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Policy on CSR Procurement of Gas Equipment

Requests to Our Business Clients

Osaka Gas regards its business clients as important partners for the company. We will endeavor to establish relations of mutual trust between Osaka Gas and the clients, and promote their mutual prosperity. Osaka Gas will also work together with its clients to help fulfill their corporate social responsibility (CSR). For these goals to be achieved, Osaka Gas hopes that the clients will have a better understanding of its basic procurement policy and will act positively regarding the items explained below.

Scope of application of the policy

CSR procurement guidelines are applied to makers that manufacture gas appliances supplied to us and those that make components of such appliances.

Policy on CSR procurement

  1. All-out efforts to observe compliance
    It is necessary for our business clients to observe all relevant laws and regulations—not only those enforced in countries and areas where they are conducting their business operations but also international codes of conduct deemed essential for the fulfillment of CSR—and respect the spirit, social norms and corporate ethics relating to such laws and regulations, while behaving in a sensible manner as members of society.
  2. Human rights
    It is necessary for our business clients to respect the human rights of all people engaging in business activities and conduct their business operations while taking necessary measures so that corporate activity will not lead to direct or indirect violation of their human rights.
  3. Labor
    To fulfill accountability in the international community, it is necessary for our business clients to prohibit all kinds of discrimination, forced labor and child labor, and respect the rights of their employees.
  4. Labor safety, and health and sanitation
    To maintain safe and healthy labor conditions, it is necessary for our business clients to take measures aimed at ensuring employees' safety and reducing their health-related risks.
  5. Safety and product quality
    To ensure the safety of products and keep their quality at high levels, it is necessary for our business clients to observe all safety-related laws and regulations, safety standards and safety guidelines, and do all they can in research, development and production.
  6. Price and delivery deadline
    To realize prices that satisfy customers, it is necessary for our business clients to deliver products at adequate prices and make continuous efforts to lower prices. It is also necessary for them to endeavor to establish a stable and flexible product supply system to meet the set delivery deadline.
  7. Environmental conservation
    It is necessary for our business clients to observe relevant environment-related laws and regulations, minimize negative effects on the environment from corporate activity, and promote the development of environmentally friendly products.
  8. Corporate ethics and prevention of corruption
    To maintain fair business practice, it is necessary for our business clients to prohibit all kinds of corruption and to behave according to sound ethical standards.
  9. Implementation system
    To implement the guidelines, it is necessary for our business clients to establish an effective in-house implementation system and for Osaka Gas to disseminate information on the guidelines to the clients.

Guidelines for the Policy

2. Human rights
  • ①Acts regarded as workplace harassment or inhumane treatment must not be tolerated, including sexual harassment, corporal punishment, physical or mental coercion, and verbal abuse. Any threats that may lead to such acts must not be tolerated.
  • ②It is necessary for our business clients to refrain from using so-called "conflict minerals" (tantalite, tin, tungsten and gold) in their products because such minerals could be a direct or indirect source of funds or profits for armed forces that are known to be responsible for abusing human rights in the Democratic Republic of the Congo and its surrounding area.
Supplementation ② conflict minerals
Armed forces are involved in the mining of conflict minerals, with some of the proceeds from the deals of such minerals flowing into them, helping strengthen their military power and supporting their looting and violent activities. Companies using conflict minerals in their products are therefore regarded as tantamount to abetting human right violations.
The Dodd-Frank Wall Street Reform and Consumer Protection Act, enacted in the United States in July 2010, obligates listed companies operating in the country to report the use of minerals produced in the Democratic Republic of the Congo and its surrounding areas. Japanese companies listed on US stock exchanges are also subject to this act.
3. Labor
  • A) Prohibition of forced labor
    • ①It is necessary to prohibit forced labor, debt-repayment labor, slavery labor and involuntary prisoner-like labor.
    • ②It is necessary to prohibit laborers from being required to submit officially certificated documents such as ID cards, passports and work permits to their employers.
  • B) Prohibition of child labor
    • ①It is necessary to ban the employment of people younger than 15.
    • ②It is necessary to ban the employment of people whose ages are younger than the minimum permissible labor age or the age at the time of the final year of compulsory education, when such ages are set at 15 or older in local laws or regulations.
    • ③It is necessary to ban people aged less than 18 from engaging in dangerous work to ensure their safety and health.
  • C) Foreign workers and immigrants
    • ①It is necessary to limit the employment of foreign nationals or immigrants to those with work permits.
    • ②It is necessary to observe laws and regulations related to foreign nationals and immigrants when such people are employed.
    • ③It is necessary to ban the collection of security money or deposits from foreign nationals, immigrants or parties related to them before such people are employed.
  • D) Prohibition of discrimination
    • ①It is necessary to prohibit discrimination against people in employment, assessment of work performance or promotion based on race, skin color, nationality, gender, personal human relations, religion, national background, social background, political views, age, disability or other reasons not related to the execution of business duties.
  • E) Respecting rights of workers
    • ①Labor contracts must be concluded between management and employees, and labor conditions must be presented to employees for their labor rights to be respected.
    • ②It is necessary to allow labor unions to be organized on the initiative of workers, and for such unions to operate in line with local law in view of the fact that the promotion of communication between management and workers on labor conditions is effective for the preservation of such conditions. It is also necessary to respect workers' rights to participate in labor unions.
  • F) Adequate levels of wage
    • ①Labor contracts must contain reference to wage terms and details related to wages.
    • ②A wage equal to or greater than the minimum amount set under local law must be paid to workers. Workers must be paid for overtime work in accordance with the relevant laws and their contract. When the minimum wage set under local law is revised, the change must be notified to the employees concerned.
    • ③When workers are employed on a consignment basis or they are dispatched from manpower agencies, a wage equal to or greater than the minimum amount set under local law must be paid to them.
    • ④It is necessary to pay a sufficient wage to workers to enable them to lead a good life, if the company can afford it.
  • G) Labor hours
    • ①It is necessary to observe local laws and regulations regarding labor hours and holidays.
    • ②Workers must get at least one day off after working for six straight days.
    • ③Weekly labor hours for workers must not exceed 60 hours.
Supplementation A: Forced labor
In principle, workers should engage in labor on a voluntary basis. It is necessary for workers to have discretion regarding which vocation they are to take. Workers' right to choose their jobs or freedom regarding the selection of jobs must not be limited. Workers must not be made to engage in forced labor.
Supplementation B: Child labor
Children younger than 14 engage in labor in emerging countries. Even in countries where the practice of child labor is part of the culture and parents are positive about the practice, all children have the right to receive education. Therefore, depriving children of their educational opportunities and their future amounts to violation of their human rights.
Supplementation D: Prohibition of discrimination
Personal human relations represent relations not directly related to the execution of business duties, such as whether workers are married, or their sexual orientation. National background and social background represent nationality and social status, respectively.
4. Labor safety, and health and sanitation
  • ①It is necessary to take all measures deemed necessary to reduce safety and health risks associated with business duties.
  • ②To reduce the health risks of employees, it is necessary to conduct health checks for them at least once per every year, with the company bearing the cost.
  • ③It is necessary for the company to provide its employees with protective gear, while bearing the cost, and periodically teach them how to use them.
  • ④It is necessary for the company to ensure the safety of machines operated by its employees.
  • ⑤To ensure workers' safety, it is necessary to periodically check the safety of structures, such as buildings and manufacturing plants, and inspect disaster-prevention facilities installed at these structures.
  • ⑥To ensure workers' safety, it is necessary to confirm an escape route in the event of emergencies such as fire and natural disasters, and conduct a fire drill at least twice per every year to respond effectively to such emergencies.
  • ⑦If dormitories are operated by the company, it is necessary to improve sanitary conditions and ensure safety there.
Supplementation ③ Protective gear used by each employee
Protective gear includes masks, gloves and helmets, all aimed at ensuring workers' safety and health. It is necessary for the company to provide employees with such gear.
7. Environmental conservation
  • ①It is necessary to observe environment-related local laws and strive to prevent contamination of the air, water and soil.
  • ②It is necessary to keep measuring and assessing the use of resources and the discharge of waste materials, and endeavor to reduce their impact on the environment.
  • ③It is necessary to observe all kinds of environment-related laws and regulations—those concerning the recycling and disposal of waste materials, the prohibition and restriction of the use of specified chemical substances, and the labeling of such substances.
  • ④It is necessary to identify chemical substances that may lead to environmental contamination, and ensure safety in their handling, transportation, stockpiling, use, recycling, reuse and disposal.
Supplementation ③ Specified substances
Specified substances are chemical substances whose negative effects on human bodies following their intake have been confirmed, and whose leakage due to accidents will likely harm the environment. People appointed to manage the use of such chemical substances need to place priority on ensuring safety when handling them so that employees' health and the environment will not be negatively affected.
8. Corporate ethics and prevention of corruption
  • ①It is necessary to prohibit all kinds of corruption, including graft, extortion, embezzlement and bribery; it is also necessary to terminate contracts with clients immediately after such acts are confirmed, and take legal action if necessary.
  • ②It is necessary to prohibit the provision and receipt of gifts and entertainment that constitute illicit profit, such as bribery.
  • ③It is necessary to set standards on fair business practice and competition.
  • ④It is necessary to prohibit business transactions with anti-social forces and organizations.
Supplementation
Solid legal frameworks have yet to be established in some emerging countries. Concepts such as norms and ethics do not exist in countries under military control for years. These are countries where government officials may solicit bribe money from foreign companies operating there.
A law prohibiting bribery was enacted in the UK in 2010. The law is applied not only to British companies but also to foreign companies and individuals doing business in the country. Therefore, companies doing business in the UK face the risk of being punished severely if bribery is confirmed in their business activities. Once such conduct is reported by media, the company's evaluation will be affected enormously, possibly endangering its business operations. Similar laws have been enacted or are under consideration in the United States and China. These moves have driven companies to look for ways to ensure fair business practice and competition.

Formulated in January 2015

CSR of Daigas Group

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