NTT

Carbon per million dollars of revenue. The legacy industry-standard reference (CDP, MSCI). Useful for cross-sector context, but distorted by margin — high-margin firms appear artificially efficient. Read alongside the operational and asset intensities for the full picture.

OpEx (operating expenditure) is the running cost of the business — staff, services, energy, materials. This shows how carbon-intensive operations are per million dollars of spend. Removes the margin distortion that revenue-based ratios introduce.

EVIC (Enterprise Value Including Cash) is the firm's total capital footprint — equity + debt + cash + minority interest. The EU's standard intensity measure (SFDR PAI 3) — answers: how much carbon does each million of capital deployed in this business produce?

PP&E (Property, Plant & Equipment) plus leased real-estate assets is the firm's physical infrastructure on the balance sheet. This shows the carbon intensity of that physical footprint — uses Scope 1+2+3 for consistency with the other headline intensities. Surfaces stranded-asset risk for asset-heavy firms.

NTT increased absolute renewable energy consumption from 1.27 TWh in FY2020 to 3.53 TWh in FY2023, with the share of renewable energy in data center electricity use rising from 11.3% in FY2020 to 48.1% in FY2023. Renewable adoption is the primary driver of the Scope 2 market-based decline from 3.75 MtCO2e (FY2020) to 2.17 MtCO2e (FY2023), even while location-based emissions ticked up due to operational expansion.

The Group Greenhouse Gas Emission Reductions illustration shows 'Offsets' as the residual 10% gap to be closed between 2030 and 2040 net zero. No specific DAC/BECCS/biochar program disclosed. Primary focus is on emissions reduction (45% renewables + 45% IOWN energy savings + 10% energy conservation) rather than carbon removals. Algae growth technology with Euglena is being explored for CO2 fixation as an innovative environmental technology.

• Fuel- and energy-related emissions (Category 3)

  Category 3 emissions reached 4.16 MtCO2e in FY2023, the single largest Scope 3 category. This reflects upstream (well-to-tank) emissions from the substantial electricity NTT consumes; cleaner grid electricity and renewable PPAs reduce both Scope 2 and this dependent category.

• Data center efficiency (PUE management)

  Average power usage efficiency (PUE) across NTT data centers was 1.68 in FY2023, broadly stable from 1.65 in FY2020. PUE is a primary operational lever to constrain Scope 2 emissions growth alongside scaling renewable procurement.

• Highly efficient data centers with PUE <1.5 and decentralised architecture to reduce energy intensity

  NTT's green bond framework designates construction, renovation and operation of data centers with Power Usage Effectiveness below 1.5 as eligible green projects. The IOWN concept also enables a shift from large consolidated data centers to distributed small/medium 'data stations' linked by all-photonics networks, supporting local renewable energy production and consumption. This architectural transition directly reduces per-unit energy consumption. NTT reports CO2 emissions for data centers as an impact reporting item under its Green Finance Framework.

• IOWN photonics technology to reduce NTT's own energy consumption by 45% by FY2040

  NTT is developing its IOWN (Innovative Optical and Wireless Network) concept, targeting 100× improvement in power efficiency for the photonics part and 45% reduction in total energy consumption compared to the FY2040 outcome scenario. IOWN's All-Photonics Network and photoelectric merging technology replace electronic signal processing with optical technology, dramatically reducing power consumption in data centers, base stations and computing infrastructure. NTT aims for partial commercial deployment by end of FY2022, with scale-up from 2026 onward; IOWN is expected to account for 45% of total energy volume by FY2040.

• EV100 commitment targeting 100% EV adoption in Japan by 2030

  NTT has incorporated EV100 into Group company business plans as a corporate commitment. The target is 50% EV adoption in Japan by FY2025 and 100% by FY2030, representing a fleet electrification lever for the Group's own operations. FY2021 EV adoption stood at 15%, up from 8% in FY2020, showing steady progress toward the FY2025 interim target.

• Energy-efficient data centers and TPR campaign

  The TPR (Total Power Revolution) Campaign cut electricity usage by ~180 million kWh in FY2021. NTT Communications operates data centers with PUE<1.2 and NTT COMWARE achieves PUE<1.1 (world-leading). The fiscal 2025 target for power efficiency per data transmission in telecommunications is 2x FY2017 (1.9x achieved in FY2021); FY2030 target is 10x FY2013.

• 5G base station power-saving and Green 5G service

  DOCOMO targets 2030 carbon neutrality for mobile business. Green 5G service uses solar-powered green base stations and corporate PPA renewable electricity to make 5G effectively zero-emission. Self-learning air-conditioning controls, consolidation of base station equipment, and high-voltage direct current supply reduce mobile network power consumption.

• Remote work and decentralized organization reducing commute/office emissions

  Remote work ratio reached 70.8% in late FY2021 with Remote Standard introduced July 2022 for ~30,000 employees. Decentralization trial of holding company organization from October 2022 to regional offices (Takasaki, Kyoto). 551 satellite offices by Sept 2022 (target 260+). Drives reductions in business travel and commuting Scope 3 categories while improving employee wellbeing.

• IOWN photonics-electronics convergence to cut network/data center power by 45%

  IOWN (Innovative Optical and Wireless Network) is NTT's flagship decarb lever, targeting 100x power efficiency in photonics-applied portions of networks and computing. Target: reduce GHG by 45% via IOWN energy savings. All-Photonics Network plus disaggregated computing aims to address rapidly growing data traffic. Services begin during FY2022 with broader rollout from 2026. Penetration of IOWN technologies targets 15% of total energy volume by FY2030, 45% by FY2040.

• Capital goods & purchased products supply chain

  Categories 1 (3.81 MtCO2e) and 2 (4.03 MtCO2e) together represent ~42% of NTT Group's Scope 3 emissions in FY2023, making supply chain decarbonisation — particularly upstream embodied carbon in IT and network equipment — a dominant dependent lever.

• Use of sold products (Category 11)

  Category 11 (Use of products sold) contributed 3.5 MtCO2e in FY2023, representing ~19% of NTT's Scope 3 footprint. As a major telecom and ICT services provider, customer-side energy use of NTT equipment is one of the largest dependent decarbonisation levers.

• Downstream leased assets (Category 13)

  Category 13 (Leased assets downstream) generated 2.85 MtCO2e in FY2023 — emissions from data center colocation customers and leased network equipment users. Reducing these requires partnership with tenants on energy procurement and efficiency.

• Supply chain GHG reduction via NTT Group Green Procurement Standards and JAC CSR audits

  NTT launched updated Supply Chain Sustainability Promotion Guidelines in 2022 and published NTT Group Green Procurement Standards requesting suppliers reduce greenhouse gas emissions throughout the supply chain. NTT joined the Joint Audit Co-Operation (JAC) in July 2022 as the first Asian telecom operator, enabling CSR audits of ICT suppliers globally. These measures extend NTT's decarbonisation influence across its upstream supply chain, consistent with Scope 3 Category 1 and 4 reduction ambitions.

• Green by ICT: customer decarbonisation via NTT DATA consulting, SI and emissions visualisation platform

  NTT DATA provides end-to-end green consulting (strategy design), green SI (low-carbon system development) and a green platform (standardised emissions visualisation) to help customers achieve their own carbon neutrality. The GHG emissions visualisation platform supports supplier-specific calculation methods that incorporate emissions reduction efforts of suppliers into procuring companies' own reductions, enabling cross-supply-chain decarbonisation. NTT frames this 'Green by ICT' approach as both a growth opportunity and a societal contribution, alongside promotion of further DX and Remote World to reduce customer travel and facility emissions.

• Green by ICT — enabling societal emissions reductions 10x NTT's own

  NTT targets contribution to societal GHG reduction of at least 10x NTT's own Scope 1+2 emissions by FY2030. FY2021 contribution was 11.3x own emissions (5,001 ktCO2 reduction vs 444 ktCO2 own). Levers include DX acceleration, remote work promotion, green electricity retail via NTT Anode Energy/docomo Denki Green, and new carbon-neutral data center services with non-fossil certificates.

• Scope 3 supplier engagement and Green Procurement Standards

  NTT requires suppliers to set GHG reduction targets equivalent to or higher than NTT's (15% Scope 3 reduction by FY2030 vs FY2018). Direct dialogue with ~40 critical suppliers annually plus SAQ for ~130 critical suppliers (90% of procurement value). Joined JAC in July 2022 for global supplier audits. C-Turtle platform helps suppliers visualize and reduce emissions with supplier-specific calculation method.