enhancement of people-centered management base such as women's career development, employees...

Basic Policies on Human Resources

Tokyo Gas has developed a variety of personnel programs informed by a recognition that the vitalityof the company is dependent on its people, and that company growth cannot be achieved withoutthe growth of its personnel.Our pay, benefits, and promotion programs are designed to reflect the performance of eachemployee over a given period of time so that all can be confident that their efforts and contributionsto the company's performance will be appropriately rewarded. By offering varied benefits andcompensation, we aim to enhance the motivation and satisfaction of our employees, and create anorganization full of vitality.

Enhancement of People-Centered Management Base

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Promotion of Diversity

<Reasons for identification of material aspects>To work to create an energetic workplace in which every employee can exercise his or herknowledge, skills, and experience to the full.

Performance in FY2016: Overview and AssessmentCriteria for evaluating indicators

Target achieved (100% or above)Target not achieved but improved from previous fiscal year (not 100% achieved but improvedfrom previous fiscal year)Target not achievedQualitative indicators with no evaluation axis are evaluated on the basis of whether or notprogress has been made since the previous fiscal year.

Target(CSR indicator)

FY2016 results Evaluation

Promoting theactiveparticipation ofdiverse humanresources andworkstyleflexibility

Promotion of the active participation of diverse humanresources≪Details of activities≫■April 2016: Tokyo Gas's first female executive officerappointed.■April 2016: Adopted target of having 10.0% of managementpositions occupied by women by 2020.■April 2016: Grand Career Support Program launched to providegreater employment opportunities for older workers.■June 2016: Formulated "Overarching Commitment toDiversity" and "Basic Policy Regarding Promotion of Diversity"policies.■June 2016: Established "Group Diversity Promotion Team."■December 2016: Introduced details of the Act on Promotion ofWomen's Participation and Advancement in the Workplace, thegroup's response, and the current state of action to promoteemployment of people with disabilities in the Groupʼs newsletter.Took action to further raise awareness throughout the Group topromote diversity.■March 2017: Designated a Nadeshiko Brand.■April 2016 – March 2017: Raised awareness through training,seminars, etc. (over 750 participants in all).

For employees: Organization of events including seminars onsubjects such as women's career development, employeesreturning to work from parental leave, and careerdevelopment for parents of small children, and a paneldiscussion on promoting womenʼs participation in theworkplace.For managers: Organization of program of lectures onpromoting the active participation of diverse human resources,seminars for managers with subordinates on parental leave,and other subjects, and awareness raising incorporated intovarious forms of management training.For both employees and managers: Provision of seminars tohelp employees balance the demands of work while caring fora relative at home.


≪Performance≫■Ratio of women in management (as of April 1, 2017)

7.1% (3.0% up from 8 years earlier)■Average length of employment by gender (as of March 31,2017) Male 19.7 years, female 18.7 years■Further promotion of employment of people with disabilities

Development of conditions to accommodate diverse workstyles

■FY2016 results of application of main systems, etc.Shorter hours for parents of small children (used by 227employees), parental leave (used by 67 persons, all of whomreturned to work afterwards)Shorter working hours for employees caring for relatives (usedby 3 employees), nursing care leave (used by 4 persons)

■July-September 2016: Encouraged summer leave-taking.■July-August 2016: Adopted morning-oriented workarrangements so employees can enjoy more leisure during longersummer evenings.■February 2017: Launched “Premium Friday” campaign toencourage employees to finish work early on designated Fridays.

Key Future Initiatives from FY2017


Key initiatives

Promoting theactiveparticipation ofdiverse humanresources andworkstyleflexibility

■April 2017: Adoption of homeworking arrangements in some workplaces(to be progressively rolled out to other workplaces).■April 2017: Prohibition of overtime from after 10:00 p.m. .■April 2017: Expansion of number of times that parental leave periods canbe changed and commencement of promotion of taking of paternity leave.■July-September 2017: Promotion of taking of summer vacations.■July-August 2017: Adoption of morning-oriented work arrangements soemployees could enjoy more leisure and family time during long summerevenings.■August 2017: “Premium Friday” held every Friday (normally only the lastFriday of every month).■Consideration of introduction of support services for employees providingnursing care.■Further promotion of employment of people with disabilities■Awareness raising through training, seminars, etc.

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Development of Human Resources

<Reasons for identification of material aspects>Because developing and hiring highly expert, ethically responsible human resources is essential toincreasing future competitiveness and contributes to maintaining corporate sustainability.





Development oftraining structure

■We introduced a "contribution-type personnel managementsystem" designed to utilize and cultivate individuals' strengthsand abilities. This functions alongside a “role fulfilmentassessment” scheme used to track the development of theabilities required for expected roles by contribution type and theirfulfilment, a "goal management system" for managing individualemployee goals and achievements and their level of contributionto the organization, and a "360-degree appraisal system" underwhich employees' daily actions are evaluated by superiors,colleagues and colleagues.■We developed employee skills through an effective combinationof training provided by superiors on the job (OJT) supplementedby off-the-job training and education (Off-JT) programs, self-development programs, and workplace transfers and rotations.■We ran a human resource development program founded onthe twin pillars of fostering foundational and common skills, anddeveloping a broad range of expertise. Human resources weredeveloped throughout the Group by providing numerous forms oftraining and seminars for subsidiaries as well.



Key initiatives

Development oftraining structure

■We will continue to operate our contribution-type personnel managementsystem, role fulfilment assessment system, goal management system, and360-degree appraisal system.■We will develop employee skills through an effective combination oftraining provided by superiors on the job (OJT) supplemented by training(Off-JT) programs, self-development programs, and workplace transfers androtations.■Our human resources development program will continue to be composedof two pillars: the fostering of foundational and common skills, and thedevelopment of a broad range of expertise. We will enhance globalleadership training to keep pace with changes in the business environment.

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Occupational Safety and Health

<Reasons for identification of material aspects>Because continuing to ensure employeesʼ safety and health is of fundamental importance to ourmanagement base.





Promotion ofoccupationalsafety and health

■Implementation of initiatives to maintain and improve thehealth of employees

In order to strengthen primary prevention throughoccupational health activities, we established teams led byoccupational health physicians to visit workplaces and providehealth consultations, career ladder consultations, and healtheducation. Action was taken to prevent lifestyle-relateddiseases through strategies including ensuring that allemployees receive health checkups (a 100% checkup rate wasachieved in FY2016) and providing follow-up observation foremployees about whom health concerns have been raised.As 60% of all the sick leave days taken can be attributed tomental health diseases, we have continued to take measurestoward ensuring mental health, such as conducting stresschecks for all employees, providing education of managers,enhancing our system of consultation, etc.

■Promotion of activities to prevent work-related injuriesWe have provided education on occupational safety and healthand safety considerations and implemented the OccupationalSafety and Health Management System (OSHMS), urgingemployees at each workplace to act on their own initiative inkeeping with conditions in their workplace to prevent work-related injuries, and to continue making furtherimprovements.To prevent traffic accidents, we have provided various forms ofdriver training to employees through our own in-house drivinglicense system, including provision of behind-the-wheelinstruction by outside driving instructors using drivingrecorders. Everyday instruction on road safety was alsoprovided through both behind-the-wheel and classroomtraining taught by "safety driving instructors" assigned to eachworkplace.

■Implementation of stress checks, measures to prevent passivesmoking, and chemical risk assessments in compliance with therevised Industrial Safety and Health Act.



Key initiatives

Promotion ofoccupationalsafety and health

■Embedding of chemical risk assessments.■Promotion of stress check system.■Promotion of measures to prevent passive smoking.

Workforce

As of March 31, 2017, our workforce totaled 7,604 employees (6,518 men, 1,086 women).*1

*1 The above figures include employees loaned by Tokyo Gas to other organizations but exclude those loaned to Tokyo Gas from other

organizations (hereafter, "registered employees").

Numbers of Full-Time Employees by Gender*2,3,4

Unit FY2014 FY2015 FY2016

MaleNonconsolidated

Number（%）

6,642 (87.3) 6,519 (86.7) 6,518 (85.7)

Consolidated - - 11,745 (84.2)

FemaleNonconsolidated 968 (12.7) 999 (13.3) 1,086 (14.3)

Consolidated - - 2,212 (15.8)

TotalNonconsolidated 7,610 7,518 7,604

Consolidated - - 13,957*2 Numbers as of the end of March in each fiscal year.

*3 Nonconsolidated data exclude personnel on loan to Tokyo Gas from other organizations, and include personnel on loan from Tokyo Gas to

other organizations (“registered personnel”).

*4 Consolidated data exclude personnel on loan to Tokyo Gas and its subsidiaries from other organizations, and include personnel on loan

from Tokyo Gas and its subsidiaries to other organizations.

Average Age by Gender *5,6,7

Unit FY2014 FY2015 FY2016

MaleNonconsolidated

Age

42.8 42.1 41.4

Consolidated - - 41.8

FemaleNonconsolidated 41.7 41.6 41.1

Consolidated - - 39.9*5 Numbers as of the end of March in each fiscal year.

*6 Nonconsolidated data are for Tokyo Gas employees (registered personnel).

*7 Consolidated data exclude personnel on loan to Tokyo Gas and its subsidiaries from other organizations, and include personnel on loan

from Tokyo Gas and its subsidiaries to other organizations.

Percentage of Employees Leaving the Company


Transparent Hiring

Tokyo Gas follows Keidanren (Japan Business Federation) guidelines in its hiring practices. Wepublish job and corporate information in good time so that students can concentrate on their studiesand still have ample leeway to research which companies to apply to, and hold various seminars togive them a realistic idea of what life would be like working for Tokyo Gas Group.

Hiring of Fresh Graduates *1

Education Unit 2015 2016 2017 Breakdown of 2017 hires

Graduate school/ university*2 Persons 190 207 220 Male 167 Female 53

High school Persons 108 84 31 Male 27 Female 4

Total Persons 298 291 251 Male 194 Female 57*1Hiring situation as of April 1 in each fiscal year.

*2Including technical college graduates.

Employee Survey

We regularly survey all employees to ascertain their views on work, the workplace, lifestyles, andother factors, and use the results to improve our personnel programs and other measures. Thesesurveys show that, in general, our employees are satisfied working for Tokyo Gas.

Building Positive Labor-Management Relations through ActiveCommunication

All employees excluding management are members of the Tokyo Gas Labor Union under a unionshop agreement*. The company and the union enjoy a healthy and positive relationship based onmutual understanding and trust. Both sides engage in transparent dialogue through regular labor-management consultations on issues regarding management and working conditions. We also striveto improve the working environment for our non-full time workers, and have signed an agreementon minimum wages.*Union Shop Agreement

An agreement under which employers agree to dismiss workers who do not become union members or who withdraw from or are expelled

from the union. All qualifying employees are enrolled in the union.

Main Labor-Management Consultations and Topics Discussed in FY2016

Discussion body Date Main topics discussed

Intensive spring labor-management talks

February-March

Negotiations concerning economic workingconditions, personnel arrangements, rules ofemployment, and other working conditions

Special Subcommittee of theJoint Management Council(policy related)

April andOctober

Current state and future course of businessstrategy and key policies

Special Subcommittee of theJoint Management Council(financial results)

May Company performance and financial resultsforecasts

Working Hours Committee May andNovember

Current and projected working hours andproductivity increases

Employee Pay and BenefitsPrograms Committee

Septemberand December

Current state of personnel arrangements andpolicies

Departmental labor-management councils(branch level)

June Current state and future direction ofdepartmental/divisional policies

Personnel Management System and Appraisal

We have introduced a new contribution-type personnel management system designed to accelerateemployees' development by giving greater weight to positive, multi-angled assessments of theextension and utilization of each employee's skills and abilities. By clearly specifying the rolesexpected of employees by the company according to each type of contribution made, the systemaims to make individuals more aware of their styles of organizational contribution, hone and get themost out of their qualities and strengths, and so maximize organizational outputs.

Roles and Type of Person Sought by Contribution Type

Expert General Business fellow

Rolesandtype ofpersonsought

Supervises or supportsduties at Tokyo GasGroup on-site locationsby utilizing the skills,techniques, knowledge,and network acquiredthrough experience in aspecialized work field.

Promotes the business of TokyoGas Group from the perspectiveof what is best for the Groupoverall, while strengtheninghis/her field of expertise basedon the skills, techniques, andknowledge acquired fromvarious work experience.

Promotes improvements inTokyo Gas Group'ssolution and innovationfunctions through his/herhigh-level skills,techniques, andknowledge in a specializedfield.

EvaluationGoal Management Systems

Role fulfillment evaluation systemRole fulfilment evaluations are conducted to track the development of abilities needed to performthe roles expected by contribution type and the state of fulfilment of expected roles in order toappropriately reward employees and develop their skills and abilities.

Goal management evaluation systemThe goal management system is used to ensure that each employee understands the goals of thecompany and its divisions as well as their own roles and responsibilities, to set employees workperformance goals, and to evaluate and appropriately reward employeesʼ attainment of their ownwork performance goals and their level of contribution to the organization.

360-degree Appraisal System

In order to make further improvements not only to business results but also to approaches to workand actions in the workplace, we have implemented a 360-degree appraisal system whereby thedaily actions of employees are appraised not only by their superiors, but also by their colleagues ofequal standing and their subordinates. Through these actions, we aim to promote not onlyemployees' growth, but also their acceptance and satisfaction with their appraisals.


Personnel Development Systems

■Basic policyWe develop the skills of our employees in recognition of the fact that people experience growththrough their jobs. To this end, we focus on providing instructive training given by superiors on thejob (OJT), effectively combined with training (OFF-JT) programs, self-development programs, andworkplace transfers and rotations. We also operate an open recruitment system and conductinterviews on career plans so that employees can find self-fulfillment and a sense of satisfaction intheir work.

Human Resource Development Programs

Our Human Resource Development Programs for training employees are composed of two pillars:training to develop foundational and common skills as business people and training to develop abroad range of expertise. By expanding, enhancing, and increasing the skills required of"contribution-type" employees, we aim to foster both employees who can think for themselves, actand involve others, and employees who can adapt flexibly to changes in the business environment.We thus seek to maximize the distinctive traits and strengths of each and every one of ouremployees, enhancing our overall productivity through their individual growth, and fosteringemployees who can serve as the driving force of Tokyo Gas Group.

Human Resource Development in Residential ServicesHuman Resource Development CentersOur human resource development centers provide training for employees of Tokyo Gas Group andpartner companies in the residential services sector. In fiscal 2016, about 60 instructors taughtsome 170 courses (1,333 sessions in total). These instructors consist of former as well as currentemployees, and also employees of group companies. Courses are designed in collaboration with thedepartments concerned and cover training in technical skills to guarantee the quality of field work(safety inspections, equipment repairs, installation of gas appliances and water heaters, and gasinstallation work) and training to develop the mindset and basic knowledge required to remain thecustomerʼs choice. Training leads to qualifications under our internal qualification scheme, ande-learning courses are offered to provide employees with an accessible means of renewing theirqualifications.

Trainingfacilities

Tsurumi Human Resource Development Center (23 classrooms, 25 practical training rooms, and other facilities including a concepthouse and amenity space)

Takinogawa Human Resource Development Center(2 classrooms and 3 practical training rooms)

Senju Human Resource Development Center(1 classroom and 4 practical training rooms)


Human Resource Development in the Pipeline SectorThe Pipeline Network Division defines human resource requirements and implements humanresource development measures to establish the foundations for human resource development froma mid- to long-term perspective. Specialist skills are developed through OJT based mainly on dailysupervision and Off-JT provided at training centers and other facilities in order to ensure themaintenance and transmission of skills and technologies.

Skills and Technology Certification ProgramWe have introduced arrangements to equip individual employees with the skills and abilities neededto perform work responsibly in conformance with customersʼ and societyʼs expectations. Thisprogram provides mechanisms to ensure that work is performed by personnel possessing a certifiedlevel of skills, and it is fundamental to our ongoing fulfilment of our responsibilities to the customerand society.

“Meister” Instruction ProgramThis is an in-house qualification scheme that facilitates personnel development by certifying highlyskilled personnel to raise workplace skills and ensure the smooth transmission of skills to the nextgeneration. The program provides a clear vision of what it takes to be the ultimate professional soas to encourage personnel to develop the skills to become “Meister” instructors to their youngercolleagues and become more aware of their important role as certified experts in passing on theirskills to younger personnel.

Training Centers (Pipeline Training Center, Emergency Management Training Center,Transmission Training Center)Off-JT is provided at three centers organized according to line of work. In addition to providingregular training for employees of Tokyo Gas Group and partner companies in the form of basicinduction training, training to raise work performance capacity, and common core training, thesecenters deliver customized training and onsite training, loan training resources such as tools andvideos, and offer open access to their facilities.

Training facilities

Pipeline Training Center (Tsurumi)

Emergency Management Training Center (Tsurumi)

Transmission Training Center (Soka)

Use of Training Management SystemThe above training is administered via a system called STUDY II (and a qualification managementsystem in the case of the Transmission Training Center). Employees of Tokyo Gas Group and partnercompanies can apply for training using STUDY II, and information on the system can be shared withother systems to make it easier for employees to manage their personal learning records .

Tokyo Gas Group Mindset Orientation

In April 2017, all new Group employees received “Tokyo Gas Group Mindset Orientation.” Thepurpose of this orientation is to instill a strong sense of belonging in new recruits in order tomake them more aware of being part of our Group. The orientation program includes lectureson subjects such as the Groupʼs main policies, customer satisfaction, compliance, humanrights, the environment, diversity, and CSR. Athlete Keiichi Kimura (employed in the PersonnelDepartment) also spoke on his experience of winning silver and bronze medals in swimming atlast yearʼs Rio 2016 Paralympics and his future challenges in order to share the importance ofhaving a passion for tackling new challenges.

Tokyo Gas Group Mindset Orientation session Keiichi Kimura

Transfers and Rotations

■Assigning the right people to the right jobsWe aim to allocate the right person to the right position to ensure that our employees can feelchallenged by and gain satisfaction from their work. Every year, employees have an interview withtheir superiors regarding their career plan. Their own self-evaluation is entered into the personnelsystem together with the evaluation by their superiors to be utilized for future relocation plans andfurther career development.

■Open recruitment system and free agent systemTo supplement the regular method of personnel transfers, we operate an "open recruitment system"through which employees can put themselves forward for positions in new business projects andother opportunities, as well as a "free agent" system that allows employees to challenge themselvesby applying for positions that they wish to be considered for.

Top Commitment

Tokyo Gas Group will promote diversity to ensure sustainable growth and development intothe future.With competition between companies in the energy market continuing to intensify, the Tokyo GasGroup aims to maintain its position as the customer's choice and achieve sustainable growth anddevelopment in the future by realizing its Challenge 2020 Vision. One important priority for theGroup as a whole is the promotion of diversity. For us to continue to meet diversifying customerneeds, it is vital that every single person employed by the Group should have the chance to exceland make maximum use of his or her knowledge, ability, and experience. We are committed as acorporate group to developing and expanding systems to achieve this goal and foster employeeawareness of it while continuing to proactively create an organizational culture in which everyonecan excel, regardless of gender, age, disability, nationality, or whether they were hired straight outof university or mid-career.

June 2016 Michiaki Hirose

President Tokyo Gas Co., Ltd.

Basic Policy

Tokyo Gas Group will promote diversity in order to become a corporate group that givesevery single working person the chance to excel by making maximum use of theirknowledge, abilities, and experience.(1)We aim to realize an organization (diverse working styles and productivity enhancement) inwhich every person accepts each other's working style while enhancing productivity.(2)We regard promoting the success of women as the beginning of the promotion of diversity, andwill continue to undertake this proactively.(3)We will establish a "Group Diversity Promotion Team" and promote diversity in the entire Groupin an integrated manner with management.


Framework for Promoting Diversity

A Group Diversity Promotion Team has been formed in the Personnel Department. This worksclosely with management to promote diversity in Tokyo Gas Group by implementing a range ofmeasures focused on promoting womenʼs participation in the workplace, encouraging employmentof people with disabilities, and providing career support for seniors.

Framework for Promoting Diversity at Tokyo Gas Group

Diversity Promotion at Tokyo Gas Group in Overview

Active Training and Elevation of Women

Tokyo Gas has long worked to actively elevate women in the workplace. We are now furtherstepping up our efforts to foster employee awareness and create an organizational culture conduciveto developing the careers of female employees through a variety of initiatives. These includeseminars and a system to assist those with young children to balance work and childcare.We are also steadily promoting more women. The ratio of women in management positions hasclimbed 3.0 percentage points over the past eight years from 4.1% in 2009 to 7.1% in April 2017.This includes a dramatic expansion in the number of departmental heads and managers from 4 to17, and in April 2016 we appointed our first female Executive Officer. By 2020, our aim is to have10% of all management positions filled by women.

Ratio of Women in Management *1, 2

*1 Numbers of Tokyo Gas employees (registered personnel) as of April 1 in each fiscal year.

*2 Employees in positions with subordinates or employees of equivalent status.

Average Age by Gender *3

*3 Numbers of Tokyo Gas employees (registered personnel) as of the end of March in each fiscal year.

Average Length of Employment by Gender *4


Rate of Return to Work after Parental Leave *5, 6


*6 Percentage of employees taking parental leave each fiscal year who returned to work at the company.

Hiring of Men and Women *7

*7 Data are for Tokyo Gas hires of fresh graduates of graduate schools, universities, or technical colleges from among all new hires, and are

as of April 1 for each fiscal year.

■Action to promote women's participation in the workplace (under the Act on Promotion ofWomenʼs Participation and Advancement in the Workplace)Tokyo Gas is actively fostering employee awareness and developing an organizational cultureconducive to the elevation and support of women in the work place through seminars for bothfemale employees and their managers.

Seminars and Lectures Held in FY2016*8

Month/year Theme No. ofparticipants

May 2016 Seminar for managers with subordinates who have smallchildren 40

October 2016 Panel discussion on promoting womenʼs participation in theworkplace 300

October 2016 lecture program on promoting the active participation of diversehuman resources 2016 350

November2016 Seminar on women's career development 31

November2016 Seminar on career development for parents of small children 12

March 2017 Seminar for employees returning to work after parental leave 24*8 Data are on Tokyo Gas Group employees.

Education for Female Employees

Seminar on women's career developmentThese seminars for women in their twenties provide pointers on active career development in orderto help them build their careers from an early stage.

Seminar for employees returning to work after parental leaveThese seminars are taken by employees on parental leave before they return to the workplace. Theyare designed to give them a clearer picture of work arrangements after their return and how theycan work with superiors and coworkers to both smooth their return and balance work andparenting.

Seminar on career development for parents of small childrenThis is held for employees who have returned from parental leave and have been balancing workand parenting for a certain period in order to give them an opportunity to consider their long-termcareer development.

Manager Awareness-Raising and Development of Organizational Culture

Seminar for managers with subordinates who have small childrenThese seminars for managers with subordinates who have small children give participants a betterunderstanding of how to support employees' work-parenting balance, and equip them with themanagement skills needed to nurture subordinates and help them make the most of their abilities.

Lecture program on promoting the active participation of diverse human resourcesOutside speakers give talks to department heads, managers, and other relevant personnel on howto create workplaces that provide opportunities for all. The 2016 lecture was delivered by YukakoUchinaga, Board Chair of J-Win (an NPO).

Panel discussion on the promotion of womenʼs participation in the workplaceIn October 2016, a panel discussion featuring Tokyo Gas executives was held on “FurtherEmpowering Women at Tokyo Gas.” The panelists discussed expanding the types of jobs open towomen and transforming management mindsets in front of an audience of some 300. The eventgenerated strong interest among our female employees.

Promoting female employment in the pipeline network division

Since fiscal 2010, female employees have been continuously assigned to work that used to bethe preserve of male employees, such as night-shift and site work, and we will continue toexpand the types of jobs and diversify the career paths that female employees can pursue.Since fiscal 2015, career development seminars have been held for women working in thepipeline network division. These provide an opportunity for female employees to learn aboutwomen working on site, share views on balancing work and parenting, and consider their owncareer development.

■External recognitionWe have been awarded the “Kurumin” certification logo by the Minister of Health, Labour andWelfare under the Act on Advancement of Measures to Support Raising Next-Generation Children forour active support of parents with young children. In fiscal 2016, we were also designated aNadeshiko Brand by the Ministry of Economy, Trade and Industry and the Tokyo Stock Exchange forour active encouragement of womenʼs participation in the workplace.

Continuous Career Development Support

In April 2016, Tokyo Gas established a new system of career support for seniors to replace itsexisting post-retirement support arrangements. The new system provides personalized careerdevelopment support, including training and interviews with consultants in the PersonnelDepartment, to help employees in their fifties to develop their careers. Tokyo Gas has also beenretaining employees beyond the mandatory retirement age since before the revised Act onStabilization of Employment of Elderly Persons*1 took force in order to provide appropriateemployment opportunities to employees who have both the ability and motivation to continueworking.*1 This act is designed to help stabilize the employment of older people. It entered effect in April 2006 and requires employers to either (1)

abolish mandatory retirement, (2) raise the mandatory retirement age, or (3) introduce arrangements for continued employment beyond

the age of 60.

State of Reemployment after Mandatory Retirement

Unit 2014 2015 2016

Number mandatorily retired(total number)*2

Persons 387 319 348

Number reemployed

Tokyo Gas *3Persons

(%)282

（72.9）241

（75.5）251

（72.1）

Subsidiaries andaffiliates, etc.

Persons (%)

34 （8.8）

26 （8.2）

42（12.1）

*2 Number of people hired as "career employees" (contract employees rehired after reaching mandatory retirement age).

*3 Data are for Tokyo Gas on a non-consolidated basis.

Employment of People with Disabilities

At Tokyo Gas, people with disabilities perform all kinds of work alongside our other employees.People with disabilities made up 2.10% of our workforce as of March 2017, which is well above thestatutory employment rate.*1 The Liaison Committee to Promote Employment of Disabled Peoplelaunched in April 2016 seeks to foster understanding in order to further expand employment andcreate more opportunities for people with disabilities to succeed professionally at Tokyo Gas. It isalso working to develop safer, more accessible working conditions.*1 The statutory employment rate is determined by the Employment Rate System for Persons with Disabilities, and is the percentage of

regular workers who are required to be employees with disabilities.

Initiatives to Prohibit Discrimination against LGBT People

Our Code of Conduct, which lays down the values and standards of behavior that everyone workingat Tokyo Gas Group is required to share, explicitly prohibits discrimination and harassment on thegrounds of sexual orientation or gender identity. In addition, our advisory service desks fulfil therequirement that employers adopt “employment management measures concerning problemscaused by sexual harassment in the workplace” specified in Article 11 of the Act on Securing, etc. ofEqual Opportunity and Treatment between Men and Women in Employment. We provide training inLGBT issues (which is incorporated into training courses for human rights promotion leaders, forexample) and organize related talks given by outside speakers for mid-level managers and humanresource managers.

A training course for human rights promotion leaders

Introduction of Gender-Neutral Accessible Bathrooms

In March 2016, we introduced three gender-neutral accessible bathrooms at Tokyo Gas Head OfficeBuilding. These are equipped with a range of facilities, including equipment for wheelchair users andostomates,* and “fitting boards” for use when changing clothes* An ostomate is a person who has undergone surgery to create an artificial opening in the body (a “stoma”) to discharge waste due to

damage to the digestive tract or urinary tract caused by illness or accident.

Creating a Workplace Environment that Allows for Balance betweenWork and Childcare or Nursing Care

As one of the main pillars of our personnel policy, we are working to strengthen our organization bybringing out the skills of each and every employee so they can achieve their full potential. Wepromote the kind of management that cultivates and makes the best use of employees' diversecharacteristics and abilities, and creates a workplace environment that is comfortable for employeesat various stages of their lives, so that all are able to meet the expectations for their respective rolesand make the most of their abilities.In April 2014, we extended the period of eligibility to work shorter hours in order to care for a smallchild from the end of the childʼs third grade to the end of sixth grade, and we developed moregenerous parental leave, nursing care leave, and shortened working hour schemes than required bylaw. Provision was further enhanced in April 2017 when it was made possible for employees toflexibly change the date on which they intended to return to work from parental leave if they foundthemselves unable to obtain a nursery place for their child. We also offer systems that allowemployees to take a leave of absence for fertility treatment, to attend events at their children's andgrandchildren's schools, and to provide nursing care for family members, and these systems arebeing widely used by our employees.We have introduced other arrangements too to give employees a more flexible choice of work styles,including leave to allow employees to accompany a spouse working overseas.

Main Systems and Numbers of Users *1

System Details Item Unit2014 2015 2016

Male Female Male Female Male Female

Parentalleave

Until end of Aprilimmediatelyfollowing childʼs3rd birthday

Number ofusers Persons 0 80 2 83 2 65

Rate ofreturn towork*2

（%） - 99 100 100 100 100

Shorterhours forparents ofsmallchildren

During pregnancyand until childcompletes 6thgradeFlex-time systemfor childcare isavailable.

Number ofusers

Persons 221 213 3 224

Nursingcare leave

Up to 3 years forone relative withinthe second degreeof kinshiprequiring nursingcare.

Number ofusers

Persons 2 3 0 4

Nursingcare work

Up to 2 years for one relative within the second degree of kinship requiring nursing care.Flex-time system for nursing care is available.

Number ofusers Persons 0 0 0 3

Leave toaccompanypartner

For employeesaccompanying aspouse workingoverseas

Number ofusers Persons 1 4 4

Communityserviceleave

Special leave(paid leave) for upto 5 days within 1year

Totalnumber ofusers(includingrepeatusers)

Persons 42 88 48

Sabbaticalsystem

For employeeswho reach the ageof 30, 35, 40, and50Provided withcommemorativegifts and specialleave (paid leave)

Number ofusers Persons 626 594 514

*1 Main Systems and Numbers of Users

*2 Percentage of employees taking parental leave each fiscal year who returned to work at the company.

Support for Balancing Work and Parenting

Rethinking Work Styles

In order to give all our employees greater opportunities to cultivate and make maximum use of theirskills and strengths, we consider it is essential to raise organizational productivity and create diversework styles. We have introduced flextime arrangements, which cover about 90% of our employees(excluding shift workers and some other personnel). We are also revamping our work styles with theaim of creating opportunities to rethink how work and tasks should be approached to improve workefficiency and level workloads.

■FlextimeAfter consulting with their superiors, employees can choose to start and finish work each day at anytime between 7 a.m. and 10 p.m., as long as they meet core hours from 10 a.m. to 3 p.m.

■HomeworkingHomeworking arrangements were trialed in fiscal 2016 and fully introduced in some workplaces infiscal 2017. By digitizing documents and using information and communications devices to raiseproductivity, we have made it possible for employees to work from home. Over 350 employeeshave already applied to use these arrangements.

■Mobile workingArrangements have been introduced to allow employees to work away from the office using mobilecommunication devices in order to make effective use of time in transit and spare moments so as toraise work efficiency.

■Designated "no overtime days"At Tokyo Gas, one day each month is designated as a day for employees to leave work on time. Thisprovides an opportunity for employees to take another look at how they approach their work so thatthey can achieve maximum results within a limited period of time.

■Prohibition of overtime from 10 p.m.Work after 10 p.m. has been prohibited in principle since April 2017 to protect employee health.

■Premium FridaySince February 2017, employees have been encouraged to take a half day off or use flex-time tofinish work early on the last Friday of each month as long as this does not disrupt work. The aim ofthis is to get us all thinking about how we approach our work and to further raise productivity.

■Morning-oriented work to make use of summer eveningsIn July and August only, employees are encouraged to start and finish work around 30-60 minutesearlier than usual as long as this does not disrupt work.

■Encouraging summer leave-takingThe period from July to September has been designated "summer leave-taking time" with the aimof getting all employees to take at least seven days of paid leave during this window.

■“Waku Waku Work” work style innovationIn fiscal 2016, we established an Operational Reforms Project Department to explore new workstyles for the Group.Punning on the similarity of the Japanese word for “to bubble up or be excited about something”(waku) and the word “work,” we have defined positive, exciting styles of work that generate valueand raise productivity as “Waku Waku Work”̶work that is, in other words, value creating, varied,and fun. Using ICT and other resources, we have trialed the following three forms of Waku WakuWork categorized according to objective.The IT Application Dept. has been given responsibility for these programs from fiscal 2017, andwork style innovation continues. Moving forward, exciting waku waku work styles tailored to theneeds of each workplace will be explored and implemented.

Challenges to Overcome to Achieve Goals

* Working hours = hours invested + hours expended

Hours invested: time used to generate value (thinking, communicating, etc.)

Hours expended: time consumed without generating value (administrative tasks, searches, transit time, etc.)

Three Styles of Work as Means of Operational Reform

Basic Principles on Occupational Safety and Health Activities

■Basic Policy

Occupational safety and health, which protects the lives and health of workers, is the foundationof a company's existence and a social responsibility that all companies must bear. Tokyo GasGroup believes that the values of "Safety, Security, and Reliability" that we advocate for ourcustomers as our corporate brand are accepted only when we continue to secure our ownoccupational safety and health. We consider occupational safety and health to be one of the mostimportant challenges of corporate management.Our Group gives the highest priority to ensuring safety and health, and enforces compliance,including adherence to all related laws and regulations, making every effort to eliminate the riskof disasters and accidents with the goal of being a company with an excellent safety and healthrecord.

In order to put the Basic Policy into practice, Tokyo Gas Group will take concerted action to promotesafety and health in line with objectives established by workplace leaders in each organization basedon the following Group Occupational Safety and Health Policy.

■Group Occupational Safety and Health Policy

All employees, from top management down, will actively promote safety and health activitiesto safeguard safety and health for all.

1.

In full awareness of its public mission and social responsibilities, the Group will strictlyobserve internal regulations on safety and health and work procedures, as well as legislationsuch as the Industrial Safety and Health Act and the Road Traffic Act.

2.

The Group will promote and work to further enhance its occupational safety and healthmanagement system (OSHMS) in tandem with the permeation of chemical risk assessments. It will further ensure that "point and check" procedures are always followed and work toreduce accident risks and eliminate industrial accidents in line with policies set by leaders inthe workplace.

3.

To reinforce the Tokyo Gas brand's reputation for safety, security, and reliability, leaders in theworkplace will lead action by all to prevent traffic accidents. Particular attention will be paid toreducing accidents caused by younger employees, accidents in parking areas, and accidentscaused by carelessness, with the aim of cutting the number of traffic accidents caused byown negligence and accidents causing injury to others by 20% from the previous fiscal year.

4.

Action will be taken to encourage all employees to receive health examinations and toimplement a stress check system throughout the organization. The Group will use the resultsto enhance measures to prevent mental and physical illness and to maintain and improvehealth. In addition, the Group will accelerate measures to prevent passive smoking to ensurefull implementation by the end of the fiscal year.

5.

Support will be provided to promote safety and health activities so that all Tokyo Gas Groupmember companies can more smoothly and without exception take their own proactive actionon health and safety.

6.


Implementation of Safety and Health Education Programs (FY2016)

Details Period Number ofparticipants

Level-specific training on safety &health and on safety planning

New employee training April (1time) 291

Safety and health trainingfor new managers

April-May (7times） 306

Lectures on occupational safety and health (Tokyo Gas Group) July 390

Foreman training (by law)April-

February (6 times）

156

Training for safety administrators at the time of appointment (by law) April 41

Hygiene supervisor training May 75

Traffic safety and driving training (new drivers, people involved inaccidents, etc.) April-March 898

Safe driving with attendant instructors utilizing drive recorders May-March 795

Seminars on promoting health April-March (53 times) 2510

Maintaining and Enhancing Health

■Occupational health activitiesA Health Insurance & Employeesʼ Welfare Section has been established in the PersonnelDepartment, and this is pursuing a range of occupational health activities led by occupational healthphysicians to maintain and improve employeesʼ health.We are committed to ensuring that all employees undergo regular health checkups, which are aprerequisite for good health, and make every effort to ensure early detection of illnesses, makeeffective use of outside medical institutions, and provide appropriate follow-up for employees foundto have health issues.We also work closely with workplaces and individuals to provide mental and general healthcounseling, improve the working environment, and prevent recurrences of illnesses as we strive toprevent mental and physical health problems and to maintain and improve health.

■Approaches to mental healthWe are continuing and strengthening action on mental health, as about 60% of all sick leave takencan be attributed to mental health problems.（1） Stress checks

Stress checks performed as required by law since fiscal 2016Checks of workplace culture performed

（2）Training for line managers in tackling mental health problems in the workplaceTraining for managers in improving the workplace environment and tackling mental healthproblems in the workplace provided via manager training seminars, etc.

（3）Individual supportProvision of individual support through the stress check program and support for employeesreturning to the workplace after a prolonged absenceIncorporation into our consultation program of telephone consultations and counseling providedby outside agencies to complement the services provided by resident occupational healthphysicians and nurses

■Measures to prevent lifestyle-related diseasesWe are rolling out and implementing the following activities to prevent lifestyle-related illnesses:（1）Embedding of good exercise habits（2）Prevention of passive smoking（3）Quit-smoking support（4）Health education for younger employees（5）Support for drinking in moderation（6）Support for comfortable sleep（7）Encouraging employees to maintain their "best weight"

■Health support for employees posted overseasHealth care support is provided for the growing number of employees being posted overseas due tothe globalization of our operations.（1）Full implementation of statutory health checkups before and after posting（2）Recommendation of vaccinations against infection diseases according to location of posting（3） Health counseling for employees and their families

■Countermeasures against novel influenza strainsA Secretariat for Measures against Novel Influenza Strains has been established to stockpile andmanage supplies for protecting against infections and dealing with periods of quarantine, and toprovide the latest information via the company intranet and other channels.

An employee being interviewed by occupational health staff

Preventing Work-related Injuries

■Promotion arrangementsTokyo Gas Group has established a Central Safety and Health Committee chaired by the executiveofficer in charge of the Personnel Department. This committee formulates policy on safety andhealth activities, and considers and promotes the implementation of measures to prevent accidentsand disasters as well as to improve mental and physical health in the Group. It also judges theGroupʼs safety and health awards. Matters considered by the committee are reported as necessaryto the Corporate Executive Meeting and the Board of Directors so that they can be discussed anddecided.

Structure of Safety and Health Management

■Preventing Work-related InjuriesIn fiscal 2006, Tokyo Gas introduced the company-wide Occupational Safety and HealthManagement System (OSHMS) with the aim of further strengthening daily occupational safety andhealth activities at the workplace level in order to prevent work-related injuries. By utilizing the riskassessments introduced as part of this system, we are also working to quantify and mitigate the riskof accidents.We further provide level-specific education on occupational safety and health and safetyconsiderations. Additionally, we proactively train legal administrators through a variety of programs.We comply with the Industrial Safety and Health Act and related legislation by periodicallyconfirming and checking occupational safety and health systems and other arrangements. We planto further enhance our occupational safety and health management system (OSHMS) forimplementing all industrial safety and health activities using PDCA cycles. We will further strengthenour action on and raise awareness of occupational safety and health, and will utilize the commoncompany-wide framework to further reduce and eventually eliminate work-related injuries by urgingemployees to take steps themselves to prevent such injuries in accordance with conditions in theirworkplace.

How Our Occupational Safety and Health Management System Operates

■Prevention of traffic accidentsMaking use of outside facilities, we operate our own in-house driving license system to help preventtraffic accidents by providing various forms of driver training to new drivers, drivers who havecaused accidents before, and middle-aged and older drivers. When employees renew their licenses(usually once every five years), they receive behind-the-wheel instruction from outside drivinginstructors using drive recorders. By improving their driving skills and being made aware of theirown driving behavior, they are able to correct any unsafe driving habits they might have, andingrain safe driving habits.Attaching the utmost importance to safety, we use various training and other opportunities toinstruct drivers and make them more aware of the importance of always "stopping and looking"when they drive with the aim of reducing traffic accidents.We also assign safety driving instructors who have undergone special training to each workplace toprovide everyday instruction on safety through both behind-the-wheel and classroom training. Inaddition to these measures, we periodically publish a safety management handbook, furnish safedriving managers with information, and make active use of the opportunities presented by theJapanese government's annual nationwide traffic safety campaigns in the spring and autumn toprovide detailed traffic safety information to each workplace and raise safety awareness.

Change in Number of Work-related Injuries, Number of Traffic Accidents, Rate of Lost Work-time Injuries, and Severity Rate *1

Unit 2014 2015 2016

Work-related injuries *2Cases

29 28 23

Traffic accidents 139 110 141

Rate of lost work-time injuries *3 ,5-

0.48 0.49 0.41

Severity rate *4 ,5 0.006 0.007 0.003

*1 Data for regular and semi-regular employees of Tokyo Gas.

*2 Includes accidents not resulting in lost worktime.

*3 Rate of people taking work leave per 1 million total actual working hours.

*4 Number of workdays lost as a result of accidents/injuries per 1,000 total actual working hours.

*5 Includes injuries due to traffic accidents caused by others.

Trend in Rate of Lost Work-time Injuries *6

*6 Rate of lost work-time injuries: Rate of people taking work leave per 1 million total actual working hours

Trend in Severity Rate *7

*7 Severity rate: Number of workdays lost as a result of accidents/injuries per 1,000 total actual working hours

■External recognitionWe were designated a 2017 Health & Productivity Stock by the Ministry of Economy, Trade andIndustry and the Tokyo Stock Exchange in recognition of our attainment of 100% participation inregular health checkups for employees, promotion of measures to prevent passive smoking,lifestyle-related diseases, and mental health problems, and other health-related initiatives.

【TOPICS】Sodegaura LNG Terminal Awarded the 20 16 Prime Ministerʼs Award forContributions to Safety

Sodegaura has been accident free for 31 years thanks to the development of safety and healthmanagement systems and active engagement in safety and health activities by all workers. Inrecognition of its contribution to preventing occupational accidents and improving industrialsafety, the terminal was awarded the 2016 Prime Ministerʼs Award for Contributions to Safety.

2016 Prime Ministerʼs Award for Contributions to Safety

enhancement of people-centered management base such as women's career development, employees...

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