57

Invisible Assets

ESG initiatives

Environmental, Social, GovernanceTokyo Gas Sustainability Report 2019tokyo-gas.disclosure.site/en

CSR priority issues (materialities) and contributing to the achievement of Sustainable Development Goals (SDGs)
CSR priority issues (materialities)

Materiality
Stable supply of gas and electricity

Stable supply of energy both in Japan andoverseas

P25

Stable procurement of raw materials
Construction of energy infrastructure in developing countries

Strategy

Safety and disaster prevention / readiness

Robust energy platform

Sustainable urban development and comfortable lifestyles

Conversion of society overall to a low-carbon
society through the supply of energy

P25

Measures against global warming
Promoting recycling of resources

P05

Promoting conservation of biodiversity
Creating an organization full of energy and vitality

Infrastructure

P39

Building good relationships with stakeholders

Fulfilling our public duty as an energy company

P55
P31
P52
P25

Governance and compliance
Under the Basic Policy on CSR to tackle social challenges through our business activities, we seek to maintain the security andsafety of people’s lives by providing a stable supply of energy, which is the foundation of daily life and industry, and to play ourpart in building a sustainable society by supplying energy that excels in environmental consideration. As for promoting activities,
we make assessment and improvement of targets that have been identified for each materiality, while making clear the relationshipbetween materialities and SDGs to help achieve the SDGs through CSR management.

ESG

Highlights

E Environmental
By developing and promoting widespread use of highefficiency equipment, and expanding use of distributed
power generation systems, we reduced the amountof CO 2 emissions by 4.52 million tons in fiscal 2018 incomparison with fiscal 2011.

110,000

Reduction in CO2 emissions during consumption of city gas by customers

Gas cogeneration system’s power generation efficiency

4.52

million tons

CO2

Cumulative sales of ENE-FARM

units

52%

CO2

Concerning the residential fuelcell system ENE-FARM thathelps enhance energy efficiency
and reduce the amount of CO2emissions, we as vendors reached
110,000 units in cumulative salesof ENE-FARM in December 2018.

By promoting development ofhigh-efficiency gas cogeneration
systems, we developed
commercial-use fuel cells withpower generation efficiency of
52% and total efficiency of 90%.

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TOKYO GAS INTEGRATED REPORT 2019

Stable supply of gas and electricity
Stable procurement of raw materials
Construction of energy infrastructure
in developing countries
Stable Supply of Energy

Development of
Sustainable Communities

Development of
Innovative Technologies

Response to Climate
ChangeSafety and disaster prevention
Sustainable urban development

Further promoting CSR management
Given heightened expectations and requests nowadays tocompanies to help realize sustainable society, we unified theEnvironmental Affairs Department and the CSR Room of theCorporate Communications Department and established theSustainability Promotion Department in April 2019. In addition,
we have reorganized the CSR Promotion Committee chaired by
an officer in charge to a Sustainability Committee chaired byPresident, with the aim of further promoting CSR management.

CSR promotion organizational chart

Measures against
global warming

Strategic initiatives

Infrastructure
initiatives

Board of Directors
Creating an organization full ofenergy and vitality
Building good relationships withstakeholders
Fulfilling our public duty as anenergy company

Corporate Executive
Committee

Sustainability Committee
Chairman: Representative Director,President & CEO

Most relevantmaterialities toTokyo Gas

Sustainability Promotion Committee
Chairman: Officer in Charge ofSustainability
Executive Office: Sustainability Promotion Dept.

Leveraging our insights and technologies accumulated infrom over 130 years of operations in the energy business,
we focus on Sustainable Development Goals (SDGs) 7, 9,11, and 13 and promote initiatives that contribute to solve
social issues by engaging with our stakeholders.

Business
departmentsof Tokyo Gas

Subsidiaries

S Social

G GovernanceAs a general gas pipeline operator, we provide clean city gas
to over 11 million customers via a gas pipeline network of over
60,000 km. We had no supply disruption arising from major
accidents in fiscal 2018.

We made changes to further increase the proportion of outside
members in our Board of Directors and Audit & Supervisory
Board by reducing the number of inside members by three incomparison with the previous year (from 10 to 7) in fiscal 2018,
and increasing the number of outside members by one (from 6to 7) in fiscal 2019.
P41
Corporate governance

Number of customers

11

million

Supply disruption arisingfrom major accidents

0Changes to the makeup of our Board of Directors and Audit & Supervisory Board
FY2018FY2019!
InsideMembers 7

OutsideMembers 6

InsideMembers 7

OutsideMembers 7