Sustainability Management

Sustainability Promotion Structure

In the NTT Communications Group, the Sustainability Promotion Committee was established as a deliberating body to examine measures for addressing 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 sustainability, 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 Committee Members and Secretariat

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, the board complies with recommendations from the Board of Corporate Auditors and oversees the necessary governance to promote sustainability activities strategically and appropriately.

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 the 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. Processes for identifying, assessing, and managing sustainability-related risks are also integrated into this total risk management process.
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. Furthermore, we comprehensively adjust and finalize the Main Initiatives, KPIs, and Targets, 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 following year’s Main Initiatives and KPIs. The Sustainability Promotion Committee also reviews the Sustainability Policy and priority issues.

For details on the Main Initiatives, refer to the tables in “KPIs, Targets, and Outcome of Activities” in this report.

Business Risk Management

Strategy

The NTT Communications Group has established the Main Initiatives under Priority Activities to address current and potential social issues and their associated risks and business opportunities, for each of the Priority Areas of “society,” “the environment,” “human resources,” and “governance.” To address those 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 seek to sustainably enhance our corporate value and strategically and precisely take action to realize a sustainable future.

For more information on initiatives throughout the value chain, refer to “Initiatives for Realizing a Sustainable Future through the NTT Communications Group Value Chain” in this report.

KPIs, Targets

For details of the process for setting the Main Initiatives, KPIs, and Targets for each identified materiality, refer to “Process of Identifying and Setting Materiality and Setting the Main Initiatives, KPIs, and Targets”.

KPIs, Targets, and Outcome of Activities