Developing human capital and promoting diversity

Human Capital Strategy

The driving force for NICIGAS medium- to long-term corporate value increasing is the power of each individual to continue engaging in new challenges that address changes in both the internal and external environment. Employees, who are willing to take on challenges regardless of age, gender, educational background, or career, are active with NICIGAS culture of taking on challenges.
In our human capital strategy, we will clarify the human capital ideal and develop human capital after sorting out gaps with current employees in order to further enhance our corporate value through NICIGAS 3.0, our management strategy. In addition, we will maximize the value of our employees by improving their working environment through the promotion of diversity and the introduction of various systems.

NICIGAS’ Ambition (Management Strategy: NICIGAS 3.0)

In light of changes in the external environment, such as the transition to a decarbonized and decentralized society, we are evolving our business model from procuring and selling gas and electricity to (1) "Energy Solutions" that realize optimal energy use for each household and the entire community through the widespread use of solar power, storage batteries, hybrid water heaters, etc., and (2) "Platform that shares infrastructure such as LP gas filling and distribution with the entire energy industry. We will continue to address social issues such as the environment and labor shortages, while growing our corporate value sustainably.

Human capital ideal

To realize our ambition, we require employees who can respond to changes in the internal and external environment and continue to take on challenges. Specifically, we need "Energy retail human capital" who, in light of changes in the energy industry, understand the energy business broadly, including gas, electricity, and next-generation energy, and make proposals for optimal energy use, "Platform human capital" who understand both business issues and technology, and make optimal proposals to business partners, and "Human capital for digital transformation/digital technology" who understand cutting-edge technology and create new businesses in the solution and platform fields. In addition, in order to respond to the diverse needs of society and provide required services, we need employees with various backgrounds and ideas.

As is

We specialize in the safe and reliable supply of LP gas and city gas, and have grown while earning the trust of local customers. As a result, our employees have expert knowledge of LP gas and city gas, and are strong in responding to customer problems. In addition, in order to respond flexibly to diverse customer needs, branch offices overseeing each region design strategies and conduct sales activities based on the characteristics of each region. On the other hand, we are still developing our skills in proposing next-generation energy and optimal energy use, which are necessary for medium- and long-term growth. In addition, while we have sufficient experience in BtoC sales in local communities, we should strengthen BtoB sales and digital/DX sales to spread solutions and platforms to the entire industry. Furthermore, about 80% of our employees are male, as many of our tasks require physical strength as an utility company, such as emergency responses to earthquakes and other disasters, including late-night responses, and delivery of LP gas cylinders of c. 90kg.

Governance, KPI, and Targets

The Nomination and Remuneration, Environmental, etc., Committee ("NR&E Committee") , an advisory committee to the Board of Directors, discusses quantitative targets and specific measures in the human capital strategy, and the Board of Directors makes policy decisions. NICIGAS has set the following KPI and targets to address them in its human capitalstrategy.

KPI
Target (by March 2026)
Progress (FYE 03/24)
Female management ratio in management positions
10.0%
3.6%
Female employee ratio
23.0%
20.4%
Uptake ratio of male childcare leave
50.0%
50.8%