Kansai Electric Power -power with heart-

Corporate Social Responsibility

We have applied the principle of materiality to specify important issues, and we are conducting PDCA cycles for our efforts with the goal of clarifying the issues that our company should be working on now in order to make both our corporate group businesses and the societies in which they are active sustainable. In addition, we are seeking to contribute to the Sustainable Development Goals (SDGs), which are global issues at the highest priority and clarify “The Future We Want” as we approach 2030, through related efforts by ourgroup with a focus on materiality.

1

In the Kansai Electric Power Group Medium-term Management Plan (2016–2018),
we identified risks that could obstruct realization of the plan as well as opportunities for facilitation.

Main risks and opportunities in our Medium-term Management Plan
Focus Important measures Main risks and opportunities identified
Risks Opportunities
Enhancement of competitiveness in comprehensive energy business Enhancement of marketing and sales strategies
  • ⋅ Intensified competition with other businesses
  • ⋅ Subordination of rate options and cost competitiveness
  • ⋅ Full liberalization of the retail market for electricity
  • ⋅ Increased number of "Hapi e-Miruden" participants
Strengthening of competitiveness in power supply (realization of a power structure achieving S + 3E)
  • ⋅ Results of new regulatory requirement compliance, litigation and other factors
  • ⋅ Trends in back-end nuclear power operations
  • ⋅ Trends in environmental policies, including global warming countermeasures (thermal power)
  • ⋅ Energy mix trends
  • ⋅ Technological innovations related to renewable energy
Active expansion of the gas business
  • ⋅ Delay in acquisition of skills and expertise for gas businesses
  • ⋅ Sales to the household gas market fully liberalized in April 2017
Active promotion of alliances among operators  
  • ⋅ Building of effective alliances
Further promotion of reform of cost structure  
  • ⋅ Cost reductions through work outsourcing and supplier diversification
Establishment of new pillars for growth Dramatic growth of international businesses
  • ⋅ Country risks
  • ⋅ Occurrence of human rights problems and other issues at overseas bases
  • ⋅ Increased energy consumption overseas
Further growth of Group businesses
  • ⋅ FTTH market saturation
  • ⋅ Declining population and number of households in Japan
  • ⋅ Expansion of MVNO and cloud markets
  • ⋅ Bundled sales with group services
Promotion of innovation to accelerate growth
  • ⋅ Delayed response to technological innovations
  • ⋅ Development of new businesses, products and services
Strengthening group management foundation Promotion of stable transmission and distribution services
  • ⋅ Natural disasters and large-scale facility accidents
  • ⋅ Continued aging of facilities
  • ⋅ Utilization of smart meter data
  • ⋅ Enhancement of transmission and distribution networks
Reform of organization and governance  
  • ⋅ Establishment of group governance that is suitable for the competitive environment
Strengthening foundation of human resources
  • ⋅ Reduced employee performance and technical abilities
  • ⋅ Problems related to safety and compliance
  • ⋅ Promotion of diversity
  • 2

    Comprehensively evaluate the identified risks and opportunities for their degrees of impact on stakeholders and their relevance to the items in the GRI Standards by using analysis sheets, for example.

  • 3

    As prospective materiality topics, select those related to the risks and opportunities evaluated in step 2.

  • 4

    Confirm the validity of the prospects selected in step 3 based on our CSR Action Principles, the results of monitoring investigations of ordinary consumers and other measures.

  • 5

    Identify 18 topics for materiality through deliberations by the CSR Promotion Council, which has the president as its Chairman.

We have organized the identified materiality topics by CSR Action Principles and are reporting our main efforts in this document. In response to changes in the business environment and in the expectations and demands of stakeholders, we will revise materiality selections and enhance efforts to contribute to sustainable development.

Sustainable Development Goals

Sustainable Development Goals (SDGs)

In September 2015, Sustainable Development Goals (SDGs) were adopted by every participating country at a United Nations summit. At the summit, 17 goals,
which included poverty, hunger, energy and climate change, that should be achieved by 2030 were proclaimed.