Climate change has emerged as one of the highest risks to achieving a sustainable global economy. The Tokyo Gas Group has been striving Group-wide to address global warming by setting concrete numerical targets under the Guidelines for Global Warming Countermeasures, which apply to our business operations as well as to customer sites where the portion of CO2 emissions are the largest across our value chain.
In light of the Paris Agreement, adopted at the COP21 conference, as well as movements against climate change in Japan, we have been actively pursuing decarbonization initiatives. These include implementing a wider use of natural gas, which has a lower CO2 emission factor, developing and expanding Smart Energy Networks (SENs) that combine heat and power (CHP) systems*1 and other highly efficient equipment with advanced energy management, and embracing digitization technologies and innovation.
In our electric power business, we will develop an optimal power source portfolio with eco-friendly natural gas-fired power plants, renewable energy, and so on. Furthermore, in our overseas business we will deploy technologies that excel in reducing CO2 emissions and energy consumption across our LNG value chain as a contribution to global efforts to address climate change.
In July 2019, Tokyo Gas received a shipment of carbon neutral liquefied natural gas (LNG)*1 from Shell Eastern Trading (Pte) Ltd., becoming the first company in Japan to do so.
Since we received Japan’s first-ever LNG cargo in November 1969, we have been working to expand the use of natural gas, which generates the least CO2 among fossil fuels. With this latest move of procuring carbon neutral LNG, Tokyo Gas will reinforce its efforts in developing a decarbonized society as well as providing a new decarbonized product to our customers.
Greenhouse gases are released not only when fossil fuels are burned but also when they are extracted, processed, and transported. It is therefore important to take into account emissions throughout the fossil fuel lifecycle. From the lifecycle perspective, natural gas generates the lowest CO2 emissions of any fossil fuel.