Top Message

KDDI’s Commitment to Sustainability

Feature Article 1: KDDI’s Response to Climate Change

Contents

Feature Article 2: KDDI Sustainable Action

Materiality

Management Framework

Engagement

Top Message… …………………………………………………………………………………………………………   2KDDI’s Commitment to SustainabilityKDDI’s Commitment to Sustainability …………………………………………………………………………………   4

Our Credo is

Sustainability Promotion Framework… ………………………………………………………………………………   6
Our Business and Strategies……………………………………………………………………………………………   8“Elevate Our Minds”

KDDI’s DNA… …………………………………………………………………………………………………………… 12“Asking ourselves if our motives are righteous or selfish”.

Feature Article 1

KDDI’s Response to Climate Change—Net-Zero CO2 Emissions by 2050… ………………

14

Feature Article 2

KDDI Sustainable Action… ………………………………………………………………………………………

16

Connecting and Protecting Lives

The KDDI Group Mission Statement

The KDDI Group values and cares about the material
and emotional well-being of all its employees,
and delivers a thrilling customer experienceby always going further than expected with the ultimate goalof achieving a truly connected society.

Building a Resilient Infrastructure for Communication and Disaster Response/Conserving the Environment
Connecting Day-to-Day Lives
Sustainable Development for Cities and Communities/Building the Infrastructure for Developing Countries/
Developing Human Resources for the Next Generation
Connecting Hearts and Minds
Creating a Digital Society for Affluence and Peace of Mind/Promotion of Diversity and Inclusion/
Fostering Health and a Purpose in Life

Materiality
Message from Executive Officer of Sustainability… ………………………………………………………………… 20
KDDI’s Material Sustainability Issues… ……………………………………………………………………………… 21
FY2020 Material KPI Results…………………………………………………………………………………………… 24
FY2021 Material KPIs… ………………………………………………………………………………………………… 25

1 Safer and More Resilient Connected World………………………………………………………………………… 26

The KDDI Group Philosophy
Chapter 1

Chapter 4

VisionWay Forward

Connecting people “heart to heart”, bringing smiles from “face to face”

Be self-motivatedBeing global

Keep your fighting spirit alive

Responsibility extending 24/7 and 365 days a year

Taking ownership

Satisfying customers

Open and direct communication

Delivering a thrilling customer experience by always going further than
expected

Be agile; think and act with a sense of urgency

Keeping aspirations alive
Each one of us makes the KDDI Group what it is
Embracing diversity
Chapter 2

Fulfilling our corporate and social responsibilities
Clearly state the purpose and mission of our business
Pursue profit fairly

Let’s unite as a team to achieve our goals
Put yourself in the perspective of your boss
Look at what you do, from the outside in
Always be creative in your work
Every small effort counts
Believe in our potential
Go back to the basic principles
To know the problem, go, see and touch
Playing by the rules

Transparent management
Maximizing revenues, minimizing expenses

Chapter 5

Real-time business management
Chapter 3

Professional Mindset
We set specific goals with a pure and aspirational mind.
Once our targets are set, we will drive ourselves to keep going with astrong commitment until we achieve success.
Then we will share the fruits of our accomplishments.

Formula for SuccessAchievement = Attitude x Effort x Ability
Do the right thing as a human being
Be altruistic
Be grateful to others
Have an open mind and a humble attitude
Be positive• Cyber Security and Data Privacy Protection•Regional Revitalization Initiatives•Innovation Management•Responsibility for Products and Services•Initiatives outside Japan

4 Rewarding Workplaces for Diverse Talents………………………………………………………………………… 48•Recruiting and Developing Human Resources•Labor Practices

5 Respect for Human Rights and Fairness in Business… ………………………………………………………… 64•Human Rights•Youth Education Activities•Compliance•Supply Chain Management

6 An Energy-Efficient, Circular Economy……………………………………………………………………………… 74•Environmental Management•Environmental Performance

Management Framework… …………………………………………………………………………………… 90

Tough love at work

Lean and mean management

2 Cyber Security and Privacy Protection……………………………………………………………………………… 34
3 Fulfilled Life Brought through ICTs… ……………………………………………………………………………… 40

Tackle a challenge head-on

Management Principles•Network Quality Management and Improvement•Disaster Preparedness•Initiatives outside Japan

Corporate Governance/Risk Management/
Customer Relationship Management/Brand Management

Engagement… …………………………………………………………………………………………………………… 108
Stakeholder Engagement/Community Involvement and Development/
External Recognition/External Assurance
Corporate Profile…………………………………………………………………………………………………………… 118
Disclosure Policy…………………………………………………………………………………………………………… 119
Appendix Table: Comparative Table with GRI Standards……………………………………………………………… 120
Appendix Table: Sustainability Accounting Standards Board (SASB) Comparative Table………………………… 122
Appendix Table: Task Force on Climate-related Financial Disclosures (TCFD) Comparative Table… …………… 123
KDDI Sustainability Report 2021

1

Top Message

KDDI’s Commitment to Sustainability

Feature Article 1: KDDI’s Response to Climate Change

Feature Article 2: KDDI Sustainable Action

Materiality

Management Framework

Engagement

Top Message

Tomorrow, Together
Offering new lifestyles centered on 5G technologies,
we are striving toward the realization of a resilient future society
President, KDDI CORPORATION

through co-creation

First of all, I would like to express my sincere appreciation to all our
stakeholders for your continuous support.
Since its establishment, KDDI has made realizing a truly connectedsociety part of the KDDI Group Mission Statement. Our business isstrongly intertwined with society and directly connected to customers’ lives. Under the slogan “Zutto, Motto, Tsunagu Zo, au” (Connecting more and always with au), we aim to provide telecommunications services that are always reliable, no matter what with theintention of delivering a thrilling customer experience by always going further than expected.
Every year, the effects of global warming grow more severe, and theresulting climate-driven disasters are increasing in Japan and aroundthe world. Discussions on climate change will take place in a seriesof events this year, including the Climate Change Summit, G7 Summit, and COP26 to further promote global initiatives. As the effectsof the COVID-19 pandemic drag on, it has become a global issue toconstruct resilient social infrastructure that is resistant to environmental changes.
KDDI sets the company vision of “contributing to the sustainablegrowth of society” in the Medium-Term management plan spanningthe period of April 1, 2019 to March 31, 2022 (fiscal 2020.3-fiscal
2022.3).
In April 2021, KDDI announced our support for the recommendations of the Task Force on Climate-related Financial Disclosure(TCFD), and in July, we raised our CO2 emissions reduction target
for fiscal year 2030, set out in the “KDDI GREEN PLAN 2017-2030,”
to “a 50% reduction compared to fiscal year 2019.” Going forward,

2

KDDI Sustainability Report 2021

we will continue promoting initiatives aimed at achieving net-zero
CO2 emissions by 2050, such as forcefully promoting the shift toward renewable energy and making disclosures and announcement
in line with the TCFD.
In 2020, KDDI and KDDI Research, Inc. announced “KDDI Accelerate 5.0”, which aims to build a society for the next generation by
2030 and accelerate the realization of Society 5.0 with 5G as promoted by the government. We are launching measures to establish
new lifestyles for consumers and build a resilient future society that
supports Japan’s economic development and provides solutions tosocial issues. To this end, we will utilize orchestration and other technologies in seven fields that support the evolution of the network
layer, platform layer, and business layer, including 5G networks.

Toward Sustainable Growth
To ensure its ability to promptly adapt to the changes of this era andpromote its medium-to long-term vision, KDDI aims to achieve
growth on axes of sustainable growth of existing businesses as well
as challenge to new innovation under its Medium-Term management plan spanning the period of April 1, 2019 to March 31, 2022
(fiscal 2020.3-fiscal 2022.3) and now in its final fiscal year.
In order to contribute to the sustainable growth of society andbusinesses, KDDI is advancing sustainability activities centered on
six material sustainability issues linked with the medium-term management plan, across all of its business segments. Furthermore, in
the “KDDI Sustainable Action”—KDDI’s initiatives for the SDGs
aimed at 2030—we identified eight fields of social issues for KDDI tofocus on in consideration of the magnitude of social issues and thebusiness sectors KDDI can contribute to as a telecommunications

operator and set specific targets that will contribute not only to economic values but also to social and environmental values. We do notview social issues merely as risks; we also consider them opportunities to leverage the unique strengths of KDDI. We strive to solve diverse social issues while raising profit as a business, such as by providing inexpensive, high-quality telecommunications services indeveloping countries and spurring regional revitalization using 5G,
IoT, and other technologies.
Due to the COVID-19 pandemic, the structure of day-to-day life as weknow it has been completely upended and, amid an ongoing rapid
digital shift affecting every aspect of society, telecommunications havetaken on an increasingly important role. We, as a telecommunications
company, are determined to fulfill the mission of connecting communication by building a reliable communication infrastructure that ensures communication service at all times and under any circumstances and establishing an early recovery support system. KDDI is unitedin providing our utmost effort to offer resilient and high-quality telecommunications services around the clock, 365 days a year.
In addition, to ensure ongoing sustainable growth amid a businessenvironment undergoing constant and profound change, employees
and organizations will require a high degree of autonomy and growth.
KDDI considers human resources its most important resource.
With the aim of transforming into a company that puts human resources first and has made their development and enhancement thefoundation of management, we are working on this across three pillars: introducing KDDI Version Job Style Personnel System, realizing
Declaration of KDDI New Work Styles, and promoting Internal DX(Digital Transformation).

This corporate attitude has penetrated into the group as the KDDI
Group Philosophy which defines perspectives and code of conductthat top management and employees should share. Due to the synergy effect with our corporate governance system that securestransparency and fairness, a more solid management system has
been established.
When our business growth and contribution to society are integrated to create a virtuous cycle, KDDI’s growth will be a strength tohelp society grow.
Through the KDDI Sustainable Action that connects and protects lives, connects day-to-day lives, and connects hearts andminds, KDDI will aim for the sustainable growth of society and thefurther enhancement of our corporate value.
As we move forward together, I would like to express my sincere
appreciation for your continued support and guidance for the KDDI
Group.

Medium-Term Management Plan (FY2019–FY2021)
KDDI Sustainable Action
KDDI’s Basic Policy toward COVID-19

KDDI Sustainability Report 2021

3

Top Message

KDDI’s Commitment to Sustainability

Sustainability Promotion Framework

Our Business and Strategies

KDDI’s Commitment to Sustainability

Feature Article 1: KDDI’s Response to Climate Change

Feature Article 2: KDDI Sustainable Action

Materiality

Management Framework

EngagementKDDI’s DNA

KDDI’s Commitment to Sustainability
Sustainability is indispensable to the realization of the KDDI Group Mission
Statement of achieving a truly connected society. To date, we have promoted sustainability by raising awareness of the KDDI Group Philosophy
and the KDDI Code of Business Conduct, strengthening corporate governance, and taking measures to address material sustainability issues. However, under the medium-term management plan (FY2019–FY2021), we reiterate our commitment to contributing to the sustainable growth of society
as part of our overall vision and clarify the SDGs KDDI is focused on.
Through these measures we will contribute to society’s sustainable growth.

The KDDI Group Mission Statement
The KDDI Group values and cares about the material and emotional well-being of all its employees, and delivers a thrilling customer
experience by always going further than expected with the ultimate goal of achieving a truly connected society.
Brand Message

Service Users
Explore the extraordinaryCompany Vision

The company the customer can feel closest toContributing to the sustainable growthof society

Shareholders
andInvestors

KDDI Sustainable Action

KDDI Sustainable Action
The KDDI Group
Mission Statement

Our power to make connections will help create a brighter future for all.
Connecting day-to-day lives

Connecting hearts and minds

Building a resilient infrastructure for communication anddisaster response

Sustainable development
for cities
and communities

Creating a digital society
for affluence and peaceof mind

Building resilient communications
infrastructure and speedily initiating
disaster recovery

Resolving global issues
and creating people-friendly
citiesEnvisioning a safe
and secure society in termsof security and privacy

Conserving
the environment

Building the infrastructure
for developing countries

Becoming energy-efficient andachieving zero emissions

The KDDI Group Philosophy

Helping improve the livelihoods of people
in developing countries through economic
and industrial development upgrading

Partnership

Developing human resources
for the next generation

Improving the educational environment
with ICTs and developing humanresources for the next generation

×Promotion of diversity
and inclusion

Respecting human rights,
promoting diversity and inclusion
in society

Fostering healthand a purpose in life

KDDI Sustainability Report 2021

Stakeholders

NPO/NGO

Administrative
Organizations/
Industry Groups

Supporting healthy,
fulfilling lives with ICTs

Resolving social issues through partnerships

Employees
andTheir Families

Material Sustainability Issues

4

Local
Communities

Value Creation

Connecting and protecting lives

1 Safer and more resilient connected world

4 Rewarding workplaces for diverse talents

2 Cyber security and privacy protection

5 Respect for human rights and fairness in business

3 Fulfilled life brought through ICTs

6 An energy-efficient, circular economy

The sustainable development of society

Medium-Term Management Plan (FY2019–FY2021)

A company that continues to produce
excitement

Business
Partners(Suppliers)

KDDI Sustainability Report 2021

5

Top Message

KDDI’s Commitment to Sustainability

Sustainability Promotion Framework

Our Business and Strategies

KDDI’s Commitment to Sustainability

Feature Article 1: KDDI’s Response to Climate Change

Feature Article 2: KDDI Sustainable Action

Materiality

Management Framework

EngagementKDDI’s DNA

Sustainability Promotion Framework
The KDDI Group Philosophy

KDDI Group Philosophy

The KDDI Group Philosophy expresses the attitudes, values, and behavior
that all of us—executives and employees—need to exhibit in order toachieve our corporate philosophy. The KDDI identity and KDDI vision that
we must embrace as a telecommunications operator are incorporated
throughout. The KDDI Group Philosophy is the foundation of our sustainability initiatives and is the basic stance KDDI executives and employees
must adopt. By putting the KDDI Group Philosophy into practice, we aim
to be a company admired and trusted by all stakeholders.
The KDDI Group Philosophy

KDDI Code of Business Conduct

KDDI Group

PolicyWe established the KDDI Code of Business Conduct in 2003 as a set of
specific guidelines for understanding and practicing the KDDI Group Mission Statement and the Group Philosophy. All of our executives and employees maintain a high sense of ethics and execute their duties in compliance with the KDDI Code of Business Conduct.
We review it according to revisions in laws and regulations and changes in the social landscape. In July 2020, we revised the contents of Respect for Human Rights and Individuality which is the first basic principle in
the KDDI Code of Business Conduct to emphasize the seriousness of harassment and the importance of diversity.
We will continue to promote the KDDI Code of Business Conduct asstandards in the group while considering the characteristics of the business.
Happiness of Our Employees and Vibrancy in the Company
I. Respect for Human Rights and Individuality
II. Conscientious Performance of Duties
III. Respect for Intellectual Properties
Earning Our Customers’ Satisfaction and Trust
IV. Provision of Services That Respond to the Trust and Confidenceof Our Customers
V. Promotion of Fair Business Activities
VI. Management of Information to Protect the Confidentialityof Communications and Customers’ Information

The KDDI Group Philosophy,
Group-wide Efforts

KDDI Group

Activity&
Results

FY2020 Results of Our Actions

Sustainability Promotion Framework

KDDI

Board of Directors•KDDI Group Philosophy study sessions

Approval

For divisions’ general managers

Total number of sessions: 4

Leader training(for departments’ generalmanagers/ group leaders)

Total number of sessions: 22
Total number of participants: 2,092

Stratified training

Total number of sessions: 116
Total number of participants: 11,166

For new employees

Total number of sessions: 4ReportSustainability Committee (convenes twice a year)•Training for new recruits (for regular employees)“Compliance: basic practices” (100% participation rate)•E-learning (for regular employees)“Insider Trading Regulations”“Preventing Misrepresentation”“Unconscious Bias”“Power Harassment”•Distribution of web shortcuts related to the KDDI Code of BusinessConduct to business mobile devices
For executives, regular and contract employees, temporary staff, andsubcontracted employees who have been given business mobile devices
Period: September 2020
•Survey about the Business Ethics Helpline
For regular and contract employees, temporary staff, and subcontracted
employees
Period: December 7, 2020-December 25, 2020
Results: 86% awareness of the Business Ethics Helpline•Group companies’ training on governanceFor executives of group companies, etc.
Number of participants: 177
Evaluation: Satisfied 100%, Beneficial 100%
KDDI Code of Business Conduct (Basic Principles)

Chair
Company President

Details of Sustainability
Committee activities

Permanent Members•Formulation of sustainability action
policies

Executive Directors and General Managers of All Businesses
and Corporate Sectors
Executive Director, Corporate Sector
Executive Director, Technology Sector
Executive Director, Global Consumer Business Sector
Executive Director, Personal Business Sector
Executive Director, Solution Business Sector
General Manager, Consumer Sales Division
General Manager, Services Development Division
General Manager, Personal Business Planning Division•Sustainability promotion
framework maintenance•Confirmation of progress on KPIs

President, KDDI Foundation, Audit & Supervisory Board members

Secretariat
Human Rights Subcommittee
Discussions related to promoting human rights based on
the KDDI Group Human Rights Policy (convened as needed)

Executive Officer of Sustainability
Sustainability Department

Example topics:•Prohibition of child labor or forced labor•Prohibition of discrimination in business activities(based on race, sex, faith, nationality, age, sexual
orientation, gender identity, etc.)•(Relating to telecommunications business) Protection ofconfidentiality of communications, protection of freedom of
expression, and land purchases related to the constructionof base stations, etc.

Environmental Subcommittee
Discussions of matters related to policy and plans forsustainability initiatives and environmental conservation
activities (convened twice a year)

Development of the Society
X. Environmental Conservation
XI. Rejection of Organized Crime Groups
XII. Contribution to the Development of the International Community

Impact of businessactivities on society

Use of resources

Shareholders
andInvestors

Business Sector
Corporate Sector

Stakeholders

NPO/NGO

Control the sustainable initiatives,
general administration andhuman resources respectively inthe 10 divided regions of Japan
KDDI Executive officers, etc., areappointed as the Senior General
Managers of each regional office.

Green Plan Subcommittee
Monitoring of progress on the KDDI GREEN PLAN 2030,
analysis of the gaps between targets and results, anddiscussions of countermeasures (convened twice a year)

Business
Partners(Suppliers)

Employees
and Their
Families

Administrative
Organizations/
Industry
GroupsGroup Companies

As of September 1, 2021

Constructionof tribrid base stations

CO2 emissions
from deliveriesService
Users

Local
Communities▪ Example of Sustainability Activities in the Value Chain
Efficientdistribution

We revised the position of the Sustainability
Committee in February 2019. Under the reorganization, the chair is the company President, and the committee members are theexecutive directors, the general managers of
all the businesses and corporate sectors, thePresident of the KDDI Foundation, and the
Audit & Supervisory Board members. The
committee is promoting the SDGs and considers sustainability to be a pillar of company-wide business strategies. The degree ofachievement of sustainability promotion is incorporated into company-wide key KPIs andis linked to executive remuneration and bonuses for all employees.

Regional Offices in Japan

Confidence of Our Shareholders and Business Partners
VII. Practice of Open and In-depth Communication
VIII. Prevention of Insider Trading
IX. Appropriate Accounting and Adherence to Agreements

Simple, compact productpacking boxes

SystemProvision of support service tocustomers’ energy-saving efforts

CO2 emissions
from base station
operation

Communication support
in developing countries

CO2 emissions
from useof mobile phones

Digital divide

Education for children
and older people

Recycling ofmobile phones

Safety risks whenusing mobile phones

Discarding of scarce
resources, such as
rare metals

Major Issues Addressed by the Sustainability Committee in FY2020(Convened in September and February)•Setting goals and reporting results for material KPIs
•Examining and approving initiatives for SDGs promotion

Purchasing

Distribution

Sales, Construction

Use, Operations, Maintenance

Recycling

Infrastructure, human resources, technological development, product development, supply chain management
Installation of energy-saving
equipment, disaster prevention
measures6

Promotion of women’s advancement,
diversity and inclusion, health-focusedmanagement, human resources training

KDDI Sustainability Report 2021

Construction of a high-quality andstable information andtelecommunications foundation

Adoption of universal design

Strengthening of partnerships andresponsible procurement surveys•Reporting progress on SDGs by all businesses and corporate sectors as well as the KDDI Foundation•Reporting progress on initiatives for achieving net-zero CO2 emissions by 2050
•Formulating and approving a draft of FY2021 sustainability promotion planKDDI Sustainability Report 2021

7

Top Message

KDDI’s Commitment to Sustainability

Sustainability Promotion Framework

Our Business and Strategies

KDDI’s Commitment to Sustainability

Feature Article 1: KDDI’s Response to Climate Change

Feature Article 2: KDDI Sustainable Action

Materiality

Management Framework

EngagementKDDI’s DNA

Our Business and Strategies
Overview of the Medium-Term Management Plan (FY2019–FY2021)

KDDI Group

Tomorrow, Together
In addition to realizing the “integration of telecommunications and life design,”
we endeavor to provide solutions to social issues and help achievea truly connected society.

PolicyThe KDDI Group
Mission Statement

The KDDI Group Mission Statement

The KDDI Group values and cares about the material andemotional well-being of all its employees, and delivers athrilling customer experience by always going further than
expected with the ultimate goal of achieving a truly connected society.

Brand Message
KDDI will make further progress in the integration of telecommunications and life design withthe aim of expanding the peripheral businesses around telecommunications, as well as achieve
new value creation in the 5G/IoT era both in Japan and around the globe, and pursue efforts toprovide new customer experience that exceeds the expectations of customers.

Philosophy

Philosophy

Tomorrow, Together KDDI
Explore the extraordinary au

Under the KDDI brand slogan of “Tomorrow, Together” and the au brand slogan of “Explore
the extraordinary,” KDDI will contribute to the development of a truly connected society byCompany Vision

PolicyFY2024 Target
EPS growth

FY2018Operatingrevenue
growthOperating revenue oflife design domain

FY2021 target¥1.5 trillion

Operating revenue ofbusiness services segment

FY2021 target¥1 trillion¥100 billion (approx.)

3 years total• Over 40% payout ratio

Philosophy• Flexible acquisition, utilization andShareholder returns

cancellation of treasury shares inbalance with growth investment

Seven Business Strategies

KDDI Group

Autonomous
driving

Remoteoperations

Remotemedical careFree view point
image stadium
views

Partner companies
Telecommunications

Open innovation

Platform

5G/IoT
platform

Building new business models
together with customers

Connecting and protecting lives

Connecting day-to-day lives

Connecting hearts and minds

Providing experience value withexcitement to customers

Supporting the driving of DX
for customers

Building a resilient infrastructure for communication anddisaster response

Sustainable development
for cities
and communities

Creating a digital society
for affluence and peaceof mind

Building resilient communications
infrastructure and speedily initiating
disaster recovery

Resolving global issues
and creating people-friendly
citiesEnvisioning a safe
and secure society in termsof security and privacy

Fina
nc
e

Customers
Telecommunications
En

e rg

Experience
Value

y

Edu

ca

e
rvic
Se ustryInd

Operational
Efficiency

on

He

are
thc

ti

Experience
Value

Earnings
Model
Transformation

Manu
Ind factu
ust ringry

Customers
TelecommunicationslRetai s
es
Busin

merce
Com

al

n
tio
rta
po tryns us
Tra IndKDDI Sustainability Report 2021

ExperienceValuetainment8

Our power to make connections will help create a brighter future for all.

Expanding life design services throughsmartphones as a starting pointterEn

4. Utilizing Big Data
We are working to thoroughly understand customers by utilizing data andto maximize experience value through proposals that customers find comfortable. In addition, with the rapid spread of networks and digitization inadvance of upcoming 5G/IoT technologies, we are promoting DX of clientcompanies by using big data in various industries.

KDDI Sustainable Action

For corporate customers

Experience
Value

Policy7. Sustainability
KDDI formulated KDDI Sustainable Action—KDDI’s initiatives for the SDGs aimed at 2030 with a determination to continue working to solve various social issues through business going forward. We aim to further enhance corporate value and achieve sustainable growth with society by helping to solve social issues through business with partners by connecting and protecting lives, connecting day-to-day lives, andconnecting hearts and minds while using 5G, IoT, and other technologies.
In addition, according to the approach of KDDI Sustainable Action, we established the KDDI’s Basic
Policy toward COVID-19 and have been dealing with the growing impact of COVID-19 (see next page).

For individual customers

Creating new experience value through collaboration with partner companies

3. Further Expansion of Global Business
For the consumer business, we aim to expand our market in Asia applying
insights and know-how cultivated in our consumer business in Japan tothe consumer business overseas. For the corporate business, we are
striving to further expand our global ICT business by integrating our domestic and overseas operations, centering on KDDI IoT World Architecture and our data center business.

6. Achieving Growth as the GroupBy maximizing the company’s assets andsupporting the growth of group companies,
we aim to expand and strengthen thegroup-wide foundation for new growth andmaximize synergies.

▪ The Integration of Telecommunications and Life DesignFarm
Fis ing,
h F Foarm res
ing try,▪ Creating Innovation by 5G

2. Integration of Telecommunications and Life Design
We aim to achieve sustainable growth in the consumer business by enhancing engagement with customers across the group, maximizing lifetime value (number of customers in the group (group ID) × engagement ×
total ARPA) and breaking new ground in life design fields, especially in thearea that is our business foundation, telecommunications. We aim toachieve sustainable growth with customers in the corporate business by
supporting their digital transformation (DX) and realizing the integration of
telecommunications and life design for corporate clients in Japan andoverseas.

FinancBusin ialess

1. Creating Innovation toward the 5G Era
We will actively roll out 5G services as basic next-generation infrastructure,develop businesses through co-creation with various partners, and promote open innovation that incorporates the innovative ideas and advanced
technologies of start-ups. In this way, we will create new experience value
and actively utilize 5G services for regional revitalization businesses.

Smart factories

1.5 times

FY2024FY2019–FY2021 Initiatives

Cost reduction, etc.

•The company the customer can feel closest to•A company that continues to produce excitement•Contributing to the sustainable growth of society

promoting seven business strategies aimed at achieving the three components of the company
vision.

Financial Target

Construction
Industry

Creationof NewBusiness

Conserving
the environment

Building the infrastructure
for developing countries

Developing human resources
for the next generation

Promotion of diversity
and inclusion

Fostering healthand a purpose in life

Becoming energy-efficient andachieving zero emissions

Helping improve the livelihoods of people
in developing countries through economic
and industrial development upgrading

Improving the educational environment
with ICTs and developing humanresources for the next generation

Respecting human rights,
promoting diversity and inclusion
in society

Supporting healthy,
fulfilling lives with ICTs

End Users
Experience
Value

Expanding growth businesses centering on telecommunications as a base

5. Expanding the Financial BusinessElectronic settlement and financial services are becoming increasingly familiar parts of customers’ daily lives due to the central position of smartphones in people’s lives. By offering smartphone-centric financial experiences, we aim to strengthen that engagement and achieve profit growth.

Partnership×

Resolving social issues through partnerships

KDDI Sustainability Report 2021

9

Top Message

KDDI’s Commitment to Sustainability

Sustainability Promotion Framework

Our Business and Strategies

KDDI’s Commitment to Sustainability

Feature Article 1: KDDI’s Response to Climate Change

Feature Article 2: KDDI Sustainable Action

Materiality

Management Framework

EngagementKDDI’s DNA

Our Business and Strategies
KDDI’s Basic Policy toward COVID-19

KDDI GroupThe impact of the COVID-19 pandemic on society is expected to linger for a long time. Based on the approach of the KDDI Sustainable Action that wasformulated to lay out our commitment to continuing to work toward the solution of diverse social issues through our businesses, we will rally our groupwide strength as a company providing a lifeline which connects and protects lives, connects day-to-day lives, and connects hearts and minds, thereby
satisfying our social mission by examining and implementing initiatives according to the following five policies.
KDDI’s Basic Policy toward COVID-19
1. We ensure the safety of our customers and employees of the Company and affiliated companies above all else.

Policy3. We actively collaborate with governments, municipalities,
and public organizations, etc.
Starting with the provision of location information analysis data to governments and municipalities, KDDI will proactively collaborate with initiatives of governments, municipalities, and other public organizations according to changes in society.
Provision of location information analysis data

2. We continue to respond to the rise in telecommunications traffic and maintain telecommunications services, which are the foundation and lifeline ofsociety.
3. We actively collaborate with governments, municipalities, and public organizations, etc.
4. We contribute to the construction of a resilient social infrastructure that is resistant to environmental changes by promoting digital transformation(DX) for individual and corporate customers such as telework, online education, and remote medical care.
5. We offer customer experiences that can alleviate worries and difficulties in life and fill the heart.

Provision of the “KDDI Location Analyzer” Location Information Big Data
Analysis Tool to 1,788 Municipalities across Japan Free of Charge for
Measures against the Spread of COVID-19 (Japanese only)
Detailed People Flow Analysis Report with KDDI Location Analyzer during
the Golden Week Holidays (April 29, 2020 to May 6, 2020) in Major Tourist
Destinations across Japan (Japanese only)
Started Providing “Virtual Guide” with Which You Can Enjoy Sightseeing in
Mt. Fuji with Peace of Mind and “Virtual Mt. Fuji Climbing” Which Enables You
to Experience the Spectacular View from the Top Remotely (Japanese only)KDDI’s Basic Policy toward COVID-19 (Japanese only)

Chosen as One of Tokyo Prefecture’s COVID-19 Tech Partner Companies(Japanese only)

Responses including extension of payment due date
(Extension of the Due Date till November 30 ) Handling of Billing inConsideration of the Growing Impact of COVID-19 (Japanese only)

Donations
Donation to the Central Community Chest of Japan to Support COVID-19
Measures (Japanese only)
Reception counter partition(image)IP transceiver
IP500H

Additional Donations to the Central Community Chest of Japan to Support
the COVID-19 Measures (Japanese only)“KDDI Location Analyzer” Location Information Big Data Analysis Tool

Donation of Supplies to Medical Institutions in Support of COVID-19
Measures (Japanese only)

1. We ensure the safety of our customers and employeesof the Company and affiliated companies above all else.
(1) In au Shops, thorough measures to prevent the spread of COVID-19
are being taken. For example, partitions have been installed on store
reception counters and shops have been equipped with disinfectant
and face masks. Moreover, at our customer centers and various
support centers, fewer staff members coming to work in our offices
enables safe physical distancing for continued customer support byphone or online.
(2) KDDI continues fulfilling our responsibility of providing important telecommunications services as a telecommunications business operator that is a designated public corporation. Employees have been
engaging in the prevention of further spread of infection through active adoption of telework and social distancing by means of dispersion of offices and break rooms.
Reduced Operating Hours and Measures to Prevent the Spread of
COVID-19 in au Shops in Japan (Japanese only)
Icom and KDDI Launched an IP Transceiver Rental Service Free of Charge(Japanese only)

2. We continue to respond to the rise in telecommunications traffic
and maintain telecommunications services,which are the foundation and lifeline of society.
(1) Compared to before the spread of COVID-19, both data and voicetraffic were on the rise. However, our network is designed to handle
peak traffic even during disasters.
(2) If telework and online schooling are provided more often in the future,a further growth in traffic from 9 am to 6 pm on weekdays is expected. In preparation for further traffic increases, we will work together
to maintain a stable telecommunications environment while continuously securing the safety of our employees and staff members of affiliated companies.
“Zutto, Motto, Tsunagu Zo, au (Connecting more and always with au)”
Highlights (Japanese only)

4. We contribute to the construction of a resilient social infrastructurethat is resistant to environmental changes by promoting digitaltransformation (DX) for individual and corporate customers
such as telework, online education, and remote medical care.
(1) In the background of increasing needs for online use triggered by the
spread of COVID-19, we, as a company that supports telecommunications infrastructure, will proceed with building an online environment that allows the continuation of social activity under any circumstances and promoting DX for individual and corporate customers.
(2) We will examine various initiatives for building an environment that allows timely and proper provision of online education and remote
medical care.
(3) We will build a multi-purpose event space on the internet to support
diverse economic and cultural activities.
Support for online education, etc.
Support of 10,000 High School Students in English Learning Who Had Difficulty
Learning Due to School Closures Because of COVID-19 (Japanese only)

5. We offer customer experiences that can alleviate worries
and difficulties in life and fill the heart.
While people are spending more time at home, we have implemented
various measures to assist with providing a more comfortable and fulfilling time for our customers including live streaming of entertainment
contents and campaign promotions offering better deals with cashless
payment.
Offering contents and entertainment service free of charge
Limited-Time Offer of Book Pass Unlimited Reading Plan Free of Charge(Japanese only)KDDI Group promotes the integration of telecommunications and life design, and as a company contributing to the sustainable growth of society,we will connect people, companies, and society and provide experiencevalue with excitement to customers together with our diverse partners into
the future.

Provision of Financial Support of up to 500 Million Yen through Crowdfunding
and Other Means to Businesses in All Industries Affected by COVID-19(Japanese only)
Provision of “curon for KDDI,” an Online Medical Service Registered byApproximately 5,000 Medical Institutions, by KDDI and MICIN from Late May(Japanese only)
Provision of Online Medication Guidance Service via “au Wellness” from
September (Japanese only)

10KDDI Sustainability Report 2021

Expansion of “Virtual Shibuya,” a Virtual Space Officially Recognized by
Shibuya Ward and Provision of a New Area of ​​“Harajuku” from May 25(Japanese only)KDDI Sustainability Report 2021

11

Top Message

KDDI’s Commitment to Sustainability

Sustainability Promotion Framework

Our Business and Strategies

KDDI’s Commitment to Sustainability

Feature Article 1: KDDI’s Response to Climate Change

Feature Article 2: KDDI Sustainable Action

Materiality

Management Framework

EngagementKDDI’s DNA

KDDI’s DNA
Achieving a Truly
Connected Society

DDI Corporation (DDI), the predecessor of KDDI, was established in June 1984 as Daini-Denden Planning
Company. With the deregulation of communication via the enforcement of the Telecommunications Business
Law in April 1985, DDI, with the slogan “Make Japanese Telephones Cheaper,” brought the concept ofprice competition into the telecommunications market which had previously been monopolized by

Expansion of Life Design Areas

Nippon Telegraph and Telephone Public Corporation (currently Nippon Telegraph and Telephone Corporation).
In the company credo “Elevate Our Minds –Asking ourselves if our motives arerighteous or selfish–,” which has remained the same since the establishment of

au Jibun Bank

H

DDI, there is a phrase “We aim to create a better life together with cus-

lt
ea

hc

are

Fi n ance

au Smart Pass

Through business activities based on the KDDI Groupau Electricity

promotion target of which are all employees ranging
from new employees to executives, KDDI has

au Property Insurance

The integration of
telecommunications
and life design

i nm e n t

Philosophy and the KDDI Code of Business Conduct, thetertaCommerce

En

tomers” and its idea has been passed on as KDDI’s DNA till today.

En

au Housing Loansociety outlined in the KDDIau の生命ほけん

tion

Toward a Global Comprehensive Carrier

KDDI Accelerate 5.0(Japanese only)

Accelerate Society 5.0 with 5G

been working on solving social issues
aiming to achieve a truly connected

Click here for more

er

gy

Edu

ca

au Life InsuranceGroup Mission Statement.

au の損害ほけん

Fixed-line phones + Mobile phones

Sloganau Property Insurance“Make Japanese Telephones Cheaper”

Business areas

Fixed-line phones

1984

1987

1998

2000

2001

2006

2016

2020

Launch ofDaini-Denden
Planning Company

Establishment of
Nippon Idou Tsushin
Corporation (IDO)

Merger of Kokusai Denshin
Denwa Co., Ltd. (KDD) and
Teleway Japan Corporation(TWJ)

Launch of KDDI

Merger of au CORPORATION

Merger of POWEREDCOM,
Inc.

Capital and businessalliance with ENERES
Co., Ltd.

KDDI 20th Anniversary

The KDDI Group Mission Statement

12KDDI Sustainability Report 2021

The KDDI Group values and cares about the material and emotional well-being of all its employees, and delivers a thrilling customer experience byalways going further than expected with the ultimate goal of achieving a truly connected society.

ValuesThe KDDI Group Philosophy / KDDI Code of Business Conduct

Company Vision

The company the customer can feel closest to / A company that continues to produce excitement / Contributing to the sustainable growth of society

KDDI Sustainability Report 2021

13

Top Message

KDDI’s Commitment to Sustainability

Feature Article 1: KDDI’s Response to Climate Change

Feature Article 2: KDDI Sustainable Action

Materiality

Management Framework

Engagement

Feature Article 1

KDDI’s Response to Climate ChangeKDDI’s Determination

Net-Zero CO2Emissions by 2050

Facing the Borderless Challenge of Climate Change

Since the adoption of the Paris Agreement in 2015,▪ CO2 Emission Reduction Targets

countries around the world have been moving toward

Scope1+ 2

the realization of a carbon-free society.
In the KDDI Sustainable Action, KDDI declared that50 %reduction

Scope 3

2030

2019

14 %

reduction

it would proactively shift to renewable energy to achieve
net-zero CO2 emissions by 2050 and reduce the envi-

KDDI considers it an important responsibility as a global company to promote
the conservation of the earth’s environment so that the irreplaceable earth
can be passed on to the next generation. Responding to climate change is
one of the most important themes the world is facing.
In April 2021, KDDI announced its support for the recommendations of the
Task Force on Climate-related Financial Disclosures (TCFD).
We will further strengthen our response to climate change aiming to achieve
net-zero CO2 emissions by 2050.

ronmental impact on society through the use of ICTs.
We will continue to resolve issues not only by regarding
social issues such as climate change as risks, but also

2019

2030

by exerting KDDI’s unique strengths through 5G and IoT.
KDDI Sustainable Action

2050

Net-zeroCO2emissions

Information Disclosure in Accordance with the TCFD Framework
Following the TCFD recommendations, we will proactively disclose information related to governance, strategy, risk management
and metrics and targets in accordance with the information disclosure framework.

The task force was established in December 2015 by the Financial Stability Board (FSB), which includes central banks, financial supervisors, and finance ministries of major countries. Its purpose is to
examine climate-related disclosure and responses by financial institutions.

Responses to the TCFD Recommendations

Governance

Strategy

Risk Management

The Sustainability Committee,

KDDI conducted two analyses: a “less than 2°C scenario,” in which a carbon-free society is rapidly

The Corporate Risk Management Division,

chaired by the President andrealized (i.e., the global average temperature increase from pre-industrial times is less than 2°C),

which is in charge of risk management for theconsisting of key members of theand a “4°C scenario,” in which no climate change measures are taken and physical impacts be-

KDDI Group, identifies all risks that could have

Board of Directors, deliberates oncome apparent (i.e., the global average temperature increase from pre-industrial times is 4°C).

a significant impact on the company’s financial

sustainability issues twice a year.
In addition, the Board of Di-

Carbon Tax

rectors receives quarterly reports
on climate change, and supervises and directs the implementationof measures for important issues

Transition Risks

from the Sustainability Committee

and initiatives.

Sustainability Committee(Chair : Company President)

14

KDDI Sustainability Report 2021

and business strategies twice a year. Risks re--lated to climate change are managed using thePurchase of emission credits for the second
plan period to compensate for the expectedunachieved emission reduction in the third plan
period (approx. 50,000 t-CO2)

Environmental Management System (EMS) ap-

Risk of increased costs for AI technology atbase stations, development of new energysaving technologies for various facilities, CCUS
development, etc.

Investment in the development of various
technologies

establishes quantitative annual targets for risk

Risk of losing corporate reputation andsubscribers due to unmet targets and delays inrenewable energy initiatives

Planning to switch from fossil fuel power torenewable energy power

Risk of increased costs such as personnel
expenses for emergency recovery in orderto respond quickly to the restoration of thecommunication network

Preparation for efficient recovery operations
by reviewing the BCP and conducting disasterrecovery drills

Risk of increased air-conditioning power usage
in data centers

Installation of high-efficiency air conditioning
systems and replacement with renewableenergy power

Carbon taxation risk

PolicyTokyo Metropolitan
Risk of increased costs of buying credits
andOrdinance/
Legal(allowances) for unachieved CO2 emission
Emission Regulareductions
tions
Technology

Market and Reputation

Physical Risks

Board of Directors

KDDI’s Responses

KDDI’s Risks

Acute Risk

Chronic Risk

proach, utilizing the ISO framework. For the

Metrics and Targets

quarterly basis. Points to be improved are reported to the Environment Subcommittee under the Sustainability Committee. Risks andopportunities related to the entire company
and all divisions are discussed and approvedby the Sustainability Committee.

CO2 emissions by 2050, we have re-Corporate
Management
Committee

vised our non-consolidated CO2 emission reduction target for the fiscal year
2030, and raised it to a 50% reduc-Sustainability
Committee
Green Plan
Subcommittee

Environmental
Subcommittee

risks to be managed, each relevant department
reduction and evaluates the progress on aWith the aim of achieving net-zero

Board ofDirectors

Division Directors
Division
Environmental
Managers
Environmental
Managers
Employees

tion from the fiscal year 2019 for
Human Rights
Subcommittee

Scope 1 and 2, and to a 14% reduc-Internal Auditors

Scope 3.

Within Divisions,Regional Offices
and Group
Companies

Division
Environmental
Management
Committees

tion from the fiscal year 2019 for

CO2 Emission Reduction Targets for
the Fiscal Year 2030
Scope 1+ 2Compared
to FY2019

Scope 3Compared
to FY2019

Reference

50 %
14 %

reduction
reduction［ Announced in 2017］
Reduction target for FY2030:
Compared to FY2013 7% reduction

KDDI Sustainability Report 2021

15

Top Message

KDDI’s Commitment to Sustainability

Feature Article 1: KDDI’s Response to Climate Change

Feature Article 2: KDDI Sustainable Action

Materiality

Management Framework

Engagement

Feature Article 2
Connecting and Protecting Lives

KDDI Sustainable Action
In May 2020, KDDI formulated “KDDI Sustainable Action: Our power tomake connections will help create a brighter future for all,” KDDI’s SDGs
looking ahead to 2030, to express our determination to continue working
to solve various social issues through our businesses, and has developed anumber of initiatives. Some of these initiatives are described below.
Click here for interviews with employees

Prepare for Disasters through Various Means to
Restore Communications as Quickly as Possible
To date, KDDI has introduced and studied a variety of disaster countermeasureequipment, including ship-based base stations that transmit radio waves from thesea in the event that land routes are cut off, and demonstration tests of helicopter
base stations that enable communications in isolated areas in the mountains. In
2021, we became the first Japanese telecommunications carrier to introduce amphibious vehicles and all-terrain vehicles. As natural disasters tend to become more
severe, this equipment will be used to transport recovery personnel and equipment

Special Movie

Stories Gallery (Japanese only)

Building a resilient infrastructure for communication and disaster response

to areas that have suffered widespread flooding damage, with the aim of restoring

Watch “KDDI Sustainable Action” in videocommunications as quickly as possible.
KDDI Sustainable Action

Connecting and Protecting Lives

Building a resilient
infrastructure forcommunication anddisaster response

Conserving theenvironment

Connecting Day-to-Day Lives

Sustainable development for cities
and communities

Building the infrastructure for developing countries

Developing humanresources for the
next generation

KDDI reliable communication infrastructure that ensures communication
service at all times under any circumstances and KDDI well-prepared land-Materiality 1tect people’s lives as a lifeline.

Safer and more resilient connected
worldKDDI will proactively drive a shift to renewable energy to achieve

Materiality 6

net-zero CO2 emissions by 2050 and reduce the environmental impact
on society through the use of ICTs.

An energy-efficient, circular economy

KDDI will realize the sustainable growth of communities by utilizing

Materiality 1

cutting-edge technologies such as 5G and IoT together with various

Safer and more resilient connectedworld

sea-air recovery support system during severe large-scale disasters pro-partners through the establishment of next-generation smart cities.

cation area. We will also provide high quality communication services
at low prices to realize industrial growth.
kDDI will disseminate an easy-access education environment for ev-

Materiality 3

Eastern Japan Operations
CenterOperations Division
Technology Sector

sustainable growth.

Materiality 2

Cyber security and privacy protection

Connecting Hearts and Minds

Rewarding workplaces for diverse
talentsby providing services and workplaces that respect diversity and real-

Materiality 5

Respect for human rights and fairness in businessin an era where people live longer, KDDI will realize a society where

Materiality 4anyone can feel healthy and satisfied in their job by taking leadership

Rewarding workplaces for diverse
talentsin the execution of work style reform and utilizing cutting-edge ICTs.

KDDI Sustainability Report 2021

Connecting Hearts and Minds

Promotion of diversity and inclusion

We manually disassemble used mobile phones and smartphones that are no longer

Materiality 4

ize an inclusive society that respects diversity.

Conserving the environment

Mobile Phone Material Recycling with KDDI Challenged

cation of Japan to the top of the world and build a solid foundation for

kDDI will be a role model as a business operator with a social mission

Connecting and Protecting Lives

Fulfilled life brought through ICTs

eryone by integrating education and technology to raise the ICT edu-

ment and financial services which are easily usable by anyone.

Fostering healthand a purpose inlife

Keishiro Fukushima

infrastructures so all local residents will be included in the communi-

kDDI will realize a digital society for affluence and peace of mind by

Promotion of diversity and inclusion

In disaster-stricken areas, what customers
desperately need is to confirm the safety of
their loved ones who have been separated
from them. That is why we need to restore
communications as soon as possible even by
the difference of one minute or one second
and work promptly. When we were movingaround a disaster area with a vehicle-mountedbase station (a vehicle equipped with the necessary communication equipment) to perform
restoration work for typhoon damage in Chiba
Prefecture, there was a customer telling us,“Thanks to au’s connection, I was finally able
to contact my family. Thank you.” I will neverforget what they said
to me. The smile of relief on their face gaveme great strength andmade me realize that
our work connects
people’s minds.

mainly in developing countries in Asia, KDDI will build communication

Creating a digitalprotecting personal information with security measures which keepsociety for affluencepace with rapid digitalization and providing services including payand peace of mind

16

Materiality

Connecting People’s Minds, of Which Importance I Felt during Disaster Recovery

needed by our customers, achieving a recycling rate of 99.8% (industry average
72.6%). In addition, KDDI Challenged, a special-purpose subsidiary, is partially responsible for a part of manual disassembly work, creating new employment opportunities for people with disabilities. In recognition of these efforts, KDDI received
the “Corporate Philanthropy Award for Resource Recycling” at the 18th Corporate
Philanthropy Awards (sponsored by the Japan Philanthropic Association) in February 2021.

99.8
Recycling Rate%

KDDI Sustainability Report 2021

17

Top Message

Connecting Day-to-Day Lives

KDDI’s Commitment to Sustainability

Sustainable development for cities and communities

Feature Article 1: KDDI’s Response to Climate Change

Connecting Hearts and Minds

Resolution of Regional Issues Led by Smart Drones

Feature Article 2: KDDI Sustainable Action

Creating a digital society for affluence and peace of mind

Eliminate “Smartphone Addiction” andEnsure Safe and Appropriate UseTogether with the city of Ina in Nagano Prefecture, we have established asystem in which daily commodities such as groceries can be ordered via aMateriality

Engagement

Image of the “Smartphone Addiction” Joint Research
National University
Corporation Tokyo Medical
and Dental University

Interview
Request for cooperationin the survey

at the Internet
1 Consultation
Addiction Outpatient Clinic

In order to provide a safer and more secure environment forcable TV screen and delivered by drone to the nearest public facility. We areManagement FrameworkDatasharing

Verification
resultsharing

Treatment(psychotherapy, lifestyle
guidance, medication, etc.)

3 Log-based Treatment

smartphone use, we have started joint research with medicalalso working with the Tokyo Metropolitan Government on a demonstration

institutions, as well as promoting research and clarification ofexperiment to transport emergency supplies by drone to isolated areas in theProvisionof appsthe actual situation of “smartphone addiction” using neurosci-

event of a disaster, and we are working with local governments to solve re-2 Smartphone Log Collection

ence and AI. Based on these findings, we aim to commercialize

gional issues using drones.

Data
collection
andanalysisa smartphone application that detects, improves, and prevents
smartphone addiction in 2024.

Connecting Day-to-Day Lives

Building the infrastructure for developing countries

Enriching People’s Lives through Development of Mongolia’s Telecommunications
Infrastructure
As the largest telecommunications carrier in Mongolia, MobiCom, a consolidated
subsidiary of KDDI, has been contributing to the development of the country’s

Connecting Hearts and Minds

Promotion of diversity and inclusion

Creating a Work Environment Where LGBTQ +People Can Thrive
In recognition of our efforts to create an environment where LGBTQ +telecommunications infrastructure for 25 years, while at the same time contribut-

people can work with vitality, we received the highest PRIDE Index

ing to the development and improvement of the living foundations of the Mongo-

Gold Award for the fifth consecutive year. In addition, the company

lian people. In addition, the company has been actively engaged in social contri-

received the Best Practice Award for its “Family Partnership Applica-

bution activities such as installation of sanitary flush toilets and water purifiers attion,” in which a child born to a same-sex partner is treated as aschools in areas without water and sewage infrastructure, donations of SIM cards

family member under the company’s system.

and other items to medical personnel and police officers responding to COVID-19
infection, and support for students who need to take online classes due to school
closures. In 2020, MobiCom was awarded the “Golden Rose 2020” for its contri-

Received the highest rating of“Gold” in the PRIDE Index for
five consecutive years

butions in the areas of education and environment, and the “Best Tax Payer 2020”
for maintaining employment and tax payments during the COVID-19 pandemic.

Connecting Hearts and Minds
Connecting Day-to-Day Lives

Developing human resources for the next generation

I Want to Let the Next Generation
Know What Is Wonderful aboutWork

A Place to Nurture Children’s Life Skills
In the KidZania, a facility for children to experience jobs and society, we opened the “communications company” Pavilion, offeringexperiences that combine the latest technologies such as 5G. In
addition, to support educational opportunities for children whose
extracurricular activities have decreased due to the impact of
COVID-19 infection, a total of 40,000 groups of 160,000 customers
were invited to KidZania free of charge.

Reiko Kanzaki
KidZania Tokyo
KidZania Operation Division
KCJ GROUP INC. (second)

At KidZania, children can experience
about 100 different jobs and services
in a town designed for children. The
environment is a “microcosm of society,” with real brands and products
provided by real companies, providing a realistic experience. Working
contributes to society and enriches
one’s life through learning, encounters, and the joy of being of service
to others. I would like to continue tolet the next generation of children
know what is wonderful about work.

Free KidZania Invitations

18

KDDI Sustainability Report 2021

160,000people

Received the Best
Practice Award

Let Workability Be Driving Forcefor Society
In Japan today, since same-sex marriage is not legally recognized, bothparents cannot have parental rights inthe case of a same-sex couple. We
wanted to provide as much support as
possible for this social issue, so we
asked employees with same-sex partners and NPOs about the actual situation, problems, and what kind of support was needed, and we examined
the operational flow and system. We
believe that KDDI’s creation of this system not only provides peace of mind to
employees, but also sends a message
to the other employees and society.

Yukiko Yamada
Human Resources
Planning Department
Corporate Sector

Fostering health and a purpose in life

DX for Health Promotion That Is Close to
Each Individual’s LifeIn addition to the development of “Pocket Healthcare,” a health management
application that proposes health management and appropriate medical consultations, we are promoting DX in the health and medical fields and individualized health support by providing “au Wellness,” an exercise support service,and “curon for KDDI,” an online medical service that can be used seamlessly.
Number of Medical Institutions Registered with “curon for KDDI”

Approx.

5,000KDDI will continue to act to fulfill its social responsibilities by connecting and protecting
lives, connecting day-to-day lives, and connecting hearts and minds.
* The affiliation and contents are as of the time of the interviews.
KDDI Sustainability Report 2021

19

Top Message

Message from Executive Officer of SustainabilityKDDI’s Material Sustainability Issues

FY2020 Material KPI ResultsKDDI’s Commitment to Sustainability

FY2021 Material KPIs

Message from Executive Officer of Sustainability
Based on the KDDI Group Mission Statement of contributing to the development of a truly connected society, KDDI has made concerted efforts tosolve social issues as an infrastructure company that supports the information foundations of society.
In addition, as our company credo states, “Asking ourselves if our
motives are righteous or selfish,” we believe that the raison d’etre of acompany is not only to pursue profits but also to be useful to the world
and to contribute to the development of society. In May 2019, KDDI announced KDDI’s target SDGs together with the Medium-Term Management Plan for fiscal 2019-2021. In the process of promoting our initiatives
for the SDGs, we revisited the scope of the initiatives based on social issues to designate eight social issue categories based on the scale of related social issues and the business areas in which KDDI can contributeas a communications carrier, and in May 2020, we formulated the new
KDDI Sustainable Action in line with the KDDI SDGs for 2030.
As I serve as Executive Officer of both sustainability and finance, I will
work to strengthen sustainability management from both financial andnon-financial perspectives more than ever before. By doing so, we aim to increase KDDI’s corporate value and return social, environmental, and financial
value to all of our stakeholders. In this report, we delve into this subject in detail, but here the context of our discussion focuses on corporate governance,
environmental measures, human resources and human rights policies.
Reinforcement of Governance System
Even with our business areas diversifying along with proactive initiatives in
non-communication fields, KDDI strictly adheres to the Corporate Governance Code and puts the KDDI Group Philosophy into practice in its corporate activities. Particularly today we believe in the importance ofstrengthening corporate governance across the entire Group, including
subsidiaries, and we are building a structure for sharing know-how andproactively supporting Group companies in this regard. In addition, the revised Corporate Governance Code, which came into effect in June 2021,
has further increased the importance of addressing issues surrounding
sustainability. KDDI meets with institutional investors face to face on the
topics of governance and sustainability as part of its proactive efforts topromote dialogue with stakeholders and reflect their voices in management decisions.
Environmental Measures with a Focus on Responses to Climate Change
Movements to address environmental problems have gained momentum
and expanded with the Paris Agreement, Sustainable Development Goals(SDGs), the Task Force on Climate-related Financial Disclosures (TCFD),
the EU Taxonomy and the Taskforce on Nature-related Financial Disclosures (TNFD) that was officially launched this June. While the world has
begun to move toward carbon neutrality (realization of a carbon-free society), renewable energy has not adequately spread throughout Japan,
which urgently needs a concrete action plan in this regard. While we cancontribute to the reduction of CO2 emissions in society as a whole by improving business efficiency and reducing human movement through ourcore business of ICT and other information communications, we also face
the conflict that the environmental burden caused by the electricity consumed by communication facilities increases in proportion with theamount of communication. Even under these circumstances, we also declared in KDDI Sustainable Action that we will reduce the environmental
impact on society through the use of ICT, aiming to achieve net-zero CO2emissions by 2050. In April 2021, we announced our support for the recommendations of the TCFD, and in July, we raised the CO2 emission reduction target for the fiscal year 2030 set in the “KDDI GREEN PLAN
2017-2030” to “a 50% reduction compared to the fiscal year 2019.” Going forward, we will further promote initiatives to address climate change
involving our supply chain.

20KDDI Sustainability Report 2021

Executive Officer of Sustainability
Executive Vice President,
Representative Director / Executive
Director, Corporate Sector

Shinichi Muramoto

Transformation into a “Human Resources First Company”
As the productive population declines in Japan, it is imperative that companies provide attractive work environments that enable diverse work
styles (time, location, type of employment, etc.) so that employees canuse their various skills to the fullest, with the ultimate aim of sustaining
growth as a company and contributing to society. KDDI will continue topromote respect for diversity—in the context of women, nationality, religions, LGBTQ+* orientation, disability, and age / generation—and work tocreate an organization that makes the most of a variety of personalities
and abilities. The “LINK FOREST” training complex, which opened in April
2020, provides a place for learning both inside and outside the company,
as well as a hall that can hold events for up to 1,500 people, accommodation facilities, and a reference library. By providing the human resources
development services based on KDDI’s experience and know-how, we
support the growth of people and companies and contribute to the sustainable growth of society. In collaboration with the local community, thecomplex also serves as a vaccination site for COVID-19. KDDI aims totransform into a “human resources first company” that places the development and enhancement of human resources at the core of our management. In April 2018, the Company announced the KDDI Group Declaration of Health-Focused Management, and then created the Work Style
Reform & Health Management Department in January 2019 as an organization focusing on health management. From 2020, we are pushing forward with the following three transformations to achieve greater employee
vitality and productivity: Introduction of the KDDI Version Job Style Personnel System, Realization of the Declaration of KDDI New Work Styles
and Promotion of Internal DX.
Initiatives to Address Human Rights-Related Issues
As part of the ICT industry, we face many potential human rights issues,
including rights to privacy and freedom of expression as well as requests
from government authorities to disclose customer data for legitimate purposes. We will continue our efforts to identify and address human rights
issues in our business activities through ongoing dialogue with our stakeholders, while furthering understanding among employees of the KDDI
Code of Business Conduct and the KDDI Group Human Rights Policy. In
March 2020, we conducted human rights impact assessment of all ourbusiness activities to identify risks and opportunities across our businessactivities and take appropriate actions based on them. We will continue
monitoring the effectiveness of these activities for further improvement.
KDDI carries out various sustainability activities centered on six material
sustainability issues, and is accelerating efforts to advance sustainability
and SDGs by linking them to business strategies in its Medium-Term Management Plan. We will contribute to the sustainable growth of society
through efforts to solve social issues unique to Japan and issues related
to the SDGs, while valuing the communications we have with all stakeholders.
* LGBTQ+ stands for lesbian, gay, bisexual, transgender, questioning (people who are unsure of
their own sexuality and don’t want to decide), and plus (indicating that there are many other sexualities). Gender minorities include other people, but for the sake of convenience in this report,
LGBTQ+ refers to all gender minorities, including LGBTQ.

Feature Article 1: KDDI’s Response to Climate Change

Materiality 1

Materiality 2

Feature Article 2: KDDI Sustainable Action

Materiality 3

Materiality 4

Materiality 5

Materiality

Management Framework

Engagement

Materiality 6KDDI’s Material Sustainability Issues
We at KDDI have identified six material sustainability issues among the numerous issues we face in relation to our business activities, based on theeffect they have on stakeholder reputation and decision-making and thecompany’s impact on the environment, society and economy.

The Sustainability Committee periodically checks up on progress being
made toward KPIs set for each material issue.

S Society

1 Safer and more resilient connected world• Resilience to extreme weather events• Risk management

2 Cyber security and privacy protection• Utilization of information assets and tightening of security• Data privacy

3 Fulfilled life brought through ICTs
• Contribution to economic growth through robust information
communications infrastructure• Improvement of access to education, medicine and other public
services through ICTs
• Promotion of employment creation and capacity building• Innovation management

4 Rewarding workplaces for diverse talents• Promotion of diversity and inclusion• Human resource development and career development• Pursuit of employee satisfaction• Promotion of health-focused management

By continuing to provide secure, resilient and high-quality communications
services for a highly connected society, KDDI maintains lifelines for people andhelps create the foundation for a safe and secure information-based society.
The Company is building systems hardened against disasters, while aiming tocollaborate with related institutions to provide reliable information communications services even during unforeseen incidents like natural disasters.
We have put into place a complete system for protecting the confidentiality ofcommunications and customer information so that customers can utilize ourservices without worry. We have a special organization dedicated to thwarting
external cyberattacks, monitoring our networks for suspicious activity 24 hours
a day, 365 days a year. While strengthening governance, the KDDI Group has
put in place an information security framework to prevent internal leaks of information.

For the coming era of 5G and IoT, KDDI is accelerating initiatives to realize “theintegration of telecommunications and life design.” With communications as
its core business, KDDI intends to expand services that are essential in its
customers’ lifestyles, such as content, commerce, energy, financial services
and education, in a bid to solve social issues and bring more abundance toeveryone’s lives.

KDDI aims to motivate its employees and improve its competitiveness as acompany by optimally assigning personnel and maximizing the value of humanresources by applying the diversity and multifaceted capabilities of its employees as organizational strengths.
Furthermore, the Company is promoting health management and work
style reforms with the objective of helping employees maintain and improvetheir physical and mental well-being, while ensuring their safety. By instilling in
our corporate culture a reverence for health, we strive to enhance the vitality
and productivity of our employees.

G Governance

5 Respect for human rights and fairness in business• Pursuit of sustainable procurement• Respect for workers’ rights• Prevention of corruption and bribery• Promotion of fair and proactive communication

KDDI strives to eliminate or minimize any negative impact on human rights,
while taking action to raise human rights awareness, based on the KDDI Codeof Business Conduct (a basic set of principles for respecting human rights andindividuality) and the KDDI Group Human Rights Policy, which covers all
Group companies, based on international standards including the Universal
Declaration of Human Rights.
The KDDI Sustainable and Responsible Procurement Guidelines, which is
directed at our business partners, explicitly forbid forced labor, inhumane
treatment, child labor, and discrimination. KDDI takes steps to ensure these
initiatives are well understood.

E Environment

6 An energy-efficient, circular economy• Energy efficiency improvement and utilization of clean energy• Zero emissions and 3Rs• Reduction of society’s impact on environment through ICTs

KDDI has raised its non-consolidated (domestic) CO2 emissions reduction
target for fiscal year 2030, set out in the “KDDI GREEN PLAN 2017-2030,” to“a 50% reduction compared to the fiscal year 2019,” and has set various
other targets. We will proactively drive a shift to renewable energy to achieve
net-zero CO2 emissions by 2050 and reduce the environmental burden on
society through use of ICT. Although power consumption is expected to increase due to the increase in traffic (communication volume) in the future, wewill continue to address this challenge through innovations such as the development of technologies that reduce power consumption.

KDDI Sustainability Report 2021

21

Top Message

Message from Executive Officer of SustainabilityKDDI’s Material Sustainability Issues

KDDI’s Commitment to Sustainability

FY2020 Material KPI Results

FY2021 Material KPIs

Feature Article 1: KDDI’s Response to Climate Change

Materiality 1

Materiality 2

Feature Article 2: KDDI Sustainable Action

Materiality 3

Materiality 4

Materiality 5

Materiality

Management Framework

Engagement

Materiality 6KDDI’s Material Sustainability Issues
Process for Re-identifying Material Issues (FY2016-FY2017)KDDI Group

Policy1. Screen for issues from the two perspectives of effect they have on stakeholder reputation and decision-making, as well as the company’s impact on theenvironment, society and economy
2. Assign priorities for each issue based on comparative evaluations
3. Identify six material sustainability issues that reflect the opinions of external experts gained through dialogue
4. The Sustainability Committee confirms the suitability of the material issues, which are then approved by the Corporate Management Committee and reported to the Board of Directors.
For details of the re-identifying process, please refer to our Sustainability Report 2018. In addition, we are currently reviewing our materialities for the
next mid-term management plan (FY2022-FY2024).
Sustainability Report 2018

2 Cyber security and privacy

1-1 Resilience to extreme weather events
1-2 Risk management

2-1 U
 tilization of information assets andtightening of security
2-2 Data privacy

3 F ulfilled life brought

4 Rewarding workplaces

3-1 C ontribution to economic growththrough robust information
communications infrastructure
3-2 Improvement of access to education,
medicine and other public services
through ICTs
3-3 P
 romotion of employment creationand capacity building
3-4 Innovation management

4-1 Promotion of diversity and inclusion
4-2 Human resource development andcareer development
4-3 Pursuit of employee satisfaction
4-4 P romotion of health-focusedmanagement

5 R espect for human rights

6 An energy-efficient,

5-1 Pursuit of sustainable procurement
5-2 Respect for workers’ rights
5-3 Prevention of corruption and bribery
5-4 P romotion of fair and proactive
communication

6-1 E nergy efficiency improvement andutilization of clean energy
6-2 Zero emissions and 3Rs
6-3 R eduction of society’s impact onenvironment through ICTs

connected world▪ Matrix of Material Issues
Effect they have on stakeholder reputation and decision-making

1 S afer and more resilient

Material issues identified by KDDI

protection

through ICTs

5-3

6-1

3-1

6-2
1-1
4-2

5-4

6-3 4-1

5-1
3-4

4-3

2-1

3-2

5-2

3-3
2-2

1-2
4-4

for diverse talents

and fairness in businessCompany’s impact on the environment, society and economy

circular economy

Relationship between Material Issues and KDDI Sustainable Action
KDDI engages in various business activities and initiatives that help
contribute to the attainment of SDGs. KDDI’s Medium-Term Management
Plan for fiscal 2019-2021 sets out the company’s vision, to which a newtarget of “contributing to the sustainable growth of society” has been added. The company also presented an overview of KDDI’s target SDGs together with quantifiable performance indicators consistent with the Management Plan. In May 2020, we revised KDDI’s Target SDGs from theperspective of “magnitude of social issues” and “business areas where weKDDI Group

Policy &Systemcan contribute more as a telecommunications carrier,” and established target “KDDI Sustainable Action” for 2030 in eight categories of social issues.
The foundation for these activities is the sustainability activities centered on the six materialities that we have been working on. Our material
issues relate to the social issue categories as shown in the table below.
By addressing the issues, we believe that we can contribute to theachievement of the SDGs.

Enhancing Internal Understanding of Sustainability and SDGs

KDDI Group

Awareness
Raisin& Activity

In February 2019, the President was appointed as chair of the Sustainability Committee, and the other members of this committee were shuffled toinclude all executive directors, general managers of all business and corporate sectors of the headquarters, the head of the KDDI Foundation, andauditors. In addition, in July 2021, Executive Officer of Finance (Executive
Vice President, Representative Director / Executive Director, Corporate
Sector) was appointed as Executive Officer of Sustainability. We are working to maximize corporate value from both financial and non-financial perspectives, and are promoting the SDGs with sustainability as a pillar of ourcorporate management strategy.
In his New Year’s address and announcements of management policies for the next fiscal year, the President conveys to all employees theimportance of advancing sustainability initiatives in business strategies tosolve social issues through business activities in a bid to realize a sustainable society. Moreover, we are utilizing the online system during the pandemic, thus enabling us to promote initiatives through which executive officers can directly convey corporate policies to employees across Japanand exchange opinions with them.

In February 2021, we launched the “KDDI Sustainable Action Stories
Gallery” on our website to introduce employees engaged in the KDDI Sustainable Action. As an initiative focused on outside the company, we areworking to enhance the brand image appealing to potential human resources and raise employee awareness through the shower effect.

As a measure starting in the fiscal year 2020, each and every employee,
including management and executives, carries a “My SDGs Declaration”
card with them at all times to express their intention to work on SDGs thatthey can contribute to through their work and makes the content of theirdeclaration visible in the background of online meetings, leading to enhanced daily visibility.
In addition, we held study sessions for our bases nationwide to concretely explain the relationship between our business operations and the“eight social issue categories” that we aim to solve with the KDDI Sustainable Action, in order to connect them to employee behavior. They werealso implemented online due to the spread of the COVID-19 infection, anda total of more than 9,000 employees from 26 headquarters and 10
branch offices participated. In December 2020, we held an internal SDGs
seminar by open call for participants, and enjoyed discussing SDGs that
we can contribute to through daily operations using card games*.

Furthermore, as a bottom-up measure, we implemented e-learning todeepen understanding of the KDDI Sustainable Action, established theSDGs communication portal site “Everyone’s SDGs” on the company intranet, and launched a new SDGs section in the web-based company
newsletter. In addition to the staff of the Sustainability Department, “MySDGs” blogs are updated daily by internal side-job members who were
publicly recruited and ambassadors, contributing to the promotion of employees’ daily involvement in the SDGs and enhanced understanding ofthem.
In February 2021, in order to deliver content such as introduction andquizzes of practical examples of the SDGs within the company, we held anine-day project “SDG Weeks,” nine themes of which were eight social issue categories set out in the KDDI Sustainable Action and the SDGs’ goal
17 “Resolving social issues through partnerships.”

Stories Gallery (Japanese only)

Display of the KDDI Sustainable Action Stories Gallery at the KDDI’s head office reception* Created a card game specialized for KDDI business operations based on the SDGs card game“THE SDGs Action Card Game X (Cross)” planned and developed by the Kanazawa Institute ofTechnology as an industry-university joint project.

KDDI Sustainable Action▪ Relationship between KDDI’s Material Issues and Eight Social Issue Categories (KDDI Sustainable Action)
Social issue categories
Building a resilient
infrastructure forcommunication anddisaster response

1.	Safer and more resilient
connected world

Conserving
the environment●

Sustainable
Developing human Creating a digital
Building
development for cities the infrastructure for resources for the society for affluenceand peace of mind
and communities
developing countries
next generation

A panel discussion at a study session by divisions●

Materiality

3.	Fulfilled life brought
through ICTs●●

4.	Rewarding workplaces fordiverse talents●

5.	Respect for human rights
and fairness in business●

6.	An energy-efficient, circular economy

Corresponding SDGs

KDDI Sustainability Report 2021

Fostering healthand a purpose inlife●

2.	Cyber security and privacy
protection

22

Promotion ofdiversityand inclusion●●

An internal SDGs seminar

KDDI Sustainability Report 2021

23

Top Message

Message from Executive Officer of SustainabilityKDDI’s Material Sustainability Issues

KDDI’s Commitment to Sustainability

FY2020 Material KPI Results

FY2021 Material KPIs

FY2020 Material KPI Results

1

2

3

•R
 esilience toSafer and more
extreme weather
resilient connected
eventsworld•R isk management

Cyber security
and privacy
protection

Fulfilled life
brought throughICTs• SocietyRewarding
workplaces fordiverse talents•U tilization of
information assets
and tightening of
security•D ata privacy•C ontribution toeconomic growththrough robust
information
communications
infrastructure• Improvement ofaccess to education,
medicine and otherpublic services
through ICTs
•P
 romotion of
employment
creation andcapacity building• Innovation
management•P romotion ofdiversity andinclusion•H uman resource
development andcareerdevelopment• Pursuit of employee
satisfaction•P romotion ofhealth-focusedmanagement

FY2020 Material KPIs

4G LTE population coverage rate over 99.9% (FY2021)• Governance6• Environment• Energy efficiency
improvement andutilization of clean
energy• Zero emissions and3Rs• Reduction ofsociety’s impact
on environment
through ICTs

Boundary (scopeof aggregation)
KDDI
Unconsolidated

FY2020 Results

KDDI
Group

●

Results
99.9%

KDDI Sustainability Report 2021

Materiality 5

Management Framework

Engagement

Materiality 6

Materiality

IssuesBoundary (scopeof aggregation)

FY2021 Material KPIs

KDDI
Unconsolidated

Evaluation* 1
Stillunder way

1

Safer and more resilient
connected world• Resilience to extreme weather events• Risk management

4G LTE population coverage rate over 99.9% (FY2021)●●

Implement measure to enhance the resilience of telecommunication routes●

The Shikoku Route was made more
resilient (February 2021)

Achieved

Number of serious accidents: 0* Following the guidelines of the accident reporting criteria of Japan’s
Ministry of Internal Affairs and Communications●

0 (no accidents)

Achieved

Number of serious accidents: 0* Based on the guidelines of the accident reporting criteria of Japan’s Ministry of Internal
Affairs and Communications●

Implement measures to prevent leaks and enhance earthquake protections
at communication stations (FY2021)●

Measures to prevent leaks were taken
at 11 additional communication stations(March 2021)

Still
under way

Implement measures to prevent leaks and enhance earthquake protections at
communication stations (FY2021)●

Data security incidents: 0* Data breaches, complaints, etc., that are illegal or subject to regulatory
guidance●0

Achieved

Data security training for all employees: held at least once a year●

3 times (Implemented an e-learning
program for all employees)

Achieved

Provide 5G services in all prefectures of Japan (FY2021)●

All Prefectures

Achieved

60 regional revitalization projects (initiatives to co-create solutions for issues
with regions using IoT and ICT) (cumulative total FY2019-FY2021)●

20 (FY2020)

Still
under way●

73,990,000

Still
under way●

Started provision of “English Time,”
which enables interactive English
vocabulary training by talking toan Amazon Alexa-powered device(February 2021)

Still
under way

9.0 trillion yen (FY2020)

Still
under way

Reach 78 million mobile connections* 2 in developing countries where KDDI
has a communications business presence (FY2021)●

Realize highly effective learning environments using adaptive learning* 3 andother advanced techniques (FY2021)●

Settlement and financial transactions: 6.0 trillion yen (FY2021)

●

●

●

●

Number of females in managerial
positions: 175(as of April 1, 2021)

Not
achieved

Percentage of newly hired female graduates: 30% (by the end of FY2020)●

32.4% (FY2020)

Achieved

Disability employment rate: statutory rate achieved●*4

2.50% (as of June 2021)

Achieved●• A scheme for recruiting elder humanresources has been established.
• Career seminars for elders havebeen held as planned, and thefoundation for promoting their active
performance has been established.

Stillunder way

• Illness detection rate: 63.7% (FY2020)• Rate of smokers: 24.3% (FY2020)

Not
achieved

As a leading company in promoting the professional advancement ofelderly employees, establish a foundation for promoting such advancement(FY2021 target)●

Number of cases of human rights violation: 0* Human rights violation refers to abuse of human rights, such as power
harassment, subject to disciplinary action

●

2

Not
achieved

KDDI Group Philosophy Study Session attendance: 100%

●

93.8%

Not
achieved●

Distribution of web shortcuts related to
the KDDI Code of Business Conduct
to business mobile devices of all
employees, making it viewable anytime(changes in measures)

Achieved

Measures for instilling the KDDI Code of Business Conduct company-wide:
12 or more per year

2

3

•P
 romoting measures to hire 200 female line managers (by the end of
FY2020) uilding a system to promote women’s active performance throughout the•B
KDDI Group

Cyber security and privacy
protection

Fulfilled life brought through
ICTs

S

4

5

Rewarding workplaces fordiverse talents

Respect for human rights andfairness in businessG• Utilization of information assets and tightening Data security incidents: 0of security* Data breaches, complaints, etc., that are illegal or subject to regulatory guidance• Data privacy
Data security training for all employees: held at least once a year
• Contribution to economic growth through robust
information communications infrastructure• Improvement of access to education, medicine
and other public services through ICTs
• Promotion of employment creation and capacity building• Innovation management• Promotion of diversity and inclusion• Human resource development and careerdevelopment• Pursuit of employee satisfaction• Promotion of health-focused management• Pursuit of sustainable procurement• Respect for workers’ rights• Prevention of corruption and bribery• Promotion of fair and proactive communication

60 regional revitalization projects (initiatives to co-create solutions for issues with regions
using IoT and ICT) (cumulative total FY2019-FY2021)●

Reach 78 million mobile connections * 1 in developing countries where KDDI has a communications business presence (FY2021)●●

Realize highly effective learning environments using adaptive learning*2 and otheradvanced techniques (FY2021)●●

Settlement and financial transactions: 9.3 trillion yen (FY2021)●●

Promoting measures to hire 200 females in managerial positions(by the end of FY2022)●

Percentage of newly hired female graduates: 30% (by the end of FY2021)●

Disability employment rate: statutory rate achieved● *3

As a leading company in promoting the professional advancement of elderly employees,
establish a foundation for promoting such advancement (FY2021 target)●

Development of security field human resources: maintain 200 employees●

Recognition rate of LGBTQ+ Ally: 70% (by the end of FY2021)●

Usage rate of annual paid leaves: 80% (by the end of FY2021)●

Reinstatement after parental leave of absence: 100% for both males and females(by the end of FY2021)●

Healthcare management initiatives• Illness detection rate (legally mandated): 62.4% or less (by the end of FY2021)• Rate of smokers: 20.3% or less (by the end of FY2021)●

Number of cases of human rights violation: 0*Human rights violation refers to abuse of human rights, such as power harassment, subject to disciplinary action●

KDDI Group Philosophy Study Session attendance: 100%●

Implementation of executive officers trainings for the group companies
Post-training survey satisfaction rate: 95%●

Collection rate of responsible procurement surveys: 90%●

KDDI Smartphone & Mobile Phone Safety Classes, Comprehension Rate, Satisfaction Rate
• For youths: satisfaction with lecturers: 99%; desire to reapply: 85%; Establishment of
online courses•For older people: comprehension rate: 86%; usage rate: 92%●

50% reduction in CO2 emissions in FY2030, compared to FY2019 for KDDI (in Japan,
non-consolidated)●

Achieve net-zero CO2 emissions by 2050●

Maintain zero emissions from retired telecommunication facilities (FY2030)
Final disposal rate: 1% or less (Zero emissions is defined as having a final disposal rate of
1% or less)●Utilization of renewable energy and construction of energy-efficient data centers, mobile
phone base stations, etc. (FY2030)●

96%

Achieved●• For youths: satisfaction with lecturers:
98.9%; desire to reapply: 86.9%,
Start of online courses• F or older people: comprehension
rate: 86.7%; usage rate: 94.1%

Partially
achieved

7% reduction in CO2 emissions in FY2030, compared to FY2013 for KDDI(in Japan, non-consolidated)●

FY2020 target: 1,002,522t-CO2
FY2020 results: 1,056,125t-CO2* 5

Stillunder way

Maintain zero emissions from retired telecommunication facilities (FY2030)
Final disposal rate: 1% or less (Zero emissions is defined as having a final
disposal rate of 1% or less)●

Final disposal rate: 0.02% (FY2020)

Still
under way

Upgrading to highly energy-efficient data centers in Japan and abroad(FY2030)●

Started provision of a domestic data
center “TELEHOUSE TOKYO Tama5”(July 2020)

Still
under way

Maintain material recycling rate of 99.8% for post-consumer mobile phones(FY2030)●

99.8% (FY2020)

Still
under way

Maintain material recycling rate of 99.8% for post-consumer mobile phones (FY2030)●

Post-consumer mobile phones collected over 5 years (aggregated):
6 million (Target for FY2018-FY2022)●

FY2020 target: 3,600,000 (cumulative)
FY2020 results: 3,546,860 (cumulative)

Stillunder way

Post-consumer mobile phones collected over 5 years (aggregated): 6 million (Target for
FY2018-FY2022)

●

●

E

An energy-efficient, circular
economy• Energy efficiency improvement and utilizationof clean energy• Zero emissions and 3Rs• Reduction of society’s impact on environment
through ICTs

●

●

●

6

KDDI
Group

●

KDDI Smartphone & Mobile Phone Safety Classes, Comprehension Rate,
Satisfaction Rate
• For youths: satisfaction with lecturers: 99%; desire to reapply: 85%;
Start of a new style of courses• For older people: comprehension rate: 86%; usage rate: 92%

Collection rate of responsible procurement surveys: 90%* 1 The status of KPIs with a target set to achieve by FY2021 and beyond are indicated as “Still under way” across the board, including those progressing according to the FY2020 plan.
* 2 Number of mobile connections: Number of activated SIM cards (GSMA’s “Mobile connections, including licensed cellular IoT”) .
* 3 Adaptive learning: The provision of study materials and learning methods optimized for each individual, based on each student’s level of understanding and progress.
* 4 Includes KDDI Challenged (special subsidiary) and KDDI Engineering* 5 The CO2 emissions are calculated using the emission factors furnished by electric utility operators. (Emissions from heat, steam and hot and chilled water consumption are included.)24

Materiality 4

Materiality

FY2021 Material KPIs

• EnvironmentEAn
energy-efficient,circular economy

Materiality 3• GovernanceG• Pursuit of
Respect forsustainablehuman rights andprocurement
fairness inbusiness• Respect forworkers’ rights• Prevention ofcorruption andbribery• Promotion of fairand proactive
communication

Feature Article 2: KDDI Sustainable Action

5G coverage on platforms, in stations, and on trains running between stations in major
sections of 21 lines in the Kanto region and 5 lines in the Kansai region, including JR andprivate railways (FY2021)

Healthcare management initiatives• Illness detection rate (legally mandated): 55% or less (target figure for FY2020 end)•R
 ate of smokers: 18% or less (target figure for FY2020 end)5

Materiality 2• SocietyS

4

IssuesMateriality 1

ESG

ESG

Materiality

Feature Article 1: KDDI’s Response to Climate Change●●* 1 Number of mobile connections: Number of activated SIM cards (GSMA’s “Mobile connections, including licensed cellular IoT”)* 2 Adaptive learning: The provision of study materials and learning methods optimized for each individual, based on each student’s level of understanding and progress.
* 3 Includes KDDI Challenged (special subsidiary) and KDDI Engineering

KDDI Sustainability Report 2021

25

Top Message

Message from Executive Officer of SustainabilityKDDI’s Material Sustainability Issues

FY2020 Material KPI ResultsKDDI’s Commitment to Sustainability

FY2021 Material KPIs

Feature Article 1: KDDI’s Response to Climate Change

Materiality 1

Materiality 2

Feature Article 2: KDDI Sustainable Action

Materiality 3

Materiality 4

Materiality

Materiality 5

Management Framework

Engagement

Materiality 6

Materiality 1

Safer and More Resilient Connected World• Resilience to extreme weather events • Risk management

Network Quality Management and ImprovementKDDI’s ApproachKDDI Group

Social Issue
In an advanced information society, communications services are themost essential lifeline. The disruption of this lifeline due to a natural disaster can be a major factor behind a downturn in society and the economy
itself. We at KDDI believe we are responsible for supporting local communities where people can live with peace of mind by continuing to offering reliable communications services 24 hours a day, 365 days a year.

Management Framework
The ongoing provision of a stable, resilient, high-quality telecommunications environment helps maintain lifelines and creates a foundation for a safe and secure information-based society. KDDI has been
defined as a designated public institution under the Disaster
Countermeasures Basic Act. To ensure our ability to provide stable
information and telecommunications services under any circumstances, we formulated a disaster policy in the form of a BusinessContinuity Plan (BCP) for Large-Scale Disasters, established a system for dealing with various disaster scenarios, and launched initiatives to, for example, ensure rapid relief for areas affected by disasters, in cooperation with relevant organizations.
 DDI maintains and operates many telecommunications facilities, inK
cluding optical cables and mobile phone base stations, via operation
departments such as technical centers located throughout Japan.
 he operations centers conduct centralized monitoring of networkTconditions nationwide 24 hours a day, 365 days a year. In the eventof an outage and other failures, these centers appropriately control
communications and restore them in collaboration with maintenancedepartments throughout Japan.

PolicyOur Risks and Opportunities
Our corporate value could drop if we fail to provide our communications services for any reasons, even because of natural disasters.
 e believe that providing communications services continuously inWthe midst of unforeseen events to support society and the economy
is our responsibility and will result in the rise of our company value.

 o ensure high-quality and reliable network service, we build, anaTlyze and improve our facility operating system in line with our stringent standards under the management framework.
 ike elsewhere, the global consumer business faces the same deL
mand for reliability in telecommunications. Even in regions where thesocial infrastructure is not as well established as that of Japan, weare rolling out operational know-how and management methods developed in Japan with considerations to individual nation’s needs toensure that customers can expect reliable, uninterrupted service 24
hours a day, 365 days a year. Moreover, to improve the reliability of
our systems and networks, we have established design standards
that include redundancies. We are actively working to enhance ourtechnological capabilities related to maintenance and operations. In
addition, we have measures in place to protect systems and customers from various security threats and apply KDDI standards toenvironmental upgrades to counter external and internal security
threats.

KDDI’s Approach (Management andImprovement of Network Quality)

KDDI Group

PolicyOur mission as a telecommunications operator is to ensure a communications
environment where customers can use mobile phones and smartphones
easily anytime anywhere. KDDI will offer safe and secure communications
services by engaging sincerely in every operation from quality management
and improvement of communications infrastructure, such as mobile phonebase stations and switching equipment for fixed-line phones, to building
next-generation networks.

Network Service Quality
Management System

KDDI

SystemKDDI owns a number of telecommunications facilities, including opticalcables and mobile phone base stations, which it maintains and operates
via technical centers located throughout Japan.
The operations centers conduct centralized monitoring of network
conditions nationwide 24 hours a day, 365 days a year. In the event ofan outage and other failures, these centers appropriately control communications, working with maintenance departments throughout Japan.
To ensure high-quality and reliable network service, we build, analyze
and improve our facility operating system in line with our stringent standards.
Aiming for zero serious accidents, we at KDDI hold 20,000 training
sessions each year. Our work procedures are based on the ideas of capacity design of telecommunications equipment, functional redundancy,
distributed arrangement of facilities and functional safety.

PLAN (Aim & Standard)
Establish and update product quality and quality standards(Quality of planning, design, compliance, and operation)

FY2021 Material KPIs

KDDI Group

PolicyDO
FY2021 Material KPIs

Build facilities based on product quality(Network building, monitoring equipment, operation system, etc.)

Moving Forward

KDDI Group

PolicyStrengthen our responses in disaster-stricken areas and business continuity measures in the event of an earthquake directly beneath Tokyo
Metropolitan Area or the eruption of Mt. Fuji
Strengthen collaboration with Group companies
Improve each disaster response staff’s skills

Initiatives
KDDI Sustainable Action P.16-19
Network Quality Management and Improvement
Disaster Preparedness P.30-31
Initiatives outside Japan P.32-33

26

KDDI Sustainability Report 2021

KDDI Group

PolicyCHECK
Analyze customer satisfaction with quality standards(Availability rate, failure rate, customer satisfaction, etc.)

Frequency and Duration of
Network Interruption

KDDI

System

In the event that network failure or maintenance causes any inconveniences
to our customers’ communications, we will make notice about it on the
failure and maintenance information page at our website.
Failure and Maintenance Information (for corporate customers) (Japanese only)
Failure and Maintenance Information (for personal customers) (Japanese only)

Expansion of Service Areas(Base Station Facilities)

KDDI

PolicyOur mission is to offer a stable call and data transmission environment
around the clock with a motto of “connecting and protecting lives, connecting day-to-day lives, and connecting hearts and minds.” We will aim
to build a 5G telecommunications network together with au 4G LTE communications network (800 MHz platinum band, etc.) across Japan to provide a more comfortable telecommunications environment. The 5G service, which provides an advanced telecommunications environment of low
latency and high capacity, is much anticipated by many of our customers.
We plan to roll it out in regions as well as major cities. We will strive to offer au mobile phone and smartphone users a reliable communications environment in crowded areas as well as airports, commercial facilities, event
halls, and other in-house spaces.

Building Mobile Phone Base Stations andCare for Neighbors

KDDI

SystemTo offer a reliable communications environment to au mobile phone andsmartphone users, KDDI sets up mobile phone base stations in all parts ofJapan to support new services and improve service area quality for ourcustomers’ safe and comfortable life. When designing and building a new,safe and reliable base station, we observe the Radio Law, Building Standards Act and other relevant laws and regulations as well as municipal
ordinances and guidelines. The installation work is carried out by an experienced, designated construction company under a thorough safety management scheme. In cases where the construction is expected to cause a
nuisance or inconvenience to the residents in the neighborhood due to anincrease in construction vehicle traffic and noise, or if we receive inquiries
about the base station, we share general information about the base station and explain about the construction work to ensure their understanding and cooperation.

ACTION
Improve items that fail to meet quality standards

P.27-29

KDDI Sustainability Report 2021

27

Top Message

Message from Executive Officer of SustainabilityKDDI’s Material Sustainability Issues

FY2020 Material KPI ResultsKDDI’s Commitment to Sustainability

FY2021 Material KPIs

Feature Article 1: KDDI’s Response to Climate Change

Materiality 1

Materiality 2

Feature Article 2: KDDI Sustainable Action

Materiality 3

Materiality 4

Materiality

Materiality 5

Management Framework

Engagement

Materiality 6

Materiality 1

Safer and More Resilient Connected World• Resilience to extreme weather events • Risk management
Network Quality Management and Improvement

Safety of Radio Waves
KDDI’s Approach (policy)
In compliance with the laws and regulations related to radio waves, we at
KDDI offer our mobile phones and operate our mobile phone basestations in Japan at an electromagnetic wave level below the limits set at
the Radio Radiation Protection Guidelines (RRPGs).
SystemJapan’s Ministry of Internal Affairs and Communications established theRadio Radiation Protection Guidelines (RRPGs), which serves as a standard in the use of radio and TV waves, and introduced regulations basedon these guidelines. The RRPGs, equivalent to the international guidelines
advocated by the World Health Organization (WHO), set the limits basedon the results of studies conducted across nations with safety factors fully
taken into account. It is commonly acknowledged among experts from
WHO and other international institutions that electromagnetic wave exposures below the limits will not have any known consequence on health.
We at KDDI take great care to ensure that the radio waves from ourmobile phone base stations poses no threat to safety. We design, build,
maintain and periodically inspect our base stations in strict compliancewith the relevant laws and regulations, including the RRPGs, stipulated in
the Radio Law and the Building Standards Act, as well as local government ordinances. We also explain to residents in local communities thatthe radio waves transmitted from our base stations comply with RRPGs
standards.
In addition, we offer mobile phones that comply with the permissible
values for radiation strength and absorption by the human body stipulated
in radio-wave-related laws and regulations while disclosing that information on our website.
Absorption Rates of au Phones (SAR) (Japanese only)

28

KDDI Sustainability Report 2021

KDDI Group

Policy &SystemResearch That Ensures the Safety of Radio Waves
In November 2002, KDDI began conducting joint experiments with NTT
DOCOMO Inc. and Soft Bank Corp., using human cells to evaluate theimpact of radio waves for mobile phones on living organisms. Some results of the experiments were published in an interim report in 2005, andthe final report issued in 2007 concluded that radio waves for mobile
phones have no confirmed effect on living organisms at the cellular level orgenetic level. This research serves as an example of scientific evidence
that refutes claims that radio waves may cause cancer affecting cell structure and function. It also reaffirms the safety of radio waves emitted frommobile phone base stations.
KDDI also participates in and actively contributes to the research conducted by the Electromagnetic Environment Committee of the Associationof Radio Industries and Businesses (ARIB) to study the safety of radio
waves transmitted by mobile phones.
We will continue to actively collaborate with relevant organizations on
research and testing on impacts of the radio wave frequencies used formobile phones on the human body and on medical equipment. We also
strive to stay updated about trends in research on safety of radio waves
for mobile phones in Japan and abroad.
In addition, we will continue providing information about the safety ofradio wave frequencies used for mobile phones on our website and othersources. When constructing mobile phone base stations, we make sure toprovide adequate explanations in response to inquiries from local residents
about radio waves safety to ensure their understanding and cooperation.
Organizations to Which KDDI Belongs or Is Giving Its Cooperation
Affiliation

Electromagnetic environment committee of Association of Radio
Industries and Businesses (ARIB), Electromagnetic Compatibility
Conference Japan

Affiliation

The National Institute of Information and Communications
Technology (NICT) / EMC-net
Study Group on the Evaluation of Human Exposure to Electromagnetic Fields

Affiliation

Japan national committee of the IEC / TC106 (Methods for theassessment of electric, magnetic and electromagnetic fields
associated with human exposure)
Working Group on the Evaluation of Electromagnetic Fields
around Base Stations

Researchcooperation

Mobi-Kids Japan (study investigating the effects of mobile
phones on health)

Providing a Convenient Usage
Environment: Signal Support 24

KDDI

Activity

As part of detailed quality improvement efforts for each customer, we offer
Signal Support 24, an after-sales support service concerning signal-related
problems, for all customers using au mobile phones.
In this service, KDDI staff visit the homes of customers who have inquired about signal quality and examine the reception conditions for au
mobile phones. We contact the customers to set up an appointment within 24 hours of their inquiry, and then visit to check the signal and improve
the signal quality using au Femtocells or au repeaters. We accept inquiries
about signal quality not only in homes but also outdoors and in offices andrestaurants. In fiscal 2020, we conducted approximately 21,000 site surveys and proposed measures to improve signal qualities based on them.
Going forward, we will strive to further improve customer satisfaction
with our services so that customers think “I’m glad that I chose au,” andexpand our service coverage.
Signal Support 24 is available also to customers using UQ mobile andpovo.
Signal Support 24 (Japanese only)

Approach to Next-Generation
High-Speed Communication

KDDI Group

PolicyThe mobile network that supports communication on smartphones andmobile phones has evolved from the first generation (1G) to the fourth
generation (4G) together with changes in the times and lifestyle. We conducted research and development of the next-generation mobile communication system “5G” with an aim to provide communications services withgreater stability and higher speed to customers and promote dramatic development of ICT network infrastructure, and on March 26, 2020, welaunched the “au 5G” service. 5G networks are capable of higher speed
and capacity, low latency and many simultaneous connections. By connecting everything via networks, beginning with smartphones and mobile
phones, we will continue helping to build Society 5.0 (a creation-basedsociety) as we create new services and solve social problems.
The COVID-19 pandemic has created the need for the “new normal”
in every aspect of industry and people’s everyday life. To create resilientsocial infrastructure designed to help prevent any further spread of infections while supporting economic growth, digital transformation (DX) shouldbe accelerated. With the concept “5G for everyone,” we will be working
with our partners in various industries to offer individual customers new
ways of enjoying entertainment, sports, and art, among others, that suitthe new normal, thereby making 5G available to as many people as possible. With regard to corporate customers, companies in various industries
have increasingly adopted DX for different purposes of use, dramaticallytransforming their business models. We have the KDDI Digital Gate, which
serves as a business development center in the age of 5G and IoT designed to assist customers with DX, along with the KDDI research atelier,which serves as a survey and applied research center that proposes a
new lifestyle toward 2030. At these centers, we plan to work with our various partners to create business as well as the new customer experienc
unique to the age of 5G, and to help build robust and resilient infrastructure that is highly adaptable to change of environment.

Advancing Research on 5G

KDDI Group

Activity &Results

With the evolution of devices and the proliferation of IoTs, mobile networks
are required to perform at much higher levels than expected before. KDDIwill work on demonstration experiments with its partner companies to pursue business opportunities beyond industrial borders and fields of business through the fifth-generation mobile communications system “5G”
with high speed, high capacity, low latency, and massive device connectivity.
We will actively roll out 5G services as basic next-generation infrastructure, develop businesses through co-creation with various partnercompanies, and promote open innovation that incorporates the innovativeideas and advanced technologies of start-ups. In this way, we will create
new customer experience and actively utilize 5G services for regional revitalization businesses.
In September 2020, with help from Samsung Electronics, we virtuallydivided a 5G network in the 5G standalone architecture, and succeededin the demonstration experiment of network slicing, which enables multiple
end-to-end communications tailored to each customer’s use and needs(e.g., quality assurance; low-latency) at the same time. In the future, we
hope to offer communication features tailored to varying use and needs,
including factory automation to collect sensor information and remote operations in the manufacturing industry, and autonomous driving and driving control in the traffic field.
5G Testing Initiatives
5G Co-Creation and Transformation —5G Research with Partners Creating
Businesses of the Future— (Japanese only)

Providing Service Environment
outside Japan

KDDI

Activity

The users of au smartphones and mobile phones can enjoy our voice anddata communications services in 150 or more countries and regions
around the world, including the World Data Flat service, which provides adata service at a flat rate. This is realized based on the partnerships withoverseas telecommunications operators that we have cultivated in thecourse of providing international telephone services for more than 65
years.
Starting from February 2020, an early booking discount is applicableto the World Data Flat service when the service is booked in Japan before
departure. No prior settings are required when using the service overseas.
KDDI will strive to continue to provide an environment where users
can use our communications services securely and comfortably outside
Japan.
The World Data Flat service

KDDI Sustainability Report 2021

29

Top Message

Message from Executive Officer of SustainabilityKDDI’s Material Sustainability Issues

FY2020 Material KPI ResultsKDDI’s Commitment to Sustainability

FY2021 Material KPIs

Feature Article 1: KDDI’s Response to Climate Change

Materiality 1

Materiality 2

Feature Article 2: KDDI Sustainable Action

Materiality 3

Materiality 4

Materiality

Materiality 5

Management Framework

Engagement

Materiality 6

Materiality 1

Safer and More Resilient Connected World• Resilience to extreme weather events • Risk management

Disaster PreparednessKDDI’s Approach (disaster preparedness)

KDDI

PolicyAs a designated public institution under the Disaster Countermeasures
Basic Act, we have formulated a business continuity plan (BCP) forlarge-scale natural disasters as an emergency response policy to ensure
the stable provision of telecommunications services at all times under any
circumstance. We are working to build an organizational structure capableof responding to different types of disasters and implementing a suite ofmeasures in partnership with various relevant organizations.

Business Continuity Planning

KDDI

Policy &SystemOur BCP for large-scale natural disasters is based on the principles of
ensuring the safety of our employees and their families, performing our
responsibility as a designated public institution to ensure the continuity oftelecommunications services and supporting our stakeholders. It
stipulates a range of measures that cover different stages, from the initial
response at the occurrence of a disaster through full-scale restoration torelief activities in the affected areas.
The effectiveness of the BCP is assessed during the twice-yearlydisaster preparedness drills, and any issues identified in the exercise are
addressed. An annual PDCA cycle is applied in the ongoing effort tostrengthen the foundation of our emergency response structure further.
▪ Disaster Response Framework
Disaster Response Headquarters
Chief of Disaster Response
Headquarters:
Company President

Secretary General:
General Manager,
General Administration department

Staff members nominated by divisions

Operational Response
OfficeInformation Systems
Response Office

On-Site Response
OfficeEstablishing a Disaster Response Headquarters in Times of DisasterNatural disasters are unpredictable and can strike any time. We havedefined the criteria for establishing a Disaster Response Headquarters inadvance to act proactively in the event of a natural disaster that meetsthese criteria.
In the event of the Disaster Response Headquarters being established,
it will be headed by the President. The headquarters will maintain close
communication and work in cooperation with local response offices tolead our efforts to restore damaged networks and facilities as quickly as
possible, support the customers in affected areas and offer aid toemergency shelters.

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KDDI Sustainability Report 2021

Action against Pandemic Influenza andOther Epidemics

KDDI

SystemBased on the Guidelines for the Prevention and Control of Pandemic Influenza approved in February 2009 at the council on countermeasures related
to pandemic / avian influenza and other epidemics, we formulated the Planfor Maintaining Company-wide Operations in the Event of an Outbreak of a
New Strain of Influenza to ensure employees’ health as well as appropriate
responses so that we can maintain the telecommunications services forour customers in the event of an outbreak of a pandemic influenza.

au Disaster Recovery Support System

KDDI

SystemTo get a quick understanding of the situation during a disaster and formulate an appropriate recovery plan, we have deployed the au Disaster Recovery Support System at 10 technical centers in Japan. The system provides centralized management of information about regional damage,
conditions at key sites and emergency shelters and evacuation routes.
This information is reflected on maps in real time to identify high-priority
areas, enabling us to provide effective recovery response even when thedamage is widespread.

Facility Systems to Maintain Communications
during a Disaster

KDDI

SystemMulti-Route Core Transmission Lines and Route Distribution
To ensure stable communications, we distribute telecommunications
equipment capacity and establish dual communication lines (terrestrial
optical fiber) as well as the system that uses automated switching tosecure communications network when there is a failure. Submarine cables
are also used to provide multiple communication lines, ensuring a highly
reliable network. In the event of trouble, bypass measures are implemented
to secure communications.
Enhancing Disaster Resilience in Communication Stations and
Telecommunications Facilities
We have augmented the deployment of power supply vehicles and emergency power generators to make possible the immediate supply of power
to telecommunications facilities in disaster areas. Furthermore, to ensurecommunications services in disaster-hit areas, we reinforced the wirelessentrance network as well as vehicle-mounted and portable base stations
and equipped around 2,200 mobile phone base stations with batteriescapable of operation for 24 hours or longer.
Temporary Base Stations
The KDDI group owns a cable laying ship equipped with a base stationthat provides mobile phone services during disaster situations when there
is no land-based base station that can provide coverage. Going forward,
we will conduct repeated demonstration tests on drone base stations withthe aim of providing mobile phone services from the sky during disastersituations.

Providing Disaster Response Services
Service nameau Disaster
Response App

Disaster Message
Board Service

Emergency EmailServiceKDDI

Activity

On September 11, 2020, KDDI and Nippon Telegraph and Telephone
Corporation (NTT) entered into a social contribution coordination agreement in order to work toward the resolution of societal issues. This agreement enables the two companies to use the other’s ships to transport
supplies during a large-scale disaster and to mutually cooperate in drills
and educational activities to prepare for a disaster. We will also be working together to explore the areas where we could leverage the companies’
assets to tackle various societal issues.
NTT and KDDI Agrees to Mutually Cooperate in the Transportation of
Supplies during a Disaster (Japanese only)

Activity

Content
Disaster Message Board Service, Emergency Email Service,
Disaster Voice Message Service, Disaster Information
au Disaster Response App (Japanese only)
A service that enables safety confirmation at times oflarge-scale disaster
Disaster Message Board Service
A service that sends disaster and evacuation information
provided by national and local governments, special weatherand eruption-related warnings, tsunami warnings andearthquake early warnings to all au mobile phones in theaffected area
Emergency Email Service (Japanese only)

A service that delivers voice messages for safety confirmation
Disaster Voiceusing the packet communication network in times of disaster
Messaging Service
Disaster Voice Messaging Service

Service Trial

Customers can try using the disaster message board service
and the disaster voice messaging service
Trial Period:• 1st day and 15th day of the month (0:00-24:00)• 1st to 3rd day of January (January 1 at 12:00-January 3 at
24:00)• Disaster Preparedness Week (August 30-September 5)• Disaster Preparedness and Volunteer Week (January 15-21)

Collaboration with Disaster-Related
Organizations during Normal Times
Mutual Cooperation in the Transportationof Supplies during a Disaster

KDDI

KDDI

Activity

We at KDDI are actively involved in emergency preparedness events
organized by national and regional governments and emergency drills
held in partnership with various coordinating organizations.
At emergency preparedness events, we focus mainly on informing theresidents about the emergency services we offer at times of disaster, suchas the disaster message board service, and on disseminating emergency
preparedness information. We also work with the Japan Self-Defense
Forces, local authorities and other relevant organizations to organize
emergency drills, where we make the most of participating organizations’
strengths to recreate highly realistic disaster situations. These internal andexternal drills test the effectiveness of our disaster response so that we
can review and improve our preparedness.
KDDI Initiatives (Disaster Relief & Support)

KDDI Sustainability Report 2021

31

Top Message

Message from Executive Officer of SustainabilityKDDI’s Material Sustainability Issues

FY2020 Material KPI ResultsKDDI’s Commitment to Sustainability

FY2021 Material KPIs

Feature Article 1: KDDI’s Response to Climate Change

Materiality 1

Materiality 2

Feature Article 2: KDDI Sustainable Action

Materiality 3

Materiality 4

Materiality 5

Materiality

Management Framework

Engagement

Materiality 6

Materiality 1

Safer and More Resilient Connected World• Resilience to extreme weather events • Risk management

Initiatives outside Japan
KDDI’s ApproachKDDI Group(Initiatives in Growth Markets outside Japan)

PolicyWe believe expanding information and communications services inemerging countries is key to solving various social issues. Further expansionof global business is one of our business strategies. We strive to offer
emerging countries with stable communication quality, utilizing our
experience, expertise, and technology of telecommunications services
that we have cultivated in and outside Japan, aiming to achieve higher
quality of life and economic growth in those countries. In addition, theKDDI Foundation also supports the building of communication infrastructure
in developing countries where we don’t operate our business.
KDDI Sustainable Action
Material Issue 3: Fulfilled Life Brought through ICTs

ICT Solutions outside Japan

KDDI Group

Policy &SystemKDDI provides a variety of one-stop solutions for customers’ operations,
including data centers, cloud computing, networks, and IoT services.
We have established more than 40 TELEHOUSE data centers in 10 or morecountries. The data centers have garnered acclaim for their service quality
and reliability in around 30 years of operational experience as well as theirhigh connectivity, which brings together world-class internet exchange (IX)
providers, telecommunications operators, and cloud-computing operators,
and more. In addition, TELEHOUSE data centers are equipped withhigh-capacity electric power and incorporate the latest energy-saving
facilities, such as highly efficient and reliable power supply equipment,
energy-efficient air conditioning, LED lighting and outdoor lighting thatuses wind and solar power. The data centers are used by manycustomers as a platform for global business.

Maintenance andOperation of Global Network

KDDI Group

Policy &SystemWe connect networks with communications providers around theworld, and, in cooperation with these companies, we maintain andoperate a global network linking different parts of the world. We not
only provide high quality international communications services using
highly reliable optical fiber submarine cables but also new platforms
such as Connected Cars.
Submarine cables provide 99%* of Japan’s international traffic, being
an important component of the social infrastructure. Moving forward, we
will offer even more reliable communications services for the Asia and Pacific regions, where demand is expected grow.
Moreover, KDDI Cable Infinity, a submarine cable-laying vessel thatstarted operation in fall 2019, promoted IT innovation for marine vessels
and offshore construction, while engaging in the SJC2 and other projects, laying cables underwater and connecting them to land lines. The
vessel, coupled with the KDDI Ocean Link that is also a cable layer
owned by the KDDI Group, works to build and maintain a highly reliableglobal infrastructure using the high-performance undersea cable technology. New international communications services are developing on trunk
networks connecting Japan and the world, and IoT is one of the major
global technologies supporting them. KDDI and Toyota Motors Corporation collaborated to build a platform for connected cars, and the Global
Network Operation Center (“GNOC”) has been operating the platform
since 2019.
In addition, through partnerships with companies such as Inmarsat
and Intelsat, the GNOC offers services using satellite communications,enabling call and data transmission to anywhere in the world, such as
ships at sea, airplanes, the South Pole and other remote areas and islands where cables do not reach, thereby insuring secured international
communications services around the clock.
* According to research by KDDI

Inmarsat Service (Japanese only)

Business Expansion in Myanmar

KDDI Group Activity

In Myanmar, KDDI and Sumitomo Corporation formed joint venture KDDI
Summit Global Myanmar (“KSGM”). In 2014, KSGM signed a joint operation agreement with Myanmar Posts & Telecommunications (“MPT”),
which is a licensed telecommunications business. Under this agreement,
KSGM is involved in telecommunications projects in Myanmar. Althoughmobile phone penetration in Myanmar was around 10% before the launchof the joint venture, a nationwide expansion of service coverage enabled
people in the country to have access to the high quality and convenient
communication services such as using the Internet and watching videos
on smartphones.
Since July 2017, we have been running a long-term training program
for the MPT workers who will one day be leaders to improve customer
satisfaction and the quality of communications services in Myanmar. As
part of the program, KDDI staff working on the business frontlines in Japan help Myanmar trainees gain technical knowledge and know-how that
KDDI has developed over many years of experience in the telecommunications business in Japan, where its high-quality network offers 24 hours
a day, 365 days a year. The training covers a wide range of subjects; everything from the design and construction of transmission systems andoptical networks to their operation, initiatives aimed at enhancing reliability,
disaster response measures, and even the development of advanced information systems.
Sales-and business-related trainees study sales, marketing strategies,
customer experience (CX), the basics of life design services, financial accounting, management accounting, and more. After returning to Myanmar, the trainees will continue to use the skills they have gained in Japan
to contribute to Myanmar’s growth.
We have accepted a total of 12 trainees from the country since 2017.
We will continue running this program going forward.
In April 2021, when the situation in Myanmar grew tense, KDDI published a statement. With the safety of all stakeholders being our priority,
we continue working to maintain the country’s social infrastructure that isessential to the life of the people in Myanmar.
About the Situation in Myanmar

Initiatives of the KDDI Foundation

KDDI Group Activity

Building an Optical Fiber Network with a Simplified Construction
in Mongolia, a Land of Extreme Cold
In the project launched by the Asia-Pacific Telecommunity (APT) in Mongolia
in 2018, we worked in the following regions where no broadband access network is in place: (1) An area for nomadic settlement promotion (2) A place of
extreme cold where temperatures go as low as negative 40 to 50 degrees
Celsius, and a desert region that experiences drastic changes in temperature(3) Terelj, Arkhangai, and Bayankhongor that focus on tourism. In these places, we built fiber optic networks using a simple method, and, in the place of
extreme cold, we conducted cold tolerance tests on exposed optical fibers.
Furthermore, at the request of Mongolia’s supervisory authorities, wedonated new optical fibers to help build a broadband network across the
expansive park in Terelj that the APT project had not covered. We arecommitted to working toward the SDGs by helping close the digital divide
in rural areas and develop rural tourism.
Improvements to Disaster Control in Vietnam
Vietnam’s climate is hot and humid. Deforestation and extreme weather increased the country’s rainfall, especially in the mountainous region acrosscentral Vietnam, making flood disasters along rivers more frequent andmore damaging. The mountainous region has only a limited number of meteorological instruments installed. Hence, in the project adopted by the
APT in 2015, we worked with Vietnam’s Ministry of Information and Communications, Posts and Telecommunications Institute of Technology within
this Ministry, and the government of Quang Nam Province to conduct ademonstration experiment and research on a low-cost early warning system for flash flood alerts that combined sensors and the M2M technology*.
Since fiscal 2020, as a new APT project, we have been working on
research and study to make improvements to disaster control. To promptly collect and analyze information about damage during and after a disaster that hits the region so that it helps plan disaster control, we use an unmanned aerial vehicle (UAV) to quickly capture images of damage done tothe area, compare the images with those before the disaster, and swiftly
identify and analyze the post-disaster state. Once the COVID-19 pandemic began, we turned to online meetings in order to move ahead with thedevelopment of the system and with field testing on the ground, using locally available pieces of equipment wherever possible.
* M2M (machine-to-machine) technology: Machines exchange information with each other via atelecommunications network, thereby autonomously providing advanced control and operation.

KDDI Foundation (Japanese only)

Business Expansion in Mongolia
MobiCom Corporation LLC (“MobiCom”), KDDI’s consolidated subsidiary,plans to adopt leading-edge technologies, including Massive MIMO* , in2021. The company is endeavoring to provide an optimal data communication environment to its customers in Mongolia by improving service
quality and introducing new technologies in an effort to improve customer
satisfaction and to grow its business.
KDDI has accepted a total of eight trainees from MobiCom since 2018as part of its resource exchange program to provide them with training on

32

KDDI Sustainability Report 2021

KDDI Group Activity
corporate sales and marketing as well as security systems. Through theexchange of personnel, we contribute to enhancing telecommunications
business in Mongolia.
Furthermore, we rolled out “monpay,” Mongolia’s first electronic money. This business has helped evolve the country’s financial services thatuse mobile phones (e.g., automatic payment for toll roads). We also offer
this technology and know-how for countries other than Mongolia.
* A technology to provide high-speed communications using more antenna elements than ever before.

KDDI Sustainability Report 2021

33

Top Message

Message from Executive Officer of SustainabilityKDDI’s Material Sustainability Issues

FY2020 Material KPI ResultsKDDI’s Commitment to Sustainability

FY2021 Material KPIs

Feature Article 1: KDDI’s Response to Climate Change

Materiality 1

Materiality 2

Feature Article 2: KDDI Sustainable Action

Materiality 3

Materiality 4

Materiality

Materiality 5

Management Framework

Engagement

Materiality 6

Materiality 2

Cyber Security and Privacy Protection• Utilization of information assets and tightening of security • Data privacy

Cyber Security and Data Privacy Protection
KDDI’s ApproachKDDI Group

Social Issue
Recent years have seen leaks of important confidential informationworldwide due to cyberattacks employing software viruses, a situationthat has become a major social issue. We consider the personal andbusiness information that the KDDI Group retains for its customers andbusiness partners to be extremely important assets that need to be
managed with strict confidentiality.

PolicyOur Risks and Opportunities
C ustomer data leaks from inside the company or unauthorizedaccess from outside could seriously damage the brand image of theKDDI Group. In addition to a possible loss of customer trust, we
could also be forced to pay substantial compensation, which could
have a negative impact on our financial position and businessperformance.
 e may face higher costs to enhance the confidentiality of commuW
nications and privacy protection systems in the future.
 here are new market opportunities where demand is growing, suchTas safe apps and global cyber security services.

Management FrameworkAs a telecommunications operator, we are committed to protecting
the confidentiality of communications. In order to protect customer
data, we have set up the Information Security Committee and areworking on the development and implementation of company-widemeasures to prevent data leaks from within the company as well as
unauthorized access from outside.
 lso, with the implementation of the KDDI Code of Business ConA
duct, KDDI Security Policy, and KDDI Privacy Policy, and the establishment of the KDDI Group Business Ethics Committee, the KDDI
Group is working to further strengthen its information security governance.

 e also have strengthened the technical, organizational and humanW
aspects of our suite of security management measures. These
include tighter control and monitoring of access authorization for ourcustomer data systems, safekeeping of access logs and a ban on
taking company data outside company premises or saving it toexternal memory. In order to promote awareness, we provide ongoingtraining on the confidentiality of communications and protection ofcustomer data for all our employees. We are also working with our
external partners, particularly with our retail network of au Shops, tostrengthen our value chain management through the improvementof shop operations, monitoring and training.
In order to ensure the security of customer data, au Smart Pass apps
and all other customer apps provided by KDDI are examined to verify
that their behaviors are in line with KDDI Group Smartphone Apps &Privacy Policy Management Guidelines established in April 2019. Asa member of the industry body the Japan Smartphone Security Association (JSSEC), KDDI is taking part in data security initiatives.

FY2021 Material KPIs

KDDI GroupKDDI’s Approach (Cyber Security and Data Privacy Protection)
With the increasing prevalence of smartphones and the rapid progress oftechnologies such as big data and AI in recent years, new services thatmake use of various kinds of personal information are being considered.
At the same time, however, these changes have also highlighted many
issues surrounding privacy, and governments are reviewing their laws andregulations.
To ensure that it uses personal data while protecting privacy, KDDIhas published its privacy policy and its handling of personal information,
including types of information to collect, purpose of use and the requirement of a customer’s consent, and thus completely protects such personal information. In addition, in January 2020 we set up “Privacy Portal” toprovide clear explanation about KDDI’s use of customers’ information,
ensuring the transparency while deepening customers’ understanding.
We also need to protect our communication infrastructure from what

KDDI Group

Policyis called cyberterrorism that causes a failure in the system through unauthorized use of communication infrastructure. KDDI has proper defenses
in place against such external attack, including 24/7 monitoring by specialists to detect any external attacks, as part of our efforts to earn trustfrom customers and stakeholders as a telecommunications business thatprovides an essential utility.
Moreover, we have established an internal body dedicated to this purpose, have a third party assess our handling of the information, have adopted a privacy impact assessment (PIA) conducted before a service is introduced, and take other actions in order to further ensure that we
properly handle customer information.
Privacy Policy
Privacy Portal (Japanese only)

Information Security Management Framework

KDDI Group System

To ensure a unified approach to the security of information assets acrossthe group as a whole, we have established the Information Security Committee chaired by the Managing Executive Officer, Director, Executive Director, Technology Sector. The committee comprises the managementlevel, along with the general managers of sales, technology and corporate
divisions.
Under this framework, we accurately grasp the status of information
security management and promptly implement measures to enhance theinformation security throughout the group.

KDDI also acknowledges that proper information management is a
key issue for our business. To ensure information security, we have established the Security Policy that specifies our basic policies on information
security, covering information security management framework, the implementation of information security measures, and internal rules about information security, among others.
Security Policy
Security Portal (Japanese only)▪ Information Security Management Framework
Management
Level

Information Security Committee (Management Level)
Committee Chair: Managing Executive Officer, Director, Executive Director, Technology Sector
Secretariat: Internal Control Department, Information Security Planning Department, Data Governance Office
Role of Information Security Committee(1) Determine and implement group-wide measures to prevent internal information leakage(2) Determine and implement group-wide measures to defend against attacks
and invasion from external networks(3) Establish and manage regulations relating to information security including
the Security Policy

PolicyFY2021 Material KPIs

Information Security Promotion Meetings
Chair: General Manager of the Information Security Planning Department

Moving Forward

KDDI Group

PolicyKDDI

Make the best use of data assets
Further improve security
Protect data privacy

Division /Regional Office
Level

Initiatives
KDDI Sustainable Action P.16-19
Cyber Security and Data Privacy Protection

KDDI Group

Group companies
Persons responsible for
information security(General Managers,
Senior General Manager)
Persons supervisinginformation security(Department Managers)

PolicyDepartment
Level

Information security
managers

KDDI Sustainability Report 2021

Persons in charge of
information security
promotion

Group companies in Japan

Group companies overseas

P.35-39
Persons in charge of
information security

34

Investment Management Division(KDDI)

Persons in charge of
information security
KDDI Sustainability Report 2021

35

Top Message

Message from Executive Officer of SustainabilityKDDI’s Material Sustainability Issues

KDDI’s Commitment to Sustainability

FY2020 Material KPI Results

FY2021 Material KPIs

Feature Article 1: KDDI’s Response to Climate Change

Materiality 1

Materiality 2

Feature Article 2: KDDI Sustainable Action

Materiality 3

Materiality 4

Materiality

Materiality 5

Management Framework

Engagement

Materiality 6

Materiality 2

Cyber Security and Privacy Protection• Utilization of information assets and tightening of security • Data privacy
Cyber Security and Data Privacy Protection
Strengthening Information Security
throughout the Company

KDDI Group

Policy &SystemAll KDDI Group companies have been ISMS 27001* 1 certified since2009. For our group companies, the KDDI Group Information Security
Standards were introduced in fiscal 2011. In fiscal 2017, we revised thestandards and extended them to apply to all group companies. Augmenting
the improvement in the security level of KDDI Group companies resulting
from this change, we regularly audit the security level of group companies
in an ongoing effort to strengthen the information security governanceof the KDDI Group as a whole. Also, KDDI Digital Security Inc. wasfounded in February 2018, and the company’s specially trained security
engineers now respond to cyberattacks.
*1 ISMS certification (ISO/IEC 27001: 2013) A third-party conformity assessment scheme for information security. It was established with the goal of contributing to widespread improvements
in information security and encouraging companies to target levels of information security thatcan be trusted around the world.

▪ ISMS Certification KDDI Acquired
Registration
number
IS 95253

Organization
KDDI Corporation*2

Initial registration
June 7, 2005

*2 Includes corporate, technology and sales and customer support divisions, as well as KDDI
Kyosaikai (now KDDI Group Welfare Association), KDDI Health Insurance Union, KDDI Pension
Fund, KDDI MATOMETE OFFICE CORPORATION, and Japan Telecommunication Engineering
Service Co., Ltd.

Basic Principles concerning the Handlingand Use of Personal Data

KDDI Group

Efforts to Reduce Information
Security Risks

System &Activity

Our efforts to minimize information security risks include preventing customer information leaks and defending against cyberterrorism. The Information Security Committee leads the management of all company information assets and formulates measures that officers and employees canimplement together. The committee is part of our corporate governanceframework, which manages risks for the whole group.
In order to eradicate information security accidents, we took measures to strengthen information security in a way to encourage each department to autonomously raise the information security awareness, aiming to raise the awareness among directors, officers and employees.
Furthermore, we have implemented common security standards forthe entire group and apply them to all group companies to manage all our
information assets and strengthen the various measures that are in place
to control specific information assets. To minimize security risks, persons
in charge of information security promotion from KDDI and group companies hold regular meetings to share information and discuss security measures.
▪ FY2020 List of Initiatives and Activities for Reducing Information
Security Risks

PolicyWe have implemented internal rules for the handling of customers’ personal data and use of big data in line with the Act on the Protection of
Personal Information and other related laws and regulations. We obtain,
manage and use such data in accordance with our terms of use for eachservice and privacy policy.
Data about our subscribers are vital for us. We use the data to help
improve customer experience and achieve continuous development of society. We ensure responsible use of data through corporate actions in order to gain customers’ understanding. These actions include providing adetailed explanation as to how the data will be used, and processing thedata in such a way that the individual will not be identified.
To comply with the amended Act on the Protection of Personal Information that comes into effect in April 2022, we are taking inventory of personal data that have been internationally transferred, and taking actions tomeet new regulations related to personal data.
We also work to ensure that we comply with international personal
data protection laws, including the General Data Protection Regulation(GDPR).

KDDI Group

Total Information
Security• E-learning training• Training for new department general managers• Walk-around security check• Enhancement of raising information security awareness• Enhancement of checking authorization to access customer
information• Internal security audits• Technical audits of subcontractors’ OA environments andsystems in addition to general audit items• Confirmation of compliance with information security rules
for the whole group• Information Security Promotion Meetings for the wholegroup• C ontinuing supervision of OA environment in the wholegroup

Prevention of
information leakage throughsocial media• Complying with Social Media Policy• Raising awareness among employees

Stronger control
measure for using
cloud computing• Complying with the company regulations relating to the useof cloud computing for the whole group• M aintaining and improving risk assessment framework
relating to security and legislation systems

Response to laws
and regulations• A ctions to ensure compliance with the current andamended Act on the Protection of Personal Information inJapan• Actions to ensure compliance with international personal
data protection laws, including the GDPR and the CCPA

Prevention ofe-mail mistakes• Prohibiting automatic forwarding• Automatic encryption of attached files in external e-mails

Measures against
targeted attacks• A nnual training against targeted e-mail attacks for
employees• E-learning training

Information Security Management and Measures

Policy &System &ActivityKDDI Group

Security Review and Vulnerability ScanningKDDI has a cyber security policy prescribing the standards for cyber security measures that our business information system should take, and conducts reviews to see if the policy is followed.
The security policy specifies the details and interpretations of security
requirements for the information systems that the KDDI Group plans, develops, and operates. These requirements include locations of physicalpieces of hardware, connection to external networks, software versions,
methods of authentication and access control, and how to acquire andsave logs. By rigorously conducting the security review of an information
system in the phase of transition from planning to development, we accomplish “security by design” that considers cyber security from the planning and design phase.
In the phase of system operation, we conduct network vulnerability
scanning to identify problems in the servers and networks.
Network vulnerability scanning uses a dedicated diagnostic device, inwhich data on vulnerabilities of various software are saved as a signature
database, to identify security issues in the scanned servers and network
devices.
The issues that have been found were classified into risk-based levels
so that corrective actions are taken, such as applying patches and changing settings.
By taking these actions to ensure information system security in thestages of planning, development, and operation, we offer safe and secureservices.

Security Monitoring
KDDI does integrated monitoring of its cyber security across Japan, basedin the regional centers. If any large-scale failure occurs, the supervisory offices take holistic control to give directives to relevant internal and external
entities for recovery and provide information. To protect our telecommunications facilities from the threat of cyber attacks such as intrusion, falsification, and distributed denial-of-service (DDoS) attacks, our specially-trained
security engineers do monitoring 24/7. They monitor and analyze an enormous log from a security monitoring device for any signs of attacks. Moreover, they detect any perilous incident (e.g., unauthorized access; falsification) as soon as it occurs, and promptly inform the CSIRT and relevantinternal departments about it as necessary to direct them to take action.
▪ Integrated Monitoring System Pivoting on the Regional Centers

Operation andmaintenance pivoting
on the regional centers

Concerted actions with ouroffices for holistic control at
the time of a large-scale
failure▪ Process of the Security Review and Vulnerability Scanning
System development review

Planning

Network vulnerability scanning

Development

Operation
Audit

Review and diagnosis based on the security policy

Initiatives by the CSIRTKDDI has the KDDI Computer Security Incident Response Team (KDDICSIRT) as a body dedicated to handling cyber security incidents. The
KDDI-CSIRT works with KDDI Digital Security Inc. and KDDI Digital Design
Inc., which are KDDI’s Group companies, to handle incidents, assist withthe handling of incidents, receive information about security incidents, andexplore recurrence prevention measures, among others. Being a memberof the Forum of Incident Response and Security Teams (FIRST) and the
Nippon CSIRT Association, the KDDI-CSIRT cooperates with CSIRTs in
Japan and overseas to share information about trends and approaches.
Given that cyber attacks have become increasingly sophisticated, we
continually take measures against new threats by collecting more information about vulnerabilities and attacks, analyzing information more thoroughly, and automating and advancing courses of action to handle cyberattacks.
▪ Process of Cooperation with External Organizations
Relevant
externalorganizations
etc.

JPCERT /CC

FIRST

Nippon CSIRT
Association(NCA)

Each company’s CSIRT

Share information and know-how;communicate information

Social Media Policy (Japanese only)KDDI-CSIRTKDDI

Communicate/Share

Relevant internal departments

36KDDI Sustainability Report 2021

KDDI Sustainability Report 2021

37

Top Message

Message from Executive Officer of SustainabilityKDDI’s Material Sustainability Issues

FY2020 Material KPI ResultsKDDI’s Commitment to Sustainability

FY2021 Material KPIs

Feature Article 1: KDDI’s Response to Climate Change

Materiality 1

Materiality 2

Feature Article 2: KDDI Sustainable Action

Materiality 3

Materiality 4

Materiality

Materiality 5

Management Framework

Engagement

Materiality 6

Materiality 2

Cyber Security and Privacy Protection• Utilization of information assets and tightening of security • Data privacy
Cyber Security and Data Privacy Protection
AI R&D and Utilization Principles
for KDDI GroupKDDI Group

PolicyIn order to further enhance the value of the customer experience and contribute to the sustainable development of society through the use of artificial intelligence (AI), KDDI, in cooperation with the KDDI Research, Inc.,
formulated the “AI R&D and Utilization Principles for KDDI Group” on August 30, 2021, as part of “KDDI Accelerate 5.0.” Based on these principles, the KDDI Group will promote the research, development, and utilization of AI so that customers can use our services safely.
Formulation of the “AI R&D and Utilization Principles for KDDI Group”(Japanese only)
AI R&D and Utilization Principles for KDDI Group

Human Resource Development

KDDI Group

System &ActivityKDDI defines role models for professional human resources to help
shape clear career paths.
We encourage our employees to acquire a wide range of knowledge and plumb the depths of expertise by accepting assignment toan external organization or obtaining a technical certificate.

Promotion of R&D Related to Information Security
World Record in a Decoding Contest
KDDI promotes research and development to attain a faster decoding algorithm and create faster and safer next-generation public-key cryptography
in order to help create a telecommunications system that is safe to use.
Public-key cryptography is a generic technology that supports safe
and secure telecommunications systems including the internet. It is used
for day-to-day technologies such as online shopping and IC cards. In recent years, however, the emergence of practical quantum computing has
enabled fast decoding. This means that public-key cryptography immune
from decoding by quantum computers will also be needed. When using
symbols and codes as next-generation public-key cryptography, it is vitalto identify the limit of a decodable dimension in order to determine the sizeof a safe dimension.
In January 2021, at a decoding contest called “Challenges for codebased Problems,” KDDI became the first in the world to decode the problem of the 1161-dimension Syndrome Decoding in the Goppa-McEliece
Setting.
We also improved the decoding algorithm and did optimization suitable for a parallel multithreaded environment, making a decoding process
250 times faster.

KDDI Group▪ Overview of the Decoding Algorithm
Parallelization Using 8 Virtual PCs
Parallelization by multithreading(17,000,000 threads per virtual PC)

System &Activity

Number of Serious Information Security
KDDI Group
Incidents

ActivityKDDI works to strengthen its information security across the Group, making efforts to reduce information security risks. In fiscal 2020, we had zero
serious information security incidents.
▪ Number of Serious Information Security Incidents

Unit: case

FY2018FY2019FY2020

Suspension of telecommunications
services due to cyber attacks fromoutside0

0

0

Leakage of personal data due tocyber attacks from outside

0

0

0

Divulgation of personal data

0

0

0

▪ Role Models for Specialized Human Resources
LV3

Professional
Engineer

Strategist

LV2

senior analyst, senior engineer,architect, designer, manager

LV1

analyst, engineer

Professional inManagement

Knowledge related to networks, information systems,
cloud computing infrastructure, devices, and applications(1) Randomly rearrange simultaneous equations.
(2) Extract small equations to use for decoding. Search efficiently for potential solutions through parallel processing.
Search with
00000000
as default

Search with
00000001
as default

Search with
00000010
as default

Search with
00000011
as default

Search with
00000100
as default

Search with
00000101
as default

Search with
00000110
as default

Search with
00000111
as default

Search with
00001001
as default…
(3) Check if the potential solutions satisfy theoriginal equations.
(4) If they do, output them as solutions. If not,go back to (1) to repeat the steps.

38

KDDI Sustainability Report 2021

KDDI Sustainability Report 2021

39

Top Message

Message from Executive Officer of SustainabilityKDDI’s Material Sustainability Issues

KDDI’s Commitment to Sustainability

FY2020 Material KPI Results

FY2021 Material KPIs

Feature Article 1: KDDI’s Response to Climate Change

Materiality 1

Materiality 2

Feature Article 2: KDDI Sustainable Action

Materiality 3

Materiality 4

Materiality

Materiality 5

Management Framework

Engagement

Materiality 6

Materiality 3

Fulfilled Life Brought through ICTs
• Contribution to economic growth through robust information communications infrastructure • Improvement of access to education, medicine and other public services through ICTs • Promotion of employment creation and capacity building • Innovation management

Regional Revitalization Initiatives
KDDI’s ApproachKDDI Group

Social Issue
In recent years, Japanese society is facing the decline in productivity
and shrinking regional economies due to the shrinking working-age
population because of the aging population with fewer children and theaccelerating rural depopulation because of the concentration of population in large cities. Under such circumstances, ICTs are expected to
be an effective tool to revitalize regional economies by alleviating labor
shortage and increasing high quality employment in regional areas.
While the wider use of ICTs improves convenience, there are concerns associated with it, such as the prevalence of mobile and smartphone use among children and the widening digital divide affecting
older people.

PolicyOur Risks and Opportunities
The decreasing working population and growing economic disparity
between regions are risks that could lead to a decline in the numberof users and a decrease in business income.
ICT-based solutions are expected to help alleviate shortages in thelabor pool and business successors through more efficient operations, automation, and remote operation. They are also expected tohelp rural areas take advantage of the opportunities to expand business activities that showcase local industries, cultural and natural
heritage, and communities, and revitalize their economies.
 n the other hand, offering smartphone devices and services thatO
help socially vulnerable people use the technology safely and easily,
combined with awareness campaigns, can be beneficial to KDDI’sbusiness as it can generate new demand.

Management Framework
Technology Demonstrations and R&D

Life Design

The technology and other divisions at KDDI Head Office lead our technology demonstrations, and we are working on innovative technologies
that will support our business in the near future, such as next-generation
networks, self-driving vehicles, and automated operation. On the other
hand, in research and development, KDDI Research, Inc. is engaged ina wide range of fields, from research analysis for future prediction toadvanced research and applied research.

In our consumer business, we enhance life design services, includingcommerce, finance, energy, entertainment and education centered on
telecommunications, and provide exciting experiential value to customers.
We aim to achieve sustainable growth with customers in the corporate business by supporting their digital transformation and realizing
the integration of telecommunications and life design for corporate clients in Japan and overseas.

Approach to Regional Revitalization
Using 5G / IoTKDDI GroupKDDI Regional Initiatives Fund andRegional Revitalization

PolicyRegional Human Resources Development Using 5G
KDDI utilizes various advanced technologies and network with our partnercompanies to support unique initiatives with our many stakeholders, including local governments, companies, NPOs and residents.
To realize sustainable regional revitalization, it is important to develop
businesses and human resources that locally support ICTs. We are working together with local educational organizations and other stakeholders tocreate an environment where people can learn know-how on the mostadvanced ICTs and corporate management by utilizing 5G network without leaving the area they live.

KDDI Group

Policy &Activity

The KDDI Regional Initiatives Fund (KRIF) is corporate venture capital(CVC) established by KDDI and Global Brain Corporation (fund operator)
for investing in venture companies and local business that promote regional revitalization.
Venture firms and local companies that are strongly motivated to solve
regional issues will play key roles in finding solutions to the various problems faced by local communities. Through the provision of various resources, technologies and know-how and a first round of support forthese companies from KRIF, KDDI will continue working to build a sustainable business model, both for the regions and for the companies.
KDDI Regional Initiatives Fund (Japanese only)KDDI’s Regional Revitalization Project “Te to Te”
In 2019, KDDI launched its regional revitalization project “Te to Te.”By helping realize a community’s passion, hope, and business idea to drive
regional revitalization, KDDI will endeavor towork together to create “Community’s Future.”KDDI will support the community’schallenges by moving forward hand-in-handwith the community. That is our will, that is“Te to Te.”A sustainable business model for both the regions and the companies

Using ICTs to solve regional problems
Local businesses / venture companies
Human Resource
Development

Local education
organizations

Regional Revitalization “Te to Te”(Japanese only)

Development andprovision of humanresources

Business know-how for theera of digital transformation
Latest ICT solutions

Provision of funding

Regional Revitalization

KDDI’s initiatives to use 5G and ICTs to solve regional problems aremainly driven by its Business Strategy Division’s Regional Revitalization
Promotion Department, and Business IoT Promotion Division’s Regional Revitalization and Support Office. We dispatched volunteers to municipalities affected by the Great East Japan Earthquake and are using
the insight and know-how gained by members who supported the area’s recovery.

Product and Services

We promote the application of universal design to the products andservices we develop in order to ensure that they can be used comfortably and enjoyably by anyone, regardless of age, nationality, and (dis)ability.
Initiatives outside Japan

In addition to the initiatives of KDDI’s subsidiaries and affiliates, theKDDI Foundation conducts its own activities.

Initiatives in Regions of Japan Using ICTs
Okinawa Prefecture
Multilingual translation taxi
IoT mango cultivation
5G stadium testing
Drone logistics for remote islands
Bird and animal pest control
Tourism trends
Tourism VR

KDDI Group

Hida City

Muroran City

Smart agriculture

ICT tourism

Gero City

Yokote City

Snowplow IoT / Regional development

Apple IoT

Hamamatsu City
Toyota City

Outlying islands

FY2021 Material KPIs

KDDI Group

PolicyToyamaPrefecture

Kuwana City

Manufacturing IoT

Smart agriculture

Toyooka City

FY2021 Material KPIs

Smart agriculture

Tottori City

4K 360-degree remote shopping experience

Higashi Matsushima City
City-run Wi-Fi development

Kunimi-machi

Smart fishing

Animal pest control

Hinoemata-muraAnimal pest control

Fukuyama City

KDDI Group

PolicyInitiatives

KDDI Group

Policy5G drones, VR experience

KDDI Sustainable Action P.16-19
Regional Revitalization Initiatives P.41
Innovation Management P.42-44
Responsibility for Products and Services
Initiatives outside Japan P.47

Hirado City
Job experience for kids

Cashless translation

Shimonoseki City

Goto City

Nagashima-cho
Promotion of migration / high resolution VR

P.45-47

Nagano City

Tourism trends

Smart fishing

Miyazaki City

Kaiyo-cho

Offshore currents detection

Smart oyster farming

Satsumasendai City

Ina City

Koganei City

Drone logistics

5G education

Iida City

Otari-mura
IoT support for daily life / Tablet education

Bridging the digital divide

Ibaraki City

Hakuba-mura
5G snowplow / Bus operation app

Atsugi City
Flood surveillance

AI, XR, automated driving

Hidaka-muraTourism trends and local goods sales channels expansion
Kimotsuki-cho
Smart agriculture / crop-spraying drone
MaaS for tourism

KDDI Sustainability Report 2021

Sake brewing
Use of drones, 5G and 4K video

Animal pest control

Nanyo Region (Southern part of Ehime Prefecture)

40

Aizuwakamatsu City

Nikko City
Setouchi Region

Workation/Training local marketers

Contribute to economic development through ICTs
Revitalize local economies(Create employment and enhance capacity building)Innovation management
Promote information literacy education

Smart fishing / smart agriculture

Sendai City

ICTs solution to problems unique to mountain village

Moving Forward

5G remote learning

Minamisanriku-cho

Chizu-machi

Multilingual translation taxi

Takizawa City

Information distribution platform

Obama City

Tourism trends, agriculture IoT and Using 5G

Obihiro City

Kamaishi City

Smart scale

Maizuru City

Local goods sales
channel expansion
and marketing support

Basic tourism planning

Smart drones

IoT child monitoring

Centrair Airport
VR ninja experience for tourists

Kamishihoro-cho

Nagaoka City

Smart abalone farming

Policy &Activity

Gotemba City

Remote operations ofVisualization of climbers descending Mt. Fuji
construction equipment VR / translation / drone(as of June 2021)

Shimanami Kaido
5G Drone

KDDI Sustainability Report 2021

41

Top Message

Message from Executive Officer of SustainabilityKDDI’s Material Sustainability Issues

FY2020 Material KPI ResultsKDDI’s Commitment to Sustainability

FY2021 Material KPIs

Feature Article 1: KDDI’s Response to Climate Change

Materiality 1

Materiality 2

Feature Article 2: KDDI Sustainable Action

Materiality 3

Materiality 4

Materiality

Materiality 5

Management Framework

Engagement

Materiality 6

Materiality 3

Fulfilled Life Brought through ICTs
• Contribution to economic growth through robust information communications infrastructure • Improvement of access to education, medicine and other public services through ICTs • Promotion of employment creation and capacity building • Innovation management

Innovation Management
Approach to Innovation

KDDI Group

PolicyWe at KDDI aim to continue to provide new customer experience in all aspects of life, always focusing on our customers. As well as exploring thelatest technologies through R&D and technology demonstrations, we proactively promote open innovation through collaboration with external partners and industry-academia-government collaboration, leading to the development of products and services beyond our customers’ imagination.

Promotion for R&D andTechnology Demonstrations

KDDI Group System

We have organized a framework to promote both technological demonstrations for grasping technology trends in a timely manner and utilizing
the latest technologies for our business, and research and development
aimed at creating state-of-the-art technologies over the long term.
Our technology divisions at KDDI Head Office lead our technologicaldemonstrations, and we are working on technological demonstrations thatwill support our business in the near future, such as next-generation networks, self-driving vehicles and automatic operation.
On the other hand, in R&D, KDDI Research, Inc. is engaged in a wide
range of fields, from research analysis for future prediction to advanced
research and applied research. KDDI Research, Inc. is engaged in research and development in a wide range of fields, such as network, IoT,
AI x big data, security and service applications, and 303 researchers areengaged in R&D (as of April 1, 2021).
▪ Change in R&D Expenses(Millions of yen)

25,00020,00023,72824,007

24,131

20,132

15,00010,000

5,000

0

2017

2018

2019

2020

(Fiscal year)

Promoting Open Innovation
KDDI Digital Gate
In September 2018, we launched KDDI Digital Gate, our business development hub for the IoT and 5G era in Toranomon, Tokyo to create new
business solutions with our corporate customers. In September 2019, we
expanded KDDI Digital Gate to Osaka and Okinawa, which have alreadybeen used by over 450 companies in total.
KDDI Digital Gate provides a KDDI development team and a project
room where prototypes can be developed rapidly with agile development
methodology; co-creation workshops are held to identify potential issues
and come up with innovative ideas through design-oriented thinking; andhands-on demonstrations and testing using various telecommunications
technology, including 5G and IoT, are conducted. KDDI will work with aprofessional group made up of highly specialized partners, aiming tospeed up the process of identifying needs, creating, learning and improving, helping customers to provide services with high market value to society as quickly as possible.
KDDI DIGITAL GATE (Japanese only)KDDI Regional Initiatives Fund and Regional Revitalization
KDDI Regional Initiatives Fund and Regional Revitalization

KDDI Open Innovation FundKDDI Open Innovation Fund is a corporate venture capital operated byKDDI and Global Brain Corporation that invests in promising start-ups
across the world. We strongly support the growth of our investee companies, using our broad networks with different companies and marketingskills, as well as linking with our services.
In April 2018, we launched KDDI Innovation Fund No. 3.
We established an investment program to strengthen initiatives infields of increasing importance for the 5G era, including AI, IoT and big
data. Drawing on KDDI’s and KDDI Group companies’ technological andbusiness insights and networks of venture companies, we support promising new venture companies. KDDI Open Innovation Fund No.3, which isactive as of May 2021, has invested approximately 20 billion yen in total.
The fund program will also make it possible not just for KDDI but also for
its group companies to proactively undertake joint development efforts
with venture companies.
We have specialist personnel based in San Francisco, the UnitedStates, and Singapore, where we are looking to invest in start-ups withthe latest technologies or innovative business models. We offer wide-ranging support for business development, marketing and localization for ourinvestee companies when they plan to expand their business in Japan.

KDDI Group System
KDDI ∞ Labo
In 2011, we launched KDDI∞Labo, a platform that enables start-ups promoting new services to collaborate with partner alliance members thathave a wealth of assets and know-how in various industries with the aimof co-creating new businesses that impact society in the era of 5G. This
program offers total support to selected teams, including business cooperation, creation of testing opportunities, and discussions about businessco-creation with the partner alliance, which comprises over 40 various
major companies that support the mission of KDDI∞Labo. The platform
also offers a variety of other support, including business matching opportunities through pitching events, 5G testing environments, and the provision of KDDI Digital Gate assets.
KDDI∞LaboKDDI research atelier: Research Center to Propose New Lifestyles
In December 2020, KDDI and KDDI Research, inc. opened KDDI researchatelier in Toranomon, Tokyo, as a survey and applied research center topropose new lifestyles toward 2030.
KDDI research atelier aims to solve medium- to long-term issues facing consumers and society and to enable lifestyles optimized for individual
consumers. To achieve these goals, the atelier will partner with companies
and research institutes in Japan and overseas, leveraging the KDDI
Group’s assets that include KDDI Digital Gate and KDDI ∞ Labo, basedon the concept of next-generation society “KDDI Accelerate 5.0” toward2030 that is designed to accelerate the creation of “Society 5.0” with 5G.
We will also promote applied research on the seven technologies that
KDDI Accelerate 5.0 demonstrates in order to accelerate our efforts toreach the goals.
KDDI research atelier (Japanese only)KDDI Accelerate 5.0 (Japanese only)

Activities for Innovation
Product Innovation
Initiative

KDDI Sustainability Report 2021

Content

AI for facial
expression
recognition ofa masked face

In February 2021, we successfully developed “AI for Facial Expression Recognition by Facial Area” designed to analyze an expression
on a masked face to identify it as positive, neutral, or negative, withat least 90-percent accuracy. Even when 70 percent of a face iscovered, the AI analyzes all elements of the exposed and covered
areas of the face separately to objectively judge and recognize
each facial expression. We hope to create a new service that accurately analyzes people’s faces for expressions in such places as offices, educational institutions, public facilities, and event venues
where people enter with a mask on.

Use of AR at
assisted living
facilities

In February 2021, we developed the Hands-free Nursing Care Support System to offer finely-tuned nursing care at assisted living facilities. It is designed to show each resident’s nursing care-related
data on a pair of AR glasses, and we conducted demonstration
experiments. The Nursing Care Support System combines thefacial recognition technology developed by KDDI Research, inc.
with the smart nursing care platform developed by assisted living
facilities. The demonstration experiments enabled employees of the
facilities to take appropriate actions for new residents (e.g., talking
to them) whose detailed information has not been fully known tothem.

Process Innovation
Initiative

Content

Providing agile
development
education program

In addition to using agile development methods on our own, in cooperation with Scrum Inc. and Eiwa System Management, Inc., weestablished the joint venture Scrum Inc. Japan in March 2019 tobring about innovation. The company holds agile development
seminars, and is providing wide-ranging support to Scrum teams
from the launch of their agile development teams to the establishment of an agile organization management method. We will continue providing agile development know-hows to support transformation of businesses through digitalization.

Environment Innovation
Environmental performance: carbon neutral

Social Innovation
Initiative

Content

Participation in thedemonstration ofself-driving buses

In October 2020, KDDI participated in a demonstration experimentwith a self-driving bus for Hitachi Bus Rapid Transit (BRT). The project was outsourced to the National Institute of Advanced Industrial
Science and Technology by the Ministries of Economy, Trade andIndustry and of Land, Infrastructure, Transport and Tourism. Ourrole in the experiment was to work with partner companies to test
the roadside sensor and remote monitoring device that communicate with the self-driving vehicle. In this experiment, a self-driving
bus schedule was added to the regular bus schedule so that the
self-driving bus would be a regular means of transportation for as
many passengers as possible. The test aimed to identify issues toaddress so that the automated vehicle would be in full operation in
2022 or thereafter.

Robotics
technologies
for efficient fishing

In November 2020, to enhance the efficiency of fishing by professional fishers with robotics technologies, KDDI and Osaka Prefecture University jointly developed Japan’s first aquatic drone
equipped with hydrogen fuel cells that can be remotely controlled
by a smartphone connected to a mobile line and can be used forlong hours, with help from Nippon Kaiko. We have also started
demonstration experiments with these technologies at Nanao Bay
in Ishikawa Prefecture in preparation to put them to practical use.
We plan to keep improving the performance of the aquatic drone
and continue offshore experiments across Japan to put the technologies to practical use, with a view to applying them to new purposes, such as transporting supplies to isolated islands in thedrone and other anti-disaster measures.

KDDI Open Innovation Fund

42

KDDI Group Activity

KDDI Sustainability Report 2021

43

Top Message

Message from Executive Officer of SustainabilityKDDI’s Material Sustainability Issues

FY2020 Material KPI ResultsKDDI’s Commitment to Sustainability

FY2021 Material KPIs

Feature Article 1: KDDI’s Response to Climate Change

Materiality 1

Materiality 2

Feature Article 2: KDDI Sustainable Action

Materiality 3

Materiality 4

Materiality

Materiality 5

Management Framework

Engagement

Materiality 6

Materiality 3

Fulfilled Life Brought through ICTs
• Contribution to economic growth through robust information communications infrastructure • Improvement of access to education, medicine and other public services through ICTs • Promotion of employment creation and capacity building • Innovation management

Responsibility for Products and Services

Innovation Management

Protecting Intellectual Property

KDDI

Activity &ResultsKDDI’s Technology Strategy & Planning Department/TechnicalDevelopment & Strategy Department/Data Management Department
and KDDI Research, inc.
Date received: September 18, 2020
Award giving organization: The ITU Association of Japan

Product Quality Control

KDDI

PolicyAward name: ITU-AJ Accomplishment Awards
Awarded research: Contribution to the development of 5G standard as a driver of 3GPP,
oneM2M, and other activities
Award recipient (belonging organization at the time of receiving the award):
Planning Division of KDDI; The Association of Radio Industries andBusinesses)
Date received: September 4, 2020
Award giving organization: Telecommunication Technology CommitteeAward name: FY2020 Information and Communication Technology Award, TTC
Chairman’s PrizeAwarded research: Achievement in the promotion of standardization related to IP interconnection
Award recipient (belonging organization at the time of receiving the award):
Manabu Minoda (Core Network Department of KDDI)
Date received: May 28, 2020

▪ Product Quality Control Process• Quality management• Deal with repair orders

Kazuo Nakamura (Radio Wave Department, Technology Strategy &We implement total quality control from product design to after-sales service to ensure that customers can use our products in a safe and securemanner. With the purpose of realizing the products with safe and secure
quality, in cooperation with outsourcing manufacturers, we at KDDI carefully confirm the safety, durability, and quality of our hardware and software products in each manufacturing process from design to market release based on strict standards.
In case any defects or quality issues arising after products are released, we receive inquiries via our website, phone and au retailers including au Shops to immediately identify the causes and improve both hardware and software.
If any especially serious defects are found, the market response
screening committee chaired by the President is established to confirm
the details and causes, decide countermeasures, and promptly respondto customers.

After-sales services

KDDI Sustainability Report 2021

Policydisabilities and low income earners —have equal access to the benefits ofa variety of products and services.
As well as increasing accessibility, we strive to offer services that anyone can use with peace of mind. We are committed to offering products
and services based on the principle of universal design, so that they canbe used with confidence by everyone.

Sales

44

phonesAward recipient (belonging organization at the time of receiving the award):

In our efforts to “improve customer experience,” we at KDDI believe it isimportant to offer products and services so that all customers can experience the joy of communication.
We offer products and services from a customer perspective, aiming
to create a society in which ICTs is accessible to all, where even more
people the world over — adults, children, older people and people with• Final verification of safety and performance

Business modeland application
26%

detailed analysis of demographics using location data from smart-

Introduction judgment

Telecommunications
43%

Awarded research: Research, development and commercialization of techniques used in• Verify marks required by applicable regulations• Confirm that no harmful substances are used• Confirm that there are no abnormal heating
events• Verify safety of battery packs• Verify software operations• Verify hardware performance

Speech recognition,
image andaudio processing,security
21%

Award name: 65th Maejima Hisoka Award in FY2019

Quality check

Others10%KDDI Group• Verify products based on durability standards• Verify products based on safety standards▪ Breakdown of Our Patents (As of the end of March 2021)

KDDI’s Approach (Responsibility for Products and Services)Award giving organization: Tsushinbunka Association

Product design

One of our basic principles specified in the KDDI Code of Business Conduct defines our commitment to creating, protecting and using intellectual
property, which is an important management resource for the company’sbusiness expansion, as well as respecting the intellectual property rights
of others and striving not to infringe them. The Intellectual Property Officepromotes internal IP activities related to putting these basic principles into
practice. For example, the office collaborates with IP managers assigned
to each department to investigate the IP of other parties related to newservices and to acquire IP rights in Japan and overseas. In addition, we
conduct educational activities every year through group training ande-learning classes to encourage employees to further understand the importance of intellectual property, as well as the risks of infringement andits prevention. As a result of these efforts, we hold approx. 4,000 patents
in Japan and approx. 600 outside Japan as of March 31, 2021, including
pending patents.
Moreover, the office actively supports the KDDI Group’s IP activities,
including those of its subsidiaries and the startups it has invested in toachieve Group companies’ sustained growth and promote co-creation. In
recognition of this support, we received the Economy, Trade and Industry
Minister’s Prize as an IP usage company (open innovation promotion
company) at the fiscal 2018 Intellectual Property Achievement Awards
held by the Ministry of Economy, Trade and Industry and Japan Patent
Office.
Beyond the conventional activities for intellectual property, we holistically analyze market and intellectual property information. We apply thisanalysis to IP landscaping for the KDDI Group and the startups we invest
in. The IP landscaping is used to plan business strategies that include asearch for new business model services and selection of potential partners or alliances. Furthermore, in December 2020, we established the IP
Landscape Promotion Council as a representative of the founders as partof our efforts to make IP landscaping widely known. This action is to facilitate the sustained development of Japan’s society by strengthening business competitiveness and promoting new value creation so that we willcontribute widely to public interest.

Main Innovation Awards Received

The following websites list awards other than those mentioned above.
Information Relating to Awards KDDI Research, Inc. Received (2020)
Information Relating to Awards KDDI Research, Inc. Received (2021)

Others• Innovative Major Companies Ranking 2020 (sponsored by the Innovation
Leaders Summit Action Committee and the Ministry of the Economy,
Trade and Industry): No. 1 (three years running)

Initiatives for Promoting the Safe Use of Products and Services
Smartphones, mobile phones and the Internet have become irreplaceablein our daily lives.
However, more people, particularly children and older people, get involved in crimes and other troubles.
We promote initiatives to ensure safe use regardless of the users’ levelof ICT literacy. Those include providing products and services that give
advice and instruction on manners to keep in mind and other awarenesscampaigns for safe use.
Cycle Safety Project to Prevent Use of Smartphones While Cycling
In 2017, we launched the Cycle Safety Project. In March, 2019, KDDI and
au Insurance Co., Ltd. launched the third edition of the project, focusing
on high school students*, who are prone to get into a traffic accident
while cycling. To offer an opportunity to simulate the danger from using
smartphones while cycling, which is becoming a social problem, and finda solution to preventing it, we created the VR Class Kit to Prevent Smartphone Use While Cycling. The VR class kit comprises three parts totaling
50 minutes. They are a slideshow that conveys the danger of bicycle accidents and the need to be prepared for expensive compensation; the Stop
Using Smartphones While Cycling VR Experience program, which allows

KDDI Group

Policy &Activity &Results

users to simulate the field of vision and response time to brake when cycling with and without distraction from a smartphone; and a workshop forbrainstorming ways of preventing the use of smartphones while cycling.
Teachers can use this VR class kit as part of their normal lessons, helping
students to think for themselves about the dangers of being distracted bysmartphones through realistic experiences. The VR Class Kit was recognized as a set of educational materials that leverage the latest technologies to solve social issues, and received the Award of Excellence at the2020 Excellent Material Awards concerning Consumer Education hosted
by the National Institute on Consumer Education on June 30, 2020.
Going forward, we will expand the Cycle Safety Project, aiming to realize a society where bicycles can be used safely.
* Reference: National Police Agency, Traffic Bureau, “Child and Student Traffic Accidents” (March
22, 2018)

The VR Class Kit to Prevent Smartphone Use While Cycling won the Awardof Excellence at the 2020 Excellent Material Awards concerning Consumer
Education (Japanese only)KDDI Sustainability Report 2021

45

Top Message

Message from Executive Officer of SustainabilityKDDI’s Material Sustainability Issues

FY2020 Material KPI ResultsKDDI’s Commitment to Sustainability

FY2021 Material KPIs

Feature Article 1: KDDI’s Response to Climate Change

Materiality 1

Materiality 2

Feature Article 2: KDDI Sustainable Action

Materiality 3

Materiality 4

Materiality 5

Materiality

Management Framework

Engagement

Materiality 6

Materiality 3

Fulfilled Life Brought through ICTs
• Contribution to economic growth through robust information communications infrastructure • Improvement of access to education, medicine and other public services through ICTs • Promotion of employment creation and capacity building • Innovation management

Initiatives outside Japan

Responsibility for Products and Services
Initiatives to Promote Safe Use
Targets

Products

Services

A touch-screen mobile phone for kids,
with security alarm, location confirmation feature, etc.
* mamorino5 does not have a voice operation feature

Security Filter
for auYoungpeopleBASIO4Older
PeopleUsers with Simple Phone
disabilities KYF38/KYF41

With the customer’s consent, we offer an
Age Confirmation Service that transmits
age information (information that allows
content providers to determine whether thecustomer is over or under the age specified
by the providers) when the customer uses
social media and other services.

A product for first-time smartphoneusers with a large screen that makes it
easy to read texts and see photos. It hasa clear and easy-to-use home screen
au smart
and buttons. In addition, just by pushingsupportthe dedicated button, it is easy to use
auPAY, the smartphone payment service for shopping and payment just byreading a barcode or QR code.

A membership-based service with a dedicated team of advisors offering tailoredsupport for customers who have bought amobile phone but are having difficulties
using it or who want to buy one but feelanxious about using it, allowing customers
to use their devices with confidence.

A feature phone focused on ease of use,with a high-quality audio communication
function, simple menu screens, big Blocking spam
letters and larger keys
messages andcalls (forsmartphones)

A service that displays a warning when it
detects probable spam text messages
and phone calls, such as those for fraudulent bills. For incoming texts or calls frompublic utilities, companies, or other sources, the name of the sender or caller willautomatically be displayed using the information from the yellow pages.

Blocking spam
calls(for landlines)

Features a text-to-speech function
that, once set up, will read aloudmenu options, e-mails, and other text.
This can be used as an aid not only by
Braille Request
elderly people with diminished eyeService
sight but by other visually impaired
people.

——Initiatives through MVNO

Initiatives to stop smartphone use while walking,cycling, and driving

Extensive variations of 5G mobile phones(Wide 5G variations and multiple brands ranging fromhigh-end to low-cost models on offer)

46

A special price plan for the “mamorino4” and“mamorino5” for children of elementary school
age and under. The plan can be used for abasic fee of 500 yen when subscribing to
2-year contract (Everybody Discount).
* E xit from a 2-year contract or cancellation
mid-contract will incur a contract cancellation fee,
etc.

Initiatives of the KDDI Foundation

Measures
Based on the Act on Development of an Environment That Provides Safeand Secure Internet Use for Young People, as well as implementing filterPromote the useof filtering services ing for all contracts for minors, we are actively striving to improveuser-friendliness and increase awareness of our filtering services.

KDDI Smartphone
and Mobile Phone
Safety Classes

We give in-person or online classes at schools across Japan, enablingchildren to learn the skills to safely and properly use smartphones andmobile phones using their own judgment.
Community Involvement & Development / Initiatives
Materiality 5: Respect for Human Rights and Fairness in BusinessKDDI Awareness Raising and Education Initiatives

Simple Phone
KYF38/KYF41

EveryoneA smartphone filtering service to protect
young people from dangerous sites andapps. Filter level can be set according to
the child’s age and what they are using
the smartphone for.
Also provides time limits to prevent overuse, usage inquiries, area search, etc.
Junior Keitai
Plan Nmamorino5

Ageconfirmation
Services

LGBTQ+

Rates

KDDI Sustainability Report 2021—

Discount service with no fixed fee, for families
using au smartphones or mobile phones.
Domestic SMS messaging (C-mail) and domestic calls among family are free 24 hours a day,based on certain contract conditions. Families
living separately can also apply.
* Can be combined with Smile-Heart Discount

Measures againstmoney transfer
fraudsFamilyDiscount—

For Individual subscriptions: Enhancing identity confirmation by restricting
the payment methods for usage fees; preventing mass fraudulent subscriptions by restricting the number of subscribable lines; enhancing
screening via information sharing among mobile phone and PHS companies about subscribers of lines whose identities cannot be confirmed; andsuspending the use of land-line telephone numbers that were used formoney transfer frauds or other particular kind of frauds at the request of
the National Police Agency.
Supporting “consumer education” run by local authorities, we explain thebasic operation of smartphones and tablets and how to use them safely,
mainly for users aged 70 and under.
Community Involvement & Development / Initiatives

KDDI Smartphone
and Mobile Phone
Safety Classes

A service for au Hikari phone option thatblocks incoming spam phone calls, such as
those for scams or solicitations, to a landline
phone. Spam calls from an unknown numbers are automatically blocked without theneed for a special setting.
Service for visually impaired users toreceive monthly usage billing informationin braille (including amount charged andbreakdown).

An educational website where both parents and children can enjoy learning
about the important points and rules when using smartphones and mobile
Educational
phones.
website:Family Guide to
Family Guide to Smartphones and Mobile Phones
Smartphones and(Japanese only)
Mobile Phones on
WEB

Smile-Heart
Discount

Provides discounted rates for persons with disabilities to make au mobile phones easier to use.
As of March 2021, the discounts are available toholders of a physical disability certificate, rehabilitation certificate, certification of psychiatric disorder, medical care certificate for specified
diseases, registration certificate for specified diseases or medical expenses certificate for specified intractable diseases.

Family Discount Eligibility for family-oriented services such as auservice available Family Discount extends to formally certified
same-sex partners.
to same-sex
partners

Sign language
support service

KDDI Awareness Raising and Education Initiatives

We offer support for contract procedures in sign language at a KDDI
directly managed outlet (au Shinjuku). We also offer remote sign language
support using tablet-based video conferencing functions at several KDDI
directly managed outlets.

——

KDDI Group companies: JCOM Co., Ltd. and BIGLOBE Inc. offer low-cost communication services to reduce the cost burden for customers. The KDDI Group offers a variety of services to suit its customers’ needs.
Free app to prevent usage while walking: Provide a free app to stop smartphone use while walking and help prevent accidents and injuries and to improve manners.
(The app and support services are currently unavailable on the au Market)
Cycle Safety Project: A joint initiative by KDDI and au Insurance Co., Ltd. to create a society where bicycles can be used safely. We are raising awareness ofbicycle safety via campaigns using apps and social media, as well as the Stop Using Smartphones While Cycling VR Experience.

Cycle Safety Project (Japanese only)• With the launch of “au 5G,” the total of 26 types of 5G models have been on offer since the summer of 2020 (as of July 2021). Currently, all au smartphones in the new line are of 5G models. 5G mobile routers, along with a 5G router for home use that immediately connects to the internet without line installation, have been added, so that diversifying customer needs are met, promoting “5G for everyone.”• Starting from the summer of 2021, UQ mobile and povo are also 5G-compatible, providing a wide range of products and services to choose from that meet customers’ needs.

KDDI Group

Policy &ActivityEver since the KDDI Foundation took over international cooperation projects from former KDD, it has contributed to the sustained growth of theinternational community, especially developing countries, for over 60
years, keeping track of local realities and what people faced. In 2020, although the COVID-19 pandemic significantly affected us, we moved further ahead with the use of the internet and the localization of our assistance.
Building a Local Network to Assist with Telemedicine in Nepal
In 2019, the KDDI Foundation set up a project team led by members from
Nepal’s communications authorities and a local NGO. We proposed a
project to “enhance regional administrative services using smart network
technologies” to an international organization named the Asia Pacific Telecommunity (APT), and launched it in February 2020.
Our aim was to create better local administrative services, including
telemedicine. The basis of the project work was to “lay robust and opticalfibers that use the technology for a network of submarine fiber-optic cables at low cost in a do-it-yourself manner.” We developed a local broadband network that combines DIY-styled optical fibers based on the ITU-T
Recommendations and Wi-Fi devices. Going forward, we plan to add
more optical fibers and install resilient wireless devices* to expand this local network and the use of it. We will also further increase the use of applications, with a particular focus on upgrading regional health checkups andhealthcare.
During 2020, while international travel was restricted due to the
COVID-19 pandemic, we proceeded with the project through online meetings. As for our efforts to upgrade local health checkups and healthcare,
we donated a new X-ray machine, an ultrasound device, and three portable house call kits for checkups to Dullu Municipality, which were an addition to the three portable house call kits for checkups that healthcare facilities in Dullu and Kathmandu already had. These donations were to
improve the healthcare and checkup settings across Dullu Municipalitythat suffered a surge of infections.
* A resilient wireless device provides a resilient and adaptable network during a disaster or in othercrisis situations.

Learning Support amid the COVID-19 Pandemic in Nepal
In Nepal, most public elementary and middle schools were closed in
March 2020 due to the COVID-19 pandemic. During the 10-month closure, the “robot programming education for fun learning of robot programming to develop logical thinking,” which had been provided by the KDDI
Foundation since 2019, was put on hold.
To support continuous learning of children when many of them hadno access to the internet at home, the KDDI Foundation set up a system
in which children each took home a tablet that stores the contents of textbooks and other learning materials. Internet access was not needed toview the contents. In February 2021, six schools in Lalitpur started to use
the system.
We also believe that creating and introducing e-learning materials forchildren with visual and hearing impairments is our priority. We have madea detailed plan for the action and submitted it to a relevant institution for
approval. This initiative will be receiving financial support from the UNICEF.

KDDI Sustainability Report 2021

47

Top Message

Message from Executive Officer of SustainabilityKDDI’s Material Sustainability Issues

FY2020 Material KPI ResultsKDDI’s Commitment to Sustainability

FY2021 Material KPIs

Feature Article 1: KDDI’s Response to Climate Change

Materiality 1

Materiality 2

Feature Article 2: KDDI Sustainable Action

Materiality 3

Materiality 4

Materiality

Materiality 5

Management Framework

Engagement

Materiality 6

Materiality 4

Rewarding Workplaces for Diverse Talents• Promotion of diversity and inclusion • Human resource development and career development • Pursuit of employee satisfaction • Promotion of health-focused management

Recruiting and Developing Human Resources
KDDI’s ApproachKDDI Group

Social Issue
With the working-age population declining due to the falling birthrate
and aging population, and with working people’s diversifying needs(i.e., the need to balance work with parenting or care assistance), Japan faces the major challenges of boosting productivity through innovation, increasing employment opportunities, and providing settings
that motivate workers to achieve their full potential.
To meet these challenges, the government has been pressing
ahead with “work style reforms” to make major changes in the people’s
working environments. Japan’s labor productivity, however, remains in
the lowest rank in the Group of Seven. Moreover, with the COVID-19
pandemic affecting the whole world since 2020, another urgent challenge is to establish the “new normal,” which is meant to dramaticallychange the lifestyles and ways of working that people have maintained.

Management FrameworkIn the Medium-Term Management Plan (FY2019–FY2021) we established KDDI’s Target SDGs and decided to focus on human resource development; support for women’s advancement; and respect for human rights, diversity & inclusion as social issues to besolved through corporate activities. In addition, regarding support
for women’s advancement, we have been setting medium-term
quantitative goals since fiscal 2016 and working toward theirachievement.

PolicyOur Risks and Opportunities
With the decline in the working-age population due to the falling birthrate and aging population, it has become increasingly difficult to hire
talented human resources. We also need to realize an attractive work
environment that offers diverse work styles to suit a diverse workforce.
In July 2020, KDDI established the Declaration of KDDI New Work
Styles. This aims for a shift away from the conventional working arrangements based on working in the office to hybrid work styles, which
combines in-person commuting and telecommuting for successful outcomes, regardless of when and where employees work. To achieve
the shift, we are working to create suitable environments and changesystems. In August of the same year, we introduced a new personnel
system that values and recognizes employees’ achievements, commitment, and skills, rather than the hours they have worked (KDDI Version
Job Style Personnel System). This system is meant to help employees
to achieve their personal growth and become who they hope to bethrough the challenges they are committed to meeting. It has also created opportunities for employees to further explore their expertise. We
hope to retain diverse human resources by providing environments
equipped fully with both hard and soft infrastructure.

In April 2018, we announced the KDDI Group Declaration of
Health-Focused Management and began promoting health-focusedmanagement that supports each employee’s health. We also established the Work Style Reform & Health Management Department inJanuary 2019, and are working to develop a sound work environment as a foundation for sustainable growth through the activities ofthe Work Style Reform Promotion Committee and all employees interview by internal counselors.

KDDI’s Approach(Recruiting and Developing Human Resources)

KDDI

PolicyAs the working-age population continues to decrease due to the declining
birthrate and aging population in Japan, it is said that the country’s economic growth will slow down. The market environment of the information
communication sector has been changing rapidly and drastically in recent
years as we have been experiencing technological innovation, intensifiedcompetition on a global scale and the participation of a variety of carriers.
To respond to these changes and continue growing in a timely manner,
we need to recruit diverse talents regardless of nationality, gender, age or(dis)ability and promote their advancement.
We regard the recruitment and development of human resources thatcan lead the new business area of integrating telecommunications and life
design and the raising of the potential of the company’s workforce as thehighest priority.

Human Resources System

KDDI

SystemTo maximize the value created by human resources and ensure that theright people are placed in the right roles, we have established an organizational structure that manages the recruitment, development, utilizationand career progression of human resources as a vertically integrated process, effective from fiscal 2017. In this way, we have maximized organizational performance and the growth of each employee.

Development

based on abilities
andcharacteristics

Recruiting

Human Resource Cultivation
Management

KDDI

Activity &Results

In the recruitment stage, we have removed the gender query from theapplication sheet to ensure we hire diverse talents.
We also have a variety of training and qualification schemes that givecontract employees, such as mass-retail sales advisors, talent development
opportunities. Those who wish can apply for a permanent contract, and32 contract employees became regular employees through this scheme infiscal 2020.
We execute various measures for effective employee growth, including on-the job training (OJT) and off-the-job training (OFF-JT). Additionally,
we create a drive to grow in employees by providing each with proper
evaluations and feedback. We have also prepared various programs for
those employees passionate about growing themselves and leadingchanges that encourage them to work on actively cultivating their potential
instead of staying passive.
Also, we support the acquisition of company-designated qualifications
by paying examination fees and other related expenses.
•F Y2020 number of newly hired graduates of nationality other thanJapanese: 4• FY2020 percentage of newly hired female graduates: 32.4 %• Number of interns we had in FY2020: 763▪ Retention of Newly Hired Graduates (KDDI) 

Unit: person

Male

FemaleGraduates hired in April 2018

181

106

Currently employed in April 2021

177

98

▪ FY2020 Employee Training Results (KDDI)
Results

 o maximize the value of human resources and ensure the appropriT
ate placement of human resources, we built a system to standardize
recruitment, development, utilization and career progression. In thisway, we have maximized organizational performance and the growthof each employee. Furthermore, in fiscal 2020 each organization
started working on SDGs as part of its organizational goals to encourage its members to understand SDGs and take actions for them.

FY2021 Material KPIs

KDDI Group

Initiatives

48

KDDI Sustainability Report 2021

Utilization
and Career
progression

Moving Forward

KDDI Group

PolicyEvaluation(Performance)

Training expenses per employee

Unit: yen / person

Training time per employee

Unit: hour / person

Total training time

Unit: hour

95,000
7.5
122,150

Employee growth and optimization of organizational performance

Promotion of diversity and inclusion
Human resource development and career development
Improve employees’ health

FY2021 Material KPIs

KDDI Sustainable Action P.16-19
Recruiting and Developing Human Resources
Labor Practices P.54-63

PolicyExperience

KDDI Group

PolicyP.49-53

KDDI Sustainability Report 2021

49

Top Message

Message from Executive Officer of SustainabilityKDDI’s Material Sustainability Issues

FY2020 Material KPI ResultsKDDI’s Commitment to Sustainability

FY2021 Material KPIs

Feature Article 1: KDDI’s Response to Climate Change

Materiality 1

Materiality 2

Feature Article 2: KDDI Sustainable Action

Materiality 3

Materiality 4

Materiality

Materiality 5

Management Framework

Engagement

Materiality 6

Materiality 4

Rewarding Workplaces for Diverse Talents• Promotion of diversity and inclusion • Human resource development and career development • Pursuit of employee satisfaction • Promotion of health-focused management
Recruiting and Developing Human Resources

KDDI Human Resource Cultivation Measures

KDDI

SystemKDDI Human Resource Cultivation Measures
ProgramContentKDDI’s Approach(Professional Advancement of Women)

KDDI

PolicyPromoting gender equality and female empowerment not only deepens
our understanding of their human rights but leads to solutions to issues ininternational society and corporate sustainable development.
This is reflected in the medium-term management plan, and we arepromoting the advancement of women as a business strategy.
We at KDDI strive to establish an environment and create a climate
where diverse human resources can use their individual strengths toperform to the best of their abilities. We are focusing on cultivating female
leaders, raising awareness while changing the behavior of management
and improving the working environment, so that women can become
ambitious to build their own career and continue to work even while going
through major life events, like giving birth and raising children.
Furthermore, we have set the following targets to achieve by FY2022 inrelation to women’s empowerment in the workplace, which has been in operation since the start of the new personnel system toward full establishment.

Executive assistant

Employees work as directors’ assistants, learning directly the management mindset. (Every year, one man and one woman are
assigned.)

Job rotation system

The program is designed to help younger employees think deeply about their career plans for the future they want, and expand therange of experience and take other actions to achieve their personal growth (career development and transfer).

Open recruitment system

The program is designed to support employees in their autonomous career development by creating opportunities for motivatedemployees to take up the challenge of working in a business area that needs a boost or in a position of a Line Manager (the program
also covers the promotion of work to be undertaken by elders).

Career plan reporting system

Employees can consult with their respective department’s general manager on their future career plans based on the reports about
their career history and current situation.

Stratified training

Employees acquire the knowledge and skills needed for carrying out their work depending on the position or qualifications they have.

Common skills training

Employees acquire the various business skills commonly needed by everyone in the company.

Support for acquisition of qualifications

We pay examination fees and other related expenses for employees who are acquiring company-designated qualifications.

Lifelong learning sabbatical program

Employees wishing to study toward a qualification or acquire new skills on a voluntary basis can take a career break of up to three
years.

Business study abroad

Participants learn global standards for business at an overseas university or through communication with business persons at NPOs
or internship.

1 Percentage of women in high-level personnel training: 20% or higher
2 Number of women in managerial positions: 200 or more
3 Percentage of newly hired female graduates: 30% or higher

Specialized study abroad

Participants study at an overseas university or specialized institution to acquire advanced specialized knowledge and build human
networks with relevant persons.

Actions

Overseas trainee system

Employees wishing to join the program are sent to an overseas base for a certain period of time and, by conducting business, theylearn how to carry out their work in a professional manner no matter the values and business customs of those who surround them.

Global employee exchange program

In this program, employees hired overseas are invited to our headquarters in Japan to learn about the business customs, operations
and philosophy of the KDDI Group and strengthen their partnerships with foreign customers who have offices in Japan.

KDDI DX University

This is a learning platform designed to train and expand internal human resources in order to move ahead with the DX business asKDDI’s core business as well as in-house DX.

Training System by Position
Position

The KDDI Group
Philosophy

Executive / Director

Divisional general manager study session

Leaders

GL(Group leader)

AssistantManagerCore staff
members

Chief

Employee

Staff

Leadershipworkshop
Philosophy Study Session by layer /Study Session by Department

Manager(Non-line)

Leadershipenhancement
training

Departmental
GeneralManager

Stratified
training

Common skills
training

Global humanresources

Division-specific training
Operation-specific skills

Targets• Prospective high-level personnel training
Of actions to support women’s career development, promoting the appointment of women for senior positions faces difficulties due to various
factors. KDDI has set the target of raising the percentage of women participating in its senior management training program to 20 percent or
higher, expanding training opportunities that will lead to the appointmentof more women for senior positions.
• Consistent leadership training in the Female Line Manager Program (JLP)• Seminars for female students
By meeting the targets related to senior positions, managerial positions,and hiring, we will help bring women’s advancement in the pipeline.

Cultivating Women (outside the Company):
Cross-Industry Forums
Newly
Appointed GL
Training
Newly Appointed
Manager Training
Training by Division

Overseas
Trainees
Common skills training

New Employee Training

Overseas
Study

KDDI

Activity &Results

In addition to internally training personnel, KDDI has proactively participated in cross-industry forums, with a focus on initiatives to raise female employees’ viewpoints. Through participation in various opportunities for personal exchange, including the Eijo College that aims to create amanagement model for female sales representatives, J-Win for development of female leaders, the International Conference for Women in Business where approximately 800 women gather from Japan and abroad toachieve self-growth, and the Lead the Jibun Camp designed for a person
to lay the foundation as an innovative leader, we encourage female employees to get motivated and raise their self-awareness and viewpoints as
a leader. These events serve as opportunities to further enhance the female employees’ qualities as leaders.

Cultivating Women (inside the Company):
Promoting Female Line Manager Program

System &ActivityKDDI

From fiscal 2016 to fiscal 2020, we conducted the Female Line Manager
Program (JLP), which aims to establish a career path leading to officers
and line managers, targeting female employees from an assistant section
manager position to candidates for a departmental general manager position. Selected managerial candidates had opportunity to participate in
Mind Up Seminars, where they can learn the skills necessary for leadership and adjust their mindsets. In addition, we helped them develop leadership and further grow as a leader by promoting dialogues with female
executive role models within the company. We are continuously providing
e-learning to promote understanding of the necessity and method for cultivating female managers for all line managers, including male managers,
as we provide e-learning focusing on “unconscious bias” and work to reform mindsets within the company for all employees.
From fiscal 2021 onward, the program will be centered on the KDDI
Version Job Style Personnel System that has come into full operation.
With the three pillars that consist of the KDDI Version Job Style Personnel System, the Declaration of New Work Styles, and in-house DX, wewill be carrying out measures that give priority to each employee’s intention and individuality, so that their life events will not interrupt their careers.
These measures include support for career development using HR Tech
(X-Career), well thought-out support from a supervisor through regular
one-on-one meetings, loaning of a secure laptop to each employee, options for work styles that suit employees’ needs without constraints on thehours and places according to the Declaration of New Work Styles, andthe KDDI Version Job Style Personnel System that evaluates employees’
performance based on their skills and achievements in their work.

Cultivating and Promoting
Female Leaders

Activity &ResultsKDDI

We believe that the participation of women in company decision-making
will contribute to enhancing our corporate strength and are focusing on afemale leaders training program. The new personnel system that was introduced in FY2020 defines leaders of the bodies authorized to conductpersonnel evaluation, along with experts in technical fields, as “personnel
in managerial positions.” Under this system, we have set the numericaltarget of 200 women in managerial positions by the end of FY2022. We
report our progress toward the goal every six months at a meeting attended by management. We are also striving to expand our female managers
training program, which will lead to more female leaders.
KDDI also works with its Group companies in activities to promotewomen’s empowerment in accordance with the Act on the Promotion of
Female Participation and Career Advancement in the Workplace, so thatthe whole Group works further on the promotion.
Unit: person

Executive / Director
Managerial/
Supervisory positions

Executive officers

2

Outside directors

1
370Managerial positions

Line managers at 19 major subsidiaries in
Japan

175
281
(as of April 1, 2021)

50

KDDI Sustainability Report 2021

KDDI Sustainability Report 2021

51

Top Message

Message from Executive Officer of SustainabilityKDDI’s Material Sustainability Issues

FY2020 Material KPI ResultsKDDI’s Commitment to Sustainability

FY2021 Material KPIs

Feature Article 1: KDDI’s Response to Climate Change

Materiality 1

Materiality 2

Feature Article 2: KDDI Sustainable Action

Materiality 3

Materiality 4

Materiality

Materiality 5

Management Framework

Engagement

Materiality 6

Materiality 4

Rewarding Workplaces for Diverse Talents• Promotion of diversity and inclusion • Human resource development and career development • Pursuit of employee satisfaction • Promotion of health-focused management
Recruiting and Developing Human Resources

Evaluation and Remuneration Systems

KDDI

PolicyTo ensure the fairness and transparency of personnel evaluation and compensation, KDDI shifted the focus of its evaluation away from job functions
and years of service to each employee’s commitment to meeting a challenge, problem-solving skills, communication skills, and professionalism.
Each employee also has one-on-one meetings on various subjects with
their supervisors in order to maximize the results they have achieved anddevelop their individual skills.
Through an interview, their supervisor rates these achieved results
and the level of their commitment to meeting a challenge before ratings
are given by more than one evaluator for the final decision. These evaluations are conducted twice a year for all employees. The ratings of problem-solving skills, communication skills, and professionalism are finalizedbased on 360-degree feedback and their supervisor’s evaluation. All employees are evaluated this way once a year.
As for bonuses, there are two types: corporate performance bonuses
that reflect the company’s performance and individual performance bonuses that reflect the personal business performance of each employee.

Employee Engagement Survey

KDDI

KDDI

System

We have introduced a performance-linked stock compensation system as anincentive plan for managerial employees. This system is designed to provide
the company’s share to KDDI managers when specific requirements are met
in accordance with stock grant regulations set by the company in advance.
By providing incentives, the system aims to improve the awareness ofmanagers regarding the company’s performance and stock price, as well as tofurther encourage the execution of operations aimed at improving performance
while contributing to corporate value over the medium-to-long term.

52KDDI Sustainability Report 2021

KDDI

Activity &Results

Results▪ Employment Status

We have implemented award programs for employees to increase
motivation and a sense of solidarity.
▪ President’s Award Results
Award name

Unit: caseNumber of awarded cases

President’s Award

3

Special Award from President

1

Contribution Award

1

Best Sales Award

3

Individual MVP Award

2(Evaluation period: April 1, 2020-March 31, 2021)▪ Foreign Employee

Male / Female

FY2016FY2017FY2018FY2019FY2020Male (KDDI)
Female (KDDI)
Number of
Unit: Total
employees*1 person (Male and Female)
Consolidated number of employees
Male
Average
Unit: Femaleage (KDDI)age Total(Male and Female)
Male
Averageworking
Unit: Female
years
year Total(KDDI)(Male and Female)

8,718
2,198

8,723
2,314

8,574
2,394

8,465
2,427

8,746
2,607

10,916

11,037

10,968

10,892

11,35335,03238,82641,99644,95247,320

42.9
39.3

43.2
39.4

43.4
39.4

43.6
39.7

43.7
39.8

42.2

42.4

42.5

42.8

42.8

17.7
16.0

18.1
15.9

18.2
15.7

18.4
15.9

18.3
15.5

17.4

17.6

17.7

17.8

17.6

Employment
turnover (KDDI)*2(Total)1.11 (Total)1.08(Total)1.43(Total)1.45(Total)1.16(Male)0.95 (Male)1.01 (Male)1.30(Male)1.30(Male)1.09(Female)1.79 (Female)1.39 (Female)1.96 (Female)2.03 (Female)1.47

Unit: %

*1 “Number of employees” is the number of regular KDDI employees, including employees temporarilytransferred to KDDI. The number does not include employees who are transferred to other companies*2 “Employment turnover” is the calculated percentage of resignations during the relevant term (employees
who resigned at their request, excluding employees who retired at retirement age) in the total number ofregular employees in the first month of the relevant term

Unit: person
Early

Activity &Results

KDDI conducts the quarterly Employee Engagement Survey because webelieve that if each employee feels motivated and enjoys working, we willcontinue to grow.
This survey measures employee engagement as KDDI defines, namelyeach employee’s level of “voluntary contribution and motivation toward thecompany and their work,” to make the results into indicators.
The results of the survey are shared real-time with leaders of each organization.
Human Resources Department does not analyze the results of the
Employee Engagement Survey or formulate measures using the results.
The leader of each organization will share the results with their respective
members and discuss what actions to take for them to work feeling motivated and fulfilled. We believe that this process itself will improve the levelof the employee engagement.
We are committed to improving the employee engagement by working on this activity company-wide.

Providing Long-Term Incentives
for Managers

Special Award from President

Other

Retirement *Excludes employees who
age
retired at retirement age

Under 30

0

14

0

0

1

0

15

30–39

0

50

3

0

0

0

53

40–49
50–60
61 or over
Total
Under 30
30–39
40–49
Female50–60
61 or over
Total
Under 30
30–39
40–49
Total
50–60
61 or over
Grand total

0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0

21
30
2
117
16
16
5
4
0
41
30
66
26
34
2
158

4
4
0
11
0
0
1
2
0
3
0
3
5
6
0
14

0
2
0
2
0
0
0
0
0
0
0
0
0
2
0
2

4
6
0
11
0
0
0
0
0
0
1
0
4
6
0
11

0
0
46
46
0
0
0
0
3
3
0
0
0
0
49
49

29
42
2
141
16
16
6
6
0
44
31
69
35
48
2
185

Male

FY2020departing
employees

Personal Company’s
Transfer
reasons convenience

Total

Unit: person
FY2016

Number of foreign
employees (KDDI)FY2017101

Proportion of foreigners in new
employees (KDDI)

114

2.0%

Number of foreigners at the
management level (KDDI)

10

4,308

FY2020

Male

56

Male

59

Female53

Female

50

109

Total
(Male +
Female)109

Total(Male +
Female)

2.1%

11

4,423

FY2019

114

3.6%

10

Consolidated number offoreign employees

FY2018

2.05%

1.44%

Male

8

Male

14

Female1Female09

Total(Male +
Female)14

Total(Male +
Female)

4,208

4,393

4,581

▪ Non-regular Employees (KDDI) (Number of workers temporarily employed) 
FY2016FY2017FY2018

Unit: person

FY2019FY2020Temporary staff (KDDI)

3,940

4,531

4,196

4,604

4,534

Contract employees (KDDI)

3,101

2,637

2,216

1,964

1,877

Total

7,041

7,168

6,412

6,568

6,411

▪ Employees by Age (KDDI)

Unit: person

Total

Male

FemaleUnder 30

1,556

1,015

541

30–39

2,494

1,877

617

40–49

3,897

2,901

996

50–60

3,405

2,952

453

1

1

0

11,353

8,746

2,607

61 or over
Total

(As of March 31, 2021)▪ Managers (KDDI)
June 2017 June 2018 June 2019 June 2020 June 2021
Number of employeeswith disabilities
Employment rate ofpersons with disabilities

Unit: person

403

417

417

410

413

Unit: %

2.38

2.53

2.54

2.53

2.50

Notes 1: The number includes persons with disabilities who are employed at KDDI, as well as at KDDI
Challenged and KDDI Engineering
Notes 2: The number is calculated by counting persons with severe disabilities as two people▪ Status of Hiring (KDDI)
Male / Female
FY2016
Male
217
University graduate
217
Female85
Recent
University graduate
85
graduates
Junior / technical college graduate
0High school graduate, etc.
0
Total
302
Male
46
University graduate
45
Other
1
9
Mid-career hires Female
University graduate
9
Other
0
Total
55
Male
143
Reemployment
Female17
after retirement
Total
160
Non-regular employees who became regular employees
122

Unit: person
FY2017
211
211
96
96
0
0
307
76
74
2
7
7
0
83
112
13
125
118

FY2018
181
181
106
106
0
0
287
102
95
7
9
9
0
111
121
19
140
66

FY2019
202
202
91
91
0
0
293
120
76
44
15
12
3
135
130
10
140
27

FY2020
188
188
90
90
0
0
278
144
140
4
21
19
2
165
153
16
169
32

Male Managers
Department Managers or higher
Section Managers
Female Managers

Unit: person
FY2016FY2017FY2018FY2019FY2020

4,155

4,195

4,184

4,202

4,226

465

481

472

513

558

3,690

3,714

3,712

3,689

3,668
370

270

302

321

342

Department Managers or higher

12

17

23

23

24

Section Managers

258

285

298

319

346

Proportion of Female Department
Managers or higher

2.5%

3.4%

4.6%

4.3%

4.1%

Proportion of Female Section
Managers

6.5%

7.1%

7.4%

8.0%

8.6%

Newly Appointed Managers

195

209

192

191

190

Male

169

173

163

165

157

Female

26

36

29

26

33

Note: The number of managerial personnel includes KDDI managerial personnel as well as those temporarilytransferred to other companies
Reference: Number of assistant section managers (female) 1,294, (male + female) 5,596▪ Retention of Newly Hired Graduates (KDDI)

Unit: person
Male

FemaleGraduates hired in April 2018

181

106

Currently employed in April 2021

177

98

KDDI Sustainability Report 2021

53

Top Message

Message from Executive Officer of SustainabilityKDDI’s Material Sustainability Issues

KDDI’s Commitment to Sustainability

FY2020 Material KPI Results

FY2021 Material KPIs

Feature Article 1: KDDI’s Response to Climate Change

Materiality 1

Materiality 2

Feature Article 2: KDDI Sustainable Action

Materiality 3

Materiality 4

Materiality 5

Materiality

Management Framework

Engagement

Materiality 6

Materiality 4

Rewarding Workplaces for Diverse Talents• Promotion of diversity and inclusion • Human resource development and career development • Pursuit of employee satisfaction • Promotion of health-focused management

Labor Practices
KDDI’s Approach (Labor Practices)

KDDI Group

PolicyWe at KDDI regard the health of our employees as a key management issue as stated in the KDDI Group Declaration of Health-Focused Management. We support their health at the organizational level to foster an environment and culture where everyone can work healthfully and earnestly,
maximize individual and organizational performance and ensure sustainable growth as a company. We also comply with laws relating to the prohibition of child labor and forced labor, the payment of minimum wage andreducing long working hours.
Starting Salary for University Graduates Compared to Minimum Wage: 169%** Calculated based on the minimum wage in Tokyo (1,013 yen / hour). Specifically, the formula is
21 days × 1,013 yen × 7.5 hours (as of April 2021)

KDDI Group Declaration of
Health-Focused Management

KDDI GroupWork Style Reform

KDDI GroupIn January 2017, we launched full-scale initiatives for work style reform topromote fundamental changes in perspectives and behaviors toward awork style that is more productive. We also established the Work Style
Reform Promotion Committee as part of the initiatives. The committee
members consist of General Managers representing Divisions and theGeneral Manager, Human Resources Division is the chair. Since April
2018, the heads of strategic subsidiaries have also been participants. In
FY2019, we set up a project team to facilitate employees’ diverse work
styles. Since FY2020, in accordance with the KDDI Declaration of New
Work Styles, the team has been working to establish an environment (e.g.,
the promotion of DX) that enables diverse work styles, and working on thevision of new work styles under the KDDI Version Job Style Personnel
System, thereby further driving work style reforms to transform KDDI intoa human resource-first company.

PolicyThe KDDI Group has released the KDDI Group Declaration of HealthFocused Management as part of its commitment to support every
employee’s health at the organizational level and bring about a prosperous
future. Building on this declaration, we are working on a range of initiatives
to drive work style reform, promote mental health care, improve employee
health management and look after the health and safety of employees andtheir families posted abroad, aiming for embedding a “health first” culture.

KDDI Version
Job Style Personnel
SystemDeclarationof KDDI
New Work Styles

KDDI Job Style designed tomake job functions clear
and evaluate performancebased on achievements

Work styles that lead toachievements regardlessof when and where
employees work

Internal DX

KDDI Group Declaration of Health-Focused Management(April 2018)
In our mission statement we declare: “The KDDI Group values andcares about the material and emotional well-being of all its employees
and delivers a thrilling customer experience by always going further
than expected with the ultimate goal of achieving a truly connectedsociety.” As the success of the company depends on a happy andenergized workforce, we see the health of our employees as a key
agenda for the management of the KDDI Group. We hereby declare
our commitment to health-focused management, through which wewill support the health of our employees at the organizational level as
we strive for a prosperous future.
The KDDI Group will:
1.	Encourage and help our employees to take proactive steps toimprove and maintain their health.
2.	Work closely with the KDDI Health Insurance Union and theKDDI Workers Union to improve the physical and mental healthof our employees and their families.
3.	Embed a “health first” culture within the group, where the pursuitof physical and mental health creates an energized and productive
workforce.

IT and office reforms
for work styles that are
hybrids of teleworking andworking in the office▪ Operational Framework of the Work Style Reform Promotion Committee
Management Level
Instruct
response

Make
improvements

Compliance

Secretariat(Work Style Reform &Health Management
Department)

54

KDDI Sustainability Report 2021

SystemIn August 2020, we introduced the KDDI Version Job Style Personnel
System that aims to achieve sustained growth of KDDI through each employee’s professionalism. In this system, “Job Style” is used to define theareas of job functions. Employees’ achievements, commitment to meeting
challenges, and skills are directly rewarded, thereby “creating and nurturing professionals.”
To achieve sustained growth, KDDI is working to expand new business areas while its business continues to revolve around telecommunications. This means that there will be more fields where our employees canpursue successful careers.
To expand our business areas, we need talented human resources
with more specialized skills and knowledge. KDDI hopes that all employees actively acquire skills they can apply in new business areas while they
leverage their years of experience in the telecommunications business, sothat they will become professionals capable of working successfully outside the company.
Through these actions, we will achieve transformation to a “human resource-first company,” that is, a company that values employees as themost valuable resources fundamental to management.
KDDI Version Job Style Personnel System Introduced to Enable Work
Styles That Lead to Achievements Regardless of When and Where
Employees Work (Japanese only)

Environment Creation

Human
Resources
Division

Work Style Reform &Health Management Department
Work Style Reform Group

Make
requests

Work Style Reform
Project TeamCounseling 1 GroupCounseling 2 Group

Departments

Counseling 3 Group＋

Health-Focused
Management Group

Strategic Subsidiaries
Declaration of Health-Focused ManagementKDDI(as of April 2021)

Chair: General Manager, Human Resources Division
Committee members: All Division’s General Managers /Presidents of strategic subsidiaries
ReportDeliberateissues

Initiatives and Results of Work Style Reform in Fiscal 2020•H
 eld monthly Work Style Reform Promotion Committee meetings(topics: eliminating long working hours, increasing productivity, etc.)•F or the purposes of appropriate work schedule management and of
early support for employees who show signs of mental instability, we interviewed all 13,000 employees working in our offices in Japan, including loaned employees, twice a year.
•W e mandated all employees to log off their computers and leave the office within half an hour after they complete their work for the day.
•W
 e mandated all employees to have a nine-hour interval between theend of working hours and the start of working hours the following day.
•W
 e created a system to record and manage the hours each employee
enters and exits the building as well as the hours they log off their officecomputers, and looked into all discrepancies between the system log
and the hours reported by employees.
•A s a result of our efforts to encourage planned use of annual paid leave,
the leave taken increased seven percent points from the last year.
66.9% in FY2019 to 73.9% in FY2020• Introduced robotic process automation (RPA)• Made internal systems accessible to mobile devices• Began allowing tethering for work smartphones•T o have quality meetings, each division promoted action plans for meeting reform.
•T he office was refurbished to encourage new work styles.
(e.g., free-address office system introduced throughout the company;
enhanced online meeting facilities; a new online delivery studio; an enhanced satellite office)•P romoted use of shared offices•R evised the Teleworking Work Rule in order to expand opportunities forteleworking and ensure appropriate application.
(more employees eligible for teleworking; the maximum number of daysof teleworking increased)

KDDI Version Job Style Personnel System▪ Organization of the Work Style Reform & Health Management Department

ReportWork Style Reform Promotion Committee

Instruct
response

System &Activity &Results

KDDI Evolva, Inc., KDDI Engineering Corporation, KDDI MATOMETE OFFICE CORPORATION,
Chubu Telecommunications Co., Inc., BIGLOBE Inc., UQ Communications Inc., OKINAWA
CELLULAR TELEPHONE COMPANY, au Financial Holdings Corporation, AEON Holdings
Corporation of Japan, ENERES Co., Ltd.

Almost all members arecounsellors assigned toeach workplace

Around half are public healthnurses.
Employee consultation
managers are also stationed.

Human Resources Development
Department
Human Resources Planning
Department
KDDI Sustainability Report 2021

55

Top Message

Message from Executive Officer of SustainabilityKDDI’s Material Sustainability Issues

FY2020 Material KPI ResultsKDDI’s Commitment to Sustainability

FY2021 Material KPIs

Feature Article 1: KDDI’s Response to Climate Change

Materiality 1

Materiality 2

Feature Article 2: KDDI Sustainable Action

Materiality 3

Materiality 4

Materiality

Materiality 5

Management Framework

Engagement

Materiality 6

Materiality 4

Rewarding Workplaces for Diverse Talents• Promotion of diversity and inclusion • Human resource development and career development • Pursuit of employee satisfaction • Promotion of health-focused management
Labor Practices

Safety and Health Management System
In accordance with the Labor Standards Law and the Industrial Safety and
Health Act, we are engaged in a group-wide health and safety drive to secure the safety and health of workers in workplaces and facilitate the establishment of a comfortable working environment. We have established asafety and health management system, which includes general safety andhealth managers, safety officers, health officers, safety and health promoters, health promoters, industrial physicians, and employees in charge ofmental health promotion in each workplace. We have also established
Health and Safety Committees that plan and conduct activities as joint labor-management efforts.
Health and Safety Committees• Established at workplaces with 50 or more workers• Held once a month• Topics: COVID-19, health-focused management, health management,
mental health, work style reform, overtime work and long working hours,
fire prevention and disaster preparedness, traffic safety, etc.
• Important matters on safety and health are reported to the Executive Director of the Corporate Sector
To create a comfortable working environment, we conduct the statutory
atmospheric environment measurement every two months for temperature,humidity, air current, carbon dioxide, carbon monoxide, and floating dust, andif any deviation is detected, work with a respective facility management company to take appropriate countermeasures, such as ventilation and cleaning.
Furthermore, when industrial doctors travel around our offices once amonth, they check not only sanitary conditions, but working environmentsthat include lighting and noises, so that we make improvements as necessary. In addition, in fiscal 2020, we removed all smoking rooms from offic-KDDI

es to reduce the health risks of passive smoking.
During the annual National Occupational Safety Week, the Health and
Safety Committee members at each office visit workplaces to check forany hazardous areas to rectify, and share example incidents at the Healthand Safety Committee meeting as part of their efforts to prevent accidents.
To prevent long working hours and comply with the Article 36 Agreement, the personnel departments send email alerts to individuals, and share
information about the employees who have been alerted with the heads ofdivisions and human resource staff. We also hold regular seminars on
work schedule management and harassment to manage legal risks.
We have the Guidelines on the Establishment of a Safety and HealthManagement System in order to ensure legal compliance and protect thesafety and health of our employees. We also make sure that the safety
and health management systems at our offices are continually improved,
and that a proper safety and health management system is establishedwhen a new office is set up.
KDDI Engineering Corporation, which does or manages construction
by contract and operates and maintains facilities, provides regular training
to ensure complete safety management. The on-the-job training for employees engaging in these operations in order to prevent accidental falls
from heights and electric shocks, among others, includes Safety Training
for Dangerous Operations and Tool Training. Regular legal training suchas Health and Safety Education for Foremen is also provided.
In FY2020, KDDI and KDDI Engineering jointly held the safety convention, which KDDI hosts once a year. The convention is for subcontractors
who work on the construction of our base stations and network facilities
that involves hazardous tasks such as work in high places. At this year’s
convention, we shared examples of safety-related cases and provided information that should be helpful in improving safety skills.

Priority Measures Relating to Occupational Health and Safety
KDDI is running a number of initiatives to drive health-focused management based on the basic principles of respect for human life, ensuring thesafety and mental and physical health of employees in workplaces at all
times, and maintaining a comfortable working environment.
Health-Focused Management Actions
As part of the drive to promote health-focused management in fiscal
2020, we conducted a health awareness survey of all employees andimplemented measures based on the survey results. As part of themeasures, in fiscal 2019 we introduced KDDI Wakuwaku Points, which isa health point program that provides employees with a mobile app withfunctions designed to improve health literacy, such as access to healthrelated information focusing on diet, exercise, sleep and smoking, achallenge program to change lifestyle habits, and a walking event.
A set of health KPIs have been defined as targets to be achieved byfiscal 2021 to improve the health of employees.

56

KDDI Sustainability Report 2021

SystemKDDI

Activity

Initiative• Encouraged walking•H olding health seminars: “Health Enhancement Seminar”; “Cancer Seminar”;“Seminar on Walking”;“Boost Your Immune System to Protect Yourself from the Coronavirus”;“Health Literacy Enhancement Seminar: An Introduction to Female Hormones”;“Seminar on How to Prevent and Treat Heatstroke”;“Women’s Life Stages and Health”;“Seminar on Smart Drinks”;“Seminar on Eating Wisely in Your Prime”• Support for smokers in smoking cessation· Support from public health nurses in smoking cessation· Assistance with an online smoking cessation program (in collaboration with the health insurance society)· Providing incentives for employees who have successfully quit smoking• Initiatives to improve employees’ sleep·L ending sleep sensors: A sleep sensor visualizes how the user sleeps
so that an expert offers advice based on the data.
·E -learning about sleep

Promotion of Mental Healthcare

KDDI

Activity &Results

KDDI formulated the Mental Health Promotion Plan and is carrying it out
while implementing PDCA cycles for mental health initiatives. In addition,from fiscal 2019, we stationed 40 new internal counselors across thecompany and began interviewing all employees. The interviews enable us
to hear directly from employees and assess working conditions from perspectives that differ from those of their superiors. They also help us quickly identify employees who are showing signs of mental health issues evenin the absence of reports from the said person themselves, enabling us toact promptly in cooperation with medical professionals and managers asnecessary. In this way, we are creating a healthful work environment.
Initiative•S emiannual interviews with all employees conducted by in-house counselors• Offering level-specific e-learning courses related to mental health• Offering harassment prevention seminars for managers• All regular and contract employees complete a stress check once a year
(Employees surveyed in FY2020: 87.0%)• Based on the results, employees can consult with an industrial doctor ifthey request.
• The overall results are analyzed and sent to each work place to sharethe issues revealed, and workplaces with high stress levels are instructed to devise measures for improvement.
• Obligatory submission of medical history forms, interviews with industrial
doctors and individual follow-ups by industrial health staff for employees
who worked more than the prescribed number of hours of overtime• Established the Employee Counseling Center and an external counselingoffice, which are staffed by industrial counselors• We offer total support for employees when they return to work after absence due to mental health issues· Industrial doctors interview returnees as well as the returnee’s supervisors·T raining before returning (return-to-work program, etc.)·S horter working hours after returning to work·C olleagues, industrial doctors and health staff collaborate to facilitate
the returnee’s smooth return to work in addition to the support provided by their supervisors· Use of AI to identify employees who show early signs of mental instability▪ Changes in the Number of Employees Absent from Work Due to Mental
Instability (KDDI) (at the fiscal year end)
Unit: person
FY2016FY2017FY2018FY2019FY2020

100

99

112

101

87

Safety and Health Management for Employees
and Their Families Transferring Overseas

KDDI

SystemWe conduct various activities aimed at ensuring the health and safety of
employees working outside Japan. We provide consultations with industrial doctors to employees before they transfer overseas, interviews withmedical staff to all employees returning to Japan and follow-up care after
the regular health exams to employees working overseas. We also began
conducting stress check for employees working overseas and providing
follow-ups, including health checks as required. Furthermore, we have established and implemented the Vaccination and Health Report Guidelines

Enhancing Employees HealthKDDI

Activity

Providing Health Exams That Exceed Legal Requirements
We conduct regular health exams that are more detailed than required bylaw, with an examination rate of 98.3% in fiscal 2020. Following those exams, we inform all those diagnosed with observation by email. As for those
who are diagnosed with severe health problems, we urge them to have an
emergent consultation at a medical institution as soon as possible, and in fiscal 2020, 87.3% of employees followed the advice. (The percentage wassomewhat lower than usual because of the coronavirus pandemic.) Startingfrom Fiscal 2020, when severe cases are identified among the employees
who have been advised to receive “emergent consultation,” we advise them
to work on “improvement” so that they consult with an industrial doctor, with
their supervisor present at the meeting, and receive our health guidance. If
no improvement is shown, we consider limiting the range of their work.
In addition to the company program to assist with complete medical checkups, since fiscal 2018, we have had a program in place to provide full reimbursement for breast cancer screening for female employees 35 years old or more.
Furthermore, in partnership with the KDDI Health Insurance Union, we
actively promote measures to prevent diseases from becoming severe (datahealth planning). The health guidance given by the union to prevent lifestyle-related diseases achieved a complete rate of 20% for active support
and 28% for motivation support, and we continue our initiatives to increase
these rates, including continuous support on an e-mail basis. To promotebetter health, the union also dispatches lecturers to provide health seminars
at workplaces. In Fiscal 2018, we introduced health programs that provide
free dental checkups and assistance with smoking cessation, among others.
In Fiscal 2019, in addition to the measures taken to date, we introduced KDDI Wakuwaku Points, which is a health point program for all employees with the goal of helping them improve their behavior so that they
start exercising (walking) and change their lifestyle habits.
▪ Other Health Management Measures
Measures

TargetContent

Healthcare
room

Regular andcontract employees,
temporary staff

When they feel sick, they can take a short rest in thisroom and receive first-aid care and health counseling

Refreshroom

Regular and contract Services such as massage and acupuncture andemployees,
moxibustion are offered by nationally qualified practitemporary staff
tioners

Wellnessbenefits• KDDI Group Welfare Association provides subsidies related to such issues as childbirth / childcare,family care, health maintenance, personal developRegular and contract
ment and employing a housework helper (Employemployees
ees are free to choose the services they need)• K DDI Health Insurance Union provides special
benefits in the form of sports club accessfor International Transferees and Business Travelers from the perspectiveof health management and employee safety for those transferring or traveling outside Japan.
We introduced a medical return program that covers the expenses of
employees or accompanying family members returning sick or injured toJapan, if an industrial doctor judges that they should receive treatment inJapan. In preparation for emergent situations, we have set up emergency
evacuation services for all employees stationed or on a business trip overseas for evacuating in the event of terrorism or political instability. We alsooffer emergency medical transport services for the transport of severely ill
or injured persons to a different country for medical treatment if necessary.
KDDI Sustainability Report 2021

57

Top Message

Message from Executive Officer of SustainabilityKDDI’s Material Sustainability Issues

FY2020 Material KPI ResultsKDDI’s Commitment to Sustainability

FY2021 Material KPIs

Feature Article 1: KDDI’s Response to Climate Change

Materiality 1

Materiality 2

Feature Article 2: KDDI Sustainable Action

Materiality 3

Materiality 4

Materiality

Materiality 5

Management Framework

Engagement

Materiality 6

Materiality 4

Rewarding Workplaces for Diverse Talents• Promotion of diversity and inclusion • Human resource development and career development • Pursuit of employee satisfaction • Promotion of health-focused management
Labor Practices

Diverse Work Styles

KDDI

System▪ Programs That Support Diverse Work Styles
ProgramIntroduced to encourage a work style where the emphasis isplaced on high performance achieved in a shorter time. At
the end of March 2021, 17% of the eligible employees use
this system.

Work shift interval
rule program

Introduced to raise awareness of a more health-focusedwork style. The rule stipulates that employees should rest fora minimum of nine hours between the end of a shift and thestart of the next day’s shift with overtime work in consideration. Additionally, health management is conducted in casethey exceed a certain number of days when they cannot take11 hours of rest.

Flexible working
hours system

Introduced to encourage employees to work flexibly and autonomously. In April 2020, this rule was expanded and has
been applied across the board.

Shorter working
hours system forparents

Introduced to support a good work and childcare balance.
Employees can decide their working hours per day between
5 to 7 hours according to their family care responsibilities.
This system is also available on a monthly basis to employees using the variable working hours system.

Shorter working
hours system for
caregivers

Introduced to support a good work and family care balance.
Employees can decide their working hours per day between
5 to 7 hours according to their family care responsibilities.
This system is also available on a monthly basis to employees using the variable working hours system. They can use
this system as long as care is necessary.

Spouseaccompanimentleave program

Established in April 2017 to support the work-life balancewith a long-term perspective. The system allows a maximum
three-year leave of absence to employees who accompany a
spouse who has been assigned overseas so that they may
live together. The program also applies to employees whose
spouses are not KDDI employees.

Career-track
employment withrestricted work area
(L course)

Established in 2016. L-course employees are not transferredoutside the specified work area without their consent. The
system enables the company to retain career-track workers
who have difficulty relocating due to such factors as achanging home environment.

Initiative

Improve employment environment to support the work-life balance of
employees who are engaged in childcare and / or family care
• Flexible working with options to suit home and work circumstances• Seminar on support for teamwork in childcare, seminars for employees
on searching for nursery schools and for employees caring for a family
member while working
Our work regulations prohibit harassment, and we have set up acounseling office and provide training to spread such awareness in thecompany. From fiscal 2016, the scope has been expanded to include
pregnancy harassment, and more robust action is taken.

For men and women

The end of
fiscal year inwhich childturns nine

Discretionary work
system

Support during
pregnancy

For men only

Age two

Variable working
hours system

Introduced so that employees can change their prescribedworking hours every month or every three months according
to their volume of work. This system is also available on amonthly basis to employees requiring shortened working
hours due to childcare and / or family care responsibilities.

For women only

Age one* We were selected as a Telework Pioneer 100 certified by Japan’s
Ministry of Internal Affairs and Communications in April 2016

System▪ Program for Work-Childcare Balance

Birth

The telework program has been expanded to include all employees so that they can work flexible hours and boost theirwork efficiency, in addition to scheduling their work aroundparenting and family care. We also encourage working at asatellite office and mobile working if adequate settings for thework styles are in place.

To help employees balance work with other responsibilities, such as childbirth, parenting, and family care, we have established a support systemthat surpasses legal standards so that 100 percent of the employees who
have taken childcare or family care leave will return to work. In fiscal 2019,we held a seminar on searching for nursery schools by outside experts toprovide recent trend and know-how. The seminar was attended by many
employees: not only employees taking or planning to take parental leaveof absence, but also those with no immediate plan but with interest or forthe purpose of sharing the information with their subordinates or colleagues. (Approximately 40% of 108 participants were male employees.)
After returning to work, the flexible working environment allows the returnees to choose from different work style options to suit their preference
and their particular work situation, including shortened regular working
hours (5-7 hours / day), variable working hours, and telework. While making use of shortened working hours for childcare or while overtime work is
exempted or limited, employees will not be subject to a job transfer that
requires moving residence. Under these programs, employees who takeparental leave return to work (100% for males, 100% for females) (fiscal
2020 results).

KDDI

Pregnancy

Telework program(Working at home)

Content

Support System for Balancing Work and Family Life

Less commuting to work
Time for antenatal hospital checkups

Time for antenatal hospital checkups(only if so directed by doctor)

Support before andafter birth
Support during leaveof absence

Maternity leave
Paternity leave
Parental leave of absence“wiwiw” support services for return to work after parental leave of absenceChildcare time
Shortened working hours for childcare
Flextime

Support forwork-childcarebalance

Sick / injured childcare leave
Exemption from overtime work
Restrictions on overtime work
Exemption from late-night work

▪ Program for Work-Family Care Balance
All programs are available to both men and women

Accumulated annual holidays
Employee whowants to take acertain period oftime off work forfamily care

Familymemberin need ofcare

Short leave

Family care leave (five days / year per eligible family member, or 10
days / year if more than one family member is eligible)

Long leave

Wants to reduce working hours
Employee whowants to provide
family care while
continuing to work

(max. 20 days)

Home care absence (365 days per family member)
Shortened working hours for family care *(until care is no longer required)

Wants to restrict or be exemptedfrom overtime work

Exemption from or restriction on overtime work *Wants to be exemptedfrom late-night work

Exemption from late-night work ** Can be applied together

58

KDDI Sustainability Report 2021

KDDI Sustainability Report 2021

59

Top Message

Message from Executive Officer of SustainabilityKDDI’s Material Sustainability Issues

KDDI’s Commitment to Sustainability

FY2020 Material KPI Results

FY2021 Material KPIs

Feature Article 1: KDDI’s Response to Climate Change

Materiality 1

Materiality 2

Feature Article 2: KDDI Sustainable Action

Materiality 3

Materiality 4

Materiality

Materiality 5

Management Framework

Engagement

Materiality 6

Materiality 4

Rewarding Workplaces for Diverse Talents• Promotion of diversity and inclusion • Human resource development and career development • Pursuit of employee satisfaction • Promotion of health-focused management
Labor Practices

Efforts to Support Childcare and Family Care

Activity &Results

KDDI▪ Efforts to Support Childcare and Family Care (Excerpt)
Measures

Support for male employees’
participation in childcare

Supporting a balance between workand childcare

Supporting a balance between workand family care

TargetContent
Grant paid paternity leave on the expected delivery date or one month following the birth(up to three days, on a day-by-day basis)• FY2020 result: 194 persons (acquisition rate: 60.6%)

Male employees with spouse
expecting to give birthParental leave of absence (excluding paternity leave)• FY2020 average days of acquisition: 54.5 days (acquisition rate: 18.6%)

For all employees

Hold seminars by outside experts on searching for nursery schools, which provides recent trend
and know-how

Employeeswith childcare responsibility

Subsidies for babysitting fees

For all employees

Provide seminars on a good balance between work and nursing care and post a handbook
describing internal support programs on the intranet

Note: Only measures that exceed the legal standards are described here as examples.

Usage of Childcare and Family Care Support System

KDDI

Results

Expanding Employment Opportunities andAdvancement of Persons with Disabilities

KDDI

Policy &SystemAt KDDI, many employees with disabilities are each playing an importantrole in their respective workplace. As a role model of a person with disabilities who plays an active role in a company, three KDDI employees, themost among the participating companies in ACE Award, received its
grand prix prize.
Established in 2008 as a special subsidiary to provide opportunities
for many people, KDDI Challenged Corporation is promoting the independence and success of work of employees with disabilities, aiming to expand and create the types and scope of duties, including the operationsof the three cafes. With the aim of increasing the employment of persons
with intellectual disabilities as required under the law in fiscal 2018, we
have been continuing to expand job areas with a focus on developing diverse occupations, by understanding their characteristics mainly throughpre-employment training; so that each can fully excise their ability in awork area in which they excel. At KDDI, the rate of employment for persons with disabilities is 2.50%*1 (as of June 2021), which exceeds the legal requirement (2.30%).
* 1 Includes KDDI Challenged (special subsidiary) and KDDI Engineering▪ Work Status of Employees with Disabilities▪ Usage of Childcare and Family Care Support System (KDDI)Work location

Work roles

KDDI Challenged

Work handled under contract from the KDDI Group, including
manually disassembling mobile phones, performing maintenance on business mobile phones, handling accounting procedures, PC kitting*2, facility maintenance and operating Refresh
Room and Café Challenged

ProgramMale /
FemaleFY2016FY2017FY2018FY2019FY2020Maternity leave

Female

181

164

135

136

140

Paternity leave

Male

279

282

255

202

194

Male

16

25

27

29

60

Female

276

270

247

239

248

KDDI Challenged
Osaka Office

Male

100%

100%

100%

100%

100%

* 2 Refers to the process such as setting up a PC operating system and installing applications

Female

99.0%

94.4%

98.9%

98.8%

100%

Parental leave of absence

Reinstatement after parental
leave of absence*1
Childcare
Retention after parental leave ofabsence*2
Shortened working hours forchildcare

Sick / injured childcare leave

Home care absence

Familycare

Unit: person

Family care leave

Shortened working hours forfamily care

Male

88.9%

93.3%

92.9%

97.9%

−

Female

99.0%

98.0%

97.7%

100%

−

Male

1

3

6

3

3

Female

440

458

469

497

450

Male

344

429

471

439

275

Female

445

496

522

484

358

Male

8

8

12

7

5

Female

5

4

6

6

3

Male

107

133

180

175

134

Female

87

117

113

118

84

Male

1

1

3

3

4

Female

2

2

6

11

7

Cleaning (morning), manually disassembling mobile phones(afternoon), and operations of Refresh Room and Café
Challenged

Support System for Employeeswith Disabilities

SystemThe Act on the Elimination of Discrimination against Persons with Disabilities, enacted in Japan in 2016, stipulates the need of rational consideration to be taken to eliminate barriers in the life of people with disabilities
as much as possible.
To ensure that employees with disabilities can lead stable professional
life that matches their abilities and disabilities, we strive to create supportive work environment for them by providing support to them based on aquestionnaire survey, while preparing a guidebook for their supervisors.
▪ Examples of Support for Employees with Disabilities
Measures

Content

Questionnaire surveys

We conduct questionnaires for all employees withdisabilities to assess factors such as the inconveniences they face in the company and changes intheir conditions, and based on these opinions changes are incorporated into their work environments.

Guidebook for supervisors

To understand, accept and treat employees with disabilities according to the need of each of the employees, we provide a guidebook for their supervisors.

Guidebook forcommunication with
employees with hearing
difficulties

This guidebook, which was created with the participation of employees with hearing difficulties, is posted on the intranet to provide easy-to-understand explanations on the rules of sign language interpretationand how to support summary writing in the workplace.

Support in creating
network

Help employees with disabilities build a network withpeople with disabilities who work for other companies
and have opportunities to grow themselves throughparticipation in external seminars targeting them.

Introduction of an app for
persons with hearing
difficulties

We introduced the UDTalk speech translation app tofurther ensure the access to information by employees with hearing difficulties.

Employment Promotion for People with Difficulty in Securing Employment
KDDI and Nippon Telegraph and Telephone (NTT) entered into a social
contribution coordination agreement on September 11, 2020. In accordance with this agreement, KDDI and NTT launched initiatives to provide
support for skill training in remote work and ICT as well as employment
support (the “Initiatives”) in March 2021 as a second “Tsunagu × Kaeru(Link and Transform)” project the two companies jointly promote. We also
aim to create jobs for more than 300 trainees who have completed all programs the Initiatives offer, namely remote work skills training, ICT skills
training, and career counseling. These jobs will be in the KDDI Group, theNTT Group, and other companies suited for the trainees.
Drastic changes in the societal environment, such as the Employment

KDDI

KDDI

Policy &System &Activity

Ice Age and the collapse of Lehman Brothers, have made a massive impact on the development of occupational skills as well as on employment
to date. Today, the COVID-19 pandemic has forced an increasing numberof people, mainly those of the generation that underwent Employment Ice
Age, to lose jobs or switch careers. On the other hand, as remote work
has rapidly become common, human resources adept at using ICT are in
demand. KDDI and NTT work together to offer programs designed to support capacity building, thereby helping solve issues facing people with difficulty securing employment.
Launch of Initiatives to Support People of the Employment Ice AgeGeneration etc. in Securing and Maintaining Employment (Japanese only)*1 (Total number of regular employees who returned to work after parental leave of absence) ÷ (Total number of regular employees who planned to return to work after parental leave of absence) × 100*2 (Total number of regular employees who remain at KDDI 12 months after returning to work after parental leave of absence) ÷ (Total number of regular employees who returned to work after parental leave ofabsence) × 100

60

KDDI Sustainability Report 2021

KDDI Sustainability Report 2021

61

Top Message

Message from Executive Officer of SustainabilityKDDI’s Material Sustainability Issues

FY2020 Material KPI ResultsKDDI’s Commitment to Sustainability

FY2021 Material KPIs

Feature Article 1: KDDI’s Response to Climate Change

Materiality 1

Materiality 2

Feature Article 2: KDDI Sustainable Action

Materiality 3

Materiality 4

Materiality

Materiality 5

Management Framework

Engagement

Materiality 6

Materiality 4

Rewarding Workplaces for Diverse Talents• Promotion of diversity and inclusion • Human resource development and career development • Pursuit of employee satisfaction • Promotion of health-focused management
Labor Practices

Promoting Active Role of Elderly Workers

Policy &System &ActivityKDDI

As we enter the era of 100-year lifespans, KDDI has adopted systems that
help its employees aged 50 years or older can play an active role in aworkplace. We have established a post-retirement re-employment program for employees who have reached the age of 60 and satisfy certain
requirements, encouraging them to work as non-regular employees untilage 65 at the latest. This system employs open recruiting, allowing theemployees to select their desired job type and activity while creating amechanism for former full-time employees to make full use of their skills
and experience in various workplaces.
For employees nearing the retirement age, we also hold seminars thatinspire them to think about their life and work styles after 60. Furthermore,
to create an environment to help senior employees further broaden theirfield of activities, since fiscal 2019 we have offered internal open recruiting
opportunities and supported career development for employees aged 50
years or older.

Advancement of Foreign Employees(Prevention of Discrimination)

Policy &SystemKDDI

To ensure that employees from countries other than Japan can work
comfortably in Japan and make full use of their abilities, we provide a variety of information about obtaining permanent resident status and programs relating to dependents and employee pension. In light of religious
diversity, a space for worship is prepared in a workplace. In fiscal 2016,
we held discussions with them to improve the working environment as thecompany expands globally. We provide employees with a guidebook explaining multi-culture in an easy-to-understand manner to ensure that
non-Japanese employees are not discriminated for race and religion.

KDDI’s Approach—Sound Labor-Management Relations

KDDI

KDDI

KDDI

PolicySigning of Union Shop Agreement and Cooperation between Laborand Management
We guarantee the right to freedom of association and collective bargaining.
We adopted a Union Shop Agreement that requires all employees in Japan,
except for managers and non-regular employees, to join the KDDI Workers
Union starting in January 2012, and we signed the Labor-Management
Relations Agreement, Union Activities Agreement and Collective Bargaining
Agreement with the KDDI Workers Union. Regarding items with a significant influence on the treatment of employees, such as changes in the organizational structure and systems relating to human resources, we holddiscussions with the union, and their consent is obtained before implementing any changes. Various issues relating to the improvement of working environment are also discussed between labor and management
through collective bargaining, working-level negotiations, labor-management committee and the like as required, and in fiscal 2020 we had 96
meetings in total. Such discussions will be held as frequently as possible
in fiscal 2021 as well. The KDDI Workers Union provides union memberswith information about the content of negotiations between labor andmanagement. Agreements reached in previous sessions (benefit to bothsides) include: increase in fixed monthly pay, bonus payment based oncompany performance, enhancement of the work shift interval rule, making shortened working hours for parents more flexible, eliminating the time
limit on shortened working hours for caregivers, enhancement of the system for accumulating annual paid leave, promotion of health-focusedmanagement, fertility treatment leave, promotion of harassment preventive
measures, and conclusion of an internal minimum wage agreement. In addition, through the Agreement on Handling of Personnel Transfers, wehave stipulated in the Labor Agreement that an employee shall be notified
at least five days before a personnel transfer is officially announced, andwe have established a system for receiving complaints from the person
concerned.

PolicyWe aim to further promote decent work for all employees by working
toward improving labor-management relations through honest discussions
and negotiations with representatives of all employees.

Status of Union Membership (KDDI)

Creating Sound Labor-Management
Relations

Results

FY2020Total number of union members*

10,400

Union participation rate
(Percentage of employees covered by labor agreements)

99.0%* Includes KDDI’s currently serving regular and contract employees, as well as employees on loan
from the company

Wellness Benefits (for Employees)

KDDI

SystemVarioussystems•T wo-day weekends (Saturday, Sunday, holidays)
• 122 days off per year (weekends, holidays, end and start of year:
FY2020 results)• Annual paid leave (20 days. *Varies according to work attendance
rate, and, for the first year of employment, to the month an
employee joins the company.)• Free vacation system (promoting taking five consecutive paidvacation days)• Special leave (for funeral, marriage, birth, childcare, etc.)• Refresh vacation• Maternity leave• Childcare and caregiving leave, etc.

Insurance

Health insurance, pension insurance, employment insurance, labor
accident insurance, etc.

Assetcreation

Various asset creation and accumulation systems, employee
stock-holding association

Welfareassociation

KDDI Group Welfare Association (mutual aid benefits, support systems for daily life, group insurance, group life insurance, sports
clubs, golf courses, department store perks, coupons for themeparks and resorts, etc.)

Residential
investments

Affiliated home loans

Resorts

Around 75 contracted resorts nationwide

Status of Workplace Injuries (KDDI)

KDDI

Number of workplace accidents

Unit: caseN umber of serious workplace accidents during construction

Unit: caseKDDI Group System

We have introduced our own retirement benefit and pension system for all
career-track employees, which is managed by the KDDI Pension Fund (aseparate corporation). The KDDI pension plan offered to employees is
structured as a defined-benefit pension plan, and the entire amount isborne by the company (435,132 million yen * as of the end of March
2021). KDDI Pension Fund manages the assets to be granted appropriately in the future.
We strive to provide fair and strict management of the fund to ensurea stable life for fund subscribers and recipients in the future. We have also
introduced a defined-contribution corporate pension plan for employees
to whom the KDDI Version Job Style Personnel System is applied startingfrom August 2020, thereby supporting each employee’s life plan and autonomous asset building.
* Fund assets for the entire KDDI Group (including the companies affiliated with the fund)

FY2016FY2017FY2018FY2019FY2020

21

23

20

19

9

0

0

0

0

0

Frequency rate*1

0.78

0.82

0.77

0.77

0.04

Severity rate*1

0.01020.00380.00520.00650.00004

0.19

0.28

0.15

0.16

0.04

Lost time injury frequency rates*2

Pension System

Results* 1 Calculated based on the formula specified in the Survey on Industrial Accidents of Japan’s Ministry of Health, Labour and Welfare* 2 LTIFR: Lost time injuries frequency rate is (the number of workplace accidents with lost time) ÷ (the cumulative hours worked) × one million (lost time is defined as any period of one day or more)

Overtime Hours, Paid Holiday, Average Annual Salary, etc. (KDDI)KDDI

Results

FY2016FY2017FY2018FY2019FY2020

Average overtime hours per month *1

Unit: hours / month

27.5

19.6

19.0

19.0

19.5

Average overtime allowance per month *1

Unit: yen / month

96,39565,87963,54264,94364,242

Total annual actual hours worked *1

Unit: hour

Rate of annual paid holidays taken

Average annual salary *2

1,919.2

1,892.7

1,871.4

1,861.2

1,911.7

Unit: Number of days granted

19.7

19.7

19.7

19.7

19.7

Unit: Number of days taken

12.8

13.5

14.2

13.2

14.5

Unit: %

65.1

68.5

71.9

66.9

73.9

Unit: yen

9,532,136

9,363,399

9,528,103

9,300,662

9,484,602* 1 Applicable to KDDI employees in non-managerial positions* 2 Average annual salary includes bonuses and extra wages. There is no difference in total compensation (average annual salary) between male and female employees in the same grade and with the sameseniority.

62

KDDI Sustainability Report 2021

KDDI Sustainability Report 2021

63

Top Message

Message from Executive Officer of SustainabilityKDDI’s Material Sustainability Issues

FY2020 Material KPI ResultsKDDI’s Commitment to Sustainability

FY2021 Material KPIs

Feature Article 1: KDDI’s Response to Climate Change

Materiality 1

Materiality 2

Feature Article 2: KDDI Sustainable Action

Materiality 3

Materiality 4

Materiality

Materiality 5

Management Framework

Engagement

Materiality 6

Materiality 5

Respect for Human Rights and Fairness in Business• Pursuit of sustainable procurement • Prevention of corruption and bribery • Respect for workers’ rights • Promotion of fair and proactive communication

Human Rights
KDDI’s ApproachKDDI Group

Social Issue
As economic activities of companies around the world expand globally,
there is growing scrutiny in global society, concerning corporate attitudes toward human rights and the impact of business activities onhuman rights, including the establishment of the UN Guiding Principles
on Business and Human Rights. Not only companies and their groupcompanies but also their entire value chain are required to take measures to respect for human rights.
In terms of fair business practices, issues that need to be addressed include anti-bribery and anti-corruption measures, andcountermeasures for organized crime groups.

PolicyOur Risks and Opportunities
We assume there are social and economic risks where, through the
products and services provided by KDDI, customers become involved in mischief or crime committed through the internet, mobile
phones, or smartphones. In particular, we are concerned that therights of the socially weak (children, the elderly, the disabled, etc.)
may be infringed. In educational environments, there is a growing
need for data literacy education to enable children to properly use
ICT equipment without getting caught up in mischief or crime.
 e are aware that turning a blind eye to human rights violations canWdamage the value of corporate brand and hamper the developmentof a sustainable society. We believe that efforts to eradicate humanrights violations from business activities and from the wider society
can contribute to KDDI’s business growth.
In terms of privacy and data protection, there are risks that KDDIand its business partners may retain, process and access personal
information beyond specified purpose. These risks may increase especially in countries and regions with weak rule of law or lacking
strict laws protecting data.

Instruct response

Corporate Risk Management Division

Financialinformation(Business execution)

Sustainability
Committee

Audit

Executive Officers

ReportInternal Control Division

Instruct /Supervise

ReportInternal Audit Division

Deliberation
andReportingElect / Dismiss of Important
Matters

ReportDisclosure Committee

Full-time Directors

ReportKDDI Sustainable Action P.16-19
Human Rights P.65-67
Youth Education Activities P.67
Compliance P.68-70
Supply Chain Management P.71-73

ReportInstruct response

PolicyCorporate Management
Committee

Information Security Committee

KDDI Sustainability Report 2021

Initiatives

ReportReportReport64

PolicyRepresentative Director(Deliberate on important matters)

ReportAudit & Supervisory Board
Member’s Office

Audit

Instruct response

Pursuit of sustainable procurement
Respect for workers’ rights
Prevention of corruption and bribery
Promotion of fair and proactive communication

KDDI Group

Audit

Judgment on
appropriateness of accounting audit

Human Rights Subcommittee

Moving Forward

Audit &
Supervisory Board

Elect /
Dismiss/
Supervise

Environmental Subcommittee

KDDI GroupFY2021 Material KPIs

Accounting
Auditors

ReportAudit

Deliberation
andReportingof Important
Matters

Elect / Dismiss

ReportBoard of Directors

Instruct response

PolicyElect / Dismiss

Green Plan Subcommittee

KDDI Group

General Meeting of Shareholders
Elect / Dismiss

Deliberateissues

FY2021 Material KPIs

System▪ Organizational Structure

Business Ethics Committee

 DDI Smartphone and Mobile Phone Safety Classes are held byK
certified lecturers at schools all over Japan. Through these classes,
we teach children how to safely communicate through smartphones
and mobile phones. We also raise awareness and foster greater understanding of human rights on the internet.

KDDI

Remuneration Advisory Committee
Nomination Advisory Committee

 e established the Business Ethics Helpline, which is available anyW
time, to receive reports or provide consultation regarding violations

 ith our suppliers and all other stakeholders, we build partnerships onWmutual trust and conduct business in a fair and equitable manner. We also
use tools such as Responsible Procurement Surveys to ensure suppliers’
compliance regarding matters such as human rights and conflict minerals.

KDDI Code of Business Conduct (Basic Principles)Management Framework
At the Sustainability Committee (convenes twice a year) chaired by the
President, KDDI determines the policy on activities related to humanrights, develops and reviews the structure for their promotion and checks
their progress against targets. We have also set up a Human Rights Subcommittee under the Sustainability Committee to have discussions on
promotion of respect for human rights in accordance with the KDDI Group
Human Rights Policy and to prevent human rights violation in daily operations. We established the Business Ethics Helpline, which is available anytime, to receive reports or provide consultation regarding violations ofbusiness ethics, laws, or regulations including employees’ human rights
issues. Through an internal or external contact point established in collaboration with external experts, employees can report by e-mail, phone callor letter, in multiple languages.
We have also established a Sexual Harassment and Human Relationships Hotline staffed by external specialist counselors, an Employee Counseling Center staffed by internal employee consultants and a Harassment
Hotline staffed by employees at the Human Resources Division. In addition, in the KDDI Sustainable and Responsible Procurement Guidelines,
we prohibit forced labor, inhumane treatment, child labor and discrimination, and our business partners are requested to understand and follow
the guidelines. Any stakeholder can discuss or report their concerns. Privacy of those reporting concerns is protected at any contact point. Reports can be made anonymously. Strict confidentiality is observed to protect those seeking help by ensuring that they will not suffer any detrimental
treatment as a result of raising a concern.

Policyclares our efforts in all group companies to respect international standards
such as the Universal Declaration of Human Rights, as well as to preventand reduce negative influences on human rights and to promote education on the issue. We believe that diversity and inclusion is important for acompany to achieve sustainable growth, especially in driving innovation.
The KDDI Group Philosophy includes a vision of embracing diversity to facilitate the understanding. We are also aware that issues surrounding theprotection of personal information and the invasion of privacy by a government uniquely expose the ICT industry to human rights risks. We are determined to fulfill our social responsibility to address these issues by leading an industry-wide drive by means of continuous stakeholder
engagement for risk identification.

Advise e have set up a governance framework consisting of a range ofW
committees, including the Business Ethics Committee and Sustainability Committee, to drive our efforts. We also run initiatives to enhance
our employees’ understanding and practice of the KDDI Group
Philosophy and the Code of Business Conduct throughout the year.

of business ethics, laws, or regulations through an internal or external contact point established in collaboration with external experts.
Contact points can be reached by e-mail, phone call or letter, in
multiple languages. To protect whistleblowers, reports can be madeanonymously, and we work to protect privacy in surveys.

We at KDDI are striving to avoid discrimination based on race, faith, gender, social status, religion, nationality, age, sexual orientation, gender
identity, mental / physical disabilities, pregnancy, child birth as well as
tackling and eliminating labor practices that violate human rights, such as
forced labor and child labor. The KDDI Group considers the International
Bill of Human Rights and the International Labor Organization (ILO) Declaration on Fundamental Principles and Rights at Work to be the most fundamental policies for human rights, and set the policies and take initiatives
in reference to the UN Guiding Principles on Business and Human Rights
and the OECD Guidelines for Multinational Enterprises. The KDDI Code ofBusiness Conduct, which serves as a guideline for behavior of officers andemployees, defines our basic principles on respecting human rights andindividual characteristics throughout all our business activities.
The KDDI Group Human Rights Policy, established in 2016, also de-KDDI Group

Consult

Management Framework
We at KDDI respect the KDDI Code of Business Conduct and theKDDI Group Human Rights Policy. We will eliminate discrimination
based on race, faith, gender, social status, religion, nationality, age,sexual orientation, gender identity, family responsibilities (including
pregnancy) or (dis)abilities as well as correcting and eliminating labor
practices that violate human rights, such as forced labor, child laborand various types of harassment.

KDDI’s Approach (Human Rights)

Business Divisions / Group Companies

Human Rights Subcommittee
KDDI Group Human Rights Policy
KDDI Sustainable and Responsible Procurement Guidelines

KDDI Sustainability Report 2021

65

Top Message

Message from Executive Officer of SustainabilityKDDI’s Material Sustainability Issues

FY2020 Material KPI ResultsKDDI’s Commitment to Sustainability

FY2021 Material KPIs

Feature Article 1: KDDI’s Response to Climate Change

Materiality 1

Materiality 2

Feature Article 2: KDDI Sustainable Action

Materiality 3

Materiality 4

Materiality 5

Materiality

Management Framework

Engagement

Materiality 6

Materiality 5

Respect for Human Rights and Fairness in Business• Pursuit of sustainable procurement • Prevention of corruption and bribery • Respect for workers’ rights • Promotion of fair and proactive communication

Youth Education Activities

Human Rights

KDDI’s D&I Promotion System

KDDI

SystemWith the President as the top decision-making authority, KDDI is engaged
in company-wide efforts to promote diverse work styles and the professional advancement of women, employees with disabilities and LGBTQ+
people.
By specifying promotion of diversity and respect for human rights in
the KDDI Group Philosophy and the KDDI Code of Business Conduct, wehave clearly positioned diversity promotion as a management issue.
▪ KDDI’s D&I Promotion System
President Makoto Takahashi
The top decision-maker for D&I promotion
Direction / Report

Direction / Report

Officers

Corporate Sector
Human Resources Division
Human Resources Planning
Department(General Managers of Corporate Sector)

Direction / Report

General Managers
of each business sector /division / department
Direction /ReportSelection /developmentof eligible
employees

Sharing of
progress ofdevelopment

Persons in chargeof human resources
representing each
Cooperation
department

Human Resources Planning
Department
Department in charge of D&I Promotion
Supervisory responsibility:
General Manager of the Human
Resources Planning Department

Promotion of Diversity
and Inclusion

Employees

Initiatives Related to Businessand Human Rights

KDDI

ActivityKDDI participates in various initiatives to clearly identify the human rights
issues that global companies are expected to address and to reflect themin the reviewing process of initiatives and in the consideration phase ofmeasures.
Major Initiatives for FY2020• Participation in “the Business and Human Rights Seminar” organized by
Crean Corporation (October 2020)• Participation in “the International Conference on Business and Human
Rights” organized by the Japan Committee of the Caux Round Table(October 2020)• Participation in the seminar “Practice of Business and Human Rights in
Asia in the With Corona Era” co-sponsored by the Keidanren and the
UNDP (November 2020)• Participation in BSR (Business for Social Responsibility) Human Rights
Working Group as an observer (December 2020)

66

KDDI Sustainability Report 2021

Human Rights Impact Assessment

KDDI Group Activity

KDDI has identified human rights issues that it needs to address in accordance with the UN Guiding Principles on Business and Human Rights,
and reflected them in reviewing initiatives of human rights due diligenceand considering relevant measures.
In March 2020, we worked together with the nonprofit organization
BSR* to exercise human rights due diligence. We identified and assessed
actual or potential adverse human rights impacts that we may have on our
stakeholders through our own business activities and in our value chains.
As part of human rights due diligence, we are continuing initiatives tomitigate risks through provision of lectures, subsequent awarenessraising, consideration of future measures and formulation of action plans.
In doing so, we held lectures on Social Trend Surrounding Business andHuman Rights for managers of the five relevant departments in cooperation with BSR, enabling them to learn the background of the association
between business and human rights, human rights risks that companies
are facing today and what actions they need to take.
* BSR (Business for Social Responsibility)
As a BSR member company since 2014, KDDI has participated in conferences organized by BSR
on sustainability agenda including human rights, exchanged views with a variety of companies
and organizations, and reflected this experience in promoting its own initiatives.

Assessment Process
BSR human rights impact assessment covers all business activities byKDDI. First, we conducted desktop research on human rights risks facing
KDDI based on its Sustainability Report, website and other available publications, media reports and NGO research data about human rights issues
facing telecommunications business, and conducted analysis and made alist of internal control processes for each of the human rights risks identified. Then we interviewed the five relevant departments, asked their views
about specific initiatives and concluded the assessment.
Major Risks Identified
Main potential impacts on human rights identified are as follows:• Consideration of human rights in supply chains, such as forced, slave,
restrained or child labor• Privacy and data protection, children’s cyber safety• Freedom of expression in conflict-affected countries and high-risk countries, etc.
Future Initiatives
KDDI will prioritize identified impacts, develop action plans by department, and implement initiatives to reduce risks in cooperation with stakeholders. We will continue to monitor the effectiveness of the action plans,and exercise PDCA cycle of human rights due diligence.

Employee Awareness Raising

KDDI Group Activity

KDDI and our group companies in Japan strive to further raise awarenessof human rights based on the KDDI Code of Business Conduct in director
trainings, new employee trainings and position-based compliance trainings. Our awareness-raising initiatives include the provision of harassment
prevention seminars (compulsory to all line managers), regular e-mailnewsletters about the Code of Business Conduct and the Harassment
Prevention Guidebook posted on the intranet.

Initiatives to Promote LGBTQ+ Equality

KDDI

Activity

As shown in the enactment of a law permitting persons with gender identity disorder to change their gender status in Japan and the legalization ofsame-sex marriage in increasing number of countries and regions, attitudes toward LGBTQ+* equality are changing. However, businesses stilllag behind in the understanding of and support for LGBTQ+ rights.
In light of this, we at KDDI have been engaging in activities to promote
LGBTQ+ awareness within the company since fiscal 2013 in the effort toadvance understanding and spread awareness among employees.
* LGBTQ+ stands for lesbian, gay, bisexual, transgender, questioning (people who are unsure of
their own sexuality and don’t want to decide), and plus (indicating that there are many other sexualities).

Increase Allies
We at KDDI are engaged in an initiative to increase allies —supporters of
LGBTQ+ people. To LGBTQ+ people, the presence of allies around themboosts confidence. Allies can also promote dialogue about the issue in theworkplace. We give employees who have declared to be allies KDDI ALLY
stickers that they can display prominently to show their commitment tothe cause. As of July 2021, around 3,000 employees have declared themselves allies and are working on making our workplace a safe, happy
place for LGBTQ+ people to work in. In October 2020, we also launched
the Ally Community as a place to learn about the feelings of the parties
concerned and deepen our understanding about them, and we are working with approximately 40 volunteers.
Other Initiatives
Initiatives

Content

Inclusion of KDDI
Code of BusinessConduct(basic principle)

The code enshrines the principle of no discrimination or violation of dignity on the basis of sexual orientation andgender identity, in addition to gender, age or nationality,
etc., which is widely communicated within and outside thecompany.

Awareness-raising
activities for facilitating understanding

Seminars and e-learning courses to improve the understanding of LGBTQ+ issues have been conducted on an
ongoing basis since fiscal 2013.

Change of definitionof spouse andchildren, andapplication of internal
regulations

If the company regards an employee as having his / hersame-sex partner:• The employee is regarded as having his / her spouse in
all internal programs (since April 2017).
• Any child between the employee and his / her samesex partner is regarded as his / her child under all internal regulations (since June 2020).

Considerations inwork environment

Transgender employees are encouraged to use theirchosen working names, receive tailored health checks
and use universal toilets.

Promoting theunderstanding of
LGBTQ+ issues insociety• P articipation in forums and other events related to
LGBTQ+ issues and showcasing KDDI’s initiatives• Donations to LGBTQ+ support groups

Application of au
Family Discountscheme

The eligibility of family-oriented services such as au Family Discount has been expanded to include same-sex
partners when formal certification of same-sex partnership is provided.

External Recognition

KDDI

KDDI Basic Guidelines concerning Safeand Secure Communication for Young People

KDDI

PolicyWe take UNICEF’s Convention on the Rights of the Child (CRC) and Children’s Rights and Business Principles seriously. With regard to the CRC inparticular, which codifies children’s right to survival and development, we
ensure that children have access to education and do not face a digital
divide. Regarding Children’s Rights and Business Principles, we are committed to ensuring that KDDI’s services come with safety measures that
respect and promote children’s rights.
We offer safe and affordable services to young people and run awareness campaigns. We are committed to protecting children’s rights as we
endeavor to create a society where children can enjoy mobile and internet
connectivity.

Initiatives through KDDI Smartphone
and Mobile Phone Safety Classes

KDDI

Activity

At elementary schools, junior high schools and high schools across Japan, KDDI’s certified lecturers teach children rules and manners to abide
by when using a smartphone or mobile phone and go over teachable examples of trouble and incidents related to smartphones, mobile phones,
and the internet. The classes are designed to enable children to use theirown judgment and thereby avoid risks. In addition to visiting schools togive lectures, we also offer online lectures in response to the spread of
COVID-19. Since its launch in fiscal 2005, a total of 36,000 classes havebeen held with over 6,440,000 attendees. There is a wide variety of human rights-related risks posed by the internet, and people need to becareful not to spread misinformation or write hurtful comments on social
media, post identifying information, or too easily trust people met online.
These topics are covered by the lectures, and we are working to enable
children to safely use information technology while protecting their humanrights.
Community Participants: List of Initiatives

Activity &Results

External Recognition
KDDI Sustainability Report 2021

67

Top Message

Message from Executive Officer of SustainabilityKDDI’s Material Sustainability Issues

FY2020 Material KPI ResultsKDDI’s Commitment to Sustainability

FY2021 Material KPIs

Feature Article 1: KDDI’s Response to Climate Change

Materiality 1

Materiality 2

Feature Article 2: KDDI Sustainable Action

Materiality 3

Materiality 4

Materiality 5

Materiality

Management Framework

Engagement

Materiality 6

Materiality 5

Respect for Human Rights and Fairness in Business• Pursuit of sustainable procurement • Prevention of corruption and bribery • Respect for workers’ rights • Promotion of fair and proactive communication

ComplianceKDDI’s Approach (Compliance)

KDDI Group

PolicyWe recognize that in order to fulfill our social responsibilities through ourbusiness activities, raising compliance awareness throughout the group isa fundamental corporate management issue.
As a global corporate group, we continue to further enforce ourgroup-wide compliance framework.

KDDI Group Compliance andEnforcement Framework

KDDI Group System

We created the KDDI Code of Business Conduct to encourage the ethicalbehavior of employees along with a compliance mindset. In addition to
publication on the intranet, we distribute web shortcuts related to theKDDI Code of Business Conduct to business mobile devices lent to employees, enabling employees to check it whenever they are unsure what
action to take. Also, we established the KDDI Group Business Ethics
Committee as a decision making body for KDDI Group’s compliance related matters. The KDDI Group Business Ethics Committee is chaired by the
Chairperson who is a Representative Director, and members include directors and additional nominees appointed by the chair as required. They
hold a meeting once every half-year, and, in addition to assessing theconditions of each group company, the committee builds and supports
the enhancement of compliance frameworks. The committee is also responsible for helpline issues, corruption prevention and compliance issues, such as breaches of competition laws.
In addition, the committee formulates policies on raising awareness,
discusses countermeasures in case compliance violations occur and is responsible for the disclosure of such information as well as the preventionof recurrence. Reports on their activities are made available to all employees via the intranet.
▪ KDDI Group Compliance and Enforcement Framework
President, KDDI CORPORATION

ReportReportKDDI Group Business Ethics Committee
KDDI Group Business Ethics Committee Members
Chair: Chairperson, Representative Director(Other members are appointed by the chair)
Secretariat: General Administration Department,
General Administration Division

ReportFeedback /Instruction,etc.

• Formulate policies foreducational activities• Discuss countermeasures incase compliance violations
occur• Disclose information outsideof the company• Deliberate on measures toprevent recurrence

Contact (Anonymous)

Business Ethics Helpline
ReportAll Employees of KDDI Group68

KDDI Sustainability Report 2021

KDDI Group

Activity &Results

Examples of Initiatives in FY2020• Target: All KDDI employees
Promotion of the KDDI Group Philosophy• Target: All KDDI employees
Distribution of web shortcuts related to the KDDI Code of BusinessConduct to business mobile devices lent to employees• Target: Managers, Group leadersHarassment-prevention seminars• Target: New line managers
Training related to bullying and harassment• Target: Group company executives
Training for learning risk management in corporate operations, legal andaccounting knowledge, and labor management
Sustainability Promotion Framework(KDDI Group Philosophy, KDDI Code of Business Conduct)

Initiatives to Prevent Harassment

KDDI Group

Activity &Results

Examples of Initiatives in FY2020• Dissemination of the KDDI Code of Business Conduct and thorough implementation of actions• Training on harassment for department heads, group leaders, and line
managers• Harassment reporting questionnaire for employees• Dissemination of report counters such as the Sexual Harassment Hotline
and the Business Ethics Helpline by distributing whistleblowing cards toemployees• Responses to take when reported harassment cases have been substantiatedBusiness Ethics Helpline(Grievance Mechanism)

Feedback

KDDI Group System

We established the Business Ethics Helpline in 2006 to serve as a contact
point for all employees of KDDI, KDDI Group companies and business
partners who have questions or concerns about business ethics and legal
compliance, including human rights issues. The helpline is available anytime and can receive reports through an internal or external contact point
established in collaboration with external experts (Reports can be received
by e-mail, phone call or letter, in multiple languages).
Furthermore, we have enabled anonymous consultation and reporting
based on the Whistleblower Protection Act enacted in Japan in April 2006.
We are actively promoting the use of the Business Ethics Helpline andthe Sexual Harassment and Human Relationships Hotline by distributing
whistleblowing cards.
In 2020, there were 671 consultations and reports, but there was noconsultation or reporting of serious issues that require external announcement.
The KDDI Group Business Ethics Committee investigates the issues
consulted on and reported as required while protecting privacy, and when
the problems are detected, the committee members as well as the management team and the Audit & Supervisory Board members review the report and take corrective actions along with measures to prevent recurrence.
If it is identified that its business activities has caused, or had any adverse impact on human rights, KDDI ensures that it will provide relief for
those affected.
▪ Business Ethics Helpline
Whistleblowers(Employees of the KDDI Group or partner companies)
Report /consultation

Report back /response

Notificationof receivinga report*

Internal contact point
KDDI Group
Business Ethics Committee

Corporate Management Committee

Consult

Compliance Education, Training
and Awareness Raising

Report back /response

Report /consultation

Report back /response

External contact point
Legal offices contact point foroverseas subsidiaries

Investigation / analysis /improvement /recurrence prevention

Relevant department’s managers* Consultations that the external contact point received are relayed to the internal contact point,
keeping anonymity for the whistleblowers▪ Compliance Consultations Received in the Last Two Years (KDDI Group) Consultations

Unit: case

FY2019FY2020Compliance consultations

469

671

Breakdown: harassments

173

220

Breakdown: other compliance violations

296

451

Elimination of Organized Crime Groups
KDDI Group(Basic Approach and Implementation Status)

PolicyOur Basic Policy for the Creation of Internal Systems takes a firm stand on
countering organized crime groups.
In addition to rules defining initiatives for blocking off any relations withsuch groups, the KDDI Code of Business Conduct, which defines basic
principles to be followed and enforced by all officers and employees, takes
a firm stance against organized crime groups, rejecting any requests forillicit funds and refusing to comply with any demands.
Basic Policy for Constructing an Internal Control System

Anti-Corruption Measures

KDDI Group System

Basic Approach to Anti-corruption
To prevent corrupt practices, the KDDI Code of Business Conduct defines
the principles of promoting fair business activities and the conscientious
performance of duties and prohibits activities such as bribing politicians
and public officials, along with other similar types of corruption.
Specifically, this includes any business entertainment, gift and invitation given to a public official in the course of business with governmental
agencies that is prohibited under the National Public Service Act and otherapplicable laws and regulations.
KDDI has established that, when dealing with overseas governments
and companies, employees will not provide any business entertainment,
gift or invitation as stipulated in the UN Convention against Corruption as
well as the laws and regulations of the relevant countries against foreign
corrupt practices and unfair competition.
In addition to the above, we also stipulate the elimination of organizedcrime groups and prohibition of insider trading and anti-competitive behavior, and any violations will be punished in accordance with internal regulations. In order to prevent these violations, we use e-learning courses
and e-mails to inform all employees and raise their awareness. In FY2020,
there were no employees subject to disciplinary dismissal for violating theanti-corruption provisions of the KDDI Code of Business Conduct.
Sustainable Procurement
We also urge business partners to comply with the KDDI Sustainable andResponsible Procurement Guidelines, which defines rules for prohibition ofcorruption, bribery, abuse of power and giving or receiving illicit funds.
Political Contributions
For any political donations we make, we observe the Political Funds Control Act and follow the KDDI Code of Business Conduct and the KDDI
Sustainable and Responsible Procurement Guidelines.
In fiscal 2020, we made political donations totaling 6 million yen in Japan, and there were no cases of legal action against us concerning corruption or bribery.

KDDI Sustainability Report 2021

69

Top Message

Message from Executive Officer of SustainabilityKDDI’s Material Sustainability Issues

KDDI’s Commitment to Sustainability

FY2020 Material KPI Results

FY2021 Material KPIs

Feature Article 1: KDDI’s Response to Climate Change

Materiality 1

Materiality 2

Feature Article 2: KDDI Sustainable Action

Materiality 3

Materiality 4

Materiality

Materiality 5

Management Framework

Engagement

Materiality 6

Materiality 5

Respect for Human Rights and Fairness in Business• Pursuit of sustainable procurement • Prevention of corruption and bribery • Respect for workers’ rights • Promotion of fair and proactive communication

Supply Chain Management

CompliancePreventing Anti-competitive Behaviors
The KDDI Code of Business Conduct defines rules that prohibit anticompetitive behaviors, and we make efforts to ensure that all employees
comply with competition laws.
In addition to competition laws, we stipulate that local laws and regulations in each country and region on labor, tax, the environment, monopolies and consumer protection must be examined thoroughly to ensure fullcompliance. Under the KDDI Sustainable and Responsible Procurement
Guidelines, we demand our business partners to not engage in any activities that inhibit fairness, transparency or freedom of competition. However,in January 2021, KDDI received administrative guidance from the Ministry

KDDI Group

Policyof Internal Affairs and Communications to thoroughly implement measures
to prevent a recurrence due to the omission of reporting by 12 affiliatesthat should have been designated as telecommunications carriers subject
to the provisions of Article 27-3, Paragraph 2 of the Telecommunications
Business Law. KDDI is working to prevent a recurrence by reviewing ourinternal checking system.
In fiscal 2020, there were no other legal actions against us concerning
anticompetitive or monopolistic conduct.
We fully adhere to these related regulations and continue the appropriate business operations.

Responsible Tax PracticeKDDI Group

Policy &SystemBasic Approach to Tax Practice
We at KDDI Group pursue the satisfaction and benefits of our customers
while fulfilling our social responsibilities not only by complying with international rules and applicable tax laws and regulations in all operating
countries and regions, but also by complying with and following the spiritof the law and paying tax appropriately to engage in tax fairness, andthereby strive to maximize shareholders’ value.
In fiscal 2020, we paid 331,451 million yen of corporate income tax,
which accounts for 31.9% of gross income. KDDI Group submits the Securities Report after undergoing accounting audits by external accounting
auditors and obtaining approval of the CFO (Executive Vice President,
Representative Director / Executive Director, Corporate Sector) and thePresident.
As KDDI Group businesses become increasingly multinational andhave more international transactions, our top management, including thePresident, is working to develop and promote a tax strategy that properly
recognizes international tax risks and regards such risk as an important
issue that is directly linked to management, while utilizing external specialists to have a deeper understanding of the latest tax updates. In addition, the head office is engaged in education for employees across theworld and receives tax practice support from external specialists. With
these initiatives, we strive to maintain and improve tax governance.
Also, with regard to the tax returns it prepares, KDDI has them reviewed by an external tax accountant corporation and obtains approval of
the CFO before submitting them to the tax authorities.

ing (BEPS), we are committed to ensuring proper tax payment in all operating countries including Japan, by aligning tax payments with the location of our economic activity and value creation, in line with the revision oftax regulations to tackle BEPS.
In particular, we handle transfer pricing taxation and anti-tax haventaxation, which are critical international taxation issues.

Tax Transparency and Relations with Tax Authorities
To maintain the transparency of tax affairs, we prepare and submit an annual report on our activities by country in accordance with tax laws in Japan. We also work to build trust relationship with tax authorities in eachcountry by conducting timely and appropriate disclosure of tax-related information, such as a business summary report on the overall status of theGroup’s activities in line with the relevant laws, regulations and disclosure
standards of each country and region in which we operate. With these
initiatives and prior inquiries as required, we strive to reduce tax risks.

Amount of Tax Paid Efforts to Prevent Tax Avoidance
In accordance with OECD’s Action Plan on Base Erosion and Profit Shift-70KDDI Sustainability Report 2021

Transfer Pricing Tax Compliance
The KDDI Group’s business is primarily in telecommunications and ancillary businesses in Japan, and its foreign-related transactions are few
compared with those of other multinationals of similar size.
Where foreign-related transactions are conducted, the prudence ofthe foreign-related transaction is confirmed in compliance with the laws
and regulations of the relevant countries, and transfer pricing documentation is prepared. Additionally, depending on the size of the foreign-relatedtransaction, we pay the appropriate taxes by utilizing various systems in
consultation with the tax authorities.
Tax Haven Tax Compliance
We do not use tax-free or low-tax jurisdictions (so-called “tax haven jurisdictions”) for tax avoidance. When an investment is made in a tax havenarea for business reasons, the anti-tax haven taxation system is appliedfollowing the laws and regulations of the relevant countries. If the company is subject to anti-tax haven taxation, it will file the appropriate tax return and pay the tax due.
Unit: 100 million yen

FY2020
Japan

2,937

97.7%

UK

24

0.8%

France13

0.4%

Mongolia

10

0.3%

Germany4

0.1%

Others

19

0.7%

3,007

100.0%

Total

KDDI’s Approach(Supply Chain Management)

KDDI

PolicyIn today’s world where globalization has progressed, corporate procurement activities are influenced by social issues around the world.
We believe that driving sustainability initiatives not only within the company but throughout our supply chain will make our business more sustainable. KDDI will further improve our responsible procurement standards
to strengthen partnerships with our business partners while collaboratingwith them to prevent labor issues related to human rights and safety andhealth from occurring.
In addition, we are enhancing the various forms of support we provide
to distributors, who are important partners.

KDDI Sustainable andResponsible Procurement Policy

KDDI

PolicyAs a general telecommunications operator that supports social infrastructure, we are working on risk awareness and enhancement of supply chain
risk management with all business partners inside and outside Japan inline with the KDDI Sustainable and Responsible Procurement Policy to fulfill our social responsibility at a higher level and avoid procurement risks as
far as possible. The policy defines eight applicable themes for appropriate
supply chain management: Co-existence and Co-prosperity with Business
Partners, Consideration of Global Environment, Fair and Equitable Trade,
Considerations for Human Rights and Labor Environment, Fair Management of Information, Ensuring Quality and Safety, Co-existence with Society and Applicable Scope.
To offer satisfactory services to our customers and achieve the sustainable development of the company and society together with our business partners, we are extending our demands and support based on thispolicy to all business partners inside and outside Japan. This policy isavailable in four languages: Japanese, English, Chinese, and Korean.
In addition, KDDI conducts risk assessments of new business partners from environmental and social aspects, utilizing external research organizations. KDDI investigates the scale, background, credibility, businessconditions, financial conditions, etc., and if they meet a predetermined
standard, we open business with them. In case of a serious violation ofcompliance, such as those related to human lives, we deal with issues, including conducting reviews of transactions, until corrective actions arecompleted.
Through Responsible Procurement Surveys targeting our tier-1 suppliers, we have also conducted surveys of tier-2 and tier-3 suppliers on issues such as human rights and conflict minerals since the fiscal year
2018. In this way, we confirm each supplier’s compliance with the KDDI
Sustainable and Responsible Procurement Policy.

Procurement Guidelines and Responsible
Procurement Promotion System

KDDI

System

We established the KDDI Sustainable and Responsible Procurement
Guidelines for implementing its procurement policy and published them on
our website (in Japanese and English). The guidelines were formulated
based on the Responsible Business Alliance (RBA; formerly called theElectronic Industry Citizenship Coalition (EICC)) code of conduct and Responsible Business Conduct Guidelines published by the Japan Electronics and Information Technology Industries Association (JEITA). The guidelines provide criteria to consider in selecting business partners andprocurement items, not only for quality, price, delivery and stability of supply but also for environmental and social impacts. In response to the results of the human rights impact assessment conducted in March 2020,
we revised the content of the guidelines in March 2021 to further include
consideration for human rights.
We also conduct surveys targeting our leading business partners to
support their understanding of our responsible procurement initiatives andto communicate the situation and progress. In case of compliance violations committed by business partners, KDDI requests them to identify thecauses and requests improvement. We offer guidance and support action
if necessary.
In the fiscal year 2021, we joined RBA Online and are conducting risk
assessments by utilizing it for self-diagnosis (first-party audits) and integration into Responsible Procurement Surveys questions and a visit-audit
checklist for customers.
Based on our Code of Business Conduct, we do not perform any
transactions with organized crime groups.
KDDI Sustainable and Responsible Procurement Guidelines
Promoting Green Procurement

Conflict Minerals

KDDI

Activity

The U.S. government requires companies listed in the United States todisclose the use in their products of conflict minerals* or minerals produced in the Democratic Republic of the Congo and other disputed regions.
Although KDDI is not listed in the United States, we are promoting
initiatives to eliminate the use of conflict minerals through Responsible
Procurement Surveys in collaboration with our customers to fulfill our social responsibilities in our procurement activities.
* Tantalum, tin, gold, tungsten, cobalt and other minerals designated as such by the U.S. Secretaryof State are applicableKDDI Sustainable and Responsible Procurement Policy

KDDI Sustainability Report 2021

71

Top Message

Message from Executive Officer of SustainabilityKDDI’s Material Sustainability Issues

KDDI’s Commitment to Sustainability

FY2020 Material KPI Results

FY2021 Material KPIs

Feature Article 1: KDDI’s Response to Climate Change

Materiality 1

Materiality 2

Feature Article 2: KDDI Sustainable Action

Materiality 3

Materiality 4

Materiality 5

Materiality

Management Framework

Engagement

Materiality 6

Materiality 5

Respect for Human Rights and Fairness in Business• Pursuit of sustainable procurement • Prevention of corruption and bribery • Respect for workers’ rights • Promotion of fair and proactive communication
Supply Chain Management

Promoting Responsible Procurement

KDDI

Responsible Procurement Surveys
We have conducted a survey targeting our leading business partners using a Responsible Procurement Check Sheet since fiscal 2014.
The survey covers 42 items related to the seven themes, namely human rights and labor, safety and health, environment, fair and ethicaltrade, quality and safety, information security and contribution to society,as defined in the KDDI Sustainable and Responsible Procurement
Guidelines based on the Responsible Business Alliance (RBA; formerly
called the Electronic Industry Citizenship Coalition (EICC)) code of conduct and Responsible Business Conduct Guidelines published by theJapan Electronics and Information Technology Industries Association(JEITA). In addition to them, it also covers other items that KDDI deems
pertinent to the company. Through this survey, we make sure of sharing
the KDDI Sustainable and Responsible Procurement Policy and othernecessary information with suppliers. In fiscal 2020, we asked our key
suppliers representing approximately the top 90% of the total value oforders to answer the survey and received responses from over 96% ofthem. To gradually improve our responsible procurement standards
while maintaining stable procurement as a general telecommunications
operator, we will further drive initiatives that are determined and rede-Activity

fined in the four newly set categories, namely “Maintain and improve
communication with suppliers,” “Survey actual status of suppliers,” “Establish supply chain management (SCM) based on responsible procurement” and “Update rules and procedures.” Specifically, we will check thestatus of each supplier’s responsible procurement initiatives through aquestionnaire in line with the guidelines, and take necessary measures
to reduce risks, for example by conducting additional on-site researchfor suppliers with any risk from perspectives, such as human rights andlabor, quality and safety, and environment. To manage high risk suppliers, we added a new set of questions to the Responsible Procurement
Surveys from the fiscal year 2021, leading to strengthened risk assessment in the supply chain. The questions are divided into two parts: oneon human rights including conflict minerals, and the other on the environment including CO2 emissions for scopes 1, 2, and 3. If a supplier isdeemed to be at high risk, we will conduct additional surveys and corrective measures through on-site audits. As a result of the survey in thefiscal year 2020, there were no suppliers that required additional investigations or corrective actions.

▪ Establishment of KDDI Sustainable and Responsible Procurement Policy and Improvement of SCM

We aim to achieve both gradual improvement of our responsible procurement standards and stable procurement as a general telecommunications operator through establishing KDDI Sustainable and Responsible Procurement Policy Policy and improving SCM* in cooperation with suppliers.
* Supply Chain Management

FY2020Redefine KDDI Sustainable andResponsible Procurement Policy

Viewpoint

Maintain and improve
communication with suppliers

FY2022
Expand / deepen the scope of SCM initiatives

FY2021
Implement new SCM measures
FY2020H1

FY2021
H2

surveyH1

FY2022
H2

surveyOn-site research

H1

H2

surveyOn-site researchOn-site research

Survey actual status of
suppliers

Determine areas to be probed

Detailed research of areas
to be probed

Expandand / or deepen the scope

Establish SCM

Examine proposed measures

Implement measures

Further development

Revise KDDI Sustainable and Responsible Procurement Policy

Revise contracts, agreements,
etc.

Update rules and procedures

Revise guidelines

Visit, Exchange Views with, and Conduct Inspection of Suppliers
We make sure that we visit a supplier’s worksite, exchange view andshare information about responsible procurement initiatives in a bid tobuild a better partnership with the supplier. We visited seven suppliers including tier-2 suppliers in fiscal year 2020.
Using the KDDI Industrial Waste Management Guidelines, we holdregular inspections each year of the industrial waste management compa-

72KDDI Sustainability Report 2021

Initiatives to Improve Employees’
Procurement Skills
TargetEmployees
responsible for
procurement

KDDI

Activity

Initiative details• Training program for newly appointed personnel• Compliance training• Recommendation to pass the grade B exam for Certified
Procurement Professionals

Support for Distributors

KDDI

SystemWe at KDDI support our distributors in their various business activities.
This includes our support when they open or move to new locations, inorganizing staff, and in staff capacity building through various in-store staff
training and qualification exams.
In its agreement with distributors, KDDI requires them to have no involvement in anti-social forces, engage in fair trade practices and conduct
proper business activities.
▪ Major Education and Training Activities

Initiatives for au Shops

KDDI

Activity

As of the end of March 2021, there are 186 au Style stores (including directly managed stores) nationwide, 1,917 au Shops nationwide, and 231
UQ Spot stores nationwide, all of which specialize in KDDI products andservices. These shops including au Style and au/UQ mobile Shops are theplace where customers actually see and experience au/UQ mobile products and services. KDDI products and services are also widely available at
Toyota car dealers and electronics retail stores in addition to au Style and
au Shops.
We at KDDI consider that improving the service quality of au Style, au
Shops and UQ Spot—as specialty stores for a telecommunications operator—and other au distributors to be particularly important to maximizing
positive customer experiences. We continue to support them in various
ways to further improve skills of the staff.
Since training staff is essential to improving the service quality of all
distributors, we help the staff learn effectively through e-learning in which
they can gain basic operational knowledge and new product informationand online sales training. We also implement a qualification system toevaluate staff skills and store management capabilities and encourage
their sales efforts to achieve high customer satisfaction by awarding the titles “Advisor,” “Master,” and “Expert.” Additionally, we will introduce acertification system for “education managers” to support the developmentof human resources at sales agents. Moreover, we hold the “CX AWARD,”an annual contest to present various initiatives at au Style and au Shops,
and share praise and good practices.
Moreover, KDDI employees periodically conduct data security audits
at au Shops and provide feedback based on the audit results. In this way,
we are working to raise security awareness among staff handling personal
information and to improve the accuracy of operations.

TargetInitiative details

Frequency

For distributors’
management

Sales role-playing training session using
examples of inappropriate conducts(Expected good practices to be cascaded by
distributors’ management to their staff)

Once ayear

For in-store staff

E-learning “Compliance General Course”
Distribution of various training materials(examples of misconducts, etc.)

Once ayear

For in-store staff

Awareness raising through Compliance Video

Once ayear

nies that we have consigned to dispose of our industrial waste. Additionally, once a year, we hold onsite checks of recycling companies that perform mobile phone disassembly.
We inform each company of the results as feedback. If correction isnecessary, we create an action plan and work on the improvement jointlywith the company.

KDDI Sustainability Report 2021

73

Top Message

Message from Executive Officer of SustainabilityKDDI’s Material Sustainability Issues

FY2020 Material KPI ResultsKDDI’s Commitment to Sustainability

FY2021 Material KPIs

Feature Article 1: KDDI’s Response to Climate Change

Materiality 1

Materiality 2

Feature Article 2: KDDI Sustainable Action

Materiality 3

Materiality 4

Materiality

Materiality 5

Management Framework

Engagement

Materiality 6

Materiality 6

An Energy-Efficient, Circular Economy• Energy efficiency improvement and utilization of clean energy • Zero emissions and 3Rs • Reduction of society’s impact on environment through ICTs

Environmental ManagementKDDI’s ApproachKDDI Group

Social Issue
In 2015, the world adopted the Paris Agreement, which calls for a
global effort to hold the increase in global temperature to well below
2°C above pre-industrial levels and to pursue efforts to limit it to 1.5°C.
Many countries around the world have set targets related to climatechange and are working to address it. In addition, the recommendations of the Task Force on Climate-related Financial Disclosure (TCFD)
were released in 2017, and the Corporate Governance Code, which
was revised in 2021, calls for sustainability initiatives and disclosure. Aspart of responses to climate change, companies around the world are
required to set GHG emission reduction targets and to take and disclose measures against global warming.

Management Framework
KDDI Environmental Charter
ManifestoKDDI Group recognizes the importance of fulfilling its duty as a responsible global corporate citizen to conserve and protect the Earth’s irreplaceable environment so that it can be inherited by future generations.
We are committed to pursuing our business in eco-conscious ways,
through programs of activities that span the entire group companies.
Action Guidelines

1. We will strive to evaluate the quantitative impact of our activities as acompany on the global environment, implement effective environmental
protection programs and continuously improve these programs. Specifically, we will:(1) Develop and operate environmental management systems necessary to make continuous improvements in such environmental
fields as energy conservation, resource conservation and waste
reduction.

PolicyOur Risks and Opportunities
With responses to intensifying disasters caused by the impact of global
warming becoming a social issue, KDDI, and the wider telecom carriers, must also consider its impact on the environment when making
capital investments and developing services.
Each country and region has regulations and measures that influence corporate business activities, such as energy-saving standards,
carbon taxes, and emissions trading. We consider such regulations
and measures as potential risks to business continuity and growth.
In order to comply with these regulations, we are building environmentally responsible bases, as well as providing services that save energy and reduce society’s environmental impact through the use of
ICTs, creating an opportunity for our business growth.

(2) Comply with environmental laws, ordinances and other regulations and requirements.
In particular, we will promote measures to reduce our electricity
consumption from the perspective of preventing global warming.
(3) Promote communication through the appropriate disclosure of information.
2. We will strive to develop and offer services that reduce the environmental impact through the use of next-generation information technologies.
3. We will contribute to the development of a recycling-oriented society
by promoting measures to mitigate and reduce the environmental
impact of activities that necessarily entail mass consumption, suchas the supply of mobile handsets.
4. We will promote corporate purchasing policies that favor eco friendly
products and equipment.
5. As a responsible corporate citizen, we will contribute to society andlocal communities through activities that promote an affluent societythat is in harmony with the environment.

FY2021 Material KPIs

KDDI GroupKDDI’s Approach (Environment)

KDDI Group

PolicyOur attitude toward environmental conservation is defined in the KDDI Environmental Charter, which regulates the Manifesto (Approach to Global
Environmental Problems), which is its highest concept, and the Action
Guidelines for setting the direction of its concrete initiatives.
KDDI Environmental Charter

Net-Zero CO2 Emissions by 2050

PolicyKDDI declared in the KDDI Sustainable Action, KDDI’s SDGs formulated in
May 2020 with an eye to the year 2030, that we would proactively drive ashift to renewable energy to substantially achieve net-zero CO2 emissions
by 2050 and reduce the environmental burden on society through the useof ICT.

The Fourth Environmental Conservation Plan: KDDI GREEN PLAN 2030
We are promoting a new Environmental Conservation Plan: KDDI GREEN
PLAN 2030. This long-term plan is based on the objectives of the Paris
Agreement adopted at COP21 in 2015 and Japan’s Plan for Global
Warming Countermeasures. In July 2021, we raised our target for our own
CO2 emissions (7% reduction from fiscal year 2013) to 50% reduction
from fiscal year 2019. In order to achieve carbon neutrality, we continue
our efforts to reduce CO2 emissions by utilizing renewable energy and im-

KDDI

KDDI

Policyplementing other measures. We will disclose our progress each year aswell as improve and revise the plan when we need to.
50% Reduction of Our Own CO2 Emissions by FY2030 toward Realizationof Carbon Neutrality (Japanese only)KDDI GREEN PLAN 2017-2030 FY2020 Results

ClimateActionClimateAction- Reduce KDDI’s (Japan, non-consolidated) CO2 emissions by 50% in FY2030-compared
Reduce toKDDI’s(Japan, non-consolidated) CO2 emissions by 50% in FY2030
FY2019*1*1
compared
to FY2019- Use
renewable energy,
and upgrade to highly energy-efficient data centers andmobilephonebasestations,- Use renewable energy,etc.
and upgrade to highly energy-efficient data centers and2 emissions by providing KDDI’s- Contribute
reductions
society’s COmobile tophonebasein stations,etc.
information and communication technology (ICT) services

Climate Action- Contribute to reductions in society’s CO2 emissions by providing KDDI’s
information and communication technology (ICT) services*1 This FY2030 target for CO2 emission reductions is on the path for KDDI to achieve net-zero CO2 emissions by 2050.
In order to achieve this target, KDDI will make use of various approaches to reduce CO2 emissions, including the use of renewable energy.

*1 This FY2030 target for CO2 emission reductions is on the path for KDDI to achieve net-zero CO2 emissions by 2050.

Creating
a Societywith
Material
Circularity
In order to achieve
this target, KDDIwill makeuse of various
approaches to reduce CO emissions, including the use of renewable energy.
2- Maintain zero emissions from retired telecommunication facilities*2- Maintainmaterial a
recyclingrate ofwith
99.8% Material
for used mobile
phonesCreating
Society
Circularity*2 Zero emissions are defined as a final disposal rate of 1% or less.

Creating a Society with
Material
Circularity

Conservation of
Biodiversity- Maintain zero emissions from retired telecommunication facilities*2of Biodiversity- Conservation
Maintain material
recycling rate of 99.8% for used mobile phones- *Active
promotionof initiatives
usingrate
ICTs
ecosystems
2 Zero emissions
are defined
as a final disposal
of 1%toorconserve
less.

PolicyConservation of Biodiversity

FY2021 Material KPIs

- Active promotion of initiatives using ICTs to conserve ecosystems

Moving Forward

KDDI Group

Energy efficiency improvement and utilization of clean energy
Zero emissions and 3Rs
Reduction of society’s impact on environment through ICTs

PolicyInitiatives
KDDI Sustainable Action P.16-19
Environmental Management P.75-81
Environmental Performance P.82-89

KDDI Group

PolicyKDDI’s Initiatives toward Carbon Neutrality
KDDI and Nokia Agreed on the First Demonstration Test in Japan to Reduce Base Station Power Consumption by up to 50% with AI Control (Japanese only)
KDDI, Mitsubishi Heavy Industries, NEC Networks & System Integration Corp. Started Demonstration Tests for Utilization of Immersion Cooling Equipment andRealization of Small Data Centers (Japanese only)
au Denki Started Offering an “Eco Plan” with a Real 100% Renewable Energy Ratio from 1 September, Which Allows Customers to Donate 2% of Their
Electricity Bill to Environmental Conservation Activities (Japanese only)

74

KDDI Sustainability Report 2021

KDDI Sustainability Report 2021

75

Top Message

Message from Executive Officer of SustainabilityKDDI’s Material Sustainability Issues

KDDI’s Commitment to Sustainability

FY2020 Material KPI Results

FY2021 Material KPIs

Feature Article 1: KDDI’s Response to Climate Change

Materiality 1

Materiality 2

Feature Article 2: KDDI Sustainable Action

Materiality 3

Materiality 4

Materiality

Materiality 5

Management Framework

Engagement

Materiality 6

Materiality 6

An Energy-Efficient, Circular Economy• Energy efficiency improvement and utilization of clean energy • Zero emissions and 3Rs • Reduction of society’s impact on environment through ICTs
Environmental Management

Responses to the TCFD Recommendations

KDDI

KDDI announced our support for the Task Force on Climate-related Financial Disclosure (TCFD) in April 2021. We will strive to proactively disclose
information based on the disclosure framework of governance, strategy,
risk management and metrics and targets in accordance with the TCFD
recommendations. We will also take concrete measures to address climate change and put them into actions.

Risk Management

Governance▪ Scenario Analysis Results

KDDI has the Sustainability Committee, chaired by the President and consisting of key members of the Board of Directors etc., to deliberate on issues related to sustainability such as the resolution of social issues
through businesses (SDGs), social contributions, and measures against
climate change. The Committee is responsible for following up on and discussing important issues and initiatives related to climate change at KDDI,
monitoring risks and opportunities, and approving reports and other matters. In the first half of the fiscal year, the Committee confirms the previous
fiscal year’s performance against targets, analyzes the causes and confirms countermeasures in the event that targets have not been achieved.
In the second half of the fiscal year, it confirms the progress of the current
fiscal year’s targets and sets targets for the next fiscal year.
In addition, the Board of Directors receives reports from the Sustainability Committee on climate change every quarter, and supervises and directs the implementation of measures for important issues and initiatives.

The 2°C scenario in which a carbon-free society will be rapidly realized (afuture in which the goal to hold the increase in the global average temperature below 2°C (including 1.5°C scenario) above pre-industrial levels
is achieved)

In May 2020, KDDI announced the KDDI Sustainable Action, KDDI’s
SDGs with an eye on 2030, and declared that we would aim to improveenergy efficiency and achieve net-zero CO2 emissions by 2050, regarding
conservation of the environment as one of the social issues. Specifically,
we carried out two types of analyses: the 2°C scenario in which a carbonfree society will be rapidly realized (the increase in the global averagetemperature is held below 2°C above pre-industrial levels) in response to
the Paris Agreement adopted at COP21, and the 4°C scenario in which
physical impact will become apparent due to lack of measures against
climate change (the increase in the global average temperature is held at
4°C above pre-industrial levels). As a result, we announced the upwardrevision of our CO2 emissions reduction target in July 2021 and raised it
to “50% reduction in CO2 emissions by FY2030 compared to FY2019,”
believing that it was necessary to implement activities based on a targetof higher standards than “7% reduction in CO2 emissions by FY2030
compared to FY2013” announced in March 2017. At the same time, we
renamed the KDDI Environmental Conservation Plan “KDDI GREEN PLAN
2017-2030” set out in March 2017 into “KDDI GREEN PLAN 2030” andannounced that we would further contribute to environmental
conservation by promoting climate action, creation of a recycling-oriented
society and conservation of biodiversity under the KDDI Environmental
Charter.

Reference: IEA (International Energy Agency) World Energy Outlook 2018 Sustainable Development Scenario (SDS), IEA Energy Technology Perspectives 2017 Beyond 2°C Scenario(B2DS), ETP (Energy Technology Perspectives) 2017, 2020

Analysis ofTransition Risks

Policy and Legal

StrategyKDDI’s Risks
Carbon taxation risk * 1

Planning to switch from fossil
fuel power to renewable energy power

Tokyo
Metropolitan
Ordinance/
Emission
Regulations

Risk of increased costs ofbuying credits (allowances)for unachieved CO2 emission reductions

Purchase of emission credits
for the second plan period tocompensate for the expectedunachieved emission reductionin the third plan period(approx. 50,000 t-CO2)

Introduction of
New Technologies
to Reduce Power
Consumption and
CO2 Emissions

Market and
Reputation

Risk of increased costs for
AI technology at base stations, development of newenergy-saving technologies
for various facilities,
CCUS* 2 development,
etc.
Risk of losing corporate
reputation and subscribers
due to unmet targets anddelays in renewable energy
initiatives

Investment in the developmentof various technologies

Planning to switch from fossil
fuel power to renewable energy power* 1: Since the estimated CO2 emissions in FY2030 are approximately 500,000 tons-CO2, in thecase of carbon tax of 7,700 yen/t-CO2, it is assumed that an annual tax of about 3.85 billion
Yen will be levied.
* 2: Carbon dioxide Capture, Utilization and Storage

The Corporate Risk Management Division, which is in charge of risk management for the KDDI Group, identifies risks twice a year including thoserelated to climate change and all operational risks that could have a significant impact on our financial and management strategies. Of the risks
identified, those related to climate change are managed using an environmental management system (EMS) approach, utilizing the ISO environmental management system. With regard to the risks to be managed,
each relevant department sets quantitative annual targets for risk reduction and evaluates the progress on a quarterly basis. Issues pointed out inthe progress evaluation are reported to the Environment Subcommittee, asubcommittee of the Sustainability Committee, and risks and opportunities
related to the entire company and all divisions are discussed and approved by the Sustainability Committee.
Metrics and Targets

Since the fiscal year 2012, KDDI has been calculating the greenhouse gas
emissions of our supply chain (Scopes 1, 2, and 3 for KDDI alone) toquantitatively understand its environmental impact and manage the risks
and opportunities that climate change poses to the company. The following metrics and targets were announced in July 2021, and we will continue to promote activities to reduce greenhouse gas emissions.
Emissions in
FY2019 (t-CO2)

Categories

Targets

Direct GHG emissions that occur
Scope 1 from sources that are controlled
or owned by the organization

6,581

by FY2030
50% reduction compared to FY2019

Scope 2

Indirect GHG emissions associated with the usage of electricity,heat and steam provided byexternal actors

1,041,559

by FY2030
50% reduction compared to FY2019

Scope 3

Indirect GHG emissions other than
Scope 2 (emissions by external
actors related to the organization’s
activities)

5,410,384

by FY2030
14% reduction compared to FY2019

Internal Environmental Audits

KDDI Group System

We at KDDI Group conduct internal environmental audits as required by
ISO 14001. Auditors are selected from each regional office by the Sustainability Department to ensure objectivity and independence.
In fiscal 2020, 16 divisions and 35 offices in KDDI and group companies were audited. Referring to the internal environmental audit results offiscal 2019, emphasis was placed on (1) reflecting each corporate issue toits environmental targets, (2) compliance with environmental laws and regulations, and (3) EMS operation. Self-checks using a check sheet wereconducted along with audit interviews by auditors. There were nonon-conformances, and eight items requiring improvement or receiving
proposals.
KDDI Group ISO 14001 Certification Acquisition(certified by Japan Quality Assurance Organization, JQA)
As of the end of March 2021:

KDDI Corporation, OKINAWA CELLULAR TELEPHONE COMPANY,
KDDI Research, Inc., KDDI Technology Corporation,
KDDI Engineering Corporation,
Japan Telecommunication Engineering Service Co., Ltd.,KDDI Foundation, Telehouse International Corporation of Europe Ltd. (U.K.),
Chubu Telecommunications Co., Inc.,
KDDI MATOMETE OFFICE CORPORATION, KDDI MATOMETE OFFICEHIGASHINIHON CORPORATION,
KDDI MATOMETE OFFICE CHUBU CORPORATION, KDDI MATOMETEOFFICE KANSAI CORPORATION,
KDDI MATOMETE OFFICE NISHINIHON CORPORATION, Kokusai Cable
Ship Co., Ltd.,
15 companies /organizations in total are certified
ISO 14001 Certification▪ KDDI Group’s Environmental Management Structure
Board of Directors

The 4°C scenario in which physical impact will become apparent due tolack of measures against climate change (the increase in the global average temperature is held at 4°C above pre-industrial levels)

Corporate Management
Committee
Sustainability Committee

Reference: IPCC (Intergovernmental Panel on Climate Change) Fifth Assessment Report

Analysis of Physical Risks

Acute
Risk

Increase in severity
and frequency ofdisasters causedby extreme weather(typhoons, floods,etc.)* 3: Business Continuity Plan

KDDI Sustainability Report 2021

KDDI’s Responses

Carbon TaxChronic Increase in average
Risktemperature

76

Policy &SystemKDDI’s Risks

KDDI’s Responses

Risk of increased costs
Preparation for efficientsuch as personnel expensrecovery operations by
es for emergency recovery
reviewing the BCP* 3
in order to respond quickly
and conducting disasterto the restoration of therecovery drills
communication network
Risk of increased air-conditioning power usage
in data centers to coolservers entrusted to us by
our customers

Installation of highefficiency air conditioning systems andreplacement with renewable energy power

Green Plan
Subcommittee

Environmental
Subcommittee

Human Rights
Subcommittee
Internal Auditors

Division Directors
Division Environmental
Managers

Within Divisions, Regional Offices andGroup Companies

Division Environmental
Management Committees

Environmental Managers

Employees

KDDI Sustainability Report 2021

77

Top Message

Message from Executive Officer of SustainabilityKDDI’s Material Sustainability Issues

KDDI’s Commitment to Sustainability

FY2020 Material KPI Results

FY2021 Material KPIs

Feature Article 1: KDDI’s Response to Climate Change

Materiality 1

Materiality 2

Feature Article 2: KDDI Sustainable Action

Materiality 3

Materiality 4

Materiality

Materiality 5

Management Framework

Engagement

Materiality 6

Materiality 6

An Energy-Efficient, Circular Economy• Energy efficiency improvement and utilization of clean energy • Zero emissions and 3Rs • Reduction of society’s impact on environment through ICTs
Environmental Management
Compliance with Environmental Laws
and Regulations&
KDDI Group System
Results<Related Laws and Regulations>• Act on the Rational Use of Energy• Act on the Promotion of Sorted Collection and Recycling of Containers
and Packaging• Waste Management and Public Cleansing Act• Act on Rational Use and Proper Management of Fluorocarbons• Law Concerning Special Measures for Promotion of Proper Treatment of
PCB Wastes▪ Status and Future Plans for Disposal of Equipment Containing PCBs
(as of July 2021)
Unit: tDisposalamount in
FY2020

Remaining
amount yet
Planned disposal time
to be disposed
0

0.253

Disposed by the end of
December 2021

Equipment containing
low-concentration
PCBs

2.243

11.0

Disposed by the end of
September 2022

Cooperation with Business Partners

KDDI

SystemWe believe that enhancing the environmental awareness of all employees
and encouraging them to better understand environmental issues are
essential to promote our environmental activities.
Initiatives

Briefing
session at the
beginning of thetermTargetDetails / Results

Persons
responsible forenvironmental
ISO ofKDDI Group

Themes: KDDI’s environmental management
system (EMS), environmental laws
and regulations, details of new
regulation revisions
P articipants: Attended by 16 representatives
from 9 out of 10 departments (90%of target departments) and 19
representatives from 8 out of 11
group companies (73% of target
companies)

Training ofinternal
Environmental
auditorse-learning

Held study sessions to train 2 auditors

All employeesof KDDI Group

Themes: “Let’s understand the KDDI
Sustainable Action and put it into
actions!”

Trainees: 11,801 (98.0% of the targets)

Acquiring the Eco ICT MarkKDDI

ActivityKDDI has acquired the Eco ICT Mark established by the ICT Ecology
Guideline Council * to work toward improving environmental consciousness and reducing environmental impacts.
* A council aiming for establishing energy conservation indices and other standards to be referenced when procuring ICT devices and data centers

Promoting Green Procurement

KDDI

1

PolicyWe formulated the KDDI Green Procurement Guidelines to promote purchasing of more environmentally conscious products and business equipment (communication devices, air conditioning systems and power supply
facilities) with high energy-saving performance. The Guidelines target thedevices defined in the latest Ecology Guideline for the ICT Industry specified by the ICT Ecology Guideline Council.
We also apply the KDDI Sustainable and Responsible Procurement
Guidelines to our business partners and follow up on their response toward environmental management, using the Responsible Procurement
Surveys.
KDDI Green Procurement Guidelines (Japanese only)KDDI Sustainable and Responsible Procurement Guidelines
Supply Chain Management

Response to Act on Promoting Green Procurement
KDDI has a lineup of products that meet the requirements of the Japanese
government’s Law on Promoting Green Purchasing.

2

KDDI

Results

Assessment items

Implementation, measures taken

Has a voluntary ecological action plan stipulating
various efforts directed at reducing CO2 emissions
through energy conservation been created and is it
being executed?

We have formulated and are implementing medium-term environmental conservation plans based on theKDDI Environmental Charter

Does the ecological policy include specific efforts
stipulating numerical targets for the reduction of CO2
emissions through energy conservation?

The fourth environmental conservation plan (KDDI GREEN PLAN 2030) included the following targets:• 50% reduction in CO2 in FY2030 compared to FY2019 for KDDI (in Japan, non-consolidated)•U tilize renewable energy and construct highly energy-efficient data centers, mobile phone base stations, etc.
•C
 ontribute to reductions in society’s CO2 emissions by providing KDDI’s ICT services• Maintain zero emissions from retired telecommunication facilities
Achieve final disposal rate of 1% or less (Zero emissions is defined as having a final disposal rate of 1%or less)• Maintain material recycling rate of 99.8% for post-consumer mobile phones• Actively promote initiatives that use ICTs to conserve ecosystems

KDDI Environmental Charter

The Fourth Environmental Conservation Plan: KDDI GREEN PLAN 2030
3

Is the ecological policy documented and disseminated inside and out-side of the company? Does thecompany carry out activities to inform and enlighten
its employees? Is the company working to raise ecological awareness?

•T he environmental conservation plan is disclosed within and outside the company in the Sustainability
Report and on the corporate website• We also provide e-learning program and internal seminars for employees as needed

4

Does the company disclose to the general public its
activities and data such as CO2 emission reduction?

The progress toward the achievement of the trend targets for the medium-term environmental conservation plan is disclosed in the Sustainability Report and on the corporate website

5

In regard to ICT equipment and data center services, has the company prepared a procurement
standard based on assessment standards specified
in this Guideline? Is procurement carried out inaccordance with the standard?

67

Is the company cognizant of energy conservation in
procuring office equipment, supplies and logistics(e.g., green purchasing)?

Education and Awareness Raising for Employees

P.78

We conduct procurement activities in accordance with the KDDI Green Procurement Guidelines
Promoting Green Procurement

P.78

KDDI promotes green purchasing under the
Supply Chain Management

In relation to efforts to reduce CO2 emissions
through energy conservation, has the company
assigned a person or department to be responsible
for such matters?

The Sustainability Department was established8

Is there a regime in place using internal audits orother means to keep appropriate track of the implementation of measures and achievement of targets
set forth in the voluntary ecological action plan?

We monitor the implementation and the achievement level, conduct inspections and improve throughinternal audits under the Environmental ISO Management System

9

Are ecologically friendly efforts being made otherthan activities to save energy?

Other ecological activities

We continuously make our base stations lighter in weight and more energy efficient. As 5G networks process larger volume of data (traffic) than 4G
networks, electricity consumption would significantly increase with the existing system. Therefore, we work with the suppliers of equipment for basestations to develop equipment lighter in weight and more energy efficient.
We are introducing the most advanced 4G and 5G base stations, reducing weight by approximately 40% and electricity consumption by approximately 19%, compared to conventional 3G and 4G base stations. We willcontinue to work with business partners to reduce our environmental impacts.

Self-Assessment Checklist for CO2 Emission Reduction from Energy Conservation Efforts
by Telecommunications Services Provider

Promotion regime

Equipment containing
high-concentration
PCBs

Activity &Results

Efforts relating toprocurement

Appropriate Processing of PCB-Containing Equipment
In accordance with the PCB Management Rules set out for the purpose ofproper management of PCBs and prevention of accidents, KDDI is promoting the disposal of retired equipment that contains PCBs. We are continuing to dispose of remaining equipment containing high-concentration
PCBs and low-concentration PCBs.

KDDI Group

Preparation of a voluntary ecological action plan

Compliance with Various Environmental Management Laws and Regulations
In order to prevent or reduce environmental impacts by our business activities, we strictly comply with national environmental laws and regulations, as well as with local ordinances and agreements. In KDDI, there
were no violations of environmental laws and regulations in fiscal 2020.
There were no environmental contaminations, such as leakage or outflow
of hazardous substances either.

Education and AwarenessRaising for Employees

We consider the promotion of 3Rs (Reduce, Reuse, Recycle) to also be a significant issue and are committed to the following initiatives:• Promotion of recycling communication facilities and achieving higher recycling rate
• Promotion of recycling post-consumer mobile phones and achieving higher recycling rate
• Reduction in paper resource use via Green by ICTs (Bill on Web, KDDI paperless fax service, slimmed
down au mobile phone manual, compact individual packaging, etc.)• Reduction in office waste and achieving higher recycling rate
We are also engaged in improving the supply chain by dealing with Scope 3 and promoting LCA and inconserving biodiversity.
Environmental Performance (Carbon Neutrality)
Environmental Performance (Recycling-Oriented Society)
Environmental Performance (Biodiversity)

10

Is the company involved in ecological preservation
activities in collaboration with local communities?

We implement environmental conservation activities across Japan, together with our employees andlocal stakeholders such as local authorities and NPOs
Environmental Conservation Activities by Employees

State of Compliance with Act on Promoting Green Procurement(Japanese only)
List of Compatible Models with Act on Promoting Green Procurement(Japanese only)

78

KDDI Sustainability Report 2021

Product Line-Up

KDDI Sustainability Report 2021

79

Top Message

Message from Executive Officer of SustainabilityKDDI’s Material Sustainability Issues

KDDI’s Commitment to Sustainability

FY2020 Material KPI Results

FY2021 Material KPIs

Feature Article 1: KDDI’s Response to Climate Change

Materiality 1

Materiality 2

Feature Article 2: KDDI Sustainable Action

Materiality 3

Materiality 4

Materiality

Materiality 5

Management Framework

Engagement

Materiality 6

Materiality 6

An Energy-Efficient, Circular Economy• Energy efficiency improvement and utilization of clean energy • Zero emissions and 3Rs • Reduction of society’s impact on environment through ICTs
Environmental Management

Environmental Accounting

KDDI GroupWe have implemented environmental accounting since 2010 as an effective measure to quantitatively evaluate the costs and results of our environmental activities.
We analyze calculated costs and results to conduct more efficient environmental management.

<FY2020 Scope of Environmental Accounting>

Period: April 1, 2020 to March 31, 2021
Scope of calculation: KDDI and 28 major group companies*
Calculation standard: Environmental Accounting Guidelines 2005 formulated by the Japan’s Ministry of the Environment,KDDI Environmental Accounting Guidelines

1. Environmental conservation benefits (physical)(1) B enefits forbusiness
operation area

Unit: million yen

Environmental protection costs

Transaction examples

FY2018Investment

FY2019Cost

Investment

Change fromprevious year

FY2020

Cost

Investment

Cost

Investment

Cost

Pollution prevention
costs

Pollution prevention costs stipulated by laws, costs forproper disposal of PCB, etc.

0

27

0

1

0

0

0

(1)

Global environmental protection costs

Power-saving wireless equipment for mobile base stations (Investment amount is calculated proportionallybased on the power-saving effect)220

18,87898

10,034

19

2,027

(79)

(8,007)

Resource recycling
costs

Reduction of paper consumption, processing and disposal of waste products

0

711

0

121

0

183

0

62

Upstream/downstream costs

Collection, recycling and reuse of merchandise andproducts

0

991

0

1,277

0

1,231

0

(46)

Management costs

Operation and updating of environmental ISO standards, disclosure of environmental information

0

137

0

114

0

98

0

(16)

R&D costs

R&D of technology, equipment, handsets, products
and services conducive to reducing the environmental
impacts

0

47

0

0

0

85

0

85

Social activity costs

Donations and support for forest conservation activities
and to environmental conservation groups

0

50

0

37

0

15

0

(22)

Environmental damage restoration
costs

Asbestos survey

0

0

0

0

0

0

0

0

220

20,841

98

11,584

19

3,639

(79)

(7,945)Business
operationarea costs

Total

KDDI Sustainability Report 2021

2) Benefits related to waste orenvironmental impact originatingfrom business activities
Benefits related to goods and services
produced from business activities

FY2018FY2019FY2020Change fromprevious year

Electricity usage

Unit: MWh

2,930,568

3,079,800

3,201,028

Paper usage

Unit: ton

11,012

9,602

8,854

(748)

Paper reduced by Bill on Web

Unit: ton

4,040.6

4,207.3

4,962.0

754.7

Greenhouse gas emissions*

Unit: t-CO2

1,395,453.2

1,377,299.9

1,322,857.5(54,442.4)

Industrial waste emissions related totelecommunications facilities andbuildings

Unit: ton

3,303

3,753

3,349

(404)

Number of post-consumer mobile
phones and other devices collected

Unit:
10,000 units

288

279

258

(21)

121,228* The CO2 emissions are calculated using the emission factors furnished by electric utility operators. (Emissions from heat, steam and hot and chilled water consumption are included.)

Unit: million yen

2. E conomic benefits of environmental
conservation measures (yen)
Revenues
Cost reductions* mediba Inc., KDDI Research, Inc., KDDI Technology Corporation, KDDI Engineering Corporation, KDDI Evolva Okinawa Inc., KDDI Challenged Corporation, KDDI MATOMETE OFFICE CORPORATION,
KDDI MATOMETE OFFICE HIGASHINIHON CORPORATION, KDDI MATOMETE OFFICE CHUBU CORPORATION, KDDI MATOMETE OFFICE KANSAI CORPORATION, KDDI MATOMETE OFFICENISHINIHON CORPORATION, OKINAWA CELLULAR TELEPHONE COMPANY, Okinawa Telecommunication Network Co.,Inc., Japan Telecommunication Engineering Service Co., Ltd., Chubu Telecommunications Co., Inc., Kokusai Cable Ship Co., Ltd., UQ Communications Inc., BIGLOBE Inc., TELEHOUSE International Corp. of Europe Ltd. (UK), TELEHOUSE International Corp. of Europe Ltd. (France),
TELEHOUSE International Corp. of America (US), TELEHOUSE Deutschland GmbH (Frankfurt), HKCOLO. NET Ltd. (Hong Kong), TELEHOUSE Beijing BEZ Co., Ltd. (Beijing), TELEHOUSE Beijing BDA Co.,
Ltd. (Beijing), TELEHOUSE Shanghai Co., Ltd. (Shanghai), KDDI Singapore Pte Ltd. (Singapore), TELEHOUSE International Corp. of Vietnam (Hanoi)

80(2) Benefits for
upstream/
downstream
costs1) Benefits related to resources input
in business activities

Indicator category

PolicySubstantial benefits (Major effects)

FY2018FY2019FY2020Change fromprevious year

Revenues gained by disposal of telecommunications facilities and buildings

134.6

140.3

4,665.4

4,525.1

Reduction in energy costs by introducing low-pollution vehicles

36.6

35.5

32.7

(2.8)

2,929.5

4,850.6

2,650.2(2,200.4)

3,100.6

5,026.4

7,348.2

2,321.8

Reduction in costs of new purchases by reusing old telecommunications
facilities

Total

KDDI Targets for FY2030: Consolidated data
Consolidated electricity consumption

Unit: MWh

Consolidated water resource input (basic unit)

Unit: 1,000 m3/ person

3,513,0240.012KDDI Sustainability Report 2021

81

Top Message

Message from Executive Officer of SustainabilityKDDI’s Material Sustainability Issues

KDDI’s Commitment to Sustainability

FY2020 Material KPI Results

Feature Article 1: KDDI’s Response to Climate Change

FY2021 Material KPIs

Materiality 1

Materiality 2

Feature Article 2: KDDI Sustainable Action

Materiality 3

Materiality 4

Materiality

Materiality 5

Management Framework

Engagement

Materiality 6

Materiality 6

An Energy-Efficient, Circular Economy• Energy efficiency improvement and utilization of clean energy • Zero emissions and 3Rs • Reduction of society’s impact on environment through ICTs

Environmental Performance
Understanding Environmental Impact (Non-consolidated)
In order to quantitatively understand and share information about our environmental impact, we have calculated our supply chain greenhouse gas emissions(Scopes 1, 2 and 3) in adherence with various guidelines* since fiscal 2012.
In our fiscal 2020 business activities, Scope 3 accounted for 83.62% of total greenhouse gas emissions(Scopes 1, 2, and 3). When viewed by category, Categories 1 and 2 have continued to make up large portions as in the previous fiscal year. Additionally, in orderto ensure the reliability of calculations, the results of
Scopes 1 and 2 were subjected to independent third
party guarantee by Lloyd’s Register Quality Assurance
Limited, while the results of Scope 3 received third party verification from Waseda University.

▪ CO2 Emissions and the Proportion of Each Category (Coverage: KDDI, non-consolidated basis)
FY2012FY2013

FY2014FY2015FY2016FY2017FY2018FY2019FY2020Third-party guarantee for Scope 1 emissions
and Scope 2 emissions

×

×

×

◯

◯

◯

◯

◯

Planning to obtainin March 2022

Third-party verification of Scope 3 emissions

◯

◯

◯

◯

◯

◯

◯

◯

◯

CO2 emissions

CO2 emissions

CO2 emissions

CO2 emissions

CO2 emissions

CO2 emissions

CO2 emissions

CO2 emissions

CO2 emissions

t

t

t

t

t

t

t

t

t

Category
%

%

%

%

%

0.06

3,472

0.06

4,610

0.08

5,225

0.10

5,288

0.09

5,700

0.09

6,539

0.12

6,581

0.10

5,709

0.09

Scope 2* 2

948,61218.55

954,260

16.34

1,060,466

18.27

1,064,033

19.37

1,020,257

17.83

1,073,088

17.67

1,058,143

18.98

1,041,559

16.13

1,050,417

16.30

2,733,364

53.46

3,343,506

57.26

3,306,863

56.96

3,236,999

58.91

3,507,745

61.29

3,818,806

62.89

3,347,946

60.05

3,529,472

54.65

3,581,713

55.56

952,799

18.63

1,093,184

18.72

1,053,203

18.14

776,71114.14

815,893

14.26

828,675

13.65

875,31815.70

1,584,908

24.54

1,486,988

23.07

Purchased goods andservices

Category 2 Capital goods

Category 8 0.01%
Category 11 4.17%

Category 3

Fuel- and energy-related
activities
not included in Scopes 1
and 2

34,4390.67

31,4800.54

34,9670.60

35,3790.64

34,9130.61

35,2800.58

37,1040.67

40,1880.62

41,7290.65

Category 4

Upstream transportationand distribution

8,261

0.16

4,994

0.09

7,003

0.12

7,370

0.13

8,706

0.15

12,101

0.20

8,777

0.16

7,408

0.11

7,183

0.11

Category 5

Waste generated in operations

921

0.02

588

0.01

500

0.01

681

0.01

583

0.01

1,043

0.02

710

0.01

413

0.01

464

0.01

Category 6 Business travel

5,154

0.10

5,080

0.09

4,590

0.08

4,831

0.09

5,314

0.09

6,327

0.10

5,012

0.09

4,955

0.08

662

0.01

Category 7 Employee commuting

3,497

0.07

2,671

0.05

5,031

0.09

4,574

0.08

4,642

0.08

4,332

0.07

4,034

0.07

5,043

0.08

1,897

0.03

Category 8 Upstream leased assets

1,751

0.03

1,519

0.03

1,367

0.02

1,309

0.02

1,209

0.02

1,092

0.02

1,133

0.02

784

0.01

514

0.01

Scope 1 0.09%
Scope 2 16.30%

Category 2 23.07%

Category 1
55.56%
Scope 383.62%%

2,846

Category 7 0.03%

Category 3 0.65%%

All direct GHG emissions

Category 1

Category 4 0.11%%

Indirect GHG emissions fromconsumption of purchased
electricity, heat or steam▪ Comparison of CO2 Emissions Ratio of Each Category(FY2020)

Category 5 0.01%%

Scope 1* 1

* Green Value Chain Platform

Category 6 0.01%

Activity &Results

KDDI

Scope 3* 3

Category 9

Downstream transportationand distribution

0

0.00

0

0.00

0

0.00

0

0.00

0

0.00

0

0.00

0

0.00

0

0.00

0

0.00

Category 10

Processing of sold products

0

0.00

0

0.00

0

0.00

0

0.00

0

0.00

0

0.00

0

0.00

0

0.00

0

0.00

419,9228.21

397,324

6.80

325,364

5.60

356,359

6.49

318,023

5.56

285,294

4.70

229,913

4.12

237,008

3.67

268,754

4.17

1,451

0.03

819

0.01

1,606

0.03

886

0.02

363

0.01

426

0.01

344

0.01

205

0.00

150

0.00

Category 13 Downstream leased assets

0

0.00

0

0.00

0

0.00

0

0.00

0

0.00

0

0.00

0

0.00

0

0.00

0

0.00

Category 14 Franchises

0

0.00

0

0.00

0

0.00

0

0.00

0

0.00

0

0.00

0

0.00

0

0.00

0

0.00

Category 15 Investment

0

0.00

0

0.00

0

0.00

0

0.00

0

0.00

0

0.00

0

0.00

0

0.00

0

0.00

4,161,559

81.39

4,881,165

83.60

4,740,494

81.65

4,425,099

80.54

4,697,391

82.08

4,993,376

82.23

4,510,291

80.90

5,410,384

83.77

5,390,054

83.62

5,113,017

100

5,838,897

100

5,805,569

100

5,494,357

100

5,722,936

100.006,072,164

100.005,574,974

100.006,458,524

100.006,446,179

100.00Category 11 Use of sold products
Category 12

Total

End-of-life treatment ofsold products* 1 Heavy oil (crude oil), diesel, kerosene, town gas* 2 The CO2 emissions for power consumption are calculated using the emission factors furnished by electric utility operators. (Emissions from heat, steam, and hot and chilled water consumption are included.)* 3 Uses emission coefficients indicated in Japan’s Ministry of the Environment’s Overview of Basic Guidelines on Accounting for Greenhouse Gas Emissions throughout the Supply Chain.

82

KDDI Sustainability Report 2021

KDDI Sustainability Report 2021

83

Top Message

Message from Executive Officer of SustainabilityKDDI’s Material Sustainability Issues

KDDI’s Commitment to Sustainability

FY2020 Material KPI Results

Feature Article 1: KDDI’s Response to Climate Change

FY2021 Material KPIs

Materiality 1

Materiality 2

Feature Article 2: KDDI Sustainable Action

Materiality 3

Materiality 4

Materiality

Materiality 5

Management Framework

Engagement

Materiality 6

Materiality 6

An Energy-Efficient, Circular Economy• Energy efficiency improvement and utilization of clean energy • Zero emissions and 3Rs • Reduction of society’s impact on environment through ICTs
Environmental Performance

Environmental Impact Data (Non-consolidated, Consolidated)

Third-party guarantee for Scope 1 emissions and Scope 2 emissions
Third-party verification of Scope 3 emissions
Power consumption

KDDI GroupFY2010FY2011FY2012FY2013

FY2014FY2015FY2016FY2017FY2018FY2019FY2020

×

×

×

×

◯

◯

◯

◯

◯

◯

×

—
Unit: MWh

Activity &Results◯—

1,995,042

2,190,787

◯

◯

◯

◯

◯

◯

◯

◯

1,885,703

1,686,480

1,873,293

1,939,115

1,913,747

2,086,626

2,151,456

2,262,524

2,360,349

non-consolidated
consolidated

Scope 1 emissions

Fuel

Unit: t-CO2

—

—

2,846

3,472

4,610

5,225

5,288

5,700

6,539

6,581

5,709

Scope 2 emissions* 1

Electricity, steam
and hot and cold water

Unit: t-CO2——

948,612954,260

1,060,466

1,064,033

1,020,257

1,073,088

1,058,143

1,041,559

1,050,417

Total of Scope 1 + 2 emissions

Unit: t-CO2——

951,458

957,732

1,065,075

1,069,258

1,025,545

1,078,788

1,064,683

1,048,140

1,056,125

Scope 3 emissions

Unit: t-CO2——

4,161,559

4,881,165

4,740,494

4,425,099

4,697,391

4,993,376

4,510,291

5,410,384

5,390,054

Total of Scope 1 + 2 + 3 emissions

Unit: t-CO2——

5,113,017

5,838,897

5,805,569

5,494,357

5,722,936

6,072,164

5,574,974

6,548,524

6,446,179

Electric power consumption* 2

Unit: MWh

2,038,462

1,889,604

2,296,470

2,438,952

2,438,945

2,992,240

2,930,568

3,079,800

3,201,028

Electricity consumption derived from renewable energy
sources

Unit: MWh———

134,320

143,311

158,338

169,349

338,319

Scope 1 emissions

Fuel

Unit: t-CO2

—

—

2,947

4,028

4,785

97,784

26,913

22,59425,511

25,16925,338

Scope 2 emissions* 1

Electricity, steam
and hot and cold water

Unit: t-CO2——

1,032,629

1,065,979

1,293,637

1,294,969

1,264,479

1,504,142

1,369,942

1,352,131

1,297,520

Total of Scope 1 + 2 emissions (market-based)

Unit: t-CO2——

1,035,576

1,070,006

1,298,422

1,392,753

1,291,392

1,526,737

1,395,453

1,377,300

1,322,857

Scope 2
(location-based)

Unit: t-CO2——

1,486,429

1,486,924

1,476,961

Total of categories 1-15

Electricity, steam
and hot and cold water

Implementation ofLife Cycle Assessments (LCA)

KDDI

Activity &Results

We are working on LCAs that assess environmental impact by calculating
CO2 emitted through all processes related to products and services, including manufacture, use, disposal and recycling.* Since fiscal 2008, we
have regularly conducted LCAs for the “au” and “au Hikari” brands every
three years. We conducted LCAs in fiscal 2018.
* The environmental impact from disposal and recycling are included in environmental impact frommanufacture.

Environmental Impact of “au”
Annual CO2 emissions per user (kg)2,110,104

2,315,672

—

—

—

—

—

—

—

—

—

* 1 The CO2 emissions for power consumption are calculated using the emission factors furnished by electric utility operators. (Emissions from heat, steam, and hot and chilled water consumption are included.)* 2 The FY2020 data includes renewable energy sources.

FY2010FY2011FY2012FY2013

FY2014FY2015FY2016FY2017FY2018FY2019FY2020Third-party verification of water usage (non-consolidated/consolidated basis)

×

×

×

×

×

×

◯

◯

◯

◯

×

Third-party verification of industrial waste (non-consolidated/consolidated basis)

×

×

×

×

×

×

◯

◯

◯

◯

×

Electric power consumption per subscriber* 3

Unit: MWh

572

586

465

386

399

391

363

368

360

358

362

Fuel consumption* 4

Unit: kiloliter

405

317

308

260

254

258

341

319

330

544

330

Paper usage

Unit: ton

26,287

19,835

17,92443,42913,303

11,853

9,691

7,462

10,853

9,512

8,798

Water usage* 5

Unit: 1,000 m3

1,504

1,649

1,638

1,864

2,206

2,159

1,500

746

400

395

361

Industrial waste* 6

Unit: ton

7,833

2,724

1,401

1,961

1,813

1,885

2,464

2,467

1,927

1,941

2,403

90
80
70
60
50
40
30
20
10
0
-10

68.8
42.1

76.4
46.5

■ Manufacture■ Operation■ Recycling

26.8

30.1

-0.1

-0.1

FY2015FY2018CO2 emissions per “au” user increased 11.1% from the previous assessment. CO2 emissions for handsets have risen as smartphones become
more ubiquitous, risen in price and gained battery capacity. Another contributing factor is the increase in wireless base stations to handle the expansion in communications traffic and greater number of frequencies
used. On the other hand, energy conservation is making progress as individual wireless base stations’ annual power consumption has fallen
24.5%.
Environmental Impact of “au Hikari”
Annual CO2 emissions per user (kg)

non-consolidated

Number of mobile phones
and other devices collected by KDDI

Mobile phone main bodyBatteries

Unit: 10,000
devices

Chargers

Energy usage at equipment-related facilities

Unit: MWh

235

229

181

154

163

141

148

134

125

118

112

204

205

182

161

182

143

146

123

108

98

91

109

99

83

72

79

65

66

57

54

63

54

consolidated

770,058

760,794

685,885664,798

747,016

779,504

Water usage (Water supply, recycled water, well water,
Unit: 1,000 m3
excluding waste water)

—

—

—

—

—

—

Water resource usage (basic unit): Consolidated water Unit:
usage/Consolidated number of employees
1,000 m3/ person

—

—

—

—

—

—

Industrial waste (Nonhazardous industrial waste (telecommunications equipment, normal daily waste from Unit: ton
KDDI buildings))

11,629

4,209

2,041

3,388

7,556

777,273

816,904

863,416

903,111

947,611

1,740

1,002

730

675

667

0.015

0.014

3,753

3,349

—

5,298

—

7,154

—

4,937

3,303

160
140

140.4
116.2

120
100
80

78.7

59.3

■ Manufacture■ Operation

60
40
20

■ Recycling

64.6

60.8

0
-20

-2.9

-3.9

FY2015FY2018CO2 emissions per “au Hikari” user decreased 17.3% from the previous
assessment. CO2 emissions have declined as computers and other devices connected to the internet have come down in price, become more energy efficient and last longer before needing to be replaced. Another factor
behind the decline is that since 2016 network equipment has been getting
upgraded and stations have been consolidated.

* 3 The number of subscribers combines subscriptions for au and FTTH (unit: 10,000 contracts).
* 4 Fuel consumption includes heavy oil, diesel and kerosene (but excludes city gas). The emission coefficient applied to GHG emissions calculation and reporting and disclosure system specified in the Act on Promotion of Global Warming Countermeasures is used.
* 5 Water supply, recycled water, well water, excluding waste water* 6 Nonhazardous industrial waste (telecommunications equipment, normal daily waste from KDDI buildings)

84

KDDI Sustainability Report 2021

KDDI Sustainability Report 2021

85

Top Message

Message from Executive Officer of SustainabilityKDDI’s Material Sustainability Issues

KDDI’s Commitment to Sustainability

FY2020 Material KPI Results

FY2021 Material KPIs

Feature Article 1: KDDI’s Response to Climate Change

Materiality 1

Materiality 2

Feature Article 2: KDDI Sustainable Action

Materiality 3

Materiality 4

Materiality

Materiality 5

Management Framework

Engagement

Materiality 6

Materiality 6

An Energy-Efficient, Circular Economy• Energy efficiency improvement and utilization of clean energy • Zero emissions and 3Rs • Reduction of society’s impact on environment through ICTs
Environmental PerformanceKDDI’s Approach (Carbon Neutral)

KDDI Group

PolicyGreenhouse gas emissions, which are considered a cause of global
warming, are increasing year by year, and reducing them is now a social
issue shared by all humankind.
The utilization of ICTs enhances the efficiency of business activities,
including production and consumption, and is expected to contribute to
the reduction of customers’ CO2 emissions. As ICTs expand, however, we
may face a greater environmental impact from data centers and base stations, which in turn will generate demand for the development and implementation of energy-saving facilities and equipment.
We at KDDI offer new ICT services to contribute to the reduction of
CO2 emissions to realize carbon neutral.

Green of ICTs

KDDI

Reducing Power Consumption and Undertaking Disaster Measure
Initiatives at Base Stations
Electricity consumed at the au mobile phone base stations accounts for
60% of the total volume consumed by KDDI, so reducing electricity consumption at base stations is one of our topmost priorities to tackle. Also,
77% of the base stations that ceased to operate in the aftermath of 2011
Tohoku earthquake and tsunami did so because of power outages, which
turned out to be a pressing issue to be addressed in disaster preparedness measures.
In regard to these issues, we promote implementing tribrid base stations* and extending the life of base station batteries to 24 hours.
* Base stations that utilize tribrid electric power control technology to efficiently supply three kindsof electric power depending on time and weather: ordinary commercial power, power generated
by solar panels and “midnight” (off-peak) power saved in storage batteries.

Green Supported by ICTs

KDDI

The Environmental Eco Label is granted to KDDI ICT services that contribute to reducing the environmental impact of customers and society (reducing CO2 emissions).
Environmental Eco
Label services

KDDI Cloud Platform
Service

Content
KDDI operates and maintains this platform, enablingcustomers to increase or decrease their server capacity
remotely from their own offices, without having to travelto the data center where the servers are located.
Furthermore, customers can reduce the amount of CO2
emissions they are responsible for by transferring theservers that they install, operate and maintain themselves (on-premises environment) to the KDDI Cloud
Platform Service. With this service, server operations are
performed with an economy of scale unique to a telecommunications operator, enabling an approximately
38% reduction in CO2 emissions per server per year incomparison to when customers operate their servers
themselves.

TELEHOUSE Data
Center Services

These data centers have high power supply capacity,
highly efficient and reliable power generation equipment,
energy-efficient air conditioning equipment, LED lighting,outdoor lights that use wind and solar power and otheradvanced, energy-efficient equipment.

MATOMETE
KURUMATICS

A next-generation vehicle operation management service that combines telecommunications with cloud technologies, enabling the real-time checking of driving
conditions. (The service ended as of March 31, 2021.)

KDDI IoT Cloud—Toilet Water-Saving
Management

Monitors water level in each restroom utilizing IoTs toreduce water use by 40 to 50%*.

* Expected values based on the actual values measured by thebulb manufacturer

KDDI IoT
Communication Service
LPWA

This telecommunications service uses LPWA technology,
which utilizes KDDI’s 4G LTE network. This technology
reduces the power consumed by telecommunication
devices and provides telecommunications coverage overa wider area.

au Denki RE100 Menu
and Non-Carbon Menu

Under the RE100 Menu, we supply electricity that meets
RE100 criteria by supplying electricity derived fromrenewable energy sources (including electricity underFeed-in Tariff scheme) and offsetting carbon through thepurchase of J-Credit (derived from renewable energy).
Under the Non-Carbon Menu, we supply electricity withzero CO2 emissions derived from the electricity purchase by utilizing J-credit scheme.

86

KDDI Sustainability Report 2021

Numbers as of the end of March 2021

Activity
Tribrid base stations

100 stations in Japan

Implementation of 24 hour-lifebase station batteries

Around 2,200 stations in Japan

Activity

Renewable Energy (Internal use)
In order to promote energy conservation and CO2 emissions reduction,
we use natural energy sources, including solar power, at several large
scale communication stations and tribrid base stations. At nine of our mobile phone base stations in Japan, almost all electric power comes fromnatural energy sources. The amount of natural energy produced by eachtribrid base station is approximately 4.2 kWh per day *, accounting forabout 18% of the power consumed at each base. We expect further reduction* of CO2 emissions by 20 to 30% with the use of midnight power.
* Estimated average energy production value by six solar batteries installed in test stations during
clear skies. Includes actual values measured by KDDI.

Renewable Energy BusinessWe launched solar power generation business in November 2013 withthe aim of contributing to reduction of CO2 emissions. We constructedsolar power generation facilities on part of company-owned land in seven
facilities of four locations around Japan and sell the power to electric power companies based on the Feed-in Tariff Scheme for Renewable Energy.

KDDI’s Approach(Recycling-Oriented Society)KDDI

PolicyIn order to reduce our environmental impact from waste produced throughbusiness activities, we effectively utilize our resources to contribute to theformation of a recycling-oriented society.

Promoting Waste Reduction

KDDI

Activity &Results

We promote reuse activities that regenerate and effectively use retired
telecommunications facilities. We also conduct material recycling thatturns unneeded equipment and structural materials into resources. In fiscal 2020, we recycled deteriorated storage batteries installed in telephoneexchange stations used in test environments to utilize the materials andachieved a total recycling volume of 1,073.2 tons within KDDI. We willcontinue our commitment to reuse and recycle communication equipment, including base stations, retired due to regular upgrades.
Initiatives

FY2019 Results

FY2020 Results

Total material recycling volume791.8 t1,073.2 t

Unit: MWh

Demonstration Experiment to Reduce Power Consumption at Base
Stations
The au mobile phone base stations have reduced power consumption by
up to 50% by utilizing the AI technology capable of stopping and starting
the transmitting of radio waves according to the usage status (AI-based
control technology for base stations). In addition, we have started a proof
of concept (PoC) in order to reduce power consumption by at least 70%
by using the liquid cooling base station solution with liquid refrigerant that
has improved cooling efficiency compared to conventional air coolingmethods.
Portable Batteries
Since fiscal 2013, we have implemented portable batteries with reduced
environmental impact at 12 maintenance bases throughout Japan as a
substitute for the power supply vehicles used in the past to power mobile
phone base stations during electricity outages.
▪ Portable Battery Trial Test Results*
Power supply
vehicles

8.2 ℓ of fuel consumed per time

CO2 emissions: 21.5 kg

Portable
Batteries

10 kWh of power consumed per time

CO2 emissions: 4.1 kg

FY2012 Results
A reduction of 17.4 kg of CO2 emissions each time
* With an approximately 10-hour base station power outage and 1 kW wireless device power consumption.

Total generated energy (sold)FY2016FY2017FY2018FY2019FY202014,28818,137

17,99817,406

17,566Since September 1, 2021, in “au Denki” electricity supply service, KDDIhas offered the “eco Plan.” The practical renewable energy rate of thiselectricity supply plan is 100%, achieving net-zero CO 2 emissions. The
rate of renewable energy of our procured electricity has achieved 100%by supplying electricity together with non-fossil fuel energy certificates thathave environmental value of not emitting CO2, such as solar and wind
power. The plan has introduced a system that 2% of electricity charges
will be donated to conservation efforts for the global environment, whichallows KDDI to work together with customers to contribute to achieving acarbon-neutral society. The subsidiary, ENERES Co., Ltd. offers
eco-friendly services, such as “RE100 Menu” that supplies electricity generated only from renewable energy sources that meets the RE100 criteria
and “Non-Carbon Menu” that supplies electricity without any adjusted
emission coefficients, and thus has contributed to customers’ initiatives tomitigate global warming through its business.

External Recognition

KDDI

Results

Reducing Waste andPromoting Recycling

KDDI

Activity &Results

Initiatives

FY2019 Results

FY2020 Results

Reduction of paper by putting bills on the Web

4,207 t4,962 tPromotion of Plastic Reduction

KDDI

Activity

Starting from late May 2021, KDDI and OKINAWA CELLULAR TELEPHONE COMPANY, have gradually switched plastic shopping bags used
at au Shops, au Style shops and UQ Spot shops to paper shopping bags
containing no plastic materials as part of our global environment protection initiatives. By replacing about 5,700,000 shopping bags distributed at
the shops per year with those made of FSC-certified paper*, we will contribute to deforestation control and environmental conservation throughthe use of highly recyclable FSC-certified paper made from wood harvested from properly managed certified forests. In addition, both plastic covers
for protecting shopping bags from rain and plastic bags for carrying catalogs and leaflets are also replaced with ones made of the material containing 25% biomass.
* The type of paper made from wood certified under the international initiative to deliver wood harvested from properly managed forests to consumers and return profits to producers.

External Recognition
Contributing to Global Environment Conservation by Stopping the Use of
Plastic Shopping Bags at au Shops and Other Shops (Japanese only)KDDI Sustainability Report 2021

87

Top Message

Message from Executive Officer of SustainabilityKDDI’s Material Sustainability Issues

KDDI’s Commitment to Sustainability

FY2020 Material KPI Results

FY2021 Material KPIs

Feature Article 1: KDDI’s Response to Climate Change

Materiality 1

Materiality 2

Feature Article 2: KDDI Sustainable Action

Materiality 3

Materiality 4

Materiality

Materiality 5

Management Framework

Engagement

Materiality 6

Materiality 6

An Energy-Efficient, Circular Economy• Energy efficiency improvement and utilization of clean energy • Zero emissions and 3Rs • Reduction of society’s impact on environment through ICTs
Environmental Performance

Promotion of Mobile Phone Recycling

KDDI Group

Activity &Results

Used (post-consumer) mobile phones collected from customers at au
Shops are manually disassembled in secured rooms, with circuit boards,
displays, cameras, plastics, screws, antennas, motors, speakers and other parts being separated. Gold, silver, copper and palladium are extracted
from the circuit boards, while screws and antennas are recycled into steel
products, and plastics are recycled, to the extent possible, into plastic
products. When a machine is used to disassemble a mobile phone, plastics are burned up in the incineration process and so cannot be recycled.
Recycling eliminates any need for new mining and refining of mineral
resources such as oil, iron, gold, silver and copper, while also reducing
the amount of carbon dioxide that is generated by materials processing.
Therefore, we at KDDI perform all disassembly manually to prevent recyclable resources from being wasted. On February 19, 2021, KDDI received the Resource Recycling Award of the 18th Corporate Philanthropy
Award organized by the Japan Philanthropic Association for its initiatives
for such material recycling and the creation of employment opportunities
for people with disabilities in manual disassembly of mobile phones.
▪ Performance in FY2020
Collection performance*

Recycling rate (mobile phones)

1,120,000 units

99.8%

Approach to Water Use

KDDI

PolicyThere are fears of losing water resources because of increasing global
population and decreasing water availability due to climate change. As
disputes concerning water distribution and pollution have broken out invarious locations around the world, it is significant to make efficient use ofwater. We are making efforts to reduce water use in our business activities
as well as to offer products and services that contribute to efficient wateruse.
Providing KDDI IoT Cloud—Toilet Water-Saving ManagementKDDI’s Approach (Biodiversity)

KDDI

Customers

Retail stores (au Shops, etc.)
Collections ofused mobile
phones

Personal information leakage prevention through formatting and circuitboard destruction
using specializedmachines

Turned into next products
and provided to customers

Domestic steelmakers

Copperproducts

Domestic producers of
non-ferrous metals

Non-ferrous metals (copper/aluminum)
Iron

Plastic products

Recycling plant

To KDDI-designatedrecycling plant

Iron products

Aluminumproducts

Environmental Education for Children,“KDDI Field Guide on Plants and Forest Wildlife”

ActivityKDDI has teamed up Toyooka City, Hyogo Prefecture to proceed with the
Smart Agriculture Project in Toyooka City since 2018. Toyooka City has
worked on biodiversity-friendly rice production, the Stork-friendly Farming
since 2005. The Smart Agriculture Project in Toyooka City managed to reduce manpower for water management by 65% by taking advantage ofKDDI’s IoT technology, and is working to solve other problems. Not just to
increase harvest, but also to achieve the common goal of cohabiting withstorks, the local government, producers, and the company are collaborating with each other from different standpoints.

We have established the KDDI Action Guidelines on Biodiversity Conservation to multilaterally assess our contributions to the conservation of biodiversity. In the guidelines, we define the three principles of Preserving Diversity in Business Activities, Collaboration and Cooperation with Related
Organizations and Promoting Recycling of Resources. Based on this, we
continue our activities on various opportunities.

• Collaboration and Cooperation with Related OrganizationsWe strengthen collaboration and cooperation with administrative
authorities, NPOs and other organizations, and undertake CSR activities using ICT.

• Tokyo Promotion of forest conservation activities at Mt. Takao• Yamanashi Prefecture P articipation in Mt. Fuji Reforestation Project held by OISCA

Recycling plants (KDDI Challenged, etc.)
Disassembly conducted in secured rooms

KDDI Action Guidelines on Biodiversity Conservation

KDDI

Environmental Conservation Activities by Employees
To promote the conservation of biodiversity in each region, we hold conservation activities that employees and their families participate in as volunteers. Working with stakeholders, including local authorities and NPOs, theregional offices are actively engaged in local environmental conservation.
▪ Initiatives to Date

Plastic

Different recycling processes
employed for different
materials

Environmental conservation activity
execution

Total participants

117

1,553

Hokkaido Branch

Head Office• H okkaido Coastal plant restoration to prevent damage to beaches fromtsunamis• H okkaido Participation in forest conservation activities at the foot of Mt.
Tarumae

Hokuriku Branch

Tohoku Branch• Toyama Prefecture P articipation in the Greenery and Satoyama Conservation
Forest Tree Raising Activities in Tenbayashi-chiku,
Tateyama-machi• Ishikawa Prefecture P romotion of afforestation activities on the site of theformer Osaki Beach Park• M
 iyagi Prefecture
Forest improvement activities at KDDI’s Forest of Hope

Northern Kanto Branch• S aitama Prefecture
Participation in Conservation activities in Musenyama KDDI's Forest, aGreen Trust conservation location

Chugoku Branch• H iroshima Prefecture
Participation in forest conservation
activities held by the Hiroshima
Afforestation Forum• Y amaguchi Prefecture
Participation in “Release of
Sweetfish for Protection of
Beautiful Environment” in the Niho
River in Yamaguchi City

KDDI’s Material Recycling of Mobile Phones Received the Resource Recycling
Award of the 18th Corporate Philanthropy Award (Japanese only)
Expanding Employment Opportunities and Advancement of Persons with Disabilities

88

KDDI Sustainability Report 2021

• F ukuoka Prefecture
Promotion of forest conservation activities to support thePatchwork Reforestation, a project undertaken in collaboration
with Sansonjuku

Shikoku Branch• K agawa Prefecture
Participation in Onoseyama afforestation activities held by OISCA

Activity &Results▪ Performance in FY2020

Southern Kanto Branch• K anagawa Prefecture
Participation in conservation and mountain reforestation activities in the
Kamakura Hiromachi urban forest

Chubu Branch

Kyusyu Branch
Disassembly conducted byhand to facilitate material
recycling

ActivityKDDI has held a class on creating a field guide on plants and forest wildlife
at elementary schools since April 2018. This class is free environmental
education utilizing IoT with the aim of promoting the understanding of environment protection and biodiversity. Children are encouraged to use atablet to take pictures of plants and insects that they can find in a school
yard and create an original field guide based on the pictures they took. Attended by approximately 450 children of eight elementary schools in total,
this initiative was recognized as an excellent practice of experimental activities for youths, and received the judging panel award of excellence of
the Awards for Companies Promoting Experience-based Learning Activities for Youth in FY2020 organized by the Ministry of Education, Culture,
Sports, Science and Technology on March 12, 2021.

Green Initiatives with Customers and Employees• Preserving Diversity in Business Activities
When formulating business plans, we take into consideration theimpact on the related ecosystems and local community.

• Promoting Recycling of Resources
To prevent the depletion of bioresources and minimize degradationof the natural environment, we continuously and proactively engage
in recycling of resources.

KDDI

Environmental Education for Children “KDDI Field Guide on Plants andForest Wildlife” Received the Judging Panel Award of Excellence of theAwards for Companies Promoting Experience-based Learning Activities for
Youth in FY2020 (Japanese only)

PolicyKDDI Action Guidelines on Biodiversity Conservation▪ Basic Flow for Recycling of Mobile Phones

KDDI

Providing KDDI IoT Cloud—Toilet Vacancy Management and KDDI IoT
Cloud—Toilet Water-Saving Management (Japanese only)* Includes main body, batteries and chargers

au Shop Locator“Cohabiting with Storks”
Smart Agriculture Project• S hizuoka Prefecture
Participation in cultivation and conservation activities of pine trees in
Miho no Matsubara

Kansai Branch• Kyoto Prefecture P romotion of forest conservation activities in Mt. Tennozan• W akayama Prefecture P romotion of road repair activities for the world heritage site Kumano Kodo
pilgrimage routes• H yogo Prefecture P romotion of environmental conservation activities for stork habitat in Toyooka City

KDDI Sustainability Report 2021

89

Top Message

Corporate GovernanceRisk Management

Customer Relationship ManagementKDDI’s Commitment to Sustainability

Feature Article 1: KDDI’s Response to Climate Change

Feature Article 2: KDDI Sustainable Action

Materiality

Management Framework

Engagement

Brand Management

Corporate GovernanceKDDI’s Approach and Guidelines on Corporate Governance
As a telecommunications company that offers social infrastructure, wehave an important social mission of seamlessly offering stable communication services at all times under any circumstance. We also recognize
our social responsibility to resolve various social issues through our telecommunications business, which relies on precious assets shared by all
citizens, including mobile phone signals and radio waves. In order to fulfill
this social mission and honor this responsibility, it is essential for us toachieve sustainable growth and improve our corporate value over the medium to long term. We aim to contribute to developing a safe and truly
connected society by tackling social issues through dialogues and cocreation with all our stakeholders, including customers, shareholders,business partners, employees and local communities. We believe reinforcing corporate governance is key to our sustainable growth and increased
corporate value over the medium to long term. We adhere to Japan’s
Corporate Governance Code and strive to enhance a framework that en▪ Corporate Governance Framework
General Meeting of Shareholders
Elect / Dismiss

Board of Directors
14 Directors

Audit(including 5 Outside Directors)

AdviseConsult

Elect /
Dismiss/
Supervise

Elect / Dismiss

ReportAccounting
ReportAuditors
Audit &
Supervisory Board Judgment on
appropriatenessof
accounting
audit
5 Audit & Supervisory
Board Members(including 3 Outside Members)
Audit

ReportRepresentative Director

Instruct response

Corporate Risk Management Division

Audit
Financialinformation

Business Divisions / Group Companies

Instruct response

ReportReportDeliberateissues*Excludes the 7 directors
who double as executive
officers

Instruct response(Business execution)

Instruct response

34 Executive Officers*

Internal Control Division

Instruct /Supervise

ReportInternal Audit Division

Deliberation andReportingof Important
Elect / Dismiss
Matters

ReportDisclosure Committee

Full-time Directors

Information Security Committee(Deliberate on important matters)

ReportSustainability Committee

Corporate Management
Committee

ReportReportReportPolicyables transparent, fair, timely and decisive decision making. Also, in addition to our Mission Statement, we have formulated the KDDI Group Philosophy, which defines the mindset, value and principles to be shared by
officers and employees and continue to raise awareness of this philosophy
throughout the group.
By proactively adhering to Japan’s Corporate Governance Code andpracticing the KDDI Group Philosophy, which we consider inseparablefrom the standpoint of corporate management, we will endeavor to enhance corporate governance throughout the KDDI Group, including its
subsidiaries, to achieve sustainable growth and increased corporate value
over the medium to long term.
Corporate Governance Report

Corporate Governance Promotion FrameworkKDDI

We believe strengthening corporate governance to be one of the mostvital issues in enhancing corporate value, and we are working to improve
management efficiency and transparency.
KDDI is currently a company with board of company auditors, and inorder to properly manage business execution, we have introduced an executive officer system to assign authority, clarify responsibilities and ensure
effective and efficient business operations. We are also working to establish a framework for internal decision making to ensure timely management decisions. We have 14 directors (13 male, one female), including
five outside directors, three of whom are independent directors. There are
five Audit & Supervisory Board members (all male), including three outside
members, and all outside members are appointed as independent auditors.
We also provide outside directors / auditors with a wide range of information outside the board meetings, including on business strategies,
management status, R&D and technology. Each division’s generalmanager and manager provide detailed explanations of the general
overview of business and issues and regularly report on the management
status of subsidiaries. In addition, we provide opportunities to visit inhouse exhibitions of R&D achievements as well as the telecommunications
equipment and monitoring center and workplaces. We also provide two▪ Board of Directors FY2020 Meetings
Number ofmeetings held

Internal directors'
attendance rate

Outside directors’
attendance rate

Outside auditors’
attendance rate

11

100%

100%

90.9%

Evaluation of the Board of Directors’ EffectivenessPurpose of Conducting

We conduct a self-evaluation of the Board of Directors regularly every year in order to correctly understand its situation and continuously improve its operation.
Evaluation Process

We assess the effectiveness of the Board of Directors based on an evaluation by all the directors and Audit & Supervisory Board members themselves. The evaluation questionnaire combines a four-grade rating scale
and free writing so that the effectiveness of the board’s initiatives are assessed and matters to be improved are identified from two perspectives:
quantitative and qualitative.
The evaluation covers the most recent one year and is conductedannually. The results of the evaluation are reported back to the Board of
Directors to discuss future measures.
The main evaluation items are as follows:• Operation of the Board of Directors (composition of members, documents and explanations, provision of information, etc.)•S upervision of Executives (conflict of interest, risk management, management of subsidiaries, etc.)• Medium- to long-term discussions (review of medium-term businessplanning, monitoring of plan enforcement, etc.)
Evaluation Results
Summary90

KDDI Sustainability Report 2021

Criteria for Independence of Outside Directors / Auditors
In addition to the requirements in the Companies Act and the standards
provided by the Tokyo Stock Exchange, Inc., we have formulated our own
standards for judging the independence of outside directors / auditors.
Specifically, we consider those belonging to business partners that account for 1% or more of the company’s consolidated net sales or orders
placed not independent.

KDDI

The Board of Directors is composed of directors, including independent
outside directors. They determine important legal matters and supervise
the business execution of directors, etc., to ensure the appropriateness.

The evaluation confirmed that the Company’s Board is operating properly.
Even under the influence of COVID-19, it was evaluated that the decision-making and supervision worked sufficiently by holding online meetings as scheduled.

Systemreports every year on corporate ethics and risk management activities. To
enable more thorough information gathering capabilities while maintaining
the independence of outside directors, we hold regular liaison meetings
between outside directors and Audit & Supervisory Board members,
strengthening their cooperation. Accounting auditors also explain the results of audits to outside directors. To bolster information exchanges andsharing between outside directors, we hold liaison meetings with only outside directors and liaison meetings with outside directors and part-time
Audit & Supervisory Board members. We aim to raise the effectiveness of
the Board of Directors supervision of management and to invigorate discussions of management strategies at board meetings by providing a
deeper understanding of our business through these initiatives.

Directors and Board of Directors

Audit & Supervisory Board
Member’s Office

Audit

Business Ethics
Committee

Remuneration Advisory Committee
Nomination Advisory Committee

Deliberation
andReportingof Important
Matters

Elect / Dismiss

KDDI Group

SystemThe following two points have received particular praise:• Ensuring decision-making transparency
Human resources with different specialties have been appointed as outside officers, and various statements have been made at the Board of
Directors. Executives are responding positively, and open discussions
ensure transparency in decision-making.
• Enhancing information provision to outside officers
Many opportunities are offered for outside officers to deepen their understanding of our business by providing a chance to discuss with the person
in charge of each business, conducting facility tours and site visits, etc.
Improvements from Previous Evaluation

In 2020, based on the recognition that monitoring of subsidiaries, etc., isparticularly important, we decided to discuss toward more better business
management of each company after reorganizing the management supervision process of the investee companies and evaluating not only the financial situation but also the realization of synergies and the degree ofbusiness contribution. In addition, we have clarified reporting standards sothat risk information for the entire group can be grasped more quickly andreliably. As a result, we confirmed that improvements were made toward“timely and appropriate monitoring as a group and better supervision,”
which was pointed out as an issue in the previous evaluation.
Moving Forward

In this time’s evaluation, each director and Audit & Supervisory Board member made proposals from a broad perspective on various themes thatshould be discussed for the sustainable growth of the Company in a rapidlychanging business environment. These themes would be taken up in theprocess of formulating the next medium-term management plan, and theeffectiveness of the Board of Directors will be further improved by having
discussions among directors and corporate auditors utilizing their diverse
experiences and knowledge.
The 37th Annual General Meeting of Shareholders NoticeBusiness Report Video (Initiatives of the 37th Year) (Japanese only)KDDI Sustainability Report 2021

91

Top Message

Corporate GovernanceRisk Management

Customer Relationship ManagementKDDI’s Commitment to Sustainability

Feature Article 1: KDDI’s Response to Climate Change

Feature Article 2: KDDI Sustainable Action

Materiality

Management Framework

Engagement

Brand Management

Corporate Governance
Auditors and the Audit &Supervisory BoardKDDI

SystemThe KDDI Audit & Supervisory Board is composed of five members, including three independent outside members. It designs policies and execution plans for auditing as well as making decisions about important
items concerning auditing operations. In selecting outside auditors, we
see their abundance of experience along with a wide range of insight thattogether enable total management supervision and accurate auditing froma position independent of the directors.
Auditors attend meetings of the Board of Directors as well as otherimportant internal meetings, including meetings of the Corporate Management Committee. Directors, employees, directors of subsidiaries and theInternal Audit Division provide the auditors with the information they needto perform their duty as required in a timely manner and, if any matter potentially highly damaging to the company and / or its subsidiary is discovered, immediately notify the auditors. Furthermore, directors, employees,
directors of subsidiaries and the Internal Audit Division exchange theirviews with the auditors to facilitate coordination. The auditors also periodically receive reports from the accounting auditor on the annual accounting
audit plan, as well as on the progress and the results of the auditing andexchange opinions with each other as necessary. The Audit & Supervisory
Board Member’s Office has been established to assist the duties of Audit& Supervisory Board members, and dedicated staff appointed with theprior approval of the Audit & Supervisory Board or a full-time Audit & Supervisory Board member designated thereby receive instructions fromeach Audit & Supervisory Board member.
Audit & Supervisory Board FY2020
Meetings

Audit & Supervisory Board FY2021
Meetings (planned)

1112Internal Audits
We established the Audit Department in the Corporate Risk Management
Division, which is in charge of risk management of the KDDI Group. It conducts internal audits of overall KDDI Group operations on the importantrisks identified through risk management activities. Specifically, the Audit
Department verifies the appropriateness and effectiveness of internal control of KDDI and its subsidiaries from perspectives, such as governance,
legal compliance, information security and fraud prevention, based on theannual audit plan developed with risk-based approach. The results of internal audits are reported to the Company President and Audit & Supervisory Board members together with requests and recommendations concerning improvements and corrective measures to address highlighted
issues, and the status and results of internal audits are also reported to
the Board of Directors every quarter. In fiscal 2020, a total of 19 audits
were carried out to monitor the progress of corrective / improvement
measures and to prevent risks from materializing.

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KDDI Sustainability Report 2021

Nomination Advisory Committee andRemuneration Advisory Committee

KDDI

SystemTo ensure the transparency and fairness of systems and standards fornomination of directors and Audit & Supervisory Board members and their
executive remuneration, we have established the Nomination Advisory
Committee and the Remuneration Advisory Committee, which deliberates
and provides advice to the Board of Directors based on discussions thereof. The chair, vice-chair and more than half of the members of these committees are outside directors.
Nomination Advisory Committee Composition

Chair: Keiji Yamamoto (Outside Director)
Vice Chair: Goro Yamaguchi (Outside Director)
Members of Committee: Shigeo Ohyagi (Outside Director) Riyo Kano (Outside Director) 
Shigeki Goto (Outside Director) 
Takashi Tanaka 
Makoto Takahashi

Items Related to Organizational Structure
and Operations
Organizational form
Number of independent directors/auditors

KDDI

SystemCompany with board of company auditors
6 (including 1 female)

Items Related to Directors
Number of directors prescribed in the articles ofincorporation

20

Tenure period of directors prescribedin the articles of incorporation

1 yearPresiding officer of Board of Directors

Chair (President and Chairperson are separate posts)

Number of directors

14 (including 1 female)Outside directors

Appointed

Number of outside directors

5 (including 1 female)

Number of outside directors designated as
independent directors

3 (including 1 female)

Chair: Goro Yamaguchi (Outside Director)
Vice Chair: Keiji Yamamoto (Outside Director)
Members of Committee: Shigeo Ohyagi (Outside Director) Riyo Kano (Outside Director) 
Shigeki Goto (Outside Director) 
Takashi Tanaka 
Makoto Takahashi

Number of members prescribed in the articles ofincorporation

5

Number of members

5 (all male)Outside members

Appointed

Number of outside members

3 (all male)

Number of outside members designated as
independent members

3 (all male)

Meetings Held (FY2020)

OthersThe Nomination Advisory Committee met twice, and all members attended each time. The committee discussed the nomination of officer candidates at the General Meeting of Shareholders and other matters. The Remuneration Advisory Committee met once, and all members attended.
The committee discussed the payment of performance-linked remunerations and stock price-linked remunerations and other matters.

Number of executives

34 (32 male, 2 female)

Implementation of anti-takeover measure

Not implemented

KDDI Group System

We have established the Business Ethics Committee, a deliberative anddecision-making body for compliance-related items, and the Disclosure
Committee, a deliberative body for releasing information. We also haveestablished the Sustainability Committee, which deliberates the promotionof sustainability. We collaborate with our group companies to manage
their governance through various systems and frameworks in order toenforce the governance of the whole KDDI Group.
Sustainability Promotion Framework

Policy &SystemAppointment and Selection Standards

Director candidates: Meet one or more of the following criteria:•H ave specialized knowledge and experience in each business field
•H ave specialized knowledge or management knowledge suitable
for a supervisor•H ave a high degree of independence
Audit & Supervisory Board member candidates:
Have a wealth of experience and broad knowledge that will enable
more appropriate audits and oversight of overall management froma position that is independent from directors
For both types of candidates:
Have the character suitable for being a Board member, have highethical standards and not be self-serving
Nomination and Election Procedures for Directors

Items Related to Audit & Supervisory Board Members

Other Committees

KDDI(1) Select candidates based on the above criteria(2) Deliberate them at a Nomination Advisory Committee meeting(3) Approve them at a Board of Directors meeting(4) Elect them at the General Meeting of Shareholders

Remuneration Advisory Committee Composition

Approach to Composition of Board of
Directors

Policies and Procedure for Nomination of
Director and Audit & Supervisory Board
Member Candidates

Nomination and Election Procedures for Audit & Supervisory Board Members(1) Select candidates based on the above criteria(2) Deliberate them at a Nomination Advisory Committee meeting(3) Discuss them at an Audit & Supervisory Board meeting and gain approval(4) Approve them at a Board of Directors meeting(5) Elect them at the General Meeting of Shareholders

KDDI

Policy &SystemWe consider including diverse human resources and utilizing their various
knowledge, experiences and skills to be an important growth driver toward the Integration of Telecommunications and Life Design. We believethat ensuring diversity also in the Board of Directors can lead to better
management decision making.
To ensure a diversity of opinions and highly specialized knowledge
within the Board of Directors as a whole when it makes decisions, including on important management matters, and when its oversight is requested by law, the people selected for the Board of Directors meet the criteria
regardless of sex, age, or nationality.
Through discussions held by the Nomination Advisory Committee,
we determined that, from the viewpoint of achieving sustainable growthat KDDI Group, the following expertise and background were crucial
elements to look for in outside directors / auditors for KDDI’s Board of
Directors: experience as a President of a listed company (management
know-how), specialized knowledge in the telecommunications field (ability
to support our main line of business) and specialized knowledge in law,accounting or government (for compliance purposes). By nominating
directors and auditors with such qualities, we provide well-balanced
supervision and advice to management. The expertise of KDDI’s outside
directors / auditors can be found on page 98.

Consideration Criteria for Termination• When the performance of a business that a director is responsible for or
the achievements of a department a director is responsible for are exceptionally poor• When the company is harmed by a major misstep or intentional violationof a law, regulation or the Articles of Incorporation in their execution ofduties• When the company’s credibility and reputation are significantly damagedby the inappropriate seeking of personal gain through the abuse of position or authority• When the company determines that keeping a director is not appropriate
Termination Procedures for Directors• After deliberations at the Nomination Advisory Committee meeting, theBoard of Directors deliberates the matter as needed and implements
necessary measures for termination

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Top Message

Corporate GovernanceRisk Management

Customer Relationship ManagementKDDI’s Commitment to Sustainability

Feature Article 1: KDDI’s Response to Climate Change

Feature Article 2: KDDI Sustainable Action

Materiality

Management Framework

Engagement

Brand Management

Corporate Governance
Policies and Decision Process for Determining Remuneration for Directors and Audit & Supervisory Board Members
Policy on Determining Remunerations for Directors
Through discussion on how remunerations conducive to sustainable improvement of corporate value should be, the Board of Directors approved
the policy on determination of the content of individual remunerations,etc., for directors (hereinafter the “Determination Policy”) at the meeting
held on January 14, 2021.
1. Basic policy on director remunerations( i ) Policy on composition of director remunerations• The compensation of directors engaged in business execution isbased on the group’s business performance for each fiscal year,
progress toward the goals of the medium-term management plan,
and a compensation system linked to shareholder value in order toincrease the willingness to contribute to the improvement of corporate value over the medium to long term.
Specifically, it consists of four types: (1) basic remuneration, (2)performance-linked bonus, (3) performance-linked stock compensation, and (4) stock price-linked bonus.
•O utside directors who perform management supervising functions
without involvement in the execution of businesses receive only fixedamount remuneration that does not vary with the Company’s business performance.
(ii) Policy on individual compensation structure
As for the compensation composition of directors engaged in businessexecution, the remuneration portion linked to business performance(above (2) to (4)) is set in the range of 45% to 65%, according to the responsibilities expected of each position. For the President, the same
portion will be 60% or more based on the standard amount.
(iii) Policy on ensuring transparency and objectivity of director compensation•T he Company has established the Remuneration Advisory Committee
to ensure transparency and objectivity in the process of determining
system and levels for executive remuneration, along with the remuneration amounts based on these. The chair, vice-chair and half ormore of the members of the committee are outside directors.
•T he decision of the amounts of basic remuneration, performance-linked
bonus, performance-linked stock compensation, and stock pricelinked bonus are not delegated to the representative director, but theamounts are decided by resolution of the Board of Directors based on
the advice of this committee.
•T he Company’s executive remuneration levels are decided throughcomparison with sector peer companies, or with other companies ofthe same scale, in Japan, and take into account factors that include
the business environment of the Company.
The appropriateness of the remuneration levels is also validated
by the Remuneration Advisory Committee every year, with reference
to objective survey data from an external specialized organization.
2. Policy on the content of remuneration(evaluation index, calculation method, payment timing)( i ) Basic remuneration
Basic remuneration is monetary remuneration for which a fixed amountfor each position is paid on a monthly basis.
(ii) Performance-linked compensation (bonuses and stock compensation)• Performance-linked bonuses and the performance-linked stock-type
incentive program use operating revenue, operating income, profit,and other measures of “company performance” for the Group during
each fiscal year, along with the ”KPI achievement rate” of individual
businesses, which is linked to medium-term management plan targets as evaluation metrics.
• For performance-linked bonus, the amount of compensation for each

94

KDDI Sustainability Report 2021

individual is calculated by following formula. It is paid in the first June
after the end of each fiscal year.
Performance-linked bonus:
Basic amount by position multiplied by the Company’s operating
performance and KPI achievement rate.
• For performance-linked stock compensation, points for each individual are calculated by following formula. Points will be awarded in thefirst June after the end of each fiscal year, and when the director retires, the Company’s shares will be delivered according to the cumulative number of points.
Performance-linked stock compensation:
Basic points by position multiplied by the Company’s operating
performance and KPI achievement rate.
• Clawback Provision:
For those who have serious violations of the duties of directors, contrary to the delegation contract between the company and the directors, the payment of performance-linked remuneration will be suspended or a request for refund will be made.
Reasons for selecting each evaluation metric and results are as follows:(1) The Company’s operating performance:
Reasons for selection
A basic numerical value clearly showing a company’s businessperformance.
ResultAs stated in page 118.
(2) KPI achievement rate:
Reasons for selection
KPI achievement rate is to measure the achievement rate of eachbusiness strategy under the medium-term management plan, andtherefore linked to the Company’s business growth and performance improvement.
ResultDisclosure is not available for business-related reasons.
(iii) Stock price-linked compensation
Stock price-linked bonuses use “EPS growth rate” and “stock pricefluctuation rate” as evaluation metrics. Calculate the amount of payment for each individual by following formula, and pay money in the first
June after the end of each business year.
Stock price-linked bonus:
Basic amount by position multiplied by coefficient
Coefficient:(EPS growth rate x 50%) + (stock price fluctuation rate x 50%)A) EPS growth rate:
EPS at end of current fiscal year divided by EPS at end of previous
fiscal yearB) Stock price fluctuation rate (TOPIX growth rate): (Company’s stock price at end of current fiscal year / Company’s
stock price at end of previous fiscal year) divided by (TOPIX at end ofcurrent fiscal year / TOPIX at end of previous fiscal year)
Reasons for selecting each evaluation metric and results are as follows:(1) EPS growth rate:
Reasons for selection
To provide a strong incentive to achieve the target of the medium-term management plan by using an indicator set as a target
under the plan.
Result1.03(2) Stock price fluctuation rate:
Reasons for selection
To enhance a correlation between remunerations for directors andthe shareholders value by using an indicator that is directly linked
with an increase/decrease in shareholders value.
Result0.76

KDDI
Policies for Determining Remuneration for Audit & Supervisory Board
Members
Remuneration for Audit & Supervisory Board members is decided by theconsensus of the members of Audit & Supervisory Board. These members
receive flat-rate remuneration that is not affected by fluctuations in thecompany’s operating performance.
Remuneration for Directors and Audit & Supervisory Board Members(FY2020)
Unit: million yen
Executive classification

Total remuneration by type
Total
Numberremuneraof eligible
Basic
Stock
Bonus compensation
tion
members
remuneration

Directors (excluding outside
directors)

883

379

322

182

11

Outside directors

79

79

—

—

6

Audit & Supervisory Board
members (excluding outside
members)

57

57

—

—

3

Outside Audit & Supervisory
Board members

42

42

—

—

6

SystemTotal Remunerations and Bonuses of Board Members Who Receive
Over 100 Million Yen (4 people)
Unit: million yen
Name

Executive
Total
classification remuneration

Total remuneration by type
Basic
remuneration

Bonus

Stock
compensation

Takashi Tanaka

Director

149

52

72

25

Makoto Takahashi

Director

205

78

80

47

Takashi Shoji

Director

103

43

39

20

Shinichi Muramoto

Director

103

43

39

20

* President and Representative Director remuneration / average KDDI employee annual salary: 22
times* The number of remunerated directors and the amount paid as shown above include two directors
and one outside director who retired at the conclusion of the 36th Annual Shareholders Meeting
held on June 17, 2020. The number of directors who received bonuses was nine, excluding said
retired directors.
* The number of remunerated Audit & Supervisory Board members and the amount paid as shown
above include one Audit & Supervisory Board member and three outside Audit & Supervisory
Board members who retired at the conclusion of the 36th Annual Shareholders Meeting held on
June 17, 2020.
* In addition to the above, adjustment payments to directors in lieu of retirement allowance wereresolved at the 20th Annual Shareholders Meeting held on June 24, 2004 in connection with thecancellation of the executive retirement bonus system. Based on this, Hirofumi Morozumi, wholeft at the end of the 36th Annual Shareholders Meeting held on June 17, 2020, was paid 10 million yen in retirement allowance.

Types of Remuneration and Methods of Determination▪ Remuneration Structure for Directors and Audit & Supervisory Board Members
Types ofremuneration

Director

Method of determination

Maximum amount of
remuneration

Resolution ofshareholders meetings

Number of board members
at time of resolution

Basic
remuneration• Amounts determined by each director’s
professional ranking and in consideration of
the management environment and otherfactors.
• Base amount is set by using information fromoutside experts to verify appropriate levels.

Maximum monthly remuneration of 50
million yen

June 18, 2014
30th General Meetingof Shareholders

Directors (13)(including 3 outside directors)

Stockprice-linked
bonus

Bonuses are linked to and determined by the
EPS growth rate and rate of stock pricefluctuation rate.

Consolidated net income (profit for theperiod attributable to owners of theparent under IFRS) for each fiscal year
Within 0.1%

June 16, 2011
27th General Meetingof Shareholders

Directors (10)(excluding outside directors)(Applies to directors, executive
officers and administrative officers)
Total number of points (maximum)
granted per fiscal year to those eligible:
357,000 points(Converted at a rate of 1 point = 1
share)

Introduced:
June 17, 2015
31st General Meetingof Shareholders
Revised:June 20, 2018
34th General Meetingof Shareholders

9 Directors, 21 Executive
Officers, 50 administrative
officers(excluding overseas
residents, outside directors
and part-time directors)

Up to 130 million yen per year
(per fiscal year)

June 22, 2016
32nd General Meetingof Shareholders

Audit & Supervisory Board
Member (5)Performancelinked bonus

Performancelinked stockcompensation

Audit &
Supervisory
Board
MemberOnly flat-rate
remuneration

Bonuses are linked to and determined by therate of achievement of the group’s consolidated revenue, operating income and profit foreach fiscal year, as well as the achievement
rate of KPIs linked to performance goals foreach fiscal year.

Only fixed remunerations that will not fluctuate
depending on the Company’s performance arepaid.

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Top Message

Corporate GovernanceRisk Management

Customer Relationship ManagementKDDI’s Commitment to Sustainability

Feature Article 1: KDDI’s Response to Climate Change

Feature Article 2: KDDI Sustainable Action

Materiality

Management Framework

Engagement

Brand Management

Corporate Governance
Policies on Transactions between
Related Parties

KDDI

PolicyIn accordance with the Companies Act, we require competitive or conflictof-interest transactions by directors to be approved by and reported to theBoard of Directors.
Individual transactions with major shareholders are conducted in accordance with one of the basic principles of the KDDI Code of BusinessConduct, specifically, IX. Appropriate Accounting and Adherence toAgreements. In line with this principle, such transactions are decided uponin the same manner as other general transactions, through internal requests for decision, rather than by setting special standards. The internal
requests for decision are checked by auditors as well.
With regard to transactions with companies in which directors including outside directors concurrently serve as representative directors, we
strike a balance between comprehensive approval by and reporting to theBoard of Directors and internal requests for decisions on individual transactions to ensure the governance.

Outside Director Support System

KDDI

SystemIn order to ensure active discussions in the Board of Directors meetings,
we inform outside directors and Audit & Supervisory Board members inadvance of the dates and agenda items and provide agenda materials forupcoming meetings to help them gain a deeper understanding of theitems on the agenda. In addition, we make deliberations more substantial
by accepting questions beforehand and preparing more extensive explanations for the meetings based on the questions.
We also provide a wide range of information outside the board meetings, including on business strategies, management status, R&D andtechnology.
Each division’s general manager and manager provide detailed explanations of the general overview of business and issues and regularly reporton the management status of subsidiaries. In addition, we provide opportunities to visit in-house exhibitions of R&D achievements as well as thetelecommunications equipment and monitoring center and other workplaces. We also provide two reports every year on corporate ethics andrisk management activities.
To enable more thorough information gathering capabilities while
maintaining the independence of Outside Directors, we hold regular liaison
meetings between Outside Directors and Audit & Supervisory Board
members, strengthening their cooperation. Accounting auditors also explain the results of audits to Outside Directors.
To bolster information exchanges and sharing between Outside Directors, we hold liaison meetings with only Outside Directors and liaison
meetings with Outside Directors and part-time Audit & Supervisory Board
members. We aim to raise the effectiveness of the Board of Directors supervision of management and to invigorate discussions of management
strategies at board meetings by providing a deeper understanding of ourbusiness through these initiatives. On April 1, 2006, we established the
Audit & Supervisory Board Member’s Office, which supports Audit & Supervisory Board members, including outside members.

Communication with Shareholders
We consider our shareholders and investors to be especially important
stakeholders who fully understand and strongly support our business sustainability. Accordingly, we put the most emphasis on building trust-based
relationships with them in our management and strive for value-oriented
corporate management, active information disclosure and enhanced communication. As part of our ongoing effort to improve communication, wehold quarterly presentation sessions, where the management team presents the company’s financial results directly. In addition, we organize private meetings and small-scale meetings with investors both from Japanand abroad, attend various conferences hosted by securities firms andhold seminars for private investors.

KDDI

FY2020 Results•F inancial Results Briefing for Analysts and Institutional Investors: 
4 times (held along with the quarterly financial disclosure)• Session with institutional investors in Japan and abroad:
Approximately 660 times (including participation in 14 conferences
sponsored by securities firms)

Vitalizing the General Meeting of Shareholders and Facilitating the Exercise of Voting Rights
Measures

PolicyKDDI

SystemContent

Early disclosure of General Meeting of
Shareholders notice

We send a notice around one week before the stipulated day by mail.
Prior to that, the whole notice is disclosed on our website.

Scheduling to avoid days when many othercompanies hold their shareholders’meetings

We schedule the shareholders’ meetings to avoid days when many other companies hold their shareholders’ meetings.

Electronic voting system

Shareholders can exercise their voting rights via an online voting site. From the 2019 General Meeting of Shareholders, we introduced asystem where shareholders can log in to the online voting site using a QR code in an effort to make things more convenient.

Participating in an electronic voting
platform

We have joined the electronic voting platform provided by Investor Communications Japan (ICJ).

English version of convocation notice

We publish a full English translation of the convocation notice on our website, online electronic voting site and voting platform.

Others* E xtracted from the Corporate Governance
Report for details, see the website below

Shareholders can see the notice with their smartphone. In addition, to encourage the participation of more shareholders in the General
Meeting of Shareholders, we offer sign language interpretation as well as a hearing loop.
The video of the meeting is available to anyone on demand on our website with sign language interpretation.
We livestreamed the General Shareholders Meeting in 2021, so that shareholders can watch the proceedings and questions and answers
on the day from a remote location. We also received “advance questions” on the Internet. By using this, we are striving to revitalize communication with our shareholders even under the situation of COVID-19.
In addition, if a shareholder uses “Exercise of voting rights via the Internet,” a part of the reduced mailing cost will be donated to medical
support for COVID-19 countermeasures by a specified non-profit organization.

Corporate Governance Report
The 37th Annual General Meeting of Shareholders Notice96

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97

Top Message

Corporate GovernanceRisk Management

Customer Relationship ManagementKDDI’s Commitment to Sustainability

Feature Article 1: KDDI’s Response to Climate Change

Feature Article 2: KDDI Sustainable Action

Materiality

Management Framework

Engagement

Brand Management

Corporate GovernancePrincipal Activities of Outside Directors and Outside Audit & Supervisory Board Members

KDDI

Outside Directors

Activity &Results

Outside Audit & Supervisory Board Members
Reason for selection as an outside director of the company(if designated as an independent director includes reason for this designation)

Principal activities
in FY2020

Goro Yamaguchi
Male

Mr. Yamaguchi has a wealth of corporate management experience and excellent knowledge cultivated as the President
and representative director of one of the world’s leading electronic component and equipment manufacturers. On the
Board of Directors, he expressed a large number of broad opinions related to business administration and operations froma medium- to long-term perspective, and has thus contributed to improving the corporate value of the Company. He has
again been appointed as an outside director because the Company expects him to contribute to enhancing the supervising
function of business execution based on his management experience of the other company and provide advice from a wide
range of management perspectives.

Board of Directors
100%(Attended 11 of 11
meetings)

Keiji Yamamoto
Male

Mr. Yamamoto has excellent knowledge cultivated in IT development and electronics engineering divisions and abundant
management experience as a management at the one of the world’s leading auto-mobile manufacturers. On the Board of
Directors, he expressed a large number of broad opinions on promoting our 5G/IoT strategy, etc., from a medium- to longterm perspective, and has thus contributed to improving the corporate value of the Company. He has again been appointed as an outside director because the Company expects him to contribute to enhancing the supervising function of business execution and provide advice in the telecommunications field from technical perspectives.

Shigeo Ohyagi(Independent director)
Male

Mr. Ohyagi has a wealth of corporate management experience and excellent knowledge cultivated as the President andCEO of one of the world’s leading companies in the fields of synthetic fibers, chemical products, medicines and medical
treatment, and distribution and retail. On the Board of Directors, he expressed a large number of opinions from a mediumto long-term perspective independent of the management team, especially focusing on the life design domain that theCompany is promoting, global strategy and M&A, and has thus contributed to improving the corporate value of the Company. He has again been appointed as an outside director because the Company expects him to contribute to enhancing thesupervising function of business execution based on his management experience of the other company and provide advice
from a wide range of management perspectives. Moreover, based on his background, we judge there to be no risk of aconflict of interest with general shareholders and accordingly he has again been reappointed as an independent director.

Board of Directors
100%(Attended 11 of 11
meetings)

Riyo Kano(Independent director)
FemaleMs. Kano has abundant experience and superior knowledge, cultivated as a partner at a law firm and a committee memberof government committees. On the Board of Directors, she expressed a large number of technical opinions related to legalrisk management from a medium- to long-term perspective independent of the management team, and has thus contributed to improving the corporate value of the Company. She has again been appointed as an outside director because theCompany expects her to contribute to enhancing the supervising function of business execution and provide advice fromtechnical perspectives as a lawyer. Moreover, with this background, we judge there to be no risk of a conflict of interest withgeneral shareholders and accordingly she has been reappointed as an independent director.

Board of Directors
100%(Attended 11 of 11
meetings)

Shigeki Goto
(Independent director)
Male

Mr. Goto has a superior knowledge in information processing, telecommunications and network engineering, which is directly relevant to the business of the Company, as well as a deep understanding of cyber security that is valuable for theoperation of our business. On the Board of Directors meetings, he has offered technical opinions independent of the management team regarding operational policy as an information communications operator providing social infrastructure, froma medium- to long-term perspective, and has thus contributed to improving the corporate value of the Company. He has
again been appointed as an outside director because the Company expects him to contribute to enhancing the supervising
function of business execution and provide advice in the telecommunications field from technical perspectives. Moreover,with this background, we judge there to be no risk of a conflict of interest with general shareholders and accordingly he has
been reappointed as an independent director.

Board of Directors
100%(Attended 10 of 10
meetings)*

Name

Board of Directors
100%(Attended 11 of 11
meetings)

Name

Reason for selection as an outside Audit & Supervisory Board member of the company(if designated as an independent member includes reason for this designation)

Principal activities in
FY2020

Yukihiro Asahina(Independent auditor)
Male

Mr. Asahina has cultivated abundant experience and knowledge gained from many years of practical experience inthe public sphere and involvement in the execution of business at various organizations. From the perspective ofleveraging this knowledge and experience to monitor general management and to engage in appropriate audit activities, he has been appointed as an Audit & Supervisory Board member. Moreover, with this background, we judge
there to be no risk of a conflict of interest with general shareholders and accordingly he has been appointed as anindependent member.

Newly Appointed(June 23, 2021)

Toshihiko Matsumiya(Independent auditor)
Male

Mr. Matsumiya has abundant experience and knowledge as a Certified Public Accountant, as an employee of anauditing company, as the representative of an accountancy firm and as an auditor for other companies. From theperspective of leveraging this primarily accounting-related knowledge and experience to monitor general management and to engage in appropriate audit activities, he has been appointed as an Audit & Supervisory Board member. Moreover, with this background, we judge there to be no risk of a conflict of interest with general shareholders
and accordingly he has been reappointed as an independent member.

Board of Directors
100% (Attended 10 of 10
meetings)*
Audit & Supervisory Board
100% (Attended 10 of 10
meetings)*

Jun Karube(Independent auditor)
Male

Mr. Karube has cultivated abundant experience and knowledge as a representative director of a listed company.
From the perspective of leveraging this knowledge and experience to monitor general management and to engage
in appropriate audit activities, he has been appointed as an Audit & Supervisory Board member. Moreover, with thisbackground, we judge there to be no risk of a conflict of interest with general shareholders and accordingly he has
been reappointed as an independent member.

Board of Directors
100% (Attended 10 of 10
meetings)*
Audit & Supervisory Board
100% (Attended 10 of 10
meetings)** Mr. Toshihiko Matsumiya and Mr. Jun Karube were appointed as Audit & Supervisory Board members at the 36th Annual General Meeting of Shareholders. The attendance was counted after the appointment.

Composition of Board of Directors
Executive of Business: 9 persons

Chair
Independent Officers: 6 persons
Internal Directors* Mr. Shigeki Goto was appointed as a new director at the 36th Annual General Meeting of Shareholders. The attendance was counted after the appointment.

Outside Directors

Diversity and Expertise of the Outside Directors and the Outside Audit & Supervisory Board Members
Name(Major background)

Position in the Company

Experience as President of alisted company

Goro Yamaguchi(Kyocera Corporation)

Outside directors●

Keiji Yamamoto(Toyota Motor Corporation)

Outside directors

Shigeo Ohyagi(Teijin Limited)

Outside directors

Riyo Kano(Lawyer)

Outside directors

Shigeki Goto
(Waseda University)

Outside directors

Expertise in thetelecommunications field

Expertise in law,accounting or government

Audit &
Supervisory Board Members

Non-execution of Business: 10 persons

●
●
●
●

Yukihiro Asahina(The Ministry of Land, Infrastructure,
Transport and Tourism)

Outside Audit & Supervisory
Board members●

Toshihiko Matsumiya(Certified Public Accountant)

Outside Audit & Supervisory
Board members●

Jun Karube(Toyota Tsusho Corporation)

Outside Audit & Supervisory
Board members

●

Total
Outside Director

98

Outside Audit & Supervisory Board Member

KDDI Sustainability Report 2021

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Top Message

Corporate GovernanceRisk Management

Customer Relationship ManagementKDDI’s Commitment to Sustainability

Feature Article 1: KDDI’s Response to Climate Change

Feature Article 2: KDDI Sustainable Action

Materiality

Management Framework

Engagement

Brand Management

Risk ManagementKDDI’s Approach (Risk Management and Internal Control)

KDDI GroupIn the ever-changing business environment, the risks that companies faceare increasingly diverse and complicated.
We define factors and events that negatively influence the achievement of our business goals as risks and consider enforcing risk manage-

Policyment a material business challenge. In order to be sustainable and responsible to society, we promote risk management initiatives throughout
the KDDI Group.

Our Risk Management and Internal Control

KDDI Group System

We have established a system to centralize the management of risks with
the Corporate Risk Management Division at the core.
Furthermore, we are promoting risk management throughout theKDDI Group, including subsidiaries, in order to realize the continuous
growth of the entire group. We have appointed 28 Internal Control System

Managers within KDDI and 45 at group companies, as well as five Internal
Control System Directors to oversee their activities. Under their leadership,
we introduce and run internal control systems, carrying out risk management activities and run operational quality improvement activities to foster
a company culture in which risks are less likely to arise.

Risk Management Activity Cycle

Management Level

Present significant risks• Audit in accordance with laws andthe articles of incorporation relating
to directors’ business execution

Report the situations

Risk management by sectors and subsidiaries
Collect and analyze information
and assess risks

Board of Directors

P• Decide basic policies for building internal control framework
Improveand adapt

Corporate Management Committee: President• Evaluate internal control and announces the results

Representative: Internal Control Department,
Corporate Risk Management Division

Accounting
Auditors

SystemIn order to prevent critical events for the company, we at KDDI consider
that it is important to recognize signs of danger and implement preventive
measures before the situation worsens. Based on this idea, we follow the
PDCA cycle for risk management. We also have an organizational framework for risk management in place to ensure any risks we find will be addressed promptly and appropriately.

▪ KDDI Group Internal Control Framework
Audit &
Supervisory
Board
Members

KDDI

A

D
C

Examineandimplement
countermeasures

Risk Identifying ProcessKDDI Group Activity

We regularly examine information about risks to identify significant risks
that seriously influence corporations, and discuss measures to reducesuch risks and their impacts as much as possible in case we face them.
In order to ensure the achievement of our business goals, in fiscal
2020, we selected 29 significant risks based on issues that manifested in
the past and changes in the business environment, and held internal audits centered on risk prediction, the reduction of significant risks and risk
approach. The selected significant risks include cyber-attacks, an areathat is becoming increasingly complex, global businesses, and issues relating to new business fields we are entering, such as e-commerce, finance and accounting, and energy, which aim to make the Integration of
Telecommunications and Life Design a reality. We have also identified
risks arising from the expansion of the group through M&A as significant
risks and have implemented more robust measures against them.
In order to minimize information security risks, we have also established a common standard applicable group-wide to improve the level of
information security across the group, including newly joined group companies.
The status of these significant risks is also reflected on business risks
that are revealed in the Securities Report since it relates to the finance as
well.
Securities Report / Business Risks (Japanese only)
Basic Policy for Constructing an Internal Control System

Execute intradivisional monitoring
Internal audits• Formulate implementation plans• Manage overall progress• Support operations of implementing divisions• Audit evaluations by managers

KDDI GroupInternal Control System Directors (5)Internal Control System Managers (KDDI: 28, group companies: 45)

100

As of April 1, 2021

Parent Company Business Divisions

Parent Company Corporate and Support Divisions

Subsidiaries

Secretariat

Secretariat

Secretariat

Individual Organizational Units

Individual Organizational Units

Individual Organizational Units

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Top Message

Corporate GovernanceRisk Management

Customer Relationship ManagementKDDI’s Commitment to Sustainability

Feature Article 1: KDDI’s Response to Climate Change

Feature Article 2: KDDI Sustainable Action

Materiality

Management Framework

Engagement

Brand Management

Risk Management
Basic Policy for Constructing an Internal Control System
Based on the provision of Article 362, Paragraph 5 of the Companies
Act, we passed the Basic Policy for Constructing an Internal Control
System at a meeting of the Board of Directors. In addition, we publicly
announce resolutions and our operational status to ensure the fair,KDDI Grouptransparent and efficient execution of our corporate duties and maintain an effective system for internal controls to raise the company’s
quality level.

PolicyBasic Policy for Constructing an Internal Control System▪ Main Operational Risks
Risk

Risk background• The need to provide user support for product defects problems
attributable to the rapid expansion of the commerce business• Inability to acquire needed bandwidth we need• Increase in competition due to new high-speed wireless datatechnology• Possible rise in connection fees with other telecommunications
operators• Intensifying competition as a result of changes in the businesslandscape due to partnerships with other industries, sales packages that include other products (such as telecommunications+ power), the emergence of MNOs and MVNOs in the market
and other companies expanding their business fields

Potential impact on KDDIKDDI’s response• Negative impacts on the financial position and operations of theKDDI Group• The creation of new value and the achievement of sustainable growth in the 5G / IoT
era domestically and globally with a business strategy that focuses on the “integrationof telecommunications and life design,” which centers on telecommunications andexpands peripheral businesses• Internal privacy breaches•U nauthorized access from external networks• Could seriously damage the brand image of the KDDI Group. In
addition to a possible loss of customer trust, we could also beforced to pay substantial compensation or surcharge• In the future, we may face higher costs to develop the frameworknecessary to protect the confidentiality of communications andcustomer privacy• Could have a negative impact on the financial position and / orearnings performance of the KDDI Group• Establishment of the KDDI Code of Business Conduct, KDDI Security Policy, andKDDI Privacy Policy• Establishment of the Business Ethics Committee• Reinforcement of various technical, organizational and human safety management
measures• Educating all employees on the protection of confidentiality of communications andcustomer privacy• Working with our external partners, particularly with our retail network of au Shops, tostrengthen management through the improvement of shop operations, monitoring
and training• Establishing Information Security Committee• Acquiring external authentication (ISMS) in the whole company• 24 / 7 monitoring of external attacks by specialists

System failures due to natural disasters
and other unforeseen events• Natural disasters, such as earthquakes, tsunamis, typhoons, orfloods, as well as secondary damage from the spread of toxic
substances caused by natural disasters• Worldwide
spread of an infectious disease (pandemic)• War,

terrorism, accidents, or other unforeseen events• Powerbrownouts or blackouts• Computerviruses or other forms of cyber-attack and hacking•O peration system hardware or software failures• Flaws
in communication equipment and services• Service outages or interruptions as a result of large-scale natural
disasters or accidents caused by climate change, etc.
• Loss of opportunities to offer products and services due to service
outages as a result of failures in network systems or communication equipment, substantial billing errors, closing of distributors, or
suspension of distribution could damage the brand image of theKDDI Group and lead to loss of customer trust and decreased
customer satisfaction, which could have a negative impact on theearnings performance• The Company’s future business activities and earnings performance could be affected by customers’ lost opportunities to use
au Shops due to shortened store operating hours, reduced mobile
data usage due to increased WiFi usage for remote work, and thevarious influences on our life design business and solution services
for corporate customers• Initiatives to improve reliability of our network and prevent service outages by implementing Business Continuity Planning• Establishing a disaster response headquarters as early as possible in the event of an
emergency or disaster• Contract procedures available online 24 hours a day• Initiatives to ensure the safety of customers and employees

Laws, regulations, and government
policies relating to thetelecommunications sector• Revisions to the calculation formula for inter-operator connection fees and / or accounting methods• Revisions to designated telecommunications facilities system
and / or the regulations on prohibited activities•R evisions to the universal service systems• The emergence of MNOs and MVNOs in the mobile communication market• Revisions to the frequency allocation system and / or spectrum
user fee system•R ules regarding electricity retail and financial business•R ules regarding the usage of personal data

• The KDDI Group’s earnings performance could be negatively impacted by the revision or abolishment of laws and regulations orformulation of government policies relating to telecommunications
and finance business• The KDDI Group’s earnings performance could be negatively impacted if the company’s competitive advantage is relatively diminished as a result of competition policies• Taking appropriate actions based on laws, regulations and government policies• Advocating measures for fair competition with other telecommunications operators
through various deliberation councils and study sessions as well as the public comment system of the Japan’s Ministry of Internal Affairs and Communications

Acquisition of human resources,
training and personnel management•R ise in human resources investment costs in the future• If we are unable to handle matters appropriately in the future, theKDDI Group’s brand image could be damaged, leading to loss ofcustomer trust and a negative impact on our earnings performance• Working together across the entire company to support personnel training and careerdevelopment to keep up with technological innovations• Appropriate personnel management and the promotion of work style reforms basedon the law

Competitors, rival technologies andrapid market shifts

Protection of confidentiality ofcommunications and customer privacy

Initiatives in Response to the Internal
Control Reporting System (J-SOX)

KDDI Group

Activity &Results

In response to the internal control reporting system based on the Financial
Instruments and Exchange Law implemented in fiscal 2008, we conducted evaluations of the internal controls at KDDI and 11 major group subsidiaries (totaling 12 companies) in and outside Japan to ensure reliability of
our financial reporting. The results of these evaluations were compiled in
an internal control report, which was submitted to Japan’s Prime Ministerin June 2021, as well as disclosed to investors.
Securities Report / Internal Control Report (Japanese only)

Activities toEnhance Operational Quality

KDDI

System &Awareness
Raising

In conjunction with the response to the internal control reporting system,
we established an Internal Control Department that promotes initiatives for
improving the overall operational quality of the whole company, and Internal Control System Managers in each department facilitate initiatives thatenhance the efficiency and standardization of operations to do so.
Initiatives that are successful at improving business operations areadded to a database, enabling all employees to put them into practice intheir own departments.
Furthermore, to further raise each employee’s awareness and motivation regarding the improvement of operations, we have introduced the
Operational Quality Improvement Prize to recognize excellent and ambitious initiatives. In addition, we have started working on the introduction ofrobotic process automation (RPA) across the company as a way of improving operational quality, productivity, and efficiency at the same time,
starting with the preparation of the RPA system environment and education programs.
Activities to Enhance Operational Quality• e-learning training• Sharing messages from executive officers and good examples of initiatives in e-mail newsletters and internal magazines• Implementation of Operational Quality Improvement Prize (Once a year)* For details, please see the Business Risks section of the Securities Report for the year ended March 31, 2021.

Securities Report for the year ended March 31, 2021 (Japanese only)

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KDDI Sustainability Report 2021

103

Top Message

Corporate GovernanceRisk Management

Customer Relationship ManagementKDDI’s Commitment to Sustainability

Feature Article 1: KDDI’s Response to Climate Change

Feature Article 2: KDDI Sustainable Action

Materiality

Management Framework

Engagement

Brand Management

Customer Relationship Management
Customer Satisfaction Improvement
SystemKDDI

Policy &System

We will continue aiming to achieve sustainable business growth by enhancing customer engagement and actively breaking ground in new life
design fields, especially those related to telecommunications. To better
understand the needs of our customers and provide more fulfilling andconvenient lifestyles, we aim to further improve customer experience (CX)
and provide customers with exciting experiences by expanding our life design services into areas like commerce, energy, finance and entertainment, focusing on our existing communication services.
Toward that aim, we at all departments strive to refine and connect all
points of contact with the customers, working on cross-departmental improvements across au Shops, CS, My au app, communication and soundquality, products, website, rates and services. We share the progress at
the CX Promotion Meeting that is held once a month, attended by top executives, to speed up the process.
Many evaluations, criticisms and comments we receive from customer
questionnaires form the guidelines for our behavior. Reflecting these opinions sincerely in our business completes the cycle of offering further value
to our customers.

Collecting Customer Feedback

KDDI

System

We sincerely listen to valuable customer feedback and immediately translate it into action to continuously refine our services and quality. Based on
their opinions and demands, we analyze and identify problems using theinternal system that is updated daily. When prompt decision making is required, management executives and representatives of related divisions
meet and discuss how to solve problems throughout the company. In order to share customer feedback with the whole company, we also havean intranet all employees can access and see their comments (excluding
their personal information).
Improvement Initiatives (Japanese only)
Services that Have Come from Customer Feedback (Japanese only)

Email inquiries

Visualization and Improvement of Customer Satisfaction
in au Sales Channels
In response to diversified customer needs, in June 2021, KDDI revised thecontent of the questionnaire survey to customers visiting its shop so that
we can confirm if they are satisfied with the service at the shop. We developed a system that enables us to confirm the survey results on the following day of the survey at the earliest.
We will work hard to improve store-front customer satisfaction andcustomer experience in the au sales channels throughout Japan based on
survey results.
This initiative is inviting more people to choose au.

KDDI
Other Initiatives
Annually Approx.
12 million

Questionnaire survey
au Shop inquiries

Analysis of customer
feedback
Clarification ofproblem

Inquiries
Opinions / Advice

System &Activity

Multilingual Support Initiatives at au Shops

CustomerFeedback
Telephone inquiries

KDDI

Multilingual Support Initiatives
Services are available in multiple languages at au Style shops and au
Shops.
Available languages: 1
 3 in total(English, Chinese, Portuguese, Korean, Vietnamese,
Tagalog, Spanish, French, Thai, Nepalese, Hindi,
Russian and Indonesian)▪ Framework for Collection of Customer Feedback

Customers

Initiatives for Customer Satisfaction

Improving customer experience(improvement of service, quality, response, etc.)

Examination andimplementation of
improvement plans

Corporate Management
Committee
Important matters
Discussions duringcommittees involving
management executives
and representatives ofrelated divisions

Initiative
Customer feedback
shared between
all employees

CX AWARD

au Support
Moviesau Smart Support

Details
KDDI holds the annual contest to praise day-to-day initiatives
at au Style shops and au Shops and share good practices
across all the stores
Movies explaining how to use smartphones and popular
apps in video form
au Support Movies
We offer a membership-based support service offering tailored support for customers using smartphones
au Smart Support (Japanese only)

Initiatives for Corporate Customer
Satisfaction

KDDI

Activity

Right now, KDDI’s many corporate customers are promoting digital transformation (DX) to grow their businesses.
To respond to the diversified and sophisticated needs of such customers, KDDI is committed to its policy of “creating new value through DX
together with our customers.” To this end, we strive to communicate
closely with our customers and look at matters from their perspectives inan effort to help turn their DX visions into reality.
KUG: KDDI Enterprise Users’ GroupKDDI Enterprise Users’ Group (KUG) is an organization operated by our
corporate customers. In KUG, which KDDI supports as the organizer,
members from various industries gather and hold seminars, observation
tours and workshops in order to interact, study and cultivate friendships.
These activities also provide opportunities for KDDI to collect opinions andfeedback from members to improve services and develop new products.
Through exclusive observation tours and seminars, KUG aims toaccelerate the communication between its members and KDDI.
FY2020 Activity Results• Online seminar“Key to successful zero-trust network supporting remote working”• Online seminar“Security measures learning from examples and demonstrations”• Virtual tour of KDDI research atelier
KDDI Enterprise Users’ Group (Japanese only)

Customer Satisfaction Survey

KDDI

Results &Analysis

Assessments of au Services in the Consumer Market
Consultations

Evaluation

J.D. Power: 2
 021 QR Code and Bar Code Payment
Service Satisfaction Survey

Ranked highest in overallsatisfaction

Assessments of KDDI Services in the Corporate Market
Consultations

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KDDI Sustainability Report 2021

Evaluation

J. D. Power: 2
 020 Business Mobile Phone Service
Satisfaction Study <Large Enterprise /Midsize Business Segment Divisions>

Ranked highest in overallsatisfaction(five consecutive years)

J.D. Power: 2
 020 Business Mobile Phone Service
Satisfaction Study <Small and Medium
Business Segment Divisions>

Ranked highest in overallsatisfaction

J. D. Power: 2
 020 Business IP Phone & Direct Line
Phone Service Satisfaction Study

Ranked highest in overallsatisfaction(eight consecutive years)

J. D. Power: 2
 020 Business Network Service
Satisfaction Study <Large EnterpriseBusiness Segment Divisions>

Ranked highest in overallsatisfaction(two consecutive years)

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Top Message

Corporate GovernanceRisk Management

Customer Relationship ManagementKDDI’s Commitment to Sustainability

Feature Article 1: KDDI’s Response to Climate Change

Feature Article 2: KDDI Sustainable Action

Materiality

Management Framework

Engagement

Brand Management

Brand ManagementKDDI’s Approach (Brand Management)

KDDI

PolicyKDDI, au, UQ mobile, and povo each have brand slogans.
The slogan for the KDDI brand, “Tomorrow, Together,” is the common
message for corporate businesses, expressing the brand value effectively.
KDDI has developed the multi brand strategy for the consumer market, taking full advantage of the features of each brand, under the slogans:“Explore the extraordinary” for the au brand, “Simple-wo-minnani” (Simple
for all) for the UQ mobile brand, and “Kimini-pittarino-jiyuue, isshoni” (Together to the freedom that is right for you ) for the povo brand.
The slogans are a reflection of our commitment to better understandour customers and continue being the company that people choose. They
also express our endeavors to increase the trust we have earned frommany companies and to work together as partners. We are making company-wide efforts to promote the improvement of customer experience,
which leads to customer satisfaction. Establishing a strong brand andmanaging it properly is one of our key issues. For the proper managementof our brands, we are striving to raise employees’ awareness of issues likeunauthorized use of trademarks and inappropriate use of logos by third
parties, so as not to affect customer satisfaction or bring any disadvantage to society.

Advertising Policy to Establish Our Brands

KDDI

PolicyTrue to our Company Vision “The company the customer can feel closest
to,” “A company that continues to produce excitement” and a company“Contributing to the sustainable growth of society,” we aim to promote theimprovement of customer experience. We aim to understand our customers through all points of contact and provide the best services at the righttime.
Our advertising and publicity are strongly promoted as one way torealize this policy.

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KDDI Sustainability Report 2021

Our Approach toAdvertisement Production

KDDI

PolicyAdvertisement and Brand Building Efforts

KDDI advertisements are created with the idea of contributing to improved
customer satisfaction, based on the rules of the Act against Unjustifiable
Premiums and Misleading Representations as well as voluntary standards
and guidelines on placement of telecommunications services advertisements, to avoid interfering in the autonomous and rational choice of customers by unfair enticement.
When creating an advertisement, each department shares detailed
information about the purpose of the advertisement and the details of
the product or service. The created advertisement is inspected at eachdepartment before it is submitted to the review department for final approval. As a rule implemented since 2013, advertisements cannot be usedwithout passing the final review. We select media that can be effective
points of contact for communication with customers, as well as being costeffective.

For the initiatives of au, we rolled out the Santaro TV commercial series
from January 2015 and “too sophisticated Takasugi-kun” series from January 2018. In an effort to spread the brand image of au under the brandslogan “Explore the extraordinary,” we will continue to run both series withthe aim of further increasing our popularity.
For UQ mobile as well, we are striving to get the brand slogan, “Simple-wo-minnani” (Simple for all) widely recognized among consumers andimprove the brand’s favorability.

FY2020 Violation of Regulations
There were no violations of any regulations related to marketing or communication (the Act against Unjustifiable Premiums and Misleading Representations).

* Listed as Brand of the Year for six consecutive years

FY2020 Review Results• Number of advertisements inspected by the review department: 5,210• Results of review: Advertisements that might violate laws and regulations
were all rectified
Promotion Regime
Brand Communications Division

Advertisement Department

Brand Management Department• Formulates communication plans• Promotes communication activities• Manages owned advertising websites• Develops and promotes brand strategies• Develops and manages trademarks

External Recognition
au (Subject: The Santaro TV Commercial Series and the “Too Sophisticated Takasugi-kun” Series)
CM Soken Consulting
FY2020 Commercial Popularity Ranking by Brand:
First Place (November 2019 to October 2020)

UQ mobile (Subject: The Three Sisters TV Commercial Series)
FY2020 Commercial Popularity Ranking by Brand:
Seventh Place (November 2019 to October 2020)
KDDI
FY2020 Commercial Popularity Ranking by Company:
Third Place (April 2020 to March 2021)
SponsorshipAs one of our initiatives to improve our brand value, we sponsor sports
contests, sports organizations and social and cultural projects. By offering
new ways of watching sports in the upcoming age of 5G popularity andthrough other forms of support, we aim to create new value and provide
excitement for customers.

Soccer

As a supporting company of Japan’s national soccer
teams, we support all the soccer teams representing thecountry, including the Samurai Blues (men’s team) andNadeshiko Japan (women’s team). We also sponsor the
J.League teams Kyoto Sanga F.C. and Nagoya Grampus.

BaseballWe support baseball as a sponsor of the Yokohama
DeNA BayStars.

Sport climbing

As the official sponsor of the sport climbing category of
the Japan Mountaineering and Sport Climbing Association, we support sport climbing and sponsor “Team au,”made up of five climbers.

Motor sports

We sponsor the TGR Team au Tom’s in Japan’s biggest
GT race, the Super GT.

E-Sports

E-sports are growing in popularity around the world, andwe support the spread of e-sports in Japan as the official
sponsor of the Japan eSports Union (JeSU) and as asponsor of the pro team DetonatioN Gaming as well as
various e-sports competitions and events.

UNIVASWe support the promotion and development of university
sports as a partner of the Japan Association for University Athletics and Sport (UNIVAS).

KDDI

Activity &Results

GINZA 456 Created by KDDI
Since September 2020, we have run a concept shop where customers
can turn their imagination into reality and enjoy experiencing “Explore theextraordinary” by utilizing au 5G and other cutting-edge technologies. On
the first floor, you can see the latest 5G smartphone models, au official
accessories and 5G-related items offered by KDDI. On the first basementlevel, you can enjoy experience-based contents utilizing au 5G and othercutting-edge technologies in a space with a sense of immersion. On thesecond floor, the latest products of au/UQ mobile are displayed and visitors have access to advice on product purchasing, subscription, and after-sales service.
We hope that customers can feel “Tomorrow, Together” and “Explore
the extraordinary” through the brand experience at GINZA 456 Created byKDDI.

Starting Up Old Phones: A Trip Down Memory Lane
Starting Up Old Phones: A Trip Down Memory Lane is an event held byKDDI to recharge and start up old phones that people used to use to printout nostalgic photos stored in the device. The service is free of charge
and also accepts phones that are not au. So far, it has been held 229
times at KDDI directly managed outlets across Japan and at various
events. Over 8,150 people have participated (as of June 2021).
We had suspended events since March 2020 due to the spread of
COVID-19, but in September 2020 resumed holding some of the events inaccordance with the COVID-19 guidelines outside the areas subject to thestate of emergency and the priority preventative measures.

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Top Message

Stakeholder Engagement

Community Involvement and Development

External Recognition

KDDI’s Commitment to Sustainability

Feature Article 1: KDDI’s Response to Climate Change

Feature Article 2: KDDI Sustainable Action

Materiality

Management Framework

Engagement

External Assurance

Stakeholder Engagement
Stakeholder Engagement : Our Approach and System

KDDI

Results of Stakeholder Engagement▪ Stakeholder Correlation Diagram

Stakeholders

Service Users

Service Users
Customer
Relationship

Employees
and Their
Families

Satisfaction ofService Users
Job Satisfaction

Shareholders
andInvestors

KDDI

Business
Partners(Suppliers)

Partnership

Collaboration andCooperation

Customers

Administrative
Organizations /Industry
GroupsLocal
Communities

Shareholders andInvestors
Corporate
Governance

NPO/NGO

Community
Involvement

Activity

We conduct stakeholder dialogue led by the Executive Officer of Sustainability. Through the dialogue, we incorporate the opinions and requests ofstakeholders in our corporate management to build schemes for making
further improvements.
In fiscal year 2020, we held an “SDGs briefing” for investors and analysts to explain KDDI’s initiatives for transformation and social contribution
through telecommunications, focusing on the KDDI Sustainability Action
Policies and the goals in the KDDI Sustainable Action.
Stakeholder Dialogue

We work to build a
relationship of trust
through honest andfair disclosure of
information andactive communications.

Dialogue andCollaboration

Local Communities

KDDI

KDDI

We collaborate andwork in partnershipwith local communities and fulfill ourduties as a corporate
citizen.

Frequency

Content

Influence on the management
and business activities

Releases on media, websites
and social media

As needed• Spread information about thecompany and business activities• Spread information appropriately

Inquiries at customer center(telephone / web)As needed

au Shop service counters / retail
networks

As needed• Response to inquiries from
customers• Share feedback to improve our
products and services acrossthe company• Improve customer experience• The departments in charge
improve convenience of
products and services andguarantee safety

General Meeting of Shareholders

Once a year
Four times a year

NPO/NGO
Community
Involvement

Administrative
Organizations /Industry Groups
Participation inExternal Initiatives

• Report financial results andbusiness initiatives, etc.

Disseminating information throughShareholder Communication

Twice a year

Session with institutional
investors in Japan and abroad

Over around
660 times a year• E
 xplain and exchange opinions
on financial results and businessinitiatives, etc.

Seminar for investors

Several times
a year• Specific sessions such as SDGs
briefings, seminars for private
investors, etc.

Spread information throughwebsiteAs needed• Dissemination of informationsuch as various reports,
documents and details of
initiatives

Social contribution programs ineach region

As needed

Information Ethics Classes (KDDI
Smartphone and Mobile Phone
Safety Classes, Raise Disaster
Risk Reduction Literacy with Your
Smartphone) and environmental
education held at schools andcommunity facilities

We contribute to abetter society
through dialogue andcooperation.

As needed

We comply with thelaw and maintainsound relations.

Activities funded by the KDDI
Foundation

As needed

Events hosted in cooperation
with NPO/NGO

As needed

Participation in conferences /councils

As needed

Participation in Initiatives

As needed• Strengthen governance• Deliver information using
websites and other information tools with a sincere
attitude• Promote efforts to achieve
SDGs• Exchange opinions through local
administrative organizations,etc.
•Interact with local residents andcontribute to local safety anddevelopment• Reflect opinions on theenvironment conservation
activities• Solve social issues inpartnership with administrative organizations and local
communities• Practice social contribution
activities across the world• Participate in progressive
initiatives

• Understand the social issues
and needs in each community• Collect information and exchange opinions• Make proposals on various
guidelines and deregulation

Four times a year

• Conduct surveys on employees’
motivation to actively contributeto the company and their work

Four times a year

• Direct
communication between
employees and the President

Eight times a year

• Direct communication between
employees and board members

A dozen times
a year• Discuss and promote mutual
understanding about labor
management issues

KDDI Sports Festival(Co-hosted with the labor union)

Once a year *• Create a sense of unity throughencouraging interactions among
KDDI Group employees
including their families andmanagement• Create a sense of unity
throughout the company

Surveys and liaison conference

Once a year• Share KDDI Sustainable andResponsible Procurement Policy• Promotion of responsible
procurement through supply
chain

Employee Awareness Survey(Employee Engagement Survey)

Excitement Tours
Employees and Their
Families
Labor Practices

Business Partners(Suppliers)
Supply Chain

KDDI Sustainability Report 2021

• Share business reports,
consolidated financial reports,financial statements, auditors’
reports

Community Involvement

Enhancing Internal Understanding of Sustainability and SDGs

108

Activity &Results

Communication methods

Results briefing

All Stakeholders

Sound
Relationship

Stakeholder Dialogue

We strive for thesatisfaction of ourservice users(customer experience) by living up to
their trust andoffering safe andvaluable products
and services.

Trust

=

Stakeholders that influence our businesses are diverse, ranging from
customers, shareholders, business partners, employees and their families
to local communities, etc. We at KDDI implement various activities to offer
new, satisfying experiences to all stakeholders in our business operations.
We also use the GRI Sustainability Reporting Standards, SASB, IIRC,
ISO 26000 and other global sustainability standards; JIS Z 26000, Environmental Reporting Guidelines, Guidance for Collaborative Value Creationand other domestic standards; and checklists that consist of questions
we receive from investors. With these, we create and implement policies
for assessing our current conditions and addressing management issues.
The results of engagement efforts are not only reported and shared within
the company but also reported at relevant committees and management
meetings and reflected in the decision-making process. KDDI values the
dialogue with all our stakeholders who support us. We will continue tobuild up collaboration with our stakeholders and tackle societal issues tocontribute to the development of a truly connected society.

Policy &SystemWe continue to be a
dynamic company thatprovides job satisfaction to all employees.

We build partnerships
based on mutual trustand carry out
appropriate businessactivities with fair andopen transactions.

Opinion exchanges between
management and employees* The project was not conducted in fiscal year 2020 due to the spread of COVID-19.

• Analyze the state of companywide organizational culture
and identify issues to be
tackled in each department• Respect human rights

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Top Message

Stakeholder Engagement

Community Involvement and Development

External Recognition

KDDI’s Commitment to Sustainability

KDDI

Activity &Results

PositionInternational Standardization of Telecommunications
ITU-R(Radio Sector)• SG4-related Meeting WP4C Chair
(Satellite Communications)

ITU-T(Standardization Sector)• SG3 Chair (Rates & Policy)• SG9 Chair (Video Transmission & CATV)•S G17 Vice-Chair (Security)

3GPP(Third Generation Partnership Project)• SA Plenary Vice-chair (Service & System Aspects)

GSMA (GSM Association)• Director

O-RAN ALLIANCE• Director

Building a Safe and Secure Society
Japan Smartphone Security Association(JSSEC)

Vice Chair / Director

Telecommunications Carriers Association
Chairman(TCA)
Promotion of Diversity and Inclusion
NPO J-Win

Materiality

Management Framework

Engagement

Community Involvement and Development

We endeavor to participate and play a leadership role in initiatives andorganizations in and outside Japan to contribute to the development of atruly connected society.
Initiative

Feature Article 2: KDDI Sustainable Action

External Assurance

Stakeholder Engagement
Participation in External Initiatives

Feature Article 1: KDDI’s Response to Climate Change

Advisory Board Member

TopicsPublication of KDDI’s Efforts Related to Measures against
the Spread of COVID-19 in External Initiatives
ITU:
KDDI’s free provision (for a limited period of time) of the “Book Pass
Unlimited Reading Plan” was introduced in a platform for sharing member countries’ responses to COVID-19 as one of Japan’s initiatives.
The Book Pass Unlimited Reading Plan is a service that allows users toeasily enjoy a large number of books online, ranging from practicalbooks that support learning to comics and magazines. In this initiative,
the monthly information fee was waived for a certain period of time for
new customers and existing customers. The service was available regardless of whether or not they had an au connection.
Platform for Sharing COVID-19 Responses Run by ITU
Website Where KDDI’s Above Initiative is Published

GSMA:
KDDI has long been a supporter of the GSMA’s Humanitarian Connectivity Charter, a framework for the continuity of telecommunications operations and humanitarian assistance in times of disaster. The following
information was published in the GSMA website in 2020: formulation of
the KDDI’s Basic Policy toward COVID-19, cooperation in various measures and responses in Japan and specific initiatives to protect users
and employees. These were all part of the KDDI Sustainable Action set
out with a resolution to continue addressing various social issues
through businesses.
KDDI’s Initiatives Introduced in the GSMA Website

KDDI’s ApproachKDDI Group(Community Involvement and Development)

PolicyWe at KDDI Group are driving various initiatives to solve societal andenvironmental issues of the countries and regions where we operate tocontribute to the development of a truly connected society. Each regional
office leads community development activities, placing importance on
dialogue and cooperation with a variety of stakeholders, including local
communities, administrations, universities and NPO/NGO.

Policy on Corporate CitizenshipKDDI Group

PolicyWe established the Social Contribution Policy in 2012. As a conscientious
corporate citizen, we respond to the society’s needs and trust and contribute to society across the world utilizing our technologies and humanresources. To carry out sustainable business in and outside Japan, it isessential to have dialogue with local communities and grow with them. We
see social contribution activities as valuable opportunities to interact withlocal communities and will continue to capitalize on such activities in termsof business opportunities and risk avoidance.
We established KDDI Sustainable Action in line with the KDDI SDGs
for 2030 and are committed to resolving various social issues through ourbusiness as a company that contributes to society’s sustainable growth.
In addition, in the selection and implementation of philanthropic activities
such as social contribution and donations, we consider policies and approaches taking into consideration the relationship with and impact on ourown business activities and universally applicable issues in the international communities such as the Sustainable Development Goals (SDGs).

Management Framework

KDDI Group System

As a corporate citizen, we at the KDDI Group strive to contribute to community development, matching the needs specific to a region where we
operate.
Based on the basic policy and direction indicated by KDDI’s head office, the regional offices around Japan are committed to implementing
sustainability activities, acting as communicators with local communities.
These activities are handled cross-departmentally by each regional officeand senior general managers such as the executive officers etc., in chargeof each region have overall responsibility for the activities.
Regional offices discuss the opinions they receive from local communities with the related department in KDDI head office and take action. We
have an information sharing framework within the group, including an intranet, to share activities in each region.

The Plus Alpha Project ProgramKDDI Group Activity

From fiscal 2008, we started the Plus Alpha Project program that encourages our employees to actively participate in voluntary activities. In thisprogram, employees earn points for social contribution activities within or
outside the company, and the company donates an amount corresponding to these points to charity organizations on behalf of the employees.
All employees (approx. 17,000) are eligible, and a total of 10,000,000
yen was donated to 58 organizations in fiscal 2020. The total amount of
donations made since the beginning of this program is 92,481,520 yen.

KDDI Basic Guidelines Concerning Safe and Secure Communication for
Young People
KDDI Sustainable Action

Manifesto
Operating in accordance with the KDDI Group Philosophy, by satisfying all its
stakeholders, the KDDI Group seeks to contribute to society’s happiness byencouraging fulfilling lives for people around the world in a sustainable manner.
Action Guidelines
1. As a company involved in information and communications business, KDDI recognizes its social responsibility to address societal
issues through the use of information and communications technologies (ICTs). We aim to offer appropriate communication environments that are safe and secure for all people.
2. KDDI has established medium-term themes for its social contribution activities in five areas: “bridging the digital divide,”* “sounddevelopment of youth,” “environmental conservation,” “social andcultural support,” and “support in times of disaster.” By maximizing our application of such resources as networks, products andservices, we conduct social contribution activities through ICTs, ina manner characteristic of KDDI.
3. Through communications with stakeholders, we notify and share
information concerning ongoing improvements in the content of
our operations, thereby contributing to society’s development.
4.	By sharing with KDDI Group employees our directions on social
contribution activities, we pursue independent-minded activities
as a good corporate citizen in the aim of achieving sustainablegrowth in tandem with society.
* Issue where an information disparity occurs between people who have access to information andcommunication technology such as the computers and the internet and those who do not110KDDI Sustainability Report 2021

KDDI Sustainability Report 2021

111

Top Message

Stakeholder Engagement

Community Involvement and Development

External Recognition

KDDI’s Commitment to Sustainability

Feature Article 1: KDDI’s Response to Climate Change

Feature Article 2: KDDI Sustainable Action

Materiality

Management Framework

Engagement

External Assurance

Community Involvement and Development
Workshop-Style Classes:
Raise DRR Literacy with Your Smartphone

KDDI

Activity

Japan is struck by major natural disasters almost every year, and education for disaster risk reduction (DRR) is becoming increasingly important inschools. We have been holding workshop-style classes named Raise DRR
Literacy with Your Smartphone for high school students since fiscal 2017
to teach them how to effectively use ICTs as a lifeline in the event of a disaster. A social media network was specially created for learning how toshare information during the classes. In total, these workshops have been
held at 43 schools with over 2,100 participants to date.
▪ Comprehension Questionnaire
Questionnaire
content(1) Importance of receiving and sending appropriate informationin the event of a disaster(2) Importance of helping oneself and others in a disaster(3) Need to pay attention to information communication in
everyday life too▪ Results (FY2020)
Understoodvery well

Understood well

82.4%

17.2%

Did not understandDid not understandvery well
0.4%

Social Contribution

KDDI is a member of the 1% Club established by Japan Business Federation. Our total social contribution expenditures were approximately
970 million yen in fiscal year 2020.
1. Advertising expenses and membership fees are excluded even if they have the goal of social
contribution. Political contributions are not included in total social contribution expenditures.
2. In-store fundraising and employee donations are not included in total social contribution expenditures.

Volunteer Leave and Number of
JICA Volunteers (KDDI)KDDI

Results

FY2016FY2017FY2018FY2019FY2020

Unit:
Person who uses
the program

20

13

29

17

0

JICA
Unit:
Volunteers* Person dispatched

1

0

0

0

0

Volunteer
leave

Initiatives▪ KDDI Group Results(1) Bridging the Digital Divide
Targets
Improve ICT
literacy of older
peopleKDDI Group ResultsKDDI’s IT Literacy Training: Reducing Disaster Risk with Smartphones▪ JapanTotal contributions(Unit: yen)

Donated to

Heavy rain damages
in July 2020

22,655,200

Japanese Red Cross Society

Disaster relief fund for
the Kumamoto earthquake

1,030,900

Japanese Red Cross Society

100Japanese Red Cross Society

Case

KDDI

Activity

Japan has around 420 populated outlying islands. These communities arefacing various challenges, such as young people moving away from theislands, population decline, how to create value and convey the allure of
the islands as well as a lack of know-how regarding logistics and sales
activities.
To aid remote island areas, KDDI has implemented the Shimamono
Project through which we support the dissemination of information on the
remote island areas and the sales of businesses in cooperation with the
NPO Rito Keizai Shimbun (The Archipelago News) by utilizing the resources of KDDI since the fiscal year 2015. In addition, KDDI hosts Shimamono
Marche on its own shopping site au WALLET Market to sell goods produced in outlying islands. We also hold the Shimamono Lab, which is acourse for outlying island businesses on branding and promoting products. The Shimamono Lab is now offered in a total of nine areas. In addition, sales from Shimamono Marche reached a cumulative total of around
59 million yen (23 islands, 54 products).

Disaster relief fund for
Typhoon No.19 (Hagibis)
damages
Disaster relief fund for
the Taiwan earthquake

18,800Disaster relief fund for
the Ecuador earthquake

42,200COVID-19 emergency
support donation

4,395,000

Japanese Red Cross Society

Improve ICT
literacy of youth

Country name• Held KDDI Smartphone and Mobile Phone Safety Classes
for elder people• Comprehension rate 86.7%, Usage rate 94.1%• 93 classes held, 1,282 participants
(cumulative 1,632 classes, 28,750 participants)• Medical and educational support (MPT)
1. Conducted educational programs on digital skills, internships in the technology field, and sports promotion eventsfor young people who will be the future leaders of Myanmar
2. Implemented programs to support Myanmar’s medical system. Provided fiber internet, computers, video conference
equipment, and Wi-Fi routers

FY2020 initiatives• Held KDDI Smartphone and Mobile Phone Safety Classes
for youth• Satisfied with teaching materials: 99.6%
Satisfied with lecturers: 98.9%
Will reapply: 86.9%• 2,608 classes held, approx. 330,000 participants(cumulative total: approx. 36,000 classes, approx. 6.44
million participants)

Targets
Biodiversity
conservation incollaboration withstakeholders

Environmental
education for children

Myanmar• Support for people with disabilities (MobiCom)
Actively employed people with disabilities (14 people), soldgoods made by people with disabilities, deployed tablets for written communications, and supported the construction of toilets

Environmental Conservation Activities
by Employees (Japanese only)
Environmental Education Activities for Children• Startup support program “Monja” (MobiCom)
MobiCom, in collaboration with JICA and the Mongolia-Japan
Human Resources Development Center, supported start-up
companies working on innovative business models and technologies that can manage the socio-economic transformation
amid the COVID-19 pandemic

We Held a Class on Creating a Field Guide on
Plants and Forest Wildlife at the Yokohama City
Hama Elementary School (Japanese only)(4) Social and Cultural Support
FY2020 initiatives

Contribute to local
community development and regional
revitalization

Shimamono Lab Workshops for Outlying Island
Businesses in the Osaki Kamijima Town, Hiroshima
Prefecture (Japanese only)

Raise awareness ofmanners for mobile
phone use andprevent cycling
accidents

Awareness-raising Utilizing VR Contents in the
Hirama SDGs Festival at the Kawasaki City Hirama
Elementary School About Prevention of Smartphone
Use While Riding Bicycles (Japanese only)

We support NPOs
and other organizations working tosupport theenvironment andsocietyKDDI’s Bridge of Hope Social Contribution Website(Japanese only)• Used computer donations (MobiCom)
As part of KDDI’s used computer donation project, MobiCommakes donations to public schools across Mongolia and to
government facilities
Mongolia• Support for COVID-19 measures (MobiCom)
MobiCom provided free pre-paid SIM cards to police, medical
workers and COVID-19 countermeasure experts. A part of online sales and sales from our distributors were donated to
medical facilities.
• Expanded a demonstration project to construct a broadband access network at low cost in three APT* regions (KDDI Foundation)* Asia-Pacific Telecommunity

Cambodia• Built a KDDI School (the 13th one), built English and computerclassrooms (for the 12th and 13th schools), maintained water
environment, and distributed masks, disinfectant, and thermometers to all schools as additional emergency support
measures against the COVID-19 pandemic (KDDI Foundation)• Provided support to pass down the traditional Cambodian art formof large-scale shadow theater (Sbek Thom) (KDDI Foundation)

Nepal• Introduction of tablet-based home study support amid the
COVID-19 pandemic, and development of e-learning materials
for the visually and hearing impaired (UNICEF also participated)(KDDI Foundation)• (APT) Project to expand regional network and telemedicine in
the western mountainous region (KDDI Foundation)

Vietnam• (APT) Research project to accurately and promptly assessroad conditions after floods using drones (KDDI Foundation)(5) Disaster Support
Targets

FY2020 initiatives
Donation of Relief Funds for Victims of the Heavy
Rains in July 2020 (Japanese only)
Donations to Support COVID-19 Measures(Japanese only)
10 Years After the Great East Japan Earthquake:
Launch of a Special Website to Look Back on the
Disaster and Prepare for Disasters (Japanese only)• Child Helpline 108 (MobiCom)
This service can be accessed for free 24 / 7 by children, parents, teachers, social workers, and others. We hope to help
resolve issues such as child abuse with this service.
• W.A.S.H. Project (MobiCom)
In collaboration with local governments and the NGO World
Vision Mongolia, MobiCom builds clean water facilities and toilet facilities for elementary schools.

Japanese Red Cross Society
Central Community Chest ofJapan• “Clean and Sustainable Water Program” (MPT)
Prepared wells in villages that have difficulty accessing clean
domestic water to improve public hygiene• Support for COVID-19 measures (MPT)
1. A portion of our sales was donated to support COVID-19
relief measures. We also gave out Topup cards to medical
workers and volunteers for free and eliminated fees forsending MPT Money to the government and NGOs.
2. Donated food items at orphanages throughout Myanmar
3. Provided high-speed fiber Internet at COVID-19 response
facilities in Mandalay and Yangon
4. Reopened SMS fundraising platform for those wishing to
donate to COVID-19 responses, prevention measures andtreatment activities

FY2020 initiatives

Targets

FY2020 initiatives• Held art, music, English, computer and dance classes at theVillage School (Art and PC classes were held in small groups
only during the summer due to the COVID-19 pandemic)(KDDI Foundation)(3) Environmental Conservation

Related to the Great
East Japan Earthquake

KDDI Sustainability Report 2021

FY2020 initiatives• Held Workshop-style classes for high school students: Raise DRR Literacy with Your Smartphone• Held at 3 schools with 115 participants (cumulative 43 schools with over 2,100 participants)

Support for victims
affected by disasters

112(6) Contribution Activities in Growth Regions outside Japan(2) Supporting Sound Development of Youth* The number of JICA volunteers (Youth Overseas Cooperation Volunteers participation system) is
the number of people KDDI employees are dispatched to JICA in each fiscal year.

Source of funds: KDDI’s Bridge of Hope social contribution website
KDDI matches the donations of customers and KDDI group employees.
In the case of an emergency, KDDI also makes donations.

99.6%

KDDI Group Results

Targets▪ Volunteer Leave and Number of JICA Volunteers (KDDI)

Disaster Relief Fund (FY2020)

Understood very well, wellKDDI’s Shimamono Project Supports Remote Islands

Results

0.0%▪ Percentage of Positive Responses

The Shimamono Project, Which Aims toInvigorate the Communities in Outlying Islands

KDDIKDDI Sustainability Report 2021

113

Top Message

Stakeholder Engagement

Community Involvement and Development

External Recognition

KDDI’s Commitment to Sustainability

Feature Article 1: KDDI’s Response to Climate Change

Feature Article 2: KDDI Sustainable Action

Materiality

Management Framework

Engagement

External Assurance

External Recognition
A Sample of Indices That Include KDDI
Inclusion in SRI Index FTSE4Good Index Series
We are included in the FTSE4Good Index Series, a major global index forsocially responsible investment (SRI) (as of June 2021). The index wasdeveloped by FTSE Russell, which belongs to the London Stock
Exchange Group. It is widely used as a standard for selecting investees byinstitutional investors who focus on the social responsibility and sustainability of companies.

Inclusion in SRI Index MSCI ESG Leaders Indexes
Among global SRI indices, we are included in the MSCI ESG Leaders Indexes (as of June 2021).
This index suite was developed by a US-based company, MSCI Inc.,and selects companies with excellent environmental, social and governance (ESG) performance.

THE INCLUSION OF KDDI IN ANY MSCI INDEX, AND THE USE OF MSCI LOGOS,TRADEMARKS,SERVICE MARKS OR INDEX NAMES HEREIN, DO NOT CONSTITUTE A SPONSORSHIP,ENDORSEMENT OR PROMOTION OF KDDI BY MSCI OR ANY OF ITS AFFILIATES.
THE MSCI INDEXES ARE THE EXCLUSIVE PROPERTY OF MSCI. MSCI AND THE MSCI INDEXNAMES AND LOGOS ARE TRADEMARKS OR SERVICE MARKS OF MSCI OR ITS AFFILIATES.

Inclusion in Euronext Vigeo Eiris IndicesWorld 120
We are included in the Euronext Vigeo Eiris
Indices World 120, a representative SRI
index (as of June 2021).
This index distinguishes 120 companies
achieving the most advanced environmental,social and governance performance.

114

KDDI Sustainability Report 2021

KDDI
Inclusion in Ethibel PIONEER and Ethibel
EXCELLENCE Investment Registers
We are included in Ethibel EXCELLENCE
and investment universe Ethibel PIONEER,
both labels of Forum Ethibel, which is a Belgian association that promotes SRI. We also
continue to be included in ESI Excellence
Global.
Ethibel Investment Register is an investment
universe comprised of companies that haveearned high corporate social responsibility(CSR) performance scores according to theassociation’s diverse evaluation (as of May2020).

Inclusion in S&P / JPX Carbon EfficientIndex
We are included in the S&P / JPX Carbon Efficient Index, which is a environmental index
jointly developed by the Japan ExchangeGroup, the Tokyo Stock Exchange, and the
S&P Dow Jones Index (as of March 2021).

Acquired the Highest Rank in the DBJ
Environmental Ratings
The Development Bank of Japan (DBJ) developed its own environmental rating system. The investment menu confers an environmental rating after companies areevaluated on their environmental management, outstanding companies are selected,
and investment criteria are establishedbased on their score. KDDI acquired thehighest rank of A in the ratings. Furthermore,KDDI is the only company in the telecommunications industry that has earned a DBJ
Environmental Rating (as of June 2021).

Recognized as a Company in Line with Health and Productivity
Management 2021 (White 500)
We were recognized by the Nippon Kenko Kaigi for our outstanding healthmanagement initiatives that consider the health of our employees from amanagement perspective and which are strategically carried out. This led
to being recognized as a Health and Productivity Management 2021 company in the large enterprise category (White 500) (as of March 2021). Ourgroup companies, OKINAWA CELLULAR TELEPHONE COMPANY andKDDI Engineering, were also recognized as a Health and Productivity
Management 2021 company in the large enterprise category (White 500)
in 2021.

Results

Awarded Gold Rating in the PRIDE Index for
Five Consecutive Years and Received theBest Practice Award
We received the top gold rating on the PRIDE
Index, which evaluates corporate efforts related
to LGBTQ+ and other sexual minorities, for fiveconsecutive years (as of November 2020). The
PRIDE Index was established by a private organization, work with Pride, with the aim of promoting the creation of inclusive workplaces for
LGBTQ+ in companies. At the same time, the“Family Partnership Application,” newly introduced in June 2020, which treats the childrenof same-sex partners as family members under
the company’s system, was recognized for its
contribution to fostering a sense of security among LGBTQ+ employees
and demonstrating the company’s commitment to social issues. In recognition of this, we received the Best Practice Award.

Rated Five Stars in the 4th Nikkei Smart Work Management Survey
KDDI was recognized as a 5-star company in the 4th Nikkei Smart WorkManagement Survey (November 2020), which selects leading companies
taking on the challenge of productivity revolution through work style reforms. The survey, which has been conducted by Nikkei Inc. since 2017,targets listed companies and leading non-listed companies nationwide, anddefines “smart work management” as efforts to maximize organizational performance through three elements: the realization of diverse and flexible work
styles, a system for creating new businesses, and the ability to develop markets. In addition to the three elements, corporate governance and othermanagement foundations are also included in the evaluation, which is basedon a five-star scale. Of the710 companies that responded to the 4th survey,
KDDI received high ratings
in market development capabilities.

Ranked First for Overall Performance in the CSR Company Ranking
for Two Consecutive Years
We placed first for overall performance in the 15th CSR Company Ranking
announced by Toyo Keizai Inc. In this ranking, around 1,614 Japanesecompanies are evaluated based on the survey conducted for the utilizationof human resources, environmental responsibility, corporate governanceand social responsibility and finance. The top companies are recognized
as trustworthy by a wide range of stakeholders (March 2021).

Awards Received for Our Initiatives
in Growing Markets

KDDI Group Results

Tatsuya Hamada, Chairman and CEO of MobiCom Corporation LLC
Was Awarded the Order of the Polar Star (ALTAN GADAS ODON)In May 2021, Tatsuya Hamada, Chairman and CEO of MobiCom Corporation LLC (headquartered in Ulaanbaatar, Mongolia; hereinafter “MobiCom”), a consolidated subsidiary of KDDI, was awarded the Order of the
Polar Star (ALTAN GADAS ODON) by the then President Battulga of Mongolia.
The Order of the Polar Star is a high-ranking state decoration in Mongolia and is the highest award given to a foreigner. MobiCom has been aleader in the telecommunications and IT industry for 25 years since its
launch in 1996, and all its employees have worked together to contributeto the development and improvement of the living foundation of the Mongolian people. In addition to this, MobiCom has been actively involved insocial contribution activities in Mongolia, and Tatsuya Hamada, who leads
MobiCom, was selected for this award in recognition of his daily contributions to the development of Mongolia beyond the framework of the telecommunications business.
Award

Evaluation

MobiCom:
Honored as one of the Top 100
Companies of 2020

Received in recognition of comprehensively
contributing to Mongolia’s economy withsales, tax payment and capital investment

MobiCom:
Received the Best Tax Payer 2020
Award

Received in recognition of the company’s
ability to maintain employment even under
the difficult conditions caused by COVID-19

MobiCom:
Received the Golden Rose 2020
Award by the Mongolian Youth
Association

Among the projects related to education,
health, environment, social innovation, andtechnological innovation, influential social
contribution activities are recognized

MobiCom:
Moffice (an office provided tostart-up companies) received theForbes Property Awards 2020

From various new real estate and properties,
properties that have realized innovative architecture and design are selected

MobiCom:
Top 10 Entrepreneur Award 2019

Received in recognition of the company’sbusiness accomplishments, profit, social responsibility, employment, exports, and otherfactors

MobiCom:
Received the best player of ICTEXPO 2019 award

Recognized for the company’s comprehensive activities in the ICT field

MobiCom:
Received the award for Corporate
Social Responsibility at the Forbes
Mongolia Awards 2019

Received in recognition of being the best
Mongolian company in the field of social responsibility and eco-friendliness

Other External Assessments
Recognition and Awards

Evaluation

Corporate Philanthropy Award

Resource Recycling Award

Commendation for Companies Promoting
Hands-on Activities for Youth

Excellent Company Award

Company Award 2020 for Development ofEnvironment-friendly Human Resources

Excellence Award

KDDI Sustainability Report 2021

115

Top Message

Stakeholder Engagement

Community Involvement and Development

External Recognition

KDDI’s Commitment to Sustainability

Feature Article 1: KDDI’s Response to Climate Change

Feature Article 2: KDDI Sustainable Action

Materiality

Management Framework

Engagement

External Assurance

External Assurance
Scopes 1 and 2
FY2019 Greenhouse Gas Emissions Guarantee Statement

Scope 3
FY2020 Greenhouse Gas Emissions Verification Report

ISO 14001 Management System Certificate

LR Independent Assurance Statement

Relating to KDDI Corporation’s Environmental Data within its
Sustainability Report 2021 for the fiscal year 2019
This Assurance Statement has been prepared for KDDI Corporation’s in accordance with our contract but isintended for the readers of this report.

Terms of engagement

Lloyd’s Register Quality Assurance Limited (LR) was commissioned by KDDI Corporation (“the Company”) to
provide independent assurance on its environmental data (“the report”) within its Sustainability Report 2021 forthe fiscal year 2019, that is, 1 April 2019 to 31 March 2020, against the assurance criteria below to a limited level ofassurance and professional judgement of the verifier using ISAE3000, ‘Assurance Engagements Other than Audits
or Reviews of Historical Financial Information’ and ISO14064-3:2006, ‘Specification with guidance for validationand verification of greenhouse gas assertions’.
Our assurance engagement covered the Company’s operations and activities in Japan and overseas 1 andspecifically the following requirements:• Verifying conformance with the Company’s reporting methodologies for the selected dataset;• Evaluating the accuracy and reliability of data for the selected environmental datasets listed below; 2 3o Scope 1 GHG emissions (tonnes CO2e)o Scope 2 GHG emissions (Market-based and Location-based) (tonnes CO2e)o Energy consumption (MWh)o Water consumption (m3)o Waste disposal volume (tonnes)
Our assurance engagement excluded the data and information of the Company’s suppliers, contractors and any
third-parties mentioned in the report.
LR’s responsibility is only to the Company. LR disclaims any liability or responsibility to others as explained in theend footnote. The Company’s responsibility is for collecting, aggregating, analysing and presenting all the dataand information within the report and for maintaining effective internal controls over the systems from which thereport is derived. Ultimately, the report has been approved by, and remains the responsibility of the Company.

LR’s Opinion

Based on LR’s approach nothing has come to our attention that would cause us to believe that the Company has
not, in all material respects:• Met the requirements above• Disclosed accurate and reliable environmental data
The opinion expressed is formed on the basis of a limited level of assurance and at the materiality of theprofessional judgement of the verifier.
Note: The extent of evidence-gathering for a limited assurance engagement is less than for a reasonable assurance engagement. Limited
assurance engagements focus on aggregated data rather than physically checking source data at sites. Consequently, the level of assurance
obtained in a limited assurance engagement is substantially lower than the assurance that would have been obtained had a reasonableassurance engagement been performed.

1

The boundary is same as the scope pf IO14001:2015 certification within the Company’s domestic consolidated subsidiaries 18 companies andoverseas data center subsidiaries with significant electricity consumption 10 companies. This includes KDDI Corporation and its major
consolidated subsidiaries in Japan and overseas, but excludes J:COM group in Japan and the telecommunication businesses in Myanmar andMongolia.
LR undertook a limited assurance engagement of the environmental data marked with ✓ within the Sustainability Report 2021.
3
GHG quantification is subject to inherent uncertainty.
2Page 1 of 2

LR’s approach

LR’s assurance engagements are carried out in accordance with ISAE3000 and ISO14064-3 for GHG emissions. The
following tasks though were undertaken as part of the evidence gathering process for this assurance engagement:• Auditing the Company’s data management systems to confirm that there were no significant errors,omissions or misstatements in the Report. We did this by reviewing the effectiveness of data handlingprocedures, instructions and systems, including those for internal verification.
• Interviewing with those key people responsible for compiling the data and drafting the report.
• Sampling datasets and traced activity data back to aggregated levels;• Verifying the historical data and records associated with GHG emissions, Energy consumption, Water
consumption, and Waste disposal volume for the fiscal year 2019; and• Visiting Logistics Management Department of KDDI Corporation, East Japan Logistics Center (LOGIPORT
Hashimoto), the head office of KDDI Precede Corporation, au Style SHINJUKU, and au Style UENO to assess
whether the data management systems have been effectively implemented.

Observations

The Company should further demonstrate the accuracy, reliability and completeness of its future reports. This isparticular to establish and maintain effective internal verification controls and reporting boundaries.

LR’s standards, competence and independence

LR implements and maintains a comprehensive management system that meets accreditation requirements for
ISO 14065 Greenhouse gases – Requirements for greenhouse gas validation and verification bodies for use inaccreditation or other forms of recognition and ISO/IEC 17021-1 Conformity assessment – Requirements for bodies
providing audit and certification of management systems – Part1: Requirements that are at least as demanding as
the requirements of the International Standard on Quality Control 1 and comply with the Code of Ethics forProfessional Accountants issued by the International Ethics Standards Board for Accountants.
LR ensures the selection of appropriately qualified individuals based on their qualifications, training andexperience. The outcome of all verification and certification assessments is then internally reviewed by senior
management to ensure that the approach applied is rigorous and transparent.
This verification is the only work undertaken by LR for the Company and as such does not compromise our
independence or impartiality.
SignedDated: 18 March 2021

Norihiko Kinoshita
LR Lead Verifier
On behalf of Lloyd’s Register Quality Assurance Limited
10th Floor, Queen's Tower A, 2-3-1 Minatomirai, Nishi-ku, Yokohama, JAPANLR reference: YKA4005450
Lloyd's Register Group Limited, its affiliates and subsidiaries, including Lloyd’s Register Quality Assurance Limited (LRQA), and their respective
officers, employees or agents are, individually and collectively, referred to in this clause as 'Lloyd's Register'. Lloyd's Register assumes noresponsibility and shall not be liable to any person for any loss, damage or expense caused by reliance on the information or advice in thisdocument or howsoever provided, unless that person has signed a contract with the relevant Lloyd's Register entity for the provision of thisinformation or advice and in that case any responsibility or liability is exclusively on the terms and conditions set out in that contract.
The English version of this Assurance Statement is the only valid version. Lloyd’s Register Group Limited assumes no responsibility for versions
translated into other languages.
This Assurance Statement is only valid when published with the Report to which it refers. It may only be reproduced in its entirety.
Copyright © Lloyd's Register Quality Assurance Limited, 2021. A member of the Lloyd’s Register Group.

Page 2 of 2

* Direct GHG emissions include those of an overseas subsidiary. Indirect GHG
emissions from consumption of purchased electricity, heat or steam are calculated using the emission factor of each electric utility operator.

116

KDDI Sustainability Report 2021

KDDI Sustainability Report 2021

117

Top Message

Corporate ProfileKDDI’s Commitment to Sustainability

Feature Article 1: KDDI’s Response to Climate Change

Feature Article 2: KDDI Sustainable Action

Materiality

Management Framework

Engagement

Disclosure Policy

Corporate Profile

Disclosure Policy

Corporate Profile (As of March 31, 2021)

Disclosure of Sustainability-Related Information

Company name:

KDDI CORPORATION

Date of establishment:

June 1, 1984

Main business:Telecommunications business

Head office:Garden Air Tower, 3-10-10, Iidabashi, Chiyoda-ku, Tokyo 102-8460, Japan

President, KDDI CORPORATION :Makoto Takahashi

Capital:141,852 million yen

Number of employees:

47,320 (consolidated basis)

Office Status (As of March 31, 2021)
Office:Head Office (Tokyo Prefecture)

Regional Office:

Hokkaido (Hokkaido Prefecture), Tohoku (Miyagi Prefecture), Northern Kanto (Saitama Prefecture),
Southern Kanto (Kanagawa Prefecture), Chubu (Aichi Prefecture), Hokuriku (Ishikawa Prefecture),Kansai (Osaka Prefecture), Chugoku (Hiroshima Prefecture), Shikoku (Kagawa Prefecture), Kyushu (Fukuoka Prefecture)

Branches:

17 branches, 66 branch stores, 6 customer services centers, etc.

Technical centers:

9 technical centers and engineering centers, 3 technical maintenance centers, 1 transmission center

Offices outside Japan:

Geneva, Beijing, Shanghai

In addition to Integrated Report focused on financial information, KDDI issues Sustainability Report which expands on non-financial information interms of environment, social and governance aspects in PDF format (Japanese and English).
The Sustainability Report expands on information referencing the
GRI’s Sustainability Reporting Standards, as well as information to promote greater understanding of how KDDI creates value.
We will continue making efforts to communicate with all stakeholders
and promoting our sustainability initiatives.
Please note that this report is an English translation of the Japanese
SUSTAINABILITY REPORT 2021 prepared for your reference and convenience only and without any warranty as to its accuracy. In the event ofany discrepancy, the Japanese original shall prevail.

Principal Businesses (As of March 31, 2021)
The KDDI group comprises KDDI, 156 consolidated subsidiaries (100 in Japan, 56 overseas) and 39 equity-method affiliates (32 in Japan, 7 overseas).
The businesses of the group are classified into segments in accordance with the types of services and customer attributes. The principal businesses ofeach segment are presented below.
:

Communication services in Japan and overseas (mobile and fixed telecommunications) and life design services(commerce, finance, energy, entertainment, education etc.) for individuals

Business Services:

Communication services in Japan and overseas (mobile and fixed telecommunications) and ICT solutions and data
center services for companies

Scope of Report
Although we report the activities of the KDDI Group (KDDI and its 156
subsidiaries), this report focuses on KDDI only since the ratio of theGroup’s consolidated sales is approximately 1.30 times KDDI’s nonconsolidated sales.** Consolidated: based on International Financial Reporting Standards (IFRS). Non-consolidated:based on Japanese GAAP.

Publication Date
November 2021 (Next publication: November 2022; Previous publication:
October 2020)
Guidelines Referenced• GRI (Global Reporting Initiative) Sustainability Reporting Standards• SASB (Sustainability Accounting Standards Board) (Telecommunications)• IIRC (International Integrated Reporting Council)• ISO 26000: 2010 (Guidance on Social Responsibility)• JISZ 26000: 2012 (Guidance on Social Responsibility) Japanese Industrial Standards• Japan’s Ministry of the Environment, 2018 Environmental Reporting
Guidelines• Japan’s Ministry of the Environment, 2005 Environmental Reporting
Guidelines• J apan’s Ministry of Economy, Trade and Industry, Guidance forCollaborative Value Creation• TCFD Consortium “TCFD Guidance 2.0”

Major KDDI group companies

Personal Services

Period Covered
FY2020 (April 1, 2020 to March 31, 2021). Some of the included information pertains to activities prior to March 2020 and after April 2021.

Financial Information

IR Website▪ Operating Revenue Composition by Segment (FY2020)

KDDI Consolidated Performance*
FY2020Operating revenue:

5,312,599 million yen

Operating income:

1,037,395 million yen

Profit for the period attributable :to owners of the parent

Individual Investors
Consumers

Business
14.8%

Experts
Institutional Investors

651,496 million yen

Sustainability Report(This Report)* See the financial hghlights in investor relations for details.

Financial Highlights

Integrated Report

Shareholder
Communication

Sustainability Website
Personal
84.8%
Non-Financial Information

In 2013 we published our last print edition of the report. Out of consideration
for the environment, we now publish the report exclusively online. It can be
downloaded from our website as a PDF file.

External Assurance
To ensure reliability, environmental data for Scopes 1 and 2 has received
independent third party assurance by Lloyd’s Register Quality Assurance
Limited. Environmental data for Scope 3 has been verified by WASEDA
University, an independent third-party.

118

KDDI Sustainability Report 2021

Inquiries
KDDI Corporation
Sustainability Department, General Administration Division
E-mail: csr@kddi.com
GARDEN AIR TOWER, 3-10-10, Iidabashi, Chiyoda-ku, Tokyo 102-8460,
Japan
KDDI Sustainability Report 2021

119

Top Message

KDDI’s Commitment to Sustainability

Feature Article 1: KDDI’s Response to Climate Change

Feature Article 2: KDDI Sustainable Action

Materiality

Management Framework

Engagement

Appendix Table

Appendix Table:

Comparative Table with GRI Standards
KDDI prepared this report by referencing the GRI Sustainability ReportingStandards.

5. Stakeholder Engagement

GRI 302: Energy 2016

List of stakeholder groups

108-109

302-1

Energy consumption within the organization

80-85

102-41

Collective bargaining agreements

62

302-2

Energy consumption outside of the organization

82-83

102-42

Identifying and selecting stakeholders

108-109

302-3

Energy intensity

84-85

102-43

Approach to stakeholder engagement

108-113

302-4

Reduction of energy consumption

80, 84-85

102-44

Key topics and concerns raised

22, 24-25, 108-109

302-5

Reductions in energy requirements of products and services

85

6. Reporting PracticeGRI 102: General Disclosures
Item

Reference Page

1. Organizational profile

GRI 404: Training and Education 2016

102-40

Entities included in the consolidated financial statements 119

303-1

Interactions with water as a shared resource–

102-46

Defining report content and topic boundaries

119

303-2

Management of water discharge-related impacts–

102-47

List of material topics

21, 24-25

303-3

Water withdrawal

84-85

102-1

Name of the organization

118

102-48

Restatements of information

N/A

303-4

Water discharge

84-85

102-2

Activities, brands, products, and services

118

102-49Changes in reporting

N/A

303-5

Water consumption

84-85

102-3

Location of headquarters

118

102-50

Reporting period

119

GRI 304: Biodiversity 2016

102-4

Location of operations

118

102-51

Date of most recent report

119

102-5

Ownership and legal form

118

102-52

Reporting cycle

119

102-6

Markets served

118102-53

Contact point for questions regarding the report

119

102-7

Scale of the organization

53, 118

102-54Claims of reporting in accordance with the GRI Standards

119

102-8

Information on employees and other workers

53, 118

102-55

GRI content index

120-121102-9

Supply Chain

6, 71-73

102-56External Assurance

116-117102-10Significant changes to the organization and its supply
chain

N/A

102-11

Precautionary principle or approach

100-103102-12External initiatives

110

GRI 103: Management Approach102-13

Membership of associations

28, 37, 66, 71, 110,112

103-1

2. Strategy
102-14

Statement from senior decision-maker102-15Key impacts, risks, and opportunities

2-3, 20
26, 34, 40, 48, 64, 74,

Values, principles, standards, and norms of behavior

0, 4-6, 9

102-17

Mechanisms for advice and concerns about ethics

68-69

4. Governance
7, 14-15, 30, 35, 54,

Delegating authority

102-20Executive-level responsibility for economic, environmental, and social topics

103-2

The management approach and its components

103-3

Evaluation of the management approach

7,94-95, 100
7, 14-15, 30, 35, 54,
65-66, 68, 77,
90-91,100

Significant impacts of activities, products, and services
N/A
on biodiversity

304-3

Habitats protected or restored

88-89

304-4

IUCN Red List species and national conservation list
species with habitats in areas affected by operations

N/A

GRI 305: Emissions 2016

21-22

305-2

Energy indirect (Scope 2) GHG emissions

82-85

26, 34, 40, 48, 64, 74,

305-3

Other indirect (Scope 3) GHG emissions (Scope 3)

82-83

100-103

305-4

GHG emissions intensity

–

24-25

305-5

Reduction of GHG emissions

24-25, 82-85

305-6

Emissions of ozone-depleting substances (ODS)

–

305-7

Nitrogen oxides (NOX), sulfur oxides (SOX), and othersignificant air emissions––

Financial implications and other risks and opportunities
14, 74, 76-77
due to climate change

306-2

Waste by type and disposal method

78, 81, 84-85

306-3

Significant spills

78 (N/A)

201-3

Defined benefit plan obligations and other retirement plans

62

306-4

Transport of hazardous waste

78

201-4

Financial assistance received from government

N/A

306-5

Water bodies affected by water discharges and / or runoff

–

201-2

53, 63, 80, 111-113,118

202-1

Ratios of standard entry level wage by gender compared to local minimum wage

54

Proportion of senior management hired from the local community

53

307-1

202-2

102-22Composition of the highest governance body and its
committees

90-92, 98-99

203-1

Infrastructure investments and services supported

24-25, 30-33, 111-113

203-2

Significant indirect economic impacts

N/A

102-23Chair of the highest governance body93102-24

Nominating and selecting the highest governancebody

91-93, 98-99

102-25

Conflicts of interest

91-93, 96

102-26

Role of highest governance body in setting purpose,values, and strategy

102-27

Collective knowledge of highest governance body102-28

Evaluating the highest governance body’s performance102-29Identifying and managing economic, environmental,
and social impacts

7, 22, 108-110

102-30Effectiveness of risk management processes

100-101

102-31

GRI 203: Indirect Economic Impacts

308-1

New suppliers that were screened using environmental criteria

–

308-2

Negative environmental impacts in the supply chain
and actions taken

71-72

–

Item

Reference Page

GRI 401: Employment 2016

GRI 205: Anti-corruption
205-1

Operations assessed for risks related to corruption

2-3, 6-7, 20, 90

205-2Communication and training about anti-corruption policies and procedures

2-3, 20

205-3

Confirmed incidents of corruption and actions taken

401-1

New employee hires and employee turnover

49, 53

68-70

401-2

Benefits provided to full-time employees that are notprovided to temporary or part-time employees

57-58, 62-63

68-70

401-3

Parental leave

60

68-70

GRI 402: Labor / Management Relations 2016

GRI 206: Anti-competitive Behavior

Legal actions for anti-competitive behavior, anti-trust,and monopoly practices

402-1

70

Minimum notice periods regarding operational changes

62

GRI 403: Occupational Health and Safety 2018403-1

Occupational health and safety management system

207-1

Approach to tax

70

403-2

Hazard identification, risk assessment, and incident investigation 56, 63

Review of economic, environmental, and social topics 7, 14, 90-91

207-2

Tax governance, control, and risk management

70

403-3

Occupational health services

102-32Highest governance body’s role in sustainability
reporting

7, 90

207-3

Stakeholder engagement and management of concerns related to tax

70

403-4

Worker participation, consultation, and communication
56-57
on occupational health and safety

102-33

Communicating critical concerns

90-91

207-4

Country-by-country reporting

N/A

403-5

Worker training on occupational health and safety56

102-34Nature and total number of critical concerns

68-69

403-6

Promotion of worker health56-57

102-35

Remuneration policies

94-95

300 Series (Environmental)

102-36

Process for determining remuneration

94-95

Item

403-7

Prevention and mitigation of occupational health andsafety impacts directly linked by business relationships

56-57

102-37

Stakeholders’ involvement in remuneration

91

GRI 301: Materials 2016

102-38Annual total compensation ratio

63, 95

301-1

Materials used by weight or volume

–

403-8

Workers covered by an occupational health and safety
management system

56-57

102-39Percentage increase in annual total compensation
ratio

301-2

Recycled input materials used

80, 87403-9Work-related injuries

63

301-3

Reclaimed products and their packaging materials

80, 87403-10Work-related ill health

56-57

120

KDDI Sustainability Report 2021

–

405-1

Diversity of governance bodies and employees

51, 61-62, 64-67, 93405-2

Ratio of basic salary and remuneration of women tomen–

GRI 406: Non-discrimination 2016
406-1

GRI 207: Tax

Reference Page

Incidents of discrimination and corrective actions
taken

65-69

Operations and suppliers in which the right to freedom of association and collective bargaining may be 62, 71-73
at risk

GRI 408: Child Labor 2016
408-1

Operations and suppliers at significant risk for incidents of child labor

72 (N/A)GRI 409: Forced or Compulsory Labor 2016409-1

Operations and suppliers at significant risk for incidents of forced or compulsory labor

72 (N/A)GRI 410: Security Practices 2016
410-1

Security personnel trained in human rights policies orprocedures–

GRI 411: Rights of Indigenous Peoples 2016

Incidents of violations involving rights of indigenous
peoples

N/A

412-1

Operations that have been subject to human rights
reviews or impact assessments

66

412-2

Employee training on human rights policies or procedures

6, 65-69

412-3

Significant investment agreements and contracts that
include human rights clauses or that underwent
human rights screening

N/A

GRI 413: Local Communities 2016413-1

Operations with local community engagement, impact
assessments, and development programs

89, 111-113

413-2

Operations with significant actual and potential negative impacts on local communities

N/A

GRI 414: Supplier Social Assessment 2016

400 Series (Social)

GRI 204: Procurement Practices

Proportion of spending on local suppliers

Non-compliance with environmental laws and regulations 78 (N/A)

GRI 308: Supplier Environmental Assessment 2016

Consulting stakeholders on economic, environmental,
7, 108-110
and social topics

206-1

52

GRI 307: Environmental Compliance 2016

GRI 202: Market Presence

204-1

Percentage of employees receiving regular performance and career development reviews

GRI 412: Human Rights Assessment 2016

Water discharge by quality and destination

Direct economic value generated and distributed

404-3

411-1

GRI 306: Effluents and Waste 2016102-21

7, 24-25, 91

304-2

306-1

201-1

48-51, 62

407-1

82-85

Reference Page

404-2

GRI 407: Freedom of Association and Collective Bargaining 2016

Direct (Scope 1) GHG emissions

Item

49

Programs for upgrading employee skills and transition assistance programs

N/A

305-1

GRI 201: Economic Performance

65-66, 68-69, 77,
90-99, 100

102-19Explanation of the material topic and its boundary

Reference Page

200 Series (Economic)

102-16

Governance structure

Item76-77, 100-103

3. Ethics and Integrity

102-18

GRI 103: Management Approach

Operational sites owned, leased, managed in, or adjacent to, protected areas and areas of high biodiversity
value outside protected areas

Average hours of training per year per employee

GRI 405: Diversity and Equal Opportunity 2016

GRI 303: Water and Effluents 2018

102-45

304-1

404-1

54, 56
54-57

414-1

New suppliers that were screened using social criteria

71-73

414-2

Negative social impacts in the supply chain andactions taken

71-73

GRI 415: Public Policy 2016
415-1

Political contributions

69

GRI 416: Customer Health and Safety 2016
416-1

Assessment of the health and safety impacts of product and service categories

45-47

416-2

Incidents of non-compliance concerning the healthand safety impacts of products and services

N/A

GRI 417: Marketing and Labeling 2016
417-1

Requirements for product and service information andlabeling

45, 86417-2

Incidents of non-compliance concerning product andservice information and labeling

N/A

417-3

Incidents of non-compliance concerning marketing
communications

106 (N/A)

GRI 418: Customer Privacy 2016
418-1

Substantiated complaints concerning breaches of cus24 (N/A)
tomer privacy and losses of customer data

GRI 419: Socioeconomic Compliance 2016
419-1

Non-compliance with laws and regulations in thesocial and economic area

N/A

KDDI Sustainability Report 2021

121

Top Message

KDDI’s Commitment to Sustainability

Feature Article 1: KDDI’s Response to Climate Change

Feature Article 2: KDDI Sustainable Action

Materiality

Management Framework

Engagement

Appendix Table

Appendix Table:

Appendix Table:

Sustainability Accounting Standards Board (SASB) Comparative Table

Task Force on Climate-related Financial Disclosures (TCFD) Comparative Table

KDDI references the sustainability account standards for telecommunication services industry designated by Sustainability Accounting Standards Board (SASB).

KDDI references the disclosure items recommended by the Task Force on Climate-related Financial Disclosures (TCFD).

Table 1. Sustainability Disclosure Topics & Accounting Metrics

Governance

Topic

SASB CodeEnvironmental Footprint of
Operations

TC-TL-130a.1(1) Total energy consumed(2) Percentage grid electricity(3) Percentage renewable

TC-TL-220a.1

Description of policies and practices relating to behavioral
advertising and customer privacy

TC-TL-220a.2

Number of customers whose information is used for secondary
purposes

Not disclosed

TC-TL-220a.3

Total amount of monetary losses as a result of legal proceedings associated with customer privacy

Not disclosed

TC-TL-220a.4(1) Number of law enforcement requests for customer information(2) Number of customers whose information was requested(3) Percentage resulting in disclosure

Not disclosed

TC-TL-230a.1(1) Number of data breaches(2) Percentage involving personally identifiable information (PII)(3) Number of customers affected(1) FY2020 Material KPI Results(2) and (3) are not disclosed

TC-TL-230a.2

Description of approach to identifying and addressing data
security risks, including use of third-party cybersecurity standards

Cyber Security and Privacy Protection P.34-39
Innovation Management P.42, 44
Risk Management P.100-103
Participation in External Initiatives P.110

TC-TL-440a.1(1) Materials recovered through take back programs, percentage of recovered materials that were (2) reused, (3) recycled,and (4) landfilled(1) Promotion of Mobile Phone Recycling(2) through (4) are not disclosed

TC-TL-520a.1

Total amount of monetary losses as a result of legal proceedings associated with anticompetitive behavior regulations

Not disclosed

TC-TL-520a.2

Average actual sustained download speed of(1) owned and commercially-associated content and(2) non-associated content

TC-TL-520a.3

Description of risks and opportunities associated with net neutrality, paid peering, zero rating, and related practices

TC-TL-550a.1(1) S ystem average interruption frequency and(2)customer average interruption duration

Frequency and Duration of Network Interruption

P.27

TC-TL-550a.2

Discussion of systems to provide unimpeded service during service interruptions

Network Quality Management and Improvement
Disaster Preparedness P.30-31

P.27

Data Privacy

Accounting Metric

Destination of Disclosure

Environmental Performance

Data Security

Product End-of-life
Management

Competitive Behavior &Open Internet

Managing Systemic Risks

Technology Disruptions

Recommended Disclosures

P.81-89

Cyber Security and Privacy Protection

P.34-39

Reference Page

a. Describe the board’s oversight of climate-related risks and opportunities.

14, 76b. Describe management’s role in assessing and managing climate-related risks and opportunities.

14, 76

Privacy Policy

Strategy
Recommended Disclosures

P.24

a. Describe the climate-related risks and opportunities the organization has identified over the short, medium, and long term.

14, 74, 76

b. Describe the impact of climate-related risks and opportunities on the organization’s businesses, strategy, and financial planning.

14, 76c. Describe the resilience of the organization’s strategy, taking into consideration different climate-related scenarios, including a 2°C or
lower scenario.

14, 76

Risk Management
Recommended Disclosures

P.88

Definition of measured value of actual operating
speed (Japanese only)
Cyber Security and Privacy Protection P.34
Fulfilled Life Brought through ICTs P.40
Respect for Human Rights and Fairness in Business
Risk Management P.102

Reference Page

Reference Page

a. Describe the organization’s processes for identifying and assessing climate-related risks.

15, 77b. Describe the organization’s processes for managing climate-related risks.

15, 77c. Describe how processes for identifying, assessing, and managing climate-related risks are integrated into the organization’s overallrisk management.

15, 77

Metrics & Targets
P.64

Recommended Disclosures

Reference Pagea. Disclose the metrics used by the organization to assess climate-related risks and opportunities in line with its strategy and risk
management process.

15, 24-25, 77

b. Disclose Scope 1, Scope 2 and, if appropriate, Scope 3 greenhouse gas (GHG) emissions and the related risks.

15, 76-77, 82-85

c. Describe the targets used by the organization to manage climate-related risks and opportunities and performance against targets.

15, 24-25, 77

Table 2. Activity Metrics
SASB Code

Accounting Metric

TC-TL-000.A

Number of wireless subscribers

TC-TL-000.B

Number of wireline subscribers

TC-TL-000.C

Number of broadband subscribers

TC-TL-000.D

Network traffic

122KDDI Sustainability Report 2021

Destination of Disclosure

Major Operational Data (Japanese only)

Not disclosed

Major Operational Data (Japanese only)

Not disclosed

KDDI Sustainability Report 2021

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