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

Environmental Impact throughout the Osaka Gas Group Value Chain

Environmental Impact throughout the Osaka Gas Group Value Chain in FY2017

The Osaka Gas Group calculated the amount of greenhouse gas (GHG) emitted by companies that constitute the Osaka Gas Group's value chain network, based on the GHG Protocol, an international emission standard. The methodology of the calculation and its results have been certified by an independent organization to warrant their reliability and accuracy.

Combined GHG emissions by the Osaka Gas Group and value-chain companies, measured by CO2, totaled about 36.13 million tons in fiscal 2017. The sum breaks down into about 4.36 million tons or about 12% for GHG emitted through business activities by the Osaka Gas Group (Scope 1 and Scope 2), and about 31.77 million tons or about 88% emitted by organizations involved in our value-chain (Scope 3).

GHG emissions from city gas combustion on the customer side amounted to 19.91 million tons in the reporting year in terms of CO2, accounting for about 55% of the total. This makes it all the more important for Osaka Gas to further diffuse energy-efficient ENE-FARM systems and cogeneration systems for which our company has mounted a promotional campaign-while promoting energy conservation using natural gas, an energy source that emits less CO2.

GHG emissions through electricity generation by the Osaka Gas Group, as measured in terms of CO2, came to 3.9 million tons, representing about 11% of the total. As a way of reducing GHG emissions from its own business activities, the Group will continue to actively introduce highly advanced energy-efficient power generation facilities and using renewable energy sources.

GHG emissions from material and fuel procurement totaled 5.9 million tons in the year, accounting for about 16% of the total emissions. The procurement of energy sources, especially LNG, accounted for nearly 90% of the 5.9 million tons. Under these circumstances, we will continue our efforts to improve fuel efficiency regarding the operation of LNG tankers in collaboration with material suppliers.

Activities that have potential environmental impacts other than GHG emissions include the disposal of waste (general waste and industrial waste), and the disposal of excavated soil and polyethylene pipes associated with gas pipe works. However, the recycling rates are high for such waste, a situation we will try to maintain in the future.

More than 99% of water used for our industrial activities is taken from the sea. Such water is mostly used to vaporize LNG at LNG terminals. Sea water is also used as coolant inside the steam turbine condenser at some power stations. Once used, the water is discharged into the sea under strict control.

GHG Emissions Throughout the Value Chain in FY2017

GHG Emissions Throughout the Value Chain in FY2017
GHG Emissions Throughout the Value Chain in FY2017

LCA*1 Comparison of GHG Emission among Fossil Fuels

Natural gas is highly expected as clean energy with the least environmental impact among fossil fuels.

Comparison of Greenhouse Gas Emissions (g-CO2/MJ, HHV)

Coal*2 Oil*2 LPG*2 LNG*3 City gas 13A*3
Production 4.58 4.06 4.94 7.93 7.48
Transport 1.71 0.79 1.80 1.97 1.48
Manufacturing - - - - 0.19
Infrastructure 0.11 0.08 0.11 0.05 0.34
Combustion 88.53 68.33 59.85 49.50 50.96
Total 94.93 73.26 66.70 59.45 60.46
Ratio 160 123 112 100  

*1 LCA (Life Cycle Assessment) : A comprehensive method of survey, analysis, and evaluation of the amount of environmental impacts of products and services. The assessment covers all the related processes from resource extraction to waste disposal including production, transportation, consumption, and recycling for the products and services.

*2 Source: Future Forecast for Life Cycle Greenhouse Gas Emissions of LNG and City Gas 13A (Energy and Resources, Vol. 28, No. 2, March, 2007)

*3 Source: Calculation of life cycle greenhouse gas emissions of LNG and city gas 13A (Research papers and a collection of academic speeches released at the 35th meeting of the Japan Society of Energy and Resources, held between June 6 and June7, 2016)

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