Compliance Promotion Efforts

The Daigas Group views compliance not only as adherence to laws and regulations but also as the practice of sensible corporate activities based on sound ethics. Ensuring compliance requires that all executives and employees follow laws/regulations and their consciences, in line with the foundations for compliance set forth in the “Daigas Group Code of Business Conduct,” and act in accordance with in-house regulations and rules. For this reason, we conduct training and educational activities aimed at raising awareness of the importance of compliance, instilling knowledge, and improving the ability to think ethically.

We also believe that ensuring compliance is the most important thing that we can do to gain the trust of customers and society and is the basis for continuing our business. For this reason, we have established “Compliance Desks” as a system aimed at quickly identifying cases of violations of laws and regulations, misconduct, etc. and responding quickly and appropriately.

The “Predictive Data Monitoring” initiative has been conducted throughout the Daigas Group since FY2012 for the purpose of detecting signs of potential compliance-related problems. This initiative aims to prevent dishonest acts from occurring by detecting unusual changes in the data through regular and continuous monitoring and by taking proactive measures as soon as possible.
In FY2022, we monitored 165 items.

We are continually working to improve compliance awareness through such efforts as training sessions and awareness surveys.

For example, we conduct case method training to sharpen the ability to think ethically, and we offer Compliance Coordinator and Staff Seminars for compliance coordinators and staff who serve as key personnel in the compliance efforts of organizations and affiliated companies (including all subsidiaries), training sessions for organizational heads and higher-ranked managerial personnel conducted by invited outside instructors, and education arranged by job level for managers and new employees. In addition to the above, each organization/affiliate takes the initiative in conducting compliance training, such as in-workplace discussions on cases related to the "Daigas Group Code of Business Conduct.”

Furthermore, we provide employees with a variety of compliance-related information through the intranet and other means and undertake educational activities such as soliciting "Compliance Slogans" from employees every year (10,653 submissions were received group-wide in FY2022).

Osaka Gas has set compliance initiatives as one of the evaluation items in the role expectation evaluation to evaluate the level of conduct demonstrated by employees in their daily activities. This promotes compliance with laws and regulations and ethical standards.

In view of expanding business operations abroad, an English version of a leaflet summarizing the “Daigas Group Corporate Principles,” the “Daigas Group Charter of Business Conduct” and the “Daigas Group Code of Business Conduct” and information on Compliance Desks used for the internal reporting system are posted on the intranet for dissemination to employees.

In FY2022, we utilized the Osaka Gas proprietary risk management system “G-RIMS,” with revisions to certain items for overseas subsidiaries, as we endeavored to identify the status of implementation of actions on risks at 20 major overseas subsidiaries. For approximately 40 risk items, we promote implementation of actions on risks by inspecting the status of implementation of initiatives for prevention and early detection of risks.

We have established “Compliance Desks” at Osaka Gas's headquarters, major affiliated companies and outside law firms representing Osaka Gas as points of contact to receive reports and offer consultation regarding the observance of laws and in-house rules in the Daigas Group. Not only executives, regular employees and temporary employees of the Group but also executives and employees of business partners that continually provide products and services to group companies can seek advice or give reports by phone or email, or through other means. The Compliance Desks can also be used anonymously.

In FY2022, a total of 143 requests for consultation and reports were received. For these cases, after considering the necessity of fact-finding investigations, we implemented a series of measures, such as conducting interviews, verifying the evidence, and taking corrective and recurrence-prevention measures as necessary.

Regarding cases accepted by the Compliance Desks, we are taking measures to rectify violations of laws and regulations, etc. as well as making improvements, as necessary, even in cases where there are no violations for the purpose of maintaining and improving a healthy work environment.

We handle requests for consultation/reports received by the Compliance Desks and conduct investigation, etc. regarding them in accordance with the Rules for the systems of consultation and reporting on legal compliance, which clearly specify the confidentiality of the names of informants and persons being reported and other information and the prohibition of prejudicial treatment of informants.

We report on and share the description of the reports received, investigation results, corrective measures, etc. at the Compliance/Risk Management Subcommittee, the ESG Committee and other meetings to prevent recurrence.

Requests for consultation regarding compliance violations, including harassment, may be received not only by the Compliance Desks but also by the department in charge of general affairs in each organization. In order for each organization to be able to properly respond to such requests, training sessions are held for newly appointed compliance coordinators and staff, etc. to learn how to respond when receiving requests for consultation.