Climate Change Data

Environmental Metrics

ESG Focus Areas

• Creating a Safe and Secure Information and Communication Society
• Offering Reliable Information and Communications Services
• Initiatives to Conserve the Global Environment
• Vitalizing the Company by Developing a Diverse Workforce

Environmental Achievements

• Reduced power consumption by implementing power-saving technologies in base stations and data centers (e.g., tribrid power control, Type-VII radio equipment). Achieved a mobile phone material recycling ratio of 99.8%
• Implemented the Green Road Project, donating funds to environmental protection initiatives based on customer participation.
• Reduced CO2 emissions through various initiatives, although specific quantified figures are not readily available in the report.

Social Achievements

• Held KDDI Mobile Phone Learning Classes to improve children's information literacy (1356 seminars held).
• Launched the women’s professional advancement project “Win-K”, increasing female managerial ratio to 2.7%.
• Increased employment ratio of disabled individuals to 1.95%.
• Implemented the Advisor Program to support new employees.
• Donated JPY 1 billion to disaster relief efforts following the Great East Japan Earthquake.

Governance Achievements

• Established the KDDI Action Guideline and revised it in April 2011 to reflect changes in laws and regulations.
• Established the KDDI Group Business Ethics Committee to address compliance issues.
• Implemented a fluctuating remuneration system linking executive compensation to corporate income.

Climate Goals & Targets

Environmental Challenges

• Damage to telecommunications facilities due to the Great East Japan Earthquake.
• Need to improve information literacy among children.
• Need to further promote diversity and inclusion in the workplace.
• Need to reduce environmental impact of ICT usage.

Mitigation Strategies

• Implemented early restoration of services after the earthquake.
• Revised KDDI Mobile Phone Learning Class programs to improve educational effectiveness.
• Launched initiatives to promote women's professional advancement and employment of disabled individuals.
• Developed and implemented energy-saving technologies in base stations and data centers, promoted recycling programs.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• KDDI Purchasing Policy ensures compliance with laws, regulations, and social norms.

Climate-Related Risks & Opportunities

Physical Risks

• Damage to telecommunications facilities due to extreme weather events.

Transition Risks

• Not disclosed

Opportunities

• Development of energy-efficient products and services.

Reporting Standards

Frameworks Used: GRI (Global Reporting Initiative) Sustainability Reporting Guidelines 2006, Ministry of the Environment, 2007 Environmental Reporting Guidelines, ISO 26000

Certifications: ISO 14001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Type-VII radio equipment, tribrid base stations, KDDI Paperless FAX Service, KDDI Secure PC Access service.

Awards & Recognition

• 2010 Internet IR Best Company Award, 4th Kids Design Award

Environmental Metrics

ESG Focus Areas

• Safer and more resilient connected world
• Cyber security and privacy protection
• Fulfilled life brought through ICTs
• Rewarding workplaces for diverse talents
• Respect for human rights and fairness in business
• An energy-efficient, circular economy

Environmental Achievements

• Manually disassembled used mobile phones, achieving a 99.8% material recycling rate.
• Reduced CO2 emissions (though specific figures are not provided in a readily extractable format).

Social Achievements

• Launched smart agriculture projects, reducing farmers' working hours.
• Implemented various measures to support employees' work-life balance, resulting in a high rate of return after parental leave.
• Promoted diversity and inclusion initiatives, including support for women's advancement and LGBT+ employees.

Governance Achievements

• Established a robust information security framework and obtained ISMS 27001 certification.
• Implemented a Business Ethics Helpline to address compliance concerns.

Climate Goals & Targets

Environmental Challenges

• Maintaining resilient communications infrastructure during natural disasters.
• Protecting customer data from cyberattacks.
• Addressing the digital divide and promoting ICT literacy.
• Recruiting and retaining diverse talent in a shrinking workforce.
• Reducing environmental impact from increasing data traffic.

Mitigation Strategies

• Investing in disaster-resistant infrastructure and developing recovery support systems.
• Strengthening information security governance and implementing comprehensive security measures.
• Providing ICT education and awareness campaigns.
• Implementing various initiatives to support work-life balance and promote diversity and inclusion.
• Promoting energy efficiency and renewable energy use in telecommunications facilities.

Supply Chain Management

Supplier Audits: 96% response rate to Responsible Procurement Surveys (FY2019)

Responsible Procurement

• KDDI Guidelines for Responsible Supply Chain; KDDI Sustainable Procurement Policy

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events damaging telecommunications facilities.

Transition Risks

• Regulatory changes and market shifts related to climate change.

Opportunities

• Providing services that reduce society's environmental impact through ICTs.

Reporting Standards

Frameworks Used: GRI, SASB, TCFD

Certifications: ISO 14001, ISMS 27001

Third-party Assurance: Lloyd’s Register Quality Assurance Limited (Scopes 1 & 2); Waseda University (Scope 3)

Sustainable Products & Innovation

• Tribrid base stations; energy-efficient data centers; products designed with universal design principles.

Awards & Recognition

• The 64th Maejima Hisoka Award; ITU-AJ Accomplishment Awards; Information and Communication Technology Award; SCAT president award; Innovative Major Companies Ranking 2019.

Environmental Metrics

ESG Focus Areas

• Climate Change
• Cyber Security and Privacy Protection
• Regional Revitalization
• Diversity and Inclusion
• Human Rights
• Circular Economy

Environmental Achievements

• Reduced CO2 emissions by 7% compared to FY2013 (non-consolidated, Japan). New target set for a 50% reduction by FY2030 compared to FY2019.
• 99.8% recycling rate for post-consumer mobile phones (industry average 72.6%).
• Zero emissions from retired telecommunication facilities (final disposal rate: 1% or less).

Social Achievements

• Launched various initiatives under KDDI Sustainable Action, focusing on building resilient infrastructure, sustainable development, and creating a digital society.
• Received the highest PRIDE Index Gold Award for five consecutive years for LGBTQ+ inclusivity.
• Implemented various programs to support work-life balance, including childcare and family care leave, resulting in 100% reinstatement after parental leave for both men and women (FY2020).

Governance Achievements

• Announced support for TCFD recommendations in April 2021.
• Established a Sustainability Committee chaired by the President.
• Implemented a performance-linked stock compensation system for managerial employees.

Climate Goals & Targets

Environmental Challenges

• Climate change risks (physical risks like extreme weather, transition risks like regulatory changes).
• Cybersecurity threats and data privacy concerns.
• Decreasing working-age population and growing regional economic disparity.
• Human rights issues in the supply chain.

Mitigation Strategies

• Developed alternative sourcing strategies and implemented measures to enhance resilience to extreme weather events.
• Strengthened information security governance, implemented data security training, and established a CSIRT.
• Launched regional revitalization initiatives using 5G and IoT, and invested in human resource development.
• Implemented Responsible Procurement Surveys and the KDDI Sustainable and Responsible Procurement Guidelines to address human rights concerns in the supply chain.

Supply Chain Management

Supplier Audits: 96% response rate to Responsible Procurement Surveys (FY2020); on-site audits conducted for high-risk suppliers.

Responsible Procurement

• KDDI Sustainable and Responsible Procurement Guidelines
• Responsible Procurement Surveys

Climate-Related Risks & Opportunities

Physical Risks

• Increased severity and frequency of disasters caused by extreme weather.

Transition Risks

• Carbon taxation risk
• Increased costs for new energy-saving technologies.

Opportunities

• Development of energy-efficient products and services.

Reporting Standards

Frameworks Used: GRI, SASB, TCFD

Certifications: ISO 14001

Third-party Assurance: Lloyd’s Register Quality Assurance Limited (Scope 1 & 2 emissions); Waseda University (Scope 3 emissions)

UN Sustainable Development Goals

• Not disclosed

KDDI Sustainable Action aligns with multiple SDGs; details not explicitly provided in the report.

Sustainable Products & Innovation

• AI for facial expression recognition, Hands-free Nursing Care Support System, aquatic drone equipped with hydrogen fuel cells.

Awards & Recognition

• Corporate Philanthropy Award for Resource Recycling (2021)
• PRIDE Index Gold Award (five consecutive years)
• Award of Excellence at the 2020 Excellent Material Awards concerning Consumer Education

Environmental Metrics

ESG Focus Areas

• Biodiversity
• Climate Change
• Circular Economy
• Human Rights
• Supply Chain Sustainability

Environmental Achievements

• Established an au communication zone in Shiratani Unsui Ravine, Yakushima, minimizing environmental impact.
• Implemented nature-friendly submarine cable installation, avoiding damage to coral and sea turtle habitats.
• Switched to FSC-certified plastic-free paper bags at au Shops, au Style, and UQ Spot.
• Undertook forest conservation activities at Mt. Takao, planting trees to promote biodiversity.

Social Achievements

• Collaborated with local communities in Yakushima to develop a communication environment without damaging the natural environment.
• Engaged in stakeholder dialogues to address concerns and improve practices.
• Implemented joint supply chain sustainability activities with NTT and SoftBank.
• Developed labor-saving paddy management using IoT in Toyooka, Hyogo Prefecture.

Governance Achievements

• Established a Sustainability Committee headed by the President to oversee sustainability initiatives.
• Created the Sustainability Management Division to centrally manage sustainability efforts.
• Registered as a TNFD Adopter, committing to proactive disclosure of biodiversity and natural capital information.

Climate Goals & Targets

Environmental Challenges

• Impact of telecommunications business on land use, including habitat loss for rare and invasive species.
• Risks associated with raw material procurement (metals) and their impact on terrestrial land use change and water resources.
• Potential for soil pollution from toxic substances in mobile device production.
• Impact of invasive alien species on ecosystems.

Mitigation Strategies

• Qualitative and quantitative risk assessments using TNFD's LEAP approach and indicators like ENCORE, NBI, and EPI.
• Designing communication cable routes to suit environmental conservation areas and building base stations considering landscape protection.
• Conducting field surveys to verify vegetation habitat status and analyze the impact on animal species.
• Implementing measures to reduce risks from land modifications, raw material procurement, and facility construction.
• Developing and implementing an automated blue carbon measurement system.

Supply Chain Management

Responsible Procurement

• Standardized sustainability questionnaire for suppliers (jointly with NTT and SoftBank).
• Monitoring of supply chain to ensure no human rights violations through the use of conflict materials.

Climate-Related Risks & Opportunities

Physical Risks

• Natural disasters
• Extreme weather events

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Development of energy-efficient products and services
• Expansion into renewable energy sectors

Reporting Standards

Frameworks Used: GRI, TCFD, TNFD

Certifications: FSC

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 13 (Climate Action)
• Goal 14 (Life Below Water)
• Goal 15 (Life On Land)

KDDI's initiatives contribute to these goals through renewable energy adoption, climate change mitigation, biodiversity conservation, and sustainable resource management.

Sustainable Products & Innovation

• Sea-to-air drone for underwater inspections
• Aquatic drones for seaweed bed surveys
• IoT-enabled paddy sensors for labor-saving water management

Awards & Recognition

• Minister of Internal Affairs and Communications Award at the 31st Global Environment Awards (seaweed bed survey using aquatic drones)