Third-Party Review / Third-Party Verification
The Daigas Group CSR Report underwent a thirdparty review by the Institute for Environmental Management Accounting (IEMA), including simple audits and recommendations. In the process of preparing its evaluation, the IEMA interviewed Tadashi Miyagawa, Executive Vice President / CSR Executive, and Megumu Tsuda, Head of CSR & Environment Dept., regarding CSR-related activities at the Daigas Group. 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.
- Q. Can you tell us about the selection of seven SDGs to contribute to?
- A. The Daigas Group has selected seven SDGs that can make use of its strengths of the energy business, and announced its contribution in our CSR Report issued in 2017. We have been accelerating our engagement centered on SDGs Target 13 “Specific measures for climate change.”
- Q. Can you tell us about your contributions to the SDGs for the year?
- A. In FY2019, there were several events that affected the Group’s actions, including a number of natural disasters, METI’s fifth Strategic Energy Plan and the 2018 United Nations Climate Change Conference (COP24).
In response to the Northern Osaka Prefecture Earthquake in June, thanks to teams coming from all over Japan on short notice to help in recovery efforts, gas supply was fully restored in just one week. We are currently working with the National Research Institute for Earth Science and Disaster Resilience (NIED) to share information on the earthquake and disaster response. Then there was a blackout caused by Typhoon 21 (Jebi) in September, at which time our cogeneration system —designed to operate without power supplied from the grid—maintained operational continuity. These examples of disaster response and early recovery are activities that fall under SDG Goal 11—making cities resilient and sustainable.
We are working hard to develop renewable energy, which is positioned as a key energy source in Japan’s Strategic Energy Plan. By promoting wider use of natural gas we are contributing to SDG Goal 7 “Universal access to clean energy,” as well as SDG Goal 13 “Taking urgent action on climate change,” a topic discussed at COP24.
- Q. What is your vision for the future of the company?
- A. To contribute to Goal 13 of the SDGs, the Long-Term Management Vision established in FY2018 sets the target of reducing CO2 emissions by a total of 70 million tons by FY2031, in cooperation with customers. As we further analyze the risks and opportunities associated with climate change over the long term, it will be vital to draw up multiple scenarios that can respond to changes in the business environment.
- Q. What efforts are you taking toward renewable energy?
- A. We doubled our initial target for developing renewable energy sources, now set at 1 million kW in FY2031, and including projects under construction, we are already at 600,000 kW, so we are well on our way to achieving that target. We also established the Green Power Fuel Corporation in March 2019 to carry out procurement and sales of domestically grown woody biomass for biomass power plants.
- Q. What are your thoughts on stakeholder engagement?
- A. While maintaining an awareness of the impacts our business activities can have on all of our stakeholders—our customers, employees, partners, and shareholders and investors—the Group values active dialogue to be able to develop mutual understanding and acceptance in the search for better solutions.
- Q. What are some specific examples of that engagement with stakeholders?
- A. Well, with regard to business partners and service chains, we believe that by cooperating with our CSR questionnaire to confirm product safety and labor conditions, we can improve the level of CSR activities throughout the Group’s value chain .
As for employees, we are actively encouraging programs where potential young employees can share ideas and create new businesses in order to further enhance the emergence (independence) of employees.
In May 2019, we also expressed our support for the TCFD Recommendations in disclosing information on climate change. Going forward, we aim to generate new value through activities that engage with a range of stakeholders.
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.
Daigas Group CSR Report 2019 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.
The scope of our assurance work was limited to assurance over the following information included within the Daigas Group CSR Report 2019 (the ‘Report’) or the Osaka Gas corporate website (the ‘Website’) for the period of April 1, 2018 through March 31, 2019 (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
- Gas sales by volume
- Amount of LNG handled
- FY2019 results to Environmental Action Targets
Note: The reporting boundaries for each data are defined by Osaka Gas.
The scope of our review work was limited to assurance over the following information included within the Daigas Group CSR Report 2019 (the ‘Report’) or the Osaka Gas corporate website (the ‘Website’) for the period of April 1, 2018 through March 31, 2019 (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.
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
|Scope 1||5,052||GHG emissions accounted and reported in line with the ‘GHG Protocol Corporate Accounting and Reporting Standard’ through business operations of Osaka Gas and its 56 consolidated subsidiaries|
|298*||GHG emissions through business operations of Osaka Gas and its 56 consolidated subsidiaries|
|Scope 3||29,459||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.
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.