CORPORATE SOCIAL RESPONSIBILITY

Promoting CSR Management through Our Core Business Activities
The Tokyo Gas Group promotes business activities that create “shared value” and has declaredits commitment to CSR management, which underpins its business activities. We will continue
to work earnestly in such areas as corporate governance, compliance, and risk management,
while focusing on the priorities of “safety and disaster prevention,” “environmental initiatives,”and “building partnerships.” As a public institution, we will strive to be a corporate group that iscontinually trusted and preferred by our stakeholders.

Responding to Expectations and Trust from Society andContributing to the Sustainable Growth of Society

Promotion of CSR Management in All Tokyo Gas Initiatives

Safety andDisaster Prevention

Environmental
Initiatives

Further increase safety
and reinforce disasterprevention measures

Diverse approaches tobecoming a top runner inenvironmental management

Partnerships

Building partnerships
with stakeholders

Corporate Governance, Compliance, Risk Management, etc.
Management Philosophy and Corporate Code of Conduct

Management Philosophy and Corporate Code of Conduct

TOKYO GAS ANNUAL REPORT 2011

Management Philosophy
As an integrated energy company, the Tokyo Gas Group shall make an active contribution to pleasant living andthe development of environmentally friendly society, and also pursue ongoing advancement together with therest of society, as a corporate group that earns and maintains the trust of its customers, shareholders andcommunities through its various activities.

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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.

CORPORATE SOCIAL RESPONSIBILITY

Safety and Disaster Prevention

and replacement support. As of the end of March 2010, we
had invested about ¥5.5 billion and replaced about 180,000

Our Responsibility
Our customers have provided valuable feedback with

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 devicesregard 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“After your work is done, I would like you to explain what
you did.” At the Tokyo Gas Group, we have three key

and about 62% of CF devices*. The campaign has ended,
but we continue to provide support for replacement.
Through such opportunities as “periodic gas facility safety
checks” and “gas valve opening,” we will continue working toward the reduction of these appliances. At the same

themes in promoting the safe use of gas. The first is promoting the utilization of facilities that decrease the likelihoodof accidents, gas leaks, or damage and of functions to control such incidents (tangible countermeasures). The second

time, we will endeavor to provide accurate information
about the safety, environmental friendliness, and convenience of gas, and to implement enhanced communications
so that we can best meet the needs of our customers.

is fostering knowledge of correct usage and implementing periodic inspections (intangible countermeasures). The
third is establishing an emergency response system for

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 touse in the unlikely event of a gas leak (emergency responsecountermeasures). To foster prompt gas supply in the eventof an earthquake or other natural disaster, we are implementing “prevention,” “emergency,” and “restoration”
initiatives. We continue working to minimize the influence

replace about 1,200 kilometers of gray cast-iron pipes andgalvanized gas pipes. In fiscal 2010, we invested ¥10.8 billion and replaced 155 kilometers of pipe. There are still about
667 kilometers of these gray cast-iron pipes and galvanizedgas pipes that need to be replaced, and we plan to com-of such an event on the lives of our customers.
Initiatives

plete the replacement work by fiscal 2015. Moreover, thereplacement of aged galvanized gas pipes in buildings thatis important in terms of public safety is a key safety initia-

To promote the early replacement of water heaters andbathtub water heaters that have not been equipped withincomplete combustion avoidance devices, since January
2007, we have instituted a “replacement promotion cam-tive. We are aiming to finish this task by fiscal 2015, andwith the understanding of customers, we are striving toadvance this deadline as much as possible. In fiscal 2010,
we spent about ¥1.4 billion on these measures.

paign,” which incorporates special visits, free inspections,* CF devices: Gas appliances that use indoor air for combustion and emit exhaust throughan exhaust duct with the aid of natural ventilation.

TOPICSThe role of Gaslight 24 is to ensure the safety of ourcustomers 24 hours a day, 365 days a year. In theunlikely event of a gas leak or other emergency situation, Gaslight 24 ensures an immediate response by dispatching emergency teams to the scene.

bases are mobilized immediately.
These teams use in-vehicle terminals to confirm the necessary information, including the details received by theCenter, site maps and other information, while rushing tothe reported scene. Once there, they make repairs and takeTokyo Gas has around 600 specialist staff stationed at
47 bases, along with emergency vehicles and general vehicles equipped with various machinery and equipment.

any other action required to prevent a city gas accident.
The Great East Japan Earthquake on March 11, 2011,
demonstrated the safety of gas. The rapid and accurate

When the Security Command Center receives notification of a gas leak, emergency personnel at Gaslight 24

response of our Gaslight 24 teams stopped gas leaks
from causing fires or more serious incidents.
The steadfast activities of Gaslight 24 protect the safety ofthe Group’s customers
while supporting theTokyo Gas corporate
brand of security, safety, and reliability.

Emergency Repair Work on Gas Pipes

Gaslight 24 Emergency Vehicle

TOKYO GAS ANNUAL REPORT 2011

Gaslight 2437

CORPORATE SOCIAL RESPONSIBILITY

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 ofsociety. Our environmental policies are to (1) reduce theenvironmental impact of customers’ energy use, (2) reduce
the total environmental impact of Tokyo Gas’ businessactivities, (3) strengthen environmental partnerships withlocal and international communities, and (4) promote environment-related technology R&D programs.
Initiatives
Targeting the realization of a low-carbon and resourcerecycling 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 forwardwith 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 fiscal 2015
and by 4.5 million tons by fiscal 2020.
In the development of a recycling-oriented society, theTokyo Gas Group will take a comprehensive approach to
reducing environmental burden by implementing efficient, effective environmental management activities; byreducing, reusing, and recycling waste in our operationalactivities; and by aggressively promoting green purchasing. In addition, targeting the establishment of a societythat coexists with nature, we recognize the importanceof the benefits of biodiversity, 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 in ways that are unrelated to ourbusiness activities.

TOPICS

Sustainable Energy Initiatives
Tokyo Gas is stepping up its contribution to global warming
abatement by promoting the use of renewable energy. To thisend, we are conducting R&D on methane fermentation technologies and developing technologies to allow biogas emitted
from foodstuff factories and other facilities to be used for cogeneration. In April 2008, we announced our “Biogas Purchasing
Key Points,” and we have since been preparing to purchasebiogas with a view to including it in the city gas delivery network. In January 2011, we were the first in Japan to start
accepting food-waste-derived biogas for delivery as city gas
under the Super Eco Town Project of the Tokyo MetropolitanGovernment. Under this project, we will procure biogas in aquantity equivalent to the amount of city gas used by aroundrenewable energy. Specifically, we have an equity stake inAgatsuma Bio Power Co., Ltd. and are participating in its business, which centers on wood chip biomass power generation.
This method of power generation offers exceptional economic
benefits and permits stable output without being affected byweather conditions. For fuel, this method uses 100% woodchips, created by crushing tree clippings and wood scraps andturning them into chip form. Accordingly, it produces clean,carbon neutral electric power. By the end of 2011, Agatsuma
Bio Power is scheduled to commence operations, with a plan
to produce 85 GWh of electricity—equivalent to the amountWe are also active in the area of power generation using

we will target proactive use of renewable energy in the future.

TOKYO GAS ANNUAL REPORT 2011

2,000 general households each year. Moreover, this translates
to about 800,000 m3N of gas annually and will reduce carbon
dioxide emissions by approximately 1,360 tons per year.

used by around 23,000 households per year.
In April 2011, Tokyo Gas invested in Shonai Wind-Power
Generation Co., Ltd., which operates wind-power plants,
including the Yuza Wind-Power Plant, in Yamagata Prefecture.
By also participating in the wind power generation business,

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Yuza Wind-Power Plant

Agatsuma Bio Power (conceptual drawing)

CORPORATE SOCIAL RESPONSIBILITY

Building Partnerships“what we provide to the customer.” In accordance withthis approach, we have identified the customer satisfac-

Our Responsibility
Tokyo Gas conducts business operations that have a strong

tion (CS) mindset as the fundamental stance of All Tokyo
Gas and have documented it in our code of conduct. Movingforward, we will continue working to be a customer-focused

public welfare element, and the Group has a social mission. Tokyo Gas endeavors to move forward in tandemwith its stakeholders, including not only shareholders but
also customers, employees, suppliers and partners, andlocal communities. Contributing to the development ofGroup by thoroughly communicating this fundamentalstance 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” andin which employees can exercise their abilities to the fullest

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.

extent. Accordingly, we have established a variety of systems
and are devoting resources to education so that the systems
are used effectively. Furthermore, we are moving ahead withinitiatives in the area of healthy, safe work environments.

Initiatives
By enhancing communications in capital markets throughour IR activities, we are working to secure management

In our relationships with suppliers and partners, we aretaking steps to fulfill our public welfare and social missions,such as formulating action guidelines for purchasing activ-

soundness and transparency, to reflect the expectationsof 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 ensurethat All Tokyo Gas continues to be the preferred choice, weities and working to build relationships of trust.
In addition, our relationships with local communities
involve working toward the realization of a society that ispleasant and comfortable to live in and striving to resolve
issues related to our daily lives. In these ways, we are imple-emphasize “whether the customer is satisfied” rather thanmenting activities that make the most of our strengths.

TOPICS

Helping Restore Gas Supplies Suspended due to the Great East Japan Earthquake
The Great East Japan Earthquake, which struck on March
11, 2011, has left a deep mark across Northeastern Japan,providing safety inspections services to customers, andperforming work on open-shut plugs, the initiative includ-especially the Tohoku District. In the city gas sector, 16 gas
providers serving more than 400,000 households wereforced to suspend supplies. For some time, a mutual support system has been in place among city gas providers toed provision of temporary supply through mobile gas
generation equipment and reopening of supplies using provisional equipment. By deploying personnel with thecombined know-how and intellectual assets of gas providers

address such natural disasters. Due to the magnitude of
the recent event, however, many providers suffered moredamage than ever in their history. To address this unprecedented disaster, the nation’s 59 city gas providers, including
Tokyo Gas, joined forces at the request of The Japan Gas

nationwide, we managed to restart gas supplies by midMay, around two months after the disaster. The role of gas
providers is to conduct business with close regional ties
even if there are major differences in supply areas. During
these two months we worked day and night reconfirming

Association, dispatching support teams to various disaster-stricken areas. At the peak of the effort, the support
teams together totaled around 4,000 people per day. In

our social mission as gas providers to deliver gas to our customers safely and restore supply as quickly as possible.

TOKYO GAS ANNUAL REPORT 2011

addition to repairing and restoring gas delivery infrastructure,

Restoration Work at a Customer’s Home

Pipeline Restoration Work39