Tokyogasgroup csr report

Decarbonization through Energy Supply

Addressing Climate Change

Addressing Climate Change

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.

  • *1Gas engine-based CHP systems generate electricity and recover exhaust heat generated as a by-product.
First in Japan to Receive a Cargo of Carbon Neutral LNG

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.

For the next 50years
  • *1With regard to this supply of carbon neutral LNG, Shell ’s carbon credits will be used to compensate the full carbon dioxide (CO2) emissions generated – from exploring for and producing the natural gas to use by the final consumer. The carbon credits are purchased by Shell from a global portfolio of nature-based projects, and each carbon credit is subject to a third-party verification process.

Greenhouse Gas Emissions along the LNG Value Chain (FY2018)

Third-party Assured

Greenhouse Gas Emissions along the LNG Value Chain (FY2018)

  • Source: “Study of Life Cycle Greenhouse Gas Emissions of LNG and City Gas 13A” (Proceedings of the annual meeting of Japan Society of Energy and Resources 35, pp. 23–26, 2016)
  • SCOPE1: Business’s own direct emissions of greenhouse gases.
  • SCOPE2: Indirect emissions from consumption of electricity, heat, and steam supplied by others.
  • SCOPE3: Indirect emissions other than covered in SCOPE2 (emissions by other parties involved with business’s activities).
Environmental Advantages of City Gas in Terms of Lifecycle COEmissions

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 COemissions of any fossil fuel.

Environmental Advantages of City Gas in Terms of Lifecycle CO2 Emissions

  • Source: “Future Forecast for Life Cycle Greenhouse Gas Emissions of LNG and City Gas 13A” (Japan Society of Energy and Resources, presentation report 28 (2), pp. 51–56, 2007)
DFF Inc., Sustainability Dept., 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.