29 Daigas Group's Co-creation of Value
Ⅰ . Co-create Value for a Sustainable Future
Achieving a Low Carbon /
Carbon Neutral Society
As our contribution to achieving a low carbon / carbon neutral society, we strive to become |
Getting to Know | Daigas Group's | Business Report | ESG Highlights | Corporate Governance | Financial Section | 30 | |||||||||
the Daigas Group | Co-creation of Value | ||||||||||||||
Key initiatives Implement carbon neutral measures, provide clean energy and expand renewable energy value chain, promote advanced utilization of natural gas and environmental products
Road map to carbon neutrality
We aim to achieve our carbon neutrality goal through our ongoing initiatives including methanation R&D and renewable power generation capacity development and other activities as shown in the road map below.
* subject to reviews in accordance with government | 2030 | 2040 | 2050 |
policy changes and technological advancement | |||
* including utilization of imported carbon-neutral LNG
What We | carbon neutral by 2050 through decarbonization of our gas and electricity and through |
Aim to Be | |
contribution to the reduction of CO2 | emissions. |
Aiming to Become Carbon Neutral by 2050
The Daigas Group aims to become carbon neutral by 2050. We plan to reach the goal through decarbonization of our gas and electricity by introducing methanation to generate gas with renewable energy and hydrogen and by increasing the share of renewables in its power generation portfolio. In the meantime, the Daigas Group set the following targets for 2030 as the milestones for the Group's contribution to the
gas energy | utilization | Methanation | Procurement | |
Decarbonizationof | Hydrogen | |||
Hydrogen | ||||
utilization | ||||
SOEC co-electrolysis*1 | Lab-scale research | Scaling up | |
basic research | |||
Demonstration at | Enhancing efciency | ||
Expo 2025 | (verication) | ||
Promoting carbon recycling | Technical study, site investigation, | Commercialization | |
Building global supply chain | system creation | ||
Developing new technology for hydrogen generation, | Resolving transportation issues | ||
including chemical looping combustion technology*2, etc. |
Resolving procurement and technical issues
Commercialization
Commercialization
Utilization in local network
reduction of CO2 emissions throughout society.
2020 | 2023 | 2030 | 2050 |
Striving to become carbon neutral in our group business through innovation | Carbon Neutral |
- Develop technologies, such as methanation for decarbonization of city gas.
- Commercializing methanation technology in 2030 (injecting the carbon-free gas into the city gas pipeline network)
- Decarbonizing electricity mainly by introducing renewable energy.
Contributing to the reduction of CO2 emissions throughout society
Biogas | |
of | |
Renewable | |
generation | |
power generation | |
Thermal | |
power | |
power generation | |
Decarbonization | |
Fuel cell | |
Low- | |
Advanced utilization | |
carbonization | of natural gas and |
CHP | |
On-site utilization | Commercialization | |
in domestic/global scale | in domestic/global scale | |
5 GW development contribution | Increasing | |
50% of power source portfolio | renewables | |
Examining and verifying carbon neutral fuel | ||
utilization technology; Participation in CCUS | Partial roll-out | Full roll-out |
experiments for verication (consortium, etc.) | ||
Enhancing efciency | Building VPP, utilizing renewables as | |
and downsizing | balancing energy source, enhancing resilience | |
Converting fuel from | Utilizing CHP in area energy network, | |
coal to natural gas | building micro grid, enhancing resilience |
*1 Please see page 31 for details. *2 Please see page 58 for details.
- Making as much contribution as possible to the reduction of CO2 emissions while decarbonization technologies being developed
- Promoting advanced utilization of natural gas, wider use and expansion of LNG overseas, and development of renewable energy
(FY2031.3 Targets) | 5GW |
Renewables development contribution on a global basis |
Renewables development contribution on a global basis
Osaka Gas will proceed with developing and holding power | As of March 31, 2021, the Daigas Group had contributed |
sources, and expanding its electric power procurement | a total of approximately 1.05 GW to the development of |
efforts, aiming for our further target of 5 GW renewables | renewables in Japan and overseas. |
development contribution by FY2031.3. | |
■ Renewables development contribution*1 | ■ Targets for Medium-Term Management Plan 2023 |
Renewables in our power portfolio in Japan | Nearly 50% | |||
CO2 emissions reduction contribution | 10million tons | |||
International 0.105 GW
As of March 31,
2021
1.046 GW*2
As of March 31, | As of March 31, | As of March 31, 2031 | |
2021 | 2024 | ||
Domestic | |||
0.941 GW | |||
(Of which, | 1.05 GW | 2.5 GW | 5 GW |
procurement: | |||
0.303 GW) |
*1 Including power projects which are eligible for the feed-in tariff (FIT) scheme
*2 Including power projects under construction
and for which decisions have been made
Strengths of the Daigas Group
Know-how of developing and operating renewable | Experience in procuring competitively priced LNG |
power sources | and developing shale gas |
Expertise of fuel conversion to natural gas for in-house | Accumulated knowledge of methanation technology |
power generators and heat consuming facilities | |
CO2 emissions reduction contribution
Several initiatives have been taken from FY2018.3 to FY2021.3. | a fuel in both Japan and abroad. These efforts have resulted in |
These include cryogenic power generation at our LNG | a total of approximately 5.60 million tons in CO2 emissions |
terminals, the introduction of renewable energy sources in | reduction contribution. |
Japan and high-efficiency thermal power generation in both | We aim to contribute to the reduction of CO2 emissions |
Japan and abroad, the introduction of fuel cells and gas- | by 10 million tons* in FY2031.3. |
powered air conditioning and high-efficiencyhot-water heaters | * Reduction in CO2 emissions by society and customers (compared with |
at customer sites, and conversion to the use of natural gas as | |
FY2017.3) |
31 Daigas Group's Co-creation of Value
Ⅰ . Co-create Value for a Sustainable Future
Achieving a Low Carbon / Carbon Neutral Society
We will utilize the technical capabilities and business expertise that we have developed as a group over many years to create value together with our various stakeholders, and thereby achieve a low carbon / carbon neutral society.
Succeeded in prototyping a new type of SOEC, a key technology to realize "Innovative Methanation," which contributes to decarbonization of city gas
Getting to Know | Daigas Group's | Business Report | ESG Highlights | Corporate Governance | Financial Section | 32 | |||||||
the Daigas Group | Co-creation of Value | ||||||||||||
Daigas×Stakeholders
Working with various stakeholders to contribute to the development of renewables
We have been conducting basic research on highly efficient and innovative methanation*1 technology, a promising technology for the decarbonization of city gas, and have succeeded for the first time in Japan in prototyping a practical-sized cell used for a new type of SOEC*2, which is the key to realizing this technology. We believe that this technology will have potential uses not just for the decarbonization of city gas, but also for the efficient manufacturing of carbon neutral fuels such as hydrogen and synthetic liquid fuels, and other substances. Accordingly, we will
accelerate our research and development efforts through industry-government-academia collaboration, and alliances with various business partners, as we aim to establish this technology around 2030.
*1 Methanation is a technology using hydrogen (H2) and carbon dioxide (CO2), instead of natural gas, to generate methane.
*2 Solid Oxide Electrolysis Cell: An electrolysis element that uses solid oxides. Electrolysis is performed on steam and CO2 at high temperatures.
In FY2021.3, we endeavored to contribute to the development of renewables by collaborating with various stakeholders. In terms of developing power sources, we acquired a solar power plant by investing in D&D Solar GK, which was established to hold solar power asset, together with Development Bank of Japan Inc. Additionally, we also focused on developing various power sources, including joint
■ Development of renewables (main projects since 2020)
Shiribetsu Wind Power Plant
investment in an onshore wind power project and participation in a biomass power project.
With regard to procuring electric power, we entered into a bilateral contract with West Holdings Corporation for the long-term procurement of electricity generated at thousands of small-scale solar power facilities to be developed by West HD in FY2022.3.
Conventional methanation with "water electrolysis / Sabatier reaction technology"
Conversion |
efciency |
Owing to the nature of the reaction, the heat
- Wind power
- Facility: 27 MW
- Operation launch: September 2021 (Participated in March 2018)
Heat loss | Heat loss | 55~60% |
Exothermic reaction | Exothermic reaction |
Renewable | 4H2O+ | Hydrogen | |||
electric power | CO2+4H2 | ||||
H2 | Methane | ||||
Electric power | |||||
→CH4+2H2O | |||||
→4H2+2O2 | CH4 | ||||
O | +Exothermic heat | ||||
2 | +Exothermic heat | CO2 | |||
H | |||||
Water | Sabatier | ||||
electrolysis equipment | reaction equipment | ||||
Methanation reuses CO2 emitted from factories, etc. CO2 is also emitted when | |||||
customers burn city gas created with methanation, but these CO2 emissions are | |||||
offset by the equivalent utilized CO2 when producing the gas. |
generated when producing hydrogen and methane with conventional methods of methanation is wasted. As a result, the energy conversion efciency from electric power to methane is limited to around 55-60%.
(Under construction) Noheji Mutsu Bay Wind Farm
- Wind power
- Facility: 40 MW
- Stake: 39%
- Operation launch: Scheduled in April 2022
Komatsu Solar Power Plant
- Solar power
- Facility: 13 MW
- Stake: 20%
- Operation launch: May 2018 (Participated in June 2021)
(Under construction)
Hirohata Biomass Power Plant
- Biomass (imported wood chips, domestically
produced wood chips, palm kernel shell (PKS)) ● Facility: 75 MW
Misawa Solar Power Plant
- Solar power
● Facility: 10 MW
- Stake: 20%
● Operation launch: February 2017 (Participated in July 2021)
Shizukuishi Solar Power Plant
- Solar power
● Facility: 25 MW
- Stake: 20%
- Operation launch: October 2016 (Participated in June 2021)
Isoharacho Extra High Voltage Power Plant in Kitaibaraki, Ibaraki
● Solar power
- Facility: 35 MW
- Stake: 50%
- Operation launch: January 2021 (Participated in February 2021)
Innovative Methanation "SOEC Methanation Technology"
Effective utilization | Conversion |
of waste heat | |
efciency is |
SOEC methanation uses a system where the SOEC
- Stake: 90%
● Operation launch: Scheduled in August 2023
Haru Mito Solar Power Plant
- Solar power
● Facility: 9 MW
● Stake: 20%
- Operation launch: May 2015 (Participated in June 2021)
Endothermic | Exothermic | |||||||||||||||||||||||||
expected to be | ||||||||||||||||||||||||||
reaction | reaction | |||||||||||||||||||||||||
Highly efcient | 85~90% | |||||||||||||||||||||||||
2O2 | ||||||||||||||||||||||||||
electrolysis at | ||||||||||||||||||||||||||
high temperatures | ||||||||||||||||||||||||||
Renewable ener | gy | e | − | |||||||||||||||||||||||
4O2− | Hydrogen | CO+3H2 | ||||||||||||||||||||||||
H | 2 | + | Methane | |||||||||||||||||||||||
H2O | Vaporization | →CH4+H2O | ||||||||||||||||||||||||
CH4 | ||||||||||||||||||||||||||
heat | CO | |||||||||||||||||||||||||
CO2+3H2O | +Exothermicheat | |||||||||||||||||||||||||
CO+3H2 | ||||||||||||||||||||||||||
CO2 | SOEC | Methanation | ||||||||||||||||||||||||
electrolysis equipment | reaction equipment | |||||||||||||||||||||||||
CO2 is also emitted when customers burn city gas created with methanation, but | ||||||||||||||||||||||||||
these CO2 emissions are offset by the equivalent utilized CO2 when producing | ||||||||||||||||||||||||||
the gas. | ||||||||||||||||||||||||||
electrolysis equipment itself performs highly efcient electrolysis, and the heat generated by the methanation reaction equipment is effectively reused. As a result, it is expected to achieve energy conversion efciency of around 85-90%.
Kuwaharajou Mega Solar (No.4)
- Solar power
- Facility: 12 MW
- Stake: 50%
- Operation launch: April 2020
(Under construction)
Tokushima Tsuda Biomass Power Plant
- Biomass (palm kernel shell (PKS), wood pellets)
- Facility: 75 MW
- Stake: 33.5%
- Operation launch: Scheduled in March 2023
(Under construction) Hyuga Biomass Power Plant
- Biomass (imported wood pellets, domestically produced wood chips, etc.)
- Facility: 50 MW
- Stake: 35%
- Operation launch: Scheduled in November 2024
●Biomass
Ichihara Biomass Power Plant
- Biomass (palm kernel shell (PKS), wood pellets)
- Facility: 50 MW
- Stake: 39%
- Operation launch: December 2020
(Under construction) Sodegaura Biomass Power Plant
- Biomass (wood pellets)
- Facility: 75 MW
- Stake: 100%
- Operation launch: Scheduled in July 2022
(Under construction) Tahara Biomass Power Plant
- Biomass (wood pellets)
- Facility: 75 MW
- Stake: 25%
- Operation launch: Scheduled in October 2024
Green Power Fuel
Procurement and sales of domestic wood for power generation
- Stake: 55%
- Business launch: Scheduled in the second half of 2022
●Solar power ●Wind power ●Fuel procurement and sales
33 Daigas Group's Co-creation of Value
Ⅰ . Co-create Value for a Sustainable Future
Getting to Know | Daigas Group's | Business Report | ESG Highlights | Corporate Governance | Financial Section | 34 | |||||||
the Daigas Group | Co-creation of Value | ||||||||||||
Scenario Analysis
Climate Change Initiatives
- Recognition of and Action on Risks and Opportunities -
Backgrounds and Concepts
The Daigas Group has been working on climate change scenario analysis that is intended to be utilized as reference material in the evaluation and preparation of countermeasures, and to understand the impact of climate change on the Group's business on a medium- and long-term basis.
Using this analysis method based on scenarios established by an external authority (IEA), we assessed the impacts on the performances of our energy businesses (gas, electricity and related businesses in Japan and overseas) which are expected to experience the greatest impact from climate change among the Group's businesses, for the purpose of acquiring suggestions related to relevant factors and measures for mitigating/tapping into the impact. We
assumed a multi-track scenario that takes into account the progress of energy conservation and changes in the composition of power sources, etc., as follows.
We will steadily implement initiatives to increase the resilience of the Daigas Group's businesses, while applying the suggestions gained from scenario analysis to our evaluation of medium- and long-term business strategies. Moreover, as the global response to climate change continues to progress, the scenario's preconditions may also change in the future. We will continue to deepen our scenario analysis, renewing our assumptions in line with the latest conditions as necessary, taking into account scenarios established by external authorities.
Tackling global climate change is positioned as one of the "Sustainable Development Goals (SDGs)" adopted by the United Nations. Since the Paris Agreement came into force in November 2016, initiatives are being undertaken around the world. In Japan as well, tackling climate change is becoming increasingly important as Prime Minister Suga declared Japan's aim to realize a carbon neutral society by the year 2050 in his general policy speech on October 26, 2020.
For the Daigas Group, which is engaged primarily in the energy business, climate change represents an important management challenge, and initiatives to reduce CO2 emissions are an extremely important mission. In January 2021, the Daigas Group established and announced the "Daigas Group Carbon Neutral Vision," indicating its vision of how it strives to become carbon neutral by 2050. In March 2021, the Daigas Group
announced the "Daigas Group Medium-Term Management Plan 2023 'Creating Value for a Sustainable Future'" to further promote activities toward a low carbon / carbon neutral society.
Osaka Gas supports the TCFD recommendations, and utilizes them as indicators to validate its climate change response.
We also participate in the TCFD Consortium*, where discussions take place on efforts toward information disclosure on responses to climate change based on the TCFD recommendations.
- Established on May 27, 2019, the consortium holds discussions led by private sectors on how companies can effectively disclose information on tackling climate change and how financial institutions can use the disclosed information to make appropriate investment decisions. From the government, the Ministry of Economy, Trade and Industry, the Financial Services Agency and the Ministry of the Environment also participate as observers in the consortium.
- Japan's Final Energy Consumption of Gas, Electricity, etc. under Each Scenario
■ Gas ■ Electricity ■ Coal, crude oil, etc.
Mtoe | |||||||||||
250 | |||||||||||
200 | |||||||||||
150 | |||||||||||
100 | |||||||||||
50 | |||||||||||
0 | |||||||||||
2020 | 2030 | 2040 | 2050 | 2020 | 2030 | 2040 | 2050 | 2020 | 2030 | 2040 | 2050 |
2℃ Scenario | 2℃ Original Scenario | 4℃ Scenario |
Climate Change Governance
The Daigas Group regards climate change response as a key management issue. The Board of Directors, which decides on and supervises the important business activities of the Group as a whole, is responsible for the decision-making and supervision of projects involving climate change issues. At the "ESG Council (Executive Board)," which meets three times per year, executives deliberate on plans and reports of activities concerning ESG challenges, including climate change issues, under the supervision of the President.
In addition, the Daigas Group has also established the "ESG Committee," chaired by the "Head of ESG Promotion" (Vice President), the officer overseeing Daigas Group
sustainability activities, and composed of the heads of related business units as its members. The "ESG Committee" is held four times per year to formulate and advance plans for business activities concerning climate change response, and engages in Group-wide deliberation, coordination and supervision of issues such as the achievement of targets, risk management and response. Of these, the "ESG Committee" proposes or reports important issues to the Board of Directors, such as performance against ESG management targets, and business plans that are anticipated to be significantly affected financially by climate change.
Measures necessary to achieve the Paris | Technology progresses signicantly, and | Reduction in the necessary volume of CO2 |
Agreement target of 2°C are implemented, and | a signicant reduction in CO2 emissions | emissions is limited, despite the |
a signicant reduction in CO2 emissions is | is achieved with only a moderate decline | implementation of new energy policies and |
achieved. Electricity demand decreases only | in energy demand. The current levels of | related plans. Both electricity and gas |
slightly, due to a rise in the electrication rate, | electricity and gas demand are | demand will increase slightly in Japan due |
despite a signicant decline in energy demand. | maintained. | to a moderate decline in energy demand. |
CO2 emissions reduction | CO2 emissions reduction | CO2 emissions reduction |
2017→2050 80%* | 2017→2050 80%* | 2017→2050 50%* |
* Proportional reduction in CO2 emissions achieved in FY2051.3 relative to FY2018.3
- Climate Change Governance Organization Chart
Board of Directors
Proposal and Report | Making Important Decisions; | |||
Supervision | ||||
Representative Director
and President
Submission and Report
Executive Board
(ESG Council)*
Report, etc.
ESG Committee
-
Board of Directors
10 Directors (6 Internal Directors and 4 Outside Directors) - Executive Board (ESG Council)
1 President and Executive Ofcer, 3 Vice Presidents (Executive Ofcers), and 6 Managing Executive Ofcers - In principle, it is held three times per year as "ESG Council."
-
ESG Committee
Vice President and Executive Ofcer (Head of ESG Promotion) and heads of related business units, etc.
Recognition of Risks and Opportunities
Using a multi-track scenario analysis, we pinpointed anticipated risks and opportunities based on the environment surrounding the Daigas Group's energy businesses in Japan and abroad, evaluated these risks and opportunities and examined countermeasures, in terms of both the short and medium term prospect until 2030 and the long term prospect until 2050.
The Group is engaged in gas and electricity businesses, primarily in the Kansai area, which use natural gas as their main raw material and fuel. The external environment is undergoing various changes due to climate change. We have classified the major factors associated with these changes
into "transition risks" and "physical risks," and identified the major risks and opportunities. Significant risks for the Group related to climate change include the possibility that rising sea levels and natural disasters such as typhoons and torrential rains due to localized abnormal weather events, etc. may cause damage to our manufacturing equipment. In addition, it is possible that our businesses may be affected by significant increases in the carbon tax rate in Japan, or an increased desire among our customers to switch to non-fossil fuels. However, promotion of the development of renewables and decarbonization technologies also represents a significant opportunity for the Group.
35 Daigas Group's Co-creation of Value
Getting to Know | Daigas Group's | Business Report | ESG Highlights | Corporate Governance | Financial Section | 36 | |||||||
the Daigas Group | Co-creation of Value | ||||||||||||
- Evaluation of Risks and Opportunities and the Daigas Group's Responses
Impact in the case of the 2℃ scenario | Risks and Opportunities | |||
and 2℃ original scenario | Short and Medium Term (~2030) | Long Term (~2050) | ||
Introduction of a carbon tax | Risk | Carbon tax burden on gas and | Increasing burden with rising carbon | |
Policy and | thermal power plants | tax rates | ||
legal | ||||
Support for mass introduction | Opportunity | Expansion of sales of electricity from | Reduction in costs of introducing renewable | |
of renewable energy sources | renewable energy sources | energy and expansion of sales | ||
Development of renewable | Opportunity | Sustained sales of electricity from gas | Expansion of sales by making gas | |
Technology | energy and CCUS | and thermal power plants | carbon neutral | |
Development of Al/IoT | Opportunity | Participation in decentralized power | Expansion of decentralized power | |
sources aggregation business | sources aggregation business | |||
Switch to non-fossil fuel | Risk | Fall in sales of gas and thermal power | Further fall in sales of gas and thermal power | |
energy | ||||
Market | ||||
Risk Management
When deciding on the Daigas Group's business plan and investment plan, the internal organizations responsible for the gas, electricity and other businesses analyze the risk factors and their impact on each business, distill and identify risks, and submit these together with other business risks, etc. to the Executive Board for deliberation. Climate change risks in the formulated plans are managed through a PDCA cycle, and are reported and followed up at the Environment Subcommittee, ESG Committee, and ESG Council (Executive Board). The PDCA (plan-do-check-act) cycle is used to manage such actions.
Decisions on climate-related risk and sustainability,
including investment decisions, are made by the Board of Directors and the Executive Board.
Matters related to climate change that were proposed or reported by March 31, 2021, included the following.
- Decision on the Medium-Term Management Plan, incorporating the Carbon Neutral Vision
- Recognition and disclosure of risks, opportunities and countermeasures related to climate change, based on scenario analysis
- Monitoring of the results for indicators used to manage climate change response, etc.
Switch to LNG | Opportunity | Increase in demand due to the switch to | Increase in demand for LNG abroad | |||||||||||||
LNG in Japan and abroad | ||||||||||||||||
Focus of investment criteria | Fall in capital procurement power in | Decline in investment in fossil | ||||||||||||||
Reputation | on low-carbon or | Risk | ||||||||||||||
gas-related businesses | fuels businesses | |||||||||||||||
decarbonized businesses | ||||||||||||||||
Financial impact: Small | Financial impact: Large | |||||||||||||||
The Daigas Group's Response | ||||||||||||||||
● Contribute to gas sales in Japan and abroad through fuel switching, etc. | ● Develop renewable energy power sources | ● Research, develop and verify | ||||||||||||||
● Promote the development and widespread use of high efciency, | ● Investigate and verify thermal power | methanation technology | ||||||||||||||
compact cogeneration systems and fuel cells | generation with CCUS technology | ● Consider expanding the use of | ||||||||||||||
● Verify and participate in the decentralized power sources aggregation | ● Examine the use of carbon neutral fuels | biogas | ||||||||||||||
business | ● Engage in dialogue with investors | |||||||||||||||
Impact in the case of the 4℃ scenario | Risks and Opportunities | |||||||||||||||
Short and Medium Term (~2030) | Long Term (~2050) | |||||||||||||||
Physical | More serious and frequent | Risk | Increase in capital investment costs and | Increase in facilities countermeasure costs | ||||||||||||
(acute) | meteorological disasters | insurance premiums | Lower competitiveness due to gas price hike | |||||||||||||
Policy and | Policies to heighten | Opportunity | Increase in demand for disaster response | Expansion of decentralized | ||||||||||||
legal | resilience | equipment | energy systems | |||||||||||||
Increase in prices due to greater | Further price hikes and impediments | |||||||||||||||
Movement to switch from | Risk | to procurement, due to increasing | ||||||||||||||
competition in LNG procurement | ||||||||||||||||
Market | competition in LNG procurement | |||||||||||||||
coal and crude oil to LNG | ||||||||||||||||
Opportunity | Increase in demand due to the switch to | Increase in LNG demand abroad | ||||||||||||||
LNG in Japan and abroad | ||||||||||||||||
Financial impact: Small | Financial impact: Large | |||||||||||||||
- Climate-relatedRisk Management Structure
Board of Directors
Reports on important management issues, including climate-related issues, each half year
Proposal and Report | Making Important Decisions; Supervision | |
Representative Director and President
Submission and Report
ESG Council (Executive Board) 3 4
Proposals and reports on important management issues, including climate-related issues
Corporate | Report, etc. | Report, | ||||||
Committees 3 4 | Coordination, | |||||||
Proposal ● ESG Committee | etc. | Environment | 1 3 4 | |||||
Subcommittee | ||||||||
● Investment Evaluation | ||||||||
Report, | ||||||||
Committee | ||||||||
Deliberation, | ||||||||
Coordination, Promotion, etc. | etc. | |||||||
Each organization and afliate of Osaka Gas | 1 | 2 | ||||||
External verication ( | 3 | ) | ||||||
Third-party verication of environmental performance data
- Plan formulation
- Risks and opportunities associated with climate change
- Response to cross-cutting environmental* issues
- Formulation of environmental strategy*
- Reection in activities of each organization
- Implementation/Operation
- Actions for each target
- Performance tracking for each indicator
- Checking
- Report and follow-up for each target and performance at the Environment Subcommittee, ESG Committee, and ESG Council (Executive Board)
- Third party verication of environmental performance data
- Review
- Issue identication
- Evaluation of countermeasures and improvements
The Daigas Group's Response | ||
● Diversify procurement sources | ● Implement disaster countermeasures for important buildings | ● Promote widespread use of disaster |
● Divide the supply areas into blocks | and facilities | response equipment |
and operate facilities remotely | ● Promote the development and widespread use of high | ● Contribute to gas sales through fuel |
efciency, compact cogeneration systems and fuel cells | switching, etc. |
* The intensity of the colors used for risks and opportunities indicates their degree of nancial impact (the 2℃ original scenario and 4℃ scenario have been used to calculate quantitative impact)
Initiatives Ensuring Resiliency for a Decarbonized Society
Indicators and Targets
The Daigas Group will proceed to contribute to radically reducing CO2 emissions and realizing a decarbonized society, through initiatives such as energy conservation, the advanced use of natural gas, and the widespread use of renewable energies.
Field | Item | Target | Target FY |
Climate Change | CO2 emissions across the Group | Zero effective CO2 | 2051.3 |
GHG emissions (Scopes 1, 2 and 3) | emissions | ||
CO2 emissions | Proportion of renewable energy sources in domestic | Nearly 50% | 2031.3 |
electric power business | |||
reductions from our | |||
own business activities | Contribution to more widespread use of renewable energy | 5 GW | 2031.3 |
Securing a stable supply of energy, a core social infrastructure, is one of the major climate change-driven challenges facing society as a whole. By continuing to provide a range of services, including multiple sources of clean energy such as gas and electricity utilizing decarbonization technologies, disaster response equipment, and the widespread and advanced use of energy, the Daigas Group will strive to contribute to society in terms of stable supply and
resilience for a decarbonized society.
In response to the growing global trend towards decarbonization, we will engage in activities to contribute to reducing CO2 emissions across society, promote the advanced use of gas, and advance initiatives to develop decarbonization technologies, aiming to balance business growth with the stability of the core social infrastructure.
CO2 emissions | ● Promote carbon reduction and decarbonization through more widespread use of | ||||
high efciency, high value-added equipment with natural gas, renewable energy, etc. | Each year | ||||
reductions at customer | ● Efcient operation of LNG tankers and expanded use of low emission vehicles, etc. | ||||
until | |||||
sites and through the | |||||
● Provide environmental value through the dissemination of high-quality solutions in | 2031.3 | ||||
value chain | |||||
the elds of information, real estate, and materials | |||||
Contribution to CO2 | Contribution to CO2 | emissions reduction (t-CO2) | 10 million tons | 2031.3 | |
emissions reductions | (Including reductions contributed at customer sites and | ||||
(relative to FY 2017.3) | |||||
across society | overseas) | ||||
37 Daigas Group's Co-creation of Value
Ⅰ . Co-create Value for a Sustainable Future
Establishing Lifestyles and Businesses Adjusted to the New Normal
Getting to Know | Daigas Group's | Business Report | ESG Highlights | Corporate Governance | Financial Section | 38 | |||||||
the Daigas Group | Co-creation of Value | ||||||||||||
Key Initiatives Maintain and Expand Customer Base, and Enhance Customer Relationship Management
DX for solutions in the era of new normal
What We | We globally provide services as optimal solutions to each customer's adjustment of their |
Aim to Be | lifestyles and businesses to the new normal. |
Provide solutions globally
Achieve 10 million customer accounts
Lifestyle | Business | |
Offer optimal customer experience | Provide work environment that increases | |
business efciency | ||
for each customer | ||
● Comfortable work environment with services of | ||
● Home services and energy that meet | ||
air conditioning and ventilation. | ||
increased and diversied customers' | ● Optimal control and operational efciency with | |
demand at home. | ||
digital technology and data utilization. | ||
One of the Daigas Group's strengths has been our network of in-person customer contact points based on our approximately 200 service chain partners across our supply area. By combining this real network with digital contact points, we aim to offer a customer experience of the highest quality through an omnichannel strategy, such as offering services at the most appropriate timing for our customers. As part of our efforts to achieve this target, in FY2022.3 we will launch the "Sumai LINK Platform (tentative name)," a life service platform that will enable customers of all generations to digitally access services offered by the Company and our partner companies.
We aim to increase the user base of devices such as the "ENE-FARM" residential fuel cell system in the "Tsunagaru de series" of IoT-compatible gas devices, the "ECO-JOZU" highly energy efficient water heater, and the "Sumapiko" alarm device to 300,000 units by FY2024.3. To that end, we will utilize the strengths of our group companies with unique technology in the digital sphere such as the OGIS-RI Group and Palette Cloud, Inc., while also utilizing the capabilities of the Daigas Group as a group, including coordination with partner companies such as Bitkey Inc. Additionally, we will take steps to grow earnings by offering the expertise we obtain in the course of the above measures to companies outside the Group.
Concept of Life Service Platform
(Scheduled for launch in FY2022.3)
Customers of | Customers of |
"My Osaka Gas" | Business Partners |
Offering one-stopservice with joint account and combinedbilling
"Sumai LINK Platform"(tentative name)
Products and services offered byus and our partners
Lifestyle support | E-commerce |
(housekeeping and health) | (daily necessities and foods) |
Target of IoT-connected gas appliances (residential)
Approx. 100 | Approx. 300 |
thousand units | thousand units |
End of FY2021.3 | FY2024.3 Forecast |
High value-added solutions | Urban development | Environmental solutions |
Lifestyle and businesses solutions in the era of the new normal
DigitizationInnovation
Strengths of the Daigas Group
Customer accounts and direct customer touch points | Various gas and electricity rate plans to meet |
different customer lifestyles | |
Technologies to develop appliances and facilities | Data assets accumulated through services and |
maintenance | |
The Daigas Group has focused on expanding its range of value-added rate plans and its services related to household affairs and residential facilities in a way that suits to customers' lifestyles and needs, such as through the Style Plans and With Plans. Looking ahead, we aim to quickly achieve our target of 10 million customer accounts prior to FY2031.3 by expanding services in new fields.
In our ESP (energy service provider) business, which we also aim to expand, we plan to provide onestop solutions for services better suited to the commercial and industrial customers in the age of the new normal, such as ventilation and air conditioning. For low carbon / carbon neutral needs,
Number of customer accounts
Approx. 9.4 million | 10 million |
End of FY2021.3 | Aim to achieve |
the target early | |
ESP target
Increase prot by approximately 50% (FY2021.3→FY2024.3)
we are offering solutions such as D-Solar service and fuel conversion to natural gas for in-house power generation and heat equipment.
In the Osaka Gas Chemicals Group, we will proceed with the establishment of systems for the development of new products of fine materials for the photoelectron materials market, while continuing to develop activated carbon and the wood preservative and coating agent "Xyladecor" as high- value-added products. Additionally, in the Osaka Gas Urban Development Group, we will promote advanced urban development, including the "Umekita" project near Osaka Station, which is linked to regional and real estate development initiatives on a group-wide basis. In housing development, the group continues increasing the ratio of properties in the Greater Tokyo area through Prime Estate Co., Ltd., its acquired company in Yokohama. Additionally, we have been making efforts to expand into new business domains such as logistics which has been growing in response to the expansion of e-commerce business due to the COVID-19 pandemic. In future, we will continue to create high-quality lifestyles and business environments for customers through real estate solutions that fulfill the needs of customers and society.
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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 15:33:08 UTC.