Materiality

Six Material Issues (Materiality)

Based on the principle of double materiality, we mapped and summarized the issues to be addressed in the Mid-Term Management Strategy from the perspectives of the importance to stakeholders (the impact of the KDDI Group's activities on the environment and society) and the importance to the KDDI Group (the financial impact of environmental and social issues on the KDDI Group). We have identified six material issues, including the evolution of the KDDI Group's vision and mission, "power to connect."

Materiality 1
Enhancing the power to connect

Realizing a safe and secure society by providing customers with diverse services centered on telecommunications

As society and industrial structures continue to undergo significant changes, telecommunications have become deeply embedded in all aspects of life and serve as an essential foundation supporting both daily life and economic activities.
We will continue to fulfill our mission to connect by providing resilient digital infrastructure, including telecommunications networks, data centers, and AI platforms. Through the integration of telecommunications with a wide range of services, including finance and energy, we will contribute to achieving a safe and secure, truly connected society in which anyone can make their dreams a reality.

Materiality 2
Co-creation through advanced technologies

Creating new value together with partners through data, AI, and technology

We believe that enriching people's lives through technology requires not only technological development but also the social implementation of technologies to create value.
We will promote the use of cutting-edge technologies, data, and AI to build resilient infrastructure and AI platform, create new value by integrating the strengths of different fields through partnering, and bring innovation to society by leveraging the connections between both the digital and real worlds. We will also advance the internal utilization of these technologies to achieve productivity improvements.

Materiality 3
Enhancing the appeal of regions and communities

Contributing to the bountiful lives of people in Japan and around the world

To address social challenges such as population decline and an aging population, the utilization of digital technologies is essential to enhancing the sustainability of regions and communities.
Through co-creation with partners, we will promote DX tailored to regional characteristics and challenges, including mobility services utilizing self-driving technology and initiatives related to disaster prevention and response. This will lead to the resolution of regional issues and the creation of new value. Furthermore, we will expand the solution models cultivated in Japan to the world, contributing to the realization of a sustainable and attractive society.

Materiality 4
Empowering employees to create the future

Empowering all employees to take on challenges with passion, grounded in strong human qualities and advanced expertise

We believe that developing the human resources who will drive growth is essential to building a new growth structure.
We will further enhance the human capabilities fostered through the KDDI Group Philosophy and the expertise of professional human resources that we have cultivated over the years. By creating an environment that encourages "passionate challenges" driven by intrinsic motivation and fosters a culture of trust and collaboration, we will build a strong human resource foundation through which all employees can contribute to both business growth and creating social value.

Materiality 5
Contributing to the health of the global environment

Realizing a sustainable future for the planet through our business activities

By leveraging communication infrastructure with reduced environmental impact and promoting innovation, we will contribute through our business activities to the realization of a Decarbonized Society, the formation of a circular economy, and the conservation of biodiversity, and help leave a prosperous and sustainable planet for future generations.
Toward achieving net-zero by fiscal 2040, we will promote the introduction of advanced energy-saving technologies and renewable energy, and contribute to addressing global environmental challenges, including climate change.

Materiality 6
Continuous strengthening of corporate responsibility

Building strong data governance and a highly reliable management base

As a company responsible for social infrastructure, the trust of customers and society is the foundation of our business.
By ensuring resilient and secure social infrastructure through initiatives such as information security measures and protecting customer safety and security through customer privacy protection, we will build a strong management foundation across the KDDI Group through effective group governance. We will also develop an effective governance structure and promote management transparency throughout the supply chain.

Process for Identifying Material Issues

The KDDI Group has identified material issues related to sustainability based on the principle of double materiality through the following process in establishing the Mid-Term Management Strategy (FY2026-FY2028). Material issues are reviewed annually, taking into account stakeholder expectations, including those of long-term investors, as well as changes in ESG-related expectations for companies.

  1. 1Identify social issues based on international guidelines for sustainability information disclosure (including GRI and SASB) and the requirements of ESG assessments for the information technology and telecommunications industry.
  2. 2Score issues based on the following two perspectives and map them according to the results: "importance to stakeholders (the impact of the KDDI Group's activities on the environment and society)" and "importance to the KDDI Group (the financial impact of environmental and social issues on the KDDI Group)."
  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

Image: Matrix of 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.