Sustainability Report 2020 (PDF: 26.2MB/90 pages)

SoftBank Corp. supports the Sustainable Development Goals

SoftBank Corp. https://www.softbank.jp/en/corp/sustainability/

Sustainability

Report

2 0 2 0

2020 Report Sustainability .Corp SoftBank

Printed in Japan

Corporate Philosophy

Information Revolution ̶ Happiness for Everyone

Since foundation, the SoftBank Group has sought to use the Information Revolution to contribute to the wellbeing of people and society. Driven by this corporate philosophy, the SoftBank Group will continue to pursue growth by harnessing the unlimited potential of the Information Revolution, deploying in the right way to benefit humanity.

Vision

Aiming to Become the Corporate Group Needed Most by People Around the World

The SoftBank Group aims to contribute to people's happiness through the Information Revolution, and to become "the corporate group needed most by people around the world." To achieve this vision, SoftBank will advance the Information Revolution that brings "happiness for everyone" with leading technologies essential to the times and superior business models.

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Contents

CEO Message	4
SoftBank Sustainability
Sustainability Strategy	6
Materiality Approach	7
SoftBank SDGs	9
Materiality Selection Flow	10
SoftBank Value Creation Process	12
Management Strategy for Accelerating Corporate
Growth ̶Growth Strategy x Structural Reforms̶	14
Materiality KPIs	16
Sustainability Promotion Structure	18
SDGs Dissemination and Awareness	20
COVID-19 Response and Customer Support	22

Materiality

• Building society and industry through DX

(digital transformation)

24

• Connecting people and information to create new

excitement	44
③ Creating new business through open innovation	64

• Contributing to the global environment with the

power of technology	86
⑤ Building high-quality social communication
networks	106
⑥ Developing a resilient management foundation	122

Initiatives Supporting Business Activities

Customer Relationship Management	164
Brand Management	166
Community Participation
̶Social Contribution Initiatives (CSR Initiatives)̶	168
External Evaluations	174
Third-party Assurance and Certification	176
Company Overview	178

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CEO Message

SoftBank

Materiality 1

Materiality 2

Materiality 3

Materiality 4

Materiality 5

Materiality 6

Initiatives Supporting

Sustainability

Business Activities

CEO Message

Guided by our corporate philosophy "Information Revolution ̶ Happiness for everyone," SoftBank has contributed to society through the provision of innovative services utilizing leading-edge technologies. However, the world presently faces a variety of increasingly severe social challenges, including the spread of infectious diseases, large-scale natural disasters and environmental degradation.

To address these issues, the international community is working in close cooperation to achieve the Sustainable Development Goals (SDGs), fostering great expectations for technologies and services that will contribute to resolving health crises, climate change, the digital divide and other issues.

Also, based on the idea of corporations being responsible members of society, as well as the view that contributions to the creation of sustainable communities are managerial priorities, SoftBank has identified six materiality (priority issues) that must be addressed. We will thoroughly pursue the achievement of SDGs in line with the concept of "a world where all things, information and minds are connected."

In March 2020, we launched 5G commercial services. Going forward, our 5G infrastructure and services will act as a catalyst to accelerate digital transformations (DX) across all industries and throughout society.

Utilizing leading-edge technologies and providing various solutions to resolve issues that arise from social change, SoftBank will create even more business opportunities and aim to realize more comfortable and abundant lifestyles.

At the same time, we are focusing efforts on initiatives to improve accessibility for customers who use our products and services. By offering a number of convenient services provided via the latest smartphones and smart devices that are closely connected to people's lifestyles, and by developing customer support for the elderly and those unfamiliar with technology by offering smartphone classes led by smartphone advisors, for example, we facilitate environments in which everyone can access information comfortably with the aim of creating a society with access for all.

Additionally, we recognize efforts focused on global environmental issues to be a managerial priority. With global consensus on the 2015 Paris Agreement and the need for uniform efforts across the world, initiatives to address climate change are becoming increasingly important.

SoftBank endorses recommendations by the Task Force on Climate-related Financial Disclosures (TCFD), promotes information disclosures related to climate change and makes efforts to conserve resources, including paperless initiatives and energy saving, through the use of smart devices in corporate activities and IoT in business. Even within the businesses conducted by SoftBank, we contribute to the conservation of energy and resources as well as the protection of biodiversity throughout all of society by providing solutions that leverage digitalization, AI and IoT.

I believe SoftBank's business itself contributes to the achievement of SDGs, and at the same time, also leads to sustainable business growth. Going forward, we will continue to work to realize our corporate philosophy, achieve SDGs and the resolve social issues by further promoting our Beyond Carrier growth strategy.

Ken Miyauchi

President & CEO SoftBank Corp.

SoftBank will thoroughly pursue the SDGs in line with the concept of "a world where all things, information and minds are connected."

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CEO Message		SoftBank		Materiality 1		Materiality 2		Materiality 3
	Sustainability

SoftBank Sustainability

Sustainability Strategy

Contributing to Business Growth and the Creation of a Sustainable Society Under the

Concept of "A World Where All Things, Information and Minds are Connected" to achieve SDGs

Faced with a variety of increasingly serious social problems, companies must work toward the global SDGs that aim for a peaceful, prosperous and sustainable society.

Since our founding, we have contributed to resolving social issues through technology based on our corporate philosophy "Information Revolution ̶ Happiness for Everyone."

SoftBank has declared "a world where all things, information and minds are connected" as the concept by which we will achieve SDGs, which is a universal theme for the realization of a sustainable society. We have identified six priority issues (materiality) as the theme for realizing this concept. We believe these six materiality themes embody our corporate philosophy "Information Revolution ̶ Happiness for Everyone" and serve as an important compass connected to our "Beyond Carrier" management strategy. Through the identification and response to materiality, SoftBank will accelerate its "Beyond Carrier" management strategy and contribute to realizing a society as envisioned by the SDGs.

Materiality 4		Materiality 5		Materiality 6		Initiatives Supporting
			Business Activities

Materiality Approach

Solving Social Issues through Business and Corporate Activities

Based on the concept "a world where all things, information and minds are connected" SoftBank will contribute to the realization of a sustainable society through the power of technology, which is our strength, and identify six materiality issues as themes for achieving sustainable growth. These materiality themes will accelerate our "Beyond Carrier" management strategy, which is positioned as the key driver of our business.

In addition to solving social issues through business by "building society and industry through Digital Transformation (DX)" and "creating new businesses through open innovation," materiality involves "contributing to the global environment with the power of technology," "building high-quality social communication networks" and "developing a resilient management foundation" to solve social issues through corporate activities. The six materiality themes originate from contemporary society and our business, as well as the achievement of SDGs by 2030, becoming a visionary perspective for the next 10 years from now that requires SoftBank's unique capabilities.

Corporate Philosophy

Information Revolution ̶ Happiness for Everyone

Vision

Aiming to Become the Corporate Group Needed Most by People

Around the World

Materiality

Solving social issues through business

	Building society and	Connecting people and		Creating new business
	industry through DX	information to create		through open		Six
	(digital transformation)	new excitement		innovation
											materiality
		Solving social issues through corporate activities						themes
	Contributing to the	Building high-quality		Developing a resilient
	global environment with	social communication
		management foundation
	the power of technology	networks

Management Strategy

Beyond Carrier Strategy (see P.14)

business through issues social Solving

activities corporate through issues social Solving

Building society and

• Industry through DX (digital transformation)

Connecting people and

• information to create new excitement

• Creating new business through open innovation

Contributing to the

• global environment with the power of technology

Building high-quality

• social communication networks

• Developing a resilient management foundation

SDGs value creation

1. Expand and enhance the efficiency of the industrial base through cutting-edge technologies
2. Create new industries through DX
3. Revitalize local communities (regional revitalization)

SDGs value creation

1. Realize attractive customer value through the spread of smart devices
2. Help everybody enjoy the value of the latest devices and communication methods
3. Leveraging ICT to create new lifestyles and enhance the foundations for daily life

SDGs value creation

1. Develop new business models with cutting-edge technologies
2. Incubate and spiral-upcutting-edge businesses overseas
3. Build systems to recruit and develop human resources to lead growth and create new businesses

SDGs value creation

1. Contribute to the mitgation of climate change through technology and business
2. Promote a recycling-based society (circular economy)
3. Realize a prosperous society through the spread of renewable energy

SDGs value creation

1. Prepare sustainable life infrastructure
2. Construct robust communications infrastructure to contribute to disaster prevention and mitigation
3. Promotion of data security and privacy protection initiatives

SDGs value creation

1. Enhance corporate governance and ensure its effectiveness
2. Sustainable growth through cooperation with stakeholders
3. Enhance employee happiness with diversity and inclusion
4. Enhance productivity with advanced workplace environments

6

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Accelerate management strategy Management strategy: Beyond Carrier

Developing a resilient management foundation

Building high-qualitysocial communication networks

Contributing to the global environment with the power of technology

Solving social issues through corporate activities

Contribute

to SDGs

Telecommuni- Activities cations through our technologies core business

Connecting people and information to create new excitement

Creating new business through open innovation

Building society and industry through DX (digital transformation)

Corporate philosophy: Information Revolution ̶ Happiness for everyone Embodiment of our corporate philosophy

Six materiality

themes

Solving social issues through business

Strategic Positioning of SDGs

Solving social issues

through corporate activities

Note: Created by SoftBank using a joint research report regarding the promotion of investment in problem-solvinginnovations from the Japan Business Federation, The University of Tokyo, and the Government Pension Investment Fund (GPIF)

Solving social issues

through business

Minimize negative

social impacts

Focus on medium- to

long-termrisk reduction

Maximize positive

social impacts

Medium- to long-term

growth focused on Japan

Society5.0

Methods of Achieving SDGs

CEO Message		SoftBank		Materiality 1		Materiality 2		Materiality 3
	Sustainability

Materiality Approach

SoftBank identified three materiality themes each for the "resolution of social issues through business activities" and the "resolution of social issues through corporate activities" that determine the value that contribute to the SDGs through the materiality activities and outcomes. These have been arranged according to the key actions, businesses, services and initiatives for realizing the creation of value.

Materiality List

	Materiality	SDGs value creation	Main business/activities
		Create new industries	(1) Expand and enhance the	● Utilize 5G, big data, AI, etc.
		and provide solutions	efficiency of the industrial	● Enhance industry efficiency through AI, Robotic Process
	❶	for transforming various	base through	Automation (RPA), IoT, etc.
	businesses in society	cutting-edge technologies
	Building society	by utilizing cutting-edge
	(2) Create new	● We engage in the creation of new businesses and industries, and contribute to
	and industry	technologies such as	industries through DX	economic growth, through collaboration with companies in a range in industries.
	5G and AI.
Solving	through DX		(3) Revitalize local	● Solve social issues by providing DX solutions for local communities and local governments
		communities	● Co-creation to realize smart cities
			(regional revitaliza-	● Implement initiatives on partnership agreements/Expand partnership
			tion)	agreements and personnel exchange with local governments
social		Provide new experiences	(1) Realize attractive	● Provide a broad range of customer value, price plans and
	promoting the adoption of	devices	● Hold smartphone classes in our shops around Japan
	❷	and enrich the lifestyles of	customer value through	services through the spread of smart devices and multi-branding
	our customers by	the spread of smart	● Leverage 5G to provide new experiences, including VR and sports viewing, etc.
issues	Connecting	smart devices.
people and	(2) Help everybody enjoy the	● Enhance accessibility to news and other information provided on the Internet
Concurrently, create value
information to	for both consumers and	value of the latest devices	● Promoting the expansion of Internet communications throughout the world
and communication methods
enterprises by providing
through	create new	partners with attractive	(3) Leveraging ICT to create	● Initiatives aimed at expanding and enhancing online shopping from smartphones,
excitement	platforms that connect	new lifestyles and	providing new payment settlement methods, and realizing more efficient logistics
	people to information.	enhance the	● Leveraging ICT to contribute to the education, healthcare and
			foundations for daily life	finance fields
business		Develop cutting-edge	(1) Develop new business	● Realize a secure and comfortable mobility society
Creating new	technologies and innovative	models with cutting-edge	● Build a high-altitude communications network in the stratosphere
companies. Concurrently,	cutting-edge	● Enhance the efficiency of transportation by leveraging AI and data
		business models in Japan by	technologies	● Provide opportunities for mobility through the practical utilization of self-driving vehicles
	❸	leveraging our relationships	(2) Incubate and spiral-up	● Create global communities by providing innovative community-style workspaces
	with global leading innovative
	business through	promote the development of	businesses overseas	analytics technologies to provide taxi dispatch platforms
	a highly-skilled workforce and	(3) Build systems to	● Promote a cashless economy through the spread of barcode and QR code payments
	open innovation	the establishment of an	● Job posting system that aims to shift human resources to new
		organization that supports	recruit and develop	businesses and growth businesses
		the expansion and
		human resources to	● Allocate personnel to new businesses through improvements in operational efficiency
		penetration of new
		lead growth and	● Human resources recruitment and development systems
		businesses.
		create new businesses	necessary to create and promote new businesses
		Contribute to mitigating	(1) Contribute to the	● More efficient use of electricity
	❹	climate change,	mitigation of climate	●Transition to energy-efficient equipment
	promoting a circular	change through	● Leveraging IoT for more efficient use of electricity in consideration of the environment
	economy and the	technology and	● Shift electricity consumed by mobile phone base stations to
	Contributing to	adoption of renewable	business	electricity using renewable energy*
	the global	energy by utilizing		Note: Achieved primarily through the use of non-fossil certificates
	cutting-edge technolo-	(2) Promote a	designated as renewable energy
	environment	sustainable global	● Mobile phone recycling, the introduction of carry bags using alternative materials to
Solving	of technology	gies to pass on a	(3) Realize a prosperous	● Spread the use of renewable energy by providing the "Shizen
	with the power	environment to the	recycling-based society	paper and plastic, and the reduction of paper usage through the use of smart devices
		next generation.	(circular economy)	● Utilize waste water resources and reduce waste products
social			society through the spread	Denki" electric power service
		of renewable energy
	❺	Commit to maintaining	(1) Prepare sustainable	● Construct 5G mobile communications systems to enable "high-speed,
issues	a constantly-connected	life infrastructure	high-capacity,""ultra-high-reliability,low-latency," and "massive device connections"
Building	and stable network		● Provide communications services with stable connections
and to protecting our
(2) Construct robust	● Redundancy in backbone networks
high-quality	customers' important
communications infrastructure	● Secure communications in the event of a disaster through
data, as communica-
through	social	tion networks serve as	to contribute to disaster	tethered balloon radio relay systems
prevention and mitigation
communication	a lifeline.
	(3) Promotion of data	● Network monitoring and operation utilizing AI
networks		security and privacy	● Develop and operate high-level security environments
corporate			protection initiatives	●Thoroughly educate employees on security
	ongoing dialogue with	through cooperation	● Sound and transparent information disclosure
		Conduct corporate	(1) Enhance corporate	● Enhance corporate governance systems and thoroughly prevent compliance violations
		governance with	governance and	● Implement sophisticated internal controls, eliminate antisocial
		integrity to earn the	ensure its effectiveness	forces, and prevent corruption
		trust of society through
		(2) Sustainable growth	● Ethical procurement and transactions
activities	❻	stakeholders. In	with stakeholders	● Cooperation with local communities through initiatives such as disaster
management	developing a	diversity and	● Promote participation by women, including recruitment and employment
	Developing a	addition, foster		management agreements and the Social Emergency Management Alliance (SEMA)
	innovation and improve
	resilient	the well-being of our	(3) Enhance employee	● Support for employee growth and career realization
		employees by	happiness with	● Fair evaluation and recruitment system
	foundation	progressive workplace	inclusion	of persons with disabilities, and initiatives related to LGBT persons
	environment where		● Harassment prevention
		diverse human
		(4) Enhance productivi-	● Work-style reforms
		resources can thrive
		utilizing cutting-edge	ty with advanced	● Promote health and productivity management
		technologies.	workplace	● Relocate the corporate headquarters to a smart building
			environments	● Promote diverse working styles unconstrained by time or place

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Materiality 4		Materiality 5		Materiality 6		Initiatives Supporting
			Business Activities

SoftBank Sustainability

SoftBank SDGs

SDGs Initiatives as a Key Driver of Growth

SoftBank considers its contribution to the achievement of SDGs targets to be an important management priority and is working to enhance corporate value and realize a sustainable society by contributing to the resolution of social issues pursued by the global community through our business and corporate activities. In addition to establishing the concept of "a world where all things, information and minds are connected" to promote our response to the SDGs, we are focused on the achievement of SDGs and society 10 years hence in 2030, which is within the scope of the SDGs, and we have identified six priority issues (materiality) that take into account the importance of our corporate and business activities as well as external stakeholders. By responding to these six materiality themes, we will accelerate our "Beyond Carrier" growth strategy and target further corporate growth.

The Cabinet Office (Government of Japan) advocates "Society 5.0," a new society realizing economic development and the resolution of social issues through an advanced system integrating the cyber space and physical (actual) space. In addition, the Keidanren has announced the "Society 5.0 for

SDGs" concept that aims to achieve economic development and the

resolution of social issues by maximizing the use of innovative technologies

to achieve the SDGs. This means, technology is essential for achieving SDGs. In other words, technology can "minimize negative social impacts" and

"reduce medium- to long-term risks" while "maximizing positive social impacts" and achieving "medium- to long-term enterprise growth," giving it a

central role in leading the achievement of the SDGs.

For SoftBank, whose main business is telecommunications and

technology, contributing to the achievement of SDGs will be useful in resolving social issues from a variety of perspectives, and at the same time responding to external stakeholder demands will become the driving force that will further advance our business and corporate growth.

Furthermore, to ensure SoftBank contributes to the SDGs, we must ensure that the corporate and business activities conducted by our Company and group companies address social issues. We also believe that it is important to inculcate a collective awareness among employees. In each business, initiative and individual job performed by our Company and each of our group companies, we promote an understanding of all 17 SDGs and 169 targets, setting advance

goals and plotting steps backwards to the present with a focus on the goals of SDGs to consider and respond to business, initiatives and work with an awareness that enables us to work toward each of the SDGs independently.

We will resolve issues faced by society and people to realize further contributions to a sustainable

society targeted in the SDGs with all group company employees

working together toward the SDGs.

Response to the SDG Compass

The SDG Compass was developed in March 2016 by Global Reporting Initiative (GRI), the UN Global Compact and the World Business Council for Sustainable Development (WBCSD) to explain the impact of the SDGs on individual businesses as a corporate SDGs implementation guide aimed at providing the tools and knowledge necessary for placing sustainability at the center of corporate strategies. It is a global guideline for corporate integration of SDGs into business strategies, a way to measure contributions to SDGs and a method for managing performance and implementation status. The SDG Compass framework comprises STEP 1 to STEP 5. SoftBank also utilizes STEP 1 to STEP 5 in implementing the PDCA cycle in accordance with the SDG Compass.

STEP1		STEP2	STEP3	STEP4	STEP5
Understanding		Determining		Establishing		Integrating		Reporting and
SDGs		Priority Issues		Targets		Management		Communications
SoftBank discusses and		SoftBank uses the		We set targets and		We position materiality		We proactively
considers the importance and		SDGs 17 goals and		KPIs for the identified		as a key driver for		disseminate and
necessity of actions affecting		169 targets as		six materiality themes		promoting our		report on SDG
our business and services by		benchmarks to		to achieve the SDGs.		management strategy		activities to internal
setting advance goals and		identify materiality				"Beyond Carrier" and		and external
plotting steps backward to the		based on the				are building a system		stakeholders.
present for the achievement of		importance of our				for promoting the
SDGs in every department and		external stakeholders				SDGs together with
at all levels of management.		and our Company.				management.
⇒P.10/11/20		⇒P.10		⇒P.16		⇒P.9/18		⇒P.20/21

Note: Prepared by SoftBank, based on the GRI, the UN Global Compact and "SDG Compass," issued by WBCSD

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