Tokyogasgroup csr report

Specifying Materialities

The Tokyo Gas Group specifies key sustainability issues as materialities. We enhance our activities and initiatives by setting goals and assessing performance for each materiality.

Process for Specifying Materialities
STEP 1 Sort social issues
  • Comprehensively identify issues to be examined referring to GRI standards, ISO 26000 and other representative international guidelines concerning the social responsibility of organizations, as well as the SDGs and criteria used by institutions that assess ESG.
STEP 2 Prioritize
  • Assess and prioritize each issue on the two axes of stakeholder expectations and social impact of the organization and business.
  • Specify the important issues that the Tokyo Gas Group should address on a priority basis through in-house consultations.
STEP 3 Confirm validity and decide
  • Have experts assess the validity of the identified important issues, and specify these as materialities. Decide these with the approval of the Sustainability Committee (sustainability promotion body).
  • Set targets for the specified materialities through consultations with the related divisions.
STEP 4 Review
  • Conduct activity assessments on the materialities based on the targets and results, and disclose these in the Sustainability Report.
  • Conduct a review each fiscal year considering the results of internal and external questionnaires, the opinions of outside experts, the SDGs and other international targets and guidelines, as well as the criteria used by institutions that assess ESG. Use these for revision of materialities and targets, incorporation into business, and improvement of reporting content.
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.

FY2020-2022 Materialities

In FY2019, the Tokyo Gas Group specified three new materialities based on changes in public expectations and demands, as well as the formulation of our management vision Compass 2030.
We have organized the materialities into three categories. The pillar is “Leadership in the effort to achieve Net-Zero CO2 and continuing to create customer value while ensuring stable supply and energy access as a leading company dealing in natural gas”. The other materialities are “Sound relationships with society”, which supports this, and “Actions as a responsible company”, which is the foundation of our business activities.

FY2020–2022 Materialities

FY2020–2022 Materialities

Reasons for Specification of Materialities, and Scope of Impact
  Materiality Reasons for Specification Scope of Impact
Internal External
Leadership in the effort to achieve Net-Zero CO2 as a leading company dealing in natural gas Climate change Corresponds to Compass 2030 Challenge 1 “leadership in the effort to achieve net-zero CO2.”
Access to energy Corresponds to Compass 2030 Action 4 “enhanced resilience functions through the use of natural gas” and Action 5 “overseas expansion.”
Safety and disaster preparedness Corresponds to Compass 2030 Action 4 “enhanced resilience functions through the use of natural gas.”
Creation of customer value Corresponds to Compass 2030 Challenge 2 “establishment of a value co-creation ecosystem” and Challenge 3 “transformation of the LNG value chain.”
Sound relationships with society Resource efficiency and recycling society Corresponds to Compass 2030 Challenge 1 “leadership in the effort to achieve net-zero CO2” and Challenge 2 “establishment of a value co-creation ecosystem.”
Establishment of relationships with communities Corresponds to Compass 2030 Challenge 2 “establishment of a value co-creation ecosystem.”
Diversity Corresponds to Compass 2030 “engagement with current an future colleagues”
Satisfaction through work and labor productivity Corresponds to Compass 2030 “engagement with current and future colleagues.”  
Actions as a responsible company Supply chain management Corresponds to Our Code of Conduct “3. We will deal with customers, business partners, shareholders, and all our stakeholders sincerely and equitably.”
Information security Corresponds to Our Code of Conduct “7. We will handle information appropriately.”
Governance and compliance Corresponds to all items in Our Code of Conduct.  
Materialities and Targets
  Materiality Targets concerning materiality (FY2022)
Leadership in the effort to achieve Net-Zero CO2 as a leading company dealing in natural gas Climate change Challenge of achieving net-zero CO2 emissions Contribution to reductions through solutions combining renewable energies with natural gas: contribution to CO2 emissions reductions of 6.5 million tons
Reduction through expanding renewable energy transaction volume: renewable power source transaction volume of 2 million kW
Contribution to reductions through development of LNG infrastructure business overseas
Promotion of forest and land use initiatives that contribute to decarbonization
Contributions regarding national energy conservation and CO2 emissions reductions
Promotion of technology innovation contributing to decarbonization
Access to energy Number of serious supply disruptions: maintained 0 cases
Natural gas transaction volume: 17 million tons
Safety and disaster preparedness Percentage of main and branch gas pipelines with improved earthquake resistance: 89.3%.
Supply Command Center emergency measures drills: maintained 100% participation rate
Creation of customer value Promotion of value co-creation related to the environment Continuously create customer value in line with the change and diversification of customer values
Number of customer accounts (total number of contracts for gas, electricity, and services): 14.8 million
Sound relationships with society Resource efficiency and recycling society Promotion of a resource-efficient zero-waste society Promotion of the conservation of biodiversity, collaborating with business partners in the electric power and LNG value chains
Maintenance of industrial waste recycling ratio: 95% or more
Limiting the volume of soil excavated during gas pipeline construction (by FY2020)
Recycling of plastic waste (maintain polyethylene pipe recycling ratio of 100%)
Water risk countermeasures (maintenance of water consumption volumes, BCP for disasters, etc.)
Establishment of relationships with communities Sound relations with stakeholders regarding the environment Promoting transmission of information and education concerning the environment, and social contribution activities
Reinforcement of engagement through the strategic disclosure of non-financial ESG information
Continuous implementation of social contribution and volunteer activities
Continuous implementation of activities to support school education
Diversity Promotion of the activities of diverse personnel
Satisfaction through work and labor productivity Promotion of systems and work environments leading to job satisfaction
Promotion of initiatives toward boosting labor productivity
Act as a responsible company Supply chain management Promotion of supply chain management
Information security Promotion of information security initiatives
Governance and compliance Enhancement and reinforcement of corporate governance
Promotion of compliance
Opinions from experts
Voice
 
I think it is really important to directly connect materialities with the bold efforts toward net-zero CO2 emissions set forth in the management vision Compass 2030, and to make it really clear what the important issues are. The role of the Tokyo Gas Group is to lead the transition to net-zero CO2 while maintaining the stable supply of energy and resilient social infrastructure. In that sense, I think the specification of the materialities this time was right on the mark. Going forward, I expect the Tokyo Gas Group to show itself as a company working toward the target of limiting average temperature rise to 1.5°C and to reveal how it will participate in the reform of Japan’s energy society.

Peter David Pedersen Representative director NELIS (Next Leader’s Initiative for Sustainability)

Peter David PedersenRepresentative director
NELIS
(Next Leader’s Initiative for Sustainability)

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.

FY2019 Materialities

In FY2019, the Tokyo Gas Group implemented initiatives to promote sustainability in line with the materialities specified in FY2017 based on the FY2018-2020 management plan GPS 2020. The materialities were divided into strategic issues and fundamental business issues, and the strategic issues were categorized into three pillars to lay out a clear course of action.

FY2019 Materialities

FY2019 Materialities

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.