environmental policies of tokyo gas. our ... - amazon s3...1. reduce the environmental impact of...

Environmental policies of Tokyo Gas. Our approach and efforts toward the

realization of a low carbon society and the

prevention of climate change.

Implementation of the environmental

management system, etc., and various

environmental conservation activities that the

entire Group is involved in.

Data regarding utilization amount of energy

and resources, amount of generated waste,

investment and costs related to environmental

activities, etc.

Philosophy

The Tokyo Gas Group will promote more sustainable ways of energy use to contribute to the protection ofregional and global environments as well as to the sustainable development of society.

Policies

1. Reduce the Environmental Impact of Customers' Energy Use Tokyo Gas will actively and continuously attempt to reduce the environmental impact by promoting

the use of environmentally friendly energy (natural gas) and providing highly efficient appliances and

systems.

2. Reduce 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 the 3R Initiatives (Reduce,

Reuse, and Recycle).

3. Strengthen Environmental Partnerships with the Local and InternationalCommunities Tokyo Gas will strengthen its environmental partnerships with both the local and international

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

events or technology transfer to developing countries.

4. Promotion of Environmental Related Technology R&D Programs Tokyo Gas will promote R&D programs for environmental technologies, including renewable energy,

to protect regional and global environments.

Benefits of Natural Gas

Environmentally Friendly: Not only does natural gas release fewer greenhouse gases and otherpollutants during combustion, but also it helps power many highly efficient energy and heating systems.Supply Security: Recently discovered sources of natural gas — i.e. shale gas — will help contribute tothe current supply of natural gas available for import. This will help keep prices lower and more stable.Versatile: Natural gas is a primary energy source and so can be used both as direct fuel and in thecreation of energy carriers like hydrogen and electricity

Natural Gas Grid

Japan is currently facing several energy and climate problems, and Tokyo Gas believes that the bestsolution is the greater use of natural gas as an indispensable source of energy. This makes expansion ofthe natural gas grid necessary. The current natural gas grid is the basis of a distributed energy systemwhich provides gas to residences, businesses, and industries for a diverse range of purposes. As demandfor natural gas continues to rise, we will continue expanding and upgrading this system further to service aneven greater number of customers.

Map of Natural Gas Pipeline

Installing Efficient Technology

As our Scope 3*1 emissions are much larger than our Scope 1*2 & 2*3 emissions, we focus mitigationefforts on increased efficiency at our customers' sites (avoided emissions) through the introduction of highlyefficient technologies. This includes systems such as

Combined Heat and Power generatorsENE-Farm/residential CHP generatorsRegenerative Burner Systems

Quick & easy reductionsWe encourage industrial customers not just to switch from heavy oils to natural gas, but also to install ourhighly efficient furnace, the Regenerative Burner. By simply switching to natural gas and installing efficientsystems, we can reduce CO emissions by up to 50%.

Emissions created by the use of sold products*1

Scope 1 emissions are direct emissions from energy use*2

Scope 2 emissions are indirect emissions from purchased energy*3

2

Renewable energyRenewable Energy is the cleanest energy there is, but it is difficult to store, has unreliable output(intermittency), and has low energy density. We believe, however, that there is great potential in thecombined use of renewable energy with natural gas. Used alongside renewable energy, Tokyo Gas co-generation systems provide a secure and stable level of energy. In this way, various types of energydemand can be met while still incorporating renewable energy.

Smart Energy Network

The Smart Energy Network uses efficient electricity & heating systems with IT technology to create a fullyintegrated energy management system which services a large network area encompassing a wide range ofdemands. By also utilizing bio-gas, renewable, and local energy sources (e.g. waste, woodchips, etc.), itcan help reduce carbon emissions. In total, the Smart Energy Network is a flexible, resilient,environmentally friendly, and optimally managed distributed energy network.

What are the Environmental Protection Guidelines?

As a company that plays a major role in the energy industry, we developed the Environmental ProtectionGuidelines in fiscal 2000. These guidelines provide details on environmental issues that we need toaddress, as well as specifying quantitative goals. In fiscal 2005, the scope of the guidelines was expandedto include Group companies under the following three pillars: global warming countermeasures; promotionof resource saving; and promotion of green purchasing. In fiscal 2009, three additional pillars were addedfor the realization of a low carbon, resource saving society and society co-existing with nature: promotion ofbiodiversity conservation; promotion of environmental communication; and promotion of the development ofenvironment-related technology. Furthermore, following the announcement of the "Challenge 2020 Vision"in fiscal 2011, we revised our global warming countermeasures in fiscal 2012 and made other revisions infiscal 2014. The entire Tokyo Gas Group is now making concerted efforts to achieve our goal for theenvironmental protection by the target year of fiscal 2020.

Framework for Establishing the Guidelines Index

The framework for establishing quantitative indices for the Environmental Protection Guidelines isexplained in the following section.

Guidelines for Global Warming CountermeasuresIn our city gas business, the amount of CO2 emissions at customers' sites far exceeds that fromour business operation. Thus, reducing the amount of CO2 emissions at customers' sites is theutmost importance, and our targets have been established accordingly.Regarding the CO2 emissions from our own business operation, our primary goal is to reduceenergy usage intensity of city gas production at our LNG terminals, which have the highestenergy usage. We also reduce absolute emission amount from the energy usage at our offices.Targets have also been set for reducing CO2 emission factors and heat sales intensity of powergeneration and heating and cooling business.

Guidelines for Promotion of Resource SavingThe gas industry is involved in three waste management fields: industrial waste, general waste,and excavated soil.In particular, industrial waste is managed by: efforts to achieve zero emissions target atproduction plants of Tokyo Gas Group, and by promoting the 3Rs (Reduce, Reuse, Recycle);and efforts to enhance recycling rate of industrial waste generated from locations other thanthose production plants. Under the Guidelines revised in fiscal 2014, we are stepping up such efforts by further dividingindustrial waste from locations other than production plants into that from construction sites andthat from offices and other locations.When conducting construction work of gas pipeline, roads and other surfaces must be drilled,which results in the generation of excavated soil (soil, asphalt concrete, etc.). Thus, we areinvolved in efforts to reduce, reuse, and recycle in order to reduce the amount of excavated soilgenerated.

Guidelines for Promoting Green PurchasingWe strive to reduce our overall environmental burden not only by working to improve our ownoperations to use less energy and produce less waste, but also by helping to reduce the

environmental burden in upstream activities through the promotion of green purchasing. Amongour efforts, we are indexing and controlling the green purchasing rate targeting overall purchasesfrom electronic catalogs (however, this excludes difficult to acquire eco-friendly items such astools, safety items, and physics and chemistry equipment).

Our quantitative indices for the "Guidelines for Global Warming Countermeasures," "Guidelines forPromotion of Resource Saving" and "Guidelines for Promoting Green Purchasing" are under third partyguarantee by KPMG AZSA Sustainability Co., Ltd., in the document titled "Tokyo Gas EnvironmentalActivities 2014."

Guidelines for Global Warming Countermeasures

Global warming countermeasures at customers' sites*1

We aim to reduce CO2 emissions at customers' sites by 8 million tons by fiscal 2020. This will beachieved through our Group efforts implemented since fiscal 2011 to promote the use of natural gasand to develop and disseminate gas equipment and systems that have higher efficiency and lowerenvironmental load.

[Reduction of CO2 Emissions at Customers' Sites]

[FY2013 Target and Results]

FY2013 FY2014

Target Results Target

Reduce CO2 emissions by 1,500,000 tons



When "Challenge 2020 Vision" was announced, we reexamined our guidelines on globalwarming countermeasures, and changed our base year to fiscal 2011. Our target for fiscal2013 was achieved mainly by promoting a shift in fuel to city gas for industrial use andgenerators.

Global warming countermeasures in our power supply business*2

We aim to achieve a CO2 emission factor of 0.35 kg - CO2/kWh by fiscal 2020 for our power supplybusiness.

[CO2 Emission Factor in the Power Supply Business]

Global warming countermeasures in our business activities

(1) Global warming countermeasures at LNG terminals

We aim to meet energy usage intensity target (consumption of primary energy usage per gasproduction unit) of 250 GJ/million m3 at our LNG terminals by fiscal 2020.


FY2013 FY2014


CO2 emission factor 0.36



Even with power demand remaining robust since the Great East Japan Earthquake, theGroup's high-efficiency power stations helped us achieve the target.


FY2013 FY2014


Energy usage intensity of 210GJ/million m3



The above target was achieved through the promotion of energy-efficient operation, however,energy usage intensity is expected to increase toward fiscal 2020 due to a rise in gas supplypressure to meet growing gas demand.

[Energy Usage Intensity at LNG Terminals]

(2) Global warming countermeasures in district heating and cooling centers

We aim to meet energy usage intensity target (consumption of primary energy usage per heat salesunit) of 1.19 GJ/GJ at district heating and cooling centers by fiscal 2020.

[Heat Sales Intensity for District Heating and Cooling Centers]

(3) Global warming countermeasures in Tokyo Gas offices

We aim to meet energy usage reduction target (primary energy usage) of 910,000 GJ at our offices byfiscal 2020.


FY2013 FY2014


Heat sales intensity 1.39GJ/GJ



The fiscal 2013 target was achieved as a result of equipment renewal based on our studies onoptimal systems for each district heating and cooling center.

[Energy Usage at Offices, etc.]

Promoting the widespread use of renewable energy

We are working to contribute to the realization of a low carbon society through efforts to maximize theimplementation of renewable energy. Such efforts include providing products and services that utilizerenewable energy, supplying renewable energy (including power generation businesses), andpromoting both networked use of energy and energy usage in certain aspects.

[Activities in fiscal 2013]

We are verifying the effectiveness of using renewable energy through our efforts to create a smart energynetwork, as demonstrated at the Senju Smart Energy Network and Isogo Smart House (Yokohama SmartCity Project) and are applying it to other redevelopment projects. The input and injection of biogas derivedfrom food waste into city gas is taking place as well. In fiscal 2013, we received 610,000 m3 of biogas(amounting to a CO2 reduction of about 1,500 tons).


FY2013 FY2014


Energy usage 950,000GJ



Though the results fell slightly short of the target, our energy usage was maintained at thefiscal 2012 level through continued efforts such as installation of energy-efficient equipmentand implementation of energy conservation measures.

Reduction of CO emissions from "Global warming countermeasures at customers' sites" has been calculated in thecategories of Combined Heat and Power (cogeneration, including ENE-FARM) installation, enhanced efficiency of gasequipment, fuel switching, and increased power supply from highly efficient natural gas power plants. Reduction effectsof Combined Heat and Power (cogeneration) and the increase of power generation from natural gas power plants werecalculated with a marginal emission factor (0.69-CO /kWh).

*1 2

2

The average CO emissions factor for transmitted power of all wholesale electricity, including not only business-usepower purchased from power plants of our Group, but also that of other companies and markets.

*2 2

Guidelines for Promoting Resource Saving

Promoting Resource Saving of Industrial Waste

(1) Efforts toward zero emissions at production plants*3

Original Guidelines (effective until 2013)

Production plants within our Group, will achieve zero emissions by fiscal 2015 through reduction, reuse,and recycling of industrial waste.

Revised Guidelines (since 2014)

Production plants within our Group will maintain zero emissions (final disposal rate of less than 0.1%) untilfiscal 2020 through the reduction, reuse, and recycling of industrial waste.

(2) Efforts to recycle waste at locations other than production plants


We aim to increase the recycling rate of waste, including construction waste, produced from businessactivities within our Group at sites other than production plants to 94% by fiscal 2015.

Revised Guidelines (since 2014)*4

We will maintain the recycling rate of construction waste produced from business activities by our Groupcompanies at 98% or above until fiscal 2020.We will achieve the recycling rate of construction waste produced at the sites of our Group companies to90% or above by fiscal 2020.


FY2013 FY2014


One or less underperforminglocations

Zero underperforming locations(out of 19 locations)

Final disposal rateLess than 0.1%

For fiscal 2013, we were able to reduce waste to less than 1 ton at 5 out of 24 locations. Ofthe 19 locations that produced not less than 1 ton of waste, all were able to achieve zeroemissions.

[Efforts to Recycle Waste at Sites other than Production Plants]

Promoting Resource Saving of Paper Resources

(1) Efforts to separate and recycle paper


Our Group companies are working to reduce the amount of paper waste generated, as well as promotingthe methodical separation of paper waste. With these efforts, we will maintain a recycling rate of 90% ormore through fiscal 2015 and promote further recycling of paper.


Our Group companies will work to reduce the amount of general waste produced and increase therecycling rate of general waste to 75% or above by fiscal 2020 through stricter separation of waste and thepromotion of recycling.


FY2013 FY2014


Recycling rate 93%

Recycling rate 95%

Recycling rate 98% or above for construction work

88% or above for other sites

In fiscal 2013, we achieved a recycling rate that was 2 percentage points above our target,although the amount of waste generated increased by 6,000 tons. We will continue to makefurther efforts in implementing the 3Rs.

[Paper Waste Generation and Recycling Rate]

(2) Efforts to reduce usage of copy paper


We aim to reduce the amount of copy paper used in our Group companies by 13% of the fiscal 2007results, by fiscal 2015.


We will reduce the amount of copy paper used by our Group companies by 8% of the fiscal 2012 results to132 million sheets or less by fiscal 2020.


FY2013 FY2014


Paper waste recycling rate 90%

Paper waste recycling rate 95%

General waste recycling rate 75% or above

The target of the paper waste recycling rate was achieved because of the wider efforts toseparate waste. We will continue efforts to promote recycling, thereby further enhancing ourrecycling rate of overall general waste.


FY2013 FY2014


Reduction from previous yearReduction by 2% from previous year

Reduction by 1% from previous year

We achieved our target for fiscal 2013 by successfully reducing usage of copy paper by 2%from the previous fiscal year. We will continue to make efforts toward reduction of copy paperuse through efforts such as promoting paperless meetings and visualizing usage byindividuals.

[Copy Paper Usage and Reduction Rate]*5

Promoting Resource Saving of Excavated Soil

Promoting the 3Rs for excavated soil from gas pipeline construction


We are working to reduce, reuse, and recycle (3Rs) excavated soil from roadside construction workconducted by our Group companies. These efforts resulted in a reduction in excavated soil to 16% in fiscal2010, and we will maintain this level through to fiscal 2015.


We are working to reduce, reuse, and recycle (3Rs) excavated soil arising from roadside construction workordered by our company and its subsidiaries and affiliates. Through these efforts, we will maintain theamount of excavated soil at 16% or less until fiscal 2020.


FY2013 FY2014


Reduce excavated soil to 16% or less

Reduced excavated soil to 15.5%

Reduce excavated soil to 16% or less

To reduce soil excavation during construction to bury gas pipelines, we promote the 3Rs ofexcavated soil through the shallower-laying of pipes in narrow trenches and non-open-cutconstruction methods, as well as by reburying the excavated soil and increasing the use ofimproved soil and recycled roadbed material. As a result, we achieved the fiscal 2013 targetfor the residual soil disposal rate.

[Soil Disposal Rate in Gas Pipeline Construction]*6

Guidelines for Promoting Biodiversity Conservation

Making efforts at each process, from natural gas procurement, production, distribution, andmaintenance at customer sites

Our Group companies are aware of the importance of the benefits born from biodiversity (ecosystemservice). As such, we work to understand and analyze the impacts our business activities have onbiodiversity, and work to improve our business operations, promoting activities for biodiversityconservation. Moreover, as part of our social programs, we are also involved in issues concerningbiodiversity, even in areas that do not relate to our own business activities.


The following activities were conducted at the point of procurement and production: assessing the level ofenvironmental impact on the gas fields; managing ballast water from LNG carriers; researching theecosystems of greenery areas at LNG terminals; and reducing the use of pit sand through 3R efforts madefor excavated soil in pipeline construction work. Forest preservation activities were continued at NaganoTokyo Gas Forest in Nagano Prefecture, which is being utilized for purposes of environmental education.

Production plants refers to designated energy management plants in accordance with the Energy Efficiency Act thathave been producing 1 ton of waste or more in the past three years and that wish to make efforts toward zero emissions.The Original Guidelines define the achievement of zero emissions as a state where the annual waste production is 1 tonor more, but the annual landfill disposal rate is less than 1%. The New Guidelines define zero emissions as a statewhere the annual landfill disposal amount of industrial waste from production plants divided by the annual wasteproduction is less than 0.1%. The waste production here excludes asbestos and other non-recyclable industrial waste.

*3

Our sites refer to our business locations except for production plants and construction work sites. Construction work onmain and branch supply pipelines, for which orders are placed by Tokyo Gas and received by its subsidiaries andaffiliates, produce a large amount of industrial waste, most of which is recycled. This has therefore been excluded fromthis category.

*4

Amount of copy paper sheets are calculated based on A4-sized paper.*5

Disposal rate refers to the rate of reduction when compared to excavated soil generated from traditional constructionmethods.

*6

Guidelines for Promoting Green Purchasing

(1) Contributing to the realization of a low carbon society through purchasing activities conductedin concert with our business partners

Our Group companies work in concert with our business partners toward the realization of a low carbonsociety by making efforts toward energy conservation and CO2 reduction in our purchasing activities.


When purchasing equipment to be used at the plants, we appraised the life-cycle cost and conducted acompetitive tender to select our business partner. One of the requirements for entering the bid was that theequipment would be energy efficient and have a low environmental impact. We are also continuing ourefforts to reduce transportation of construction material.

(2) Contributing to the realization of a resource saving society through purchasing activitiesconducted in concert with our business partners

Our Group companies work in concert with our business partners toward the realization of a resourcesaving society through our purchasing activities, by making efforts to promote the 3Rs (reducing wasteproduced, reusing, and recycling) for gas meters, gas pipes, paper, and other items.


For gas meters, 57% (679,000 units / 1,186,000 units for all meters) were reused, thereby reducing theamount of waste by 2,827 tons and 100% of waste gas pipes were recycled. We are also continuing ourefforts to recycle waste paper generated from our company into paper for printing and other uses in ourTokyo Gas Recycled Paper program.

(3) Green purchasing rate for purchases through electronic catalogs*7


The green purchasing rate for purchases made through electronic catalogs was established at 70% orabove for fiscal 2010. This standard will be maintained until fiscal 2015.


The green purchasing rate for purchases made through electronic catalogs will be maintained at 75% orabove until fiscal 2020.

[Green Purchasing Rate]

Guidelines for Promoting Environmental Communication

Tokyo Gas Group works together with our customers under a variety of programs to create the kind of eco-friendly and happy lifestyles that are desired for sustainable future.

(1) Realizing an environmentally friendly lifestyle by working with local communities

We work with local communities through our environmental contribution activities and provideinformation on easy ways to conserve energy, thus helping to realize an environmentally friendlylifestyle together with our customers.


Through environmental events organized with local governments as well as seminars and our website, weoffered information on our environmental activities and proposed lifestyles that help people save energywhile having fun. We also aided NPOs and other organizations through the "Tokyo Gas EnvironmentSupport Fund," proposed dietary habits that are environmentally friendly, with our "Eco-cooking" program,and contributed to community greenification through the "Tokyo Gas Tree Planting Project."


FY2013 FY2014


Green purchasing rate of 70%



Our target was achieved with a green purchasing rate of 76%. This was realized by promotingthe placement of environmentally friendly items in the electronic catalogs and by choosingenvironmentally friendly ones through our website.

Subject items consist of all items purchased through electronic catalogs, including office supplies, office furniture, officefixtures, business cards, envelopes, and printed materials (but excluding tools, safety items, laboratory instruments, etc.).Calculation was made based on the purchase amount.

*7

(2) Promoting education on energy and the environment to the next generation

We are communicating with stakeholders, including future generations, to help them learn about theimportance of energy and the environment, how it relates to each person, and how the Tokyo GasGroup contributes to environmental protection.


We provided programs for future generations to learn about energy and the environment through thefollowing activities: classrooms taught by our employees at elementary and junior high schools; trainingprograms for teachers; provision of educational websites and materials; operation of corporate museumsthat provide an opportunity to experience elements associated with the environment and energy; offeringthe "Donguri (Acorn) Project" nature program, etc.

(3) Fostering an "eco-happy" mindset in Tokyo Gas Group employees and their families, andpromoting the application of an "eco-happy" lifestyle in households and the community

We are fostering environmental consciousness among Tokyo Gas Group employees and their families,and encouraging them to work toward environmental conservation in their offices, homes andcommunities.


We made the following efforts to foster environmental consciousness among Tokyo Gas Group employeesand their families, and to encourage them to work toward environmental conservation in their homes andcommunities: environmental education programs for Tokyo Gas Group employees; symposiums; eco-driving seminars; "Environmental Program Promotion Award" to reward environmental activities carried outby the Tokyo Gas Group and our business partners; family environmental seminars for employees andtheir families; and other initiatives.

Guidelines for Promoting the Developmentof Environmental Technologies

Development of innovative environmental technologies to contribute toward the realization of a lowcarbon society

We will accelerate the development of innovative environmental technologies in the fields of fuel cells,renewable energy, and in the management of hydrogen and CO2, and will promote the expansion of asmart energy network.

[Activities for fiscal 2013]

We have promoted technological development in the fields of fuel cells, renewable energy, hydrogen andCO2 management, and the smart energy network. To make hydrogen widely available at hydrogen stationsas a promising next-generation energy source, we are developing technologies for low-cost hydrogenproduction.

Our company believes that being actively involved in both regional and global environmental issues is animportant aspect of our corporate management, and we are conducting our business activities as such. Wetake our own initiative to research and announce the environmental impact and pollution levels of ouroperation in the past, and believe that we must take swift action against any concerns that arise in order toprotect our environment. We also make efforts to identify potential environmental risks and take appropriate actions to preventcausing significant environmental harm.

Conditions of Compliance to Environmental Regulations

We discovered that a company that manages designated transaction sites of specific types of homeappliances, including those from our company, had not been properly recycling some waste householdappliances. Upon this discovery, admonishment was issued jointly by the Ministry of Economy, Trade andIndustry and by the Ministry of the Environment dated October 21, 2010 to the manufacturers and othercompanies that were using the transaction site managed by said company, as having violated the recyclingrequirements of manufacturers as stipulated in Article 18 of the Law for the Recycling of Specific Kinds ofHome Appliances. Our company also received said admonishment. In response to this issue, all parties were notified and made thoroughly aware of the situation and weredirected to implement the following two points.

When a specific kind of home appliance is received, the appliance must immediately be recycledaccordingly.When receiving not in pair, be sure to take actions such as inquiring about the reason for disposal ofthe single unit in order to prevent pilfering at the designated transaction site.

Since fiscal 1999, we have been conducting soil tests on all the land that we owned, on which thepossibility of soil contamination exists, such as the sites of the old plants. When contaminants were found,we have proactively released the relevant information through a variety of methods, including reporting theissue to the local administration, announcing to the media, and explaining the situation to neighborhoodresidents. The revised Soil Remediation Measures Act came into force in 2010, and we will continue toabide by the applicable laws and ordinances in a responsible manner. Press releases related to soilcontamination can be viewed under the List of Measures Taken For Soil Remediation on our website.

Tokyo Gas manages chemical substances in accordance with applicable laws and regulations and strivesto reduce emissions of chemical substances.

Response to the PRTR Law*

In fiscal 2013, Tokyo Gas handled or otherwise dealt with the following amounts of substances subject toreporting under the PRTR Act.

(Unit: kg)

Substance Amount handled Emissions Transfer Remarks

1,2,4-Trimethylbenzene 1,200 1,200 0 Atmospheric release (from coating)

PCB Measures

Waste owned by Tokyo Gas that contain PCBs are collectively stored at the Negishi LNG Terminal andother sites, and managed appropriately in accordance with the Act on Special Measures concerningPromotion of Proper Treatment of PCB Waste. Items such as high voltage transformers and capacitors areprocessed properly in line with administrative processing schedules and policies. Although the processingperiod and methods have not yet been fixed, we will appropriately dispose of high PCB level ballast andcontaminants as well as low PCB level waste over time.

[Disposal of PCB Waste at Tokyo Gas]

High PCB level waste

FY Substance Disposal amount

FY2012 PCBcontaining waste oil 1 can

FY2013 PCBcontaining capacitor 151 units

Measures for Fluorocarbons

The amount of fluorocarbons recovered during procedures such as maintenance of GHP products totaled38.9 kg, and 69.8 kg was destroyed.

Act on Confirmation, etc. of Release Amounts of Specific Chemical Substances in the Environment and Promotion ofImprovements to the Management Thereof

*

VOC Measures

Since 1991, Tokyo Gas has been working on reducing VOCs (volatile organic compounds) emission whenpainting items such as gas holders. Recent efforts include the transition to a painting method that usesweak solventbased paints (low VOC paint method). We will continue to work on further VOCs emissionreduction.

[Amount of Fluorocarbons Handled (FY2013)]

(Unit: kg)

Recovered Destroyed

HCFC (Hydrochlorofluorocarbons) 24.2 54.1

HFC (Hydrofluorocarbons) 14.7 15.7

Total 38.9 69.8

Paintwork on gas holder

Procurement Production Distribution Offices With our customers

Establishing Guidelines as Part of Our Efforts to Protect Biodiversity

The precarious balance of Earth's ecosystem is being threatened by human activities, rendering uselessthe habitats of plants and animals that previously were able to live. In order to protect the Earth and tocontinue conducting our business operation, Tokyo Gas considers it of great importance to preserveecosystems that can sustain bio diversity, which is rudimentary to nurturing a healthy Earth environment.As such, we are involved in a variety of efforts to preserve fauna and flora and especially to protect andcare for our forests, among others.

Efforts in Our Business Activities

We are promoting efforts to preserve biodiversity throughout our chain of operations, from natural gasprocurement to transportation, production and distribution of city gas.

Procurement

Efforts being made at the site of procurement

The companies from whom we procure LNG (liquefied natural gas) are taking a variety of measures toprotect biodiversity in their gas fields, including protection of endangered wildlife, forest conservation,afforestation, and protection of marine life. For example, the following activities are being implemented atthe LNG project in Alaska to protect endangered wildlife.

Spectacled Eider Attention is being paid to the development of gas fields so as not to threaten the habitats theycontain. Moreover, the local company from whom we procure LNG conducts annual surveysto monitor the number of Spectacled Eiders there.

Efforts being made during the transport of LNG

Carriers are used to transport LNG from the gas fields to Japan. Ballast water is used to weigh down thecarrier, and concerns have been raised regarding the effects that aquatic organisms in the ballast watercan have on the local ecosystem when the water is released from the carrier. Tokyo Gas carriers thereforeexchange ballast water on the open seas to reduce its effects on the local ecosystem.

Production

We are currently involved in planting trees around our LNG terminals at Sodegaura, Negishi, andOhgishima. We are aiming to make a green area that is in harmony with the local natural habitat, and forthis purpose, we have been receiving assistance by the Jumoku Kankyo Network Society (NPO) to surveythe plants, insects, and animal life in these locations. The results of the surveys are being used as areference for conservation activities at these locations.

Bowhead Whales Since Bowhead Whales travel during the spring and fall season along the coastline where gasfields are located. Exploratory mining is being conducted only during the winter months tominimize the negative effects, such as noise or residue, on the whales.

LNG carrier Hard Clams that were not known to exist inJapan.

Distribution

Construction work consists of excavation work and burying gas pipes. However, we are reducing theamount of excavations by implementing shallower-laying of pipes in narrow trenches, as well as using less-excavation method. We used to bury the excavated site with mountain soil. But we are currently reducing the amount ofmountain soil as part of our efforts to protect the ecosystem by reusing the dug up soil from the excavationwork, as well as using treated soil and recycled road surface materials. We are also using new types ofrefilling material when the excavated site needs to be temporarily refilled.

Greenification is being promoted at each of theLNG terminals at Sodegaura, Negishi, andOhgishima. (Photo of Negishi LNG terminal)

Planting activities within the terminal. Planting isdone by the employees themselves.

[Greenification of LNG terminals]

Surveys are conducted on the animals, insects,and plants that live at the sites, with the help ofthe Jumoku Kankyo Network Society (NPO).

The Thrush is one of the main winter birds foundat the terminal during the surveys. A wide varietyof bird species have been found in green areasof the LNG terminals.

[Conducting surveys on the ecosystems within the terminals]

Offices

We are planting trees on the rooftops and creating "green curtains" at our offices and corporate museums.

[Pipe laying work using the less-excavation method]

The amount of excavated soil is reduced using a method that requiresminimum road excavation to bury the pipes. (Photo: Shaft to thrust in thegas pipes)

[Pipe laying construction using "ECO ball," a new type oftemporary refilling material]

If the same location will be excavated again, a new refilling material called"ECO ball" is used to reduce the amount of soil required.

[Recycling excavated soil]

Soil generated from gas pipeline work (excavated soil) is processed at thesoil improvement center, and reused as refilling soil. This helps to protectthe mountains and other environments.

Efforts to Enhance Biodiversity through Social Action Programs

With our customers

We are working together with our customers to create forests and preserve biodiversity through our"Donguri Project" and "Watashi no Mori Project." We also provide support to organizations working topreserve biodiversity through our Tokyo Gas Environment Support Fund.

[Rooftop greenification at Gas Science Museum]

The facility is used to effectively promote communication with customersand local communities, including elementary schools.

At the Kumagaya building, greenery is grown onthe walls and the windows, thereby keeping theoffices in the shade to help lower the roomtemperature.

Kumagaya building (inside)

[Green curtain made of bitter gourds helps to cool down in the summer heat]

[Donguri (Acorn) Project]

Program participants learn about creating forests by cutting undergrowth,thinning trees, and maintaining forestry nurseries, as well as learningabout the workings of the forest and its bounties. This program has beenheld since 1993 with the help of Donguri no Kai (NPO).

[Tokyo Gas Environment Support Fund]

The Nature Conservation Society of Japan, which received funds in fiscal2012, held a seashell class to let participants examine shells to learnabout environmental changes on the seashore.

In order to promote environmental protection activities in line with our Management Philosophy, CorporateAction Philosophy, Our Code of Conduct, and our Environmental Policies, we have developed and areoperating an EMS (Environmental Management System) that is in accordance with the ISO standard. Weare able to systematically conduct a variety of environmental efforts by ensuring that we follow the PDCAcycle. These efforts include saving resources and energy, which also have the additional benefit ofreducing costs. Furthermore, promoting business operations that follow the ISO standard makesemployees more aware of the environment and affirms their compliance with the law. And by keepingrelated records of these systematic efforts, it enhances the transparency level of the Company, therebyincreasing trust placed in our company by our stakeholders.

[Environmental Management System 2014]

Concerted Efforts of the Group

We provide support to our subsidiaries and affiliates to obtain ISO14001:2004 certification for the purposeof enhancing the environmental management of our entire Group.

Status of implementation of Environmental Management System by Tokyo Gas and its subsidiariesand affiliates (April 1, 2013 to March 31, 2014)

Period: FY2013 (April 1, 2013 to March 31, 2014)

Tokyo Gas Co., Ltd. [ISO]*1

<Residential Sales and Service Unit>Tosetz Co., Ltd. / Tokyo Gas Remodeling Co., Ltd. / Tokyo Gas Lease Co., Ltd. / Tokyo Gas TelemarketingCo., Ltd. / Tokyo Kiko Co., Ltd. / Gastar Co., Ltd. (Residential Sales and Service Division)[ISO] / Tokyo GasLiving Line Co., Ltd. (former Capty Livelic Co., Ltd.) [ISO] / Tokyo Gas Lifeval Kazusa Co., Ltd. / Tokyo GasLifeval MinamiSetagaya Co., Ltd. / Tokyo Gas Lifeval Chiba Co., Ltd. / Tokyo Gas Lifeval MinamiTamaCo., Ltd. / Tokyo Gas Lifeval Sagamihara Co., Ltd. / Capty Co., Ltd. (Residential Sales and ServiceDivision) [ISO]*2 / Living Design Center Co., Ltd.

<Energy Solution Unit>Energy Advance Co., Ltd. [ISO] / Gastar Co., Ltd. (Energy Solution Division) [ISO] / Tokyo Gas YokosukaPower Company, Ltd. / Ohgishima Power Company, Ltd. / Nijio Co., Ltd.*1 / Tachikawa ToshiCenter Co.,Ltd. / Capty Co., Ltd. (Energy Solution Division) [ISO]*2

<Regional Development Marketing Unit>Tokyo Gas Energy Co., Ltd. / Enelife Carrier Co., Ltd. / Tokyo Auto Gas Co., Ltd. / Tokyo Gas LPGTerminal Co., Ltd. / Chiba Gas Co., Ltd. [ISO]/ / Tochigi Gas Co., Ltd. [ISO]/ Tsukuba Gakuen Gas Co.,Ltd. [ISO]/ Washinomiya Gas Co., Ltd. [ISO]/ Shoei Gas Co., Ltd. [ISO]/ Miho Gas Co., Ltd. / Nagano ToshiGas Co., Ltd. [ISO]/ Tokyo Gas Yamanashi Co., Ltd. / Showa Unyu Co., Ltd.

<Pipeline Network Unit>Capty Co., Ltd. (Pipeline Network Division) [ISO]*2 / Capty Tech Co., Ltd. [ISO]*2 / Kawasaki Gas PipelineCo., Ltd.*1/ Tokyo Gas Pipeline Co., Ltd.

<Energy Production Unit>Tokyo Gas Bay Power Co., Ltd. (Sodegaura Power Station) [ISO]*1

<Energy Resources Unit>Tokyo LNG Tanker Co., Ltd. [ISO]*1

<Other>TG Information Network Co., Ltd. / Tokyo Gas Auto Service Co., Ltd. / Tokyo Gas Urban Development Co.,Ltd. [ISO] #1 / Tokyo Gas Facility Service Co., Ltd. [ISO] #2 / Tokyo Gas Site Development Co., Ltd. / UrbanCommunications, Inc. / Tokyo Gas Chemicals Co., Ltd. / Tokyo Oxygen And Nitrogen Co., Ltd. / TokyoCarbonic Co., Ltd. / Tokyo Rare Gases Company, Ltd. / Tokyo Gas Engineering Co., Ltd. / Japan SuperFreeze Co., Ltd. [ISO]/ Niccho Operation Co., Ltd. *3/Park Tower Hotel Co., Ltd. (Total of Tokyo Gas Co.,Ltd. and 51 consolidated subsidiaries)

Result of Internal Audit

In fiscal 2013, as a result of conducted audit in 49 divisions in accordance with the categories listed in theinternal audit plan, "Non Conformity" was not found in any of those as required by the ISO14001:2004standard, and the EMS was found to be in effective.

[ISO] ISO14001:2004 certification

Included in the EMS activities of Tokyo Gas Co., Ltd.*1

Included in the EMS activities of Capty Co., Ltd.*2

Included in the EMS activities of Japan Super Freeze Co., Ltd.*3

The ISO registration scope covers operational activities of the building of Shinjuku Park Tower (excluding the hotel).#1The ISO registration scope covers the head office and the management division of the Park Tower.#2

Our business activities concerning city gas involve feedstock procurement, transportation, reception,production, and distribution to our customers. We clarify the amount of feedstock, energy, and resourceswe consume during this process, as well as the environmental impact, such as CO2, wastewater and wastegeneration. Our resource saving efforts are also displayed in numerical values.

Business Activities and Material Balance (PDF: 700KB)

For Tokyo Gas Co., Ltd. nonconsolidated. Calculation for the fiscal 2013 period.*1

For the energy equivalent of electricity usage by district heating and cooling centers and Tokyo Gasoffices etc., the amounts purchased from power utility companies have all been calculated using daytimeelectricity factors (9.97 MJ/kWh).

*2

The results for fiscal 2011 and 2012 have been corrected to reflect enhancement in calculation accuracy.*3

Amount recycled includes the amount of generated soil used.*4

Calculated based on the ordinance in the Act on Promotion of Global Warming Countermeasures. Citygas has been calculated based on our company's representative formation (CO in standard conditions<0°C, 1 atmospheric pressure>: emission intensity unit 2.29 kg CO / m N)

*52

2 3

CH (methane) has been converted into the CO emission equivalent by multiplying it with the globalwarming potential value of 21 as stipulated by the Act on Promotion of Global WarmingCountermeasures.

*6 4 2

Data on wastewater consists of specified effluent and domestic wastewater.*7

City gas has been calculated based on our company's representative formation (CO in low pressuresupply: emission intensity unit 2.21 kg CO / m )

*8 22 3

[Subjects for Data Tabulation (Tokyo Gas and Group Companies)] * Subject companies

Category Unit FY2009 FY2010 FY2011 FY2012 FY2013

Number of Customers (Note)

thousands 10,637 10,739 10,855 10,978 11,111

Number of Consolidated Subsidiaries companies 53 54 53 51 51

Usage of Energy & Water / Emissions into the Atmosphere& Water System

Feedstock and Production


City gasfeedstock(Note 1)

FeedstockLNG

thousandtons

10,322 10,192 10,530 10,760 11,057

FeedstockLPG

thousandtons

262 327 321 368 418

Production City gassales (Note 2)

millionm3 13,452 13,765 14,160 14,211 14,527

Heat sales(Note 3)

thousandGJ

3,568 3,771 3,282 3,282 3,353

Powersales (Note 4)

thousandkWh 1,016,916 5,527,167 6,107,577 6,955,414 6,666,310

Energy Usage*2,3


Crude oil (Note 1) kL494,398 1,360,467 1,451,121 1,614,176 1,560,039

Number from Tokyo Gas and consolidated subsidiaries.Note:

For city gas production by Tokyo Gas on a nonconsolidated basis.Note 1:

Includes amount supplied to other gas companies. Excludes Group sales volume.Note 2:

Includes sales volume from LNG terminals, in addition to district heating and cooling center. Also includes intergroupsupply.

Note 3:

Sales volume at power plants, district heating and cooling center. Also includes intergroup supply. Power plantsinclude only those on a consolidated basis. Includes Ohgishima Power from fiscal 2010.

Note 4:

equivalent (Note 5)

LNG terminals kL 86,786 95,799 97,401 98,179 100,247

District heating andcooling centers(Note 5)

kL124,271 133,385 117,629 116,445 112,512

Power plants (Note 2)

kL215,718 1,056,069 1,168,455 1,335,019 1,283,099

Tokyo Gas BusinessOffices, etc.

kL39,444 40,969 38,539 37,891 37,493

Other groupcompanies

kL41,229 45,788 43,363 39,626 39,751

(Tokyo Gas nonconsolidated)(Note 4)

kL135,244 147,716 144,161 144,114 145,711

Electricpower (Note 3)

thousandkWh

517,819 575,752 543,186 542,724 546,218

LNG terminals thousandkWh

252,631 286,329 289,115 298,742 305,788

District heating andcooling centers

thousandkWh

87,105 88,632 72,585 76,975 76,446


thousandkWh

11,242 11,181 16,055 13,263 10,732


thousandkWh

61,339 65,995 55,405 55,022 54,499


thousandkWh

121,749 138,603 131,163 118,785 118,673

(Tokyo Gas nonconsolidated)

thousandkWh

321,212 359,810 350,876 359,707 365,971

City gas (Note 4) thousandm3 322,603 1,087,174 1,177,796 1,324,428 1,275,444

LNG terminals thousandm3 21,119 21,620 22,496 20,978 21,378


thousandm3 90,764 98,567 87,713 85,647 82,570


thousandm3 191,624 946,045 1,047,873 1,198,427 1,152,267

Tokyo Gas BusinessOffices, etc.(Note 4)

thousandm3 17,042 18,891 17,699 17,149 16,900


thousandm3 2,054 2,052 2,015 2,228 2,328

(Tokyo Gas nonconsolidated)(Note 4)

thousandm3

43,682 46,246 45,630 43,542 43,837

Heat (Note 3)

thousandGJ

29 29 25 24 31


thousandGJ

91 92 105 104 176


thousandGJ

88 94 86 88 89


thousandGJ

211 226 205 165 167


thousandGJ

117 113 102 102 99

Other fuels kL 155 136 126 119 139

LNG terminals kL 4 7 4 5 5


kL22 25 17 7 16


kL129 104 105 107 118


kL26 32 21 12 21

Fuel forvehicles

Gasoline kL 3,328 3,360 3,449 3,634 3,571


kL1,434 1,517 1,465 1,494 1,461

Diesel oil kL 221 232 206 243 228


kL30 36 35 36 37

City gas thousandm3 307 292 297 237 218


thousandm3 258 247 257 201 185

LPG kL 343 341 273 274 295


kL— — — — —

LNGcryogenicenergy

thousandtons

2,643 1,991 2,504 2,487 2,659

Cryogenic powergeneration

thousandtons

788 525 816 696 796

Portion sent tosubsidiaries and

thousandtons 839 839 769 818 821

affiliates

BOG treatment, etc. thousandtons

1,016 627 918 973 1,042

Water Usage


Tap waterandindustrialwater

thousandm3 5,219 5,700 5,273 5,647 6,023

LNG terminals thousandm3 1,348 1,480 1,271 1,460 1,542

District heatingand coolingcenters

thousandm3 1,756 1,995 1,628 1,711 1,597


thousandm3 1,230 1,243 1,437 1,504 1,890

Tokyo GasBusiness Offices,etc. (Note 2)

thousandm3

562 603 554 595 607

Other groupcompanies (Note 3)

thousandm3

322 379 383 376 387


thousandm3 1,962 2,138 1,880 2,111 2,192

Seawater LNG terminals thousandm3 637,597 701,643 765,369 791,092 795,227

Emissions into the Atmosphere


Greenhousegas

CO2

*2,(Note 1)(Note11)

thousandtons of CO2

935 2,616 2,795 3,154 3,074

Excludes double counting by intergroup supply of heat and electricity.Note 1:

Power plants include only those on a consolidated basis. Includes Ohgishima Power from fiscal 2010.Note 2:

Excludes double counting by intergroup supply.Note 3:

The results for fiscal 2011 and 2012 were revised to reflect the improvements in calculation accuracy.Note 4:

The results for fiscal 2009 to 2012 were revised to reflect the improvements in calculation accuracy.Note 5:


From fiscal 2012, the calculation method was changed, and revisions were made to improve accuracy.Note 2:

Fiscal 2011 results were revised to reflect the improvements in calculation accuracy.Note 3:

4LNG terminals (Note 2)

thousandtons of CO2

153 160 160 180 200

District heatingand coolingcenters (Note 3)(Note 11)

thousandtons of CO2

235 250 231 225 223


thousandtons of CO2

421 2,078 2,297 2,627 2,522

Tokyo GasBusinessOffices, etc. (Note 5)

thousandtons of CO2 76 81 71 72 75

Other groupcompanies (Note 6)

thousandtons of CO2 76 80 75 76 81

(Tokyo Gasnon-consolidated) (Note 7)

thousandtons of CO2

245 257 246 268 290

CH4 (Note 8) thousandtons of CO2

equivalent3 7 3 3 4

NOx tons 137 310 290 264 272

LNG terminals (Note 9)

tons 14 14 13 12 14

District heatingand coolingcenters

tons64 69 61 62 59


tons 42 205 200 175 182

Tokyo GasBusinessOffices, etc. (Note 9)

tons

17 22 16 16 17

(Tokyo Gasnon-consolidated)

tons32 37 30 29 32

Excludes double counting by intergroup supply. Totaling 3,022 (after application of credits) for the Tokyo Gas Groupoverall.Breakdown: CO emissions for SCOPE 1 total 2,800,000 tons; CO emissions for SCOPE 2 total 278,000 tons

Note 1:

2 2

171 (after application of credits)Note 2:


Emissions into the Water System


Wastewater Thousandm3 1,073 1,147 1,187 1,154 1,106

LNG terminals(Note 1)

Thousandm3 443 379 372 274 242


Thousandm3 324 394 361 398 321


Thousandm3 305 374 454 483 544


Thousandm3 452 389 381 284 249

COD tons 1.3 1.6 1.7 1.7 1.9

LNG terminals tons 1.2 1.4 1.3 1.4 1.2

Power plants tons 0.2 0.2 0.3 0.3 0.6


tons 1.2 1.4 1.3 1.4 1.2

Greenhouse Gas Emissions from Feedstock Procurement

Category Unit FY2011 FY2012 FY2013

LNG procured million tons 11.91 12.71 12.80

Greenhouse gas (CO2

equivalent) (Note)

Excavation million tons ofCO2

0.53 0.56 0.57

Liquefaction million tons ofCO2

5.44 5.80 5.84

Marine million tons of 1.28 1.37 1.38

2,521 (after application of credits) Power plants include only those on a consolidated basis. Includes OhgishimaPower from fiscal 2010.

Note 4:




About 192 tons of CH emissionsNote 8: 4

Emissions from facilities that generate soot and smoke specified in the Air Pollution Control Law.Note 9:


The results for fiscal 2009 to 2012 were revised to reflect the improvements in calculation accuracy.Note 11:

Data on wastewater consists of specified effluent and domestic wastewater.Note 1:


transport CO2

CO Emissions and Emissions Reduction at Customers' Sites


CO2 Total amount million tons of CO2 25.80 26.12 26.94 27.09 27.67

Amount of Reduction Based on FY2005 (Note)

million tons of CO2

Base 1.00 1.28 — —

Amount of Reduction Based on FY2011 (Note)

million tons of CO2

— — Base 0.87 1.52

Energy Usage for Cargo Transportation (for Tokyo Gas on a nonconsolidated basis)


Transportation amount million tonskm 70.50 78.77 82.91 81.32 93.12

Energy usage (crude oilequivalent)

kL 2,823 3,028 3,172 3,109 3,258

Energy usage intensity kL/million tonskm

40.0 38.4 38.3 38.2 35.0

Conversion Factor, etc.

[CO2 Emission Factor]


City gas (Tokyo Gas 13A) (Note 1)

kg-CO2/m3 2.21

Purchased electricity (average of allpower sources) (Note 2)

kg-CO2/kWh 0.384 etc. 0.464

etc.0.525

etc.

Calculated based on greenhouse gas emission intensity throughout the lifecycle from natural gas excavation toprocessing and transport, which was analyzed with an LCA method, where emission intensity is 0.81 for excavation,8.36 for liquefaction, and 1.97g CO /MJ (in gross calorific value) for marine transport.

Note:

2

2

Results from fiscal 2010 to fiscal 2011 represent the amount of reduction based on results from fiscal 2005. Uponreview of the Guidelines, results from fiscal 2012 are based on results from fiscal 2011.

Note:

Amount of CO emissions from cargo transportation in fiscal 2013 totaled 8,576 tons.Note: 2

Heat (Note3)

Steam (excluding industrialuse), hot water, cold water

kg-CO2/MJ

0.057

Industrial steam kg-CO2/MJ

0.060

Otherfuels (Note3)

Heavy oil A kg-CO2/L 2.71

Diesel kg-CO2/L 2.58

Kerosene kg-CO2/L 2.49

Gasoline kg-CO2/L 2.32

LPG kg-CO2/kg

3.00

[Unit Thermal Output]


City gas (Tokyo Gas 13A) (Note 1)

MJ/m3N 45.00

Purchasedelectricity (Note 2) *5

Daytime electricity MJ/kWh 9.97

Nighttime electricity MJ/kWh 9.28

Other than generalelectricity companies

MJ/kWh 9.76

Heat (Note 2)

Steam (excludingindustrial use), hot water,cold water

MJ/MJ1.36

Industrial steam MJ/MJ 1.02

Other fuels (Note 2)

Heavy oil A MJ/L 39.1

Diesel MJ/L 37.7

Kerosene MJ/L 36.7

Gasoline MJ/L 34.6

Calculated based on the typical composition of city gas (type 13A) supplied by Tokyo Gas (15°C, gauge pressure of 2kPa).

Note 1:

Emission factors from electric power companies, released in accordance with the ministerial ordinance stipulated bythe Act on Promotion of Global Warming Countermeasures.

Note 2:

Calculated using the unit calorific value, released in accordance with the ministerial ordinance stipulated by the Acton Promotion of Global Warming Countermeasures, and multiplying this amount by the emission factor per unitcalorific value and by 44/12.

Note 3:

LPG MJ/kg 50.8

Crude oil equivalent coefficient (Note 2)

kL/GJ 0.0258

City gas calorific value of Tokyo Gas (0°C, 1 atmospheric pressure)Note 1:

Law Concerning the Rational Use of Energy (the Energy Efficiency Act)Note 2:

All or part of the data for consolidated affiliated companies located in the Tokyo Gas Hamamatsucho head office buildingand other Tokyo Gas buildings (Tokyo LNG Tanker Co., Ltd., Energy Advance Co., Ltd., Nijio Co., Ltd., Tokyo GasPipeline Co., Ltd., etc.) are included in the figures of Tokyo Gas. Feedstock refers to the city gas feedstock of Tokyo GasCo., Ltd.

*1

In accordance with guideline revisions, for district heating and cooling centers that sell power using Combined Heat andPower (cogeneration), the amount of energy usage is divided between those for heat production and those for powergeneration using a allocation factor stipulated in the Act on Promotion of Global Warming Countermeasures. Data forenergy used to produce heat is reflected in "District heating and cooling centers," and data for energy used for powergeneration is reflected in "Power plants." Data for "Tokyo Gas Business Offices, etc." does not include energy used forLNG terminals and district heating and cooling centers. "Other group companies" refers to data of group companiesexcluding district heating and cooling centers, and power plants.

*2

Some variance in the data listed under different categories may exist since the data has been processed to properlyassess the changes in energy usage intensity for each business activity, such as reflecting the amounts commissionedby other companies at LNG terminals.

*3

CH (methane) was converted into CO emission amounts by multiplying the CH emission figures by the globalwarming potential of 21, as stipulated in the Act on Promotion for Global Warming Countermeasures.

*4 4 2 4

For the crude oil equivalent of electricity usage under "District heating and cooling centers" and "Tokyo Gas BusinessOffices, etc.," the amounts purchased from power utility companies were all calculated using daytime electricity factors.

*5

Industrial Waste*1


Industrial waste*2 Generation tons 119,668 131,568 118,733 117,832 122,705

Amountrecycled

tons 114,535 128,594 116,478 114,994 119,039

Finaldisposal

tons 2,662 1,580 1,167 1,956 2,450

Recyclingrate

% 96 98 98 98 97

Finaldisposalrate

%2 1 1 2 2

Productionplants (group)

Generation tons 1,031 1,371 1,213 1,254 1,476

Amountrecycled

tons 956 1,297 958 1,089 1,062

Finaldisposal

tons 10 11 1 0 2

Recyclingrate

% 93 95 79 87 72

Finaldisposalrate

%1 1 0 0 0

Constructionwork*2 (group)

Generation tons 116,133 127,209 114,060 113,451 118,111

Amountrecycled

tons 111,557 124,843 112,543 111,160 115,303

Finaldisposal

tons 2,471 1,396 1,016 1,820 2,258

Recyclingrate

% 96 98 99 98 98

Finaldisposalrate

%2 1 1 2 2

Business Generation tons 2,503 2,988 3,460 3,128 3,118

Offices, etc. (group) Amount

recycledtons 2,023 2,454 2,976 2,746 2,647

Finaldisposal

tons 180 172 149 136 190

Recyclingrate

% 81 82 86 88 86

Finaldisposalrate

%7 6 4 4 6

Tokyo Gasnon-consolidated (group)

Generation tons 4,456 3,924 4,413 3,903 4,137

Amountrecycled

tons 4,109 3,514 4,074 3,531 3,647

Finaldisposal

tons 122 140 102 117 194

Recyclingrate

% 92 90 92 90 88

Finaldisposalrate

%3 4 2 3 5

Results by Major Sites (FY2013)

[Major LNG terminals (Negishi, Sodegaura, Ohgishima)]

Category Generation(tons)

Amountrecycled (tons)

Finaldisposal (tons)

Recyclingrate (%)

Final disposalrate (%)

Sludge 67.7 20.9 0.3 30.8 0.4

Scrap metal 52.5 52.5 0.0 100.0 0.0

Waste oil 8.9 8.7 0.0 97.9 0.0

Waste plastics 9.2 5.5 0.1 59.8 0.7

Specially-controlledindustrial waste

28.8 27.5 0.0 95.2 0.0

Other 4.1 1.5 0.0 37.6 0.0

Data for "Production plants" includes that from business offices that manufacture city gas and other products, districtheating and cooling centers, and power plants. Data for "Construction work" is for construction taken on by our groupcompanies as an original contractor. Data for "Business Offices, etc." includes all data other than that from "Productionplants" and "Construction work."

*1

Including construction work for customers of our subsidiaries and affiliates.*2

Total 171.3 116.6 0.4 68.1 0.2

[Gastar Co., Ltd. (gas appliance manufacturer)]




Recyclingrate (%)


Scrap metal 703.1 703.1 0.0 100.0 0.0

Sludge(drainagetreatmentsludge, paintsludge, etc.)

35.7 35.7 0.0 100.0 0.0

Waste plastics 30.2 30.2 0.0 100.0 0.0

Waste oil 6.0 6.0 0.0 100.0 0.0

Total 775.0 775.0 0.0 100.0 0.0

[District Heating and Cooling Centers]



Final disposal(tons)

Recycling rate(%)

Final disposal rate(%)

Sludge 9.2 7.0 0.0 76.6 0.0

Scrap metal 25.1 24.7 0.0 98.6 0.0

Waste oil 111.3 110.2 0.0 99.0 0.0

Wasteplastics

16.3 16.3 0.0 100.0 0.0

Other 119.2 111.1 0.0 93.1 0.0

Total 281.1 269.3 0.0 95.8 0.0

[Waste from Construction Work]




Recyclingrate (%)


Debris 108,968 108,001 967 99.1 0.9

Sludge 2,338 1,367 511 58.5 21.9

Scrap metal 2,096 2,056 34 98.1 1.6

Wood chips 1,444 1,311 96 90.8 6.7

Waste plastics 1,184 847 303 71.5 25.6

Glass, concrete, ceramicwaste

1,558 1,271 285 81.6 18.3

Paper waste 210 197 7 93.4 3.3

Other 312 253 54 81.0 17.4

Total 118,111 115,303 2,258 97.6 1.9

[Business Offices, etc.]




Recyclingrate (%)


Scrap metal 741 711 28 96.0 3.7

Waste plastics 878 815 57 92.9 6.5

Waste oil 286 282 0 98.5 0.2

Sludge 448 171 50 38.1 11.3

Glass, concrete, ceramicwaste

152 133 19 87.3 12.5

Debris 117 117 0 99.7 0.3

Other 497 445 35 89.7 7.0

Total 3,118 2,674 190 85.8 6.1

General Waste


GeneralWaste

Generation tons 3,389 3,498 3,335 3,407 3,645

Amountrecycled

tons 2,565 2,497 2,473 2,489 2,755

Recyclingrate

% 76 71 74 73 76

Tokyo Gasnon-consolidated

Generation tons 1,280 1,211 1,147 1,213 1,154

Amountrecycled

tons 1,070 1,004 943 1,020 977

Recyclingrate

% 84 83 82 84 85

Paperwaste

Generation tons 2,281 2,195 2,134 2,199 2,329

Amountrecycled

tons 2,080 2,010 1,974 2,060 2,220

Recyclingrate

% 91 92 93 94 95

Tokyo Gasnon-consolidated

Generation tons 1,005 926 856 920 863

Amountrecycled

tons 927 869 801 876 821

Recyclingrate

% 92 94 94 95 95

ByProducts from Gas Pipe Construction Work


Gas pipe (Note 1)

PE pipe Amountrecovered

tons 216 178 219 250 231

Amountrecycled

tons 216 178 219 250 231

Recycling rate % 100 100 100 100 100

Steelandcastironpipe

Amountrecovered andrecycled

tons4,844 4,240 3,864 3,711 3,995

Recycling rate % 100 100 100 100 100

Excavated soil (Note 2)

Pipe extension work km 1,070 1,092 1,027 1,183 1,160

Estimated excavatedamount

ten thousandtons

337 331 333 359 357

Actualreducedamount

Reduction (byshallower-laying of pipesin narrowtrenches andless-excavationmethod)

ten thousandtons

141 141 136 140 143

From fiscal 2009, general waste (including paper waste) includes that generated by the tenants of Park Tower ownedby Tokyo Gas Urban Development Co., Ltd. Fiscal 2011 results were revised to reflect the improvements in calculation accuracy.

Note:

Reuse(generatedsoil)

ten thousandtons

43 44 43 47 49

Recycle(improved soil,regenerationtreatment)

ten thousandtons 101 98 104 110 110

Total reductionamount

ten thousandtons

285 282 283 298 302

Residual soil (actualamount)

ten thousandtons

52 49 50 61 55

Rate of residual soil(comparison toestimated excavatedamount)

%

15 15 15 17 16

Tokyo Gasnon consolidated(Note 2)

Pipe extension work km 955 983 931 1,064 1,064

Estimated excavatedamount

ten thousandtons

311 306 311 332 333

Actualreducedamount

Reduction (byshallower-laying of pipesin narrowtrenches andless-excavationmethods)

ten thousandtons

135 133 128 134 136

Reuse(generatedsoil)

ten thousandtons

38 38 39 41 45

Recycle(improved soil,regenerationtreatment)

ten thousandtons

99 96 102 108 107

Total reductionamount

ten thousandtons

272 267 269 283 289

Residual soil (actualamount)

ten thousandtons

40 39 41 49 45

Rate of residual soil(comparison toestimated excavatedamount)

%

13 13 13 15 13

Recovery from Our Customers


Waste,etc.

Subject toHomeApplianceRecyclingLaw

Home air- condition-ing unit

Units recovered item 22,195 29,259 21,594 20,045 22,009

Units sent toprocessingplants

item— 29,302 21,611 20,041 21,892

Units disposed ofbyremerchandising,etc.

item

21,758 28,341 22,471 19,764 19,962

Weight disposedof byremerchandising,etc.

tons

931 1,200 959 829 836

Remerchandisedweight

tons789 1,017 827 732 740

Remerchandisingrate

%84 84 86 88 88

Fluoro carbons

Recoveredweight

kg13,078 17,316 13,180 12,718 13,036

Clothesdryer

Units recovered item 5,053 5,461 5,591 5,604 6,873

Units sent toprocessingplants

item— 5,464 5,579 5,607 6,820

Units disposed ofbyremerchandising,etc.

item

4,958 5,495 5,569 5,390 6,671

Weight disposedof byremerchandising,etc.

tons

167 190 198 193 247

Remerchandisedweight

tons136 156 164 158 209

Tokyo Gas nonconsolidatedNote 1:

Data for excavated soil and asphalt concrete. Includes affiliated city gas companies.Note 2:

Remerchandisingrate

%81 81 82 81 84

SRIMS recoveryamount (Note)

Used gasappliances, etc.

tons3,732 3,916 4,136 4,423 4,345

Other tons 3,859 3,442 3,399 3,804 4,343

Total tons 7,592 7,357 7,535 8,227 8,687

SRIMS Recovery Results (FY2013)

Category Recovery(tons)



Recyclingrate (%)


Used gas appliances andscrap metal

4,344.6 4,344.6 0.0 100.0 0.0

Wasteplastics

619.9 616.5 3.5 99.4 0.6

Polystyrenefoam

13.1 13.1 0.0 100.0 0.0

Cardboard boxes 727.1 727.1 0.0 100.0 0.0

Debris 655.4 655.4 0.0 100.0 0.0

Concrete and tile scraps 300.1 164.2 135.9 54.7 45.3

Other 2,040.4 1,888.2 57.1 92.5 2.8

Total 8,687.4 8,395.9 196.5 96.6 2.3

Excludes waste from specified kinds of home appliances.Note:

Our environmental protection costs in fiscal 2013 totaled 7.39 billion yen, an increase of 280 million yenfrom the previous fiscal year.Investments totaled 1.06 billion yen, which was 230 million yen more than the previous year due to therenovation of corporate museums and increased social contribution activities, such as voluntarygreenification.Expenses totaled 6.32 billion yen, an increase of 30 million yen from the previous fiscal year, due toincreased costs associated with resource recycling and environmental management.The economic effect totaled 12.94 billion yen, an increase of 2.02 billion yen from the previous fiscal year.This can be attributed to factors such as greater cost savings from reduced amounts of excavated soil.

[Environmental Accounting of Tokyo Gas Co., Ltd. on a NonConsolidated Basis (FY2013 Results)]

Period: April 2013 to March 2014 Scope: Tokyo Gas Co., Ltd. (capture rate for Tokyo Gas and its consolidated subsidiaries *1: 90.4%) Standard of reference: "Environmental Accounting Guidelines 2005" issued by the Ministry of the Environment, and"Manual for the Introduction of Environmental Accounting in City Gas Business" prepared by the Japan GasAssociation

1. Environmental Protection Costs

(Unit: million yen)

Categories ofEnvironmentalProtection Costs

Investment Expenses Difference

Major items(examples)

FY2012 FY2013 FY2012 FY2013 Investment Expenses

Pollutionprevention

Capitalinvestment,maintenanceexpenses,depreciation costs,personnelexpenses, etc. forprevention of airpollution, waterpollution, noisepollution, etc.

38 88 290 286 50 -4

Capitalinvestment,maintenanceexpenses,

Although our environmental reports cover Tokyo Gas and its consolidated subsidiaries, our environmental accounting islimited to Tokyo Gas Co., Ltd. on a nonconsolidated basis.The capture rate is shown to make it easier to understand how much of the total consolidated results this limited dataaccounts for.Capture rate = Nonconsolidated sales for Tokyo Gas Co., Ltd. / Consolidated sales

*1

Companybusiness

Globalenvironmentalprotection

depreciation costs,personnelexpenses, etc. forenergyconservation,effective use ofenergy, protectionof the ozone layer,etc.

243 213 604 628 -30 24

Resourcerecycling

Capitalinvestment,maintenanceexpenses,depreciation costs,personnelexpenses, etc. forreduction/recyclingof excavated soil,waste control, etc.

22 28 362 559 5 197

Environmentalmanagement

Costs for greenpurchasing,environmentaleducation,development andoperation of theEnvironmentalManagementSystem,environmentalorganizations, etc.

3 2 406 553 -1 147

Other

Costs associatedwith greenificationand soilrehabilitation inaccordance withthe FactoryLocation Act andordinances

0 39 1,201 961 39 -240

Customersites

EnvironmentalR&D

Costs for researchand developmentof technologies tominimizeenvironmentalimpact and highefficiencyappliances andsystems

421 451 1,505 1,479 30 -26

Recyclingused gasappliances

Costs of recoveryand recycling ofsold gasappliances,packaging, etc.

0 0 9 13 0 4

Social

Voluntary greenification, landscapeconservation, nature conservation,beautification, support of local

actionprograms

environmental activities,environmental advertising,disclosure of environmentalinformation

104 235 1,909 1,837 131 -72

Total 831 1,056 6,287 6,316 225 29

Note:Since decimal places have been rounded off to the nearest whole number, the calculated total and amount of increase ordecrease may not match.Within expenses, depreciation costs were posted as 564 million yen for fiscal 2012 and 615 million yen for fiscal 2013.Since the costs for environmental R&D are extracted from those for environmental protection, they may differ from the figuresstated in the financial report.Capital investment of Tokyo Gas Co., Ltd. alone was 138.8 billion yen, with a sales volume of 1,908,505 million yen.

<Main differences from the previous fiscal year>

Pollution prevention The increased investment was due mainly to the growth in investments in water pollution preventionfacilities by the production department.Global environmental protection The reduced investment amount was due mainly to a decrease in capital investments both by the realestate department and in district heating and cooling. The increase in expenses was due mainly to the increased cost of depreciation and repairs associatedwith capital investments in energy and power saving systems.Resource recycling The increase in expenses was due mainly to the increased cost of waste disposal and transport.Environmental management The increase in expenses was due mainly to the increased cost of industrial waste disposal.Other The increased investment was due to the growth in greenification investments by the productiondepartment. The decrease in expenses was due mainly to the reduced cost of soil treatment work.Environmental R&D The increased investment was due to R&D for combined heat and power (cogeneration) technology,GHP/airconditioning technology, fuelcell technology, smart technology, hydrogen technology, etc. The decrease in expenses as a whole was due to the efforts to promote selection and concentration inthe range of investment.Social action programs The increased investment was due to the renewal of displays at corporate museums and greenificationat gas supply facilities. The decrease in expenses was due to a reduction in the cost of outsourced work and demanddevelopment in the sales department.

2. Level of Environmental Burden

Level of Environmental Burden

Category FY2012 FY2013

Pollutionprevention

NOx (plants) mg/m 0.5 0.5

NOx (district heating and cooling centers) g/GJ 8.5 7.2

3

3

Companybusiness

COD (plants) mg/m 0.1 0.0

Globalenvironmentalprotection

Production intensity (plants) GJ/million m 203 206

Heat sales intensity (district heating and cooling centers) GJ/GJ 2.2 2.1

Energy usage (business offices) 1,000 GJ 952 952

Resourcerecycling

Excavated soil (thousand tons) 485 448

Industrial waste (tons) 3,903 4,137

General waste (tons) 1,213 1,154

Customersites

EnvironmentalR&D

(Reference figures)CO emissions reduction (ten thousand tons CO )

87 152

Recycling ofused gasappliances

(Reference figures)Recovery of used gas appliances and scrap metal by SRIMS(tons)

4,423 4,345

Note:Level of environmental burden is based on environmental performance data.The total and difference figures may not be equal to actual calculation results because the numbers are rounded off to thenearest integer.

3. Economic Effect

(Unit: million yen)

Economic effect FY2012 FY2013 Differentiation amount

Cost reduction from the operation of energysaving equipment 604 744 140

Cost reduction from a reduction in the amount of excavated soil 9,966 11,794 1,828

Sale of valuables 356 403 47

Other (cost reduction from water conservation) 0 0 0

Total 10,926 12,941 2,015

<Main differences from the previous fiscal year>

Economic effect The economic effect increased from the previous fiscal year due mainly to greater cost savings fromreductions in excavated soil. The greater cost savings from reductions in excavated soil are mainly attributable to the cutting ofexcavated soil treatment costs associated with the construction of underground tanks in urban LNGterminals.

3

3

2 2

The total and difference figures may not be equal to actual calculation results because the numbers are rounded offto the nearest integer.

Note:

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