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The NTT Group views one of its core roles as helping to resolve environmental issues that society faces, and is continuing its existing activities aimed at reducing greenhouse gas emissions. There are increasingly high hopes that the ICT sector will be able to help resolve environmental issues, and this has been outlined in the Paris Agreement. The NTT Group remains committed to measures that utilize ICT services and cutting-edge technology to reduce greenhouse gas emissions.
The NTT Group is committed to initiatives that reduce greenhouse gas emissions throughout its business activities and society as a whole, by rolling out IOWN technology and increasing development and use of renewable energy sources.
The NTT Group is pushing ahead with research and development aimed at curbing climate change, encouraging employees to take part in nature conservation activities, increasing awareness inside and outside the group of its activities that help improve the environment, and many other activities to contribute to a reduction in greenhouse gas emissions throughout society as a whole.
The NTT Group is committed to improving the energy efficiency of its operations (EP100) *1
2025: Power efficiency (compared to FY2017)
Electricity consumption accounts for over 90% of greenhouse gas emissions of NTT Group's business activities--the Group consumes the equivalent of 1% of the power generation throughout all of Japan.
To combat this, the NTT Group has been working on Group-wide energy conservation activities dubbed the "TPR (Total Power Revolution) Campaign." By promoting efficient energy management at buildings owned by NTT and installing energy-efficient electrical power units, air conditioning systems and telecommunications equipment, we managed to continue to reduce electricity usage across the NTT Group by approximately 180 million kWh from projected levels in fiscal 2021.
Furthermore, the NTT Group is pushing for greater electricity usage efficiency with the aim of reducing the risk of business disruptions and helping to mitigate climate change. The fiscal 2025 target for power efficiency per data transmission in our telecommunications business, including data centers, has been set to double that of fiscal 2017. An efficiency of 1.9-times was achieved in fiscal 2021.
NTT Communications offers data centers with a PUE*2 of less than 1.2, and NTT COMWARE offers data centers with a PUE of less than 1.1, which are at the top worldwide for energy efficiency. We are striving to enhance PUE for our other data centers as well, introducing five-star equipment with the highest level of energy efficiency in accordance with the NTT Group Energy Efficiency Guidelines. NTT FACILITIES has been developing technology for reducing the electricity consumption of data centers by incorporating higher efficiency technology for electrical power units and air conditioning systems as well as central air conditioning control systems.
NTT is a member of the Telecommunications Carrier Association (TCA) and in that capacity, participates in the ICT Ecology Guideline Council*3, an organization that seeks to enhance the energy efficiency of telecommunications- related products. The council formulates guidelines on the criteria for evaluating the energy efficiency of telecommunications devices, and NTT has contributed to the technical aspect of this effort. The NTT Group's Energy Efficiency Guidelines are based on the guidelines created by this council. In August 2010, eight NTT Group companies*4 acquired the Eco ICT Logo on submitting self-evaluations of their CO2 emissions reduction efforts, including the establishment of Energy Efficiency Guidelines.
The Eco ICT Logo was created by the ICT Ecology Guideline Council to signify efforts by telecommunications service providers to reduce CO2 emissions. We will continue to drive the development and procurement of energy-efficient equipment, and work with the ICT Ecology Guideline Council to help bring both vendors and carriers together to promote the industry- wide procurement of energy-efficient equipment. We will ensure that vendors are consistently provided with requirements for NTT Group specification processes, and include energy efficiency information disclosure and our corporate stance on energy efficiency in our criteria for selecting vendors.
ICT Ecology Guideline Council (Japanese only)
NTT DOCOMO is developing technology that lowers power consumption of communication networks and is rolling out equipment that reduces power consumption. It is achieving this with efforts like developing more advanced sleep functions for base stations and installing air-conditioning control systems equipped with self-learning functions and actively rolling out 5G power-saving devices. Additional approaches include consolidating base station equipment and using power supplied directly from high-voltage direct current equipment with lower transmission losses.
The amount of annual energy consumption by the NTT Group is said to be some 1% of the total power consumption throughout all of Japan, and data centers use a significant ratio of this amount. To achieve improved level of energy conservation at data centers, the NTT Network Innovation Center is involved in R&D of PADAC, short for Power-Aware Dynamic Allocation Controllers. PADAC is a type of technology that helps to conserve energy use by employing software to control server resources at data centers. A simple way to illustrates this is that servers are much like any other household appliance--the newer it is, the more energy efficient.
In the past, half of the servers were modern units operating alongside old servers, but using each type for different purposes depending on particular usage situations is likely to bring energy savings. Actual conditions are naturally more complex, so we are seeking to control them using software to achieve the best balance of each parameter like compatibility between devices and applications, temperature, and utilization rate. When I joined the project, our first step was to gather all the technical theories available from throughout the company and examine them closely. Yet things are not likely to proceed smoothly if each project member were to simply bring together the type of technologies they want, even if they featured the same topic of "software for controlling server resources."
My research colleagues often had different opinions, but the project still went smoothly thanks to the common culture that all NTT researchers possess. Traditionally, the NTT Group never compromises when it comes to quality. Yet a key trait of NTT's laboratories is that any topic being discussed is solidly based on by science. This means that no matter who you are talking to, you can have a true one-onone discussion with any researcher here. This may seem obvious, but it is a very important point to note. If a supervisor suggests doing something a particular way, it is perfectly acceptable to say: "I don't think so."
After much discussion and trial and error, we managed to come up with a pattern capable of controlling server resources at a high level of power efficiency. Right now we are finalizing the technology we have developed by filing patents and writing papers, and we are also moving ahead with running a prototype as a proof-of-concept model.
Technology developed at the center has no real social significance unless it is actually put to use. I hope to work with various NTT Group companies and outside affiliates to see PADAC in action in numerous situations in the future as a way of contributing to carbon neutrality.
The reduction in power consumption resulting from rolling out IOWN will help reduce greenhouse gas emissions throughout the NTT Group's its business activities and society as a whole
Reduce power consumption with the introduction of IOWN, and reduce the NTT Group's greenhouse gas emissions *1 compared to outcome.
※1GHG Protocol: for Scope 1 and 2
There is urgent need to create a society that can cope with global environmental changes such as climate change, major disasters, and pandemics. Developing next-generation energy technologies and technologies to enable resilient environmental adaptation will reduce the burden placed on the global environment and thereby prevent environmental destruction, opening the door to a sustainable society in which humans can continue to live in harmony with the environment. The NTT Group is committed to initiatives that reduce power consumption emissions throughout its business activities and society as a whole, by rolling out IOWN technology and increasing development and use of renewable energy sources.
The development of ICT has dramatically increased the volume of information being transmitted through networks. Up to now, energy has been saved by enhancing power efficiency through the introduction and renewal of highly energy-efficient telecommunications equipment. However, the performance and efficiency of integrated circuit technology which has grown in line with Moore's law, is thought to be approaching its limits in terms of speed and energy consumption due to the restrictions of nanoscale fabrication and integration density. NTT Laboratories is advancing research and development that incorporates optical technology into signal processing with the aim of using photonics to realize a base for a new kind of computing. This has resulted in the development of a modulator with the lowest ever reported energy consumption and an optical transistor which transfers a high-speed optical signal to another light with gain (announced in April 2019).
The NTT Group is advancing the development of photonic technology and we have established the IOWN (Innovative Optical & Wireless Network) concept as one of the pillars of an all-photonic network that incorporates photonic-based technology throughout entire networks, including terminals. The target of this all-photonic network will be to realize power efficiency that is 100 times greater in areas where photonics technology is applied, and we expect it will radically reduce energy consumption. We are collaborating with global partners and specialists in a wide range of research and technological fields with the aim of realizing the IOWN concept.
Higher efficiency and lower power consumption using light
Conservation of the global environment and development of a sustainable society is the management theme of countless companies. The use of the NTT Group's next-generation communication platform "IOWN" for various ICT services used at customer companies not only helps to support these initiatives, but using IOWN extensively throughout NTT Communications' data centers, networks, and other infrastructure will lead to energy sav-ings, paving the way to achieve carbon neutrality at data centers and networks by fiscal 2030.
The NTT Group highlighted to the Japanese government the benefits of using its IOWN advanced technology, as a cutting edge communications infrastructure with major future potential for developing businesses in a wide range of fields. Rolling out IOWN to reduce power consumption and help achieve carbon neutrality provides Japan with a significant opportunity to lead the world in this sector.
NTT R&D is envisaging the arrival of new smart societies that are not yet possible with today's Internet, with features such as mobility as a service (MaaS) for extreme fail-safe systems and entertainment services offering deep immersion. To realize such smart societies, we will require innovation that cannot be achieved merely by extending the trajectory of current technologies; we will need to realize ultra-low power consumption, high-speed signal processing, and the fusion of virtual worlds that can equal or surpass reality with sophisticated prediction technologies. The NTT Group has proposed the Innovative Optical and Wireless Network (IOWN) concept to realize new smart societies, and we are committed to realizing this concept.
In January 2020, the IOWN Global Forum was established in the United States by industry leaders NTT, Intel Corporation, and Sony Corporation, all three of which have superior expertise in the technological areas that form the core of IOWN. Wide-ranging recruitment efforts began in March 2020, with many companies both in Japan and overseas signing up as members, and specific technological considerations commenced through the use of online video conferencing. Going forward, we will work with a variety of partners for the earliest possible implementation of the IOWN concept.
The Cognitive Foundation is a mechanism that centralizes management, operation, deployment, setting, and interlinking of ICT resources in different layers such as edge computers, network services, and user equipment, all from the cloud.
Technology development roadmap for realizing the IOWN concept
NTT proposes the "Digital Twin Computing Initiative"
Photonics technology is applied not only to networks but also to information processing to achieve large-capacity, ultra-low power consumption and ultra-highspeed data transmission that had been difficult in the past. We can provide multiple functions that serve as the backbones of social infrastructure without mutual interference by assigning a function to each wavelength on a single optical fiber.
We combine highly precise digital information reflecting real-world objects, such as things, people and societies, to achieve large-scale, high-accuracy predictions and simulations of the future, and enable extremely advanced, real-time interactions between things and people in cyberspace.
By using light as a means for transmitting signals inside the processors that perform information processing and calculations inside a computer, we hope to create a hybrid opto-electrical processor that will solve problems that arise with electrical processing, such as power consumption and increase in heat emission, and realize ultra-low power consumption and high-performance information processing. We have realized ultra-compact photo-electric conversion elements such as an optical transistor that uses nano-photonics technology.
To conduct a comparative time experiment by connecting several optical lattice clocks that are more precise than atomic clocks, the current standard for measuring seconds, we used the optical fiber network of NTT East for an optical frequency transmission experiment with the University of Tokyo. As a result, the required frequency precision for the comparative experiment was achieved, representing a major step toward conducting the experiment.
Increasing the capacity of mission-critical optical fiber communication networks has become an economic necessity. We have developed new proprietary technology for digital signal processing and ultra-wide area optical devices, increasing the channel capacity per wavelength to the point that transmission speeds achieve a level more than 10 times that of current commercial systems, and achieving a global first of 1 Tbps of capacity in long-distance wavelength-division multiplexed transmission trials. Furthermore, we also succeeded in developing an ultra-high-speed compact optical front-end module with integrated compact, wide-band InP optical modulator.
As another accomplishment, we realized high capacity wireless transmissions at approximately 10 times the speed of LTE and Wi-Fi, and five times that of 5G, by using the following two technologies.
The first one enables wireless transmissions at rates of 100 Gbps by using a method devised by NTT combining a principle called "OAM multiplexing" with MIMO technology.
This generates multiple radio waves of different frequencies so that they can transmit simultaneously without interfering with the each other. The result is a dramatic increase in the volume of data that can be transmitted simultaneously, enabling large-capacity communications.
The second one, which was jointly developed with the National University Corporation Tokyo Institute of Technology, enables wireless transmissions of 100 Gbps in the 300 GHz band. It is easier to expand the transmission bandwidth or terahertz waves, including the 300 GHz band, although they require high-performance devices. We developed an ultra-high-speed integrated chip (IC) for wireless frontend devices, leading to the world's first 100 Gbps wireless transmission in the 300 GHz band.
As Moore's law approaches its limit in electronic circuits, there are expectations for a new, high-speed, energy-saving computing platform that incorporates optical technology. Achieving this requires technologies that have hitherto been considered difficult to achieve with low energy consumption, such as opto- electronic signal conversion and high-speed signal processing in the optical area.
NTT has been developing a semiconductor nanostructure called photonic crystals with which to realize various tiny optical devices. In this work, we used our nanotechnology to realize a nano electro-optic modulator (E-O converter) and a nano photodetector (O-E converter) with extremely small capacitance and low energy consumption.Moreover, through their integration, we also realized an O-E-O conversion optical transistor. These nano-optical technologies have opened the way to realizing high-speed, low-energy integrated opto-electronic information processing.
Developing and promoting greater use of renewable energy
Increase the use of renewable energy, and reduce the NTT Group's greenhouse gas emissions*1 compared to outcome*2.
The NTT Group is increasing its use of renewable energy* 3 as part of efforts to achieve its Environment and Energy Vision. The NTT Group is pushing ahead with development of renewable energy sources with the aim of generating around half of its renewable energy target from its own facilities by fiscal 2030.
During fiscal 2021, a total of 1.8 billion kWh of power consumed (or 23% of power consumption, around 150% year-on-year) throughout the entire NTT Group was switched over to renewable energy sources.
In 2020, the NTT Holdings head office and four facilities of NTT Laboratories made the switch to effectively 100% renewable energy*4. As of April 2022, 132 buildings of the NTT East Group including the Hatsudai Building, 325 buildings of the NTT West Group, and 55 buildings of the NTT DOCOMO Group were among those that have already switched to renewable energy.
Renewable energy like solar power, wind power, geothermal, and biomass do not generate greenhouse gases when producing power, an advantage that makes developing and expanding the use of renewable energy an essential part of initiatives aimed at achieving a decarbonized society. The NTT Group established NTT Anode Energy in June 2019 with the aim of delivering smart energy solutions that leverage the technology, expertise, and resources of the NTT Group. Focused on achieving a decarbonized society and the promotion of local energy production for local consumption, NTT Anode Energy operates on three core approaches: (1) Providing customers with green energy solutions; (2) Promoting NTT's own decarbonization efforts; and (3) Utilizing battery farms to increase use of renewable energy.
NTT Anode Energy is working together with various partners to develop renewable energy power plants in order to meet the green energy requirements of NTT Group companies. With a primary focus on sustainability, the company advancing development that takes into consideration ecosystems and living environments.
By utilizing an off-site corporate PPA*5 mechanism, power derived from renewable energy, procured from NTT Anode Energy's newly constructed solar power plant, is being supplied into the NTT DOCOMO Okayama Building, which houses network facilities.
Greenhouse gas emissions at the NTT DOCOMO Okayama Building, where the new system will be installed, are expected to be reduced by approximately 10,000 tons per year (including non-fossil fuel certificates).
※3Includes actual renewable energy through non-fossil fuel certificates.
※4Refers to power generated from actual renewable energy that includes specified renewable energy through non-fossil fuel certificates.
※5Japan's first off-site corporate PPA scheme, which involves business operators building renewable energy power plants in locations removed from users for use exclusively by specified consumers, such as companies or municipalities, and supplying these users with electricity via the power grid over the long term.
Together with the development of renewable energy sources, the NTT Group is also expanding its concept of local energy production for local consumption to stabilize the power grid, by charging and discharging its constructed battery farms.
There are some 7,300 NTT buildings located around Japan, housing around 4 million kWh of battery storage capacity that the NTT Group uses to maintain communications in the event of power outages. The group will develop battery farm operations around Japan by utilizing these battery farms to increase the use of renewable energy and help stabilize the power grid. With these businesses, NTT Anode Energy will partner with subsidiaries ENNET and NTT Smile Energy to help overcome various challenges on the way to developing a carbon-free environment for all of society. This is achieved through a corporate PPA (Power Purchase Agreement), where customers use the electrical power generated from renewable energy power plants constructed on their sites or in remote locations.
Leading companies focus on the "Additionality" concept, where companies are encouraged to make investments in renewable energy projects as their selected source of financing, as a way of displacing the use of fossil fuels. NTT Anode Energy projects comply with the "Additionality" framework, so customers are able to use power generated from renewable energy via a corporate PPA.
In a joint project with Seven & i, NTT Anode Energy began powering 40 Seven- Eleven stores and the Ario Kameari shopping center completely with renewable energy. NTT Anode Energy supplies electricity via the power grid from two solar power plants established through an off-site corporate PPA*1. The NTT Group's green power plants are used to cover any shortfall in power supply.
※1Japan's first off-site corporate PPA scheme, which involves business operators building renewable energy power plants in locations removed from users for use exclusively by specified consumers, such as companies or municipalities, and supplying these users with electricity via the power grid over the long term.
NTT Anode Energy is taking part in a woody biomass power generation project (Ikoma Project) operating in Ikoma City in Nara Prefecture, Japan. The Ikoma Project involves the construction and operation of a 9,980 kW-scale power plant that uses around 100,000 tons of wood-derived fuel to generate 81 million kWh of power annually. The fuel used to generate power with this project is wood waste and unused wood collected from around the Kinki region, providing a supply of locally produced and local consumed power, including fuel for power generation, to customers in the Kinki region. Around 75% of the power generated is non-FIT that does not fall under FIT systems; the supply of carbon-zero electricity helps to create a carbon-free society.
NTT Anode Energy and the Yamaguchi Branch of NTT West joined forces to begin supplying green electricity to the Hirakawa Regional Exchange Center and the Ootoshi Regional Exchange Center in Yamaguchi City via NTT Anode Energy. Renewable energy equipment--solar panels and battery storage systems--have been installed at both centers to supply power during normal conditions as well as for specific uses during power outages (such as lighting, wireless disaster warning systems, computers, and communication equipment), which helps to boost resiliency at evacuation facilities.
ICT is also in use for visualizing the characteristics like the amount of power generated, weather information, on-site usage ratio, battery level, and the amount of power generated and consumed on-site. This data is not only available at the site, but can also be viewed at the main government building and other remote locations. Efforts will continue to be made to resolve local issues through joint studies on the "Smart Energy Utilization Project" that makes use of renewable energy and ICT, as a part of the project to develop Yamaguchi City as a smart city.
Promoting the provision of new services that contribute to carbon neutrality
Provide new services designed with the environment in mind, such as the development of services that use renewable energy, and visualization of the reduction in greenhouse gas emissions.
In addition to the Green of ICT, which will curb the environmental impact of NTT Group by introducing IOWN technologies and increasing the use of renewable energy, we will also work on Green by ICT, which will contribute to reducing the environmental impact of society as a whole.
In September 2021, NTT DOCOMO announced "2030 Carbon Neutral Declaration," committing to the reduction of the greenhouse gas emissions arising from its business activities effectively to zero by 2030.
In addition to its own business activities, DOCOMO has devised the slogan "Saving Our Planet With You" to help achieve carbon neutrality throughout the whole of society, together with its customers and partner companies. DOCOMO provides Green 5G as part of its service aimed at achieving carbon neutrality.
While the power used to recharge smartphones and other mobile devices may be the first thing one thinks of when it comes to the power that these devices use, a significant amount of power is actually consumed by mobile network communications that operate base stations and exchanges.
The majority of electricity in Japan still uses fossil fuels for power generation, thus resulting in greenhouse gas emissions like CO2 that is one of the causes of global warming. DOCOMO is making the switch to power sources free of greenhouse gas emissions, by using solar-powered green base stations and renewable energy (corporate PPA*1) generated by solar panels installed specifically for DOCOMO.The ratio of actual renewable energy*2 out of DOCOMO's total power consumption is higher than the ratio of 5G subscribers out of the total number of subscribers, which means the Green 5G service is provided effectively free of greenhouse gas emissions.
In September 2021, NTT DOCOMO announced "2030 Carbon Neutral Declaration," committing to the reduction of the greenhouse gas emissions arising from its business activities effectively to zero by 2030. In addition to its own business activities, DOCOMO has devised the slogan "Saving Our Planet With You" to help achieve carbon neutrality throughout the whole of society, together with its customers and partner companies. DOCOMO provides Green 5G as part of its service aimed at achieving carbon neutrality.
While the power used to recharge smartphones and other mobile devices may be the first thing one thinks of when it comes to the power that these devices use, a significant amount of power is actually consumed by mobile network communications that operate base stations and exchanges.
The majority of electricity in Japan still uses fossil fuels for power generation, thus resulting in greenhouse gas emissions like CO2 that is one of the causes of global warming. DOCOMO is making the switch to power sources free of greenhouse gas emissions, by using solar-powered green base stations and renewable energy (corporate PPA*1) generated by solar panels installed specifically for DOCOMO.
The ratio of actual renewable energy*2 out of DOCOMO's total power consumption is higher than the ratio of 5G subscribers out of the total number of subscribers, which means the Green 5G service is provided effectively free of greenhouse gas emissions.
Emissions data and sales figures provided by global non-governmental organization CDP are used to calculate emissions intensity for each company. NTT DATA is the only company in Japan licensed to use CDP's corporate emissions data.
Creation of innovative environmental energy technology for reducing global environmental impact
Promoting the creation of innovation with next-generation energy technologies.
The NTT Group is creating innovative technologies aimed at addressing a range of issues related to the environment and energy such as climate change. In July 2020, we established the NTT Space Environment and Energy Laboratories for regenerating the global environment and achieving a sustainable and inclusive society. We will create technologies that will drive innovation in the field of smart energy, including next-generation energy, and for the future of the global environment.
Indoor direct-current power supply technology--a field that the NTT Group excels at--is being developed for outdoor use with the aim of achieving a high-resilience, autonomous, decentralized, and coordinated energy network to link NTT buildings and consumers in the surrounding area with direct current supply, for a flexible and efficient power supply system that is also reliable when disasters strike. Research is being conducted into technology that simulates information on energy demand, generation and storage capacities in cyberspace in an integrated manner, and applies the optimal figures to control the actual grid and achieve an ideal balance between supply and demand.
Another field of study is focusing on technology for the spatial and temporal reallocation of communications traffic between multiple regions or calculations and other information processing capabilities for more efficient use of renewable energy, which is prone to fluctuations due to weather conditions.
Practical applications of technology that reduces CO2 in the atmosphere or water are being developed, covering artificial photosynthesis (based on an electrochemical approach) achieved with semiconductor technology and catalyst technology, as well as technology that maximizes the capabilities of plants and algae (based on a biological approach).
The electrochemical approach utilizes materials informatics to test combinations of materials that would not have been possible to discover using traditional experimental techniques or existing concepts. The biological approach involves research using digital twins, where various cultivation environments are recreated in cyberspace to test the effects of genome editing or climate control, before applying them to the real world for additional testing.
We are focusing our efforts on research topics enabling society to take a proactive stance and adapt physically to extreme weather or environmental conditions. Lighting is an example of research being conducted on weather control.
We have developed advanced technologies as a means of protecting communications facilities from lightning strikes, and we are now expanding our research in this field to develop lightning control and lightning charging technologies.
More specifically, this research involves high-precision forecasting of areas prone to lightning strikes, employing lightning control technology so that drones trigger lightning strikes, and then lightning charging technology to store the energy from that lightning. The future goal is to develop floating lightning energy absorption systems that operate autonomously using natural energy including that from lightning strikes to absorb energy before the lightning strikes the ground.
NTT has teamed up with Euglena Co., Ltd. to begin a proof-of-concept for seaweed growth technology aimed at resolving climate change-related challenges by using neutron beams*1 to reduce greenhouse gases or create energy resources. The technology showcased with this proof-of-concept uses neutron beam irradiation to trigger genetic mutation*3 for increasing the useful characteristics*2 of algae, such as its CO2 (carbon dioxide) absorption and fixation potential and ability to produce oils that form the raw material of biofuels. Neutron beams have a much higher level of permeability than other types of radiation, and can provide an effective and irregular form of energy required for living organisms growing in liquids, like algae. Selecting and irradiating with suitable thermal neutrons or high-energy neutrons enable various forms of genetic mutation to occur, which will make it possible to grow and produce algae that is more usable, and more suited to particular applications. And in addition to reducing greenhouse gases or producing energy resources, the technology is hoped to play a role addressing various other climate change-related issues, with solutions involving the creation of food sources or agricultural, forestry and fisheries-derived feed.
The NTT Group has released the "NTT Group Guidelines for Sustainability in Supply Chain" outlining various areas that we require all parties throughout our supply chain to comply with, as part of efforts to develop and achieve a supply chain free from social problems like human rights violations, environmental concerns and safety issues. These guidelines contain the responsibilities that each company in the supply chain should be taking in order to achieve a sustainable society.
The "NTT Group Green Procurement Standards" has been released to cover environmental-related details outlined in the "NTT Group Guidelines for Sustainability in Supply Chain." These standards provide an outline of the NTT Group's environmental activities, and include areas and laws that suppliers must follow, reference and strive to achieve, as well as items covering procurement assessments for products and suppliers. This document applies to NTT Group companies, including those overseas.
We assess environmental and other risks by conducting the Supply Chain Sustainability Survey (SAQ) using the Supply Chain Sustainability Promotion Check Sheet to confirm the status of compliance with environmental and other guidelines and technical requirements. The survey targets all of the NTT Group's critical suppliers that account for at least 90% of total procurement value, supplier of non-substitutable products and supplier of important products. From fiscal 2022, we have started holding "direct dialog" every year with 40 to 50 companies covered by the SAQ.
In fiscal 2021, NTT ran a sustainability survey for around 130 suppliers with the aim of assessing and identifying environmental and other risks throughout the entire supply chain. The survey covers 25 environmental- related items such as regulation and administrative reporting, management methods, and energy-saving and decarbonization initiatives.
[Examples of survey items]
Tell us about your activities aimed at reducing greenhouse gas emissions.
The NTT Group was praised for its efforts aimed at reducing CO2 emissions throughout its entire supply chain, and has been selected as the highest "Supplier Engagement Leader" in the "Supplier Engagement Survey*" run by CDP, an international non-governmental organization assessing environmental-related matters.
Supplier Engagement Survey: Assesses company supply chain activities that affect climate change. Companies assessed with the highest ratings are selected as "Supplier Engagement Leaders."
NTT Group has formulated the NTT Group Green Finance Framework with the goal of strengthening its commitment to Group-wide efforts to achieve a sustainable society and promoting them vigorously, including from a financial perspective. Since its establishment in June 2020 as the NTT Group Green Bond Framework, this framework has been revised in accordance with the Group's initiatives for making a sustainable society a reality.
NTT FINANCE, the Group's core financial company, will issue green bonds or procure funds through green loans in accordance with the Green Finance Framework.
The funds raised will be invested in projects that contribute to solving environmental issues at Group companies.
When raising funds, NTT FINANCE will evaluate and select investment projects based on conformity with the NTT Group Sustainability Charter. It will also centrally manage procured funds and confirm their appropriation for projects. The Group will report annually on the allocation of funds and the project's environmental impact. The Green Finance Framework as well as Fund Allocation Status Reporting and Impact Reporting are available on the NTT FINANCE website.
（ https://www.ntt-finance.co.jp/eng/ir/greenbonds/index.html ）
■Green Bond Issuance Status
■Green Finance Framework Target Projects
Ensuring the coexistence of nature and humanity