Actions on Materiality
Supplier Assessment (FY2017 Report)
Reasons of materiality in respect of our business
Widespread value chains of our business function with imperative cooperation of various business partners. Fulfilling our social responsibilities together with our suppliers in the value chain leads to relationships of mutual trust with our stakeholders, resulting in the development of the entire value chain.
Inside and Outside of the Group
Management systems and its performance
Percentage of new suppliers that have been selected using criteria regarding environment, social impact, human rights and labor practices (G4-EN32, SO9, HR10, LA14)
Osaka Gas is committed to fulfilling CSR in close cooperation with business partners in line with the “Osaka Gas Group Code of Conduct,” revised in accordance with the United Nations Global Compact.
In material-procurement activities, which often involve business transactions with new suppliers, Osaka Gas requires to such suppliers to observe procurement-related standards and guidelines set by the company, including “Purchasing Policy” and “CSR-based Purchasing Guidelines.”
(International and domestic standards)
- U.N. Global Compact
(In-house policy and standards)
- CSR-Based Purchasing Guidelines
Each organization in charge of procuring particular materials is to fulfill its responsibility in accordance with the procurement-related policies and guidelines set by Osaka Gas.
A total of 63 suppliers began new business transactions with Osaka Gas in fiscal 2017. In the year, no business deals were barred from being started due to violations of standards set in the fields of environmental and social impacts, human rights and labor practices.
Specific actions taken regarding materiality
Measures in material procurement
Before starting business transactions, Osaka Gas communicates its “Purchasing Policy“ and ”CSR-based Purchasing Guidelines,“ and even confirms their efforts on CSR. In fiscal 2017, a survey was conducted on 192 major suppliers to check their CSR efforts. Furthermore, when the suppliers conduct business transactions with Osaka Gas, they are asked to observe ”Green Purchase Guidelines“ set by Osaka Gas, attached to the specifications for the business transactions.
Revision to the “Green Partner Initiative”
The “Green Partner Initiative” adopted by Osaka Gas is designed to promote environmental conservation by suppliers of gas pipeline materials. Under the system, suppliers that are recognized as being active in environmental conservation activities such as the building of an Environmental Management System (EMS) will be registered as Partners.
Osaka Gas initially focused on suppliers of gas pipelines for its “Green Partner Initiative.” In fiscal 2016, the Company revised the initiative to cover companies other than suppliers of gas pipeline materials as well. As of the end of March 2017, 111 suppliers were registered as Partners, up sharply from the 16 companies at the end of March 2016.
“CSR Survey” conducted on gas appliance makers to promote information sharing on social and environmental issues to be tackled by companies
Osaka Gas conducted a CSR survey on gas appliance makers to enhance their awareness of the importance of taking into account social and environmental aspects in doing business, and to ensure the safe use of gas appliances by end customers. The survey asked 30 companies about their CSR efforts regarding 67 items covered by eight themes—compliance, human rights, labor, occupational health and safety, product safety and quality, environmental protection, ethics and anti-corruption, and implementation systems—in line with the “CSR Procurement Guidelines on Gas Appliances.” Of the 30 companies, 27 replied.
Osaka Gas plans to conduct a CSR survey of LNG suppliers, service chains and engineering companies in fiscal 2018. We will continue to conduct similar surveys in the future as a means of deepening communications on our CSR with our business partners.
CSR Survey Conducted in FY2017
by the survey
|Number of companies
|Number of companies
|Main suppliers||192 companies||186 companies||“Green Partner Initiative”|
|Gas appliance makers
Conducted in April 2017
|30 companies||27 companies|
gas service chains, gas pipeline construction companies and others
|Planned to be conducted in FY2018|