Environmental Management

Aspects Determained as Materiality
  • Emissions

    305-5

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 in 2006, when we formulated the "Osaka Gas Group CSR Charter" (which was revised to the "Daigas Group Charter of Business Conduct" on April 2021), we included "Harmonizing with the Environment and Contributing to a Sustainable Society" as one of the main items and positioned it as an important item.
In 2006, in order to translate our philosophy into concrete actions, we established the "Environmental Activities Policy," which consists of three standards. In April 2021, we abolished the "Daigas Group Environmental Activities Policy" and revised the environmental items of the "Daigas Group Code of Business Conduct" and the "Daigas Group Environmental Policy".
In addition, 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).

We are stepping up environmental protection based on the “Daigas Group Charter of Business Conduct” and the “Daigas Group Code of Business Conduct”. 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. 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. On January 2021, we announced the "Daigas Group Carbon Neutral Vision" to further promote low-carbon and decarbonization.
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
ESG 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 group of which major business revolves in the Kansai Region, Daigas Group 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.

Daigas Group Environmental Policy

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

Daigas Group Environmental Policy

  • 1. As an integrated energy business operator, we strive to contribute to the environmental conservation through our business activities, based on the item, “II. Contributing to the sustainability of the environment and society” set out in the Daigas Group Charter of Business Conduct.
Daigas Group Charter of Business Conduct
  • II. Contributing to the sustainability of the environment and society

The Daigas Group addresses the environmental issues both at regional and global levels as a matter of paramount importance in its business centered on energy supply. In light of the impacts of its business activities on the environment, the Daigas Group strives to tackle climate change and other environmental issues, develop innovative technologies and promote their wider use, and support the advanced use of resources and materials.

  • 2. We strive to achieve the continual improvement of our environmental management system and the enhancement of our environmental performance through the assessment of the environmental impact of our businesses and the efforts to achieve our environmental objectives set out in accordance with the requirements of the environmental management system of each company in the Daigas Group.
  • 3. We pursue the reduction of environmental impacts, prevention of pollution, and conservation of biodiversity by focusing on the following scope.
  • ⅰ. Business activities

We aim to reduce the environmental impacts of our business activities by strengthening our environmental management system and promoting our internal activities for saving energy and natural resources.

  • ⅱ. Products and services

We offer natural gas, a low carbon fuel, as well as products and services that contribute to reducing environmental impacts. We strive to develop technologies and systems for environmental conservation, promote their wider use, and enhance the reuse of resources.

  • ⅲ. Geographical areas

In each country and region where we operate, we take an active part in environmental conservation efforts.

  • 4. We comply with the legal requirements for the environmental protection and other requirements to which we subscribe.

This Environmental Policy is communicated to all persons involved in the operation of the Daigas Group Environmental Management System, and is available to the public.

April 1, 2021
ESG 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 the ESG Council, composed of executives, that carries out CSR planning and reports on results of activities under the supervision of the president. Furthermore, the ESG Committee, led by the Executive in Charge of ESG Promotion (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 ESG 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 Executive in Charge of ESG Promotion 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 43 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 Structure
    System to Promote Environmental Management

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, reducingCO2emissions, 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, ESG Committee, and ESG Council (Executive Board) using the PDCA cycle as outlined in the chart.

  • 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.

How the Environmental Management System (EMS) Works

Osaka Gas's ISO Certification Acquisition Status

Osaka Gas continues certification for company-wide integrated ISO 14001

  • 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 FY2020 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.
  • 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

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 July 2002
Pipeline Business Unit *2 May 2005
Commercial & Industrial Energy Business Unit *3 February 2006
Residential Energy Business Unit *3 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
  • *3 Currently the Energy Solution Business Unit

Efforts for Environmental Awareness Raising

Implementation of general training and e-learning

  • 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.
  • E-learning screen

    E-learning screen

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.

■ EMS Standards under which Daigas Group Companies (43 companies) are Certified

(As of April 1, 2020)

Standard Features Total
ISO14001 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 CSR & Environment Department (shifted to the General Affairs Department in April 2020), which carries out all procedures, from consultation on system introduction to certification according to their actual conditions. 34
Total number acquired* 46
  • * Total number acquired
    Osaka Gas Liquid, Cryo-Air and Osaka Gas Chemicals have developed ISO 14001 and OGEMS.
■ Status of EMS Implementation (Osaka Gas, affiliated companies)

(As of April 1, 2020)

EMS Certification acquired EMS Certification acquired Percentage of Osaka Gas and consolidated subsidiaries (43 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. 79%
Eco Action 21
(1 company)
Osaka Gas Business Create Co., Ltd. 1%
KES (1 company) KRI 1%
Daigas Group Environmental Management System (34 companies) Osaka Gas Summit Resources Co., Ltd., Osaka Gas International Transport Inc., 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., 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., 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 Corporation., Ltd., Osaka Gas Chemicals Co., Ltd. 20%
  • *1 Consolidated subsidiaries (43 companies)
    All of the 43 companies have acquired either external EMS crtification or original EMS certification.
  • *2 EMS adoption rate
    Calculated based on the actual sales in FY2020. A single company has adopted multiple EMSs, so the total is over 100%.
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