Identification of Key Issues (Materiality)

The Toho Gas Group, in moving toward "promotion of ESG management" as espoused in the Medium-term Management Plan (FY2019-FY2021), identified social issues of high importance to society (stakeholders) and the Group as materiality. We are devoting effort toward resolving social issues in line with materiality, and will continue contributing to the growth of local communities.

Materiality Identification Process

Taking as a reference the GRI Standards*, international standards for sustainability information disclosure, we identified issues by following the steps describ ed below.

*Standards for sustainability reports by the Global Reporting Initiative (GRI), a global NGO

STEP 1Analyze the Present Status

We analyzed the present status of social issues through investigation of such matters as various international criteria and stakeholder expectations and demands and analyzed the present status of the company itself in terms of our corporate philosophy and our Corporate Code of Ethical Conduct, and compiled materiality elements on the basis of the items cited in the GRI Standards.

  • International Standards (GRI Standards, ISO 26000*1, SASB*2)
  • SDG targets
  • Evaluation items of ESG ranking organizations (FTSE*3, MSCI*4)
  • Stakeholder expectations and demands (matters voiced by customers, dialog with investors, etc.)
  • Corporate philosophy and our Corporate Code of Ethical Conduct, Environmental Action Principles, Medium-term Management Plan
  • *1 ISO 26000: International standards relating to social responsibility
  • *2 SASB: Sustainability Accounting Standards Board of the U.S.A.
  • *3 FTSE: FTSE Russell, subsidiaries of the London Stock Exchange Group
  • *4 MSCI: Morgan Stanley Capital International

STEP 2Rank by Priority

We weighted the results of present-status analysis, taking into account industry characteristics taken, and along the two axes of importance as viewed by stakeholders and importance from the company's perspective, we extracted from among the items indicated in the GRI Standards the issues to prioritize.

Rank by Priority

STEP 3Identified Materiality

We organized and integrated the items thereby extracted, taking into account the Medium-term Management Plan and other such considerations, and after management-level discussion, we identified the materiality. We also established action issues in line with this materiality.
The status of efforts for last fiscal year can be viewed on our website(in Japanese).

STEP 4Disclosure and Review

We conduct reviews that cover evaluations of action performance, changes in the business environment, stakeholder views, and other matters, and make appropriate revisions.

Identified Materiality

Materiality, on the basis of compliance and governance grounded on the Toho Gas Group Medium-term Management Plan, was arranged into issues to be addressed in a strategic manner (Materiality1 through4) and action issues as the management foundation that supports the first group (Materiality5).The SDGs (sustainable development goals) associated with this materiality are as shown below. The Group has even heretofore promoted action with respect to social issues through its business activities, and will continue to contribute to achieving SDGs in line with materiality.

Aims of the Medium-term Management Plan
Based on the "customer first" spirit we have cultivated since the company's inception, we aim to support customers' lives as well as manufacturing through supplying energy (Materiality12), and contribute to the growth of the region (Materiality3) and to a becoming a low-carbon society (Materiality4).
SDGs Materiality Items in GRI Standards Action issues
4 7 9 11 12 13 15 17
Materiality1
Provision of energy and related services
  • Economic performance
  • Indirect economic impact
Materiality2
Ensuring safety and security, and stable supply
  • Customer health and safety
  • Customer privacy
Materiality3
Contribution to local communities
  • Local communities
  • Biodiversity
  • Water and wastewater
Materiality4
Realization of a society in harmony with the environment
  • Energy
  • Atmospheric emissions
  • Wastewater and waste products
  • Biodiversity
5 8
Materiality5
Reinforcement of human resources
  • Training and education
  • Diversity and equal opportunity
  • Occupational health and safety
16 Compliance and Governance

Provision of Energy and Related Services

Optimal Proposals for City Gas, LPG, and Electricity
Targeted Orientation (FY2019-FY2021) Main Figures for FY2019
Increases in numbers of city gas, LPG, and electricity customers ·City gas: 2,510,000*1  ·LPG: 589,000*2  ·Electricity: 335,000
(*1: Number of gas meters installed, *2: Including subcontracted deliveries)
Providing Community-based Support
Targeted Orientation (FY2019-FY2021) Main Figures for FY2019
Enhancement of Security and Service System Close to the Community
  • Around-the-clock phone service for customers expanded to cover the acceptance of reservations for gas and electricity connections on top of dealing with requests for repair service. Designed to enable customers' access to Toho Gas staff 24 hours a day, 365 days a year, as part of our efforts to make our service more convenient and expeditious for customers while relieving them of any source of concern.
  • High-quality services including a troubleshooting maintenance and repair service offering on-site repair of gas equipment up to 9:00 p.m., free inspection that includes plumbing, and more provided.
Providing Added Value Through New Energy-related Services
Targeted Orientation (FY2019-FY2021) Main Figures for FY2019
Providing and Augmenting Life Services for Households The Launched service of e-commerce website ASMITAS as a life service platform that provides services other than energy.
Providing Total Business Support for Companies Cost-saving proposals for utility equipment other than energy, such as water treatment equipment and compressors, and investigating use of digital tools, such as emergency response and maintenance of industrial furnaces.
Taking Up the Challenge of Energy Resource Aggregation Participating in the experimental project for building a virtual power plant (VPP) system (undertaken by the Ministry of Economy, Trade and Industry), and promoting verification of aggregation technology using in-house electrical generators and industrial power-storage systems.
Taking on New Scopes
Targeted Orientation (FY2019-FY2021) Main Figures for FY2019
Strengthening the Comprehensive Utility Service Business Installed gas air-conditioning systems at elementary and junior-high schools in the cities of Okazaki, Toyota, and Yokkaichi. Providing a one-stop service ranging from design, construction, and execution to maintenance and management.
Strengthening the Housing Renovation Business Launched My House Meister as a new brand in renovation to respond to a wide range of customer needs related to housing and living as a partner in the area of daily living. Our initial presence is in the Mie district.
Utilizing of Our Owned Properties
  • At Minato AQULS, along with occupants beginning to take up residence in condominium units from March, we began energy management for the entire area.
  • Completed construction of rental apartment complex Hivi Casa Mizuho, utilizing land formerly occupied by a Toho Gas commercial showroom.

Ensuring Safety and Security, and Stable Supply

Stable Energy Procurement at a Reasonable Price
Targeted Orientation (FY2019-FY2021) Main Figures for FY2019
Diversification of LNG Procurement Started procurement from the Cameron Project in the U.S.A.
Flexible Operation of LNG Receiving Terminals Utilizing the Cross-Ise Bay Gas Pipeline and LNG transfer between bases, strengthening inter-base operations, and establishing flexible and efficient operation of LNG-receiving terminals.
Advancing Security Measures and Disaster Measures (for Manufacturing and Supply)
Targeted Orientation (FY2019-FY2021) Main Figures for FY2019
Stable Promotion of Security and Disaster Measures
  • Systematically implementing upgrades to electrical equipment, etc., to counter aging and earthquake-resistance reinforcement of receiving facilities, including piers, as security and disaster measures for city gas plants.
  • To ensure stable supply, systematically raising supply-related facilities for governor chambers, etc., as a disaster-security measure against torrential rains and flooding.
  • Expanding adoption of low-pressure gas shutoff systems for which effectiveness is expected in minimizing the extent of impact and hastening recovery at the time of a large-scale earthquake.
  • Conducting comprehensive disaster drills in supposition of a local earthquake and drills held in cooperation with local governments and Self-Defense Forces, thereby strengthening responsive against disaster.
Expanding Service Areas for City Gas and LPG
Targeted Orientation (FY2019-FY2021) Main Figures for FY2019
Steady Extension of Gas Pipelines ·Gas-pipeline length: 30,557 km
·City gas service area: Expanded to 54 cities, 21 towns, and 1 village in the 3 prefectures of Aichi, Gifu, and Mie
LPG Business Deployment to Wider Areas and Reinforcement of the Business Foundation
  • Promoting the further expansion off demand by using the business bases of both Toho Liquefied Gas Co., Ltd. and the Yamasa Group.
  • At Toho Liquefied Gas Co., Ltd., performing earthquake-resistance and reinforcement construction for tank-truck shipping facilities at Meiko LPG Terminal and beginning service runs by the Horin-maru No. 1 cargo vessel jointly owned with another company to realize stable LPG procurement.
Strengthening Information Security
Targeted Orientation (FY2019-FY2021) Main Figures for FY2019
Promoting Employee Education and Awareness Activities Conducting of e-learning sessions on information security and awareness drills using targeted email messages (conducted 5 times).

Contribution to Local Communities

Contributing to Urban Development (Minato AQULS, Regional Electricity Business, Etc.)
Targeted Orientation (FY2019-FY2021) Main Figures for FY2019
Contributing to revitalization of local communities and to urban development through local production and local consumption of energy and through reducing environmental loads, etc., for stable and secure urban development that is disaster-resistant
  • Jointly with Okazaki City, established Okazaki Sakura Electric Power Co., Inc., whose aim is achieve local production and local distribution of energy and lower carbon in Okazaki City.
  • Matsusaka Shin-denryoku Co., Ltd. supplies electrical power to public facilities in Matsusaka City, thereby promoting local consumption of energy and local circulation of energy costs, together with contributing to local revitalization by donating business profits Matsusaka City in line with the facility's purpose.
  • Minato AQULS continues to contribute to strengthening disaster-mitigation functionality in the region, including continuing to supply energy within the area together with supplying emergency electrical power to the adjacent Minato Ward Office in the event of a disaster, accepting evacuees, etc.
  • At Minato AQULS, in addition to utilizing distributed power generation and renewable energy, canal water is utilized as unused energy, achieving environmentally aware urban development and water usage.
Advancing Biodiversity Conservation
Targeted Orientation (FY2019-FY2021) Main Figures for FY2019
Environmental Action Goals (Biodiversity Conservation)
Promotion of biodiversity conservation through business activities, etc.
  • Forest conservation activities in Toho Gas Forests
  • Biotope management, elimination of invasive species, etc. -- 10 times
Expanding Service Areas for City Gas and LPG
Targeted Orientation (FY2019-FY2021) Main Figures for FY2019
Steady Extension of Gas Pipelines ·Gas-pipeline length: 30,557 km
·City gas service area: Expanded to 54 cities, 21 towns, and 1 village in the 3 prefectures of Aichi, Gifu, and Mie
LPG Business Deployment to Wider Areas and Reinforcement of the Business Foundation
  • Promoting the further expansion off demand by using the business bases of both Toho Liquefied Gas Co., Ltd. and the Yamasa Group.
  • At Toho Liquefied Gas Co., Ltd., performing earthquake-resistance and reinforcement construction for tank-truck shipping facilities at Meiko LPG Terminal and beginning service runs by the Horin-maru No. 1 cargo vessel jointly owned with another company to realize stable LPG procurement.
Promoting Environmental Education and Social Contribution
Targeted Orientation (FY2019-FY2021) Main Figures for FY2019
Environmental Action Goals (Collaboration with Local Communities)
Promoting initiatives such as environment social contribution activities and environmental education for the next generation in collaboration with local communities
  • Local-community cleanup activities (including beach cleanup)
  • Special classes at elementary schools, etc. (201 times)
  • Environmental learning at the Toho Gas Energy Exhibition Hall (number of Hall visitors: approx. 22,000)

Realization of a Society in Harmony with the Environment

Advancing Global-warming Countermeasures
Targeted Orientation (FY2019-FY2021) Main Figures for FY2019
Environmental Action Goals (Amount of Reduced CO2 Emissions at Customer Locations)
600,000 tons (aggregate value for FY2019-FY2021) 141,000 tone
Environmental Action Goals (Reducing CO2 Emissions in Business Activities)
  • CO2 emission basic unit of city gas plants: 11.5 tons-CO2/million Nm3 or less
  • CO2 emission basic unit of city gas plants: 9.6 tons-CO2/million Nm3
  • CO2 emission basic unit of the Energy Center: 75.1 tons-CO2/thousand GJ or less
  • CO2 emission basic unit of the Energy Center: 73.4 tons-CO2/thousand GJ
  • CO2 emission basic unit of offices: 79.8 tons-CO2/thousand m2
  • CO2 emission basic unit of offices: 73.2 tons-CO2/thousand m2
  • Initiatives to reduce CO2 emissions in the electricity business
  • Initiatives to reduce CO2 emissions in the electricity business: Expansion of facility capacity through new operation of solar power generation site (2.7 MW)
Promoting Resource Recycling
Targeted Orientation (FY2019-FY2021) Main Figures for FY2019
Environmental Action Goals (Resource Recycling)
  • Zero emissions at city gas plants: Continuation (1% or lower final disposal rate)
  • Zero emissions at city gas plants: Continuation (0.10%)
  • Recycling of waste generated after gas pipeline construction: Recycling rate of 99% or more
  • Recycling of waste generated after gas pipeline construction: Recycling rate of 99.7%
  • Reduction in use of natural mountain sand and detritus in gas pipeline construction compared with use under conventional engineering methods: 15% or lower
  • Reduction in use of natural mountain sand and detritus in gas pipeline construction compared with use under conventional engineering methods: 11.2%
  • Recycling of general waste: 80% or more
  • Recycling of general waste: 80.7%
  • Promoting "3R" (reduce, reuse, and recycle) through green procurement and the recycling of used gas equipment
  • Continued implementation of green procurement amount (11.7 million yen)
    Continued recycling of used gas equipment (850.8 tons)
Advancing Biodiversity Conservation
Targeted Orientation (FY2019-FY2021) Main Figures for FY2019
Environmental Action Goals (Biodiversity Conservation)
Promotion of biodiversity conservation through business activities, etc.
  • Forest conservation activities in Toho Gas Forests
  • Biotope management, elimination of invasive species, etc. -- 10 times
Technical Development for Decarbonization and Higher Efficiency
Targeted Orientation (FY2019-FY2021) Main Figures for FY2019
Environmental Action Goals (Technical Development)
Promotion of technical development for decarbonization and higher efficiency
  • Continued stable operation of a total of 4 hydrogen stations, including Centrair Hydrogen Station, which launched operations in March 2019, toward popularizing fuel-cell vehicles and toward expanding improvement and operation of hydrogen-supply infrastructure.
  • Began verification testing for home demand response, through which customers can conserve electrical power in a fun and ongoing way.
  • Participation in Keidanren "Challenge Zero" and announcing that we are taking up technical-development challenges oriented toward achieving a decarbonized society, including "construction and operation of hydrogen stations and development of hydrogen usage technology for the sake of building hydrogen supply chains," "establishment of both advanced energy management and enhanced resilience for the sake of spreading renewable energy and distributed power sources," and "development of high-density heat storage technology that contributes to the effective use of heat energy."

Reinforcement of Human Resources

Human-resource Employment and Education
Targeted Orientation (FY2019-FY2021) Main Figures for FY2019
Fair and Unbiased Hiring (Diversity in Personnel) In our fair and unbiased hiring, we employed 86 new graduates and 28 mid-career recruits, for a total of 114 new hires.
Human-resource Education (Maintaining and Strengthening On-site Capabilities)
  • Numbers of group training courses (level-specific training: 84, elective training: 21, career training, diversity training, seminars on childcare leave and maternity leave, etc.: 24)
  • Holding group-wide and departmental skill competitions (GHP inspection, pipe internal inspection, special inspection, emergency safety, manufacturing equipment, etc.) aimed at maintaining and improving stable supply at high levels, ensuring of safety, customer-response capabilities, etc.
Promoting Diversity
Targeted Orientation (FY2019-FY2021) Main Figures for FY2019
Creation of a Workplace Where Women Can Exercise Their Abilities Ratio of women in management positions: 1.9%
Creation of Jobs for Persons with Disabilities
  • Ratio of employment of people with disabilities: 2.2%
  • Promoting the creation of workplaces where people can place active roles by establishing a special subsidiary (Toho Flower) and creating more jobs for persons with disabilities.
Realizing Flexible Workstyles
Targeted Orientation (FY2019-FY2021) Main Figures for FY2019
Supporting Balancing Work with Childcare, Nursing Care, Etc.
  • Employees who begin child-rearing or nursing-care leave: Total 29
  • Advancing efforts to balance work with childcare, nursing care, and medical care, and promoting a work-life balance for employees.
Health Management Trends
  • Medical-checkup participation rate: 100%
  • Executing measures to promote the mental and physical health of employees, and recognized as a "Certified Health & Productivity Management Outstanding Organization 2020 (White 500)."

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