The Tokyo Gas Group's Approach to

Environmental Action

Environmental Protection Guideline

Targets and Results

Results of Efforts in FY2014

Continual Improvement of Environmental

Management System

Measures Taken against Environmental

Risks

Education and Activities to Raise

Employees' Awareness

Global Warming Countermeasures

Promotion of Resource Saving Promotion of Biodiversity Conservation

Promotion of Environmental Technologies

Development

Tokyo Gas Group Business Activities and

Material Balance

Environmental Performance Data (1)

Usage of Energy & Water / Emissions into

the Atmosphere & Water Systems

Environmental Performance Data (2)

Waste

Environmental Accounting

Development and Implementation of Local

Global Warming Action Plans

City Gas CO Emission Factors

Assessment of CO Emission Reduction

due to Reduction of Purchased Electricity

About Third Party Assurance

Link to related page

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As a leader in environmental management, the Tokyo Gas Group will actively promote the protection of

regional and global environments and contribute to the sustainable development of society in line with its

management philosophy to "contribute to the creation of a pleasant lifestyle and environmentally friendly

society as a leading energy company with a focus on the natural gas business."

<Link>Environmental Superiority of Natural Gas

The 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.

1. 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 BusinessOperations 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. Strengthening of 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 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 Philosophy

Environmental Policies

Environmental Protection Guidelines

Tokyo Gas formulated its Environmental Protection Guidelines in fiscal 2000 to establish mid­ and long­

term targets for environmental activities in line with its Environmental Philosophy and Environmental

Policies. In fiscal 2005, the scope of these guidelines was expanded to include subsidiaries and affiliates in

pursuit of environmental action in three core areas: global warming countermeasures, promotion of

resource saving, and promotion of green purchasing. In fiscal 2009, three additional core areas were added

with the aim of creating a low carbon, resource­saving society that coexists with nature: promotion of

biodiversity conservation, promotion of environmental communication, and promotion of environmental

technology development. The guidelines have been revised to assist the realization of the Challenge 2020

Vision announced in fiscal 2011, and we are making a group­wide effort to put them into practice.

Overview Image of Environmental Protection Guidelines

Following the formulation of the Challenge 2020 Vision, Tokyo Gas Group revised its Environmental

Protection Guidelines in 2014 and made fiscal 2020 its target year. The Guidelines for Global Warming

Countermeasures were previously revised in 2012.

Environmental Protection Guidelines (FY2014 Numerical Targets and Results)

Category Environmental ProtectionGuidelines

FY2014 numericaltargets

FY2014 results

FY2015 numericaltargets

Global warmingcountermeasures

Customers'sites

We aim to reduce COemissions at customers' sitesby 8 million tons by fiscal2020. This will be achievedthrough our Group effortsimplemented since fiscal2011 to promote the use ofnatural gas and to developand disseminate gasequipment and systems thathave higher efficiency andlower environmental load.1

Reduce COemissions by 3.00million tons

Reduced COemissions by 3.29million tons

Reduce COemissions by 3.40million tons

Electricpowerbusiness

We aim to achieve a COemission factor of 0.35 kg ­CO /kWh by fiscal 2020 forour electric powerbusiness.2

CO emissionfactor 0.36

CO emissionfactor 0.359

CO emissionfactor 0.36

Businessactivities

(1) We aim to meet anenergy usage intensity target(consumption of primaryenergy per gas productionunit) of 250 GJ/million m atour LNG terminals by fiscal2020.

Energyusageintensity of 210GJ/millionm

Energyusageintensity of 203GJ/millionm

Energyusageintensity of 220GJ/millionm

(2) We aim to meet a heatsales intensity target(consumption of primaryenergy per heat sales unit) of1.19 GJ/GJ at district heatingand cooling centers by fiscal2020.

Heat sales intensity 1.35GJ/GJ

Heat sales intensity 1.34GJ/GJ

Heat sales intensity 1.33GJ/GJ

(3) We aim to meet anenergy usage reductiontarget (primary energy usage)of 910TJ at our offices, etc.by fiscal 2020.

Energyusage 935TJ

Energyusage 896TJ

Energyusage 915TJ

Environmental Protection Guidelines (FY2014 Numerical Targets andResults)

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Promotingthewidespreaduse ofrenewableenergy

We are working to contributeto the realization of a lowcarbon society through effortsto maximize theimplementation of renewableenergy. Such efforts includeproviding products andservices that utilizerenewable energy, supplyingrenewable energy (includingpower generationbusinesses), and promotingboth networked use of energyand energy usage in certainaspects.

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Promotion ofresource saving

Industrialwaste

(1) Production plants withinour Group will maintain zeroemissions (defined as a finaldisposal rate of less than0.1%) until fiscal 2020through the reduction, reuse,and recycling of industrialwaste. 3, 4

Final disposalrate less than0.1%

Final disposalrate 1.2%

Final disposalrate less than0.1%

(2) We will maintain therecycling rate of constructionwaste produced frombusiness activities by ourGroup companies at 98% orabove until fiscal 2020.

Recyclingrate 98% or above

Recyclingrate 97%

Recyclingrate 98% or above

(3) We will achieve therecycling rate of industrialwaste produced at the sitesof our Group companies to90% or above by fiscal 2020.5

Recyclingrate 88% or above

Recyclingrate 85%

Recyclingrate 88% or above

Generalwaste

(1) Our Group companies willwork to reduce the amount ofgeneral waste produced andincrease the recycling rate ofgeneral waste to 75% orabove by fiscal 2020 throughstricter separation of wasteand the promotion ofrecycling.

Recyclingrate 75% or above

Recyclingrate 79%

Recyclingrate 75% or above

(2) We will reduce theamount of copy paper usedby our Group companies by8% relative to the amountused in fiscal 2012 to 132million sheets or less by fiscal2020. 6

Reduction by 1% from previousyear

Reduction by 4.6% from previousyear

Reduction by 1% from previousyear

Excavatedsoil

We are working to reduce,reuse, and recycle (3Rs)excavated soil arising fromroadside construction work Reduce Reduced Reduce

ordered by our company andits subsidiaries and affiliates.Through these efforts, we willmaintain the amount ofexcavated soil at 16% or lessuntil fiscal 2020.7

excavatedsoil to 16% or less

excavatedsoil to 16.7%

excavatedsoil to 16% or less

Promotion of biodiversityconservation

Our Group companies areaware of the importance ofthe benefits born frombiodiversity (ecosystemservice). As such, we work tounderstand and analyze theimpacts our businessactivities have onbiodiversity, and work toimprove our businessoperations, promotingactivities for biodiversityconservation. Moreover, aspart of our social programs,we are also involved inissues concerningbiodiversity, even in areasthat are not related to ourown business activities.

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Promotion of greenpurchasing

(1) Our Group companieswork in concert with ourbusiness partners toward therealization of a low carbonsociety by making effortstoward energy conservationand CO reduction in ourpurchasing activities.

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(2) Our Group companieswork in concert with ourbusiness partners toward therealization of a resourcesaving society through ourpurchasing activities, bymaking efforts to promote the3Rs (reducing wasteproduced, reusing, andrecycling) for gas meters, gaspipes, paper, and otheritems.

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(3) The green purchasingrate for purchases madethrough electronic catalogswill be maintained at 75% orabove until fiscal 2020.8

Greenpurchasingrate of 75%

Greenpurchasingrate of 78%

Greenpurchasingrate of 75%

Promotion of environmentalcommunication

The Tokyo Gas Group workstogether with our customersunder a variety of programsto create the kind of eco­

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friendly and happy lifestylesthat are desired for asustainable future. (1) We work with localcommunities through ourenvironmental contributionactivities and provideinformation on easy ways toconserve energy, thushelping to realize anenvironmentally friendlylifestyle together with ourcustomers.

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(2) We are communicatingwith stakeholders, includingfuture generations, to helpthem learn about theimportance of energy and theenvironment, how they relateto each person, and how theTokyo Gas Group contributesto environmental protection.

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(3) We are fosteringenvironmental consciousnessamong Tokyo Gas Groupemployees and their families,and encouraging them towork toward environmentalconservation in their offices,homes, and communities.

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Promotion of environmentaltechnologies development

We will accelerate thedevelopment of innovativeenvironmental technologiesin the fields of fuel cells,renewable energy, and in themanagement of hydrogenand CO , and will promotethe expansion of a smartenergy network.

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Notes:

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Reduction of CO emissions through "Global warming countermeasures at customers' sites" has been calculated in thecategories of cogeneration (including ENE­FARM) installation, enhanced efficiency of gas equipment, fuel switching, anddiffusion of power generation from natural gas power plants. Reduction effects of cogeneration and the increase of powergeneration from natural gas power plants were calculated with a marginal emission factor (0.69kg­CO /kWh, 0.65kg­CO /kWh).

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

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"Production plants" refer to sites that produce city gas and other products, district heating and cooling centers, and powerplants.

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Under the new guidelines, "zero emission" is defined as a final disposal rate of less than 0.1%, where the final disposal rateis obtained by dividing the amount of waste disposed of by landfill by total emissions of industrial waste by production plantsper year. However, asbestos and other non­recyclable industrial waste are excluded.

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Sites refer to our business locations except for production plants and construction work sites. Construction work on mainand branch supply pipelines, for which orders are placed by Tokyo Gas and received by its subsidiaries and affiliates,produces a large amount of industrial waste, most of which is recycled. This has therefore been excluded from this category.

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Amount of copy paper sheets is calculated based on A4­sized paper.6

Ratio of actual surplus soil disposed of against baseline when compared to that from conventional construction methods.7

Subject items consist of all items purchased through electronic catalogs, including office supplies, office furniture, office8

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 CO emissions at customers' sites far exceeds that from ourbusiness operations. Thus, reducing the amount of CO emissions at customers' sites is the utmostimportance, and our targets have been established accordingly.Regarding the CO emissions from our own business operation, our primary goal is to reduce theenergy usage intensity of city gas production at our LNG terminals, which have the highest energyusage. We also reduce absolute emissions from energy usage at our offices, etc. Targets have alsobeen set for reducing CO emission factors and the heat sales intensity of power generation andheating and cooling business.

Guidelines for Promotion of Resource SavingThe gas industry is involved in three waste management fields: industrial waste, general waste, andexcavated soil.In particular, industrial waste is managed by: efforts to achieve zero emissions targets at productionplants of Tokyo Gas Group, and by promoting the 3Rs (Reduce, Reuse, Recycle); and efforts toenhance recycling rate of industrial waste generated from locations other than those 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 and thatfrom offices and other locations.When conducting construction work of gas pipeline, roads and other surfaces must be drilled, whichresults in the generation of excavated soil (soil, asphalt concrete, etc.). Thus, we are involved in effortsto reduce, reuse, and recycle in order to reduce the amount of excavated soil generated.

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 environmentalburden in upstream activities through the promotion of green purchasing. Among our efforts, we areindexing and controlling the green purchasing rate targeting overall purchases from electronic catalogs(however, this excludes difficult to acquire eco­friendly items such as tools, safety items, and physicsand chemistry equipment).

fixtures, business cards, envelopes, and printed materials (but excluding tools, safety items, laboratory instruments, etc.).Calculation was made based on the purchase amount.

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Global warming countermeasures at customers´ sites 1

The amount of CO emissions reduction at customers' sites amounted to 3.29 million tons thanks to the

promotion of natural gas use and the development and popularization of more efficient and environmentally

friendly gas appliances such as Eco­JOES and cogeneration systems. Increased use of gas to generate

electricity due to the spread of natural gas power generation made an especially significant contribution to

reduced emissions, allowing us to achieve our target.

Global warming countermeasures in our electric power business2

Power demand has remained high since the 2011 Great East Japan Earthquake, and a decline in the

emission factor resulting from increased output against previous year by high­efficiency power plants has

enabled us to achieve our target.

Guidelines for Global Warming Countermeasures (Results of Efforts inFY2014)

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Reduction of CO Emissions at Customers' Sites2

Global warming countermeasures in our business activities(1) Global warming countermeasures at LNG terminals

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

CO Emission Factor in the Electric Power Business2

We achieved our target in fiscal 2014 through the promotion of energy­efficient operation. However, energy

usage intensity is expected to increase toward fiscal 2020 due to a rise in gas supply pressure to meet

growing gas demand.

Energy Usage Intensity at LNG Terminals

We achieved our target as a result of equipment renewal based on our studies on optimal systems for eachdistrict heating and cooling center.

(3) Global warming countermeasures in Tokyo Gas offices, etc.

Promoting the widespread use of renewable energy

We are verifying the effectiveness of using renewable energy through our efforts to create a smart energy

network, as demonstrated at the Senju Smart Energy Network and Isogo Smart House (Yokohama Smart

City Project), and are applying it to other redevelopment projects. The input and injection of biogas derived

from food waste into city gas is taking place as well. In fiscal 2014, we received 775 thousand m of biogas

(amounting to a CO reduction of about 1,300 tons).

Heat Sales Intensity for District Heating and Cooling Centers

We achieved our target thanks in large part to installation of energy­efficient equipment and implementationof energy conservation measures, assisted by lower than usual summer temperatures.

Energy Usage at Offices, etc.

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Reduction of CO emissions through "Global warming countermeasures at customers' sites" has been calculated in thecategories of cogeneration (including ENE­FARM) installation, enhanced efficiency of gas equipment, fuel switching, anddiffusion of power generation from natural gas power plants. Reduction effects of cogeneration and the increase of powergeneration from natural gas power plants were calculated with a marginal emission factor (0.69kg­CO /kWh, 0.65kg­CO /kWh).

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

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Promoting Resource Saving of Industrial Waste(1) Efforts toward zero emissions at production plants3

Industrial Waste Final Disposal Rate at Production Plants

(2) Efforts to recycle construction waste and industrial waste generated at our offices

Efforts to Recycle Construction Waste and Industrial Waste Generated at Our Sites

Promoting Resource Saving of General Waste

Guidelines for Promoting Resource Saving (Results of Efforts in FY2014)

In fiscal 2014, the definition of "zero emission" was revised downward from a final disposal rate of under

1% to a rate of under 0.1%, and efforts were made to increase recycling. Despite lower emissions than a

year earlier, however, certain materials could not be recycled under our contracts with landfill disposal

contractors, and the final disposal rate remained at 1.2%.

We will continue our efforts to reduce the final disposal rate.

Construction waste

In fiscal 2014, we failed to meet the new target rate set this year for recycling construction waste, due to

increased emissions of non­recyclable waste during LNG terminal construction. We will continue to

work to reduce emissions and increase recycling.

Industrial waste at our sites 4

Although generation amount in fiscal 2014 was down from a year earlier, some materials could not be

recycled under our contracts with landfill disposal contractors and the recycling rate for the year was

below target. We will continue our efforts to reduce generation amount and recycle more.

Promoting Resource Saving of General Waste(1) Efforts to separate and recycle general waste

We recycled 79% of our general waste in fiscal 2014, exceeding the new target rate for the year of 75% or

over. (As in the previous fiscal year, we succeeded in recycling 95% of our paper waste.) Alongside more

rigorous sorting of waste for recycling, employees are becoming more aware of the importance of cutting

emissions and recycling more. We will continue to work to maintain and raise the recycling rate for general

waste as a whole.

(2) Efforts to reduce usage of copy paper

We achieved our target by cutting copy paper usage by 4.6% from the previous fiscal year. We are

continuing to practice the 3Rs by replacing paper documents with electronic ones (by, for example,

scanning, promoting paperless meetings, and making it easier for employees to keep a visual track of their

paper usage).

We will continue to reduce copy paper usage in order to achieve the challenging target set for fiscal 2020.

Promoting Resource Saving of Excavated SoilPromoting the 3Rs for excavated soil from gas pipeline construction

We were unable to meet our target in fiscal 2014 due to increased replacement of age­deteriorated branch

pipes in the metropolitan areas and work in areas where pit sand recycling was not feasible. We will

continue to pursue the reduction of excavated soil by means of shallower laying of pipes in narrower

trenches and non­open­cut construction methods. We will also continue our efforts to obtain approval from

and negotiate a relaxation of conditions with authorities who have not yet approved reburial of generated

soil and the use of improved soil and recycled road surface materials, in order to further reduce the amount

of soil excavated in gas pipeline construction works.

General Waste Generation and Recycling Rate

Copy Paper Usage and Reduction Rate 5

Making efforts at every stage, from natural gas procurement and production to distribution andmaintenance at customers´ sites

Efforts in FY2014

We work to protect biodiversity throughout the Group's value chain. Specifically, the following concrete

activities were pursued at the LNG import and production stages: environmental impact assessments at

gas fields, management of ballast water from LNG carriers, research on the ecosystems of green areas at

LNG terminals, and reduction of pit sand use through reduction, reuse, and recycling of excavated soil

produced during pipeline construction. We also continued our forest preservation activities and habitat

surveys at Nagano Tokyo Gas Forest.

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

Efforts in FY2014

All multi­function printers were replaced at our Hamamatsucho Head Office through a competitive tender

process that required proposals to meet specifications in seven categories of environmental friendliness,

resulting in the adoption of highly energy­efficient models. We also continued our efforts to reduce delivery

distances through batch delivery of construction materials.

Contributing to the realization of a resource­saving society through purchasing activities

Ratio of Actual Surplus Soil Disposed of Against Baseline in Gas Pipeline Construction 6

"Production plants" refers to sites that produce city gas and other products, district heating and cooling centers, and powerplants. Waste generation here excludes asbestos and other non­recyclable industrial waste.

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"Our sites" refers 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 and affiliates,produce a large amount of industrial waste, most of which is recycled. This has therefore been excluded from this category.

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Amount of copy paper sheets is calculated based on A4­sized paper.5

"Disposal ratio" refers to the rate of actual surplus soil disposed of against baseline.6

Guidelines for Promoting Biodiversity Conservation (Results of Effortsin FY2014)

Guidelines for Promoting Green Purchasing (Results of Efforts inFY2014)

Contributing to the realization of a resource­saving society through purchasing activitiesconducted in concert with our business partners

Efforts in FY2014

675 thousand (53%) of the 1,275 thousand meters newly installed were reused, reducing waste by 2,809

tons, while 100% of waste gas pipes were recycled. We are also continuing efforts to recycle waste paper

generated by our company into paper for printing and other uses through the Tokyo Gas Recycled Paper

Program.

Green purchasing rate for purchases through electronic catalogs 7

We achieved our target with a green purchasing rate of 78%. This was thanks to a combination of

measures, including promoting the placement of environmentally friendly items in electronic catalogs,

system modifications to give priority to environmentally friendly products in searches, and data disclosure

by sector. As of the end of fiscal 2014, 15,749 items had been registered as environmentally friendly.

Environmental Activities at the Local Community Level

We provided information on the Group's activities and suggested ways to save energy in everyday life

through a variety of channels, including participation in environmental events organized by local

governments, presentations on environmental topics at universities and other institutions, and publishing

information on our website.

We also aided NPOs and other organizations through the Tokyo Gas Environment Support Fund, passed

on environmentally friendly dietary tips through our "Eco­Cooking" program, and contributed to the creation

of community green spaces through the Tokyo Gas Tree Planting Project.

Education on energy and the environment for the next generation

Tokyo Gas employees taught special classes in elementary and junior high schools (1,134 classes

reaching 34,190 pupils) and we further provided support for energy and environmental education provided

by teachers (training for 1,273 teachers). We launched our employee­taught special classes in 2002, and

the total number of participating pupils reached the million mark in January 2015. We have also allocated a

greater role to our Gas Science Museum as a center for energy and environmental education, and have

Green Purchasing Rate

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.

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Guidelines for Promoting Environmental Communication (Results ofEfforts in FY2014)

launched two new field trip courses: one on the environment and one on energy.

At the Nagano Tokyo Gas Forest, we continued to offer our "Donguri (Acorn) Project," an outdoor

environmental education program.

Through all these activities, we helped provide the children upon whom the future depends with enhanced

opportunities to learn about energy and the environment.

Cultivating environmental consciousness among Tokyo Gas Group employees and their families

We provided a range of programs for Tokyo Gas Group employees, including environmental education,

symposiums, and eco­driving courses.

We also continued our Environmental Program Promotion Award acknowledging the environmental

contributions of Tokyo Gas Group members and business partners, and "family environment classes" for

employees and their families. Through these initiatives, we have cultivated environmental consciousness

among Tokyo Gas Group employees and their families, and encouraged environmentally friendly practice

in the home and in communities.

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

We have promoted technological development in the fields of fuel cells, renewable energy, hydrogen and

CO management, and smart energy networks. To make hydrogen widely available at hydrogen stations as

a promising next­generation energy source, we are developing technologies for low­cost hydrogen

production.

Guidelines for Promoting the Development of EnvironmentalTechnologies (Results of Efforts in FY2014)

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In order to promote environmental protection activities in line with our Management Philosophy, Corporate

Action Philosophy, Our Code of Conduct, and our Environmental Policies, Tokyo Gas has developed and is

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

standard. We are able to systematically conduct a variety of environmental efforts by ensuring that we

follow the PDCA cycle. These efforts include saving resources and energy, which has the additional benefit

of reducing costs. Furthermore, promoting business operations that meet the ISO standard makes

employees more aware of the environment and ensures compliance with the law. And by keeping related

records of these systematic efforts, we enhance the transparency of the Company, thereby increasing the

trust placed in us by our stakeholders.

We have introduced EMS practice, including certification to ISO and Eco­Action 21 standards, at

consolidated subsidiaries and affiliates and other group companies that have a major impact on the

environment in order to enhance environmental management throughout the Group. Looking ahead, we will

explore new arrangements for practicing EMS as we construct our new group formation.

Status of implementation of Environmental Management System by Tokyo Gas and its consolidatedsubsidiaries (April 1, 2015)

Tokyo Gas Co., Ltd. [ISO]

Environmental Management System 2015

Efforts of the Group

<Residential Sales and Service Division>Living Engineering Co., Ltd. / Tokyo Gas Remodeling Co., Ltd. / Tokyo Gas Lease Co., Ltd. / Tokyo GasTelemarketing Co., Ltd. / Gastar Co., Ltd. (Residential Sales and Service Division) [ISO] / Tokyo Gas LivingLine Co., Ltd. / Tokyo Gas Lifeval Kazusa Co., Ltd. / Tokyo Gas Lifeval Minami­Setagaya Co., Ltd. / TokyoGas Lifeval Chiba Co., Ltd. / Capty Co., Ltd. (Residential Sales and Service Division) [ISO]

<Energy Solution Division>Gastar Co., Ltd. (Energy Solution Division) [ISO] / Tachikawa Toshi­Center Co., Ltd. / Capty Co., Ltd.(Energy Solution Division) [ISO]

<Regional Development Marketing Division>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. / NaganoToshi Gas Co., Ltd. [ISO] / Tokyo Gas Yamanashi Co., Ltd. / Showa Unyu Co., Ltd.

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

<Regasification & Power Generation Division>Tokyo Gas Baypower Co., Ltd. (Sodegaura Power Station) [ISO] 2 / Tokyo Gas Yokosuka Power Co., Ltd./ Ohgishima Power Co., Ltd.

<Energy Resources Division>Tokyo LNG Tanker Co., Ltd. [ISO] 2

<IT Division>TG Information Network Co., Ltd.

<Other>Tokyo Gas Engineering Solutions Corporation / Tokyo Gas Communications, Inc. / Tokyo Gas AutoService Co., Ltd. / Tokyo Gas Urban Development Co., Ltd. [ISO] ♯1 / Tokyo Gas Facility Service Co., Ltd.[ISO] ♯2 / Tokyo Gas Site Development Co., Ltd. / Tokyo Gas Chemicals Co., Ltd. / Tokyo Oxygen AndNitrogen Co., Ltd. / Tokyo Carbonic Co., Ltd. / Tokyo Rare Gases Company, Ltd. / Japan Super FreezeCo., Ltd. [ISO] / Niccho Operation Co., Ltd.3 / Park Tower Hotel Co., Ltd. / Nijio Co., Ltd.2 (Total of Tokyo Gas Co., Ltd. and 46 consolidated subsidiaries in Japan)

[ISO] ISO14001:2004 certification

In fiscal 2014, as a result of conducted audit in 49 divisions in accordance with the categories listed in the

internal audit plan, "Non Conformity" was not found in any of those as required by the ISO14001:2004

standard, and the EMS was found to be in effective.

Included in the EMS activities of Capty Co., Ltd.1

Included in the EMS activities of Tokyo Gas 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

In addition to ISO­compliant EMS, the Group has an EMS program for subsidiaries and affiliates developed by Tokyo Gas, aLIFEVAL EMS program, and EMS programs developed independently by individual group companies.

Result of Internal Audit

Tokyo Gas believes that being actively involved in both regional and global environmental issues is an

important aspect of our corporate management, and we are conducting our business activities as such. We

take our own initiative to research and announce the environmental impact and pollution levels of our

operations in the past, and believe that we must take swift action against any concerns that arise in order to

protect our environment.

We also make efforts to identify potential environmental risks and take appropriate actions to prevent

causing significant environmental harm.

When performing gas pipeline construction work that results in the emission of designated construction

materials (such as asphalt concrete) and has a contract value of at least 5 million yen, we separate,

demolish, and recycle materials further to filing prior notification with the competent authorities in

compliance with the Act on Recycling of Construction­Related Materials ("Construction Material Recycling

Act"). However, following the discovery in March 2015 that notifications had not been filed for some work

for which notification was required under the Construction Material Recycling Act, we reported the fact to

the competent authorities in April 2015. Regarding the work for which notification was not filed, we are

further confirming that materials were properly separated, demolished, and recycled.

To prevent a recurrence, we will strengthen training in notification in compliance with the Construction

Material Recycling Act, and bolster arrangements for checking that system improvements have been made.

Since fiscal 1999, we have been conducting soil tests on all land currently or formerly owned by us on

which soil contamination may have occurred, such as the sites of old plants. When contaminants have

been found, we have proactively released the relevant information through a variety of methods, including

reporting the issue to the relevant local authority, informing the media, and explaining the situation to local

residents. The revised Soil Contamination Countermeasures Act came into force in 2010, and we will

continue to abide by the applicable laws and ordinances in a responsible manner. Press releases related to

soil contamination 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.

Conditions of Compliance to Environmental Regulations

Measures Taken for Soil Remediation

Management of Chemical Substances

Response to the PRTR Act

In fiscal 2014, Tokyo Gas handled or otherwise dealt with the following amounts of substances subject toreporting under the PRTR Act.

(Unit: kg)Substance Amount handled Release Transfer Remarks

Xylene 4,338 0.1 0.0 Atmospheric release (from refueling)

1,2,4­Trimethylbenzene 2,215 0.0 0.0 Atmospheric release (from refueling)

Toluene 9,431 0.5 0.0 Atmospheric release (from refueling)

N­hexane 2,786 1.0 0.0 Atmospheric release (from refueling)

PCB Measures

Waste owned by Tokyo Gas that contains PCBs is collectively stored at the Negishi LNG Terminal and

other sites, and managed appropriately in accordance with the Act on Special Measures concerning

Promotion of Proper Treatment of PCB Wastes. Items such as high PCB­contaminated high voltage

transformers and capacitors and low PCB­contaminated waste are processed properly in line with

administrative processing schedules and policies. Although the processing period and methods have yet to

be determined, we will appropriately dispose of high PCB­contaminated capacitors of less than 3 kg and

ballast over time.

Disposal of PCB Waste in FY2014

Substance Disposal amount

High PCB­contaminated capacitors 31 units

Low PCB­contaminated high voltage transformers 1 unit

Low­concentration scrapings 53 drums

The amount of fluorocarbons recovered during procedures such as maintenance of GHP products totaled152.42 kg, and 152.42 kg was destroyed.

VOC Measures

Since 1991, Tokyo Gas has been working on reducing VOCs (volatile organic compounds) emission when

painting items such as gas holders. Recent efforts include the transition to a painting method that uses

weak solvent­based paints (low VOC paint method). We will continue to work on further VOCs emission

reduction.

Response to the PRTR Act

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

Measures for Fluorocarbons

Amount of Fluorocarbons Recovered and Destroyed (FY2014) (Unit: kg)

Recovered Destroyed

HCFC (Hydrochlorofluorocarbons) 2.0 2.0

HFC (Hydrofluorocarbons) 150.42 150.42

Total 152.42 152.42

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.

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

Paintwork on gas holder

Water Management

We systematically conduct a variety of educational and awareness­raising activities through our

environmental education system and give high priority to training leaders to organize environmental

management and environmental communication activities. As well as providing education to enhance

necessary expertise and gain skills geared to acquiring ISO 14001 certification, we also organized

awareness­raising activities for all Tokyo Gas Group employees to make them more eco­conscious.

We are also emphasizing the intranet as an information channel, providing more content to explain our

measures to combat global warming and reduce waste emissions, along with information on social trends,

legislation, and other topics.

Level­specific training

Participants in our training for new employees learned in greater depth about the company's environmental

initiatives, and considered what it means to act in an environmentally friendly manner as full­fledged

members of society. E­learning training was also included in our mid­career training.

Awareness raising

We organize a variety of workshops and other events coinciding with Environment Month and similar

occasions to raise environmental awareness among group employees.

In fiscal 2014, we held an environmental seminar during Environment Month in June. Dr. Seita Emori of the

National Institute for Environmental Studies delivered a special lecture on the theme of "Climate Change

Environmental Education and Awareness Raising

Main Environmental Education Programs in FY2014

Programs Date

Ordinary employees: awarenessraising

Eco­Family Program August

Eco­Driving Course (e­learning) Year­round

Eco­Driving Course (behind the wheel)September­

October

General environmental basic education for ISOcompliance

April

Environmental workshops and informationsharing via the intranet

Year­round

Environmental personnel: educationto enhance expertise

ISO personnel training May/January

Waste personnel training Year­round

Environmental facility tours October/February

Environmental­related law workshop January

Eco­Cooking instructor training program May/June

Level­specific training

Training for new employees April/May

Mid­career training August

Training for new managers (wastemanagement, EMS)

May

Risks and Humanity's Options: The Latest Report of the IPCC," and the results of the 11th questionnaire

survey on environmental awareness conducted by the Environmental Affairs Department were also

reported.

Furthermore, as part of our Eco­Family Program for group employees and their families, we have

organized a program on the theme of biodiversity to learn how wildlife and nature relate to our own lives in

association with the Center for Ecological Education, an NPO.

Environmental personnel training

Training for ISO personnel, environmental­related law workshops, and education on waste management

were organized to maintain and raise the level of our environmental management. Among other activities,

we arranged "3R facility" tours for environmental personnel from Tokyo Gas and our subsidiaries, affiliates,

and partner companies during 3R Month, as well as tours of cutting­edge environmental and energy­saving

facilities at other companies during Energy­Saving Month.

Surveys on environmental awareness

We have conducted surveys since 2001 to continuously track the state of environmental awareness among

group employees, the state of eco­friendly practice in the workplace and the home, and the depth of

knowledge about Tokyo Gas's action on the environment.

The results of the fiscal 2014 survey, which drew 10,851 respondents, are helping us to raise employees'

environmental awareness and improve our educational programs.

Rewarding significant environmental contribution activities (Environmental Program PromotionAward)

Launched in fiscal 2009, the Environmental Program Promotion Awards recognize the efforts of

companies, departments, and individuals belonging to the Group or business partners who have

contributed to the Group's action on the environment in four areas: environmental improvement relating to

the Group's business, eco­office activities, environmental social action programs, and environmental

activities in daily life. (The program's forerunner, the Environment Committee Chairman's Awards, was

established in fiscal 1999.)

Special lecture: "Climate Change Risks andHumanity's Options: The Latest Report of theIPCC" by Dr. Emori

Families in the Eco­Family Program listen forinvasive insect calls

Tokyo Gas Group's Environmental Contribution Award System

In fiscal 2014, awards were presented to 16 out of a total of 34 entrants, with best awards going to two of

the 16. In October, a case study presentation was held at which the 6th Environmental Program Promotion

Awards recipients introduced their award­winning activities.

Presentation by Kyoshin Giken Co., Ltd. Presentation by Suzuko Gumi Co., Ltd.

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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2 2

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).

1

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

2

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.

1

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.

2

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

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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

Category Unit FY2010 FY2011 FY2012 FY2013 FY2014

Number of Customers (Note)

thousands 10,739 10,855 10,978 11,111 11,263

Number of ConsolidatedSubsidiaries

companies54 53 51 51 49

Feedstock and Production

Category Unit FY2010 FY2011 FY2012 FY2013 FY2014

City gasfeedstock (Note 1)

FeedstockLNG

thousandtons

10,193 10,531 10,760 11,057 11,513

FeedstockLPG

thousandtons

327 321 368 418 441

Production City gassales (Note 2)

millionm 13,765 14,160 14,211 14,527 15,358

Heat sales(Note 3)

TJ 3,771 3,282 3,282 3,353 3,287

Powersales (Note 4)

billionkWh 7.04 8.27 9.98 9.71 10.61

Companies included in the data (Tokyo Gas and ConsolidatedSubsidiaries) Companies included in the data.(PDF:24KB)

Number of customers of Tokyo Gas and its consolidated subsidiaries in Japan.Note:

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

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Energy Usage 1,2

Category Unit FY2010 FY2011 FY2012 FY2013 FY2014

Energyusage

(Note 1) TJ 52,731 56,245 62,565 60,457 66,399

LNG terminals TJ 3,724 3,789 3,818 3,894 4,069

District heatingand coolingcenters

TJ5,170 4,559 4,513 4,361 4,167

Power plants TJ 40,933 45,289 51,745 49,733 55,639

Tokyo Gasbusiness offices,etc.

TJ1,588 1,494 1,469 1,453 1,417

Other groupcompanies

TJ1,775 1,681 1,536 1,541 1,490

(Tokyo Gas non­consolidated)

TJ5,725 5,588 5,586 5,638 5,785

Electricpower (Note 2)

　 MWh 575,752 543,186 542,724 545,218 593,097

LNG terminals MWh 286,329 289,115 298,742 304,788 334,229

District heatingand coolingcenters

MWh88,632 72,585 76,975 76,446 90,973

Power plants MWh 11,181 16,055 13,263 10,732 8,774

Tokyo Gasbusiness offices,etc.

MWh65,995 55,405 55,022 54,499 52,350

Other groupcompanies

MWh138,603 131,163 118,785 118,673 115,677

(Tokyo Gas non­consolidated)

MWh359,810 350,876 359,707 364,971 391,536

City gas thousandm3

1,087,174 1,177,796 1,324,428 1,275,444 1,402,022

LNG terminals thousandm

21,620 22,496 20,978 21,378 18,769

For city gas production by Tokyo Gas Group.Note 1:

Volume of gas sales by Tokyo Gas Group including supply to other gas utilities.Note 2:

Includes sales volume from LNG terminals, in addition to district heating and cooling center and spot heat supply. Alsoincludes intra­group supply.

Note 3:

Volume of sales of all electric power, including power purchased for business use from other companies and the marketas well as Group power stations.

Note 4:

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District heatingand coolingcenters

thousandm3 98,567 87,713 85,647 82,570 74,482

Power plants thousandm3

946,045 1,047,873 1,198,427 1,152,267 1,289,852

Tokyo Gasbusiness offices,etc.

thousandm3 18,891 17,699 17,149 16,900 16,726

Other groupcompanies

thousandm3

2,052 2,015 2,228 2,328 2,192

(Tokyo Gas non­consolidated)

thousandm3

46,246 45,630 43,542 43,837 40,994

Heat (Note 2)

　 TJ 29 25 24 31 38

District heatingand coolingcenters

TJ92 105 104 176 203

Tokyo Gasbusiness offices,etc.

TJ94 86 88 89 85

Other groupcompanies

TJ226 205 165 167 158

(Tokyo Gas non­consolidated)

TJ113 102 102 99 94

Otherfuels

　 kL 136 126 119 139 135

LNG terminals kL 7 4 5 5 6

Tokyo Gasbusiness offices,etc.

kL25 17 7 16 16

Other groupcompanies

kL104 105 107 118 113

(Tokyo Gas non­consolidated)

kL32 21 12 21 22

Fuel forvehicles

Gasoline kL 3,360 3,449 3,634 3,571 3,282

(Tokyo Gas non­consolidated)

kL1,517 1,465 1,494 1,461 1,425

Diesel oil kL 232 206 243 228 219

(Tokyo Gas non­consolidated)

kL36 35 36 37 35

City gas thousandm3

292 297 237 218 203

(Tokyo Gas non­consolidated)

thousandm3

247 257 201 185 172

LPG kL 341 273 274 295 280

(Tokyo Gas non­consolidated)

kL― ― ― ― ―

LNGcryogenicenergy

　

thousandtons

1,991 2,504 2,487 2,659 2,289

Cryogenic powergeneration

thousandtons

525 816 696 796 460

Portion sent tosubsidiaries andaffiliates

thousandtons 839 769 818 821 853

BOG treatment,etc.

thousandtons

627 918 973 1,042 976

Water Usage

Category Unit FY2010 FY2011 FY2012 FY2013 FY2014

Tap waterandindustrialwater

thousandm3

5,700 5,273 5,647 6,023 5,751

LNG terminals thousandm3

1,480 1,271 1,460 1,542 1,662

District heatingand coolingcenters

thousandm3 1,995 1,628 1,711 1,597 1,439

Power plants thousandm3

1,243 1,437 1,504 1,890 1,703

Tokyo Gasbusinessoffices, etc.

thousandm3 603 554 595 607 572

Other groupcompanies

thousandm3

379 383 376 387 375

(Tokyo Gasnon­consolidated)

thousandm3 2,138 1,880 2,111 2,192 2,276

Seawater LNG terminals thousandm3

701,643 765,369 791,092 795,227 784,406

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

Excludes double counting by intra­group supply.Note 2:

Emissions into the Atmosphere

Category Unit FY2010 FY2011 FY2012 FY2013 FY2014

Greenhousegas

CO2

1,3

(Note 1) thousandtons ofCO2

2,616 2,795 3,154 3,074 3,376

LNGterminals (Note 2)

thousandtons ofCO2

160 160 180 200 210

Districtheating andcoolingcenters (Note 3)

thousandtons ofCO2 250 231 225 223 213

Power plants (Note 4)

thousandtons ofCO2

2,078 2,297 2,627 2,522 2,823

Tokyo Gasbusinessoffices, etc. (Note 5)

thousandtons ofCO2

81 71 72 75 73

Other groupcompanies (Note 6)

thousandtons ofCO2

80 75 76 81 77

(Tokyo Gasnon­consolidated)(Note 7)

thousandtons ofCO2

257 246 268 290 298

CH4 (Note 8) thousandtons ofCO2

equivalent

7 3 3 4 6

NOx 　 tons 310 290 264 272 272

LNGterminals (Note 9)

tons14 13 12 14 14

Districtheating andcoolingcenters

tons 69 61 62 59 53

Power plants tons 205 200 175 182 187

Tokyo Gasbusinessoffices, etc. (Note 9)

tons

22 16 16 17 18

(Tokyo Gasnon­consolidated)

tons37 30 29 32 32

Emissions into Water Systems

Category Unit FY2010 FY2011 FY2012 FY2013 FY2014

Wastewater 　 thousandm3

1,147 1,187 1,154 1,106 1,116

LNG terminals (Note 1)

thousandm3

379 372 274 242 265

District heatingand coolingcenters

thousandm3 394 361 398 321 325

Power plants thousandm3

374 454 483 544 525

(Tokyo Gasnon­consolidated)

thousandm 389 381 284 249 273

COD tons 1.6 1.7 1.7 1.9 1.9

LNG terminals tons 1.4 1.3 1.4 1.2 1.2

Power plants tons 0.2 0.3 0.3 0.6 0.6

Excludes double counting by intra­group supply. Totaling 3,381 thousand tons (based on adjusted emission factors) forthe Tokyo Gas Group overall. Breakdown: CO emissions for SCOPE 1 total 3,077 thousand tons; CO emissions for SCOPE 2 total 305 thousandtons

Note 1:

2 2

215 (based on adjusted emission factors)Note 2:

212 (based on adjusted emission factors)Note 3:

2,823 (based on adjusted emission factors)Note 4:

73 (based on adjusted emission factors)Note 5:

77 (based on adjusted emission factors)Note 6:

304 (based on adjusted emission factors)Note 7:

About 275 tons of CH emissionsNote 8: 4

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

3

(Tokyo Gasnon­consolidated)

tons1.4 1.3 1.4 1.2 1.2

Greenhouse Gas Emissions from Feedstock Procurement

Category Unit FY2012 FY2013 FY2014

LNG procured million tons 12.71 12.80 13.97

Greenhouse gas (CO2

equivalent) (Note)Extraction million tons of

CO20.56 0.57 0.62

Liquefaction million tons ofCO2

5.80 5.84 6.38

Marinetransport

million tons ofCO2

1.37 1.38 1.50

CO2 Emissions and Emissions Reduction at Customers´ Sites

Category Unit FY2005 FY2011 FY2012 FY2013 FY2014

CO2 Total amount million tons ofCO2

25.80 26.94 27.09 27.67 29.36

Amount ofreduction relative toFY2005 (Note)

million tons ofCO2

Base 1.28 − − −

Amount ofreduction relative toFY2011 (Note)

million tons ofCO2

− Base 0.87 1.52 3.29

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

Calculated based on greenhouse gas emission intensity throughout the lifecycle from natural gas extraction to processingand transport, which was analyzed with an LCA method, where emission intensity is 0.81 for extraction, 8.36 forliquefaction, and 1.97 g­CO /MJ (in gross calorific value) for marine transport.

Note:

2

Results from fiscal 2011 represent the amount of reduction based on results from fiscal 2005. Upon review of theGuidelines, results from fiscal 2012 onward are based on results from fiscal 2011.

Note:

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

Category Unit FY2010 FY2011 FY2012 FY2013 FY2014

Transportation amount million tons­km

78.77 82.91 81.32 93.12 94.59

Energy usage (crude oilequivalent)

kL3,028 3,172 3,109 3,258 3,275

Energy usage intensity kl/milliontons­km

38.4 38.3 38.2 35.0 34.6

Conversion Factor, etc.

CO2 Emission Factor

Category Unit FY 2010

FY 2011

FY 2012

FY 2013

FY 2014

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

kg­CO2/m3

2.21

Purchased electricity (average of all powersources) (Note 2)

kg­CO2/kWh 0.384 etc.

0.464etc.

0.525etc.

0.530etc.

Heat (Note 3)

Steam (excluding industrial use),hot water, cold water

kg­CO2/MJ

0.057

Industrial steam kg­CO2/MJ

0.060

Other fuels (Note 3)

Heavy oil A kg­CO2/L 2.71

Diesel kg­CO2/L 2.58

Kerosene kg­CO2/L 2.49

Gasoline kg­CO2/L 2.32

LPG kg­CO2/kg

3.00

Unit Calorific Value

Category Unit FY 2010

FY 2011

FY 2012

FY 2013

FY 2014

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

MJ/m3N 45.00

Purchasedelectricity (Note 2) 4

Daytime electricity MJ/kWh 9.97

Nighttime electricity MJ/kWh 9.28

Other than general electricityutilities

MJ/kWh9.76

Heat (Note 2)

Steam (excluding industrial use),hot water, cold water

MJ/MJ1.36

Industrial steam MJ/MJ 1.02

Amount of CO emissions from cargo transportation in fiscal 2014 totaled 8,615 tons.Note: 2

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 by theAct on Promotion of Global Warming Countermeasures.

Note 2:

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

Note 3:

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

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

For district heating and cooling centers that sell power using Combined Heat and Power (cogeneration), the amount ofenergy usage is divided between those for heat production and those for power generation using the allocation factorcalculated based on the Act on Promotion of Global Warming Countermeasures. Data for energy used to produce heat isreflected in "District heating and cooling centers," and data for energy used for power generation is reflected in "Powerplants." Data for "Tokyo Gas business offices, etc." does not include energy used for LNG terminals and district heating andcooling centers. "Other group companies" refers to data on group companies excluding district heating and cooling centers,and power plants.

1

Some variance in the data listed under different categories may exist since the data has been processed to properly assessthe changes in energy usage intensity for each business activity (such as by reflecting the amounts commissioned by othercompanies at LNG terminals).

2

CH (methane) emissions were converted to CO emissions by multiplying by the global warming potential of 21, asstipulated in the Act on Promotion of Global Warming Countermeasures.

3 4 2

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.

4

Industrial Waste 1

Category Unit FY2010 FY2011 FY2012 FY2013 FY2014

Industrial waste2 Generation tons 131,568 118,733 117,832 122,705 130,193

Amountrecycled

tons128,594 116,478 114,994 119,039 124,975

Finaldisposal

tons1,580 1,167 1,956 2,450 3,714

Recyclingrate

%98 98 98 97 96

Finaldisposalrate

%1 1 2 2 3

Productionplants (group)

Generation tons 1,371 1,213 1,254 1,476 1,330

Amountrecycled

tons1,297 958 1,089 1,062 925

Finaldisposal

tons11 1 0 2 16

Recyclingrate

%95 79 87 72 70

Finaldisposalrate

%1 0 0 0 1

Constructionwork 2 (group)

Generation tons 127,209 114,060 113,451 118,111 125,816

Amountrecycled

tons124,843 112,543 111,160 115,303 121,455

Finaldisposal

tons1,396 1,016 1,820 2,258 3,472

Recyclingrate

%98 99 98 98 97

Finaldisposalrate

%1 1 2 2 3

Businessoffices, etc.(group)

Generation tons 2,988 3,460 3,128 3,118 3,046

Amountrecycled

tons2,454 2,976 2,746 2,674 2,595

Finaldisposal

tons172 149 136 190 226

Recyclingrate

% 82 86 88 86 85

Finaldisposalrate

%6 4 4 6 7

Tokyo Gasnon­consolidated

Generation tons 3,924 4,413 3,903 4,137 4,430

Amountrecycled

tons3,514 4,074 3,531 3,647 3,719

Finaldisposal

tons140 102 117 194 360

Recyclingrate

%90 92 90 88 84

Finaldisposalrate

%4 2 3 5 8

Results by Major Sites (FY2014)

Major LNG terminals (Negishi, Sodegaura, Ohgishima)

Category Generation (tons)

Amountrecycled (tons)

Finaldisposal (tons)

Recyclingrate (%)

Finaldisposal rate

(%)

Sludge 126.5 3.9 0.0 3.1 0.0

Scrap metal 11.1 11.1 0.0 100.0 0.0

Waste oil 6.9 6.8 0.0 97.8 0.1

Waste plastics 7.9 7.1 0.0 90.5 0.3

Specially­controlled industrialwaste

6.7 2.8 0.0 40.8 0.0

Other 4.6 1.8 0.0 39.0 0.5

Total 163.7 33.5 0.0 20.4 0.0

Gastar Co., Ltd. (gas appliance manufacturer)

Category Generation (tons)

Amountrecycled (tons)

Finaldisposal (tons)

Recyclingrate (%)

Finaldisposal rate

(%)

Scrap metal 675.8 675.8 0.0 100.0 0.0

Sludge 58.6 58.6 0.0 100.0 0.0

Waste plastics 32.4 32.4 0.0 100.0 0.0

Waste oil 29.7 29.7 0.0 100.0 0.0

Total 796.5 796.5 0.0 100.0 0.0

Data for "Production plants" includes that from business offices that produce city gas and other products, district heating andcooling centers, and power plants. Data for "Construction work" is for construction taken on by group companies as originalcontractors. Data for "Business offices, etc." includes all data other than that from "Production plants" and "Constructionwork."

1

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

District Heating and Cooling Centers

Category Generation (tons)

Amountrecycled (tons)

Finaldisposal (tons)

Recyclingrate (%)

Finaldisposal rate

(%)

Sludge 9.8 9.5 0.0 97.1 0.3

Scrap metal 36.8 36.8 0.0 100.0 0.0

Waste oil 2.4 2.2 0.1 90.0 4.4

Waste plastics 11.9 11.9 0.0 100.0 0.0

Other 4.1 4.1 0.0 100.0 0.0

Total 65.1 64.6 0.1 99.2 0.2

Waste from Construction Work

Category Generation (tons)

Amountrecycled (tons)

Finaldisposal (tons)

Recyclingrate (%)

Finaldisposal rate

(%)

Debris 111,461 111,177 284 99.7 0.3

Sludge 4,710 3,187 776 67.7 16.5

Scrap metal 2,241 2,231 2 99.6 0.1

Wood chips 1,698 1,686 10 99.3 0.6

Waste plastics 1,542 1,213 243 78.7 15.7

Glass, concrete, ceramic waste 1,631 1,220 403 74.8 24.7

Paper waste 320 288 17 90.0 5.3

Other 2,214 453 1,738 20.5 78.5

Total 125,816 121,455 3,472 96.5 2.8

Business Offices, etc.

Category Generation (tons)

Amountrecycled (tons)

Finaldisposal (tons)

Recyclingrate (%)

Finaldisposal rate

(%)

Scrap metal 769 734 33 95.5 4.3

Waste plastics 894 813 78 91.0 8.7

Waste oil 288 281 2 97.8 0.6

Sludge 407 140 57 34.3 14.0

Glass, concrete, ceramic waste 152 135 16 89.3 10.6

Debris 54 53 1 97.5 2.5

Other 483 438 39 90.8 8.2

Total 3,046 2,595 226 85.2 7.4

General Waste

Category Unit FY2010 FY2011 FY2012 FY2013 FY2014

GeneralWaste

Generation tons 3,498 3,335 3,407 3,645 3,457

Amountrecycled

tons2,497 2,473 2,489 2,755 2,725

Recyclingrate

%71 74 73 76 79

Tokyo Gasnon­consolidated

Generation tons 1,211 1,147 1,213 1,154 1,132

Amountrecycled

tons1,004 943 1,020 977 967

Recyclingrate

%83 82 84 85 85

Paperwaste

Generation tons 2,195 2,134 2,199 2,329 2,299

Amountrecycled

tons2,010 1,974 2,060 2,220 2,194

Recyclingrate

%92 93 94 95 95

Tokyo Gasnon­consolidated

Generation tons 926 856 920 863 882

Amountrecycled

tons869 801 876 821 830

Recyclingrate

%94 94 95 95 94

By­Products from Gas Pipe Construction Work

Category Unit FY2010 FY2011 FY2012 FY2013 FY2014

Gas pipe (Note 1)

PE pipe Amountrecovered

tons178 219 250 231 228

Amountrecycled

tons178 219 250 231 228

Recyclingrate

%100 100 100 100 100

Steelandcast­ironpipe

Amountrecoveredandrecycled

tons

4,240 3,864 3,711 3,995 4,670

Recyclingrate

%100 100 100 100 100

Excavatedsoil (Note 2)

Pipe extension work km 1,092 1,027 1,183 1,160 1,170

Estimated excavatedamount

milliontons

3.31 3.33 3.59 3.57 3.71

Actualreducedamount

Reduction(byshallower­laying ofpipes innarrowtrenchesand non­open­cutmethod)

milliontons

1.41 1.36 1.40 1.43 1.42

Reuse(generatedsoil)

milliontons 0.44 0.43 0.47 0.49 0.52

Recycle(improvedsoil,regenerationtreatment)

milliontons

0.98 1.04 1.10 1.10 1.15

Totalreductionamount

milliontons 2.82 2.83 2.98 3.02 3.09

Residual soil (actualamount)

milliontons

0.49 0.50 0.61 0.55 0.62

Rate of residual soil(comparison toestimated excavatedamount)

%

15 15 17 16 17

Tokyo Gasnon­consolidated(Note 2)

Pipe extension work km 983 931 1,064 1,064 1,065

Estimated excavatedamount

milliontons

3.06 3.11 3.32 3.33 3.47

Actualreducedamount

Reduction(byshallower­laying ofpipes innarrowtrenchesand non­open­cutmethod)

milliontons

1.33 1.28 1.34 1.36 1.35

Reuse(generatedsoil)

milliontons 0.38 0.39 0.41 0.45 0.47

Recycle(improvedsoil,regenerationtreatment)

milliontons

0.96 1.02 1.08 1.07 1.12

Totalreductionamount

milliontons 2.67 2.69 2.83 2.89 2.94

Residual soil (actualamount)

milliontons

0.39 0.41 0.49 0.45 0.52

Rate of residual soil(comparison toestimated excavatedamount)

%

13 13 15 13 15

Tokyo Gas non­consolidatedNote 1:

Recovery from Our Customers

Category Unit FY2010 FY2011 FY2012 FY2013 FY2014

Waste,etc.

Subject toHomeApplianceRecyclingLaw

Home air­conditioningunits

Units recovered units 29,259 21,594 20,045 22,009 15,901

Units sent toprocessing plants

units29,302 21,611 20,041 21,892 16,061

Units disposed ofbyremerchandising,etc.

units

28,341 22,471 19,764 19,962 17,882

Weight disposedof byremerchandising,etc.

tons

1,200 959 829 836 748

Remerchandisedweight

tons1,017 827 732 740 670

Remerchandisingrate

%84 86 88 88 89

Fluorocarbons Recoveredweight

kg17,316 13,180 12,718 13,036 10,837

Clothes dryers Units recovered units 5,461 5,591 5,604 6,873 6,193

Units sent toprocessing plants

units5,464 5,579 5,607 6,820 6,259

Units disposed ofbyremerchandising,etc.

units

5,495 5,569 5,390 6,671 6,573

Weight disposedof byremerchandising,etc.

tons

190 198 193 247 249

Remerchandisedweight

tons156 164 158 209 211

Remerchandisingrate

%81 82 81 84 85

SRIMS recovery amount (Note)

Used gasappliances, etc.

tons3,916 4,136 4,423 4,345 3,933

Other tons 3,442 3,399 3,804 4,343 5,057

Total tons 7,357 7,535 8,227 8,687 8,991

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

Excludes waste from specified kinds of home appliances.Note:

SRIMS Recovery Results (FY2014)

Category Recovery (tons)

Amountrecycled (tons)

Finaldisposal (tons)

Recyclingrate (%)

Finaldisposal rate

(%)

Used gas appliances and scrapmetal

3,933.3 3,933.3 0.0 100.0 0.0

Waste plastics 635.7 622.5 13.1 97.9 2.1

Polystyrene foam 11.3 11.3 0.0 100.0 0.0

Cardboard boxes 706.5 706.5 0.0 100.0 0.0

Debris 697.2 683.3 0.0 98.0 0.0

Concrete and tile scraps 457.8 170.2 287.6 37.2 62.8

Other 2,560.0 2,214.1 339.9 86.5 13.3

Total 8,990.6 8,330.0 640.6 92.7 7.1

Our environmental protection costs in fiscal 2014 totaled 5.99 billion yen, a decrease of 1.39 billion yen

from the previous fiscal year.

Investments totaled 1.20 billion yen, which was 0.15 billion yen more than the previous year due mainly to

the growth in investments by the production division.

Expenses totaled 4.78 billion yen, a decrease of 1.53 billion yen from the previous fiscal year, mainly due to

decreased cost by such departments as real estate, public relations and R&D.

The economic effect totaled 11.74 billion yen, a decrease of 1.20 billion yen from the previous fiscal year.

This can be attributed to factors such as less cost savings from reductions in excavated soil and operation

of energy­saving equipment.

Environmental Accounting of Tokyo Gas Co., Ltd. on a Non­Consolidated Basis (FY2014 Results)

Period: April 2014 to March 2015 Boundary: Tokyo Gas Co., Ltd. Standard of reference: "Environmental Accounting Guidelines 2005" issued by Japan's Ministry of the Environment,and "Manual for the Introduction of Environmental Accounting in City Gas Business" prepared by the Japan GasAssociation

(Unit: million yen)

Categories ofEnvironmentalProtection Costs

Investment Expenses Difference

Major items(examples)

FY 2013

FY 2014

FY 2013

FY 2014 Investment Expenses

Pollutionprevention

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

88 281 286 305 193 19

Environmental Protection Costs

Companybusiness

Globalenvironmentalprotection

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

213 409 628 784 196 156

Resourcerecycling

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

28 11 559 395 ­17 ­164

Environmentalmanagement

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

2 0 553 317 ­2 ­236

Other

Costs associatedwith greenificationand soilrehabilitation inaccordance withthe FactoryLocation Act andordinances

39 52 961 506 13 ­455

Customersites

EnvironmentalR&D

Costs for researchand developmentof technologies tominimizeenvironmentalimpact and high­efficiencyappliances andsystems

451 422 1,479 1,170 ­29 ­309

Recycling of used gasappliances

Costs of recoveryand recycling ofsold gasappliances,packaging, etc.

0 0 13 8 0 ­5

Socialaction

programs

Voluntary greenification,landscape conservation, natureconservation, beautification, support of local environmentalactivities, environmentaladvertising, disclosure ofenvironmental information

235 27 1,837 1,298 ­208 ­539

Total 1,056 1,203 6,316 4,783 147 ­1,533

Notes:

Since decimal places have been rounded off to the nearest whole number, the calculated total and amount of increase ordecrease may not match."Expenses" includes depreciation costs of 615 million yen in fiscal 2013 and 593 million yen in fiscal 2014.Since the costs for environmental R&D are extracted from those for environmental protection, they may differ from thefigures stated in the financial report.Capital investment by Tokyo Gas Co., Ltd. (non­consolidated basis) was 158.7 billion yen, while the sales volume was2,083,595 million yen.

<Main differences from the previous fiscal year>

Pollution prevention The increase in investment was due mainly to the growth in investments by the production department.Global environmental protection The increase in investment was due mainly to an increase in capital investment by the productiondepartment. The increase in expenses was due mainly to the increased cost of repairs and depreciation by theproduction department.Resource recycling The decrease in expenses was due mainly to the decreased cost of waste disposal and transport.Environmental management The decrease in expenses was due mainly to the decreased cost of industrial waste disposal.Other The decrease in expenses was due mainly to the reduced cost of soil treatment work.Environmental R&D 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 decrease in investment was due mainly to reduced investment in renewal of displays at corporatemuseums and greenification. The decrease in expenses was due to a reduction of costs in the Corporate CommunicationsDepartment.

Level of Environmental Burden

Category FY 2013

FY 2014

Pollution

prevention

NOx (plants) mg/m 0.5 0.5

NOx (district heating and cooling centers) g/GJ 7.2 6.6

COD (plants) mg/m 0.0 0.0

Energy usage intensity (plants) GJ/million m 206 203

Level of Environmental Burden

3

3

3

Company

business

Global

environmental

protection

Heat sales intensity (district heating and cooling centers)

GJ/GJ2.1 2.0

Energy usage (business offices) TJ 952 896

Resource

saving

Excavated soil (thousand tons) 448 551

Industrial waste (tons) 4,137 4,430

General waste (tons) 1,154 1,132

Customer

sites

Environmental

R&D

(Reference figures)

CO emissions reduction (million tons ­ CO )1.52 3.29

Recycling of

used gas

appliances

(Reference figures)

Recovery of used gas appliances and scrap metal by SRIMS

(tons)

4,345 3,933

Notes:

Level of environmental burden is based on environmental performance data.Figures are rounded to the nearest whole number.

(Unit: million yen)Economic effect FY2013 FY2014 Difference

Cost reduction from the operation of energy­saving equipment 744 428 ­315

Cost reduction from a reduction in the amount of excavated soil 11,794 10,854 ­940

Sale of valuables 403 448 46

Other (cost reduction from water conservation) 0 9 9

Total 12,941 11,739 ­1,202

Note:

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

<Main differences from the previous fiscal year>

Economic effect The economic effect decreased from the previous fiscal year due mainly to lower cost savings fromreductions in excavated soil and use of energy­saving equipment. The lower cost savings from reductions in excavated soil are mainly attributable to the fact that therewas no reduction in excavated soil treatment costs associated with the construction of undergroundtanks at LNG terminals in fiscal 2014. The lower cost reduction due to use of energy­saving equipment is largely due to a decline in theutilization rate resulting from maintenance and inspection work on cryogenic power generationfacilities.

2 2

Economic Effect

Tokyo Gas prepares and publishes global warming action plans and reports in accordance with localauthority ordinances on measures against global warming.

Tokyo: FY2015 Global Warming Action Plan (Large Establishments)

Hamamatsucho (Head Office) Building

Senju Techno Station

Rikuage Governor Station

Tokyo: Global Warming Action Report (Small/Medium­Sized Establishments)

Saitama Pref.: FY2014 Global Warming Action Plan Report

Kanagawa Pref.: FY2014 Report on Results of Action against Global Warming in Business

Yokohama City: FY2014 Report on State of Action against Global Warming

CO2 is emitted when city gas is used. There are two ways of calculating CO2 emissions: calculating them

directly from the amount of city gas used (in m ), and calculating them from the calorific value (MJ).

CO emission factor for city gas in terms of kg­CO per m N of gas

CO2 emission factor

Service area (Pref.) Type of gas CO2 emission factor per 1 m N (kg­CO2/m N)

Tokyo, Kanagawa,

Chiba, Ibaraki,

Tochigi, Saitama

13A

2.211

2.192

2.293

Gunma 13A

2.111

2.092

2.183

CO emission factor for city gas in terms of kg­CO per MJ of gas or CO emission factor for city gas in terms of kg­C per MJ of gas

Unit calorific values and CO2 emission factors

Service area (Pref.)Type of

gas

Calorific value

per 1 m N

MJ/m N

(kcal/m N)

CO2 emission factor

per 1 MJ of calorific

value

(kg­CO2/MJ)

C emission factor

per 1 MJ of calorific

value

(kg­C/MJ)

Tokyo, Kanagawa,

Chiba, Ibaraki,

Tochigi, Saitama

13A 45(10,750) 0.0509 0.0139

Gunma 13A 43.14(10,306) 0.0506 0.0138

Calculation of CO emission factors from proportional composition of city gas (PDF:355KB)

3

Calculation from usage (m )3

2 2 3

3 3

Emission factor for residential and other low­pressure gas users (at 15°C and gauge pressure of 2 kPa)1

Factory, commercial building, and other medium­pressure gas users (at 15°C and gauge pressure of 0.981 kPa (100mmH20))

2

Emission factor at Standard Temperature and Pressure (0°C and 101.325kPa (1 atm))3

Calculation from calorific value (MJ)

2 2

2

3

3

3

2

In Japan, the electricity supplied by electric utilities is

generated primarily by thermal power, nuclear power,

and hydroelectric power plants.

Nuclear power plants operate at full capacity except when undergoing routine inspection, while the annual

power output of hydroelectric power plants is determined by the amount of rainfall.

Therefore, in terms of total annual output, it is most likely to be thermal power generation that is cut when

electricity use is reduced by energy­saving measures.

The amount of thermal power generation varies according to electricityusage

CO emission factor for thermal power sources: 0.69 kg­CO /kWh2 2

Interim Report of the Target Attainment Scenarios Sub­Committee, Global Environment Committee of the CentralEnvironment Council (2001)

Changes in annual electricity demand and output by source

Source: Compiled from "FY2004 Overview of Electricity Supply and Demand"Sum of nine electric power companies' fiscal 2004 power generation and transmission plans (excluding Okinawa).

Revisions of energy policy and other possible future developments are disregarded.

Different approaches are adopted for "calculation of actual

emissions" and "assessment of reduction due to measures."

Actual emissions are typically calculated using the average

factor for all power uses based on the assumption that all power

sources are used. The effects of measures pertaining to

electricity use, on the other hand, must be calculated using the

emission factors for the marginal power sources (thermal power

in the case of Japan) affected by those measures.

Greenhouse gas emission calculation, reporting, and publication arrangements similarly assume that

reductions due to such measures can be calculated using the emission factors of the power sources

affected by the measures. For example, the reduction in the case of an annual 300 kWh power saving

(equivalent to approximately 10% of a standard family's annual electricity use) can be calculated as follows

using the emission factor for thermal power sources:

300 kWh x 0.69 kg­CO2/kWh ⇒ CO2 reduction of 207 kg

The Greenhouse Gas (GHG) Protocol's global "Guidelines for Quantifying GHG Reductions from Grid­

Connected Electricity Projects" (WBCSD/WRI) also require the use of marginal factors to calculate the

reduction of CO2 emissions resulting from power reductions.

For more details GHG Protocol Guidelines

Method of calculation of CO reduction resulting from lower electricityusage

2

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)