Supplier Assessment (FY2021 Report)
Why the topic is material
Our broad-based city gas value chain is built on the cooperation of various business partners. Fulfilling our social responsibilities by working with our suppliers in the value chain builds relationships of trust with our stakeholders and furthers the development of the entire value chain.
Within and beyond the Group
Management systems and performance
Indicator (GRI Standards: 308-1, 414-1)
Percentage of new suppliers that have been selected using criteria regarding environment, social impact, human rights and labor practices
Osaka Gas is committed to fulfilling its social responsibility in close cooperation with business partners in line with the Daigas Group Code of Business Conduct, revised in accordance with the United Nations Global Compact.
The Daigas Group has formulated the Daigas Group Procurement Policy and informed the Group’s suppliers of it, together with the Daigas Group Procurement Policy for Suppliers.
(International and domestic standards)
- ・U.N. Global Compact
(In-house policy and standards)
- ・Daigas Group Code of Business Conduct
- ・Daigas Group Procurement Policy
- ・Daigas Group Procurement Policy for Suppliers
Each organization in charge of procuring particular materials is to fulfill its responsibility in accordance with the procurement-related policies and guidelines set by Osaka Gas.
A total of 41 suppliers began new business transactions with Osaka Gas in FY2021. In the year, no business deals were barred from being started due to violations of standards set in the fields of environmental and social impacts, human rights and labor practices.
Specific actions taken regarding materiality
Measures in material procurement
We have a system for explaining the Daigas Group Procurement Policy and the Daigas Group Procurement Policy for Suppliers to our suppliers and confirming their commitment to sustainable activities before proceeding with a new business transaction. In FY2021, a questionnaire survey was conducted of 177 major suppliers to check their sustainability efforts. Furthermore, when the suppliers conduct business transactions with the Daigas Group, they are asked to observe the “Green Purchasing Guidelines” set by the Group, which are attached to the specifications for the transactions.
Revision to the “Green Partner Initiative”
The “Green Partner Initiative” adopted by Osaka Gas is designed to promote environmental conservation by suppliers of gas pipeline materials. Under the system, suppliers that are recognized as being active in environmental conservation activities such as the building of an Environmental Management System (EMS) will be registered as Partners. Osaka Gas initially focused on suppliers of gas pipelines for its “Green Partner Initiative.” In FY2016, the Company revised the initiative to cover companies other than suppliers of gas pipeline materials as well. As of the end of FY2021, 110 suppliers were registered as Partners.
Sustainability activity survey of suppliers conducted to promote information sharing on social and environmental issues to be tackled by companies
We conduct a questionnaire survey of suppliers on sustainable activities to provide a sense of security to customers when they choose the Daigas Group, as well as taking into account social and environment aspects in doing business. The survey is based on the Daigas Group Procurement Policy and the Daigas Group Procurement Policy for Suppliers. In FY2021, the survey was carried out of 33 gas appliance makers to assess the status of their efforts for a total of 59 items on the eight themes of compliance, human rights, labor, occupational health and safety, product safety and quality, environmental conservation, ethics and prevention of corruption, and policy enforcement system. In addition, we conducted a survey of 232 service companies and engineering firms to which the Company has entrusted certain business duties, and nine LNG suppliers.
We will continue to fulfill our social responsibility in partnership with our suppliers and aim to promote mutual development for the entire value chain.
■ Survey on Sustainability Activities Conducted in FY2021
|Companies covered by the survey||Number of companies surveyed||Number of companies which replied||Other efforts|
|Main suppliers||177||177||Green Partner Initiative|
|Gas appliance makers
(conducted in August 2020)
|Service companies, engineering firms
(conducted in August 2020)
|LNG Supply Sources
(conducted in November 2020)
- 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