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CSR Report 2004

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CSR Report 2004 Environmental and Social Action Report 2004 For the year ended March 31, 2004 Environmental and Social Action of Osaka Gas Group Corporate profile 2 Osaka Gas Group’s business operations Message from the President 5 TOPICS Osaka Gas Group aims “the sustainable development” 6 p.8 Message from the Executive Vice President 7 Established Group-wide Osaka Gas Group’s environmental and social action philosophy 8 Environmental and Social Action Philosophy Environmental management system 9 Environmental management indicators 11 Environmental accounting 13 Medium-term environmental targets and results in FY2003 15 p.9 Environmental impacts of our gas supply business in FY2003 17 -10 Formulated Osaka Gas Reducing environmental impacts from our Group Environmental business activities Management Promotion 2003-2004 Environmental action highlights New 19 Plan Emission control of greenhouse gases and nitrogen oxides (NOx) 21 Reducing resource consumption and promoting recycled resource use 24 Environmental Action Environmental Promoting green purchasing/procurement and green distribution 27 p.11 Control of chemical substances 28 -12 Control of wastewater 28 Results of Incorporating Soil and ground water conservation 29 Environmental Environmental training and education of employees 30 Management Indicators Efforts of affiliated companies Upgraded 31 into the Performance Contributing to environmental impact reduction Evaluation with our products and services 2003-2004 Environmental action highlights New 33 p.38 Contribution to environmental impact reduction at customer sites 35 ECOWILL received Promotion of the use of energy-saving systems and equipments 36 the Energy Conservation Promoting natural gas vehicles 40 Grand Prix Award Promotion of resource recycling 41 Eco designing 41 Efforts of affiliated companies Upgraded 42 Contributing to environmental conservation p.36 locally, nationally and overseas -39 Good Progress in the 2003-2004 Environmental action highlights New 45 Development of Activities overseas 46 Energy-efficient Development of new technologies other than gas appliances and systems 47 Equipment 2003-2004 Social action highlights New 49 To become a company of choice for customers, 50 shareholders, and local community Compliance/Enhancement of in-house auditing functions for risk p.56 management/ protection of customer information, etc. Reception of the Prize Social Action Safe and stable gas supply 51 for Excellence in the Establishing a stable LNG supply system/Actions for higher levels of Environmental Reporting safety/Hello service Awards Contributing to local communities as a good 53 corporate citizen Community activities/Everyones’ environmental effort campaign Communication with stakeholders 56 Information disclosure/Making the most of facilities and opportunities Employee satisfaction at work 57 Personnel system aiming for personal growth/Human resources development/Human rights awareness/Ensuring a good balance between work and family/Employment/Safety and health www Visit our website Third Party Review 60 More details about the contents of this report, Third-Party Opinions Expressed by Six Experts 61 data, etc. are available on our web site Our response to suggestions and opinions/Evaluation results of the 63 http://www.osakagas.co.jp/kankyo_e/ envirnmental management rating History of environmental activities 64 New Comparative table with MoE Guidelines New 64 Newly added items Editor’s postscript 64 Upgraded Significantly enriched items 1 Corporate Profile Osaka Gas Gro up’s Business Operations (as of March 31, 2004) Head office 4-1-2, Hiranomachi, Chuo-ku, Osaka 541-0046, Japan Capital 132,166 million yen Major business fields 1. Manufacture, delivery and sale of gas Osaka Gas Nissho Petroleum Gas OG Capital Group 2. Sale of gas appliances and works incidental to sale of gas appliances Gas Operations, Power Osaka Gas Chemicals Group 3. Installation of housepipes LPG Engineering/ Business, District Heating (Liquefied Petroleum Gas) Coke/Chemicals/ Number of customers 6,634,000 (Number of gas meters installed) and Cooling Business, Carbon Fibers Residential Services 3 3 Amount of gas sold 7,766 million m (FY2003) Note: Equivalent to 45 MJ/m International Business, etc. Number of employees 7,081 (Including associate directors and part-time employees and excluding those loaned to group companies and others) Listed exchange market Tokyo, Osaka, Nagoya OGIS Research Net Sales Capital Investment and Number of Employees Institute Group (Non-consolidated) (billion yen) (billion yen) (Employees) Information 973.5 100 9,569 9,264 10,000 1,000 951.9 947.9 951.3 8,810 Communication 849.2 7,946 Business 800 80 78.7 7,081 8,000 68.5 65.0 600 60 6,000 48.3 47.0 400 40 4,000 Energy Business Non-Energy Business 695.1 754.1 751.0 722.2 729.9 Multiple Energy Supply beyond Growth and Development of 5 Business Area 200 20 2,000 Kansai Area 0 0 0 1999 2000 2001 2002 2003 (FY) 1999 2000 2001 2002 2003 (FY) Consolidated Non-consolidated Equipment investment Number of employees Note: Including employees being loaned to other companies before FY2000. Ordinary Profit and Net Profit Amount of Gas Sold and Total Length of Gas Pipeline (billion yen) 81.4 (1,000 km) (million m3 ) 80 75.9 80 7,766 8,000 7,326 7,580 7,479 7,687 63.8 65.0 60 60 55.3 6,000 52.8 53.5 54.1 54.6 Urbanex Group 45.6 70.3 54.1 47.0 53.9 39.4 64.3 Urban Development 40 36.0 40 4,000 39.4 29.6 27.3 Liquid Gas Group Kinrei 20 20 2,000 24.5 32.9 37.6 25.4 39.4 Industrial Gas/Fuel Gas Business Food/Restaurant 0 0 0 1999 2000 2001 2002 2003 (FY) 1999 2000 2001 2002 2003 (FY) Consolidated Ordinary profit Net profit Non-consolidated Total length of gas pipelines Amount of gas sold Non-consolidated Ordinary profit Net profit Note: Equivalent to 45 MJ/m3 Osaka Gas Group (Osaka Gas Co., Ltd., Subsidiaries and Affiliates) INNOVATION CENTENNIAL, organization chart ( Energy Business Non-Energy Business) FY2003-2005 Medium-Term Management Plans Osaka Gas Service Area The Osaka Gas Group is shifting from a conventional energy business that Shareholder’s Corporate Auditors/ focuses mainly on local gas services to a wide-ranging, diversified business. Meeting Board of Restructuring of the Osaka Gas Group Keiji Headquarters Kinki Corporate Auditors We are also working to boost competitiveness and profitability of our non- (KRP Gas Building) Osaka Gas with its five regional business headquarters was Trunkline energy businesses centered around our core companies. Osaka Headquarters - Shiga Line Board of Corporate restructured in April 2003. The new structure now has five Ohtsu Line We are undergoing four major management shifts. Kinki Trunkline - No.2 West Line (Dome City Gas Building) Directors Auditors Office business units covering the company’s natural gas value chain: Kinki Trunkline - No.3 West Line Energy Resources, LNG Terminal and Power Generation, Pipeline, A shift from a focus on business in the Kansai region to business in a broader area Residential Energy, and Commercial and Industrial Energy. At outside the region. Shiga Headquarters Chairman/President/ Kinki Executive Vice President Group Head Office, we reorganized the functions into five A shift from Osaka Gas dominant management to consolidated management of Hokubu Trunkline support/shared divisions. The Affiliated companies have also been affiliates with core companies. Headquarters - Keiji Line Shigahigashi reorganized from 10 fields (G10) into eight fields (G8), with a core A shift from a vertically integrated business model from raw materials procurement to Kinki Trunkline Himeji Headquarters Sales Office - Himeji Line (Himeji Gas Building) Keihan Executive Board company in each respective field. retail sales, to value chain unit business model with five business units aimed at Head Office Headquarters Lake Biwa improving the competitiveness and profitability. Hyogo Headquarters Osaka Gas Himeji LNG Terminal (Kobe Gas Building) ()Building From business focusing on gas to a multiple energy business that includes electricity Nara and LPG. Headquarters Tobu Headquarters (Port Island Office) Kinki Trunkline - Bay Line Osaka Gas Co., Ltd. Osaka Gas Co., Ltd. Osaka Gas Group Kinki Trunkline - No.1 East Line Head Office G1 Business Units, Subsidiaries and Affiliates Core Companies, Subsidiaries and Affiliates Senboku LNG Terminal II Kinki Trunkline - No.2 East Line 50 companies 74 companies Nanbu Headquarters Strategy & Finance Div. Energy Resources B.U. 8 companies G2 Liquid Gas Co., Ltd. 14 companies (Sakai Gas Building) Explanatory note LNG Terminal and Power Generation B.U. G3 Nissho Petroleum Gas Corp. 18 companies Communication & HR Div. Major Trunkline (existing pipeline) Senboku LNG Terminal I Pipeline B.U. 5 companies G4 Urbanex, Inc. 10 companies Major Trunkline (planned. under) Administration & Residential Energy B.U. 16 companies G5 Kinrei Corporation 1 company Major Pipeline (existing pipeline) General Affairs Div. Major Pipeline (planned. under) Technology Div. Commercial & Industrial Energy B.U. 17 companies G6 OGIS Research Institute Co., Ltd. 5 companies Headquarters, Office, etc Wakayama Headquarters Group’s Head Office 4 companies G7 Osaka Gas Chemicals Co., Ltd. 7 companies Research Center (Wakayama Gas Building) Tokyo Div. LNG Terminal (As of July 1, 2004) G8 OG Capital Co., Ltd. 19 companies 2 3 Scope of the Report Management Message “Gas Business” As Used in This Report Environmental Action Report The Osaka Gas Group consists of Osaka Gas Co., Ltd. and its Report based on gas business operations of Osaka Gas 120 subsidiaries and affiliated companies (as of the end of March Co., Ltd. 2004). These companies operate in two fields, namely, the energy The environmental action report contained in this report pertains business and the non-energy business. mainly to the gas business of Osaka Gas. Actions of affiliated The “gas business” as used in this booklet refers to the three companies are discussed on separate pages (pp. 31, 32, 42-44). major operations of Osaka Gas: 1. Manufacture, delivery and sale In the report, “Osaka Gas” refers to the core gas business while Management Environmental of gas, 2.
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