Corporate Strategy
40 Tokyo Gas Group Integrated Report 2023
Introduction | Introduction | ||
Contents | |||
CEO's | CEO's Message | ||
Message | |||
How | How We Create Value | ||
We | |||
The Value Creation Process | |||
CreateValue | Promoting Sustainability and Material issues | ||
Business | Business Strategy | ||
Compass2030 & Compass Action | |||
Compass Transformation 23-25 | |||
Strategy | Introduction of Internal Companies | ||
CFO's Message | |||
Corporate | Corporate Strategy | ||
Sustainability | |||
Responding to Climate Change | |||
Disclosure based on TCFD | |||
recommendations | |||
Strategy | Energy Security | ||
Human Capital Management | |||
Corporate Governance | |||
FinancialData | Financial Data | ||
Web Site | |||
Investor Relations Website | |||
Investors' Guide | |||
(Financial Data and Industry Data) | |||
Financial Results Presentation Materials | |||
Financial Results Bulletin | |||
Corporate Governance Report | |||
Sustainability Factbook |
Sustainability
Responding to Climate Change-Initiatives for a Decarbonized Society-
Introduction | Introduction |
Contents | |
As a group of energy companies that supports society, the Tokyo Gas Group will realize a decarbonized society without compromising stable supply from the present to the medium to long term, even amid uncertainties surrounding energy such as geopolitical risks.
First in this transition period, we will make sophisticated use of natural gas, which has the lowest CO2 emissions among fossil fuels, in various forms, and steadily reduce CO2 emissions of society as a whole. At the same time, we will promote the use of renewable energy and actively develop technologies for the social implementation of new technologies such as e-methane, hydrogen, and bio-derived energy. We will promote these initiatives on the premise of stable supply, and realize a responsible transition. By 2030, we will achieve a CO2 reduction contribution of 17 mn tons.
In addition, beyond 2030, we will continue to contribute to reducing CO2 emissions of society as a whole by steadily increasing the amount of e-methane introduced and further expanding renewable energy, while aiming to achieve net-zero CO2 in 2050 for the Tokyo Gas Group's CO2 emissions (Scope 1, 2, 3). During this period, we will continue to make maximum use of our Group's energy infrastructure and effectively utilize diverse energy sources to optimize the operation of the entire energy system in terms of both supply and demand, thereby realizing a new model for stable supply.
Conceptual diagram of CO2 reduction contribution
(representative example) | |||||||||||||||
CO2 reduction contribution | |||||||||||||||
of | Total | ||||||||||||||
emissions | |||||||||||||||
emissions society | of society | ||||||||||||||
decrease | |||||||||||||||
Total | Corporate | ||||||||||||||
Corporate | emissions | ||||||||||||||
emissions | increase | ||||||||||||||
2022 | 2030 | 2050 | ||||||||||||
Sophisticated use | e-methane | e-methane | ||||||||||||
of natural gas | ||||||||||||||
2030 Target | ||||||||||||||
Fuel switching | CNL | 1%deployed | Hydrogen | |||||||||||
Renewable energy | ||||||||||||||
Highly efficient equipment, | Toward a | |||||||||||||
of 6 mn kW | Bio-derived energy | |||||||||||||
Smart energy network | decarbonized | |||||||||||||
society | ||||||||||||||
Decarbonization of gas and electricity | ||||||||||||||
Renewable energy | Renewable energy | |||||||||||||
solar , wind power | Offshore wind power | |||||||||||||
Transition | period | |||||||||||||
CO2 | emissions | CO2 reduction contribution results and | Breakdown of 2030 target of 17 mn tons | |||||||||||
targets (compared to FY2013) | Category | Major initiatives | ||||||||||||
2022 | 2025 | 2030 | ||||||||||||
25% Fuel switching | ||||||||||||||
Domestic | Low carbonization field | |||||||||||||
Domestic | 15% | High-efficiency equipment | ||||||||||||
and | Domestic | 65% | ||||||||||||
6.35 mn tons | overseas | 25% | Introduction of high-efficiency | |||||||||||
and | LNG-fired power generation | |||||||||||||
12 mn tons | overseas | |||||||||||||
Decarbonization field | 15% | Introduction of renewable energy | ||||||||||||
and new energy | ||||||||||||||
17 mn tons | 35% | 20% | Utilization of non-fossil fuel | |||||||||||
certificates | ||||||||||||||
Concept and calculation method of reduction effect (example) | p.48 |
Total CO2 emissions of society
Approximately 58 mn tons
(figures for FY2022 result)
Net-zero CO2
The Tokyo Gas Group's
CO2 emissions*1
(Scope 1, 2, 3)
Net-zero CO2 from our activities*2
2022 | 2030 | 2050 |
*1 Including the amount of absorption (CCUS and forests) and offsetting by carbon credits
*2 CO2 emissions from city gas production facilities, buildings we use, and corporate vehicles
CEO's | CEO's Message | ||
Message | |||
How | How We Create Value | ||
We | |||
The Value Creation Process | |||
Create Value | Promoting Sustainability and Material issues | ||
Business | Business Strategy | ||
Compass2030 & Compass Action | |||
Compass Transformation 23-25 | |||
Introduction of Internal Companies | |||
Strategy | |||
CFO's Message | |||
Corporate | Corporate Strategy | ||
Sustainability | |||
Responding to Climate Change | |||
Disclosure based on TCFD | |||
recommendations | |||
Energy Security | |||
Strategy | |||
Human Capital Management | |||
Corporate Governance | |||
Financial Data | Financial Data | ||
Web Site | |||
Investor Relations Website | |||
Investors' Guide | |||
(Financial Data and Industry Data) | |||
Financial Results Presentation Materials | |||
Financial Results Bulletin | |||
Corporate Governance Report |
41 Tokyo Gas Group Integrated Report 2023
Sustainability Factbook |
Specific initiatives Acceleration of the transition
Smart energy network
Kiyohara Industrial Park: Realizing significant energy and CO2 savings through business collaboration
The Kiyohara Industrial Park Smart Energy Project (Utsunomiya City, Tochigi Prefecture) is an example of Tokyo Gas Engineering Solutions Corporation building a smart energy network (an optimal energy system for each area utilizing ICT) in an existing industrial park. This unique energy network comprises a smart energy center that uses mainly gas cogeneration, as well as private power lines and steam lines, serving seven plants and offices at the park that are operated separately by three companies. This is designed to supply electricity and heat in a highly stable and environmentally friendly manner. This has resulted in approximately 20% energy and CO2*1 savings, which would be difficult to achieve at individual business sites. The project represents Japan's first "integrated energy-saving business serving multiple plants" to supply electricity and heat to multiple businesses of different sectors in an inland-type industrial park, and has been certified by the Minister of Economy, Trade and Industry under its Certification System for Collaborative Energy Saving Plans*2. The initiative was also awarded the Chairperson's Prize for Cogeneration in FY2020, the METI Minister's Prize for Energy Conservation in FY2021, and the METI Minister's Prize for the Global Environment in FY2023. Going forward, we will continue to work on initiatives in collaboration with each company toward further energy conservation and CO2 reduction.
*1 Reduction rate of electricity and heat sent from the Smart Energy Center (compared to FY2015, measured in 2020). Crude oil equivalent approx. 11,500kL/year, CO2 reduction of approximately 23,000t/year
*2 A system under which, when multiple business operators are collaborating to implement energy-saving initiatives, the amount of energy saved through the collaboration can be distributed among the business operators in their regular reports under the Act on the Rational Use of Energy (Energy Conservation Act).
42 Tokyo Gas Group Integrated Report 2023
Fuel switching
Niihama LNG terminal: Promotion of carbon neutrality and stable supply of energy
NIIHAMA LNG Co., Ltd., which Tokyo Gas Engineering Solutions Corporation established jointly with Shikoku Electric Power Company, Inc., Sumitomo Chemical Co., Ltd., Sumitomo Joint Electric Power Co., Ltd., and Shikokugas Co. Ltd., completed construction of the Niihama LNG terminal and started gas supply in March 2022. By supplying natural gas to Sumitomo Chemical Ehime Works, and Sumitomo Joint Electric Power's Niihama Kita Thermal Power Plant, we expect to reduce CO2 emissions by 650,000 tons per year in the future by switching from coal, LPG, and heavy oil. We also supply gas to nearby customers to promote fuel conversion, reduce CO2 emissions in the surrounding areas, and contribute to the development of the Shikoku region.
Locations of
LNG terminals
Kagawa | |||
Prefecture | |||
Ehime | Tokushima | ||
Prefecture | Kochi | Prefecture | |
Prefecture
LNG tank (230,000 kl,
1 above-ground unit)
Equipment Manufacturing facilities overview (LNG vaporization facilities)
Truck shipping facilities
Receiving facilities for LNG carriers
Introduction | Introduction | ||
Contents | |||
CEO's | CEO's Message | ||
Message | |||
How | How We Create Value | ||
We | |||
The Value Creation Process | |||
CreateValue | Promoting Sustainability and Material issues | ||
Business | Business Strategy | ||
Compass2030 & Compass Action | |||
Compass Transformation 23-25 | |||
Strategy | Introduction of Internal Companies | ||
CFO's Message | |||
Corporate | Corporate Strategy | ||
Sustainability | |||
Responding to Climate Change | |||
Disclosure based on TCFD | |||
recommendations | |||
Strategy | Energy Security | ||
Human Capital Management | |||
Corporate Governance | |||
FinancialData | Financial Data | ||
Web Site | |||
Investor Relations Website | |||
Investors' Guide | |||
(Financial Data and Industry Data) | |||
Financial Results Presentation Materials | |||
Financial Results Bulletin | |||
Corporate Governance Report | |||
Sustainability Factbook |
Specific initiatives Acceleration of the transition
Carbon-neutral LNG: To meet heat demand
Carbon-neutral LNG (CNL) is LNG for which the greenhouse gases emitted in the processes from natural gas exploration to combustion have been offset by carbon credits (carbon offsets) generated from environmental protection projects carried out in emerging countries and elsewhere. In addition to reducing greenhouse gases emissions on a global scale, these environmental conservation projects are also related to SDG goals, such as creating local jobs and protecting biodiversity, and the use of CNL will contribute to the realization of a sustainable society.
The Tokyo Gas Group recommends CNL to its customers to meet their heat demand in addition to promoting energy conservation and introducing renewable energy, and CNL is currently being used by more than 120 customers. As the rules for CO2 credits are currently in the process of being developed, our Group is working to ensure customer trust by
1 improving the quality and transparency of credits and 2 tightening operational procedures, including quantity control.
Voluntary carbon | Carbon-neutral | Carbon-neutral | Customers | |||||||||
credits | LNG | City gas | (use) | |||||||||
Acceptance | Manufacture | Supply | ||||||||||
Initiative to achieve Net-zero CO2 emissions from our activities
The Tokyo Gas Group has been working to reduce CO2 emissions from our activities by thoroughly conserving energy and introducing high-efficiency equipment. We will further accelerate these efforts to achieve net-zero CO2 emissions from our activities in FY2030 for buildings we use, city gas production facilities, and company vehicles.
Specifically, we will promote the use of non-fossil certificates for energy consumption, switch to carbon-neutral LNG, and introduce low-emission company vehicles (hybrids, fuel cells, EVs) as our main initiatives, while actively introducing products into our own facilities that the Tokyo Gas Group will plan to build up as businesses (off-site corporate power purchase agreements, EV-related services* ,etc).
In FY2022, we achieved 18% net-zero CO2 emissions from our activities (using FY2020 as the benchmark) by completing the net-zero conversion of our headquarters and offsetting electricity consumption by using non-fossil certificates (electricity) for other buildings we use as well as some city gas production facilities. Going forward, we will continue and expand our efforts, aiming for a 60% achievement rate for FY2025 through net-zero-related initiatives at city gas production facilities.
- EVrest (an EV charging service) and Charge Planner (an EV installation support service for corporations and local governments)
Implementation as of March 2023
Tokyo Gas headquarters
Introduction | Introduction |
Contents | |
CEO's | CEO's Message |
Message | |
How | How We Create Value |
We | |
The Value Creation Process | |
Create Value | Promoting Sustainability and Material issues |
Business | Business Strategy |
Compass2030 & Compass Action | |
Compass Transformation 23-25 | |
Introduction of Internal Companies | |
Strategy | |
CFO's Message | |
Corporate Strategy |
1 Mechanism for using high-quality voluntary carbon credits
Professional meeting body of top executives
2 Tightening of operations
Issuance of supply certificates to
Offsetting of CO2 emissions of electricity consumption by using non-fossil certificates (electricity), carbon-neutral city gas (gas), and J-Credits (heat from district heating and cooling)
Buildings,
Corporate | Sustainability |
Responding to Climate Change | |
Disclosure based on TCFD | |
recommendations | |
Energy Security | |
Human Capital Management |
Common among
projects
Our own risk assessment manual
After procuring credits
Reputation risk assessment in light of the manual Double-checking by domestic and international experts
After procuring
credits
Manual based monitoring
Communication with customers
customers (image at right)
Third-party verification to tighten operations Development
of gas industry management guidelines
etc.we use
Other buildings used by the company
Offsetting of CO2 emissions of electricity consumption in some buildings owned by Tokyo Gas Real Estate Co., Ltd. by using non- fossil fuel certificates (electricity)
Strategy | Corporate Governance |
Financial | Financial Data |
Carbon-neutral | 122 | CNL buyers alliance | 77 |
city gas consumers | members |
(As of April 30, 2023)
43 Tokyo Gas Group Integrated Report 2023
City gas | Hitachi LNG terminal |
Offsetting of CO2 emissions of electricity | |
production | |
consumption by using non-fossil fuel | |
facilities | |
certificates (electricity) | |
Hamamatsucho headquarters building
Data | ||
Web Site | ||
Investor Relations Website | ||
Investors' Guide | ||
(Financial Data and Industry Data) | ||
Financial Results Presentation Materials | ||
Financial Results Bulletin | ||
Corporate Governance Report | ||
Sustainability Factbook |
Specific initiatives Innovation for a decarbonized society
Introduction | Introduction |
Contents | |
Electric power | Efforts toward commercialization of floating | p.29 | |
offshore wind power generation business | |||
Gas Aiming for urban decarbonization with e-methane
The Tokyo Gas Group is accelerating Initiatives for the practical application of e-methane, a carbon-neutral gaseous energy. e-methane is produced by methanation, a technique for synthesizing methane which is the main component of city gas, through a chemical reaction between the raw materials hydrogen and CO2. In the production of e-methane, CO2 recovered from exhaust gases is reused as a raw material, so even if CO2 is emitted during combustion, there is substantially no increase in atmospheric CO2. In addition, we plan to manufacture hydrogen, another raw material, using renewable energy, so e-methane can be said to be a carbon-neutral energy.
CO2 emission reduction effect of e-methane
Hydrogen | e-methane | |||||
CH4 | ||||||
Hydrogen production | H2 | |||||
CH4 | ||||||
from renewable energy | ||||||
sources | ||||||
Use of city gas | ||||||
Methanation | ||||||
Emitted and | Atmospheric CO2 does not increase | Re-emitted | ||||
recovered | because it is recovered and reused. | during use | ||||
CO2 emissions from | CO2 | CO2 | ||||
power plants |
CEO's | CEO's Message |
Message | |
How | How We Create Value |
We | |
The Value Creation Process | |
CreateValue | Promoting Sustainability and Material issues |
e-methane has the following values: 1 decarbonization in the heat sector, 2 reduction of social costs through the thorough utilization of existing infrastructure, 3 improvement of energy security through reduction of country risk, and 4 overseas expansion of Japan's unique technologies.
Value provided by e-methane
Value | Decarbonization | Contribution to the realization |
1 | in the heat | of carbon-neutrality in Japan |
sector | ||
Value | Reduction | Reduction of the burden |
of additional | ||
2 | on the public (customers) | |
social costs | ||
Value | Improved energy | Reduction of |
3 | security | country risk |
Overseas | Toward global | |
Value | expansion | |
4 | of Japanese | carbon-neutrality |
technologies | ||
Business Strategy |
Business Strategy
Compass2030 & Compass Action
Compass Transformation 23-25
Introduction of Internal Companies
CFO's Message
Corporate Strategy
Sustainability
Roadmap for social implementation
In 2022, the Tokyo Gas Group started a domestic demonstration using the Sabatier reaction, an existing methanation technology, for the social implementation of e-methane.
We aim to establish a large-scale overseas production and supply chain by FY2030 and introduce e-methane for 1% of our Group's domestic city gas demand (approx. 80 mn m3), and we are currently promoting specific projects.
At the same time, we are working to improve efficiency and reduce costs through the development of innovative methanation technologies utilizing the Green Innovation Fund project.
Establishment of technology Scale up Social implementation
2021 | 22 | 23 | 24 | 25 | 26 | 27 | 28 | 29 | 30 | 31 | 32 | 33 | ||||||||||||||||||||||||||||||
Selection and evaluation | Innovative technology prototypes | |||||||||||||||||||||||||||||||||||||||||
of innovative technologies | ||||||||||||||||||||||||||||||||||||||||||
Innovative technology: Hybrid Sabatier, PEMCO2 | ||||||||||||||||||||||||||||||||||||||||||
In-house demonstration | ||||||||||||||||||||||||||||||||||||||||||
Approx. | ||||||||||||||||||||||||||||||||||||||||||
Construction | Domestic | small-scale demonstration | Innovative | technologies | ||||||||||||||||||||||||||||||||||||||
50,000 | Small-scale demonstration | |||||||||||||||||||||||||||||||||||||||||
m3/year | ||||||||||||||||||||||||||||||||||||||||||
Suitable site selection | FS | FEED | FID Construction | Approx. | Domestic regional | cooperation | Innovative technologies | |||||||||||||||||||||||||||||||||||
1.6 mn | ||||||||||||||||||||||||||||||||||||||||||
and on-site use | Application | |||||||||||||||||||||||||||||||||||||||||
m3/year | ||||||||||||||||||||||||||||||||||||||||||
1% deployed | Social | |||||||||||||||||||||||||||||||||||||||||
implementation | ||||||||||||||||||||||||||||||||||||||||||
Approx. | Construction of | large-scale | ||||||||||||||||||||||||||||||||||||||||
Suitable site selection FS | FEED FID Construction | |||||||||||||||||||||||||||||||||||||||||
80 mn | overseas production and | |||||||||||||||||||||||||||||||||||||||||
m3/year | supply chains | |||||||||||||||||||||||||||||||||||||||||
Corporate Strategy | |
Domestic | |
Financial | |
Data | |
Overseas | |
Responding to Climate Change Disclosure based on TCFD recommendations
Energy Security
Human Capital Management Corporate Governance
Financial Data
Web Site
Investor Relations Website
Investors' Guide
44 Tokyo Gas Group Integrated Report 2023
(Financial Data and Industry Data)
Financial Results Presentation Materials
Financial Results Bulletin
Corporate Governance Report
Sustainability Factbook
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Tokyo Gas Co. Ltd. published this content on 31 August 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 05 September 2023 07:39:04 UTC.