The Chugoku Electric Power Company - Climate Change 2019Short-term 0 1 Fiscal year 2018 - 2019 Medium-term 1 3 Fiscal year 2019 - 2021 Long-term 3 12 Fiscal year 2021 - 2030 C2.2 (C2.2)

The Chugoku Electric Power Company - Climate Change 2019

C0. Introduction

C0.1

(C0.1) Give a general description and introduction to your organization.

• Company name: The Chugoku Electric Power Co., Inc.

• Address (Head Office): 4-33 Komachi, Naka-ku, Hiroshima 730-8701 Tel: +81-82-241-0211

• Representative directors:

Tomohide Karita, Chairperson of the Board; Mareshige Shimizu, President & CEO

• Established: May 1, 1951

• Paid-in capital: 185,527 million yen

• Number of shares issued: 371,055,259

• Number of shareholders: 115,204

• Number of employees: 9,021

• Electricity sales

Residential (lighting) 17,488 million kWh

Commercial, industrial & other 35,456kWh

Total 52,944 million kWh

• Net sales (operating revenue) 1,280,501 million yen

C0.2

(C0.2) State the start and end date of the year for which you are reporting data.

Startdate

End date Indicate if you are providing emissions data for pastreporting years

Select the number of past reporting years you will be providingemissions data for

Row1

April 12018

March 312019

No <Not Applicable>

C0.3

(C0.3) Select the countries/regions for which you will be supplying data.Japan

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C0.4

(C0.4) Select the currency used for all financial information disclosed throughout your response.JPY

C0.5

(C0.5) Select the option that describes the reporting boundary for which climate-related impacts on your business are beingreported. Note that this option should align with your consolidation approach to your Scope 1 and Scope 2 greenhouse gasinventory.Other, please specify (The scope of the report is The Chugoku Electric Power Co., Inc. on a disaggregated basis.)

C-EU0.7

(C-EU0.7) Which part of the electric utilities value chain does your organization operate in? Select all that apply.

Row 1

Electric utilities value chainElectricity generationTransmissionDistribution

Other divisionsPlease select

C1. Governance

C1.1

(C1.1) Is there board-level oversight of climate-related issues within your organization?Yes

C1.1a

(C1.1a) Identify the position(s) (do not include any names) of the individual(s) on the board with responsibility for climate-related issues.

Position ofindividual(s)

Please explain

President As the chief executive responsible for environmental management throughout the Company, the President oversees environmental management onclimate-related issues. Specifically, in order to promote efforts to address climate-related issues, the President regularly confirms the status andresults of implementation during the fiscal year and provides instructions.

C1.1b

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(C1.1b) Provide further details on the board’s oversight of climate-related issues.

Frequencywith whichclimate-related issuesare ascheduledagenda item

Governancemechanisms intowhich climate-related issues areintegrated

Please explain

Scheduled –somemeetings

Reviewing andguiding strategyReviewing andguiding majorplans of actionReviewing andguiding riskmanagementpoliciesSettingperformanceobjectivesMonitoringimplementationand performanceof objectivesMonitoring andoverseeingprogress againstgoals and targetsfor addressingclimate-relatedissues

The Board of Directors determines basic policies, action plans, and environmental goals to promote efforts to address climate-related issues. In addition, the Board of Directors formulates action plans and makes important changes to basic policies,action plans, and environmental targets as necessary. The directors in charge of environmental management for the entireCompany provide an annual report of the status of implementation of their tasks to the Board of Directors. The Board ofDirectors oversees the Directors’ implementation of tasks. Similarly, the Board of Directors monitors risks, including climate-related issues.

C1.2

(C1.2) Provide the highest management-level position(s) or committee(s) with responsibility for climate-related issues.

Name of the position(s) and/orcommittee(s)

Responsibility Frequency of reporting to the board on climate-relatedissues

Chief Operating Officer (COO) Both assessing and managing climate-related risks andopportunities

Quarterly

Sustainability committee Assessing climate-related risks and opportunities Half-yearly

C1.2a

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(C1.2a) Describe where in the organizational structure this/these position(s) and/or committees lie, what their associatedresponsibilities are, and how climate-related issues are monitored (do not include the names of individuals).

The regional co-creation director, who is also the main promoter of environmental management, including climate-related issues,throughout the Company, assists the President in summarizing the entire Company’s environmental management. The COOprovides the necessary guidance to the entire Company upon implementation of the Environmental Action Plan.

Following due analysis, the Chief Operating Officer regularly reports to the Board of Directors on the enforcement status ofenvironmental management, including climate-related issues, on a quarterly basis. The Board of Directors oversees the executionof the tasks of the Chief Operating Officer.

In order to promote climate-related issues and other environmental issues, the Company has established a SustainabilityCommittee chaired by the Chief Operating Officer and has deliberated on and evaluated the status of implementation of importantmatters regarding the Environmental Action Plan decided by the Board of Directors.

With regard to the Environmental Action Plan, the Company has identified the promotion of global warming countermeasures as animportant issue and has formulated an action plan to expand the use of fossil-free energy.

The Environmental Action Plan stipulates the use of the PDCA cycle to address various issues through environmental target-setting, performance evaluation, and plan review.

C1.3

(C1.3) Do you provide incentives for the management of climate-related issues, including the attainment of targets?Yes

C1.3a

(C1.3a) Provide further details on the incentives provided for the management of climate-related issues (do not include thenames of individuals).

Who is entitled to benefit from these incentives?All employees

Types of incentivesMonetary reward

Activity incentivizedEmissions reduction project

CommentIn fiscal 2005, the Company introduced the Environmental Recognition System to recognize those offices, employees, and otherswho have achieved outstanding results in responding to climate-related issues and other environmental issues. Two types ofcommendations were created. These are awarded as Certificates of Commendation and a monetary reward was provided as asupplementary prize. • President’s Commendation • Chief Operating Officer’s Commendation Under this system, the SustainabilityCommittee deliberates on the project submissions and, from the results, the President or Chief Operating Officer determineswhether to award a commendation. In fiscal 2018, we presented one commendation as a President’s Commendation. Fiscal 2018President’s Commendation Activity Name: Reduction of carbon dioxide emissions through use of woody biomass co-combustionSection Receiving Commendation: Coal Ash Contract Group, Power Supply Division, Shin-onoda Power Station

C2. Risks and opportunities

C2.1

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(C2.1) Describe what your organization considers to be short-, medium- and long-term horizons.

From (years) To (years) Comment

Short-term 0 1 Fiscal year 2018 - 2019

Medium-term 1 3 Fiscal year 2019 - 2021

Long-term 3 12 Fiscal year 2021 - 2030

C2.2

(C2.2) Select the option that best describes how your organization's processes for identifying, assessing, and managingclimate-related issues are integrated into your overall risk management.Integrated into multi-disciplinary company-wide risk identification, assessment, and management processes

C2.2a

(C2.2a) Select the options that best describe your organization's frequency and time horizon for identifying and assessingclimate-related risks.

Frequency of monitoring How far into the future are risks considered? Comment

Row 1 Annually >6 years

C2.2b

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(C2.2b) Provide further details on your organization’s process(es) for identifying and assessing climate-related risks.

The Company has established a Risk Management Basic Policy, which outlines a basic approach to risk management, and RiskManagement Regulations, which outline the stipulations for specific risk-management initiatives. These constitute our Company-wide risk management system.

The business risks that impact our business operations include, for example, regulatory risks caused by national policy changes,such as responses to climate and other environmental issues, and physical risks associated with drought and a resulting decreasein water flow.

Consequently, the Company periodically identifies and evaluates risks according to the specific nature of these risks andcontinuously implements risk management by implementing its management plan, including its countermeasures for significantbusiness risks that have the potential to affect the Company’s business operations.

In terms of policy response, the Strategic Risk Council under the chairmanship of the President conducts a comprehensive annualreview of the policy and evaluates the results and effectiveness of the implementation of risk countermeasures.

The Company has established a dedicated organization to oversee Company-wide risk management and provides the guidanceand coordination necessary for appropriate risk management.

The Company’s individual departments and business divisions annually implement the risk management set forth in themanagement plan by reviewing their identification of risk, conducting risk assessments, and considering preventive measures and recovery operations related to the main business, including climate-related risks.

For example, with respect to the physical risks of natural disasters such as typhoons and storm surges, each department andbusiness division focuses on initiatives to minimize disasters after a risk is realized. Each department and business division reportsthe status of risk management related to the main business to the dedicated organization that oversees Company-wide riskmanagement.

In the process of risk identification and risk assessment, risk levels are categorized according to the frequency and impact of therisk.

As for significant business risks, including climate-related risks that should be prioritized for investment of management resources,the Strategic Risk Council reports to the Board of Directors and makes determinations on a policy response, and monitors the statusof that response.

C2.2c

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(C2.2c) Which of the following risk types are considered in your organization's climate-related risk assessments?

Relevance&inclusion

Please explain

Currentregulation

Relevant,alwaysincluded

The Company’s business and CO2 emissions may be affected by a prolonged suspension of nuclear power stations due to strengthenedregulations and policy changes related to nuclear power The Company periodically conducts risk identification and risk assessment andformulates countermeasures for business risks, including current regulatory risks. The Company’s Strategic Risk Council reviewsimportant risks according to their specific nature. The Company also practices ongoing risk management by accommodating the businessoperation policies formulated annually by each department and business division.

Emergingregulation


The Company’s business is subject to the effects of institutional reforms and tax reforms targeting the electricity industry; responses toclimate-related issues and other environmental issues; and policy trends under the Basic Energy Plan. The Company periodicallyconducts risk identification and risk assessment and formulates countermeasures for business risks, including current new regulatoryrisks. The Company’s Strategic Risk Council reviews important risks according to their specific nature. The Company also practicesongoing risk management by accommodating the business operation policies formulated annually by each department and businessdivision.

Technology Relevant,alwaysincluded

If technological innovations contribute to a significant decrease in the cost of generating renewable energy, thereby leading to a rapidincrease in the introduction of renewable energy sources, it may be difficult to adjust for the resulting frequency variations, which wouldinterfere with the stability of the electricity supply. The Company periodically conducts business and financial risk assessments thatencompass technical risks in order to identify, assess, and evaluate risks. The Company’s Strategic Risk Council reviews important risksaccording to their specific nature. The Company also practices ongoing risk management by accommodating the business operationpolicies formulated annually by each department and business division.

Legal Relevant,alwaysincluded

The Company’s business is subject to the effects of power system reforms, such as the liberalization of retail sales and separation ofelectrical power production from power distribution and transmission, which would result in increased competition between existinggeneral electricity providers and new electric power companies. The Company periodically conducts risk identification and riskassessment and formulates countermeasures for business risks, including current legal risks. The Company’s Strategic Risk Councilreviews important risks according to their specific nature. The Company also practices ongoing risk management by accommodating thebusiness operation policies formulated annually by each department and business division.

Market Relevant,alwaysincluded

The Company’s business is subject to the effects of future changes in the Company’s credit rating and market interest rates. TheCompany periodically conducts risk identification and risk assessment and formulates countermeasures regarding current market risks.The Company’s Strategic Risk Council reviews important risks according to their specific nature. The Company also practices ongoingrisk management by accommodating the business operation policies formulated annually by each department and business division.

Reputation Relevant,alwaysincluded

The Company’s business is subject to the effects of any action that violates laws and regulations or contravenes social norms, includingethics and morals, resulting in a decrease in public trust of the Company. The Company periodically conducts risk identification and riskassessment and formulates countermeasures for current reputational risks. The Company’s Strategic Risk Council reviews importantrisks according to their specific nature. The Company also practices ongoing risk management by accommodating the business operationpolicies formulated annually by each department and business division.

Acutephysical


The Company’s business is subject to the effects of a typhoon, storm surge, or other natural disaster that damages equipment or causesa long-term shutdown of the power supply. The Company periodically conducts risk identification and risk assessment and formulatescountermeasures for current acute geophysical risks. The Company’s Strategic Risk Council reviews important risks according to theirspecific nature. The Company also practices ongoing risk management by accommodating the business operation policies formulatedannually by each department and business division.

Chronicphysical


The Company’s business is subject to the effects of sluggish growth in electricity demand due to population decline and economicrecession that would result in decreased electricity sales. The Company periodically conducts risk identification and risk assessment andformulates countermeasures for persistent geophysical risks. The Company’s Strategic Risk Council reviews important risks according totheir specific nature. The Company also practices ongoing risk management by accommodating the business operation policiesformulated annually by each department and business division.

Upstream Relevant,alwaysincluded

The Company’s business is subject to the effects of interruptions in procurement of fuel (including coal, liquefied natural gas, and heavycrude oil) or significant fluctuations in CIF prices and exchange rates. The Company periodically conducts risk identification and riskassessment and formulates countermeasures for current upstream risks. The Company’s Strategic Risk Council reviews important risksaccording to their specific nature. The Company also practices ongoing risk management by accommodating the business operationpolicies formulated annually by each department and business division.

Downstream Relevant,alwaysincluded

The Company’s business is subject to withdrawal of demand and declining rates arising from increased competition between the existinggeneral electricity utilities and new electric power providers. The Company periodically conducts risk identification and risk assessmentand formulates countermeasures for current downstream risks. The Company’s Strategic Risk Council reviews important risks accordingto their specific nature. The Company also practices ongoing risk management by accommodating the business operation policiesformulated annually by each department and business division.

C2.2d

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(C2.2d) Describe your process(es) for managing climate-related risks and opportunities.

Risks

The Company is subject to medium- and long-term risks, including climate-related risks, that may have a significant impact on theCompany’s business. These include migration risks (primarily financial impacts) associated with the expanded introduction ofcarbon taxes on fossil fuels and geophysical risks to the Company’s 98 hydroelectric power stations associated with rapid changesin precipitation.

The Company incorporates a response to these risks into the medium-term management plan formulated annually by eachdepartment and implements it through management.

In keeping with the risk map created by each organization, the person in charge of risk management conducts interviews with eachorganization, mainly on “risks of particular importance,” and reports to the Board of Directors on the status of the responses.

Opportunities

If emissions-reduction regulations are strengthened in the future, medium- and long-term opportunities related to climate changewill arise, such as the option to reduce CO2 emissions by expanding the use of biomass and increasing the amount of powergenerated by of our 98 hydroelectric power stations.

These medium-term opportunities have been incorporated into the Environmental Action Plan so as to formulate an action planand implement PDCA management.

The status of the Environmental Action Plan is reported to the Sustainability Committee and the Board of Directors.

C2.3

(C2.3) Have you identified any inherent climate-related risks with the potential to have a substantive financial or strategicimpact on your business?Yes

C2.3a

(C2.3a) Provide details of risks identified with the potential to have a substantive financial or strategic impact on yourbusiness.

IdentifierRisk 1

Where in the value chain does the risk driver occur?Direct operations

Risk typeTransition risk

Primary climate-related risk driverMarket: Increased cost of raw materials

Type of financial impactAbrupt and unexpected shifts in energy costs

Company- specific descriptionThe Company reduces the risk of fuel price fluctuations by configuring a balanced power supply. As a global warmingcountermeasure, we are achieving progress with the transition to LNG, which has relatively low CO2 emissions. If the fuel costs ofthermal power generation increase, our financial performance and circumstances could be affected.

Time horizonShort-term

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LikelihoodAbout as likely as not

Magnitude of impactHigh

Are you able to provide a potential financial impact figure?Yes, a single figure estimate

Potential financial impact figure (currency)31700000000

Potential financial impact figure – minimum (currency)<Not Applicable>

Potential financial impact figure – maximum (currency)<Not Applicable>

Explanation of financial impact figureWith regard to the financial impact of changes in raw material costs, the Company estimates that a $1 per barrel fluctuation in crudeCIF prices in fiscal 2018 has an impact of about 2.1 billion yen. Accordingly, the impact of the crude oil CIF price fluctuation in 2018on the cost of raw materials is estimated at 31.7 billion yen. (2.1 billion yen × 15.1$/b [=72.1$/b in FY2018 – 57.0$/b in FY2017] =31.7 billion yen)

Management methodIn an effort to reduce our fossil fuel consumption, we are proceeding with the implementation of safety measures under the newregulatory standards applicable to the Shimane Nuclear Power Plant, with the goal of restarting Unit 2 and starting operation of Unit3.

Cost of management500000000000

CommentEstimated total cost of safety measures for the Shimane Nuclear Power Plant.

IdentifierRisk 2


Risk typePhysical risk

Primary climate-related risk driverAcute: Increased severity of extreme weather events such as cyclones and floods

Type of financial impactIncreased capital costs (e.g., damage to facilities)

Company- specific descriptionTyphoons, torrential rains, and other natural disasters have the potential to damage to hydroelectric power plants, thermal powerplants, and other power generation facilities as well as power transmission and substation facilities, resulting in lengthy poweroutages possibly extending over a wide area. Such events could negatively affect the Company’s performance and financialcircumstances.


LikelihoodUnlikely



Potential financial impact figure (currency)

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3600000000



Explanation of financial impact figureAs the financial impact of typhoons, torrential rains, and other natural disasters, the Company posted an extraordinary loss of 3.6billion yen due to the torrential rains that occurred in July 2018.

Management methodFor risks associated with natural disasters, we have established internal regulations and undertaken preparations that includedisaster-response drills and the purchase of non-life insurance.


CommentAdministrative expenses of 300 million yen represent the non-life insurance premium for 2018.

IdentifierRisk 3


Risk typePhysical risk

Primary climate-related risk driverChronic: Changes in precipitation patterns and extreme variability in weather patterns

Type of financial impactIncreased operating costs (e.g., inadequate water supply for hydroelectric plants or to cool nuclear and fossil fuel plants)

Company- specific descriptionThe Company operates 98 hydroelectric power stations in the Chugoku region. Our fuel costs rise in years of low annual rainfalland snowfall caused by drought.








Explanation of financial impact figureAs for the financial impact of drought, the Company calculated the water flow decreased from 105.9% in fiscal 2017 to 92.4% infiscal 2018. In fiscal 2018, the Company estimates the impact on revenues and expenditures as 400 million yen per 1% change inwater flow. Loss of 5.4 billion yen (400 million yen/1% x (94.2%-105.9%))

Management methodIn years of drought, the cost of fuel increases. However, certain adjustments can be made under the Water Reserve System.

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CommentAdministrative expenses of 200 million yen represent the drought reserve for fiscal 2018.

C2.4

(C2.4) Have you identified any climate-related opportunities with the potential to have a substantive financial or strategicimpact on your business?Yes

C2.4a

(C2.4a) Provide details of opportunities identified with the potential to have a substantive financial or strategic impact onyour business.

IdentifierOpp1

Where in the value chain does the opportunity occur?Direct operations

Opportunity typeEnergy source

Primary climate-related opportunity driverUse of lower-emission sources of energy

Type of financial impactReduced operational costs (e.g., through use of lowest cost abatement)

Company-specific descriptionAmid growing demand for lower-emission energy, the Company is developing new nuclear power facilities at Shimane andKaminoseki. This has the potential to reduce our CO2 emissions significantly as well as the fuel costs associated with alternativepower sources.

Time horizonCurrent

LikelihoodLikely






Explanation of financial impact figureThe impact on raw materials cost per 1% utilization rate of Unit 2 of the Shimane Nuclear Power Station in FY 2018 is estimated at600 million yen. Accordingly, assuming Unit 2 of the Shimane Nuclear Power Station had operated at an average facility utilizationrate of 79% during the past 10 years, the reduction in raw material costs would have been about 45 billion yen. (Average facilityutilization rate of 79% during past 10 years × 600 million yen per 1% fluctuation in utilization rate = 45 billion yen)

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Strategy to realize opportunityIn order to develop new nuclear power facilities, we are accommodating new regulatory standards and are working diligently toimplement safety measures at the Shimane facility.

Cost to realize opportunity500000000000

CommentEstimated total cost of safety measures at the Shimane Nuclear Power Station.

IdentifierOpp2




Type of financial impactReputational benefits resulting in increased demand for goods/services

Company-specific descriptionAmid growing demand for lower-emission energy, the Company is implementing the Osaki CoolGen Project to develop a coal-firedthermal power in the future benefitting from excellent supply stability and economic operation. This project aims to implementinnovative low-carbon coal-fired power generation featuring Integrated Coal Gasification Fuel Cell Combined Cycle (IGFC) powergeneration offering CO2 separation and recovery. This project has the potential to reduce CO2 emissions significantly and benefitour public reputation.

Time horizonCurrent

LikelihoodLikely






Explanation of financial impact figureIn light of the rising demand for lower-emission energy, this project may benefit our reputation and increase our operating revenue.Each 1% increase in our operating revenues (electric lighting and electricity charges) is estimated to accrue 12.8 billion yen(according to actual results for FY 2018).

Strategy to realize opportunityThe Osaki CoolGen Project is operated by Osaki CoolGen Corporation, a joint venture of Electric Power Development Co., Ltd. andChukogu Electric Power Co., Inc., with the assistance of the Ministry of Economy, Trade and Industry (FY 2012–15) and subsidized(since FY 2016) by the grant program of the New Energy and Industrial Technology Development Organization (NEDO), NationalResearch and Development Agency.


CommentTotal project cost, including our expenses associated with demonstration of oxygen-blown coal gasification combined power

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generation (oxygen-blown IGCC)* (Phase 1) and oxygen-blown IGCC with CO2 capture (Phase 2).

IdentifierOpp3




Type of financial impactReputational benefits resulting in increased demand for goods/services

Company-specific descriptionThe Company operates 98 hydroelectric power stations in the Chugoku region in a stable and efficient manner. Consequently, ourpublic reputation may improve as demand for lower-emission energy increases.

Time horizonCurrent







Explanation of financial impact figureIn light of the rising demand for lower-emission energy, this power source may benefit our reputation and increase our operatingrevenue. Each 1% increase in our operating revenues (residential and commercial) is estimated to accrue 12.8 billion yen(according to actual results for FY 2018).

Strategy to realize opportunityThe Company operates 98 hydroelectric power stations in the Chugoku region. Under our Environmental Action Plan, we areworking together with our Group companies to expand the adoption of renewable energy sources such as hydroelectricity,photovoltaic power, and wind power.


CommentThe Company has no specific development plans at present.

C2.5

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(C2.5) Describe where and how the identified risks and opportunities have impacted your business.

Impact Description

Productsandservices

Impacted FA concrete replaces some components of cement, the precursor to concrete, with coal ash. The use of coal ash reduces CO2 generation.Using 13,000 metric tons of coal ash would supplant about 20% of the cement required for construction of Unit 2 of the Misumi Power Plant.Compared with the use of conventional concrete, this would eliminate 9,000 t-CO2 equivalent, or about 20%, of anticipated CO2 emissions.

Supplychainand/orvaluechain

Impacted The Company is working to increase the use of coal from short-haul coal-producing areas such as Indonesia and Russia. Australian coal canbe shipped in about two weeks, Indonesian coal in about one week, and Russian coal in two or three days. Expanding the introduction ofcoal from short-haul production areas with short transportation times contributes to a reduction in fuel consumption by ships as well asreduced CO2 emissions. We are also working to further reduce CO2 emissions by increasing the size of our coal carriers and implementingjoint transportation methods. Since 2001, we have used three large 100,000-tonne-class ocean-going vessels to transport coal to Japan. Asa result, we have been able to save about 4,000 tonnes of ship fuel annually, or 8% compared to conventional shipping on 70,000- to80,000-tonne-class vessels, while also reducing CO2 emissions.

Adaptationandmitigationactivities

Impacted In July 2016, Unit 2 of the Shin-Onoda Power Station (500,000 kW) was replaced its steam turbines with the latest high-efficiency models.This was undertaken due to the age of the steam turbines and concerns about cumulative damage from their more than 20 years ofoperation since 1987. As a result, power generation efficiency is expected to increase by 0.62%, and CO2 emissions are expected todecline by about 30,000 t-CO2 per year.

Investmentin R&D

Impacted In order to take advantage of the excellent supply stability and economic efficiency of coal-fired thermal power in the future, we are adoptingIntegrated Coal Gasification Fuel Cell Combined Cycle (IGFC), the ultimate coal thermal power generation technology in terms of efficiencyand cleanliness. The Osaki CoolGen Project is being carried out with the aim of implementing an innovative low-carbon coal-fired powergeneration method offering CO2 separation and recovery. This project can reduce CO2 emissions by about 30% compared to pulverizedcoal-fired power generation at ultra-supercritical (USC) pressure.

Operations Impacted The Company has improved the thermal efficiency of its thermal power plants by introducing the LNG combined-cycle power generationsystem and the ultra supercritical pressure power generation system. Results for fiscal 2018 were a thermal efficiency of 40.9% (equivalentto a low-level calorific reference value of 43.2%). Improving the thermal efficiency of each thermal power plant by 1% accrues a CO2emissions reduction effect of 600,000 t-CO2 annually. Because this also results in a reduction in fuel consumption of about 200,000 kl(heavy oil equivalent), the Company intends to further improve its thermal efficiency by carrying out daily maintenance and regular repair ofequipment and by introducing high-efficiency power generation facilities.

Other,pleasespecify

Pleaseselect

C2.6

(C2.6) Describe where and how the identified risks and opportunities have been factored into your financial planningprocess.

Relevance Description

Revenues Not yetimpacted

The Company operates 98 hydroelectric power stations. As Japan responds to its 2030 emissions reduction target under the ParisAgreement, growing demand for lower-emission energy may increase the Company’s business opportunities and reputation andincrease revenue.

Operatingcosts

Impacted In preparation for typhoons and other natural disasters, the Company has included in its financial plan an initiative to improve thereliability of its facilities through inspections and repair of hydroelectric power generation facilities, steam power generation facilities,power transmission facilities, and substation facilities. Repair costs for FY 2018 total 80.6 billion yen.

Capitalexpenditures/ capitalallocation

Impacted In cooperation with Hiroshima Prefecture, Energia Solution & Service (ESS), a Group company, the Company established the HiroshimaRenewable Energy Promotion Limited Liability Partnership and entered into a community-benefitting mega solar business. This project isthe first mega solar business in the country to be jointly operated by a local government and power company. This project contributes tothe region and promotes renewable energy at the same time by utilizing the profits earned from the power generation business forcommunity-benefitting business. The Company launched the business in 2013 and introduced six locations generating 10,400 kW as ofthe end of fiscal 2018.

Acquisitionsanddivestments

Not yetimpacted

The Company did not acquire any businesses in fiscal 2018, but we will consider acquiring them as necessary in the future.

Access tocapital

Not yetimpacted

The Company is promoting initiatives in our electricity business to implement the Action Plan for Achieving a Low-carbon Society with thegoal of achieving a CO2 emissions intensity of 0.37kg-CO2/kWh by fiscal 2030 while raising capital from the perspective of achieving theoptimal level. The Company has not raised capital to address the risks or opportunities identified, and currently has no plans to do so.

Assets Impacted In 1990, the Company started operating the Series 1 Yanai Power Station (125,000 kW x 6 units) as our first LNG combined-cycle powergeneration plant. This unit has been in operation for more than 20 years; therefore, between December 2010 and March 2015, all gasturbines and air compressors were replaced with updated equipment. As a result, the unit’s power generation efficiency is expected toincrease by 0.41%, and CO2 emissions are expected to decline by about 200,000 t-CO2 per year.

Liabilities Impacted The Company issued 130 billion yen in bonds in fiscal 2018. This includes corporate bonds to fund equipment and respond to naturaldisasters and CO2 emissions-reduction efforts.

Other Pleaseselect

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C3. Business Strategy

C3.1

(C3.1) Are climate-related issues integrated into your business strategy?Yes

C3.1a

(C3.1a) Does your organization use climate-related scenario analysis to inform your business strategy?No, but we anticipate doing so in the next two years

C-AC3.1b/C-CE3.1b/C-CH3.1b/C-CO3.1b/C-EU3.1b/C-FB3.1b/C-MM3.1b/C-OG3.1b/C-PF3.1b/C-ST3.1b/C-TO3.1b/C-TS3.1b

(C-AC3.1b/C-CE3.1b/C-CH3.1b/C-CO3.1b/C-EU3.1b/C-FB3.1b/C-MM3.1b/C-OG3.1b/C-PF3.1b/C-ST3.1b/C-TO3.1b/C-TS3.1b)Indicate whether your organization has developed a low-carbon transition plan to support the long-term business strategy.Yes

C3.1c

(C3.1c) Explain how climate-related issues are integrated into your business objectives and strategy.

Pursuant to the signing of the Paris Agreement at the United Nations Framework Convention on Climate Change (COP 21), theJapanese Cabinet formulated the Act on Global Warming Countermeasures stipulating that greenhouse gases would be reducedby 26% by fiscal 2030 relative to fiscal 2013, and by 80% by fiscal 2050.

With this in mind, the country’s electricity providers formed the Electric Power Council for a Low Carbon Society as an independentinitiative to combat global warming with the aim of pursuing an electricity industry-wide emissions intensity of 0.37 kg-CO2/kWh byFY 2030.

The country’s electricity providers will seek to attain this level and will promote other initiatives related to the Action Plan forAchieving a Low-carbon Society.

As a member of the the Electric Power Council for a Low Carbon Society, we will steadily promote various measures based on thisaction plan with the aim of both achieving an optimal energy mix and implementing global warming countermeasures from theperspective of “S+3E” (Safety, Energy Security, Economy, and Environmental Conservation). The current medium-termmanagement plan includes measures that take climate change into account.

In order to help achieve the overall target of the electricity industry (a CO2 emissions intensity of 0.37kg-CO2/kWh by fiscal 2030),we will seek to restart the Shimane Nuclear Power Station with the assurance of safety. We are taking steps to reduce CO2emissions by further increasing the efficiency of thermal power generation, including Unit 2 of the Misumi Power Station, and byexpanding the introduction of renewable energy utilizing regional characteristics.

No critical business decisions made during the reporting year have been impacted by climate issues.

C-AC3.1e/C-CE3.1e/C-CH3.1e/C-CO3.1e/C-EU3.1e/C-FB3.1e/C-MM3.1e/C-OG3.1e/C-PF3.1e/C-

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ST3.1e/C-TO3.1e/C-TS3.1e

(C-AC3.1e/C-CE3.1e/C-CH3.1e/C-CO3.1e/C-EU3.1e/C-FB3.1e/C-MM3.1e/C-OG3.1e/C-PF3.1e/C-ST3.1e/C-TO3.1e/C-TS3.1e)Disclose details of your organization’s low-carbon transition plan.

The Electric Power Council for a Low Carbon Society aims to achieve an emissions intensity of 0.37kg-CO2/kWh by fiscal 2030 inkeeping with the government’s long-term energy supply and demand outlook for fiscal 2030.

Specifically, the Council formulated the Action Plan for Achieving a Low-carbon Society to address power generation projects;moreover, as a domestic corporate initiative, the Council is committed to utilizing nuclear power generation on the premise ofensuring safety, utilizing renewable energy, increasing the efficiency of thermal power generation, and providing energy-efficiencyand CO2 reduction services to customers in the field of electric power retailing.

The Company is introducing smart meters to strengthen cooperation between the various entities. The Company is also involved ininternational expansion of the technologies and expertise cultivated in Japan and promotes international collaboration. We areresponding to the introduction of large amounts of renewable energy as part of the development of innovative technologies.

As a member of the Council, we have devised a plan in accordance with the Action Plan for Achieving a Low-carbon Societyformulated by the Council (an emissions intensity of 0.37kg-CO2/kWh in fiscal 2030 for the entire electricity industry).

We are taking steps to restart Unit 2 of the Shimane Nuclear Power Station with the assurance of safety, construct Unit 2 of theMisumi Power Station, and update our hydroelectric power stations.

C3.1g

(C3.1g) Why does your organization not use climate-related scenario analysis to inform your business strategy?

As for formulating an energy mix for our power supply and setting quantitative targets for CO2 emissions and emissions intensity, webelieve that doing so is difficult because of the present uncertainty regarding the future operation and initial volume of nuclear powerand renewable energy in 2050, and the accuracy of the low-carbon technologies that can be implemented.

For these reasons, we have decided to forgo a climate-related scenario analysis.

C4. Targets and performance

C4.1

(C4.1) Did you have an emissions target that was active in the reporting year?Intensity target

C4.1b

CDP Page of 5016

(C4.1b) Provide details of your emissions intensity target(s) and progress made against those target(s).

Target reference numberInt 1

ScopeScope 1

% emissions in Scope100

Targeted % reduction from base year35

MetricMetric tons CO2e per megawatt hour (MWh)*

Base year2013

Start year2015

Normalized base year emissions covered by target (metric tons CO2e)0.57

Target year2030

Is this a science-based target?No, and we do not anticipate setting one in the next 2 years

% of target achieved37

Target statusUnderway

Please explainThis is the overall target of the Electric Power Council for a Low Carbon Society and is based on the government’s long-term energysupply and demand forecast for FY 2030. Member companies, including our Company, are promoting their own responsible PDCAcycles compatible with their respective business types and will promote initiatives aimed at achieving this goal across the council.

% change anticipated in absolute Scope 1+2 emissions35

% change anticipated in absolute Scope 3 emissions

C4.2

(C4.2) Provide details of other key climate-related targets not already reported in question C4.1/a/b.

C4.3

(C4.3) Did you have emissions reduction initiatives that were active within the reporting year? Note that this can includethose in the planning and/or implementation phases.Yes

C4.3a

CDP Page of 5017

(C4.3a) Identify the total number of initiatives at each stage of development, and for those in the implementation stages, theestimated CO2e savings.

Number of initiatives Total estimated annual CO2e savings in metric tonnes CO2e (only for rows marked *)

Under investigation 0 0

To be implemented* 2 8000000

Implementation commenced* 1 0

Implemented* 1 60000

Not to be implemented 0 0

C4.3b

(C4.3b) Provide details on the initiatives implemented in the reporting year in the table below.

Initiative typeEnergy efficiency: Processes

Description of initiativeMachine replacement

Estimated annual CO2e savings (metric tonnes CO2e)60000

ScopeScope 1

Voluntary/MandatoryVoluntary

Annual monetary savings (unit currency – as specified in C0.4)500000000

Investment required (unit currency – as specified in C0.4)80600000000

Payback period<1 year

Estimated lifetime of the initiativeOngoing

CommentThe Company is focused on maintaining or improving the thermal efficiency of the equipment in our thermal power plants bysteadily undertaking routine maintenance and regular repairs. Improving the thermal efficiency of each thermal power plant by 1%accrues a CO2 emissions reduction effect of 600,000 t-CO2 annually; this also results in a reduction in fuel costs of approximately200,000 kl (heavy oil equivalent). The daily maintenance and regular repair amounts are considered confidential managementinformation; total repair costs for fiscal 2018 amounted to 80.6 billion yen (this amount includes both daily maintenance and regularrepairs).

C4.3c

(C4.3c) What methods do you use to drive investment in emissions reduction activities?

Method Comment

Compliance withregulatoryrequirements/standards

At the Shimane Nuclear Power Station, we are responding to new regulatory standards and steadily implementing safety measures. Inorder to achieve the benchmark indicators based on the Act on the Rational Use of Energy, we have adopted ultra supercritical pressuregeneration, a state-of-the-art power generation system equivalent to the best available technology, for Unit 2 of Misumi Power Station.

CDP Page of 5018

C4.5

(C4.5) Do you classify any of your existing goods and/or services as low-carbon products or do they enable a third party toavoid GHG emissions?No

C-EU4.6

(C-EU4.6) Describe your organization’s efforts to reduce methane emissions from your activities.

Methane is generated through incomplete combustion of fuel, but our thermal power stations do not emit methane because they aredesigned to operate for complete fuel combustion.

As long as legally regulated facilities are required to report methane emissions, our equipment described above is not subject to thislaw as it has been determined that no methane is emitted.

C5. Emissions methodology

C5.1

CDP Page of 5019

(C5.1) Provide your base year and base year emissions (Scopes 1 and 2).

Scope 1

Base year startApril 1 2013

Base year endMarch 31 2014

Base year emissions (metric tons CO2e)25093558

Comment

Scope 2 (location-based)




Comment

Scope 2 (market-based)




Comment

C5.2

(C5.2) Select the name of the standard, protocol, or methodology you have used to collect activity data and calculate Scope1 and Scope 2 emissions.Japan Ministry of the Environment, Law Concerning the Promotion of the Measures to Cope with Global Warming, Superceded byRevision of the Act on Promotion of Global Warming Countermeasures (2005 Amendment)

C6. Emissions data

C6.1

CDP Page of 5020

(C6.1) What were your organization’s gross global Scope 1 emissions in metric tons CO2e?

Reporting year

Gross global Scope 1 emissions (metric tons CO2e)20343309

Start dateApril 1 2018

End dateMarch 31 2019

Comment

C6.2

(C6.2) Describe your organization’s approach to reporting Scope 2 emissions.

Row 1

Scope 2, location-basedWe are reporting a Scope 2, location-based figure

Scope 2, market-basedWe are reporting a Scope 2, market-based figure

Comment

C6.3

(C6.3) What were your organization’s gross global Scope 2 emissions in metric tons CO2e?

Reporting year

Scope 2, location-based49

Scope 2, market-based (if applicable)36

Start dateApril 1 2018

End dateMarch 31 2019

Comment

C6.4

(C6.4) Are there any sources (e.g. facilities, specific GHGs, activities, geographies, etc.) of Scope 1 and Scope 2 emissionsthat are within your selected reporting boundary which are not included in your disclosure?Yes

C6.4a

CDP Page of 5021

(C6.4a) Provide details of the sources of Scope 1 and Scope 2 emissions that are within your selected reporting boundarywhich are not included in your disclosure.

SourceEmissions associated with the handling of HFCs contained in commercial air conditioning and refrigeration equipment.

Relevance of Scope 1 emissions from this sourceEmissions are not relevant

Relevance of location-based Scope 2 emissions from this sourceEmissions are not relevant

Relevance of market-based Scope 2 emissions from this source (if applicable)Emissions are not relevant

Explain why this source is excludedThe emissions are extremely small compared to the Chugoku Electric Power Co.’s Scope 1 and 2 emissions.

C6.5

(C6.5) Account for your organization’s Scope 3 emissions, disclosing and explaining any exclusions.

Purchased goods and services

Evaluation statusNot relevant, explanation provided

Metric tonnes CO2e<Not Applicable>

Emissions calculation methodology<Not Applicable>

Percentage of emissions calculated using data obtained from suppliers or value chain partners<Not Applicable>

ExplanationBecause GHG emissions from this source are small compared to the total Scope 3 emissions of Chugoku Electric Power Co., webelieve the impact on overall supply chain emissions will be small.

Capital goods

Evaluation statusRelevant, calculated

Metric tonnes CO2e560568

Emissions calculation methodologyCalculated by multiplying the total capital investment by the emissions intensity per capital goods of electricity.

Percentage of emissions calculated using data obtained from suppliers or value chain partners

Explanation

CDP Page of 5022

Fuel-and-energy-related activities (not included in Scope 1 or 2)



Emissions calculation methodology• The GHG emissions from this emissions source are calculated by multiplying the amount of power generated (powertransmission end) by the power generation emissions intensity as stipulated in the report of the Central Research Institute ofElectric Power Industry titled “Life Cycle CO2 Emissions Evaluation of Japanese Power Generation Technology (July 2016).” •GHG emissions from this source are calculated based on fuel consumption and the emissions coefficient for CO2 emissionsassociated with other companies receiving electricity. • GHG emissions from this source are calculated by multiplying the amountof electricity received by other companies by the emissions intensity in effect at the time of fuel procurement.


Explanation

Upstream transportation and distribution






Waste generated in operations



Emissions calculation methodologyGHG emissions from this source are calculated by multiplying the amount of waste generated by the emissions intensity classifiedby category.


Explanation

Business travel



Emissions calculation methodologyGHG emissions from this source are calculated by multiplying the number of workers by the emissions intensity per worker.


Explanation

CDP Page of 5023

Employee commuting



Emissions calculation methodologyFor each office, the number of employees and number of employees by city segment and work type multiplied by the emissionsintensity per working day


Explanation

Upstream leased assets






Downstream transportation and distribution






Processing of sold products





ExplanationDue to the electricity utility industry

CDP Page of 5024

Use of sold products






End of life treatment of sold products






Downstream leased assets






Franchises






CDP Page of 5025

Investments






Other (upstream)

Evaluation status




Explanation

Other (downstream)

Evaluation status




Explanation

C6.7

(C6.7) Are carbon dioxide emissions from biologically sequestered carbon relevant to your organization?No

C6.10

CDP Page of 5026

(C6.10) Describe your gross global combined Scope 1 and 2 emissions for the reporting year in metric tons CO2e per unitcurrency total revenue and provide any additional intensity metrics that are appropriate to your business operations.

Intensity figure0.61

Metric numerator (Gross global combined Scope 1 and 2 emissions)20343345

Metric denominatormegawatt hour generated (MWh)

Metric denominator: Unit total33430504

Scope 2 figure usedMarket-based

% change from previous year1.65

Direction of changeIncreased

Reason for changeThe emissions intensity increases as the amount of hydroelectric power generated decreases.

C7. Emissions breakdowns

C7.1

(C7.1) Does your organization break down its Scope 1 emissions by greenhouse gas type?Yes

C7.1a

(C7.1a) Break down your total gross global Scope 1 emissions by greenhouse gas type and provide the source of each usedgreenhouse warming potential (GWP).

Greenhouse gas Scope 1 emissions (metric tons of CO2e) GWP Reference

CO2 20301617 IPCC Fourth Assessment Report (AR4 - 100 year)

N2O 28378 IPCC Fourth Assessment Report (AR4 - 100 year)

SF6 13314 IPCC Fourth Assessment Report (AR4 - 100 year)

C-EU7.1b

CDP Page of 5027

(C-EU7.1b) Break down your total gross global Scope 1 emissions from electric utilities value chain activities by greenhousegas type.

Gross Scope 1 CO2emissions (metrictons CO2)

Gross Scope 1methane emissions(metric tons CH4)

Gross Scope 1 SF6emissions (metrictons SF6)

Gross Scope 1emissions (metrictons CO2e)

Comment

Fugitives 0 0 13314 13314

Combustion(Electricutilities)

20301617 0 0 20329995 The total value of emissions does not equal the totalScope 1 emissions because 28,378 metric tons ofN2O were emitted.

Combustion(Gas utilities)

0 0 0 0

Combustion(Other)

0 0 0 0

Emissions notelsewhereclassified

0 0 0 0

C7.2

(C7.2) Break down your total gross global Scope 1 emissions by country/region.

Country/Region Scope 1 emissions (metric tons CO2e)

Japan 20343309

C7.3

(C7.3) Indicate which gross global Scope 1 emissions breakdowns you are able to provide.By activity

C7.3c

(C7.3c) Break down your total gross global Scope 1 emissions by business activity.

Activity Scope 1 emissions (metric tons CO2e)

Electricity generation 20343309

C-CE7.4/C-CH7.4/C-CO7.4/C-EU7.4/C-MM7.4/C-OG7.4/C-ST7.4/C-TO7.4/C-TS7.4

CDP Page of 5028

(C-CE7.4/C-CH7.4/C-CO7.4/C-EU7.4/C-MM7.4/C-OG7.4/C-ST7.4/C-TO7.4/C-TS7.4) Break down your organization’s total grossglobal Scope 1 emissions by sector production activity in metric tons CO2e.

Gross Scope 1 emissions, metric tons CO2e Net Scope 1 emissions , metric tons CO2e Comment

Cement production activities <Not Applicable> <Not Applicable> <Not Applicable>

Chemicals production activities <Not Applicable> <Not Applicable> <Not Applicable>

Coal production activities <Not Applicable> <Not Applicable> <Not Applicable>

Electric utility generation activities 20343309 <Not Applicable>

Metals and mining production activities <Not Applicable> <Not Applicable> <Not Applicable>

Oil and gas production activities (upstream) <Not Applicable> <Not Applicable> <Not Applicable>

Oil and gas production activities (downstream) <Not Applicable> <Not Applicable> <Not Applicable>

Steel production activities <Not Applicable> <Not Applicable> <Not Applicable>

Transport OEM activities <Not Applicable> <Not Applicable> <Not Applicable>

Transport services activities <Not Applicable> <Not Applicable> <Not Applicable>

C7.5

(C7.5) Break down your total gross global Scope 2 emissions by country/region.

Country/Region Scope 2, location-based (metric tonsCO2e)

Scope 2, market-based (metric tonsCO2e)

Purchased and consumedelectricity, heat, steam orcooling (MWh)

Purchased and consumed low-carbon electricity, heat,steam or cooling accounted in market-based approach(MWh)

Japan 49 36 98 0

C7.6

(C7.6) Indicate which gross global Scope 2 emissions breakdowns you are able to provide.By facility

C7.6b

(C7.6b) Break down your total gross global Scope 2 emissions by business facility.

Facility Scope 2 location-based emissions (metric tons CO2e) Scope 2, market-based emissions (metric tons CO2e)

Tokyo Office 49 36

C7.9

(C7.9) How do your gross global emissions (Scope 1 and 2 combined) for the reporting year compare to those of theprevious reporting year?Decreased

C7.9a

CDP Page of 5029

(C7.9a) Identify the reasons for any change in your gross global emissions (Scope 1 and 2 combined) and for each of themspecify how your emissions compare to the previous year.

Change inemissions(metric tonsCO2e)

Directionof change

Emissionsvalue(percentage)

Please explain calculation

Change inrenewableenergyconsumption

0 No change 0

Other emissionsreductionactivities

918468 Decreased 4.3 {Scope 1+2 (market basis) for current year – Scope 1+2 (market basis) for previous year} ÷ Scope1+2 (market basis) for previous year × 100 = (20,343,345 t – 21,261,813 t) ÷ 21,261,810 t × 100 =917,640 ÷ 21,261,813 × 100 = 4.3%

Divestment <NotApplicable>

Acquisitions <NotApplicable>

Mergers <NotApplicable>

Change in output <NotApplicable>

Change inmethodology

<NotApplicable>

Change inboundary

<NotApplicable>

Change inphysicaloperatingconditions

<NotApplicable>

Unidentified <NotApplicable>

Other <NotApplicable>

C7.9b

(C7.9b) Are your emissions performance calculations in C7.9 and C7.9a based on a location-based Scope 2 emissions figureor a market-based Scope 2 emissions figure?Market-based

C8. Energy

C8.1

(C8.1) What percentage of your total operational spend in the reporting year was on energy?More than 15% but less than or equal to 20%

CDP Page of 5030

C8.2

(C8.2) Select which energy-related activities your organization has undertaken.

Indicate whether your organization undertakes this energy-related activity

Consumption of fuel (excluding feedstocks) Yes

Consumption of purchased or acquired electricity No

Consumption of purchased or acquired heat No

Consumption of purchased or acquired steam No

Consumption of purchased or acquired cooling No

Generation of electricity, heat, steam, or cooling Yes

C8.2a

(C8.2a) Report your organization’s energy consumption totals (excluding feedstocks) in MWh.

Heating value MWh from renewablesources

MWh from non-renewablesources

Total MWh

Consumption of fuel (excluding feedstock) HHV (higher heatingvalue)

0 76859884 76859884

Consumption of purchased or acquired electricity <Not Applicable> <Not Applicable> <Not Applicable> <NotApplicable>

Consumption of purchased or acquired heat <Not Applicable> <Not Applicable> <Not Applicable> <NotApplicable>

Consumption of purchased or acquired steam <Not Applicable> <Not Applicable> <Not Applicable> <NotApplicable>

Consumption of purchased or acquired cooling <Not Applicable> <Not Applicable> <Not Applicable> <NotApplicable>

Consumption of self-generated non-fuel renewableenergy

<Not Applicable> <Not Applicable>

Total energy consumption <Not Applicable> 0 76859884 76859884

C8.2b

(C8.2b) Select the applications of your organization’s consumption of fuel.

Indicate whether your organization undertakes this fuel application

Consumption of fuel for the generation of electricity Yes

Consumption of fuel for the generation of heat No

Consumption of fuel for the generation of steam No

Consumption of fuel for the generation of cooling No

Consumption of fuel for co-generation or tri-generation No

C8.2c

(C8.2c) State how much fuel in MWh your organization has consumed (excluding feedstocks) by fuel type.

Fuels (excluding feedstocks)Crude Oil

Heating valueHHV (higher heating value)

CDP Page of 5031

Total fuel MWh consumed by the organization564310

MWh fuel consumed for self-generation of electricity564310

MWh fuel consumed for self-generation of heat

MWh fuel consumed for self-generation of steam<Not Applicable>

MWh fuel consumed for self-generation of cooling<Not Applicable>

MWh fuel consumed for self-cogeneration or self-trigeneration<Not Applicable>

Comment

Fuels (excluding feedstocks)Petrol








Comment

Fuels (excluding feedstocks)Diesel








Comment

Fuels (excluding feedstocks)

CDP Page of 5032

Other, please specify (Bunker A)








Comment

Fuels (excluding feedstocks)Other, please specify (Bunker B・C)








Comment

Fuels (excluding feedstocks)Liquefied Petroleum Gas (LPG)








CDP Page of 5033

Comment

Fuels (excluding feedstocks)Liquefied Natural Gas (LNG)








Comment

Fuels (excluding feedstocks)Coal








Comment

Fuels (excluding feedstocks)Town Gas






MWh fuel consumed for self-generation of cooling

CDP Page of 5034

<Not Applicable>


Comment

C8.2d

(C8.2d) List the average emission factors of the fuels reported in C8.2c.

Coal

Emission factor0.0247

Unitmetric tons CO2 per GJ

Emission factor sourceAct on Promotion of Global Warming Countermeasures

Comment

Crude Oil




Comment

Diesel




Comment

Liquefied Natural Gas (LNG)




Comment

CDP Page of 5035

Liquefied Petroleum Gas (LPG)




Comment

Petrol




Comment

Town Gas




Comment

Other




CommentBunker A Bunker B･C（Emission factor 0.0195；Unit metric tons CO2 per GJ；Emission factor source Act on Promotion ofGlobal Warming Countermeasures）

C8.2e

(C8.2e) Provide details on the electricity, heat, steam, and cooling your organization has generated and consumed in thereporting year.

Total Grossgeneration (MWh)

Generation that is consumed by theorganization (MWh)

Gross generation fromrenewable sources (MWh)

Generation from renewable sources that isconsumed by the organization (MWh)

Electricity 35345973 1581862 3306701 0

Heat

Steam

Cooling

CDP Page of 5036

C-EU8.2e

(C-EU8.2e) For your electric utility activities, provide a breakdown of your total power plant capacity, generation, and relatedemissions during the reporting year by source.

Coal – hard

Nameplate capacity (MW)2590

Gross electricity generation (GWh)17282

Net electricity generation (GWh)

Absolute scope 1 emissions (metric tons CO2e)

Scope 1 emissions intensity (metric tons CO2e per GWh)

Comment

Lignite

Nameplate capacity (MW)

Gross electricity generation (GWh)




Comment

Oil






Comment

Gas






Comment

CDP Page of 5037

Biomass






Comment

Waste (non-biomass)






Comment

Nuclear






Comment

Geothermal






Comment

Hydroelectric






Comment

CDP Page of 5038

Wind






Comment

Solar






Comment

Other renewable






Comment

Other non-renewable






Comment

Total






Comment

CDP Page of 5039

C-EU8.4

(C-EU8.4) Does your electric utility organization have a transmission and distribution business?Yes

C-EU8.4a

(C-EU8.4a) Disclose the following information about your transmission and distribution business.

Country/RegionJapan

Voltage levelTransmission (high voltage)

Annual load (GWh)52944

Scope 2 emissions (basis)Market-based

Scope 2 emissions (metric tons CO2e)36

Annual energy losses (% of annual load)4.8

Length of network (km)92545

Number of connections5368366

Area covered (km2)32282

Comment

C9. Additional metrics

C9.1

CDP Page of 5040

(C9.1) Provide any additional climate-related metrics relevant to your business.

DescriptionOther, please specify (Thermal efficiency of thermal power plants)

Metric value43.2

Metric numeratorGross thermal efficiency (LHV standard)

Metric denominator (intensity metric only)

% change from previous year0.2

Direction of changeIncreased

Please explainThe Company has improved the thermal efficiency of its thermal power plants by introducing an LNG combined-cycle powergeneration system and adopting a ultra supercritical pressure power generation system. The results for fiscal 2018 were 40.9%(43.2% when converted on a lower calorific value basis). Improving the thermal efficiency of each thermal power plant by 1%accrues a CO2 emissions reduction effect of 600,000 t-CO2 annually; this also results in a reduction in fuel costs of approximately200,000 kl (heavy oil equivalent). We are further improving thermal efficiency by carrying out daily maintenance and regular repairsto facilities and by introducing high-efficiency power generation facilities.

C-EU9.5a

(C-EU9.5a) Break down, by source, your total planned CAPEX in your current CAPEX plan for power generation.

Primary powergeneration source

CAPEX planned for powergeneration from this source

Percentage of total CAPEXplanned for power generation

End year ofCAPEX plan

Comment

Coal – hard 2022 Unit 2, Misumi Power Station (Output: 1 million kW;Start of operation: November 2022)

C-EU9.5b

(C-EU9.5b) Break down your total planned CAPEX in your current CAPEX plan for products and services (e.g. smart grids,digitalization, etc.).

Products and services Description of product/service CAPEXplanned forproduct/service

Percentageof totalCAPEXplannedproductsandservices

End ofyearCAPEXplan

Other, please specify(Further Development ofClean CoalTechnology（ TheIntegrated GasificationFuel Cell (IGFC)） )

In order to take advantage of the excellent supply stability and economic efficiency of coal-firedthermal power in the future, we are adopting Integrated Coal Gasification Fuel Cell CombinedCycle (IGFC), the ultimate coal thermal power generation technology in terms of efficiency andcleanliness. The Osaki CoolGen Project is being carried out with the aim of implementing aninnovative low-carbon coal-fired power generation method offering CO2 separation andrecovery.

2022

C-CO9.6/C-EU9.6/C-OG9.6

CDP Page of 5041

(C-CO9.6/C-EU9.6/C-OG9.6) Disclose your investments in low-carbon research and development (R&D), equipment,products, and services.

Investment start dateApril 1 2018

Investment end dateMarch 31 2019

Investment areaR&D

Technology areaRenewable energy

Investment maturityApplied research and development

Investment figure8700000000

Low-carbon investment percentage61-80%

Please explainIn order to take advantage of the excellent supply stability and economic efficiency of coal-fired thermal power in the future, we areadopting Integrated Coal Gasification Fuel Cell Combined Cycle (IGFC), the ultimate coal thermal power generation technology interms of efficiency and cleanliness. The Osaki CoolGen Project is being carried out with the aim of implementing an innovative low-carbon coal-fired power generation method offering CO2 separation and recovery. The Osaki CoolGen Project is operated by OsakiCoolGen Corporation, a joint venture of Chukogu Electric Power Co., Inc. and Electric Power Development Co., Ltd., with theassistance of the Ministry of Economy, Trade and Industry (FY 2012–15) and subsidized (since FY 2016) by the grant program ofthe New Energy and Industrial Technology Development Organization (NEDO). The amount invested is considered confidentialmanagement information; the Company’s total research expenses for fiscal 2018 amounted to 8.7 billion yen.

C10. Verification

C10.1

(C10.1) Indicate the verification/assurance status that applies to your reported emissions.

Verification/assurance status

Scope 1 Third-party verification or assurance process in place

Scope 2 (location-based or market-based) Third-party verification or assurance process in place

Scope 3 Third-party verification or assurance process in place

C10.1a

CDP Page of 5042

(C10.1a) Provide further details of the verification/assurance undertaken for your Scope 1 and/or Scope 2 emissions andattach the relevant statements.

ScopeScope 1

Verification or assurance cycle in placeAnnual process

Status in the current reporting yearComplete

Type of verification or assuranceLimited assurance

Attach the statementC10.1 assurance.pdf

Page/ section referencePage 1

Relevant standardISAE3000

Proportion of reported emissions verified (%)100

ScopeScope 2 market-based



Type of verification or assuranceLimited assurance


Page/ section referencePage 1


Proportion of reported emissions verified (%)100

C10.1b

CDP Page of 5043

(C10.1b) Provide further details of the verification/assurance undertaken for your Scope 3 emissions and attach the relevantstatements.

ScopeScope 3- at least one applicable category




Page/section referencePage 1


C10.2

(C10.2) Do you verify any climate-related information reported in your CDP disclosure other than the emissions figuresreported in C6.1, C6.3, and C6.5?No, but we are actively considering verifying within the next two years

C11. Carbon pricing

C11.1

(C11.1) Are any of your operations or activities regulated by a carbon pricing system (i.e. ETS, Cap & Trade or Carbon Tax)?Yes

C11.1a

(C11.1a) Select the carbon pricing regulation(s) which impacts your operations.Japan carbon tax

C11.1c

CDP Page of 5044

(C11.1c) Complete the following table for each of the tax systems in which you participate.

Japan carbon tax

Period start dateApril 1 2018

Period end dateMarch 31 2019

% of emissions covered by tax100

Total cost of tax paid5700000000

CommentThe total tax expense of 5.7 billion yen is the amount of fuel consumed in fiscal 2018 multiplied by the tax rate for Global WarmingPrevention Measures.

C11.1d

(C11.1d) What is your strategy for complying with the systems in which you participate or anticipate participating?

We are working to increase our use of nuclear power, renewable energy, and other fossil-free energy sources. In addition, we arestriving to reduce emissions from our new thermal power plants by focusing on the efficient use of fossil fuels and by adopting thebest available technologies that can be used economically.

C11.2

(C11.2) Has your organization originated or purchased any project-based carbon credits within the reporting period?No

C11.3

(C11.3) Does your organization use an internal price on carbon?Yes

C11.3a

CDP Page of 5045

(C11.3a) Provide details of how your organization uses an internal price on carbon.

Objective for implementing an internal carbon priceDrive energy efficiency

GHG ScopeScope 1

ApplicationApplicable when we submit a bid for thermal power

Actual price(s) used (Currency /metric ton)435

Variance of price(s) usedWhen submitting a thermal power supply bid, the Company conducts price evaluations that consider the cost of CO2countermeasures in accordance with the Guidelines Pertaining to the Submission of a New Thermal Power Supply Bid. In a 2015thermal power supply bid submission, the Company used the price of near-term commodity futures contracts for CER to determinethe average of each day’s closing price from January to December 2012 as 435 yen/t-CO2.

Type of internal carbon priceInternal fee

Impact & implicationThe Company evaluates the difference between the CO2 emissions coefficient of the power supply tender and the standardemissions coefficient by adding the CO2 countermeasure cost, calculated by multiplying the market price of carbon credits (435yen/t-CO2) to the bid price.

C12. Engagement

C12.1

(C12.1) Do you engage with your value chain on climate-related issues?Yes, our suppliersYes, other partners in the value chain

C12.1a

CDP Page of 5046

(C12.1a) Provide details of your climate-related supplier engagement strategy.

Type of engagementInnovation & collaboration (changing markets)

Details of engagementRun a campaign to encourage innovation to reduce climate impacts on products and services

% of suppliers by number1

% total procurement spend (direct and indirect)1

% Scope 3 emissions as reported in C6.50

Rationale for the coverage of your engagementThe Company is working to increase the use of coal from short-haul coal-producing areas such as Indonesia and Russia.Australian coal can be shipped in about two weeks, Indonesian coal in about one week, and Russian coal in two or three days.Expanding the introduction of coal from short-haul production areas with short transportation times contributes to a reduction in fuelconsumption for ships as well as reduced CO2 emissions. We are also working to reduce CO2 emissions by increasing the size ofcoal carriers and implementing joint transportation.

Impact of engagement, including measures of successThe Company introduced three large 100,000-tonne-class vessels in 2001 as outbound vessels to transport coal to Japan.Compared to the conventional 70,000- to 80,000-tonne-class ships, this innovation reduces fuel consumption by about 8%,representing a savings of 4,000 tonnes of fuel annually as well as reduced CO2 emissions. We are also working to increase jointtransportation with other companies, and we are pursuing transportation efficiencies to further reduce fuel consumption fromshipping as well as CO2 emissions. Currently, the Ministry of Land, Infrastructure, Transport and Tourism is promoting portdevelopment in the Shimomatsu area through the International Bulk Strategic Port Development Project. This will lead to theincreased use of larger-sized vessels and additional joint transportation of ships, to an extent not seen previously. After completionof the port development project, the maximum size of ship that can be accommodated in the Shimomatsu area will increase from100,000 to 200,000 tonnes. Moreover, further increases in transport efficiency and reduction of environmental impacts areexpected. As well, joint transportation with other companies is also expected to increase.

Comment

C12.1c

(C12.1c) Give details of your climate-related engagement strategy with other partners in the value chain.

In cooperation with Hiroshima Prefecture, Energia Solution & Service Co., (ESS), a Group company, we established HiroshimaLimited Liability Partnership (LLP) for Promotion of Renewable Energy and entered into a regional community-benefit mega solarbusiness.

This project is the first mega solar business in the country to be jointly operated by a local government and power company.

This project contributes to the region and promotes the introduction of renewable energy at the same time by utilizing the profitsearned from the power generation business for a regional community-benefit business.

C12.3

(C12.3) Do you engage in activities that could either directly or indirectly influence public policy on climate-related issuesthrough any of the following?Trade associations

C12.3b

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(C12.3b) Are you on the board of any trade associations or do you provide funding beyond membership?Yes

C12.3c

(C12.3c) Enter the details of those trade associations that are likely to take a position on climate change legislation.

Trade associationThe Electric Power Council for a Low Carbon Society

Is your position on climate change consistent with theirs?Consistent

Please explain the trade association’s positionThe council is steadily promoting efforts to achieve the goals set forth in the Action Plan for Achieving a Low-carbon Society in theelectricity business. Therefore, the council promotes and supports the efforts of member companies and promotes the PDCA cycle.As a result, the members of this council are working together to make a low-carbon society a reality.

How have you influenced, or are you attempting to influence their position?The Chief Operating Officer (Environment) participates as an auditor and audits the status of initiatives of the Action Plan forAchieving a Low-carbon Society.

C12.3f

(C12.3f) What processes do you have in place to ensure that all of your direct and indirect activities that influence policy areconsistent with your overall climate change strategy?

The Company has formulated a Company-wide plan and has developed a PDCA cycle with regard to the approach stated in theAction Plan for the Electricity Business for Achieving a Low-carbon Society as formulated by the Electric Power Council for a LowCarbon Society.

The Company shall review the plans, achievements, evaluations, and other aspects of these initiatives annually in theSustainability Committee through reporting and deliberation and shall, if necessary, refer it to the Management Committee.

C12.4

CDP Page of 5048

(C12.4) Have you published information about your organization’s response to climate change and GHG emissionsperformance for this reporting year in places other than in your CDP response? If so, please attach the publication(s).

PublicationIn mainstream reports

StatusComplete

Attach the documentC12.4 Annual Securities Reports.pdf

Page/Section referencePage 13,14,15,16

Content elementsGovernanceStrategyRisks & opportunities

Comment

PublicationIn voluntary communications

StatusComplete

Attach the documentC12.4 Environmental Report.pdf

Page/Section referencePage 4,5,6,8,9,10,11,12,13,14,15,16,17,47,48,50,53

Content elementsGovernanceStrategyEmissions figuresEmission targetsOther metrics

Comment

C14. Signoff

C-FI

(C-FI) Use this field to provide any additional information or context that you feel is relevant to your organization's response.Please note that this field is optional and is not scored.

C14.1

(C14.1) Provide details for the person that has signed off (approved) your CDP climate change response.

Job title Corresponding job category

Row 1 Representative Director President & Chief Executive Officer President

CDP Page of 5049

Submit your response

In which language are you submitting your response?English

Please confirm how your response should be handled by CDP

Public or Non-Public Submission I am submitting to

I am submitting my response Public Investors

Please confirm belowI have read and accept the applicable Terms

CDP Page of 5050

Documents

The Chugoku Electric Power Company - Climate Change 2019Short-term 0 1 Fiscal year 2018 - 2019 Medium-term 1 3 Fiscal year 2019 - 2021 Long-term 3 12 Fiscal year 2021 - 2030 C2.2 (C2.2)