Technology
Development

Technology Development to Enhance Competitiveness andContribute to Total Energy Businesses
Strategic and Platform Technology
Development
Tokyo Gas broadly divides its technology development
activities into strategic technology development andplatform technology development. Strategic technology
development focuses on areas that contribute to theevolution of a total energy business with natural gas as itscore area, while platform technology development has asits goal the creation of basic technologies that will help toimprove competitiveness while also ensuring social needs,
including safety, security and the environment.
Priorities for strategic technology development include
the development of highly efficient fuel cell systems,
including PEFC and SOFC systems, and cogeneration
systems based on high efficient gas engines as well as technology for biomass energy, which is renewable. This work
aims to contribute to the evolution of Tokyo Gas as a totalenergy company, one of the goals defined in our mediumterm management plan. We are also developing technology
for advanced microgrid “holonic energy systems,” whichhave the potential to contribute not only to energy conservation and the reduction of CO2 emissions, but also to theimprovement of supply stability. Demonstration testing will
start in the current fiscal year.
We are also developing new gas appliances andservices to meet potential social needs. For example,
we are continually improving the performance of gas
cooktops and other appliances and developing convenient energy-related services. Another important goalfor our technology development activities is the proposal and dissemination of ideas about new ways to use

Technology Development
Strategies

gas to enhance the quality of life while helping to protect the environment.
Platform technology development is targeted toward
the improvement of technology used in the construction,
maintenance and management of infrastructure, especially pipeline networks, as part of our continuing efforts
to ensure that natural gas can be supplied safely to ourcustomers while continuing to improve competitivenessthrough cost reductions. Through this work, we arehelping to improve platform technologies in areas offundamental importance to Tokyo Gas, especially gas
quality management and combustion engineering, andensure that they are passed on to future generations.

The Tokyo Gas Group has an important social mission as a corporate group dedicatedto the vital task of supplying the energy needed for industrial activities as well as for

Fulfilling our
Commitment to
Corporate Social
Responsibility

day-to-day living. We must also remain acutely focused on the need to meet the
expectations of our shareholders and investors by continuing to achieve growth.
We are working actively to enhance the value of the Tokyo Gas Group for all
stakeholders, including customers, shareholders, investors and society, by fulfilling
CSR activities, including a strengthening of our corporate governance and promotionof compliance.

Technology Development system Linked with
Business Strategy
Under a new structure introduced in fiscal 2006, alltechnology development activities, from strategy formulation to project implementation, have been integrated
under the Technology Development Division. We also use
a “sponsorship” system, under which corporate
divisions and strategic business units commission andpay for R&D projects. This approach ensures close
collaboration and a strong linkage between technology
development and business strategy.
Despite a downward trend in R&D expenditure overthe past few years, there has been no reduction in R&D
activities. Instead, the effectiveness of R&D is beingenhanced by modifying approaches to technology
development and focusing resources on key areas.

Strategic Technology

Platform Technology
Business infrastructure
Holonic Energy System■ Expansion of microgrid■ Realization of Holonic Energy Society

Technology infrastructure

web For more information on our technology development activities, please see the Tokyo Gas website:24

http://www.tokyo-gas.co.jp/techno/index.html

25Corporate
GovernanceCorporate Governance Structure

Our Fundamental Concept of Corporate Governance

Customers

Society

Shareholders/Investors

General Shareholders’ Meeting

to shareholder interests, in keeping with ouring to the expectations of our customers,

continuous increase in corporate value androle as a joint stock company. This renewed

employees, business partners, communities andensure management soundness andawareness reflects increased inter-company

stakeholders, ultimately we also fulfill theneeds of our shareholders. Our corporate valueenergy sector, as well as the globalization ofis the overall sum of the value that we provide

clear targets.

the capital market.

to all stakeholders.

Our emphasis on shareholder interests is

For Tokyo Gas, the purpose of corporate

not incompatible with the continuing fulfill-governance is the continual refinement ofof our special role as a supplier of energy has

ment of our responsibilities as an utility com-

internal systems designed to maintain continu-

been reflected in a continuing commitment topany. In recent years, public interest in corpo-

al growth in corporate value by monitoring

the safe, reliable supply of city gas, and torate social responsibility has become so intense

corporate activities so that any issues can befairness in the provision of our services. We

that the economic and social values of a com-detected and remedied.

are keenly aware of the need to give priority

pany are now inextricably linked. By respond-

Independent Auditors

Energy supply systems are vital to thesocial infrastructure. The profound awarenessInquiry

Advisory
Committee

Board of Directors
AnswerReport

Audit

Audit

Collaboration

Financial
Audit

ReportPresident(Management Report Meeting)Management Ethics
Committee

PolicyReportMonitorInvestment Evaluation Committee(Company-wide Committee)

Promotion / Support

Internal Audit Dept.

competition following the deregulation of the

our corporate governance in accordance with

ReportReportCompliance Dept.

transparency. To this end, we are strengthening

ReportAppointment
Appointment

Board ofCorporate Auditors

The Tokyo Gas Group aims to achieve a

ReportReportRisk Management
Promotion Selection
ReportSupportReportStrategic Business Units
Internal
Audit

Collaboration

Management Structure

Initiatives for Strengthening Corporate GovernanceContinuous growth in corporate value

Progress toward Liberalization

Management
strategy

Organizational
Structure

Ensuring sound, transparent management

Announced in October 2002

Announced in January 2006

Medium-term management plan for
2000–2004: “New Utility Company”

Medium-term management plan for

Medium-term management plan for
2006–2010: “Creation and Cultivation of
New Natural Gas Markets”

Regional businessdivision system

2003–2007: “Frontier 2007”

June 1999-

April 2004-

Strategic business division system –• Strategic management structure capableof responding quickly to market trends

Strategic business unit system• Building of group management system• Maximization of group corporate value

July 1998Management
Structure

26

Announced in October 1999

Internal
Governance

Information
Disclosure

June 2002-

June 2005-

Reinforcement of Management Meeting
Management structure reform(abolition of Senior Management Committee • Reduction of regular number of directors
from 30 to 15
and Senior Management Liaison Committee)• Appointment of outside directors• Introduction of executive officer system• One-year term of office

Reform of officer remuneration system• Formulation and disclosure of basic policy• Abolition of retirement benefit system,and other measures

June 2002-

November 2002-

April 2004-

Reinforcement of internal audit
structure

Reinforcement of compliance system• Establishment of Management
Ethics Committee• Establishment of ComplianceDepartment

Reinforcement of risk
management system

June 1998-

July 1999-

June 2001-

April 2003-

April 2004-

July 2005-

Establishment ofspecialist IR
organization

Involvement of
top management in IR
activities

Start of overseas
IR activities• Earlier publicationof business results

Consolidated
accounting for allcompanies(All 51 companies in
consolidation)

Publication of
CSR Report• Introduction ofquarterly disclosure

Functions of the Executive
Officer Systembeen appointed as executive officers (as of July 1,

also began to appoint outside directors to2006). To ensure accountability for executive

enhance management transparency and

Growing awareness of the importance ofactions, all have been appointed for a term ofstrengthen our ability to supervise operations.

corporate governance has prompted many

one year. All officers at the executive officer

As of July 2006, the Board consists of 12

companies to modify their managementlevel and above, with the two corporate audi-

directors, including three outside directors.

systems. Since 2002, Tokyo Gas has

tors, gather to discuss important management

The presence of outside directors with special-

implemented a dynamic reform programissues at weekly management meetings. After

ized expertise and diverse backgrounds anddesigned to build an efficient and flexible

in-depth discussion, the President makes

ensures that there is always active debate atmanagement structure. In June 2002, we

immediate decisions. These meetings provide

board meetings.

became the first company in the city gas sec-

opportunities for exchanging views among divi-

tor to introduce an executive officer

sional chiefs, who have executive authority fortwo corporate auditors and three outside

system based on a clear division between

their respective operations. Because decisions

auditors. These five auditors conduct strin-

management and executive functions.

are made on the spot, these meetings tend to begent internal audits.

Responsibilities are also clearly defined, andlively and energetic.

by delegating substantial authority to theManagement actions are also checked by

Apart from the Chairman and Vice
Chairman, vice chairman and senior corporate

executive officers we have created a structure

Directors and Corporate Auditors

advisor, the other six directors appointed fromthat allows speedy executive action on

When Tokyo Gas adopted its executive officer

within Tokyo Gas are also involved in opera-

operational issues.

system, it also halved the number of directors

tions at the executive level. In addition to the

23 executive officers, including thefrom 30 to 15 to speed up decision-making. In

directors, board meetings are attended by the

President and division chief executives, haveaddition to curtailing the size of the Board, weinternal and outside auditors.

27

3. Share Purchasing Guidelines

lished an advisory committee to discuss mat-been considerable debate over the relative

All Directors, excluding outside directors, willters relating to the officer remuneration sys-

merits of the committee system and theacquire Tokyo Gas shares each month throughtem. In February 2005, this committee is

auditor system as suitable structures for

the Employee Shareholding Association. The

comprised of Outside Directors and Outside

reinforcing corporate governance. Tokyo Gas

amount purchased is determined according toCorporate Auditors, Chairman, Vice

currently operates as a company with

our newly introduced share purchasing guide-

Chairman and President to makes an impor-auditors, as we believe that this is the optimallines. The ownership of those shares will betant contribution to the soundness and trans-

method for attaining our corporate gover-retained during their terms of office.

parency of board activities.

Throughout the business world, there hasnance objectives, which are to ensure sound,transparent governance while achieving

Board of Directors and Corporate Auditors

Prior to imprementing the reform of theofficer remuneration scheme, we have estab-sustainable growth in corporate value. While
our auditors do not have voting rights, they
can speak freely and raise questions about
management decisions. They are able to view
our activities objectively and from a broader[The Basic Policy on the Remuneration for Directors]
1. The Role of the Officers and theRemuneration

ChairmanVice Chairman

President

Hideharu Uehara

Norio Ichino

Mitsunori Torihara

Executive Vice President

Executive Vice President

Executive Vice President

Senior Executive Officer

Senior Executive Officer

Shigero Kusano

Kouya Kobayashi

Tadaaki Maeda

Tsuyoshi Okamoto

Masaki Sugiyama

4. Establishment of the Stock Purchase
Guideline

perspective, and their input helps to guide our

The expected role for the directors is to

The stock purchase guideline is set with thedecision-making in appropriate directions.

improve the corporate value both in a short

objectives of adopting a shareholder’s view-

We are also confident that the presence ofterm and in medium to long-term and thepoint into management as well as promoting

outside directors and auditors ensures man-remuneration system should serve effectively

endeavors to improve the shareholder value inagement transparency while allowing us toas incentive to achieve this goal.

long term.

make good decisions promptly.
2. The Scale of the Officers Remuneration

5. Ensuring the Objectivity and

The Remuneration System

The scale of the officers remuneration needs toTransparency

In 2005, Tokyo Gas restructured its officer

commensurate with the officers role, duty and

In order to ensure objectivity and transparency

remuneration system and published details of

performance.

of the remuneration for officers, the members

the new system with the aim of further enhancing management objectivity and transparency
as well as clarifying the management responsi-

of remuneration scheme advisory panel are
3. Introduction of a Performance-linked
Remuneration Scheme

bility toward business performance. The main

Performance-linked remuneration schemefeatures of the new system are as follows:

purpose to provide stronger incentive to carryelected from outside directors, outside auditors
and the company directors.

out the management strategy as well as having
1. Abolition of Retirement Benefits

clearer linkage between the term business

Retirement benefits for directors have been

results and remuneration.

abolished. Yearly retirement benefits have been
integrated into monthly payments to officers.
2. Introduction of a Performance-linked
Remuneration Scheme
Performance-linked remuneration scheme thatreflects the company-wide and divisional performance of the previous term, has been introduced for the monthly payment of Directors
who double as executive officers.

Compensation for Directors and Corporate Auditors (Fiscal 2005)
Millions of yen

Thousands of U.S. $Compensation for 12 directors (1 resigned during the term)

450

3,846

Retirement benefits for directors

81

692

Compensation for 6 corporate auditors (2 resigned during the term)

90

769

Retirement benefits for corporate auditors

38

325

659

5,632

Total
Compensation for independent public accountant (Fiscal 2005)

Millions of yen

Compensation for auditing services
Compensation for other services
Total*Basic Policies on Officer Remuneration

28

Thousands of U.S. $

143

1,222

6

51

149

1,273

Senior Corporate Advisor

Outside Director

Outside Director

Outside Director

Kunio Anzai

Yuzaburo Mogi

Yuri Konno

Kazumoto Yamamoto

Chairman

Hideharu Uehara

Outside Director

Yuzaburo Mogi

(Chairman & CEO, Kikkoman Corporation)

Vice Chairman

Norio Ichino

Outside Director

Yuri Konno(President & CEO, Dial Service Co., Ltd.)

President

Mitsunori Torihara

Outside Director

Kazumoto Yamamoto (Advisor, Asahi Kasei Corporation)

Executive Vice President Kouya Kobayashi

AuditorHiroshi Hirai

Executive Vice President Tadaaki Maeda

AuditorTsunenori Tokumoto

Senior Executive Officer Tsuyoshi Okamoto

Outside Auditor

Masayoshi Hanabusa(Chairman, Board of Directors, Hitachi Capital Corporation)

Senior Executive Officer Masaki Sugiyama

Outside Auditor

Toshimitsu Shimizu(President, Yokohama Industrial Development Corporation)

Senior Corporate Advisor Kunio Anzai

Outside Auditor

Shoji Mori

(Vice Chairman, Institute for International Economic Studies)

Executive Vice President Shigero Kusano

29

Internal GovernanceCompliance Structure

Establishing Risk Management
Systems

established an integrated group-level risk
management system. This system includes risk

mote compliance include the establishment ofUnder our internal governance system, man-

management regulations, and there are docu-

the Management Ethics Committee in 2002.

Organizational measures designed to pro-agement supervision is mainly the responsibili-mented rules concerning the principal man-

Chaired by the President, this committee to for-ty of the Board of Directors, while executive

agement risks that require management inter-mulate basic compliance policies and assess theofficers are responsible for operational

vention. A section for promoting risk manage-state of compliance with laws and regulations.

management, policy management and budget

ment has been established within the Audit

We have also established the Compliancemanagement. The performance of directors is

Department to coordinate risk management

Department, a specialized organization that

also audited by two internal and three outside

activities. In 2003, the section undertook

conducts a variety of activities, including theauditors. Additionally, we have created an

research targeting divisions and group compa-

development of compliance promotion systems

Internal Audit Department, which reports

nies. The aim of this work was to identify

and behavior standards, training and education,

Board of Directors
President

Corporate Auditors

ReportManagement Ethics Committee
Chairman: President
Members: Head of divisions/departments

ReportReportInternal Audit Dept.

Compliance Dept.
Instruction/report
Support/report

Each division/business unit

Compliance committees
Consultation/notification

directly to the President, to administer

shifts in the Group’s risk profile, and to moni-

the reduction of compliance risk, the provisioninternal audits based on the risk approach.

tor and assess steps taken to counteract riskof consultation, and the distribution of informa-factors. Principal management risks weretion within and beyond the Tokyo Gas Group.

four groups with responsibility for financial

reported to the Management Meeting and theCompliance committees have also been estab-

audits, operational audits, information system

Board of Directors. This list of significant

lished within individual business divisions andaudits and compliance audits. In 2002 therisks is updated each year on the basis of new

strategic units to create a mechanism that vol-number of staff was doubled from 18 to 36,

surveys conducted at regular intervals.

untarily and continuously promotes compliance

The Internal Audit Department consists ofand in 2006 the number was further increased

activities according to the basic policy.

Compliance audit(risk understanding)

Each department ofTokyo Gas

Subsidiaries & affiliates

Report/consultation

Report/consultation

Employees

Disclosure Policy

to 40. Internal audits cover Tokyo Gas Co.,

Promoting ComplianceLtd. and all consolidated subsidiaries. Each

The value of our brand “security, safety andto execute effective self-purification as a com-business unit is objectively audited to ensure

reliability” which is essential to the competi-pany by discovering and solving problems at an

Together with the establishment of risk

The Tokyo Gas Group has long had a policy

One indicator of the importance that thethat it is operating appropriately, efficiently

tiveness of the Tokyo Gas Group, depends onearly stage through operating internal andmanagement systems and the improvement ofof setting short- and medium-term management

Tokyo Gas Group places on IR activities is theand in accordance with business policies andbusiness activities continuing to comply withexternal counselling contracts appropriately. In

compliance, information disclosure plays angoals and disclosing all specific management

active involvement of top management. Ourplans, and in compliance with laws and regu-

laws and regulations in accordance with social

addition, we conduct annual surveys on compli-

essential role in a company’s efforts to ensure

strategies and action plans used to achievesenior executives have attended IR meetings

lations. Audit results are reported to the

ethics. That is why we are working toance awareness to reflect the results in the ini-

management soundness and transparency andthose goals. We also actively publish informa-with investors and analysts in Japan since July

President, the Management Meeting and thestrengthen our compliance structure by “fos-tiatives of the following years. We also reduceto earn the support and trust of stakeholders,tion about our progress and achievements. The

1999, and overseas, since June 2001.

auditors, and also to the divisional chief exec-

tering compliance awareness,” “engaging

the risks steadily by implementing complianceincluding shareholders and investors.

Tokyo Gas Group believes that disclosure

utives responsible for business units, and to theboth policy in the whole Group and practice inaudits conducted by the ad-hoc organizationpresidents and auditors of group companies.

each work place” and “establishing a PDCA
cycle for compliance.”

We are also developing a separate risk

In response to the compliance risks, we try

should not be a one-way process, and we active-

team conduct IR road shows in Japan andunder the Internal Audit Department andvalue viewed by a company’s management andly foster in-depth, two-way communication withoverseas twice each year. They also attend

through its follow-up activities.

the company’s evaluation by the market. This

shareholders and investors by holding briefings,

many meetings and make themselves available

gap has tended to widen in recent years because

seminars and other events.

for numerous individual interviews.

management system, and in fiscal 2003 weof the presence of a more diverse range ofPrincipal Management Risks
Disaster and accident risks

Accidents leading to the disruption of production and supply, natural disasters, disruptions to raw material procurement

continually improving our IR tools, which

vidual investors, in the Japanese stock market.

include annual reports, investor guides,

We believe that the purpose of IR activities is

IR websites and the Tokyo Gas newsletterto shareholders.

Market risksMarket price fluctuations affecting real estate and financial assets, etc.,
weather fluctuations, etc.

Business strategy risks

Risks to existing businesses (increased competition, declines in existing
demand, changes to laws, regulations and systems), inappropriate action
on product recalls, ROI risks

ing information.

Social responsibility risks and other risk
*Please refer to P42–43.

Information leaks, failures or malfunctions in backbone systems, loss of
telephone services to call centers
Environmental risks, compliance risks, risks associated with corporate
responsibility and customer service

We have also developed and areinvestors, including foreign investors and indi-

to close this gap between the market value andInformation risks

the real value of a company by actively disclosShareholder/Investor Meetings in FY2005
Financial meetings and others
Small meetings: Individual investors(Visiting overseas investors)
Facility tours for investors (Individual)(Institutional)
Large meetings: Individual investors

30

Currently, members of the top management

There is inevitably a gap between corporate

6
275
(99)
3
3
3

31

Initiatives
for Environmental
Protection and
SafetyGroup Management Structure
The Tokyo Gas Group currently consists ofindustry. Management believes that to survive

from the formulation of business strategies toTokyo Gas Co., Ltd. and 54 subsidiaries and 1

and succeed in this harsh competitive environ-the allocation of management resources andContribution to the Environment
through Our Business Activities

affiliated companies. Traditionally, the Tokyo

ment, Tokyo Gas needs to focus all of its Groupthe management of operations. The aim is to

All major companies now regard environmental

Gas approach to group management allowed

resources on the same objective. In April 2004,

improve competitiveness by maximizing Group

preservation as an essential aspect of their cor-individual Group companies to develop their

it introduced a new group structure known aspotential. To ensure speedy and flexible deci-

porate social responsibility, and businesses inbusiness activities independently, and eachthe “strategic business unit” (SBU) system.

company was expected to be self-sufficient andUnder this system, Tokyo Gas divisions are

sion-making and management, wide-ranging

the energy sector are seen as having a particu-

Comparison of Emission Levels (Coal=100)
SOx
Natural Gas

0

Oil
70

CO2

NOx
Natural Gas
Coal

Oil

Coal
100

Natural Gas

20-40

70

60

100

Oil

Coal

80

100

authority and responsibility have been delegat-

larly important part to play. Tokyo Gas isself-driven. However, with the deregulation ofwith Group companies as business units.

ed to the divisional chief executives who leaddetermined to be a leader in environmental

the energy sector, Tokyo Gas now faces escalat-

Within each unit, Tokyo Gas and its Groupthe business units.

management and has based its efforts to over-is natural gas, which is the most environmentallyby natural gas, and natural gas vehicles. These

ing competition from within and outside of thecompanies work closely together in all stages

come environmental problems on four basic

friendly fossil fuel. When burned, natural gas

technologies are all helping to prevent global

policies. First, we will reduce the environmental

produces no sulfur oxides and just 20–60% of

warming and atmospheric pollution.

load resulting from our customers’ use of ener-

the amounts of nitrogen oxides and carbon diox-

Tokyo Gas has compiled its own environmen-gy. Second, we will reduce the total environ-

ide emitted by petroleum and coal. The supply oftal protection guidelines designed to ensure thatmental load resulting from our own businessnatural gas is the core activity of the Tokyo Gas

the advantages of its city gas business are applied

activities. Third, we will strengthen our envi-

Group, and we are extremely well positioned todirectly to environmental protection. These guide-ronmental partnerships with regional communi-

contribute to protection of the global environ-lines include a specific numerical target, whichties and the international community. Fourth,ment through our involvement in the develop-

call for a reduction in carbon dioxide emissions

we will promote research and development

ment and management of gas supply infrastruc-

resulting from gas use by Tokyo Gas customers

relating to environmental technologies.

ture, the development of new uses, such as gas

and by 8 million tons until fiscal 2010.

Group Management Structure

Top Management
Compliance Dept.
Internal Audit Dept.

Strategic Planning Div.

Tokyo Gas is involved primarily in the citycogeneration systems, gas floor heating systems,

gas business. The main gas resource for city gas

residential fuel cell cogeneration systems fueled

Corporate Service Div.
Technology Development Div.

Corporate Communication Div.

Global Warming Prevention Measures

Information Technology Div.
Strategic Business Units

Pipeline Network
Div.

Residential SalesDiv.

Energy Sales andService Div.

Regional
Development Div.

Executive Officers
President
Executive Vice
President

Mitsunori Torihara
Shigero Kusano

Executive
Officers

Norikazu Hoshino
Deputy Chief Executive, Corporate Service Div. General Manager, Purchasing Dept.
Assistant to Chief Executive, Corporate Communication Div.
Dispatched to the Japan Gas Association

Kouya Kobayashi

Yasuhiro Hiruma

Tadaaki Maeda
Chief Executive, Strategic Planning Div.

Masahiro Ishiguro
Chief Executive, Corporate Service Div.

Senior Executive Tsuyoshi Okamoto
Chief Executive, Corporate Communication Div.; Compliance Dept.; Internal Audit Dept.
Officers

Masaki Sugiyama
Chief Executive, Pipeline Network Div.; General Manager

Toshio Tezuka
Chief Executive, Regional Development Div.

Shigeru Muraki
Chief Executive, Technology Development Div.

Seiichi Nakanishi
Chief Executive, Residential Sales Div. President of Gastar Co., Ltd.

Tadashi Kaburagi
Chief Executive, Information Technology Div.

Toshiyuki Kanisawa
Chief Executive, Residential Sales Div.

Tsutomu Oya

3. From a global perspective, the Tokyo Gas Group willcontribute to the prevention of global warming byidentifying greenhouse gas reduction or absorption
projects in other countries, and by providing technical support for those projects.

Kunihiro Mori

Chief Executive, Energy Sales and Service Div.; General Manager, Volume Sales Dept.
Chief Executive, Energy Production Div.

2. The Tokyo Gas Group aims to reduce unit energy
consumption in its business operations by anaverage of at least 1% per year over the medium-term future.

Green Purchasing Guidelines

1. Industrial waste field
There are major differences in the ways in which
industrial waste is produced in manufacturing plants(production sites) and through other activities, such as
construction. These categories will therefore have separate targets.
Tokyo Gas will achieve zero emission status at all
manufacturing plants by fiscal 2010.
Tokyo Gas will increase its recycling ratio for otherwaste, including construction waste, to at least 91%
by fiscal 2010.

1. The green purchasing ratio for items purchased fromelectronic catalogs will be increased to at least 70%
by fiscal 2010.
2. Tokyo Gas will encourage all group companies
included in the consolidated accounts to introduce
the electronic catalog purchasing system and implement green purchasing systems by 2010.
3. Tokyo Gas Group will promote green purchasing
within the Tokyo Gas Group in accordance with thegreen purchasing promotion guidelines.

2. Waste paper (paper recycling)
Tokyo Gas will increase the recycling ratio for waste
paper from its offices to at least 85% by fiscal 2010.
The amount of copier paper used will be reduced to5,000 sheets per person per year by fiscal 2010.
3. Excavation spoil
The amount of excavation spoil from road excavations
ordered by Tokyo Gas will be reduced to 15% by fiscal
2010, through volume reductions, reuse and recycling.

General Manager, Corporate Communications Dept., Corporate Communications Div.

Mikio Itazawa
General Manager, Pipeline Dept., Pipeline Network Div.

Michiaki Hirose

Results for Fiscal 2005 and Targets for Fiscal 2010
Result for FY2005

General Manager, Corporate Planning Dept., Strategic Planning Div.

Kazuo Yoshino
General Manager, Finance & Managerial Accounting Dept., Strategic Planning Div.

Hisao Watanabe
General Manager, Technology Planning Dept., Technology Development Div.

Akio Maekawa
Coordinator, Energy Sales and Service Div.

Manabu Fukumoto
General Manager, General Administration Dept., Corporate Communications Div.

Matsuhiko Hanba
General Manager, Personnel Dept., Corporate Service Div.

Reduction of CO2 emissions from customers’ facilities
Unit energy use in gas production facilities (Per unit of gas production)
Unit energy use in district cooling/heating systems (Per heat sales volume unit)
Unit energy use in Tokyo Gas business offices (Per city gas sales volume unit)
Industrial waste (manufacturing plants)
Recycling of industrial waste (except manufacturing plants)
Recycling of waste paper
Sheets of copy paper used per person per year
Excavation spoil ratio
Green procurement ratio
Global warming

Energy Production
Div.

1. In its city gas business, the Tokyo Gas Group aims
to reduce CO2 emissions from customers’ facilities
by 8 million tons by fiscal 2010, by promoting theuse of natural gas, and by improving the efficiency
of equipment and systems used with city gas.

Resource Recycling Promotion Guidelines

Resource circulation

Energy Resources
Div.

Source: IEA Natural Gas Prospects (1986), Natural Gas Prospects and Policies (1991)

6.22 million tons*
4.5 % reduction*
0.7 % reduction
6.0 % reduction*
Zero emission status at 5 sites

93 %84.8 %
8,000
18 %
58 %

Target for FY2010

8 million tons
1 % reduction
1 % reduction
1 % reduction
Zero emission status at all sites

91 % or more
85 % or more
5,000
15 %
70 %

*Five-year average reduction

Chief Executive, Energy Resources Div.

web Please see the CSR Report for further details http://www.tokyo-gas.co.jp/csr/

32

33

about environmentally friendly lifestyles andrate of approximately one per square kilometerenergy conservation through pamphlets andwhich can be defined as the world’s most highwebsites. Other activities designed to raise con-densely located pipeline safety system. This sys-

sumer awareness of the environment include

tem is designed to stop the supply of gas“Eco-cooking” courses and training programs

through the pipeline network and to shut down

for eco-cooking instructors. We are alsotransmission facilities and plants if a severe

expanding the scope of our environmental coop-earthquake occurs.

eration with government agencies, other comEco-cooking Instructor-training Seminar

Because city gas is part of the infrastructure

panies, NGOs and other related organizations.

needed to support daily life, the restoration of

As a leading company in the city gas indus-

supplies after earthquakes is as important as

try, Tokyo Gas is working through its research

accident-prevention and emergency responseand development activities to establish newmeasures. Tokyo Gas has implemented a fulltechnologies to expand the use of natural gas.

range of countermeasures at all three levels. In

Recent research projects have yielded numer-

addition to its emergency shutdown functions,ous important advances, including a residential

SUPREME is also designed to gather damage

fuel cell cogeneration system, and a high-effi-

data quickly, allowing us to build a detailed

ciency SOFC system.

picture of the situation within about 20 minutesof an incident. We have also developed a range

Residential Fuel Cell Cogeneration System LIFUEL

Safety and Disaster
Prevention Measuresof countermeasures, including a sophisticatedrestoration support system to ensure that gas

Energy is essential for the maintenance of eco-supplies are restored as quickly as possible

Building Environmental
Management Systems

nomic activity and living standards. As a suppli-

after an earthquake.

As part of its own environmental conservation

safety responsibilities and has worked through-efforts, Tokyo Gas obtained ISO 14001 certifi-

out its history to fulfill those responsibilities.

er of energy, Tokyo Gas is keenly aware of its

cation for all of its operations and sites in

Residential gas appliances are used by a

March 2005. This process has resulted in thewide range of customers. Tokyo Gas has devel-

establishment of corporate environmental man-oped enhanced safety features for these appli-

agement systems (EMS) that conform to theances, including systems to turn off the gas ifinternational standard for environmental man-the pilot light is extinguished, and temperatureagement systems. Starting in fiscal 2005,

sensors to prevent fires. One of the organiza-

Tokyo Gas is now helping its consolidated

tional units established by Tokyo Gas to ensure

Group companies to implement EMS andsafety is “Gas light 24,” which monitors gas

obtain ISO certification. We have also estab-

supply systems for leaks and other problems 24

lished the “Chairman’s Prize of thehours a day, 365 days a year. In addition, every

Environment,” which is awarded in recognition

gas appliance used by customers is checked forof forward-looking environmental protection

safety at least once every three years.

efforts. Through these initiatives, Tokyo Gas isJapan is an earthquake-prone country.

working to expand and enhance the efforts ofTokyo Gas has implemented multiple precau-

the “All Tokyo Gas” companies including non-tionary measures to maintain a high level ofconsolidated affiliate companies that cooperate

safety in the event of an earthquake. If majorin activities to prevent and overcome environ-seismic activity is detected, microchip-con-mental problems.

trolled gas meters in customers’ houses auto-

Tokyo Gas has also worked for many years

also installed the Super-dense Real-timeships through improved environmental commu-

Monitoring of Earthquakes (SUPREME) sys-

nication. We continue to distribute information

tem, containing seismic sensors placed at the34

Current

Center for Supply Control andDisaster Management

matically shut off the supply of gas. We haveto strengthen its environment-related partner-

web http://www.tokyo-gas.co.jp/csr/

Control Room

SUPREME Seismic Sensors