Stable Supply

The Pursuit of Safety

Provision of Better Products and Services

Basic Policy on Environmental Protection

and Targets

Global Warming Countermeasures —

Toward the Realization of a Low Carbon

Society

Promotion of Resource Saving — Toward

the Creation of Resource­Saving Society

Promotion of Biodiversity Conservation —

Toward Developing a Society that Coexists

with Nature

Promotion of Environmental Technologies

Development

Tokyo Gas Group Business Activities and

Material Balance

Third­Party Independent Assurance Report

Safe and Secure Ways of Life and Urban

Development

Enrichment of Society

Human Rights Due Diligence

Permeation and Rigorous Practice of

Compliance

Prevention of Bribery and Corruption

Protection of Personal Information

Development of Human Resources

Occupational Safety and Health

Promotion of Diversity

The Tokyo Gas Group is committed to contributing to the sustainable development of society through the

"enhancement of the LNG value chain" called for in the Challenge 2020 Vision. To implement our main

policies, we have selected six key activities addressing key CSR themes, and identified aspects assessed

to be highly important as specific issues ("materiality aspects"). This "Highlights of Key Activities" section

describes the background and approach to identifying these materiality aspects, along with the current

state of action on them.

With more expected of natural gas following the Great East Japan Earthquake and full liberalization of the

retail sectors for electricity and gas just around the corner, Japan's energy industry is going through major

changes. Amidst these developments, the Tokyo Gas Group recognizes that the stable supply of

inexpensive energy to society is on the public's list of concerns, and will pursue various measures to meet

this expectation.

Raw Materials Procurement to Ensure Stable and Affordable Supply

We are committed to further diversifying our sources of raw materials to ensure stable supply of low­price

LNG.

Triple Diversification

1. Procurement sourcesWe will broaden our procurement sources from mainly Asia and Australia today to North America and

other countries around the world.

2. Contract conditionsWe will seek to diversify contract conditions by moving away from mainly oil­linked pricing to

indexation against multiple indicators (such as the Henry Hub price) and eliminating destination

clauses.

3. LNG networkWe will seek to acquire gas fields, power stations, etc. on a global basis. By developing distribution

channels linking Asia, North America, and Europe, we will also aim to shrink regional disparities in

market prices.

Construction approval obtained for the Cove Point LNG Project in the U.S.

In April 2015 we received the first delivery of LNG from the

Queensland Curtis LNG Project promoted by the BG Group in

Queensland, Australia. This marked the first time that LNG

derived from coalbed methane (an unconventional natural gas

resource found in coal seams) delivered to Japan under a long­

term supply contract (signed in 2011), and was the third

delivery of LNG from projects in which Tokyo Gas has secured

a participating interest. This first delivery was approximately

70,000 tons sufficient to produce city gas meeting the annual

needs of some 220,000 ordinary households.

Delivery at Sodegaura LNG Terminal

Construction approval obtained for the Cove Point LNG Project in the U.S.The Cove Point Project in Maryland, U.S., will make a well­balanced contribution to all three patterns of

diversification outlined above. A new natural gas liquefaction plant is being built at the Cove Point LNG

Terminal to liquefy unconventional shale gas and other U.S. natural gas for export. Our goal is to be

operational in 2017.

This project will be the first to supply Tokyo Gas with LNG at Henry Hub (U.S. natural gas market) prices,

and through our close involvement we seek to develop distribution channels in the North American market.

In April 2013 we entered into a heads of agreement for the sale and purchase of LNG, and in February

2014 we joined a venture that will undertake natural gas liquefaction processing and LNG sales. Following

federal approval of construction in September 2014, all key approvals needed to export LNG from the

project to Japan have now been obtained, bringing us significantly closer to the commencement of Japan­

bound LNG exports.

Contract signed to buy gas from the U.S. Cameron LNG ProjectIn July 2014 we signed a sale and purchase contract to buy LNG from the Cameron LNG Project in

Louisiana, U.S., in which Mitsui & Co., Ltd. has a stake. This contract, which contains a flexible destination

clause, will allow us to purchase approximately 520,000 tons/year of shale gas­derived LNG at a price

linked to the Henry Hub price. This project will provide us with another LNG source in the U.S., giving us

secure access to Henry Hub price LNG.

First delivery to Japan of long­term contract LNG derived from coalbed methane

Signed a memorandum of understanding on strategic collaboration with KoreaGas Corp.

In September 2014 we signed a memorandum of understanding on strategic collaboration with Korea Gas

Corp., paving the way for the commencement of negotiations toward short­term LNG supply sharing, long­

term joint procurements of LNG, and joint investment in upstream projects. Looking ahead, we will continue

to bolster our partnerships with buyers in Japan and abroad to bring down raw material costs and achieve

more reasonable prices in the Asian market.

Diversification and Expansion of Overseas Business

We are committed to contributing to the development of energy solutions and energy infrastructure in

Southeast Asia, while at the same time building value chains through alliances with locally based energy

companies in the region.

Establishment of Tokyo Gas Asia Pte. Ltd. to contribute to development in

Establishment of Tokyo Gas Asia Pte. Ltd. to contribute to development inSoutheast Asia

In December 2014, Tokyo Gas established Tokyo Gas Asia

Pte. Ltd. in Singapore to supervise business and investment

activities in Southeast Asia. By leveraging the technologies and

expertise developed to date in our total energy business, we

aim to provide energy solutions for plants and commercial

facilities and assist the development of energy infrastructure

and stable supply in the demographically and economically

fast­growing countries of Southeast Asia, thereby contributing

to their further development.

In order to develop our ability to rapidly and effectively research infrastructure development options and

new projects in the Southeast Asia region, we will construct a group formation overseas by opening

representative offices in Vietnam, Indonesia, and Thailand in 2015. Along with our existing Malaysia office,

this will give us five offices in the region. These countries' different legal systems, institutions, cultures, and

business practices make it essential to understand them intimately and take a highly localized approach to

business in the region. This is exactly what we aim to do. We also plan to build strong local ties by entering

into alliances with companies in the energy business in these countries that have their own extensive

connections and business experience.

Offices in Asia

Cooperation to develop the LNG value chain in Indonesia

Singapore, home of Tokyo Gas Asia Pte. Ltd.

In February 2015 we signed a memorandum of understanding

with Indonesian state­owned oil and gas enterprise PT

Pertamina on forming a strategic alliance to develop the LNG

value chain.

LNG and natural gas demand is rising alongside the rapid

growth in demand for electricity and industrial energy fueled by

Indonesia's remarkable economic growth. Tokyo Gas and

Pertamina have already established close ties through the sale

and purchase of LNG, and we are considering partnering in the

future on a wide range of business activities along the value

chain, ranging from LNG procurement to infrastructure

development and cultivation of demand for LNG and natural

gas.

Signing ceremony with Pertamina

Cooperation to develop the LNG value chain in Indonesia

Commencement of construction of our first energy service plant in MalaysiaGas Malaysia Energy Advance Sdn. Bhd. (GMEA), a joint venture between Tokyo Gas Engineering

Solutions Corp. and Gas Malaysia Bhd., signed a 15­year energy services contract with Toray Group

Malaysia, a subsidiary of Toray Industries Inc., leading to the commencement of construction of an energy

plant in November 2014. GMEA will establish a gas cogeneration system on Toray Group Malaysia's

premises to supply electric power and steam using natural gas sourced from Gas Malaysia. Design,

construction, and maintenance work will be performed entirely by GMEA.

Adoption of this service enables Toray Group Malaysia to cut its energy costs, achieve 20% energy

savings, and reduce CO emissions by approximately 30%, all for a relatively small capital investment.

Project Organization

Infrastructure Development to Accommodate Wider Use of Natural Gas

We will expand our supply capacity to meet latent natural gas demand in and around the northern Kanto

region, and further increase supply stability by creating a pipeline loop. At the same time, we will further

ramp up our access to stable, competitive power generating capacity and expand electric power sales.

Steady progress on construction of the Hitachi LNG Terminal

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Steady progress is being made on construction of the Hitachi

LNG Terminal, in readiness for its entry into service in March

2016.

The first LNG terminal to be built by Tokyo Gas outside Tokyo

Bay, the terminal's operation in concert with our three existing

terminals in the bay is anticipated to improve city gas supply

stability and give a boost to industry by encouraging wider gas

use in the northern Kanto region.

The new terminal will be equipped not only with the world's

largest above­ground LNG tank with a capacity of 230,000 kl,

but also an LPG tank for calorific value adjustment, an LNG

tanker truck off­loading facility, a receiving facility for ocean­

going tankers, and a shipping berth for coastal tankers. The first

LPG tanker will arrive in November 2015 followed by the first

LNG tanker in December 2015, after which the various facilities

will enter trial operations.

The Hitachi LNG Terminal underconstruction 230,000 kl LNG tank (left) and 50,000 kl LPGtank (right)

Steady progress on construction of the Hitachi LNG Terminal

Creating a high­pressure gas pipeline loop to increase the stability of our entiresupply infrastructure

In parallel with work on the Hitachi LNG Terminal, we are

pushing ahead with construction of the approximately 84 km

Ibaraki­Tochigi high­pressure gas pipeline. This will connect the

new terminal and the existing Moka governor station, and

should enter service in March 2016. We are also building 10

"stations" that will make it possible to extend the pipeline's

reach using a combination of strategies to ensure safety

(including highly durable steel pipes, high­quality welding

technologies, and strict inspections). These are capable of a

number of functions, including city gas pressure regulation, shutoff, and release. Approximately 90% of

work had been completed as of the end of March 2015.

Surveys are also being carried out in preparation for construction of the Ibaraki Line, a high­pressure gas

pipeline connecting the Hitachi LNG Terminal to Kamisu City. Creation of a high­pressure gas pipeline loop

connecting the Hitachi LNG Terminal and the three existing terminals in the Tokyo Bay area will improve

the stability of the entire supply infrastructure in the Kanto region.

Construction of gas pipeline

Projects to develop the natural gas infrastructure

Expanding power generation and making power procurement more flexibleReforms to the electricity and gas systems and other changes are transforming the energy environment,

making it crucial that we deliver energy along with total gas and electricity­based energy solutions that are

more closely matched to customer needs than ever before. As this necessitates secure access to

competitive, stable sources of power supply, we are exploring development of a "power source portfolio"

combining natural gas­fired power generation with power produced using other fuels.

The Tokyo Gas Group is expanding its presence in the electric power business by making effective use of

the LNG value chains we have developed to date in the gas business. The Group currently owns power

generating capacity of around 1,300 MW (own stake).

We aim to expand this capacity to around 3,000 MW (own stake) by 2020, and will soon have Unit 3 at the

Ohgishima Power Station, currently under construction, ready to come on stream in fiscal 2015. We also

signed an agreement with Kobe Steel, Ltd. in September 2014 to trade power at the Shinko Moka Power

Station, and plan to receive 1,200 MW of electric power beginning in 2019. In May 2015 we teamed up with

Idemitsu Kosan Co., Ltd. and Kyushu Electric Power Company Inc. to establish Chiba­Sodegaura Energy

Co., Ltd. to conduct studies in preparation for the development of coal­fired power stations. As an energy

company, we are committed to meeting the demands and expectations of society by delivering lower price

electric power in a safe and stable manner, while doing our best to protect the environment.

<Link>Special Topic"Contributing to Society as a Total Energy Company"

We put safety first to ensure that customers can put their trust in gas. We are committed to further ramping

up our efforts to make gas supplies safer and more disaster resilient.

Earthquake Disaster Prevention Measures

Tokyo Gas prepares for a major earthquake through a combination of three types of measures: preventive

measures, emergency measures, and recovery measures.

How we protect safety of customers

Critical facilities are designed to be more resistant to earthquakes and tsunami in order to

minimize potential damage.

(1) LNG tanksImported LNG is stored in LNG tanks that have no risk of leaking even in a major earthquake.

(2) High/medium­pressure pipelinesDesigned to connect terminals with district pressure regulators, high/medium­pressure pipelines use

welded joint steel pipes, which have excellent strength and flexibility and can withstand large ground

movements.

(3) GasholdersGasholders store smaller amounts of gas to send out according to demand. They are constructed of

multiple steel plates joined together to form a robust structure.

(4) Low­pressure pipelinesLow­pressure pipelines, accounting for about 90% of the total length of our gas pipelines, consist of

polyethylene pipes which flex and are thus less likely to rupture.

Tokyo Gas has rolled out a system for shutting off the supply of gas both to individual homes

and buildings and entire regions by remote control. The pipeline network has also been sub­

divided into smaller blocks to minimize disruption in the event that gas supplies have to be shut

off in an emergency.

Preventive measures Highly earthquake resistant gas delivery facilities

Additional seismic evaluations are being performed reflecting issues and events identified following the Great EastJapan Earthquake. We determine the necessity of additional measures based on tsunami projections and discussionson seismic design standards by the Central Disaster Management Council (Cabinet Office) and scientific societies.

Emergency measures Gas supplies shut off swiftly to prevent secondarydisasters

(5) District pressure regulatorsDistrict pressure regulators reduce gas pressure from medium to low before it is sent out to customers.

There are approximately 4,000 district pressure regulators across the Tokyo Gas service area, and all are

equipped with earthquake sensors and emergency shut­off devices. When a large earthquake is detected,

the gas supply is shut off.

(6) Disaster prevention blocksThe pipeline networks in the Tokyo metropolitan area are divided into 21 medium­pressure blocks and 220

low­pressure blocks. Emergency measures (i.e., decisions on whether to stop or continue supply) are taken

at the individual block level according to the degree of damage.

(7) Supply Control CenterThe Supply Control Center comprehensively monitors gas production and supply and precisely controls

them around the clock, 365 days a year. In the event of an earthquake, the Center gathers information

through the earthquake disaster prevention system and remotely stops gas supply.

(8) Intelligent gas metersUpon detecting an abnormal gas flow or an earthquake measuring 5 or greater on the Japanese seismic

scale, intelligent gas meters automatically shut off the gas supply to the homes where they are installed.

Earthquake disaster prevention systemSUPREME is our earthquake disaster prevention system using a highly

concentrated network of earthquake sensors (approximately one sensor

per square kilometer). SUPREME quickly collects data from observation

points, remotely suspends and restarts gas supplies at district pressure regulators, and measures damage

to pipelines.

We make maximum use of IT systems in order to work more efficiently and reduce the time it

takes to resume gas supply to areas where service has been suspended.

As of June 2015

Recovery measures Safe and swift resumption of gas supply

Periodic safety inspections of gas equipmentevery three years

To ensure customers' safe use of gas, specialized service

personnel conduct on­site safety inspections, including

checking for gas leaks from pipes and surveying bath and water

heaters and other indoor gas appliances, as required by the

Gas Business Act.

"Gaslight 24" : 24­hour emergency dispatchsystem

Some 600 experts are on call at 49 locations throughout our

service area (divided into 5 blocks), ready to respond, around

the clock and 365 days a year, the moment a gas leak from a

pipeline or customer equipment is reported.

Recovery systemsIn July 2014 we launched a system for remotely restarting district pressure regulators without having to

send specialized personnel to do it on the spot. We will extend this system to all district pressure regulators

by fiscal 2018.

Notification of stop/recovery statusCustomers will be notified of procedures

to reset gas meters and stop/restart

status of gas supply through TV, the

Internet and other media.

Mutual support structureArrangements are in place to enable

more than 200 city gas companies

across Japan to assist one another via

the Japan Gas Association with restoring

supplies following a major disaster.

Safety Measures at Customer Sites

We are taking various measures to improve safety at customer sites, including inspections, emergency

dispatch services, and the development of safer appliances and equipment.

Safety measures for gas appliances/equipment

For instructions on how to reset a gas meter,see the illustration on the attached label.

Post­earthquake TV broadcast Website

Tokyo Gas began selling ENE­FARM residential fuel cells, the first in the

world, to the general public in 2009. We are now working to develop them

further and encourage wider adoption. As ENE­FARM systems produce

energy where it is needed, they are drawing attention not only for reducing

energy consumption and CO emissions, but also because they serve as

distributed energy systems that can lower peak load and improve energy

security. Responding to customer calls in the wake of the Great East Japan

Earthquake for a way to use the power produced by ENE­FARMs in the

home even during a power outage, we added a "self­sustaining power

generation function" as an optional item. In April 2015, we launched sales of

ENE­FARMs for detached homes that include this as a standard function,

enhancing their value in a disaster.

By continuing to promote the spread of ENE­FARM fuel cell systems, we

seek to make our customers' lives even safer and more secure.

Daisuke SekineResidential Fuel Cell Marketing

Section Residential Fuel Cell Business

Development Department

Safety measures for gas appliances/equipmentWe continue to develop gas appliances/equipment with even more advanced safety functions.

We have improved ENE­FARM's function of disaster prevention inresponse to customer feedback

2

To ensure that customers can use energy safely and securely, we will proactively provide information,

better products and services incorporating customer feedback.

Basic Policy

Tokyo Gas believes that the key to remaining in the customer's choice is not what we provide, but whether

what we provide delivers customer satisfaction. Following our policy of always providing high value­added

products and services with the goal of enhancing customer satisfaction, we use customer feedback to

improve the Group's business.

How We Use Customer Feedback in Management

We believe it is crucial to improve the quality of management by incorporating customer feedback into our

products and services. The opinions and requests from our customers that we receive through calls to our

Customer Center, over the Internet, or from customer satisfaction surveys are shared within the company,

all the way up to top management, and are being actively utilized in our daily improvement activities and to

enhance the quality of our products and services.

In fiscal 2014 we received 23,479 comments and requests. Of these, 8.9% of these were thanks and

appreciation, 11.8% were complaints, and 79.3% were system requests. Customer feedback like this is

utilized by individual departments in their various improvement activities. Some are also reported to

customers via our website.

Giving form to customer feedback

Giving form to customer feedback

An example of how improvements are made

Page explaining meter reading slips and payment slips

Page explaining leaflets about periodic safety inspections of gas equipment

Community­Oriented Tokyo Gas LIFEVAL Network

Tokyo Gas has set up the "Tokyo Gas LIFEVAL" network to enable it to develop close ties with individual

customers and better cater to their diversifying needs and lifestyles. The network provides a one­stop shop

for products and services that will improve quality of life. As of April 1, 2015, the network consisted of 40

corporations in 63 blocks, each providing a range of services including periodic safety checks of gas

equipment, meter readings, commencement and termination of gas service, and gas appliance sale, repair,

and installation.

Basic Policy on Environmental Protection

The Tokyo Gas Group has established an "Environmental Philosophy" and "Environmental Policies" based

on its Management Philosophy and Corporate Action Philosophy. The entire group is working actively to

protect regional and global environments in line with the mid­ to long­term environmental action targets

detailed in its Environmental Protection Guidelines.

Environmental PhilosophyThe Tokyo Gas Group will promote more sustainable ways of energy use to contribute to the protection of

regional and global environments as well as to the sustainable development of society.

Environmental Policies1. Reduction of the Environmental Impact of Customers' Energy Use

Tokyo Gas will actively and continuously attempt to reduce the environmental impact of customers'

energy use by promoting the use of environmentally friendly energy (natural gas) and providing highly

efficient appliances and systems.

2. Reduction of the Total Environmental Impact of Tokyo Gas's Business Operations

Tokyo Gas will continuously reduce energy intensity and resources used in its business operations

through the implementation of efficient and effective environmental management to contribute to the

realization of a sustainable society. At the same time, we will reduce our business operations' overall

environmental impact by aggressively promoting "green purchasing" and 3R initiatives (Reduce, Reuse,

and Recycle).

3. Strengthening of Environmental Partnerships with the Local and International Communities

Tokyo Gas will strengthen its environmental partnerships with both the local and international

communities by engaging in a wide variety of programs, such as participation in local environmental

events and technology transfers to developing countries.

4. Promotion of Green Technology R&D Programs

Tokyo Gas will promote R&D programs for environmental technologies, including renewable energy, to

protect regional and global environments.

Environmental Management System

The Tokyo Gas Group promotes group­wide environmental management to reduce environmental impact

and mitigate environmental risks. Tokyo Gas and several of its subsidiaries and affiliates have developed

and are operating an EMS (Environmental Management System) that complies with the ISO 14001

international standard. Our fiscal 2014 internal audit of EMS found that all units meet the requirements set

by ISO 14001:2004 and are operated effectively. Looking ahead, we will examine new EMS operating

structures to keep pace with the construction of our new group formation.

Environmental Management System (as of April 2015)

<Link>Environmental Report / Continual Improvement of Environmental Management System

Environmental Protection Guidelines (Results of Efforts in Fiscal 2014)

We have developed and are working to achieve six guideline targets in order to contribute to the realization

of a low carbon society, the creation of a resource­saving society, and development of a society that

coexists with nature.

In fiscal 2014 we achieved all the targets set by the Guidelines for Global Warming Countermeasures and

promoted the adoption of renewable energy resources by introducing smart technologies and making

effective use of biomass.

We also achieved the targets for general waste set by the Guidelines for Promoting Resource Saving,

which were revised in fiscal 2014. However, the targets for industrial waste and excavated soil have not yet

been met. While our production plants and offices produced less industrial waste than in the previous fiscal

year, we were unable to reach the ambitious goals set by the revised targets, and will be further ramping up

our recycling efforts.

In addition, solid progress was made for the Guidelines for Promoting Biodiversity Conservation, Guidelines

for Promoting Green Purchasing, and Guidelines for Promoting the Development of Environment­related

Technology, including the achievement of the higher target for the green purchasing rate set in fiscal 2014.

We will continue to pursue improvements in those areas where targets have been achieved as well as

those where they are still pending.

50 units have set environmental targets and operate an EMS.

Overview Image of Environmental Protection Guidelines

<Link>Environmental Report / Environmental Protection Guideline Targets and Results

Environmental Report / Results of Efforts in FY2014

As one duty of an energy company, we are working to reduce CO emissions throughout our value chains

to minimize the impact on global warming

Efforts to Prevent Global Warming

As an energy provider, the Tokyo Gas Group recognizes its duty to prioritize action to prevent global

warming. We have therefore established Guidelines for Global Warming Countermeasures that set

concrete numerical targets, and are working as a group to put them into practice. As CO emissions in LNG

value chains are highest at the city gas consumption stage, i.e., customers' sites, we place a strong focus

on curbing emissions at this point and are pursuing a variety of strategies to achieve this. We also survey

the impact on global warming of our raw material procurement activities, and are working with group

companies to deploy high­efficiency LNG carriers to reduce emissions from transportation by sea.

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Greenhouse Gas Emissions along the LNG Value Chain

<Link>Environmental Report / Tokyo Gas Group Business Activities and Material Balance

Contribution to Reduction of CO Emissions at Customers' Sites

As our customers' gas use produces far more CO emissions than our own business activities, the Tokyo

Gas Group places a particular focus on reducing CO emissions at customers' sites.

Specifically, we are pursuing a number of strategies to achieve this, including not only encouraging users to

switch from other fuels to natural gas, but also the development and dissemination of highly energy­

efficient equipment and systems, the support of renewable energy use, and the development of smart

energy networks. Through the increased use of gas in power generation, we achieved our target by

reducing CO emissions by 3.29 million tons in fiscal 2014, resulting in customer site CO emissions of

29.36 million tons. We also suggest ways our customers can use energy more efficiently in their daily lives

through activities including the provision of "Eco­Life" proposals and energy and environmental education

for the next generation.

Switching to natural gas and more advanced useSwitching from other fuels such as oil and LPG to natural gas ("energy conversion") can significantly

reduce CO emissions. In the industrial sector, for example, CO emissions can be halved if energy­saving

regenerative burner systems are also adopted at the same time.

Calculated based on emission intensity analyzed following the LCA (life­cycle assessment) approach (see "Tokyo Gas GroupBusiness Activities and Material Balance")

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Reduction of CO Emissions at Customers' Sites2

Reduction due to diffusion of gas cogeneration and natural gas­fired power generation was calculated using marginalcoefficients (respectively 0.69 kg­CO /kWh (demand side) and 0.65 kg­CO /kWh (transmission side)).

2 2

2 2

Diffusion of gas cogeneration systemsAs gas cogeneration systems generate electricity and simultaneously utilize the heat produced exactly

where the power and heat are needed, they help decentralize energy systems and contribute significantly

to the rise of a low carbon society. As of the end of fiscal 2014, gas cogeneration systems supplied via our

pipelines were generating a combined total of 1,907 MW of electricity (excluding residential systems). As

well as being adopted in high­load locations, such as factories and commercial facilities where gas

cogeneration has already made headway, systems are now being deployed in a wide range of other fields,

including the residential sector and the low to medium demand commercial sector. We are pushing ahead

with the development of smart energy networks, which combine a core gas cogeneration with maximum

use of renewable energy to optimize energy use at the level of entire communities using ICT (Information

and Communication Technology).

Thermal efficiency of thermal power stations (on a lower heating value basis) and overall loss calculated based on FY2003operating performance of the nine electric power companies and wholesale electricity utilities (Energy Efficiency StandardsSubcommittee, September 2005).

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Efficiency of gas cogeneration system is on a lower heating value basis.2

"ENE­FARM" Residential Fuel Cell Cogeneration System

ENE­FARM is a highly energy­efficient system that generates

electricity by reacting hydrogen extracted from city gas with oxygen in

the air, while simultaneously capturing the generated heat to heat

water. In April 2014, we launched ENE­FARM for home use at housing

complexes for the first time in the world, followed in April 2015 by the

launch of the fourth and newest model in our series for detached

homes. By August 2015, total units sold had reached 50,000, and we

will continue to promote their wider use to help reduce CO emissions

at customers' sites.

Energy Conservation and Reduction of CO Emissions in BusinessActivities

The Tokyo Gas Group delivers diverse energy solutions through not only our city gas business, in which we

drive the spread and expansion of eco­friendly natural gas use, but also in our electric power business,

etc., in which we leverage our strengths in natural gas.

Efforts in city gas productionThe resources used to make city gas have shifted from coal to oil and now to LNG, and energy efficiency at

the time of production has now reached more than 99%. We are working to achieve further energy savings

by, for example, using the cold energy of ­162 LNG and promoting more energy­efficient operation.

Although energy usage intensity is on the increase due to the rise in gas send­out pressure in line with

growing gas demand leading up to fiscal 2020, energy usage intensity at our city gas production plants was

203 GJ/million m and greenhouse gas emissions came to 216 thousand tons in fiscal 2014. By promoting

energy­saving operations and other measures, we have succeeded in achieving our targets.

Efforts in the electric power businessThe Group is contributing to the prevention of global warming by generating electric power using cutting­

edge natural gas turbine combined cycle technology1 and installing zero emission wind power plants. In

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Energy usage intensity at gas production plants

New ENE­FARM model fordetached home use(Model shown is an illustration.Actual installations may differ.)

fiscal 2014, we generated electric power at natural gas­fired power stations with a total capacity of

approximately 2,000 MW (1,300 MW of which is owned by the Group) and wind power plants with a

capacity of 1,990 kW. We are also planning to start operation of Unit 3 (planned maximum efficiency of

58%2 and generation capacity of approximately 400 MW) at the natural gas­fired Ohgishima Power

Station in March 2016. In addition to the electric power we generate ourselves, we also buy electric power

from outside the Group. Overall, our electric power business in fiscal 2014 had a 2 emission factor of

0.359. We have helped reduce our overall CO emissions by replacing some existing thermal power

generation capacity.

Promoting Widespread Use of Power Generation from Renewable Energy

Following on the Sodegaura Wind Power Plant at our

Sodegaura LNG Terminal, the Tokyo Gas Group has

since 2011 had a 30.2% stake in Shonai Wind­Power

Generation Co, Ltd., which operates facilities such as

the Yuza Wind Power Plant in Yamagata Prefecture

and has a total power generating capacity of 15.91 MW.

In January 2015 we also signed an agreement with

Kuroshio Furyoku Hatsuden K.K. to buy generated

electric power. Under this agreement, we buy a total of

approximately 12 MW of electric power generated at the Choshi Takada­cho Wind Power Plant and

the Shiishiba Wind Power Plant operated by Kuroshio Furyoku Hatsuden in the Kanto region.

We have also bought green power certificates for wind power from Japan Natural Energy Co., Ltd.

since fiscal 2002. In fiscal 2014, 955 MWh of electric power was allocated as green power to our

corporate museums, offices, and other facilities.

CO

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A highly efficient means of generating electricity by a combination of two methods: first gas is combusted to drive a gasturbine, then the high­temperature exhaust gas is used to convert water to steam to drive a steam turbine.

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On a lower heating value basis at the generation end.2

CO emission factors in the electric power business2

The average CO emission factor for all transmitted wholesale power, including business­use power purchased from othercompanies and the market as well as the Group's own power stations.

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Yuza Wind Power Plant

Efforts in the district heating and cooling businessThe Tokyo Gas Group operates district heating and cooling business (including small­scale heat supply

centers) in 42 districts. Steam and heated and chilled water are produced by various natural gas systems,

including cogeneration systems, absorption chillers, and boilers. We supply this steam and heated and

chilled water within a specific area, contributing to improving area­wide energy efficiency. In fiscal 2014,

facility upgrades resulted in a heat sales intensity of 1.34 GJ/GJ, enabling us to achieve our target.

Efforts at business officesAt Tokyo Gas's business offices and other facilities, we have been implementing a range of hardware­

related measures, including the installation of cogeneration systems and energy­saving equipment, and

equipment upgrades including improved lighting, air conditioners, and other hardware to enhance

efficiency. In addition, we are conducting highly effective energy­saving activities, including adjusting the

inflow of outside air according to CO concentrations and more energy­efficient control of lighting, humidity,

and temperature. We are also working to facilitate the tracking of energy usage at a glance by the use of

"TG Green Monitors" and displays that show actual electricity use, thus raising employee awareness of

energy conservation. Energy usage at our business offices and other facilities came in on target at 896 TJ

in fiscal 2014, due in part to lower summer temperatures but also to this installation of energy­saving

equipment and power­saving measures.

Heat sales intensity at district heating and cooling centers

Fiscal 2013 results have been revised to reflect improvements in calculation accuracy.

2

Energy usage at business offices, etc.

Forest Preservation and Greenification Activities

Tokyo Gas has been contributing to preventing global warming through tree­planting and forest

preservation activities since 2005, when it opened the 194­hectare Nagano Tokyo Gas Forest in Kitasaku­

gun, Nagano Prefecture. The forest celebrates its tenth anniversary in 2015, and we will continue to work

with NPOs and local residents to preserve it and contribute to the achievement of a sustainable society. We

are also supporting the preservation and enhancement of precious green space within the Group's service

area through the Tokyo Gas Tree Planting Project initiated in fiscal 2013.

Tokyo Gas's vision for forest development

Nagano Tokyo Gas Forest's Tenth Anniversary

Nagano Tokyo Gas Forest celebrated its tenth anniversary in July

2015, when a ceremony was held to mark the occasion. In the 10

years since its inception, some 300,000 saplings have been planted

and 40,000 thinned out to promote growth. As a result, a once

gloomy, impenetrable forest covered in dense undergrowth has been

transformed into a sunny, vibrant environment that allows trees to

grow rapidly and offers a good home for flora and fauna. Some

4,000 people have visited the forest, attracted by activities like the

Donguri (Acorn) Project that give them an opportunity to learn about

the value of the environment through direct experience of the outdoors.

Tenth anniversary tree planting

We are contributing to creating a "resource­saving society" through a broad range of activities, including

promotion of the 3Rs to deal with waste and excavated soil generated in the course of our business

activities, appropriate use of water resources, and recycling of used gas appliances disposed of by our

customers.

Practicing the 3Rs (reduce, reuse, and recycle) is essential to creating a resource­saving society. The most

important of these is controlling the generation of waste.

We have achieved dramatic reductions in the amount of waste and byproducts we generate through such

strategies as the adoption of LNG as raw material to make city gas and promoting the shallower­laying of

pipes and non­open­cut construction methods when laying gas pipelines. At the same time, we continue to

pursue the 3Rs in all aspects of our business activities. In fiscal 2014 the Group produced 133,650 tons of

waste in total (and achieved a recycling rate of 95.5%), 6% more than a year earlier. We will promote

initiatives to help further improve our recycling by, for example, reviewing our contracts with landfill disposal

contractors.

Waste

The Tokyo Gas Group is pursuing measures to achieve zero emissions at all of its facilities, including

power stations, gas appliance manufacturing factories, and district heating and cooling service centers as

well as the LNG terminals where city gas is produced. In fiscal 2014, we made efforts for recycling by

revising the definition of "zero emission" downward from a final disposal rate of under 1% to a rate of under

0.1%, but the actual rate achieved was 1.2%. We will be stepping up our efforts to achieve further

reductions of final disposal rate.

Promotion of the 3Rs to Minimize Waste, etc.

Efforts to achieve zero emissions at production plants

Promoting the 3Rs for excavated soils

Used PE pipes after collection Intelligent gas meter

Roads are dug up when gas pipelines are laid, producing excavated soil (i.e., residual soil) and lumps of

asphalt concrete. The Group promotes the 3Rs to decrease the amount of excavated soil through the use

of shallow­laying of pipes in narrow trenches and non­open­cut construction methods, as well as by

reburying excavated soil and increasing the use of improved soil and recycled road surface materials.

Although we reduced the disposal amount to 16.7% in fiscal 2014, we remained 0.7% off our target. We will

continue to work to produce less excavated soil by continuing efforts to encourage authorities who have not

yet approved the reburying of generated soil and the use of improved soil, as well as reducing the amount

of excavated soil overall.

Excavated soil

We have worked to increase recycling of used gas pipes removed when pipes are replaced, enabling us to

once again achieve a 100% recycling rate in fiscal 2014. We established a system for recycling

polyethylene (PE) pipe scrap and excavated sections of PE pipes in fiscal 1994, and in fiscal 2014 recycled

a total of 228 tons. The recycled material is used to make the instruction cards on how to restart intelligent

gas meters installed at customers' sites. Regarding steel and cast­iron pipes, we collected a total of 4,670

tons in fiscal 2014. These are 100% recycled as raw material used by electric furnace manufacturers and

other users.

Meters are replaced before their certification life (normally 10 years) expires. We collect the meters that

have been removed, replace all expendable parts, and recertify them, allowing them to be used for three

cycles (30 years in total). In fiscal 2014, 675 thousand (53%) of the 1,275 thousand of our newly installed

meters were reused, enabling us to reduce generated waste by 2,809 tons. Meters that have completed

three cycles are recycled through our own recycling route and used as material for new products by electric

furnace manufacturers, etc.

Promoting the 3Rs for excavated soils

Recycling of used gas pipes and gas meters

Since 1994, Tokyo Gas has operated its own waste collection and recycling system, called Saving &

Recycling Innovative Model System (SRIMS). This system enables us to reduce the impact on the

environment and cut costs by collecting waste at the same time we deliver gas appliances, parts, and

piping materials to partner companies. Under SRIMS, we are working to collect used gas appliances and

waste materials produced when equipment is replaced or gas installation or renovation work is carried out

at customers' sites. In fiscal 2014, we collected 8,991 tons of waste and recycled 8,330 tons (92.7%).

How SRIMS works

Appropriate Water Use

Tokyo Gas conducts most of its business in Japan, where abundant freshwater resources are available,

and uses comparatively little water. Therefore, we have not faced manifest risks to business continuity, and

have not previously had a clear policy on water use. As global water shortages have emerged as a serious

issue, however, we are now committed to managing our inputs of freshwater resources as part of our risk

management activities, and will work to conserve freshwater and manage wastewater. Meanwhile, all the

seawater we use to vaporize LNG at the gas production stage is returned to the sea without consumption.

Recycling of used gas appliances

Water resource inputs of Tokyo Gas Group (tap/industrial water)

We check that proper consideration is given to

biodiversity conservation in the development of the gas

fields that supply our resources. We also manage use of

ballast water to mitigate the risk posed by invasive

species during transportation of LNG by carriers owned

or managed by us.

Working with NPOs, we survey the birds, insects,

plants, and other wildlife inhabiting our LNG terminals

and use the findings to assist our tree­planting and

conservation work.

When laying gas pipes, we reduce the impact on

ecosystems caused by excavation of pit sand by

reducing the amount of excavated soil, reburying of

excavated soil, and increasing the use of improved soil

and recycled road surface materials.

Alongside reducing the impact of our business activities on ecosystems, we will work with local

communities, NPOs, and other entities to conserve biodiversity.

Activities to Conserve Biodiversity

Many species are facing imminent extinction due to human activities, and the balance of natural

ecosystems around the world is collapsing at an alarming rate. The Tokyo Gas Group considers the

realization of rich ecosystems to be one of our important business bases in order to protect the global

environment while sustaining our business, and has formulated its Guidelines for Promoting Biodiversity

Conservation. Specifically, we monitor impacts along each value chain to mitigate the impacts on

ecosystems, pursue forest conservation activities at our own Nagano Tokyo Gas Forest, and engage in a

variety of other initiatives. These include support for organizations involved in biodiversity conservation

through the Tokyo Gas Environment Support Fund, and our participation in the Keidanren Committee on

Nature Conservation.

Key activities along the value chain

We are involved in growing greenery on roofs and

creating green curtains, and use them as effective

means of communication with local communities and

customers.

We are working with our customers on a variety of

initiatives, such as the "Watashi no Mori Project" ("My

Forest") to develop mini forests in housing complexes

where customers live.

As a total energy company, we will promote the development of innovative environmental technologies to

help ameliorate global environmental issues.

Development of Hydrogen Technologies

In order to contribute to the development of a hydrogen supply infrastructure to support the widespread use

of fuel cell vehicles, Tokyo Gas has built and operates hydrogen stations in two locations as demonstration

projects. These are the Senju Hydrogen Station, the capital's first stationary hydrogen refueling station, and

the Haneda Hydrogen Station, the first station in Japan to combine both natural gas and hydrogen refueling

facilities. In fiscal 2014, the Nerima Hydrogen Station opened, making it the first commercial hydrogen

station in the Kanto region. To cut the cost of hydrogen station construction, we have developed an

operating method that dramatically reduces the number of storage tanks. This will be incorporated into the

design of the Urawa Hydrogen Station, the second station in this series. We are also working to develop

international standards for hydrogen refueling methods and hydrogen quality, measurement, and other

technologies for commercial hydrogen refueling stations.

Operation of Ordinary Commercial Hydrogen Station Launched

On December 18, 2014, having been selected for

special funding under the Ministry of Economy, Trade

and Industry's "Hydrogen Supply Facility Development

Project Subsidy" program, we opened the Nerima

Hydrogen Station, the first commercial hydrogen

refueling station in the Kanto region. This station uses

an "offsite system" for receiving hydrogen produced

elsewhere and supplying it to fuel cell vehicles onsite. Hydrogen station and Toyota MotorCorporation's FCV "MIRAI"

To promote smarter energy use in everyday life, we built an

employee dormitory in Isogo­ku, Yokohama, that makes

maximum use of renewable energy and distributed energy

systems, and conducted demonstration tests there for three

years from April 2012 to March 2015. The project achieved an

approximately 30% reduction in energy consumption and a 38%

reduction in CO emissions overall thanks to the installation and

efficient use of ENE­FARMs and other equipment. We also

achieved a 7% energy saving in resident­occupied areas as a

result of changes in resident behavior brought about by

installation of a Home Energy Management System (HEMS). In

addition, peak load was cut by 58% in summer and 49% in

winter as a result of demand response.

We will be conducting three years of further tests and

technology development work on smart meters, the installation

of which will commence in 2018, with a view to eventually

installing them in all homes in our service area. Our aim is to

improve user­friendliness through two­way communication and

deliver more individualized energy solutions using data

monitoring and customer feedback.

Isogo Smart House Demonstration Project24­unit Tokyo Gas employee dormitorycomprising 4 stories aboveground and abasement

Smart meter

To add to the ways we have developed to date to increase the

use of renewable energy sources, such as mixed combustion of

city gas and biogas, we are working on technologies to

generate biogas from food biomass and other resources

economically and efficiently using methane fermentation, and

developing technologies for removing impurities in biogas such

as carbon dioxide. In fiscal 2014, we received 775 thousand m

of biogas derived from food waste into our city gas pipelines

after it had been upgraded, adjusted to the appropriate calorific

value, and odorized like city gas (equivalent to an

approximately 1,300­ton reduction in CO emissions). fed into

city gas pipelines. In addition, we have been engaged in joint

research with the City of Yokohama since fiscal 2013 with the

goal of broadening the use of biogas generated at the City's

Hokubu Sewerage Center. R&D is being conducted on ways to

remove carbon dioxide from sewage biogas using separation

membranes to produce highly concentrated methane. We are

also studying applications to use it in high­efficiency power

generators such as solid oxide fuel cell (SOFC) systems.

Membrane biogas refining system

Making Life Smarter

Effective Use of Biomass

2

3

2

We monitor and manage impacts on the environment at every stage of our LNG value chain in order toreduce the impact on the environment.

Tokyo Gas Group Business Activities and Material Balance

Companies included in the data: Tokyo Gas and its 49 consolidated subsidiaries in Japan.

For city gas production by Tokyo Gas Group.1

Energy usage by Tokyo Gas Group excluding double­counting due to intra­group supply of heat and electricity.2

City gas: Volume of gas sales by Tokyo Gas Group excluding supply to other gas utilities.Wholesale supply: Volume of gas supplied to other gas utilities.Heat: Includes sales from LNG terminals as well as district heating and cooling center and spot heat supply. Includes intra­

3

Tokyo Gas Group Business Activities and Material Balance (PDF:211KB)

group supply. Electric power: Volume of sales of all electric power, including power purchased for business use from other companies and

the market as well as Group power stations.

CO , CH , NOx: Excludes double­counting due to intra­group supply.Volume of wastewater: Specified wastewater and domestic sewage.

4 2 4

PE pipes, Steel and cast­iron pipes: Tokyo Gas on a non­consolidated basis.5

Gas sales volume according to consolidated financial statements multiplied by emission intensity.6

About Third Party Assurance

The environmental performance indicators and environmental accounting indicators* provided in the Tokyo

Gas Group CSR Report 2015 on this website have been third­party assured by KPMG AZSA Sustainability

Co., Ltd. (a member of the KPMG Japan group) to enhance the credibility of the data. We will work to

further raise the standard of our environmental protection activities in the future, taking account of the

issues pointed out in the course of the third­party assurance process and readers' online and other

feedback.Content that has been third­party assured is indicated by the phrase "third­party assured" next to the title on each page.

Independent Assurance Report on the Tokyo Gas Group CSR Report 2015

Independent Assurance Report on the Tokyo Gas Group CSR Report 2015 (PDF:477KB)

We will develop "smart energy networks" to create low­carbon, disaster­resilient communities that can

contribute to the realization of a sustainable society. We will also leverage every communication

opportunity to work with local residents through our involvement in disaster training programs and other

events.

Promotion of smart networks built around cogeneration systems

We are pursuing the "development of smart energy communities" that use energy smarter by connecting

buildings in the community with a heat and electric power network.

We will achieve this by constructing smart energy networks (SEN). SEN have a gas cogeneration system

(CGS) at their core, which is complemented by creating the heat and power network to be used in the

community, and by making maximum use of renewable and untapped energy resources. Information and

Communication Technology (ICT) is used to precisely manage these energies and the state of demand­

side use to optimize energy supply and demand. Taking into account local characteristics, we will

contribute to creating communities that are both more environmentally friendly and disaster resilient.

SEN Development in the Toyosu wharf districtThe Tokyo Gas Group is pursuing urban development with the potential to last well into the 22nd century in

a redevelopment area located around land the Group holds in the Toyosu wharf district of Tokyo's Koto­ku.

This is a project called "Tokyo Smart City TOYOSU 22." Under this project, we are undertaking futuristic

urban development guided by three conceptions of "smartness" ­ "smart energy," "smart green," and "smart

community," from a long­term perspective looking beyond the Tokyo 2020 Olympics and Paralympics,

which is a high­quality development to raise the value and appeal of the area.

TOYOSU 22 Urban Development Concept

Work began in July 2014 on construction of a smart energy center in Zone 4 (see figure below), owned by

Tokyo Gas Site Development Co., Ltd., in preparation for developing a Toyosu wharf district SEN. This will

be the second SEN Tokyo Gas has developed in an urban redevelopment district, the first being a SEN in

the north district of Tamachi Station east exit (see p. 39). The goal is to commence operation in May 2016.

The new smart energy center will be equipped with one of the world's most efficient gas cogeneration

systems. It will supply electric power to the Toyosu wholesale market, and waste heat will be used at the

center itself. Environmental friendliness will be enhanced by adopting gas pressure differential power

generation using gas supply pressure. By giving the CGS blackout start functionality1, laying independent

power lines2, and employing disaster­resistant medium­pressure gas pipelines, we will create a system

that is capable of supplying uninterrupted heat and electricity even during a power outage or other

emergency, thus enhancing the district's disaster resilience. The network will also have a "SENEMS"3 for

centrally managing and controlling energy throughout the district using ICT. This will make it possible to

control air conditioning in real time and visualize energy use, which will cultivate greater environmental

awareness among building users. Following completion, the heat and power network will be progressively

expanded in line with the state of urban development of Zones 4 and 2.

Toyosu wharf district development area

Envisaged appearance of the smart energycenter

Started supplies of heat and power at SEN in the north district of Tamachi Stationeast exit

The Tokyo Gas Group is developing an SEN in the north district of Tamachi Station east exit (East area,

Minato­ku, Tokyo) in partnership with the Minato ward authorities with the goal of reducing the area's

carbon footprint and making it more disaster resilient. Supplies of heat and power have been progressively

rolled out to three facilities ­ Minato Park Shibaura (a public facility), Aiiku Hospital, and a childcare support

facility ­ since November 2014. The project is the first new urban development project in Japan to

incorporate development of an SEN. In October 2014, the decision was made to proceed with the TGMM

Capability to independently restart the generator during a power outage.1

Power lines laid independently by an operator. They can be used at a customer's discretion when grid power has beeninterrupted.

2

Smart Energy Network Energy Management System.3

Shibaura Project (provisional name) to develop Block ­2 (West area) in the north district of Tamachi

Station east exit. This will create a multi­purpose business center on land owned by the company. In future,

dependent on the state of development in the district, we will build a second smart energy center and

operate it in tandem with the first, thus reducing CO emissions in the entire area of the north district of

Tamachi Station east exit by some 45% relative to 1990.

Key advantages of SEN in the north district of Tamachi Station east exit

Linkages among multiple

facilities with different

purposes

Public facility, hospital, etc.

Maximum adoption and

effective use of renewables,

untapped energy, etc.

Use of solar heat and heat of underground tunnel water for air

conditioning

(first application in Japan for spot heat service)

Contribution to BCP

Capable of uninterrupted power supply to disaster management base

(Minato Park Shibaura) and uninterrupted heat supply to Aiiku Hospital

during power outages

Optimal supply/demand

control by SENEMS

Optimization for area­wide heat and power according to outside air

conditions and energy usage (first in Japan)

Smart energy network in the north district of Tamachi Station east exit

2

Our local branch offices and our corporate museums

provide and share information on disaster

countermeasures at disaster prevention events to

enable us to coordinate smoothly with local authorities

and communities during disasters. For example, at one

local training event for disaster prevention hosted by a

local authority, we explained how to reset a gas meter

after it shuts off during an earthquake with a seismic

intensity of 5 or more. We also provided other useful

information to enhance the safety and security of our

customers in their daily lives. Since 2006 we have also

developed our own disaster prevention events for

families with the aim of enhancing the disaster

prevention capabilities of local communities. These "Iza!

Kaeru Caravan!" events are jointly operated with Plus

Arts (NPO), and are offered primarily at our corporate

museums and showrooms. At these events, family

members can acquire the skills and knowledge they

need to prevent disasters, all presented in an enjoyable

format.

Participants at a disaster prevention event

"Iza! Kaeru Caravan!" event

Promoting earthquake countermeasures at local disaster prevention events

Putting a strong emphasis on educating the children who will be responsible for the next generation, we will

organize activities with local communities to demonstrate how energy can be used to make our lives better

and to raise everyday environmental awareness and practice through hands­on experience with energy's

role in our lives.

Contributing to the next generation with activities supporting schooleducation

As a company involved with energy, Tokyo Gas wants the

children upon whose shoulders the future rests to know just

how important energy and the environment are. To that end, we

have been supporting school education since 2002. Our main

activities include special classes taught onsite in the schools by

our own employees, the hosting of training sessions for

teachers, and the provision of information through field trip

facilities, teaching materials, and learning websites.

Our special classes are taught by employees who visit schools

to teach alongside teachers and provide them with teaching

materials that reflect our unique expertise as an energy provider and are tailored to fit into their teaching

plans. In November 2014, the total number of children who had taken part in these classes passed the one

million mark (rising to 1,019,298 pupils attending 33,832 classes by the end of March 2015).

We also organize training workshops for the teachers themselves in order to deepen their knowledge of

energy and environmental issues and encourage them to consider how best to convey this knowledge to

children. These workshops are held in Tokyo and three prefectures (Kanagawa, Chiba, and Saitama) upon

request from boards of education and study groups on education, with 1,273 teachers taking part in fiscal

2014.

Outside of school itself, we host field trips to our Gas Science Museum and provide information for

teachers and children via our "Odoroki! Naruhodo! Gas World" educational website in order to broaden and

deepen children's education and give them an opportunity to think about energy and the part it plays in their

lives.

Promoting understanding of energy and the environment at ourcorporate museums

Tokyo Gas's Gas Science Museum was merged with our

Energy and Earth Exploratorium (closed in March 2014) and re­

launched in April 2014 as our core showcase for energy and

environmental matters with a natural gas theme. The museum

plays host to all kinds of programs, including interactive

exhibitions that are designed to be touched and felt as well as

seen, as well as science shows and quizzes that build on what

visitors learn from the exhibits. In fiscal 2014, the museum

attracted 264,122 visitors, including local residents, people from

Special elementary school class taught byone of our employees

"Naruhodo!" interactive exhibit

Learning how to stack firewood Making a fire using everyday materials

local authorities and companies, as well as elementary school groups.

"HIIKU": Education about the power and benefits of fire

As a company that has long dealt with "fire" in all its manifestations, we are actively engaged in programs

that reveal the value and benefits of fire from gas in our daily lives. As part of our next generation youth

education activities, we have been working since 2012 to expand our participatory "HIIKU" fire education

program. The program's aim is to offer people an opportunity to learn more about fire and how to use it

properly, to develop their disaster survival skills, and to help them find ways to enrich their lives through

direct experience with the many benefits afforded by fire.The program attracted some 2,800 participants in

fiscal 2014.

Helping enrich food culture in tune with the times

Our cooking class program, which celebrated its centenary in

2013, offers a variety of classes tailored to different participants

and needs. These include "Kids in the Kitchen," which teaches

children how to cook for themselves and to use their five

senses in the process, and "La Cucina Espressa," which

shows how gas is uniquely suited to quickly cooking multiple

dishes at one time. All of these cooking classes incorporate an

environmentally conscious approach to eating habits that we

call "eco­cooking," and 2015 marked the twentieth anniversary

of our unveiling of this concept. Approximately 120,000 people took our "eco­cooking" classes in fiscal

2014 and, equally important, we also trained some 300 people to teach the classes. Going forward, we will

continue our efforts to enhance customers' lifestyles and eating habits.

The Tokyo Gas Tree Planting Project

Launched in fiscal 2013 to bring our environmental contributions closer to customers in their own

communities, the Kininaru Project ("Tokyo Gas Tree Planting Project") supports public programs to

enhance local green space by making donations to local governments according to sales of our

environmental products, and by involving group employees and their families in environmental activities. In

fiscal 2014, donations worth \1,790,000 were made to "green funds" in Tokyo, the prefectures of Kanagawa

and Saitama, and the cities of Saitama and Sodegaura based on group sales (12,625 units) of ENE­FARM

"Kids in the Kitchen," "La Cucina Espressa," and "eco­cooking" are registered trademarks of Tokyo Gas Co., Ltd.

Kids in the Kitchen

and SOLAMO during the previous fiscal year. In activities undertaken by group employees, 100 individuals

planted 600 trees at Umi­no­Mori ("Sea Forest") in Tokyo, and 41 individuals removed invasive plants at

Koajiro­no­Tani in Kanagawa Prefecture.

Conception of the Tree Planting Project

Supporting environmental groups through the Tokyo Gas EnvironmentSupport Fund

The Tokyo Gas Environment Support Fund was established in

December 2007 through a grant from Tokyo Gas to the Japan

Environment Association to commemorate our reaching the 10

million customer milestone in September 2007. Through the

fund, we support non­profit, private­sector organizations

engaged in ongoing environmental conservation activities. In

fiscal 2014, applications were received from 50 organizations.

Grants worth a total of \10 million were provided to 16 of these

applicants further to a strict selection process by a panel

including experts. We express our gratitude to a wide range of

local communities, and will contribute to the amelioration of

regional and global environmental problems and the realization

of a sustainable society.Organizations active in Tokyo and the prefectures of Kanagawa, Chiba, Saitama, Ibaraki, Tochigi, Gunma, Yamanashi, andNagano.

The "Yume Wakame Workshop" organizedby the Association for Shore EnvironmentCreation, recipient of a fiscal 2014 grant tocultivate wakame seaweed in theeutrophicated waters of Tokyo Bay and sohelp clean and conserve bay ecosystems.

We will step up our action on human rights issues as we put into effect our main policies for implementation

in fiscal 2015­17.

Basic Policy

The Tokyo Gas Group lays down the following policies on human rights in Our Code of Conduct.

1. We will respect human rights and will not discriminate or harass anyone on the basis of race,

religion, gender, age, origin, nationality, disability, education, social status, or other such

grounds.

2. We will respect one another's positions and treat everyone equally, irrespective of form of

employment, gender, title, or any other differences.

3. We will not commit sexual harassment, workplace bullying, or any other acts that infringe the

dignity of the individual. We will also not allow such acts to be condoned.

The concept of human rights includes all the basic human rights laid out not only in the Constitution of

Japan and Japan's Labor Standards Act, but also in the Universal Declaration of Human Rights. It further

encompasses the basic rights regarding labor (freedom of association, the right to collective bargaining,

elimination of forced labor, abolition of child labor, elimination of discrimination) stipulated in the ILO

International Labour Standards, as well as the local laws, culture, and practices of the countries in which

our offices are located. As we further expand our business overseas, all of our related departments will

work together to advance our initiatives for the respect of human rights.

Human Rights Promotion System

We have established a committee called the "Central Human Rights Promotional Meeting" to raise

understanding and awareness of human rights issues in general. Committee meetings are attended by the

general managers responsible for personnel matters in each department, and are chaired by the officer

responsible for compliance. At its fiscal 2014 meeting, the committee reported on the state of human rights

awareness training at Tokyo Gas, our subsidiaries and affiliates, and Tokyo Gas LIFEVAL, provided

information on human rights of particular concern to companies, and deliberated and approved plans for

activities for fiscal 2015.

Human Rights Promotion System Chart (as of April 1, 2015)

Training Structure

Tokyo Gas believes that the starting point for advancing human rights lies in a fair selection process for our

personnel and the creation of a vibrant workplace, and is implementing various measures to achieve this.

We believe that awareness of respect for human rights is the foundation that allows our employees to

express their full potential and build smooth relationships with our stakeholders. To this end, we are

continuing to make every effort to provide training on human rights awareness for all employees of Tokyo

Gas and our subsidiaries and affiliates, as well as Tokyo Gas LIFEVAL.

We also provide year­long training for "human rights promotion leaders" to equip them to play a leading

role in promoting human rights awareness in the workplace. This program was launched in 1995, and the

thirteenth cohort completed its training in 2015. Currently (May 2015) 181 workplace leaders plan, give

advice and act as instructors for human rights training at our branch offices.

FY2014 State of Implementation

Type Classification Overview Participants

Company­

wide

Level­specific training

Training upon entering the company,

during the third year, and during

qualification promotions (two levels)

1,558

Training programs and follow­up

for human rights promotion

leaders

One­year human rights training for

employees recommended by their

workplace

288

Planning­type trainingHuman rights study sessions Training to

create a vibrant workplace, etc.317

Training assistance for affiliates

and subsidiaries

Training implemented upon direct request

to the secretariat (made­to­order training)744

Dispatch of lecturers to outside

workshops

Training upon request by companies, local

authorities, and other organizations

(including the Industrial Federation for

Human Rights, Tokyo)

844

By

workplace

Human rights training at branch

officesTheme­specific training by workplace 9,935

Human Rights Advisory Service Desk

Advisory service desks have been established both inside the company (the Communication Support

Section in the Compliance Department) and outside (an independent support agency) to deal with issues

concerning communication in the workplace. We make our best efforts to conduct face­to­face

consultations wherever possible on the precondition of protecting those seeking assistance, while working

together and supporting the company to create a work environment where workers can feel safe and

comfortable. A total of 30 consultation requests were received in fiscal 2014.

We will practice fair and transparent management following the PDCA cycle that has been established to

strengthen group compliance.

Basic Policy

Tokyo Gas Group recognizes that compliance with laws and regulations based on high ethical standards in

its business activities is the foundation on which the Group continually cultivates the brand value deriving

from its reputation for "Safety, Security, and Reliability" that is the source of its competitiveness. As such,

the Group has identified the following three points as basic policies and promotes compliance.

1. Fostering of a compliance oriented mentality

We aim to establish values and a corporate culture in which each executive and employee practices

compliance­based decision­making and actions.

2. Compliance efforts by each business department based on the basic policies

Under the basic policies formulated by the Management Ethics Committee, each business department

of our group takes specific and independent approaches closely connected to each operation.

3. Establishment of the compliance PDCA cycle

In order to execute business activities in a flexible and consistent manner in accordance with changes

in operations or the legal environment, we have established a PDCA cycle that enables us to review our

operations from the perspective of compliance in order to improve them.

Compliance Promotion Structure

The Management Ethics Committee chaired by the President monitors the implementation of various

measures, and discusses and decides future activities.

The Compliance Department, serving as secretariat to the committee, promotes activities in each unit,

including development of compliance promotion systems, training and activities to raise awareness,

reduction of compliance risks, operation of compliance advisory service desks, and distribution of

information within the Group.

Compliance Promotion Structure (as of April 1, 2015)

Training Structure

Level­specific training and made­to­order training tailored to individual companies' and departments'

circumstances are provided to raise compliance awareness throughout the Group.

We are committed to responding precisely to internal and external developments by gathering and sharing

information and providing education and training within the Group on compliance risks arising from

changes in the surrounding business environment, including changes stemming from revisions to and

stricter enforcement of legislation, rising public demand for safe and stable energy provision and other

forms of energy security, and our growing presence overseas.

FY2014 State of Implementation

Breakdown Overview Number ofparticipants

Level­specific trainingTraining upon entering the company, during the third

year, and during qualification promotions (two levels)1,558

Made­to­order trainingTraining requested by individual companies and

departments2,956

Workplace workshopsOrganized at the individual workplace level and led by

compliance promoters25,115

Our Code of Conduct

We are taking ongoing action to ensure our employees understand and practice

Our Code of Conduct that explains the values and decision­making standards

that all employees are expected to share.

Learning from Cases! Collected Statutes

This guide takes a case study approach to explaining legal issues that might

arise in personnel management and in routine dealings with customers. It is

designed for use by Tokyo Gas LIFEVAL members and other field managers.

Compliance Advisory Service Desks

Tokyo Gas has established compliance advisory service desks both internally (in the Compliance

Department) and externally (at law firms), and the coverage of the desks has been expanded to include

clients of the Tokyo Gas Group. Subsidiaries, affiliates, and Tokyo Gas LIFEVAL also have their own

advisory service desks. Through the effective operation of these desks, we are endeavoring to ensure that

compliance­related problems are discovered quickly and resolved quickly so that our corporate self­

regulatory processes can continue to function effectively.

In fiscal 2014, the compliance advisory service desks dealt with 49 cases, including cases concerning

internal rules and cases concerning relations in the workplace.

Initiatives in the "Year for Strengthening Safety"

In response to the discovery of improper gas leak repairs in October 2013, fiscal 2014 was

designated as a "Year for Strengthening Safety" and action was taken throughout the Group to

prevent any recurrence.

Overview of Actions Taken

To ensure that every single employee continues to do his or her duties properly, all the departments

concerned will together consider flexible responses from two angles to ensure high standards of

safety and a field­centered perspective. Going forward, we will apply a PDCA cycle to ensuring

ongoing safety.

To prevent a recurrence of improper gas leak repairs, we have raised the inspection rate byadding both leak inspections at a given time after repairs have been completed and samplinginspections by employees to the types of inspections already performed. We have also begunacceptance inspections by video and have formulated and implemented plans to improvemeasures for old gas pipes to reduce the number of leaks.

(1)

To address the issues identified by fact­finding surveys of the four safety­related divisions wehave taken the following steps. Regarding safety­relation subcontracting practices, we haverevised our standards and manuals, clarified the division of responsibilities withsubcontractors, and strengthened operational support and communication with partnercompanies. Regarding our policy for local safety activities, we have outsourced andtransferred highly specialized work to a specialist organization and strengthened the supportavailable from the head office area in an emergency.

(2)

In fiscal 2014, Tokyo Gas introduced guidelines on combating

bribery and corruption of foreign public officials. We also

provide training to employees assigned overseas and other

relevant personnel to ensure that they understand and follow

these guidelines properly. In addition, we have prepared an

English­language version of these guidelines for locally hired

employees, and have delivered the English edition of Our Code

of Conduct to enhance their understanding. We are working to

develop arrangements for overseas local employees to report

and seek advice, and to appoint supervisors responsible for

implementing measures to prevent bribery and corruption

overseas.

A training session in progress

As one means of addressing the risks that arise as we expand our operations overseas, we will take action

to prevent the bribing of foreign public officials and ensure that business is conducted in a fair and

trustworthy manner.

Basic Principles

Bribery and corruption not only harm society's trust in a company, but can also impede economic growth in

developing countries themselves and lead to poverty and other problems of international concern. To

prevent this, Tokyo Gas requires in Our Code of Conduct that "we will maintain fair relations and do nothing

questionable under applicable laws and ordinances." We are also taking steps to prevent bribery of foreign

public officials in step with our expansion overseas in line with the goals set down in the Challenge 2020

Vision.

Action to Prevent Bribery and Corruption

We recognize that properly protecting and handling the personal information of our more than 11 million

customers is an important social responsibility, and we will practice secure control of such information in

accordance with our policy to protect personal information.

Basic Principles

Tokyo Gas recognizes that properly protecting and handling personal information is the foundation of its

business activities and an important social responsibility. To assist its fulfillment of these responsibilities,

Tokyo Gas has established the following policies under which the company makes its best efforts to protect

personal information.

1. Observing laws

In addition to observing all applicable laws and regulations governing the protection of personal

information and all relevant laws, regulations, and guidelines, Tokyo Gas establishes its company policy

and internal rules for the protection of personal information, and strives to improve them.

2. Managing personal information

Tokyo Gas takes necessary actions under relevant laws, regulations and guidelines and properly

manages personal information in order to prevent any loss or leakage of or unauthorized changes to

said information. In addition, a person responsible for the protection of personal information is assigned

at each workplace to educate and monitor employees in relation to this issue.

3. Obtaining and using personal information

Tokyo Gas obtains personal information in appropriate ways in order to properly and smoothly carry out

its business activities. When obtaining such information, Tokyo Gas informs the person concerned in

advance of the purpose of use of his or her information, and uses said information only within the scope

necessary to achieve this purpose.

4. Providing personal information to third parties

Tokyo Gas does not provide personal information to any third party without obtaining the agreement of

the person involved, except when allowed to do so under relevant laws, regulations or guidelines, and in

certain cases where, for example, parties receiving the entrusted information are not deemed by law to

be third parties. When providing personal information to, for example, an entrustee, Tokyo Gas selects

a party that can meet and fulfill the necessary standards and obligations for managing personal

information, makes appropriate arrangements for the protection of the personal information, and

exercises monitoring over said party.

5. Disclosure, correction, etc. of personal information

When a person seeks to, for example, disclose or correct his or her personal information, Tokyo Gas

endeavors to respond to the request promptly, within reasonable limits under relevant laws and

guidelines, after confirming the person's identity.

Secure control of personal information

The Tokyo Gas Group collects and utilizes a vast amount of personal information, including information on

over 11 million customers. We established a company­wide system for maintaining secure control of

personal information on April 1, 2005, ahead of the full entry into effect of the Act on the Protection of

Personal Information. We also reviewed our in­house rules and manuals in light of the requirements under

this law and implemented awareness­raising activities for all group employees. Since the law took effect,

personal information protection audits have been performed by the Internal Audit Department in addition to

self­checks in order to ensure the proper functioning of personal information security control.

We will be ramping up our efforts to ensure secure management of personal information in order to keep

pace with our future entry into the electricity retail business.

Let's use properly in accordance with the rules: A Guide for Protecting

Personal Information

This practical commentary on the Privacy Protection Act is distributed to

employees of Tokyo Gas, its subsidiaries and affiliates, and Tokyo Gas

LIFEVAL to ensure that they properly understand and practice protection of

personal information.

Tokyo Gas's education and training structure is composed of

two pillars: training to develop foundational and common skills

as business people, which takes the form of basic training,

managerial training, and support for career development; and

departmental and cross­departmental training designed to

develop a broad range of expertise specific to individual

departments. Tokyo Gas Group employees, too, take part in

some of the training in common skills to help foster a sense of

group unity.

In April 2015 we launched a new form of training for new Group

employees, which we call "Tokyo Gas Group Mindset Training."

The purpose of this training is to instill a strong sense of

belonging in new recruits in order to make them more aware of

being part of the Tokyo Gas Group. This training includes

lectures on CSR­related subjects such as the Group's main

policies, customer satisfaction, compliance, and human rights.

Tokyo Gas Group Mindset Training session

We will further enhance our training and development programs to develop highly expert, ethically

responsible human resources capable of responding flexibly to changes in society and the business

environment.

Basic Policy

We develop the skills of our employees in recognition of the fact that people experience growth through

their jobs. To this end, we focus on providing instructive training given by superiors on the job (OJT),

effectively combined with education and training (Off­JT) programs, self­development programs, and

workplace transfers and rotations. We also operate an open recruitment system and conduct interviews on

career plans so that employees can find self­fulfillment and a sense of satisfaction in their work.

Education and Training Structure

Support for Self­Development

We organize a number of programs to assist employee self­development, including seminars, external

training, and correspondence courses. These are designed not only to enhance employees' specialist

skills, but also to improve their ability to identify and set challenges, their ability to work together, and their

ability to perform tasks.

Transfers and Rotations

Every year, employees have an interview with their superiors regarding their career plan. Their self­

evaluation, along with the evaluation by their superiors, is entered into the personnel system to be utilized

for relocation plans and further career development. As a system to supplement the regular method of

personnel transfers, we also operate an "open recruitment system" through which employees can put

themselves forward for positions in new business projects and other opportunities, as well as a "free agent"

system that allows employees to challenge themselves by applying for positions that they wish to be

considered for.

We aim to allocate the right person to the right position so that our employees can feel challenged by and

gain satisfaction from their work.

In fiscal 2015, we established a unit to consider a group personnel management system with a view to

establishing a form of group management that maximizes the Group's entire resources and capabilities.

This unit will formulate a group personnel strategy to enable every group employee to tackle challenges in

new areas and contribute in diverse fields, and will consider and introduce rules and other arrangements to

put this into effect.

Multi­track Personnel Management System

Starting in April 2013, Tokyo Gas implemented a multiple­track personnel management system to further

promote personnel development by better appraising the distinct traits and strengths of each and every

employee, and thereby maximize the results achieved by the organization. By expanding, enhancing, and

increasing the skills required of the "contribution­type" employee in this multi­track personnel management

system, we aim to develop employees who can think for themselves, are able to take action themselves

while drawing people in as they go, and can adapt flexibly to changes in the business environment. We

thus aim to maximize the distinct traits and strengths of each and every employee, enhancing productivity

through their individual growth, and thereby develop employees who will take an active role as the driving

force of the Tokyo Gas Group.

Overview of the Multi­track Personnel Management System

Contribution type What we seek

Expert

Supervises or supports duties at Tokyo Gas Group on­site locations by

utilizing the skills, techniques, knowledge, and network acquired through

experience in a specialized work field.

General

Promotes the business of the Tokyo Gas Group from the perspective of what

is best for the Group overall, while strengthening his/her field of expertise

based on the skills, techniques, and knowledge acquired from various work

experience.

Business fellow

Promotes improvements in the Tokyo Gas Group's solution and innovation

functions through his/her high­level skills, techniques, and knowledge in a

specialized field.

We are pursuing improvements in occupational safety and health in order to ensure the safety and health

of the employees who form our management base.

Basic Policy

Occupational safety and health, which protects the lives and health of workers, is the foundation of a

company's existence and a social responsibility that all companies must bear. We believe that the values of

"Safety, Security, and Reliability" that we advocate for our customers as our corporate brand are accepted

only when we continue to secure our own occupational safety and health. We consider occupational safety

and health to be one of the most important challenges of corporate management.

The Tokyo Gas Group gives the highest priority to ensuring safety and health, and enforces compliance,

including adherence to all related laws and regulations, making every effort to eliminate the risk of disasters

and accidents with the goal of being a company with an excellent safety and health record.

Measures to Maintain and Enhance Health

Tokyo Gas is strengthening primary prevention (occupational health activities) in order to maintain and

enhance the health of our employees. As part of this endeavor, we have established industrial health

teams, consisting of industrial physicians, industrial nurses, pharmacists, and part­time registered

dietitians, who visit employees' workplaces to provide attentive health consultation, career ladder

consultation, and health education services. As such, we are constantly working to prevent mental health

and lifestyle­related diseases. We are also working hard to ensure that 100% of our employees receive

health checkups, a prerequisite for healthcare, focusing on the early detection of diseases, the effective

use of outside medical institutions, and the provision of follow­up observation for employees about whom

concerns have been raised.

Preventing Work­related Injuries

Aiming to further strengthen occupational safety and health activities practiced at each workplace on a daily

basis, Tokyo Gas introduced the company­wide Occupational Safety and Health Management System

(OSHMS) in fiscal 2006 to prevent industrial accidents. By utilizing the risk assessment implemented as

part of the above, we are also working to reduce the risk of accidents by treating them quantitatively. We

additionally strive to comply with related laws such as the Industrial Safety and Health Act by, among other

measures, periodically confirming and checking occupational safety and health systems across the

company. In fiscal 2015, the tenth anniversary of the launch of OSHMS, we will further strengthen our

action on and raise awareness of occupational safety and health, and will use the common company­wide

framework to further eliminate work­related injuries by urging employees at each workplace to take their

own initiative in keeping with conditions in their workplace to prevent such injuries, and to continue making

further improvements.

We also provide level­specific education on occupational safety and health and safety considerations.

Additionally, we proactively train legal administrators through a variety of programs.

Every year we organize "Safety and Health Top Seminars" for general safety and health administrators and

general occupational administrators in the Tokyo Gas Group. In fiscal 2014, outside instructors were invited

to speak on subjects including "Approaches to Preventing Accidents and Disasters" and "The Social

Conditions Surrounding Passive Smoking and the Harm It Can Do."

Prevention of Traffic Accidents

To prevent traffic accidents, we provide various forms of driver training through our own in­house driving

license system. Individual skill levels are improved by, for example, using driving recorders to provide

driving diagnoses, and having outside driving instructors give behind­the­wheel instruction when

employees renew their licenses. Safety driving instructors who have undergone special training are also

assigned to each workplace to give everyday instruction on safety through both behind­the­wheel and

classroom training.

Structure of Safety and Health Management (as of April 1, 2015)

Tokyo Gas will support diverse work styles and enhance opportunities for active participation by diverse

human resources with the aim of creating an energetic workplace where each and every employee is able

to maximize his/her various capabilities and strengths. Data is for Tokyo Gas employees on a non­consolidated basis.

Overview of employees

2010 2011 2012 2013 2014

Male 7,185(88.7%) 7,114(88.5%) 7,025(88.3%) 6,847(87.9%) 6,642(87.3%)

Female 911(11.3%) 922(11.5%) 928(11.7%) 942(12.1%) 968(12.7%)

Total 8,096 8,036 7,953 7,789 7,610

Average Age by Gender (as of March 31, 2015)

Length of Employment by Gender (as of March 31, 2015)

Number of Full­time Employees by Gender (as of March 31, 2015) (persons)

Ratio of Women in Management (as of April 1, 2015)

Education 2011 2012 2013 2014 2015 (breakdown)

Graduate school/university 109 98 108 176 190 Male 144 Female 46

High school 155 155 161 130 108 Male 106 Female 2

Total 264 253 269 306 298 Male 250 Female 48

Reemployment system

The mandatory retirement age at Tokyo Gas is 60. However, even before the revised Act on Stabilization of

Employment of Elderly Persons took force, we introduced our own system of continued employment. This

system has been providing appropriate employment opportunities to employees who have both the ability

and motivation to continue working. Coinciding with the entry into force of the above revised law, we

clarified our standards for concrete, objective recruitment and contract renewals, and have also signed a

labor­management agreement.

Reemployment after Mandatory Retirement (FY2014)

Number reemployed (% of

total)

Tokyo Gas 1 282 people (72.9%)

Subsidiaries and affiliates, etc. 34 people (8.8%)

Number mandatorily retired (% of total) 71 people (18.3%)

(Reference) Early retirement 2 13 people

Employment of people with disabilities

At Tokyo Gas, people with disabilities work alongside our other employees and are performing a variety of

duties. In order to further our efforts to employ people with disabilities, we are improving our facilities in

accordance with the type and level of the disability to create a work environment that is safe and

comfortable for all, while also expanding the locations and scope of work opportunities for people with

disabilities. As of March 2015, 138 people with disabilities were in our employment. This is equivalent to

2.02% of our total workforce and meets the statutory rate.

Promoting work­life balance

Tokyo Gas has been supporting the creation of a comfortable work environment from before the entry into

effect of the Act on Advancement of Measures to Support Raising Next­Generation Children by, for

example, helping employees balance work and parental commitments. We have created a system that

allows for longer leave and shorter working hours exceeding the levels required by law, so that our

employees will have more flexibility in choosing their style of work. For example, beginning in April 2014 the

maximum age of a child that qualifies an employee for our shorter working hour program for employees

with small children was raised from the end of third grade in elementary school to the end of sixth grade.

Our rate of return to work after parental leave is consistently high, averaging close to 100% every year.

Breakdown of Hires (fresh graduates) (as of April 1, 2015) (persons)

Number of people employed as senior contracted employees (special employees).1

Number of employees choosing to use the early retirement system.2

Seminar for employees before they return towork after parental leave

Seminar for managers with subordinates onparental leave

Main Systems and Numbers of Users (FY2014)

Parental leave (until end of April immediately following child's 3rd

birthday)58 (0 males)

Shorter hours for parents of small children (during pregnancy and until

child completes 6th grade)221

Nursing care leave (up to 3 years) 2

Nursing care work (up to 2 years) 0

Community service leave (special leave for up to 5 days within 1 year) 42

Sabbatical system (for employees who reach the age of 30, 35, 40, and

50)668

We also offer systems that allow employees to take leaves of absence for fertility treatments, to attend

school events for their children or grandchildren, and to provide nursing care to family members. These

systems are widely used by our employees.

Action to promote women's participation in the workplace

Tokyo Gas recognizes the critical need to create a workplace environment that allows each and every

employee to maximize his/her various capabilities and strengths in order for it to grow as a company, and

promotes the success of a diverse pool of human resources. As part of these efforts, we actively promote

and support women, while at the same time upgrading and expanding our parental and nursing care

programs. Tokyo Gas also places considerable weight on fostering employee awareness and creating an

organizational culture that is conducive to developing the careers of the company's female employees by

promoting a variety of initiatives, including seminars (575 participants). We are working actively to promote

measures that will broaden the range of fields in which women can excel.

Seminar on women's career development

I was involved in research on food­related technologies for over 20 years

after joining Tokyo Gas. Having subsequently been employed in managing

personnel and general affairs at subsidiaries and affiliates, I now work in

sales. It was in my seventh year at the company that I took parental leave.

Although not many people took parental leave at the time, everyone was

totally supportive. My boss, for example, gave me advice in anticipation of

my return to work, and my coworkers visited me at home to tell me how work

was going. As for myself, thanks in part to the fact that I was able to find

enough time during my leave to write my doctoral thesis so I could be of use

to the company again as soon as possible after I returned, I never felt

concerned about my future career while I was away from the workplace.

Tokyo Gas has well developed flextime arrangements, so I was able to work

in a management position and still drop off and pick up my child at preschool.

Even back then, I believe the company was in the vanguard of measures to

assist work­life balance.

Now, with better programs in place and more options to choose from, some

people conversely find it hard to decide which work style suits them best.

That's why I hope to use my own experience to develop opportunities and

support for young people to help them positively map out their own career

paths as they approach new stages in their lives.

Masako KonishiDeputy General Manager

Sales Marketing II Department

In my fifth year after joining the company I was fortunate enough to have the

opportunity to go to business school in the United States. This was at a time

when it was still unusual for a woman to study abroad at her employer's

expense. In fact I was the first woman at Tokyo Gas to study abroad at a

business school for an extended period, and I am enormously grateful to my

then boss and coworkers who encouraged me to go for it. This experience

also proved valuable in the different areas of management in which I was

involved after my study abroad, namely, in an affiliate's hotel business and in

the Corporate Social Responsibility Section.

As general manager of Tokyo Gas Australia, I am now engaged in project

management with the operator of the Queensland Curtis LNG Project, in

which Tokyo Gas is an investor. Even compared with other Japanese

affiliates in Australia, our company has a particularly high proportion of

female members, and one can sense the emphasis placed on an individual's

abilities and thinking, regardless of gender, including at our partner

companies.

In my view, the diversity required to do business globally depends on an

appreciation of individual differences. Attentive management that assigns

work and provides supervision suited to the individual will, I believe, become

even more important in the future.

Yumiko YaoGeneral Manager

Tokyo Gas Australia Pty. Ltd.Business Development

Department

Developing support for planning new careers is of crucial futureimportance.

It is important for management to appreciate people's differences, andtake advantage of their different aptitudes.