Environmental Initiatives

Natural capital initiatives policy

NICIGAS Group’s business operations utilize nature as a critical capital resource and, in doing so, impact the natural environment. To ensure sustainable corporate growth while contributing to local communities, we believe it is essential to reevaluate our business approach and transform it to balance environmental conservation with revenue expansion. To this end, we identify and analyze nature-related risks and opportunities within our business and correspondingly implements measures to address environmental challenges.

Disclosure based on TNFD framework

We will disclose nature-related risks and initiatives in accordance with the 4 recommended disclosure items under the TNFD framework.

Governance

The NR&E Committee, which is an advisory body to the Board of Directors and of which outside directors make up the majority, objectively discusses NICIGAS’ agenda regarding environmental issues as a core component of our medium- to long-term strategy as well as addresses them as key considerations for us. This Committee evaluates sustainability-related risks and opportunities, deliberates on initiative policies, and at least once a year reports and makes suggestions to the Board of Directors, where final policies are determined.

Strategy

In the Strategy section, we will outline our policy approach to business activities, operation areas, and natural capital initiatives. We will leverage our strength in customer contact and our expertise in the retail business to drive initiatives across our operations and sales areas. While prioritizing climate change response, we will also address potential risks related to water resources, land use, and waste management within the natural capital associated with our business.

Business activities covered

Within the energy supply value chain, we cover the procurement of energy imported from overseas in Japan and our sale to customers. As such, our business activities covered everything from raw material procurement to customers’ consumption.

Operation areas covered

As a B2C energy retail company, customer contact is crucial for us. Therefore, our target operation areas include the seven prefectures of the Kanto region, along with Yamanashi, Shizuoka, and Nagano, where NICIGAS Group provides gas and electricity services.

Within our sales areas, we have determined that no regions are classified as highly vulnerable to water risks based on the World Resources Institute’s Aqueduct Water Risk Atlas.

Relationship between NICIGAS Group’s business and natural capital dependencies and impacts

To assess the risks and opportunities affecting its business, we analyze the relationship between our Group’s operations and natural capital from both dependency and impact perspectives.

Risk and impact management

This section identifies the risks and financial impact levels of key natural capital dependencies—water resources, land, and waste—and outlines NICIGAS Group’s mitigation strategies.

*In reference to the LEAP approach, we followed the steps outlined below to identify potential biodiversity risks in the focus areas of our Group’s supply chain and establish future initiatives.
Locate : Organize the points of contact with nature in our operations and identify high-risk areas
Evaluate : Organize our dependence on and impact on nature and identify areas of relevance
Assess : Analyze our key risks
Prepare : Set future initiatives

Metrics and targets

In this section, we outline our Group’s specific initiatives regarding key risks related to water resources, land, and waste. After further quantitative analysis, we will consider setting specific metrics in the future regarding targets to monitor risks and the progress of initiatives.

Water resources related initiatives

・Water reuse
At the gas cylinder inspection facility of the Yume no Kizuna Kawasaki Plant, we are working to reduce water consumption by reusing water in the pressure resistance testing process, which requires the most water.

・Initiatives for paperless operations
To reduce the use of paper, the production of which consumes water, we are promoting the digitalization of operations as well as paperless operations. We are eliminating the distribution of paper meeting materials, digitalizing various application forms and meter reading slips, and introducing digital contracts.

Water usage at high energy-consumption sites

Land and soil related initiatives (pipeline construction)

・Environmentally conscious construction
Pipeline burial work may impact underground ecosystems and the surrounding environment. Our Group has adopted a shallow-burial method for gas pipelines that lays the gas pipes shallower than before and trenchless construction methods (pipe-jacking method / shield method). This approach reduces the generation of excavated soil and asphalt waste, and lessens the need for new sand for backfilling, thereby minimizing the impact on soil.

・Community engagement
Before conducting pipeline construction, we provide detailed information to nearby residents and businesses to minimize local impacts. For areas significantly affected by construction, we engage in dialogue with local residents and implement measures such as shifting work to nighttime hours or scheduling construction during off-peak periods for shopping districts. Furthermore, we optimize the process through collaboration with municipalities and other businesses, simultaneously achieving cost reductions and reducing environmental impact.

Waste related initiatives

・Extended use of gas cylinders and gas meters
By operating our own gas cylinder inspection facility at the Yume no Kizuna Kawasaki Plant, our Group has reduced inspection costs. For LP gas cylinders more than 20 years old, the pressure testing interval is shortened from once every 5–6 years to once every 2 years. Conducting pressure tests at the Yume no Kizuna facility enables low-cost operation and leads to prolonged use of cylinders. As a result, this ultimately reduces the volume of waste. Furthermore, NICIGAS Group, in collaboration with SORACOM, INC., developed Space Hotaru, a device that attaches externally to existing gas meters, enabling automatic meter reading, safety monitoring, and remote gas valve control without replacing the meter. By sharing these initiatives with other companies, we aim to reduce environmental impacts across the industry.

・Waste collection and Recycling
Home appliances and gas equipment collected from customers, as well as industrial waste generated from construction, are properly handled by a specialized external operator with an appropriate disposal network. For FYE 03/25, 98% of industrial waste was recycled, with the remainder disposed of through final processing, as confirmed by electronic data records.