Organizational Risk Management Structure
Heads of divisions of the Daigas Group and affiliates are in charge of managing crisis-related losses by conducting risk-management inspections on a regular basis. Utilizing the Gas Group Risk Management System (G-RIMS), which systematizes self-checkups of risk management, and other systems, each division and affiliate checks if there are any risks and if risk control has been conducted properly regarding each risk item, and it implements follow-up and other measures if necessary.
To be prepared for emergencies, we have established the Rules for Disaster Control and the Business Continuity Plan (BCP).
Regular Reviews and Monitoring
Operating G-RIMS, our own self-assessment system
G-RIMS was introduced by the Daigas Group in 2006 to manage business risks in its daily operations. Under the system, a manager in charge of risk control at each organization and affiliated company checks the implementation of risk-prevention and early-detection measures, devised based on around 50 risk items. The manager is also tasked with identifying risks to be addressed and assessing their potential seriousness before drawing up and implementing response plans and follow-up measures while operating the PDCA (plan-do-check-act) cycle.
G-RIMS (Gas Group Risk Management System) Check List
1. Management environment
- ・Dissemination of corporate principles
- ・Decision making and follow-up process
- ・Poor maintenance of regulations
- ・Failure to report business information that should be reported
- ・Effectiveness of self-audits
2. Human rights, harassment
- ・Violation of human rights (workers, local residents, consumers, etc.)
- ・Harassment (sexual harassment, maternity harassment, power harassment)
3. Personnel affairs, labor affairs
- ・Inappropriate labor management and incompliance with labor-related laws and regulations
- ・Inappropriate employment contracts with non-regular employees
- ・Securing human resources
- ・Developing human resources
4. Accident prevention, workplace safety
- ・Slack conduct regarding accident prevention and workplace safety
- ・Vehicles for business use
5. Response to relevant laws
- ・Violation of applicable laws and regulations
6. Illegal transactions
- ・Violation of the antitrust act
- ・Violation of the subcontract act
- ・Violation of the labeling act
7. Inappropriate relationships
- ・Cozy relationships, bribery, etc. with public servants; cozy relationships with clients and suppliers
8. Anti-social forces
- ・Refusal to have a relationship with anti-social forces
9. Insider trading
- ・Practice of insider trading, provision of insider information
- ・Illegal receipt of subsidies
11. Management of seals
- ・Illegal use of seals
12. Purchase, expense-related spending
- ・Inappropriate procedures and illegal practices concerning purchase and expense-related spending (accounting spending)
13. Illegal practices concerning money transfer
- ・Illegal use of bank accounts
- ・Embezzlement of cash
- ・Embezzlement of sales proceeds
- ・Illegal spending
- ・The same person taking a spending-related post for a long time
14. Accounting, tax-related procedures
- ・Errors, illegal practices and delays concerning accounting and tax-related procedures
15. Credit control, loan control
- ・Irrecoverable loans, delays in loan collection
- ・Acceptance and execution of guaranteed debts
16. Scandals involving suppliers
- ・Compliance problems emerged at corporate clients concerning human rights, labor practices, environment and corruption.
17. Whistle blowing system (Compliance Desk)
- ・Insufficient dissemination of a whistleblowing system
- ・Operational defects of a whistleblowing system
- ・Violation of environment-related laws
19. Products, services
- ・Quality of products and services (complaints, defects, recall, product liability, consumer protection, etc.)
20. Business continuity in emergency
- ・Suspension or delay of business activities/operations in an emergency, such as a disaster
21. Intellectual property
- ・Insufficient protection of intellectual property rights owned by Osaka Gas
- ・Infringement of intellectual property rights owned by third companies
- ・Legal disputes such as lawsuits
23. Information disclosure
- ・Inappropriate information disclosure procedures and the subsequent erosion of public trust in Osaka Gas
24. Information control in general
- ・Leakage, loss and illegal use of information
25. Computer network related (computer networks, business apps related to computer networks, information used via such networks and apps)
- ・Illegal use of information, illegal alteration of information and information leakage, all arising from the lack of security measures
26. Personal information concerning customers and corporate clients (including customer information)
- ・Leakage, loss and illegal use of personal information concerning customers
27. Personal information concerning employees
- ・Leakage, loss and illegal use of personal information concerning employees
28. “My Number” system (individual identification number and specified personal information)
- ・Leakage, loss and illegal use of “My Number” identification numbers
29. Funds, derivatives
- ・Problematic fund management and fund procurement
- ・Problematic fund control
- ・Speculative derivative transactions
30. Electronic banking
- ・Illegal and erroneous money transfers using the electronic banking system
Operating Status of the Internal Control Systems
The Company’s Board of Directors developed an internal control system which includes systems necessary to ensure that the execution of duties by Directors complies with laws and regulations and the Articles of Incorporation, and other systems prescribed by the applicable Ordinance of the Ministry of Justice as systems necessary to ensure the properness of the Company’s operations. The Company confirms the operating status of the internal control systems on a periodic basis by receiving reports mainly from the heads of organizations regarding a list of items to be confirmed. At the meeting of the Board of Directors held on April 26, 2022, it was reported that the internal control systems were operating in a proper manner.
Overview of operational status of the internal control system (FY2022)
(i) Matters concerning compliance, etc.
The ESG Committee promotes initiatives in each area through the Compliance and Risk Management Subcommittee, the Environment Subcommittee and the Social Contribution Subcommittee. Educational materials, including a guide to the Daigas Group Code of Business Conduct, are posted on the intranet at all times to ensure that Directors and employees of the Daigas Group are familiar with the Code and understand it.
We revised the systems of consultation and reporting in light of enforcement of the Amendment Act of the Whistleblower Protection Act (Act No. 51 of 2020) as of June 1, 2022. Effective April 1, 2022, we have expanded the scope of affiliates where the internal reporting hotlines are established, and we have implemented measures to ensure independence for reports involving management.
(ii) Matters concerning risk management, etc.
Initiatives are being undertaken under the organizational risk management structure, responsibility, and authority described above. We have established the Countermeasure Headquarters in response to the COVID-19 outbreak in Japan and abroad to monitor the progress of countermeasures at the Daigas Group and implement infection control measures as needed.
To manage risks common to all Group companies, including safety and security risks, as well as the risks of disasters and accidents, we have clearly appointed responsible organizations to support each basic organization or related company. In addition, on April 1, 2022, we established a Safety and Disaster Prevention Committee, which coordinates and promotes cross-organizational measures related to safety and disaster prevention within the Group, to take all possible measures to ensure safety and disaster prevention after the transfer of the general gas pipeline business, etc. to our wholly owned subsidiary, Osaka Gas Network Co., Ltd.
We thus perform Group-wide risk management. To be prepared for emergencies, we have established the Rules for Disaster Control and the Business Continuity Plan. Under the plan, we conduct company-wide comprehensive disaster drills consisting of an earthquake drill and a BCP drill. In the current fiscal year, we will assume the occurrence of a disaster during the COVID-19 pandemic and confirm measures to ensure the smooth operation of the task force meetings after the transfer of the general gas pipeline business, etc.
We have also established a Cyber Security Committee, which regularly inspects and follows up on the Group's security, thereby further strengthening our measures against attacks from outside the Group's network.
(iii) Matters concerning the management of businesses in the Group
The affiliated companies to be managed by the core companies, overseas regional headquarters, or the management support organizations are designated and their managerial tasks are monitored by receiving periodic reports and reports on important issues from the affiliated companies. In addition, day-to-day management of those affiliated companies is performed by using the G-RIMS and/or conducting audits.
The Company's Auditing Department, which conducts internal audits, implements planned internal audits of the Company's organizations and the affiliated companies and provides follow-up audits after a certain period of time.
(iv) Matters concerning the effectiveness of audits by Audit & Supervisory Board Members
Full-time Audit & Supervisory Board Members have periodic exchanges of opinion with the Director and Chairman, the Representative Director and President, and the accounting auditor, in which Outside Audit & Supervisory Board Members also participate as necessary. Partly through the opportunity to exchange opinions with the accounting auditor, Audit & Supervisory Board Members evaluate the qualifications, expertise and independence of the accounting auditor.
Full-time Audit & Supervisory Board Members attend important meetings, such as the Executive Board, meetings of the ESG Council, meetings of the Investment Evaluation Committee, etc., and read approval documents and other important documents. Through a Board of Directors' resolution on the internal control systems, they also clarify important matters to be reported to Audit & Supervisory Board Members and disseminate information thereof.
Four assistants to Audit & Supervisory Board Members are in place to engage solely in assisting Audit & Supervisory Board Members in the performance of their duties.
- Sustainability of
the Daigas Group
- 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
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
- FY2022 Activities Report
- Creating Value for Customers (Charter I)
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 Activities for Promoting Communication with Society Corporate Volunteering Activities under the Small Light Campaign Social Contribution Activities 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