CHIYODA CORPORATIONGroup CSR Report
2013
Fiscal Year Ended March 31, 2013

Corporate Profile
C h i y o d a Corporation i s a n integrated
engineering company engaged in the designand construction of plants and facilities
around the world. The Chiyoda Group strives
to contribute to the sustainable developmentof society while promoting harmony between
energy and the environment.

Consolidated Financial Highlights (Billions of yen)
New Orders

Revenues

612.5

Net Income

446.4

16.1
398.9

429.4

14.4

313.0

402.9

247.1 254.7
8.0

209.4

6.5

235.3

(As of March 31, 2013)

Name:

Chiyoda Corporation

Address:

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

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

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

Domestic: 7
Overseas: 12

Number ofGroup Employees:

4,915

URL:

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

3.0’09 ’10 ’11 ’12 ’13’09 ’10 ’11 ’12 ’13’09 ’10 ’11 ’12 ’13(Fiscal years ended March 31)

Revenues by Industry

Revenues by Region(Fiscal year ended March 31, 2013)(Fiscal year ended March 31, 2013)

5%
LNG Plants

11%
32%
33%
19%

Gas & Power Utilities

38%

Fine Industries &Industrial Machinery

Domestic

Petroleum & Petrochemicals

62%
Overseas

Environment & Others

On the Cover
In line with the start of our new medium-term
management plan, “Seize the moment, Openup new frontiers,” the cover illustration
expresses our commitment to cultivating adiverse workforce and sharing work globally, as
well as our corporate philosophy of harmony
between energy and the environment. (Seepages 4-5.)

Contents
Corporate Profile...................................... Inside front cover

The Chiyoda Group’s CSR Vision in Action

Editorial Policy ....................................................................1

CSR Vision ❶ A Reliable Company .......................... 12

The Chiyoda Group’s CSR ....................................................2

CSR Vision ❷ Environmental Initiatives .................. 13

Message from the President ...............................................4
Stakeholder Dialogue
Sharing Value through Sustained Communication .......6
FeatureContributing to the Growth of Renewable Energy .......8Group Company Activity Highlights .................................10

CSR Vision ❸ Social Contributions throughBusiness Activities............................ 14

CSR Vision ❹ Respect for Human Rights ................ 15
CSR Vision ❺ Commitment to Fairness ................... 16
Third-Party Opinion ...........................................................17

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

Composition of the CSR Report

The diagram below shows the differentiation of the content reported on
the website and the CSR Report. On our website we present basic corporate social responsibility (CSR)
The Chiyoda Group’s
information and activities for each
CSR activities
CSR Vision to facilitate the underWebsite
standing of visitors to the site.
Detailed reporting
In addition, business andfinancial information is available
CSR Reportin the publications listed below.
Reporting withThis CSR Report highlights activities in the fiscal year ended
March 31, 2013.
This year, in addition to the corporate profile, message
from the president, a summary of activities for each CSR Vision,
Chiyoda Group company activity highlights, and a feature titled“Contributing to the Growth of Renewable Energy,” we present “Stakeholder Dialogue: Sharing Value through Sustained
Communication,” in which people from outside the Company
discuss their expectations for the Chiyoda Group. We also
include the third-party opinion of Mr. Eiichiro Adachi, an expert
in CSR, who offers an objective assessment of our initiatives
and suggestions for improvement.

a focus on highlightsof activities in themost recent
fiscal year

Scope of the Report

Shareholders’ Report(Japanese only)

An annual report that all joint-stockcompanies in Japan are required toprepare under the Companies Act. It is
sent to shareholders by mail. We also
issue an interim report for the first halfof the fiscal year (April – September).

Applicable Period and Date of Publication
Applicable Period: Fiscal year ended March 31, 2013
(April 1, 2012 to March 31, 2013)

Prepared in English for shareholders
and investors outside Japan. It includes
the consolidated financial statements,
which are published separately.

Annual Report

Fact Book

The report encompasses the CSR activities of 20 Chiyoda Group
companies (Chiyoda Corporation and 19 major Group companies),
unless otherwise specified.

A collection of data necessary forinvestment analysis, including various
financial and management indicatorsand long-term historical data, as wellas graphs and charts.

The publications above, along with reports to the Tokyo Stock
Exchange (in Japanese only), press releases and other information, areavailable for download on the Chiyoda website.
http://www.chiyoda-corp.com/ir/en/library/index.html
CHIYODA IR Library

SearchCorporate governance information is available at
http://www.chiyoda-corp.com/company/en/corporate-governance.html
CHIYODA Corporate GovernanceSearchDate of Publication: August 2013

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

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 comments using theform provided.

Group CSR Report 2013

1

The Chiyoda Group’s CSR
Our Mission

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.

Our Values

Chiyoda Group CSR Visions
As an integrated engineering company, the Chiyoda Grouppledges 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.

1
2

Compliance with International
Guidelines
ISO 26000
Core Subjects

UN Global Compact

Consumer(customer) issues

̶The environment

Principle 7: Businesses should support a precautionary
approach to environmental challenges;
Principle 8: undertake initiatives to promote greater
environmental responsibility; andPrinciple 9: encourage the development and diffusion ofenvironmentally friendly technologies.

Community
involvement anddevelopment

̶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

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

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 andcharacter of employees are respected, where people are motivated to
do their best, and of which employees and their families are proud.

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

Human rights
Labor practices

Organizational
governanceFair operating
practices

Principle 1: Businesses should support and respect the protectionof internationally proclaimed human rights; andPrinciple 2: make sure that they are not complicit inhuman rights abuses.
Principle 3: Businesses should uphold the freedom of
association and the effective recognition of
the right to collective bargaining;
Principle 4: the elimination of all forms of forced andcompulsory labour;
Principle 5: the effective abolition of child labour; andPrinciple 6: the elimination of discrimination in respect of
employment and occupation.

Principle 10: Businesses should work against
corruption in all its forms, including
extortion and bribery.

Basis of Our Actions
Code of Conductof the Chiyoda Group

2

CHIYODA CORPORATIONParticipation in the UN Global Compact
In November 2012, the Chiyoda Group became a signatory of the United Nations Global Compact(UNGC), a global code for CSR. Chiyoda is the first company in the construction industry in Japan,
including major engineering companies, to endorse and support the UNGC. Together with approximately 11,500 companies and organizations (as of June 2013) from more than 140 countries,
Chiyoda will further strengthen its CSR activities to contribute to a sustainable society, in linewith the Ten Principles of the UNGC on human rights, labor, the environment and anti-corruption.

Action Policies

Actions in the Fiscal Year Ended March 31, 2013

• 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• Share our CSR principles with suppliers and otherbusiness 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• 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• 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

Concrete
Initiatives

PP. 8, 9, 12

PP. 8,9,13

PP. 6,7,14• Creation of pleasant work environments• Establishment and enforcement of a safety culture• Enhancement of human resource development system

P. 15• Stronger collaboration with Group companies andbusiness partners• Thorough information security• Enhancement of awareness of export controls

P. 16

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 20133

Message from the President

In our pursuit of harmony between
energy and the environment, we
will seize the moment and open up
new frontiers to contribute to thedevelopment of a sustainable world.

The Chiyoda Group’s Corporate Social
Responsibility (CSR)
Since its founding 65 years ago, the Chiyoda Group has worked
to contribute to the advancement of society with the aim ofrealizing its corporate philosophy centered on “Energy andEnvironment in Harmony.” As an engineering company, we build
infrastructure that requires state-of-the-art technologies invarious countries.
The energy industry has recently undergone structural changes
such as the shift to natural gas and renewable energy. Rapidchanges have also taken place in the industry environment,
notably the shale revolution that has revitalized the North
American market. The demands of society are becoming morediverse as well.
In this context, I believe the Chiyoda Group’s corporate social
responsibility is to accurately assess current demands and deploy
engineering to provide the value that society requires for addressing
global challenges such as poverty, environmental issues andsecuring resources, consistent with our Corporate Philosophy.

4

CHIYODA CORPORATION

Seize the Moment and Open Up New
Frontiers to Transform into an Engineering
Company Ready for the Future
The Chiyoda Group has formulated a new Medium-Term
Management Plan under the slogan “Seize the moment,
Open up new frontiers.” In developing the new plan, we
analyzed the changes and trends in the external environment,
established a vision of the Chiyoda Group 10 years on, andformulated an action plan to achieve that vision.
We have defined our vision of the Chiyoda Group 10
years from now as a corporate group that has 1) diversified
into new business areas and enhanced the satisfaction of
stakeholders; 2) deepened its contribution to local communities in emerging and developing countries; and 3) establishedan operational framework for managing work globally, while
maintaining our traditional engineering contractor business at
the core.
Our growth strategy will be to expand our core business inthe fields of gas and liquefied natural gas (LNG) projects whilebuilding our global presence in offshore, upstream, new energy,
renewable energy and public infrastructure projects. At thesame time, we will accelerate business investments in fields
where we can take advantage of the Group’s strengths.
To build the Group structure necessary for achieving thisgrowth strategy, we intend to develop and promote diverse
human resources regardless of nationality, gender, age orother characteristics, and evolve into a company that offers
an attractive working environment in which all employees canrealize their potential. In support of that objective, we established the Crisis Management Unit in April 2013 as a dedicatedorganization to enhance the safety and security of employees
and everyone involved in our work as the top priority in ourbusiness operations.

Direction of Evolution
Further evolve through business growthon the three axes of Operation, Business
Model and Business Fields/Regions
Shift from operation by Japanese nationals in Japanto the global management of work by strategic
regional operation centers.

Sustained Growth and Reinforcing
Our Reputation for Reliability
In November 2012, the Chiyoda Group joined the United
Nations Global Compact (UNGC*), the first company to do soin the Japanese construction industry, including major engineering contractors. Our objective in joining the UNGC is toadvance our CSR efforts on a global basis and firmly establish
CSR as a unifying force of the Chiyoda Group. We will alignthe Chiyoda Group CSR Vision with the Ten Principles of the
UNGC to further raise awareness of CSR among all Group
employees and ensure that it is reflected in their behavior. In
addition, we will continue to support the recovery from theGreat East Japan Earthquake through our businesses and by
supporting employee volunteers in the affected areas.
Sustained communication with our various stakeholders isthe foundation of our business activities. My personal
approach is to engage our partners in an open and considerate dialogue with a friendly smile and attitude of respect. I
believe that is the first step in practicing the Chiyoda Group’s
CSR. We will continue our CSR initiatives with the aim of reinforcing the Chiyoda Group’s reputation for reliability.
* The UNGC is a voluntary global initiative that encourages businesses to act as good corporate
citizens and achieve sustainable growth by exercising responsible, creative leadership. It iscentered on ten principles concerning human rights, labor, the environment and anti-corruption.

Operation

August 2013

Business
Model

Current
Business
DomainBusiness
Fields/Regions
Shogo Shibuya
President & CEO

Expand from engineering,procurement andconstruction (EPC)
solutions to include
investment in businesses
where we can leverage
our project management
and technologicalstrengths.

Expand pillars of businessfrom onshore gas, oil,chemical and resource
projects and gas value
chain projects to offshore,
upstream, new energy,
renewable energy and public
infrastructure projects, anddiversify into new regions.

Chiyoda Corporation

Group CSR Report 2013

5

Stakeholder Dialogue

Introducing Participating Members① Ryo Shibata② Seiji Murakami③ Yoko Murakami

Local coordinator: Industrial Growth Platform, Inc.
Nagahora Genki Village Executive Office

Chiyoda Corporation volunteers④ Yoshiyasu Ito
Mechanical Engineering Unit
⑤ Noriko Shimizu
Gas & LNG Project Operations⑥ Akira Tsuruoka
Mechanical Engineering Unit
⑦ Yuko Nakamura
Finance & Project Audit Unit
⑧ Osamu Hirohata Technology Development Unit
⑨ Shodai Watanabe IT Management Unit
⑩ Makoto Watanabe CSR Unit

⑤

⑧

⑩

⑦

⑥

④

①

②

③

⑨

Sharing Value throughSustained Communication
The Chiyoda Group maintains ongoing exchanges with the people affected by the Great East Japan Earthquake of March2011 through its volunteer recovery support activities. We hope to use these exchanges to draw a roadmap to theregion’s revitalization by going beyond a relationship of supporter and the supported through mutual encouragement
and understanding.
Recovery Support Volunteer Efforts
The Chiyoda Group dispatched its first group of
25 employee volunteers to the region in
November 2012 based on the results of a survey of employees conducted one year after thedisaster, when post-disaster cleanup work andrestoration undertaken by Chiyoda had slowed
down. They carried out volunteer activities atthree evacuation sites in Iwate Prefecture. Oneof these sites was a temporary housing compound called Nagahora Genki1 Village.
In many instances, communities were broken
up by the move to temporary housing. At Genki
Village, however, a conscious decision was madeto keep the community together and maintainneighborhood relationships as they were prior to
the disaster. Chiyoda maintains regular contact
with the village through the Yubeshi-no-Kai,2 anin-house organization that Chiyoda employees
launched after the visit.

On-Site Discussion Meeting
In May 2013, seven of the 35 Chiyoda employees who visited Genki Village met with members of Nadeshiko-Kai (whose members act as
guides for visitors and volunteers and organize
yubeshi-making and other symbolic activities
for community rebuilding) for the first time insix months. At that time, they spoke with Mr.
Ryo Shibata of Industrial Growth Platform, Inc.,
which provides on-site management assistancein Iwate and Fukushima prefectures in partnership with reconstruction support volunteers,and engaged in a discussion with Mr. Seiji
Murakami and Ms. Yoko Murakami of the
Genki Village Executive Office.

Nadeshiko-Kai Members

LeaderYaeko Toba

Guide
Eiko Toba

Rinko Murakami

Sachiko Kaneno

Kiyoko Kikawada

Notes: 1. Japanese for “vigor”
2. The Yubeshi-no-Kai maintains sustained communication with the local community in ways such as regularly ordering
yubeshi (sweet citron-flavored steamed dumplings) from the Nadeshiko-Kai and selling them in-house.

6

CHIYODA CORPORATION

Volunteer Work to Support
Reconstruction
Shibata (moderator): How do the people in
Genki Village feel about the same company
regularly visiting and maintaining contact? In
Chiyoda’s case, they place orders for yubeshi
with you regularly.
S. Murakami: Rebuilding our homes is themain goal that we all share. But we sometimes
feel depressed and overwhelmed when we
think about the daunting road to reaching that
goal. When people from the same company visit
us repeatedly, we are pleased to offer themhospitality. Even though the visits are short,each one is a special event that gives us a senseof fulfillment and confidence, which helps us
believe that we can achieve our main goal.
Shibata: So, just having people from outside
come to interact with you is an event thatenergizes the community.
S. Murakami: Yes. Because our goal is so large,
doggedly persisting until we achieve it can bementally draining. In a way, it is important toenjoy the process of trial-and-error on smaller
projects. I hope that people in the village think
so. The Executive Office has established relationships with the people at Chiyoda thatallow us to freely discuss anything. We do notthink of you as guests.

M. Watanabe: We conducted a survey of thevolunteers sent last November. Many of themwondered if their activities in Genki Village
were really supporting people; instead, theysaid they were energized by the hospitality
they were shown. I feel that the interaction
with you encouraged the volunteers. That wasan unexpected result.
Ito: I also participated last year. At first, I was
all fired up to go and help out with the reconstruction. Instead, I felt like I was being
catered to. I wondered if that was okay. In theend, I realized that it seemed to be making
everyone happy.
Shibata: Chiyoda was about the third group to
visit Genki Village since the program began.
Moreover, it was the first group accepted froma large organization. I think the success of thisvisit gave the village confidence and led you tolater accept regular exchanges with Harvard
Business School and with other companies.
S. Murakami: I totally agree. Even though I
was absent during Chiyoda’s November visit, it
was a success, which gave the entire village
confidence, and was a boost to the program.

Yubeshi-no-Kai
Shibata: Was the existence of the Yubeshi-noKai significant?
Y. Murakami: Everyone appreciates the visits.
We are really thankful for having to make the
yubeshi every month. Everyone looks forward
to it, although we’re afraid people at
Chiyoda’s headquarters might get tired of themonthly yubeshi shipments.
Nakamura: Your customer base is rapidly
growing.
Hirohata: There are many employees who missout because the yubeshi sell out so fast. Don’t
worry, there is plenty of demand!
S. Murakami: Is that right? I noticed you
brought some new members along this time
too. Rather than visiting us just once, you are

Funakoshi
Bay

Otsuchi(Oraga Otsuchi
Yumehiroba)(Kirikirikoku)

Tono City
Iwate
tecturrePrefecture

KamaishiBay

KamaishiLine

Mt. Goyo

Ofunato City

continuing your support and expanding thenumber of participants. I am impressed.
Shimizu: My boss said, “I can’t go to volunteer,
so I’ll buy a lot.” Which he did, and gave themout to everyone. Some of the volunteers whocame this time are here because of that.
Hirohata: I think we were able to create thisactivity because we were moved by the closesocial bonds of Genki Village, and felt like wewanted to help them in some way.
Tsuruoka: Chiyoda is a unique company. It has
more than a thousand employees at its head
office, but if one person brings up a suggestion like “Let’s organize Yubeshi-no-Kai,” others will join regardless of their age, position or
department. It becomes a unified movement.
We are a company that values personal interchange, and maybe the fact that people havevarious connections within the company
makes it easy for us to act.
S. Watanabe: On the same topic, when I joined
the company, I was impressed that there wereso many people who were leaders in various
capacities before they came to Chiyoda.
People who have been leaders know very well
how hard leadership is, so when someone
suggests doing something, they give them lotsof support.

Continuing Activities
Shibata: Mr. Murakami, these visits by volunteers have also given rise to exchange programs as a type of community business, which
is vital to the region’s recovery.

340

Kamaishi
City

Kamaishi City
(Kamaishi Regional Forest
Cooperative)(United Green)

Mt. Hikami

Rikuzentakata City

Rikuzentakata City
(Nagahora Genki Village)

45

Regions where Chiyoda has conducted volunteer activities

S. Murakami: I wonder if it might lead to tourism in the future. I would also like to consider
a kind of Nagahora-style tourism that evolves
from accepting volunteers.
Shibata: Are there any goals within sight thatyou would like to pursue with Chiyoda? Whatkind of relationship would you like to havewith Chiyoda going forward?
S. Murakami: I would like to talk not justabout reconstruction support, but about the
future of the whole village of Nagahora, where
the number of young people is gradually
declining. One of my tasks will be to figure out
how to create a more vibrant environment in
the countryside so that people will want tostay here.
In that sense, sending yubeshi to Chiyoda
each month has become a core activity ofNadeshiko-Kai. Making the yubeshi on thisregular schedule has given us a foundation tohandle orders we might receive from otherplaces as well. I think this kind of support isvery helpful. We also would like to fulfill otherpeople’s wishes somehow, because it motivates us to keep trying. I will continue to value
our relationship with Chiyoda.
Shibata: Thank you all for your participation today.

Being impressed with the activities of Genki Village motivated us.
I went to the region affected by the Great East Japan Earthquake and tsunami for the first time in November 2012. The
scene as I approached the area was different from the images I had seen on television. In our business, we often say that“It’s not enough just to look at drawings; you have to go to the actual site.” So I felt it was important to go to the regionand see it myself. Yubeshi-no-Kai was launched because we were so impressed with what the people of Genki Village
were doing and wanted to maintain the relationship with them even after we returned to Tokyo. Fortunately, many
employees supported the idea. We are now selling around 500 pieces of yubeshi a month, which is amazing.
Employees who are unable to visit the region due to their busy schedules are also buying the yubeshi,
which gives them a sense of participation, too. I would like the people of Genki Village to come to ourcompany and meet their yubeshi fans in person. We are currently planning such an opportunity.
Masao Ishikawa
Vice President, Deputy Division Director, Technology & Engineering Division

Group CSR Report 20137

Feature

Contributing to the Growthof Renewable Energy
As an established leader in energy-related technologies andengineering, the Chiyoda Group is broadening its businessrange to the field of renewable energy and expanding its
business in new technologies to contribute further to stablesupplies of clean energy.
The Chiyoda Group conducts its business with a corporate philosophy
centered on “Energy and Environment in Harmony.” Chiyoda has been
fulfilling this philosophy since the 1970s by using technology development
and engineering for both stable energy supply and environmental protection.
The environmental technologies we have developed include flue gas desul-

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

furization, wastewater treatment and heavy oil cracking. Recently, in
response to public demand, we have been steadily expanding our activities
in the area of new energy. This includes using solar photovoltaic, solar thermal,
geothermal, biomass and other types of renewable energy, creating a hydrogen supply chain with technology for storage and transport of large quantities of hydrogen, and developing Gas to Liquids (GTL)-related technology.*
In particular, in the field of solar energy the Chiyoda Group is leveraging its
expertise in plant construction to contribute to the expansion of solar power
generation through plant engineering, procurement and construction (EPC)
services that meet diverse customer demands, from production plants forsolar panel materials and panel products to the construction of large-scale
mega solar power plants.
This feature details the Chiyoda Group’s aggressive expansion into concentrated solar power (CSP), a new type of solar energy.

EPC Work for Large-Scale Photovoltaic
Chiyoda completed construction of the INPEX Mega
Solar Joetsu project, its third large solar power generation EPC project, in March 2013. The Chiyoda
Group’s engineering expertise and capabilities were
instrumental in winning the contract for this project,which is located in Niigata Prefecture, a region ofheavy snowfall.
We installed photovoltaic panels with a capacityof 2.3MW on a 46,710m 2 site owned by INPEX
Logistics (Japan) Co., Ltd., a subsidiary of INPEX*Technology for producing liquid fuel from natural gas

Strengthening Presence in Concentrated
Chiyoda is also focusing on developing business inthe field of concentrated solar power (CSP). In
October 2012, Chiyoda acquired a 15 percent equity
stake in Italian company Archimede Solar Energy(ASE). The two companies had previously signed acooperation agreement in June 2011 to develop business in Molten Salt Parabolic Trough Concentrated
Solar Power (MSPT-CSP), a next-generation solar
power generation technology.
ASE is the world’s only manufacturer of thereceiver tubes that are a core technology of MSPTCSP systems. Chiyoda and ASE have been working
together in the construction and operation of aplant to demonstrate this technology. In January
Completed demonstration plant in Italy

8

CHIYODA CORPORATION

Construction of One of World’s Largest Solar Photovoltaic Module Plants
Amid calls for the supply of electric power from renew-

which began production of solar modules in 2011.

able energy sources, in July 2012 a system wasWith annual production capacity of 900MW, Miyazakilaunched in Japan that obliges electric utilities to pur-Plant 3 is the world’s largest thin-film CIS solar photovoltaic

chase electricity generated from such sources at a fixed

module plant and one of the largest single facilities of

price. The use of solar cells is growing rapidly in appli-

its kind. It supplies modules globally.

cations ranging from private residences to mega solar

Chiyoda will contribute to the growth of renewableenergy by leveraging the expertise it has gained from thispower generation facilities for industrial use.
Established in 2006, Solar Frontier K.K. has been

project and from building other plants to aggressively par-investing in construction of factories to expand the shareticipate in businesses that are expected to increase use ofof its unique CIS* solar photovoltaic modules in the solar

such energy.

cell market. Chiyoda was commissioned to construct
Solar Frontier’s Miyazaki Plant 3 (Kunitomi Plant),* Thin-film solar modules using copper, indium and selenium (CIS). Since they use
less silicon than crystal silicon-based solar modules, they require fewer materials,
thus enabling stable supplies of the product.

Generation System in “Snow Country”
CORPORATION. Power generation began in March
2013, and all electricity generated is sold to Tohoku
Electric Power Co., Inc. The system’s annual output
is expected to be equivalent to the annual power
demand of 750 average households.
Chiyoda is contributing to the stable supply ofclean energy through the EPC services it provided
for this large-scale solar power generation system
under harsh conditions.
Completed mega solar facilities

Mega Solar Construction Projects

Solar Power Business

ClientSolar Frontier K.K.

2013, Italy implemented a system under which

Operatingelectric utilities are obliged to purchase electricity
generated from renewable energy sources at a
fixed price. Expectations that this new system
would accelerate the expansion of the MSPT-CSP
business led Chiyoda to invest in ASE. The invest-

EPC work inprogressment in ASE, which specializes in this industry andbusiness, positions Chiyoda to develop the CSP business while expanding EPC orders and sales of ASE’s
receiver tubes.
CSP business opportunities in Italy will provide aPower generation
capacity

MiyazakiNiigata
Yamagata
Miyazaki
Mie
Mie
Hokkaido
ToyamaFukuoka
IbarakiFukui
Miyazaki
Yamaguchi

2.0MW
2.3MW
1.8MW
2.4MW
5.2MW
2.5MW
2.4MW
2.5MW
2.6MW
2.5MW
2.6MW
8.8MW
10.4MW**Power output of 8.19MW

Mega Solar Project Investments
Chiyoda established ENESHIIDO NOK K.K., a solar power joint venture, with a wholly owned
subsidiary of Saibu Gas Co., Ltd. in July 2012.

foothold for expansion of this business in the Middle

ClientEast and North Africa. In this way, Chiyoda will contribute even more to the supply of clean energy.

INPEX CORPORATIONAIKAWA PRESS INDUSTRY Co., LTD.
SHOWA SHELL SEKIYU K.K.
Sanko Real Estate Co., Ltd.
Sanko Real Estate Co., Ltd.
Japan Petroleum Exploration Co., Ltd.
OR Solar Co., Ltd.
LM Sun Power Co., Ltd.
LM Sun Power Co., Ltd.
LM Sun Power Co., Ltd.
LM Sun Power Co., Ltd.
Seibu Oil Company Limited.

Project location(Prefecture)

OperatingOmuta solar power plant
Nagasaki solar power plant
Kitakyushu solar power plant

Project location(Prefecture)

Power generation
capacity

Fukuoka
NagasakiFukuoka

1.3MW
0.6MW
1.8MW

Group CSR Report 20139

Group Company Activity Highlights
Chiyoda Malaysia Sdn. Bhd. (CMSB) http://www.chiyoda.com.my/
Charity Work in Asrama Damai
The CMSB Recreation Club organizes charity activities for an orphanage in Asrama Damai, Kuang, Selangor.
This program began with the collection of used clothes, books and toys from our staff members. We have also
donated a number of necessary items such as washing machines, irons and stationery.
On November 10, 2012, we held a charity event at the orphanage. The meaningful half-day event featured
some simple outdoor games with the orphans and ended with a prize-giving ceremony and lunch attended
by Asrama Damai residents and CMSB members.

Chiyoda Singapore (Pte) Limited (CSL) http://www.chiyoda.com.sg/
Nursing Home Visit
An important part of our CSR program at CSL is organizing events to assist the community. On October 25,
2012, a group of CSL employees visited Saint Joseph’s Home & Hospice and took part in the event “Feeding
the Elderly/Destitute of Saint Joseph’s Home,” which was organized by the Chiyoda Recreation Club of CSL.
CSL staff members visited the facility and assisted the residents by helping them with their meals and taking them for walks in the garden. Participating staff members also presented funds raised by CSL employees tothe administration team of Saint Joseph’s Home.

Chiyoda Kosho Co., Ltd. (CKS) http://www.cks-ykh.co.jp/
Resolution to Eradicate Safety & Quality Problems
The senior management of CKS has traditionally begun each year with a New Year address to employees outlining management’s priorities and expectations for the coming year. At the start of 2013, CKS President Yoshiji Kenmotsu took a different
approach by declaring his “Resolution to Eradicate Safety & Quality Problems.” This stemmed from management’s judgmentthat eradicating problems related to safety and quality is absolutely vital for CKS to reliably perform its role in the Chiyoda
Group’s global operations as a maintenance engineering specialist, in addition to the particular requirements of shut down
maintenance (SDM). The resolution was summarized in three points for execution based on the causes of problems in the past:
1) Maintain good communication to pick up on problems and customer needs, and follow up quickly.
2) Share a “crisis consciousness” among supervisors and personnel engaged in tasks as well as among all executives.
3) Carry out routine work with alertness and a sense of mission.

Chiyoda Philippines Corporation (CPh) http://chiyodaphil.com.ph/
Activities for a Greener Community
Tree planting is an aspect of habitat conservation and falls under one of the Chiyoda Group’s CSR visions,“Environmental Initiatives.” CPh once again made an effort to promote environmental conservation by organizing a tree planting activity under the theme “Let’s Plant Trees and Promote a Greener Community.”
The event was held on September 8, 2012 at Pintong Bukawe, San Mateo Rizal in Manila. A total of 77
CPh employee volunteers planted 500 saplings (rambutan, yakal, molave and kamagong). Tree planting is agreat challenge that CPh gladly accepts to continuously support its CSR vision.

General Waste Reduction Campaign
A healthy and clean working environment is one of CPh’s aspirations for its environmental conservation
initiatives.
On May 10, 2012, CPh launched the General Waste Reduction Campaign, which aims to promote in every
employee a greater commitment to preserving the environment by monitoring the volume of waste generated
in the company and providing feedback to employees. This campaign also encourages employees to reduce,reuse and recycle and aims for a more sustainable environment for future generations.

10

CHIYODA CORPORATION

Chiyoda U-Tech Co., Ltd. http://www.utc-yokohama.com/
International Contribution through Environmental and Human Resource
Development Programs
At Chiyoda U-Tech, we conduct many activities internationally as part of our consulting business, mainly throughthe Japan International Cooperation Agency (JICA).
In the field of water treatment, an integral part of the public infrastructure, Chiyoda U-Tech has cooperated in preparatory surveys and detailed engineering
for water supply system improvement projects in Paraguay since the fiscal year ended March 31, 2011 in its support work for Kyowa Engineering Consultants
Co., Ltd. In the fiscal year ended March 31, 2012, we performed surveys in Vietnam, Indonesia and the Philippines with the Japan Consulting Institute and thethen Chiyoda Advanced Solutions Corporation toward the deployment of Japan’s earthquake-proofing technology overseas. In the fiscal year ending March 31,
2014, we plan to team up with Kyowa Engineering Consultants to conduct a similar survey in the city of Coronel Oviedo, Paraguay.
In addition, we are cooperating in student training (a government-subsidized international cooperation program of the Japan Cooperation Center,
Petroleum initiated by Chiyoda in 1976) at King Fahd University of Petroleum and Minerals in Saudi Arabia. This program helps foster good relations
between Saudi Arabia and Japan. Six students were accepted for training in 2012, and we plan to continue the program this year.

Chiyoda Almana Engineering LLC (Chiyoda Almana) http://www.chiyoda-almana.com/
Iftar Party 2012 Held
In Islam, Ramadan (the month of fasting) is a holy month of daily fasting between sunrise and sunset. Iftar is theevening meal that breaks the fast after sunset, and is typically celebrated with family and friends. To foster unity
among its employees and to show respect for Ramadan, Chiyoda Almana invites all employees once a year toshare in an Iftar dinner. In 2012, this dinner was held at the Marriott Hotel in Doha on August 15, where senior
management thanked all employees for their contributions to the company.

Chiyoda (Thailand) Limited (CTL)
Portion of Material Storage Site at BV Project Opened to Local Residents
At the Byproducts Value Added (BV) Project currently under construction in the Map Ta Phut Industrial Estate in eastern Thailand,
Chiyoda (Thailand) Limited is conducting its typical CSR activities of cleaning up neighborhood streets and drainage ditches. But we havealso gone a step further with a unique approach of opening a section of the material storage site to temporary food stand operators.
While enriching the diets of the approximately 2,000 workers, this initiative also helps to recycle money back into the community.
A cafeteria is available at the project site, but we believe that the wider range of meal options contributes to a better working environment.
Sanitation and safety were given full consideration when the site was made available, and we conduct weekly inspections tocheck the safety of the facilities and cooking utensils. Project members have also gained customer understanding by responsibly disposing of food waste after meals.

L&T-Chiyoda Limited (LTC) http://www.lntchiyoda.com/
Uttrayan – The Kite Festival
L&T-Chiyoda Limited (LTC) celebrated Uttrayan, the kite festival, on January 10, 2013. Uttrayan is one of India’s
major traditional national festivals, and is held every year around this time in LTC’s home state of Gujarat to celebrate the imminent arrival of spring.
This year, all employees dressed up in colorful new clothes and congregated on a rooftop to fly kites and enjoy
a variety of regional foods like undhiyu and jalebi. Competitions and prizes added to the fun of this festive event.

Chiyoda System Technologies Corporation (CST) http://www.cst.chiyoda.co.jp/
CST World Café
CST was created on October 1, 2012 by the merger of two Chiyoda Group companies. This was a merger between companies
in two different industries, with different organizational cultures, business structures and ways of working. The new company
needed to leverage the synergies of the two former companies and evolve toward a new era. With that in mind, CST organized
the World Café* to unify employees by overcoming their differences. Five sessions have been held so far, and while many people were meeting each other for the first time, a lively exchange of ideas has taken place at each session.
*The World Café is a concept originated by Juanita Brown and David Isaacs in 1995. It is a discussion technique based on the idea that knowledge andwisdom are not born in functional meeting rooms, but emerge in café-like spaces where people can converse freely.

Group CSR Report 201311

1
CSR Vision

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

SearchA Reliable Company

Technology Exchange with Business Partners
North America CT-121 Users Group Conference
Chiyoda has been licensing the Chiyoda Thoroughbred 121 (CT-121) Flue Gas
Desulfurization (FGD) Process, its core environmental technology, to North
American electric power companies to help them comply with tighter sulfur dioxide regulations that went into effect in 2010. Currently, CT-121 FGD plants areoperating smoothly in 29 power plants, equivalent to 18,700MW of capacity.
The North American CT-121 Group Users Conference has been held annually since 2006 forthe purpose of promoting technology exchange with users in North America. As the technology
licensor, Chiyoda provides advice to user companies on any operating problems or other issues
they may have. The 8th Annual Users Group Conference was held in Columbus, Ohio in August
2012, and intensive technical discussions were held among the approximately 40 attendees, including members of Chiyoda, its licensee Black & Veatch Corporation, representatives from North
American users American Electric Power, Southern Company Services, Dayton Power & Light andPower South, and for the first time, a company from Denmark, DONG Energy.

Georgia Power Co. (United States)
Plant Bowen Unit 3, CT-121 FGD Plant

ChAS Forum 2012: Plant Maintenance in a Changing Social Environment
In October 2012, Chiyoda Advanced Solutions Corporation (ChAS) merged with Chiyoda and made a new start as ChAS Project Operations.
ChAS Project Operations will continue to hold the ChAS Forum, which took place before the merger, for the purpose of communicating with people outside the Company. In 2012, the event was held in the Chiyoda Global Headquarters lecture hall under the theme “Plant Maintenance in a Changing Social
Environment.” Clients showed strong interest in the forum, which attracted over 200 participants, including representatives from more than 30 businesses
and organizations and Chiyoda Group companies.
Two oil companies that are major business partners, university professors, and Chiyoda
Corporation staff presented lectures on topics such as “Business Innovation and Strategy,”“Safe Operation from the Perspective of Accident Prevention,” and “The Advanced
Technology Supporting Plant Operation and Maintenance Management.” A lively exchangeof ideas followed the lectures.
Feedback from the forum questionnaire was positive. The forum helped share
Chiyoda’s Project Lifecycle Engineering* concept for providing appropriate and comprehensive solutions in each phase of client projects.
* A business model, involving both Chiyoda and the client, for the management of a project throughout its lifecycle
including feasibility studies, front-end engineering and design (FEED), detailed engineering, procurement andconstruction (EPC), operation, maintenance, expansion, modification, upgrading, revamping and demolition.

Then President & CEO Takashi Kubota (present Executive Chairman) delivers aspeech at the opening of the forum.

Pharma Seminar 2013: Exchanging Ideas with Pharmaceutical Manufacturers
The pharmaceutical industry faces various challenges in meeting today’s demands. In recent years, biopharmaceuticals have been a focus of attention,
particularly therapeutic antibodies. Biopharmaceutical production methods are progressing in step with advances in biotechnology, and approaches tomanufacturing have changed rapidly in just the last two to three years.
Against this backdrop, Chiyoda’s Pharmaceutical Project Section held Pharma
Seminar 2013 together with Group company Chiyoda TechnoAce Co., Ltd. Representatives
from Jacobs Consultancy Inc., a leading U.S. engineering firm and Chiyoda technical information services partner, also participated in the seminar, which focused on the latest
trends in biotechnology. In addition to the presentation of case studies from the Chiyoda
Group, which has over 50 years of experience in executing pharmaceutical plant designand construction projects, and Jacobs, which carries out projects globally for major pharmaceutical companies, the seminar featured a lecture on the latest approaches in biopharmaceutical production facilities. The seminar took place at two venues in Yokohama
and Toyama, and was attended by approximately 150 people, mainly from pharmaceuticalcompanies, who engaged in a productive exchange of ideas.
The seminar held in Toyama on February 28, 2013
12

CHIYODA CORPORATION2
CSR Vision

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

SearchEnvironmental Initiativess

SPERA HydrogenTM
Hydrogen is a clean energy that produces water when it combusts. As such, it is expected toplay a key role in the low-carbon society of the future. Chiyoda has developed the world’s first
technology that enables the storage and transportation of large quantities of hydrogen energy.
Using this technology, hydrogen is fixed to liquid toluene with a hydrogenation reaction as liquid methylcyclohexane (MCH). Since toluene and MCH are in the liquid state under ambient
temperature and pressure, it is easy to store hydrogen in large quantities over long periods
without loss using ordinary tanks and transport with conventional chemical tankers for long
distances without the cryogenic technology that liquefied natural gas and liquid hydrogenrequire. A test run conducted at a demonstration plant located in Chiyoda’s Koyasu Office &Research Park in Yokohama verified the technology’s expected performance.
Chiyoda is now working to create a large-scale hydrogen storage and transportation
system to supply large amounts of clean hydrogen energy to users around the world under thename SPERA HydrogenTM (the “Hydrogen of Hope”).

The hydrogenation and dehydrogenation reactors (above) andstorage tanks (below)

ACETICA (Acetic Acid Production Process)Three-phase bubble column loop reactor

Chiyoda developed the new green production process* ACETICA, and has worked to promote its
use. In 2012, Chiyoda signed a license agreement for this process with Petrobras of Brazil.
In ACETICA, the rhodium complex, a commonly used catalyst in methanol carbonylation, wasfixed on a carrier developed by Chiyoda. The process was made complete by developing an optimal
reactor (a three-phase bubble column loop reactor) that utilizes the characteristics of the fixed catalyst.
Fixing the catalyst to the carrier eliminates the need to separate the catalyst from the reaction
product because the catalyst is contained in the reactor. Moreover, the process precludes the discharge of the environmentally harmful substances in the catalyst, and essentially eliminates loss ofthe expensive catalyst.

Unreacted gas (to recovery process)* A production process that minimizes impact on the environment

Reaction liquid(to separation andrefining process)Down-comer

Carbonmonoxide
MethanolHeat exchanger
Catalyst (solid) +reaction liquid
Carbon monoxide (gas)Liquid recycled frompurification system

Shuttle Ship Transport and Offshore Injection System for CCS
Carbon dioxide (CO2) capture and storage (CCS) is a technology used toseparate and recover CO2 from the flue gases of thermal power plants andother facilities, then ship it to a storage site, and inject it under the seabed.
It is one of the most powerful methods for global warming mitigation.
Three modes of transport – pipeline, ship and truck – are currently being
developed and studied as transport methods in CCS.
Shuttle ship transport and offshore injection is a new ship-based CCS
system. Using grants received over two years from the Global CCS Institute(GCCSI) established by the Government of Australia, Chiyoda verified technical and economic feasibility of the system with technical guidance from
Professor Masahiko Ozaki of the University of Tokyo, who originated theconcept. In this system, a medium-sized (3,000-ton capacity) shuttle ship
is used to transport liquefied CO2 to an unmanned, offshore storage site.
The liquefied CO2 is injected directly into the bore hole through a flexible
riser pipe. The advantages of the system include its functionality over longer distances and in deeper water than pipeline transport, its adaptability
to changes in shipping volume and distance, and its ability to function
with smaller onshore and offshore facilities than larger ships. Chiyoda isdeveloping an integrated CCS system, incorporating the separation andrecovery method, for contributing to global warming mitigation.
Note : A report on the shuttle ship transport and offshore injection system is available on the GCCSI website:
http://www.globalccsinstitute.com/publications

The shuttle ship and offshore injection system for CCS
Pick up buoy
Pick up float

Messenger line

Flexible pipe
SinkerPick up wireGroup CSR Report 201313

3

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

CSR Vision

SearchSocial Contributions through Business Activities

LNG Project in Papua New Guinea Employs Local Workers
A Chiyoda-led joint venture is currently building an LNG plant near Port Moresby in Papua New
Guinea for ExxonMobil.
The project is expected to have a significant beneficial impact on the country’s economy.
Surrounding the LNG plant are four villages. The project employs more than 2,000 people fromthese villages and is actively engaged in training the local workers to improve their skills.

Environmental Class Launched at Junior High Schools
Chiyoda has conducted environmental classes primarily forelementary school students since 2006, with emphasis on
the importance of conserving water and other resources.
On February 21, 2013, we extended the program tojunior high schools with an environmental class for approximately 120 first-year students at Imai Junior High School in
Kawasaki. Through an experiment in which they madewater clean using filter paper and activated carbon, the students learned that water, a finite
resource, is being used in massive amounts, and they gained a greater appreciation of the importance of water. As of March 31, 2013, the cumulative number of students participating in theenvironmental classes had exceeded 1,700.

Other Activities by Chiyoda Group Companies in the Fiscal Year
Ended March 31, 2013
Cooperation with university education(dispatch of instructors)

7 people

Corporate training of teachers

12 people

Training of interns

34 people

Environmental classes

406 people

TABLE FOR TWO

Ongoing

Cleanup campaigns

9 people

Disaster area support

48 people

Regional contribution activities

7 people

Visually Impaired People Invited to Japan
Philharmonic Orchestra Concert

In-House Sale of Goods Made by
Challenged People

Continuing a program begun in 2011, Chiyoda invited 56 people in 28 pairs fromthe Yokohama Blind Association to a concert of the Japan Philharmonic Orchestra
at Yokohama Minato Mirai Hall on December 27, 2012.
We received a certificate of appreciation for our activities from the Yokohama
City Council of Social Welfare. The Managing Director of the Yokohama Blind
Association and one other person attended the presentation ceremony on behalf of
those invited. “It was a superb performance,” said the managing director. “Livemusic is different from CDs and other media
because you can hear the full range of soundswith your whole body. I want to express our heartfelt thanks for this opportunity.”

On March 12, 2013, a sale of cookies and handicrafts made atcommunity workshops by challenged people took place at
Chiyoda Global Headquarters in cooperation with the Yokohama
City Council of Social Welfare. The confectioneries sold out
quickly, with rave reviews for the taste of the baked goods
and the designs of
the small handicrafts.
Proceeds from thesales helped support
the people who madethe items. Chiyoda
plans to hold this eventon a regular basis.

Presentation of the Certificate of Appreciation
Ms. Hiroe Haga, Managing Director of the Yokohama City Councilof Social Welfare (center) and Mr. Kazuo Obokata, then Senior Vice
President in charge of CSR Unit (present Senior Advisor, right)

Comments from a Stakeholder
I first met with Chiyoda Corporation in October 2011, about six months before the headquarters moved to Minatomirai in
Yokohama, to coordinate recipients of the tickets to the Japan Philharmonic Orchestra concert that Chiyoda had offered to
donate. After hearing of Chiyoda’s interest in conducting social contribution activities with roots in the local community, I
proposed several other ideas. Those ideas have since been implemented, including the in-house sale of goods made atcommunity workshops by challenged people and participation in social contribution events in the Minatomirai district. I think
the speed with which Chiyoda acted is a sign of the company’s commitment to giving back to the community and of the highlevel of awareness among its employees. As a consultation office for corporate social contribution activities, the Yokohama
City Council of Social Welfare looks forward to continued cooperation with Chiyoda.
Ichiro KatoManager, Civic Activity Service Section, Community Service Department
Yokohama City Council of Social Welfare

14

CHIYODA CORPORATION4
CSR Vision

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

SearchRespect for Human Rights

Chiyoda Family Day
On August 24, 2012, family members of Chiyoda Group employees gathered for “Chiyoda Family Day,” which was held at Chiyoda Global
Headquarters. The purpose of the event was to promote closer family ties
and encourage and motivate employees by helping their family members
gain a better understanding of the nature of Chiyoda’s business and work
environment.
A total of 158 members of 76 families attended the event, which got
off to a lively start. The program was conducted in both Japanese andEnglish for the benefit of non-Japanese family members.
The first part of the program was an audio visual introduction of
Chiyoda, followed by participation in the project process through a simulated project based on the making of paper airplanes. This mock project
was an enjoyable learning experience, especially for the children.
The second part of the program centered on an activity corner run by
the PR & Recreation Section of Chiyoda Labor Union. Family members
interacted with a scale model of a plant, viewed an actual construction
site on Google Earth and tried on overalls and a harness like the ones
worn onsite.

Finally, participants had the opportunity to see the offices where theirfamily members worked. The visit to the offices was an interesting experience for family members and employees alike, with children exchanging
their handmade business cards with employees acting as their coworkers,
and other amusing experiences.
We will continue to plan and implement programs that help tostrengthen relationships with the community and between families, motivate employees and enhance the sense of unity within the company.

OHSAS 18001 Certification of Occupational
Health and Safety Management System

Expansion of ISO 14001 Environmental
Management System Certification

Since the fiscal year ended March 31, 2004,
Chiyoda has been implementing a self-regulated
occupational health and safety management system
based on OHSAS 18001. In February 2013, Chiyoda
underwent an audit by a certifying body to obtain athird-party evaluation of the system and received
OHSAS 18001 certification.

Along with the acquisition of OHSAS 18001 certification, Chiyoda underwent an audit to expand thescope of its existing ISO 14001 certification. As aresult, overseas projects were added to the scope of
certification.

OHSAS 18001
certification

ISO 14001 certification

Career Guidance Program
An information session on career guidance was provided at L&T-Chiyoda Limited in India on April 19, 2013.
A senior faculty member from the Department of Mechanical Engineering, L&T IT, spoke on career opportunities in engineering. The session was well received by parents and children, who felt it gave them good guidance and direction for their prospective careers.

Comments from an Executive
Reflecting its commitment to fairness, Chiyoda Singapore (Pte) Limited
was awarded a Certificate of Commendation for outstanding commitment and contributions to strong labor-management relations by
Singapore Industrial & Services Employees’ Union (SISEU).
Management and staff were pleased and honored to be recognized.
The certificate was presented by guest of honor Mrs. Josephine Teo,
Minister of State, during SISEU’s annual dinner & dance on November 9,2012. The event was attended by top management from various
multinational corporations.

Mr. Hikaru Morita
Managing Director
Chiyoda Singapore (Pte.) Limited(Back row, third from left in photo above and second from right in photo at right)

Group CSR Report 201315

5

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

CSR Vision

SearchCommitment to Fairness

Compliance Initiatives■ Enhancing Collaboration with Field Offices andGroup Companies in Japan and Overseas
In addition to compliance training at overseas Group companies, Chiyoda
has incorporated compliance briefings into the meetings of Group company
presidents to directly familiarize those responsible for each site withcompliance issues. Moreover, with our participation in the United Nations
Global Compact we issued the third edition of the CSR Handbook, whichcontains the Code of Conduct and other guidelines, and distributed it to
all employees of the Chiyoda Group.

■ Ongoing Compliance Training and Audits

In response to the rising global anti-corruption movement in the UnitedStates, the United Kingdom
and other coun t r i e s,
Chiyoda has taken steps toeradicate careless mistakes,
strengthen mutual checks
and balances and further
increase transparency.
Meeting with an executive at an overseas Group company■ Ensuring Information Security

Meeting of Chiyoda Group company presidents

CSR Handbook (3rd edition)■ Developments in the Supply Chain

Our efforts to ensure compliance go beyond the Chiyoda Group. We also
involve our business partners, including equipment and material suppliers
and the partners we work with in construction projects. As part of ourefforts to share the importance of compliance, including CSR, we distributed the CSR Handbook to business partners at the annual
meeting. In addition, we revised
our standard contract terms byinserting a clause on eliminationof anti-social forces.
Annual meeting of business partners

Chiyoda established a department specializing in information security in
2001. We have since worked to make sure that all employees understandthat as a plant engineering company, we deal with important technicalinformation of clients not only in Japan but around the world. We also provide education on compliance with information security rules and conductongoing compliance monitoring.
■ Raising Awareness of Export Control

Chiyoda has established and implements an export control system in linewith the goals of international security for prevention of terrorism,
regional conflicts and proliferation of weapons of mass destruction. As
part of that system, Chiyoda seeks to raise the awareness of all
employees by providing both general training on the basics of export control and ongoing industry-specific training that explains export control
work in greater detail.

Training Conducted by Chiyoda Corporation in the Fiscal Year Ended March 31, 2013
CSR Training

ComplianceManagerM
compliance training
Ex
Executive
officer compliance training
Co
Compliancebriefings at the meeting ofGrGroup company presidents
Co
Compliancetraining at overseas
GrGroup
companies
Co
Constructionindustry law workshop
Su
Subcontract
Act workshop
Fo
Foreigncorrupt practices prevention
w
workshopCo
Consultation
and Reporting
Ho
Hotlinestaff training

95 participants
22 participants
1 time4 locations
37 participants
54 participants
45 participants
13 participantsPr
Pre-assignment
training for sitemmanagers of field offices
Co
Companywide directive(a(about prevention of sexual harassment)

22 locations

CSR training for new employees
CSR training for mid-career hires

85 participants
1 time, 14 participants

1 timeExport Control
Companywide directives (export control directives) 4 times
Co
Ex
Exportcontrol general training
4 times, 82 participants
Ex
Exportcontrol specific training
1 time, 32 participants

IInformationf
Security
Information security e-Learning
1 time, 366 participants
Information security training
4 times, 461 participantsCompanywide directives (various reminders)
15 times

Reports to the Consultation and Reporting Hotline
Re
Reports
related to workplace improvements
Re
Reports related to compliance with workplace rules
Re
Requests for reminders
Ot
Other

Comments from an Employee
The Consultation andd Reporting Hotline is designed to facilitate the early discovery and correction or prevention of illegal orunethical conduct. Th
The
he hotline is available to everyone involved in our business. I handle contacts from women on workplace
relations issues, and my discussions with them have made me keenly aware of the importance of everyday communication in
the workplace. I try to make people feel at ease when talking about their concerns, but I will continue to improve myapproach so that issu
issuesues can be quickly dealt with and resolved through consultation before they become serious.
Hiromi Sugawa
HRM Unit
ReportingConsultation and Rep
porting Hotline Staff

16

CHIYODA CORPORATION

5
3
1
4

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

In reviewing this report, I focused first on the Message from the President. The reason is that the vision thatPresident Shibuya outlined for the Chiyoda Group 10 years from now – a group that has diversified into
new business areas, deepened its contribution to local communities in emerging and developing countries,and established an operational framework for managing work globally – is closely related to CSR.
The engineering and construction of mega solar power plants, investment in concentrated solar
power generation and the development of SPERA HydrogenTM technology that enables hydrogenstorage and transportation in large quantities are examples of how the Chiyoda Group’s businesses
are directly helping to address social issues such as resource depletion and climate change due toEiichiro Adachi
greenhouse gases. These activities can be considered “strategic CSR.”
Counselor
Head of ESG Research CenterOn the other hand, there could be an increase in cases where the Chiyoda Group is involved in
The Japan Research Institute,engineering, construction and maintenance of LNG or other plants located in regions of higher
Limitedenvironmental and social risk. Chiyoda will need to give more careful consideration to safety and theAfter graduating from Hitotsubashi
University in 1986, Mr. Adachi joined
environment as it moves into upstream areas such as oil and gas field development surveys and other
the Japan Research Institute, Limited
services. In infrastructure projects such as airport construction in developing countries, Chiyoda will
(JRI) in 1990. Currently Counselor andHead of ESG Research Center at JRI,
have to pay careful attention to the possible impact of large-scale land alterations on the natural
he previously served in theenvironment and nearby residents. It is imperative to strengthen “defensive CSR” by being dulyManagement Strategy Research
Department and Technology Researchaware of any negative impacts and taking countermeasures.
Department. He specializes inindustrial research and corporate
Moreover, contributing to local communities in emerging and developing countries must include
assessment from the standpoint ofconsideration for the rights of people in communities surrounding project sites and creation of steady
CSR. He also serves as Director of the
Mitsubishi Corporation Disaster Relief
employment opportunities for them, in addition to the typical charitable activities and events. Efforts inFoundation and has co-authoredthe name of “secure stable supplies of natural resources” may be met with a mixed reception amid
numerous Japanese publications,notably CSR Management and SRI
rising resource nationalism. I expect Chiyoda to study and practice “CSR that leads to genuine(Kinzai, 2004), Businesses That Grow
community development” through dialogue with stakeholders. Furthermore, I believe that the Chiyoda
with Global Warming (Toyo Keizai Inc.,
2007) and Introduction toGroup’s establishment of an operational framework for managing work globally hinges on the extent toEnvironmental Management (Nikkei
Publishing Inc., 2009).
which its management is able to embrace diversity. This is strongly linked with “CSR in labor practices.”
The April 2013 establishment of the Crisis Management Unit was another point in the report thatcaught my attention. I would like to suggest Chiyoda flesh out the various aspects of defensive CSR,
CSR that leads to genuine community development and CSR in labor practices in greater depth on its
website and in other media. Also, while joining the United Nations Global Compact in November
2012 was a major step forward during the past year,
as a member, the company is obliged to prepare andsubmit a Communication on Progress (COP) every
year. Assuming that this report is a COP, I would alsosuggest adding more mention of the rights of people
other than employees on the “Respect for Human
Rights” vision page and anti-corruption measures on
the “Commitment to Fairness” page.
I expect Chiyoda to continue its steady andconsistent efforts to provide engineering-based
solutions to global issues such as poverty, theenvironment and the securing of resources, and tobuild on sustained communication with stakeholders.
Mr. Adachi inspecting Chiyoda’s SPERA Hydrogen demonstration plant
TM

Group CSR Report 201317

We consolidate Group strengths in our business operations.

Major Group Companies (As of March 31, 2013)
Domestic Group Companies
Chiyoda System Technologies Corporation
Engineering, procurement, construction and maintenance of electrical andinstrumentation, and of social infrastructures. Consulting, development andoperation for integrated IT systems

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

Overseas Group Companies

Chiyoda TechnoAce Co., Ltd.

Industrial Machinery and Equipment Engineering andConstruction, Etc.

Consulting, design, procurement, construction and test operation services forpharmaceutical and other fine chemical plants, and various types ofresearch facilities

Chiyoda Philippines Corporation (Philippines)
L&T-Chiyoda Limited (India)
Chiyoda Singapore (Pte) Limited (Singapore)
Chiyoda-CCC Engineering (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)

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

Arrowhead International Corporation
Travel agent, air cargo and materials export services, etc.

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

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 2013)

Selected in FTSE Group’s responsible
investment index

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

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) 45-225-7224
E-mail: csr@ykh.chiyoda.co.jp

Printed with mineral oil-free, non-VOC ink using a waterless process on paper made with wood fromforest thinning to support sound forest management.

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