NTT Data: Sustainability Strategy With AI Ethics Focus
NTT Data has overhauled its sustainability materiality framework, introducing 13 new priorities across environmental, economic and social dimensions as the Japanese tech services giant responds to rapid shifts in the technology landscape and growing stakeholder expectations.
The revised framework organises the firm's ESG priorities under three pillars: Planet Positive, Prosperity Positive and People Positive. Key additions include water management, responsible technology and AI ethics and digital accessibility, reflecting what NTT Data describes as critical emerging challenges for the technology sector.
The update could signal NTT Data's recognition of its expanded operational footprint following full integration with its NTT parent company, which expanded its data centre operations. The rapid proliferation of AI technologies across the industry has also influenced the strategic refresh.
- In sustainability, materiality refers to the most significant ESG issues for a company and its stakeholders. Identifying its materiality allows an organisation to prioritise the sustainability topics that matter most, allowing them to focus their strategy and reporting on the areas that could impact their financial performance, or have a genuine impact on people and the environment.
"It has become increasingly important to consider the impact that NTT Data has on its stakeholders," NTT Data stated in its announcement.
The previous materiality framework was established in 2022 under the medium-term management plan titled 'Realising a Sustainable Future'.
Environmental priorities expand
Under the Planet Positive pillar, NTT Data has identified climate change, circularity and water management as three of its core material topics. The inclusion of water management could be driven by the resource-intensive nature of data centre cooling systems, which represent a significant operational consideration for technology infrastructure providers.
Data centres are substantial consumers of both energy and water, with facilities using millions of litres annually for cooling infrastructure. This environmental impact has become increasingly relevant as companies scale their cloud computing and AI capabilities.
AI ethics takes centre stage
The Prosperity Positive pillar encompasses innovation through technology, responsible technology and AI ethics, sustainable supply chain management, digital safety and reliability and secure and sustainable-by-design services.
This emphasis on AI ethics comes as governments worldwide grapple with regulating artificial intelligence deployment. Technology companies face mounting pressure to demonstrate responsible AI development practices, particularly as these systems become more deeply embedded in business operations and consumer services.
The People Positive pillar addresses workforce and social issues, including diversity and inclusion, health and safety, human rights and digital accessibility.
Sustainability credentials under scrutiny
NTT Data's sustainability credentials have been developing alongside its US$30bn global operations. The company serves 75% of the Fortune Global 100 and employs staff across more than 50 countries. As part of the broader NTT Group, the organisation benefits from an annual research and development budget exceeding US$3.6bn.
However, the materiality update arrives at a critical juncture for technology companies facing mounting pressure over environmental impacts. According to the IEA, data centres already account for approximately 1.5% of global electricity consumption, a figure expected to rise substantially in the coming years as AI investments increase.
NTT Data's integration with NTT Ltd may have increased its exposure to these sustainability challenges, making the strategic framework revision particularly timely.
Implementation challenges ahead
The revised framework could signal NTT Data's attempt to align its sustainability strategy with evolving operational realities. Whether these changes translate into measurable environmental and social improvements remains to be seen, with success likely depending on how effectively NTT Data embeds these priorities into its data centre operations and AI development practices.
The company has committed to promoting sustainability management based on the new materiality framework. The technology sector faces increasing scrutiny from investors, regulators and customers demanding greater accountability on sustainability claims, making transparent reporting and demonstrable progress essential for maintaining stakeholder confidence.
