EN
Environment
Achieving Net-Zero for a Green and Sustainable Future
Public expectations for environmental protection are growing along with the responsibilities of ICT companies for engaging in these activities. We have established and announced our Environmental Statement and New Environmental Goals and are pursuing a multifaceted approach focused on the three themes of promoting a decarbonized society; developing a closed-loop society; and co-existing with nature, including the preservation of biodiversity.
In March 2024, we renewed the previously established Eco Strategy 2030 as the New Environmental Goals to respond to a rapidly changing global environment and accompanying social conditions. These updated goals strengthen various targets, including achieving carbon neutrality by fiscal 2030*1 and net-zero by fiscal 2040*2. Along with reducing the environmental impact of our own business activities, we are also committed to reducing environmental impact across our supply chain and society as a whole, striving to achieve both solutions to environmental challenges and sustainable economic development.
*1 Targeted GHG Protocol: Scope 1 (direct emissions of greenhouse gases from our own sources) and Scope 2 (indirect emissions from the use of electricity, heat, and steam supplied by other companies)
*2 Targeted GHG Protocol: Includes Scope 1, 2, and 3 (indirect emissions other than Scope 1 and 2, such as emissions from other companies related to the organization’s activities).
◆ Priority Activities
Environmental Management
Basic Philosophy and Vision
While emphasizing the philosophy in the NTT Group Global Sustainability Charter, established by the NTT Group, our environmental protection activities take shape as the NTT Communications Group Global Environmental Charter, Environmental Statement, and New Environmental Goals which applies the philosophy to the characteristics of our business. We set initiative goals and implement measures on an ongoing basis.
NTT Communications Group Global Environmental Charter
The NTT Group has established the NTT Group Global Sustainability Charter to promote Groupwide consideration and actions relating to environmental protection from a global perspective. This policy forms the basis for the NTT Communications Group Global Environmental Charter, which is disseminated among employees of the Group as a set of guidelines for the implementation of environmental protection activities.
Environmental Statement and New Environmental Goals
Under the NTT Communications Group Environmental Statement and New Environmental Goals, established in line with the policies of the NTT Group and NTT DOCOMO Group, we have continued to strengthen our environmental activities while closely monitoring global trends. The environmental statement outlines three key themes for a future in which people and the planet remain in harmony: Realizing a Decarbonized Future, Implementing Closed-loop Recycling, and Planning a Future of Natural Harmony. The new environmental goals set specific objectives for these three themes, and all employees are united in working toward these environmental efforts.
The NTT Communications Group Environmental Statement
We are dedicated to global environmental management
for a future in which people and the planet remain in harmony, and
we will address three futures by providing technologies and services that pioneer eras.
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Realizing a Decarbonized Future
We are contributing to the reduction of CO2 emissions and facilitating adaptation to climate change risk.
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Implementing Closed-Loop Recycling
We are working toward more effective resource allocation.
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Planning a Future of Natural Harmony
We are contributing to the preservation of ecosystems.
New Environmental Goals (Set in March, 2024)
| Three Futures We Are Targeting | Items | Target FY |
Targets |
|---|---|---|---|
Realizing a Decarbonized Future |
Reducing GHG emissions from the Company (Scope1 and2) | 2030 | Carbon neutral (Scope 1 and 2) |
| Reducing GHG emissions across the supply chain (Scope 1, 2, and 3) | 2040 | Net-Zero (Scope 1, 2, and 3) |
|
| Conversion rate of our corporate fleet to EVs in Japan (%) | 2030 | 100% | |
| 2025 | 50% | ||
| Power efficiency of telecommunications operators | 2030 | At least 10 times (compared to FY2013) |
|
Implementing Closed-loop Recycling |
Landfill waste disposal ratio | 2030 | At least 99% |
Planning a Future of Natural Harmony |
Promotion of activities to preserve ecosystems | 2030 | Ecosystem preservation activities |
*The scope of these targets, set in March 2024, encompasses NTT Communications Corporation and 18 Group companies.
Realizing a Decarbonized Future for Society
In May 2023, the NTT Group announced its new medium-term management strategy for achieving carbon neutrality by fiscal 2040 with net-zero emissions from its own operations as well as from its supply chains (Scope 3). The NTT DOCOMO Group subsequently declared in November 2023 its commitment to the Net-Zero by 2040 plan under its slogan “Saving Our Planet With You.” In its New Environmental Goals, formulated in March 2024, the NTT Communications Group set the goal of achieving carbon neutrality by fiscal 2030 (Scope 1 and 2), in addition to striving for net-zero by fiscal 2040 (Scope 1, 2, and 3). Furthermore, the NTT Communications Group will work with customers and partner companies to promote decarbonization across society, going beyond Scope 1, 2, and 3.
◆Roadmap to Net-Zero by Fiscal 2040
Risks and Opportunities
We believe that a company’s response to environmental issues such as climate change not only represents a risk to business, society, and the planet but also opens up new opportunities for business growth and the strengthening of corporate structure and resilience.
The NTT Communications Group’s business inherently includes activities that contribute to the emission of GHGs and waste, thus placing a certain level of burden on the planet’s environment. In this context, without proper management and timely efforts to address and disclose environmental issues, including climate change, we risk not only criticism from society for greenwashing* but also the weakening of our corporate reputation and competitiveness. Furthermore, there is a potential risk to the sustainability of the planet, such as GHG emissions that accelerate global warming, and the illegal dumping of industrial waste.
On the other hand, as society’s awareness of environmental issues rapidly increases, we believe that offering services and solutions with lower GHG emissions, as well as DX/GX products that contribute to reducing society’s overall GHG emissions, will lead to business expansion. As an ICT company that provides cutting-edge technologies and services, the NTT Communications Group will contribute to addressing societal challenges, including environmental issues, by promoting more advanced and symbolic initiatives, thereby enhancing its corporate value.
*A form of misleading environmental marketing
Promotion Framework for Reducing Environmental Impact
In order to continuously promote environmental protection initiatives in a Groupwide effort, we have established the Global Environmental Protection Subcommittee within the Sustainability Management Committee, headed by the executive vice president, serving as the dedicated officer for sustainability promotion. We have also formed issue-specific working groups to address environmental challenges as a unified NTT Communications Group. The Global Environmental Protection Subcommittee formulates an overall plan that encompasses a wide range of issues, including the reduction of greenhouse gas emissions and waste, shares information on the results of actions taken, and promotes the horizontal deployment of various initiatives.
Sustainability Office coordinates responses to the TCFD and TNFD and related activities of the NTT DOCOMO Group as a whole, along with other issues, under the Group’s sustainability management.
We believe that our approach to environmental issues is a key aspect of our business risk management. To that end, our Business Risk Management Committee, consisting of the executive vice president and other senior executives, assesses all potential risks and discusses appropriate measures to address them.
We will continue to improve our management systems as necessary to more effectively respond to environmental trends.
◆ Environmental Protection Framework
Environmental Management Initiatives
Acquiring ISO 14001 Certification
Three companies in the NTT Communications Group have acquired ISO 14001 certification as of March 31, 2024. We have contracted outside environmental consultants to perform annual internal audits of the certified companies and departments in order to ensure the appropriate implementation of environmental management and continual improvements that will allow for a steady reduction of the environmental impact of business activities. Regular reviews and renewal examinations are undertaken by an independent certification body as well. Outstanding issues are thus identified, and remedial measures are taken swiftly. Besides our initiatives centering on reductions of office paper and electricity use and the promotion of waste recycling, we encourage the adoption of measures aimed at creating an environmentally friendly society.
◆ Companies Certified under ISO 14001*1
Promoting Groupwide Environmental Management
Guided by its Global Environmental Charter, the NTT Communications Group shares PDCA and other reports at the Global Environmental Protection Subcommittee, an organization under the Sustainability Management Committee. These reports outline details of the various initiatives administered by the nine working groups that drive the Group’s environmental protection efforts. In addition to sharing information and calling for the further development of effective initiatives, we are promoting environmental management on a Groupwide basis.
Compliance with Environmental Legislation and Regulations
The NTT Communications Group is committed to ensuring legal compliance and proper risk management while liaising closely with the other NTT Group companies. All legislation, including environmental laws and regulations aimed at curtailing pollution, emissions standards, and the PRTR Law*, is fully communicated to related departments, and independent guidelines and enhanced compliance education have been established for in-house application. We were not involved in any litigation or legal violations pertaining to environment-related accidents, infringements, fines, or complaints in fiscal 2023.
We will continue our Companywide efforts to prevent pollution and comply with related laws and regulations.
*Act on Confirmation, etc. of Release Amounts of Specific Chemical Substances in the Environment and Promotion of Improvements to the Management Thereof
Promoting Green Procurement
We are promoting green procurement by expanding our GHG emissions reduction targets across the supply chain toward achieving net-zero by 2040.
The evaluation criteria for procurement are based on the NTT Docomo Green Procurement Guidelines, which clearly specify factors in our set of criteria applied when selecting suppliers, such as the supplier’s actions toward environmental conservation and the environmental conservation elements of the procured items.
Reducing GHG emissions in Scope 3, specifically Categories 1 and 2, requires collaborative efforts with suppliers across the entire supply chain. We have therefore completed the visualization of emissions for suppliers representing over 80% of our total procurement volume, after engaging discussions on achieving the net-zero goal with them and providing CO2MOS® emissions visualization services. We will continue to promote this visualization effort while also requesting their cooperation to reduce emissions and adding SBT*-aligned initiatives to the RFP criteria for procurement. By 2030, we will complete the visualization of key suppliers with significant procurement volumes and accelerate the realization of net-zero across the entire supply chain.
To further raise awareness, we have made the related guidelines available on the official NTT Communications website.
Through our efforts for procuring products taking into account their impact on the environment under the Green Procurement Standards, we will work to improve our environmental protection activities with our suppliers and seek to commit to further social contribution.
*Abbreviation for Science Based Targets. Companies set these greenhouse gas emissions reduction targets to align with the levels defined in the Paris Agreement.
Utilization of Internal Carbon Pricing
NTT Communications has been utilizing internal carbon pricing (ICP) since September 2022 to guide investment decisions. For example, we applied an internal carbon price (6,500 yen/t-CO2) in fiscal 2023 when investing in capital equipment that can reduce GHG emissions. More specifically, ICP is applied for procuring network equipment and other necessary items. To accelerate emissions reduction efforts, we revised the internal carbon price in August 2024 (from 6,500 yen/t-CO2 to 19,000 yen/t-CO2). Moving forward, we will expand the scope of the ICP system to the emissions from the respective suppliers as well as the products themselves. This will allow us to evaluate suppliers who are actively reducing emissions with the ultimate goal of achieving net-zero across the entire supply chain.
Fostering a Sense of Environmental Stewardship
We offer all employees environmental education with the intention of raising their awareness of environmental matters. We are also proactive in environmental awareness activities as part of our sustainability efforts, extending the scope of participation to include not only employees but also their family members and our business partners.
◆ Priority Activities
Promotion of a Decarbonized Society
Our Approach
While the advance and spread of ICT has helped to bring about an affluent society and convenient lifestyles, the increase in power consumption from ICT-related equipment is placing enormous pressure on the environment. We continue to reduce greenhouse gas (GHG) emissions, recognizing our responsibility to contribute to addressing environmental problems, including climate change as one of the most pressing issues for realizing a sustainable future. We are also continuing to take various initiatives aimed at reducing GHG emissions throughout our entire supply chain.
For example, we set “Realizing a Decarbonized Future” as one of the themes for our Environmental Statement and established the New Environmental Goals. In this context, we are focusing on a number of approaches for reducing GHG emissions across the Group, the supply chain, and society. In the Group, we prioritize R&D to enhance energy efficiency and reduce power consumption in telecommunications equipment and data centers while also introducing renewable energy and transitioning to alternative energy sources. In the supply chain, we incorporate environmental considerations into the selection of suppliers and procurement items, and we offer services and solutions with low GHG emissions. For society, we provide a variety of solutions that promote digital transformation (DX) and green transformation (GX), toward achieving carbon neutrality for Scope 1 and 2 by fiscal 2030 and net-zero emissions across Scope 1, 2, and 3 by 2040.
When assuming that no renewable energy is used, electricity consumption accounts for approximately 95% of total CO2 emissions from business activities of the NTT Communications Group. Therefore, we can particularly expect great advantages as a result of saving energy and improving the energy efficiency of telecommunications equipment. We are thus making strong efforts in such respects as leading the industry in introducing cutting-edge technologies.
We contribute to the efficiency of society’s electricity usage in data centers and cloud services by consolidating servers, air-conditioning systems, UPS systems, and lighting, which were traditionally installed and operated by customers, into highly energy-efficient data centers. Furthermore, as a member of the NTT Group, which supports the GX League Basic Concept announced by the Ministry of Economy, Trade, and Industry, we intend to demonstrate our social responsibility by actively engaging in policy formation toward realizing a society in which companies committed to GX can reduce GHG emissions, be properly evaluated, and grow.
◆ Overview of Efforts toward Promoting a Decarbonized Society
Providing Services that Help Reduce GHG Emissions
Governance
At NTT Communications, we have established the Global Environmental Protection Subcommittee within the Sustainability Management Committee, headed by the executive vice president in charge of sustainability. This subcommittee formulates an overall plan that encompasses a wide range of issues, including the reduction of GHG emissions and waste, and promotes the sharing of results and the horizontal deployment of various initiatives, with a focus on implementing the PDCA cycle. It has also formed working groups (WGs) for specific issues. Among these, the Greenhouse Gas Reduction WG is responsible for planning and implementing energy-saving measures for telecommunications facilities, data centers, and office buildings, planning for the introduction and performance management of renewable energy, and responding to Japanese laws and regulations covering greenhouse gas emissions and more. These efforts contribute to achieving a decarbonized society. Furthermore, the Group Company WG is expanding these initiatives to include the NTT Communications Group companies.
The various initiatives of the Global Environmental Protection Subcommittee are reported and reviewed at the Sustainability Management Committee. Progress on these activities is also shared quarterly with the president and CEO (Executive Committee) and the Board of Directors. The Board of Directors makes final decisions on addressing issues as well as management strategies and business plans. The board also complies with recommendations from the Board of Corporate Auditors and oversees the necessary governance to strategically and appropriately promote sustainability activities while linking GHG emissions to executive compensation and other factors as part of the evaluation for advancing a decarbonized society.
Risk Management
The NTT Communications Group convenes biannual meetings of the Business Risk Management Committee, chaired by the senior executive president, to discuss the definition of risks to be addressed, the identification of critical risks, and initiatives to promote risk management, taking into account the evolving business environment. Within the Business Risk Management Committee, we have also established a Business Risk Management Subcommittee that conducts monthly risk observations.
In addition, we recognize climate change as a significant business risk that could significantly impact the operations of the NTT Communications Group. The Business Risk Management Committee evaluates these risks and confirms the corresponding response measures to ensure effective management.
Strategy
We have declared an Environmental Statement under the NTT Communications Group Global Environmental Charter. One of the three core themes in this statement is “Realizing a Decarbonized Future,” which confirms our focus on a future where people and the planet coexist in harmony.
Climate Scenario Analysis and Initiatives
In May 2020, the NTT Group declared its support for the Task Force on Climate-Related Financial Disclosures (TCFD), established by the Financial Stability Board (FSB). Following our new beginning as the NTT DOCOMO Group in July 2022, we conducted a fresh scenario analysis as a member of the DOCOMO Group in addition to our conventional analysis as a member of the NTT Group. Using the results, we reviewed our efforts and actions as the NTT Communications Group and updated our approach as of October 2024. The analysis of the DOCOMO Group adopted two scenarios of climate-related risks and opportunities associated with the Group’s operations: a well-below 2°C (e.g., 1.5°C) scenario of rapid decarbonization and a 4°C warmer scenario assuming apparent physical impacts.
Taking into account the DOCOMO Group’s scenario analysis as an alternative perspective, we will continue to adopt various approaches for decarbonization and net-zero emissions, including our choice of scenario models.
・A scenario assuming rapid decarbonization:
Net-Zero Emissions Scenario (NZE), World Energy Outlook 2023, International Energy Agency (IEA)
Efficient Cooling Scenario, IEA The Future of Cooling, 2018
NZE Scenario, Study on Scenario Analysis of Climate Change-Related Risks, Central Research Institute of Electric Power Industry (CRIEPI)
・A scenario assuming apparent physical impacts:
Intergovernmental Panel on Climate Change (IPCC) Sixth Assessment Report , and IPCC Special Report on Global Warming of 1.5°C
Baseline Scenario, IEA The Future of Cooling, 2018
Study on Scenario Analysis of Climate Change-Related Risks, Central Research Institute of Electric Power Industry (CRIEPI)
Current Policy Scenario
Ministry of Land, Infrastructure, Transport and Tourism, Technical Study Committee on Flood Control Plans Reflecting Climate Change, Recommendations for Flood Control Plans Reflecting Climate Change, RCP8.5 Scenario
◆ Risks Identified with Scenario Analysis, and a Summary of the Group’s Initiatives
| Potential Impact on Business | Materiality (Business/ Financial) |
Timeframe | Initiatives by the NTT Communications | ||||
|---|---|---|---|---|---|---|---|
| Well below 2°C scenario (e.g., 1.5°C scenario) | Transition risk | Policies/regulations | Carbon price/ carbon tax |
• Increased procurement costs due to the collection of fossil fuel levies starting in fiscal 2028 • Increased costs due to the introduction of a carbon tax |
High | Long term |
• Improving the power efficiency of air-conditioning and IT equipment at data centers through new technologies and implementing various power reduction measures • Actively introducing renewable energy (including virtually renewable energy by using non-fossil fuel certificates) to achieve carbon neutrality by fiscal 2030 • Introducing internal carbon pricing • Promoting the Net-Zero by 2040 plan |
| Increased policies and regulations for products and services |
• Possibility of products not meeting energy efficiency regulations/ standards, resulting in a loss of government or other customers, shifting demand to more satisfactory products/ services |
Medium | Long term |
• Early launch of services based on customer trends and social needs |
|||
| Industry/market | Energy price fluctuations |
• Increased energy prices and a shift in demand to energy-efficient products and services |
High | Long term |
• Reducing power consumption by improving the power efficiency of air-conditioning and IT equipment at data centers through new technologies and implementing various power reduction measures • Securing stable power sources through long-term fixed contracts with power companies, development of special power sources (e.g., PPA), etc. • Promoting IOWN Initiative |
||
| Changes in customer reputation, demands, and behavior |
• Customer disengagement and damaged corporate image if our efforts are perceived as passive |
Medium | Long term |
• Announcing the 2040 Net-Zero target • Actively introducing renewable energy • Reviewing internal carbon pricing rates |
|||
| 4°C scenario | Physical risks | Chronic | Increased average temperatures and midsummer days |
• Possibility of customers not choosing us for data center and telecommunications equipment with low air-conditioning management efficiency and capacity |
Medium | Long term |
• Reducing power consumption by improving the power efficiency of air-conditioning and IT equipment at data centers through new technologies and implementing various power reduction measures. Ultra-energy-efficient data center service Green Nexcenter®*, incorporating liquid cooling as the latest technology to be deployed in selected data centers • Promoting IOWN Initiative |
| Acute | Severe extreme weather conditions |
• Damaged data centers due to flooding • Damaged reputation from lack of resilience to disasters |
Low | Medium term |
• Reliable risk assessment when selecting a construction site • Redundant facilities based on disaster simulation • Securing multiple power supply routes assuming power supply interruption • Reviewing and establishing equipment procurement plans addressing the risk of flooding at manufacturing plants |
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High materiality: Extremely important in climate action for business continuity and financial reasons
Medium materiality: Relatively less important, although potentially damaging
Low materiality: Limited impact on business, including future prospects
Timeframe: Short term (less than 4 years, assuming NTT Group’s new mid-term management strategy period)
Timeframe: Medium term (less than 4 to 7 years, assuming NTT Communications Group’s New Environmental Goals targeting carbon neutrality by fiscal 2030 (Scope 1 and 2))
Timeframe: Long term (7 years or more, assuming NTT Communications Group’s New Environmental Goals targeting net-zero by fiscal 2040 (Scope 1, 2, and 3))
◆ Opportunities Identified with Scenario Analysis, and a Summary of the Group’s Initiatives
| Opportunity Factors | Initiatives by the NTT Communications Group |
|||
|---|---|---|---|---|
| Opportunities | Resource efficiency | Energy efficiency |
・Reducing costs and expanding revenue through improvements in the energy efficiency of air-conditioning systems in telecommunications equipment and data centers, as well as the cooling efficiency of high-heat servers |
・Adopting indirect evaporative cooling systems in data centers, which can switch to the optimal heat exchange method based on outdoor conditions ・Deploying the ultra-energy-efficient data center service Green Nexcenter® ・Providing power options that allow for the selection of renewable energy to meet different decarbonization requests |
| Energy sources | Utilization of renewable energy |
・Improving the corporate image through the use of renewable energy and decarbonization efforts |
・Installing solar power generation systems at 6 data center locations ・Purchasing non-fossil certificates ・Promoting EV adoption with the goal of achieving 100% by fiscal 2030 |
|
| Participation in the carbon market |
・Expanding business by creating J-Credits in collaboration with partner companies |
・Developing and providing a platform that comprehensively supports the creation, verification, and matching of forest-derived carbon credits ・Creating and selling carbon credits through the projects for extending the mid-season drainage period in wetland rice cultivation ・Creating credits through biochar |
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| Products and services | Development and expansion of low-pollution products and services | ・Expanding revenue by developing and providing services and technologies that contribute to reducing GHG emissions |
・Offering GHG emission calculation, visualization, and analysis services, as well as platforms that contribute to decarbonization ・Implementing 100% renewable energy (including effectively renewable energy using non-fossil certificates) for all locations providing SDPF cloud/servers in their power consumption |
|
| Diversification of business activities, changes in consumer preferences |
・Shift in customer needs toward services with better environmental performance |
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| Resilience | Expansion of demand for services related to ensuring resilience | ・Strengthening reliability by building disaster-resistant data centers |
・Constructing data centers in safe locations with low risk from natural disasters such as flooding or earthquakes and adopting seismic isolation structures ・Building disaster-resistant data centers through redundant power, air-conditioning, communication equipment, and other systems ・Preventing data center downtime by establishing a system capable of rapid response during disasters |
|
Metrics and Targets
The NTT Communications Group, in line with the Environmental Statement and its goal of realizing a decarbonized future, has set the following New Environmental Goals: carbon neutrality by fiscal 2030 (Scope 1 and 2), net-zero by fiscal 2040 (Scope 1, 2, and 3), 100% EV adoption for its corporate fleet in Japan by fiscal 2030, and achieving a ten-fold increase in energy efficiency as a telecommunications operator by fiscal 2030 (compared to fiscal 2013). Progress and initiatives toward each goal are disclosed in sustainability reports and other materials.
Calculation of GHG Emissions (Fiscal 2023 Results)
For Scope 3, we calculated emissions by referring to unit emission databases and other materials produced through studies by the Ministry of the Environment and other government ministries and agencies.
◆ GHG Emissions (Scope 1 and 2, Market-based Method)*1, 2
| Fiscal 2023 target | 11.7 ten thousand t-CO2e |
| Fiscal 2023 result | 9.7 ten thousand t-CO2e |
| Fiscal 2024 target | 9.5 ten thousand t-CO2e |
*1 Includes emissions of greenhouse gases other than CO2, such as CFC substitutes
*2 Emissions associated with electricity are calculated using emission factors obtained from electric power companies.
Scope: NTT Communications Corporation and 18 Group companies
◆ GHG Emissions by Scope and Category
| Category | GHG Emissions (ten thousand t-CO2e) |
Composition Ratio (%) | |
|---|---|---|---|
| Total emissions | 230.9 | 100% | |
| Scope 1 (direct emissions of greenhouse gases from our own sources, such as fuel combustion)*1 | 1.0 | 0.5% | |
| Scope 2 (indirect emissions from the use of electricity, heat, and steam supplied by other companies) (market-based))*2 | 8.6 | 3.7% | |
| Scope 3 (indirect emissions other than Scope 1 and 2, such as emissions by others related to activities of the NTT Communications Group) | 221.2 | ||
| Category 1 (purchased goods and services)*3 | 103.1 | 44.7% | |
| Category 2 (capital goods)*3 | 14.6 | 6.3% | |
| Category 3 (fuel and energy activities not included in Scope 1 or 2) | 2.7 | 1.2% | |
| Category 4 (upstream transportation and distribution) | 1.2 | 0.5% | |
| Category 5 (waste generated through business activities) | 0.0*10 | 0.0%*10 | |
| Category 6 (business travel) | 0.9 | 0.4% | |
| Category 7 (employee commutations) | 0.0*10 | 0.0%*10 | |
| Category 8 (upstream leased assets)*4 | - | - | |
| Category 9 (downstream transportation and distribution)*5 | - | - | |
| Category 10 (processing of products sold)*6 | - | - | |
| Category 11 (use of products sold)*7 | 52.8 | 22.9% | |
| Category 12 (disposal of products sold)*7 | 0.2 | 0.1% | |
| Category 13 (downstream leased assets) | 45.7 | 19.8% | |
| Category 14 (franchise)*8 | - | - | |
| Category 15 (investments)*9 | - | - | |
*1 Includes emissions of greenhouse gases other than CO2, such as CFC substitutes
*2 Emissions associated with electricity are calculated using emission factors obtained from electric power companies.
*3 Calculated by multiplying each supplier’s transaction amount by their emissions intensity (calculated from their disclosed data) or by the emissions intensity according to the transaction details. Categorization methods for Categories 1 and 2 were reviewed to improve accuracy from the fiscal 2023 results, and the scope of calculation was expanded to include the entire NTT Communications Group.
*4 Counted for calculation, but no results were available (fuel and electricity used by leased assets are calculated under Scope 1 or 2)
*5 Counted for calculation, but no results were available (mostly outsourced transportation calculated under category 4)
*6 Counted for calculation, but no results were available (no intermediate product processing in main businesses)
*7 Updated the targeted services starting from the fiscal 2023 results, based on the organizational restructuring with NTT Docomo Group implemented in July 2022.
*8 Counted for calculation, but no results were available (not applicable)
*9 Counted for calculation, but no results were available (calculated in Scope 1 or 2)
*10 Less than 0.05
Scope: NTT Communications Corporation and 18 Group companies
◆ GHG Emissions from Business Activities (Scope1,2）
Scope: NTT Communications Corporation and 18 Group companies
*Emissions associated with electricity are calculated using emission factors obtained from electric power companies
◆ Priority Activities
Development of a Closed-loop Society
Our Approach
To contribute to the realization of a closed-loop society, the NTT Communications Group promotes the 3Rs of reduce (waste prevention), reuse (encouraging repeated use), and recycle (improving recycling rates) while also building business models with low environmental impact. The inefficient use of resources and rising volume of waste are becoming increasingly serious social issues and encompass a variety of risks. To fulfill our social responsibility regarding these issues, we organized working groups in the three areas of dismantled telecommunications equipment, construction waste, and office waste, and we are working in cooperation with other NTT Group companies to thoroughly implement the 3Rs while promoting resource circulation, such as recycling plastics.
We are also working to provide and co-create ICT platforms as well as services and solutions that lead to a closed-loop society, which can also provide a business opportunity for increasing our corporate value. Through these initiatives and many other efforts, and united as the NTT Communications Group, we are committed to a greener future with the most effective use of resources through proper waste management and promotion of reusing and recycling in our business activities.
Co-existing with Nature
Biodiversity conservation and co-existing with nature, frequently discussed as key environmental issues for achieving a sustainable society, are also critical topics that encompass risks related to business continuity.
We have set “Planning a Future of Natural Harmony” as part of our environmental declaration and established the Biodiversity Action Plan. Under these policies, we are carrying out environmentally sound business activities from the construction of facilities to their operation and dismantling in accordance with the NTT Group Sustainability Design Guideline for Buildings and other guidelines. We are also engaged in local conservation efforts, including the preservation of satoyama (traditional Japanese rural landscapes), local greening initiatives, and reforestation tailored to regional vegetation.
To fulfill our corporate social responsibility, we will continue to place a high priority on conservation of biodiversity throughout our business operations and conduct business while inspecting the progress of initiatives, identifying problems, and making improvements. We will also adopt a multifaceted approach, including the provision and co-creation of ICT/DX solutions and services that contribute to nature-positive economic activities, which can become business opportunities, as well as environmental contribution efforts such as participating in local conservation projects and disseminating environmental information.
◆ NTT Communications Group Biodiversity Action Plan
1. Basic Policy
• Development Centered on Business Activities
The Group recognizes that all activity is inextricably linked to the planet and to biodiversity, understands that the scope and impact at home and overseas are related depending on the nature of a business, and promotes initiatives that are recognized as having a preservation effect.
• Development Centered on Contribution to Society
In partnership with its stakeholders, the Group widely promotes initiatives toward the preservation of biodiversity, regardless of their relevance to its business.
2. Action Guidelines
• Implement actions that take into account the preservation of biodiversity in business activities
• Contribute to the preservation of social biodiversity in business activities
• Deepen understanding of biodiversity, promote nature conservation activities together with employees, their families, and the planet
Initiatives Related to the TNFD
In accordance with the LEAP approach*1 proposed by the TNFD, the NTT DOCOMO Group conducted an analysis*2 of its nature-related dependencies, impacts, risks, and opportunities. The analysis also encompasses the business areas and value chains of NTT Communications. The NTT Communications Sustainability Office, responsible for promoting environmental activities, participated in the analysis through the identification of potential material issues, analysis of the value chain’s location-specific issues, determination of material issues, and review of countermeasures, leading biodiversity conservation in our business operations as a member of the DOCOMO Group.
*1 A location-based approach to prioritizing impacts on natural capital and actions to address them. The approach involves four phases: locate interface with nature, evaluate dependencies and impacts on nature, assess nature-related risks and opportunities, and prepare to respond to nature-related risks and opportunities and report to investors.
*2 This report is based on TNFD beta v0.4, released in March 2023. We will review the contents based on v1.0, released in September 2023, and take any necessary actions.
Scenario Analysis and Results within the NTT DOCOMO Group (Focusing on NTT Communications’ Business Areas)
- STEP 1: Identification of key issues
-
The analysis following the LEAP approach within the NTT DOCOMO Group includes the corporate business areas managed by NTT Communications. By evaluating the relationship between stakeholder interests and our business operations, we identified these potential key issues: development of land with high conservation value, impact on surrounding ecosystems, resource extraction, and waste emissions.
- STEP 2: Analysis of the value chain’s location-specific issues
-
The analysis of the value chain’s location-specific issues includes telecommunications facilities and equipment related to NTT Communications’ business. Given the nature of our operations, we added water resource use and wastewater discharge as a potential key issue and organized the analysis by value chain stage: upstream, direct operations, and downstream. We then identified risk hotspots and potential risks to be addressed in each value chain stage through the analysis using IBAT*1 and Aqueduct*2, focusing on risk themes such as resource extraction, water use, land development, and surrounding ecosystems.
For example, it has been confirmed that no NTT Communications’ telecommunications equipment is located in areas with high water stress across all 56 sites (as of August 2023). For more details on the analysis of the value chain’s location-specific issues within the NTT DOCOMO Group, please refer to the information disclosure based on the TNFD recommendations from the NTT DOCOMO Group.*1 Integrated Biodiversity Assessment Tool, developed by the United Nations Environment Programme World Conservation Monitoring Centre (UNEP-WCMC)
*2 A global water risk mapping tool developed by the World Resources Institute (WRI)
- STEP 3: Confirmation of key issues
-
We identified and evaluated risks and opportunities based on the results of STEP 1 and STEP 2.
- Risks
-
Various potential risks (e.g., price increases and unstable supply of telecommunications equipment necessary for offering services may affect our financial plans when there is a shortage of supplies from resource extraction) have been identified, but after reviewing the sites within NTT Communications, we verified that there are no immediate material risks that would affect our business. However, having identified development of land with high conservation value, impact on surrounding ecosystems, and resource extraction as key issues based on the analysis results from STEP 1 and STEP 2, we will assess risks during the development of new sites, including expansions and renovations, and continue to promote initiatives for biodiversity conservation as part of the NTT DOCOMO Group.
- Opportunities
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As societal interest in biodiversity rises, we believe that actively engaging in conservation efforts not only enhances the Company’s social reputation but also drives revenue growth by providing services and solutions that support smart agriculture, fisheries, and the reduction of environmental impact.
- STEP 4: Examination of countermeasures
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The NTT DOCOMO Group conducted a GAP analysis, based on the confirmed key issues, to select priority action items and examined countermeasures using the SBTN AR3T framework*3. NTT Communications, in light of the NTT DOCOMO Group countermeasures, then reviewed and assessed the progress of those countermeasures for the identified key issues.
| Key Issues | Countermeasures | NTT Communications’ Initiatives |
|---|---|---|
| Resource extraction |
・Prioritizing suppliers with a focus on biodiversity ・Promoting resource circulation |
・Prioritizing the selection and procurement of suppliers who engage in or use materials that contribute to biodiversity conservation in accordance with the NTT Communications Corporation Guidelines for Sustainability in Supply Chain*4 ・Promoting logistics DX for metal scrap and construction waste based on the Circular Economy Metal Processing Framework (CEMPF); the pilot experiment has been completed, and commercialization discussions are ongoing (as of October 2024) |
| Development of land with high conservation value |
・Efforts to conserve natural environments (such as forests) and reduce impacts on ecosystems |
・Proper forest management and conservation through thinning and replanting, leading to the creation of forest-derived credits ・Starting the cultivation of healthy forests through tree planting in collaboration with stakeholders (approximately 1,000 trees to be planted by October 2024) ・Ecosystem conservation through satoyama (traditional Japanese rural landscapes) preservation activities involving employees and their families |
| Impact on surrounding ecosystems |
*3 A framework proposed by the SBTN, comprised of a series of four steps (avoid, reduce, regenerate and restore, and transform) to plan countermeasures for actions damage the environment
Biodiversity-conscious Guidelines
When constructing new buildings such as data centers, we strive to understand the historical, social, geographical, and biological environment characteristics of the building site and its surrounding areas in accordance with the NTT Group Sustainability Design Guideline for Buildings (established in December 2022), and we reflect that understanding into our designs insofar as possible. In addition to our ongoing efforts to promote decarbonization, resource recycling, and co-existence with the environment, we are also working to create an environment that is safe and resilient to natural disasters, which are becoming more frequent and devastating, and to create more people-friendly workplaces to promote diversity, equity, and inclusion as well as health and productivity management. These efforts will contribute to the realization of a sustainable society.
Along with these considerations, we ensure that construction is completed with consideration for minimal noise and vibration and with attention to community beautification during the work. Furthermore, our outdoor air-conditioning units and emergency power generators are designed to generate exhaust heat and noise levels that do not adversely affect the community.
NTT GROUP Green Design Guideline for Buildings (external site)
Prevention of Environmental Pollution
Everyday production and consumption generating emissions and waste and increasing environmental pollution has long been a social issue.
We are working to reduce emissions and waste generated from our business activities and properly manage and dispose of hazardous substances to prevent environmental pollution and create a safe and secure social environment. In addition, we are seeking to minimize environmental risks associated with business activities, such as environmental pollution, including the leakage of hazardous substances, by formulating guidelines for introducing low-emission vehicles, improving equipment and operations, bolstering management, and conducting thorough inventories.
Chemical substances are properly managed by our maintenance departments in accordance with the Waste Management and Public Cleansing Act, the Law Concerning Special Measures Against PCB Waste, and the Electricity Business Act, which include the assigning of managers. While conducting storage inspections on a regular basis, we maintain a robust system to ensure the rapid coordination of information among senior management and the president in the event of an earthquake or other disaster. We always stay current on changes in environmental regulations, share information among environmental working groups, and optimize our operations in a timely manner. In addition, we are striving to reduce the environmental impact of our supply chain by, for example, urging suppliers to reduce and thoroughly manage the use of hazardous materials based on the NTT DOCOMO Green Procurement Standards.
◆ Prevention of Environmental Pollution at Each Business Stage
