Aiming to Become a Company that Can Contribute to Customers and Society
On Oct. 19, 2015, the Daigas Group marked the 110th anniversary of its foundation. Since its foundation in 1905, the Group has striven to become a company that can solve social issues and contribute to society through the stable supply of reasonably priced city gas, sales of gas appliances, and the provision of diversified businesses and services, while competing with companies offering other fuels. Each Group company in its business field has consistently and sincerely tackled issues facing customers and society while upholding three slogans: “pursuit of business efficiency,” “contribution to society,” and “provision of solutions.” By doing so, the Daigas Group has won the trust of customers and society, and has strengthened its competitiveness.
Despite the needs of customers and society becoming increasingly diversified and complex, and competition intensifying, Group companies will work hard together and continue to provide solutions by presenting goods and services that can contribute to society.
The Group's History Since its Foundation
1897: Osaka Gas was founded
1905: Osaka Gas launched its business by starting to supply gas
- In the middle of the Meiji Era, fires caused by kerosene lamps frequently occurred in densely populated areas including Osaka. In those days, Osaka Gas, in a foundation statement presented to the authorities, pledged to disseminate kerosene lamps and electric lights by encouraging people to switch to those lighting devices from gas lamps. The pledge was part of the Company's activities to solve issues facing society at that time, and kerosene lamps and electric lights were seen as contributing to the safety of each local community.
Iwasaki plant (located in then Iwasaki Town, currently part of Nishi Ward, Osaka City)
1933: “Osaka Gas Building” was completed
- Osaka Gas Building, the head office building of Osaka Gas, was completed in Yodoyabashi, Osaka City. The building, which currently serves as the south building of the Osaka Gas head office, embodied the philosophy cherished by then Osaka Gas Chairman Naokata Kataoka. He said at that time that Osaka Gas must become known and loved by citizens through its gas business. He also said that Osaka Gas Building must act as a place of exchange between his company and citizens and serve as a place to bring citizens closer to the gas business. As pledged by Kataoka, Osaka Gas Building has become a base for promoting exchange with citizens, as well as a cultural dissemination center.
Osaka Gas Building
1945: Osaka Gas merged with 14 companies, including Kobe Gas and Kyoto Gas
Osaka Gas became a gas provider that catered to the six prefectures in the Kansai region.
1946: Osaka Gas formed its own labor union
- In December 1945, a labor union was formed for employees working for the Iwasaki factory in Iwasaki Town, Osaka City. In February 1946, another labor union was formed, this time for employees working for the Kyoto branch, followed by one union after another at its respective business offices.
In-house work rules for employees
1970: Gas explosion occurred at a subway construction site
A large explosion involving gas supply facilities occurred in Osaka City. The accident killed 79 people and injured 420.
Immediately after the accident, Osaka Gas set up an emergency team to handle the provision of compensation to the victims' families and to investigate the cause of the accident. Following the accident, the Company strengthened its security and safety system to prevent similar occurrences in the future. Specifically, it established a department tasked with devising security measures and created a 24-hour control center to handle contingencies expeditiously and comprehensively. In 1972, the Company employed a large number of people fresh out of school and deployed many of them in departments related to gas pipeline operations. The deployment was intended to facilitate overall inspections of gas pipes and supply facilities, enhance the safety and security of engineering work, and strengthen patrols to detect engineering works that are conducted without notification to authorities.
1972: Commenced import of LNG from Brunei
LNG is superior to other fossil energy sources in terms of environmental preservation, supply stability and economic efficiency. At that time, LNG was drawing keen attention as a next-generation energy source that could respond to the surging demand for city gas backed by the rapid urbanization of Japan and its booming economic growth.
Osaka Gas signed an agreement to purchase LNG from Brunei Cold Gas for 20 years in partnership with Tokyo Electric Power Co. and Tokyo Gas Co. With this agreement, Osaka Gas became the first Kansai-based company to import LNG.
“LNG FLORA” commenced its service in 1993
1975: Commenced natural gas conversion
Osaka Gas turned to high-calorie natural gas as its raw material to produce city gas, instead of relying on coal and petroleum for city gas production. In line with this policy change, the Company constructed LNG terminals, established LNG processing facilities and laid gas-supply facilities. In addition, Osaka Gas staff visited all of its customers' residences and sought their cooperation when the staff adjusted their gas appliances to prevent incomplete gas combustion.
Under a 16-year project that was concluded in December 1990 without a single accident, Osaka Gas replaced gas facilities at a total of 4.4 million households. The number of gas appliances at the households applied adjustment for conversion to natural gas came to 23 million units.
Himeji LNG processing plant (Shown on the left is Kansai Electric Power Co.'s Himeji LNG terminal.)
- Opening of Osaka's first subway system (Umeda-Shinsaibashi)
- End of the Pacific War, followed by the start of post-war reconstruction of a war-ravaged Japan
- Promulgation of the Labor Union Act
- Promulgation of the Air Pollution Control Act
- Expo'70 world exhibition held in Osaka
- Oil Crisis
1981: “The Small Light Campaign” was launched
- The “Small Light Campaign” was launched as a volunteering activity of the Osaka Gas Group aimed at getting each employee of the Group interested in efforts in their own backyards and encouraging them to exercise initiative in resolving problems confronting their local communities.
Charity bazaar held at the facade of Osaka Gas Building
1984: Osaka Gas launched a gas water heater with a device to prevent incomplete combustion
- Osaka Gas began developing and selling gas appliances with a function to prevent carbon monoxide emissions caused by incomplete combustion.
Gas leakage alarm with fire and incomplete combustion alarm function
1985: Customer centers began operating at three model branches
- Customer centers were set up at three model branches in response to applications and inquiries from customers regarding our gas services. Such centers, which served as integrated help desks for customers, had been established at all branches by 1987. Customer centers and Osaka Gas Group companies were linked with each other online via a computer center. The execution of business duties was expedited and business efficiency was realized thanks to the customer centers. In 1987, the “Hello Service” was introduced at all of the Group companies to promote expeditious and adequate response to customers. The service, operated under partnership between Osaka Gas and its service chain, helped enhance customer satisfaction with our service.
Customer center (Kyoto branch)
1987: Osaka Gas launched the small-sized GHP
- Against the background of growing public calls for the development of small-sized air conditioners, which were being sought in terms of energy saving and convenience, the research and technology association for small-sized gas engine heat pump air-conditioners developed household-use GHPs and small GHPs for industrial use, and commercialized them. Established in 1981, the association consists of three utilities—Tokyo Gas Co., Toho Gas Co. and Osaka Gas Co.—plus about 12 manufacturers.
Exhibition of gas engine heat pump air-conditioners (GHP) (Gas Total Fair)
- International Year of Disabled Persons
- Bubble economy in Japan
1992: Formulation of Osaka Gas Environmental Philosophy (Osaka Gas Environmental Activities Guidelines)
To clarify our Company's stance on the environment and further promote environmental activities, the Company formulated the Osaka Gas Environmental Philosophy. To concretize this philosophy, the Company adopted the Osaka Gas Environmental Activities Guidelines. The Osaka Gas Environmental Philosophy states that promoting environmental preservation is an extremely important mission for an energy service provider. It also states that Osaka Gas must recognize the deep linkage between our business operations and the environment, and includes the Company's readiness to bring its business operations into harmony with the environment.
1992: Formulation of the Code of Conduct for Procurement Activities (called CSR-based Purchasing Guidelines)
Osaka Gas has adopted the Code of Conduct for Procurement Activities (called “CSR-based Purchasing Guidelines” ) as a way of fulfilling its CSR in procurement activities as well as establishing relationships of mutual trust between our Company and our suppliers, and promoting mutual development. The Code of Conduct for Procurement Activities spelled out a set of requests to our suppliers regarding material procurement from them.
1995: The Great Hanshin-Awaji Earthquake - suspended gas supply to about 860,000 households in Osaka Gas's business area
- On January 17, the Great Hanshin Earthquake dealt devastating damage to the Hanshin and Awaji regions, including gas supply facilities operated by Osaka Gas. The Osaka Gas Group suspended gas supply to about 860,000 households on the day of the disaster as a way of preventing secondary damage. A total of 720,000 staff, including those dispatched from gas business operators across the nation, were deployed to the affected regions to repair the damaged gas facilities. On April 11, 1995, the 85th day of the calamity, our repair work was completed without causing a single accident.
Collapsed houses and gas meters
1998: Adoption of Osaka Gas Corporate Action Guidelines and Osaka Gas Group Corporate Action Guidelines
Osaka Gas, a public-interest company whose main business pillar is the gas business, adopted the Osaka Gas Corporate Action Guidelines and the Osaka Gas Group Corporate Action Guidelines to fulfill its mission of responding to growing demand from society for the observance of corporate compliance.
- Great Hanshin Awaji Earthquake
- Adoption of the Kyoto Protocol at COP 3
- Adoption of OECD Principles of Corporate Governance
2000: Formulation of the Osaka Gas Group Code of Conduct
Osaka Gas adopted the Osaka Gas Group Code of Conduct, a concrete version of the Osaka Gas Corporate Action Guidelines and the Osaka Gas Group Corporate Action Guidelines. The Osaka Gas Group Code of Conduct serves as guidelines for all employees of the Osaka Gas Group, ranging from rank-and-file workers to board directors, to take appropriate actions at a time when business operations of the Osaka Gas Group have become broad-based and diversified.
2000: Adoption of the Green Purchasing Guidelines
Osaka Gas adopted the Green Purchasing Guidelines, which are aimed at promoting not only the optimal procurement of goods, services and engineering work in terms of quality, prices and delivery deadlines, but also environmentally friendly procurement.
2000: Establishment of the Human Rights Center
The Osaka Gas Group set up the Human Rights Center in April 2000 within the Human Resources Department to promote education for human rights awareness in a systemic manner. The Group also created the Corporate Human Rights Committee as part of its efforts to establish a system to promote human rights awareness.
2003: Establishment of Compliance Desks
The Osaka Gas Group established Compliance Desks at its head office, core affiliates and law offices outside the Company to provide a channel for persons who need a place to seek advice on, and report matters of compliance with, laws and internal rules. Not only Board Directors and regular employees of the Group and workers dispatched from manpower agencies to work for the Group, but also Directors of client companies and regular employees of these companies can seek advice or give reports by phone, email, or in writing.
2006: Adoption of the Osaka Gas Group CSR Charter
Following the adoption in 2005 of the Group's corporate philosophy, Value Creation Management, we set forth the Osaka Gas Group CSR Charter as a way of clarifying our position on CSR to both inside and outside the Company. The charter serves as guiding principles for Board Directors of the Osaka Gas Group and its employees in conducting their business, with the Group believing that creating “value for customers,” “value for society,” “value for shareholders” and “value for employees” -through fair and transparent business activities -constitutes fulfillment of the Group's corporate social responsibility (CSR).
2006: Adoption of the Osaka Gas Group Environmental Activities Policy
We adopted the Osaka Gas Group Environmental Activities Policy as a way of concretizing the Osaka Gas Environmental Philosophy from three viewpoints-reduction of the impact of its business activities on the environment, reduction of the impact of its products and services on the environment, and improvement of the environmental situation in regions, both at home and abroad. The Osaka Gas Group has been taking environmental actions based on this policy.
2007: Osaka Gas expressed its support for the United Nations Global Compact
Osaka Gas threw its support behind the United Nations Global Compact, a set of principles to be observed by internationally oriented companies amid business globalization, and signed it. Osaka Gas became the first utility in Japan to do so. The Global Compact encompasses 10 principles for enterprises to follow in the four fields of human rights, labor standards, the environment and anti-corruption.
2007: Formulation of The Product Safety Voluntary Action Plan for the safety of household-use gas appliances
Osaka Gas formulated a voluntary action plan for the safety of household-use gas appliances. The action plan serves as a standard based on which retailers of household-use gas appliances, as well as engineering firms specializing in facility installation and repair work, take safety measures. By implementing the action plan, Osaka Gas aims to ensure the safety of household-use gas appliances and foster a culture that leads to product safety.
2007: Osaka Gas obtained integrated certification for ISO 14001 international environmental management standards.
In 1997, the Production Department of Osaka Gas (currently, the LNG Terminal & Power Generation Business Unit) obtained the ISO 14001 international environmental management standards. Since that time, Osaka Gas business locations covered by ISO 14001, a set of standards regarding environmental management system (EMS), have increased, resulting in the obtainment in 2007 of integrated certification. After Osaka Gas acquired integrated certification for ISO 14001, the Company has been working on retaining the certification while calling for all of its employees to make further efforts to reduce the impact of their business activities on the environment and observe compliance with environment-related laws and regulations.
2009: Development and sale of the home-use fuel cell “Ene-Farm” (polymer electrolyte fuel cell: PEFC)
- Osaka Gas was a pioneer in developing a home-use cogeneration system as part of its efforts to help realize a low-carbon society through the efficient use of energy sources. In 2009, the Company launched “Ene-Farm, ” the world's first home-use fuel cell.
“Ene-Farm” Polymer electrolyte fuel cell (PEFC)
2009: Adoption of the Osaka Gas Environmental Policy
As a company whose mission is to supply city gas to households, we formulated the Osaka Gas Environmental Policy based on Charter Ⅱ of the Osaka Gas Group CSR Charter, “Harmonizing with the Environment and Contributing to Realizing a Sustainable Society. ” The policy calls for the Osaka Gas Group to promote environmental conservation, energy saving and the efficient use of energy sources in undertaking its business activities. The Company has been disseminating the content of the policy to all employees in charge of the management of the environmental management system (EMS), while urging them to take environmental actions based on the policy.
- Promulgation of the Whistleblower Protection Act
- Promulgation of the Anti-monopoly Act,
promulgation of the Companies Act, announcement of Principles for Responsible Investment
2010: Adoption of the Osaka Gas Group Biodiversity Promotion Policy
Osaka Gas adopted the Osaka Gas Group Biodiversity Promotion Policy as a way of deeply recognizing the linkage between its business operations and biodiversity, and taking action based on this recognition. The policy was formulated based on the idea that various benefits brought about from biodiversity were essential for people.
2011: Osaka Gas provided support to repair gas facilities damaged by the Great East Japan Earthquake and Tsunami
- The March 2011 earthquake that originated in the waters off the Sanriku region in Miyagi Prefecture and the subsequent tsunami left gas supply suspended at about 460,000 households in the Tohoku and Kanto areas. At the request of the Japan Gas Association, Osaka Gas and other major utilities deployed their staff to repair gas facilities damaged by the disaster. Following these initial support activities centering on the repair of gas facilities, the Osaka Gas has undertaken various other support activities for the affected people and regions, including volunteering activities by its employees.
Ceremony to accept staff from across Japan in charge of repairing damaged gas facilities
2014: Adoption of the Osaka Gas Group Diversity Promotion Policy
The Group formulated the Osaka Gas Group Diversity Promotion Policy to establish a solid organizational structure by which new value can be created, with the aim of enhancing our corporate value. By promoting the policy, we aim to help create a society in which socially vulnerable people can exert their abilities without being placed in a disadvantageous position.
2015: Adoption of the Osaka Gas Group Corporate Principles
Osaka Gas adopted the Osaka Gas Group Corporate Principles as part of its efforts to transform itself into a comprehensive energy service provider. The principles, which serve as the basic value for our Group management, were set in the wake of significant changes in the business environment surrounding the Osaka Gas Group, including liberalization of the electric power and gas markets.
2015: Adoption of CSR Procurement Guidelines for Gas Appliances, etc.
Osaka Gas adopted CSR procurement guidelines regarding our purchase of gas appliances, other gas-related facilities and equipment, and parts constituting such appliances and equipment. The guidelines were intended to deepen the understanding of parts and appliance suppliers of our basic CSR procurement policy and for them to fulfill CSR jointly with us.
- *The guidelines were renamed “CSR Procurement Guidelines for Gas Appliances, etc.” in 2018.
- *In 2020, the guidelines were revised into the Daigas Group Procurement Policy and the Daigas Group Procurement Policy for Suppliers.
2016: Osaka Gas began supplying electricity to households and small-lot business users.
Japan reviewed its domestic energy policy following the Great East Japan Earthquake, spurring state-led reform of the electricity and city gas markets. In April 2016, retail sales of electricity were completely liberalized, prompting the Osaka Gas Group to start supplying electricity to customers in the six prefectures in the Kinki region.
2018: Adoption of “Daigas Group,” the new Group brand
The adoption of “Daigas Group,” our new group brand, symbolizes and announces, both inside and outside the Group, the passion that each Group employee should hold in working to build “an innovative energy and service company that continues to be the first choice of customers,” the Group's long-term management vision. The term Daigas represents the Dynamic and Innovative vision we must realize and the genuine and studious mindset that we have kept for over 110 years.
2018: Established CD Energy Direct Co., Ltd., an energy sales company in the Tokyo area
On April 2, 2018, the Daigas Group, jointly with Chubu Electric Power Co., established CD Energy Direct Co., Ltd., a new company offering services related to gas and electricity, daily life and business in the Tokyo area.
The business resources and know-how the two companies have cultivated in their respective gas and electricity businesses will be integrated and fully utilized in the Tokyo area. The new company will also offer maximum value to households and companies through competitive sales of gas and electricity.
Moreover, through services using IoT technologies, the company will create new values that are useful to our customers' lives and businesses, with the aim of offering new business models and services beyond the boundaries of the energy business field.
2018: Northern Osaka Earthquake, associated with suspension of gas supplies to approx. 110,000 households, and efforts to restore services
On June 18, a great earthquake hit northern Osaka. The Daigas Group immediately suspended city gas supplies to approx. 110,000 households through the operation of automatic shutdown equipment, etc., to prevent a secondary disaster. As a result of our all-out efforts to restore the damage to the city gas supply facilities in cooperation with gas business operators nationwide, we were able to resume gas supplies to 111,951 households on June 24.
2019: Participated in the Japan TCFD Consortium in support of the TCFD Recommendations
The TCFD Consortium was established on May 27, 2019 to discuss efforts to disclose information on tackling climate change in line with the TCFD Recommendations, and 164 organizations (as of the time of establishment) in the industrial and financial industries, including Osaka Gas, participated in the Consortium. At the Consortium, the members discuss how companies can effectively disclose information on tackling climate change and how financial institutions can use the disclosed information to make appropriate investment decisions.
2020: Established core energy business companies and made organizational changes to Osaka Gas
To respond to changes in the business environment and continuously grow, Osaka Gas established three new affiliates (subsidiaries wholly owned by Osaka Gas and specified as core energy business companies) intended to play a key role in the energy field. These core energy business companies started their business in April 2020. Along with the start of business of the core energy business companies, Osaka Gas consolidated the strengths of Osaka Gas and its affiliates into the core energy business companies. Also, Osaka Gas is making organizational changes to its sales division, aiming for more agile business management from a customer-first point of view.
2020: Revised the Code of Conduct for Procurement Activities into the Daigas Group Procurement Policy
In June 1992, Osaka Gas established the Code of Conduct for Procurement Activities as its basic policies about procurement activities and the CSR Procurement Guidelines, which listed CSR-related requirements for its business partners. In April 2020, Osaka Gas revised these rules into the Daigas Group Procurement Policy and the Daigas Group Procurement Policy for Suppliers so that the Daigas Group could work with business partners on global social issues. Among the contents of the Daigas Group Procurement Policy for Suppliers, points to note about efforts for social sustainability in particular have been put together as the Daigas Group Procurement Guidelines for Suppliers for easy reference.
- COP10 (the 10th meeting of the Conference of the Parties to the Convention on Biological Diversity) was held.
- The Great East Japan Earthquake occurred.
- The UN adopted the SDGs (sustainable development goals).
- Full liberalization of the electricity retail market started.
The Paris Agreement, a framework for international efforts from 2020, came into force.
- Full liberalization of the city gas retail market started.
The TCFD Recommendations to support and encourage companies to disclose climate-change-related information were published.