How AI Is Shaping NTT Data’s Evolving Sustainability Plan
The proliferation of AI is compelling technology companies to re-evaluate their sustainability strategies.
NTT Data has updated its materiality framework, introducing 13 new priorities that address the challenges and impacts of AI and the expansion of data centre operations.
The Japanese technology services firm has reorganised its environmental, social and governance (ESG) priorities in response, following significant shifts in its business landscape.
The revised framework is structured under three core pillars: Planet Positive, Prosperity Positive and People Positive.
This update follows NTT Data's full integration with its parent company, NTT, which substantially grew its data centre footprint.
NTT Data noted that the rapid development of AI technologies was a key reason for the change. In its announcement, NTT Data stated: "It has become increasingly important to consider the impact that NTT DATA has on its stakeholders".
The previous framework was put in place in 2022. In the context of sustainability, materiality is the process of identifying and prioritising the most significant ESG issues for a company and its stakeholders.
This allows an organisation to focus its strategy and reporting on areas that could affect its financial performance or have a notable impact on the environment and people.
- 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.
AI and data centre demands on environmental resources
Under its Planet Positive pillar, NTT Data has designated climate change, circularity and water management as core material topics.
The inclusion of water management is a direct acknowledgement of the resource-intensive nature of data centres, which are fundamental to the functioning of AI. These facilities use vast amounts of water for their cooling systems.
Data centres are major consumers of energy and water, with individual facilities potentially using millions of litres each year to maintain their cooling infrastructure.
The scale of this consumption is a growing concern. According to the IEA, data centres already represent approximately 1.5% of global electricity consumption. This figure is anticipated to increase as investment in AI continues to grow, increasing demand for more and larger data centres.
The integration with NTT Ltd. may have increased NTT Data's exposure to these specific sustainability challenges, making the updated framework a necessary strategic adjustment.
Prosperity and people in the age of AI
The Prosperity Positive pillar highlights the dual nature of technological advancement.
It includes innovation through technology, responsible technology and AI ethics, sustainable supply chain management, digital safety and reliability, and secure and sustainable-by-design services.
The focus on responsible technology and AI ethics is particularly timely as governments around the world are developing regulations for the deployment of AI. This signals an awareness of the need to build trust and manage the societal impacts of AI.
The People Positive pillar addresses social and workforce issues, including diversity and inclusion, health and safety, human rights, and digital accessibility.
These elements are also shaped by the growth of AI, from ensuring equitable access to new digital tools to managing the impact of automation on the workforce.
NTT Data serves 75% of the Fortune Global 100 and has operations in more than 50 countries, giving its internal policies a significant global reach.
Future implications of the sustainability framework
This revised framework could indicate an attempt by NTT Data to align its sustainability goals with the operational realities of being a major player in the AI and data centre sectors.
As part of the wider NTT Group, NTT Data has access to a research and development budget of over US$3.6bn annually, which could be used to implement these new priorities.
The technology sector is facing intensified scrutiny from investors, regulators and customers who are demanding greater transparency and accountability on sustainability commitments.
The success of NTT Data's new strategy will likely be determined by how effectively these priorities are integrated into its core business functions particularly in its data centre operations and AI development lifecycle.
Whether the updated materiality framework leads to measurable improvements in NTT Data's environmental and social performance will be closely observed by the industry.
