CHIYODA CORPORATIONGroup CSR Report

2012

Fiscal Year Ended March 31, 2012

Corporate Profile
Contents
Corporate Profile

Inside front cover

Editorial Policy

1

The Chiyoda Group’s CSR

2

A Conversation with President Kubota

4

Chiyoda Corporation is an integrated engineering company
primarily engaged in the design and construction of plants
and facilities in Japan and around the world. The Chiyoda
Group strives to contribute to the sustainable developmentof society while promoting harmony between energy andthe environment.

(As of March 31, 2012)

The Chiyoda Group’s Unique CSR Initiatives 8

Name:

Chiyoda Corporation

Putting Our Corporate Philosophy into Practiceto Achieve a Sustainable Society

8Address:

Reconstruction Initiatives following theGreat East Japan Earthquake

Minatomirai Grand Central Tower
4-6-2, Minatomirai, Nishi-ku, Yokohama 220-8765, Japan

9Group Company Activity Highlights

CSR Vision ❶12

CSR Vision ❷Environmental Initiatives

13

CSR Vision ❸Social Contributions throughBusiness Activities

14

CSR Vision ❹Respect for Human Rights

15

CSR Vision ❺Commitment to Fairness
Third-Party Opinion

Main Offices:

Chiyoda Global Headquarters (Nishi-ku, Yokohama, Japan)
Koyasu Office & Research Park (Kanagawa-ku, Yokohama, Japan)
Tokyo Office (Chiyoda-ku, Tokyo, Japan)

Paid-in Capital:¥43,396 million

10

The Chiyoda Group’s CSR Vision in Action
A Reliable Company(after relocation in June 2012)

16
17

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

4,530

URL:

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

Consolidated Financial Highlights (Billions of yen)
New Orders

Revenues

On the CoverThe cover of this report uses photos of the
Chiyoda Global Headquarters, which was relocatedto the Minatomirai area of Yokohama in June
2012, and diverse staff working at an overseas
plant construction site.
The cover depicts the Chiyoda Group’s current
activities in projects around the world andexpresses our determination to do even more to
realize harmony between energy and the environment on a global scale.

Domestic: 9
Overseas: 12612.5

Net Income
14.4

603.6

446.4

429.4

9.6
8.0

313.0
258.8

235.3

209.4

6.5

247.1 254.7

3.0

’08

’09

’10

’11 ’12

’08

’09

’10

’11 ’12

’08

’09

’10

’11 ’12(Fiscal years ended March 31)

Revenues by Industry

Revenues by Region(Fiscal year ended March 31, 2012)(Fiscal year ended March 31, 2012)

8%
LNG Plants

16%

36%

Gas & Power Utilities
Fine Industries &Industrial Machinery

21%
19%

Petroleum & Petrochemicals
Environment & Others

37%
Domestic

63%
Overseas

Editorial Policy
The Chiyoda Group reports its CSR activities on the Chiyoda Corporation website
and in the CSR Report.
Differentiation of Website and CSR Report Content

Composition of the CSR Report

The diagram at the rightshows the differentiation of thecontent reported on thewebsite and the CSR Report.
On our website we present
basic CSR information andactivities for each CSR Vision tofacilitate the understanding ofvisitors to the site.

The CSR Report highlights activities in the fiscal year ended
March 31, 2012.
This year, in addition to the corporate profile, a discussion
between President Kubota and Ms. Mariko Kawaguchi, Chief
Researcher of the Research Division of Daiwa Institute of
Research Ltd., and a summary of activities for each CSR
Vision, we present the wide-ranging CSR activities of the
Chiyoda Group through a feature on the Chiyoda Group’s
unique CSR initiatives and highlights of the activities of Group
companies in Japan and overseas. We also include the thirdparty opinion of Mr. Eiichiro Adachi, an expert in CSR, whooffers an objective assessment of our initiatives and suggestions for improvement.

The Chiyoda Group’s
CSR activities
WebsiteDetailed reporting

CSR Report

Reporting witha focus on highlightsof activities in themost recent
fiscal year

“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 andother information.

Scope of the Report
The report encompasses the CSR activities of 22 Chiyoda
Group companies (Chiyoda Corporation and 21 consolidated
subsidiaries and companies accounted for using the equity
method), unless otherwise specified.

Applicable Period and Date of Publication
Applicable Period: Fiscal year ended March 31, 2012
(April 1, 2011 to March 31, 2012)

Date of Publication: September 2012

Guidelines Used for ReferenceThis report is prepared with reference to the Global
Reporting Initiative’s (GRI) new Guidelines (G3.1), theReporting Guidelines (2012 Version) of the Ministry of theEnvironment in Japan, and ISO 26000.

Contact Us
We also carry the booklet Legacy for the 21st Century, which can becalled the DNA of the Chiyoda Group, back issues of the CSR Report andother publications.
http://www.chiyoda-corp.com/csr/en/
CHIYODA Commitment to CSR

SearchAs we would like to reflect your opinions andthoughts in our future activities, please go to the“Contact Us” page on our website, select “CSR
(Corporate Social Responsibility)” and submit yourcomments using the form provided.

Group CSR Report 20121

The Chiyoda Group’s CSR
Enhance our businessthe sustainable devel
our collective wisdom

Our Mission

Chiyoda Group Corporate Philosophy
Our Values

Chiyoda Group CSR Visions
ISO 26000
Core Subjects

1
2

A Reliable Company
We strive to be a reliable company to our customers andother business partners by providing world-class technologies
and knowledge.

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.

Social Contributions through Business Activities

3

Consumer(customer) issues

Through our engineering business in Japan and overseas,
we contribute to local communities in ways including
human resources development, technology transfer andenvironmental protection.

The environment

Community
involvement anddevelopment

Respect for Human Rights

4
5

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.

Labor practices

Commitment to Fairness

Organizational
governance

We are dedicated to achieving even greater transparency
and stability by conducting our operations fairly in accordancewith the highest ethical standards.

Human rights

Fair operating
practices

Basis of Our Actions
Code of Conduct of the
Chiyoda Group

2

CHIYODA CORPORATION

in aiming for harmony between energy and the environment and contribute toopment of a society as an integrated engineering company through the use ofand painstakingly developed technology.
As an integrated engineering company, the Chiyoda Group pledges to contribute to the sustainable
development of society through its business activities, and to constantly strive to increase corporate
value and earn the trust and understanding of all stakeholders by adhering to the following principles.
Action Policies

Actions in the Fiscal Year Ended March 31, 2012

Concrete
Initiatives• Provide industrial plants that earn customer trust
through engineering of outstanding quality• Initiatives for a stable supply of energy and reduction ofgreenhouse gases• Contribution to diversification of energy sources• Plant construction that lives up to customer trust

P. 8, 9, 12• Continuing research and development for a low-carbon
society and hydrogen energy economy• Expansion and promotion of renewable energy• Consideration of the environment and biodiversity inproject planning and operation

P. 13• Promotion and support of culture in the community• Contribution to local economic development andhuman resource development• Tie-ups and cooperation with educational institutions to
educate the next generation• Response to the Great East Japan Earthquake

P. 14• Creation of pleasant work environments• Establishment and enforcement of a safety culture• Enhancement of human resource development system

P. 15• Strengthening of collaboration with field offices anddomestic and overseas Group companies• Implementation and enhancement of continuing
compliance education and audits• Promotion of ISO 27001 acquisition and certification
renewal; establishment and improvement of
information security management system

P. 16• Share our CSR principles with vendors,
subcontractors and other business partners• Develop and provide environmentally friendly
energy and conservation technologies• Conduct business activities that contribute toenvironmental conservation• Contribute to society through integrated
engineering business activities• Enhance social contribution activities by providing
knowledge and labor• Create a lively and energetic working environmentand help employees develop their talents• Instill in everyone involved that safety is acore value• Conduct business activities based on strict
compliance and a high degree of transparency• Conduct a thorough risk management program

Chiyoda Group
Compliance Manual

Please visit the web pages below to view the Code of Conduct andCompliance 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

Group CSR Report 2012

3

A Conversation with
President Kubota
Chiyoda is aiming to be a
“vigorous company with vigorous
employees” to put its corporate
philosophy into practice.

Takashi Kubota
President & CEO, Chiyoda Corporation

Mariko Kawaguchi
Chief Researcher, Research Division
Daiwa Institute of Research Ltd.

Mariko Kawaguchi, a leading researcher on
corporate social responsibility (CSR) andsocially responsible investment (SRI), spokewith President Kubota about the Chiyoda
Group’s CSR.
Kawaguchi: “Energy and environment in harmony” has been

in other words, “Energy and Environment in Harmony” – bydeveloping and rebuilding the infrastructure in Japan and around theworld. This philosophy will continue to guide us in conducting ourbusiness and contributing to society. I think that is what makes the
Chiyoda Group’s CSR initiatives unique.

Chiyoda’s motto since its founding, and is also the essence of the

The Meaning of Engineering

Chiyoda Group’s corporate philosophy. Environmental and energy

Kawaguchi: Although I knew the term “plant engineering,” until

issues are changing significantly with changes in society today. In light

now it conjured up a remote and rigid image because I haven’t reallyof this, please explain the meaning of your management philosophy.

had anything to do with it. Now that I understand your company’s

Kubota: The origin of Legacy for the 21st Century, which puts

philosophy, the term feels more familiar and organic.

forth the thoughts of Chiyoda’s founder Akiyoshi Tamaki in the

Kubota: There has been no suitable Japanese term for plant

1970s, was The Limits to Growth, a report issued by the think tankengineering so far.2 That may be what makes it hard to visualize.

The Club of Rome. It argued that if we continued to use energy inPlant engineering combines and coordinates various equipment

the same ways, the impact on the environment would be enormous.

and materials to build a plant that functions as an optimal system.

From that time, we have held the idea that we need to develop

It requires both broad technological knowledge and management

environmentally friendly technologies. Those of us in seniorcapability. A plant usually takes three to four years to build. The

management took the initiative to declare that we will develop

cost of a large plant is in the order of several hundred billion yen,technologies to solve the problems that exist between energy andso a project manager is the same as the manager of a company

the environment, and have acted on that pledge.

who must shoulder all the responsibility. A project manager must

1

Ever since, Chiyoda has conducted business with a focus onbalancing stable energy supplies and protection of the environment –have the ability to properly understand and judge both technological and management matters.

Notes: 1. A booklet issued in 1972 that described the need for harmony between the advancement of humankind and conservation of the natural environment.
The booklet declared that Chiyoda would always work to develop technologies that help solve problems involving energy and the environment. Even now,
this spirit is passed on to the new generation of Chiyoda people so that our DNA remains the nucleus of all our technologies.
2. On the pedestal of the memorial to Prince Albert (opened in 1872), who built the prosperity that supported Queen Victoria, are inscribed the words
agriculture, commerce, manufactures and engineering, the four pillars that contributed to achieving prosperity. Of these, only engineering does not havean equivalent Japanese word.

4

CHIYODA CORPORATION

Kubota: Three things are important. The first is safety, both inoperating the completed plant and during construction. Second isMariko Kawaguchi

reliability – making sure the plant runs uninterrupted. And third is

After completing a Master’s degree inpublic finance and environmental
economics at Hitotsubashi University
Graduate School in 1986, Ms.
Kawaguchi joined Daiwa Securities Co.
Ltd., where she worked as a foreign
securities analyst and a researcher. In
1994, she transferred to Daiwa
Institute of Research Ltd., where she
worked in corporate research and iscurrently Chief Researcher. Her primaryresearch themes are environmental
management, corporate environmental
assessment, environmental accounting,environmental reporting, socially
responsible investment and corporatesocial responsibility.
Ms. Kawaguchi’s published works
include Environmental Information
Disclosure and Corporate Strategy(co-authored by Toyo Keizai Inc.).

quality. If any one of these elements is lacking, the plant will not
operate normally.
As a mega-scale LNG plant, the Qatar project was a completely
new challenge. Since it was the first time a plant of this size had been
attempted in the world, we developed and adopted new engineering
techniques. We managed over 10 million plant components andmobilized a larger than normal number of engineers. Because thescale of construction was even larger than we had expected, we had
to work hard to allocate skilled workers, who were often in short
supply, from resources worldwide in order to complete the project.
With project management capabilities that ensured thorough quality
control and delivery management, we carried out construction whileproviding in-depth safety, environmental and health training to as
many as 75,000 construction workers from over 80 countries at thepeak of construction. As a result, we completed the project successfully, and received praise both in Japan and overseas.

Kawaguchi: You start with vacant land and put in all of theinfrastructure, including water and energy, right? Would you say thestrong points of Japanese engineering lie in attention to detail andhigh quality?
Kubota: That and a high level of reliability. For example, if a plant

Engineering starts with challenging our creativity. We want tocontinue providing abundantly creative engineering based on safety,
reliability and quality.

The Kind of People Chiyoda Needs

shuts down for one day, the customer may lose several billion yen,

Kawaguchi: From what you say, I get a sense that people are veryso high quality and stable operation are critical. Japanese quality,

important in the business of engineering.

which results in much lower maintenance costs as well as initial

Kubota: Absolutely. In addition to people from various technicalcosts, ends up being inexpensive if you think of the overall picture,

fields such as mechanical, chemical, electrical and civil engineering,and it leads to reliability.

project management requires knowledgeable people in a broad range

Kawaguchi: Chiyoda has focused on making optimal use of energyof fields, from human resource management to finance and law. So

with its technical capabilities to improve living environments andwe hire people from many different fields.

infrastructure, and on supplying energy with less environmental

In the case of a large plant, we place orders with business

impact. I assume that’s why you got involved in the area of liquefied

partners for approximately 10 million components designed

natural gas (LNG) from such an early stage.

by specialized engineers. Coordination is extremely important

Kubota: In Japan, the plan to introduce LNG was formulated in the

because adjustments are necessary at all stages, from finalization of

mid-1960s. At the time, the country could not keep up with demand

specification to fabrication and delivery. The most interesting aspect

for low-sulfur oil, though many desulfurization plants were built andof plant engineering is that it doesn’t work well without goodmuch low-sulfur oil was produced. Air pollution was becoming acommunication skills.

serious problem in the Keihin district near Tokyo. We began working

Kawaguchi: You have long said that “vigorous employees make a

on LNG plants when we received the order for engineering andvigorous company.” What kind of people are “vigorous employees?”

construction of the Negishi Terminal in Yokohama, Japan’s first LNG

Kubota: People who aspire to contribute to society and who

receiving terminal. We have since advanced into overseas markets

challenge themselves to change. When you look at our company’s

and undertaken many LNG plant projects.

project track record, you often see phrases like “first in the world,”

Kawaguchi: Chiyoda worked on the world’s largest LNG plant in“first in Japan,” “one of the largest,” and “contributed to the

Qatar. What are the keys to carrying out a large-scale project andregion’s development.” As these phrases suggest, engineering andmaking sure the plant operates smoothly?

project management require innovation, a positive approach toGroup CSR Report 20125

problem-solving and a strong desire to contribute to society.

well-managed operation. Singapore is similar. Basically, we believe in

Employees with this spirit are behind our many successes.

the principle of “local production for local consumption,” andKawaguchi: How do you go about recruiting and training people

develop human resources so that projects up to a certain level or

who can become vigorous employees?

scale can be performed entirely by local our companies.

Kubota: We value students with well-balanced character, but what

Kawaguchi: That kind of autonomous management is commend-is really important is practical learning after they join the company.

able. One characteristic of Chiyoda is that in addition to the resources

After the initial two-month orientation in Japan, we send them rightthe company has accumulated, it also has aspects that are missing into overseas construction sites. Many of them aren’t yet familiar withJapanese society today. It has employees who can play an active roledrawings for construction, so we give them the opportunity to see

globally and bring people together. I think you should communicate

the drawings at the construction site and experience how things

these qualities more to those outside the company.
On the other hand, although motivated employees who join theactually change.
I personally feel that combining on-site experience withcompany at a young age have plenty of opportunities, being sent outclassroom learning helps a person grow, so we base our training on

to construction sites within two to three months must be tough forthat fundamental idea.

some. Recently it seems that more people quit their jobs after a short

Even if people excel in school, they will not grow into strong

period of time, even those who secure employment right after

employees who see work through to completion unless they have

graduation. What is the situation at Chiyoda?

courage as well as intellect. Since we want employees with both of

Kubota: We have a relatively low employee turnover rate. I thinkthese qualities, we need to attract highly motivated people to join our

one reason is that plant engineering is very dynamic work. For

company and then develop them through practical training.

example, in many cases even our young employees deal with works

We also put effort into passing on our technologies. For thatthat could involve large amounts of money, so they have to concen-

purpose, we established the Chiyoda Engineering Academy. Retired

trate all their thoughts to handle challenging issues stemming from

employees serve as the instructors and classes are held regularly so

the scale of the business.

that technologies can be handed down to younger employees.
We also want our Japaneseemployees to have a more global

Another reason is that our company culture offers a very highdegree of freedom, in a positive sense.

perspective. To that end, we bring

Diversity Management

engineers from our Group companies in

Kawaguchi: A growing number of companies are focusing on

the Philippines and India to Japan,
together with other foreign engineers,
to create an environment where ourJapanese employees can work together
with as many as 300 foreign employees.
Kawaguchi: There is a perceptionthat most of the well-known global

diversity management from the standpoint of globalization and
CSR. What about Chiyoda? What is the role of female employees inyour company?
Kubota: Women are also active at plant construction sites.
Currently, about 170 of our approximately 1,600 employees are
women. Of those, about 20 are in executive positions, and somecompanies in Japan are business-toconsumer companies, such as automobile or electronics manufacturers. But in fact, companies such as
Chiyoda that sell to other businesses outside Japan are moreglobal and diverse.
Please explain in a little more detail how you approach communication with employees of such diverse nationalities.
Kubota: We have been promoting internationalization throughout
the Chiyoda Group since the 1970s.
Our group company in Qatar, for example, has about 400
employees. They include people of some 30 different nationalities,
with only about 20 permanent Japanese employees. It is a6

CHIYODA CORPORATION

Women are active at plant construction sites.

A Conversation with President Kubota

are at the general manager level. I think more women will bepromoted in the future.
In addition to areas requiring clerical skills, the percentage offemale applicants has been increasing recently in the area of piping,for example, which connects plants. This kind of work benefits fromwomen’s characteristic patience and attention to detail. If we alsoenhance working conditions to include options such as telecommuting, I expect to see even more opportunities for women invarious family situations.
Kawaguchi: There are more women at Chiyoda than I imagined.
Until now, I had no idea what kind of work women could do in anengineering company, and in what capacity. If minor parts in piping
and other components go wrong in a project, enormous losses could
result. Therefore, getting those parts right is very significant. Seeing
outstanding women in executive positions improves understanding of
Chiyoda and changes the company’s image.
Another point about the participation of women: Studies haveshown that if you have female board members, they can offer
opinions that reflect different perspectives than those of men, which
improves management of various risks.
Kubota: I realize that promoting women will be an issue going
forward. We will probably see female directors in the future.
In addition to female employees, we intend to use outstanding
talent from around the world, regardless of gender or race, andwill arrange our organization so that they can work anywhere in
the world.

Dealing with the Environment andCommunities in Project Execution
Kawaguchi: Nongovernmental organizations are becoming more
influential, and companies around the world are being scrutinized
more closely. In the numerous plant projects that Chiyoda isundertaking, how does the company communicate with people inlocal communities?
Kubota: That is one of the most challenging parts of building aplant, whether in Japan or overseas. In addition to preserving theenvironment, how to protect the property owned by people in thelocal community and how to build the plant in harmony with theexisting infrastructure are the biggest factors in the success or failureof a project. Therefore, we devote considerable time to these issues.
When we begin a project, we stay in close contact with the customer,
and our project team cooperates in addressing community concerns.
Kawaguchi: As Japanese companies expand their operations

Ambitions for CSR Activities
Kawaguchi: To summarize, what are your ambitions for
CSR activities?
Kubota: In June this year, we
relocated our headquarters from
Tsurumi-ku to the Minatomirai area of
Yokohama. As a global group aiming
for further expansion, I think we got off
to an auspicious start by establishing
the new headquarters near thesymbolic port of Yokohama, which led
Japan into the international community
more than 150 years ago.
We will continue working to meetthe expectations of all our stakeholders.
This includes dealing with issues thatmust be addressed in order to make the Chiyoda Group more global
and determining what kind of company we should be in the longterm. We also want to solidify our corporate brand as a company
that has contributed to society based on our mission of “Energy andEnvironment in Harmony,” and to establish our direction for the
future. To achieve these goals, I want to build new Chiyoda work
styles that give people the psychological breathing room to do
creative work in new environments. This will involve changing
lifestyles and other initiatives that also help increase work
efficiency. I am confident that such an approach will lead to unique
Chiyoda Group CSR initiatives by “a vigorous company withvigorous employees.”
Kawaguchi: Based on what you’ve said, the plants you construct
can be likened to the human body. The digestive functions are next tothe lungs, and everything is connected and works systematically as asingle organism. They are like living things. I had imaginedengineering as being hard and metallic and unapproachable, but it isreally about creating living things and is full of romanticism. I’ve
learned from you that engineering is the business of creating
something organic that benefits the world. I suppose you could say“engineering is organic.”
I now understand that the Chiyoda Group is steadily expanding
its efforts to contribute to society as well as business through its
experience, technical expertise, management capabilities, vigorous
employees, and above all, its high aspirations. It is a group withdreams. I look forward to your continued success.

globally, they will need to deal with local environments andcommunities. Chiyoda’s approach and experience in interacting withlocal communities serves as a good example for others.

Group CSR Report 2012

7

The Chiyoda Group’s Unique CSR Initiatives
Putting Our Corporate Philosophy into Practice to Achieve a Sustainable Society
The Chiyoda Group has always conducted its business with amanagement philosophy centered on “Energy and Environment inHarmony.” In the booklet Legacy for the 21st Century, issued in 1972,
Chiyoda declared that it would use technological development andengineering for both stable energy supply and environmental protection. This spirit is still the backbone of our business activities today.
Based on this spirit, we have worked to develop environmental
technologies including flue gas desulfurization, exemplified by theLegacy for the 21st Century

CT-121 process, as well as wastewater treatment and heavy oil
cracking. We are now steadily expanding our activities in the area of new energy. Examples include
using solar, thermal and other types of renewable energy, creating a hydrogen supply chain withtechnology for storage and transport of large amounts of hydrogen, and developing Gas to Liquids(GTL) technology. These technologies support the realization of a low-carbon society by reducing
CO2 emissions.
Georgia Power Co. (United States)
Plant Bowen Unit 3, CT-121 FGD Plant

Moreover, through plant construction, we contribute not only to local economic development
and job creation, but also to technology transfer and human resource development through anon-the-job training program for local personnel and other initiatives. At the same time, we work topreserve the natural environment and ecosystems around our plants with measures such as
promotion of green procurement, eco-friendly engineering and environmental monitoring during theconstruction period.

Qatargas 2, LNG Plant (Train 4) (Qatar)

Gas oil deep desulfurization plant for TOA Oil Co., Ltd.
in Kawasaki

8

CHIYODA CORPORATIONThe JAPAN-GTL demonstration plant in Niigata Prefecture

Reconstruction Initiatives following the Great East Japan Earthquake
After the Great East Japan Earthquake struck on March 11, 2011, the Chiyoda Group promptly set up a Reconstruction Support Task Team. We havedone everything we can to support the restoration of our customers’ production facilities in the affected areas. As of March 31, 2012, we have carriedout more than 60 reconstruction projects, some of which are still in progress.
We are also supporting the volunteer efforts of Chiyoda Group employees with measures including donations from the Company, employees anddomestic and overseas Group companies, as well as a newly established special paid leave system for volunteers.

First Step in Reconstruction of Ground Facilities
Completed at Kuji National Oil Storage Base ofJapan Underground Oil Storage Co., Ltd.

▲ Energy-related facilities
Oil refineries/Oil storage bases/
Power generation-related facilities■ General industrial facilities, etc.

Pharmaceutical manufacturing and formulation plants/
Airport facilities/Chemical plants/Industrial material plants

The ground facilities of theKuji National Oil Storage Basein Kuji, Iwate Prefecture, which
Chiyoda built, were devastatedby the tsunami caused by theGreat East Japan Earthquake.
The day after the quake,
Chiyoda received an emergency
response request from Japan
Underground Oil Storage Co.,
Ltd. Even though the means of transportation were crippled, we rushed to thesite to conduct a survey of the damage on March 14, three days after thedisaster, and drew up a reconstruction plan with the customer. Although theunderground rock cavern storage tanks themselves were unharmed, most of
the above-ground maintenance infrastructure was damaged, including
wastewater treatment, power and transformer facilities. The first step in thereconstruction was the restoration of the minimum required freeze-proofing
facilities by the end of October to ensure the sound maintenance of the oil in
the rock cavern storage tanks. Construction work began in April, the monthafter the disaster.
The reconstruction schedule was much tighter than normal because we
had to complete the work in about 7 months, before the onset of the winterfreeze. In addition, we faced many challenges in executing the work, as Japanwas still in a state of confusion due to the unprecedented disaster, andmaterials and manpower in the Tohoku region were in extremely short supply.
At the peak, work was taking place around the clock. Thanks to the tirelessefforts of those involved, we finished connecting the facility to the electric
power network on October 15, and completed the freeze-proofing work at
the end of October.
Reconstruction of the Kuji base has just started. What happens from now
will be critical for the full restoration of the ground facilities. We believe theearly reconstruction of the Kuji base will contribute to the restoration of Japan,
and we will therefore work to reconstruct the facilities as soon as possible tofulfill our social mission as an engineering company.

Group CSR Report 20129

Group Company Activity Highlights
Chiyoda Kosho Co., Ltd. http://www.cks-ykh.co.jp/

Participation in Refinery Panel Discussion Sponsored by Japan Petroleum Institute
On January 20, 2012, the 37th Refinery Panel Discussion sponsored by the Japan Petroleum
Institute was held at the National Olympics Memorial Youth Center in Shibuya-ku, Tokyo.
In the session entitled “Approaches to Fostering a Safety Culture at Refineries,” the safetymeasures of major Japanese oil refiners, and the current status and results of those measures, were
presented based on the idea that safety measures in maintenance work are key to establishing aculture of safety at refineries. Safety managers also gave their thoughts on leading safety activities, aswell as other topics. Mr. Satoru Takanashi, General Manager of the Safety Management Department at
Chiyoda Kosho Co., Ltd., participated as the only panelist from an engineering company, andexplained the Chiyoda Group’s approach to safety.

IT Engineering Limited http://www.ite.co.jp/

MES DAY Seminar
In the laws and regulations for computer systems used in pharmaceutical manufacturing, there is a marked
trend toward clarification of the accountability of pharmaceutical companies and standardization of requirements inJapan, North America and Europe. In view of this, a MES* DAY seminar was held in January 2012 with the themeof “Legal and Regulatory Compliance and the Use of MES Solutions.” A total of 46 people from pharmaceuticalcompanies in Tokyo and Osaka attended the seminar. Through multiple lectures, the event provided an opportunity
for people involved in operation of manufacturing information systems at pharmaceutical plants to exchange ideas.
* Manufacturing Execution Systems: Information systems that manage and monitor the condition of manufacturing operations in factories and provide
instructions and support to workers.

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

Contributing to the ITE Education Sector
Making a valuable contribution to society is the main objective of CSL’s corporate social responsibility
activities. One of these activities is contributing to reforming Singapore’s ITE* curriculum for the future. As
an Engineering Services Academic Advisory Committee member, CSL Director Mr. Tham K Y reviews andcomments on the suitability of the course curriculum to local industries to ensure that it remains relevant
and useful.
* Institute of Technical Education: A post-secondary educational institution established by the Singapore Ministry of Education in 1992.
It consists of three colleges for the purpose of vocational skill acquisition and technical education.
ITE College Central and ITE Headquarters

Chiyoda Keiso Co., Ltd. http://www.ckc.chiyoda.co.jp/

Lecture on “The Ideal Student as Seen from the Front Lines of the Engineering Industry”
On November 17,
2011, a lecture entitled“The Ideal Student as Seenfrom the Front Lines of theEngineering Industry” washeld at the Shonan Campusof Tokai University. Some30 faculty members andstudents from the science department attended the lecture, which was
based on one of the university’s proposals that was adopted in the Fiscal
2010 University Student Career Training Support Program of the Ministry of
Education, Culture, Sports, Science and Technology.

CKC Director Yoshihiro Murashige talked about his experiences working
on the construction of various facilities in 18 countries. The engineering
industry has a strong interdisciplinary character, and he explained to thescience department students that they have the potential to play an activerole as important experts in a wide range of fields. He also explained that
there is a strong tendency for people in this industry to grow into experts
through their jobs, and therefore the ideal student is one who has a strong
willingness to grow, is flexible and has a tremendous thirst for knowledge.
In the question-and-answer session that followed the lecture, theparticipants asked pertinent questions on topics such as how to sharpen thecommunication skills that companies are looking for, and the indicators that
employers use when choosing students.

Chiyoda Malaysia Sdn. Bhd. (CMSB) http://www.chiyoda.com.my/

Japanese Language Lessons for Employees
CMSB gives employees the opportunity to learn Japanese. Classes are held weekly, and students aretaught directly by CMSB’s Japanese technical advisor, Mr. Azumao Kurosawa, while referring to their lesson
materials. The students performed Japanese songs at a company event, proudly displaying the progress
they have made.
10

CHIYODA CORPORATION

Chiyoda Philippines Corporation (CPh) http://www.chiyodaphil.com.ph/Children’s Christmas Party
In December 2011, CPh held a Christmas party for less fortunate children in the nearby
community. With the theme “Give Love This Christmas,” the event was attended by morethan 200 children from Unang Hakbang Foundation, a group that supports children inpoor living conditions, and some from Barangay Addition Hills in Mandaluyong City.
The children enjoyed games and snacks, and their faces really brightened when theyreceived toys, learning materials and other gifts donated by employees. The party was agreat success, and ended with a chorus of “thank you” and big smiles from the children.

Chiyoda Sarawak Sdn. Bhd. (CSSB)

Supporting the Reconstruction with “Ganbaro Japan!” T-shirt
Resident volunteers from the state of Sarawak, Malaysia, where CSSB is located, designed
and produced the “Ganbaro Japan!” T-shirt to support Japan’s recovery from the Great East Japan
Earthquake. Employee volunteers at CSSB donated some of the funds used for producing theT-shirts, and cooperated in the reconstruction support effort by purchasing many of the T-shirts.
The shirts they bought were distributed to all CSSB staff, and all proceeds from the sales were
donated to the Japanese Red Cross Society.

Calendars with Local Appeal Promote Community Interaction
A Sarawak-born female
hammer thrower from the
Malaysian national team wears
the “Ganbaro Japan!” T-shirt
A tag explaining theintent behind the T-shirt

CSSB produced a calendar featuring photographs of local people and scenery taken byamateur photographers in Bintulu, Sarawak. In addition to highlighting the beauty of Bintulu, thecalendars were given to the residents who appeared in the photographs, deepening interaction
with the community and delighting the recipients.

Chiyoda TechnoAce Co., Ltd. http://www.cta.chiyoda.co.jp

Creating a Rewarding Work Environment
At the end of September 2011, Chiyoda TechnoAce moved from an annex building in the Koyasu
Office & Research Park in Yokohama, Kanagawa Prefecture to the main building on the same site.
During the move, among its various management issues, the company focused on those issues
that could be improved by better arranging the office environment, and established an office concept.
The key phrase of the concept was “Walk Work Place: Inducing Proactive Communication.” One floor
was revitalized as a space that facilitates smooth communication between people of different generations. With this and other measures, the company did more than simply move its previous functions to
a new place; instead, it created a design that included various mechanisms in the floor plan to create
spaces that help it make full use of its capabilities.

Chiyoda Almana Engineering LLC (CAEL) http://www.cael.com.qa/

e-Learning Award for Top Private Organization
CAEL won the e-Learning Award for top private organization of 2011 registered on the
Qatar National e-Learning Portal operated by the Supreme Council of Information &Communication Technology (ictQATAR). The award recognized CAEL’s considerable progress in
integrating e-Learning internally and demonstrating exceptional commitment to its
Memorandum of Understanding obligations. The prestigious award was accepted by CAEL
Operations Manager Taku Ito at the Second e-Learning Leaders Annual Event held on February
8, 2012. The award also recognized the efforts of the e-Learning Project Manager andAdministrator in the smooth transition of e-Learning at CAEL. The awards ceremony wascovered in the February 9 edition of the Gulf Times.

Group CSR Report 201211

CSR Vision

1

A Reliable Company
A report explaining our activities in more depth is available on our website. ▼http://www.chiyoda-corp.com/csr/en/okyakusama/
CHIYODA Vision 1

SearchCompletion of Pearl GTL Plant for
Qatar Shell GTL
In Qatar, which is aiming to be a global center for Gas-to-Liquids(GTL) production, Royal Dutch Shell planned the construction of theworld’s largest GTL plant in Ras Laffan Industrial City through its subsidiary
Qatar Shell GTL. The project is one of the industry’s largest investments,
with two trains capable of producing 140,000 barrels a day.
This enormous project was divided into eight units and orders wereawarded to major contractors from around the world. Chiyoda received
an order for a feed gas preparation package. We executed the projectsmoothly and completed it in 2011.
Because the project was divided up, differences arose among
contractor designs and progress of construction for each unit, creating a
number of issues requiring coordination. However, frequent exchanges of
information ensured the smooth execution of the project.
Since the contract went into effect in 2006, an ongoing worldwide
construction boom has led to concerns about rising prices of materials andwhether the project could be completed on time. Chiyoda addressed theseissues with measures such as early establishment of designs and procurement specifications and assessment of the burden on vendor shops.

At the construction site, we also placed top priority on safety for the
more than 8,000 workers who were mobilized each day at the peak ofconstruction. We provided safety education to workers from around theworld in their native languages to reduce lost time incidents. By the time
the project was completed, approximately 70 million working hours had
been logged, but we achieved a record 23.6 million hours without a losttime incident, and met the requirements of Qatar Shell GTL without any
fatal accidents.
Through this project, we not only contributed to the industrial andeconomic development of Qatar, but were also acclaimed for our project
execution capabilities and technologies. As a result, we gained renewedrecognition as a leader in the engineering industry.

Contributing to the Expansion of Renewable Energy
The spread of the feed-in tariff (fixed-price purchases of electricity
from renewable energy sources) scheme, particularly in Europe, has fueled
rapid expansion of demand in the global solar cell market in recent years.
The feed-in tariff scheme also started in Japan in July 2012 amid calls
for the need to supply electricity from renewable energy. Rapid growth isforecast for use of solar cells in applications ranging from private
residences to large solar power generation facilities for industrial use suchas solar parks.

Solar Frontier K.K., established in 2006, has been investing inconstruction of factories to expand the share of its unique CIS* solar
photovoltaic modules in the solar cell market. Chiyoda was commissioned to construct Solar Frontier’s Miyazaki Plant 3 (Kunitomi Plant),
which began production of solar modules in 2011. With annual production capacity of 900MW, this plant is one of the world’s largest single
facilities of its kind, and supplies products not only to Japan but to theentire world.
Chiyoda will leverage the expertise gained from this project and frombuilding other plants to aggressively participate in businesses that
increase use of renewable energy, and thus will contribute to the growthof renewable energy.
* Thin-film solar modules using copper, indium and selenium (CIS). Since they do not use silicon, they are
not affected by material supply shortages, enabling stable supplies of the product.

Solar Frontier K.K. Miyazaki Plant 3 (Kunitomi Plant)

Comments from a Customer
Our sulfolane extraction unit completed in November 2011 had a construction schedule that was threemonths shorter than usual. But Chiyoda was able to complete the engineering and construction according toplan, without any accidents. From the initial engineering stage, the project faced many challenges, including
cost, but the project team maintained a serious and positive attitude, employing many of the ideas we developed with Chiyoda and practicing mutual cooperation in the area of human resources to speed up employee
training and decision-making. As a result, we were able to successfully complete this exceptionally challenging
project. We are extremely pleased, and deeply grateful to Chiyoda.
Mr. Yoshihide Ishida, Manager
Engineering Division, TOA OIL Co., Ltd. Keihin Refinery

12

CHIYODA CORPORATIONCSR Vision

2

Environmental Initiatives
A report explaining our activities in more depth is available on our website. ▼http://www.chiyoda-corp.com/csr/en/kankyo/
CHIYODA Vision 2

SearchCountering Global Warming with Development of Next-Generation Solar Thermal Power Generation Projects
Chiyoda and Archimede Solar Energy (ASE) of Italy, the world’s only
manufacturer of receiver tubes using molten salts as the heat transfer fluidfor parabolic trough solar thermal power plants, have signed a cooperationagreement to jointly develop business opportunities for concentrated solar
power (CSP) plant projects in the Middle East, North Africa and Italy. These
regions are well suited for solar power generation because of their abundant solar radiation.
Parabolic trough solar thermal power generation technology uses
curved mirrors to concentrate sunlight on receiver tubes that heat a heattransfer fluid, producing steam to generate power. Conventional parabolic
trough solar thermal power plants use a synthetic oil as the heat transfer
fluid, which can only be heated up to 400ºC. Seeking a way to generate
power more efficiently, ASE established the technology for manufacturing
receiver tubes that use high-temperature molten salts as the heat transfer
fluid, which enables temperatures of around 550ºC with excellent heatstorage capacity. Besides raising the efficiency of power generation, thistechnology offers the added benefits of simplifying the system andlowering power generation costs because the molten salts serve as boththe heat transfer fluid and the heat storage medium.
By combining ASE’s technology with Chiyoda’s extensive project
management experience in the Middle East, this partnership will help tocounter global warming through collaboration on next-generation solar
thermal power generation projects.

Solar concentrating system of pilot plant in Sicily, Italy

Development of Large-capacity Hydrogen Storage and Transportation Technology
Chiyoda is developing a technology for storage
Hydrogen Storage and Transportation System: Organic Chemical Hydride Method
and transportation of clean hydrogen energy in alarge scale to broaden renewable energy utilization
HydrogenJapan
Transport
production(consuming
and contribute to the realization of a low-carbon(marine and land)(overseas)region)society by reducing CO2 emissions.
CH 3
In this technology, hydrogen is fixed to liquid
toluene with a hydrogenation reaction for easystorage and transportation as liquid methylcycloMCH
MCH
hexane (MCH) at ambient temperature and pressure.
Hydrogenation
Storage
Dehydrogenation
H2
H2
Hydrogen is then generated from MCH with a dehydroplant
tank
plant
genation reaction at the point of use. Toluene is
TOL CH 3
TOL
recovered and used again as a hydrogen carrier.
Chiyoda successfully developed a dehydro• Chemical feedstock
Renewable energy• Industrial gas(natural gas, etc.)
genation catalyst and process, which is a key• Petroleum reﬁning
MCH:
Methylcyclohexane• Fuel cell hybrid
technology of the method. Chiyoda will establish
TOL: Toluene
vehicles, etc.
the technology for a commercial system bydemonstration with a pilot plant of the wholesystem in 2013. It will enable the wide-ranging transport of clean hydrogen energy in large amounts over long distances.

Comments from an Employee“Harmony between energy and environment” has been Chiyoda’s motto ever since the company was
founded, and is also part of the Chiyoda Group Corporate Philosophy and medium-term business plan.
Engineering itself can be considered a type of environmental activity. Therefore, consideration of the environment
in EPC1 operations as a matter of course is firmly rooted in our corporate culture.
As the coordinating office of the Plan-Do-Check-Act (PDCA)-based management system, the SQE2 Risk
Management Unit provides internal support for continuous improvement in operations and for earning customer
satisfaction. In the fiscal year ending March 31, 2013, we began implementing the Health, Safety andEnvironment (HSE) management system, which integrates occupational health and safety with the environment.
Along with our philosophy that safety is a core value, we will continue to provide support in order to further
promote HSE activities in tandem with business operations.
Mr. Eiji Kitahara
Notes: 1. Engineering, procurement and construction of plants and other facilities
SQE Risk Management Unit
2. Safety, quality and environment

Group CSR Report 201213

CSR Vision

3

Social Contributions throughBusiness Activities

A report explaining our activities in more depth is available on our website. ▼http://www.chiyoda-corp.com/csr/en/syakai̲kouken/
CHIYODA Vision 3

SearchVisually Impaired People Invited toJapan Philharmonic Orchestra Concert(Contribution to Communities by Promoting Culture)
On December 26, 2011, Chiyoda invited 46 people in 23 pairs fromthe Yokohama Association of the Blind to a concert of the Japan
Philharmonic Orchestra at Yokohama Minato Mirai Hall.
We received letters of thanks sent by the people invited to the concert and a certificate of appreciation for our company’s activities from the
Yokohama City Council of Social Welfare. One participant wrote, “I could
feel the live music with my whole body. It really moved me.”Presentation of the Certiﬁcate of Appreciation
Mr. Shinichiro Yokomatsu, Managing Director of the
Yokohama City Council of Social Welfare (right) and Mr.
Kazuo Obokata, Senior Vice President in charge of CSR
Unit, Chiyoda Corporation (center)

Rules for Supporting Volunteers Assisting in Reconstruction following the Great East Japan Earthquake(Backup Support for Employee Volunteer Activities)

To supplement the rules of Chiyoda’s existing volunteer leave system,
we established a new support system in July 2011 to back employee volunteer activities for the purpose of assisting in reconstruction following theGreat East Japan Earthquake.
The new system consists mainly of the following:
1. Granting of special paid time off
Special paid time off is granted separately from employees’ regular paid holidays.
2. Coverage of insurance premiums
The Company will pay employees’ volunteer activity insurance premiums.

3. Material aid
The Company will supply masks, helmets and other items necessary forvolunteer activities.

Eleven people used the system in fiscal 2011 for a total of 29 days.
In 2011, in addition to the Great East Japan Earthquake, torrential
rains caused serious disasters in Wakayama Prefecture and other places.
Responding to employees’ wishes to participate in disaster relief volunteer
activities, we broadened the support system to include disasters other thanthe Great East Japan Earthquake.

Participation in University Career Fair Event in Local Community
As one of its activities to serve the local community, Chiyoda Almana Engineering LLC (CAEL) participated in
the Texas A&M University 5th Career Fair Event in Doha, Qatar on February 15, 2012.
On the day of the event, interview sessions were held with students who were interested in CAEL’s
business. Over 40 students applied and 7 were selected for the company’s internship program.
Through this community activity, CAEL helped to support the growth and skill development of students in Qatar.

Supporting the CSR Activities of
Chiyoda Philippines Corporation (CPh)In the Philippines, a CSR bill has been submitted to the Senate for debate.
Anticipating the passage of the bill into law, Chiyoda Philippines Corporation (CPh)has assigned a person to handle CSR issues full-time, and is making appropriate preparations. In September 2011, the person in charge of the CSR Unit of Chiyoda
Corporation visited CPh to hold a CSR meeting for managers and to exchange opinions with the person in charge of CSR.

Other Activities at Domestic Chiyoda Group Companies
in the Fiscal Year Ended March 31, 2012
Cooperation with university education (instructor dispatch):

7 people

Corporate training of teachers:

10 people

Training of interns:

30 people

TABLE FOR TWO:

Total of 2,257 meals

Cleanup campaigns:

Held three times with a total of 179 participantsComments from a Director
The Engineering Symposium held in November 2011 had the theme of “Creation from Reconstruction” following
the Great East Japan Earthquake. I was appointed executive chairman of the symposium, and in the course of planningthe details, I felt it was necessary to see conditions in the disaster area first-hand, so I took part in a three-day volunteer program in Ishinomaki, Miyagi Prefecture in September.
Work was divided up into making weights for fish farm rafts, clearing mud out of the gutters of the fishing port, and cutting grass and cleaning for farm households. I felt that these activities conveyed the desire of volunteers to help the peopleof the region. The motivation for participating in volunteer activities varies from person to person, but participating is what is
important. The Chiyoda Group also wants to provide backup support for employees, and will therefore create systems that
promote participation in volunteer activities and support programs that enable employees to participate in groups.
Mr. Shogo Shibuya
Senior Vice President

14

CHIYODA CORPORATION4

CSR Vision

Respect for Human Rights
A report explaining our activities in more depth is available on our website. ▼http://www.chiyoda-corp.com/csr/en/kakawari/
CHIYODA Vision 4

SearchCreating Pleasant Work Environments
At Chiyoda Malaysia Sdn. Bhd. (CMSB), employees are divided into
teams to play beach soccer, water polo, netball, volleyball and othergames. These tournaments are a way of strengthening employee bonds
and also help to maintain health and enhance teamwork.

Beach soccer

Establishing a Safety Culture
Organization governance
1.30
0
1.20

Motivation

1.10

Commitment

1.0
.00
00
1.00
0.90
0 80
0.8
0.80

Resource
allocation

Communication

0.7
0
70
7
0
0.70

Work
practice

Awareness
Petroleum industry
average
ChiyodaLearning & Training

Professor Kenichi Takano of the Research Department of Keio
University Graduate School of System Design and Management gave
Chiyoda a safety culture diagnosis, based on the eight parameters of safety
culture he advocates: organization governance, commitment, communication, awareness, learning & training, work practice, resource allocation andmotivation. The results of the diagnosis, which was based on surveys ofsupervisors and foremen at eight Chiyoda project sites in Japan, clarified
strengths and weaknesses in the Company’s safety management.
We plan to carry out improvement measures for the weaknesses thatwere identified, and further enhance our strengths as we build a maturesafety culture throughout the Chiyoda Group.

Results of the safety culture diagnosis

Human Resource Development System
Chiyoda Philippines Corporation (CPh) conducts a 1-to-1.5-monthinternship program as part of its contribution to society. This program
offers broad opportunities for students in the Philippines to dedicate
themselves to studying as engineers, and is intended to help them build astrong network for the future. Some 15 to 30 students from various universities in the Philippines participate in the program each year.

Students in the internship program

Comments from an Employee
I joined Chiyoda Almana Engineering LLC (CAEL) in October 2010 as Public and Government Relations
Officer in the Business Department. My main responsibilities include obtaining business visas, work visas andresidence permits for employees, extending business visas for CAEL visitors, and renewing documents related tothe company register.
CAEL is a rewarding company to work for. We have seen many changes during the past two years, but withencouragement, motivation and flexibility, you will be able to grow positively through your work no matter
what job or career you are moving into.
I received the Superstar Award for the first quarter of 2012. This award is part of CAEL’s compensation andrewards program to recognize work and employees who have produced the best results, and is given to the person with the best job performance in the Business Operations team. I was really moved to receive this award. It
has further motivated me to deliver better results.

CAEL Chairman Madoka Koda (left) andMr. Ahmed Ibrahim (right)

Mr. Ahmed Ibrahim
Public Relations Officer, Business Department
Chiyoda Almana Engineering LLC

Group CSR Report 201215

CSR Vision

５

Commitment to Fairness
A report explaining our activities in more depth is available on our website. ▼http://www.chiyoda-corp.com/csr/en/compliance/
CHIYODA Vision 5

SearchCompliance Initiatives
Chiyoda works to ensure thorough compliance by staying up to dateon the requirements of the relevant authorities, customers and otherstakeholders with respect to rules and regulations governing business execution, including information security and export control. We also reflect
those requirements in our business processes. As part of these efforts, wehave included “strengthening collaboration with field offices and Group
companies in Japan and overseas,” “implementation and enhancement ofcontinuing compliance education and audits,” and “thorough information
management” in our priority management objectives. Main initiatives in
the fiscal year ended March 31, 2012 were as follows:(1) Promotion of awareness at domestic and overseas Group companies
and compliance checks (including patrols at domestic and overseas
construction sites)(2) Lecture by an outside specialist on prohibition of bribery of foreign public
officials: added UK Bribery Act (came into force in July 2011) to Unfair
Competition Prevention Act of Japan and U.S. Foreign Corrupt Practices Act(3) Revision of internal audit questionnaire concerning the Construction BusinessAct of Japan (addition of items related to elimination of anti-social forces)(4) Continuation of Information Security Check Months (February, September),internal audits, and Group training(5) Maintenance of Chiyoda’s ISO 27001 certification, and increase in the numberof Group companies with certification• Group companies that newly acquired certification:
1) Chiyoda Almana Engineering LLC (CAEL), in January 2012
2) Chiyoda Singapore (Pte) Limited (CSL), in May 2012

In addition, as part of the eco-office activities we have conducted since
the fiscal year ended March 31, 2011, we launched a campaign to reduce
paper use by 30 percent when we moved to the new office in June 2012.
This will not only benefit the environment, but will also contribute to morethorough information management. We plan to continue this effort together
with reorganization and reduction of electronic files.
We are also taking various measures to manage information security
risk in the new office, including a rigorous entry and exit control systemthat uses the latest IC card technology.

Information security training• In the external audit for certification maintenance, the lead auditor noted that
“employee awareness of information security is well established” at Chiyoda.
ISO 27001 certiﬁcation (CAEL, CSL)

Training Conducted by Chiyoda Corporation in the Fiscal Year Ended March 31, 2012
Export Control

Compliance
Co
Compliance e-Learning
2,900 participants
M
Manager compliance training
111 participantsEx
Executive officer compliance training
28 participantsCo
Compliance training at overseas Group companies
3 locations
Co
Construction industry law workshop
63 participants
W
Workshop on Subcontract Act and Anti-Monopoly Law
73 participantsFo
Foreign corrupt practices prevention workshop
37 participantsCo
Consultation and Reporting Hotline staff training
20 participantsPr
Pre-assignment training for site managers of field offices
25 times, 39 participantsCo
Companywide notifications(about prevention of sexual harassment)
1 timeCo
Companywide notifications (about laws and regulations)
2 timesCompanywideCo
notifications(export control official notices)
4 timesEx
Exportcontrol general training 7 times, 211 participants
Ex
Exportcontrol coordinator training
5 participants

IInformation Security
InformationIn
security e-Learning 1 time, 880 participants
In
Information
security training
2 times, 162 participantsCo
Companywide
notifications(Information Security Check Months)
2 times

CSR Training
C
CSR
CS training for new employees
101 participants
CS training for mid-career hires 4 times, 41 participants
CSR
CS training for clerical experts
CSR
4 participants

Consultation and Reporting Hotline staff training

Reports to the Consultation andReporting Hotline
Reports related to workplace improvements
Reports related to compliance with workplace rules
Requests for reminders
Other

Comments from an Employee
As a consultation hotline, we provide advice to project managers on evaluating export control from theperspectives of both cargo and technology to prevent illegal exports, while reminding them to prepare the related
documentation. The combined number of consultations on inquiries and contracted projects in the fiscal year
ended March 31, 2012 was about 80. As one of our recent initiatives to educate employees, the Export Control
Section sponsored training based on length of service to impart general knowledge on export controls and basic
knowledge of Chiyoda’s export control system. I feel that the necessity of export controls is becoming recognizedacross the Company.
Mr. Misao Tateno, Export Control Coordinator
Cost Estimation, Project Management Unit

16

CHIYODA CORPORATION

9
5
1
1

Third-Party Opinion
The Chiyoda Group receives third-party opinions from experts to raise the objectivity of its
CSR Report and identify its specific CSR issues. These opinions will serve as reference for futurereports and help guide CSR initiatives.

In its CSR Policy, the Chiyoda Group maintains the belief of its founder that we are now at
the point where corporations are expected to be socially responsible, and if they do notcontribute to the welfare of society, or have its trust, their very existence is at risk.* This
foresight is eye-opening. Today, when the word “sustainability” is presented to us more
seriously, it is worthwhile to reconfirm the meaning of “the welfare of society” and “the trustof society.” In Japan, stable supplies of energy and resources for petrochemicals have been
the cornerstone of economic development. Engineering and constructing plants for gas
treatment, LNG production, petroleum refining, chemical production and other industries has
certainly served the national interest. However, the declining population and consolidation ofdomestic industries have created an opportunity to redefine “the welfare of society” in Japan.
Moreover, the Great East Japan Earthquake and nuclear power plant accident are calling into
question what it is to be “a company trusted by society.”
The Chiyoda Group’s activities are no longer confined to Japan. Opportunities to engineer
and construct plants and facilities in developing countries are likely to continue growing, andresource nationalism is sure to increase. The question of whether exports of natural resourcesand energy are in the country’s long-term interest, even if they are creating wealth at the
moment, will be constantly raised.
The Chiyoda Group’s thoughts on “the welfare of society” and “the trust of society” inJapan and how it will address the rise of resource nationalism overseas are essential aspectsof its CSR initiatives.
I therefore took an interest in the descriptions of research and development for a
low-carbon society and hydrogen energy economy and promotion of renewable energy. In
particular, I think solar thermal power is an area in which Japanese companies can leverage
their strengths. I expect the Chiyoda Group to be a global leader in this sector.
On the other hand, the description of the Chiyoda Group’s contributions to the regions
where its plants are located could be expanded significantly. Community involvement anddevelopment includes promotion of education and culture, job creation, technology transfer
and improvement of sanitary conditions. This section should also include paying due attention
to the human rights of local residents and avoidance of corruption.
As a role of sustainability group, a plant engineering company in the United States raises“addressing international standards of conduct working with indigenous peoples,” “designing
programs that deliver training and skills that enable local workers to prepare for employment
opportunities beyond construction,” “designing programs that help local suppliers andcontractors,” and “engaging local communities in partnerships that represent both projectand public interests.”
While I understand that similar efforts exist in Chiyoda Group projects, Chiyoda shouldreport more specific cases. Disclosure by plant engineering companies up to now has notnecessarily been sufficient because of relationships with clients and others. However, I
believe that leading such disclosure is the way to truly become “a trusted company” athome and abroad.

Eiichiro AdachiCounselor
Head of ESG Research Center
The Japan Research Institute, Limited
After graduating from Hitotsubashi
University in 1986, Mr. Adachi joined theJapan Research Institute, Limited (JRI) in
1990. Currently Counselor and Head of
ESG Research Center at JRI, he previously
served in the Management Strategy
Research Department and Technology
Research Department. He specializes inindustrial research and corporate
assessment from the standpoint of CSR.
He also serves as Director of the Mitsubishi
Corporation Disaster Relief Foundationand has co-authored numerous Japanesepublications, notably CSR Management
and SRI (Kinzai, 2004), Businesses That
Grow with Global Warming (Toyo Keizai
Inc., 2007) and Introduction toEnvironmental Management (Nikkei
Publishing Inc., 2009)* Please see the “Commitment to CSR” section of the Chiyoda Corporation website.

http://www.chiyoda-corp.com/csr/en/torikumi/index.html

Group CSR Report 201217

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, 2012)
Domestic Group Companies
Chiyoda Kosho Co., Ltd.
Engineering, construction and maintenance of various
industrial machinery and equipment; insurance agent

Chiyoda Keiso Co., Ltd.1
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 Philippines Corporation (Philippines)
L&T-Chiyoda Limited (India)

Chiyoda Advanced Solutions Corporation 2
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 1
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

1. Chiyoda Keiso Co., Ltd. and IT Engineering Limited will merge on October 1, 2012 under the name Chiyoda System Technologies Corporation.
2. Chiyoda Corporation will assume the business operations of Chiyoda Advanced Solutions Corporation through an absorption-type merger of the two companies on October 1, 2012.

Recognition by SRI (Socially
Responsible Investment) evaluation
bodies as a company fulfilling
CSR standards(As of August 2012)

Minatomirai Grand Central Tower
4-6-2, Minatomirai, Nishi-ku, Yokohama 220-8765, Japan
Please direct inquiries about this CSR Report to:
CSR Unit Tel: (81) 45-225-7741 Fax: (81) 45-225-7962
E-mail: csr@ykh.chiyoda.co.jp

Selected in FTSE Group’s responsible
investment index

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