We have conducted a survey targeting our key suppliers [1] using a Responsible Procurement Check Sheet since fiscal 2014.
The survey references the Responsible Business Alliance (RBA) Code of Conduct and the Japan Electronics and Information Technology Industries Association (JEITA)'s "Guidelines for Responsible Business Conduct." It aims to confirm the status of initiatives related to sustainable procurement as defined in the KDDI Group Sustainable and Responsible Procurement Guidelines, which include human rights and labor, safety and health, environment, fair and ethical trade, quality and safety, information security, and contribution to society. Through this survey, we make sure of sharing the KDDI Sustainable and Responsible Procurement Policy and other necessary information with suppliers.
Since fiscal 2023, we have adopted EcoVadis [2] and use independent third-party verification to evaluate our sustainability initiatives.
Additionally, we have started operating a common Self-Assessment Questionnaire, created jointly with NIPPON TELEGRAPH AND TELEPHONE CORPORATION and SoftBank Corp., establishing a unified set of questions and evaluation criteria. Furthermore, we request that our suppliers extend the same initiatives to their supply chains (secondary and beyond for the KDDI Group) through these questions, ensuring that the entire supply chain engages in these efforts.
The survey conducted with KDDI Group's key primary suppliers achieved a high response rate of 95% against a target collection rate of 90%, aiding in understanding the supply chain situation and analyzing risks. Additionally, we issue feedback sheets to all respondents, including scores and corrective comments.

For suppliers deemed to have insufficient sustainability systems or initiatives based on the survey results, we provide feedback on the survey findings and conduct on-site investigations, as well as face-to-face or web-based hearings. This helps us understand the actual status of their initiatives and confirm transaction risks. Additionally, we conduct on-site investigations and provide improvement proposals through third-party audits. The results of the hearings with the suppliers we engaged with revealed that there were no critical risks requiring immediate termination of transactions. If improvements and corrective actions are not made within a specified period, we will consider terminating the transaction. (In fiscal 2023, no contracts with suppliers were terminated.)

To promote sustainable procurement activities across the entire supply chain, we regularly monitor the response and improvement status of suppliers who have been requested to make improvements through surveys and interviews. We share KDDI's expertise in sustainability activities and collaborate with our suppliers to enhance sustainability. Through communication with our suppliers, we strive to provide ongoing support for continuous improvement.
Starting from fiscal 2024, we will support more concrete improvement activities by referring to the "Sustainability Handbook" and the "Handbook for Visualizing GHG Emissions," which were created and issued in collaboration with NIPPON TELEGRAPH AND TELEPHONE CORPORATION and SoftBank Corp.

The following indicators are subject to third-party verification.