Material Issue 1

Business Case To achieve the SDGs (Sustainable Development Goals), the IT industry is expected to connect diverse people, corporations, companies, technologies, systems, data, services, and industries and to develop and provide innovative solutions that facilitate solving social issues.
As sustainability investments are becoming more mainstream, our corporate customers are showing increasing interest in our services that contribute to their sustainability. This is creating new opportunities to expand our sales.
Business strategies In Strategy of the Medium-Term Management Plan, we have set the goal of "solving social issues through collaboration across industries and improve value provided through the utilization of Connectivity" as well as promoting relevant initiatives.
We have therefore created a KPI to measure the provision of services that contribute to improving our customers’ sustainability (number of sustainability-related offerings).
One example of such services is "TradeWaltz®". This trade data sharing platform uses blockchain technology to improve the efficiency and convenience of information exchanges between multiple players in trade transactions.
In the trade operation, paper documents have traditionally been used to exchange relevant information. This requires a great deal of labor and expenses and has exacerbated the shortage of workers.
In response, we have established the operating company of "TradeWaltz®" together with banks, trading-, insurance-, and shipping companies. With the centralized digitization of trade-related operations via "TradeWaltz®", the complex process of trade information exchange can be optimized and the risk of document loss and falsification can be reduced. This can lead to a decrease of the corresponding workload by up to 60%. "TradeWaltz®" can also reduce a company’s storage and transportation of paper documents, which can significantly lower their annual greenhouse gas emissions.

Material Issue 2

Business Case Due to the rapid evolution of technology within the IT services industry, companies require a diverse and talented workforce in order to capture customer demands and technological trends so that they can create innovation.
If we fail to attract and develop talented human resources as planned, it could hinder the achievement of our business plan and the delivery of our systems and services to our customers.
As a result, this could affect the business performance and financial position of our group. In order to address this risk, we have implemented countermeasures and we believe this can suppress the manifestation of the risk to a certain extent.
Business strategies As part of our Group Vision, we have set the following goal: "We enhance our creativity by respecting diversity." Therefore, we have set "maximizing human resources and organizational capabilities" as one of the growth strategies in the Medium-Term Management Plan (FY2022 to 2025).
In order to achieve this, we are focusing on the recruitment and training of employees so that our workforce becomes the key personnel who are capable of conceptualizing business ideas, utilizing advanced technology, or promoting global business in the medium to long term.
We aim to transform ourselves into a company with organizational functions and a corporate culture where diverse individuals can freely express themselves and realize their full potential. We believe that we can thereby achieve the maximum potential of our human resources and our organization, which is essential to execute our strategies. Through the maximized potential of our human resources and organization, we aim to continuously increase corporate value.

Material Issue 3

Business Case Any delay in responding to investor requests for ESG information disclosure could lead to loss of reputation and a decline in share price.
Large typhoons, floods, heat waves, torrential rains, and other abnormal weather events increase the risk of data center operational shutdown due to power outages, flooding, and lightning strikes.
To comply with the Paris Agreement, regulations in the country we operate in will be significantly tightened and the cost burden for CO2 emissions will increase.
Business strategies We have established the Green Innovation Office, a dedicated organization tasked with quickly responding to investor requests for climate-related information disclosure and accelerating efforts to reduce GHG emissions. In response to increasing disclosure requirements, the organization is streamlining the process of calculating and visualizing GHG emissions and promoting action on climate change.
We have focused on improving our business continuity plan (BCP) for our data centers, offices, and telecommunications, and allocated expenses for, among other things, enhancing and renewing data centers, remote access, and maintenance environments.
To minimize the impact of a carbon tax, we have been purchasing renewable energy and installing inhouse renewable energy power generation equipment in our buildings. In March 2018, we completed construction of Mitaka Data Center EAST, which incorporates photovoltaic power generation and an outside air-cooling system using natural energy (outside air in spring, autumn, and winter). This brings the total number of our buildings with photovoltaic systems to three. In 2020, we formed a partnership agreement toward realizing a decarbonized society with Okinawa Prefecture, Japan, and as part of this initiative, in 2022, we achieved carbon neutrality in the power used in our BPO Center there. In FY2022, we expanded the introduction of renewable energy, generating 825MWh of renewable energy (some of which was sold) on a consolidated basis. We are also introducing renewable energy in our data centers and offices globally. Our plan is to achieve Net-Zero in the use of our services in our data centers by 2030 and in our offices by 2035.

We conduct materiality analysis and review at-least annually.

Philanthropic Contributions

Type of Contribution Total amount paid in FY2021 (JPY-Yen)
Cash contributions 313,518,748
Time: employee volunteering during paid working hours 43,655,433
In-kind giving: product or services donations, projects/
partnerships or similar
Management overheads 10,558,030

Type of Philanthropic Activities

Category Percentage of Total Costs
Charitable Donations 56.54%
Community Investments 43.44%
Commercial Initiatives 0.02%
Total (must equal 100%) 100%

The company supports the purposes of activities of the following organizations and makes donations to them as part of the fulfillment of corporate social responsibility.

Political contribution

Name of organization Total amount paid in FY2022 (JPY-Yen)
KOKUMIN SEIJI KYOUKAI (National Politics Association) 7,500,000

Contributions & Other Spending

Itemized figures of Contribution (JPY-Yen) FY2019 FY2020 FY2021 FY2022
Lobbying,interest representation or similar 0 0 0 0
Local, regional or national political campaigns/organizations/candidates 3,500,000 7,500,000 7,500,000 7,500,000
Trade associations or tax-exempt groups (e.g. think tanks) 273,269,000 243,755,000 279,938,000 301,087,000
Other (e.g. spending related to ballot measures or referendums) 0 0 0 0
TOTAL 276,769,000 251,255,000 287,438,000 308,587,000

Largest Contributions and Expenditures

Customer Satisfaction

Evaluation item FY2019 FY2020 FY2021 FY2022
Average of customer satisfaction score (0-10 points) 7.7 7.7 7.8 8.1

*Survey Results of NTT DATA's Customers
[Number of responses by FY]
FY19 : 447 people / 189 companies FY20 : 460 people / 188 companies FY21 : 450 people / 185 companies FY22 : 473 people / 193 companies

Human Rights Due Diligence Process

In FY2023,as part of human rights due diligence, identification of risks within the business was conducted for all value chains (internal and supplier) based on the human rights policy developed in FY2022. The four key issues (D&I, Technology that is based on high ethical standards, Healthy work in daily life and Appropriate expression, speech, and display) set in the Human Rights Policy were reviewed as risk mapping.
It also began to scrutinize the content of minimum risk aversion to avoid damage to our company's reputation when making new investments. Specifically, we decided to use a checklist to check whether we are dealing with possible negative impacts on human rights.

Potential and overt human rights issues covered

Identifying risks within the business, Forced labor, Child labor, Freedom of association, Right to bargain collectively, Pay equity, Discrimination, Women's rights, Occupational health and safety and Privacy

Human rights risk groups covered/identified

Employees, Children,Indigenous, Migrant workers and Outside workers

Human Rights Assessment

Category % of total assessed in
last three years
% of total assessed
where risks have been identified
% of risk with
mitigation actions taken
Own Operations
(as a % of Sites)
100%(18/18) 0%(0/18) 0%(0/18)

Human Rights Mitigation & Remediation

Human rights due diligence in FY2023 confirmed that remediation actions were in place at all domestic and international locations.
In the event of a negative impact on human rights, it is determined that relief efforts will be made to eliminate it.
As noted in the report, there were no incidents of human rights violations in the most recent fiscal year, with zero incidents.