CHIYODA CORPORATIONGroup CSR Report 2010
Fiscal Year Ended March 31, 2010

Corporate Profile
Chiyoda Corporation is an integrated engineering company primarily
engaged in the design and construction of plants and facilities in Japanand around the world. The Chiyoda Group strives to contribute to thesustainable development of society while promoting harmony between
energy and the environment.
Consolidated Financial Highlights (Billions of yen)

• Name:Chiyoda Corporation• Address:

12-1, Tsurumichuo 2-chome,
Tsurumi-ku Yokohama 230-8601,
Japan• Main Offices:

Yokohama Head Office(Tsurumi-ku, Yokohama, Japan)
Koyasu Office & Research Park
(Kanagawa-ku, Yokohama, Japan)
Kawasaki Office(Saiwai-ku, Kawasaki, Japan)

New contracts¥43,392 million• Main Business Fields:

Consulting, planning, engineering,procurement, construction,commissioning (test operation),
consulting and training for operationand maintenance, research anddevelopment and technology services,
project management for plants andfacilities in fields including energy,
chemicals, pharmaceuticals,
biotechnology and the environment

603.6

804.2

23.5
19.4

484.9
446.4

557.7

390.9
429.4

313.0
9.6
6.5

209.4

3.0

’06

’07

’08

Domestic: 9
Overseas: 11’09 ’10’06 ’07 ’08 ’09 ’10’06(Fiscal years ended March 31)

’07

’08

’09 ’10

Revenues by Industry

Revenues by Region(Fiscal year ended March 31, 2010)(Fiscal year ended March 31, 2010)

15%
34%

• Number of
27%

46%

54%

Domestic

Overseas24%• Number ofGroup Employees:

Net income

258.8• Paid-in Capital:

Group Companies:

Revenues

3,670• URL: http://www.chiyoda-corp.com/en/(As of March 31, 2010)

LNG Plants

Petroleum & Petrochemicals

Gas & Power Utilities

Fine Industries & Others

Contents

Overview of the Chiyoda Group
Corporate Profile
Editorial Policy
A Message from the President

The Chiyoda Group’s CSR Vision in Action

inside front cover
1
2

The Chiyoda Group’s Unique CSR Initiatives
The Qatar LNG Project: Headed for SuccessGroup Company Activity Highlights

4
6

CSR Vision 1
A Reliable Company
CSR Vision 2
Environmental Initiatives
CSR Vision 3
Social Contributions throughBusiness Activities
CSR Vision 4
Respect for Human Rights
CSR Vision 5
Commitment to Fairness

8
10

12
14
16

CHIYODA CORPORATION Group CSR Report 2010

Editorial Policy
The Chiyoda Group reports its CSR activities on its website and in the CSR Report.
Differentiation of Website and Report Content
The diagram below shows the differentiation of
the content reported on the website and the CSR
Report. On the website, we provide detailed basic
information on our CSR activities for different“Commitment to CSR” on Our Website
The “Commitment to CSR” section of our website includes full detailsof the Chiyoda Group’s CSR activities, including initiatives outside thescope of the report as well as environmental data and other information.

stakeholders, including customers and business
partners, and employees, to make the information
easily accessible for users.

The Chiyoda Group's CSR activities
WebsiteDetailed reporting

Since I became President and CEO of Chiyoda in 2007, I have emphasized the three pillars of“intellectual property for the future,” “environmentally responsible technologies”

CSR Report
Reporting with afocus on highlightsof activities in themost recent
fiscal year

CSR Policy
Chiyoda Group CSR Vision

Code of Conduct of the Chiyoda Group
Compliance
Information Security Managementand Export Control

Quality Management Initiatives
Working with Business Partners

Composition of the CSR Report

Employee Skill Development andWork Environment
Occupational Health and Safety

The CSR Report focuses on the highlights ofactivities in the fiscal year ended March 31, 2010,

Social Contribution through Business
Activities

Environmental Management

Corporate Governance

CSR Report

Environmental Conservation Activities

and is divided into three sections: Overview of the
Chiyoda Group, The Chiyoda Group’s Unique CSR
Initiatives, and The Chiyoda Group’s CSR Vision in
Action. In this year’s feature, we look at the Qatar
LNG project and the activities of Group companies toillustrate how our business activities contribute to
the development of a sustainable society.

We also publish the booklet Legacy for the 21st Century, which can be called the
DNA of the Chiyoda Group, back issues of the CSR Report and other publications.

http://www.chiyoda-corp.com/csr/en/
CHIYODA Commitment to CSR

SearchScope of the Report
The report encompasses the CSR activities of ten
Chiyoda Group companies (Chiyoda Corporationand its nine domestic consolidated subsidiaries),
unless otherwise specified.

Guidelines
This report is prepared with reference to the Global Reporting
Initiative’s (GRI) Guidelines (G3) and the Reporting Guidelines(2007 Version) of the Ministry of the Environment in Japan.

Applicable Period and Date of Publication
Applicable Period: Fiscal year ended March 31, 2010
(April 1, 2009 to March 31, 2010)
Date of Publication: August 20101

A Message from the President

The Chiyoda Group carries out CSR activities that draw on its uniquestrengths to further build its worldwide reputation for reliability.
Chiyoda Group Corporate Philosophy
Enhance our business in aiming for harmony between energy andthe environment and contribute to the sustainable development ofa society as an integrated engineering company through the use of
our collective wisdom and painstakingly developed technology.

Chiyoda Group CSR Vision
1. A Reliable Company
2. Environmental Initiatives
3. Social Contributions through Business Activities
4. Respect for Human Rights
5. Commitment to Fairness

Chiyoda Receives the Minister of Economy, Trade andIndustry’s Award at the Monodzukuri Nippon Grand Awards
for the Qatar LNG ProjectAwards ceremony for the Third Monodzukuri
Nippon Grand Awards

2

In July 2009, Chiyoda, which won the order for six trains of the world’s
largest LNG1 plant (each train is designed to produce 7.8 million tons of LNG
annually) in the Middle Eastern emirate of Qatar, received the Minister of
Economy, Trade and Industry’s Award in the Overseas Development Category of
the Third Monodzukuri Nippon Grand Awards2 sponsored by the Japanese
government. This is the top prize in its category, and marks the first time thishonor has been given to a Japanese engineering company operating overseas. It
follows our receipt of the JAPAN Project International Award Minister’s Prize
from the Ministry of Land Infrastructure, Transport and Tourism for the Sakhalin
LNG Project, which we featured in last year’s CSR Report.
At the Qatar LNG Plant, we have completed four trains as of the fiscal year
ended March 31, 2009, and plan to finish construction of the remaining two thisyear. When all six trains are in operation, Qatar will account for about one-thirdof the world's total LNG production.
In addition to developing engineering and procurement systems to ensure
efficient material procurement and effective quality management, Chiyoda
provided safety, environmental and health training to as many as 75,000
construction workers from 86 countries at the peak of construction. Our recordof executing this project with a high level of quality and reliability, ourCHIYODA CORPORATION Group CSR Report 2010

cooperation in resource development in Qatar and our contribution to the global
environment led to the Japanese government’s high evaluation of engineering asa key area of monodzukuri (manufacturing).

Market Changes Provide a Chance to Contribute toFormation of New Industries
Chiyoda has set energy, environment and resource development as its
business domains in its medium-term management plan, “Engineering
Excellence, Value Creation 2012,” culminating in the fiscal year ending March
31, 2013. We are currently in the second year of the plan.
In the domestic market, Japan is beginning to convert its infrastructure to
realize an energy-efficient, low-carbon society over the medium to long term.
Responding to paradigm shifts such as restructuring and the shift to overseas
locations in various industries, the Chiyoda Group intends to play a major role in
the formation of new industries. We will use our established engineering
capabilities to achieve balanced business expansion with a focus on such fields as
new energy and pharmaceuticals in addition to the conventional energy field.
In overseas markets, we will aggressively expand EPC 3 operations andestablish the business in new regions not only in Asia, which is receiving
attention as the growth engine of the global economy, but also in Oceania,
Africa and Latin America. In addition to enhancing our competitiveness in gas
and LNG projects, our core business, we plan to focus on other types of projects,
including heavy oil processing and coal gasification, synthetic gas, floating LNG4and PLE5 projects.

Contributing to Society through Sustained Growth
The Chiyoda Group’s corporate philosophy is to enhance our business toachieve harmony between energy and the environment and contribute to thedevelopment of a sustainable society as an integrated engineering company
through the use of our collective wisdom and painstakingly developed
technology. Based on this philosophy, we are committed to earning the trust andsupport of all our stakeholders, including shareholders, customers, suppliers,
employees and local communities.
Last year, we revised the Chiyoda Group CSR Vision in light of this corporate
philosophy and trends in society. We will continue to promote the Chiyoda
Group’s unique CSR activities to further build our reputation for reliability
worldwide.
July 2010

Takashi Kubota
President & CEO

1. LNG: Liquefied natural gas
2. Monodzukuri Nippon Grand Awards:
The Japanese government established thisawards program in August 2005 to
support the advancement of Japaneseindustry and culture and steadily pass on
the monodzukuri (manufacturing) thathas been instrumental in allowing people
to lead comfortable daily lives. The
awards are given every two years topeople who play central roles inmanufacturing and production andothers recognized for excellence,
including skilled individuals who sustain
traditional and cultural arts.
3. EPC: Engineering, procurement andconstruction (the sequence of business ofan engineering company)
4. Floating LNG: Floating natural gas liquefaction facilities
5. PLE: Plant lifecycle engineering.
A business model for providing customerfocused service throughout a plant’s
lifecycle, from business plan toconstruction, operation, maintenance,
expansion, renovation and decommissioning.

3

The Chiyoda Group’s Unique CSR Initiatives

The Qatar LNG Project: Headed for SuccessCompletion of the World’s First Mega LNG Plant in Qatar
Following the February 2009 completion of Russia’s first LNG plant in
Sakhalin, in the same year the Chiyoda Group completed the fourth of six
trains of the world's largest LNG plant in the Middle Eastern emirate of

ペルシャ湾

ラスラファン
Ras Laﬀan

Qatar. Each train is capable of producing 7.8 million tons of LNG annually.
The LNG plant is a major national project for the government of Qatar,

Doha
ドーハ

which aspires to make the country the world's largest LNG producer by
the end of 2010, with annual production of 77.0 million tons, or about
サウジアラビア

one-third of the total world supply. The Chiyoda Group continues to
execute the project in a concerted effort to complete the last two trains
during the fiscal year ending March 31, 2011.
In the nearly 35 years since it constructed two 1.1 million ton trains of
an LNG plant in Abu Dhabi in 1976, the Chiyoda Group has been at theforefront of global LNG plant expansion, and has engineered and built
facilities equivalent to 40 percent of the world’s LNG plants. The Chiyoda
Group built the three trains (annual production of 2 million tons each at
the time of the first train, now 3 million tons) of Qatar's first LNG plantfrom 1996 through 1998, and has been executing LNG-related projects in
Qatar ever since.
LNG is counted as a clean energy source because it emits less carbon
dioxide than the other fossil fuels when burned — about 20 percent lessthan oil and 40 percent less than coal. It plays an important part inJapan’s national energy strategy to ensure a stable supply of energy anddiversify supply sources. At the same time, the realization of a mega
LNG plant that can leverage economies ofscale offers many advantages that can help
to lower the cost of energy, including
lower construction costs, higher operating
efficiency and better safety. This huge projectis truly a challenge for an integrated
engineering company.
The LNG plant construction project team(All photos on pages 4 and 5 courtesy of Qatargas Operating Company Limited)

4The Chiyoda Group is completing construction of the first mega LNG plant in the world. The
plant will make a significant contribution to resource development in Qatar and to the global
environment.
CHIYODA CORPORATION Group CSR Report 2010

Building a Mega LNG Plant: Challenging the Unknown
Building a mega LNG plant involved much more than simply extending conventional engineering technology. It only
became possible after overcoming various obstacles by refining technologies and developing new technologies with ahigh degree of difficulty.

Challenging New Engineering Techniques● We

developed process innovations and used a number of new designs andlarge-scale machinery, including high-power gas turbines. The system as a whole
required us to overcome very high technological issues, both mechanical and electrical.
● In tackling the challenge of new designs focused on construction, we employed the Air

Pipe Cooling System* in constructing the foundation of the refrigeration compressor toprevent the cracks that form in the concrete of large foundations. This method received
the ACI Construction Award from the American Concrete Institute, a first for a
Japanese company.
*Features of the construction method:
Compared to conventional water cooling systems, the Air Pipe Cooling System is easier to use in a desert area,
where water is precious, and in a remote location where it is difficult to mobilize equipment and skilledworkers. The system is also highly effective in reducing energy consumption and environmental burden.

The LNG plantunder constru
ction

Project Management That Makes Full Use of Experience and IT● By forming task teams with major equipment and material vendors, we achieved

thorough and efficient quality control and delivery management.
● The use of our proprietary integrated database system allowed us to manage more than

10 million materials and to plan and execute smooth material management.
● A much greater-than-expected construction boom created a shortage of resources,

including skilled workers, experienced site supervisors and construction materials. To
cope with the situation, Chiyoda maintained close contact and cooperation withcustomers and business partners in an effort to move construction forward.
An in-depth
meeting withcustomers an
d subcontract
ors

Safety Measures at the Scorching Hot Construction Site
● At the scorching hot construction site, where summer temperatures can exceed 45°C

and the humidity approaches 100 percent, Chiyoda places the highest importance on
the safety of construction workers, who at the peak of construction numbered about
75,000 people from 86 countries with differing cultures and customs. We conductedsafety and environmental health training, covering maintenance of food, clothing andliving environments, and have executed construction safely.
● For our extensive safety initiatives we earned ExxonMobil's Safe Contractor Award as

the best contractor, and have also received praise from customers, the governments of
Qatar and Japan, and third parties.

Chiyoda Presid
ent Takashi Ku
bota and thehead of a custo
mer company
firm handshak
exchange ae at the compl
etion ceremony.

5The Chiyoda Group’s Unique CSR Initiatives

Group Company Activity Highlights

Chiyoda Keiso Co., Ltd.
Business: Engineering, procurement, construction and maintenance of electrical,
instrumentation, control and factory automation equipment

Promotion for Acquiring Certificate of Qualification for Managing Engineer
to Provide Quality Assurance and Reliability to Customers
Under the Construction Industry Law, a full-time managing engineer with governmental
qualification must be assigned depending on the contract amount of the main contractor or theamount of orders to subcontractors. To be qualified as a managing engineer, an employee musttake a training course after obtaining certain national certifications such as First-Class Electrical
Construction Managing Engineer.
Chiyoda Keiso strongly encourages employees to acquire the Certificate of Qualification forManaging Engineer that is essential to its contracting business. In the fiscal year ended March 31,
2010, 12 employees passed the First-Class Electrical Construction Managing Engineer exam,
which had a nationwide pass rate of about 20 percent. The company now has a total of 58
certified supervising engineers.

Quality management at theconstruction site

Chiyoda TechnoAce Co., Ltd.
Business: Engineering, construction, supervision, surveying, planning and consulting for
research laboratories and fine chemical and hydrocarbon facilities

Chiyoda TechnoAce (CTA) implements a CASBEE1 evaluation
as a Design for Environment tool whenever it designs a newbuilding with a total floor area of 2,000 square meters or more.
The Regenerative Medicine and New Drug Research andDevelopment Center for the Central Institute for Experimental
Animals, for which CTA won the order for engineering andsupervision, received an “A” ranking in the CASBEE evaluationfrom Kawasaki City, the site of construction.
In particular, lifecycle CO2 emissions2 were evaluated for thetarget of an 18 percent reduction compared to conventionalbuildings (the benchmark).

2-1 Building Environmental Efficiency (BEE rank & chart)

Project planning meeting
Environmental quality

Design for Environment Initiatives and Results

Environmental load

Extract from CASBEE Kawasaki website (createdby Kawasaki City Environmental Office)

1. CASBEE: Comprehensive Assessment System for Building Environmental Efficiency
CASBEE was developed jointly by industry, government and academia, including the Ministry of Land,
Infrastructure, Transport and Tourism and academic experts, to simultaneously assess environmental quality andperformance and environmental load.
2. Lifecycle CO2 emissions:
Total CO2 emissions associated with all aspects of a building’s operation and use, including maintenance,
manufacturing, construction, renovation, recycling, scrapping, and planning and design.

6Chiyoda promotes CSR activities together with its Group companies. In this feature, we lookat some key initiatives by four Group companies in the fiscal year ended March 31, 2010.
CHIYODA CORPORATION Group CSR Report 2010

Chiyoda Advanced Solutions Corporation
Business: Consulting and engineering solutions related to engineering analysis, improvement of production facilities,
computer-based systems, and the space environment.

Industrial Furnace Diagnosis Technology and Results
Oil refineries and petrochemical plants in Japan are required to appropriately address facility integrity over time, particularly forindustrial furnaces. Chiyoda Advanced Solutions Corporation (ChAS) has developed a furnace diagnosis program to determine theintegrity of a furnace over its life cycle, assess risks and develop proposals for improvement. It thus helps to enhance safety, reduceenergy consumption in the plant, and optimize maintenance and operation. More than half the refineries in Japan have adopted
this program, and over 100 improvement proposals havebeen developed through detailed analysis of furnaces.
Based on these results, Chiyoda Corporation and ChAS
co-hosted an Industrial Furnace Symposium to promotetechnological exchanges with petroleum companies,
petrochemical companies and furnace manufacturers.

Participants at the Chiyoda Industrial Furnace Symposium

Arrow Human Resources Co., Ltd.
Business: Temporary staffing, job placement, outsourcing services for engineering, administrative and government
office related work, and education and training

Award for Measures to Promote Work-Life Balance
Arrow Human Resources (AHR) received the Yokohama Good Balance Award from Yokohama City in the fiscal year ended
March 31, 2010. AHR continues to work to provide better services to its corporate customers and its registered staff. Part of thateffort involves initiatives to promote work-life balance. AHR seeks to develop the skills
and expand the job categories of employees regardless of gender, while also working
to establish workplaces that help both male and female employees balance work andfamily life.
This award recognizes AHR's initiatives, which include holding in-house seminars
and career counseling as needed, launching the Work-Life Balance Committee madeup of people with child-rearing experience, and engaging in ongoing discussions withthe theme of “Enrichment of Work and Private Life.”
AHR intends to step up activities to encourage employees to lead fuller lives bybalancing their work and private life.
Yokohama Good Balance Award certification
and award ceremony (Seated in the center ofthe front row is Fumiko Hayashi, Mayor of
Yokohama City)

7

CSR vision 1

A Reliable Company

We strive to be a reliable company for our customers and other business
partners by providing world-class technologies and knowledge.

CSR Medium-Term Policies●●

Provide industrial plants that earncustomer trust through engineeringof outstanding quality
Share our CSR principles withvendors, subcontractors and otherbusiness partners

Activities in the
Fiscal Year Ended March 31, 2010●

Contributed to society throughtechnology●

Conducted technology exchanges
with customers and business partners●

Reflected customer compliancerequests in supply chains

Providing Advanced Pharmaceutical Plant Engineering and Construction Technology through Unified Group Operation
In August 2009, Chiyoda completed construction of a new ophthalmic solution facility at the Sagami Ohi Plant of
WAKAMOTO PHARMACEUTICAL CO., LTD. Chiyoda worked together with Chiyoda TechnoAce on this project, which
followed our construction of a lactobacillus culture facility for the same company in 2008.
Manufacturing ophthalmic solutions requires the same sterility assurance as the
production of injectable products. We used a cutting-edge system to achieve aneven higher level of sterility assurance that minimizes contamination risk in the
crucial filling section of the production line.
This was a major construction project requiring 200,000 man-hours, but it was
executed smoothly, backed by the Chiyoda Group’s experience in engineering
manufacturing plants for injectable agents and other highly sterile pharmaceuticalpreparations, as well as its strong relationship of trust with the customer. We willcontinue to contribute to the health and well-being of society through the
New ophthalmic solution facility ofengineering of pharmaceutical manufacturing facilities.
WAKAMOTO PHARMACEUTICAL
CO., LTD.

Our company’s management philosophy is to contribute to the creation and development of a healthy andaffluent society through the research and development, production, and supply of pharmaceuticals. We
conduct our business to be a people- and environment-friendly company, focusing on the ophthalmology field,
lactic acid products and our “Strong Wakamoto” brand. We built the new ophthalmic solution facility not justto expand production capacity for our own products, but also with our sights set on contract manufacturing
for other companies. This state-of-the-art manufacturing facility incorporates various concepts such as a highsterility assurance level. I am very grateful to the Chiyoda Group, whose technological expertise and experienceplayed a large part in the facility’s smooth completion.
Comment from the Customer

8

Takashi Ishii President, WAKAMOTO PHARMACEUTICAL CO., LTD.

CHIYODA CORPORATION Group CSR Report 2010

Technology Exchange Based on Trust
Chiyoda originated and developed CT-121 FGD technology (CT-121) in the 1970s when the air pollution caused by
SOx and NOx was a serious social issue in Japan. Almost forty years of technology exchange with Southern Company
Services (SCS), an engineering firm of Southern Company (SoCo), one of the largest utility companies in the UnitedStates, has played a great role in furthering the development and deployment of the technology worldwide.
In the early 1970s, SCS conducted FGD demonstration projects using several technologies to cope with future U.S.
SO2 emission controls and CT-121 received the highest evaluation among those technologies. The results of thedemonstration project were highly regarded by the Electric Power Research Institute (EPRI) and the technologicalexcellence of CT-121 became well known in the U.S. electric utility industry.
In the 1980s, SCS participated in the Clean Coal Technology (CCT) program sponsored by the U.S. Departmentof Energy and again successfully demonstrated the excellent performance of CT-121 through the threeyear demonstration.
In the 2000s, SoCo installed nine commercial units with maximum output of 900 MW, adopting CT-121 for theircoal fired power plants to comply with the stringent U.S. SO 2
emission regulations. All the CT-121 units in operation meet theregulatory performance requirements. To date, CT-121 has been
selected for several coal-fired power stations of other electric utilities
as well, and holds a large share of the market for this type oftechnology in the United States.
Thus, CT-121 was born in Japan, was nurtured and grew up in the
United States, and has been adopted in the United States, EU,
China, Japan and many other countries. SCS and Chiyoda share thecommon value of “Contributing to society with technology,” based
Signing ceremony of CT-121 technology licensing
on mutual trust developed through longstanding technology
agreement. Chiyoda President Kubota shakes hands
exchange.
with Ed Day, Executive Vice President, Engineeringand Construction Services at Southern Company
Generation.

I have been involved with CT-121 since the first test unit at Gulf Power Company in Florida, USA in the early
1970s. Chiyoda's dedication to improving CT-121 over the years has always impressed me. They have truly
followed in the footsteps of their founder Dr. Tamaki, who saw a sacred duty to better society throughengineering. The CT-121 FGD process is a shining example of this philosophy.

Randall E. Rush General Manager, Gasification Technology, Southern Company Generation

Comment from the Customer

For more details, please refer to our website. http://www.chiyoda-corp.com/csr/en/

9CSR vision 2

Environmental Initiatives

We will work to remain an invaluable company to society by utilizing reﬁned
technologies to promote harmony between the global environment andeconomic and social activities. Our environmental initiatives include measures toreduce greenhouse gas emissions and waste.

CSR Medium-Term Policies●

Develop and provide environmentallyfriendly energy and conservation
technologies●

Conduct business activities
that contribute to environmental
conservation

Activities in the
Fiscal Year Ended March 31, 2010
Toward realization of a low-carbon society,● Constructed LNG facilities, environmental
facilities and others● Maintained ISO14001 certification andimproved operations● Expanded energy-saving office facilities● Conducted eco-office activities

Contributing to Stable Energy Supply and Greenhouse Gas Reduction
Gas to Liquids (GTL) Technology Using CO2 as a Raw Material
A demonstration test project aimed at establishing domestic Gas to Liquids (GTL)1 technology is moving ahead in
Niigata Prefecture, with a production rate of 500 barrels per day. This is a joint project between the Japan Oil, Gas andMetals National Corporation and the Nippon GTL Technology Research Association composed of six private companies:
INPEX Corporation, Nippon Oil Corporation, Japan Petroleum Exploration Co., Ltd., Cosmo Oil Co., Ltd., Nippon SteelEngineering Co., Ltd. and Chiyoda.
Fuels produced using GTL technology are promising as clean, environmentally friendly fuels because they are free of
sulfur and aromatic compounds. Existing GTL technology uses natural gas as a raw material, but CO2 must be removed.
However, a feature of the Japan-GTL technology is that it employs
Chiyoda’s unique CO2 reforming catalyst that allows natural gas
containing significant amounts of CO 2 to be used as a raw
material. This breakthrough technology opens a path to new, clean
fuels using natural gas, which is found widely throughout theworld, as a raw material.
The demonstration plant, completed in April 2009, is currently
undergoing a two-year demonstration operation. We are looking atpractical applications for this unique GTL technology to secure astable energy supply while contributing to the global environment.
The Japan-GTL demonstration plant in Niigata Prefecture

1. Gas to Liquids (GTL) Technology: Technology in which natural gas passes through a syngas (hydrogen and carbon monoxide) to becomeliquid hydrocarbon fuel.

10

CHIYODA CORPORATION Group CSR Report 2010Material Flow in Business Activities (Fiscal Year Ended March 31, 2010)

2. Green procurement: Procurement thatgives preference to eco-friendly equipment
and materials

INPUT

Green
Procurement2

Offices

Domestic construction sites

Electricity . . . . . . . 11,800,000kWh
Water . . . . . . . . . . . . . . . . . . 52,000kl
Gas . . . . . . . . . . . . . . . . . . 426,000m3
Paper . . . . . . . . . . . . . . . . . 223 tons

Electricity . . . . . . . . . . 420,000kWh
Diesel oil . . . . . . . . . . .
1,900kl
Kerosene . . . . . . . . . . .
4.7kl
Ready mixed concrete . . 46,000 tons
Asphalt concrete . . . 8,000 tons
Steel . . . . . . . . . . . . . . . 11,000 tons

Recycling facilities

Business Activities(EPC, office, and research and development activities)
3

3. EPC: Engineering, procurement and construction

RecycleIntermediate treatment facilities
Domestic construction sites
Recycling rate
(excluding sludge) . . . . . . . . 81.5%

Offices
Recycling rate . . . . . . . . . . . . 76.4%

Final disposal site
Final disposal quantity(excluding sludge and incinerationash) . . . . . . . . . 3,400 tons

Total Oﬃce Greenhouse Gas Emissions (Mainly CO2)（kg）
10,000

8,880

9,097

8,894

OUTPUT

8,353
7,641

8,000
6,000

Offices

Domestic construction sites

4,000Greenhouse gas(CO2 only) . . . . . . . . . . . 7,630 tons
General waste . . . . . . . . . . 103 tons

Greenhouse gas(CO2 only) . . . . . . . . . . . 5,210 tons
Chemical substances . . . 13.6 tons
Industrial waste(excluding sludge) . . . . 21,100 tons

2,000
0

’06

’07

’08

’09

’10

(Fiscal years ended March 31)

For more details, please refer to our website. http://www.chiyoda-corp.com/csr/en/

11

CSR vision 3

Social Contributions throughThrough its engineering business in Japan and overseas, Chiyoda contributes
to local communities in ways including human resources development,
technology transfer and environmental protection.
Activities in the
Fiscal Year Ended March 31, 2010

CSR Medium-Term Policies●

Contribute to society throughintegrated engineering businessactivities●

Enhance social contribution activities
by providing knowledge and labor

Through our engineering business in Japanand overseas,● Contributed to national and regional
development through participation in
local community activities● Supported education of the next generation and transferred technology

Field Office Activities: Taiyo Field Office (Kikumacho, Imabari, Ehime Prefecture)

Coastal Cleanup
Hosting of Sports
Tournament
The Taiyo Field Office sponsored a volleyball tournament
with 12 teams from the Kikumacho Recreational Volleyball
League and two of Chiyoda’s elite teams. The event was a wayof thanking the community for its support in our projects andpromoting our activities.

The Chiyoda Health and Safety Council sponsors
a monthly cleanup of the Kikumacho Hayama
coastal area that links the Taiyo Field Office and thecommuter parking lot.
The beautiful coast of Hayama is home to ducks
and herons, and always drives away our exhaustion.
The cleanup is our small way of giving back to thiscommunity of kind residents and natural beauty.

We were born in Kikumacho, and work as Chiyoda office employees.
Kikumacho is a town of mountains, sea and tile roofs, so when a major construction project was started
here, it attracted attention locally.
Chiyoda has been involved with this town for 40 years, and is thoroughly integrated with the community.
The company has gladly contributed and given back to the community through activities such as hosting thevolleyball tournament, cleaning up beaches and roadsides, and participating in summer festivals.
We’re proud to be members of Chiyoda and proud that Chiyoda people conduct activities like these not
only here in Kikumacho, but throughout Japan and around the world.
A Word from Field Office Staff

12

Kazuko Ishino (left) and Nana Kawaharada (right)

Business Activities

CHIYODA CORPORATION Group CSR Report 2010

Social Contribution Activities in the Fiscal Year Ended March 31, 2010
Environmental Classes

On March 2, 2010, Chiyoda conducted an environmental
class for 105 fourth-grade students at Higashihara Elementary
School in Zama City, Kanagawa Prefecture. The classcombined a quiz about the importance of water and a water
purification experiment. Chiyoda also held classes at twoother schools for a total of 161 students.

Overseas Group Company Activities
L&T-Chiyoda Limited (India)
is engaged in numerous social
contribution activities. On
World Environment Day, June 5,2009, the company’s management took the initiative inplanting trees in the areaaround its offices. In addition,
the company carries out a blood
donation campaign with thecooperation of employees andtheir families each year on
November 7, the anniversary of
its establishment. L&T-Chiyoda’s
activities also include providing
food aid to frail children anddonating personal computersand books to local schools.

Cleanup Campaign“TABLE FOR TWO” Program

On July 11 and November 15, 2009, Chiyoda Group
employees and their families volunteered alongside members of
the neighborhood association in a cleanup campaign in
Tsurumi-ku, Yokohama City, where Chiyoda’s Yokohama Head
Office is located. Cleanup campaigns were also conducted
twice in the neighborhood around Chiyoda’s Koyasu Office &Research Park in Kanagawa-ku, Yokohama City.

“TABLE FOR TWO” (TFT) is a program in which companies offera healthy TFT lunch menu in their employee cafeterias. For each TFT
meal bought by an employee, ¥20 is donated to an NPO thatprovides school lunches for children in developing countries.
Chiyoda began offering TFT meals once a week at its Yokohama
Head Office cafeteria in the fiscal year ended March 31, 2010. A
total of 2,369 TFT meals were served during the year.

1.
2.
Other Activities
3.
4.

Participation in university education (instructors dispatched): 10 people
Course for elementary school teachers: 13 people
Training of internship students: 13 people
Observation tours and training for energy-saving equipment installed in Chiyoda's office buildings: 34 people
For more details, please refer to our website. http://www.chiyoda-corp.com/csr/en/

13

CSR vision 4

Respect for Human Rights

We are dedicated to respecting the human rights of all people. We will create a
corporate culture where the diversity, individuality and character of employees
are respected, where people are motivated to do their best, and of which
employees and their families are proud.
Activities in the
Fiscal Year Ended March 31, 2010

CSR Medium-Term Policies●●

Create a lively and energetic working
environment and help employees
develop their talents
Instill in everyone involved thatsafety is a core value●

Worked to realize a motivating
workplace environment●

Enhanced safety awareness●Supported foreign engineers

Employee Survey Results
We conducted a survey of employees in working to enliven and energize the workplaceenvironment and help employees develop their talents.

Survey subjects:

1,404(Chiyoda employees)

Respondents:

1,039

Response rate:

74％

1.0%
4.1%

We determined an overall satisfaction rating for employees through the finalquestion on the questionnaire — “Are you satisfied to be an employee of thiscompany?” — to which 74.5 percent of employees answered either “Very satisfied”
or “Satisfied”. This is a 2.4 percent increase from the previous survey and a figurethat can be regarded as a passing grade slightly above average for employee
satisfaction surveys in general.

2009 Survey

2006 Survey

0.8%

0.4%

5.7%

Overall satisfaction
rating: 3.75

0.6%
6.9%

6.0%

Overall satisfaction
rating: 3.70(+0.05 from the 2006 survey)
Very satisﬁed

19.6%

Satisfied

68.8%

Neither satisfied nor dissatisfied
Dissatisfied

Very satisﬁed

20.0%

Satisfied

66.1%

Neither satisfied nor dissatisfied
Dissatisfied

Very dissatisfied

Very dissatisfied

Donʼt knowDonʼt know

Chiyoda will reflect the results of this survey in measures to further improve employee satisfaction. Going forward,
we will conduct similar surveys regularly to confirm the effectiveness of improvement measures.

14

CHIYODA CORPORATION Group CSR Report 2010

Support for Foreign Engineers
Chiyoda supports the health of its engineers from the Philippines, India,
and other countries who are employed in Japan in ways such as providing
immunization and information on how to avoid contracting the H1N1
influenza virus. In addition, we support their safety in various ways. For
example, we conduct disaster drills for each dormitory with the cooperation offire departments and have them participate in community disaster drills tolearn about emergency evacuation methods.
Chiyoda also cooperates with the Tsurumi Ward Office in order to build a
network linking foreigners working in Tsurumi-ku and local residents.

Fire extinguisher training

Initiatives to Enhance Safety Awareness
Personal Safety Goals
Safety in daily life goes hand-in-hand with safety on construction sites. Chiyoda therefore realizes the importance ofheightening awareness of and cultivating everyday attention to safety and hazards.
We started a Personal Safety Goal initiative in which employees freely set their own safety goals and consciously act
to attain them. In this initiative, all employees formulate personal safety goals and evaluate their own performance atthe end of the year. The term “safety” used here is not limited to
the narrow sense of the word, but encompasses all aspects of
Examples of Personal Safety Goals:
HSE,1 and individuals work to attain their personal goals through● Walk over 10,000 paces per day
their daily actions.
1. HSE = Health, Safety and Environment●

Spend at least 30 minutes exercising every week●

Be aware of traffic and do not walk in groups side
by sideAccident Rate
The frequency rate of accidents at construction sites was 0.152 and the severity rate was 0.15.3 (Fiscal year ended
March 31, 2009 frequency rate: 0.14; severity rate: 0.13)
2. The frequency rate of accidents is the number of individuals in accidents (excluding accidents with no loss of working time) per total
working hours, times 1 million. A lower figure indicates higher safety.
3. The severity rate of accidents is the number of lost-time days per total working hours, times 1,000. A lower figure indicates higher safety.

Health and Safety Inspection Tours
Chiyoda undergoes health and safety inspection
tours by third-party institutions to raise awareness ofoccupational health and safety.
A project engineer
responsible for equipment
installation shows people
around a construction site.

For more details, please refer to our website. http://www.chiyoda-corp.com/csr/en/

15

CSR vision 5

Commitment to Fairness

We are dedicated to achieving even greater transparency and stability byconducting our operations fairly in accordance with the highest ethical standards.
Activities in the
Fiscal Year Ended March 31, 2010

CSR Medium-Term Policies●

Conduct business activities based onstrict compliance and a high degree oftransparency●

Revised the Code of Conduct of the
Chiyoda Group and the CSR
Handbook●

Conduct a thorough risk
management program●

Conducted compliance education for
the entire Group

Compliance Initiatives
Expanding and Enhancing Collaboration
with Group Companies and Construction
Site Offices Overseas
Every year, we conduct a survey of the complianceframework and initiatives of our overseas subsidiaries andaffiliates, and the results are used to improve activities.
In the fiscal year ended March 31, 2010, we
conducted surveys of and visitedGroup companies overseas andthe construction site offices ofthe large-scale LNG projects in
Qatar. This combined effort
spread awareness of the Code of
Conduct of the Chiyoda Groupat each location and helped
clarify individual risks.
We distributed an English-language poster of theCode of Conduct of the Chiyoda Group to Group
companies and construction site offices overseas.

Internal Compliance Consultation andReporting System
In April 2009, we held training for staff members of
the Chiyoda Group’s consultation hotlines. Sixteen people
participated to exchange opinions on and receive alawyer’s review of actual reports and consultations.

Compliance training

Reports during the fiscal year ended March 31, 2010
1. Reports related to workplace improvements
2. Reports related to compliance with workplace rules
3. Requests for reminders
4. Other

3
3
0
2

Total

8

Revision of the Code of Conduct of the Chiyoda GroupOn April 1, 2010, we revised the Code of Conduct of the Chiyoda Groupand the Chiyoda Group Compliance Manual due to heightened social demand
for an emphasis on compliance in corporate activities. At the same time, we
issued the second edition of the CSR Handbook in Japanese and English anddistributed it to Chiyoda Group employees.
The Japanese- and English-language versionsof the second edition of the CSR Handbook

16

CHIYODA CORPORATION Group CSR Report 2010

Implementing the Intensive Compliance Campaign Month
Since October 2008, we have designated October every year as Intensive
Compliance Campaign Month. During this month, we conduct complianceeducation through e-learning and seminars by outside professional instructors
covering laws related to the Chiyoda Group’s operations. Seminars to date as partof the campaign and participation from related departments are shown here.
1. Construction Industry Law

1Participants

Lecturers

Approximately 110

Institute for the Promotion of Fair Tradein the Construction Industry
Lawyer and Director, Legal Group,
Nippon Export and Investment Insurance

2. FCPA2

Approximately 70

3. Intellectual property3

Approximately 40

FCPA seminar given by a lawyer

Lawyer

1. Construction Industry Law: The most fundamental law for construction companies, establishing rules that must be followed when
accepting and placing construction orders and during the construction stage.
2. FCPA: Foreign Corrupt Practices Act. A U.S. law established to prevent corruption and bribery in business.
3. Intellectual property: Inventions, ideas and knowledge that have formally recognized economic value or legal standing.

Information Security Measures
Chiyoda regularly holds liaison conferences with Group companies, and works in unison to maintain and enhance its
information security system. Every February and September, which have been designated Information Security Check
Months, we repeatedly issue a variety of reminders about information security and conduct biannual Group training. In
addition, we conduct basic and practical e-learning tests for all regular and temporary employees to confirm theirunderstanding.
Chiyoda and two Group companies, Chiyoda Advanced Solutions Corporation and IT Engineering Limited, haveacquired ISO/IEC27001:2005/JIS Q27001:2006 third-party certification for their information security management systems.
Results of Group Training in the Fiscal Year Ended March 31, 2010
1. e-learning:

Approximately 500 people completed the second basic course, for a cumulative total of approximately 5,500 people.
Approximately 2,800 people completed the first practical course.

2. Group training:

Approximately 100 people attended the fifth and sixth sessions, for a cumulative total of approximately 220 people.

Security Trade Control Initiatives
For overseas projects, we comply with the Foreign Exchange and Foreign Trade Act, and have registered our Compliance
Program for Export-Related Regulations (CP) with the Ministry of Economy, Trade and Industry. Based on the CP, we work
to control exports through the Export Control Committee, which includes members from throughout the Chiyoda Group.
We carry out regular training on the fundamentals of export control, as well as training on each specific area of export
control duties. In addition, we have prepared an operations manual for employees in response to the U.S. Export
Administration Regulations (EAR4).
4. EAR: Regulations that must be complied with when exporting U.S.-made products or providing technologies that are determined
to be potential threats to the security of the United States if exported improperly.

For more details, please refer to our website. http://www.chiyoda-corp.com/csr/en/

17

We consolidate Group strengths inour business operations.
Major Group Companies (Chiyoda Corporation's consolidated subsidiaries or companies accounted for using the equity method as of March 31, 2010)
Domestic Group Companies

Chiyoda Kosho Co., Ltd.
Engineering, construction and maintenance of domestic energy
and chemical plants; life and non-life insurance agent

Chiyoda Advanced Solutions Corporation
Consulting and engineering solutions related to engineering analysis,
improvement of production facilities, computer-based systems,
and the space environment

Arrow Business Consulting Corporation

Chiyoda Keiso Co., Ltd.
Engineering, procurement, construction and maintenance ofelectrical, instrumentation, control and factory automation equipment

Consulting on finance, accounting and tax

Arrowhead International Corporation
Chiyoda TechnoAce Co., Ltd.
Engineering, construction, supervision, surveying, planning and consulting
for research laboratories and ﬁne chemical and hydrocarbon facilities

Business travel and relocation agent; materials export andair cargo agent

IT Engineering Limited
Chiyoda U-Tech Co., Ltd.
Feasibility studies and consulting for energy, oil, chemical andenvironment-related plants and various types of industrial facilities

Overseas Design Bases
Chiyoda Philippines Corporation (Philippines)
L&T-Chiyoda Limited (India)

IT system planning, development and operation support; project
management and presentation of production management solutions

Arrow Human Resources Co., Ltd.
(Company name changed January 1, 2010)
Temporary staﬃng, job placement, outsourcing services forengineering, administrative and government oﬃce related work, andeducation and training

Overseas Project Execution Bases
Chiyoda Singapore (Pte) Limited (Singapore)
PT. Chiyoda International Indonesia (Indonesia)
Chiyoda (Thailand) Limited (Thailand)
Chiyoda Malaysia Sdn. Bhd. (Malaysia)
Chiyoda & Public Works Co., Ltd. (Myanmar)
Chiyoda Almana Engineering LLC (Qatar)
Chiyoda Petrostar Ltd. (Saudi Arabia)
Overseas Sales Bases
Chiyoda International Corporation (United States)
Chiyoda Nigeria Limited (Nigeria)

12-1, Tsurumichuo 2-chome, Tsurumi-ku, Yokohama 230-8601, Japan
Please direct inquiries about this CSR Report to:
CSR Division Tel: (81) 45-506-7535 Fax: (81) 45-506-6857

Recognition by SRI (Socially Responsible Investment) evaluation bodies as a company fulfilling CSR standards (As of June 30, 2010)

Selected in FTSE Group’s
responsible investment index

Included in the Morningstar Socially Responsible
Investment Index (MS-SRI) of Morningstar Japan K.K.

Included in the Dow Jones Sustainability Asia Pacific Index(DJSI Asia Pacific)