Offshore Technology

Daily Newsletter

08 August 2023

Daily Newsletter

Toho Gas selects FPT Software to boost digital capabilities

Under the agreement, Toho Gas and its subsidiary would establish an offshore development centre in Vietnam.

Japanese energy company Toho Gas has selected IT services provider FPT Software to bolster operations with digital capabilities.

The companies have signed a memorandum of understanding (MoU), which will see Toho Gas and its subsidiary Toho Gas Information System (TOGIS) establish an offshore development centre.

Located in Da Nang, Vietnam, the new centre, with a team of 50 IT engineers, will support Toho Gas and TOGIS.

According to the IT services vendor, Toho Gas can stay competitive in its business by using this expanded team to keep up with the most recent advancements brought on by digital technologies and data analytics.

The MoU builds on the ongoing alliance between Toho Gas and FPT Software since late 2019.

FPT Software assisted Toho Gas with a number of system migration projects during the previous alliance.

Toho Gas Information System president Haigo Takeo said: “During the previous collaboration, we have witnessed FPT Software’s strong commitment and capabilities as a trusted partner. We are excited to continue our collaboration with FPT Software on higher-level projects and looking forward to achieving greater value together."

FPT Japan CEO Do Van Khac said: "This partnership demonstrates the trust and confidence that Toho Gas has in FPT Software. We pledge to achieve successful outcomes and foster a fruitful collaboration with Toho Gas by providing innovative solutions, top-notch services and a talented IT workforce."

During the first three months ending on 30 June 2023, Toho Gas reported net sales of $1.09bn (Y155.27bn), a 7.4% increase year-on-year.

Net income was reported to be $130.78m, compared with with last year’s $72.58m.

ESG 2.0 marks a shift towards stricter environmental rules

ESG is moving into a different era, which we call ESG 2.0. While ESG 1.0 was driven by voluntary corporate action, spurred by pressure from activist consumers and investors, ESG 2.0 is being driven by a new wave of government policies. The EU has taken the regulatory lead, with rules introduced or in the pipeline that will price emissions, regulate the use of the terms ‘ESG’ and ‘sustainability’ in marketing materials, and make ESG reporting mandatory. The US has taken a different approach, favoring less regulation and more financial support in the form of tax breaks for clean industry (renewables plus nuclear and hydrogen). China is planning to expand its emissions trading system to more sectors, decarbonize its heavy industry, and ramp up its use of renewables. The new policy direction is mainly motivated by the ambition to hit net zero emissions targets. But on top of this, governments are now competing for clean industry and trying to challenge China’s leadership on the production of the world’s green technologies such as solar panels and batteries, as well as the production and refinement of materials needed for energy transition such as lithium. These driving forces are leading to policy that will impact every sector, not just heavy industry, and will keep ESG near the top of the regulatory agenda over the longer term.