Osaka Gas Co Ltd

Osaka Gas considers the response to climate change, including the implementation of the Transition Strategy, as one of the most important management issues, and manages various aspects of the response to climate change as the Daigas Group through the ESG Promotion Committee (Management Committee) and ESG Promotion Committee as shown in Figure-7. As part of this process, the Daigas Group monitors the roadmap initiatives and important matters are discussed and reported to the Board of Directors, so that the transition strategy is managed as a Daigas Group. In addition, the Daigas Group's response to climate change is incorporated in its corporate philosophy as a key issue in its Charter of Business Conduct. In this context, activities are being carried out in line with a roadmap based on the Daigas Group Carbon Neutral Vision and the Medium-Term Management Plan 2023 'Creating Value for a Sustainable Future.' [...] Specifically, the Finance Team of the Finance Department consolidates and selects the project candidates based on the eligibility criteria, and then the ESG Promotion Office of the Planning Department evaluates and confirms their compliance with the various frameworks. In addition, the Finance Team of the Finance Department confirms, when necessary, with the business unit in charge of the project in question, and after drafting the required approval, the President makes the final decision in accordance with internal regulations. [...] The proceeds are managed by the Finance Department on an annual, project-by-project basis, using an internal system and dedicated ledgers. The proceeds are managed in cash or cash equivalents in an amount equal to the unallocated proceeds until the full amount of the proceeds has been allocated.

Describe the process(es) your organization has in place to ensure that your engagement activities are consistent with your overall climate change strategy[…]The Group's climate change strategy is clearly positioned along with the Group's overall business strategy in the "2030 Long-Term Management Vision" and the "Carbon Neutral Vision.† Therefore, any direct or indirect engagement activities that influence policy must be consistent with the strategies of the Group's business and climate change response. The processes of confirming this are as follows.
- The Executive Board oversees that these engagement activities are consistent with the strategies of the Group's business and climate change response. Specifically, In the Executive Board, of which Members consist of the President, the Vice Presidents, the Directors, and the Heads of business units, held every month, trends in policies relating to climate change and our direct and indirect engagement activities are reported and shared.
- At the "ESG Committee"*1 that oversees the Group's environmental activities and matters relating to climate change and its subordinate organization, the "Environmental Subcommittee"*2, the following subjects are reported and discussed.
- The trends of policies relating to climate change;
- The Group's business plans and results
- The trend survey by specialized research institutes,
At the same time, along with the appropriateness of our activities involving policies, we ensure and confirm that these are consistent with our group's climate change strategy.

* 1 The chairperson is the "Head of ESG Promotion " (Vice President Executive Officer), and the related organizational heads participate as a member. Held four times annually.
* 2 Members are related organization heads. Held three times annually.