NTT Urban Solutions Group's efforts to reduce environmental impact
~2030 SBT certification obtained
2050 Scope 1, 2, 3
Towards carbon neutrality

1.Environmental impact reduction targets

FY2050

Scope 1, 2, 3 carbon neutral

・FY2025

All buildings use 100% renewable energy

・FY2030

Scope 1 and 2 carbon neutral
Scope 1, 2, and 3 greenhouse gases
45% reduction in emissions

• Scope 1 : Direct greenhouse gas emissions from fuel use, etc. by NTT Urban Solutions Group
• Scope 2 : Indirect greenhouse gas emissions from the use of electricity and heat purchased by NTT Urban Solutions Group
• Scope 3 : Indirect greenhouse gas emissions associated with other business activities (such as construction work on buildings and use of real estate and goods sold)
• Electricity usage in jointly owned and overseas buildings owned by the Company is equivalent to the share of the Company's assets, including tenants, excluding those for which tenants have concluded electricity contracts.

2.Overview of SBT Certification

• ・Acquired in December 2022 (applied in March 2022)
• ・Greenhouse gas reduction targets certified by SBT

  ①Scope 1 and 2

  Reduce emissions by 80% compared to fiscal 2020 by fiscal 2030 (target of 1.5°C)

  ②Scope 3

  Reduce emissions by 45% by fiscal 2030 compared to fiscal 2020
  [Category 11 (use of sold products) covers approximately 70% of all Scope 3 emissions]

3.Slogan for reducing environmental impact

Under the slogan "Green Future with US," NTT Urban Solutions Group will work with local communities, municipalities, businesses, and others to utilize the results of various initiatives in urban development in each region, accelerating efforts to reduce environmental impact with the aim of realizing a sustainable, carbon-neutral society.

4.Major Initiatives

Below we introduce some of the main initiatives taken by NTT Urban Solutions Group to reduce its environmental impact.

In-house efforts to reduce environmental impact

<Development of buildings with ZEB/ZEH level environmental performance>

NTT Urban Development will ensure environmental performance to the ZEB Ready ^*1 standard for office buildings it develops in the future, and to the ZEH-M Oriented ^*2 standard for condominiums, and will work with design firms, construction companies, and others to develop environmentally friendly real estate.

• ZEB Ready: A building that meets the energy consumption standards set by the government by 50% or more.
• ZEH-M Oriented: An apartment building that meets the energy consumption standards set by the government by 20% or more.

Achieving ZEB Ready level environmental performance in office buildings

• The office buildings "SIHNAGAWA SEASON TERRACE" and "Urbannet Midosuji Building" have both acquired ZEB Ready certification. The office portion of "Urbannet Sendai Chuo Building" is also scheduled to acquire ZEB Ready certification.

• In future developments, we will aim to achieve ZEB Ready standards as a general rule, and will proactively obtain environmental certifications such as ZEB.

- Achieving environmental performance at ZEH-M Oriented level in newly built condominiums

• The newly built rental apartment "Nishioi 2-chome Project" has obtained ZEH-M Oriented certification. In addition, the newly built condominium "Wellith Shonandai" is scheduled to obtain ZEH-M Oriented certification.

• In future developments, we will aim to achieve standards above ZEH-M Oriented, and will proactively obtain environmental certifications such as ZEH.

Promoting decarbonization from real estate development to customer use

NTT Urban Solutions Group has established the "Design Guidelines for the Development of ZEB and Other Environmentally Friendly Buildings" and the "Ordering Guidelines for Reducing CO₂ Emissions During Construction" as internal standards, and is working with design and construction companies to develop environmentally friendly buildings while clarifying design specifications and other matters during construction.

We also hold study sessions on decarbonization with design companies, construction companies, etc., and are working to introduce advanced technologies.

<Promoting the introduction of renewable energy>

NTT Urban Development will switch the electricity it currently uses to renewable energy sources (including the use of non-fossil fuel certificates) and achieve "renewable energy for all buildings." In addition, we will promote the introduction of renewable energy with additionality ^* and will consider, together with all parties involved, the use of off-site and on-site solar power generation and large-capacity storage batteries through power purchase agreements in the future.

〇 100% renewable energy for all buildings by fiscal 2025

• At the following large buildings, including Urbannet Urbannet Nagoya nexta Building, which was completed in January of this year, all electricity used in the building has already been sourced from renewable energy sources, and we are proceeding with the switch in each building as well. As of the end of November of this year, renewable energy accounts for approximately 50% of the total electricity used.

• Going forward, we will introduce renewable energy electricity in new buildings from the time they open, and will also promote the conversion of existing buildings to renewable energy, including for tenant use, with the goal of achieving 100% renewable energy in all buildings by fiscal 2025.

<Reducing electricity consumption and CO₂ emissions at NTT Group telecommunications buildings and data centers>

The NTT Group is working to reduce greenhouse gas emissions with the aim of becoming "Scope 1 and 2 carbon neutral by 2040." One of the major challenges is reducing the amount of electricity consumed by air conditioning and CO₂ emissions in telecommunications buildings and data centers that house communications equipment such as servers and routers.

NTT FACILITIES has been continuously improving its air conditioning systems and has introduced the "FMACS® Series" air conditioners, which offer high levels of energy-saving performance, to NTT Group's telecommunications buildings and data centers. By using the "SmartDASH®" automatic control system, which utilizes AI learning functions, in conjunction with this, we have achieved a reduction in power consumption and CO₂ emissions. As demand for the Internet and data centers grows, we will continue to provide stable information and communications services and contribute to decarbonization.

Initiatives to reduce society's environmental impact

NTT Urban Solutions Group is working to support decarbonization by offering various consulting services to help our customers, including local communities, municipalities, and companies, reduce their environmental impact.

<Support for "Decarbonization Leading Region Development">

As part of the "Regional Decarbonization Roadmap" ^*1 being promoted by the Ministry of the Environment, NTT Urban Solutions Group will support local governments as a long-term partner by working with NTT Anode Energy ^*2 and others to develop carbon neutral plans for the region and provide consulting on renewable energy generation in order to "create leading decarbonization regions," which will pave the way for the implementation of pioneering decarbonization efforts.

• A roadmap jointly developed by the national and local governments to achieve a carbon-free society by 2050
• Established in 2019 as the core company for promoting the NTT Group's smart energy business

<Providing energy-saving solutions to decarbonize companies>

〇Providing ZEB solutions

• NTT FACILITIES has a track record of introducing energy-saving technologies that utilize ICT and IoT, such as BEMS ^*1, to numerous facilities, and provides solutions such as design and construction supervision to realize optimal ZEBs (Net Zero Energy Buildings) that meet the needs of companies and local governments.

• Nihonbashi Sanchome Square utilizes renewable energy sources such as a radiant air conditioning system ^*2, geothermal air conditioning equipment, and solar power generation equipment, contributing to the building's acquisition of ZEB Oriented ^*3 certification (the first ZEB-Oriented rental office building in Tokyo).

• Building Energy Management System
• A draft-free air conditioning system that gently harmonizes room temperature and body temperature through the radiation effect of cooling (heating) ceiling radiant panels.
• The office area was ZEB-oriented during the design stage.

- Provision of high-efficiency air conditioners for data centers

Leveraging its extensive track record and know-how in data center construction, NTT FACILITIES is addressing the increasing density and heat generation of data centers. As an example, for data center air conditioners, the company has partnered with SMARDT ^*​ ​^{2, the world's leading manufacturer of oil-free chillers*} 1, to domestically offer the SMARDT TA Class® air conditioner, which enables highly efficient operation by delivering water at a higher temperature than conventional chilled water. NTT Facilities is also a business partner in new construction projects for domestic hyperscale data centers ^*3, and is leveraging its accumulated technical and management capabilities to contribute to reducing power consumption and CO₂ emissions at data centers.

• A cooling device that does not use refrigerant oil by using magnetic force to levitate the rotating shaft inside the machine.
• SMARDT: SMARDT Chiller Group Inc. Headquartered in Montreal, Canada, a pioneer and leading company in oil-free chillers
• An ultra-large-scale data center built with the intention of being leased to businesses that provide cloud services globally.

- Provision of optimal air conditioning control services using ICT

NTT Urban Solutions Group is conducting a service demonstration of optimal air conditioning control (AI air conditioning Urbannet Nagoya nexta Building) using the predictive technology of "Town Development DTCⓇ" (a technology that optimizes the entire town by linking various digital twins ^*1) at the "Urbannet Nagoya Nexta Building," and has achieved a 30% reduction in air conditioning energy in the summer by "predicting people flow" and "automatic control of air conditioning according to people's condition." ^*2 Going forward, we will deploy energy-saving solutions that adopt this technology.

• A technology that recreates various data collected from the real world on a computer as if it were a twin.
• Service demonstration results Implementation period: 8 days from August 23rd to September 15th, 2022, Demonstration area: 1st floor elevator hall (approximately 225 m2),
  Evaluation index: The reduction rate is calculated based on the amount of air conditioning energy used on a day when the average temperature is close to that of the implementation date.

Co-creation initiatives with partner companies

<(Tentative name) Uchisaiwaicho 1-chome Block Development Project>

The "Uchisaiwaicho 1-Chome Block Development Project (tentative name)" is one of the largest projects in central Tokyo, with a total floor area of approximately 1.1 million m2, and will consist of three districts - North, Central, and South - connected to Hibiya Park. In this project, NTT Urban Solutions Group will be involved as the operator in the Central District, where it will work with its joint venture partners (Kyoto Building Co., Ltd., TEPCO Power Grid, Inc., Mitsui Fudosan Co., Ltd.) and partner companies such as designers and builders to consider improving the building envelope performance, optimizing facility capacity, and solar power generation.

Furthermore, by utilizing ICT to predict people flow and control airflow in the air conditioning, the facility will aim to achieve both comfort and energy savings. In addition, through co-creation with the 10 joint venture companies listed below, the goal is to optimize energy supply and demand for the entire town block and reduce the environmental impact by making future predictions using data from the town.