The Osaka Gas Group deems that it is necessary for the Group to listen to people's voices sincerely and conduct its business activities based on such voices, if it is to ful�ll its corporate social responsibility (CSR). The Osaka Gas Group identi�ed important aspects for the Group's CSR, which we call "materiality" or "material aspect," by referring to the fourth edition of the Sustainability Reporting Guidelines (G4)—international guidelines being used in the course of preparing a sustainability report—while taking into account the current social situation and continuing dialog with stakeholders and experts in certain �elds. In this report, the identi�ed material aspects will be categorized in line with each of the �ve charters set under the "Osaka Gas Group CSR Charter." The Group will then prepare reports on the management situation regarding each material aspect and the degree of implementation of relevant measures. The Group will disclose as much as possible about activities other than those related to the material aspects so that a full picture of the Group's CSR is made known to parties outside the Group.

02OSAKA GAS GROUP CSR REPORT 201601 OSAKA GAS GROUP CSR REPORT 2016

Notes about CSR Report 2016The Osaka Gas Group reports material aspects of its CSR andits management scheme as well as associated activities for improvement.

• Guidelines Referred to

∙ ISO 26000

∙ Sustainability Reporting Guidelines (G4) of the Global

Reporting Initiative (GRI)

∙ Environmental Reporting Guidelines 2012 of the Ministry

of the Environment

∙ The United Nations Global Compact COP* Policy

* COP: Communication on Progress

This report covers the Osaka Gas Group consisting of Osaka Gas Co., Ltd. and its af�liated

companies. Some information, as noted in this report by phrases such as "Osaka Gas" or

"the company," refers exclusively to Osaka Gas Co., Ltd.

Environmental performance data represents Osaka Gas and 68 af�liated companies.

Overseas and tenant locations where it is dif�cult to collect data are not included.

While the most recent data covered in this report represents FY2016 (from April 1, 2015

to March 31, 2016), some articles refer to efforts for FY2017.

[ Scope of This Report ]

Third Party Review / Third Party Veri�cation49

Index

09

13

15

17

19

Management and CSR of the Osaka Gas Group

Seeking Further Evolution inQuality of Life and Business

Corporate Governance

CSR Management

CSR Efforts Throughout the Value Chains

Key Performance Indicators of Osaka Gas Group CSR Activities

Materiality: Supplier Assessment on Environmental Impacts, Impacts on Society, Human Rights and Labor Practices

Materiality: Grievance Mechanisms on Environmental Impacts, Impacts on Society, Human Rights and Labor Practices

Corporate Principles and CSR Charter of Osaka Gas Group Integration of CSR with Management Strategy

Outline of the Osaka Gas Group03

The President's Commitment05

International Energy Business Investor RelationsOutline of corporate group

Website Leaflet

Annual Report

Special Feature

Efforts Toward Full Deregulation of the Electricity and Gas Retail Businesses

07

[ Other reporting media ]

(Activity examples)- Preparing for large earthquakes- Launch of "Sumikata Services (Home Services)," "ekul" and "HelloOG!" services

23

29

37

41

45

Major Activities in FY2016

Editorial Policy

We selected topics to be covered in the report and prioritized them taking into consideration what is most important both for our company group and stakeholders (society). Our dedicated website for CSR includes further comprehensive and detailed our efforts.

We use third party veri�cation to ensure the reliability of the content and data presented in our CSR report. The environmental performance data in this report underwent third party veri�cation by Bureau Veritas Japan Co., Ltd. The overall report underwent a third party review process that included assessment and recommendations as well as simple audits, by the Institute for Environmental Management Accounting (IEMA).

To ensure that a wide range of readers can understand the information provided in this report, careful consideration is given to visual design, including the text size, use of colors pictures and diagrams, and explanatory notes are provided for technical terms. Those who are interested in the details of the report or relevant information, please look at the upper right corner of this page where web pages for further relevant information are shown.

Coverage and Materiality Readability and Ease of Understanding Reliability

For words with this mark, refer to a terminology list.

Signi�cantIn�uence on stakeholders' assessments and decisions

Signi�cance for the Osaka Gas GroupSigni�cant

Reportingthrough leaflet

Reporting through website

All CSR activities arereported.

Excerpts of daily CSR activities which have seen progress being made,centering on material aspects, are reported.

This report Website

CSR activity report

Materiality: Customer Health and Safety

Creating Value for CustomersⅠCSR Charter

Materiality: Energy / Emissions(Activity examples)- Launch of the "ENE-FARM type S," with the world's highest power generation efficiency and the world's smallest size - Development of hydrogen generators and the establishment of hydrogen filling stations

Harmonizing with the Environment andContributing to Realizing a Sustainable SocietyⅡ

CSR Charter

Materiality: Local Communities(Activity examples)- Corporate volunteering activities under the "Small Light Campaign"- Supporting efforts by Daito City to build a community in which people can be healthy and feel happiness

Being a Good Corporate CitizenContributing to SocietyⅢ

CSR Charter

Materiality: Customer Privacy(Activity examples)- "Compliance Desks"; Protecting whistleblowers - Actions taken by the "Information Security Subcommittee"

Complying with Laws and Regulations andRespect for Human RightsⅣ

CSR Charter

(Activity examples) - Osaka Gas has been striving to promote diversity in a bid to enhance its corporate value further- Promoting safety and health management activities based on OSHMS

Management Policy for Human GrowthⅤCSR Charter