NTT DATA Formulates New Vision for Net-Zero GHG Emmissions by 2040

Revised plan for tackling climate change brings forward targets by 10 years

TOKYO – June 13, 2023 – NTT DATA, a global digital business and IT services leader, today announces "NTT DATA NET-ZERO Vision 2040," a revised version of its previous plan for responding to climate change, formulated in 2021, that had set targets for 2050. The new vision was developed in response to the growing call worldwide to accelerate measures to achieve Net-Zero¹ carbon emissions, with a goal to achieve Net-Zero by 2040.

Background and outline of revised targets

NTT DATA has set near- and long-term targets to address the problem of climate change and is pursuing a range of measures. In June 2020, NTT DATA Group received certification from the Science Based Targets initiative (SBTi)² for its GHG emissions reduction targets. In March 2021, NTT DATA Group formulated a vision for addressing climate change with the aim of Net-Zero GHG emissions by 2050 in accordance with the Paris Agreement, and implemented a range of measures that included the introduction of renewable energy, energy conservation, and supply chain engagement.

NTT DATA has now set an even higher standard for its Net-Zero GHG emissions targets in keeping with growing global trends for initiatives to achieve Net-Zero, and the expansion of its business through the integration with NTT Limited. Specifically, the timeline for achieving Net-Zero based on the SBTi standard has been brought forward by 10 years to 2040 from 2050, with these targets incorporated into the newly formulated NTT DATA NET-ZERO Vision 2040. NTT DATA aims to achieve Net-Zero for direct and indirect emissions from its own operations (Scope 1 and 2) for data centers by 2030, the entire company including offices and other facilities by 2035, and its entire supply chain (Scope 3) by 2040.

Fig. Targets and reduction image by 2040 (*NTT DATA plans reapply for SBT approval of its emissions targets, including NTT Limited. Targets for fiscal 2030 are a 68% reduction in Scope 1 and 2 emissions (compared to fiscal 2021 levels), and a 42% reduction for Scope 3 emissions.)

Examples of measures to achieve 2040 Net-Zero

Scope 1 and 2 (NTT DATA)

• Energy optimization using digital technology for everything from data centers and other facilities to applications, with a focus on Green Data Centers®.
• 100% implementation rate for renewable energy at data centers and offices.

Scope 3 Upstream (Suppliers)

• Priority procurement from suppliers who are reducing emissions at the same level as NTT DATA Group (SBT 1.5°C certification level).
• Reductions in power consumption through the development of green software³, efficient power use, and scaling back of hardware use through consolidation.
• Promoting the circular economy through reuse and recycling.

Scope 3 Downstream (Clients)

• Facilitating fundamental measures such as moving IT services to the cloud to reduce GHG emissions at client sites, and shifting business models from equipment sales to service provision.
• Through clients engagement, as a partner to reduce GHG emissions, introducing renewable energy for the services used by clients.
• Contributing to reductions in client emissions beyond Scope 3 downstream, such as utilizing Green IT⁴ for visualization of GHG emissions and greater energy efficiency.

Beyond value chain mitigation⁵

• Verification and social implementation of new technologies (blue carbon, forestry IoT, etc.).

Future Plans

NTT DATA will continue to promote Net-Zero initiatives and aim to meet its company targets, as well as contribute to the greening of clients and society by providing new technologies that contribute to the realization of Net-Zero.

Inquiries regarding this initiative
NTT DATA Corporation
Sustainability Innovation Department
climate@kits.nttdata.co.jp

Notes

<sup>1. Net-Zero is the reduction of GHG emissions to as close to zero as possible, and removing or absorbing any remaining emissions from the atmosphere, to achieve a balance between emissions and absorption. Net-Zero as defined by SBTi is the reduction of supply chain GHG emissions as much as possible, with the final 10% or less of emissions that are not possible to cut (residual emissions) neutralized through absorption by forests or other carbon removals (achieving a state in which emissions and absorption are balanced), so that GHG emissions released into the atmosphere are de facto zero.
2. Science Based Targets (SBTs) are targets for reducing corporate GHG emissions, based on scientific evidence conforming to the Paris Agreement. The targets are set by the Science Based Targets initiative (SBTi), a joint initiative for climate change between the United Nations Global Compact (UNGC), CDP (formerly the Carbon Disclosure Project), World Resources Institute (WRI), and the World Wide Fund for Nature (WWF).
3. Green software refers to software with low GHG emissions. The main characteristics of green software are: 1) Power consumption by the software itself is low; 2) The software uses fewer hardware resources; and 3) The way power is used is optimized, with the software running on electricity derived from renewable energy.
"The Trend of Decarbonization through the Use of Green Software" (DATA INSIGHT, March 3, 2023)
https://www.nttdata.com/jp/ja/data-insight/2022/0303/ (Japanese)
4. Green IT refers to contributions to the reduction of the environmental load for clients and society by lessening the environmental impact (including greenhouse gas emissions) from IT equipment throughout its life cycle, or utilizing the advanced information processing and communication technologies afforded by IT to enhance the efficiency of production, distribution, management, and other operations.
5. "Beyond value chain mitigation" as defined by the SBTi refers to activities to avoid or reduce GHG emissions outside the scope of a company's value chain, or activities to remove and store greenhouse gases from the atmosphere.</sup>

<sup>* "Green Data Center" is a registered trademark of NTT DATA Corporation in Japan.
* Names of products, companies, and organizations in this document are trademarks or registered trademarks of those entities.</sup>