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Sustainability Management

Sustainability Promotion Structure and Governance, Risk Management, Strategy, Indicators, and Targets

Sustainability Promotion Structure

In the NTT Communications Group, the Sustainability Promotion Committee was established as a deliberating body to examine measures to address apparent and potential ESG-related social issues and to comprehensively, strategically, and precisely promote and manage sustainability activities. Chaired by the executive vice president in charge of CSR, the committee consists of the heads of each organization (executive officers, etc.) and the presidents of each Group company. Under the committee, we have set up the Environmental Protection Subcommittee. In addition, individual committees discuss key topics related to sustainability activities. In order to take appropriate actions in cooperation with these committees, we have established a system for promoting sustainability throughout the Group by sharing information and collaborating Groupwide.

Sustainability Promotion Structure

Sustainability Promotion Structure

Sustainability Promotion Committee Members and Secretariat

Sustainability Promotion Committee Members and Secretariat

* The Sustainability Office also promotes the environmental activities of the NTT Communications Group. It serves as the secretariat of the Global Environmental Protection Subcommittee and is also responsible for promoting activities of the DOCOMO Group and company collaboration, including the identification and consideration of risks and opportunities based on the TCFD and TNFD.

Governance

Under this sustainability promotion structure, matters reported and discussed by each committee are shared with the Board of Directors. After deliberation, the board makes final decisions for addressing issues and determining management strategies and business plans. In addition to the above role, the board complies with recommendations from the Board of Corporate Auditors and oversees the necessary governance to strategically and appropriately promote sustainability activities while linking sustainability evaluation to executive compensation.

Risk Management

We have established the Risk Management Rules, which stipulate the basic elements of risk management to help achieve sustainable corporate growth by anticipating and preventing the occurrence of potential risks that exist in and around our business and by minimizing any loss in the event they materialize. We are implementing the necessary actions through the lead organizations for Priority Activities. As a system and mechanism for effectively addressing major risks that may affect our business management, we set up the Business Risk Management Committee, chaired by the senior executive president, to construct and implement a PDCA cycle for risk management.
With regard to sustainability-related opportunities, the organizations in charge of the relevant Priority Activities are partnering with related organizations on initiatives based on the PDCA cycle by considering Main Initiatives and KPIs for evaluating their status, such as promoting CSV in response to business opportunities for creating value that will help address social issues and create a sustainable society while also taking into account internal and external, medium- to long-term trends and business visions in their respective fields of responsibility.
We will comprehensively and appropriately promote the sustainability activities of the NTT Communications Group, based on the implementation of proactive initiatives and management of social issues, risks, and business opportunities by each responsible organization. Under the promotion system and governance described above, the Sustainability Promotion Committee comprehensively adjusts and finalizes the Main Initiatives, KPIs, and Targets each fiscal year, in light of the latest domestic and international trends in ESG and our medium-term management strategy and policy. The level of achievement is verified, evaluated, summarized, and reflected in the formulation of the next year’s Main Initiatives and KPIs. In addition to these annual reviews of Main Initiatives and KPIs, the Sustainability Promotion Committee also reviews the Sustainability Policy and priority issues.
For details of the Sustainability Promotion Committee’s process for identifying materiality and setting Main Initiatives, KPIs, and Targets for each identified materiality, refer to “Process of Identifying Materiality and Setting Main Initiatives, KPIs, and Targets” on the next page.
As shown in the “Identified Sustainability Priority Activities” on the next page, the current Priority Activities consist of 12 items in the four Priority Areas of society, the environment, human resources, and governance.

Strategy

The NTT Communications Group has established the Main Initiatives to address current and potential social issues and their associated risks and business opportunities, for each of the four Priority Areas of society, the environment, human resources, and governance. To address hose initiatives in line with the Sustainability Policy, we will (1) enhance value chain partnerships, stakeholder engagement, and human capital, (2) extensively collaborate and co-create with our customers, partners, and various other stakeholders, and (3) further demonstrate the positive effects and minimize the negative impacts and risks on society associated with our business activities throughout the entire value chain. Through the combined impact of these efforts, we will seek to sustainably enhance our corporate value and strategically and precisely take action to realize a sustainable future.

KPIs, Targets

The following tables show the Priority Areas (society, the environment, human resources, and governance) of the Sustainability Policy, the main initiatives, key performance indicators (KPIs) and targets for fiscal 2022 for the Priority Activities, and the outcome of these activities (review, assessment, and targets) as well as the main initiatives, KPIs, and targets for fiscal 2023.

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