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

ESG approaches (environment, social, and governance)

1. Strengthening corporate governance

External evaluation of ESG 3

Strengthening ESG approaches using the DJSI 2013 2014 2015 2016 2017 2018 2019 Infiltration of Infiltration of the CSR Charter (various training sessions, etc.) principles Establishment of a next action plan Promoting CSR Handling new issues Handling Establishment of a road map Promoting CSR strategy Establishment of a roadmap strategy  Governance, renewable (domestic) important (domestic/overseas) energy, etc. issues Revision of the CSR Revision of Charter the Charter ▲ ▲ Enhancing Strengthening transmission Determining Expanding information of information on CSR Data processing information disclosure disclosure and improving activities ▲ ▲ items and accuracy (PDCA cycle disclosure policies management) Information disclosure CSR CSR Conference (every year) promotion CSR Award (every year) 100 84 83 81 76 DJSI 69 70 66 Score 50 New: Asia Pacific Asia Pacific Asia Pacific Asia Pacific Asia Pacific Asia Pacific 4 New: World World

Dow Jones Sustainability Indices 2013 → 2019 （Ｅ） （Ｓ） （Ｇ） 総合 100 100 90 90 80 80 70 70 60 60 NTT was included 50 50 in the DJSI World 40 40 in 2018 and 2019. 30 30 20 20 10 10 0 0 Environment Dimension Environment Dimension Social Dimension Social Dimension Economic Dimension Economic Dimension Total Score Total Score 2013Average 2013Average 2013Best Score 2013Best Score 2013NTT 2013NTT 2019NTT 2019NTT 2013 Average 2013 Best 2013 NTT 2019 NTT 5

Issues concerning governance Increasing the number of outside board members Number of Diversifying board executive members positions Issues Increasing the Succession transparency of executive plan compensation Performance- Effectiveness based assessment compensation of the Board 6

Efforts for each issues The number of outside board members was increased by two to four. Increasing the number of outside board - Two females were nominated as board members members. Number of Diversifying - Three foreign nationals were board executive nominated as board members of the members positions intermediate holding company for global operations. Issues Increasing the Succession transparency plan of executive compensation Disclosed information was revised. Succession plan was disclosed. Performance- Effectiveness based assessment - Questionnaire surveys were conducted. compensation of the Board KPI assessment was - Meetings were held to exchange opinions with outside revised. members of the Board and Audit & Supervisory Board members. 7

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

(1) Global Gender Gap Index (GGGI) 9

Global Gender Gap Index (GGGI) Iceland 1st ・ ・ France 12th Germany 14th Britain 15th Canada 16th ・ ・ ・ ・ Japan ranked lowest United States 51st ・ ・ among the Group of Seven Italy 70th ・ ・ nations. ・ ・ Japan 110th ・ ・ 149th Yemen Source: The Global Gender Gap Report 2018, World Economic Forum 10

GGGI for Japan The main factor is a gender gap in terms of Economy and Politics. 健康 Health (41st) - Sex ratio at birth 0 - Healthy life expectancy 30 60 90 120 経済 教育 150 Economy Education (117th) (65th) - Female literacy rate - Female net primary/ secondary/ gross tertiary enrolment rate - Estimated earned income - Legislators, senior officials, and managers - Professional and technical workers 政治 Politics (125th) - Females in parliament - Females in ministerial positions - Years with female head of state 11 Source: The Global Gender Gap Report 2018, World Economic Forum

Variable for “Economy” Average salary at NTT - Estimated earned income - Legislators, senior officials, and managers - Professional and technical workers Non-Managers Managers Employees 1 0.8 There is almost 0.6 no gender gap in terms of salary. 0.4 0.2 0 Males Females Males Females Average age: 46.3 / 44.6 37.4 / 35.6 12

Variable for “Economy” Ratio of female managers at NTT - Estimated earned income - Legislators, senior officials, and managers - Professional and technical workers Non-Management Managers Employees 35% 33% Both ratio of 30% female managers & 25% non-management 20% 17% employees are about 15% 12% half the nationwide ratio. 10% 6% 5% 0% Nationwide NTT Nationwide NTT 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 13 Communications

Ratio of female managers in the NTT Group (Targeted ratio) 10 ％ or higher Plan to double the ratio of female 5.7% managers (1,468 persons) 2.9% (717 persons) 2012 2018 2025 Ratio of female employees to all employees: 14 13.8 ％ 17.0 ％ 22.1 ％

Variable for “Economy” Ratio of female researchers at NTT - Estimated earned income - Legislators, senior officials, and managers - Professional and technical workers 30% 30% 26 ％ 25% 25% Average 20% 20% ↓ 15% 15% Actively hiring 10% 9% 10% 10% female researchers 5% 5% 0% 0% 2019 NTT hiring 2016 Nationwide 2016 NTT 2016 NTT 2016 日本 2019 NTT 新卒採用 *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. 15 Source: Report on the Survey of Research and Development for 2016, Ministry of Internal Affairs and Communications

(2) NTT’s diverse human resources and work-style reforms 16

Diverse human resources Turning non- regular LGBT people, employees into etc. regular employees Expand the system applicable to spouses to all partners (2018) More than 40,000 in 8 years (2012-2019) Foreign People with employees disabilities 40% 2.43% (120K/ 300K employees) *Legal ratio of employment of people with disabilities: 2.2% 17

Efficiency improvement and work-style reforms Stay-home/ Robotic Process Remote work Total working Automation system hours (RPA) 27,000 employees 1,836 hours Introduction of (FY2018) (FY2018) 15,000 robots ※General survey on Working hours, ※General survey on Diverse ways of working, Nippon Keidanren (Japan Business Federation); Tokyo Metropolitan Government, Ratio of companies had introduced such systems in Tokyo; 19% 1,998 hours (FY2018) Childcare leave by male Paid holidays employees 96.4% 58% (FY2018) (as of the end of December 2018) ※General survey on Working Conditions, ※Basic Survey of Gender Equality in Employment Management, Ministry of Health, Labour and Welfare; 51 ％ Ministry of Health, Labour and Welfare, 18 Childcare leave by male employees; 6 ％

For further growth - Operational efficiency Diverse Work styles / improvement human Management - Productivity resources reforms enhancement Use of RPA, AI, etc. A company where employees create innovation and have high levels of job satisfaction 19

Strengthening energy business for the environment Participating in Membership Launching new energy business through NTT Anode Energy Corporation of international initiatives, EP100 and EV100, Green power generation for energy efficiency etc. business - Supplying power using renewable energy Advanced EV (electric vehicle) station business - Providing charging infrastructure utilizing storage battery / charger ・ ・ 20