Actions on Materiality
Supplier Assessment (FY2018 Report)
Reasons of materiality in respect of our business
Widespread value chain of our business functions 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
Indicator (GRI Standards: 308-1, 414-1)
Percentage of new suppliers that have been selected using criteria regarding environment, social impact, human rights and labor practices
Osaka Gas is committed to fulfilling CSR in close cooperation with business partners in line with the “Daigas 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)
- Code of Conduct in Purchasing Activities
- 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 34 suppliers began new business transactions with Osaka Gas in FY2018. 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 FY2018, a survey was conducted on 175 major suppliers to check their CSR efforts. Furthermore, when the suppliers conduct business transactions with Osaka Gas, they are asked to observe “Green Purchasing 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 FY2016, the Company revised the initiative to cover companies other than suppliers of gas pipeline materials as well. As of the end of FY2018, 108 suppliers were registered as Partners.
“CSR Survey” Conducted on LNG suppliers, gas appliance makers to promote information sharing on social and environmental issues to be tackled by companies
Osaka Gas conducted a CSR survey of 11 LNG suppliers with which the Company has concluded long-term contracts. Of the 11 suppliers, 10 replied to the survey, which included new questions reflecting changes in global social trends from FY2015 when the previous survey was conducted. The questions under the latest survey were also aimed at confirming specific response actions being taken by those polled regarding human rights, labor practices and anti-corruption.
In addition, Osaka Gas conducted a CSR survey of 30 gas appliance makers to enhance their awareness of the importance of ensuring the safe use of gas appliances by end customers as well as taking into account social and environmental aspects in doing business. The survey was designed to confirm the CSR efforts being made by those polled 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 and Other Equipment.” Of the 30 companies, 27 replied. Osaka Gas also conducted a CSR survey of 241 companies, including service companies, and engineering firms, to which the Company has entrusted some business duties. Of the total, 158 gave answers.
We will continue to fulfill our social responsibility in partnership with our clients and aim to promote mutual development for the entire value chain.
CSR Survey Conducted in FY2018
by the survey
|Number of companies
|Number of companies
|Main suppliers||175 companies||168 companies||“Green Partner Initiative”|
|LNG suppliers (conducted in February 2018)||11 companies||10 companies|
|Gas appliance makers (conducted in April 2017)||30 companies||27 companies|
|Service companies, engineering firms (conducted in July 2017)||241 companies||158 companies||Holding of CSR study sessions|