Tokyogasgroup csr report

Corporate Governance

Audit Structure

Mutual Collaboration among Audit & Supervisory Board Members' Audit, Internal Audit, and Independent Auditors' Audit

In order to enhance the effectiveness of so-called three-way auditing (audit & supervisory board members' audit, internal audit, and independent auditors' audit) as well as to improve the quality of audits as a whole, Tokyo Gas makes efforts to strengthen close mutual collaboration between each audit in areas such as the reporting of audit plans and results, as well as exchanges of opinions and witnessing of audits, as shown in the diagram below:

Three-way Auditing


Three-way Auditing
DFF Inc., Corporate Social Responsibility Sect, General Administration Dept., Corporate Planning Dept., Resources & Global Business Division, Energy Solution Div, Power Buisiness Dept., Pipeline Network Division, IT Division, Residential Sales Div., Fundamental Technology Dept., Energy Solution Div, Environmental Affairs Dept., Purchasing Dept. , Health Insurance & Employees' Welfare Sect., Personnel Dept., Internal Audit Dept., Audit & Supervisory Board Member's Office, Compliance Dept., Regional Development Div., Finance Dept, TGES, TOKYO GAS COMMUNICATIONS, INC.

Audit & Supervisory Board Members and the Audit & Supervisory Board

The audit & supervisory board of our company consists of 5 members, including 3 outside audit & supervisory board members, and the audit & supervisory board members' office independent from business execution has been established for support with 5 dedicated staff members. In line with the Corporate Auditor's Audit Standards, the audit & supervisory board members attend the meetings of the Board of Directors, the Corporate Executive Meeting, and other important meetings. They also state their opinions relating to legality and other perspectives when necessary, conduct research into the state of operations at the head office, major business offices, subsidiaries and affiliates, and hold discussions with top management to exchange opinions on a regular or ad-hoc basis. The audit & supervisory board members cooperate closely with the Internal Audit Department and independent auditors and strictly audit the execution of duties by the directors to enhance and strengthen high-quality corporate governance systems.

DFF Inc., Corporate Social Responsibility Sect, General Administration Dept., Corporate Planning Dept., Resources & Global Business Division, Energy Solution Div, Power Buisiness Dept., Pipeline Network Division, IT Division, Residential Sales Div., Fundamental Technology Dept., Energy Solution Div, Environmental Affairs Dept., Purchasing Dept. , Health Insurance & Employees' Welfare Sect., Personnel Dept., Internal Audit Dept., Audit & Supervisory Board Member's Office, Compliance Dept., Regional Development Div., Finance Dept, TGES, TOKYO GAS COMMUNICATIONS, INC.

Internal Audit Department

Our company has established the Internal Audit Department as an internal audit body (with 38 staff members assigned as of April 1, 2017, including those in charge of operations in response to the Internal Control Reporting System) with a structure that can effectively implement specialized audits from the perspectives of accounting, operations, compliance, information systems, and risk management, among others.

DFF Inc., Corporate Social Responsibility Sect, General Administration Dept., Corporate Planning Dept., Resources & Global Business Division, Energy Solution Div, Power Buisiness Dept., Pipeline Network Division, IT Division, Residential Sales Div., Fundamental Technology Dept., Energy Solution Div, Environmental Affairs Dept., Purchasing Dept. , Health Insurance & Employees' Welfare Sect., Personnel Dept., Internal Audit Dept., Audit & Supervisory Board Member's Office, Compliance Dept., Regional Development Div., Finance Dept, TGES, TOKYO GAS COMMUNICATIONS, INC.

Procedures and Status of Internal Audits

Internal audits are made of Tokyo Gas and its subsidiaries. The results of these audits are reported not only to the President, Corporate Executive Meeting, Board of Directors, and Audit & Supervisory Board, but also to the managers of all audited offices. Offices are required to submit their responses to recommendations arising from these audits, and progress on implementing these responses is followed up and reported to the Corporate Executive Meeting the following year. In fiscal 2016, four divisions of Tokyo Gas and seven subsidiaries were audited, two divisions and eight subsidiaries were given follow-up audits, and issue-specific audits were made of the state of internal control at overseas subsidiaries.
DFF Inc., Corporate Social Responsibility Sect, General Administration Dept., Corporate Planning Dept., Resources & Global Business Division, Energy Solution Div, Power Buisiness Dept., Pipeline Network Division, IT Division, Residential Sales Div., Fundamental Technology Dept., Energy Solution Div, Environmental Affairs Dept., Purchasing Dept. , Health Insurance & Employees' Welfare Sect., Personnel Dept., Internal Audit Dept., Audit & Supervisory Board Member's Office, Compliance Dept., Regional Development Div., Finance Dept, TGES, TOKYO GAS COMMUNICATIONS, INC.

Collaboration on Audits within the Group

In the Tokyo Gas Group, audit & supervisory board members, audit & supervisory board members of subsidiaries and affiliates, and the Internal Audit Department periodically exchange opinions. We have established a system that ensures efficient and effective audit activities across the Group by coordinating closely with each other through liaison meetings. In fiscal 2016, we held 4 liaison meetings .

DFF Inc., Corporate Social Responsibility Sect, General Administration Dept., Corporate Planning Dept., Resources & Global Business Division, Energy Solution Div, Power Buisiness Dept., Pipeline Network Division, IT Division, Residential Sales Div., Fundamental Technology Dept., Energy Solution Div, Environmental Affairs Dept., Purchasing Dept. , Health Insurance & Employees' Welfare Sect., Personnel Dept., Internal Audit Dept., Audit & Supervisory Board Member's Office, Compliance Dept., Regional Development Div., Finance Dept, TGES, TOKYO GAS COMMUNICATIONS, INC.