Receipt of Third-party Validation Report for Japan's First Carbon Neutral City Gas Plan[PDF : 378KB]

June 15, 2021

Receipt of Third-party Validation Report

for Japan's First Carbon Neutral City Gas Plan

Tokyo Gas Co ., Ltd

Tokyo Gas Co., Ltd. (President: UCHIDA Takashi; "Tokyo Gas") recently received a third - party validation report for its plan regarding carbon neutral city gas ("CN city gas") implemented in fiscal 2019 and 2020. The validation was performed based on international standards, in which the external organization concluded that the plan had been practiced appropriately in compliance with the calculation rules. Tokyo Gas became the first company in Japan to receive a third-party validation report for implementing a CN city gas plan.

CN city gas is a type of gas that is deemed to be carbon neutral on a global level even when combusted. Given that the world is moving towards decarbonization, CN city gas is attracting attention from customers who are interested in ESG management as a feasible measure for the heating field, in which decarbonization is difficult to achieve in the short term using current technology. The CN city gas plan of Tokyo Gas was examined through an objective assessment to further enhance customer trust in CN city gas.

[Third -party validation report for CN city gas plan]

The validation was performed by the Japan Quality Assurance Organization , a validation body for greenhouse gas (GHG) emissions in Japan as a third-party with reference to the recommendations of the GHG Protocol * 1 and specifications for the demonstration of carbon neutrality (PAS 2060:2010) * 2 in compliance with ISO 14064-3*3 and ISAE 3000* 4 standards.

Based the validation report, Tokyo Gas will issue a CN city gas supply certificate to its six client companies that used CN city gas in fiscal 2019 and 2020 .

[the CN city gas supply certificate to be issued by Tokyo Gas ]

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The Tokyo Gas Group has set forth its management vision Compass 2030 that aims to achieve net-zero CO 2 across all business operations, including emissions from customers . The Group, together with its customers, continues to undertake activities to reduce environmental impact at a global level by providing a variety of solutions, including CN city gas .

the CNL Logo

[CN city gas]

CN city gas uses a type of LNG whose greenhouse gas emissions in processes from drilling to combustion of natural gas are offset by CO 2 credits; thus, it is deemed to be carbon neutral on a global level even when combusted . Tokyo Gas commenced imports of the carbon neutral LNG in 2019 and became the first company in Japan to supply it to customers as CN city gas . The applied carbon credits involve the CO 2 reduction effects of environmental conservation projects around the world that have been certified by a highly reliable certifier .

* 1 : I n t e r n a t i o n a l l y r ec o g n i z e d s t a n d a r d s f o r c a lc u l a ti n g a n d r e p o r t i n g g r e e n h o u s e g a s em i s s i o n s

* 2 : P u b l is h e d s p e c i fi c at i o n s s t i p u l a t e d b y t h e B r i t is h S t a n d a r d s I n s ti t u t i o n

* 3 : S p e c if ic a t i o n s a n d g u i d e l i n e s t h a t l a y d o wn t h e r u l e s f o r v a l i d a t i o n a n d v e r i f ic a t i o n o f G H G c a lc u l a t i o ns s t i p u l a t e d b y t h e I n t e r n a t i on a l O r g a n i z a t i o n f o r St a n d a r d i z a t i o n ( I S O )

* 4 : St a n d a r d s s t i p u l a t e d by t h e I n t e r n a t i o n a l F e d e r a t i o n o f A c c o u n t a n ts , u s e d f o r a u d i t s o n o v e r a l l n o n - f i n a n c i a l i n f o rm a t i o n