Third-Party Review / Third-Party Verification

Third-Party Review

The Daigas Group CSR Report underwent a third-party review by the Institute for Environmental Management Accounting (IEMA), including simple audits and recommendations. In the process of preparing its evaluation, the IEMA interviewed the Head of ESG Promotion and Head of ESG Office regarding CSR-related activities at the Daigas Group.

Here, we report the content of discussions on the day of the interview,and present the written opinion of the IEMA.

In interviews conducted in July 2020, the IEMA asked about the following three points.

  • 1. The Daigas Group’s own evaluation of its results in terms of CSR indicators and materiality in FY2020
  • 2. Risks that the Daigas Group considers particularly important in regard to climate change issues, and the Daigas Group’s measures to counter these risks
  • 3. The value that the Daigas Group will be able to provide in future, in response to the change in values caused by the COVID-19 pandemic
Third-Party Review
  • Interview

    Interview

  • In response, for the first point, we explained our results in terms of CSR indicators and materiality indicators in FY2020, and reported the fact that we streamlined our former procurement policies and revised them in April 2020, in order to promote further supply chain management across the Daigas Group.

    For the second point, concerning climate change issues, we explained our awareness of the fact that there is a global need to reduce greenhouse gas (GHG) emissions and promote decarbonization in future, and the fact that it is a global societal issue to address increasing risks of natural disasters resulting from climate change. We also spoke about our progress on initiatives to contribute to reducing CO2 emissions,as set forth in the Long-term Management Vision 2030 and the Mediumterm Management Plan 2020.

    Regarding risks and opportunities related to climate change, we explained the information published on our CSR website, in addition to our measures to counter natural disasters, and the methanation technology that is a focus for the city gas industry. In response to our initiatives to tackle climate change, the IEMA provided comments on global trends in environmental issues, the measures required of energy business operators, and the expectations placed upon them. Following these comments, we held discussions that covered many different perspectives, including geopolitical issues faced by Japan’s energy markets. For the third question, we explained that we established an ESG Office in the Corporate Strategy Department, which is responsible for business strategy, when we conducted our organizational restructuring in April 2020, to ensure that the Daigas Group as a whole further implements ESG-conscious management that creates value and earn the trust of stakeholders. In addition, we spoke of our intention to conduct discussions with each business unit about the value that the Daigas Group can offer when formulating our next medium-term management plan, focusing on changes in the values held by our stakeholders, including customers, society, shareholders, and employees, in light of sense of values held by our customers, society, shareholders, employees, and other stakeholders, including the impact of the COVID-19 pandemic. In response to the Company’s explanations on each of these matters, the IEMA asked many questions and provided a large amount of advice, and as such, we were able to discuss issues that we should focus on in future. Based on the interview, the IEMA prepared and presented a report that summarized its overall evaluation and advice regarding the Daigas Group’s CSR efforts.

    For the third question, we explained that we established an ESG Office in the Corporate Strategy Department, which is responsible for business strategy, when we conducted our organizational restructuring in April 2020, to ensure that the Daigas Group as a whole further implements ESG-conscious management that creates value and earn the trust of stakeholders. In addition, we spoke of our intention to conduct discussions with each business department about the value that the Daigas Group can offer when formulating our next medium-term management plan, based on our view of changes in the sense of values held by our customers, society, shareholders, employees, and other stakeholders, including the impact of the COVID-19 pandemic.

    In response to the Company’s explanations on each of these matters, the IEMA asked many questions and provided a large amount of advice, and as such, we were able to discuss issues that we should focus on in future. Based on the interview, the IEMA prepared and presented a report that summarized its overall evaluation and advice regarding the Daigas Group’s CSR efforts.

■Evaluation and Opinion of CSR Management

Third-Party Verification

  • The environmental performance data of the Daigas Group included in this report underwent third-party verification by Bureau Veritas Japan Co., Ltd. The verification was conducted to check whether the data were reliable and accurate, and consistent with the purpose of the report.
  • Bureau Veritas Japan Co., Ltd.

Daigas Group CSR Report 2020 Independent Verification Report (Excerpt)

Bureau Veritas Japan Co., Ltd. (Bureau Veritas) has been engaged by Osaka Gas Co., Ltd. (Osaka Gas) to provide limited assurance and to conduct an external review over sustainability information selected by Osaka Gas. This Assurance Statement applies to the related information included within the scope of work described below.

Selected information
  • The scope of our assurance work was limited to assurance over the following information included within the Daigas Group CSR website for the period of April 1, 2019 through March 31, 2020 (the ‘Selected Information’):

     Environmental data selected by Osaka Gas which are related to the following items
    • ・Energy Consumption
    • ・Atmospheric Emissions
    • ・Water Withdrawal and Discharge
    • ・Chemical Substances
    • ・Waste
    • ・Gas Sales by Volume
    • ・Amount of LNG handled
    • ・FY2020 Results to Environmental Action Targets

     Note: The reporting boundaries for each data are defined by Osaka Gas.

  • Third-Party Verification

    Please click on the above image.
    (The PDF version of evaluation will open. (171KB))

The scope of our review work was limited to review over the following information included within the Daigas Group CSR website for the period of April 1, 2019 through March 31, 2020 (the‘Selected Information’):

  • ・The amount of contribution to CO2 emission reduction by Daigas Group (including contribution to reductions at customer sites and overseas)

 Note: The reporting boundaries and calculation methodologies are defined by Osaka Gas.

Assessment Standard

We performed our assurance work in accordance with International Standard on Assurance Engagements (ISAE) 3000 (Revised), Assurance Engagements Other than Audits or Reviews of Historical Financial Information (Effective for assurance reports dated on or after December 15, 2015) issued by the International Auditing and Assurance Standards Board and ISO14064-3 (2006): Greenhouse gases—Part 3: Specification with guidance for the validation and verification of greenhouse gas assertions.
We performed our review work by using Bureau Veritas’ standard procedures for external review of sustainability information.

Verified greenhouse gas emissions

We performed our verification work on greenhouse gas emissions data in accordance with the requirements of ISO14064-3 (2006) .
Verified data in greenhouse gas assertion made by Osaka Gas are as follows.

Greenhouse gas emissions
[kt-CO2e]
Boundary
Scope 1 4,660 GHG emissions accounted and reported in line with the ‘GHG Protocol Corporate Accounting and Reporting Standard’ through business operations of Osaka Gas and its 58 consolidated subsidiaries
Scope 2 216
(location-based)
194
(market-based)
303* GHG emissions through business operations of Osaka Gas and its 58 consolidated subsidiaries.
Scope 3 27,944 Categories 1, 2, 3, 4, 5, 6, 7, 9, 11, 12, 13 and 14 of Scope 3 GHG emissions accounted and reported in line with the ‘GHG Protocol Corporate Value Chain (Scope 3) Accounting and Reporting Standard’ within the boundaries defined by Osaka Gas for each category
  • * This figure shows CO2 emissions calculated using the average electricity emission factor of thermal power plants.
Conclusion

On the basis of our methodology and the activities described above:

  • ・Nothing has come to our attention to indicate that the Selected Information has not been properly prepared, in all material respects, in accordance with the Reporting Criteria;
  • ・It is our opinion that Osaka Gas has established appropriate systems for the collection, aggregation and analysis of quantitative data within the scope of our work.
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