Environmental Conservation

At COP3 held in Kyoto in December 1997, targets were set by industrialized countries for the reduction ofgreenhouse gas emissions. The Japanese government has embraced Japan’s goal of a 6% average cut inemissions between 2008 and 2012, compared with 1990 levels. Natural gas—one of the cleanest burning of
all fossil fuels—is seen in many quarters as an important energy source for achieving this. As part of its
ongoing environmental stewardship, Tokyo Gas formulated a new environmental policy in June 2000. Andin July, Tokyo Gas made public its environmental accounting results. Our basic aim is continuous reductionof the environmental impact of energy use by our customers as well as by our own business activities.

NOxSOxThe Inherent Advantages of Natural Gas

NaturalGas

Oil

Coal

NaturalGas

Oil

Coal

CO2
NaturalGas

Oil

Coal

The environmental advantages of natural gas are clear. Factsbear this out. In terms of carbon dioxide (CO2) emissions,the leading cause of the greenhouse effect, natural gas produces fewer emissions than oil or coal to generate the same

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6080100

Source: IEA, Natural gas prospects to 2010, 1986.

amount of energy (see diagram). Furthermore, unlike oil andespecially coal, natural gas does not produce any sulfur oxides

16(SOx), which cause acid rain. Nitrous oxide (NOx) emissions,with oil or coal. This makes natural gas the cleanest burning

another cause of acid rain, are lower with natural gas thanfossil fuel currently available.

Tokyo Gas Group Environmental Policy(Formulated in June 2000)

PHILOSOPHYThe Tokyo Gas Group will promote the harmonious use of energy to contribute to the preservation of regional andglobal environments as well as to the sustainable development of society.
POLICIES
Reduce the environmental impact of customers’ energy use
Tokyo Gas will actively and on an ongoing basis attempt to reduce the environmental impact of customers’ energy use. We will
do this by promoting the use of environmentally friendly natural gas and providing highly efficient products and systems withminimal environmental impact
Reduce the total environmental impact of Tokyo Gas’ business activities
Tokyo Gas will continuously reduce per unit energy and resource use in its business activities through the development of
increasingly efficient and effective environmental management activities to contribute to the realization of a sustainable society.
At the same time, Tokyo Gas will reduce overall environmental impact by aggressively promoting “green” purchasing and thereduction, reuse and recycling of industrial waste.
Strengthen environmental partnerships with local areas and the international community
Tokyo Gas will strengthen its environmental partnerships with both the local areas in which it operates and the international
community by engaging in a wide variety of activities. These activities will range from participation in regional environmental
activities to international sharing of technological developments, starting with strategies to prevent global warming.
Promote environment-related technology R&D
Tokyo Gas will proactively research and develop environmental technologies, including renewable energy, to preserve regionaland global environments.
TOKYO GAS Annual Report 2000

Overview of Tokyo Gas Environmental Accounting

Environmental Preservation Benefits
Investments and Expenses
for Environmental Preservation by Tokyo Gas
Tokyo Gas Operation

Customer Utilization● Pollution prevention● Global environmental● Environmental R&D● Recycling of used gas

preservation● Resource recycling● Environmental management● Other measuresappliances● Reduction in substances with environmental impact(emissions in relevant units)➔➔● Reduction of waste● (Reference) Reduction of substances with an environmental

impact at customers’ level

Actual Economic Benefits
Contributions to Society● Cost savings● Profits on sale of items of value derived from ordinary

business activities
Tokyo Gas has compiled parent-company environmental accounting results for the year ended March 31, 2000, based on Environmental
Accounting Guidelines for Three Gas Companies issued in May this year. The figures show that the parent company invested approximately¥0.8 billion and incurred expenses of roughly ¥3.7 billion for environmental preservation. There are two central features of Tokyo Gas’environmental accounting. One is the extremely low environmental impact of gas production, supply and other activities due to thecompletion of a switch to natural gas. The other is emphasis on research into methods to reduce the environmental impact of gas utilization
by customers, mainly through the development of highly efficient gas appliances and systems such as micro cogeneration systems. Moredetailed information concerning Tokyo Gas’ environmental accounting is contained in its Environmental Report 2000.

ISO Certification

developing new ways to increase energy efficiency. Gas

Obtaining ISO certification has been positioned as a high man-cogeneration systems and gas-fired air conditioning are just aagement priority. In 1997, both the Negishi and Sodegaura LNG

few of the many technologies that are being widely adopted.

terminals obtained ISO 14001 certification; these facilities were

In the fuel cell field, Tokyo Gas is developing an on-site generation

the first in Japan’s gas industry to obtain this international certi-system that boasts high generation and energy efficiency andfication, which attests to the high quality of our environmental

emits almost no atmospheric pollutants. High hopes are heldmanagement systems. The Ohgishima LNG Terminal obtained

for the use of fuel cells in future residential cogeneration systems.

ISO 14001 certification in January 2000. And in March 2000,

Concern over dioxin emissions has also been increasing. To

the Shinjuku District Heating and Cooling Center became theaddress this issue, Tokyo Gas has developed natural gas

first supplier of heat in Japan to attain ISO 14001 certification.

“reburning technology” for municipal solid waste incinerators.

Recycling Initiatives
Recycling and decreasing waste volumes are other ways wereduce the environmental impact of our activities. SRIMS (Saving Recycling Innovative Model System) is at the heart of theseefforts. This system facilitates the efficient collection, separation,management and disposal of used gas equipment, pipes andNatural gas vehicles (NGVs) are also playing an integralrole in reducing environmental impact. The Japanese government has set a target of having 1 million NGVs on Japan’sroads by 2010. In addition, with an eye on the future, we arealso seeking new, environmentally friendly forms of energy,
such as methane hydrate.

other industrial waste. In a similar vein, we are radically reducing the amount of earth removed from pipeline
construction sites.

The Earth & Energy Exploratorium
was opened in November 1998 topromote greater understanding of
the environmental issues associatedTechnologies to Reduce Environmental Impact
Tokyo Gas feels that it has the responsibility to further reduce
the environmental impact of natural gas. That’s why we arewith energy use. In the year ended
March 31, 2000, the exploratorium
was visited by approximately
100,000 people.

Annual Report 2000 TOKYO GAS17