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

Environmental Management

Aspects Determined as Materiality

  • Effluents and Waste

Principle and Outline

The Daigas Group sees the pursuit of environmental conservation on a local and global scale in the course of its business activities to be an important mission as a comprehensive energy provider. In 1992, we formulated our “Environmental Philosophy” and began implementing environmental conservation activities in accordance with our “Environmental Activities Policy,” and we established a “Biodiversity Promotion Policy” in 2010 to help preserve biodiversity.

We are also carrying out environmental management throughout the Group by acquiring and administering ISO 14001 certification and other environmental management systems (EMS).

Daigas Group Environmental Activities Policy

The “Environmental Philosophy” the Daigas Group established in 1992 enshrines the idea that environmental preservation is of paramount importance for energy utility companies, and that the Daigas Group, being acutely aware of the impact of its business activities on the environment, seeks to harmonize its businesses with the environment. The Group also adopted the “Environmental Activities Policy” consisting of three parts to put the philosophy into practice, and has continued to promote environment-friendly activities in compliance with the policy. The “Environmental Philosophy” was integrated into the “Osaka Gas Group CSR Charter” in 2006 (revised to the Daigas Group CSR Charter in January 2018).

Ⅰ:Reducing Environmental Impacts of Our Business

We aim to reduce the environmental impacts of our business activities.

To this end, Daigas Group will strengthen its environmental management system and promote internal activities aimed at saving energy and natural resources.

Ⅱ:Reducing Environmental Impacts of Our Products and Services

By offering environmentally friendly natural gas, and our products and services which contribute to reducing environmental impact, we are making our efforts in partnership with our customers to achieve environmental impact reduction.

To this end, we will strive to develop energy-saving systems which contribute to environmental conservation.

Ⅲ:Contributing to Environmental Conservation Locally, Nationally and Internationally

Daigas Group aims to take an active part in environmental conservation activities in areas wherever we conduct business, both in and outside Japan.

Formulated on January 22, 1992 (Osaka Gas Environmental Philosophy)
Formulated on December 25, 1992(Osaka Gas Environmental Action Guidelines)
Integrated Into the Osaka Gas Group Environmental Activities Policy on April 1, 2006
Revised on January 31, 2018
Implemented on March 1, 2018

We are stepping up environmental protection based on the “Daigas Group CSR Charter” and the “Daigas Group Environmental Activities Policy.” To that end, we have set medium-term targets for reducing greenhouse gas (GHG) emissions from business activities and implementing the 3Rs (reduce, reuse and recycle). In March 2017, we adopted the Long-Term Management Vision 2030 which envisages a set of goals to be achieved toward FY2031, released under the title of “Going Forward Beyond Borders,” including the Medium-Term Management Plan 2020 which contains specific strategies and management indicators for implementing the Long-Term Management Vision 2030. The vision set the goal of reducing GHG emissions by the CO2 equivalent of 70 million tons between FY2018 and FY2031, including emissions on the side of customers and from overseas operations. We aim to achieve the vision by spreading the use of natural gas, developing and diffusing highly efficient appliances including fuel cells, proposing energy-saving solutions, and using more renewable energy sources. We are also striving to preserve biodiversity based on the “Daigas Group Biodiversity Promotion Policy.”

Furthermore, the Daigas Group will continue to develop and spread the use of new technologies that contribute to establishing a better environmental society both locally and globally.

Daigas Group Biodiversity Promotion Policy

The Daigas Group established a policy on preserving biodiversity in April, 2010.

The Daigas Group recognizes its involvement in domestic and international biodiversity through its business activities and its capability to contribute to educational activities related to biodiversity for customers in various areas through our products and services. As such, we must act in accordance with the thinking that the various benefits of biodiversity are indispensable to humankind.

Companies are expected to play a part in decisions regarding private sector planning of biodiversity treaties including the Basic Act on Biodiversity and people expect us to address biodiversity, which is closely tied to global environmental issues.

We have established the Daigas Group Biodiversity Promotion Policy to conserve biodiversity and contribute to creating a society in harmony with nature that can pass on the gifts of nature to future generations, and to promote initiatives related to conserving biodiversity and using resources sustainably.

Formulated on April 26, 2010
Revised on January 31, 2018
Implemented on March 1, 2018
CSR Executive, Osaka Gas Co., Ltd.

Statement

We at the Daigas Group, will contribute to the realization of a sustainable society in harmony with nature by cooperating with various constituents, proactively undertaking initiatives for conserving biodiversity and using resources sustainably, and educating our customers through products and services that take biodiversity into consideration. To that end, we will carry out the two ongoing initiatives outlined below.

1. We will endeavor to grasp the connections between business activities and biodiversity (the gifts of nature and

impacts).

2. By engaging in business activities that take biodiversity into consideration and other activities, we will reduce

our impact on biodiversity and endeavor to use resources sustainably.

Specifically, we will engage in activities based on the following seven perspectives.

Ⅰ:Ongoing Initiatives

We will achieve improvements in awareness of biodiversity initiatives for each and every one of our employees and undertake ongoing initiatives from a medium- to long-term perspective.

Ⅱ:Regional Importance and Broad Global Awareness

We will carry out initiatives aimed at improving awareness of the formation of links to nature in regional areas and biodiversity as a group of companies with roots in regional areas. Furthermore, taking into account our dependence on resources from overseas, we will contribute to conserving biodiversity from a global perspective.

Ⅲ:Cooperating with and Taking into Consideration a Variety of Stakeholders

Through dialogue, we will take into consideration the opinions of and cooperate with a variety of stakeholders on biodiversity initiatives including researchers, and representatives from governments and non-profit organizations (NPOs).

Ⅳ:Philanthropy

As a local citizen, Osaka Gas will collaborate with governments and citizens to conserve and restore local biodiversity, and engage in activities to improve local citizens' awareness of these initiatives. Furthermore, as a good corporate citizen we will endorse and collaborate on international projects that contribute to biodiversity.

Ⅴ:Cooperating with and Taking into Consideration a Variety of Stakeholders

In addition to measures to prevent global warming at the Daigas Group, when implementing the greening of business locations, we will take into consideration biodiversity such as giving preference to native species.

Ⅵ:Consideration through Supply Chain

We will endeavor to procure resources taking biodiversity into account.

Ⅶ:Cooperating with and Taking into Consideration a Variety of Stakeholders

When planning large-scale projects that have the potential for major environmental impacts on ecosystems implemented by the Daigas Group, we will determine the impacts as necessary and endeavor to reduce and mitigate the impacts on biodiversity.

In addition to initiatives based on these seven perspectives, as a company of which major business revolves in the Kansai Region, Osaka Gas will promote activities for the conservation and planting of native plant species such as those mentioned in classic literature texts and contribute to the restoration of natural spaces in the region to their original form. Furthermore, in the area of urban development and reconstruction, we will contribute to conserving biodiversity and improving local citizens' awareness by acting on knowledge accumulated up to now at the Daigas Group.

Osaka Gas Environmental Policy

“Osaka Gas Environmental Policy” is the commitment by the CEO. Aiming for its achievement, Osaka Gas established the Environmental Management System, and incorporated it in its business operation.

Osaka Gas Environmental Policy

  1. In order to fulfill its mission as a gas supplier, Osaka Gas makes efforts for environment preservation, energy conservation, and resource saving in its business activities in accordance with the Daigas Group CSR Charter.
  2. Daigas Group CSR CharterⅡ. Harmonizing with the Environment and Contributing to Realizing a Sustainable Society

    Addressing the issues of the environment both at regional and global levels is of paramount importance for the Daigas Group which is engaged in wide-ranging energy services. The Group, being seriously aware of the impacts of its business activities on the environment, seeks to harmonize its businesses with the environment and to realize efficient utilization of energy resources, thereby contributing to achieving a sustainable society.

  3. Complying with the requirements of ISO 14001, Osaka Gas sets the objectives and targets aiming for the continuous environmental practice, and makes efforts for the continuous improvement of its Environmental Management System. These are reviewed at planned intervals.
  4. Osaka Gas pursues further reduction of environmental load, prevention of pollution and preservation of biodiversity through implementation of proactive actions on following dimensions.
  5. Daigas Group Environmental Activities Policy

    1. Reducing Environmental Impacts of Our Business
      We aim to reduce the environmental impacts of our business activities. To this end, Daigas Group will strengthen its environmental management system and promote internal activities aimed at saving energy and natural resources.
    2. Reducing Environmental Impacts of Our Products and Services
      By offering environmentally-friendly natural gas, and our products and services which contribute to reduce environmental impact, we are making our efforts in partnership with our customers to achieve environmental impact reduction. To this end, we will strive to develop energy-saving systems which contribute to environmental conservation.
    3. Contributing to Environmental Conservation Locally, Nationally and Internationally
      Daigas Group aims to take an active part in environmental conservation activities in areas wherever we conduct business, both in and outside Japan.
  6. Osaka Gas complies with the legal requirements and other requirements to which it subscribes.

This Environmental Policy is communicated to all persons involved with the operation of the Osaka Gas Environmental Management System, and is available to the public.

Revised on January 31, 2018
Implemented on March 1, 2018
CSR Executive, Osaka Gas Co., Ltd

System to Promote Environmental Management

Responsibilities

To carry out CSR activities that are both appropriate and robust, the Daigas Group has established a CSR Promotion Council, composed of executives, that carries out CSR planning and reports on results of activities under the supervision of the president. Furthermore, a CSR Committee, led by the CSR Executive (Vice President) and composed of the heads of business units, coordinates and advances CSR activities group-wide. The Environment Subcommittee was set up to work in coordination with the CSR Committee on CSR Charter II issues and to carry out environmental management.

A unified environmental management system (EMS) based on ISO 14001 is deployed across the company under the supervision of the CSR Executive to ensure that environment-related laws and regulations are complied with and that employees work together to reduce the environmental impact of business activities.

In addition, the Daigas Group’s 55 domestic affiliates operate under different EMS standards, such as ISO 14001, Eco Action 21, and the Daigas Group Environmental Management System (OGEMS).

Environmental Management Promotion Organization

Environmental Management Promotion Organization

How the Daigas Group’s Environmental Management System Works
We are working hard to reduce the environmental impact of the group as a whole, based on the Daigas Group Environmental Activities Policy, with a focus on the city gas business. Toward that end we have set long-term CO2 emissions reduction targets for FY2031, as well as medium-term environmental action targets, the progress toward which is monitored to assure that the targets are reached.

Environmental action targets include: environmental management efficiency, reducing CO2 emissions, controlling waste output and promoting resource recycling, and controlling excavated soil (final disposal rate). Also, we annually calculate GHG emissions (which impact climate change) in group activities across the value chain, and use that information to promote efforts to reduce those emissions. Reporting and follow-up on these targets and the group’s performance are carried out by the Environment Subcommittee, CSR Committee, and CSR Promotion Council (Executive Board) using the PDCA cycle as outlined below.

How the Daigas Group’s Environmental Management System Works

How the Environmental Management System (EMS) Works
An environmental management system (EMS) is a mechanism for achieving continual improvement by following the PDCA cycle of Plan, Do, Check, and Act based on requirements that include assessing the organization and its condition, addressing the needs and expectations of stakeholders, and identifying risks and opportunities.

Environmental Management System (EMS)

Osaka Gas's ISO Certification Acquisition Status

Osaka Gas continues certification for company-wide integrated ISO 14001

External audit meeting for renewal of ISO 14001 certification

External audit meeting for renewal of ISO 14001
certification

Certificate of Registration for ISO14001

Certificate of Registration for ISO14001

In FY1998, business units of Osaka Gas started efforts to acquire certification for ISO 14001, an international environmental management system (EMS).

As a result, the entire company was covered by seven EMSs by FY2006. From FY2007, we started integration of all the EMSs across the company to enhance company-wide environmental management. Osaka Gas obtained integrated ISO 14001 certification in December 2007. And since 2009, we have conducted ISO renewal audits every three years and continue to receive accreditation, even making adjustments to satisfy requirements from a 2015 revision of the standard.

Based on this system, in FY2019 we undertook “Spiral Up” continual improvement efforts, such as strengthening compliance with environmental laws and ordinances, defining beneficial environmental activity items, and improving efficiency in administering the system. We also conducted an integrated company-wide internal audit and inspected/revamped our activities.

In August and September, we underwent a periodic review by the Japan Gas Appliances Inspection Association that determined there were no incidents of non-compliance.

Business unit Date of acquisition
Manufacturing Business Unit*1 October 1997
Engineering Department (Construction sector)*1 March 2001
Head Office Building September 2001
Energy Technology Laboratories *2 July 2002
Pipeline Business Unit May 2005
Commercial & Industrial Energy Business Unit February 2006
Residential Energy Business Unit March 2006
Integrated certification accredited December 2007
Integrated certification renewal audit October 2009
Integrated certification renewal audit (Second) October 2012
Integrated certification renewal audit (Third) October 2015

*1 Current LNG, Power and Engineering Business Unit

*2 Currently the Network Company

Efforts for Environmental Awareness Raising

Implementation of general training and e-learning

E-learning screen

E-learning screen

As part of the Daigas Group's ISO 14001 efforts, we have been conducting an “ISO Environmental Education Course” via e-learning and offering tier- and organization-specific group training. Employees are being instructed in the basic environmental knowledge that they should all possess, the Group's environmental policies and targets, the Group's specific approaches, and other topics via e-learning, while in group training they are being educated in activities designed to improve environmental awareness.

Status of EMSs Implementation in Affiliated Companies

All affiliates in Japan completed EMS building and certification

As a general, all affiliates in Japan have constructed and operate an EMS, and these efforts are based on the group common rules “Environmental Management Rules.”

The EMSs introduced by Osaka Gas affiliate companies include ISO 14001 and an EMS based on Japan’s Ministry of the Environment Eco Action 21 Guidelines, as well as on the “Daigas Group Environmental Management System (OGEMS),” a voluntary EMS that functions in a similar way to Eco Action 21.

(As of April 1, 2019)

EMS Standards under which Daigas Group Companies (55 companies) are Certified

Standard Features Total
ISO 14001 An international EMS standard set by the ISO (International Organization for Standardization). The aim of the standard is to continuously improve the level of environmental management through the PDCA cycle of Plan, Do, Check, and Act. 10
Eco Action 21 A standard for EMSs based on the Eco Action 21 Guidelines of Japan's Ministry of the Environment. An integration of EMSs, environmental performance evaluation, and environmental reporting, Eco Action 21 makes it possible for even SMEs to voluntarily carry out aggressive environmental efforts and to make and publicly release environmental activity reports on the results of these efforts. 1
Kyoto Environmental Management System Standard Standard aimed mainly at SMEs, established by the Kyoto Local Agenda 21 Forum, which is made up of the municipal government, businesses, and citizens. The content is expressed in simple language and achieving the standards is a straightforward, two-step process. 1
Daigas Group Environmental Management System (OGEMS) Based on Eco Action 21, this standard was established by Osaka Gas in 2005 for its affiliated companies. The secretariat is Osaka Gas's Environment Department, and it carries out all procedures from consultation on system introduction to certification. 46
Total number acquired* 58
* Total number acquired
Osaka Gas Liquid, Cryo-Air and Osaka Gas Chemicals have developed ISO 14001 and OGEMS.

(As of April 1, 2019)

Status of EMS Implementation (Osaka Gas, affiliated companies)

EMS Certification acquired Percentage of
Osaka Gas and
consolidated
subsidiaries
(55 companies*1)
certified
(on sales basis)*2
ISO 14001 (11 companies) Osaka Gas Co., Ltd., Senboku Natural Gas Power Generation, Osaka Gas Renotech Co., Ltd., Enetec Kyoto Co., Ltd., Enetec Osaka Co., Ltd., Cold Air Products Co., Ltd., Cryo-Air Co., Ltd., Osaka Gas Chemicals Co., Ltd., Minabe Chemical Industries Ltd., Mizusawa Industrial Chemicals, Ltd., Osaka Gas Liquid Co., Ltd. 77%
Eco Action 21 (1 companies) Osaka Gas Business Create Co., Ltd. 1%
KES (1 companies) KRI 1%
Daigas Group Environmental Management System (46 companies) Osaka Gas Summit Resources Co., Ltd., Osaka Gas International Transport Inc., Gas and Power Co., Ltd., Nakayama Joint Power Generation Co., Ltd., Nakayama Nagoya Joint Power Generation Co., Ltd., Hirogawa Myojinyama Wind Farm Co., Hayama Wind Farm, Yura Wind Farm, Hizen Wind Farm, Hirao Wind Farm, Inami Wind Farm, Osaka Gas Liquid, Co., Ltd., Cryo-Air Co., Ltd., Kinpai Co., Ltd., Living Maintenance Service Hokuto Co., Ltd., Living Maintenance Service Osaka Co., Ltd., Osaka Gas Cooking School Co., Ltd., Create Kansai Co., Ltd., Osaka Gas Customer Relations Co., Ltd., Aqua Brain Co., Ltd., Osaka Gas Housing & Equipment Co., Ltd., Osaka Gas Security Service Co., Kansai Business Information Inc., OGCTS Co., Ltd., Rokko Island Energy Service Co., Ltd., Ashiyahama Energy Service Co., Ltd., Nabari Kintetsu Gas Co., Ltd., Toyooka Energy Co., Ltd., Shingu Gas Ltd., OG Sports Co., Ltd., Osaka Gas Autoservice Co., Ltd., Osaka Gas Finance Co., Ltd., Active Life Inc., Osaka Gas Engineering Co., Ltd., Kinki Carbonic Co., Ltd., Gas Net Co., Ltd., Osaka Gas Urban Development Co., Ltd., Osaka Gas Facilities Corporation, Kyoto Research Park, OGIS-RI Co., Ltd., Sakura Information Systems Co., Ltd., Ube Information Systems Inc., System Answer Inc., SIS Techno-Service Co., Ltd., JOE Corp., Ltd., Osaka Gas Chemicals Co., Ltd. 22%
*1 Consolidated subsidiaries (55 companies)
Of 150 Osaka Gas consolidated subsidiaries, 55 companies are subject to the calculation of greenhouse gas emissions.
Those housed in office buildings as tenants and whose environmental data are difficult to grasp and whose environmental effects are minimal are not subject to such calculation. Also excluded from the calculation are overseas companies whose environmental impacts are minimal.
*2 EMS adoption rate
A single company has adopted multiple EMSs, so the total is over 100%

CSR of Daigas Group

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Management and CSR of the Daigas Group
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The Daigas Group addresses social issues with its human resources and technical expertise
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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
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CSR Charter Ⅴ
Management Policy for Human Growth
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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
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Value Chain of the Daigas Group
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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
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Materiality
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Environmental Management
Environmental Management:
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