About the "Daigas Group" brand
Concept of the "Daigas Group"
The concept is "Dynamic and Innovative, Genuine and Studious." This is a paraphrase of the three guiding principles; "Enterprising spirit," "Customer-oriented approach" and "Wholeheartedness and a sense of mission," which have been highly valued to realize the Daigas Group's Corporate Principles.
Dynamic Triangle
The tricolored triangle within the logo has been named the "Dynamic Triangle." Each triangle represents the three guiding principles and the Group's three business pillars evolving towards the future.
INTEGRATED 2021
REPORT
Better servicing customers in closer communication for a brighter tomorrow
Guiding principle: "Customer-oriented approach"
Business area: Life & business solutions
Guiding principle: | Guiding principle: |
"Wholeheartedness | "Enterprising spirit" |
and a sense of mission" | Business area: |
Business area: | International energy |
Domestic energy |
Osaka Gas Co., Ltd.
4-1-2, Hiranomachi, Chuo-ku, Osaka 541-0046, Japan
https://www.osakagas.co.jp/en/
Inclusion in SRI Indices
Osaka Gas was included in the following socially responsible investment (SRI) indices and an investment universe (candidates for inclusion in indices) as of June 30, 2021.
*
* | * |
- The inclusion of Osaka Gas Co., Ltd. in any MSCI Index, and the use of MSCI logos, trademarks, service marks or index names herein, do not constitute a sponsorship, endorsement or promotion of Osaka Gas Co., Ltd. by MSCI or any of its afliates. The MSCI Indexes are the exclusive property of MSCI. MSCI and the MSCI Indexes names and logos are trademarks or service marks of MSCI or its afliates.
Published in 2021
1 Getting to Know the Daigas Group
Creating Value for a
Sustainable Future
We aim to solve various issues in building a sustainable society by taking on new challenges as well as existing ones while thereby achieving further growth of the Daigas Group.
We focus our efforts on creating "value for a sustainable future" with our stakeholders by utilizing
our strengths in developing solutions and innovations, and share the achievements with our stakeholders. We aim to be an "innovative energy and service company that continues to be the first choice of customers" while striving to make contributions to achieving a sustainable society.
Outline of the Daigas Group
Getting to Know | Daigas Group's | Business Report | ESG Highlights | Corporate Governance | Financial Section | 2 | ||||||||||
the DaigasGroup | Co-creation of Value | |||||||||||||||
Corporate Prole of Osaka Gas Co., Ltd. (As of March 31, 2021)
Head Ofce | 4-1-2, Hiranomachi, Chuo-ku, Osaka 541-0046, |
Date of Establishment | Japan |
April 10, 1897 | |
Date of Founding | October 19, 1905 |
Net Sales *1 | [Non-consolidated] ¥1,053.5 billion |
Ordinary Prot *1 | [Consolidated] ¥1,364.1 billion |
[Non-consolidated] ¥73.0 billion | |
Prot *1 | [Consolidated] ¥127.7 billion |
[Non-consolidated] ¥54.6 billion | |
Share Capital | [Consolidated] ¥80.8 billion *2 |
¥132,166 million | |
Number of Employees | [Non-consolidated] 3,203 |
(including executive ofcers, directors and temporary employees, and | |
excluding employees temporarily transferred to afliated companies) | |
[Consolidated] 20,941 | |
*1 Fiscal year ended March 31, 2021
*2 Prot attributable to owners of parent
Main Business Lines of the Daigas Group (As of March 31, 2021)
Business segments | Main business lines |
Domestic Energy / Gas | Production, supply and sale of city gas, sale of |
gas appliances, gas pipe installation, sale of | |
LNG and LPG, sale of industrial gas | |
Domestic Energy / Electricity | Power generation, sale of electricity |
International Energy | Development of and investment regarding oil |
and natural gas, energy supply, LNG transport | |
Development and leasing of real estate properties, | |
Life & Business Solutions | information-processing services, sale of ne |
materials and carbon material products | |
Daigas Group Organization (As of April 1, 2021)
Board of Directors | Audit & Supervisory Board Members | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Chairman / President | Ofce of Audit & Supervisory Board | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Executive Board | Osaka Gas Co., Ltd. organizations | Core energy business companies, core afliates, business process service company | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporate | Innovation | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Planning HQ | Headquarters | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Int'l& BusinessUnit | USACorporation | EngineeringBusinessUnit | PowerSolution Co.,Ltd. | BusinessUnit | MarketingCo., Ltd. | EnergyCo., Ltd. | DevelopmentCo.,Ltd. | ChemicalsCo., Ltd. | Create Co.,Ltd. | |||||||||||||||||||||||||||||||||||||||||||||||
DevelopmentDept. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Company | Co.,Ltd. | Dept. | Dept. Technology | Dept. | Dept. | .Dept | Dept. | Evaluation | Committee | |||||||||||||||||||||||||||||||||||||||||||||||
Ofce | Dept. | Ofce | Dept. | Ofce | Ofce | Branch | Dept. | |||||||||||||||||||||||||||||||||||||||||||||||||
Risk | Urban |
Net sales | Segment profit | ||||||||||||||||
-6.2% | 15.3% | ||||||||||||||||
15.9% | Net sales | 17.5% | |||||||||||||||
5.1% | 67.2% | Segment prot | |||||||||||||||
¥1,364.1 | ¥126.1 | ||||||||||||||||
billion | 11.9% | billion | |||||||||||||||
18.1% | |||||||||||||||||
Segment assets | |||||||
3.5% | 1.3% | ■ Domestic Energy / Gas | |||||
18.1% | ■ Domestic Energy / Electricity | ||||||
■ International Energy | |||||||
Segment assets | |||||||
51.8% | ■ Life & Business Solutions | ||||||
¥2,313.3 | |||||||
41.3% | ■ Elimination, etc. | ||||||
billion
27.4%
11.9%
Energy Resources | Osaka Gas | LNG, Power & | Daigas Gas and | Network | Energy Solution | Osaka Gas | Daigas | Osaka Gas Urban | OGIS-RI | Osaka Gas | Osaka Gas Business | CorporateStrategy | ESG Ofce | DX Promotion | New Business | Finance | Investment | Innovation | Laboratories | Systems | Secretariat | CorporateCommunication | Human Resources | AffairsGeneral | &Property | Purchasing | Tokyo | Auditing | ESGCommittee | Committee | Cyber Security | DXCommittee | |||
Management | Energy | Information/Communication | Development Compliance | Investment | |||||||||||||||||||||||||||||||
Business Units / | Core | Business | Corporate Headquarter Divisions | Corporate | |||||||||||||||||||||||||||||||
Core Energy Business Companies / | Afliates | Process | Committees | ||||||||||||||||||||||||||||||||
Overseas Regional Headquarters | Service | ||||||||||||||||||||||||||||||||||
Company |
3 Getting to Know the Daigas Group
Daigas Group's Values
The "Daigas Group Corporate Principles" consists of "What We Aim To Be," "Our Commitment"
Getting to Know | Daigas Group's | Business Report | ESG Highlights | Corporate Governance | Financial Section | 4 | |||||||
the Daigas Group | Co-creation of Value | ||||||||||||
Table of Contents
Getting to Know the Daigas Group | Business Report |
and "Our Corporate Motto." The Daigas Group carries out its business activities based on the "Daigas Group Corporate Principles."
Daigas Group Corporate Principles
What We Aim To Be
A corporate group that powers continuous advancement in customers' lives and businesses.
Outline of the Daigas Group | 1 |
Daigas Group's Values | 3 |
Table of Contents, Editorial Policy | 4 |
Our Commitment | 5 |
History of Co-creation of Value | 7 |
Financial Data / Non-Financial Data | 9 |
Daigas Group's Co-creation of
Value
Message from the President | 11 | |
Explanation of Finance Strategy | 15 | |
Value Creation Process | 17 | |
Domestic Energy Business | 51 |
International Energy Business | 53 |
Life & Business Solutions (LBS) | 55 |
Business | |
Technological Development | 57 |
ESG Highlights
Environment | 61 |
Social | 63 |
Governance | 67 |
Corporate Governance
Our Commitment
We create four types of value.
We create value primarily for customers, as well as for society, shareholders, and employees.
Our Corporate Motto
Service First
Daigas Group Charter of Business Conduct
Ⅰ . Creating value for customers
Ⅱ. Contributing to the sustainability of the environment and society
Ⅲ. Engaging with and contributing to society Ⅳ. Respecting human rights
Ⅴ. Complying with laws and regulations
Ⅵ. Providing work environment that supports employees' personal growth
Daigas
Group
Corporate Principles
Daigas Group
Charter of Business Conduct
[Corporate attitude]
Daigas Group Code of Business Conduct [Code of conduct for officers and employees]
Daigas Group's Values
We have set the Daigas Group Corporate Principles, Charter of Business Conduct, and Code of Business Conduct as guidelines for realizing the Daigas Group's Values including what the Group aims to be, its commitment, corporate motto, attitude, and standards of conduct that executives and employees must follow.
We aim to be a corporate group that powers continuous advancement in customers' lives and businesses. And we are committed to creating four types of value to fulfill our social responsibility: we create value primarily for customers, as well as for society, shareholders, and employees. In order to achieve these, we promote efforts that are in line with
Daigas Group's Businesses and Capitals | 19 |
with Strengths | |
Materiality Identification Process | 21 |
Materiality and Daigas Group Charter of | 23 |
Business Conduct | |
Long-Term Management Vision 2030 and | 25 |
Medium-Term Management Plan 2023 | |
Medium-Term Management Plan 2023 | 27 |
. Co-create Value for a Sustainable | |
Ⅰ | |
Future | |
Achieving a Low Carbon / Carbon Neutral | 29 |
Society | |
Climate Change Initiatives | 33 |
Establishing Lifestyles and Businesses | 37 |
Adjusted to the New Normal | |
Enhancing Resilience of Customers and | 41 |
Society | |
. Evolve Our Corporate Group | |
Ⅱ | |
Enhancing Business Portfolio Management | 45 |
Promoting Business Transformation with DX | 47 |
Maximizing Value for Each Employee | 49 |
Corporate Governance | 69 |
Messages from Outside Directors | 77 |
Financial Section | |
Summary of Consolidated Operating | 79 |
Results | |
[Consolidated Financial Statements | |
and Notes] | |
Consolidated Balance Sheet | 81 |
Consolidated Statement of Income | 83 |
Consolidated Statement of
Comprehensive Income / Consolidated 84
Statement of Changes in Equity
Consolidated Statement of Cash Flows 85
Notes | 86 |
Annexed Consolidated Detailed | 108 |
Schedules | |
Internal Control Report | 110 |
Independent Auditor's Report on the | 112 |
Financial Statements and Internal Control | |
Over Financial Reporting |
Corporate Data
Group Companies / Company Data 115
the Daigas Group's Values.
Tool Map
Forward-Looking Statements
Daigas Group Code of Business Conduct
The Daigas Group disseminates diverse information with a variety of tools in order to promote communication with stakeholders. The Daigas Group works on proactive information disclosure for better understanding of the Group.
These materials include forecasts on future performance, plans, and strategies, which are based on the judgment of the Group upon currently available information.
Please note that actual financial results may differ from forecasts due to various factors.
- Respecting human rights
- Providing safe and secure workplace
- Complying with laws and regulations
- Avoiding use of professional positions and company property for personal reasons
- Complying with laws in each country and region, and respecting international standards including those on human rights
- Contributing to the environmental conservation
- Complying with anti-monopoly laws and regulations, and conducting fair transactions
- Providing products and services
- Ensuring safety of products and services
- Interacting with customers appropriately
- Engaging with and contributing to society
- Building and maintaining sound relationships with business partners
- Engaging business partners in following Daigas Group Code of Business Conduct
- Managing proper use of information and systems
- Disclosing information and engaging with stakeholders
- Properly handling intellectual property
- Avoiding association with anti-social groups and individuals
- Making tax payment and performing accounting practices properly
Leaets | WEB | ||||||||||||
(downloadable from the web) | |||||||||||||
● Corporate Governance Report | ● Investor Relations | ||||||||||||
Financial | ● Business Report | ||||||||||||
● Securities Report | https://www.osakagas.co.jp/ | ||||||||||||
information | ● Fact Book | en/ir/ | |||||||||||
● Integrated Report | |||||||||||||
Non- | ● Sustainability | ||||||||||||
nancial | https://www.daigasgroup.com/ | ||||||||||||
information | |||||||||||||
en/sustainability/ | |||||||||||||
Editorial Policy
In Integrated Report 2021, we pay particular attention to non-financial information in order to present how assets accumulated to date will lead to future value creation and realize sustainable growth to our stakeholders, which include shareholders and investors. We will continue to pursue further improvement of its content.
Factors that can affect actual financial results include economic trends in Japan, sharp fluctuations in exchange rates and crude oil prices, and extraordinary weather conditions.
Scope of This Report | Osaka Gas Co., Ltd. and its group companies |
Period Covered | April 1, 2020, to March 31, 2021 |
*Matters on other periods are partially included. |
Guidelines Referred to
- International Integrated Reporting Framework of the International Integrated Reporting Council (IIRC)
- Guidance for Collaborative Value Creation of the Ministry of Economy, Trade and Industry
- Environmental Reporting Guidelines 2018 of the Ministry of the Environment
- Final Report of the Task Force on Climate-related Financial Disclosures (TCFD)
- ISO26000 (guidance on social responsibility) of the International Organization for Standardization
- Sustainability reporting standards of the Global Reporting Initiative (GRI Standards)
- The United Nations Global Compact COP Policy
5 Getting to Know the Daigas Group
Our Commitment
Commitment
To be an innovative energy and service company that continues to be the first choice of customers and achieve sustainable growth
To maximize value for all
stakeholders
Getting to Know | Daigas Group's | Business Report | ESG Highlights | Corporate Governance | Financial Section | 6 | |||||||
the Daigas Group | Co-creation of Value | ||||||||||||
We would like to extend our warmest greetings to all stakeholders as we issue this Integrated
Report.
The COVID-19 pandemic has been significantly impacting daily life and economic activity since the previous year. At the Daigas Group, we have been working hard to provide the stable supply of energy and maintain safety, as a corporate group responsible for social infrastructure. And we are rediscovering the weight of this responsibility on a daily basis.
Over the past 115 years since beginning to provide gas for lighting gas lamps in 1905, our gas business has expanded its application to heat source for residential, commercial, and industrial purposes to electric power generation, in response to social and environmental changes. The Daigas Group has worked to evolve as a corporate group that can meet the needs of customers and society through providing gas and electricity, as well as various related products, services, and solutions to support lifestyles and businesses.
The Daigas Group's principles and spirit are reflected in Our Corporate Motto "Service First" and in What We Aim to Be, "a corporate group that powers continuous advancement in customers' lives and businesses," which each employee takes to heart. We believe that it is the management's mission to apply these unwavering corporate principles and values to the greatest extent possible to the Daigas Group's corporate activities, regardless of changes in the times or the environment.
In the age of COVID-19 and even afterward, there will never be a change in the Daigas Group's original intention to genuinely engage with and serve customers and society. We are committed to maximizing value for all stakeholders, including customers and shareholders, and working toward realizing sustainable growth. As we work to meet the commitment, we aim to evolve into "an innovative energy and services company that continues to be the first choice of customers," which is our goal set in the Long-Term Management Vision 2030.
In March 2021, we announced the Daigas Group Medium-Term Management Plan 2023: Creating Value for a Sustainable Future, following the Daigas Group Carbon Neutral Vision released in January. Under the Plan, we will strive to create value for a sustainable future, which consists of achieving a low carbon / carbon neutral society, establishing lifestyles and businesses adjusted to the new normal, and enhancing resilience of customers and society. Creating this value will fulfill our corporate purpose of contributing to society by solving social issues.
As we pursue the goals set in the current Medium-Term Management Plan, we deeply appreciate the continued support and encouragement of our stakeholders.
September 2021
Takehiro Honjo | Masataka Fujiwara |
Chairman of the Board | Representative Director and President |
7 | Getting to Know the Daigas Group | Getting to Know | Daigas Group's | Business Report | ESG Highlights | Corporate Governance | Financial Section | 8 | ||||||||
the Daigas Group | Co-creation of Value | |||||||||||||||
History of Co-creation of Value
The Daigas Group's gas business began with gas supply in 1905. In over 110 years since, the gas business that started with lighting gas lamps has expanded the application of gas to cooking, heating, hot water, and power generation, overcoming many obstacles as society evolved and lifestyles changed. Additionally, founded on the relationships with customers and regions that
have been fostered through the energy business, the Daigas Group has expanded its business domains and developed into a corporate group that provides various products, services, and solutions.
History of
Growth in the
Daigas Group's
Businesses
Osaka Gas Co., | 1905 | 1924 | 1945 | 1947 | 1960 | 1971 | 1977 | 1984 | 2016 | |||||||||||||||||||||||||||||||||
Ltd. established | Gas supply | Cooking classes | Performs rst and | Central Research | Operations begin at | Operations begin | Operations begin | Operations begin at Himeji LNG Terminal | Enters low-voltage | |||||||||||||||||||||||||||||||||
with capital of | begins | at the head ofce | second merger | Institute established | Hokko Plant | at Senboku Plant | at Senboku | electricity supply | ||||||||||||||||||||||||||||||||||
¥350,000 | begin | (shut down in 1989) | LNG Terminal II | business | ||||||||||||||||||||||||||||||||||||||
Established | ||||||||||||||||||||||||||||||||||||||||||
in 1897 | 1950 | 1975 | 1979 | 2009 | ||||||||||||||||||||||||||||||||||||||
Natural gas | Operations begin at the | |||||||||||||||||||||||||||||||||||||||||
Gas Appliances Laboratory | 1990 | Operations begin at Senboku | ||||||||||||||||||||||||||||||||||||||||
conversion | world's rst cryogenic | |||||||||||||||||||||||||||||||||||||||||
established | Natural gas conversion completed | Natural Gas Power Plant | ||||||||||||||||||||||||||||||||||||||||
begins | power plant | |||||||||||||||||||||||||||||||||||||||||
* Independent Power Producer | ||||||||||||||||||||||||||||||||||||||||||
1972 | 2004 | 2013 | 2019 | |||||||||||||||||||||||||||||||||||||||
Participates in IPP* | Commercial operation | |||||||||||||||||||||||||||||||||||||||||
Importing of LNG from Brunei begins | Gas sales in | |||||||||||||||||||||||||||||||||||||||||
of Freeport LNG | ||||||||||||||||||||||||||||||||||||||||||
business in the | ||||||||||||||||||||||||||||||||||||||||||
Singapore begins | Project in the United | |||||||||||||||||||||||||||||||||||||||||
United States | ||||||||||||||||||||||||||||||||||||||||||
States begins | ||||||||||||||||||||||||||||||||||||||||||
2019 | ||||||||||||||||||||||||||||||||||||||||||
2009 | 2014 | |||||||||||||||||||||||||||||||||||||||||
Natural gas supply | ||||||||||||||||||||||||||||||||||||||||||
Acquires interests of Gorgon LNG | ||||||||||||||||||||||||||||||||||||||||||
Energy services in | company established | |||||||||||||||||||||||||||||||||||||||||
Project in Australia | ||||||||||||||||||||||||||||||||||||||||||
Thailand begins | in Vietnam | |||||||||||||||||||||||||||||||||||||||||
Domestic
Energy
Business
Value
International Creation
Energy Process
Business
P.17
1949
Kinki Coke Distribution Co., Ltd. established (currently Osaka Gas Chemicals Co., Ltd.)
1965 Osaka Gas Real Estate Co., Ltd. established (currently Osaka Gas Urban Development Co., Ltd.)
1981 | 1989 | 2013 | ||||||
OG Sports Co., Ltd. | Urbanex Co., Ltd. established | Acquires shares of | ||||||
established | (currently Osaka Gas Urban Development Co., Ltd.) | Jacobi Carbons AB | ||||||
2015 | ||||||||
1983 | 1991 | |||||||
OG Information System | Osaka Gas | 1992 | Acquires shares of | |||||
Co., Ltd. established | Chemicals Co., Ltd. | Mizusawa Industrial | ||||||
(currently OGIS-RI Co., Ltd.) | established | OGIS-RI Co., Ltd. established | Chemicals, Ltd. | |||||
LBS Business
1900 1910 1920 1930 1940 1950 1960 197019801990 2000 20102020 2021
History of Innovation in Energy Business | Gas cogeneration / fuel cells | |||
Industrial use (gas burner) | Industrial use (boilers / industrial furnaces) | |||
Hot-water supply (water/space heating) / | ||||
oor heating / bathroom dryer | ||||
Heating (gas stove, fan heater) | Residential/commercial use | |||
(kitchen stoves / heating / hot-water supply) | ||||
City gas application development Gas lamp | Cooking (gas furnace) | Cooking (gas range) | Cooking (rice cooker, grilling stove) | |
Low carbonization of feedstock of city gas | Coal | Oil | Natural gas | |
Electricity Business / International Energy Business | Power source development |
Striving to become carbon neutral
Social Background and Daigas Group's Strategy
- Social Issues and Needs
Improving | From oil lamp to gas lamp |
At the time, oil lamps which occasionally | |
regional safety | caused res, and expensive electrical |
lighting, were commonplace, becoming a | |
social issue in urban areas. |
Changes in
lifestyle
Life changed by gas
Various lifestyles and people's customs were undergoing changes, and women's participation in society also began.
Gas furnace
Increase in population/
Increase in postwar recovery
energy demand It became necessary to address increased energy demand and rapid urbanization.
Realization of
sustainable
society
Growing concern for environment
SDGs, Paris Agreement, and TCFD recommendations, etc., have been presented as pressing issues that must be tackled on a global scale.
- Daigas Group's Co-creation of Value
Gas supply | Working to popularize gas lamps | Proposals of |
With the provision of safe and affordable gas | ||
begins | to citizens being set forth as the purpose of | new lifestyles |
the incorporation of the Company, efforts | ||
were made to popularize gas lamps. | ||
Dissemination of gas to residential kitchens signicantly reduced the burdens of household duties associated with traditional cooking stoves.
Transitioning to natural gas was a | |
Introduction | long-term project that required |
huge up-front investment, but it | |
of LNG | |
resulted in improving the stability | |
of gas provision and reducing | |
environmental burdens, etc. |
Development of advanced products
By developing advanced devices | |
and systems that can contribute | |
to energy conservation and | |
reducing CO2 emissions, we will | |
work to reduce and eliminate | Residential fuel cell "ENE-FARM" |
carbon emissions alongside | |
(IoT-compatible function) | |
customers. | |
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Osaka Gas Co. Ltd. published this content on 23 October 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 22 October 2021 15:33:06 UTC.