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Tokyo Gas Group CSR Report 2016
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Social Report - For Our Business Partners
						Resource Procurement Management

Guidelines for Purchasing

Tokyo Gas established guidelines and basic requirements in 1992 to ensure open, fair, and equitable conduct in its purchasing activities. These guidelines and basic requirements have been made public through the website since July 2000.

We will continue to win the trust of our business partners by putting the above guidelines and basic requirements into practice, and conducting business transactions that are based on being highly transparent, fair, and equitable, thus enhancing our brand value of "Safety, Security, and Reliability."

Principle of Openness

It is the policy of the Company to purchase its goods and services both at home and abroad, insofar as the quality and the price of the goods to be purchased meet the Company's requirements.

The simplest and most reasonable purchasing procedure possible will be followed.

Principles of Fairness and Equality

The Company will select the supplier fairly and equally on the basis of economic rationality, in consideration of its quality, price, reliability, delivery date, service, integrity with facilities, and the technological ability, management condition and actions for CSR comprehensively.

Principle of Mutual Trust

The mutual trust and co-prosperity of the Company and its suppliers shall be established through purchase transactions based on the principles of fairness and equality. We consider it is essential to have high-quality goods and services supplied steadily, on time, and at reasonable prices for the stable and economical supply of city gas. We believe that such supply should be based on mutual trust between the Company and its suppliers.

Consideration of CSR

  1. (1)Practice of Compliance
    Both of the business partners must obey laws and social norms concerning labor and human rights and corporate ethics.
  2. (2)Environmental Conservation
    The Company shall promote Green Purchasing towards realization of resource saving society from the perspective of economy and environment.

Basic Requirements for Purchasing

The Company will offer the Basic Requirements for purchasing which should be accomplished based on mutual understanding between buyer and seller. We would like to ask for your cooperation.

1. Quality Guarantee

Products to be supplied should meet the requirements for quality and performance set by Tokyo Gas, and such quality and performance must last for a certain period of time to be determined on the basis of what is considered reasonable. Furthermore, all products to be supplied must be superior in terms of shape, structure, operability and maintenance system support.

2. Reasonable Pricing

The prices of the products to be supplied must be reasonable in light of the quality and performance of the product, the specifications, terms of delivery, purchasing quantities, payment terms and conditions, and the trend in market prices.

3. Delivery on Time

Suppliers must observe the contractual time of delivery specified by the Company.

4. Securing Safety

Products to be supplied shall be absolutely safe in their use and operation.

5. Maintenance and Service

Suppliers of the goods and services to be purchased by the Company must be able to provide inspection, maintenance, and repair services quickly and properly when required by the Company. The goods and services should therefore be designed and supplied with this requirement in mind. Suppliers must be capable of providing necessary parts and technical assistance quickly for standard repairs or in the event of an emergency.

6. Actions for CSR

  1. (1)Practice of Compliance
    We should obey the Antimonopoly Act, the Subcontract Proceeds Act and all related laws. Furthermore, personal information, confidential information, intellectual property and the like must be protected properly.
  2. (2)Environmental Conservation (Green Purchasing)
    We should take sufficient measures to mitigate the impact on the environment and show proper concern for environmental issues. The specifications of goods and services must therefore comply with our "Green Purchasing Promoting Manual" and "Environmental Common Specifications."
  3. (3)Risk Control
    The quick response to quality troubles and disasters is needed.
  4. (4)Consideration on Labor and Human Rights
    We should obey laws and norms concerning labor and human rights, and must take measures to provide a safe and clean workplace environment.

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Specifications for common environmental management

Specifications for common environmental management provide rules for construction and other work that has been commissioned by us. They stipulate issues such as compliance with laws, reduction of environmental burden, and consideration on occupational safety and health. Our business partners are shown these specifications and requested to follow their contents in every job that we commission.

Efforts for Fair Transactions

In order to maintain and strengthen the trust of our customers, compliance must be practiced not only by the Tokyo Gas Group, but also by our business partners. Tokyo Gas has therefore established a set of rules to prevent compliance violations before they occur.

To avoid violation of compliance by our company

Our Code of Conduct contains provisions regarding transactions and relationships with our business partners, while the Guidelines for Purchasing clearly specifies compliance to guidelines with ethical principles as well as laws and regulations. We use various opportunities to promote and enforce compliance.

To prevent violation of compliance by our business partners

Our Basic Requirements for Purchasing request that our business partners also ensure their thorough compliance with laws and regulations. In order to clarify what constitutes a compliance violation, as well as to explain how to deal with such cases and to prevent recurrences, we developed the Guidelines for Dealing with Compliance Violations by Our Business Partners in 2004, and are dealing with such issues accordingly.

Communication with Our Business Partners

In addition to guidelines and basic requirements for purchasing, we have disclosed on our website primary items to be procured and their method of procurement, in an effort to provide other companies with opportunities to do business with our company.

We also share information with our business partners through regular meetings and other occasions, and strive to maintain mutual communications. In addition, we conduct annual surveys on general information, compliance, and environmental efforts for each of our business partners.

Upon review of the survey results, we discuss them with executives of our business partners when necessary.

Results of the Survey on CSR Efforts Made by Our Business Partners
  • ✽1Percentage of respondents tackling the issue indicated.
  • ✽2Only business partners with which Tokyo Gas did at least a certain amount of business in the previous fiscal year were surveyed.
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Action on Resource Procurement

Initiatives for Green Purchasing

Green purchasing

Green purchasing is the practice of giving preference to businesses that have less of an environmental impact when purchasing items and services.

Policy on green purchasing

Tokyo Gas has systematically practiced green purchasing since fiscal 1996, and established the Green Purchasing Guidelines in 2000.

We not only ask that consideration be given toward the environment in our Guidelines for Purchasing, but demand that specifications are in line with our basic purchasing policies addressed in our Green Purchasing Promotion Guidebook.

We are also involved in various other measures to promote green purchasing.

Example of promoting green purchasing through the electronic catalog purchasing system

The electronic catalog purchasing* we use has more than 100,000 registered items.

We give preference to items that meet green purchasing requirements when selecting the main products featured in this electronic catalog, which include office supplies, fixtures, equipment, printed material, etc.

Presently, we have achieved a green purchasing rate of about 80%.

  • Electronic catalog purchasing (system name: PASPO) is an Internet-based method of ordering items conveniently and efficiently through an electronic catalog.
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Guidelines for Promoting Green Purchasing

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