NTT Group's Material Issues

In revising our CSR Charter and reviewing the CSR Priority Activities, we took the following steps based on the principles and processes regarding material issues in the GRI Sustainability Reporting Standards 2016/2018/2019.

STEP1
Identify CSR Issues

We identified 41 CSR issues based on extensive consideration of various guidelines, including the GRI Sustainability Reporting Standards 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.

41 CSR Issues

STEP2
Assign 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.

Underlying Foundation of the Four Communication Activities

Reinforce corporate governance
Brand management
Ensure diversity of directors
Manage intellectual property
Appropriateness and transparency of directors' compensation
Determine materiality and manage PDCA cycle
Establish sustainability governance
Enhance reliability and disclosure of ESG data
Efforts to encourage long-term ownership of shares
Control negative incidents and disclose information
Risk Management
Engage with stakeholders
Formulate and comply with compliance guidelines
Participate in various initiatives

STEP3
Confirm 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 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 items were determined as new CSR Priority Activities.

CSR Priority Activities
- Contribute to society through ICT and data usage
- Pursue customer satisfaction
- Reinforce and globalize research and development
CSR Priority Activities
- Use ICT to contribute to the environment
- Reduce the environmental impact of business operations
- Effectively use resources
CSR Priority Activities
- Reinforce Information Security
- Personal Information Protection
- Ensure Stability and Reliability of Telecommunications Services
CSR Priority Activities
- Promote Diversity
- Respect for Human Rights
- Reinforce Value Chain Management
- Ensure Employee Safety
- Promote Health Management
- Create Attractive Workplaces
- Promote a United Group Effort on Social Contribution Activities

Achievements of CSR Priority Activities

NTT Group has established CSR Quantitative Indicators (KPI) based on the NTT Group CSR Priority Activities identified as material issues in order to promote CSR in a uniform manner across the entire Group.

Enrich Society

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CSR Priority Activities	Medium-term Targets	CSR Quantitative Indicators	KPI	Target Achievement FY
Contribute to society through ICT and data usage	Evolve into a B2B2X business model which uses digital services and data management	Number of B2B2X projects	100 projects	FY2021
	Leverage the characteristics of 5G to create new value with a broad range of partners	5G service-related indicators^*1	To be set at the commercialization stage
	Promote personalization to support changing lifestyles	Number of places where payments can be made and points can be used^*1	Two million places	FY2021
	Provide ICT services available for a broad range of customers, including the elderly and persons with disabilities	Number of UD-capable products and services provided	Expand	-
Pursue customer satisfaction	Provide high value-added products and services and fine-tuned support	Reductions in waiting and customer service times at DOCOMO shops^*1	Decrease by half compared to FY2018 (over 2 hours on average)	-
		Number of improvements made based on suggestions from customers	More than in the previous fiscal year	-
		Response rates at our call centers	Better than in the previous fiscal year	-
Reinforce and globalize research and development	Globalize and expand the competitiveness of research and development to generate world bests, world firsts, and amazing results	Number of patent applications	More than in the previous fiscal year	-
		Number of academic papers published outside the company	More than in the previous fiscal year	-
		Number of successful practical applications^*1	More than in the previous fiscal year	-

Protect Environment

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CSR Priority Activities	Medium-term Targets	CSR Quantitative Indicators	KPI	Target Achievement FY
Use ICT to contribute to the environment	While reducing CO₂ emissions of the Company, contribute to the reduction of CO₂ emissions of all society, including value chains, through the use of ICT	Amount of contribution to the reduction of CO₂ emissions of all society	At least 10 times the Company's emissions	FY2030
Reduce the environmental impact of business operations	Improve the ratio of renewable energy usage by developing renewable energy sources and promoting the active use of renewable energy by the Company	Renewable energy usage ratio for the Company^*2	30% or higher	FY2030
	Improve power efficiency to reduce the environmental impact of business operations	Power efficiency of communications services (power efficiency per data transmission)	At least 10 times higher than in FY2013	FY2030
			At least two times higher than in FY2017^*1	FY2025
		Ratio of EV adoption in Japan^*1	100%	FY2031
		Ratio of EV adoption in Japan^*1	50%	FY2026
Effectively use resources	Control the final disposal ratio of waste and work toward the effective use of resources	Final disposal ratio of waste	1% or below	FY2030

Safety and Security

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CSR Priority Activities	Medium-term Targets	CSR Quantitative Indicators	KPI	Target Achievement FY
Reinforce information security	Suspension of telecommunications services due to cyber attacks from the outside^*2	Number of service suspensions	0	2020
Reinforce information security	Number of incidents of personal information leaks due to cyber attacks from the outside^*2	Number of incidents of personal information leaks	0	2020
Personal information protection	Zero incidents of personal information leaks	NNumber of incidents of personal information leaks	0	-
Ensure stability and reliability of telecommunications services	Provide stable telecommunications services free of major communications problems	Stable service provision rate	99.99%	-
		Number of major accidents	0	-

United NTT

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CSR Priority Activities	Medium-term Targets	CSR Quantitative Indicators		KPI	Target Achievement FY
Promote diversity	Aggressively promote the active participation of women	Ratio of female managers		10%^*3	FY2025
Promote diversity	Expand employment of people with disabilities	Employment rate of people with disabilities^*4,5		2.3%^*3	-
Respect for 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	-
Respect for human rights		Percentage of participation in training concerning human rights^*6		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	-
Ensure employee safety	Enhance safety measures and the safety mindset of employees in order to prevent accidents causing injury or death and industrial accidents	Number of industrial accidents		0	-
Ensure employee safety		Number of accidents causing injury or death during construction work^*7		0	-
Promote health management	Create an environment that raises each individual employee's motivation and dynamism while enabling them to continue to work healthily and energetically	Implementation rate of specified health guidance^*3		17.5% or below	-
Promote health management		Completion rate or specified health guidance		37%^*3	-
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	Number of times employees participated in social contribution activities		More than in the previous fiscal year	-
	Employees actively participate in volunteer activities		Number of times employees participated in activities through the Group's internal volunteer site^*1 [Number of people registered]	2,000/year [10,000]	－ [FY2020]