CHIYODA CORPORATIONGroup CSR Report 2011
Fiscal Year Ended March 31, 2011

Corporate Profile
Contents

Chiyoda Corporation is an integrated engineering company primarily
engaged in the design and construction of plants and facilities in Japan

Corporate Proﬁleinside front coverand around the world. The Chiyoda Group strives to contribute to the1sustainable development of society while promoting harmony between

Editorial Policy

A Conversation with President Kubota 2
The Chiyoda Group’s CSR

6

CSR Vision 1
A Reliable Company

8

CSR Vision 2
Environmental Initiatives

9

CSR Vision 3
Social Contributions throughBusiness Activities

10

CSR Vision 4
Respect for Human Rights

11

CSR Vision 5
Commitment to Fairness
Overseas Group Company
Activity Highlights

energy and the environment.

12
13(As of March 31, 2011)

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)

Paid-in Capital:¥43,396 million

Main Business Fields: Consulting, planning, engineering, procurement, construction,commissioning (test operation), consulting and training for operation andmaintenance, research and development, technology services, and project
management for plants and facilities in fields including energy, chemicals,
pharmaceuticals, biotechnology and the environment
Number ofGroup Companies:

Domestic: 9
Overseas: 12

Number ofGroup Employees:

4,104

URL:

http://www.chiyoda-corp.com/en/

Consolidated Financial Highlights (Billions of yen)
New contracts
New contracts

Revenues
Revenues

Net income
Net income

603.6
603.6

557.7
557.7

484.9
484.9

429.4
429.4

23.5
23.5
446.4
446.4
313.0
313.0

258.8
258.8 209.4
209.4

235.3
235.3

247.1
247.1

9.6
9.6

8.0
8.0

6.5
6.5
3.0
3.0

’07
’07

’08 ’09 ’10 ’11’08 ’09 ’10 ’11’07 ’08 ’09 ’10 ’11’07 ’08 ’09 ’10 ’11(Fiscal years ended March 31)(Fiscal years ended March 31)

’07
’07

’08 ’09 ’10 ’11’08 ’09 ’10 ’11

Revenues by Industry
Revenues
by Industry(Fiscal year ended
March 31, 2011)

Revenues by Region

Revenues
by Region(Fiscal year ended
March 31, 2011)(Fiscal year ended March 31, 2011)(Fiscal year ended March 31, 2011)

6%
6%
22%
22%
18%
18%

36%
36%
18%
18%

LNG Plants
LNG Plants
Gas & Power Utilities
Gas & Power Utilities
Fine Industries &Fine
Industries&
Industrial
Machinery
Industrial Machinery
Petroleum & Petrochemicals
Petroleum & Petrochemicals
Environment & Others
Environment & Others

49%

51%

51%
49%
Domestic
Overseas
Domestic Overseas

Editorial Policy
The Chiyoda Group reports its CSR activities on its website andin the CSR Report.
Differentiation of Website and Report Content
The diagram at the right shows
the differentiation of the content
reported on the website and the
CSR Report. We have reorganized
our website to present basic CSR
information and activities for each
CSR Vision rather than each stakeholder group to facilitate the under-

Composition of the CSR Report

The Chiyoda Group’s CSR
activities
WebsiteDetailed reporting
CSR Report

Reporting witha focus on highlightsof activities in themost recent
fiscal year

The CSR Report focuses on the highlights of activities in thefiscal year ended March 31, 2011.
This year, in addition to the corporate profile, a discussion of
the Chiyoda Group’s CSR activities between President Kubota and
Link and Motivation Inc. President Ozasa, and presentation ofactivities according to CSR Vision, we are highlighting the CSR
activities of the Chiyoda Group overseas.

Scope of the Report

standing of visitors to the site.

The report encompasses the CSR activities of 22 Chiyoda
Group companies (Chiyoda Corporation and 21 consolidated
subsidiaries and companies accounted for using the equity“Commitment to CSR” on Our Website
The “Commitment to CSR” section of our website includes fulldetails of the Chiyoda Group’s CSR activities, including initiatives
outside the scope of the report as well as environmental data and otherinformation.

method), unless otherwise specified.

Applicable Period and Date of Publication
Applicable Period: Fiscal year ended March 31, 2011
(April 1, 2010 to March 31, 2011)
Date of Publication: August 2011

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

Contact Us
As we would like to reflect your opinions and thoughts in our
future activities, please go to the “Contact Us” page on our website,
select “CSR (Corporate Social Responsibility)” and submit your comWe also carry 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.

ments using the form provided.

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

Searchhttp://www.chiyoda-corp.com/
company/csr/
千代田化工

CSRへの取り組み

検 索

Group CSR Report 20111

A Conversation with President Kubota
A Discussion of the Chiyoda Group’s CSR Activities

The Chiyoda Group’s Approach to CSR Is to Put Its Corporate
Philosophy into Practice to Achieve a Sustainable Society
President Kubota discusses the Chiyoda Group’s corporate social responsibility (CSR) with Yoshihisa
Ozasa, a corporate change consultant broadly supported by the business community.

Takashi Kubota
President & CEO
Chiyoda Corporation

Yoshihisa Ozasa
President and Representative Director
Link and Motivation Inc.

Putting the Corporate Philosophy into Practice Is
Chiyoda’s Approach to CSR
Ozasa: Chiyoda conducts CSR by putting its corporate
philosophy into practice. Its initiatives have included proactive efforts to address environmental problems since the1970s, quite some time before the term CSR came into
popular use.
Kubota: Chiyoda’s predecessor was the construction unitof Mitsubishi Oil Co., Ltd. (currently, JX Nippon Oil &Energy Corporation). After nearly all of the Pacific coastal
oil refineries were destroyed during the Second World War,the said construction unit of Mitsubishi Oil was reorganized
as an independent engineering company, namely Chiyoda,
with a view to sustaining the technical resources andexpertise necessary for the post-war reconstruction ofJapan. When Chiyoda was established in 1948, its corporate philosophy was to serve society through technology.
We contributed to the reconstruction of post-war Japan by
putting our engineering capabilities to work in creating asystem for the stable supply of energy.
The substantial increase in energy demand in Japan during the high-growth period from the 1960s to the early
1970s, when the shift from coal to petroleum energy accelerated, brought environmental degradation into focus.
Something had to be done. Under the theme of harmonizing
energy and the environment within the context of the Earth’s
Yoshihisa Ozasa
Born 1961 in Osaka. Entered Recruit Co., Ltd. after graduating from Waseda University. Involved
in recruiting and other activities in the personnel department. Left Recruit after serving in
positions including general manager of organizational and personnel consulting. Established
Link and Motivation Inc. in 2000 with a core technology developed to analyze motivation. The
Link and Motivation Group currently encompasses eight companies. Author of numerous
published works including the recent Motteiru Hito ga Motteiru Kyoutsuten (“What ‘The Haves’
Have”) (Gentosha Inc.)

2

CHIYODA CORPORATION

limited resources, Chiyoda began developing technology that
contributes to society in two key areas: (1) desulfurization of
petroleum products and flue-gas desulfurization for power
plant boilers and other applications and (2) treatment ofindustrial wastewater discharged from petroleum refineries,
petrochemical plants and chemical plants.

Chiyoda’s Corporate DNA
Ozasa: While every company has its own unique DNA,
Chiyoda’s corporate DNA has been clear since the company was established. Two factors influence corporate DNA:
temporal perspective and breadth of vision. Chiyoda has
shared common technological interests with its customers
for decades, ranging from plant construction to maintenance. This gives Chiyoda a long-term perspective in decision-making and the will to refrain from actions that may
be an advantage today but will be a problem for society inthe future. Likewise, Chiyoda’s breadth of vision extends
beyond energy to include the environment. Given this longterm, broad perspective in your corporate DNA, andChiyoda’s commitment to putting its corporate philosophy
into practice, you must be unaffected by all this current
fuss about CSR.
Kubota: Yes. Plants for natural gas and other energy
resources require about 10 years to move from resource
discovery to plant completion, and then operate for another30 years or so. All together, that’s about half a century.
Guaranteeing construction through to performance assurance for a certain period is vital for contributing to theeconomic development of resource-producing countries,
so Chiyoda provides assistance at every stage fromconstruction to operation and maintenance.
Ozasa: Looking at various companies, those in businesses
that end with the sale of some item tend to emphasize selfinterest rather than altruism. Companies that operate inbusinesses requiring longstanding relationships, however,seem to gain awareness over the course of projects lasting
10, 20 or 30 years that their own benefits truly do comefrom helping others succeed.
Kubota: In other words, win-win relationships. I would

say their value is self evident. Chiyoda’s founding philosophy had three emphases: 1) cultivating people; 2) technology and trust; and 3) contributing to communities
worldwide. This philosophy has not changed. We pass ona corporate culture that revolves around the utmost
importance of communication in putting our philosophy
into practice. We bring together a diverse array of technologies and people in long-term projects with a single
goal, which makes communication absolutely essential.
Ozasa: Which means by extension that communicationengineering is important. After all, communication is also
something we build up. While my own company differswith Chiyoda in scale, as a manager I see that communication is a structure of posts and beams that facilitate theflow of information much like the flow of blood through thehuman body. That’s why I am always thinking about how toengineer communication.
I’m referring to deep and universal elemental technologies and organizational frameworks constructed over many
years, not a superficial notion of information flow. Chiyoda
understands the difference between universality and thekind of information that is useful today but useless in a year.
Kubota: Exactly. Society may appear to change on its
surface, but its roots hardly change at all. Conversely, a fresh
look at root issues can be the source of new directions.

Putting the Corporate Philosophy into Practicethrough Projects
Ozasa: Chiyoda is contributing significantly to the development of resources and preservation of the environment
in Qatar. What are the features and significance of yourprojects there?
Kubota: Some of the world’s largest gas fields have been
discovered and developed along the coast of Qatar. The
Chiyoda Group has been continuously involved in liquefied
natural gas (LNG) projects in Qatar for about 20 years,
since the early 1990s. Today, Qatar produces 77 million
tons of LNG annually, which is about one-third ofglobal LNG production volume. Chiyoda was involved inengineering all of Qatar’s LNG production facilities. Doha,Group CSR Report 20113

the capital of Qatar, now has
a wonderful skyline of highrise buildings, but it was asmall fishing village 20
years ago. Development has
improved the standard ofliving for local residents andthe city of Doha has bloomed,
but a key point was deciding
what support was necessary
for the development of the local community. At their peak,the Qatar projects brought together upwards of 75,000
construction workers, and almost all of them were from
more than 80 countries besides Qatar. We wanted to leavesomething with the local community, and therefore createda maintenance and inspection company three and a halfyears ago, progressively training young engineers from thelocal community so the company would take root.
Qatar kindly offered to supply an extra 4 million tons of
LNG to Japanese electric power companies immediately
following the Great East Japan Earthquake. This was theresult of the longstanding relationship between Japan and
Qatar. It keenly reaffirmed the absolute importance ofbuilding trust with the community by determining what theconstruction of a plant can bring to an area.
Chiyoda has also built numerous LNG receiving terminals in Japan since the 1960s, which has contributed tothe stable supply of energy.

An LNG plant in Qatar, one of the word’s largest with two trains that are each capable ofproducing 7.8 million tons of LNG annually(Photo courtesy of Qatar Gas Operating Company Limited)

4

CHIYODA CORPORATION

Reconstruction after theGreat East Japan Earthquake
Ozasa: I imagine that Chiyoda is required to play a significant role in the restoration and recovery following theGreat East Japan Earthquake.
Kubota: First of all, we offer our deepest condolences tothe victims of the recent earthquake. The Chiyoda Grouphas more than ten customers with numerous plants in thearea from Aomori to the Kanto region that suffered earthquake damage. Immediately after the earthquake, Chiyoda
Group engineers called on these companies to conduct
diagnostics and relief reconstruction. We have established
the Reconstruction Support Task Team and are concurrently
proceeding with construction at dozens of locations. Our
intent is to deploy the entire Group in order to complete
reconstruction as quickly as possible. Longer term, we
believe our support for restoration and reconstruction willbuild “bonds of trust,” and we clearly understand that it iscritical to rebuild supply chains in Japan.
Ozasa: The earthquake certainly exposed many of theconnections of everyday life that people take for granted.
Conversely, Chiyoda is naturally aware of these connections because it works with a long-term perspective. The
words “bonds of trust” would not come to you if you are
not aware of those connections.
Chiyoda has supported Japan’s post-war reconstruction and growth, indeed the growth of the global economy.

Japan’s first LNG receiving terminal, Tokyo Gas Co., Ltd.’s LNG receiving
terminal in Negishi

A Conversation with President Kubota

Naturally, therefore, Chiyoda is involved in reconstruction
following the Great East Japan Earthquake.
Kubota: Well, we are professionals in the construction,
maintenance, inspection and reconstruction of plants andproduction facilities, and that is how we can contribute best.

Cultivating Human Resources: Strong Employees
Who Contribute to Society
Ozasa: Cultivating human resources is part of
Chiyoda’s DNA. How does Chiyoda develop its people
through projects?
Kubota: I worked for eight years in Indonesia beginningin 1987. We were expanding an LNG plant on Kalimantan,
and with the first order the Indonesian government
requested that we cultivate a local Indonesian engineering
company. At the peak of the project, Chiyoda had 40
Japanese engineers involved in areas including engineering, procurement and construction in Jakarta to meet thisrequest. At that time, the local engineering company had
150 employees, but after eight years it had grown toemploy 1,500. My experience in Indonesia taught me toshare the viewpoint of others and respect them. With suchbasic thoughts in mind, I managed the site activities, putting the highest priority on safety.
Safety is our core value. It is the basis for building
trust with stakeholders, and we repeatedly instill thisvalue in everyone we work with.
Ozasa: Chiyoda is currently executing a medium-term
management plan that it will complete in the year ending
March 2013. Under the theme of “change and creation,”
Chiyoda is taking on the challenge of entering areas suchas new energy. How will Chiyoda cultivate employees toachieve the targets of the plan and the Company’s futuregoals beyond the plan?
Kubota: As I mentioned, Chiyoda has embraced humancapital as a core component of its corporate philosophy
since its founding. I want employees to develop theirintellect. Intelligence encompasses wisdom and courage. I
want strong, vibrant employees who possess these qualities.
I ask our people to develop the strength and wisdom

needed to understand theircustomers and colleagues bystudying history and classicalthought and by communicatingwith a variety of people. This
will give them the capability
to make the bold, complex
decisions our businesses
require. A company composedof strong employees is likewisestrong and well able to contribute to a sustainable society,which is Chiyoda’s objective.
Ozasa: I regularly urge employees of my company tomaintain an i-Company* mindset. All employees need tothink of themselves as a company, to put their thoughts towork for the prosperity and development of their company
by linking their personal growth with the growth oftheir company. People who are both independent andcommitted are hard to find, so we need to cultivate andincrease the number of motivated young people who ask
themselves how they can contribute.
* i-Company: a mindset in which people look at themselves as a company, and as a manager
growing themselves into an excellent company, eschewing corporate co-dependence inbuilding their own career under their own volition.

Challenges for the FutureOzasa: In closing, in this time of intense change, whatchallenges will the Chiyoda Group take on in the future?
Kubota: We intend to constantly build the social infrastructure people require in their daily lives while contributing to social development. The key will be relying on our
corporate philosophy to meet the emerging quests ofsociety, focusing our attention and actions on areas inwhich we can contribute.
Ozasa: I see. The depth of the Chiyoda Group’s organization will remain unchanged as it accommodates
the current trends in its operations. I also realize that
the Chiyoda Group’s CSR is embodied in its businessactivities, based on its corporate philosophy. I look forward
to your company’s continued success.

Group CSR Report 20115

The Chiyoda Group’s CSR

Chiyoda Group Corporate Philosophy
Enhance our business in aiming for harmony between energy and the environment and contribute to the sustainable development of a society as an integrated engineering company
through the use of our collective wisdom and painstakingly developed technology.

Chiyoda Group CSR Visions
As an integrated engineering
company, the Chiyoda Grouppledges to contribute to thesustainable development of

1. A Reliable Company
We strive to be a reliable company to our customers and otherbusiness partners by providing world-class technologies andknowledge.

society through its businessactivities, and to constantly
strive to increase corporate
value and earn the trust andunderstanding of all stake-

2. Environmental Initiatives
We will work to remain an invaluable company to society by
utilizing reﬁned technologies to promote harmony between the
global environment and economic and social activities.

holders by adhering to thefollowing principles:

3. Social Contributions throughBusiness Activities
Through our engineering business in Japan and overseas, we contribute to local communities in ways including human resources
development, technology transfer and environmental protection.

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 dotheir best, and of which employees and their families are proud.

5. Commitment to Fairness
We are dedicated to achieving even greater transparency andstability by conducting our operations fairly in accordance with thehighest ethical standards.

6

CHIYODA CORPORATIONThe Chiyoda Group corporate philosophy shows the mission that we should fulfill. The CSR
Visions are values that all Chiyoda Group members should share in order to achieve thismission. We have also established the Code of Conduct of the Chiyoda Group and theCompliance Manual as guides to rely on when acting according to our mission and values.

Please visit the web pages below to view the Code of Conduct and Compliance Manual.
-----------------------------------------------------------------------------------------------------------Code of Conduct of the Chiyoda Group
http://www.chiyoda-corp.com/company/en/policy/behavior.html
Chiyoda Group Compliance Manual
http://www.chiyoda-corp.com/company/en/policy/compliance.html

ISO 26000 Core
Subjects*

⑥

④

⑦

②,③

Action Policies• Provide industrial plants that earn customer trust throughengineering of outstanding quality• Share our CSR principles with vendors, subcontractors andother business partners• Develop and provide environmentally friendly energy andconservation technologies• Conduct business activities that contribute to environmental
conservation• Contribute to society through integrated engineeringbusiness activities• Enhance social contribution activities by providing
knowledge and labor

Actions in the Fiscal
Year Ended March 31, 2011

Concrete
Initiatives• Initiatives for a stable supply of energy• Contribution to advancing customer-developed technologies tothe semi-commercial stage

P. 8• Provision of high-quality services that conform to world-classmanagement standards• Construction of LNG facilities and environmental preservation
facilities to help achieve a low-carbon society

P. 9• Promotion of business process improvements through ISO
14001 environmental activities• Promotion of activities for biodiversity• Technology transfer and human resource development throughour engineering business

P. 10• Promotion of regional vitality with social contribution activities inJapan and overseas• Promotion of education for the next generation• Create a lively and energetic working environment and help
employees develop their talents• Establishment of comfortable work environments• Instill in everyone involved that safety is a core value• Enhancement of support system for foreign engineers

P. 11• Initiatives to raise awareness of safety• Enhancement of education and training activities①,⑤• Conduct business activities based on strict compliance anda high degree of transparency• Conduct a thorough risk management program• Collaboration with ﬁeld ofﬁces and Group companies (compliance)• Response to revision of the Foreign Exchange and Foreign Trade
Act (export control)

P. 12• Promotion of ISO 27001 acquisition and renewal(information security)*The 7 core subjects in the Guidance on Social Responsibility (ISO 26000) developed by the International Organization for Standardization have been incorporated and reflected
in Chiyoda’s five CSR Visions, which were formulated earlier.

Group CSR Report 20117

CSR Vision 1

A Reliable Company
Webhttp://www.chiyoda-corp.com/csr/en/okyakusama/
CHIYODA Vision 1

SearchA report explaining our activities in more depth is available on our website.

Initiatives for a Stable Supplyof Energy

Collaborating in Advancement of a CustomerDeveloped Technology

Japan relies on imports for the majority of its energy

In May 2011, Chiyoda successfully completed the installation of a

supplies. Chiyoda has participated in most national oil

semicommercial plant at the Mizushima Refinery of JX Nippon Oil & Energy

stockpiling projects since the Company was established.

Corporation to demonstrate the high severity fluid catalytic cracking (HS-FCC)

We also emphasize harmony between energy and theprocess. The construction was part of a projectenvironment by making an effort to introduce clean energy,

sponsored by the Ministry of Economy, Tradeand have won the trust of many customers through ourand Industry (METI) to develop innovative, next-

involvement in the construction of numerous LNG and LPG

generation oil refining technologies.

receiving terminals. We have construction experience in

The HS-FCC process uses a downflow

over 60 LNG receiving terminal projects, starting with thereactor to achieve uniform reaction times by

Negishi Terminal of Tokyo Gas in 1969.

working with gravity. It is a revolutionary

In April 2011, we completed Phase 2 construction at

technology that enables high-yield production

the LNG receiving terminal for MIZUSHIMA LNG COMPANY,

of propylene, high-octane gasoline and other

LIMITED with the same high level of construction expertiseproducts from heavy oil. Developer JX Nippon

as we showed in Phase 1. We are currently constructing

Oil & Energy Corporation and others involved

three large-scale LNG receiving terminals.

have high expectations for this domestically

Demand for LNG is forecast to increase in the future

developed oil refining process.

The HS-FCC Plant at Mizushima Refineryof JX Nippon Oil & Energy Corporation(Photo courtesy of JX Nippon Oil & Energy
Corporation)

as a form of clean energy that emits little CO2. Chiyoda will

The HS-FCC project started as a technical assistance project of the Japan

continue to put its advanced engineering and construction

Cooperation Center, Petroleum (JCCP) in 2000. A small-scale 30-barrel-a-day dem-

capabilities to work in building safe, high-quality

onstration plant was constructed in Saudi Arabia by Chiyoda Petrostar Ltd. and oper-

LNG terminals.

ated by JX Nippon Oil & Energy for two years from 2003 with King Fahd University ofPetroleum & Minerals and the Saudi Arabian Oil Company. Design of a 3,000 barrela-day large-scale semicommercial plant began in 2007 as part of a Japan Petroleum
Energy Center technology development project. With the completion of the plant at
the Mizushima Refinery, JX Nippon Oil & Energy has begun full-scale trial operation.
Through this project, Chiyoda contributed to the realization of the customer’s
semicommercial plant based on the customer-developed new technology by overcoming various issues in design and fabrication of the processing unit for the new
system and by using its ingenuity in onsite construction to reduce construction timeand ensure safety.

LNG receiving terminal of MIZUSHIMA LNG COMPANY, LIMITED

We will continue to contribute to the establishment of the customer’s new(Photo courtesy of MIZUSHIMA LNG COMPANY, LIMITED)

technology.

Comment from the Customer
Chiyoda Corporation is involved in PTT Chem Group’s EPCC, which is world-class supervision.
At PTT Chem Group, we not only focus on business and operation excellence, but also take both the environmentand social well-being into consideration. Moreover, we took a big step towards being a global socially responsible
company by participating in the United Nations Global Compact.
To further enhance PTT Chem Group’s social responsibility, we plan to get recognition from SRI evaluation bodies,
as Chiyoda has already been included in both Dow Jones Sustainability Indexes and FTSE4Good.
Mr. Jiamsak Nantananate
Executive Vice President, Operational Excellence
PTT Chemical Public Company Limited, Thailand

8

CHIYODA CORPORATIONCSR Vision 2

Environmental Initiatives
http://www.chiyoda-corp.com/csr/en/kankyo/

Web

CHIYODA Vision 2

SearchA report explaining our activities in more depth is available on our website.

Initiatives for Biodiversity
In the Philippines

In Papua New Guinea

At the Mindanao Island Nickel Smelting Plant Construction ProjectAt the Papua New Guinea LNG Plant Construction Project site, wesite in the Philippines, the owner carried out preliminary surveys on

are making an effort to preserve the natural ecosystem by complying

plant and animal habitats to preserve the ecosystem and species. As awith the local government’s environmental assessment system andmember of the joint venture, we are cooperating in construction while

conducting periodic environmental monitoring. In construction to set up

conducting environmental

the site facilities, we maintained the natural vegetation as much as

monitoring four times apossible. Topsoil was applied on completed slopes to assist natural

year and taking measuresrevegetation by native grass so as to prevent soil erosion. Sedimentationsuch as forestation andcontrols such as sedimentation ponds, silt fences and check dams wereplanting of mountaininstalled to prevent pollution to nearby rivers and sea.

slopes and preservation of

We are also working to conserve resources by adopting the 3R

mangroves in compliance

System (Reuse, Reduce and Recycle) to minimize the waste material

with customer policies.

A hillside planted with trees and vegetation

generated at the project site.

In Malaysia
At the Sarawak Polycrystalline Silicon Plant Construction Projectsite in Malaysia, we have set up a sedimentation pond to prevent turbid
water caused by rain onsite from flowing directly into the sea. In addition, every three months we monitor the environment, including water
quality in nearby rivers, noise and atmospheric pollution. In this way,
we are striving to reduce

Conducting periodic
environmental monitoring

impact on the ecosystemnear the site.

Executing Environment-Friendly Work
Chiyoda proactively makes environmental proposals to customers in its main business of engineering, procurement and construction for plants and other facilities. In an indirect way, this helps toraise employee awareness of biodiversity preservation. We made a

Onsite sedimentation pond

total of 263 proposals in the fiscal year ended March 31, 2011.

Overview of Chiyoda’s Environmental Technology

SystemChiyoda has developed a next-generation water recycling system, the i WaterTM System, as a solution to cope with increasingly severe water pollution and water shortages. This recycling system purifies and reclaims industrial wastewater from petroleum and chemical plants for re-use in plants ascooling water or boiler feed water. The reclaimed water can be supplied in the volume and quality thatusers require.

Sea
Water

For
Irrigation, etc.

One project related to this system is an order received in March 2011 from Marafiq, a power andwater utility company in Jubail Industrial City, Saudi Arabia, to determine the feasibility of treating andre-using industrial wastewater in the industrial park. Through pilot tests and other processes, Chiyoda
is aiming to contribute to the water environment in the industrial park by designing and proposing an

Wastewater
Treatment
Plant

UtilityPlant

i WaterTM System.
Chiyoda will continue to aggressively promote the i WaterTM System for effective use of water resources.
Please see the environmental technology section of Chiyoda’s website for further details on
Chiyoda’s environmental technologies.
http://www.chiyoda-corp.com/technology/en/environment/

LNG
Conventional
Water
Resouces

GTL

Refinery

Process
PlantsGroup CSR Report 2011

Oil andGas Field

9Social Contributions throughBusiness Activities

CSR Vision 3

Web

http://www.chiyoda-corp.com/csr/en/syakai_kouken/
CHIYODA Vision 3

SearchA report explaining our activities in more depth is available on our website.

Beach Cleanup on the Qatar Peninsula

Workplace Tours for Local Elementary School Students

In collaboration with Qatar’s Ministry of Municipal

Chiyoda Keiso Co., Ltd. invited 16 sixth-grade students from Chigusa Elementary

Affairs & Urban Planning, about 150 employees of

School in Ichihara City, Chiba Prefecture for a workplace tour as part of their career

Chiyoda Almana Engineering LLC participated in a clean-

education. The program, which was also held in the fiscal year ended March 31,

up of the Al-Dhalouf beach on the northern Qatar

2010, included an explanation of the Chiyoda Group’s business and demonstrations

Peninsula on March 6, 2011. Under the leadership ofof control systems using

General Manager Kazumi Ikeda, the volunteers collected

3D-CAD and touch panels. The

two tons of garbage in two hours.

experience inspired the chil-

The cleanup was covered in the March 16 edition of
the Gulf Times.

dren to dream about their
future and gave them a look at
the workplace environment.

Children operating a touch panel

Instructors Dispatched to Universities to Contribute toLocal Development
As part of its social contribution activities, Chiyoda Philippines Corporation sends
employees to serve as instructors for seminars held at universities in the Philippines.

Science Lab on Space, theEnvironment and Living Organisms
In February 2011, Chiyoda Advanced Solutions

In the fiscal year ended March 31, 2011, one employee instructor gave a lecture on
LNG to around 25 chemical engineering students at Pamantasan ng Lungsod ng
Maynila (University of the City of Manila). Another employee gave a lecture on groupmanagement to 40 students at University of Santo Tomas.
The lectures received positive reviews from the students for their fresh content,

Corporation conducted a class for fifth- and sixth-gradestudents from two elementary schools in Chiba Prefecture

including information about technologies not taught in school.
The company plans to continue this instructor dispatch program to contribute towith a focus on space. Vacuum and gravity experiments
got the students to think about the relationship between

the development of the Philippines through cultivation of human resources.

the Earth’s environment and living organisms, and devices
for living in space were also introduced. The program waswell received by the students.

Instructor and students
after a lecture at the
University of the City of
ManilaStudents listening attentively to a lesson

Other Activities in the Fiscal Year Ended March 31, 2011
Cooperation with university education (instructor dispatch): 11 people
Corporate training of teachers: 12 people● Training of interns: 35 people● TABLE FOR TWO: Total of 2,055 meals● Cleanup campaigns: Held three times with a total of 189 participants

●

●

10

CHIYODA CORPORATIONCSR Vision 4

Respect for Human Rights
Web

http://www.chiyoda-corp.com/csr/en/kakawari/
CHIYODA Vision 4

SearchA report explaining our activities in more depth is available on our website.

Support for Foreign Engineers
The Great East Japan Earthquake of March 2011 had

Enhancement of Short-Time Employment andLeave Programa significant impact on foreign engineers who were in

In addition to its existing systems, Chiyoda introduced the following programs inJapan at the time. Chiyoda provided food, information onconnection with the June 2010 revision of the Child Care and Family Care Leave Law.

scheduled power outages and train operation, and otherforms of support to help restore stability and safety to thelives of those who decided to remain in Japan to fulfill
their duties. They also participated in fire drills in theirneighborhoods and proactively shared information suchas evacuation procedures with local residents.

New Short-Time Employment Systems
We have established two short-time employment systems that enable employees
to care for their children and other family members.
1. A system in which scheduled working hours are set at six hours a day, excluding lunch breaks
2. A flextime system that sets monthly working hours at six hours times the number of work daysin the month

Employees can use these systems to care for children until their third year of elementary school or up to one year per person for other family members who need care.
Child Care and Family Care Leave System
Employees may take a leave of absence to care for children up to the age of 18
months, or up to one year per family member needing care.
In accordance with the enhancement of this program, regulations that were previously difficult to understand because they were scattered throughout the Company’s
Fire drill

Establishment of a Culture of Safety
To establish a culture of safety, it is necessary to

work rules were combined under “Child Care and Family Care Support Regulations” foreasy reference by employees

Comments from an Employee

raise everyone’s awareness of dangers in their daily lives

My four months of training at Chiyoda’s Yokohama office were an eye-opening

and reduce accidents in the workplace. Nipping small

experience. Chiyoda provided me a place to “Learn Everything You Can, Anytime You

accidents in the bud can also help to prevent larger acci-

Can, from Anyone You Can.” I had an excellent time learning new technical knowledge

dents. In the fiscal year ended March 31, 2011, Chiyoda

and was provided with very dedicated and knowledgeable trainers. They were always

conducted Basic Risk Education for all Company officers

there when I needed guidance and advice.

and employees from the president on down. The program

Besides engineering knowledge, I also learned

was designed to teach them about the risk of accidents

about Japanese culture through participation in

based on the various risks encountered in everyday life,

company events like the mikoshi festival. Being

and to get them to think about ways to avoid risks. Of

a foreigner in Japan for the first time, I felt athose who took the course, 99 percent said the program

warm welcome from the support I was given.

raised their interest in and sensitivity to risk. We will

I would like to take this opportunity to express

continue this program to establish a culture of safety

my deepest thanks towards Chiyoda for theat Chiyoda.

time and effort they put in training me. I would
say that even in a short period of time,
my experience at Chiyoda has been rewarding
and productive.

Ms. Loh Pow Ee
Chiyoda Malaysia Sdn. Bhd.

Group CSR Report 201111

CSR Vision 5

Commitment to FairnessWebhttp://www.chiyoda-corp.com/csr/en/compliance/
CHIYODA Vision 5

SearchA report explaining our activities in more depth is available on our website.

Compliance Initiatives
Chiyoda has strengthened and expanded collaboration with field offices (construction
sites) and Group companies. Site managers, who have overall responsibility for field
offices, are given pre-assignment training to shore up risk response capabilities on the front
lines of our business. In addition, we have expanded feedback on issues and customer trends
to the entire company. In view of the importance of managerial staff in the organization, we conduct a self-checkof compliance awareness for all line managers with ane-learning program to promote renewed consciousnessof the responsibilities of their position.

Export Control Initiatives

Reports to the Consultation andReporting Hotline
Reports related to workplace4
improvements
Reports related to compliance4with workplace rules
Requests for reminders
0
Other
1

Lawyer leading a workshop on foreign corrupt
practices prevention for overseas project staff

Information Security Measures

In accordance with the revision of the Foreign

Chiyoda conducted training and issued reminders in

Exchange and Foreign Trade Act, Chiyoda has

February and September, which it has designated asrevised its compliance program (CP) and registered

Information Security Check Months to promote thoroughit with the Ministry of Economy, Trade and Industry.

familiarity with information security management system

Based on the CP, we continue periodic internal(ISMS) rules. We further upgraded information control byaudits and training for regular employees and coor-

introducing a tool throughout the Company to prevent misdi-

dinators in charge of export control in each division.

rected e-mail transmissions. Chiyoda Philippines Corporationacquired ISO 27001 certification during the fiscal year ended
March 31, 2011, bringing the number of ISO 27001-certified
Chiyoda Philippines Corporation’s
ISO 27001 certificate

Chiyoda Group companies to five.

Training Conducted in the Fiscal Year Ended March 31, 2011
People are the foundation of our commitment to fairness. In the fiscal year ended March 31, 2011, we focused on expanding education and training.

Compliance
Compliance e-learning

2,100 participants

Export control general training

Self-check of compliance awareness for managers

176 participants

Export control coordinator training

Executive ofﬁcer compliance training

28 participantsCompanywide notiﬁcations(export control ofﬁcial notices)

Training for heads of overseas Group companies

7 participants

Construction industry law workshop

54 participantsForeign corrupt practices prevention workshop

37 participants

Training for Consultation and Reporting Hotline staff

19 participants

Pre-assignment training for site managers ofﬁeld ofﬁces

23 times,
40 participantsCompanywide notiﬁcations(about laws and regulations)

12

Export Control

CHIYODA CORPORATION

7 times

5 times, 72 participants
3 participants
6 times

Information Security
Information security e-learning

3 times, 3,200 participants

Information security training

2 times, 160 participantsCompanywide notiﬁcations(Information Security Check Months)

2 times

CSR Training
CSR training for new employees

78 participants

CSR training for mid-career hires

4 times, 42 participants

CSR training for clerical experts

8 participantsOverseas Group Company Activity Highlights
Awards System to
Develop Employee Strengths

L&T-Chiyoda Limited (L&TC)
http://www.lntchiyoda.com/

L&TC introduced the ICONS (Immense Contribution of Noteworthy Significance) awards system to promote excellence invarious facets of work, personal development, social contribution and professional expertise, as well as to nurture a culture ofappreciation in the organization. Under the ICONS system, candidates from among all employees from the trainee level up to
deputy general manager are nominated by Team Leaders and evaluated in categories such as business development, handlingcustomers, achieving customer delight, business execution, achieving company objectives, and communication and teamwork in
the workplace. ICONS are given every quarter. Nominations are screened by the Apex Committee, and all the winners receive a
trophy, certificate and a gift voucher. A total of 257 employees have been selected for ICONS to date.

Support to Our Local Community

Chiyoda Philippines Corporation (CPh)http://www.chiyodaphil.com.ph/

CPh directs its efforts towards making a positive and visible impact in the community through in-kind
support and using its available resources. In March 2011, CPh donated existing old furniture (for example,
cabinets, tables and bulletin boards that did not fit at the new CPh office) to Highway Hills Elementary Schoolin Mandaluyong City.

A Multinational Company that Respects
Human Rights
Chiyoda Almana Engineering LLC (CAEL)
http://www.cael.com.qa/
CAEL has employees of 26 different nationalities and manages its business with the mottos, “Help Each Other” and “Respect Each Other.” We are
exploring new business models as we unite the diverse cultures and values of
the world with Chiyoda’s DNA.

Engineering for a
Cleaner Environment

Chiyoda Singapore (Pte) Limited (CSL)
http://www.chiyoda.com.sg/

CSL has been undertaking the SCOT & BUGIS Project since the
Front End Engineering and Design Phase, and it is now in the detailengineering stage. The SCOT & BUGIS Project is to desulfurize fuel oil,producing fuel that has less impact on the environment. Once the
SCOT & BUGIS Project is completed, end products will have less sulfur
than those produced by the conventional refining process. CSL isproud to be the main engineering contractor on this environmental
project.

Family Day Special - “The Dunking Machine”
Buy a ball and throw it at a target, and if it hits, whoever’s sitting on top (guess who) will get dunked

Planning Events thatContribute to Society
Chiyoda Malaysia Sdn. Bhd. (CMSB)
http://www.chiyoda.com.my/
CMSB organizes a blood donation campaign
every year through the CMSB Recreation Club on
the ground ﬂoor of our office building. We get full
support and cooperation from the building management, and the response from our employees,
the passing crowd and individuals working insurrounding area is truly encouraging. There isalways a shortage of blood, so the cooperation of
the private sector can help to save many lives.

into a pool of water. All money collected throughout the game was donated to the Club Rainbow(Singapore), which is a charity committee contributing tosociety by helping children and youths suffering from a
range of chronic and potentially life-threatening illnesses.
In this way, CSL supported a good cause with a fun-filled
and memorable day for employees and their families, aswell as making a noble contribution to society.

Group CSR Report 201113

We consolidate Group strengths in our business operations.

Major Group Companies (Chiyoda Corporation’s consolidated subsidiaries or companies accounted for using the equity method as of March 31, 2011)

Domestic Group Companies
Chiyoda Kosho Co., Ltd.
Engineering, construction and maintenance of various
industrial machinery and equipment; insurance agent

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

Chiyoda TechnoAce Co., Ltd.

Overseas Group Companies

Consulting, planning, engineering, construction and test operation, etc.
for civil engineering of pharmaceutical and petroleum facilities

Industrial Machinery and Equipment Engineering, Etc.

Chiyoda Advanced Solutions Corporation

Chiyoda Philippines Corporation (Philippines)
L&T-Chiyoda Limited (India)

Consulting and engineering on various analytical technologies, industrial machinery andequipment upgrades, computer-based systems, space environment, etc.

Arrow Business Consulting Corporation

Industrial Machinery and Equipment Engineering andConstruction, Etc.

Consulting and business outsourcing services, etc., for finance, accounting and tax

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

Travel agent; air cargo agent; materials export

Arrowhead International Corporation

Chiyoda U-Tech Co., Ltd.
General consulting on industrial machinery and equipment, regional development, etc.;
review services for ISO certification renewal, temporary staffing

IT Engineering Limited
General IT systems consulting, development and operation;
ERP and Web-based systems engineering, etc.

Arrow Human Resources Co., Ltd.
Temporary staffing, placement consulting, and education and training

Recognition by SRI (Socially
Responsible Investment) evaluation
bodies as a company fulfilling
CSR standards(As of August 2011)
Selected in FTSE Group’s responsible
investment index

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

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
E-mail: csr@ykh.chiyoda.co.jp
国内エネルギー・化学関連プラントの設計・建設・
メンテナンス、損害・生命保険代理業