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Introduction

Management
Message

How We Create Value

Compass2030
Vision and Strategy

Invisible
AssetsInvisible Assets

INVISIBLEASSETSTokyo Gas Integrated Report 2021
29

TCFD

Corporate
GovernanceBusiness
Overview

Financial Data

Back To Contents

Introduction

Management
Message

How We Create Value

Compass2030
Vision and Strategy

Invisible
AssetsCorporate
Governance

TCFD

Business
Overview

Financial Data

Personnel Strategy

Personnel
Strategy

Personnel hiring and development

Hiring personnel with highlevels of expertise

Strategic shift to growthdomains

In order to continue to create value withcustomers, business partners, and society while
becoming a leader in the future energy system,
we strive to hire and foster personnel who canflexibly cope with the changing businessenvironment and play a core role in diverse fields.

In addition to hiring new
graduates for specific job types(in humanities, sciences andthe professional domain), we
also engage in flexible hiring ofstudents excelled in certain fields
as well as experienced and highlyspecialized mid-career personnel.

In addition to our gas business,
we also prioritize assignment ofpersonnel to strategically-importantfields such as our overseas, electric
power, trading and other business
operations. In this way, we arepromoting growth and expansion ina diverse range of fields.

Specific initiatives(Improving productivity and achieving a healthy
work-life balance)

1

We will produce workthat will have a major
impact on society.
We commend a spiritof taking on challenges
and the ability to learn
from mistakes.

2 Three Promises 3

We will create avenue for encounterswith diversity andfriendly competition.

The Tokyo Gas Groupwill be a gathering placefor diverse thinking andexperience.

We will emphasize
the self-fulfillmentof each person.
We believe in thepotentia of eachindividual andwill support eachemployees activities.

We train business leaders who willlead the Tokyo Gas Group in thefuture, with a training program that
focuses primarily on development
through a wide range of on-the job
training (OJT) experiences gainedby means of transfers and rotations,combined with additional off-thejob education and training (OFF-JT).

Hiring, fostering and placing of personnel who realize “Compass2030”

Workstyle reform

Through the realization of the Three
Promises defined in the Compass2030, weaim to develop personnel who work
energetically, make maximum effective useof their abilities, and consistently deliver
strong results.
To this end, we are working on
promoting workstyle reforms and diversity& inclusion so that each and every
employee can make maximum use of theirknowledge, ability, and experience.

Developing business leaders

Collaborative work space of a new
office of the Digital Innovation Division

External Evaluation

Promoting workstyles with awareness ofthe value of time

In order to enable each and every one of ouremployees to work energetically and makemaximum effective use of their abilities, we areworking proactively to rectify and reduce long
working hours, and to implement workstylereforms with awareness of “the value of time,”
which we regard as important issues for
management involvement.

Selected
as aNadeshikoBrand

Each workplace to set a day that everyone leaves
office on time, etc.

Environmental improvement to allow diverse personnel todisplay their full potential

GrantedKurumincertification

Introducing a “Work Anywhere” program which eliminates restrictions on working
location (work at home, mobile work)
Improving satellite shared offices
Improving the office environment toward further improvement in productivity
Working to create workplaces that enable innovation to occur
Work in a Free-form Animated Manner (online video conferencing, office reforms, etc.)
Promoting automation / mechanization using ICT, and more sophisticated useof data (utilizing RPA, audio AI, etc.)

Selected asa Health &Productivity
Stock

Promoting diversity & inclusion(Promoting active roles for diverse personnel)

Targets and results

The Tokyo Gas Group has established a basic
policy to promote diversity & inclusion with theaim of becoming a corporate group in which
each and every Group employee can makemaximum effective use of their knowledge, skills
and experience, and play an active role. Based on
the “Diversity Top Management Commitment,”
we are promoting diverse workstyles andempowerment of diverse personnel, including
women’s empowerment, more employment ofdisabled people, and support for the careerdevelopment of employees in their 50s and over.

Targets in promoting women’s empowerment

FY2020 results

11% or more for the ratio of women in management by
fiscal 2025

8.7%

100% utilization rate for a system that helps both male andfemale workers balance careers and taking care of children

93.5%30(persons)

Women in management
Management
Ratio of women in management

4,000First female
officer
appointed

3,500

Specific initiatives
Promoting
employment ofpeople
with disabilities

Employment rate of 2.54%, exceeding themandatory rate (as of June 2021)
Established a liaison committee to promote
employment of disabled people as a group
Working to create safe and comfortableworking environments

Careerdevelopment
support foremployees in their50s and overEstablished the “Grand Career System” tosupport career development for employees
in their 50s and over, through training sessions
and interviews with career consultants, etc.

Tokyo Gas Integrated Report 2021

Ratio of women in management at Tokyo Gas

First female
Managing
Executive Officer
appointed

Second female
officer
appointed

9.2%

3,000
2,878
500

2640
2013

2015

2017

2019

2021

Back To Contents

Introduction

Management
Message

How We Create Value

Compass2030
Vision and Strategy

Invisible
AssetsTCFD

CorporateGovernanceBusinessOverview

Financial Data

Lifeval (the last mile operator)

Lifeval—the last mile operator of Tokyo Gas
Speedy response to customers
and various efforts made in directcontact with them

Maintenance Group,Izumi Outlet
Yokohama Totsuka
Tokyo Gas LifevalTokyo Gas Ecomo Co., Ltd.

ABE Masaru

Our bonds and relationships of trust withour customers, developed over the past 136years, are our greatest strength.
Tokyo Gas Lifeval acts as the face ofTokyo Gas in each community. We precisely
meet customers’ needs and serve as a
one-stop provider of products and services
that help improve the quality of life, in orderto build close ties with individual customers.

associates and learned how to communicate
well with customers. I now can make proper
greetings and explanations to customers bymyself, depending on their situation. I try to
speak slowly and clearly to elderly customers,
while I explain repair details concisely andaccurately with fewer words to customers whoare busy. To every customer, I make sure to say
after the repair, “Please feel free to let meknow if you have any problems related to yourresidence, other than gas appliances.” This has
led to consulting about customers’ plumbing
problems and receiving a designated order forrenovations in many cases. I will continue tomake various improvements so that I canreceive new requests.

I am in charge of repairing gas appliances in anarea of around 150,000 households in Izumiku, Totsuka-ku, and Sakae-ku in the city ofYokohama and I visit 5-10 customers per day.
When a customer requests a repair, I try mybest to visit the customer as soon as possible
and promptly complete the repair, so as not tocause inconvenience to the customer’s life. I
also have to tailor my visit to the lifestyle ofthe customer who will be present for the repair
and efficiently and safely complete the repair.
In order to accomplish this, I make continuous
efforts to obtain knowledge and know-how
needed for the repair, and to prepare inadvance and bring all parts which may possibly
be needed, depending on the type of repair.

when I am in the neighborhood. Such small
encounters, when they accumulate, enhance
relationships of trust with customers, capture
their needs in a timely manner, and lead tonew business opportunities. I am determined
to continue to enhance my technical skills,
cherish the contacts with customers, and help
them to create a safe, reliable, and pleasant
lifestyle.

As the last mile operator of Tokyo
Gas, we are committed to helping
support customers’ lives

Communication aimed atobtaining new business
opportunities

Our job is to closely ascertain the needs ofcustomers through direct contact with themand provide solutions that are actuallynecessary. This cannot be possible unless weestablish bonds and relationships of trust withcustomers. In addition to conducting thoroughand reliable repairs, I try to remember thecustomer’s name and the conversation I had in
the past and to show up at their residence

I am in my twelfth year with the company.
When I was assigned to repairs, I had little
specialized knowledge of repairs. I havetherefore absorbed knowledge and knowhow
from my seniors and steadily accumulatedexperience. I have also accompanied my sales

Tokyo Gas Integrated Report 2021
31

Bonds with customers*1
Communitybased

Directcontacts

Outlets
Employees
Repairs,
etc.*2 andperiodic safety
inspections*3156 outlets
13,0005.2
million contacts*1 Including Enesta and Enefit*2 Repairs, etc. include opening/closing of gas fixtures.
*3 FY2020 results

Back To Contents

Introduction

ManagementMessage

How We Create Value

Compass2030
Vision and Strategy

Invisible
AssetsCorporate
Governance

TCFD

Business
Overview

Financial Data

Engineering capability

LNG infrastructure engineering capability
Accumulated “user know-how”
regarding LNG engineering

pipelines for the stable, safe supply of gas, weare also experienced in a wide range ofengineering services, from feasibility studies andplanning to design, construction, and O&M.

Since 1969, when we first imported LNG in Asia,
Tokyo Gas Engineering Solutions Corporation(TGES) has been engaged in the LNG value chain
from upstream to downstream. The company isaccumulating “user know-how”, thanks to its
technologies, knowledge, and experience,
obtained from design, construction, andconsulting services for close to one half of theLNG terminals in Japan (20+), including LNG
receiving terminals owned by Tokyo Gas(Sodegaura, Negishi, Ohgishima and Hitachi), andtheir operation and maintenance (O&M).

Overseas achievements
Being accredited for advanced LNG technologies
cultivated in Japan and our abundant experience,
we have been engaged in LNG engineering
services overseas since the late 1970s. Our list ofachievements includes more than 20 LNG

terminals and over 100 projects in 20 countries
and regions. We are further advancing ourengineering capability and know-how by utilizing
our network of engineers and engineering
companies in various countries, which wasestablished through overseas projects. Such abusiness growth spiral has helped us to receive alarge-scale consulting service project that
required about 60 personnel and to acquire anentire management order for construction of alarge LNG terminal in recent years.

TGES’ Overseas Project Achievements

World top-class LNG engineering
Russiacapability

The Tokyo Gas Group plans to leverage its
LNG infrastructure engineering capacity,
cultivated in the LNG value chain fromupstream to downstream for a half century,
and aims at overseas business expansion
mainly in Asia, where demand for naturalgas is increasing.

We have accumulated “user know-how”
regarding LNG facilities—from tanks and othermain facilities to peripheral ones of LNG
terminals— as we became an expert on various
and numerous LNG facilities in Japan andoverseas and mastered “what works” and “whatdoes not work” through abundant design
experience and O&M practice over many years.
We thus provide numerous engineering solutions
to improve reliability, reduce risks, and raise
efficiency and achieve labor saving in O&M fromthe customer’s viewpoint. With regard toU.K.
SpainPortugal
CyprusSouth Korea
China
TaiwanPhilippines
VietnamSingapore
Indonesia

UAEPakistanIndia
Bangladesh
Myanmar

Australia
ThailandTokyo Gas Integrated Report 2021
32MexicoBack To Contents

Introduction

ManagementMessage

How We Create Value

Compass2030
Vision and Strategy

Invisible
Assets

TCFD

Corporate
GovernanceBusiness
Overview

Financial Data

Energy supply infrastructure

Safe and stable energy supply infrastructure
Measures to help customers use gas with ease of mind
Earthquake-resistant production andsupply facilities

Monitoring and control of production
and supply facilities, and safety
inspection of gas facilities

We adopted structural designs with superioranti-seismic properties for LNG terminals, andintroduced materials that are resilient to grounddeformation to our pipeline network. As a result,
our city gas production and supply facilities arehighly resistant to seismic activity, even in thecase of major earthquakes, such as the Great
Hanshin-Awaji (Kobe) Earthquake, or the Great
East Japan Earthquake.

The Supply Command Center performs 24/7
monitoring and control of the status of operationof city gas production and supply facilities. When
the Safety Command Center receives gas leakreports from customers, personnel at Gaslight 24
will immediately visit the reporting customer totake swift action even on holidays or at night.
We conduct inner-pipe leakage testing andperiodic safety inspections of gas appliances for
all customers at least once every four years.

Development of a disaster-readinesssystemIn order to help our customers use gas withease of mind, we are working on various safetymeasures. They include earthquake-resistantmeasures for production and supply facilities,
development of a disaster-readiness system fora large earthquake, and safety inspection ofcustomers’ gas equipment.
In order to fulfill our public duty as an integrated
energy company, we intend to further enhance theresilience of our natural gas infrastructure in theTokyo metropolitan area, which is the center ofpolitics, the economy, and industries.

We have developed a disaster-readiness system,
which subdivides our low-pressure pipeline
network into approximately 300 blocks andremotely stops the supply of gas, in block units,depending on the extent of the damage. This
enables minimization of the impact of supply
stoppages and prevention of secondary damage.
Moreover, in order to resume gas supply toareas without damage on the day of theearthquake, we have adopted a remote operating
system to resume gas supply to such designatedareas. This system has been in place since fiscal
2014.

Safety know-how and measures toprevent earthquake disasters
Resistance toseismic
activity

Subdivision ofunits for supply
stoppage inthe event of anearthquake orother disasters
Periodic safety
inspection

High level of resistance to seismic
activity, even in the case of major
earthquakes, such as the Great
Hanshin-Awaji (Kobe) Earthquake, or
the Great East Japan Earthquake
Subdivided the medium-pressure
pipeline network into 25 blocks
Subdivided the low-pressure pipeline
network into approx. 300 smaller
blocksInstallation of 4,000 seismometers (SIsensors)
2.66 million (FY2020)

Tokyo Gas Integrated Report 2021
33

Enhancement of resilience functions
We are accelerating enhancement of theresilience of our natural gas infrastructure in theTokyo metropolitan area by creating our second
circular trunk pipeline network through the
opening of the Ibaraki Main Pipeline in March
2021 and by enhancing cooperation with local
governments and other infrastructure companies.
Division of themedium-pressure
pipeline network

Division of the
low-pressure
pipeline network

25 medium-pressure blocks

Approximately 300
low-pressure blocks