Earth-Oriented Environmental Activities and Social Contribution
As a leader in environmental management, Tokyo Gas has established a policy that promotes
the use of resources and energy in harmony with the environment. The Company activelyworks to develop technologies that reduce environmental impact, promotes the efficient useof energy, and discloses environmental data. In addition, Tokyo Gas contributes to society asa good corporate citizen.

Environmental Conservation
Natural Gas: A Clean Energy Source
Natural gas, the main feedstock for city gas, is a very clean energy source. Compared to other fossil fuels,
natural gas combustion emits less carbon dioxide (CO2), which is the main cause of global warming, and less nitricoxide (NOx), a source of air pollution. It also emits no sulfur oxide (SOx). The Tokyo Gas Group has positioned
natural gas as the core element in its corporate growth.
■ Composition of Emission Levels (Coal = 100)

Measures to Prevent Global Warming

Tokyo Gas Co., Ltd.

NOxNatural Gas
20〜40

OilCoal70100

Tokyo Gas has established its own Global Warming Prevention
Guidelines, and is promoting energy conservation in its businessactivities. We also undertake activities to reduce CO2 emissions by citygas customers. Cogeneration systems using natural gas can play animportant role in curtailing CO2 emissions. These systems feature
overall energy efficiency of 70-80 percent, which effectively suppresses
CO2 emissions.

22Annual Report 2003

Reducing Waste and Promoting Recycling
Natural Gas

Oil

Coal

Natural Gas

Oil

Coal

070

1006080100

Our “Reduce, Reuse, Recycle” promotion guidelines contribute tothe creation of a recycling-oriented society, and promote reduction in theamount of waste produced in the course of our operations. In addition toreducing the amount of waste paper generated, which accounts for mostof the trash produced in our offices, we have set targets for the final
disposal rate of industrial waste and are energetically working toSOx
CO2Source: IEA Natural Gas Prospects (1986), Natural Gas Prospects and Policies (1991)
achieve them. Moreover, Tokyo Gas is working to reduce the amount ofresidual soil derived from operations such as gas pipeline installation.
We are also vigorously promoting reduction, reuse and recycling of waste among customers. Tokyo Gas wasquick to incorporate environmental protection into the design of its products, working to limit emissions from thedesign phase. The Company also developed and now uses the Saving Recycling Innovative Model System (SRIMS),
a proprietary system for the efficient recovery, recycling and disposal of gas appliances, pipeline materials andother industrial waste. Furthermore, Tokyo Gas began collecting and properly disposing of discarded residential
gas air conditioners and other appliances in response to the Home Appliance Recycling Law, which went into
effect in April 2001.

Head Office Obtains ISO14001 Certification

Disclosure of Environment Information

Tokyo Gas is working to acquire ISO14001 certification, aninternational standard for environmental management systems. TheCompany’s three LNG terminals, and the Shinjuku and Makuhari
District Heating and Cooling Centers*, have received ISO14001
certification, and the head office received this certification inOctober 2002. Tokyo Gas is aiming to achieve certificationcompanywide by the end of fiscal 2004.

Tokyo Gas publishes an annual Environmental Report and discloses
environmental information on its website. In addition, we introduced
environmental accounting in fiscal 2000 to monitor the benefit ofenvironmental protection by calculating the total investment andexpenses allocated to it. The Company also publishes and distributes
booklets that feature helpful information on conserving energy, such as
the Ultra Energy-Saving Reader.
http://www.tokyo-gas.co.jp/env/index_e.html* These centers were spun off as ENERGY ADVANCE Co., Ltd. in July 2002.

Preventing Air Pollution
Tokyo Gas has formulated NOx Reduction Guidelines to encourage the use of natural gas, which
produces low emissions of NOx, a cause of air pollution, as well as the development of low-NOx
combustion technology and the popularization of more efficient water heaters and cogeneration systems.
In particular, there is growing interest in natural gas vehicles (NGV), an environmentally friendly vehicle
that not only produces significantly less NOx emissions compared to diesel engines, but also does not emit
any suspended particulate matter (SPM) or SOx. Promoting the spread of NGVs is an important part of ourenvironmental protection activities. At present, there are approximately 6,700 NGVs, including city buses,in the Tokyo Gas service area.

Natural gas vehicles, which produce reduced NOxemissions, include this city bus.

Contributing to Society
Committed to social harmony, Tokyo Gas contributes to society in a numberof ways under the three types of communication outlined below.

Lifestyle and Culture Communication

Recognizing that the global environment closely affects daily life, Tokyo Gas sponsors avariety of activities to provide a chance for people to play a part in its protection, such as the“EARTH VISION Global Environmental Film Festival,” acorn-planting and “green” fundraising. Acorn-planting aims to increase environmental awareness through the activities ofgathering acorns, raising them into seedlings, and then transporting them to the mountains
for planting. Tokyo Gas has been carrying out this activity since its start in 1993 with the helpof an environmental non-profit organization.

Eco-Cooking Book
Since 1995, Tokyo Gas has held approximately
700 Eco-Cooking sessions, attracting more than
30,000 participants. The Company continues todevelop the program, publishing a collection ofrecipes in March 2003 and launching adedicated website.
(Eco-Cooking is a registered trademark ofTokyo Gas.)

Children’s Educational Communication
For children, Tokyo Gas provides an opportunity to learn and explore by utilizing its knowhow, technology and facilities. The Company has been holding pottery contests and a soccer
training school for elementary and junior-high school students. It also operates the Gas
Science Center, the Energy and Earth Exploratorium and other facilities. As part of an
initiative to support education on energy and the environment, since 2002 Tokyo Gas
employees have been visiting elementary schools to distribute supplementary materials andconduct hands-on activities.

Volunteer Activities
In addition to the above communication activities, Tokyo Gas provides its employees with
useful information and support for activities to promote volunteerism and a sense of social
responsibility. The Company has established the Tokyo Gas Volunteer Network, an employee
network for volunteer-related information and support, and also offers leaves of absence forvolunteer activities.

School Visits
Thirty Tokyo Gas employees responsible forsupporting education visit schools to teach classes
on eight different topics including cryogenic
energy, Eco-Cooking and natural gas vehicles.

23Annual Report 2003

Environmental Communication

Tokyo Gas Co., Ltd.

Tokyo Gas offers a range of participatory activities centered on food and home that aredesigned to enrich people’s lives. Examples include co-sponsoring the “Mini-University,” aseries of seminars for housewives, and promoting “Eco-Cooking.” Eco-Cooking is based on
the concept of using familiar items to learn about environmental issues. Tokyo Gas
promotes environmentally friendly ways of shopping, cooking and tidying up after meals.