Social Data
Materiality
Material Issue 1
| Material Issue | Enhancing Employee Engagement (Future of Work) |
|---|---|
| Business Case | The growth and profitability of our group are significantly influenced by our ability to secure and develop excellent human resources who can provide value to our clients with their expertise in digital technologies and other specialized areas. If we fail to retain such employees, it may become challenging to achieve our business plans, and the delivery of our systems and services could be adversely affected. Furthermore, by offering an inclusive work environment, we enable our employees to work in a manner that is conscious of both their time and the added value they bring to our businesses. This, in turn, fosters innovation, enhances adaptability to change and supports sustainable business growth. Therefore, improving employee engagement is a critical business priority for us. |
| Business strategies | Our group is dedicated to fostering professional human resources with advanced expertise and adaptability to change, as well as individuals who can excel on a global scale. We promote the development of training systems and a wide range of content tailored to the diverse expertise and aspirations of our employees. In addition, we encourage the cultivation of a culture of cocreation and mutual learning through community-based learning. Also, by establishing an environment that allows for flexibility in working locations and hours based on business processes and objectives, we are transforming into a company where each individual can thrive more easily. Specifically, we offer opportunities for employees to connect with each other, such as onboarding sessions, to move quickly to retain employees who have joined our group and improve overall employee retention. We also focus on providing career and skill development opportunities, including various programs aimed at enhancing global business capabilities and digital skills. Regarding work style innovation, we have implemented discretionary labor, remote work, and flexible working hours, as well as initiatives to reduce working hours through monitoring. Through these diverse measures, we are committed to enhancing employee engagement. |
Material Issue 2
| Material Issue | Securing and Developing Diverse Talent (Human Rights & DEI) |
|---|---|
| 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. Regarding the advancement of women's careers, we have set targets for increasing the ratio of female employees. Our initiatives include training for female candidates for leadership positions, seminars promoting career development for employees on or about to take childcare leave, and seminars on balancing work and childcare commitments. 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
| Material Issue | Loss of reputation due to delayed responses, Data center shutdown due to abnormal weather, Increase in costs due to carbon pricing |
|---|---|
| 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.
Political contribution
| Name of organization | Total amount paid in FY2023 (JPY-Yen) |
|---|---|
| KOKUMIN SEIJI KYOUKAI (National Politics Association) | 7,500,000 |
Contributions & Other Spending
| Itemized figures of Contribution (JPY-Yen) | FY2020 | FY2021 | FY2022 | FY2023 |
|---|---|---|---|---|
| Lobbying,interest representation or similar | 0 | 0 | 0 | 0 |
| Local, regional or national political campaigns/organizations/candidates | 7,500,000 | 7,500,000 | 7,500,000 | 7,500,000 |
| Trade associations or tax-exempt groups (e.g. think tanks) | 243,755,000 | 279,938,000 | 301,087,000 | 272,689,000 |
| Other (e.g. spending related to ballot measures or referendums) | 0 | 0 | 0 | 0 |
| TOTAL | 251,255,000 | 287,438,000 | 308,587,000 | 280,189,000 |
Largest Contributions and Expenditures
| Name of organization | Total amount paid in FY2023 (JPY-Yen) |
|---|---|
| Japan Business Federation | 8,158,000 |
| Institute Telecommunications Association THE TELECOMMUNICATIONS ASSOCIATION (TTA) | 6,480,000 |
| KOKUMIN SEIJI KYOUKAI (National Politics Association) | 7,500,000 |
Customer Satisfaction
| Score | ||||
|---|---|---|---|---|
| Evaluation item | FY2020 | FY2021 | FY2022 | FY2023 |
| Average of customer satisfaction score (0-10 points) | 7.7 | 7.8 | 8.1 | 7.9 |
*Survey Results of NTT DATA's Customers
[Number of responses by FY]
FY20 : 460 people / 188 companies FY21 : 450 people / 185 companies FY22 : 473 people / 193 companies FY23 : 426 people/ 185 companies
Human Rights Due Diligence Process
In accordance with the NTT Group Human Rights Policy, we, NTT DATA Group undergoes a human rights due diligence process to identify, prevent, mitigate and correct human rights issues on a global scale and to raise human rights awareness.
The specific human rights due diligence process implemented in FY2023 is as follows:
- Subject Screening (Selection of overseas HQs, major group companies in Japan and overseas, companies with overseas groups based in high-risk countries, and companies based on size)
- Implementation and Analysis of SAQ (Sent SAQ/Questionnaire and analyzed responses and number of reports from each company as input information)
- Preparation of Risk Map (Preparation of risk map based on response to risk reduction, severity of impact, and possibility of occurrence)
- Consideration and implementation of corrective measures for high-risk items (Consideration of reduction measures for high-risk items)
- Direct Dialogue (Discussions with each company to consider and implement reduction measures)
- Disclosure (Disclosure of results of human rights due diligence in sustainability report, etc.)
In addition, when making new investments, we scrutinize the content of minimum risk avoidance to avoid damaging the company's credibility.
Specifically, we use a checklist to check whether we have addressed anything that may have a negative impact on human rights.
The risk map is reviewed on a regular basis. Each year, the risk is identified and reviewed to determine whether the risk map should be updated as needed.
Potential and overt human rights issues covered
Identifying risks within the business: Forced labor, Human trafficking. Child labor, Freedom of association, Right to collective bargaining, Equal remuneration, Discrimination, Women's rights, Occupational health and safety and Privacy
Human rights risk groups covered/identified
Own Employees, Women, Children, Indigenous people, Migrant workers, third-party employees, and local communities
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％ (20/20) | 100％ (20/20) | 100％ (20/20) |
Human Rights Mitigation & Remediation
In fiscal 2023, we created a human rights risk map based on the responses to the SAQ, which consists of risk and vulnerability assessments of major Group companies in Japan and overseas as well as overseas Group companies in high-risk countries, and identified "Occupational Safety and Health and Appropriate Working Environment," "Harassment" and "Accessibility including the Digital Divide, as risks requiring attention.
In fiscal 2024, we will grasp the details of the situation through dialogue with the organizations where issues were identified, and will continue to implement risk reduction measures such as developing good practices within the Group and establishing systems.
At the same time, we will start to formulate a human rights due diligence policy and guidelines based on discussions with human rights officers in Japan and overseas, and clarify the direction and standards we are aiming for, leading to corrective actions.
We will also actively conduct dialogues through membership in external organizations such as the BSR and the United Nations Global Compact, in order to improve human rights due diligence and enhance discussions on human rights business.