Go to the contents of this page.


Search by Purpose CSR Content Menu

CSR Charter ⅡHarmonizing with the Environment and Contributing to Realizing a Sustainable Society

Risks and Opportunities Related to Climate Change

Principle and Outline

Tackling climate change is seen as one of the Sustainable Development Goals (SDGs) adopted by the United Nations. The Paris Agreement, a UN accord on climate change, went into force in November 2016. The accord is recognized as a framework of international efforts since 2020 for solving issues related to climate change. The Daigas Group recognizes that reducing greenhouse gas (GHG) emissions, known to be a factor for causing climate change, significantly and on a long-term basis, addressing the worldwide challenge of creating a low-carbon society in the future, and responding to heightened risks of natural disaster amid growing climate change are social issues facing the global community.

The Daigas Group believes reducing CO2 emissions is an extremely important mission for the company, whose primary business field is energy. The Group also believes that climate change may negatively affect its earnings and costs throughout its energy businesses.

Shown below is what the Daigas Group is trying to do in response to the perceived risks and opportunities associated with climate change.

Governance

Governance and management of discussions, decision making, monitoring, supervision, etc. related to business risks and opportunities caused by climate change are implemented in accordance with the Daigas Group's corporate governance and CSR management frameworks.

Strategy

Major risks and opportunities associated with climate change, their impact on business operations and finance, and methods to manage such risks and opportunities are listed below.

Risk

Risk factors Physical factors
(Japan) High tides caused by sea level rise or local abnormal climate, natural disasters such as torrential rain and typhoons (Overseas) Natural disasters occurring at locations of suppliers of LNG, as fuel for city gas and power generation Temperature rise
Impact of risks
  • Flooding of city gas production/supply facilities
  • Procurement of LNG stopped
  • Decrease in city gas sales (demand for hot water supply, heating)
Financial impact of risks
  • Increase in equipment repair costs
  • Increase in costs for procurement of LNG
  • Decrease in city gas sales profit
Measures employed to manage risks
  • Improving water-tightness of important buildings at production facilities (buildings equipped with important functions such as electrical instrumentation or control systems) and elevating the location of equipment
  • Establishing anti-disaster blocks* in gas supply areas where flooding damage is expected, which can suspend gas supplies by remote control
  • Promoting diversity of suppliers to secure stability in procurement of materials and fuels
  • Expanding fields where impact of temperature rise is little or where increased demand is expected, such as air conditioning and electricity
Costs for measures taken for risk management (Not disclosed) (Not disclosed) (Not disclosed)
* Blocks for gas supply areas
Blocks are set up to divide the gas pipeline network so that gas supplies will be suspended only for areas damaged severely by an earthquake, flood, etc. while gas supplies will be continued for areas with no damage.
Risk factors Regulation factors Technical factors Market factors Reputation factors
Tightening of regulations to reduce GHG emissions (changes in national energy plan/targets, introduction of carbon pricing, etc.) Weakening of competitiveness in environmental aspects of own products and equipment Shift in consumer preferences to energy with less GHG emissions Price rise due to increased demand for LNG with less GHG emissions Decrease in investment in companies expected to increase GHG emissions
Impact of risks
  • Because business is mainly supported by fossil fuels, decrease in sales of city gas and electricity.
  • Recovery of investment in equipment becoming difficult, as a result of the above.
  • Decrease in demand for our products and utilization of our equipment
  • Recovery of investment in equipment becoming difficult, as a result of the above.
  • Because business is mainly supported by fossil fuels, decrease in sales of city gas and electricity.
  • Recovery of investment in equipment becoming difficult, as a result of the above.
  • Rise in costs for procurement of materials and fuels
  • Decrease in sales due to rise of city gas and electricity fees
  • Because business is mainly supported by fossil fuels, CO2 emissions will increase, resulting in:
    - decline in capital-raising capability
    - decline in stock prices.
Financial impact of risks
  • Decrease in profits from sales of city gas and electricity
  • Decrease in profits due to lower utilization of equipment Decrease in profits from sales of city gas and electricity
  • Decrease in profits from sales of city gas and electricity
  • Decrease in profits due to less utilization of equipment
  • Decrease in profits from sales of city gas and electricity
  • Decrease in profits due to less utilization of equipment
  • Decrease in profits due to rise of procurement costs
  • Decrease in profits from sales of city gas and electricity
  • Shortage of capital
  • Increase in capital raising costs
Measures employed to manage risks (Measures common to all factors)
  • Developing and introducing (for Daigas Group and customers) high-efficiency products/equipment, equipment using renewable energy
  • Proposing and promoting energy-saving services
  • Conducting research on innovative technologies such as hydrogen, clean gas, and CCS (Carbon Capture and Storage)
  • Proposing policies related to GHG emissions reduction effects as a result of the above
  • Participating and implementing programs to realize a low-carbon society
  • Promoting public relations on GHG emissions reduction effects as a result of the above
  • Promoting public relations on GHG emissions reduction effects as a result of the above
  • Promoting procurement from diverse suppliers
  • Participating in upstream businesses, such as gas field development and LNG projects, to reduce impact of market fluctuations
  • Accepting flexible procurement contracts
  • Dialogue with investors on our contribution to GHG emissions reduction through the above measures and our business vision, etc.
Costs for measures taken for risk management (Environmental accounting)
  • Costs for measures to prevent global warming (investment: 370 million yen, expenses: 770 million yen)
  • Costs for research and development to prevent global warming (investment: 30 million yen, expenses: 130 million yen)

Opportunities

Opportunity factors Physical factors Regulation factors Technical factors Market factors Reputation factors
Temperature rise Tightening of regulations to reduce GHG emissions (changes in national energy plans, introduction of carbon pricing, etc.) Competitive advantage in environmental aspects of our products and equipment Shift in consumer preferences to energy with less GHG emissions Increase in investment in companies contributing to GHG emissions reduction
Impact of opportunities
  • Increase in sales volume of city gas and electricity (air-conditioning)
  • Because business is mainly supported by natural gas with less CO2 emissions, increase in sales volume of city gas and electricity
  • Expansion of businesses utilizing renewable energy and energy-saving services
  • Increase in demand for our products and utilization of our equipment
  • Because business is mainly supported by natural gas with less CO2 emissions, increase in sales volume of city gas and electricity
  • Expansion of businesses utilizing renewable energy and energy-saving services
  • Contribution to CO2 emissions reduction will be understood, resulting in:
    - expansion of capital-raising capability
    - rise in stock prices
Financial impact of opportunities
  • Increase in profits from sales of city gas and electricity
  • Increase in profits from sales of city gas and electricity
  • Increase in profits from sales of city gas and electricity
  • Increase in profits from sales of city gas and electricity
  • Increase in profits due to decline in capital-raising costs
Measures employed for management of opportunities (Measures common to all factors)
  • Developing and introducing (for Daigas Group and customers) high-efficiency products/equipment, equipment using renewable energy
  • Promoting fuel conversion to natural gas
  • Proposing and promoting energy-saving services
  • Conducting research on innovative technologies such as hydrogen, clean gas, and CCS (Carbon Capture and Storage), etc.
  • Participating in upstream businesses, such as gas field development and LNG projects, to secure a stable LNG supply
  • Proposing policies related to GHG emissions reduction effects as a result of the above
  • Participating and implementing programs to realize a low-carbon society
  • Promoting public relations on GHG emissions reduction effects as a result of the above
  • Promoting public relations on GHG emissions reduction effects as a result of the above
  • Dialogue with investors on our contribution to GHG emissions reduction through the above measures and our business vision, etc.
Costs for measures taken for management (Environmental accounting)
  • Costs for measures to prevent global warming (investment: 370 million yen, expenses: 770 million yen)
  • Costs for research and development to prevent global warming (investment: 30 million yen, expenses: 130 million yen)

Please refer below for further information on the Daigas Group's efforts to reduce greenhouse gas emissions.

Risk Management

The climate change risks for the Daigas Group may be affected by national policies and systems, environmental competitiveness of the products/equipment to be introduced or developed, consumer preferences for energy sources and products in terms of environmental aspects, and investor evaluation. Departments in charge of gas and electricity businesses and other businesses analyze these factors and the degree of impact of each of them, and list/identify risks for their business. These risks, along with other business risks, are examined by the Executive Board before a business plan is decided.

The climate change risks in each business plan formulated are reported and followed using the indicators and targets related to greenhouse gas (GHG) emissions provided below, in the Environment Subcommittee, CSR Committee, and CSR Promotion Council (Executive Board), and managed according to the PDCA cycle.

Indicators and Targets

The Daigas Group has set the indicators and targets below for greenhouse gas (GHG) emissions.

Indicator Targets Detailed information
Medium-term Management Plan 2020 Cumulative contribution to CO2 emissions reduction between FY2018 and FY2021
(Set as an item in materiality indicators and environmental action targets for FY2018 to FY2021)
7 million tons link
Long-term Management Vision 2030 Cumulative contribution to CO2 emissions reduction between FY2018 and FY2031 70 million tons
Environmental Action Targets
(targets toward FY2021)
Environmental Management Efficiency:
Environmental Impact of city gas business per 1,000 m³ of gas produced (Set as an item in CSR indicators)
14.2 yen / 1000 m³ link
CO2 emissions at LNG terminals per million m³ of gas produced 11.7 t-CO2 / million m³
CO2 emissions in office buildings per unit floor space 56.5 t-CO2 / 1,000 m²
CO2 emissions per unit power generation in power generation business Compared to FY2009 Down 15%
CO2 emissions per unit sales in businesses other than power generation business 8.2 t-CO2 / 10 million yen
Efforts to reduce CO2 emissions at customer sites and throughout the value chain Promoting diffusion of highly energy-efficient, high value-added appliances based on natural gas
Scope 1, 2, 3 emissions Recording actual figures
(No target values)
link

CSR of Daigas Group

President's Commitment
Management and CSR of the Daigas Group
Policies on CSR
Special Feature
Contribution to the Sustainable
Development Goals (SDGs)
Corporate Governance
Stakeholder Engagement
Value Chain of the Daigas Group
Actions on Materiality
CSR Charter Ⅰ
Creating Value for Customers
CSR Charter Ⅱ
Harmonizing with the Environment and Contributing to Realizing a Sustainable Society
CSR Charter Ⅲ
Being a Good Corporate Citizen Contributing to Society
CSR Charter Ⅳ
Complying with Laws and Regulations and Respect for Human Rights
CSR Charter Ⅴ
Management Policy for Human Growth
ESG Data
Reporting

President's Commitment
Management and CSR of the Daigas Group
Corporate Principles and CSR Charter
Daigas Group Code of Conduct
Global Compact and ISO 26000
Long-Term Management Vision 2030
Medium-Term Management Plan 2020
Policies on CSR
Special Feature
Contribution to the Sustainable Development Goals (SDGs)
Addressing Social Issues through Energy Services
Promote Efforts for Recognition, Understanding and Penetration of SDGs
Corporate Governance
Corporate Governance
Risk Management
CSR Management
Stakeholder Engagement
Dialogue and Cooperation with Stakeholders
Response to Stakeholders' Voices
Value Chain of the Daigas Group
Enhancement of CSR in Our Value Chain
Social Impact of Business Activities in Our Energy Value Chain and Efforts to Reduce Such Impact
CSR Efforts Throughout Supply Chain
Electricity and Gas Industry Reform
Actions on Materiality
Materiality
Customer Health and Safety
Product and Service Labeling
Energy / Emissions
Effluents and Waste
Local Communities
Customer Privacy
Grievance Mechanisms
Supplier Assessment
CSR Charter Ⅰ
Creating Value for Customers
Index
CSR Indicator
Safety and Security 1: Procurement Stage
Safety and Security 2: Processing Stage
Safety and Security 3: Distribution Stage
Safety and Security 4: Consumption Stage
Incorporating Customer Opinions
Proposing New Value
CSR Charter Ⅱ
Harmonizing with the Environment and Contributing to Realizing a Sustainable Society
Index
CSR Indicator
Environmental Management
Environmental Action Targets
Environmental Impact throughout the Daigas Group Value Chain
Risks and Opportunities Related to Climate Change
Method to Evaluate Effects of CO2 Emissions Reduction and Results
Efforts Contributing to Realizing a Low-Carbon Society
Helping Customers' Efforts for Realizing a Low-Carbon Society
Efforts in Resource Recycling
Conserving Biodiversity
Developing Environmental Technologies
Addressing Environmental Risk
Green Purchasing and Green Distribution
Environmental Communication
CSR Charter Ⅲ
Being a Good Corporate Citizen Contributing to Society
Index
CSR Indicator
Social Contribution Activities
Corporate Volunteering Activities under the “Small Light Campaign”
Activities for Promoting Communication with Society
Activities at Osaka Gas' Foundations
CSR Charter Ⅳ
Complying with Laws and Regulations and Respect for Human Rights
Index
CSR Indicator
Compliance Promotion Efforts
Action on Human Rights
Efforts for Protection of Personal Information
Information Security
Consultations and Reports from Partner Companies
CSR Charter Ⅴ
Management Policy for Human Growth
Index
CSR Indicator
Employment
Acceptance of Diversity
Balancing Work and Family
Human Resource Development and Rewards
Communication Between Employees and Company
Improving Occupational Health and Safety
ESG Data
Environmental Performance Data
Social Data
Governance Data
Reporting
CSR Report Policy
Commendation from the Outside
Third-Party Review / Third-Party Verification
Download
Course Taken Since the Company's Foundation
Reporting Guidelines
CSR Report 2018 Terminology
Search by Purpose
We Value Your Feedback
Osaka Gas in brief
Topics
CSR Site Map