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Actions on Materiality

Customer Health and Safety (FY2019 Report)

Materiality Indicators

Management Approach

Reasons why materiality is important for our business.

The Daigas Group puts the highest priority on securing safety of gas supply and facilities as an energy business operator which supplies city gas to 5.579 million customers. Therefore, we consider it important that we make efforts to enhance the safety level and formulate a structure to respond possible accidents and disasters.

Boundary

Inside of the Group

Management systems and its performance

Indicator (GRI Standards: 416-1)

Percentage of city gas for which health and safety impacts are assessed for improvement against the total amount of city gas provided by Osaka Gas

Commitment

Osaka Gas is committed to ensuring the safety of city gas, our primary product, its secure supply, and the safety of our gas facilities—all by adhering to our “Gas Supply Clause” and “Security Rules” according to the terms of the Gas Business Law.

(International and domestic standards)
  • Gas Business Law
(In-house policy and standards)
  • Daigas Group Code of Conduct
  • Gas Supply Clause Security Rules
Responsibilities

The Daigas Group has established a system to ensure the safety of the city gas supply and gas appliances encompassing all facets of the Group’s city gas value chain — processing, supply, sales, and consumption. The Head of Safety and the individuals heading the safety operations of each business unit supervise safety and security matters concerning their respective business units and other business units.

In addition, the Executive Safety Council, comprising the Head of Safety; the individuals heading the safety operations of each business unit; and the chiefs of the relevant departments, convene safety and security meetings five times annually to plan safety initiatives and assess the achievements made in the relevant term. In line with the annual plan, each business unit systematically promotes initiatives to ensure security and improve safety.

Organizational Structure Aimed at Promoting Security and Safety

Organizational Structure Aimed at Promoting Security and Safety
Performance

In FY2019, all procedures were conducted based on guidelines in accordance with laws and regulations as well as in-house rules for processes such as quality control of gas in LNG terminals, safety inspection of gas pipelines and supply facilities, and safety inspection of gas appliances with customer consent.

Specific actions taken regarding materiality

To ensure our customers receive our energy services without worry, we are focused on maintaining the high quality of the city gas we supply while ensuring the stability of our gas supply and the safety of gas-processing and supply facilities.

Process of the Gas Business

Process of the Gas Business
Ensuring the quality and safety of city gas

Every day, the city gas plant monitors the quality of the city gas to ensure conformity with the standards set by Osaka Gas according to legal and regulatory requirements. The capacity of the gas holders and gas supply pressure are monitored and well managed in real time.

Inspection of gas pipelines

Gas supply facilities including gas pipes and pressure regulators are inspected to ensure their safety. The frequency and content of such inspections are set under in-house Security Rules.

Securing safety at customers' sites

Facilitate systems to response to reports and prepare resources for dispatching in case of accidents and disasters 24 hours a day, 365 days a year.

In accordance with laws, inspection of gas appliances for gas leaks, gas water heaters for air supply and exhaust function at customers' sites at least once every four years (at least once a year for some customers) were conducted. The visits to the customers were exploited as the opportunity for recommending installation of alarms for gas leaks for residential use and ventilation for commercial use, of which penetration rate were 52.0% and 98.7%, respectively.

We are conducting replacement of old gas pipes with new ones that are resistant to earthquakes and corrosion. We are actively proposing the renewal of corrosion-prone old gas pipes by contacting affected customers. In FY2016, we implemented measures to deal with old gas pipes made of gray cast iron, which had been required to be replaced under government instruction — far ahead of the initial schedule of FY2021. We are continuing to take measures against old gas pipes made of gray cast iron (gas pipes requiring maintenance and management) and corrosion-prone gas pipes.

Disaster preparedness

After our experience with the Great Hanshin-Awaji Earthquake in 1995, we implemented a variety of earthquake countermeasures, adding new measures following the 2018 Northern Osaka Prefecture Earthquake.

Those efforts include the enhancement of safety measures in LNG manufacturing facilities, the replacement of old gas pipes with polyethylene (PE) pipes (approx. 16,400 km installed) that offer excellent durability and seismic resistance, and the installation of intelligent meters that detect earthquake vibrations and shut off the gas supply (approximately 99.9% of all meters and 100% of residential meters). As an emergency measure, we are constructing a system for shutting off the gas supply to prevent secondary disasters. Automatic seismic detection/remote shutoff devices are being installed (now in approx. 3,000 locations) that automatically shut off the low-pressure gas supply in the supply area when a large earthquake is detected.

Since the March 2011 earthquake and tsunami that struck northeastern Japan, we have been redoubling our tsunami countermeasures. Standby generators installed at LNG terminals have been reinforced, the watertightness* of the structures housing equipment at the terminals has been improved, and some of the equipment has been moved to higher locations to avoid a tsunami. To prevent secondary damage and facilitate the early recovery of gas supply, one system being introduced is a damage-reduction block system that controls the gas supply of medium- and low-pressure gas pipes installed in coastal areas. In addition to these physical measures in the event of a tsunami, other steps are being taken, such as holding Company-wide Comprehensive Disaster Response Drills and providing emergency training. We expect these disaster-prevention efforts to establish a robust and resilient value chain in city gas service.
(Figures current as of March 31, 2019.)

* Watertightness
Resistance to flooding from a tsunami

Security Measures Prepared for a Major Earthquake

Security Measures Prepared for a Major Earthquake Status of implementation (as of the end of March 2019)
(1) Reinforcement of an information collection function Installation of seismograph Installed in all areas (263 locations)
Introduction of an earthquake damage prediction system Installed at the Central Control Rooms (Head Office and Kyoto sub-center) and in five regional business locations
(2) Building of a supply shutoff system Subdivision of supply blocks Divided into medium-sized blocks (85) and small blocks (164)
Introduction of supply shutoff devices Remotely controlled supply shutoff device: 3,577 locations
Automatic supply shutoff device that is triggered in the event of a tremor: 3,011 locations
(3) Others Efforts to diffuse polyethylene (PE) pipes Polyethylene (PE) pipes to be used for all new low-pressure pipelines, in principle
Total extended length of PE pipes: about 16,400 km
Diffusion of an intelligent meter that detects earthquake vibrations Installation completed for household-use devices; the diffusion rate of all devices, including business-use devices, stands at about 99.9%
Mechanism to back up important online systems Establishment of a backup center

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
Reporting

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
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
Index
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
Index
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
Index
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
Index
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
Index
CSR Indicator
Employment
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
Reporting
CSR Report Policy
Commendation from the Outside
Third-Party Review / Third-Party Verification
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Course Taken Since the Company's Foundation
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