Nippon Telegraph and Telephone : NTT Group Sustainability

NTT Group

Sustainability Report

2022

CONTENTS

002 Editorial Policy

004 NTT Group Sustainability

• CEO Message
• NTT's Mission, Vision, Values
• Process for selecting material issues for three themes for achieving Self as We, which under- pins NTT's vision for a sustainable society
• Contributing to the development of a sustain- able society with medium-term strategies
• Organization for Implementation
• Stakeholder Engagement
• Message from Management (Senior Executive Vice President) (1)
• Initiatives for human capital management
• Message from Management (Senior Executive Vice President) (2)
• IOWN concept
• 2021 highlights

028 Ensuring the positive coexistence of nature and humanity

• Feature 1 Environment and Energy Vision
• Social Challenge 1-3
• Business Activity 1-11
• TCFD

Editorial Policy

The composition of this Data Book closely corresponds with items in the NTT Group Sustainability Priority Activities in order to report comprehensively and in an easy to understand manner to stakeholders, including investors who value ESG. While the report covers the status of the NTT Group overall as much as possible, the scope of data is clearly noted when it is limited to a part of the Group.

For detailed information on the business strategies of NTT (hereinafter "the Company") and operations, please refer to Annual Report 2022. For details on ongoing efforts related to sustainability and achievements at NTT Group companies, please refer to the Sustainability Report published separately by each company.

• NTT IR Sitehttps://group.ntt/en/ir/
• NTT Group Sustainability Sitehttps://group.ntt/en/csr/

Reporting Period	April 1, 2021 to March 31, 2022 Certain activities implemented after March 31, 2022 and the
	outlook for the future are also included.
Publication Date	November 23, 2021 (Previous report: December 2021; Next report (tentative): October 2023)
Decision Making	To determine the content requirements for the publication, the Board of Directors discussed
Process for	sustainability and other basic policies in April 2022, and then the representative director and
Published Content	senior executive vice president acted on their authority under the organizational rules to confirm
	and approve the content.
Reference	• GRI Sustainability Reporting Standards 2016/2018/2019
Guidelines	• Environmental Reporting Guidelines 2018, Japan Ministry of the Environment
	• ISO 26000: Guidance on Social Responsibility
Legend	• Nippon Telegraph and Telephone Corporation is abbreviated as NTT, Nippon Telegraph and
	Telephone East Corporation as NTT East, and Nippon Telegraph and Telephone West Cor-
	poration as NTT West. Some group companies of the NTT Group are defined with "エヌ・ティ・
	ティ" for registration purposes, but in general use the NTT notation. In principle, notations for
	status of incorporation have been omitted from the names of NTT Group companies.
	• Figures in the numerical tables have been rounded and therefore may not necessarily add up
	to the total figures.
	• The names of companies, products and services are the registered trademarks or trademarks
	of each company.
Third-Party	The NTT Group obtained third-party assurance from Sustainability Accounting Co., Ltd. with re-
Assurance	gard to indicators for the fiscal 2021 results of "Improving prosperity for all people and cultures"
	and "Maximizing well-being for all," and for the indicators of CO2 emission volumes (Scopes 1,
	2, and 3), waste disposal volumes, and water intake (clean water) within the fiscal 2021 results
	of "Ensuring the positive coexisting of nature and humanity," from the NTT Group CSR Priority
	Activities. (See page 170)

068 Improving prosperity for all people and cultures

• Feature 2 Transformation to a New Manage- ment Style
• Social Challenge 4-6
• Business Activity 12-21

125 Maximizing well-being for all

• Feature 3 Promoting Supplier Engagement
• Social Challenge 7-9
• Business Activity 22-30

Scope of	The Data Book covers the NTT Group in its entirety. The scope of reporting for some sections are as follows.
Disclosure	[A] Main companies: NTT, NTT East, NTT West, NTT Communications, NTT DOCOMO, NTT DATA, NTT Facilities, NTT COMWARE, NTT Urban Solutions
	[B] Domestic Group companies: 282
	[C] Domestic and overseas Group companies: 964
	[D] Main companies + operating companies

NTT East Group, 6 companies

(NTT EAST-HOKKAIDO, NTT EAST-TOHOKU, NTT EAST-KANSHINETSU, NTT EAST-MINAMIKANTO, NTT EAST SERVICE, NTT-ME),

NTT West Group, 4 companies

(NTT MARKETING ACT, NTT BUSINESS SOLUTIONS, NTT FIELDTECHNO, NTT BUSINESS ASSOCIE WEST)

[E] Companies subject to NTT Group plans to double the number of female managers

<[D] + the companies below: 23> NTT Urban Development, NTT FINANCE, NTT BUSINESS ASSOCIE, NTT BUSINESS ASSOCIE EAST, NTT Electronics, NTT Advanced Technology, NTT LOGISCO, NTT ADVERTISING, NTT TechnoCross, InfoCom Research, NTT LEARNING SYSTEMS, NTT TRAVEL SERVICE, NTT CLARUTY

Note: Unless specifically stated otherwise, the scope of environmental performance statistics refers to domestic companies.

161 Data List

170

Independent Assurance Statement

Inquiries

171 GRI Content Index

Nippon Telegraph and Telephone Corporation Otemachi First Square East Tower, 5-1, Otemachi 1-chome,Chiyoda-ku, Tokyo 100-8116, Japan Sustainability Promotion Office, General Affairs Department

TEL: [phone]https://group.ntt/en/csr/contact/

CEO Message

Ensuring the positive coexistence

of nature and humanity

Improving prosperity for all

people and cultures

Maximizing well-being for all

0 0 2

S u s t a i n a b i l i t y R e p o r t 2 0 2 2

At a Glance NTT Group

The experience and advanced technologies developed by the NTT Group will be used to achieve a "paraconsistent"* society, and contribute to resolving social issues faced by society as a whole. (*Where opposing concepts or matters are both achieved inclusively)

Consolidated	Consolidated
Operating Revenue	Operating Income
Ratio (FY2021)	Ratio (FY2021)

Consolidated
Operating Revenue	Integrated ICT
(FY2021)
¥12,156.4 billion	Business

In addition to promoting sales of 5G services and "docomo Hikari," etc., for corporate business, we promoted initiatives for "docomo Business," a corporate business brand unifying NTT DOCOMO, NTT Communications, and NTT Comware, to support all corporate customers with one-stop service.

In the smart life area, we are advancing collaboration with various businesses and worked to provide new added value.

41.7%	59.7%
(¥5,870.2 billion)	(¥1,072.5 billion)

	Regional	Centered on the Hikari Collaboration Model provides wholesale fiber-optic access services to various	22.8%	24.5%
Consolidated	service providers, and also strengthening the solutions business with the aim of revitalizing local
communications	communities and regional economies.	(¥3,207.6 billion)	(¥440.0 billion)
Operating Income
(FY2021)

¥1,768.6 billion

	In the Global Solutions business, we worked to enhance our ability to provide services in growth areas,
Global Solutions	including the data center business and managed services, as well as expanding and providing various
Business	IT services in a reliable manner, such as digitization proposals and system integration in response to
	market changes.

No. of Employees

(FY2021)

25.7%	11.7%
(¥3,615.2 billion)	(¥210.5 billion)

333,850

Others (Real Estate,	Provides services related to the real estate business, energy business, and other businesses.	9.9%	4.0%
Energy and Others)		(¥1,396.0 billion)	(¥72.5 billion)

CEO Message

* The percentage of each segment's simple total (including inter-segment transactions)

List of Memberships (as of November 2022) Keidanren (Japan Business Federation, general incorporated association; vice chair) Tokyo Employers' Association (honorary chairman, deputy chairman, president) Telecommunications Carriers Association (incorporated association; chairman, director) ITU Association of Japan (general incorporated association; director, council member, advisor)

Association of Radio Industries and Businesses (general incorporated association; director, member of the management adviser) ICT Ecology Guideline Council Telecommunication Technology Committee (incorporated association; vice chairman)

Ensuring the positive coexistence		Improving prosperity for all		Maximizing well-being for all		0 0 3	S u s t a i n a b i l i t y R e p o r t 2 0 2 2
of nature and humanity		people and cultures

NTT Group's Roots

NTT Group has

continued to develop a range of solutions as a partner that enables society and industry to move ahead.

It was some 70 years ago that the telephone and telegraph services provided by the Ministry of Communications and Ministry of Telecommunications were handed over to Nippon Telegraph and Telephone Public Corporation. With economic growth booming following the country's post-war recovery, the company began exploring a range of avenues to meet growing public demand for telephone services that connect in an instant.

After subsequently undergoing a name-change to NTT, the company expanded its businesses including the regional communications, long-distance and international communications, mobile communications, and global data communications sectors, based on its roots that aim to respond to the needs of customers and challenges faced by industry and society.

Focused on creating a better future for Japan and the world... Never losing sight of the goal as "Your Value Partner."

Privatized in 1985.

Our Dynamic Loop - The Heart of NTT

The single continuous curve represents the dynamism and our commitment for continuous innovation and delivering value to people and society.

A small inner loop at the top of the mark ensures that the voice of customers and society is always heard. This symbol represents NTT's vision and its commitment to developing a harmonious society through both business and cooperation.

CEO Message

Ensuring the positive coexistence

of nature and humanity

Improving prosperity for all

people and cultures

Maximizing well-being for all

0 0 4

S u s t a i n a b i l i t y R e p o r t 2 0 2 2

NTT Group's History

NTT has contributed to lifestyles of people through its business activities.

Ever since being established as the Nippon Telegraph and Telephone Public Corporation in 1952, the NTT Group has developed a wide range of technologies and services, and has been delivering infrastructure for services like mobile phones, internet and cloud computing that could never have been imagined in the past. At the heart of these achievements is NTT's underlying commitment to working as a partner that supports society and industry as a whole.

1952

"Nippon Telegraph and Telephone Public Corporation" established

In 1952, the telephone and telegraph services delivered by the Ministry of Communications and Ministry of Telecommunications were handed over to Nippon Telegraph and Telephone Public Corpor a tion . T he c omp a n y developed various technologies to meet growing public demand for telephone services that connect in an instant.

1980s

NTT Group born from telecommunications liberalization

Nippon Telegraph and Telephone Public Corporation was privatized in 1985 following liberalization of telecommunications services, resulting in the birth of "Nippon Telegraph and Telephone Corporation (NTT)."

1987

Mobile telephone services Launched

1988

NTT Data established World's first ISDN service Launched

1990s

Expanded telephone services with view of building an advanced telecommunications society

Phone services with a broad range of plans to suit customer usage scenarios were launched. The Open Computer Network (OCN) was launched with the view of expanding Internet use.

1991

NTT DOCOMO established

1996

OCN internet connection services launched

1998

i-mode services launched

1999

NTT Group transitioned to holding company structure

2000s

Full-scaleroll-out of broadband ubiquitous services

NTT began offering the FLET'S ISDN always-on service as well as the B FLET'S optical fiber service, facilitating the widespread roll-out of high-speed,high-capacity communication services.

2000

ISDN flat-rate services launched

2001

Optical fiber services launched for general households

2004

Osaifu-Keitai (Mobile Wallet) announced Hikari Denwa services launched

2007

Hikari TV services

Launched

2008

Cloud services launched

2009

Android OS smartphones Launched

2010s

Global ICT services framework developed

NTT Group had primarily been operating in markets in Asia, Europe, and the US, and acquired Dimension Data and Keane in preparation for delivering total ICT services around the globe, including Australia, South America, Africa, and the Middle East.

2010

Acquired Dimension Data LTE (Xi) services launched

Acquired Keane (currently NTT DATA, Inc.)

2013

iPhone launched

2014

"Kake-hodai & Pake-Aeru" phone plans launched

"Hikari Collaboration Model" launched "docomo Hikari" launched

2016

Acquired Dell Services

(currently NTT DATA, Inc.)

2018

"Your Value Partner 2025" medium- term management strategy formulated

2020s

IOWN concept released

Framework involving devices, networks and information processing infrastructure built on optical and other innovative technologies, to deliver high- speed and high-capacity communications, and vast computing resources exceeding the limits of existing infrastructure. Specifications are planned to be finalized by 2024 for a 2030 roll-out.

2020

5G services launched from March 25 Communication speeds up to 4.1 Gbps downstream

2021

Provided support for the Olympic and Paralympic Games Tokyo 2020 as a Gold Partner 2021 Green Innovation toward 2040 announced A new management style unveiled

CEO Message		Ensuring the positive coexistence		Improving prosperity for all		Maximizing well-being for all		0 0 5
	of nature and humanity		people and cultures

S u s t a i n a b i l i t y R e p o r t 2 0 2 2