NTT Group has launched a new solution brand "NTT G×Inno" to strengthen its efforts in the field of GX. GX refers to efforts to shift from thermal power generation using fossil fuels to an industrial structure centered on renewable energy sources such as solar and wind power generation, in order to realize a decarbonized society. GX is now attracting attention around the world as an approach that simultaneously achieves environmental conservation and economic growth.

In this presentation we will explain what GX is, trace the background of NTT's GX initiatives, and introduce the specific solutions provided by "NTT G×Inno."

1) What is GX? The background behind the attention to GX

GX stands for Green Transformation, which refers to efforts and actions aimed at curbing greenhouse gas emissions, a factor in global warming, and transforming economic and social systems to be centered on renewable energy sources such as solar and wind power, with minimal use of fossil fuels. It is characterized by the fact that it aims not only to address climate change, but also to achieve economic development, viewing the transformation of economic and social systems as an opportunity for economic growth.

The background for the focus on GX is the worsening of global warming and environmental problems.

In recent years, the global average temperature has continued to rise, and if global warming continues at its current rate, it is estimated that the average global temperature will increase by up to 5.7°C by 2100. Amid concerns about global risks such as the loss of coastal areas and ecosystem collapse, the global movement toward decarbonization is accelerating, with 154 countries and 1 region pledging to achieve carbon neutrality by 2050 by the end of COP26 in 2021.

Amid the spread of decarbonization efforts, especially among major economic powers, the Japanese government has declared its goal of becoming "carbon neutral" by 2050, reducing greenhouse gas emissions to virtually zero. The Kishida Cabinet's "New Capitalism" also includes GX investment as one of its priority investment areas, and the government has announced a public-private partnership of 150 trillion yen in GX investment over the next 10 years to achieve carbon neutrality by 2050, and to simultaneously achieve its international commitments, strengthen industrial competitiveness, and achieve economic growth. The GX investment is a public-private partnership of 150 trillion yen over the next 10 years. As interest in and awareness of carbon neutrality grows in response to these developments, an increasing number of companies are actively pursuing initiatives to reduce greenhouse gas emissions.

In addition, with the restructuring of the Tokyo Stock Exchange in 2022, companies listed on the prime market will be required to disclose climate change-related business risks, and investor and consumer interest in corporate efforts to decarbonize is growing year by year.

2) Why is NTT working on GX? What NTT is aiming for through GX

NTT Group has set forth "NTT Green Innovation toward 2040"^*1 as its new environmental energy vision. Under this vision, NTT Group aims to reduce its greenhouse gas emissions by 80% from the fiscal 2013 level by fiscal 2030, and to achieve carbon neutrality for the NTT Group by fiscal 2040.

^*1New environmental energy vision "NTT Green Innovation toward 2040"
URL https://group.ntt/jp/newsrelease/2021/09/28/210928a.html

In addition, NTT Group will promote efforts to realize green solutions, create recycling-oriented businesses, and move toward net zero in its medium-term management strategy "New value creation & Sustainability 2027 powered by IOWN, "^*2 which was announced in May 2023.

^*2NTT Group Medium-Term Management Strategy "New value creation & Sustainability 2027 powered by IOWN"
URL https://group.ntt/jp/ir/mgt/managementstrategy

NTT Group, which is said to consume approximately 1% of Japan's electricity, has a great social responsibility to help realize a decarbonized society. In order to take the initiative in fulfilling this responsibility and to accelerate efforts toward carbon neutrality, we have launched "NTT G×Inno" as a common brand for NTT Group. Through this brand, we aim to make society as a whole carbon neutral by taking action to decarbonize our own companies and related value chains, and by proposing GX solutions created from the know-how and achievements gained through these efforts to companies and local governments.

3) Innovative technology solutions in the GX field provided by NTT G×Inno

Under the brand "NTT G×Inno," NTT Group will offer a wide range of solutions from its Group companies, including consulting, visualization, energy conservation, and behavior change.

Please refer to this article for more information on each solution provided by the Group companies.
Launch of "NTT G×Inno," a New Solution Brand to Strengthen Efforts in the GX Field

■Platform for visualizing greenhouse gas emissions

Based on its environmental energy vision "NTT Green Innovation toward 2040," NTT Group aims to achieve carbon neutrality by FY2040, including not only its own greenhouse gas emissions (Scope 1 and 2^*4) but also those of its entire supply chain (Scope 3*4).

^*4GHG Protocol standards established for calculating and reporting greenhouse gas emissions

Scope 3 refers to indirect emissions by other businesses and users involved in the company's business activities, and is called "supply chain emissions. Generally, the Emission Intensity Database^*5 is used to calculate supply chain emissions, but the values in the database are averages for Japan as a whole, making it difficult for each company to reflect the results of its individual activities.

The solution to this problem is the Total Emissions Distribution Method, which evaluates not on the basis of what a company buys, but on who it buys it from. The key point is that the CO2 emissions of a company are exchanged in conjunction with a "transaction," so that not only are the reduction efforts of the supplier incorporated into the company's own emissions, but those reduction efforts are also incorporated downstream through the transaction.

NTT Group aims to calculate and reduce greenhouse gas emissions by reflecting supplier emissions and supplier reduction efforts across the entire NTT Group, and aims to introduce the system to 1,000 suppliers who will work together to reduce emissions by FY2027.

By adopting the total emissions sharing method, we can also function as a supplier engagement system by requesting suppliers to reduce their emissions and switching to suppliers with lower environmental impact. This will encourage suppliers to decarbonize their operations, which in turn will lead to the decarbonization of society as a whole.

In order to achieve carbon neutrality not only in Japan but also in the entire world, it is important for NTT Group to work not only on its own, but also across regions, companies, and industries to change the behavior of society as a whole. NTT Group will provide solutions in a wide range of fields, from consulting to behavior change, by leveraging its cutting-edge technologies and assets, and working with a wide range of partners, from global companies to start-ups, as well as industry-government-academia collaborations.

Please look forward to the future efforts of NTT Group.

^*5Ministry of the Environment, Emission Intensity Database.
URL　https://www.env.go.jp/earth/ondanka/supply_chain/gvc/estimate.html

4) Related Information

Launch of "NTT G×Inno," a New Solution Brand to Strengthen Efforts in the GX Field
https://group.ntt/en/magazine/blog/nttgxinno/