Corporate Social Responsibility
Tokyo Gas Group CSR
The Tokyo Gas Group has declared its commitment to promoting CSR management that facilitates
the realization of its CSR objectives and its public mission. These objectives are achieved throughthe Group’s daily business activities. On that basis, we will continue to work earnestly in suchareas as corporate governance, compliance, and risk management. As a public institution, we will
strive to earn the continued trust of our stakeholders. Specifically, the Group’s number one priorities will be to continue to advance “safety and disaster prevention,” “environmental initiatives,”and “building partnerships” as its focus CSR activities and to establish relationships of trust withlocal communities. In these ways, we will endeavor to make an ongoing contribution to society
through our daily business activities.

Becoming a Corporate Group that is Continually Trusted and Preferred by Customers and Society

Promotion of CSR Management in All Tokyo Gas Initiatives

Safety andDisaster Prevention

EnvironmentalInitiatives

Further increase safety
and reinforce disasterprevention measures

Diverse approaches tobecoming a top runner inenvironmental management

PartnershipsBuilding partnerships
with stakeholders

Business Activities of All Tokyo Gas
LNG Value Chain
Management Philosophy and Corporate Code of Conduct
Management Philosophy and Corporate Code of Conduct
Management Philosophy
As an integrated energy company, the Tokyo Gas Group shall make an active contribution to pleasant living and thedevelopment of environmentally friendly society, and also pursue ongoing advancement together with the rest ofsociety, as a corporate group that earns and maintains the trust of its customers, shareholders and communities
through its various activities.

Corporate Code of Conduct
1. We will continue to grow while maintaining awareness of our company’s public mission and social responsibilities.
2. We shall provide quality products and services, and endeavor always to improve customer satisfaction.
3. We will hold ourselves to high ethical standards, and fairly and transparently conduct corporate activities whileobserving both the letter and the spirit of related laws and ordinances.
4. We will contribute to alleviating global environmental problems as a top runner in environmental management.
5. We will remain keenly aware of our obligations to be a good corporate citizen and work towards the bettermentof society by contributing to community activities.
6. We will pursue continual innovation to promote a cost-effective business approach that is both flexible and resilient.
7. We will aspire to build organizations that are based upon the full exercise of, and respect for the talents, desires,and creativity of each and every employee.

38

Corporate Social Responsibility

Safety and Disaster Prevention
Our Responsibility
Our customers have provided valuable feedback in regard to the use of gas, such as “I would like you to develop safe
gas appliances,” “I want you to figure out a way to prevent careless mistakes in using gas appliances,” and “Afteryour work is done, I would like you to explain what you did.” At the Tokyo Gas Group, we have three key themes inpromoting the safe use of gas. The first is promoting the utilization of facilities that decrease the likelihood of accidents, gas leaks, or damage and of functions to control such incidents (tangible countermeasures). The second is fostering knowledge of correct usage and implementing periodic inspections (intangible countermeasures). The third isestablishing an emergency response system for use in the unlikely event of a gas leak (emergency response countermeasures). To foster prompt gas supply in the event of an earthquake or other natural disaster, we are implementing“prevention,” “emergency,” and “restoration” initiatives. We continue working to minimize the influence of such anevent on the lives of our customers.

Initiatives
To promote the early replacement of water heaters and bathtub water heaters that have not been equipped withincomplete combustion avoidance devices, since January 2007 we have instituted a “replacement promotion campaign,” which incorporates special visits, free inspections, and replacement support. As of the end of March 2010, wehad invested about ¥5.5 billion and replaced about 180,000 devices out of a total of 300,000 that need replacement. In
particular, we have replaced about 74% of small water heaters that lack incomplete combustion avoidance devices andabout 62% of CF devices*. The campaign has ended, but we continue to provide support for replacement. Throughsuch opportunities as “periodic gas facility safety checks” and “gas valve opening,” we will continue working toward
the reduction of these appliances. At the same time, we will endeavor to provide accurate information about thesafety, environmental friendliness, and convenience of gas, and to implement enhanced communications so that wecan best meet the needs of our customers.
In gas supply, in January 2007 there was an accident in the city of Kitami in Hokkaido. We continue moving forward
aggressively with the necessary measures, aiming to replace about 1,200 km of gray cast-iron pipes and galvanized gaspipes. In fiscal 2009, we invested ¥11.1 billion and replaced 166 km of pipe. There are still about 800 km of these graycast-iron pipes and galvanized gas pipes that need to be replaced, and we plan to complete the replacement work by fiscal 2015. Moreover, the replacement of aged galvanized gas pipes in buildings that is important in terms of public safety
is a key safety initiative. We are aiming to finish this task by fiscal 2015, and with the understanding of customers weare striving to advance this deadline as much as possible. In fiscal 2009, we spent about ¥1.8 billion on these measures.
* C F devices: Gas appliances that use indoor air for combustion and emit exhaust through an exhaust duct with the aid of natural ventilation.

TOPICSSUPREME (Super-dense Real-time Monitoring of Earthquakes)
Under the SUPREME

Security Command CenterIn fiscal 2009, with the objective of decreasing block sizes

initiative, which began

in order to minimize the area in which supply is interrupted,

in July 2001, we have

we increased the number of blocks from 101 to 136. In thisinstalled earthquake

way, we are taking steps to facilitate the restoration of gas

sensors (SI sensors)service as rapidly as possible after an interruption. In thein all district supply

future, Tokyo Gas will continue to move ahead with block size

governors (regulators)

reductions, with a goal of completing this task by the fiscal

in approximately 4,000 locations throughout our supply area.

year ending March 31, 2013 and establishing a system with

With one SI sensor in about every square kilometer, thisabout 170 blocks. In this way, we will aim for even more

earthquake damage prevention system has a high level of

rapid restoration of service in times of disaster.

sensor density. It is unparalleled anywhere in the world.
Under SUPREME, our service area is divided into “blocks” ofa certain size. In the event of a major earthquake, gas supply

Earthquake
sensor (SIsensor)

will be continued to areas that have not suffered damage togas facilities. In areas in which gas facilities have suffered
substantial damage, gas supply can be rapidly cut off on a
block by block basis, making it possible to prevent fires andother secondary damage.

Distribution of earthquake sensors(red dots: Tokyo Gas SI sensors; blue frameworks: blocks)

TOKYO GAS ANNUAL REPORT 201039

Environmental Initiatives
Our Responsibility
Our environmental philosophy is as follows. The Tokyo Gas Group will promote more positive ways of energy use tocontribute to the protection of regional and global environments as well as to the sustainable development of society.
Our environmental policies are to (1) reduce the environmental impact of customers’ energy use, (2) reduce the total
environmental impact of Tokyo Gas’ business activities, (3) strengthen environmental partnerships with local and international communities, and (4) promote environment-related technology R&D programs.

Initiatives
Targeting the realization of a low-carbon and resource-recycling society and the conservation of biodiversity, the Tokyo
Gas Group has formulated environmental protection guidelines for six areas, such as global warming prevention. On
that basis, the Group is moving forward with the implementation of specific initiatives.
For example, we will continue working in an active and sustained manner to prevent global warming by promoting
the use of environmentally friendly natural gas and by providing equipment and systems with high efficiency and low
environmental impact. In comparison with the 2005 levels, we will strive to reduce CO2 emissions at customer sites by
3 million tons by the fiscal year ending March 31, 2016 and by 4.5 million tons by the fiscal year ending March 31, 2021.
In the development of a recycling-oriented society, the Tokyo Gas Group will take a comprehensive approach toreducing environmental burden by implementing efficient, effective environmental management activities; by reducing, reusing, and recycling waste in our operational activities; and by aggressively promoting green purchasing. In addition, targeting the establishment of a society that coexists with nature, we recognize the importance of the benefits ofbiodiversity, and we are working to track and analyze the influence of our operating activities on biodiversity. Moreover, from a CSR perspective, we are also promoting activities that contribute to the conservation of biodiversity inways that are unrelated to our business activities.

TOPICSPower Generation Initiatives

Overseas Environmental Cooperation

Ohgishima Power

Since October 2004, Tokyo Gas has participated in power gen-Kawasaki NaturalGas Power
Generationeration operations in Bajio, Mexico, which is 260 km northwest of Mexico City, the capital of Mexico. The Bajio power
plant is an IPP (Independent Power Producer) natural gas
combined cycle plant (Tokyo Gas: 49%). Power is supplied to
Mexico’s federal electricity commission—Comision Federal
de Electricidad—and to customers in the surrounding area.
In addition, in June 2010, in cooperation with Mitsui & Co.,
we completed acquisition of five Mexican thermal power gen-In electric power, Kawasaki Natural Gas Power Generationeration companies as well as a pipeline company. As a result,Co., Ltd. (Tokyo Gas: 49%, two 420 MW units) began

we have reinforced our foothold in power generation opera-commercial operation in April 2008. Ohgishima Power Co.,tions in Mexico. These are gas-fired, combined cycle IPP

Ltd. (Tokyo Gas: 75%, three 407 MW units) began commer-power plants, with an aggregate total generating capacity ofcial operation of its first unit in March 2010 and its second

2,233 MW (Tokyo Gas: 30%). Power will be supplied underunit in July 2010. Each of these has the latest gas turbine

25-year term contracts with the Comision Federal de Electric-

combined-cycle power generation facilities, with peakidad. Through these projects, Tokyo Gas will have total gener-

efficiency of 58% (low heating value (LHV) standard / grossating capacity of about 960 MW in Mexico and will play a role

generating efficiency). In these ways, we are working toin the stable supply of power in Mexico.

support the efficient supply of energy.
In addition, Agatsuma Bio Power Co., Ltd. (Tokyo Gas:4.44%) is a biomass power generation enterprise using woodchips as fuel. Commercial operation is scheduled to start infiscal 2010. Agatsuma Bio Power is expected to reduce CO2emissions by 60,000 tons*1 through the generation of 85
MWh*2 of electricity a year.
*1	Calculated in comparison to an average of 0.69 kg CO2 /kWh forthermal power generation, for which Agatsuma Bio Power’s
operations will be a substitute.
*2	13.6 MW power generation facility

40Corporate Social Responsibility

Thermal power generation facilities acquired in June 2010
(Rio Bravo II / III / IV)Building Partnerships
Our Responsibility
Tokyo Gas conducts business operations that have a strong public welfare element, and the Group has a social mission. Tokyo Gas endeavors to move forward in tandem with its stakeholders, including not only shareholders but also
customers, employees, suppliers and partners, and local communities. Contributing to the development of society is
one of our most important tasks. Accordingly, we continue our sincere efforts to build, sustain, and develop relationships with all of our stakeholders.

Initiatives
By enhancing communications in capital markets through our IR activities, we are working to secure managementsoundness and transparency, to reflect the expectations of capital markets in our management, and to improve theunderstanding of and the trust in the Tokyo Gas Group.
In our relationships with customers, in order to ensure that All Tokyo Gas continues to be the preferred choice, weemphasize “whether the customer is satisfied” rather than “what we provide to the customer.” In accordance withthis approach, we have identified the customer satisfaction (CS) mindset as the fundamental stance of All Tokyo Gas
and have documented it in our code of conduct. Moving forward, we will continue working to be a customer-focusedGroup by thoroughly communicating this fundamental stance to everyone involved with All Tokyo Gas.
For our employees, we are striving to enhance their motivation and to create “workplaces that are easy to work in”
and in which employees can exercise their abilities to the fullest extent. Accordingly, we have established a variety ofsystems and are devoting resources to education so that the systems are used effectively. Furthermore, we are moving ahead with initiatives in the area of healthy, safe work environments.
In our relationships with suppliers and partners, we are taking steps to fulfill our public welfare and social missions,such as formulating action guidelines for purchasing activities and working to build relationships of trust.
In addition, our relationships with local communities involve working toward the realization of a society that is
pleasant and comfortable to live in and striving to resolve issues related to our daily lives. In these ways, we are implementing activities that make the most of our strengths.

TOPICSTokyo Gas Environment Support Fund
Providing supportfor Inbanuma waterquality improvement
activities through theInba Yasai Ikada noKai, an NPO.

Overseas Environmental Cooperation
Since 1993, Tokyo Gas has been
actively involved in the Donguri(Acorn) Project, working together with
the Donguri (Acorn) Club, a non-profitorganization (NPO), and with local
administations. In the midst of a trend

Environmental education activities at theDonguri (Acorn) School

toward a re-appreciation of the importance of forests andnatural woodlands, this project serves as a countermeasure toglobal warming while facilitating experience-based education.
With a grant from Tokyo Gas to the Japan Environment Asso-

The project encourages participants to think about the naturalciation, this fund was established in December 2007 in com-environment through a cycle of activities—gathering acorns,

memoration of Tokyo Gas reaching the milestone of 10

planting seedlings, and caring for trees.

million customers in September 2007. Through the fund, weSince 2005, experience-based environmental educational

have provided ongoing support for non-profit, private-sector

activities have been conducted at Nagano Tokyo Gas Forest

organizations that engage in environmental conservationin Kitasaku-gun, Nagano Prefecture, offering participants theactivities. The objective of this support has been to express

opportunity to learn about the relationship between their daily

our gratitude to a wide range of local communities while atlives and the forest. At the Donguri (Acorn) School, forest man-the same time contributing to the resolution of regional andagement activities are combined with a range of experience-

global environmental problems and to the realization of a sus-

based nature programs in spring, summer, and fall.

tainable society.

In the fiscal year ended March 31, 2010, Donguri (Acorn)

In the fiscal year ending March 31, 2011, applications

School sessions were held in spring, summer, and fall, and awere received from 58 organizations and a total of ¥10 million

total of about 200 participants gathered and experienced ais to be provided to 14 recipients. Since the fiscal year ended

range of activities. These included animal tracking, whereMarch 31, 2009, a cumulative total of ¥30 million has been

they walked through the forest while looking for animal signs,

provided to 40 organizations.

and carpentry work using thinned wood.

TOKYO GAS ANNUAL REPORT 201041