Second-Party Opinion Download

Sustainalytics is of the opinion that the NTT Group Green Bond Framework is credible and impactful and aligns with the four core components of the Green Bond Principles 2021 (GBP). This assessment is based on the following:

USE OF PROCEEDS

The eligible categories for the use of proceeds, 1) Energy Efficiency, 2) Green Buildings, and 3) Renewable Energy, are aligned with those recognized by the Green Bond Principles 2021. Sustainalytics considers that NTT Group’s eligible projects will lead to positive environmental impacts and advance the UN Sustainable Development Goals, specifically SDGs 7 and 9.

PROJECT EVALUATION / SELECTION

NTT Group’s affiliated companies will respectively evaluate and select eligible projects based on the eligible criteria, and the Group Treasury Department of NTT Finance Corporation’s Finance and Accounting Business Headquarters will select projects based on the NTT Group CSR Charter, in consultation with Nippon Telegraph and Telephone Corporation. The Director in charge of the Group Treasury Department of NTT Finance Corporation’s Finance and Accounting Business Headquarters will make the final decision. NTT Group has established a process for reducing environmental and social risks, and applies it to all allocation decisions made under the Framework. Sustainalytics views this risk management process as adequate. NTT Group’s process to evaluate and select projects is aligned with market practice.

MANAGEMENT OF PROCEEDS

The proceeds of the green bond will be managed by NTT Finance Corporation. The Group Treasury Department of NTT Finance Corporation’s Finance and Accounting Business Headquarters will track and manage the allocated and unallocated amounts of the proceeds of the green bond using an internal management system. For unallocated proceeds, the equivalent amount of proceeds is to be managed as cash or cash equivalent. The Group’s proceeds management process is aligned with market practice.

REPORTING

NTT Group is committed to reporting on the allocation and positive environmental impacts annually. Allocation reporting will include an overview of allocated projects and the amount allocated and unallocated. Impact reporting will include quantitative and qualitative environmental performance indicators, including the amount of CO₂ emissions reduced and green building certification and level received. NTT Group’s reporting is aligned with market practice.