ESG approaches (environment, social, and …...Turning non-regular employees into regular employees...

20
ESG approaches (environment, social, and governance)

Transcript of ESG approaches (environment, social, and …...Turning non-regular employees into regular employees...

Page 1: ESG approaches (environment, social, and …...Turning non-regular employees into regular employees More than 40,000 in 8 years (2012-2019) LGBT people, etc. Expand the system applicable

ESG approaches

(environment, social, and governance)

Page 2: ESG approaches (environment, social, and …...Turning non-regular employees into regular employees More than 40,000 in 8 years (2012-2019) LGBT people, etc. Expand the system applicable

1. Strengthening corporate governance

Page 3: ESG approaches (environment, social, and …...Turning non-regular employees into regular employees More than 40,000 in 8 years (2012-2019) LGBT people, etc. Expand the system applicable

3

External evaluation of ESG

Page 4: ESG approaches (environment, social, and …...Turning non-regular employees into regular employees More than 40,000 in 8 years (2012-2019) LGBT people, etc. Expand the system applicable

2013 2014 2015 2016 2017 2018 2019

Infiltration of

principles

Handling

important

issues

Enhancing

information

disclosure

CSR

promotion

DJSIScore

4

Strengthening ESG approaches using the DJSI

Handling new issues Governance, renewable

energy, etc.

New: Asia Pacific Asia PacificNew: World

Promoting CSR strategy

(domestic)

Promoting CSR

strategy

(domestic/overseas)

50

100

Asia Pacific Asia Pacific Asia Pacific Asia PacificWorld

Infiltration of the CSR Charter (various training sessions, etc.)

Revision of the CSR Charter

Revision of the Charter

CSR Conference (every year)

CSR Award (every year)

Esta

blis

hm

ent o

f a ro

ad

map

▲ ▲

Data processing▲ ▲Information disclosure

Expanding information disclosure and improving accuracy (PDCA cycle management)

Determining disclosure items and policies

Strengthening transmission of information on CSR activities

Esta

blis

hm

ent o

f a ro

adm

ap

Esta

blis

hm

ent o

f a n

ext a

ctio

n p

lan

6669 70

76 81 83 84

Page 5: ESG approaches (environment, social, and …...Turning non-regular employees into regular employees More than 40,000 in 8 years (2012-2019) LGBT people, etc. Expand the system applicable

0

10

20

30

40

50

60

70

80

90

100

Environment Dimension Social Dimension Economic Dimension Total Score

2013Average 2013Best Score 2013NTT 2019NTT

0

10

20

30

40

50

60

70

80

90

100

Environment Dimension Social Dimension Economic Dimension Total Score

2013Average 2013Best Score 2013NTT 2019NTT5

Dow Jones Sustainability Indices 2013→2019

(E) (S) (G) 総合

2013 Average 2013 Best 2013 NTT 2019 NTT

NTT was included

in the DJSI World

in 2018 and 2019.

Page 6: ESG approaches (environment, social, and …...Turning non-regular employees into regular employees More than 40,000 in 8 years (2012-2019) LGBT people, etc. Expand the system applicable

6

Issues concerning governance

Issues

Increasing the number of outside board members

Diversifying executive positions

Increasing the transparency of executive compensation

Effectiveness assessment of the Board

Performance-based compensation

Succession plan

Number of board members

Page 7: ESG approaches (environment, social, and …...Turning non-regular employees into regular employees More than 40,000 in 8 years (2012-2019) LGBT people, etc. Expand the system applicable

7

Efforts for each issues

Issues

Increasing the number of outside board members

Diversifying executive positions

Increasing the transparency of executive compensation

Effectiveness assessment of the Board

Performance-based compensation

Succession plan

Number of board members

- Two females were nominated as board

members.

- Three foreign nationals were

nominated as board members of the

intermediate holding company for global

operations.

The number of outside board members was

increased by two to four.

KPI assessment was

revised.

- Questionnaire surveys were conducted.

- Meetings were held to exchange opinions with outside

members of the Board and Audit & Supervisory Board

members.

Disclosed information was revised.Succession plan was disclosed.

Page 8: ESG approaches (environment, social, and …...Turning non-regular employees into regular employees More than 40,000 in 8 years (2012-2019) LGBT people, etc. Expand the system applicable

2. Diversity(Women’s empowerment,

Diverse human resources and work-style reforms)

Page 9: ESG approaches (environment, social, and …...Turning non-regular employees into regular employees More than 40,000 in 8 years (2012-2019) LGBT people, etc. Expand the system applicable

9

(1) Global Gender Gap Index (GGGI)

Page 10: ESG approaches (environment, social, and …...Turning non-regular employees into regular employees More than 40,000 in 8 years (2012-2019) LGBT people, etc. Expand the system applicable

Global Gender Gap Index (GGGI)

10

Japan ranked lowest

among the Group of Seven

nations.

Source: The Global Gender Gap Report 2018, World Economic Forum

1st・

12th14th15th16th・・

51st・

70th・・

110th・

149th

Iceland・FranceGermanyBritainCanada・・United States・Italy・・

Japan・Yemen

Page 11: ESG approaches (environment, social, and …...Turning non-regular employees into regular employees More than 40,000 in 8 years (2012-2019) LGBT people, etc. Expand the system applicable

GGGI for Japan

The main factor is a gender gap in

terms of Economy and Politics.

Source: The Global Gender Gap Report 2018, World Economic Forum

0

30

60

90

120

150

健康

教育

政治

経済 Education

(65th)

Economy

(117th)

Politics (125th)

Health (41st)

- Estimated earned income

- Legislators, senior officials, and managers

- Professional and technical workers

- Females in parliament

- Females in ministerial positions

- Years with female head of state

11

- Female literacy rate

- Female net primary/ secondary/ gross tertiary

enrolment rate

- Sex ratio at birth

- Healthy life expectancy

Page 12: ESG approaches (environment, social, and …...Turning non-regular employees into regular employees More than 40,000 in 8 years (2012-2019) LGBT people, etc. Expand the system applicable

0

0.2

0.4

0.6

0.8

1

12

Average salary at NTT

Managers Non-Managers

Employees

Males Females Males Females

Variable for “Economy”- Estimated earned income- Legislators, senior officials, and managers- Professional and technical workers

Average age: 46.3 / 44.6 37.4 / 35.6

There is almost

no gender gap in

terms of salary.

Page 13: ESG approaches (environment, social, and …...Turning non-regular employees into regular employees More than 40,000 in 8 years (2012-2019) LGBT people, etc. Expand the system applicable

13

Ratio of female managers at NTT

12%

33%

6%

17%

0%

5%

10%

15%

20%

25%

30%

35%

Nationwide NTT Nationwide NTT

Both ratio of female managers &non-management

employees are about half the nationwide ratio.

Variable for “Economy”- Estimated earned income- Legislators, senior officials, and managers- Professional and technical workers

Managers Non-Management

Employees

Data on managers Source: International Labour Organization (ILO), 2018

Ratio of non-management employees Source: Labour Force Survey for 2018, Statistics Bureau, Ministry of Internal Affairs and

Communications

Page 14: ESG approaches (environment, social, and …...Turning non-regular employees into regular employees More than 40,000 in 8 years (2012-2019) LGBT people, etc. Expand the system applicable

14

Ratio of female managers in the NTT Group

10% or higher

Plan to double the ratio of female managers

2012 2018 2025

2.9%(717 persons)

5.7%(1,468 persons)

(Targeted ratio)

Ratio of female employees to all employees:13.8% 17.0% 22.1%

Page 15: ESG approaches (environment, social, and …...Turning non-regular employees into regular employees More than 40,000 in 8 years (2012-2019) LGBT people, etc. Expand the system applicable

0%

5%

10%

15%

20%

25%

30%

2019 NTT新卒採用

15

Ratio of female researchers at NTT

Average

Actively hiring

female researchers9%

10%

0%

5%

10%

15%

20%

25%

30%

2016 日本 2016 NTT

26%

Variable for “Economy”- Estimated earned income- Legislators, senior officials, and managers- Professional and technical workers

2016 Nationwide 2016 NTT 2019 NTT hiring

Source: Report on the Survey of Research and Development for 2016, Ministry of Internal Affairs and Communications

*In this survey, “researchers” are persons who have completed university courses (excluding two-year college courses) or

have equivalent or more expert knowledge. They are engaged in research with specific themes.

Page 16: ESG approaches (environment, social, and …...Turning non-regular employees into regular employees More than 40,000 in 8 years (2012-2019) LGBT people, etc. Expand the system applicable

16

(2) NTT’s diverse human resources

and work-style reforms

Page 17: ESG approaches (environment, social, and …...Turning non-regular employees into regular employees More than 40,000 in 8 years (2012-2019) LGBT people, etc. Expand the system applicable

Diverse human resources

17

Foreign

employees

40%(120K/ 300K employees)

People with

disabilities

2.43%

Turning non-regular employees into regular employees

More than 40,000 in 8 years (2012-2019)

LGBT people,

etc.

Expand the system applicable to spouses to all partners (2018)

*Legal ratio of employment of people with disabilities: 2.2%

Page 18: ESG approaches (environment, social, and …...Turning non-regular employees into regular employees More than 40,000 in 8 years (2012-2019) LGBT people, etc. Expand the system applicable

Efficiency improvement and work-style reforms

18

Stay-home/

Remote work

system

27,000 employees

(FY2018)

Robotic Process

Automation

(RPA)

Introduction of

15,000 robots

Total working

hours

1,836 hours (FY2018)

Paid holidays

Childcare leave

by male

employees96.4%(FY2018)

58%(as of the end of December 2018)

※Basic Survey of Gender Equality in Employment Management, Ministry of Health, Labour and Welfare,

Childcare leave by male employees; 6%

※General survey on Diverse ways of working,Tokyo Metropolitan Government, Ratio of companies

had introduced such systems in Tokyo; 19%

※General survey on Working hours, Nippon Keidanren (Japan Business Federation);

1,998 hours (FY2018)

※General survey on Working Conditions,

Ministry of Health, Labour and Welfare; 51%

Page 19: ESG approaches (environment, social, and …...Turning non-regular employees into regular employees More than 40,000 in 8 years (2012-2019) LGBT people, etc. Expand the system applicable

19

For further growth

A company where employees create

innovation and have high levels of job

satisfaction

Diverse

human

resources

- Operational

efficiency

improvement

- Productivity

enhancement

Use of RPA, AI, etc.

Work styles /

Management

reforms

Page 20: ESG approaches (environment, social, and …...Turning non-regular employees into regular employees More than 40,000 in 8 years (2012-2019) LGBT people, etc. Expand the system applicable

20

Strengthening energy business for the environment

Participating in Membership

of international initiatives,

EP100 and EV100,

for energy efficiency etc.

Launching new energy business through

NTT Anode Energy Corporation

Green power generation business- Supplying power using renewable energy

Advanced EV (electric vehicle)

station business- Providing charging infrastructure utilizing storage battery / charger

・・