Sustainability Promotion Framework and Internal Penetration Activities

Sustainability Promotion Framework

The President, Representative Director of KDDI serves as the chair with the remaining committee members made up of the Executive Directors and General Managers of All Businesses and Corporate Sectors, the Audit & Supervisory Board members of KDDI, and President of the KDDI Foundation. The committee considers sustainability to be a pillar of company-wide business strategies. Improvements in sustainability are incorporated into company-wide KPIs and are linked to executive remuneration and bonuses for all employees.

ESG initiatives reflected in bonuses for executives and employees

In order to raise the awareness of all employees and encourage them to take action, we have included sustainability (ESG) evaluation indicators in the calculation of executive compensation and employee bonuses since FY21.3.
Starting from FY23.3, in order to promote and evaluate a wider range of non-financial initiatives as part of our Mid-Term Management Strategy and commitment to sustainability management, we have revised the evaluation items and allocation of points. We believe it is important to give a certain weight to sustainability items so that our employees and general public can understand the importance we place on ESG initiatives, and we have increased the weight of points allocated to these items.

Internal Penetration Activities for Sustainability Management Practices

We have formulated a series of internal penetration steps, outlined in the diagram, to align the awareness, understanding, and action of sustainability management. From the management team to all employees, we continuously promote understanding, aiming to foster new learning and awareness.

Internal penetration structure diagram

Avenue for dialogue between the management team and employees, Excitement Tours (Waku-Waku Tours)

With the aim of encouraging all employees to understand the Company Vision and take actions towards achieving the Company Vision, we have established opportunities for interactive communication between the management team and employees. The "Excitement Tours" (Waku-Waku Tours), where the management team interacts with employees from various divisions to foster mutual understanding, has been held annually since FY19.3 when President Takahashi assumed office. This initiative has also contributed to improving employee engagement.
In FY23.3, under the themes of "Mid-Term Management Strategy" and "KDDI VISION 2030," our President directly addressed employees from various divisions regarding our pursuit of sustainability management and engaged in discussions. We will continue to maintain communication between the management team and employees to encourage each individual employee to take proactive actions toward practicing sustainability management.

Engaging in "1% of business activities" to experience customer feedback and social issues

Since FY23.3, employees have taken the initiative to get closer to customers and experience social issues firsthand. This is the starting point of one of our Company Vision, "the company the customers can feel closest to." Understanding scenes where we personally experience what kind of value our work can provide to customers and society, as well as what might be lacking, we encourage all employees to allocate about 1% of their working time (approximately 2 days per year) to activities such as "interacting with customers" and "engaging in work experiences that help understand the customer perspective." For example, there are activities to participate as assistants in senior-oriented Smartphone classes requested by local governments, or to assist local farmers, NGOs, and other organizations in the community. Through this initiative, we believe that each employee sincerely engages with customers and society, incorporates insights into their own tasks, and delivers high-value services to customers. We consider this to contribute to improving corporate value and achieving concurrent sustainable growth in society.

Experience assisting an instructor in a smartphone class

"Local 'Otetsutabi' (Helping+Journey)"

Support for drone flight demonstrations/demonstration experiments

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