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Feature 1: Environment and Energy Vision
―Achieving carbon neutrality―
In September 2021, the NTT Group unveiled its new environment and energy vision, "NTT Green Innovation toward 2040" for achieving "zero environmental impact" while continuing "economic growth" by reducing the environmental impact of its business activities and creating breakthrough innovation, with the aim of creating a well-being society and boosting corporate value through ESG initiatives. NTT will aim to achieve carbon neutrality by fiscal 2040 based on this vision.
NTT has set targets for groupwide carbon neutrality by fiscal 2040 on its way to achieving zero environmental impact. The mobility communications (NTT DOCOMO) and data center business will be the first within the NTT Group to achieve carbon neutrality, as targets have been set to reduce greenhouse gas emissions by 80% of fiscal 2013 levels, by the fiscal year ending March 31, 2031. This target was approved as the 1.5°C level by SBT in December 2021.
Scope of reduction targets GHG protocol: Scope 1 (own direct emissions of GHG) and Scope 2 (indirect emissions from using electricity, heat and steam supplied by other companies) Mobile: 15 companies in NTT DOCOMO Group (as of September 28, 2021)
Key Initiatives Toward Carbon Neutrality
With the current situation, data traffic will increase significantly, leading to an increase in energy consumption and thus greater greenhouse gas emissions. In order to achieve carbon neutrality, IOWN will be rolled out to reduce energy consumption, increase the use of renewable energy sources, and cut down on greenhouse gas emissions.
- GHG Protocol: for Scope 1 and 2
- Estimated Introduction of Renewable Energy (including actual renewable energy through Non-Fossil Fuel Certificates)
→ FY2020, 1.0 billion kWh; FY2030 to FY2040, around 7.0 billion kWh. The introduction of renewable energy will have the optimal types of energy determined on the basis of each country's energy composition, etc.
Approximately half of the domestic renewable energy usage is anticipated to be from energy sources owned by NTT (FY2030). - Estimated Reduction of Energy Consumption through the Introduction of IOWN (Comparison to Outcome).
→ FY2030, (2.0) billion kWh ((15)%); FY2040, (7.0) billion kWh ((45)%) Percentage of Introduction of IOWN (Photonics-electronics Convergence Technologies, etc.) out of Total Energy Volume
→ FY2030, 15%; FY2040, 45%
FY2021/2022 Initiative Highlights
Of the total power consumption during fiscal 2021, switching to renewable energy sources for more than 1.8 billion kWh (approx. 23% of power consumption, approx. 150% compared year-on-year) used by the entire Group resulted in greenhouse gas emissions of 2.90 million tons, a reduction. of 38% compared to FY2013 levels.
Integrating Power-related Operations to Accelerate Expansion of Smart Energy Business
In July 2022, NTT FACILITIES' power engineering and other power-related operations, primarily design and maintenance of solar power plants and power supply facilities for telecommunications, were transferred and integrated into NTT ANODE ENERGY. Through this integration of power-related operations, NTT Anode Energy will promote four businesses: the green power generation business, regional grid business, consumer energy business, and construction and maintenance operations business. By linking these four businesses into a single integrated value chain, the company will develop a smart energy business.
Overview of NTT Anode Energy's Post-integration Smart Energy Business
・ Green Power Generation Business: Development of renewable energy power plants
・ Regional Grid Business: Promote expansion of the use of NTT Group's assets to enhance local production and consumption of renewable energy and resilience
・ Customer Energy Business: Promote carbon neutrality among customers by offering decarbonization solutions
・ Construction/Maintenance Operations Business: Aim to improve quality and efficiency by enhancing power engineering functions (construction, maintenance, and monitoring)
NTT Group
Introduction of Internal Carbon Pricing System
To achieve carbon neutrality, a resolution was passed at the Executive Committee meeting in May 2022 to gradually implement an "Internal Carbon Pricing System" within Group companies. This system encourages reducing our impact on the environment by virtually converting CO2 emissions into costs.
Overview of Internal Carbon Pricing System implemented by the NTT Group
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.
FY2021/2022 Initiative Highlights
docomo Denki Green
A service lineup that began supplying "docomo Denki™" from March 2022 as a distributor harnessing its partnership with NTT Anode Energy. One of the plans, "docomo Denki Green," makes full use of renewable energy sources* for its supply, helping to achieve carbon neutrality throughout society as a whole.
* Renewable energy sources include the use of specified non-fossil fuel certificates.
NTT Communications is the first in Japan to offer*1 a renewable energy menu that enables customers (subscribers who use cages or rooms) to select the electricity used by their ICT equipment*2 for largescale commercial data centers utilizing renewable energy supplied by NTT Anode Energy. In addition, information on the power plant and the amount of electricity used will be provided on an individual basis as a type of "environmental value" utilizing non-fossil certificates*3.
【Target Data Centers】（as of April 2022）
Yokohama Data Center No. 1, Saitama Data Center No. 1, Tokyo Data Center No. 5, Tokyo Data Center No. 8, Tokyo Data Center No. 11
- Results of a survey of publicly available information about providing a menu that enables customers to select the type of renewable energy, and the provision of "environmental value" using non-fossil fuel certificates according to the type of renewable energy, at large commercial data centers in Japan that receive extra-high voltage while providing renewable energy (survey conducted by NTT Communications/NTT Anode Energy, March 2022)
- Provision of the service may entail equipment modification costs, such as power supply installation.
- Certificates issued by separating the value from electricity originating from sources that do not emit CO₂. This will achieve actually 100% renewable energy.
- FIT electricity refers to electricity generated from renewable energy sources and purchased by electric utilities under the feed-in tariff system established by the government (the Amended FIT Act). Because FIT electricity is financed by contributions imposed on electricity users (the public), its environmental value already belongs to the public. By contrast, non-FIT electricity that does not rely on the FIT system is viewed favorably because it contributes to the expansion of renewable energy implementation while reducing the burden on the public.
- Electricity generated from solar energy, geothermal energy, or biomass can be specified. (as of April 2022)
- Off-site PPA (Power Purchase Agreement) is a scheme in which electricity users conclude contracts with power generation business operators to procure renewable energy over the long term. Off-site PPA, an abbreviation of Off-site Corporate PPA, involves the use of power generation facilities in locations removed from users to supply them with electricity through the power grid.
Ensuring the coexistence of nature and humanity
