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Corporate Governance

Risk Management

Organizational Risk Management Structure

Heads of divisions of the Daigas Group and affiliates are in charge of managing crisis-related losses by conducting risk-management inspections on a regular basis. Utilizing the Gas Group Risk Management System (G-RIMS), which systematizes self-checkups of risk management, and other systems, each division and affiliate checks if there are any risks and if risk control has been conducted properly regarding each risk item, and implements follow-up and other measures if necessary. The CSR Committee's subpanel in charge of risk management meets to clarify and share awareness among all employees regarding how the Daigas Group should respond to possible risks in the future, based on the results of G-RIMS.

As for risk management regarding matters that affect the entire Daigas Group, such as safety, security, and disaster and accident prevention, the departments or divisions responsible have been clarified to support each division. In order to be prepared for disasters or emergency situation, the Rules for Disaster Control and the Business continuity plan (BCP) in the Event of Large-Scale Disasters and Accidents have been established.

Regular Reviews and Monitoring

Operating G-RIMS, our own self-assessment system

G-RIMS was introduced by the Daigas Group in 2006 to manage business risks in its daily operations. Under the system, a manager in charge of risk control at each organization and affiliated company checks the implementation of risk-prevention and early-detection measures, devised based on around 50 risk items. The manager is also tasked with identifying risks to be addressed and assessing their potential seriousness before drawing up and implementing response plans and follow-up measures while operating the PDCA (plan-do-check-act) cycle.

G-RIMS (Gas Group Risk Management System) Check List
1. Management environment
  • Dissemination of corporate philosophy
  • Decision making and follow-up process
  • Poor maintenance of regulations
  • Failure to report business information that should be reported
  • Effectiveness of self-audits
2. Human rights, harassment
  • Violation of human rights (general)
  • Harassment (sexual harassment, maternity harassment, power harassment)
3. Personnel affairs, labor affairs
  • Inappropriate labor management
  • Securing and development of human resources
  • Loose observance of labor-related laws
  • Inappropriate employment contracts with non-regular employees
4. Accident prevention, workplace safety
  • Slack conduct regarding accident prevention and workplace safety
  • Vehicles for business use
5. Response to relevant laws
  • Violation of relevant laws
6. Illegal transactions
  • Violation of the antitrust act
  • Violation of the subcontract act
  • Rejection of consumption tax pass-through
  • Violation of the labeling act
7. Inappropriate relationships
  • Relationships with public servants, cozy relationships with clients
8. Anti-social forces
  • Relationship with anti-social forces
9. Insider trading
  • Practice of insider trading, provision of insider information
10. Subsidies
  • Illegal receipt of subsidies
11. Management of seals
  • Illegal use of seals
12. Purchase, expense-related spending
  • Inappropriate procedures and illegal practices concerning purchase and expense-related spending (accounting spending)
13. Illegal practices concerning money transfer
  • Illegal use of bank accounts
  • Embezzlement of cash
  • Embezzlement of sales proceeds
  • Illegal spending
  • The same person taking a spending-related post for a long time
14. Accounting, tax-related procedures
  • Errors, illegal practices and delays concerning accounting and tax-related procedures
15. Credit control, loan control
  • Irrecoverable loans, delays in loan collection
  • Acceptance and execution of guaranteed debts
16. Management of corporate clients
  • Compliance problems emerged at corporate clients concerning human rights, labor practices, environment and corruption.
17. Whistle blowing system (Compliance Desk)
  • Insufficient dissemination of a whistleblowing system
  • Operational defects of a whistleblowing system
18. Environment-related
  • Violation of environment-related laws
19. Products, services
  • Quality of products and services (complaints, defects, recall, product liability)
20. Business continuity in emergency
  • Suspension of business activities in the event of emergencies such as natural disasters
21. Intellectual property
  • Insufficient protection of intellectual property rights owned by Osaka Gas
  • Infringement of intellectual property rights owned by third companies
22. Lawsuits
  • Legal disputes such as lawsuits
23. Information disclosure
  • Inappropriate information disclosure procedures and the subsequent erosion of public trust in Osaka Gas
24. Information control in general
  • Leakage, loss and illegal use of information
25. Computer network-related (computer networks, business apps related to computer networks,
information used via such networks and apps)
  • Illegal use of information, illegal alteration of information and information leakage, all arising from the lack of security measures
26. Personal information concerning customers and corporate clients (including customer information)
  • Leakage, loss and illegal use of personal information concerning customers
27. Personal information concerning employees
  • Leakage, loss and illegal use of personal information concerning employees
28. “My Number” system (individual identification number and specified personal information)
  • Leakage, loss and illegal use of “My Number” identification numbers
29. Funds, derivatives
  • Problematic fund management and fund procurement
  • Problematic fund control
  • Speculative derivative transactions
30. Electronic banking
  • Illegal and erroneous money transfers using the electronic banking system

Operating Status of the Internal Control Systems

Osaka Gas establishes systems (internal control systems) to ensure that the directors of the Company execute the duties in compliance with the laws and regulations and the Articles of Incorporation and other systems necessary to ensure the properness of the Group's operations. The Company confirms the operating status of the internal control systems on a periodic basis by receiving reports from the organizational heads and other persons concerned regarding items to be confirmed. At the meeting of the Board of Directors held on April 24, 2019, it was reported that the internal control systems were operating in a proper manner.

Overview of operational status of the internal control system

  1. (i) Matters concerning compliance

    The CSR Committee has been promoting CSR activities through the "Compliance Subcommittee," the "Environment Subcommittee," "Social Contribution Subcommittee," "Information Security Subcommittee" and "Risk Management Subcommittee" during the fiscal year under review. Educational materials, including a guide to the "Daigas Group Code of Business Conduct," are posted on the intranet at all times to familiarize Directors and employees of the Group with said Code to promote and ensure its understanding thereof. In addition, to promote further understanding and effective use of the consulting and reporting system for employees as an internal reporting system, a poster presentation is made to publicize the reporting system and detailed explanations on the system and the concept of compliance are provided via the intranet or other means.

  2. (ii) Matters concerning risk management

    Organizational heads of the Company and presidents of the affiliated companies promote the management of the risk of losses and periodically conduct risk management assessments. Each basic organization or affiliated company identifies risk items, checks the status of management concerning the risk items and conducts follow-ups or other measures by using such means as the "G-RIMS (Gas Group Risk Management System)," which systematizes the self-assessment of risk management practices. Regarding the management of risks concerning security and disaster prevention which are common to the Group, the organization in charge is clearly specified, and the organization supports each basic organization and affiliated company to ensure risk management on a Group-wide basis. To prepare for emergencies, regulations for disaster countermeasure and business continuity plans are prepared. During the fiscal year under review, the Company invited new gas retailers to join our company-wide disaster-prevention drills to confirm possible cooperation between gas retailers and gas pipeline operators in case of large-scale disasters.

  3. (iii) Matters concerning the management of businesses in the Group

    The affiliated companies to be managed by the core companies or the management support organizations are designated and their managerial tasks are monitored by receiving reports on important issues from the affiliated companies. In addition, day-to-day management of those affiliated companies is performed by using the G-RIMS and/or conducting audits. The Company's Auditing Department, which conducts internal audits, implements planned internal audits of the Company's organizations and the affiliated companies and provides follow-up audits after a certain period of time.

  4. (iv) Matters concerning the effectiveness of audits by Audit & Supervisory Board Members

    Full-time Audit & Supervisory Board Members have periodic exchanges of opinion with the Representative Director and Chairman, the Representative Director and President and the accounting auditor, in which Outside Audit & Supervisory Board Members also participate as necessary. Partly through the opportunity to exchange opinions with the accounting auditor, Audit & Supervisory Board Members evaluate the qualifications, expertise and independence of the accounting auditor. Full-time Audit & Supervisory Board Members attend important meetings such as the Management Meeting, the CSR Promotion Meeting, the Investment Evaluation Committee, etc., and read approval documents and other important documents. Through a Board of Directors' resolution on the internal control systems, they also clarify important matters to be reported to Audit & Supervisory Board Members and disseminate information thereof. Four assistants to Audit & Supervisory Board Members are in place to engage solely in assisting Audit & Supervisory Board Members in the performance of their duties.

CSR of Daigas Group

President's Commitment
Management and CSR of the Daigas Group
Policies on CSR
Special Feature
The Daigas Group addresses social issues with its human resources and technical expertise
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

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
CSR Integrated into
Management Strategy
Policies on CSR
Special Feature The Daigas Group addresses social issues with its
human resources and technical expertise
Reducing greenhouse gas emissions
through efficient use of natural gas and expansion of renewable energy
Constructing resilient infrastructure for disaster-resistant urban development
Promoting the evolution of ICT/IoT
services to solve customer problems
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
Customer Health and Safety
Energy / Emissions
Local Communities
Customer Privacy
Supplier Assessment
Training and Education
Diversity and Equal Opportunity
Economic Performance
CSR Charter Ⅰ
Creating Value for Customers
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
CSR Indicator
Environmental Management
Environmental Management:
Indicators, Targets and Results
Actions for Climate Change:
Recognition of and Action on Risks and Opportunities
Actions for Climate Change: Method to Evaluate Effects of CO2 Emissions Reduction
Actions for Climate Change: Working to Reduce CO2 Emissions in Business Activities
Actions for Climate Change: Working to Reduce CO2 Emissions at Customer Sites
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
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
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
CSR Indicator
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
CSR Report Policy
Commendation from the Outside
Third-Party Review / Third-Party Verification
Course Taken Since the Company's Foundation
Reporting Guidelines
CSR Report 2019 Terminology
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