Tokyogasgroup csr report

Achieving Our Public Mission as an Energy Company

Supply Chain Management

Tokyo Gas believes that it must fulfill its social responsibility in cooperation with business partners, rather than doing so on its own when delivering products and services to customers. In 1992, we introduced guidelines and basic requirements to pursue open, equitable and fair purchasing activities. Adhering to these guidelines, we have forged relationships of trust and jointly implement CSR initiatives. In 2017, we revised the Basic Requirements for Purchasing, Purchasing Guidelines for Suppliers and Green Purchasing Promotion Guidebook to promote procurement with even greater consideration for CSR. Together we will also enhance our brand values of Safety, Security and Reliability through a committed effort to pursue open, equitable and fair purchasing activities based on these policies.

Principles and Standards of Purchasing Practice

Basic Policy

Our transactions and relations with suppliers are governed by Tokyo Gas Group Our Code of Conduct, which defines the values and guidelines shared by all members of the Tokyo Gas Group, and we seek to ensure that the Code is thoroughly understood and observed. Furthermore, we have stipulated a code of conduct for purchasing activities in our Principles and Standards of purchasing practice, and we strive to establish relationships of trust based on highly transparent, fair and equitable transactions with our partners.
To enhance customer trust, it is essential that not only the Tokyo Gas Group but also its suppliers practice compliance, preserve the environment, ensure occupational safety, respect human rights, and show concern for local communities. We request suppliers to adhere to our Purchasing Guidelines for Suppliers and Green Purchasing Promotion Guidebook. Each time we place an order for construction and other work, we notify suppliers of our Specifications for Common Environmental Management and seek their adherence to requirements such as legal compliance, reduced environmental impact and consideration for occupational safety and health.
 
●Procurement Policies (Revised in Fiscal 2017)
 
  • Principles and Standards of purchasing practice: code of conduct governing the purchasing activities of Tokyo Gas
  • Purchasing Guidelines for Suppliers: requirements for doing business, including quality, legal compliance, labor, safety and human rights, environment, and local communities
  • Green Purchasing Promotion Guidebook: environmental aspects of procurement that require consideration

Principles and Standards of Purchasing Practice

To embody its Corporate Action Philosophy, Tokyo Gas established Principles and Standards of Purchasing Practice as a code of conduct for its purchasing activities. In fiscal 2017, we revised the Principles and Standards to promote procurement that pays even greater consideration for CSR.
 
●Principles and Standards of Purchasing Practice

Tokyo Gas Co., Ltd. (“the Company”) strives to practice its Corporate Action Philosophy by adhering to the following Principles and Standards of Purchasing Practice, which serves as the code of conduct governing purchasing activities.

1. Openness

1.1
The Company will procure goods and services, both domestically and internationally, that meet the Company’s standards for quality, safety, and cost, through procedures that are simple and easily understood.


2. Fairness and Equality

2.1
The Company will select its suppliers in a fair and equitable manner on the basis of economic rationality, with due consideration to quality, price, reliability, guaranteed delivery, after-sales service, suitability with existing facilities, technological ability, financial health, and CSR stance.
2.2
The Company is fully committed to complying with the laws and regulations prohibiting bribery, corruption, misappropriation, antitrust, and other illegal behavior.


3. Mutual Trust

3.1
The Company will establish relationships of trust with its suppliers based on fair and equitable transactions and strive to maintain and enhance the safety, security, and reliability of its brand through mutual prosperity and cooperation. Indispensable to providing stable energy is the stable supply of quality goods and services from suppliers at fair prices and within the designated delivery periods, all based on mutual trust.


4. Commitment to Compliance

4.1
The Company and its suppliers must fully comply with the letter and spirit of all relevant laws and regulations, social norms, and corporate ethics when conducting business transactions.


5. Environmental Protection

5.1
The Company will work with its suppliers to protect the natural environment toward realizing a resource-saving society by adopting the perspective of environmental friendliness in addition to economic considerations.
5.2
The Company will promote Green Purchasing in accordance with its Green Purchasing Promotion Guidebook and also to follow through with its Environmental Policies.


6. Occupational Safety and Respect for Human Rights

6.1
The Company will work with its suppliers to ensure occupational safety and respect for human rights.

7. Consideration for Local Communities
7.1
The Company will work with its suppliers to preserve the environment and ensure respect for human rights in local communities, while also striving to ensure their safety and security.
7.2
The Company will actively engage in activities that contribute to the development of local communities toward the betterment of society.
 
 
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.

Purchasing Guidelines for Suppliers

To clarify and address the tasks in a collaborative effort, the Tokyo Gas Group sets out its requirements in the Purchasing Guidelines for Suppliers and requests that they be put into practice.
Promotion of CSR will also result in reducing risks and enhancing quality across the supply chain. Our objective is to achieve mutual growth alongside our suppliers and play our part in creating a sustainable society.
 
● Purchasing Guidelines for Suppliers

The Company seeks the cooperation of its suppliers and requests that they understand and act in accordance with the Basic Requirements so as to ensure mutual trust throughout purchasing activities.

1. Quality Guarantee
1.1
The Supplier must meet the requirements for quality and performance as set by Tokyo Gas and maintain that level of quality and performance over a reasonable period of time.

2. Reasonable Pricing
2.1
The Supplier must offer prices deemed reasonable with respect to quality, performance, specifications, terms of delivery, terms of payment, trends in market prices, and other relevant areas.

3. Compliance with Terms of Delivery
3.1
The Supplier must observe the contractual time of delivery specified by the Company.

4. Safety Assurance
4.1
The Supplier must ensure the safe use and operation of its products.

5. Maintenance and After-Sales Service
5.1
The inspection, maintenance, and repair services that the Supplier is required to provide should be undertaken in a fast and precise manner, an approach that should also be applied to its design and production or implementation of goods and services. In addition, the Supplier must be capable of quickly providing the necessary parts and technical assistance for standard repairs and in the event of an emergency.

6. Risk Management
6.1
The Supplier must be able to respond quickly and effectively in the event of a quality-related problem or emergency such as a natural disaster or accident.
6.2
The Supplier must appropriately handle personal information and confidential information.
6.3
The Supplier must appropriately manage intellectual property, including confidential information and know-how.

7. Commitment to Compliance
7.1
The Supplier must comply fully with the letter and spirit of all relevant laws and regulations, including the antitrust law and subcontractor law, and is expected to observe social norms and corporate ethics. The Supplier must also maintain a fully functioning system for the prevention and early detection of illegal behavior.

8. Consideration for Labor, Safety, and Human Rights
8.1
The Supplier must act in compliance with laws, regulations, and social norms related to occupational health and safety, working conditions, and human rights, and must engage in initiatives for addressing these issues. Specific requirements include:
  • Eliminating all discriminatory practices based on race, ethnicity, religion, gender, age, place of birth, nationality, physical and mental disability, academic background, social status, sexual preference, sexual identity, and other factors, and striving to provide equal opportunities and fair treatment;
  • Attending to the health and safety of employees and implementing the necessary measures;
  • Properly managing working hours and avoiding forcing work against the will of the employee;
  • Respecting employees’ right to organize and allowing collective bargaining and labor-management consultations;
  • Protecting the rights of workers, complying with minimum wage requirements, and giving due consideration to providing a living wage; and
  • Prohibiting child labor and forced labor and preventing illegal labor practices.

9. Environmental Protection
9.1
The Supplier is required to implement sufficient measures to avoid harming the global environment, pay due consideration to environmental issues, and reduce its environmental impact. The Supplier is also expected to implement initiatives in line with the Company’s Green Purchasing Guidelines.

10. Consideration for Local Communities
10.1
The Supplier is required to work with its business partners to protect the environment, respect human rights, and ensure the safety and security of local communities.
10.2
The Supplier is encouraged to actively engage in activities that contribute to the development of local communities toward the betterment of society.

11. Supply Chain Management
11.1
In addition to observing the guidelines, the Supplier is expected to encourage its business partners to implement the initiatives set forth therein.

12. Prohibition of Involvement with Conflict Minerals
12.1
As a precondition to any business transaction, products supplied by the Supplier must not contain conflict minerals (gold ore, coltan, wolframite, and cassiterite) produced to fund militant groups in the Democratic Republic of the Congo and its neighboring countries and regions.
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.

Specifications for Common Environmental Management

Specifications for Common Environmental Management cover rules on issues such as legal compliance, reduction of environmental impact and consideration for occupational safety and health. We present them to suppliers whenever we commission construction and other work, requesting their cooperation.
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.

Initiatives for Green Purchasing

Tokyo Gas has been practicing green purchasing*1 since fiscal 1996.
We systematically pursue green purchasing in accordance with our
Green Purchasing Promotion Guidebook and require suppliers to adhere to specifications based on our Purchasing Guidelines for Suppliers.
*1 Placing priority on purchasing products and services with lower environmental impact.

Green Purchasing Promotion Guidebook

The Tokyo Gas Group will promote Green Purchasing in accordance with these guidelines and by adopting the perspective of environmental friendliness, in addition to common criteria such as cost, quality, and terms of delivery, when procuring and purchasing construction works and services as well as materials, manufactured goods, and components (hereafter “goods and services”).

1. Purpose of Green Purchasing
1.1
Tokyo Gas endeavors to proactively and consistently contribute to protecting the global environment and building a resource-saving society, not only by reducing the environmental impact of its business activities through initiatives such as energy conservation and waste reduction but also by promoting Green Purchasing in the upstream segment of its business activities toward reducing its overall environmental impact.

2.  Considerations for Selecting Goods and Services
2.1
In accordance with the Green Purchasing Guidelines laid out by the Green Purchasing Network (GPN), Tokyo Gas will select goods after considering the diverse environmental impacts throughout their life cycles, from extraction of raw materials to disposal, as explained below.
2.1.1
Reduction of environmental impact
Reduced use or emission of substances that are harmful to the environment and human health. Proper control of legally designated chemical substances.
2.1.2
Conservation of resources and energy
Limited consumption of resources, energy, and water during product manufacture, use, and installation.
2.1.3
Sustainable extraction and use of resources
Sustainable extraction methods and effective utilization to prevent depletion of resources.
2.1.4
Capacity for long-term use
Enable long-term use based on ease of repair, parts exchange, and other considerations.
2.1.5
Reusability
Can be reused.
2.1.6
Recyclability
Can be recycled.
2.1.7
Use of recycled materials
Contains a significant ratio of recycled materials and reused components.
2.1.8
Ease of treatment and disposal
Can be easily treated and disposed of as waste.
2.1.9
Legally compliant waste disposal
Promotes the recycling of resources through reduced waste generation, reuse, and thorough sorting and ensures a legally compliant waste disposal process.
2.1.10
Biodiversity conservation
Mitigates direct and indirect impacts of business operations on the ecosystem.

3.  Considerations for Selecting Suppliers
3.1
When selecting suppliers, Tokyo Gas will give higher priority to companies that actively pursue environmental protection initiatives, such as implementation of an environmental management system (EMS) that includes:
3.1.1
Establishing environmental principles and guidelines;
3.1.2
Appointing dedicated environmental officers;
3.1.3
Complying with environmental laws and regulations;
3.1.4
Identifying the environmental impacts of business activities;
3.1.5
Disclosing environmental information;
3.1.6
Protecting the environment in collaboration with local communities and NGOs;
3.1.7
Promoting Green Purchasing; and
3.1.8
Asking suppliers to pursue environmental protection activities.

4.  Collection and Use of Environmental Information
4.1
Tokyo Gas will actively collect, organize, and analyze environmental information on goods and services as well as manufacturers and sales companies. The information will be shared by the Purchasing Department and used to ensure appropriate management of Green Purchasing.

5.  Note on Implementing Green Purchasing
5.1
When undertaking procurement and purchasing, the Purchasing Department of Tokyo Gas will give priority to selecting the goods and services with the least environmental impact, from among candidates that meet requirements such as quality and terms of delivery, while at the same time striving to contain costs.

Example of Promoting Green Purchasing through Electronic Catalog

Tokyo Gas has introduced purchasing from an electronic catalog*2 that lists over 100,000 items.
Office supplies, fixtures and equipment, and printed matter comprise the majority of listed items, and we place priority on products that meet green purchasing requirements. The catalog provides us with environmentally-friendly options.
In addition, we also promote the use of Tokyo Gas Recycled Paper made of paper waste generated by Tokyo Gas.
*2 Our PASPO purchasing system facilitates ordering from an electronic catalog via the Internet in a simple and timely manner.

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.

Communication with Our Suppliers

We routinely engage in two-way communication with our suppliers by sharing information during meetings and conducting annual surveys. In addition, we established a contact page for purchasing inquiries which is equivalent to the suppliers consultation desk for the internal reporting system.

 
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.

Conducting In-house Education on Procurement

In promoting CSR procurement, it is important that every staff member responsible understands the purpose. In fiscal 2018, we conducted training for responsible staff members and newly assigned staff, study session on CSR procurement, and basic seminars on purchasing for employees in other departments. We are implementing in-house education by providing basic information as well as organizing lectures by outside experts and an exchange of views on issues such as CSR procurement that should be addressed by each relevant department.
 
Training Content Overview
Training for responsible staff members Purchasing rules, communication with suppliers, contracts, relevant laws and regulations, risks related to procurement, ideal role of the Purchasing Department Target: Purchasing Department staff
16 courses
Training for newly assigned staff Purchasing rules, communication with suppliers, contracts, relevant laws and regulations, risks related to procurement, procurement system, etc. Target: Newly assigned Purchasing Department staff
8 courses
Special seminar Environment surrounding materials procurement and countermeasures, proper mindset for a procurement officer Target: Purchasing Department staff
1 course
Study session on CSR procurement Analysis of supplier survey results, exchange of views on trends in CSR procurement Target: Purchasing Department staff
1 course
Basic seminars on purchasing for employees in other departments Laws and regulations related to purchasing, basic knowledge for appropriate purchasing practices Target: All employees
4 courses
 
Study session on CSR procurement
Study session on CSR procurement
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.

Supplier Survey

Overview
As part of our annual supplier survey, we review the status of CSR efforts at each company. In fiscal 2018, we revised the survey questions based on past survey results and the latest societal trends and also established procedures for confirming status along with a management checklist. In addition, we began providing feedback across the board to encourage two-way communication and strengthen cooperation with Purchasing Guidelines for Suppliers.
 

Results of FY2018 CSR Survey of Suppliers
In fiscal 2018, we conducted a wide-ranging survey asking 509 companies to provide information on their policies and codes of conduct for promoting CSR. We received responses from 454 of them, which was a significant increase from the previous year. We compiled and analyzed their responses and confirmed specific points directly with them as needed. None of the suppliers demonstrated any serious risks such as legal violations.
The details and results of the survey are as follows.
 

Details of Implementation

  FY2017 FY2018
Target (companies) 527 509
Response (companies) 317 454
Response rate (%) 60.1 89.2

Overview of Survey Results

Categories/Typical Questions Ratio of Suppliers Addressing the Issues (%)
1. CSR management and compliance
- Establishment of codes of conduct on CSR
89
2. Risk management
- Formulation of Business Continuation Plan
89
3. Product quality and safety
- Establishment of policies on product quality and safety
84
4. Human rights and working conditions
- Establishment of codes of conduct on human rights and working conditions
88
5. Occupational safety, hygiene and health
- Establishment of codes of conduct on occupational safety and health
89
6. Environment
- Formulation of environmental policy, efforts on conservation of resources
71
7. Supply Chain
- Formulation of policies on the supply chain
59
 
Overview of Survey Results
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.