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Tokyo Gas Group CSR Report 2016

CSR at the Tokyo Gas Group
The Tokyo Gas Group's Key CSR Activities and Material Aspects

Tokyo Gas Group has set targets in six key areas of CSR activity, and is working to achieve and exceed these targets in order to improve its CSR practice.

Following the formulation in October 2014 of our "Main Policies FY2015-2017 toward Realizing Challenge 2020 Vision," (hereafter "Main Policies"), we reviewed our key CSR activities in light of social expectations and identified specific issues for each activity that should be addressed as a matter of priority ("material aspects") in accordance with GRI Guidelines.

In fiscal 2016, these material aspects were reviewed once again further to the addition of "supplier assessment" to the important issues based on the results of the previous review, and action to address them continues today.

The activities being pursued will undergo ongoing assessment and improvement using PDCA cycles.

Determination and Review of Material Aspects

STEP 1 Identification of Social Issues
  • The issues to be considered are identified comprehensively based on GRI G4 Guidelines, ISO 26000, and other relevant international guidelines on the social responsibilities of organizations.
  • The impacts of these social issues (CSR-related issues) are determined based on the business characteristics, strategies, and scope of impact of each of the Tokyo Gas Group's LNG value chains, then narrowed down to important issues.
Rating by Priority Level
  • Important issues selected at STEP 1
    • Questionnaire findings and other feedback are assessed to provide a stakeholder perspective.
    • The issues selected are provisionally ranked by the relevant business departments.
  • The results of assessments of material aspects from both stakeholder and Tokyo Gas Group perspectives are mapped.
    Important issues to be addressed by the Group on a priority basis are identified through internal consultations.
STEP 3 Suitability Confirmed and Issues Finalized
  • The suitability of the important issues is assessed by experts in relevant fields.
  • The Group's key CSR activities are reviewed and the important issues defined for each activity as material aspects.
  • Material aspects are finalized by approval of the Corporate Communications Promotion Committee (the body driving CSR).
  • Targets ("CSR indicators") are set for each material aspect in collaboration with the relevant business departments.
STEP 4 Review
  • Activities are assessed based on attainment of CSR indicators for the material aspects identified, and a CSR report published.
  • Annual reviews are conducted taking into account the results of internal and external questionnaires, SDGs and other international goals and guidelines, and the views of outside experts.
  • This information is used to review the material aspects and CSR indicators and improve report content, and is incorporated into business.
Grounds for Determining Material Aspects
Stakeholder perspective Company perspective
  • Requirements under international guidelines
  • Stakeholder feedback
    (questionnaires, expert opinion, employee opinion surveys, etc.)
  • Questionnaire and assessment items used by finance-related research agencies
  • Environmental impact assessment
  • Priority vis-a-vis group business strategy* (scale of impact, degree of urgency)
  • Main Policies (evolution of the total energy business, acceleration of global business development, construction of a new group formation)

Opinions from Experts

Junichi Mizuo Professor, Surugadai University Faculty of Economics and Management
  • Stance on sustainability is an important contributor to raising corporate brand value. The three S's that lead to sustainability (safety, supply, and stakeholder satisfaction) are inseparable from the Tokyo Gas Group. As employees are both organizational insiders and external stakeholders, they are in a unique position to influence other stakeholders. Placing a premium on ES (employee satisfaction) and raising employee motivation will therefore be of prime importance to CSR practice in the future.
  • If the expertise built up in Southeast Asia is rolled out to other regions as well, Tokyo Gas will be able to make a major contribution as a global enterprise. It has the potential to become a company capable of sustaining sustainability worldwide.
  • Japanese firms will undoubtedly attract attention as the Tokyo 2020 Olympic and Paralympic Games draw closer, necessitating still greater action on CSR (including along supply chains) and disclosure.
Yoshinari Koyama Vice President and Professor, College of Economics, Kanto Gakuin University
  • The Tokyo Gas Group's business activities have an inherent significant bearing on the public interest, and its CSR practice appears to be exceedingly well integrated into its operations. Priority CSR activities are being pursued through appropriate operational processes, with accordingly effective results.
  • Tokyo Gas has become a total energy business that no longer just supplies gas, and highlighting the way it anticipates society’s expectations should reveal its commitment as a frontrunner.
  • Supply chain management is a weak spot for Japanese firms. Showing concern for societies in the countries where gas resources are procured is extremely important. Starting with the immediately feasible, Tokyo Gas should step up action while disclosing information on the initiatives it is already pursuing.
  • Overall, the company still comes across as being domestically focused. Information should also be provided on such topics as action on human rights, labor, and biodiversity in the context of globalization, and approaches to training and hiring employees capable of working overseas.
Naoki Adachi CEO, Response Ability, Inc.
  • With interest further spurred by the adoption of SDGs, sustainability will be a guiding watchword for the future. Consumers in Japan are very price conscious when it comes to energy. Internationally, however, the shift away from carbon is accelerating under the influence of the Paris Agreement, and the Tokyo Gas Group needs to set long-term targets for roughly two phases (up to 2030 and up to 2050) to show what types of energy it intends to supply in the future.
  • As business structures change, so too do their impact on the environment, human rights, and like issues. Foreign workers are used extensively in resource extraction and marine transportation, and consideration should be given to taking action in these fields in collaboration with foreign firms experienced in human rights issues.
  • The question of how to go about expanding overseas is a topic of extreme importance, and it is hoped that Tokyo Gas will optimize its contributions in each region where it does business through the use of new technologies, finding the best mix of gas and electricity, and other means. The means and technologies developed to date to ensure safe gas use will also have a role to play.

Overview of Material Aspects Analysis Map and Key Activities

Six Key Activities and Material Aspects
1. Enhancement of energy security
  • Stable supply
  • The pursuit of safety
  • Provision of better products and services
2. Contribution to the environment
  • Global warming countermeasures
  • Promotion of resource saving
  • Promotion of biodiversity conservation
  • Promotion of environmental technologies development
3. Contribution to local communities
  • Safe and secure ways of life and urban development
  • Enrichment of society
4. Respect for human rights
  • Human rights due diligence
5. Promotion of compliance
  • Permeation and rigorous practice of compliance
  • Protection of personal information
  • Prevention of bribery and corruption
6. Enhancement of people-centered management base
  • Promotion of diversity
  • Development of human resources
  • Occupational safety and health
Material Aspects Analysis Map

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