ESG approaches (environment, social, and governance) 1. - - PowerPoint PPT Presentation

ESG approaches (environment, social, and governance)

• 1. Strengthening corporate governance

3

External evaluation of ESG

2013 2014 2015 2016 2017 2018 2019

Infiltration of principles Handling important issues Enhancing information disclosure CSR promotion DJSI Score 4

Strengthening ESG approaches using the DJSI

Handling new issues

 Governance, renewable energy, etc.

New: Asia Pacific Asia Pacific New: World

Promoting CSR strategy (domestic) Promoting CSR strategy (domestic/overseas)

50 100

Asia Pacific Asia Pacific Asia Pacific Asia Pacific World

Infiltration of the CSR Charter (various training sessions, etc.)

Revision of the CSR Charter Revision of the Charter

CSR Conference (every year) CSR Award (every year)

Establishment of a roadmap ▲ ▲ Data processing ▲ ▲ Information disclosure Expanding information disclosure and improving accuracy (PDCA cycle management)

Determining disclosure items and policies

Strengthening transmission

• f information on CSR

activities

Establishment of a roadmap Establishment of a next action plan 66 69 70 76 81 83 84

10 20 30 40 50 60 70 80 90 100 Environment Dimension Social Dimension Economic Dimension Total Score

2013Average 2013Best Score 2013NTT 2019NTT

10 20 30 40 50 60 70 80 90 100 Environment Dimension Social Dimension Economic Dimension Total Score

2013Average 2013Best Score 2013NTT 2019NTT

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Dow Jones Sustainability Indices 2013→2019

（Ｅ） （Ｓ） （Ｇ） 総合

2013 Average 2013 Best 2013 NTT 2019 NTT

NTT was included in the DJSI World in 2018 and 2019.

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Issues concerning governance

Issues

Increasing the number of

• utside board

members Diversifying executive positions Increasing the transparency

• f executive

compensation Effectiveness assessment

• f the Board

Performance- based compensation Succession plan Number of board members

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Efforts for each issues

Issues

Increasing the number of

• utside board

members Diversifying executive positions

Increasing the transparency

• f executive

compensation

Effectiveness assessment

• f the Board

Performance- based compensation Succession plan Number of board members

• Two females were nominated as board

members.

• Three foreign nationals were

nominated as board members of the intermediate holding company for global

• perations.

The number of outside board members was increased by two to four. KPI assessment was revised.

• Questionnaire surveys were conducted.
• Meetings were held to exchange opinions with outside

members of the Board and Audit & Supervisory Board members. Disclosed information was revised. Succession plan was disclosed.

• 2. Diversity

(Women’s empowerment, Diverse human resources and work-style reforms)

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(1) Global Gender Gap Index (GGGI)

Global Gender Gap Index (GGGI)

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Japan ranked lowest among the Group of Seven nations.

Source: The Global Gender Gap Report 2018, World Economic Forum

1st ・ 12th 14th 15th 16th ・ ・ 51st ・ 70th ・ ・

110th

・ 149th Iceland ・ France Germany Britain Canada ・ ・ United States ・ Italy ・ ・

Japan

・ Yemen

GGGI for Japan

The main factor is a gender gap in terms of Economy and Politics.

Source: The Global Gender Gap Report 2018, World Economic Forum

30 60 90 120 150

健康 教育 政治 経済 Education (65th) Economy (117th) Politics (125th) Health (41st)

• Estimated earned income
• Legislators, senior officials, and managers
• Professional and technical workers
• Females in parliament
• Females in ministerial positions
• Years with female head of state

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• Female literacy rate
• Female net primary/ secondary/ gross tertiary

enrolment rate

• Sex ratio at birth
• Healthy life expectancy

0.2 0.4 0.6 0.8 1

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Average salary at NTT

Managers

Non-Managers Employees

Males Females Males Females Variable for “Economy”

• Estimated earned income
• Legislators, senior officials, and managers
• Professional and technical workers

Average age: 46.3 / 44.6 37.4 / 35.6

There is almost no gender gap in terms of salary.

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Ratio of female managers at NTT

12% 33% 6% 17%

0% 5% 10% 15% 20% 25% 30% 35%

Nationwide NTT Nationwide NTT

Both ratio of female managers & non-management employees are about half the nationwide ratio.

Variable for “Economy”

• Estimated earned income
• Legislators, senior officials, and managers
• Professional and technical workers

Managers

Non-Management Employees

Data on managers Source: International Labour Organization (ILO), 2018 Ratio of non-management employees Source: Labour Force Survey for 2018, Statistics Bureau, Ministry of Internal Affairs and Communications

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Ratio of female managers in the NTT Group

10％ or higher

Plan to double the ratio of female managers

2012 2018 2025

2.9%

(717 persons)

5.7%

(1,468 persons)

(Targeted ratio)

Ratio of female employees to all employees: 13.8％ 17.0％ 22.1％

0% 5% 10% 15% 20% 25% 30%

2019 NTT新卒採用

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Ratio of female researchers at NTT

Average ↓ Actively hiring female researchers

9% 10%

0% 5% 10% 15% 20% 25% 30%

2016 日本 2016 NTT

26％

Variable for “Economy”

• Estimated earned income
• Legislators, senior officials, and managers
• Professional and technical workers

2016 Nationwide 2016 NTT 2019 NTT hiring

Source: Report on the Survey of Research and Development for 2016, Ministry of Internal Affairs and Communications *In this survey, “researchers” are persons who have completed university courses (excluding two-year college courses) or have equivalent or more expert knowledge. They are engaged in research with specific themes.

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(2) NTT’s diverse human resources and work-style reforms

Diverse human resources

17 Foreign employees

40%

(120K/ 300K employees) People with disabilities

2.43%

Turning non- regular employees into regular employees

More than 40,000 in 8 years (2012-2019)

LGBT people, etc.

Expand the system applicable to spouses to all partners (2018)

*Legal ratio of employment of people with disabilities: 2.2%

Efficiency improvement and work-style reforms

18 Stay-home/ Remote work system

27,000 employees

(FY2018) Robotic Process Automation (RPA) Introduction of

15,000 robots

Total working hours

1,836 hours

(FY2018) Paid holidays Childcare leave by male employees

96.4%

(FY2018)

58%

(as of the end of December 2018)

※Basic Survey of Gender Equality in Employment Management, Ministry of Health, Labour and Welfare, Childcare leave by male employees; 6％

※General survey on Diverse ways of working, Tokyo Metropolitan Government, Ratio of companies had introduced such systems in Tokyo; 19% ※General survey on Working hours, Nippon Keidanren (Japan Business Federation);

1,998 hours (FY2018)

※General survey on Working Conditions, Ministry of Health, Labour and Welfare; 51％

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For further growth A company where employees create innovation and have high levels of job satisfaction Diverse human resources

• Operational

efficiency improvement

• Productivity

enhancement

Use of RPA, AI, etc.

Work styles / Management reforms

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Strengthening energy business for the environment

Participating in Membership

• f international initiatives,

EP100 and EV100, for energy efficiency etc.

Launching new energy business through NTT Anode Energy Corporation

Green power generation business

• Supplying power using renewable

energy

Advanced EV (electric vehicle) station business

• Providing charging infrastructure

utilizing storage battery / charger

・ ・