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Materiality

Six Material Issues (Materiality)

We have mapped and summarized the issues to be addressed in the Mid-Term Management Strategy based on the concerns of long-term investors and other multi-stakeholder groups and their impact on our business. We are promoting innovation necessary for our business transformation, strengthening human resources and governance in line with the diversification of our business, and responding to the growing awareness of issues in the international community, such as climate change.

Materiality 1
Promotion of Innovation Centered on Telecommunications

[Values We Embrace]

  1. 1Through New Satellite Growth Strategy centered on communications, promote innovation that customers can experience in their daily lives and create a future society.
  2. 2Realize a sustainable industrial/infrastructure environment by providing innovative solutions for communications and other social infrastructure/connected vehicles.

Materiality 2
Realization of Safe, Secure, and Prosperous Society

[Values We Embrace]

  1. 3Realize regional co-creation by connecting people and regions together with DX centered on communication and solving information gaps and regional issues.
  2. 4Eliminate regional and economic disparities by contributing to local economic development through the maintaining and expanding of communications and peripheral services in emerging overseas countries.

Materiality 3
Carbon Neutral

[Values We Embrace]

  1. 5In addition to the KDDI Group’s efforts to achieve carbon neutrality in fiscal 2030*, provide customers with renewable energy and contribute to solving the global challenges as climate change.
  • *Scope1 + Scope2

Materiality 4
Strengthening the Group Management Base Through Progressing Governance

[Values We Embrace]

  1. 6Create social and environmental value by establishing a strong management infrastructure through the strengthening of governance in the entire KDDI Group.
  2. 7Respect human rights in all business activities, eradicate human rights violations in the supply chain, and contribute to the sustainable growth in society.

Materiality 5
Human Resources First

[Values We Embrace]

  1. 8Create innovation and contribute to the sustainable growth of society by fostering a corporate culture that encourages the active participation of diverse and professional talent while also providing a challenge.

Materiality 6
Advancing Stakeholder Engagement

Process for Identifying Material Issues

KDDI has revised the Material Issues related to sustainability in conjunction with the establishment of its Mid-Term Management Strategy (FY23.3-FY26.3) in the following process.

  1. 1Identify key issues based on the GRI requirements, international guidelines for sustainability information disclosure, and the requirements of ESG assessment for the information technology and telecommunications industry.
  2. 2Set priorities for the key issues by scoring them according to the “concerns of long-term investors and other multi-stakeholder groups (vertical axis)” and the “business impact (horizontal axis).”
  3. 3Identify six Material Issues that reflect the opinions of external experts collected through interviews.
  4. 4Deliberate on the appropriateness of the Material Issues and finalize them at the Sustainability Committee and the Board of Directors.

Matrix of Material Issues

Materiality 1 Promotion of Innovation Centered on Telecommunications

1-1 Through New Satellite Growth Strategy centered on communications, promote innovation that customers can experience in their daily lives and create a future society.

Materiality 2 Realization of Safe, Secure, and Prosperous Society

2-1 Leverage technological innovation to provide resilient infrastructure, realize economic development, and a safe and secure society.

2-2 Eliminate the digital divide by creating new value through DX.

Materiality 3 Carbon Neutral

3-1 Achieve the sustainable growth in society by promoting decarbonization and leaving a prosperous planet for the future.

3-2 Achieve carbon neutrality in the KDDI Group by fiscal 2050.

Materiality 4 Strengthening the Group Management Base Through Progressing Governance

4-1 Ensuring customer privacy by building up strong data security.

4-2 Engage in thorough risk management.

4-3 Develop an effective and transparent governance structure.

4-4 Engage in thorough compliance.

4-5 Respect for human rights.

4-6 Engage in fair and proactive information disclosure.

4-7 Promotion of sustainable procurement

Materiality 5 Human Resources First

5-1 Pursue the well-being of our employees and promotion of diversity and inclusion.

5-2 Promote human resource development and career development.

5-3 Initiatives for health and productivity management.

Materiality 6 Advancing Stakeholder Engagement

6-1 Build strong relationships with all stakeholders, including employees, customers, distributors, suppliers, and shareholders. Six Material Issues Process for Identifying Material Issues

Integration of Materiality Assessment into KDDI’s Risk Management

Risks associated with each material issue, such as climate change, human resource development, and group governance, are integrated into the KDDI Group’s risk management activities and managed and operated accordingly. In our risk reviews, we designate as important risks those that could have a significant impact on our business, and we consider and implement measures to minimize, as far as possible, both the occurrence of these important risks and their impact should they occur.