Introduction
CEO’s Message
How We Create ValueBusiness Strategy
Corporate Strategy
Financial Data

Corporate Strategy

Introduction
Contents

CEO’s Message

How We Create ValueThe Value Creation Process
Promoting Sustainability and Material issues

Business Strategy
Compass2030 & Compass Action
Compass Transformation 23-25
Introduction of Internal Companies
CFO’s Message

Corporate Strategy
Sustainability
Responding to Climate ChangeD isclosure based on TCFD
recommendations
Energy Security
Human Capital Management
Corporate Governance

Financial Data

Web Site
Investor Relations Website
Investors’ Guide(Financial Data and Industry Data)
Financial Results Presentation Materials
Financial Results Bulletin
Corporate Governance Report

40

Tokyo Gas Group Integrated Report 2023

Sustainability Factbook

Introduction

Sustainability
Responding to Climate Change—Initiatives for a Decarbonized Society—2030 Target

e-methane

1%deployed

Hydrogene-methane

CNL

Highly efficient equipment,
Smart energy network

Renewable energyof 6 mn kW

Toward adecarbonizedsociety

Bio-derived energy

Decarbonization of gas and electricity
Renewable energy

Renewable energy

solar , wind power

Offshore wind power

Transition period
CO 2 emissions

CO2 reduction contribution results andtargets (compared to FY2013)
2022
2025
2030
Domestic

6.35 mn tons

Domestic
andoverseas

12 mn tons

Breakdown of 2030 target of 17 mn tons
Category

Major initiatives

25%

Fuel switching

Low carbonization field 15% High-efficiency equipment
Domestic
andoverseas65%

Decarbonization field

17 mn tons

35%

of high-efficiency
25% Introduction
LNG-fired power generationof renewable energy
15% Introduction
and new energy
of non-fossil fuel20% Utilization
certificates

Concept and calculation method of reduction effect (example)

Total CO2 emissionsof society

Net-zero CO2
The Tokyo Gas Group’s
CO2 emissions*1(Scope 1, 2, 3)

2022

Net-zero CO2 from our activities*2

2030*1 Including the amount of absorption (CCUS and forests) and offsetting by carbon credits*2 CO2 emissions from city gas production facilities, buildings we use, and corporate vehicles

2050

Financial Data

Corporate
emissionsincrease

Approximately
mn tons(figures for FY2022 result)p.48

Corporate Strategy

Total
emissionsof society
decrease

Business Strategy

CO 2 reduction contribution

Total emissions ofsociety

Sophisticated useof natural gas
Fuel switching

2050

58

(representative example)

Corporate
emissions

2030

How We Create Value

Conceptual diagram of CO2 reduction contribution

2022

CEO’s Message

As a group of energy companies that supports society, the Tokyo Gas
Group will realize a decarbonized society without compromising stablesupply from the present to the medium to long term, even amid
uncertainties surrounding energy such as geopolitical risks.
First in this transition period, we will make sophisticated use ofnatural gas, which has the lowest CO 2 emissions among fossil fuels, invarious forms, and steadily reduce CO 2 emissions of society as awhole. At the same time, we will promote the use of renewable energy
and actively develop technologies for the social implementation of newtechnologies such as e-methane, hydrogen, and bio-derived energy.
We will promote these initiatives on the premise of stable supply, andrealize a responsible transition. By 2030, we will achieve a CO 2
reduction contribution of 17 mn tons.
In addition, beyond 2030, we will continue to contribute to reducing
CO 2 emissions of society as a whole by steadily increasing the amountof e-methane introduced and further expanding renewable energy,
while aiming to achieve net-zero CO 2 in 2050 for the Tokyo Gas Group’s
CO 2 emissions (Scope 1, 2, 3). During this period, we will continue tomake maximum use of our Group’s energy infrastructure and effectively
utilize diverse energy sources to optimize the operation of the entire
energy system in terms of both supply and demand, thereby realizing a
new model for stable supply.

Introduction
Contents

CEO’s Message

How We Create ValueThe Value Creation Process
Promoting Sustainability and Material issues

Business Strategy
Compass2030 & Compass Action
Compass Transformation 23-25
Introduction of Internal Companies
CFO’s Message

Corporate Strategy
Sustainability
Responding to Climate ChangeD isclosure based on TCFD
recommendations
Energy Security
Human Capital Management
Corporate Governance

Financial Data

Web Site
Investor Relations Website
Investors’ Guide(Financial Data and Industry Data)
Financial Results Presentation Materials
Financial Results Bulletin
Corporate Governance Report

41

Tokyo Gas Group Integrated Report 2023

Sustainability Factbook

Introduction

Specific initiatives

Acceleration of the transition

Smart energy network

Contents

Fuel switching

NIIHAMA LNG Co., Ltd., which Tokyo Gas Engineering Solutions Corporation establishedjointly with Shikoku Electric Power Company, Inc., Sumitomo Chemical Co., Ltd.,
Sumitomo Joint Electric Power Co., Ltd., and Shikokugas Co. Ltd., completed
construction of the Niihama LNG terminal and started gas supply in March 2022. By
supplying natural gas to Sumitomo Chemical Ehime Works, and Sumitomo Joint ElectricPower’s Niihama Kita Thermal Power Plant, we expect to reduce CO 2 emissions by
650,000 tons per year in the future by switching from coal, LPG, and heavy oil. We also
supply gas to nearby customers to promote fuel conversion, reduce CO 2 emissions in thesurrounding areas, and contribute to the development of the Shikoku region.

Locations of
LNG terminals
KagawaPrefecture
Tokushima
Prefecture

LNG tank (230,000 kl,
1 above-ground unit)
Manufacturing facilities(LNG vaporization facilities)
Truck shipping facilities
Receiving facilities for LNG carriers

Financial Data

Equipment
overview

Kochi
Prefecture

Corporate Strategy

Ehime
Prefecture

Business Strategy

The Kiyohara Industrial Park Smart Energy Project (Utsunomiya City, Tochigi Prefecture) is an
example of Tokyo Gas Engineering Solutions Corporation building a smart energy network (anoptimal energy system for each area utilizing ICT) in an existing industrial park. This uniqueenergy network comprises a smart energy center that uses mainly gas cogeneration, as wellas private power lines and steam lines, serving seven plants and offices at the park that areoperated separately by three companies. This is designed to supply electricity and heat in ahighly stable and environmentally friendly manner. This has resulted in approximately 20%
energy and CO 2*1 savings, which would be difficult to achieve at individual business sites. The
project represents Japan’s first “integrated energy-saving business serving multiple plants” tosupply electricity and heat to multiple businesses of different sectors in an inland-typeindustrial park, and has been certified by the Minister of Economy, Trade and Industry under
its Certification System for Collaborative Energy Saving Plans*2. The initiative was also
awarded the Chairperson’s Prize for Cogeneration in FY2020, the METI Minister’s Prize forEnergy Conservation in FY2021, and the METI Minister’s Prize for the Global Environment in
FY2023. Going forward, we will continue to work on initiatives in collaboration with eachcompany toward further energy conservation and CO2 reduction.

How We Create Value

Niihama LNG terminal: Promotion of carbon neutrality
and stable supply of energy

CEO’s Message

Kiyohara Industrial Park: Realizing significant energy andCO2 savings through business collaboration*1 R eduction rate of electricity and heat sent from the Smart Energy Center (compared to FY2015, measured in 2020). Crude
oil equivalent approx. 11,500kL/year, CO2 reduction of approximately 23,000t/year*2 A system under which, when multiple business operators are collaborating to implement energy-saving initiatives, theamount of energy saved through the collaboration can be distributed among the business operators in their regular reports
under the Act on the Rational Use of Energy (Energy Conservation Act).

Introduction

CEO’s Message

How We Create ValueThe Value Creation Process
Promoting Sustainability and Material issues

Business Strategy
Compass2030 & Compass Action
Compass Transformation 23-25
Introduction of Internal Companies
CFO’s Message

Corporate Strategy
Sustainability
Responding to Climate ChangeD isclosure based on TCFD
recommendations
Energy Security
Human Capital Management
Corporate Governance

Financial Data

Web Site
Investor Relations Website
Investors’ Guide(Financial Data and Industry Data)
Financial Results Presentation Materials
Financial Results Bulletin
Corporate Governance Report

42

Tokyo Gas Group Integrated Report 2023

Sustainability Factbook

Acceleration of the transition

Carbon-neutral LNG: To meet heat demand

Acceptance

Carbon-neutral
City gas

Manufacture

Customers(use)

Implementation as of March 2023

Supply1 Mechanism for using high-quality voluntary carbon credits
Professional meeting body of top executives
Common among
projects
 ur own riskOassessment
manualAfter procuring credits

Carbon-neutralcity gas consumers

122

Manual based
monitoring
Communication
with customers

CNL buyers alliancemembers77(As of April 30, 2023)

Buildings,
etc.we use

Other buildings used by thecompany
Offsetting of CO 2 emissions of electricity
consumption in some buildings owned by
Tokyo Gas Real Estate Co., Ltd. by using nonfossil fuel certificates (electricity)

City gas
production
facilities

Financial Data eputation riskR
assessment in lightof the manualDouble-checking
by domestic andinternational experts

After procuringcredits

Offsetting of CO 2 emissions of electricity
consumption by using non-fossil certificates(electricity), carbon-neutral city gas (gas), andJ-Credits (heat from district heating and cooling)

2 Tightening of operations
Issuance of supply
certificates tocustomers (image atright)
Third-party
verification totighten operations
Developmentof gas industry
management
guidelines

Corporate Strategy

Tokyo Gas headquarters

Hitachi LNG terminal
Offsetting of CO 2 emissions of electricity
consumption by using non-fossil fuelcertificates (electricity)

Business Strategy

Carbon-neutral
LNG* E Vrest (an EV charging service) and Charge Planner (an EV installation support service for corporations and local
governments)

How We Create Value

Voluntary carbon
credits

The Tokyo Gas Group has been working to reduce CO 2 emissions from our activities bythoroughly conserving energy and introducing high-efficiency equipment. We will further
accelerate these efforts to achieve net-zero CO 2 emissions from our activities in FY2030 forbuildings we use, city gas production facilities, and company vehicles.
Specifically, we will promote the use of non-fossil certificates for energy consumption,
switch to carbon-neutral LNG, and introduce low-emission company vehicles (hybrids, fuelcells, EVs) as our main initiatives, while actively introducing products into our own facilities
that the Tokyo Gas Group will plan to build up as businesses (off-site corporate powerpurchase agreements, EV-related services* ,etc).
In FY2022, we achieved 18% net-zero CO 2 emissions from our activities (using FY2020
as the benchmark) by completing the net-zero conversion of our headquarters andoffsetting electricity consumption by using non-fossil certificates (electricity) for otherbuildings we use as well as some city gas production facilities. Going forward, we willcontinue and expand our efforts, aiming for a 60% achievement rate for FY2025 throughnet-zero-related initiatives at city gas production facilities.

CEO’s Message

Carbon-neutral LNG (CNL) is LNG for which the greenhouse gases emitted in theprocesses from natural gas exploration to combustion have been offset by carbon credits(carbon offsets) generated from environmental protection projects carried out in emerging
countries and elsewhere. In addition to reducing greenhouse gases emissions on a global
scale, these environmental conservation projects are also related to SDG goals, such as
creating local jobs and protecting biodiversity, and the use of CNL will contribute to therealization of a sustainable society.
The Tokyo Gas Group recommends CNL to its customers to meet their heat demand in
addition to promoting energy conservation and introducing renewable energy, and CNL iscurrently being used by more than 120 customers. As the rules for CO 2 credits are currently
in the process of being developed, our Group is working to ensure customer trust by
1 improving the quality and transparency of credits and 2 tightening operational
procedures, including quantity control.

Initiative to achieve Net-zero CO2 emissions from our activities

Introduction

Specific initiatives

Hamamatsucho headquarters building

Introduction
Contents

CEO’s Message

How We Create ValueThe Value Creation Process
Promoting Sustainability and Material issues

Business Strategy
Compass2030 & Compass Action
Compass Transformation 23-25
Introduction of Internal Companies
CFO’s Message

Corporate Strategy
Sustainability
Responding to Climate ChangeD isclosure based on TCFD
recommendations
Energy Security
Human Capital Management
Corporate Governance

Financial Data

Web Site
Investor Relations Website
Investors’ Guide(Financial Data and Industry Data)
Financial Results Presentation Materials
Financial Results Bulletin
Corporate Governance Report

43

Tokyo Gas Group Integrated Report 2023

Sustainability Factbook

Electric power

Innovation for a decarbonized society
Efforts toward commercialization of floating
offshore wind power generation business

Aiming for urban decarbonization with e-methaneHydrogen production
from renewable energy
sources

CO 2 emissions frompower plants

Use of city gas

Re-emitted
during use
CO 2

Atmospheric CO2 does not increase
because it is recovered and reused.

Emitted andrecovered
CO 2

1

Decarbonizationin the heatsectorContribution to the realizationof carbon-neutrality in Japan

Value

Reductionof additionalsocial costs

Reduction of the burden
on the public (customers)

Value

4

Improved energy
security

Reduction ofcountry risk

Overseas
expansionof Japanesetechnologies

Toward global
carbon-neutrality

Scale up

24

25

26

27

28

Social implementation

29

30

31

32

33

Innovative technology prototypes

In-house demonstration
Construction

Innovative technologies
Small-scale demonstration

Domestic small-scale demonstration

Suitable site selection FS

FEED FID Construction

Approx.
1.6 mnm 3/yearDomestic regional cooperationand on-site use

Innovative technologies
Application

Suitable site selection FS

FEED FID Construction

Socialimplementation

Approx. Construction of large-scale
80 mnoverseas production andm 3/year
supply chains

Overseas

1% deployed

Financial Data

Domestic

Innovative technology: Hybrid Sabatier, PEMCO 2Approx.
50,000m 3/year

Corporate Strategy

23

Selection and evaluationof innovative technologies

3

Business Strategy

Value

Establishment of technology

22

CH 4

CEO’s Message

How We Create ValueThe Value Creation Process
Promoting Sustainability and Material issues

Value provided by e-methane

2

2021

CH4

Methanation

Value

In 2022, the Tokyo Gas Group started a domestic
demonstration using the Sabatier reaction, an existingmethanation technology, for the social implementation of
e-methane.
We aim to establish a large-scale overseas production andsupply chain by FY2030 and introduce e-methane for 1% of
our Group’s domestic city gas demand (approx. 80 mn m3),
and we are currently promoting specific projects.
At the same time, we are working to improve efficiency
and reduce costs through the development of innovative
methanation technologies utilizing the Green Innovation
Fund project.

e-methane

Hydrogen
H2

How We Create ValueThe Tokyo Gas Group is accelerating Initiatives for the practical application of e-methane, acarbon-neutral gaseous energy. e-methane is produced by methanation, a technique forsynthesizing methane which is the main component of city gas, through a chemical reaction
between the raw materials hydrogen and CO 2. In the production of e-methane, CO 2
recovered from exhaust gases is reused as a raw material, so even if CO 2 is emitted during
combustion, there is substantially no increase in atmospheric CO 2. In addition, we plan to
manufacture hydrogen, another raw material, using renewable energy, so e-methane can besaid to be a carbon-neutral energy.
e-methane has the following values: 1 decarbonization in the heat sector, 2 reduction ofsocial costs through the thorough utilization of existing infrastructure, 3 improvement ofenergy security through reduction of country risk, and 4 overseas expansion of Japan's
unique technologies.

Roadmap for social implementation

Contents

CO 2 emission reduction effect of e-methane

p.29

CEO’s Message

Gas

Introduction

Specific initiatives

Introduction

Business Strategy
Compass2030 & Compass Action
Compass Transformation 23-25
Introduction of Internal Companies
CFO’s Message

Corporate Strategy
Sustainability
Responding to Climate ChangeD isclosure based on TCFD
recommendations
Energy Security
Human Capital Management
Corporate Governance

Financial Data

Web Site
Investor Relations Website
Investors’ Guide(Financial Data and Industry Data)
Financial Results Presentation Materials
Financial Results Bulletin
Corporate Governance Report

44

Tokyo Gas Group Integrated Report 2023

Sustainability Factbook

Introduction

Specific initiatives

Innovation for a decarbonized society

feasibility study on a project to produce e-methane in Texas or Louisiana, liquefy it at theexisting Cameron LNG facility, and transport it to Japan utilizing other existing
infrastructure, including LNG ships and receiving terminals in Japan. The targeted
e-methane production volume is 130,000 tons per year to start in 2030.

Overseas (US)Domestic

CO2 from emittersor pipelines

e-methane production(construction & operation)

Liquefaction at the existing
Cameron LNG facility

International transportation byexisting LNG ships*1 L
 ocal partners to be considered as necessary*2 H 2 procurement from external sources to be assessed(both blue & green H 2
in initial production period)

CO 2
*2

H2

Candidate areas

1

Procurement from external sources

Candidate areas

2
3

Candidate areas: Texas and Louisiana, US

Candidate areas3 ccess to the existing Cameron LNG facility
AExistance of CO2 & H2 pipelines
High potential of onshore wind powerE xistance of H 2 pipelines
 igh potential of PV & onshore windH
power
Existance of CO 2 pipelines

1

2

Financial Data

Texas and Louisiana, the candidate states for e-methane production
sites in this study, have a high potential for sustained availability ofabundant renewable energy and easy access to the existing Cameron
LNG facility, of which Mitsubishi Corporation owns equity. Furthermore,existing pipelines of carbon dioxide and hydrogen are also accessible.

Transportation & distribution byexisting city gas infrastructures

Corporate Strategy

H2O

H 2 production(construction & operation)

Business Strategy

Industrial water or
Water desalination

Contents

CEO’s Message

How We Create ValueThe Value Creation Process
Promoting Sustainability and Material issues

CH 4

H2

Renewable power(development by JV or procurement fromexternal sources)

Tokyo Gas, Osaka Gas,
Toho Gas

Mitsubishi Corporation

The four companies’ JV (+local partner)

How We Create Value

For e-methane’s better visibility, it is effective to promote the e-methane in Japan andoverseas simultaneously and important to establish cost-competitive e-methane supply
chain from overseas where renewable power is accessible at low cost.
In November 2022, Tokyo Gas, Osaka Gas Co., Ltd., Toho Gas Co., Ltd., and Mitsubishi
Corporation have entered into an agreement and commenced to conduct a detailed joint

CEO’s Message

Produce e-methane in the US and transport it to Japan, utilizing Cameron LNG in Louisiana(large-scale overseas social implementation project)

Introduction

Business Strategy
Compass2030 & Compass Action
Compass Transformation 23-25
Introduction of Internal Companies
CFO’s Message

Corporate Strategy
Sustainability
Responding to Climate ChangeD isclosure based on TCFD
recommendations
Energy Security
Human Capital Management
Corporate Governance

Financial Data

The existing Cameron LNG facility
Web Site
Investor Relations Website

Candidates for e-methane production site
CO 2 pipelines
H 2 pipelines

Investors’ Guide(Financial Data and Industry Data)
Financial Results Presentation Materials
Financial Results Bulletin
Corporate Governance Report

45

Tokyo Gas Group Integrated Report 2023

Sustainability Factbook

Introduction

Disclosure based on TCFD recommendations

Introduction
Contents

The Tokyo Gas Group regards the Task Force on Climate-Related Financial Disclosures (TCFD) framework as being an effective way to promote information disclosure and dialogue withstakeholders on climate-related issues. We therefore signed the statement of support for the TCFD, in May 2019. We are utilizing the TCFD recommendations as an framework to assess our

Governance

Strategy

Promoting Sustainability and Materiality

p.16

p.53

* F Y2023 performance indicators related to responding to climate change· CO2 reduction contribution· Net-zero CO2 emissions from our activities· Volume of newly developed renewable power sources in Japan· Volume of newly developed renewable power sources overseas

2.6°C scenario (STEPS)
Scenario that assumes existing policies aremaintained, but that no stronger decarbonization
policies are announced and implemented

Carbon tax will be introduced worldwide*1
Carbon tax per t-CO2:
2022 *a: 3,000 yen, 2050 *c: 30,000 yen
Decrease in total energy supply*1, Increase inrenewable energy ratio*1
SupplyTotal supply: 2021: 624EJ
2050: 532EJ
Renewable energy ratio: 2021: 12%
2050:
70%
MarketIncrease in electrification rate*1
Electrification rate: 2021: 20% 2050: 52%
TransiDemand Progress in renewable energy and energy
conservation markets
tion
Activation of offset market
Advancing development and utilization ofhydrogen, CCUS, and other technologies*1
Utilization rate of hydrogen and hydrogenDecarbonization
derived fuel:technology
2021: 0%2050: 9%
CO2 capture:
2021: 0.0Gt-CO2
2050: 6.2Gt-CO2
Increasing environmental awareness among
Reputation
consumers, financial institutions, and investors

Carbon tax will be introduced in some regions*1
Carbon tax per t-CO2:
2022 *a: 3,000 yen, 2050 *b: 9,240 yen
Increase of total energy supply*1, increase ofrenewable energy ratio*1
Total supply: 2021: 624EJ 2050: 740EJ
Renewable energy ratio: 2021: 12%
2050:
29%
Slight increase in electrification rate*1
Electrification rate: 2021: 20% 2050: 28%
Current status maintained in renewable energy
and energy conservation markets
Offset market remains at the same level
Development and utilization of hydrogen, CCUS,
and other technologies remain at the same level*1
Utilization rate of hydrogen and hydrogenderived fuel:2021: 0%2050: 0%
CO2 capture:
2021: 0.0Gt-CO2
2050: 0.0Gt-CO2
Environmental awareness among consumers, financial
institutions, and investors remains at the same level

Weather disasters intensify to 2030
Increase in non-life insurance premium rate*2
Premium rate: 2021: 100.0%
2050: 130.9%

Weather disasters intensify to 2050
Increase in non-life insurance premium rate*2
Premium rate: 2021: 100.0%
2050: 238.0%

Worldview

Policy and Legal

PhysicalOfficer Remuneration System

p.58

Acute

Source: *1: IEA WEO 2022, *2: General Insurance Rating Organization of Japan
Note: *a: Median carbon prices in 2022 for 60 countries/regions listed in World Bank State and Trends of Carbon Pricing 2022,*b: Median values for countries (Canada, Chile, Colombia, China, Europe, Korea) referenced in the STEPS scenario, *c:Median values for developed countries in the NZE scenario

Financial Data

The performance of key indicators* related to responding to climate change in a period isreflected in incentive remuneration (bonuses) for Corporate Executive Officers, including
those who also serve as Directors (decided by the Compensation Committee inconsideration of the linkage with priority management indicators in the management planfor the relevant fiscal year).

1.5°C scenario (NZE 2050)
Scenario assuming the achievement of net-zero
CO2 emissions by 2050 worldwide throughvarious initiatives for decarbonization

Corporate Strategy

Corporate Governance

The Tokyo Gas Group conducts scenario analysis to qualitatively and quantitatively
understand the impacts of climate change on our business, to assess the resilience ofbusiness strategies, and to consider countermeasures.
The scenario analysis is conducted by assuming the business environment withreference to scenarios published by the International Energy Agency (IEA) and focusing onenergy projects that are expected to be significantly affected by climate change.

Business Strategy

As our governance system, the Board of Directors makes decisions on management
plans, policies, and other matters, including responding to climate change. In addition, we
have delegated the authority to make decisions on business execution to ourRepresentative Corporate Executive Officer and President, which brings speed to
management and focus on monitoring based on reports from Corporate Executive
Officers. The Management (generally meeting weekly), deliberates on matters submitted to
the Board of Directors, as well as important matters related to business execution including
responding to climate change. We also have established the Sustainability Committee,
chaired by the Representative Corporate Executive Officer and President, to share
information within our Group regarding climate change response, and to enable
coordination of the company-wide direction. Furthermore, important matters are reported
to the Board of Directors.

CEO’s Message

Scenario analysis
How We Create ValueThe Tokyo Gas Group recognizes responding to climate change as a key sustainability
issue to be tackled through business activities, and defines responsibly transitioning to a
decarbonized society as one of our material issues

CEO’s Message

response to climate change, and consistently disclosing relevant information on the impact of climate change on our business activities and the measures to be taken.

How We Create ValueThe Value Creation Process
Promoting Sustainability and Material issues

Business Strategy
Compass2030 & Compass Action
Compass Transformation 23-25
Introduction of Internal Companies
CFO’s Message

Corporate Strategy
Sustainability
Responding to Climate ChangeD isclosure based on TCFD
recommendations
Energy Security
Human Capital Management
Corporate Governance

Financial Data

Web Site
Investor Relations Website
Investors’ Guide(Financial Data and Industry Data)
Financial Results Presentation Materials
Financial Results Bulletin
Corporate Governance Report

46

Tokyo Gas Group Integrated Report 2023

Sustainability Factbook

Introduction

Strategy

Introduction
Contents

Risks/opportunities and countermeasures

Taking into account the environment surrounding the Tokyo Gas Group’s business, we identifiy risks and opportunities, evaluate them separately in the short to medium term through 2030 andCategory

Introduction of carbon pricing

Expansion of non-fossil
energySupplyside
Expanding needfor natural gas as atransition energy

MarketDemandside

Technology

Advancement of decarbonization
technologies such as renewableenergy, e-methane, hydrogenand CCUS

Reputation

Focus on low carbon anddecarboinzation in investment
standards

Acute

Extreme weather intensification

Increased costs for city gas and thermal power generation projects

Risks

Decrease in sales of city gas and thermal power

Opportunities
Risks
Opportunities
Risks
Opportunities
Risks
Opportunities
Risks

Expansion of development of renewable power sources and increase insales volume
Soaring LNG prices

Sophisticated use of natural gas
 witch from coal, oil, etc. to natural gas as fuel, introduce
Scogeneration systems, develop smart cities, strengthen
resilience in Japan and global markets.
Increase provision of carbon-neutral LNG (CNL)E xpand use of natural gas for balancing renewable power
CCUS

Decarbonization of gas and electricity

Increase in city gas and natural gas sales volume due to progress in fuelswitchingDecrease in city gas sales volume due to progress in energy
conservation and electrification
Expanding demand for services that utilize decentralized resources(renewable energy, storage batteries, demand response)
Decrease in sales of city gas and thermal power
Profit expansion through renewable energy, e-methane, hydrogen, andCCUS
Decrease in financing capacity of fossil fuel-related businesses

Opportunities

Increase in financing capacity of decarbonization-related businesses

Risks

Increase in costs for measures against wind and flood damage, risk of
shutdown of operations if production equipment is damaged

Opportunities

Measures taken by the Tokyo Gas Group

Short toMedium tomedium term long term

Expansion of decentralized energy due to disaster prevention andresilience needs

methanation and commercial use ydrogen: Establish practical, affordable hydrogenHproduction technologies
E xpand renewable power sources (Increase solar, wind &biomass power generation)
Achieve zero emissions in our thermal power generation

Infrastructure development (resilience)
Enhanced resilience in the natural gas infrastructureEnhanced establishment of a water hazard-resilient public
utilities (i.e., disaster countermeasures for LNG terminals
and power stations) and full preparation for BCP
E xpanded use of decentralized energy systems thatare highly resilient, such as smart energy networks,
cogeneration systems, and ENE-FARM (home fuelcells), etc.

as significant risks and integrated into the Enterprise Risk Management (ERM) system.
In addition, the Risk Management Committee, which was established with the aim of
improving the level of ERM management, regularly checks the status of the development
and operation of the ERM system, including the review of risks, and reports it to acommittee that supports rational decision-making by Corporate Executive Officers.

Financial Data

Risk management
The Tokyo Gas Group defines significant risks as those that are deemed to have asignificant impact on its business in its risk management policy that defines the basic
matters of risk management. The policy is reviewed each fiscal year and daily monitoring is
conducted to check for signs of risk. These significant risks are set by identifying andprioritizing the risks specific to each division and subsidiary for each fiscal year for theentirety of the Tokyo Gas Group business, and risks related to climate change are also set

CEO’s Message

How We Create ValueThe Value Creation Process
Promoting Sustainability and Material issues

e- methane: Transition to large-scale & high-efficiency

Corporate Strategy

PhysicalChanges in energy
consumption structure

Risks

High financial impact

Business Strategy

Transition

Business impact

How We Create Value

Policy andLegal

Factors

CEO’s Message

in the medium to long term through 2050, and then consider countermeasures. In the short to medium term, we will promote sophisticated use of natural gas, and in the to medium term, we willachieve decarbonization of gas and electricity.

Business Strategy
Compass2030 & Compass Action
Compass Transformation 23-25
Introduction of Internal Companies
CFO’s Message

Corporate Strategy
Sustainability
Responding to Climate ChangeD isclosure based on TCFD
recommendations
Energy Security
Human Capital Management
Corporate Governance

Financial Data

Web Site
Investor Relations Website
Investors’ Guide(Financial Data and Industry Data)
Financial Results Presentation Materials
Financial Results Bulletin
Corporate Governance Report

47

Tokyo Gas Group Integrated Report 2023

Sustainability Factbook

Indicators and targets

Concept and calculation method of reduction effect (example)

12 mn tons

2030

17 mn tons

2050 Net-zero CO		2

After fuel switching

Calculation Development volume
methodfactor difference
Baseline

High-efficiency equipment

2025

100% achieved
6 mn kWNatural gas transaction
volume2030

20 mn tons

e-methane introduction
volume2030

2023–2025

Scope 3

Other

92.0%

1.2%

Raw material
procurement(electricity
and LNGprocurement)

27.4%

t-CO 2 e

34.8%
Power generation

58.6%

Existing
thermal power

Calculation Power generation difference in CO2
methodemission factor from thermal power average

After introduction

Baseline

CO2 reduction
contribution

Reduction ofoperation ofexisting thermal
power plants

After introduction*The Tokyo Gas Group’s CO2 emissions remain unchanged

CEO’s Message

How We Create ValueThe Value Creation Process
Promoting Sustainability and Material issues

Business Strategy
Compass2030 & Compass Action
Compass Transformation 23-25
Introduction of Internal Companies
CFO’s Message

Corporate Strategy
Sustainability
Responding to Climate ChangeD isclosure based on TCFD
recommendations
Energy Security
Human Capital Management
Corporate GovernanceDecarbonization field
Reduce CO2 emissions by increasing the
Perspective amount of power generated by renewable
on reduction energy that does not emit CO2 andeffects
reducing the amount of power generated
existing thermal power plants
Calculation Power generation thermal power
methodaverage coefficient
Baseline

Before introduction

Average thermal power generation

Average thermal power generation

Financial Data

8.0%

High-efficiency
thermal power

Reduce CO2 emissions by increasing theamount of power generated by highPerspective
efficiency LNG-fired power plants andon reduction
reducing the amount of power generated
effects
by existing thermal power plants that emit
relatively large amounts of CO2

Low CO2 emissions
when generating
electricity

Existing
thermal
power

63.4%

Scope 1+2

After introduction

Expand introduction of renewable energy

Existing thermal
power

t-CO 2 e

4.654 mn

CO2 reduction
contribution

Before introduction

Emission volume

58.169 mn

Low carbonization field

3.2%
Districtheating andcooling, etc

reduction

Corporate Strategy

2.4%

Offices 1.0%
City gas production
facilities

Calculation Number of units introduced
methodper unit

Introduction of high-efficiency LNG-fired power generation

Before introduction

Existing thermal
power

Other

Perspective Reduce CO2 emissions by upgradingon reduction low-efficiency natural gas equipment toeffects
high-efficiency equipment

Conventional-performance gas appliances

Emission volume

GHG emissions: FY2022 results

Progressin energy
conservation

Baseline

1% deployed (80 mn Nm3/year)

230 bn yen (3-year total)

CO2 reduction
contribution

Fuel before conversion such as heavy oil

Business Strategy

2030

Decarbonization investment
amount

2.2 mn kW

2030

CO2 emission

Low carbonization field

Highefficiency
equipment

Renewable energy
transaction volume

60% achieved

Low-efficiency
equipment

2025

Emission volume

Net-zero CO 2 emissions
from our activities(vs. FY2020)

Use of soldproducts(city gas
combustion)

Before fuel switching

Reduce CO2 emissions by shutting
Perspective
down facilities that use coal and oil andon reduction
replacing them with facilities that use
effects
natural gas and emit relatively low CO2

How We Create ValueGHG emissions(Scope 1, 2, 3)

2025

Replacement withclean natural gas

CEO’s Message

CO 2 reduction contribution(vs. FY2013)

Contents

Low carbonization field

Natural gas

Targets

CO2 reduction
contribution
Oil

Indicators

Fuel switching
Emission volume

In order to realize a decarbonized society, we have set the following indicators and targets
to contribute to reducing CO 2 emissions for society as a whole and to promote progressand management of initiatives, such as reducing the Tokyo Gas Group’s CO 2 emissions(Scope 1, 2, 3).

CO2 emissions of society as a whole
CO2 emissions by the Tokyo Gas Group

Introduction

CO2 reduction contribution

Introduction

Financial Data

Web Site
Investor Relations Website
Investors’ Guide(Financial Data and Industry Data)
Financial Results Presentation Materials
Financial Results Bulletin
Corporate Governance Report

48

Tokyo Gas Group Integrated Report 2023

Sustainability Factbook

Introduction

Energy Security
For a stable energy supply

Power procurement

We have improved supply stability and increasedtransportation capacity by looping high-pressure gas
pipelines in the Northern Kanto region. In order tominimize the damage caused by a major earthquake,
we have adopted structural designs, materials, andsafety technologies with excellent earthquake resistancefor manufacturing and supply facilities. The Supply
Command Center monitors and controls the statusof manufacturing and supply facilities 24 hours a day,365 days a year. We will systematically carry out the
replacement of old gas pipes and conduct regularinspections for gas leaks.

Tokyo
Cove Point

CameronMozambique

New LNG Project
Existing LNG Project

Malaysia

Disaster-resilient everyday lives andcity development

Pluto
GorgonIchthysNWS

We are expanding the introduction of decentralizedenergy systems such as ENE-FARM and gas
cogeneration systems, as well as formation of smart
energy networks for heat and electricity used in the
ICT-managed areas. We are thereby promoting thecreation of cities with enhanced disaster preventionfunctions and assurance of the continual energy
supply even in an emergency.

Queensland Curtis

Safety measures

Tokyo Gas Network

The Safety Command Center of Tokyo Gas is inoperation 24/7 to accept gas leak reports. When such
notification is received, Gaslight 24 (our emergency
reaction team) promptly responds and dispatches
technical staff even at night or on holidays. Periodic
security inspections* are conducted at least once every
four years for all customers using city gas.

Complete earthquake
protection

Tokyo Gas Network

We have adopted preventive measures to minimize
earthquake damage, such as the use of PE pipes for
low-pressure gas pipelines. As emergency-preparation
measures, we have expanded the installation of
microcomputer meters that automatically shut off gas supply
during earthquakes of seismic intensity of five or higher, andhave divided the medium- and low-pressure pipelines into
multiple blocks so as to minimize gas supply cut-off areas
and to prevent secondary disasters. As recovery measures,
we have established a thorough disaster prevention
system that is capable of monitoring seismometers which
are installed with high locational density, and controlling
gas shutoff. This system enables us to grasp the damage
situation of each block where gas supply has been stopped,
and to determine the most appropriate recovery method.

* The leakage inspection of the inner tube is carried out by the pipeline business operator, and the inspection of
consumer equipment is carried out by the retail business operator.

Procure LNG

LNG carrier

Send gas

Produce gas and electricity
LNG receiving
terminal

Renewable Thermal power
energygeneration

To customers
Power gridGas diffusion tower

Radio tower

Areal governor(pressure regulator)

Financial Data

Sustainably utilize existing infrastructure throughout the city gas and LNG
supply chains by aiming for decarbonization of gas-based energy throughpractical application of e-methane

Corporate Strategy

In terms of electric power, in addition to procurement through theoperation of natural gas-fired power plants with high-efficiency
combined cycles utilizing LNG procurement capabilities andfacilities such as LNG terminals and pipelines, as well as ininitiatives to develop and acquire solar, wind and biomass
power plants in Japan and overseas, and strengthening ourcompetitiveness in the development of renewable power sources
and procurement capabilities.

Tokyo Gas Network

Business Strategy

Since the start of LNG imports in 1969, Tokyo Gas has
diversified its procurement sources to encompass 13
suppliers projects in four countries, reducing procurement
risks. We have also enhanced procurement flexibility throughdiversification of contract contents, by making contracts
based not only on crude oil price indicators, but also on U.S.
natural gas prices and coal prices, and making contracts withno destination restrictions. Through strategic partnerships
with domestic and overseas companies, we have establishedan LNG network that connects the Asian, North American,
and European markets, thereby increasing LNG transport
efficiency and contract flexibility, and reducing costs.
Furthermore, in 2020, we established TG Global Trading Co.,
Ltd., a subsidiary responsible for the LNG trading business, topromote more flexible LNG trading.

Enhance infrastructure
resilience

Sakhalin

How We Create Value

Flexible LNG procurement

Customers’ safe and reliable use ofenergy services

Stable supply

Stable procurement

CEO’s Message

safety, we are strengthening disaster countermeasures based on our experience of theGreat Kanto Earthquake, which marks its 100th anniversary this year, including thecompletion of a disaster prevention system that utilizes high-density seismometers.
Going forward, towards the realization of a decarbonized society, we will promote thepractical use of e-methane in addition to renewable energy, and take initiatives for the
decarbonization of gas-based energy making maximum use of the existing energy
infrastructure. Through such initiatives, we will respond to the diversifying needs of ourcustomers, such as stability, environmental friendliness, and flexibility, and create social
values such as the realization of a decarbonized society and safety and security.

For more than 130 years since its foundation, the Tokyo Gas Group, as an energy company
group that supports social infrastructure, has been dedicated to ensure stable procurement,
stable supply, and ensuring safety, providing our customers with safe and secure living.
With regard to stable procurement, in addition to diversifying our LNG procurement
sources and schemes, and strengthening trading and management functions, we are also
working to strengthen power sources such as renewable energy. For stable supply, in
addition to strengthening infrastructure, we are working to improve resilience functions
utilizing natural gas, such as by expanding distributed energy systems. In terms of securing

Introduction
Contents

CEO’s Message

How We Create ValueThe Value Creation Process
Promoting Sustainability and Material issues

Business Strategy
Compass2030 & Compass Action
Compass Transformation 23-25
Introduction of Internal Companies
CFO’s Message

Corporate Strategy
Sustainability
Responding to Climate ChangeD isclosure based on TCFD
recommendations
Energy Security
Human Capital Management
Corporate Governance

Financial Data

Microcomputer meter(gas meter)

Web Site
Investor Relations Website

LNG tank

High-pressure
gas pipe

Gas holder

Mediumpressure
gas pipe

Supply CommandCenterSI sensor (seismometer)Low-pressure
gas pipe

Investors’ Guide(Financial Data and Industry Data)
Financial Results Presentation Materials
Financial Results Bulletin
Corporate Governance Report

49

Tokyo Gas Group Integrated Report 2023

Sustainability Factbook

Introduction

Human Capital Management

Initiatives for FY2023–2025

In order to confront the three challenges outlined inCompass2030, we set forth “Three Promises” to ourcurrent and future colleagues. By leveraging thestrengths of each of our colleagues, we aim to becomea corporate group that strives to create greater value
from the chemical reactions created by diversity. In
order to fulfill these promises towards 2030, we aredeveloping a human resources strategy andimplementing initiatives.

In order to realize a flexible corporate structure that is resilient to change, we will implement human capital management in waysthat provide a real sense of our growth, both as individuals and as a Group.
Ideal human resources

We will produce work that will have amajor impact on society.

We will emphasize the self-fulfillment ofeach person.

Turning diversity into a strength
Knowledge/experience diversity, equity, and inclusion
 romote utilization of women and young employees (increasePplacement in positions of responsibility, promote childcare leave formen, use femtech to enhance understanding) and workstyles notconstrained by time/place
Actively recruit experienced people globally and increase theirplacement in positions of responsibility

Growing by taking on challenges
Promote professional talent growth/challenge-taking
and self-led career formation
P rovide opportunities to build career/skills in ways
reflecting employee aptitude and will, using talentmanagement systems and data
Encourage employees to personally explore opportunities bypromoting/expanding side jobs, internal recruitment, andinternal entrepreneurialism

We believe in the potential of each individual
and will support each employee’s activities.

Where we want
to be in 2025

To build a system that can respond to change, we haveworked on creating systems that accept, develop, andencourage wide range of diverse talents. This includes
the introduction of a talent management system, reemployment of former employees, company-specifichiring, and the implementation of one-on-one meetings.

Promotingself-learning

Promoting childcare leave taking by
men & utilization of women

Improvingengagement

Reskilling/
retraining
participation rate:
100%*1

Percentage of male employees taking
childcare leave of at least one month:100%
Ratio of women in management: 11%

Regularly measureengagement indicatorsand reflect results inimprovement measures*1 R
 ate of participation in training and certification programs, etc. for acquiring/refreshingskills (including reskilling)P romote businessgrowth in new areasP romote thecreation of solutions
that meet thevalues of diverse
customers

Social value
Organizations andassociates who cocreate the futureImprove theprofessional skills ofgroup members
A n organization
where diverse humanresources engage infriendly rivalry
R ealize a spirit ofchallenge and wellbeing for each andevery Group member

Financial Data

Initiatives for FY2020–2022

Ability to generate
long-term,
sustainable sourcesof growth

Corporate Strategy

 uman resources who canHlearn autonomously andcontinue to take on challenges
without being bound by
conventional wisdom

We will create a venue for encounterswith diversity and friendly competition.

 lignment of HR planning, optimal placement, andA
reskilling (skills/competencies for contributing to DX andbusiness development in decarbonization, overseas operations,etc.) with management strategy
Acquisition of high-level specialists and talent systemdevelopment, including through M&A

Business Strategy

 uman resources whoH
can understand thediverse values of society

The Tokyo Gas Group will be a gathering
place for diverse thinking and experience.

3

Economic value

Realize a flexible corporate culture resilient to change uman resources withH
expertise in expanding andevolving businesses

We commend a spirit of taking on challenges
and the ability to learn from mistakes.

2

Value creation

Strengthen ability to address talent shifts and business changes

Three Promises

1

Actions for FY2023–25
Strategic talent placement

How We Create Value

Compass2030 “Three Promises”

CEO’s Message

At the Tokyo Gas Group, we believe that the source of corporate vitality is people, and that the company will not grow without the growth of its employees. It is each and every member of ourGroup who will bring about the transformation laid out in Compass Transformation 23–25. By exercising human capital management aligned with the management strategy, we will achievesustainable improvement of our enterprise value.

Introduction
Contents

CEO’s Message

How We Create ValueThe Value Creation Process
Promoting Sustainability and Material issues

Business Strategy
Compass2030 & Compass Action
Compass Transformation 23-25
Introduction of Internal Companies
CFO’s Message

Corporate Strategy
Sustainability
Responding to Climate ChangeD isclosure based on TCFD
recommendations
Energy Security
Human Capital Management
Corporate Governance

Financial Data

Web Site
Investor Relations Website
Investors’ Guide(Financial Data and Industry Data)
Financial Results Presentation Materials
Financial Results Bulletin
Corporate Governance Report

50

Tokyo Gas Group Integrated Report 2023

Sustainability Factbook

Introduction

Strategic talent placement
Acquisition of specialized human resources
Percentage of mid-career hires in
the hiring of regular workers
20

19%
16%

15
10
7%

Agile
development

0(FY)

We are working on DX talent training with the aim of enabling each and every employee toutilize digital technology to transform business and operations. We have set three levels of
DX talent and are promoting their development: “DX leaders” who can utilize digitaltechnology in their work, “core DX talent” who can promote DX projects at the core, and“high-level DX talent” who can lead the development of digital platforms necessary for DX
promotion using advanced technology.

2020

2021

2022

Digitalization

StreamliningofbusinessAI
DatavisualizationNewbusinesses

ArchitectureDataanalysis

Businesstransformation

Web

Apps

High-level DX talent

Active participation of human resources with expertise in growth areas

DX leaders

Global Business Company
Tokyo Gas Asia Pte. Ltd.

Tokyo Gas Real Estate Investment
Advisors Co., Ltd.
President and Representative Director

NAKAMURA Takuya

OTOMO Manabu

I have worked in project financeand financial advisory in overseas
projects at a bank for nearly 10
years. Since joining the company
in 2019, I have been engaged inoverseas business development
and support, utilizing my skills infinancial, legal, and technical risk
analysis, contract negotiation,and process management andcorporate value evaluation in M&A,
as well as the network that I built
when I was stationed overseas.
I am also working to contributeto raising the level of humanresources in overseas fields bysharing my own experiences.

After working for 16 years in theoperation and new opening oflarge-scale commercial facilities
at a company that develops andoperates commercial facilities, I
transitioned to a real estate fundmanagement company in 2007.
I joined our company, whichprimarily focuses on real estate
investment management business,in 2017 and have been serving as
the representative since 2020. We
have set a new goal of launching a
private REIT within this fiscal year,
and I am working diligently every
day to achieve this goal.

DX Development Education
Practical education andon-the-job training

Enhancing skills inpractical work
Practical experience incollaboration with high-level DX talent

Career recruitment ofexperienced
professionals

In the DX Basic Education program aimed at developing DX leaders, the participants
select appropriate programs that can be used in their work from among a number ofprograms including Excel, AI, web analysis, and robotic process automation (RPA). In
FY2022, we certified approximately 1,000 DX leaders, and are aiming to certify 3,000
people by FY2025.
In the DX Development Education program aimed at fostering core DX talent, we set
up three specialization categories: business transformation, data science, and digitalengineering. In addition to e-learning andclassroom training, participants spend
several months working under theguidance of instructors to solve
problems in their practical work which
they have set for themselves.

Financial Data

TANIGUCHI Chieko
I have engaged in the renewableenergy business for about 10 years,
involved in investment evaluation inbusiness development and income
and expenditure management
after operation commencement.
After joining the company in 2022,
I have been responsible for theoperation and management ofsolar power plants and biomass
power plants, working towards theplants’ profitability on the premiseof stable operation. Leveraging mystrengths in both development andmanagement, I will devote myself tocontribute to our business operationfrom the perspective of overall
optimization.

DX Basic Education
Acquisition of basic knowledge
and practical training in digitaltechnology utilization

Corporate Strategy

Green Transformation Company
Renewable Energy Business
Development Dept.

Core DX talent
Able to take the lead in promoting DX projects by leveraging
their respective expertise

Business Strategy

Able to contribute to businessefficiency and innovation by utilizing
basic digital knowledge and skills

Able to lead transformational
development by making full use ofadvanced programming and digitaltechnology

How We Create Value

5

Contents

DX talent training
CEO’s Message

In promoting business in growth areas under Compass
Transformation 23–25, we are actively recruiting
human resources who have expertise in the relevant
areas and can immediately lead the business. We willcontinue to strengthen our proactive acquisition toaccelerate business promotion, as the increase in thenumber of employees with expertise and diverse
experience not only enhances the skills of existing
employees, but also contributes to strengtheningorganizational capabilities.

Introduction

CEO’s Message

How We Create ValueThe Value Creation Process
Promoting Sustainability and Material issues

Business Strategy
Compass2030 & Compass Action
Compass Transformation 23-25
Introduction of Internal Companies
CFO’s Message

Corporate Strategy
Sustainability
Responding to Climate ChangeD isclosure based on TCFD
recommendations
Energy Security
Human Capital Management
Corporate Governance

Financial Data

DX talent (target for 2025)

3,000 persons
High-level/core DX talent: 500 persons
DX leaders:

Web Site
Investor Relations Website
Investors’ Guide(Financial Data and Industry Data)
Financial Results Presentation Materials
Financial Results Bulletin
Corporate Governance Report

51

Tokyo Gas Group Integrated Report 2023

Sustainability Factbook

Support for self-led career formation

We have positioned active participation by women as the starting point for diversity, equity,and inclusion, and are promoting the creation of opportunities for women to play activeroles, including promotion to important positions, support for career formation, provision of
information on various role models, and promotion of flexible work styles. In addition, fromthe perspective that the diversification of work styles of men, who make up the majority of
our employees, will lead to a major cultural change, we encourage male employees to takechildcare leave and to diversify their perspectives. In FY2022, the percentage of spousalmaternity leave taken at Tokyo Gas was 100%, and the percentage of men taking childcare
leave is also increasing year by year.

We provide career formation support so that each employee can draw their own vision andplay an active role as a professional. From FY2022, we have introduced company-wide
one-on-one meetings, with the aim of aligning the direction of growth between supervisorsand subordinates. In addition, we are strengthening the provision of opportunities for
employees who take on challenges to excel and grow in diverse fields by enhancing internal
recruitment system that allows employees to move to workplaces and jobs of their choice,open recruitment training that supports self-directed learning, and self-development
support measures.

Global recruitment

Promoting side jobs

As the Tokyo Gas Group’s business expands overseas, it is extremely important to recruit
local human resources who have an in-depth understanding of the actual situations in thetarget regions, in order to promote our overseas business. From this perspective, we are
actively promoting local recruitment at each of its overseas bases. The number of locally
hired employees has increased from 42 at the end of FY2018 to 217 at the end of FY2022(including acquisition of local companies), and their talents are utilized in a wide range offields including project development, business operation management, technology, legal,
and accounting. The Tokyo Gas Group will continue to recruit human resources globally.

We believe that in order to take on challenges in new
business areas and provide new solutions, it is important
not only to develop human resources within the company
but also to learn through business, including outside thecompany. As such, we have revised our approach tosupporting side jobs as part of our personnel system
reforms to realize challenge and diversity. By reviewing ourpolicy to support outside work, the number of permits forside jobs has been increasing year by year, and the types ofsuch work have been increasing in the forms of selfemployment, such as consulting, design production, anddata analysis commissioned by outside companies.

(FY)

2020

2021

2022

2025 (targets)

Ratio of women in management*1
Percentage of male employees taking childcare leave
Percentage of male employees taking childcare
leave etc.(including special leave)*2
Percentage of employees with disabilities*3

9.2%

9.5%

9.8%

11%

8%

16%

47%

–

–

110%

2.55%

2.54%

2.64%

100%*4–*1 R esults as of April 1 in the following fiscal year
*2 No calculation based on the calculation methods provided for in the Child Care and Family Care Leave Act prior to FY2021*3 R
 esults as of June 1 of the current fiscal year
*4 Percentage of employees taking childcare leave 100%; number of days taken for childcare leave and special leave for the
purpose of childcare combined was at least one month.

52

Tokyo Gas Group Integrated Report 2023

40
30

27
18

15

0
(FY)

2020

Toward permeation of the management philosophy

2021

2022

TOPIC

We believe that the permeation and entrenchment of our Group’s Management
philosophy will motivate each and every employee to act for the benefit of society andbecome drivers that promote the growth of our company. Since the revision in April
2022, we have promoted initiatives to disseminate the management philosophy throughdialogue and workplace discussions between management and employees. An internalsurvey we conducted in November 2022 found that 99% of our group members areaware of the management philosophy and 66% are able to relate it to their own work.
Going forward, we will work for the further permeation and entrenchment of the
management philosophy so that we can become a corporate group that can growsustainably by ensuring that each and every employee continues to make decisions andtake actions based on the philosophy.

Financial Data

Diversity, equity & inclusion results (non-consolidated)

Introduction
Contents

CEO’s Message

How We Create ValueThe Value Creation Process
Promoting Sustainability and Material issues

45

Corporate Strategy

In order for diverse human resources to play active roles, we believe it is important toreform the personnel system and corporate culture as a foundation, such as by creating anenvironment with flexible work styles and appropriate evaluation systems. At Tokyo Gas,
the return-to-work rate from childcare leave has been 100% for the past three years, andwe are also working to create an environment in which diverse human resources can play
active roles regardless of time or place. With regard to evaluation criteria, we are currently
considering a revision of the personnel system, including the personnel evaluation criteria,
so that our diverse human resources can play active roles competing with players fromother companies in each business field.

60

Business Strategy

Personnel system enabling diverse human resources to play active roles

Number of permits forside jobs

How We Create Value

Promoting active participation by women and childcare leave for men

CEO’s Message

Growing by taking on challenges

Introduction

Turning diversity into a strength

Business Strategy
Compass2030 & Compass Action
Compass Transformation 23-25
Introduction of Internal Companies
CFO’s Message

Corporate Strategy
Sustainability
Responding to Climate ChangeD isclosure based on TCFD
recommendations
Energy Security
Human Capital Management
Corporate Governance

Financial Data

Web Site
Investor Relations Website
Investors’ Guide(Financial Data and Industry Data)
Financial Results Presentation Materials
Financial Results Bulletin
Corporate Governance Report
Sustainability Factbook