Supplier Assessment (FY2020 Report)

Materiality Indicators

Management Approach

Why the topic is material

Our broad-based city gas value chain is built on the cooperation of various business partners. Fulfilling our social responsibilities by working with our suppliers in the value chain builds relationships of trust with our stakeholders and furthers the development of the entire value chain.

Boundary

Inside and Outside of the Group

Management systems and performance

Indicator (GRI Standards: 308-1, 414-1)

Percentage of new suppliers that have been selected using criteria regarding environment, social impact, human rights and labor practices

Commitment

Osaka Gas is committed to fulfilling its social responsibility in close cooperation with business partners in line with the Daigas Group Code of Conduct, revised in accordance with the United Nations Global Compact.

The Daigas Group has formulated the Daigas Group Procurement Policy and informed the Group’s suppliers of it, together with the Daigas Group Procurement Policy for Suppliers.

(International and domestic standards)

・U.N. Global Compact

(In-house policy and standards)

・Daigas Group Procurement Policy
・Daigas Group Procurement Policy for Suppliers

Responsibilities

Each organization in charge of procuring particular materials is to fulfill its responsibility in accordance with the procurement-related policies and guidelines set by Osaka Gas.

Performance

A total of 37 suppliers began new business transactions with Osaka Gas in FY2020. In the year, no business deals were barred from being started due to violations of standards set in the fields of environmental and social impacts, human rights and labor practices.

Specific actions taken regarding materiality

Measures in material procurement

We have a system for explaining to our suppliers about the Purchasing Policy and the CSR-based Purchasing Guidelines (revised into the Daigas Group Procurement Policy and the Daigas Group Procurement Policy for Suppliers in April 2020) and confirming the status of their CSR commitment before implementing the procedure for business transactions and beginning actual transactions with them.

In FY2020, a survey was conducted on 173 major suppliers to check their CSR efforts. Furthermore, when the suppliers conduct business transactions with Osaka Gas, they are asked to observe “Green Purchasing Guidelines” set by Osaka Gas, attached to the specifications for the business transactions.

Revision to the “Green Partner Initiative”

The “Green Partner Initiative” adopted by Osaka Gas is designed to promote environmental conservation by suppliers of gas pipeline materials. Under the system, suppliers that are recognized as being active in environmental conservation activities such as the building of an Environmental Management System (EMS) will be registered as Partners. Osaka Gas initially focused on suppliers of gas pipelines for its “Green Partner Initiative.” In FY2016, the Company revised the initiative to cover companies other than suppliers of gas pipeline materials as well. As of the end of FY2020, 109 suppliers were registered as Partners.

“CSR survey” of gas appliance makers conducted to promote information sharing on social and environmental issues to be tackled by companies

Osaka Gas conducted a CSR survey of 31 gas appliance makers to enhance their awareness of the importance of ensuring the safe use of gas appliances by end customers as well as taking into account social and environmental aspects in doing business.

The survey was designed to assess the status of their CSR efforts through a total of 59 items of the eight themes of compliance, human rights, labor, occupational health and safety, product safety and quality, environmental conservation, ethics and prevention of corruption, and policy enforcement system based on the CSR Procurement Guidelines on Gas Appliances and Other Equipment (revised into the Daigas Group Procurement Policy for Suppliers in April 2020). In addition, Osaka Gas conducted a CSR survey of 245 companies, including service companies, and engineering firms, to which the Company has entrusted some business duties. Of the total, 143 gave answers.

We will continue to fulfill our social responsibility in partnership with our suppliers and aim to promote mutual development for the entire value chain.

■CSR Survey Conducted in FY2020
Companies covered by the survey Number of companies surveyed Number of companies which replied Other efforts
Main suppliers 173 173 Green Partner Initiative
Gas appliance makers
(conducted in May 2019)
31 31
Service companies, engineering firms
(conducted in July 2019)
245 143
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