NTT DATA has agreed a partnership with Climeworks to buy carbon dioxide removal credits to cover residual emissions that are difficult to eliminate.
The deal comes as the technology services group says it remains on course to reach net zero across Scope 1 and 2 emissions in its global data centre operations by 2030 and in its global offices by 2035.
According to the companies, the arrangement makes NTT DATA the first Japan-based IT and technology services provider to partner with Climeworks on this type of carbon removal procurement. The credits will be used as a final measure for emissions that remain after direct reductions.
Operational decarbonisation remains the main route for cutting emissions. In its latest public report for fiscal year 2024, NTT DATA said 56% of the electricity used across its operations came from renewable sources, up 7 percentage points from the previous fiscal year.
The group is also targeting net zero for Scope 3 emissions by 2040. Scope 1 and 2 cover direct emissions and purchased energy, while Scope 3 includes emissions across the wider value chain.
Removal credits
Carbon dioxide removal credits are becoming a larger part of corporate climate strategies, particularly in sectors where some emissions are hard to avoid. The market remains under close scrutiny from investors and policy groups, as companies face pressure to show that removals are supplementing direct cuts rather than replacing them.
NTT DATA said its agreement with Climeworks would be used on that basis. Climeworks said the arrangement would give NTT DATA access to hundreds of kilotons of carbon removal over the next decade.
"Climate action requires practical execution, clear priorities and transparency," said Yutaka Sasaki, President and CEO, NTT DATA Group Corporation. "NTT DATA is continuously reducing our carbon emissions, and we extend our overall expertise and experience to help clients along their own journeys to truly sustainable operations. Our agreement with Climeworks complements these efforts by applying high-quality CDR credits toward our own residual emissions, and we believe our support will help expand the effectiveness and reach of CDR technology overall."
Climeworks linked the agreement to rising electricity use and emissions concerns tied to artificial intelligence and expanding data centre estates. Large technology groups have faced growing scrutiny over whether rapid digital growth is compatible with climate targets.
"As artificial intelligence scales and data center construction expands, companies need clear, credible ways to manage their carbon footprint," said Christoph Gebald, Co-CEO and Co Founder, Climeworks. "Through this agreement, we're helping NTT DATA progress toward its net-zero operational goals. By providing access to hundreds of kilotons of carbon removal over the next decade, Climeworks is demonstrating that carbon removal is becoming a critical part of the AI economy."
Client work
Alongside its own emissions plans, NTT DATA is expanding sustainability advisory and technology services for customers. Those services cover climate and nature, corporate sustainability, sustainable IT and supply chain work.
The move reflects a broader shift in the market as large consultancies and technology providers compete to help clients measure emissions, prepare disclosures and redesign operations to cut carbon output. Businesses are also seeking help to track emissions linked to data use, software, infrastructure and procurement.
David Costa, Chief Sustainability Officer at NTT DATA, said customers want sustainability programmes that can be measured and implemented in day-to-day operations.
"Clients are asking for sustainability strategies that are measurable, operational and grounded in real data," said Costa. "Our role is to help them move from ambition to action - from carbon measurement and reporting readiness to reduction pathways across operations, technology and value chains. That same discipline guides our own approach: reduce first, be transparent about progress and limitations, and use carbon removal where it is appropriately justified for residual emissions."
NTT DATA, part of NTT Group, said its latest climate update forms part of a wider push to align its operations with evolving standards on climate and nature action. Its work in this area is intended both to cut its own emissions and to support customers seeking to meet their own net zero objectives.
The business describes itself as a technology services provider with annual revenue of more than USD $30 billion and says it serves 75% of the Fortune Global 100. NTT Group invests more than USD $3 billion each year in research and development.
Pressure on NTT DATA to show progress is likely to intensify as customers, regulators and investors focus more closely on energy use in digital infrastructure. Its latest reported figure showed that 56% of the electricity used across its operations came from renewables.