FY2019 Targets and Results

Sustainability

FY2019 Targets and Results

Strategic Issues

Stable supply of energy in Japan and overseas

Criteria for evaluation: ○ Target achieved (100% or above)　△ Target not achieved but maintained same level or improved from the previous fiscal year　× Target not achieved

Note: Qualitative CSR KPIs with no evaluation axes are assessed on the basis of whether progress was made since the previous fiscal year.

Materiality	CSR KPIs	FY2019 Major Outcomes	Evaluationality
Stable supply of gas and electricity	Maintain zero cases of serious supply disruptions to customers	Serious supply disruptions: 0 cases Construction of LNG tank No. 2 at the Hitachi LNG Terminal (projected completion FY2020) Construction of Ibaraki Line (Hitachi City – Kamisu City) (projected completion FY2020)	〇
Stable supply of gas and electricity	Stable operations of existing power plants	Began receipt of all electric power from the Moka Power Station owned by Kobelco Power Moka Inc.	〇
Stable procurement of LNG	Achieve stable and low-cost LNG procurement through the three diversifications: Diversification of procurement sources Diversification of contract content Diversification of the LNG network	Procurement of LNG under long-term contracts from 16 projects in 6 countries (as of March 31, 2020) LNG procurement volume: 13.23 million tons (FY2019)	〇
Construction of energy infrastructure in developing countries	Contribution to the natural gas value chain in Southeast Asia	Concluded a Memorandum of Understanding with Petrovietnam Power Corporation regarding the development of the LNG to Power project in Quang Ninh Province in northern Vietnam and Ca Mau Province in southern Vietnam. Received order for front end engineering design (FEED) for the expansion project of Yung An LNG Receiving Terminal in Taiwan. Concluded contract with One Bangkok Co., Ltd. for district cooling and power distribution for a development project in Bangkok, Thailand.	〇

Constructing a Robust Energy Platform

Criteria for evaluation: ○ Target achieved (100% or above)　△ Target not achieved but maintained same level or improved from the previous fiscal year　× Target not achieved

Note: Qualitative CSR KPIs with no evaluation axes are assessed on the basis of whether progress was made since the previous fiscal year.

Materiality	CSR KPIs	FY2019 Major Outcomes	Evaluationality
Safety and disaster prevention	Percentage of main and branch gas pipelines with improved earthquake-resistance FY2019 target: 87.90%	Percentage of main and branch gas pipelines with improved earthquake-resistance: 88.4%	〇
Sustainable urban development	Increase in the cumulative number of regional development projects	Constructed a smart energy network (SEN) in the northern district at Tamachi Station’s east exit Began SEN project in the Nihonbashi Muromachi area Began SEN project for core facilities in front of Toyosu Station Realized SEN project linking five companies at Kiyohara Industrial Park	〇
Sustainable urban development	Provision of services for a secure and comfortable lifestyle	Cumulative sales of more than 130,000 ENE-FARM residential fuel cells Prompt sales, repairs, and installation of gas equipment Provided services that support a comfortable lifestyle, including renovation work for kitchens, living rooms, bathrooms, etc., gas appliance guarantee services, and housework and childcare support services	〇

Decarbonization through Energy Supply

Criteria for evaluation: ○ Target achieved (100% or above)　△ Target not achieved but maintained same level or improved from the previous fiscal year　× Target not achieved

Note: Qualitative CSR KPIs with no evaluation axes are assessed on the basis of whether progress was made since the previous fiscal year.

Materiality	CSR KPIs	FY2019 Major Outcomes	Evaluationality
Climate change countermeasures	Promote the use of natural gas and introduce highly energy efficient gas appliances and systems to reduce CO₂ emissions at customer sites FY2019 CO₂ reduction target: 4.17 million tons from FY2011 level	Reduced CO₂ emissions at customer sites by 3.7 million tons	×
	Production energy intensity^*1 at gas production plants FY2019 target: 210 GJ/million m³	Production energy intensity: 206 GJ/million m³	〇
	Heat sales energy intensity^*2 at district heating and cooling facilities FY2019 target: 1.31 GJ/GJ	Heat sales energy intensity at district heating and cooling facilities: 1.38 GJ/GJ	×
	Area energy intensity^*3 at Tokyo Gas offices, etc. FY2019 target: 1.69 GJ/m²	Area energy intensity at Tokyo Gas offices, etc.: 1.56 GJ/m²	〇
	Reduce the CO₂ emissions factor at the electricity retail level	Promoted the procurement of electricity generated by high-efficiency thermal power and renewable energy sources	〇
	Promote the widespread use of renewable energy	Constructed the Shika Town Inotani Reservoir Solar Power Plant (2,589 kW) and the Hakui City Shimbo Town Solar Power Plant (2,746 kW) in Ishikawa Prefecture, and began commercial operations Purchased the Annaka Solar Power Plant (63,206 kW) in Gunma Prefecture through Annaka Solar LLC Invested in the Ishinomaki Hibarino Biomass energy (74,950 kW), and began participation in the woody biomass electric power generation business. Made use of renewable and unused energy sources in all types of SEN projects	〇
Promotion of resource recycling	Industrial waste recycling rate FY2019 target: 95% or higher	Industrial waste recycling rate: 97%	〇
Promotion of resource recycling	Zero emissions at production plants FY2019 target: less than 1%	Final disposal rate at production plants: 0.2%	〇
Promotion of biodiversity conservation	Promote biodiversity conservation activities in the LNG value chain	Surveyed the status of biodiversity consideration at source gas fields and confirmed there were no significant problems Managed ballast water discharged during LNG transport, conducted habitat surveys at green areas inside three LNG terminals, planted trees, and implemented conservation activities Practiced the 3Rs (reduce, reuse, and recycle) on soil excavated when laying gas pipelines to reduce the impact caused by the excavation of pit sand on ecosystems Conducted water risk analysis and evaluation at all Group bases in and outside of Japan and confirmed there were no major risks Implemented forest conservation activities and conducted habitat surveys at the Nagano Tokyo Gas Forest	〇

Other Environmental Guidelines		FY2019 Major Outcomes	Evaluationality
Promotion of resource recycling	Maintain recycling rate for general waste of 75% or higher through FY2020	Recycling rate for general waste: 74%	×
	Reduce copy paper usage 8% from the FY2012 level (to 132 million sheets or less) by FY2020	Copy paper usage: 102million sheets	〇
	Limit soil excavated during gas pipeline construction to 16% or less by FY2020	Limited soil excavated during gas pipeline construction to 15%	〇
Promotion of environmental communications		Participated in environmental events organized by local governments, organized lectures and tours, and introduced Tokyo Gas Group initiatives and proposed an energy-conservation lifestyle through information sharing at our museums and on our website Implemented activities to support school education (total attendance: 1,144,503, as of March 31, 2020) Implemented activities that contribute to the environment and society, including neighborhood cleanup activities at each site and the Mori Sato Umi Tsunagu (Connecting Forests, Villages and Ocean) Project Fostered environmental awareness through study groups on environmental regulations and other in-house education programs, and by presentation of the Environmental Program Promotion Award	〇
Promotion of environmental technologies	Promotion of the development of technologies for decarbonization	Began sales of ENE-FARM MINI, the world’s smallest residential fuel cell (rated power output: 400 W) Began sales of GHP XAIR gas air conditioning system, which realizes energy conservation and electricity savings Opened the Toyosu Hydrogen Station, which supplies hydrogen produced from carbon-neutral city gas Participation in a virtual power plant construction demonstration test Began demonstration test of 5 kW class high-efficiency solid oxide fuel cell Invested in Next Energy & Resources Co., Ltd. and began joint development of IoT platform that controls coordination among photovoltaic power generation, storage batteries, gas cogeneration systems, and other decentralized energy equipment	〇

*1 Energy consumption per gas production volume
*2 Energy consumption per heat sales volume
*3 Energy consumption per total floor area

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.

Fundamental Business Issues

Criteria for evaluation: ○ Target achieved (100% or above)　△ Target not achieved but maintained same level or improved from the previous fiscal year　× Target not achieved

Note: Qualitative CSR KPIs with no evaluation axes are assessed on the basis of whether progress was made since the previous fiscal year.

Materiality	CSR KPIs	FY2019 Major Outcomes	Evaluationality
Creating a lively organization	Number of employees working 60 to 80 hours of overtime per month FY2019 reduction target: 50% from FY2017 level^*1	Increased the number of employees working 60 to 80 hours of overtime per month by 42% from the FY2017 level * Including increased overtime with the response to COVID-19.	×
Enhance the teleworking system and expand its application to more workplaces^*1	Replaced mobile personal computer terminals for all employees Prepared environment for no limitations on where employees work by introducing the WebTV conference system and through paperless procedures and electronic decision making.	〇
Maintain the ratio of employees receiving health examinations, which are the foundation for health management, at 100%.	The ratio of employees who received health examinations was 100%	〇

Materiality

CSR KPIs

FY2019 Major Outcomes

Evaluationality

Creating a lively organization

Number of employees working 60 to 80 hours of overtime per month
FY2019 reduction target: 50% from FY2017 level^*1

Increased the number of employees working 60 to 80 hours of overtime per month by 42% from the FY2017 level

* Including increased overtime with the response to COVID-19.

Enhance the teleworking system and expand its application to more workplaces^*1

Replaced mobile personal computer terminals for all employees
Prepared environment for no limitations on where employees work by introducing the WebTV conference system and through paperless procedures and electronic decision making.

〇

Maintain the ratio of employees receiving health examinations, which are the foundation for health management, at 100%.

The ratio of employees who received health examinations was 100%

〇

*1 Non-consolidated basis.

Materiality	CSR KPIs	FY2019 Major Outcomes	Evaluationality
sound stakeholder relationships	Promote operational improvements based on customer feedback and customer satisfaction surveys	Customer feedback: 8,234 comments Identified and analyzed operational improvement issues based on customer feedback Expanded initiatives and services related to security and safety, household appliances, and food and health	〇
	Conduct dialogue with shareholders and investors based on the Corporate Governance Code	Hosted briefings for individual investors, and tours of facilities Held individual meetings with domestic and overseas institutional investors and analysts Provided regular feedback to management on the content of dialogues with shareholders	〇
	Develop and expand social contribution programs toward resolving social issues	Participated in and cooperated with local events and volunteer activities Held events and hands-on programs related to disaster countermeasures, and disseminated information through our museums and on our website Conducted events related to climate change countermeasures and biodiversity conservation, and hands-on environmental education programs School classes taught by employees 614 classes attended by 18,926 students Training for teachers 51 sessions attended by 1,377 teachers Attendance at parasports events 3 events attended by 1,170 participants Hands-on educational field trip programs (Universal Challenge) 3 times, attended by 326 participants	〇

Materiality	CSR KPIs	FY2019 Major Outcomes	Evaluationality
Achieving our public mission as an energy company	Respond correctly to trends in personal information protection in Japan and overseas	Conducted e-learning for all Tokyo Gas Group employees regarding the strengthening of the protection of personal information (23,141 participants) Provided training by job level and outside training to establish thorough compliance with rules governing the management and use of personal information	〇
Achieving our public mission as an energy company	Conduct a CSR survey for supply chain management and analyze the results	Conducted a CSR survey on 513 suppliers (response rate 90.6%) and analyzed the results	〇

Materialities

The Tokyo Gas Group's Sustainability

How We Implement CSR