Actions for Climate Change: Working to Reduce CO2 Emissions in Business Activities
- Aspects Determained as Materiality
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Energy
302-1
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Emissions
305-5
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Principle and Outline
In line with the worldwide trend toward action against climate change, the Daigas Group is striving to reduce GHG emissions from its business activities, including CO2 and methane (CH4), to help realize a low-carbon or decarbonized society. Specifically, we devote positive efforts to reduce CO2 emissions from liquefied natural gas (LNG) transportation, city gas production, and power generation. We also implement various energy-saving measures at offices, scale them up Group-wide, and verify their effects in our own buildings.
We announced the Daigas Group Carbon Neutral Vision in January 2021 and the Daigas Group Medium-Term Management Plan 2023: Creating Value for a Sustainable Future in March of the same year to further accelerate our efforts toward low-carbon or decarbonized business operations.
Benefits of Energy Saving and Reductions of CO2 Emissions
Third-party verification completed Osaka Gas underwent a third-party review by Bureau Veritas Japan Co., Ltd.
Reduction of 2.84 million tons of CO2 emissions in Group business activities
The Daigas Group has been introducing cryogenic power generation facilities for city gas processing, high-efficiency thermal power generation, and renewable energy sources (solar, wind, biomass, etc.). These business activities have contributed to a reduction in emissions of approximately 2.84 million tons in FY2021.
GHG Emissions at Daigas Group
Third-party verification completed Osaka Gas underwent a third-party review by Bureau Veritas Japan Co., Ltd.
Initiatives to reduce CO2 emissions from energy consumption and methane (CH4) emission
In the Daigas Group, we work to reduce CO2 emissions from energy consumption and methane (CH4), the main component of natural gas in the gas business and in the thermal supply and power generation businesses, as well as CO2 emissions from energy consumption at affiliates.*
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* Affiliated Companies
56 consolidated subsidiaries other than those that are tenants, on which data is hard to obtain and which have a minor environmental impact, or overseas subsidiaries from among the 154 consolidated subsidiaries.
An overseas subsidiary (1 company) has been added to the companies for which energy consumption and greenhouse gas (GHG) are calculated.
The number of companies subject to calculation may vary depending on the year due to corporate mergers and the like.
(As of March 31, 2021)
Group companies | No. of companies | Company names |
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Energy Resources & International Business Unit | 1 | Michigan Power Limited Partnership |
LNG Power & Engineering Business Unit | 15 | Nakayama Joint Power Generation Co., Ltd., Nakayama Nagoya Joint Power Generation Co., Ltd., Hirogawa Myojinyama Wind Farm Co., Hayama Wind Farm, Yura Wind Farm Development, Hizen Wind Farm, Hirao Wind Farm, Inami Wind Power Plant, Senboku Natural Gas Power Generation, Daigas Oita Mirai Solar, Osaka Gas Liquid Co., Ltd., Cold Air Products Co. Ltd., Cryo-Air Co. Ltd., Kinki Carbonic Co., Ltd., Gasnet Co. Ltd. |
Under the umbrella of the Network Company | 2 | Kinpai Co., Ltd., Osaka Gas Renotech Co., Ltd. |
Under the umbrella of the Energy Solution Business Unit | 17 | Living Maintenance Service Hokuto Co., Ltd.; Living Maintenance Service Osaka Co., Ltd.; Osaka Gas Cooking School Co., Ltd.; Create Kansai Co., Ltd.; Osaka Gas Customer Relations Co., Ltd.; Kansai Business Information Inc.; Osaka Gas Housing & Equipment Co., Ltd.; Osaka Gas Security Service Co., Ltd.; Osaka Gas Finance Co., Ltd.; Ashiyahama Energy Service Co., Ltd.; Rokko Island Energy Service Co., Ltd.; Enetec Kyoto Co., Ltd.; Enetec Osaka Co., Ltd.; Nabari Kintetsu Gas Co., Ltd.; Toyooka Energy Co., Ltd.; Shingu Gas Co., Ltd.; Biwako Blue Energy Co., Ltd. |
Group Headquarters | 5 | OG Sports Co., Ltd., Osaka Gas Autoservice Co., Ltd., Osaka Gas Finance Co., Ltd., Osaka Gas Business Create Co., Ltd., Active Life Inc., KRI Inc. |
Core energy business companies | 3 | Osaka Gas Marketing Co., Ltd.; Daigas Energy Co., Ltd.,; Daigas Gas and Power Solution Co., Ltd. |
Osaka Gas Urban Development Group | 3 | Osaka Gas Urban Development Co., Ltd., Osaka Gas Facilities Corp., Kyoto Research Park Co., Ltd., |
OGIS Research Institute Group | 7 | OGIS-RI Co., Ltd., Agnie Consulting Corp., Sakura Information Systems Co., Ltd., SIS Techno-Service Co., Ltd., JOE Corp., Ltd., Ube Information Systems Inc., System Answer Inc. |
Osaka Gas Chemicals Group | 4 | Osaka Gas Chemicals Co., Ltd., Minabe Chemical Industries Ltd., Mizusawa Industrial Chemicals, Ltd., Mizuka Unyu Co., Ltd. |
Total | 57 |
■ GHG Emissions* (1,000 t-CO2e)
(FY) | 2017 | 2018 | 2019 | 2020 | 2021 | |
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Consolidated companies (Osaka Gas and its affiliates) | 65 | 58 | 57 | 59 | 58 | |
Total | 4,363 | 5,159 | 5,350 | 4,963 | 5,513 | |
Osaka Gas | 259 | 259 | 209 | 207 | 162 | |
LNG terminal | 88 | 84 | 89 | 97 | 105 | |
Power plant | 120 | 124 | 73 | 63 | 18 | |
District heating / cooling | 11 | 10 | 9 | 9 | 9 | |
Other | 40 | 41 | 38 | 38 | 30 | |
Affiliates | 4,104 | 4,900 | 5,140 | 4,756 | 5,351 | |
Power generation | 3,783 | 4,581 | 4,805 | 4,431 | 5,034 | |
District heating / cooling | 108 | 104 | 97 | 91 | 83 | |
Other | 214 | 215 | 238 | 234 | 234 |
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* GHG emissions
[CO2 emissions] CO2 emissions calculated using the average emission factor for thermal power source are subject to management in the Daigas Group so that the benefit of reducing the consumption of purchased electricity can be properly evaluated.
CO2 emissions for FY2017 were calculated using the average emission factor of 0.65 t-CO2 / 1,000 kWh, a figure Decemberided under a government plan to combat global warming, approved by the Cabinet in 2016. CO2 emissions through FY2016 were calculated using the factor of 0.69 t-CO2 / 1,000 kWh, a figure shown in an Interim Summary Report compiled in 2001 by the Target Attainment Scenario Subcommittee under the Global Environmental Committee of the Central Environmental Council.
[CH4 emissions]
CH4 emission is calculated using the global warming factor of 25, defined in the UNFCCC reporting guidelines on annual greenhouse gas inventories published in 2012. Greenhouse gas emissions are defined as the aggregate of CO2 emissions and CO2 equivalent of CH4 emissions.
■ (Reference) GHG Emissions for Comparison* (1,000 t-CO2e)
(FY) | 2017 | 2018 | 2019 | 2020 | 2021 | |
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Total | 4,283 | 5,073 | 5,248 | 4,853 | 5,408 | |
Osaka Gas | 239 | 239 | 181 | 170 | 125 | |
LNG terminal | 75 | 72 | 68 | 68 | 75 | |
Power plant | 120 | 124 | 72 | 62 | 18 | |
District heating / cooling | 10 | 9 | 9 | 8 | 8 | |
Other | 33 | 34 | 31 | 31 | 25 | |
Affiliates | 4,045 | 4,834 | 5,067 | 4,683 | 5,282 | |
Power plant | 3,781 | 4,579 | 4,803 | 4,428 | 5,031 | |
District heating / cooling | 98 | 94 | 86 | 78 | 73 | |
Other | 167 | 162 | 178 | 176 | 178 |
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* GHG emissions for comparison
For calculation of the yearly CO2 emissions of purchased electricity, the most recent emission factor of the Kansai Electric Power Co., Inc. is used. (e.g. The CO2 emission factor of FY2015 is calculated based on the emissions during FY2014) CO2 emissions of FY2016 and after are calculated using emission factors of electric companies from which we purchased electricity. The yearly CO2 emissions of purchased electricity is calculated by multiplying the year's electricity consumption by the year's emission factor.
CO2 emissions from Osaka Gas's city gas business
*Not subject to third-party verification.
CO2 emissions in Osaka Gas’s city gas business for FY2021 stood at 135,000 tons, with CO2 emissions per cubic meter of gas production (emissions intensity) of 18.6 g-CO2/m³. Compared to 1990, the Kyoto Protocol’s benchmark year, total CO2 emissions were down by 49%, and emissions on a per-unit basis fell by 68%.
Efforts in recent years, such as the use of cogeneration systems and cryogenic power generation at city gas processing plants, energy efficient operations, and efforts to conserve energy in office buildings have succeeded in keeping both emissions and intensity at low levels. In FY2021, CO2 emissions and intensity increased from the previous fiscal year due to the impact of partial line stoppages caused by construction work at processing facilities.
In 1979, Osaka Gas became the first company in the world to begin operating a cryogenic power generation facility, and in FY2021 the Senboku LNG Terminal and the Himeji LNG Terminal produced approximately 31 million kWh cryogenically.
We will work toward further CO2 emission reductions by aggressively using electricity produced by unused energy such as LNG cryogenics and the gas pressure of gasification, as well as by promoting energy savings in office buildings.
■ CO2 Emissions from the City Gas Business of Osaka Gas (LNG terminals and business locations)

Methane emissions from Osaka Gas's city gas business
In the city gas business of Osaka Gas, methane (CH4) gas is emitted during measurement of gas quality and gas fitting work. We therefore strive to reduce emissions by introducing a system that can recollect gas without it being released into the air after the measurement, by employing a no-blow gas shutting-off method and using an Eco Purge vehicle.
In FY2021, Osaka Gas emitted 58 tons of methane, achieving a continuous reduction.
■ Methane Emissions at Osaka Gas
(FY) | 2017 | 2018 | 2019 | 2020 | 2021 |
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Methane emission (t-CH4) | 75 | 77 | 88 | 106 | 58 |
CO2 emissions from affiliates
CO2 emissions from affiliate companies amounted to about 5.351 million tons in FY2021.
Most of the total comprised CO2 emitted at fossil-based power stations. The Daigas Group is striving to curb CO2 emissions from its business operations and at the same time achieve energy savings by combining the operation of energy-efficient fossil-derived power stations with the use of renewable energy sources.
Efforts by the Daigas Group to Reduce CO2 Emissions from City Gas Business
Efforts to reduce CO2 emissions in LNG transportation
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Low fuel consumption LNG carrier chartered
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In November 2018, Osaka Gas put the fuel-efficient LNG JUNO into service for the transport of LNG, an essential material for city gas. Osaka Gas adopted the new Sayaringo type of LNG carrier, which was instrumental in increasing LNG capacity without changing the width of the vessel. The carrier also adopted a new hybrid propulsion system, further reducing fuel consumption and lowering CO2 emissions and transport costs.
Efforts to reduce CO2 emissions at city gas processing terminals
We are endeavoring through a variety of energy conservation activities to reduce CO2 emissions at city gas processing terminals. We are endeavoring to reduce CO2 emissions at city gas processing terminals through a variety of energy conservation activities.
For example, our initiative to recover cold energy from LNG gasification facilities and use it for power generation has helped reduce our electricity purchasing. This method of producing electricity using LNG cold energy, called cryogenic power generation, neither needs fuels nor emits CO2. Two cryogenic power generation facilities are in operation each at the Senboku LNG Terminal and the Himeji LNG Terminal.
The Group is also putting in place various policies to ensure the efficient operation of LNG cryogenic power generation facilities. Cold energy from LNG is supplied to a chemical plant adjacent to the Senboku Terminal for their cooling processes, also helping other companies in the vicinity to save energy and reduce CO2 emissions.
Reducing CO2 emissions at offices
At offices of each company of the Daigas Group, many small steps are being taken to save energy that will add up for achieving energy consumption and CO2 emissions targets. These include having all employees turn off lights that are not needed, switching off office equipment if not in use, and maintaining air conditioning temperatures at reasonable levels. The effort is based on standards such as ISO 14001, Eco Action 21, developed by the Ministry of Environment, and the Daigas Group Environmental Management System (OGEMS). Under the EMS, each and every employee strives to reduce his or her own energy consumption by turning off lights and office equipment not currently needed or in use, and setting air conditioning to reasonable temperatures in line with set targets.
The Daigas Group has actively been implementing advanced energy-conservation measures and measures to reduce CO2 emissions when its buildings are renewed or renovated.
Measures deemed effective for energy saving are horizontally applied to all office buildings of the Daigas Group under the Green Gas Buildings project, which has so far resulted in nine extensively renovated or newly constructed “Green Gas Buildings” by August 2018.
In addition, the Fukiai office of Osaka Gas, located in Kobe City, Hyogo Prefecture, introduced “BCP-Lite,” *1 an emergency power-supply system that enables even a small-sized building not usually equipped with a backup power generator to continue the minimum level of business operations in the event of a natural disaster. The “BCP-Lite” is a system in which the concept of a Business continuity plan (BCP) was added to our conventional energy-saving equipment. We expect this to help the building of a low-carbon society in the future while supporting our business continuity in the event of a contingency.
The “hu+gMUSEUM,” a showroom of Osaka Gas, is equipped with facilities with high energy efficiency, including cogeneration systems, regional air-conditioning systems, solar power generation systems, and solar-heat systems. Furthermore, the Group has built a Smart Energy Network in Osaka City's Iwasaki District where the showroom is situated. The network has played an important role in promoting the region's overall energy saving by establishing an optimal energy control system to ensure the most efficient use of energy (electricity and heat) generated in buildings and devising a high energy security system that can effectively respond to unscheduled power outage.
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Fukiaki Office
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The “hu+gMUSEUM”
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BELS table and plate for hu+gMUSEUM
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The Daigas Group received the “Building Energy-efficiency Labeling System (BELS)” *2 assessment for two of its properties in FY 2017. The most recently constructed buildings of the Fukiai Office and the hu+gMUSEUM received four stars and five stars, respectively, under the five-star BELS system for their excellent energy conservation performance. Their respective energy-conservation rates in the year were a high 33% and 39%.
Osaka Gas received the 2018 technology promotion award from the Society of Heating, Air-Conditioning and Sanitary Engineers of Japan for its contribution to local communities and concretization of an advanced energy system through its hu+gMUSEUM showroom, which was recognized as the utility's new information dissemination base.
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*1 ”BCP-Lite”
”BCP-Lite” is an emergency power supply system for office buildings in which electricity can be supplied without interruption even if power outage occurs following a natural disaster. A self-driven gas engine heat pump (GHP) is incorporated into the system. -
*2 BELS
BELS stands for “Building Energy-efficiency Labeling System.” The labeling system for buildings and housing is aimed at evaluating the energy-saving ability of nonresidential buildings based on the Act on Improvement of the Energy Consumption Performance of Buildings. The evaluation, certified by third parties, is given on a scale of one to five stars. The evaluation result is represented by a number of stars displayed on a special plate.
Smart Energy Network
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Osaka Gas structured a district heating and cooling system at the area surrounding the facilities of the Company in Nishi Ward in Osaka City. The system also functions as the Smart Energy Network, where heat and electricity generated in the area are accommodated in the community. The system can be controlled optimally from the perspective of the entire area, realizing an approach to urban planning that allows energy to be used efficiently.
Efforts to reduce CO2 emissions through district heating and cooling systems
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High-efficiency gas-fired absorption chiller in the Iwasakibashi district
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District heating and cooling systems are designed to enable people and offices in the same district to share air conditioning, heating, and hot-water supplying equipment with each other, produce a large amount of cold and hot water for the entire district, and supply it. The Daigas Group was Japan’s first to begin operating a district heating and cooling system in the Senri Chuo district in Toyonaka City, Osaka Prefecture, on the occasion of Expo ‘70 in Osaka in 1970. Since then, the Group has adopted a variety of optimal energy systems in the respective districts in various urban development projects. Currently, a total of nine districts, including five in Osaka Prefecture, as well as in Kyoto, Nara, and Kobe, use district heating and cooling systems. We were ahead of other companies in introducing gas cogeneration systems within the framework of district cooling and heating systems. We have also proactively launched new businesses, including accepting waste heat from customers’ cogeneration systems and supplying power as a registered Specified Electricity Transmission and Distribution Utility.
The Daigas Group has also been working to secure stable heat supplies, promote the advanced use of energy, increase the efficiency of management work, and cut business costs. The Group has recently built a Smart Energy Network combining a natural gas cogeneration system and renewable energy in the Iwasakibashi district (Nishi-ku, Osaka City) with the aim of conserving energy and strengthening energy security.
Currently, we are introducing high-efficiency equipment on the occasion of equipment renewal in the Iwasakibashi district and the Sanjo district in Nara Prefecture. We aim to further increase the efficiency of our systems.
Efforts to Reduce CO2 Emissions from Electricity Business
The Daigas Group engages in the electricity generation business using various power sources it owns, including fossil-based power generation, gas cogeneration systems and renewable energy sources. The Daigas Group is striving to reduce CO2 emissions—not only from its own business operations but also from operations at customers—by introducing highly energy-efficient fossil-based power generation systems and actively using renewable energy sources.
■ Power Generation Facilities Operated by the Daigas Group (Domestic Facilities for Power Generation)
(As of March 31, 2021)
Name of project | Location |
Power generation capacity |
Power generation method |
When the project began operating |
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Natural gas-based power generation | |||||
Senboku Terminal |
Sakai City, Osaka Prefecture |
20,000 kW | GTCC*1and others | July 2002 | |
Senboku Natural Gas Power Plant |
Osaka Prefecture Unit 1, Unit 2: Takaishi City Unit 3, Unit 4: Sakai City |
1,109,000 kW | GTCC |
April 2009 (Unit 2) May 2009 (Unit 1) October 2009 (Unit 4) November 2009 (Unit 3) |
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Himeji Terminal |
Himeji City, Hyogo Prefecture |
66,000 kW | GTCC and others | April 2004 | |
Fukushima Natural Gas Power Plant |
Soma City, Fukushima Prefecture |
236,000 kW | GTCC and others | April to August 2020 | |
Funamachi Power Plant |
Taisho-ku, Osaka City |
149,000 kW | GTCC | April 1999 | |
Torishima Energy Center |
Konohana Ward, Osaka City |
141,000 kW | GTCC | April 2002 | |
Uji Energy Center |
Uji City, Kyoto Prefecture |
67,000 kW | GTCC | October 2004 | |
Settsu Energy Center |
Settsu City, Osaka Prefecture |
17,000 kW | Gas engine | April 2006 | |
Senri Energy Center |
Toyonaka City, Osaka Prefecture |
7,000 kW | Gas turbine | January 2008 | |
Biomass-fired and coal-fired power generation | |||||
Nagoya Power Plant |
Chita County, Aichi Prefecture |
149,000 kW |
Coal steam turbine, Partly biomass-fueled power (5%) |
April 2000 | |
Nagoya No. 2 Power Plant |
Chita County, Aichi Prefecture |
110,000 kW |
Coal steam turbine, Partly biomass-fueled power (30%) |
September 2017 | |
Biomass power generation | |||||
Matsusaka Woody Biomass Power Plant |
Matsusaka City, Mie Prefecture |
300 kW |
Exclusively for biomass burning |
January 2018 | |
Ichihara Biomass Power Plant |
Ichihara City, Chiba Prefecture |
49,900 kW | Biomass (100%) | December 2020 | |
Wind power | |||||
Hayama Wind Farm |
Takaoka County, Kochi Prefecture |
20,000 kW | Wind power | March 2006 | |
Hirogawa Myojinyama Wind Farm |
Arida County, Wakayama Prefecture Hidaka County, Wakayama Prefecture |
16,000 kW | Wind power | November 2008 | |
Yura Wind Power Plant |
Hidaka County, Wakayama Prefecture |
10,000 kW | Wind power | September 2011 | |
Hizen Wind Farm |
Karatsu City, Saga Prefecture |
12,000 kW | Wind power | March 2005 | |
Hizen Minami Wind Farm |
Karatsu City, Saga Prefecture |
18,000 kW | Wind power | January 2008 | |
Hirao Wind Power Plant |
Kumage County, Yamaguchi Prefecture |
9,000 kW | Wind power | April 2009 | |
Inami Wind Power Station |
Hidaka County, Wakayama Prefecture |
26,000 kW | Wind power | June 2018 | |
Solar power generation and others | |||||
Torishima Solar Power Plant |
Konohana Ward, Osaka City |
1,800 kW*2 | Solar power | April 2013 | |
Torishima Second Solar Power Plant |
Konohana Ward, Osaka City |
1,200 kW*2 | Solar power | January 2014 | |
Shoo Solar Power Plant |
Katsuta County, Okayama Prefecture |
900 kW*2 | Solar power | April 2013 | |
Hirogawa Myojinyama Wind Farm |
Arida County, Wakayama Prefecture |
800 kW*2 | Solar power | April 2013 | |
Yawata Solar Power Plant |
Nabari City, Mie Prefecture |
700 kW*2 | Solar power | September 2013 | |
Nissan Green Energy Farm at Oita Power Plant |
Oita City, Oita Prefecture |
26,500 kW*2 | Solar power | May 2013 | |
Yura Solar Power Plants (North and South) |
Hidaka County, Wakayama Prefecture |
1,700 kW*2 | Solar power | December 2016 | |
Kuwaharajo Mega Solar (No.4) |
Izumi City, Kagoshima Prefecture |
1,700 kW*2 | Solar power | April 2020 | |
Isoharacho Tokkou Power Plant |
Kitaibaraki City, Ibaraki Prefecture |
35,000 kW*2 | Solar power | January 2021 | |
Daigas Energy Co., Ltd. | 9 plants | 11,000 kW*2 | Solar power and others | ||
Energy Bank Japan Co., Ltd. | 27 plants | 47,800 kW*2 | Solar power and others | ||
Total domestic power generation capacity for electricity business |
2,371,000 kW*3 |
- *1 GTCC: Gas turbine combined-cycle power generation method
- *2 Output capacity for solar power is measured in terms of solar power panels.
- *3 Calculated based on the power generation capacity of the facilities owned by the Daigas Group
Overview of natural-gas-fired thermal power generation
Senboku Natural Gas Power Plant contributing to the reduction of environmental impacts
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Senboku Natural Gas Power Plant
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Natural-gas-fired thermal power generation is fueled by natural gas, which has a smaller environmental impact than other kinds of fossil fuels, including petroleum and coal. Exhaust gas from this method contains neither sulfur oxides (SOx) nor soot and dust. Although natural gas combustion generates nitrogen oxides (NOx), the Daigas Group uses low-NOx combustors to minimize NOx generation and removes as much NOx as possible with exhaust gas denitrifiers. Wastewater from this type of power plant is treated by wastewater treatment equipment that has the functions of chemical precipitation, filtration, activated carbon absorption, and pH control in order to reduce the impact of wastewater on water systems. We also use an highly energy-efficient gas turbine combined cycle power generation system to minimize the environmental impact of our natural gas power plants.
The gas turbine combined cycle power generation system uses gas turbine combustors to combust natural gas and use the combusted gas’s power to turn turbines and generate electricity. Furthermore, the heat of exhaust gas from the gas turbines is used to produce steam in waste heat recovery boilers to turn steam turbines and generate electricity. Reusing the heat of exhaust gas in this way, gas turbine combined cycle power generation is a highly efficient power generation method.
With a 1,300°C-class gas turbine installed, the Senboku Natural Gas Power Plant boasts high power generation efficiency of about 57% (on the basis of the lower heating value [LHV]). We believe that this plant can contribute immensely to energy saving and CO2 emissions reduction.
Himeji Natural Gas Power Generation Co., Ltd., a wholly owned subsidiary of Osaka Gas, is also proceeding with a project to newly build the Himeji Natural Gas Power Plant. This project adopts a highly energy-efficient gas turbine combined-cycle system and has undergone an inspection based on the Environmental Impact Assessment Act. As part of this power generation business plan (about 1.8 million kW), Osaka Gas decided in September 2019 to invest in power generation of about 1.2 million kW.
Fukushima Gas Power Co., Ltd., in which Osaka Gas has a 20% investment, has been working on a natural-gas-fired power generation project at Soma Port, Fukushima Prefecture. This project as well adopts a high-efficiency gas turbine combined-cycle system consisting of two 590,000 kW power generation facilities, one of which started operation in April 2020 and the other in August 2020.
■ Energy Efficiency of Gas Turbine Combined-Cycle Power Generation
(In the case of the Senboku Natural Gas Power Plant)

Overview of biomass-coal-cofired power generation
Power generation fueled with a mixture of coal and woody biomass, which contributes to reducing the environmental impact of power generation
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Nagoya Power Plant and Second Nagoya Power Plant
Biomass fuel burned together with coal (white pellet)
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The Nagoya Power Plant (capacity: 149,000 kW) and the Second Nagoya Power Plant (capacity: 110,000 kW) use a mixture of coal and woody biomass as fuel to substantially limit CO2 emissions. They also minimize the generation of hazardous substances and noise by utilizing the most advanced environmental conservation technologies, including low-NOx burners and exhaust gas denitrifiers, which reduce NOx generated in boilers, electric precipitators, which remove soot and dust from exhaust gas, and exhaust gas desulfurizers, which remove sulfur from exhaust gas. The removed sulfur is recovered as gypsum and effectively used as recycled resources.
The fuel used at the Nagoya Power Plant and the Second Nagoya Power Plant contain woody biomass of 5% and 30%, respectively. We also aim to increase the operational efficiency of these plants by leveraging the expertise and know-how we have accumulated through the operation of existing power plants.
Introduction of cogeneration-based electricity sources
Energy-efficient natural gas cogeneration facilities are set up on the premises of a client plant. Electricity and heat (steam) generated using the cogeneration system are provided to client companies. The Daigas Group uses part of the electricity generated as electricity sources for its power business, which helps improve the cogeneration facility utilization rate, promotes efficient energy use and reduces CO2 emissions. Daigas Gas and Power Solution Co., an Osaka Gas Group company, operates this type of facility at two locations—one at the Uji Energy Center for Unitika Ltd. and the other at the Settsu Energy Center for Kaneka Corp. Power output capacity is 66,800 kW at the Uji Energy Center and 17,460 kW at the Settsu Energy Center.
International power projects
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Hallett 4 wind farm project in the state of South Australia, Australia
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Our international independent power producer (IPP) business includes investment in thermal, wind, and solar power plant projects in North America, Australia, and other regions. During FY2021, we invested in the Three Rivers Power Plant (under construction) in Illinois, U.S., and SolAmerica Energy, LLC, a U.S.-based distributed solar power generator. In June 2021, we also signed an agreement with Summit Ridge Energy, LLC on implementing a joint project for distributed solar power generation.
We will continue to explore opportunities to participate in the renewable energy business, which is expected to grow in the U.S.
■ Power Generation Facilities Operated by the Daigas Group (International Facilities for Power Generation)
(As of March 31, 2021)
Name of project | Location |
Operating capacity (Daigas Group share) |
Power generation method |
When the project began operating |
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Tenaska Gateway IPP | Texas, USA |
845,000 kW (338,000 kW) |
Natural gas, GTCC | June 2004*1 |
Osaka Gas Power America |
5 plants in USA |
1,200,000 kW (234,000 kW) |
Natural gas | December 2005*1 |
Energy Infrastructure Investments*2 |
2 plants in Queensland, Australia |
59,000 kW (18,000 kW) |
Natural gas, Gas engine | December 2008*1 |
Hallett 4 Project |
South Australia, Australia |
132,000 kW (53,000 kW) |
Wind power (2,100 kW × 63 units) |
June 2011 |
Shuweihat S2 power generation and water desalination project (IWPP)*3 |
Abu Dhabi, United Arab Emirates |
1.51 million kW (151,000 kW) |
GTCC | October 2011 |
St. Charles Natural Gas Power Generation Project |
Maryland, USA |
725,000 kW (181,000 kW) |
Natural gas | February 2017 |
Shore Natural Gas Power Generation Project |
New Jersey, USA |
725,000 kW (145,000 kW) |
Natural gas, GTCC | March 2017*1 |
Kleen Energy Natural Gas Power Generation Project |
Connecticut, USA |
620,000 kW (151,000 kW) |
Natural gas | May 2018*1 |
Michigan Power Natural Gas Power Generation Project |
Michigan, USA |
125,000 kW (125,000 kW) |
Natural gas, GTCC | July 2018 *1 |
Towantic Energy Center (natural gas-fired power plant) | Connecticut, USA |
805,000 kW (399,000 kW) |
Natural gas | December 2018*1 |
Fairview Natural Gas Power Plant |
Pennsylvania, USA |
1,050,000 kW (525,000 kW) |
Natural gas | December 2019 |
Total international power generation capacity for electricity business |
7,796,000 kW (2,319,000 kW) |
- *1 Years and months listed indicate the time when a business license was obtained
- *2 Four gas pipelines, two gas-refining facilities, two power stations, two power transmission lines
- *3 Water desalination capacity owned by Shuweihat S2: 10 million gallons / day
Initiatives to Increase the Use of Renewable Energy
Facilitating the development and use of renewable energy sources
In Japan, the Daigas Group owns wind, solar, biomass, and other renewable energy sources with a total capacity of approximately 340,000 kW, contributing to CO2 emissions reduction. In FY2020, Osaka Gas signed a cooperative agreement with Acacia Renewables K.K., a Macquarie Group company, so that both parties can jointly examine the possibilities for offshore wind power generation in Japan. Afterward, in July 2020, the two companies sent an Environmental Impact Assessment Consideration Statement for the Saga Karatsu City Offshore Wind Power Project (tentative name) to the Japanese Minister of the Environment and other relevant parties and submitted the statement for public inspection.
Moreover, in FY2020, Osaka Gas signed a memorandum of basic understanding with West Holdings Corporation on jointly exploring new added-value creation businesses in the field of renewable energy. In June 2020, Osaka Gas began to provide D-Solar, a self-consumption-type photovoltaic power generation service. Afterward, on August 28, 2020 and January 29, 2021, Osaka Gas concluded two bilateral contracts with West Holdings Corporation to procure electricity to be generated by West Holdings’ new small-scale photovoltaic power generation facilities for the long term. The latter contract will enable Osaka Gas to procure 200,000 kW of renewable-energy-based electricity from thousands of small-scale photovoltaic power generation facilities to be developed by the counterpart within FY2022.
In FY2021, Osaka Gas also invested jointly with Development Bank of Japan Inc. in D&D Solar GK, which was established to hold solar power assets. Through D&D Solar, Osaka Gas acquired two solar power plants from German-based BayWa r.e Solar Projects GmbH: Kuwaharajo Mega Solar (No. 4) in Izumi City, Kagoshima Prefecture (capacity: approximately 12,000 kW) and the Isoharacho Tokkou Power Plant in Kitaibaraki City, Ibaraki Prefecture (capacity: approximately 35,000 kW).
To achieve carbon neutrality by 2050, the Daigas Group will contribute to increasing the power generation capacity of renewable energy sources by 5,000 MW* in and outside Japan, including sources developed in-house, owned, or procured from other companies, by FY2030. It also aims to increase the percentage of renewable energy in its electricity business in Japan to about 50%*.
- * Renewable energy includes power sources to which the feed-in tariff (FIT) program applies, such as solar, wind, and biomass energy.
■ Major Initiatives to Facilitate the Development and Use of Renewable Energy Sources in FY2021
July 31, 2020 | Saga Karatsu City Offshore Wind Power Project (tentative name) | Sent an Environmental Impact Assessment Consideration Statement for the project and submitted the statement for public inspection | |
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August 28, 2020 | Conclusion of a contract with West Holdings Corporation for renewable energy power procurement | Procured electricity to be generated by new small-scale photovoltaic power generation facilities for the long term under a bilateral contract | |
October 19, 2020 | Five-party agreement on a joint study on the FOURE Vision | Agreed to carry out a joint study aimed at the development of both renewable energy and local communities | |
October 28, 2020 | Three-party joint investment in an onshore wind power project | Made a silent partner investment in GK Aomori Wind Power | |
November 5, 2020 | Three-party joint project to build a biomass power plant | Decided to build a biomass power plant in Tahara City, Aichi Prefecture | |
December 17, 2020 | Two-party joint investment in D&D Solar GK and acquisition of a solar power plant through the company | Acquired Kuwaharajo Mega Solar in operation in Izumi City, Kagoshima Prefecture | |
December 17, 2020 | Start of the commercial operation of a biomass power plant | Commenced the commercial operation of a biomass power plant in Ichihara City, Chiba Prefecture | |
January 29, 2021 | Conclusion of a contract with West Holdings Corporation for solar power procurement | Procured electricity worth 200 MW from facilities to be developed in FY2022 and environmental value through a bilateral contract | |
February 1, 2021 | Two-party joint acquisition of a solar power plant through D&D Solar GK | Acquired the Isoharacho Tokkou Power Plant in Kitaibaraki City, Ibaraki Prefecture, which was put into operation in January 2021 |
2020 TOPIC) Joint investment in an onshore wind power project
On October 28, 2020, Osaka Gas signed a memorandum of understanding with Tokyo Land Corporation and Development Bank of Japan Inc. (hereinafter, “DBJ”) for joint investment aimed at contributing to more widespread use of renewable energy. As their first joint project, the three companies made a silent partner investment in GK Aomori Wind Power.
This project aims to construct a 36,000 kW onshore wind farm in Noheji Town, Kamikita District, Aomori Prefecture, and put it into operation in April 2022. Japan Wind Development Co., Ltd., which has developed this project so far, will continue to manage it as a co-operator.
DBJ evaluated this project as an innovative initiative of Tokyu Land Corporation and Osaka Gas for more widespread use of renewable energy in Japan, and it used the system of Special Investment Operations* to provide financial support for the project.
The three companies will continue joint efforts toward more widespread use of renewable energy, including wind power, by utilizing the expertise of Tokyu Land and Osaka Gas in the renewable energy business and DBJ’s financial expertise.
- * Special Investment Operations are designed to encourage private-sector institutions to provide growth capital intensively and temporarily. These operations are conducted partly based on government funds for industrial investment from the perspective of enhancing Japanese companies’ competitiveness and revitalizing local communities.
2020 TOPIC) Decision to build a biomass power plant in Tahara City, Aichi Prefecture
On November 5, 2020, Osaka Gas announced that it decided to build a biomass power plant in Tahara City, Aichi Prefecture, jointly with JAG Energy Co., Ltd. and Marubeni Clean Power Corporation.
This project aims to complete a 75,000 kW biomass power plant that will use wood pellets as fuel in October 2024. The percentages of ownership of Aichi Tahara Biomass Power Plant G.K., a limited liability company that will build and operate the plant, will be 37.5% for JAG Energy, 37.5% for Marubeni Clean Power, and 25% for Osaka Gas.
After the start of the plant’s commercial operation, Daigas G&P Solution Co., Ltd., a wholly owned subsidiary of Osaka Gas, will play the role of the owner's engineer* as a contractor by making use of Osaka Gas’s accumulated knowledge of power plant operation.
- * A provider of technical support to the operator
2020 TOPIC) Commencement of commercial operation of a biomass power plant in Ichihara City, Chiba Prefecture
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Biomass power plant in Ichihara
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On December 17, 2020, Ichihara Biomass Power Co., Ltd., a joint venture established by Osaka Gas, ITOCHU Corporation, and Mitsui E&S Engineering Co., Ltd., started commercial operation.
This power plant is located in the Chiba Works of Mitsui E&S Holdings Co., Ltd. in Ichihara City, Chiba Prefecture. It is a biomass power plant that uses wood pellets and palm kernel shell (PKS) as fuel (power generation capacity: 49.9 MW). Its estimated annual power generation is about 350,000 MWh, which is equivalent to the annual power consumption of about 120,000 households.* The launch of the power plant project was announced in September 2017. The plant was constructed by Mitsui E&S Engineering. The three companies will ensure stable management of the power plant by taking full advantage of their strengths. Specifically, a group company of Mitsui E&S Holdings Co., Ltd. will operate and maintain the plant, ITOCHU will supply the biomass fuel, and Osaka Gas will offer power plant management expertise.
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* The calculation is based on the following:
[1] Estimated annual power generation: About 35,000 kWh
[2] Average monthly power consumption of a household: 248.7 kWh (source: Tokyo Electric Power Company Holdings website)
[1] ÷ ([2] × 12 months) ≈ about 120,000 households
2020 TOPIC) Investment in Starfire Energy Inc., a U.S.-based startup in the field of “Green Ammonia”
In March 2021, Osaka Gas USA Corporation, a wholly owned subsidiary of Osaka Gas, invested in Starfire Energy Inc., which is developing systems to economically produce carbon-free, storable fuel known as “Green Ammonia”*1 from renewable energy, air and water. Other investors include AP Ventures,*2 Chevron Technology Ventures,*3 New Energy Technology Pty Ltd,*4 and Mitsubishi Heavy Industries America, Inc.
Ammonia is attracting attention as an alternative to fossil fuel because it does not emit CO2 in combustion and can be stored and transported with existing infrastructure technology. Green Ammonia, in particular, does not emit CO2 in production as well and is likely to serve as an energy source that can immensely help achieve a carbon-free society. Therefore, there are heightened expectations of green ammonia manufacturing and supply being established as a business as early as possible.
Starfire Energy Inc. is a U.S.-based startup founded in 2007 to develop renewable energy solutions, which later evolved into a focus on small-scale distributed ammonia production modules*5 and technology for cracking ammonia into hydrogen to generate electricity. Particularly in the field of ammonia synthesis, Starfire Energy has not only a catalytic technology but also a technology for responding flexibly to the fluctuating output of renewable energy, with lower pressure and higher energy-saving efficiency compared with conventional technologies. The company is currently striving to scale up those technologies toward commercialization.
- *1 Ammonia produced from renewable-energy-based power, water, and air in a process with no CO2 emissions
- *2 A UK-based startup investment fund
- *3 A subsidiary of major U.S. oil producer Chevron Corporation
- *4 An Australian investment fund
- *5 Small-scale ammonia production equipment that can be easily transported on a large trailer and installed near places of demand
About Green Power Fuel Corporation
In March 2019, Osaka Gas established Green Power Fuel Corporation, a joint venture company that procures and sells domestically grown woody biomass for biomass power plants, in cooperation with Seishin Shinrin Shigen Co., Ltd. and Nippon Paper Lumber Co., Ltd.
The Daigas Group already operates or plans to operate seven biomass plants in Japan, including participating in operating the Matsusaka Woody Biomass Power Plant, which is fueled 100% by locally available biomass. In cooperation with Seishin Shinrin Shigen, which has abundant knowledge about forestry, and Nippon Paper Lumber, which has a long track record in dealing in domestically grown woody biomass, Green Power Fuel Corporation procures and transports unused wood from woodlands in Japan as power generation fuel to ensure stable long-term biomass supply for multiple biomass power plants owned or developed by the Daigas Group.
The Daigas Group is also studying the possibility of selling woody biomass to other power generators in the future, aiming to consistently expand the business by utilizing the three companies’ strengths.
Demonstrative experiment for the realization of solar power forecasting services on the assumption of independence from FIT
Osaka Gas conducted a demonstrative experiment on the forecast of solar power generation output in cooperation with Next Kraftwerke (hereafter, “NXK”), a German virtual power plant (VPP*1) operator. The demonstrative experiment was started on October 1, 2019 at the Yura Solar Power Plant (south) owned by Yura Wind Power Development Co., Ltd., a wholly owned subsidiary of Gas and Power Co., Ltd. (currently Daigas Gas and Power Solution Co., Ltd.), a Daigas Group company. The aim of this experiment was to help achieve a highly accurate forecasting service for solar power generation output. Osaka Gas has been working to improve the accuracy of its short-range weather forecast technology, as seen in its registration as a weather forecast service company authorized by the Japan Meteorological agency in September 2018. The aim is that this experiment will help achieve a high accuracy of solar power forecasting by making forecasts in a timely manner while taking into account weather changes occurring up to one hour before.
In Germany, where renewable energy is now widely used, the feed-in tariff (FIT) scheme was adopted in 2000 so that power generated with renewable energy would be purchased at fixed prices. In 2012, to integrate renewable energy into the electricity market, the country adopted a scheme whereby the power purchase price is determined by adding a premium*2 to the market price. This scheme is known as the feed-in premium (FIP) scheme.*3 In step with this, renewable energy companies have begun to carry out renewable energy generation forecasting. Therefore, many companies have come to seek business opportunities in services such as accurate forecasting of renewable power output, which fluctuates significantly, and marketing transaction on behalf of renewable energy companies. NXK is one of these companies, boasting extensive experience in this field, as seen in its management of solar power generation of 3,100 MW in Germany.
Meanwhile, in Japan, the FIT scheme was adopted in 2012 to encourage the use of renewable energy. The FIP scheme will also be adopted in Japan in compliance with the Act on Partial Revision of the Electricity Business Act and Other Acts for Establishing Resilient and Sustainable Electricity Supply Systems, which will come into effect in April 2022. It is expected that services similar to those in Germany will become necessary under the FIP scheme.
Osaka Gas has been making various efforts to realize demand response (DR)*4/VPP operation services for the effective use of distributed energy resources, including demonstrative experiments on optimal storage-battery operation and control, which started in August 2018. In the latest demonstrative experiment, Osaka Gas worked toward providing new services for more effective use of renewable energy in anticipation of system changes.
- *1 A virtual power plant (VPP) is a network of distributed power sources bundled by a business operator called an “aggregator” to ensure a sufficient supply capacity and supply-demand adjustability.
- *2 A sum added to the market price when renewable power is purchased
- *3 Feed-in premium (FIP) is a scheme whereby renewable power is purchased at a price calculated by adding a premium to the market price.
Under this scheme, renewable energy companies are responsible for forecasting power generation output and covering the cost of the imbalance between the projected output and the actual output. - *4 Demand response (DR) denotes changes made to electricity demand patterns by the owners of distributed energy resources or third parties through the control of the relevant energy resources.
Establishing a solar power generation company in Thailand
Osaka Gas Singapore Pte. Ltd., a wholly owned subsidiary of Osaka Gas, and Energy Pro Corporation Ltd., a solar power generation company in Thailand, agreed on establishing a joint venture, OE Solar Co., Ltd. (hereinafter, “OE Solar”) in July 2019 to launch a solar power supply business in Thailand.
In Thailand, the government-approved power development plan for 2018 predicts that renewable energy will account for 20% of all power sources (excluding imported hydropower) by 2037. Public interest in renewable energy is growing in the country. Blessed with abundant sunshine, there is high demand for the introduction of solar power facilities at no initial cost.
To capture this new demand mainly among industrial and commercial customers, OE Solar will install solar power generation equipment on the roofs of buildings or in other spaces owned by such customers mainly in Bangkok. The company will continuously supply thus generated power for the customers for 15 to 20 years. By actively promoting the solar power supply business, we will contribute to reducing the environmental impact in Thailand.
■ Business Scheme

- Sustainability of
the Daigas Group -
President's Commitment
- Values and Sustainability Promotion of the Daigas Group
- Daigas Group's Values Daigas Group Charter of Business Conduct and Management Policy Daigas Group Code of Business Conduct Sustainability Promotion System and Management Stakeholder Engagement Initiatives the Daigas Group Participates In Commendation from the Outside
- Sustainability Management and Value Creation Process
- Value Creation Process of the Daigas Group Long-Term Management Vision 2030 Medium-Term Management Plan 2023 Daigas Group Carbon Neutral Vision
- Actions on Materiality
-
Materiality of the Daigas Group
Materiality Review Cycle
Customer Health and Safety
(FY2021 Report) Energy / Emissions
(FY2021 Report) Local Communities
(FY2021 Report) Customer Privacy
(FY2021 Report) Supplier Assessment
(FY2021 Report) Training and Education
(FY2021 Report) Diversity and Equal Opportunity
(FY2021 Report) Economic Performance
(FY2021 Report) Creating Value for Customers
(Charter I) Contributing to the Sustainability of the Environment and Society
(Charter Ⅱ) Engaging with and Contributing to Society (Charter Ⅲ) Respecting Human Rights
(Charter IV) Complying with Laws and Regulations (Charter V) Providing Work Environment That Supports Employees’ Personal Growth (Charter VI)
- Corporate Governance
- Corporate Governance Risk Management Compliance Messages from Outside Directors
- Value Chain and Sustainability
- Consideration for the Value Chain and Stakeholders Social Impact of Business Activities in Our Energy Value Chain and Our Efforts toward Sustainability
- Daigas Group's Efforts for SDGs
- Special Features: Co-create Value for a Sustainable Future - Daigas Group×Stakeholders Achieving a Low Carbon / Carbon Neutral Society Establishing Lifestyles and Businesses Adjusted to the New Normal Enhancing Resilience of Customers and Society Back Numbers of Special Features
- FY2021 Activities Report
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- Creating Value for Customers (Charter I)
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Charter I Index
Management for Creating Value for Customers
Safety and Security 1:
Procurement Stage Safety and Security 2:
Processing Stage Safety and Security 3:
Distribution Stage Safety and Security 4:
Consumption Stage Incorporating Customer Opinions Proposing New Value
- Contributing to the Sustainability of the Environment and Society (Charter Ⅱ)
- Charter Ⅱ Index Management toward Contributing to the Sustainability of the Environment and Society Environmental Management Environmental Management: Indicators, Targets and Results Actions for Climate Change: Recognition of and Action on Risks and Opportunities Actions for Climate Change: Method to Evaluate Effects of CO2 Emissions Reduction Actions for Climate Change: Working to Reduce CO2 Emissions in Business Activities Actions for Climate Change: Working to Reduce CO2 Emissions at Customer Sites Efforts in Resource Recycling Conserving Biodiversity Developing Environmental Technologies Addressing Environmental Risk Promotion of Green Purchasing Environmental Communication
- Engaging with and Contributing to Society (Charter Ⅲ)
- Charter Ⅲ Index Management of Engagement with and Contribution to Society Social Contribution Activities Corporate Volunteering Activities under the Small Light Campaign Activities for Promoting Communication with Society Activities at Osaka Gas' Foundations
- Respecting Human Rights (Charter IV)
- Charter IV Index Status of Management regarding Respect for Human Rights Human Rights Due Diligence Action on Human Rights
- Complying with Laws and Regulations (Charter V)
- Charter V Index Management for Complying with Laws and Regulations Compliance Promotion Efforts Efforts for Protection of Personal Information Information Security Consultations and Reports from Partner Companies
- Providing Work Environment That Supports Employees’ Personal Growth (Charter VI)
- Charter VI Index Status of Management to Support Employees' Personal Growth Employment Acceptance of Diversity Balancing Work and Family Human Resource Development and Rewards Communication Between Employees and Company Improving Occupational Health and Safety
- Reporting Guidance and Guidelines and ESG Data
- Reporting Guidelines