Consideration for the Value Chain and Stakeholders

The Daigas Group is responsible for the entire process, from the procurement and transportation of natural gas through city gas production and power generation to the supply^* and sale of gas and power, as well as equipment maintenance. The Group is committed to contributing to the good of various stakeholders through a wide range of opportunities.

The Daigas Group procures natural gas, which is a stable and environmental energy source, from suppliers outside Japan, and provides the gas to customers.
The Group underpins the safety and peace of mind of customers by procuring natural gas in a stable manner and building a solid security and accident-prevention system. At the same time, the Group has been expanding the scope of its business and enhancing its city gas value chain.

To ensure stable procurement of raw materials, we are working to further diversify our suppliers.

The Daigas Group supplies city gas through a total of approximately 63,300 km of pipelines (of which approximately 62,800 km are managed by Osaka Gas Network Co., Ltd.) after importing and receiving LNG and gasifying it (processing it into city gas) at domestic processing terminals. For city gas to be delivered to the customers safely and without worry, we are doing our utmost to take safety, security and disaster-prevention measures in each process.

In our international business, we take part in gas field development and seek out opportunities to participate in new projects in other countries. We are also actively expanding the scope of our business, including expanding our international LNG bases and our energy business in Asia.

Osaka Gas is focused mainly on thermal power generation using natural gas, which is a clean energy source with a low environmental impact, in combination with FIT-based generation using photovoltaic, biomass, and wind energy sources.
Furthermore, as an environmentally friendly pricing plan, our customers can now choose a pricing plan (E-ZERO/E-SHARE) that uses an FIT-based power source or power generated by a residential fuel cell, Ene-Farm type S.

The Daigas Group began supplying electricity to households and business operators such as restaurants and merchandise shops in April 2016 following full liberalization of the retail power market. The Group provides electricity to its customers, using power transmission and distribution networks operated by Kansai Transmission and Distribution, Inc. or other companies, which means that the service quality and reliability will remain the same as before. The Daigas Group has established a solid electricity supply system whereby power supply will not be suspended even if problems occur at power plants operated by the Group.

A representative from the general power distributor (such as Kansai Transmission and Distribution, Inc.) visits customers’ residences every four years to inspect household electrical equipment.

Osaka Gas’s task of delivering city gas to customers cannot be achieved without the cooperation of not only Daigas Group companies but also various business partners. We believe it is necessary for the Daigas Group to control the social and environmental effects that are generated in these business processes in the most responsible manner and in close cooperation with our business partners.

The Daigas Group has formulated the Daigas Group Procurement Policy as a way to fulfill its CSR in procurement activities and has disclosed it together with the Daigas Group Procurement Policy for Suppliers on Osaka Gas’s website. New materials suppliers are briefed about the policies before starting business transactions with the Daigas Group. Major suppliers are to be asked to reconfirm the content of the policies during an annual sustainability activity survey as part of our follow-up efforts.

We also conduct questionnaire surveys on sustainability activities, which are answered by LNG suppliers, gas appliance makers and companies involved in the gas business on a consignment basis, including gas service chains and construction companies.

In addition, under our “Green Partner Initiative,” our business partners recognized as being active in environmental management are registered as “Green Partners.” Suppliers other than those previously covered are now being covered by the initiative. At present, however, other parties are also eligible to register. We will continue to work with our suppliers to fulfill our CSR and aim to promote mutual prosperity along the entire value chain, from LNG drilling to marketing, sales and consumption.

Based on the “Daigas Group Code of Business Conduct,” Osaka Gas overseas companies have summarized work rules in an “Employee Handbook,” which each employee receives, and the companies also ensure that employees become familiar with the content. Through such efforts, employee awareness grows with respect to human rights, work standards, the environment and anti-corruption measures.

In June 1992, Osaka Gas established the Code of Conduct for Procurement Activities, containing basic policies regarding procurement activities and the CSR Procurement Guidelines, which listed CSR-related requirements for its business partners. In April 2020, these rules were revised into the Daigas Group Procurement Policy and the Daigas Group Procurement Policy for Suppliers so that the Daigas Group could work with suppliers on global social issues. The term “Compliance,” put first in both policies, means that in purchasing, employees should act as responsible members of society by following the letter and spirit of all relevant laws, as well as accepted norms and corporate ethics. “Relevant laws” means not only the relevant laws of countries where we do business, but also laws and regulations related to fulfilling corporate social responsibility regarding labor and human rights, including the 10 principles of the UN Global Compact. Among the contents of the Daigas Group Procurement Policy for Suppliers, points to note about efforts for social sustainability, in particular, have been put together into the Daigas Group Procurement Guidelines for Suppliers for easy reference.