Tokyogasgroup csr report

CSR at the Tokyo Gas Group

Stakeholder Engagement

Stakeholder Engagement

The Tokyo Gas Group pursues diverse forms of engagement based on its Stakeholder Engagement Policy. Moreover, we receive opinions from our wide-ranging stakeholders and actively adopt valuable suggestions for our business.

Stakeholder Engagement Policy

Basic Policy
The Tokyo Gas Group’s business brings it into contact with a wide range of stakeholders. Guided by our Corporate Action Philosophy and Code of Conduct, all Group executives and employees have sought to develop good relationships with stakeholders and work together with society toward achieving sustainable growth.
Purpose of Engagement
In conducting our operations, we must understand stakeholder expectations for the Tokyo Gas Group and how they evaluate Group performance as well as our own responsibility for stakeholders. That knowledge must then be applied to decision-making and business operations to maximize value creation and minimize negative impacts. We also emphasize developing sound relationships and partnerships with stakeholders and enhancing the transparency of our business activities. We engage with our stakeholders through two-way communication to achieve these goals.
Identifying Our Stakeholders
Our stakeholders are individuals and organizations who are interested in the decision-making and business activities of the Tokyo Gas Group. To further increase the significance of engagement with stakeholders, we associate them with the following categories: (1) those who could be directly or indirectly impacted by our operations, products or services, or who could impact our operations; (2) those with whom we maintain an economic, social or environmental responsibility; and (3) those who can provide a diverse perspective on our operations, products or services.
Methods of Engagement

The division or site that is most closely related to stakeholders serves as the contact point and takes responsibility for establishing two-way communication with them. Toward making further improvements, the results of engagement are shared within the relevant division, as well as with the Corporate Communications Promotion Committee as necessary. Information is disclosed through such means as our website and CSR reports to maintain our PDCA cycle. Also, we raise employee awareness of stakeholder engagement through training and other activities.

Expectations and Requests
• Stable supply of energy
• Ensuring safety and quality of energy and products
• Provision of appropriate information on products and services

• Provision of information on environmental protection and environmentally friendly products and services

• Improvement of customer satisfaction
Tokyo Gas Group’s Responses Engagement and Communication Efforts
• Receipt of applications, feedback and inquiries
• Improvements based on feedback
• Periodic safety inspections of gas equipment
• Meter readings
• Gas appliance repair

• Local service outlets (Tokyo Gas LIFEVAL, Enesta, Enefit)

• Customer Center (phone and email)
• Customer feedback cards
• Customer satisfaction surveys

• Provision of information and promotion of understanding concerning measures to ensure stability of city gas supply and prevent disasters

• Tours of LNG terminals and disaster prevention facilities

• Provision of information on energy, the environment, household facilities, appliances, etc.

• Provision of information and promotion of understanding regarding the Group’s environmental activities

• Provision of opportunities to experience environmental activities

• Proposal of comfortable home and lifestyle solutions

• Offering of cooking classes
• Gas Science Museum
• Gas Museum

• Shinjuku Showroom and Yokohama Showroom

• Cooking studio Kitchen Lands
• Gas exhibitions
• Events and seminars

• Provision of information on energy, facilities, appliances, and services

• Provision of tips for everyday life on cooking, conserving energy and saving money, etc.

• Tokyo Gas website
• Email newsletters
• Facebook
Shareholders and Investors
Expectations and Requests
• Maintenance and improvement of corporate value
• Fair distribution of returns to shareholders
• Timely and appropriate information disclosure
Tokyo Gas Group’s Responses Engagement and Communication Efforts

• Disclosure of information on performance and finances

• Explanation of the state of Group activities and plans

• General shareholder’s meetings
• Financial results briefings
• Briefings for individual investors

• One-on-one meetings with institutional investors

• Facility tours for individual shareholders
• Annual Report and Investors’ Guide
• Newsletter for shareholders

• Disclosure of investor relations information on the Tokyo Gas website

Local Communities
Expectations and Requests
• Contribution to solving social issues in individual countries and regions
• Support for educating the next generation
Tokyo Gas Group’s Responses Engagement and Communication Efforts

• Provision of information and awareness-raising concerning the Group’s disaster prevention activities

• Provision of information contributing to safety and peace of mind in everyday life

• Monitoring of views/demand and incorporation into activities

• Local activities
• Support for para sports

• Provision of opportunities for the active engagement in sports through soccer coaching, tournaments, etc.

• Activities as an Official Partner of the Japanese Para-Sports Association

• Junior soccer coaching sessions

• Provision of information and awareness-raising on disaster prevention

• Disaster prevention events cohosted with NPOs

• Support for environmental protection activities

• Support for the environmental and the social contribution activity: Mori Sato Umi Tsunagu (Connecting Forests, Villages and the Ocean) Project

• Provision of information, education and opportunities for directly experiencing energy and the environment

• Support for school education (teaching, teacher training, and provision of information via out-of-school learning activities, educational materials and an e-learning site)

• Donguri (acorn) outdoors environmental education project

• Hands-on HIIKU fire education program for the next generation

• Volunteer activities by Group employees and their families

• Support for regions affected by the Great East Japan Earthquake

• Collection and donation of used stamps, cards and spoiled postcards

• Support for the Olympic and Paralympic Games Tokyo 2020

• Support activities as an Official Partner (Gas & Gas Utility Services category) of the Olympic and Paralympic Games Tokyo 2020

Government Agencies and Local Governments
Expectations and Requests
• Tax payments
• Compliance with laws and regulations
• Cooperation in public policy and programs to solve social issues
Tokyo Gas Group’s Responses Engagement and Communication Efforts

• Participation in urban development through our main line of business

• Development of smart towns in accordance with government plans

• Urban revitalization and housing complex regeneration

• Development of smart energy networks through redevelopment projects

• Promotion of disaster prevention activities

• Disaster prevention events organized by local governments

• Provision of information to resolve social issues and promote policy implementation

• Participation in central and local government committees and workshops

• Seminars on energy, the environment and community development

• Membership of environmental councils and other bodies

Business Partners
Expectations and Requests
• Fair and equitable business transactions
• Practice of CSR procurement
• Development of better partnerships and information sharing
Tokyo Gas Group’s Responses Engagement and Communication Efforts

• Provision of fair and equitable business opportunities through disclosure of standards, policies, etc.

• Online publication of Principles and Standards of purchasing practice and Purchasing Guidelines for Suppliers

• Briefings for business partners
• Monitoring status of CSR practice

• Surveys of CSR activities by business partners 

• Dialogue and consultation with business partners

• Improvement of quality and appeal of products in collaboration with business partners

• Recognition of business partners at the Business Partner Appreciation Awards

• Provision of events and opportunities to promote understanding of our operations

• Organization of facility tours for business partners

• Consultations to ensure fair business relations

• Consultations with suppliers of LNG and other supplies and confirmation of transaction details

Universities and Research Institutions
Expectations and Requests

• Engagement in solving social issues and contributing to better lifestyles and community development

Tokyo Gas Group’s Responses Engagement and Communication Efforts

• Surveys and research to address challenges faced by society and contribute to better lives and community development through our business activities

• Joint research contributing to safety, meter reading, safety services, etc.

• Joint research contributing to environmental protection, disaster response, prevention of health hazards and the revitalization of regional economies

• Joint research contributing to energy conservation and health

• Joint research contributing to better lives in a super-aging society

Group Employees
Expectations and Requests
• Creation of a comfortable work environment
• Promotion of diversity
• Development of human resources
• Occupational safety and health
• Provision of information and awareness-raising on environmental protection
Tokyo Gas Group’s Responses Engagement and Communication Efforts

• Promotion of opportunities for diverse human resources

• Development of the Overarching Commitment to Diversity and Basic Policy Regarding Promotion of Diversity

• Seminars and lectures on promoting diversity

• Introduction of a home working system

• Sharing of information and promotion of understanding within the Group

• Communication of messages from the president

• Plenary meetings and briefing sessions to report on conditions at Group companies

• Workplace communication activities
• Group newsletter and intranet
• Development of employee skills
• Counseling for career planning
• Regular interviews with supervisors
• Various training

• Handling of consultations on compliance, human rights, etc., within the Group

• Monitoring of employee attitudes
• Consultation desks
• Employee opinion surveys

• Provision of information and awareness-raising on occupational safety and health

• Actions for mental health and prevention of lifestyle-related diseases

• Meetings and training on safety and health
• Actions to maintain and improve health

• Sharing of information on Group environmental activities

• Provision of information and awareness-raising on environmental protection

• Group environmental contribution award system

• Training, study tours and seminars for Group employees

• Development of good labor-management relations

• Labor-management dialogue and consultation

Contact Points for Stakeholders

Shareholders and investors Investor Relations
Local communities Inquiries: Personal (residential) customers
Tokyo Gas Customer Center
Local service outlets
Tokyo Gas showrooms
Fax service (for customers with hearing or speech impairments)
Online inquiries
Government agencies Department responsible for the field in question
Business partners Purchasing Department service desk
Employees Tokyo Gas Labor Union, consultation desks
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.

Stakeholder Dialogue

We aim to be a corporate group that achieves continuous growth by diligently fulfilling our social responsibilities. To realize this, we will communicate and engage in dialogue with our stakeholders, listening to their opinions and requests regarding the overall business activities of the Tokyo Gas Group, and relaying what we learn into improving our daily business activities.
We received diverse comments during the year on various aspects of our daily business from people in a wide range of social positions. We will continue with our efforts to incorporate the voices of our stakeholders into our business activities to the greatest extent possible.

Stakeholder Dialogue 2016

Our responsibilities are broadening as we expand our operations as a total energy company and pursue regional expansion on a global scale.

Practicing good supply chain management in cooperation with our business partners is consequently becoming ever more important as a means not only of managing quality and prices, but also of addressing issues in such domains as the environment, human rights, and working conditions.

For our key stakeholder dialogue event of fiscal 2016, we invited in Hidemi Tomita, Senior Project Principal at Lloyd’s Register Quality Assurance Limited, to discuss the perspectives that Tokyo Gas Group needs to adopt and the challenges it must address in order to incorporate good CSR practices into its procurement operations, paying particular attention to the sourcing of LNG and materials that forms the core of Tokyo Gas’s procurements.

Working with Business Partners to Create a Sustainable Society
Hosting of "Stakeholder Dialogue 2016"

Date: Wednesday, July 6, 2016
Location: Tokyo Gas Co., Ltd. Head Office
Participants: Outside expert: Hidemi Tomita

Senior Project Principal
Lloyd's Register Quality Assurance Limited

Facilitator: Yoshihiko Yamabuki

Director of Communications Innovation
Cetus & General Press Inc.

Participants from Tokyo Gas

Satoru Sawada 
Senior Executive Officer (executive in charge of CSR)

Motoyuki Okade 
General Manager of Customer Service Department

Hisashi Noguchi 
General Manager of Residential Sales Marketing Department

Shinya Nishigata 
General Manager of Energy Sales & Service Planning Department

Yoichi Shibata 
General Manager of Regional Development Planning Department

Fumihiko Hara 
Executive Officer, General Manager of Strategy Planning Department

Takayuki Genma 
General Manager of Regasification & Power Generation Department

Kentaro Kimoto 
Executive Officer, General Manager of Gas Resources Department

Kazuyoshi Sawada 
General Manager of IT Application Department

Shinichi Sasayama 
Executive Officer, General Manager of Corporate Planning Department

Keiichi Hasebe 
General Manager of Personnel Department

Shunichi Koike 
General Manager of Purchasing Department

Akihiro Saito 
General Manager of General Administration Department

Hiroshi Hanada 
General Manager of Corporate Communications Department

Tsuneaki Nakamura 
General Manager of Environmental Affairs Department

Yoshio Sorimachi 
General Manager of Compliance Department

Shuichi Hanada 
Chief Manager of CSR, Corporate Communications Department

Note: The company names / titles are the ones at the time.

<Expert’s profile>

Hidemi Tomita

Mr. Tomita graduated from the Faculty of Engineering at the University of Tokyo and obtained his Master from Princeton University. He was executive manager of Sony Corporation’s CSR department for some 10 years from its inception, and was later appointed a task group convenor for the ISO 26000 Working Group. Since the development of the ISO 26000 standard, he has been an active member of ISO 26000 PRO-SAG. He is also a member of the GRI Global Sustainability Standards Board (GSSB) for the development of new disclosure standards, and Japan expert for the ISO 20400 standard for sustainable procurement.

Hidemi Tomita

Expectations of Tokyo Gas Group

Two key goals of Tokyo Gas’s Challenge 2020 Vision are the transformation of the Group’s business structure and broadening of its business base. Given the uniqueness of the gas business and the diverse lines of business that it pursues, Tokyo Gas needs to conduct risk analyses of its supply chains in each area of business. Although not shown in the figure opposite depicting the steps toward CSR-sensitive procurement, risk management is of the utmost importance and should be made the first step in supply chain management by the Group.

In addition, although various initiatives are currently being pursued from the bottom up by each business division, it is possible that important issues may not be properly addressed when viewed from an overall perspective unless action is pursued in an integrated manner in accordance with a company-wide policy. It would best to pursue these initiatives as a company-wide effort while sharing information among all departments.

As each sector of the energy industry and each utility has its own distinctive features and challenges, Tokyo Gas should work as far as possible in collaboration with other companies in the same sector to improve efficiency, rather than simply using pre-existing schemes.

1. LNG procurement
Tokyo Gas Group’s Current Situation and Issue Awareness
We currently procure LNG for making city gas from five countries under long-term contracts. To take the example of our Australian projects, which account for the bulk of our procurements, we meet requirements by performing to a high standard in areas such as concern for the environment, local employment, provision of vocational training, sensitivity to human rights, and communication with local communities. As our sources will diversify further in the future, we will be paying even greater attention to the factors that should be taken into consideration in supply chain management.

Mr. Tomita’s Analysis
In order to practice good supply chain management, Tokyo Gas first needs to consider what policies to pursue as a group, and then make these policies known to its business partners and keep track of conditions at those business partners. It is important that Tokyo Gas be proactively involved in this process. In the case of new development projects, it needs to first conduct proper preliminary surveys and, if using existing assessment tools, it should properly determine that they are in fact compatible with the Group’s policies.

2. Material procurement
Tokyo Gas Group’s Current Situation and Issue Awareness

  • While our Basic Requirements for Purchasing demand good practice in regard to compliance, environmental conservation, risk control, and consideration for labor and human rights, we recognize that these requirements need to be rethought from an international perspective. 
    We currently take a PDCA approach to managing procurements by surveying our business partners’ actions on compliance, the environment, and so on, as well as their business profiles, and providing feedback on our findings.
  • We value building trust with our business partners. We give them tours of various facilities and engage in dialogue to give them greater insight into the gas business. We also visit our business partners’ manufacturing facilities. As we cannot visit them all, however, we need to find better ways of keeping track of overall conditions.

Mr. Tomita’s Analysis

  • As Japanese firms are also now globalizing and thus face evolving challenges depending on the global situation, they need to take international standards as well as Japanese standards into account when surveying suppliers.
    There is also much that cannot be discovered from surveys alone. It is surprisingly difficult to get proper answers, due for example to the giving of inaccurate responses or failure to understand the point of a question. It is important not only to ascertain conditions on the spot, but also to provide opportunities for information to be shared. Communication with business partners should be continuously maintained.
  • It is not presently necessary to expend too much effort trying to visit all business partners. Tokyo Gas should instead survey a sample of the places that pose the greatest risks so as to study and identify overall trends, and then follow up with audits and other investigations. 
    It is often not possible to get to the heart of a problem just by surveying large, primary suppliers. The Group should therefore identify where the risks lie and decide where to survey by ascertaining how its supply chains are structured. It needs to determine, in other words, what kinds of things it purchases and by what processes they are made.

3. Management of supply chains
Tokyo Gas Group’s Current Situation and Issue Awareness
In the years ahead, we aim to shift from what we call the ”Mount Fuji-style of management” dominated by a single core business, namely the city gas business, to what we have named the ”Yatsugatake (mountain range with several peaks) -style of management” with multiple core businesses. This will require us to think of our supply chains holistically from the point of view of the governance of the Group as a whole, and we recognize that how we go about doing so will be a key management question.

Mr. Tomita’s Analysis

Recent years have seen the emergence in various industries of schemes for joint supply chain management and one possible approach would be to draw on these examples. As supply chain concerns differ depending on the line of business, it would be important in this case to analyze the features of each area of business the Group is engaged in to ensure that schemes of this kind are applied properly. Another possible approach is to consider also adopting assessment indices that are suited to Tokyo Gas while drawing on practice by leaders in the field overseas in order to identify likely risks. There is not necessarily any need to strain too hard to adopt tools and frameworks.


Steps toward CSR-Sensitive ProcurementSteps toward CSR-Sensitive Procurement
Source:Envisioning the Desired Form of CSR Procurement. A Vision of Desirable CSR Activity in the Supply Chain 
- A Proposal from the Supply Chain Working Group - 
Global Compact Network Japan Supply Chain Working Group


In Response to Mr. Tomita’s Analysis

While our business divisions are each pursuing various measures, today’s dialogue served as a powerful reminder that companies face a dramatically changing environment, that the time has come to take serious action to make CSR an integral part of supply chain management, and that it is vital that we determine what direction our management should take.
With the Group globalizing as a total energy company, we believe that we need to ground our actions in a greater awareness of world trends than we have hitherto.
Based on the advice received, we will consider what action we should take in the context of the governance of the Group as a whole, and we will proceed to take steady action one step at a time, bearing in mind practice at other companies and the demands of society.

Satoru Sawada
Senior Executive Officer

Satoru Sawada

Senior Executive Officer

Communication to Improve Our CSR Activities Stakeholder Dialogue 2015
Date: July 2015

Stakeholder Dialogue held in July 2015

Having adopted evolution of the total energy business, acceleration of global business development, and construction of a new group formation as its Main Policies FY2015-2017, the Group continues to review its key CSR activities in line with these policies as it works to further raise the standard of group-wide CSR. As part of these activities, we invited Toshio Arima, Executive Advisor at Fuji Xerox Co., Ltd., to speak at our key ”Stakeholder Dialogue” event in fiscal 2015. He addressed perspectives and challenges that global businesses should consider in order to practice good CSR, and the event provided many useful insights that will help guide the Group’s future CSR activities.


Executive in charge of CSR (Director, Senior Executive Officer); Executive Officer, General Manager of Corporate Planning Department; Executive Officer, General Manager of Gas Resources Department; General Manager of Personnel Department; General Manager of Compliance Department; General Manager of Environmental Affairs Department; General Manager of Purchasing Department; General Manager of Business Development Department; General Manager of Overseas Business Planning Department, Tokyo Gas Engineering Solutions Corporation; Executive Officer, General Manager of Corporate Communications Department; Chief Manager of CSR, Corporate Communications Department

CSR Workshop

We hold a CSR workshop for our employees to help them gain a flexible grasp of changes in public expectations and to learn to perceive social issues as issues that concern them personally.

CSR Workshop 2016

Date: February 2017
Participants: 60 Tokyo Gas Group employees

This workshop was prompted by the expansion of our business base driven in particular by the Group’s accelerating globalization, and it took as its theme the Sustainable Development Goals (SDGs), which will be a shared challenge for all the world in the years up to 2030. Learning through a game format, the participants looked at the mountainous environmental and poverty-related challenges faced by both developed and developing countries, and energetically discussed how Tokyo Gas Group can play its part in the international community by helping to tackle these challenges. Participants observed that many of the challenges that will be faced leading up to 2030 will also present business opportunities.

CSR Workshop

CSR Workshop 2015

Date: February 2016
Participants: 20 Tokyo Gas Group employees

We asked Makiko Akabane, Director of CSR Asia’s Japan office, to lead a CSR workshop for our employees to help them gain a flexible grasp of changes in public expectations and to learn to perceive social issues as issues that concern them personally. Ms. Akabane introduced a number of examples of the social issues now arising in Asia and elsewhere, together with the initiatives being pursued by companies around the world to address them. During the group work session, the participants actively discussed the issues raised by several hypothetical projects (such as how to provide support for a rural community with no infrastructure). Afterwards, the participants commented that the workshop had demonstrated to them the importance of seeing things from the point of view of what society expects of a company, and how utilizing a company’s own strengths to solve social issues can also create new business opportunities.

Participants captivated by the intense workshop
Participants captivated by the intense workshop

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.