HOKKAIDO GAS CO., LTD.

Governance

The Board of Directors is a company with a Board of Corporate Auditors, comprising 8 directors (of which 3 are outside directors, an outside ratio of 37.5%). The company has introduced an executive officer system and has established a Compensation Committee (with a majority of independent outside directors) as an advisory body to the Board of Directors. A Nomination Committee has not been established.

Risk Management

The Management Committee has established a company-wide risk management framework, with the Internal Control Promotion Group (3 members) serving as the promotion secretariat. Risks such as climate change, natural disasters, compliance, and information security are monitored by each department and group company, with a system in place to bring important matters before the Board of Directors and the Managing Directors' Committee.

Shareholder Returns

Under a dividend policy based on progressive dividends with a target DOE of 2.5%, the annual dividend for FY2026 (ending March 2026) is ¥24.50 per share (interim ¥11.50 + year-end ¥13), an increase of ¥5.50 year on year. Payout ratio is 18.8%, and the ratio of dividends to net assets is 2.4%. No mention of share buybacks.

ESG

Under "Challenge 2030," the company has set a target of contributing to a CO2 reduction of 1.4 million tons by FY2030, and is promoting decarbonization measures such as renewable energy power source development, energy conservation, hydrogen, and methanation. In terms of human capital, the company is implementing a variety of initiatives, including promoting DE&I, developing DX talent, advancing women's participation (female employee ratio of 17.7%), and achieving a 90% male childcare leave utilization rate.

Board Members