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  1. Sustainability

Materialities

Four Materialities (Key Challenges) to Be Addressed by the Net One Group

The Net One Group has identified four materialities (key challenges) that it will address moving forward: “realization of a safe and secure advanced information society,” “thriving professional personnel,” “contribution to a decarbonized society,” and “maintaining and enhancing a governance structure for sustainable growth.” To facilitate the success of activities associated with these materialities, the Group has established KPIs for each of them.

Realization of a safe and secure advanced information society

Realization of a safe and secure advanced information society
Social value and value for the Company (outcomes) Social value
  • Applying ICT to contribute to the resolution of social challenges such as “declining birthrates and an aging population,” “regional revitalization,” and a “achievement of a decarbonized society”
  • Building high-quality ICT infrastructure
  • Facilitating customer business success
  • Realization of innovative work styles
 Value for the Net One Group
  • Enhancing already dominant capabilities associated with ICT infrastructure technology
  • Establishing effective systems for delivering services capable of addressing challenges facing customers and society at large
Policies governing corresponding initiatives (reasons behind selection of materiality) We will contribute to realizing a safe and secure advanced information society through high-quality services, with our strength in network technology as our core.
Theme 1 KPI fiscal 2023 result
Provide solutions and services by challenge and domain The Net One Group aims to generate business growth and facilitate the achievement of a sustainable society by providing solutions and services that address social challenges associated primarily with three focus areas identified in its new Medium-Term Business Plan: “digital government,” “Society 5.0,” and “smart manufacturing.” Revenue from social challenge-solving solutions ¥30.0 billion (fiscal 2024 target)

¥21.6 billion

(fiscal 2023 target : ¥16.1 billion)
Theme 2 KPI fiscal 2023 result
Expand and promote the service business We will accelerate our shift toward a business model focused on service-related operations as we endeavor to generate sustainable medium- to long-term growth amid a period of major transition within the ICT market. Service ratio

50% *1 (fiscal 2024 target)

*1 Lowered from previous target of 55%

49.1%

(fiscal 2023 target : 50%)

Thriving professional personnel

Thriving professional personnel
Social value and value for the Company (outcomes) Social value
  • Developing ICT professionals and innovative human resources
  • Creation of employment opportunities for diverse human resources
  • Achieving a society in which everyone has equal access to rewarding and fulfilling employment
  • Developing talents who will lead Japan’s next generation of digital professionals
 Value for the Net One Group (enhancement of non-financial capital)
  • Capturing new business opportunities
  • Securing and developing superior human resources
  • Generating increases in productivity and profitability through higher levels of engagement
  • Acquiring human resources who can create new intellectual capital while also protecting our existing intellectual capital
Policies governing corresponding initiatives (reasons behind selection of materiality) In order to achieve sustainable growth, we will train and secure diverse personnel, who are the source of our competitiveness, and build a work environment where each employee can play an active role.

Theme 1 KPI fiscal 2023 result
Develop talent for the next generation To enhance the competitiveness of solutions and services it is providing in pursuit of business growth, the Net One Group will focus on acquiring digital transformation-related skills capable of strengthening the functions of its corporate divisions while also stepping up its development of both security and cloud personnel. In addition, we will facilitate the development of future ICT personnel by leveraging our intellectual properties to provide learning opportunities for students who will lead Japan’s next generation of ICT professionals. Security personnel CISSP holders: 80 (2030 target)

30

(fiscal 2023 target : 28)
Registered information security specialists: 100 (2030 target)

60

(fiscal 2023 target : 56)
Cloud personnel Front divisions: 50% increase compared to 2021 (2030 target)

516

(fiscal 2023 target : 498)
DX personnel (data analysis qualification holders) Corporate divisions: increase of 150 individuals (2030 target)

42

(fiscal 2023 target : 39)
Business improvement proposals: 100 proposals (cumulative target for 2022–2030)

28

(fiscal 2023 target : 13)
Training personnel for next-generation ICT Next-generation IT personnel training programs implemented through industry–academia collaboration 10 curricula, 52 courses, and 3,092 total participants for fiscal 2023
Theme 2 KPI fiscal 2023 result
Promote diversity and inclusion We will strive to improve productivity and promote creation of innovation by developing environments and systems that allow diverse personnel to recognize each other and make the most of their individual qualities. Ratio of female managers 15% (2030 target)

8.1%

(fiscal 2023 target : 7.5%)*2

*2 As of April 1, 2024
Ratio of newly hired female graduates 50% (2030 target)

42.7%

(fiscal 2023 target : 36.5%)*2

*2 As of April 1, 2024
Rate of male employees taking paternity leave and special leave for childbirth 90% (2030 target)

74.0%

(fiscal 2023 target : 65.0%)

*3 As of March 31, 2024

Contribution to a decarbonized society

Contribution to a decarbonized society
Social value and value for the Company (outcomes) Social value
  • Achieving a decarbonized society through services that facilitate carbon neutrality
  • Green growth for customers and society
 Value for the Net One Group (enhancement of non-financial capital)
  • Securing business opportunities
  • Expanding earnings generated through services
  • Ensuring compliance with environmental regulations
Policies governing corresponding initiatives (reasons behind selection of materiality) We will address climate change by both reducing greenhouse gas emissions through business, and reducing the environmental impact of our own business processes.
Theme 1 KPI fiscal 2023 result
Reduce greenhouse gas emissions through business We will both contribute to the realization of a decarbonized society and achieve growth of our own company by developing and providing “green solutions” that contribute to reducing greenhouse gas emissions generated by both our customers and society at large. Expansion of green solutions Development and expansion of solutions and services that contribute to the reduction of greenhouse gas emissions generated by customers and society at large

Three solutions/services created

(fiscal 2023 target : three)
Theme 2 KPI fiscal 2023 result
Reduce emissions generated through our business operations We will strive to reduce risks caused by climate change by reducing emissions in our own business processes and supply chains. Expansion of sales of low-power-consumption products and services Scope 2 & 3 GHG emissions intensity per unit of revenue: Target reduction of 9.8% for fiscal 2024

13.6%

(fiscal 2023 target : 5.7%)

Maintaining and enhancing a governance structure for sustainable growth

Maintaining and enhancing a governance structure for sustainable growth
Social value and value for the Company (outcomes) Social value
  • Maximizing shareholder value
  • Facilitating a healthy capital market
 Value for the Net One Group (enhancement of non-financial capital)
  • Establishing trust-based relationships with stakeholders
  • Enhancement of corporate value
  • Reduction of business risk
Policies governing corresponding initiatives (reasons behind selection of materiality) In order to improve corporate value, we will strengthen governance and work to reform our corporate culture, so as to build stronger relationships of trust with stakeholders.
Theme 1 KPI fiscal 2023 result
Foster the corporate culture and enhance internal controls We will foster a corporate culture that embodies the new Net One, as well as strengthen internal controls, including measures to prevent the recurrence of fraudulent acts. Conduct an annual employee awareness survey as part of our efforts to foster the corporate culture (survey results to be disclosed at a future date)

Survey conducted at end-October 2023 for all employees
Progress report on recurrence prevention measures We release biannual reports on the operational status of recurrence prevention measures through our corporate website

Detailed operational status reports released for both 1H and 2H of fiscal 2023
Theme 2 KPI fiscal 2023 result
Realize Health and Productivity Management We will work on health and productivity management to maintain the physical and mental health of our employees, which is essential for business growth and continuation. Certification as an Outstanding Organization for KENKO (health) Investment Target certification as an Outstanding Organization for KENKO (health) Investment in fiscal 2024

Certified as a 2024 Outstanding Organization for KENKO (health) Investment