audits by selecting target organizations and subsidiaries in accordance with each theme

・Began continuous risk monitoring based on CAAT (Computer Assisted Audit Techniques); visualized the issues in each organization with a focus on labor compliance and proper use of expenses, and shared the results with each organization

・Conducted focused audits at Conducted focused audits at 6 organizations on controlling technology exports and 4 organizations and 2 companies on fraudulent contracts 6 organizations on controlling technology exports and 4 organizations and 2 companies on fraudulent contracts

・Expanded the scope of monitoring to areas that could not be addressed by the scope of past audits, such as employees of partner companies approving the duty roster by proxy (one organization) and duplicate applications related to credit card payments of travel expenses (71 cases at NTT Com)

★★★

・Enhance quality in line with Japan’s revised Whistleblower Protection Act, such as by shortening the investigation period after verifying the whistleblowing process, including confidentiality and investigation of reported content

・Promote collaboration with auditors from the standpoint of implementing Company-wide risk management, including corporate ethics

・Formulate and execute audit plans that reflect changes in the business structure associated with NTT Com’s organizational restructuring

・Concentrate auditing resources in high-risk areas by stringently practicing risk-based auditing

・Establish preventive auditing

Within the Organization 10
16
Appropriate prevention and response to violations and misconduct

・Maintaining and operating points of contact that consulters and whistleblowers can safely contact as needed

・Ensuring thorough protection for individuals who report incidents

・Strengthen functions for following up on individuals who report incidents and individuals targeted in reports to make regular improvements

・Pursue open and highly interactive initiatives to raise the reliability of points of contact for internal reporting so that employees and others can consult with a sense of security

・Consider developing a platform (system) for operating points of contact for internal reporting

・Consider obtaining the whistleblowing compliance management system certification

・Planned and held trials for management review training and planned full-scale training

・Followed up on whistleblowers by conducting a corporate ethics survey to confirm how the contact point is being evaluated and to seek responses on other related issues

・Posted disciplinary action cases on the knowledge management portal, to be shared with Group companies in Japan

・Conducted a trial for the management review training targeting 7 members of the Compliance Committee secretariat and the Human Rights Education Department of the Human Resource Department

・Conducted a corporate ethics survey targeting employees of NTT Com’s 26 organizations and 15 Group companies in Japan as well as employees of partner companies (received approximately 15,000 responses)

★★★

・Implement training and education centered on measures for preventing workplace harassment (collaboration between the Human Rights Education Department of the Human Resource Department and the Compliance Committee secretariat)

・Strengthen efforts to raise awareness by conveying messages from top management and visualizing initiatives on compliance (open and two-way effort)

Within/
outside the Organization
Respect for Human Rights Raise awareness and establish respect for human rights throughout the Group Understand issues related to human rights awareness at NTT Communications and domestic Group companies as well as overseas Group companies to strengthen initiatives for raising human rights awareness as a global enterprise

・Strengthened and reconsidered human rights due diligence by reviewing and implementing action plans for overseas affiliates, based on the results of their human rights due diligence in fiscal 2018, and by sharing the plan among relevant affiliates

・Conducted a human rights management survey targeting affiliates in Japan

・Following the reorganization of the NTT Group in fiscal 2019, in which overseas affiliates became Group members of the NTT holding company, the responsibility of conducting human rights due diligence for the relevant overseas affiliates was transferred to the Shareholding Association

・Conducted a human rights management survey targeting affiliates in Japan (from January 2020

Conducted a human rights management survey with the participation of affiliates in Japan

★★ Analyze results of the human rights management survey targeting affiliates in Japan and identify issues Within the Organization
Appropriate prevention and response to human rights abuses Create a Companywide consultation and reporting mechanism capable
of preventing and appropriately responding to human rights abuses
Continue to operate and disseminate information on contact points that can effectively and sufficiently respond to consultations and report on diverse issues

・Raised awareness of the NTT Group Harassment Hotline set up in fiscal 2018 by covering the issue as a separate topic in the All-Employee Human Rights Education Training sessions; also continued sending information on other contact points via the monthly e-mail to all employees

・Set up a link to contact points for consultation and whistleblowing on the homepage of the knowledge management portal for access by all employees

Included a question about the functions of the contact points in the exam given during the All-Employee Human Rights Education Training, and 95% of respondents answered correctly

★★ Continue to operate contact points under remote working conditions to respond effectively and sufficiently to consultations and reports on diverse issues and communicate this information to employees Within/
outside the Organization
Promotion and stringent practice of respect for human rights through contents and services

・Contribute to raising human rights awareness in society by utilizing ICT

・Thoroughly eliminate elements from contents and services that appear to encourage human rights abuses

Protect children’s human rights by maintaining access restrictions for goo, and OCN services based on a list of child pornography website addresses provided by the ICSA Protect children’s human rights by maintaining access restrictions for goo, and OCN services based on a list of child pornography website addresses provided by the ICSA

・Number of queries received by the Human Rights Education Department: 0

・Number of access-restricted domains: 20

・goo: 300 child pornography website addresses added to the restricted access list per week

★★★ Protect children’s human rights by maintaining access restrictions for goo and OCN services based on a list of child pornography website addresses provided by the ICSA Within/
outside the Organization
Risk Management Continuous upgrades to risk management structure

・Business risks
- Develop a domestic and overseas management structure that enable consistently appropriate responses to environmental and social risk elements such as climate change and scarcity of resources, in addition to economic risk elements

・Crisis risks
- Develop BCP measures for promptly responding to pandemics and natural disasters

・Business risks: in light of global business reorganization, review and revise documents defining risks, with regard to risk management activities, and also upgrade risk scenarios

・Crisis risks: consider and implement measures for priority risks designated by the Business Risk Management Committee

・In light of the global business reorganization, the Business Risk Management Committee reviewed the documents defining risks; major risks anticipated with respect to the global reorganization did not materialize, allowing it to go forward as planned

・Meanwhile, with respect to business reorganization, focus remained on priority risks and equivalent management in light of the expanded scope of consumer service operations consigned to NTT Resonant, in addition to NTT Com’s business restructuring, as well as the impact of the COVID-19 pandemic

In doing so, the Business Risk Management Committee will meet twice a year, and a Business Risk Management Subcommittee will meet every month to quickly reflect the results of deliberations on risk management, improve the efficiency of sharing information, and maximize the effects

★★

・Address the COVID-19 pandemic by rapidly implementing practical risk management, including the review and revision of documents defining risks, based on experience and with due consideration to “new normal” lifestyles

・In doing so, the Business Risk Management Committee will meet twice a year, and a Business Risk Management Subcommittee will meet every month to quickly reflect the results of deliberations on risk management, improve the efficiency of sharing information, and maximize the effects

Within/
outside the Organization
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Ensuring Information Security Strengthening of Security Management Deploy various measures to strengthen security management based on collaboration with domestic Group companies as well as overseas Group companies

・Conduct system audits and information security audits for all corporate organizations in collaboration with the Legal and Internal Audit Department and System Department
- Conduct Companywide security training to raise awareness and limit occurrences of security incidents (attendance: 100%)

・Conduct Companywide security training to raise awareness and limit occurrences of security incidents (attendance: 100%)

・Conduct system audits and information security audits internally and on Group companies

・Conduct Companywide security training to raise awareness and limit occurrences of security incidents (attendance: 100%)
- Conducted paper audits and onsite audits in combination and provided feedback on audit results to all the target organizations

★★★

・Conduct Companywide security training to raise awareness and limit occurrences of security incidents (attendance: 100%)

・Continue conducting and developing system audits and information security audits

Within/
outside the Organization
9
11
Development of Security Specialists

・Develop security training to raise individual skills required for responding to security issues as ICT professionals

・Fiscal 2020 target: more than 2,400 people (advanced level: several people; intermediate level: 1,900; elementary level: 500 people)

Develop personnel who provide support to stationary daily operations (expand the scope and raise skill levels from no skills to the elementary level and from the elementary level to the intermediate level), develop personnel to support major events in 2020 and personnel capable of creating new businesses after the events

・Expanded the scope of activities by organizing NTT Communications CTF contests and concurrent study sessions

・Held focused and unified employee training for major events in 2020 under the Center of Excellence (CoE) framework

Number of personnel who qualified in fiscal 2019 Advanced
level: 3 new; 8 renewals
Intermediary level: 0 new
Elementary level: 215 new
★★★ Develop personnel who provide support to stationary daily operations (expand the scope and raise skill levels from no skills to the elementary level and from the elementary level to the intermediate level), develop personnel to support major events in 2021 and personnel (consultants, auditors, and others) capable of creating new businesses after the events Within the Organization
Appropriate Management of Personal Information Maintain a sharp sense of awareness concerning the importance of customer information and consistently develop advanced mechanisms based on cutting-edge technologies to prevent information leakage

Update internal rules and keep current with revisions in Japan’s Personal Information Protection Law as well as trends in personal information protection regulations in other countries

・Conducted a conformity audit between the Personal Information Protection Management System (PMS) and the Japanese Industrial Standards (JIS Q)

・Publicly commented on moves toward revising Japan’s Personal Information Protection Law

・Revised the guidelines on protection of customer information for the EU region in accordance with the establishment of the Supplementary Rules under the Act on the Protection of Personal Information for the Handling of Personal Data Transferred from the EU based on an Adequacy Decision .

・Revised the privacy policy to achieve consistency with the flow of customer service

★★★

・Prepare and respond to an upgrade application for the PrivacyMark

・Respond to the revision of Japan’s Personal Information Protection Law (follow parliamentary deliberations on the revision, consider policies in response to the content of revisions, implement individual responses)

Within/
outside the Organization

Achievement levels based on self-assessment ★★★: Target achieved ★★: Target almost achieved ★: Target only partially achieved

Fiscal 2018 Activity Results and Fiscal 2019 Targets

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