4342 Tokyo Gas Group CSR Report 2016

Highlights of Key Activities

Linkages among multiple facilities with different purposes Public facility, hospital, etc.

Use of solar heat and heat of underground tunnel water for air conditioning (first application in Japan for district heating)

Capable of uninterrupted power supply to disaster management base (Minato Park Shibaura) and uninterrupted heat supply to Aiiku Hospital during power outages

Optimization for area-wide heat and power according to outside air conditions and energy usage (first in Japan)

Maximum adoption and effective use of renewables, untapped energy, etc.

Contribution to BCP

Optimal supply/demand control by SENEMS

We are pursuing the development of “smart energy communities” that use energy smarter by connecting buildings in the community with a heat

and electric power network. Communities can be made “energy smart” by building smart energy networks (SENs), which link supply and demand in

a community into a single heat and power network based around a gas cogeneration system (CGS). Energy supply and demand throughout the

network are optimized by an energy center, which precisely manages the network’s heat and power use. By using such networks to provide low-

carbon, disaster-resilient energy tailored to local characteristics, we will contribute to making communities both more environmentally friendly and

resilient to disasters.

■ SEN development in the Toyosu wharf districtTokyo Gas Group is pursuing urban development with the potential

to last well into the 22nd century in a redevelopment area located

around land the Group holds in the Toyosu wharf district of Tokyo’s

Koto-ku. This is a project called “Tokyo Smart City TOYOSU 22.”

Under this project, we are undertaking futuristic urban development

guided by three conceptions of “smartness”—“smart energy,” “smart

green,” and “smart community,” from a long-term perspective looking

beyond the Tokyo 2020 Olympics and Paralympics, which is a high-

quality development to raise the value and appeal of the area.

In May 2016, we completed construction of a smart energy center

in Zone 4 (see figure below), owned by Tokyo Gas Site Development

Co., Ltd., in preparation for development of a SEN in the Toyosu

wharf district. This is the second SEN to be developed by Tokyo

Gas in an urban redevelopment district, the first being a SEN in the

northern district adjacent to Tamachi Station’s east exit. The newly

completed smart energy center will be equipped with one of the

world’s most efficient gas cogeneration systems, which will supply

electric power to the Toyosu wholesale market while waste heat is

used by the center itself. Environmental friendliness will be enhanced

by adopting gas pressure differential power generation using gas

supply pressure. By giving the CGS blackout start functionality,*1

laying independent power lines,*2 and employing disaster-resistant

medium-pressure gas pipelines, we will create a system that is

capable of supplying uninterrupted heat and electricity even during

power outages or other emergencies, thus enhancing the district’s

disaster resilience. The network will also have a “SENEMS”*3 for

centrally managing and controlling energy throughout the district

using ICT. This will make it possible to optimally control heat

sources and visually track energy usage, thereby contributing to

greater environmental awareness among building users. We plan to

progressively expand the heat and power network as development of

Zones 4 and 2 progresses.*1 Capability to independently restart the generator during a power outage.*2 Power lines laid independently by an operator. They can be used at a customer’s

discretion when grid power has been interrupted.*3 Smart Energy Network Energy Management System.

Promotion of Smart Networks Built around Cogeneration Systems

Zone 8Zone 2

Zone 1Zone 6

Zone 7Zone 5

Zone 4

Shinonome Canal

Toyosu

Shin-ToyosuShijo-mae

Ariake Tennis Forest

Heat supply project area

Area developed by Tokyo Gas Site Development Co., Ltd.

Smart Energy Center

Tokyo MetroYurakucho line

Tokyo Waterfront New TransitWaterfront line Metropolitan Expressway No. 10

Harumi line

Toyosu Wharf District Development Area

Tokyo Gas’s Toyosu Smart Energy Center

We will develop “smart energy networks” to contribute to the creation of low-carbon, disaster-resilient communities as we work to

realize a sustainable society.

TOYOSU 22 Urban Development Concept

•Development of smart energy network •Development of smart energy center •Promotion of environmentally friendly buildings

Smart energy

Smart green

Smart community

•Formation of a “green cross” •Creation of “green style” leveraging green and waterside space •Creation of a sustainable townscape

•Promotion of area management •Locally rooted community •Safe and secure disaster-resilient urban development

■ Work started in Block II-2 (West area) in the northern district adjacent to Tamachi Station’s east exit

Tokyo Gas Group is developing an SEN in the northern district adjacent to Tamachi Station’s east exit (East area in Minato-ku, Tokyo) in partnership with the Minato ward authorities with the goal of reducing the area’s carbon footprint and making it more disaster resilient. Supplies of heat and power have been progressively rolled out to three facilities—Minato Park Shibaura (a public facility), Aiiku Hospital, and a childcare support facility—since November 2014. The project is the first new urban development project in Japan to incorporate development of an SEN. In October 2015, work started on the TGMM Shibaura Project (provisional name) in Block II-2 (West area) in the northern district adjacent to Tamachi Station’s east exit. This project will create a multipurpose business center on land owned by the company, and we plan to build a second smart energy center for the new center to be operated in tandem with the first as the district undergoes further development, thereby reducing CO2 emissions in the entire northern district adjacent to Tamachi Station’s east exit by some 45% relative to 1990.

Childcare support facility

Minato Park Shibaura

HotelSolar thermal/ photovoltaic

Underground tunnel water

Use of untapped energies

Use of renewable energies

Aiiku Hospital

Center-to-center coordination

Heat Electric power Information

Office building

Office building

(planned) Cogeneration system

Solar thermal

Smart Energy Network in the Northern District Adjacent to Tamachi Station’s East Exit

CGSCGS

First smart energy center

Second smart energy center

Tokyo Gas Group is pursuing a number of projects, including development of an energy center, in Tsunashima Sustainable Smart Town, a next-generation urban smart city that is to be developed on the former site of a Panasonic factory in the Tsunashima-higashi district of Kohoku-ku in Yokohama, Kanagawa Prefecture, with energy supply scheduled to commence in phases beginning in December 2016. The plan is to develop energy supply systems based on an advanced model for sharing heat and power supplies to diverse facilities over a more compact area than in the past. We will improve supply continuity by installing a CGS in the town energy center and using multiple power sources and disaster-resistant medium-pressure gas lines, while the use of more efficient equipment and area-wide energy utilization will also improve environmental friendliness. And lastly, the delivery of energy services will ensure the financial viability of these improvements in supply stability and environmental friendliness.

Participation in Yokohama’s Tsunashima-Higashi Smart Town ProjectTOPICS

Key Advantages of SEN in the Northern District Adjacent to Tamachi Station East Exit

Artist’s impression of town energy center

Contribution to Local Communities ｜ Safe and Secure Ways of Life and Urban Development

4544 Tokyo Gas Group CSR Report 2016

■ Contributing to the next generation with activities supporting school education

Tokyo Gas wants the children upon whose shoulders the future

rests to know just how important energy and the environment

are, and so has been supporting school education since 2002. We

organize training workshops for teachers to help them deepen their

knowledge of energy and environmental issues and enable them to

convey that knowledge to the children they teach. These workshops

are held at the request of the boards of education and educational

study groups in several prefectures, and were attended by 1,122

teachers in fi scal 2015. Special classes are also taught in the schools

themselves by Tokyo Gas employees. As of the end of March 2016, a

total of 1,051,848 children had taken part in these classes.

Outside of school itself, we host fi eld trips to our Gas Science

Museum and provide information for teachers and children via

our “Odoroki! Naruhodo! (Oh! Now I get it!) Gas World” educational

website in order to broaden and deepen children’s education and

give them an opportunity to think about energy and the part it plays

in their lives.

■ Tokyo Gas Environment Support FundThe Tokyo Gas Environment Support Fund was established with

a grant from Tokyo Gas to the Japan Environment Association to

commemorate our reaching the 10 million customer milestone in

fi scal 2007. Through the fund, we support non-profi t, private-sector

organizations engaged in ongoing environmental conservation

activities. In fi scal 2016, we launched a new program called

the Morikatsu Forest & Sea Support Program to strengthen our

contribution to the fi ght against global warming by supporting

activities conducive to the protection and nurturing of forests and

seaweed beds. So far 21 organizations have been selected to receive a

total of ¥10 million in funding under this program.

Special elementary school class taught by one of our employees

Learning how to stack fi rewood Making a fi re using everyday materials

Contribution to Local Communities ｜ Enrichment of SocietyPutting a strong emphasis on educating the children who will be responsible for the next generation, we will work with local

communities to organize activities that will encourage people to think of ways of using energy that will enrich our lives, as well as

activities that contribute to the development of a cohesive society through para sports.

Highlights of Key Activities

Kids in the Kitchen

Building a Society and Ways of Life That Are Good for the Environment

Enriching Our Lives and CultureBuilding a Cohesive Society by Supporting Sports for the disabled

TOPICS

The Tokyo Gas Group has been involved in support activities as an offi cial

partner of the Japan Para-Sports Association (JPSA) since 2013 in order to

help empower people with disabilities to participate in society and to build a

more cohesive society.*4 In the process, we have sought to raise awareness

and involvement in para sports by, for example, creating opportunities for

employees and their families to experience para sports, watch para sports

events, and meet competitors. We also sponsor athletes such as Tokyo

Gas employee and swimmer Keiichi Kimura, who represented Japan at the

Rio 2016 Paralympic Games. In conjunction with these activities, we are

broadening our support activities to encompass our customers as well. These

activities include staging para sports-related exhibitions at our facilities to

increase visitor understanding, and raising donations for the JPSA through

Tokyo Gas’s online members’ program. We aim to apply the insights gained

through these support activities to off er better community development and

lifestyle solutions, and in the future we will be looking into pursuing further

support activities in partnership with other companies.

By 2020, we want the Tokyo Gas Group’s employees to be a driving force

in building a cohesive society whose members recognize and value one

another, whether they have disabilities or not, by continuing to contribute

to the steady development of the capital’s appeal, the appeal of local

communities, and general awareness of para sports.

*4 A “cohesive society” is what the Cabinet Offi ce proposes to achieve through a range of policies designed to create a society whose members “develop as rounded, humane individuals equipped with all the skills necessary to contribute as full-fl edged members of society” and that “nurtures and supports children and young people and enables everyone to live safely and securely, regardless of age or disability.”

Website Cabinet Offi ce “Policies on Cohesive Society” http://www8.cao.go.jp/souki/index-eng.html

In July 2015, Tokyo Gas was named an offi cial partner of the

Tokyo 2020 Olympic and Paralympic Games in the “Gas & Gas

Utility Services” category. As a locally-based company that has

supplied the Tokyo metropolitan area with energy ever since our

establishment in 1885, we are committed to helping make the

Games safe and successful by stepping up a full range of measures

to ensure the security of the energy infrastructure. We will be

working hand in hand with the Tokyo Organising Committee of

the Olympic and Paralympic Games to design and deliver robust,

cutting-edge energy services that add to the capital’s appeal.

By improving and expanding support for sports for the disabled,

we hope to contribute to the success not only of the Olympic

Games but also of the Paralympic Games, which -- in a fi rst for the

Olympic movement -- are being held for a second time in the same

host city.

Swimmer Keiichi Kimura (Tokyo Gas employee)

Wheelchair basketball game

Tokyo Gas Becomes a Tokyo 2020 Offi cial Partner in the Gas & Gas Utility Services Category

Initiatives to Support Para Sports

Tokyo Gas is an offi cial partner in the Gas & Gas Utility Services category of the Japanese Paralympic Committee.

■ “HIIKU”: Education about the power and benefi ts of fi reAs part of our next-generation youth education activities, we have

been working since 2012 to expand our participatory “HIIKU” fi re

education program. The program’s aim is to give youngsters the

opportunity to learn through direct experience about fi re, its benefi ts

and how to handle it safely. It is also designed to develop their

disaster survival skills and equip them to use fi re to enrich their own

lives. The program attracted some 3,100 participants in fi scal 2015.

■ Helping enrich food culture in tune with the timesOur cooking class program, which celebrated its centenary in 2013,

off ers a variety of classes tailored to diff erent participants and needs.

These include “Kids in the Kitchen,”*1 which teaches children how to

cook for themselves and to use all their fi ve senses in the process, and

“La Cucina Espressa,”*2 which shows how gas is uniquely suited to

quickly cooking multiple dishes at one time. These classes drew more

than 100,000 participants in fi scal 2015. All of our cooking classes

incorporate an environmentally conscious approach to eating habits

that we call “eco-cooking,”*3 and 2015 marked the 20th anniversary

of our unveiling of this concept. We also emphasize training

instructors to teach eco-cooking, training some 330 new instructors

in fi scal 2015. Going forward, we will continue our eff orts to enhance

customers’ lifestyles and eating habits.

*1,2,3 “Kids in the Kitchen,” “La Cucina Espressa,” and “eco-cooking” are registered trademarks of Tokyo Gas.