CHIYODA GROUP

Sustainability Report 2019

Overseas Subsidiaries and Offices & Major Domestic Group Companies

Corporate Profile (as of March 31, 2019)
Company Name

Chiyoda Corporation

Number of Employees

6,137 people (Consolidated)

Established

January 20, 1948

Main Business Fields

Engineering and Construction

Paid-in Capital

43,396 million yen

Main Offices

Chiyoda Global Headquarters (CGH)
Koyasu Office & Research Park

Chiyoda’s Global Network (Major Overseas Subsidiaries and Offices)■ Engineering Center■ Procurement Center■Milan Representative Office■Abu Dhabi Office

The Netherlands

Revenues

Net Income (Losses)

Revenues by Region (FY2018)

Korea■ Overseas

35.2%

6,115 6,037

64.8%

110

■ Domestic

5,109

4,810

China

Saudi Arabia
India

Qatar UAE

■Chiyoda Petrostar Ltd.

Myanmar
Doha Office

64

3,518
3,012

4%

34

8%

14%
55%

-411
2014 2015 201620172018 (FY)2014 2015 20162017 2018 (FY)

-2,1492014 2015 2016 2017 2018 (FY)18%
1%

■ Gas Development/
Processing/Receiving■ Applicable Period: FY2018■ Group Companies Covered by the Report(April 1, 2018 to March 31, 2019, unless otherwise specified)

The scope of this report extends to all Chiyoda Group companies.
The names of Group companies are given in an abbreviated form in
the report. Regarding those abbreviations, please refer to thedetails below.

■ Website
Sustainability
Chiyoda Group Sustainability■ Website
Corporate Governance Policy

Comprehensive
reporting on the website

https://www.chiyodacorp.com/
181227_GCPE.pdf

Sustainability
Report
FY2018 activity
highlights

Chiyoda Kosho Co., Ltd. (CKS)
Chiyoda System Technologies Corporation (CST)
Chiyoda International Corporation (CIC)
L&T-Chiyoda Limited (LTC)
Chiyoda Philippines Corporation (CPh)Chiyoda & Public Works Co., Ltd. (CPW)
Chiyoda Oceania Pty. Ltd. (COPL)
Chiyoda Almana Engineering LLC (Chiyoda-Almana)■ Date of Publication: November 2019

Reference
Annual Report
Annual reports focused primarily on
financial information are publishedin English for shareholders andi n v e s to r s o v e r s e a s . T h e y a l s ointroduce major topics relating to
CSR activities.

Reference
Chiyoda Group CSR Handbook
This Handbook is a compilation of the‘C o r p o r a te P h i l o s o p hy,’ ‘B u s i n e s s
Vision,’ ‘CSR Values,’ ‘Code of Conduct,’‘C o m p l i a n c e M a n u a l ( E m p l o y e e’s
Practical Guide),’ and other such basic
policies of the Chiyoda Group. It is madepublic on the Group website and is also
widely known among employees
through the internal education.

■■Chiyoda International

Corporation■Chiyoda Philippines Corporation■PT. Chiyoda International Indonesia

Australia

Limitada■Chiyoda Oceania Pty. Ltd.

■Chiyoda Human Resources International (Pte.)Limited■Chiyoda Singapore (Pte.) Limited■ Environment/New Energy/
Infrastructure

The Chiyoda Group provides comprehensive reporting on its CSR activities, including detailed information presented on the Chiyoda
Corporation website.
In addition, the Group has published this digest version of the Group’s FY2018 report, highlighting the latest activities.
The contents of these reports are elaborated and compiled from the perspective of the Chiyoda Group Corporate Philosophy and CSR
Values in collaboration with the members of the Group Liaison Meeting on CSR and those responsible for CSR in Group companies inJapan and overseas. For further details, including particulars on governance, please refer also to the below websites and other sources.

CHIYODA GROUP Sustainability Report 2019■■Chiyoda Mozambique■ Pharmaceuticals/
Biochemistry/Chemicals■ CSR Activity Report Policy

USA■Beijing Office■Chiyoda Corporation(Shanghai)■L&T-Chiyoda Limited

Mozambique■ Refinery/Petrochemical/
MetalsPhilippines

Indonesia

Engineering LLC■ LNG Plants■Chiyoda Malaysia Sdn. Bhd.

■ Others

Editorial Policy

https://www.chiyoda-corp.com/en/csr/■Chiyoda Almana

Revenues by Industry (FY2017)

3,420

Japan
●Chiyoda Global Headquarters

Thailand
Malaysia
Singapore■Middle East Headquarters

4,036

1

■Korea Representative Office

Italy

7,716

7,468

■ Operation Support Base■Chiyoda (Thailand) Limited■Chiyoda Corporation Netherlands B.V.

Consolidated Financial Highlights(One Hundred Million Yen)

New Orders■ Project Execution Base■Chiyoda & Public Works Co., Ltd.

Over 60 countries worldwide

Project Experience■ Sales BaseEngineering■ Chiyoda Kosho Co., Ltd.

■ Chiyoda System Technologies Corporation

Design, construction and maintenance for domestic projects.
http://www.cks-ykh.co.jp/

Engineering, procurement, construction and maintenanceof electrical and instrumentation, and of social
infrastructures. Consulting, development and operation
for integrated IT systems. Supplying spare part andmaterials.
http://www.cst.chiyoda.co.jp/english/index.html■ Chiyoda TechnoAce Co., Ltd.
Design and construction for pharmaceutical facilities.
http://www.cta.chiyoda.co.jp/en_corporate/

Business
Support■ Arrow Business Consulting Corporation
Consulting for finance and accounting.

This is our Communication on Progressin implementing the principles of theUnited Nations Global Compact andsupporting broader UN goals.

■ Chiyoda U-Tech Co., Ltd.
Technical consulting of energy and environment, staffing ofengineers and outsourcing services.
https://www.utc-yokohama.com/english/

We welcome feedback on its contents.

INDEX
Corporate Profile and Editorial Policy
Overseas Subsidiaries and Offices &Major Domestic Group Companies
INDEX
Top Message

1

2

Value 1FeatureA Reliable Company
Aiming for Stable Supplies ofRenewable Energy

13

Value 2
Environmental Initiatives

15

Value 33Social Contributions

17

Value 4
Respect for Human Rights

The Chiyoda Group: 70 Years of History

5

Renewal andOur Vision for the Future

7

CSO Message

19

9

Value 5
Commitment to Fairness

21

11

The Chiyoda Group’s Social
Contribution Activities

23

Messages from Stakeholders

25

CHIYODA GROUP Sustainability Report 20192

To p Me s s a g e

Steady Steps Toward Renewables
and the Future
Our new management system has officially been launched following the approvalof the Ordinary General Meeting of Shareholders held on June 25, 2019.
The current fiscal year marks the first year toward revitalization, by undertaking“Chiyoda’s Revitalization Plan - Initiatives for Revitalization and the Future -”. Under
the plan, we will seek to strengthen the risk management structure and enhanceengineering, procurement and construction (EPC) execution capacity to reform ourorganization and human resources systems.
Under the corporate philosophy of “Energy and Environment in Harmony,” theChiyoda Group has been operating as an engineering company for more than
70 years. During that time, it has contributed to the development of society byproviding optimal infrastructure and responding to prevailing regional expectations
through plant engineering and construction for liquefied natural gas (LNG) andother gas processing, petroleum, chemicals and many other types of industrial
facilities, as well as pharmaceutical and renewable energy facilities both in Japanand overseas.
In a climate of increasingly complex social problems and environmental issues
involving the international community in recent years, the business world faces
an urgent need to rapidly respond to changes in the operating environment andto be proactive in tackling global issues. The Paris Agreement adopted at theUnited Nations in 2015 and the UN Sustainable Development Goals (SDGs) arecommon international goals regarding these issues. In conducting its business, theChiyoda Group considers that its mission is to contribute to the future of the global
environment and the development of a sustainable society with technology andpassion as an engineering company.
Under the new management structure, the Chiyoda Group will steadfastly achieve
revitalization, respond to diversified energy demands and contribute to therealization of sustainable global environment and society.

3

CHIYODA GROUP Sustainability Report 2019

Kazushi Okawa

Masaji Santo

Chairman of the Board & CEO
Chiyoda Corporation

President & COO
Chiyoda Corporation

CHIYODA GROUP Sustainability Report 20194

2011 and onward

The Chiyoda Group: 70 Years of History
Since Japan's strong postwar recovery, we have taken a pioneering role in the engineering industry andmade contributions to the development of the energy and chemical engineering industries of more than
60 nations around the world.
Although the Chiyoda Group has worked under the philosophy "harmony between energy and theenvironment" since its founding and evolved to meet the needs of the times, we will continue to work toengineer a future where both the global environment and1981 ~ 2000
human society can continually develop.
1961 ~ 1980
Chiyoda Group History

1948 ~ 1960■

Contributions to the postwar reconstruction ofJapan's domestic industry■

Participation by means of engineering in oil andpetrochemical industries■

Promotion of Group-wide internationalization
and respond to the diversification of plantdemands led by oil producing countries■

Start initiatives for laboratory facilities projects■

Construction of desulfurization units forthe petroleum refinery■

Expand into fields of general industrial facilities
and non-ferrous metals■

Initiatives for LNG projects shift into high gear■

Participation in national oil stockpiling projects

2001 ~ 2010■

Execution of LNG mega projects and executionof projects in gas value chain■

Expansion of overseas licensing of flue gas
desulfurization technology■

Participation in photovoltaic projects■

Establishment of standard temperature andpressure large-quantity hydrogen storage andlong-distance transportation technologies

Mirai* Engineering
for the future
for energy andglobal environment*Mirai means future in Japanese

Nagasaki Solar Energy Co., Ltd.

Primary Achievements

CT-121 Bowen 3 SGR JBR

Kaduna refinery for NNPC (Nigeria)

Arun natural gas liquefaction plant for
Pertamina (Indonesia)

Construction to rebuild the Kawasaki
refinery of Mitsubishi Oil Co., Ltd.
(present JXTG Energy)

SPERA Hydrogen®: Hydrogen supply business

Qatar Gas Operating Co., Ltd.

Complete construction of Fukui national
petroleum stockpile baseDirect desulfurization equipment
for Nippon Mining Co., Ltd.

Mizushima grass-roots refinery for Mitsubishi
Oil Co., Ltd.

5CHIYODA GROUP Sustainability Report 2019

CHIYODA GROUP Sustainability Report 20196

Vision for the Revitalization and Future
The Chiyoda Group pledges to continue as an enterprisethat optimizes the use of the cutting-edge technology
and human resources to create value for society.
Our Corporate Philosophy proclaims "harmony between
energy and the environment," and we are pursuingbusiness with our CSR Values as shared values.
We re-define our strength of engineering value in theimplementation of “Revitalization Plan” and accelerate

Revitalization Plan
Mirai* Engineering forenergy and global

the future forenvironment

Realization of the
Corporate Philosophy*Mirai means future in Japanese- The Mission for us to Accomplish -growing strategy by expanding of core business fields

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

“Energy” and “Global Environment”.

EPC execution
Optimize design
Guarantee high quality● ISO26000● United Nations Global Compact● SDGs● Paris Climate Agreement● United Nations Convention
on Biological Diversity

Chiyoda's
strengths

GlobalStandards

2. Environmental Initiatives
3. Social Contributions

New technology
commercialization

4. Respect for Human Rights
5. Commitment to Fairness

Social Issues

7● Human Rights● Anti - Corruption● Global Warming● Securing Energy Resources● Economic Disparity● Fair Employment● Individual Issues
in Local Communities

CHIYODA GROUP Sustainability Report 2019

●Data-centric EPC* execution and plant delivery●Optimized plant system operation to improve
productivity, save manpower, automated, andremotely controlled●Development and provision of optimal
diversified compound energy systems anddemand chain systems●Creation of a carbon neutral society throughmanaging carbon and developing newtechnology●Development of technologies related to smart
cells, iPS cells for fundamental cure andregenerative medicine*Engineering, procurement, construction

Integration &Optimization

The Chiyoda
Group’s CSR Values
1. A Reliable Company

Value Provided

Integration of basic researchcapability and knowledge
applied from EPC

Provide the best solution forcomplex constraints andchallenges by utilizing
a mix of technologies
across varying areas●Achievement of SDGs
●Enhancement of Corporate Value

What are the SDGs (Sustainable Development Goals)?
These are goals that need to be realized by the year 2030 in order toachieve a sustainable development of society. They consist of 17 major
goals and 169 targets that were adopted by the United Nations General
Assembly in September 2015 to provide a basic framework for action in
the international community of both developing and developed countries.
In this report, we are reconfirming our own corporate activities anddisplaying icons for the relevant goals side by side with such activities.

The Chiyoda Group Supports the SDGs.

CHIYODA GROUP Sustainability Report 20198

Feature

Aiming for Stable Supplies of Rene

ject

Pro

wable Energy

Energy Independence
2 Balancing
and the Environment

As an engineering firm, the Chiyoda Group is working to achieve a carbon-recycling society through construction ofclean, low-environmental-footprint solar power stations and biomass generators.
Renewable energy's weakness is unstable supply due to climate impact on power generated, but stable supplies
have become a possibility with breakthroughs in storage battery technologies. We will realize innovation in energy
society with our customers, using our new storage battery technologies.

ject

Pro

1 Efforts to Popularize and Spread Renewable Energy with Local Roots

Located next to Japan's northernmost city in the Teshio districtof Hokkaido the town of Toyotomi is the site at which we areconstructing the North Toyotomi Transformer Storage Battery
System, in order to accelerate popularization of renewableenergy. Ground breaking ceremony held on October 2018.
As a prime contractor, we are carrying out comprehensive
construction efforts for this, the world's largest storage battery
system (with an output of 240MW and storage capacity of
720MWh). It is an effort by the North Hokkaido Wind Energy
Transmission Corporation in the same region, intended to"make demonstration of electric transmission grid development
for wind power" (over a total transmission grid development
area of 77.8km), and adjoins the North Toyotomi Transformer
S t a t i o n . N o r t h H o k k a i d o W i n d E n e r g y Tr a n s m i s s i o n
Corporation itself is a Special Purpose Corporation (SPC), andwas founded with capital contributions from Japan's largest
wind power player, Eurus Energy Holdings Corporation.
Construction schedule for the project will span five years, andwill require due consideration of safety and measures tocomplete work without accidents or disasters, given that winterwork in particular will be subject to harsh environmental
conditions.

The electricity and energy storage fields - including storage
batteries – are highly expected to bring about stable suppliesof renewable energy. With adoption of renewable energy, future
market growth is expected. We will continue our efforts tocontribute to the popularization and spread of distributed
energy generations, while building up experience and expertisein this field.

When all of Hokkaido prefecture lost power for several
days after the September 6, 2018 Hokkaido Eastern
Iburi earthquake, a neighboring dairy farmer asked touse a generator at our construction site office. The sitemanager accepted their request considering theurgency of the request, and the dairy farmers, able tocontinue work without losing milk, were delighted.
Later, the customer stated that "this action truly
embodies the Eurus vision of 'being a corporation thatdevelops together with each region, and is trusted bysociety,' and I am truly grateful to the Chiyoda
Corporation site manager for this wise and timely*1. Power load that must be supplied at highest priority during outages*2. Non-critical load
*3. Uninterruptible Power Supply: Facilities for power supply without immediate cutoff during outages

decision." In addition to continuing our attention to theenvironment and safety in future construction, we will
also continue to contribute to the local community
North Toyotomi Transformer Station Storage Battery System Completed Construction Concept CG(Aerial photography incorporated in CG created by Chiyoda Corporation based on maps from theGeospatial Information Authority of Japan)

VOICE

Comments from the Customer
This demonstration project plays an important role to"verify electric transmission grid development for wind
power" by the Agency for Natural Resources and Energy,
part of the Japanese Ministry of Economy, Trade andIndustry (METI). Northern Hokkaido is suitable area forwind power stations, but has a frail electric transmission
grid, which poses issues in the introduction andexpansion of wind power. The company will conduct
verification of technical issues and develop the regional
power transmission grid, aiming to contribute to theeconomic and industrial development of surrounding
areas through stable supplies of power upon resolution ofissues with future wind power large-scale adoption. We
are highly expecting Chiyoda Corporation to apply its
experience and expertise from the construction of avariety of energy plants around the world to this key

Contributing to Local Communities

I n F e b r u a r y 2 0 1 8 , C h i y o d a S y s t e m Te c h n o l o g i e s
Corporation (CST) delivered a home-consumption solar
photovoltaics system combined with lithium-ion batteries
for the village of Toshima in Tokyo Prefecture. This system
works in tandem with its lithium ion storage batteries undernormal conditions to supply critical load* 1 and generalload*2 using solar power. It achieves efficient energy usage,
and also serves as an emergency power supply bydisconnecting from the grid to run as a UPS* 3 for criticalload power during outages.
Independent from the electrical grid of the Japanese
mainland, Toshima also features climate conditions thatcause major fluctuations in energy output from solar powersystems. Connected to the island's grid as-is, these would
produce major shifts in voltage and frequency. However,adopting this system eliminates those factors. This project
was implemented based on the "Happy, Independent
Island Plan Using Renewable Energy" planned by the villageof Toshima in 2015, and contributed to regional value
improvements by reducing energy purchases andisland-wide carbon emissions, while also improving energy
independence and strengthening disaster-prevention
capabilities. CST will continue to work to help other regions
overcome similar issues by balancing community energy
needs with environmental concerns.

storage battery system construction work. Furthermore,
given the company is operating businesses with roots in
the region, we are extremely grateful for your swift
support for local residents and neighbors of theconstruction site during the prefecture-wide power
outages after the Hokkaido
Eastern Iburi earthquake. Thanks
to you, we avoided major losses
f ro m t h e o u t a g e s . We f e e lthoroughly assured in our trust,and going to continue thisproject with the support of
Chiyoda Corporation.
North HokkaidoWind Energy Transmission Corporation
President

Mr. Takeshi Itothrough the construction work.

Message from the Representative

VOICE

The town of Toyotomi is our construction site, and is locatedon the Sarobetsu Plain, which is a part of a national park. It
is a charming town blessed by nature with the Toyotomi
Onsen hot springs, which have traits rarely found anywherein the world, and spacious, cold plains that form stress-freepastures for Toyotomi milk.
Our staff members who experience
these charms are grateful for their ties
to Toyotomi, and have taken up
working to spread the word within andoutside the company. We value routine
communication in order to smooth
acceptance of us by those whoneighbor our
HKB Team
Project Manager
construction site.

Solar Cells

Hiroshi Suzuki

Storage Batteries

9

CHIYODA GROUP Sustainability Report 2019

CHIYODA GROUP Sustainability Report 2019 10

CSO Message

Corporate philosophy : Our Mission to Fulfill

My name is Masaji Santo and I am the President and COO of Chiyoda Corporation, having also
served as the Chief Sustainability Officer (CSO) since July 2019.

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.

In response to the FY 2018 financial losses and with sustainability as a goal for the corporate
management, Chiyoda has developed a Medium Term Management Plan “Chiyoda’s Revitalization Initiatives for Revitalization and the Future”, to enhance risk management and EPC project
execution.

Business vision : The Aim of Chiyoda

Achieving Chiyoda’s Corporate Philosophy

Chiyoda’s Corporate Social Responsibility (CSR)

Since its foundation in 1948, the Chiyoda Group has strived toTransparent corporate management based on fair terms andembody its corporate philosophy of “Energy and Environment inconditions is critical to continuing our business activities. As a

Harmony” and to continue business activities that contribute to

global business, Chiyoda stakeholders and employees continue

the development of a sustainable society.

to diversify through an expanding customer base and business
par tnerships, local communities and shareholders. As a

To realize this philosophy, we must use our diverse knowledge tosignatory to the UN Global Compact＊3, we have developed ourcreate new innovations and solutions to fulfill our mission ofbusiness within human and labor rights parameters and byresolving shared social issues, as illustrated by the Pariscomplying with legislation and anti-corruption laws. We have＊1

Agreement and SDG’s .

focused on adhering to Japanese and international laws andregulations in particular, as well as respecting human rights andWhilst addressing complex environmental issues such as climate

preventing harassment. To improve transparency in all ourchange and to achieve a sustainable society that balancesbusiness activities, we established new Human Rights and Tax

economic and social values through technological and human

Policies in FY2018 and are committed to their implementation.

assets , Chiyoda, as an engineering company, must also

We will also continue our efforts to reflect the spirit of theseleverage the digital revolution.

policies in our daily work, while requesting understanding from＊2

clients and partners as we work towards these principles.
Aiming to be a Reliable Company

A Grand Opportunity for the Future
The Chiyoda Group is committed to being an “Innovative” Engineering Company,
shaping the future of energy and the global environment with passion and cutting-edge technology.

CSR Values : Our Shared Values

1

A Reliable Company
We strive to be a reliable company to ourcustomers and all our stakeholders byproviding world-class technologies andknowledge.

2

Environmental Initiatives

3

Social Contributions

4

Respect for Human Rights

5

Commitment to Fairness

Although we recorded major financial losses in FY2018, theWe will work to remain an invaluable
company to society by utilizing refinedtechnologies to promote harmony between
the global environment and economic andsocial activities.

ISO 26000
Core Subjects

UN Global Compact

Consumer(customer)
issues━The
environment

Principle 7: Businesses should support aprecautionary approach to environmental challenges;
Principle 8: undertake initiatives to promote greater
environmental responsibility; andPrinciple 9: encourage the development and diffusionof environmentally friendly technologies.

C h i y o d a G r o u p c o n t i n u e s to e n h a n c e t h e v a l u e o f o u r
engineering by integrating knowledge and technology with
employees taking a wide view, and using diversity as an asset in
executing the revitalization plan. As well as strengthening ourfinancial base, the Group will unite as an engineering company,
creating the future of energy and the global environment whilst
striving to improve our corporate value as a reliable company.

＊

1. Sustainable Development Goals shared by developed and emerging nations for2030, selected at the September 2015 UN Summit, consisting of 17 goals and 169
targets aiming to eliminate poverty and achieve a sustainable world.

＊

2. The Chiyoda Group regards human resources as “human assets” given their status
within the Group.

＊

3. Initiative proposed for companies at the 1999 World Economic Forum by Kofi
Annan, then UN Secretary-General, requesting adherence to 10 business, humanrights, labor, environment and corruption prevention principles.

President and COO, CSO

11

Through our engineering business in Japan andoverseas, we contribute to local communities
and address global issues in ways including
human resources development, technology
transfer and environmental protection.

We are dedicated to respecting the humanrights 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 ofwhich employees and their families are proud.

We are dedicated to achieving even greatertransparency and stability by conducting ouroperations fairly in accordance with thehighest ethical standards.

Community
involvement
anddevelopment

Human rights
Labor
practices

Organizational
governanceFair operating
practices━

Principle 1: Businesses should support and respect theprotection of 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 tocollective bargaining;
Principle 4: the elimination of all forms of forced andcompulsory labor;
Principle 5: the effective abolition of child labor; andPrinciple 6: the elimination of discrimination in respectof employment and occupation.

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

CHIYODA GROUP Sustainability Report 2019 12

1

Value

Receiving the Chiba Labor Bureau Manager's Grand Prize(for Measures to Ensure Safety)

A Reliable Company

How

For a corporation, the trust of its stakeholders
provides the foundation for management. Throughour business, the Chiyoda Group will contribute to
the resolution of global issues and the sustainable
development of society so as to continue earning thetrust of our stakeholders.

• Providing safe, reliable plants• Carrying out high-quality engineering• Technical proposals for the development of a sustainable
society• Equipment updates responding to the requirement of time
• Application of digital innovation technology

Environmental Efforts*1. Flames produced from burning excess gas generated during LNG plant operations inorder to neutralize redundant gas. Burning at flue tips (flare stacks) reduces harm tosome degree, but solutions are in demand from a perspective focused on reducing
greenhouse gases.

In addition to our environmental and quality efforts in business, we have also developed an Integrated Management
System (IMS) as a framework forbusiness operational documentation, management, and improvements.
From January to February of 2019,
we also underwent IMS certification
review by third-party agency Bureau
Veritas for assessment of labor safety and sanitation, quality, environmental, and corporate responsibility Integration of ISO9001,
compliance. We achieved the follow- ISO14001, and ISO45001
ing results.

via IMS acquisition

New acquisition of ISO45001 certification for labor safety
and sanitation

Cosmo Oil Co., Ltd.
Yokkaichi Refinery
Assistant General Manager (Refining)

Mr. Toshiyuki Kumeuchi

Respect for
Human Rights

Given increased concern in minimizing gas flares*1 andin order to bring about a low-carbon society, we havelaunched and are engaged in a Flare Reduction Project(FRP) with goals of reducing CO2 emissions by reusing gas
rather than combusting it. After completing basic designs
for gas flare reduction in 2015, we began accepting EPC
work in 2017 and are still actively engaged in this regard
now.

Acquisition of International Certifications

This was a challenging project, involving connecting our
production facilities with those of other companies with apipeline. It began by clearing a variety of differences between us and other partner companies. We held weekly
meetings and made progress over the course of more than
100 conferences. Arrangements were widespread and astruggle given that numerous contractors were involved in
on-site construction, but that also gave our employees a lotof chances to learn. Having completed everything smoothly, the experience has given us a lot of confidence andhelped us grow.
Safety was one of the most important points for bothbusinesses. The Chiyoda specialty of off-site construction
is high-risk when plants are running, yet in addition to carrying everything out on a tight schedule while prioritizing
safety, we are grateful that Chiyoda managed it without any
accidents or disasters. Furthermore, handling the massive
volume of bureaucratic applications involved shows theirlevel of experience as an engineering firm.
An oil company's mission is to achieve a stable supply ofenergy. In the future, we aim to continue use of Chiyoda's
first-class contracting experience and expertise as we
strive for harmony with the environment, both for enhancements to existing plants and for efforts toward
International Maritime Organization (IMO)
bunkering fuel sulfur content regulations.

Social Contributions

In addition to ensuring satisfaction of customer and stakeholder needs by strengthening acquisition of international
standard certifications in labor safety and sanitation, quality,
and the environment, Chiyoda-Almana is contributing to therealization of a sustainable society as a trusted company.

Comments from the Customer

Environmental Initiatives

Efforts Toward Sustainability at Chiyoda-Almana

ent to establish “sustainable cities and communities” as
the global goals.

A Reliable Company

Why

Chiyoda achieved safety record of no accident and tragedy over 2 years construction of CPKP ISBL Off-Site ProjectWork for the Cosmo Oil Co., Ltd. and was awarded as excellent company of safety measure by Chiba Labor Officein October, 2018.
Refinery complexes are base of oil production and supply
and important foundation for national life and (local) economy. Therefore, preparation (building-up of) for the robust
supply system of oil products is important mission of oil
industries both in the normal time and emergency cases.
This time Cosmo Oil Co., Ltd. successfully implemented
rationalization and efficiency improvement of its refinery
business to ensure the stable energy supply and low products pricing by underwater pipeline construction to beconnected with other oil company. This pipeline enabled
the optimization of refining facilities, production planning,and common use of raw materials.
Construction work in the existing production site required
careful construction planning and schedule control withseasonal maintenance work as well as careful safety planning. For some critical works of new pipeline work, Chiyoda facilitated daily project meeting with the client to adjust
construction schedule. In addition, over 200 applications
to the local fire office wererequired as per connecting point of pipeline and its
construction schedule.
Under the above mentioned conditions, Chiyoda completed this difficult
project without accident
and tragedy.
As a reliable contractor, we
will collaborate with our cliThe Chiba Labor Bureau Manager's
Grand Prize Awards Ceremony●Integration of ISO9001, ISO14001, and ISO45001 via IMS
acquisition●

On November 22, 2018, the FRP Team help “World
Quality Day 2018” in collaboration with corporate partners involved in this project. Companies participatingemphasized quality improvements aimed at further
reducing gas flares, and the full team came together as a unit. Furthermore, at Chiyoda-Almana, we ensure quality according to ISO90001 procedures, aninternationally-recognized quality certification. We implement performance assessment campaigns on all
projects completed each year, and actively respondto customer feedback as we engage in dialogue.

New adoption of ISO31000 as a risk management system●We have introduced “LNG Plant AI Optimizer” to increase
LNG production on an existing plant of DSLNG on
Sulawesi Island, Indonesia. This is the first project in theworld where and innovative AI product - Deep Learning*2
has been introduced on an existing LNG facility to safely
increase LNG production and improve economic efficiency
with no plant modifications.
We are continually striving to achieve its goal of Digital
Innovation Technology.
World Quality Day 2018

13 CHIYODA GROUP Sustainability Report 2019

Improved LNG Productivity Using AI (“LNG Plant Optimizer”) on
PT Donggi-Senoro LNG (DSLNG)*2. A method and technology to enable computers themselves to capture the potential features of the data to make more accurate and efficient decision through multi-layered neutral
networks simulated human neural networks created by machine learning.

CHIYODA GROUP Sustainability Report 2019 14

Commitment to Fairness

Quality Efforts

2

Value

Engagement for the Reduction of Green House Gas

Environmental Initiatives

Ever since the Chiyoda Group was founded, we haveengaged with the contradictory themes expressed as“harmony between energy and the environment.” Inorder for the global environment and human society to
be sustainable, we will aim to use engineering to realize
climate change countermeasures and a carbon-freesociety. As we contribute to solutions for new issues as
they arise, we will continue to be a leading company.

How• Implement measures to protect the environment throughproject execution•C O2 cuts to achieve a carbon-recycling society• Suggesttechnology that addresses climate change•D evelop and provide technology to protect the environment•U se energy effectively by improving energy efficiency

allocated in the attached map, and going to contribute forthe protection of air-pollution in India.

The “GREEN OIL JAPAN” Declaration and Our Efforts witheuglena Co., Ltd.
biomass, and investing in existing FCC equipment.
We support a part of euglena's GREEN OIL JAPAN declaration through our completion of projects and provisionof technologies, and will bring about a bright new future
alongside all our stakeholders as an engineering company
that shapes the future of energy and the global environment.
* FCC (Fluid Catalytic Cracking) is a process of obtaining primarily gasoline products
from the catalytic breakdown of heavy oil raw materials. While this is a critical reactionin the oil refining field given its ability to produce clean gasoline from inferior heavy oilthat cannot be used on its own, it is also an environmentally-friendly process that lets us
make effective use of limited resources.

Biomass

Heavy oil

Liquification

Shipping

FCC

Bio-oilBiofuelTwo-stage process via biomass liquification and FCC

CHIYODA GROUP Sustainability Report 2019 16

Commitment to Fairness

15 CHIYODA GROUP Sustainability Report 2019

CO2 emissions reduces from LNG as a low-carbon energy source, and from EPC provision for renewable energy
facilities. The results showed that as an engineering company, we can contribute an estimated 1.18 billion metric
ton total reduction in CO2 emissions by 2030 via plants
constructed. We will reduces CO2 emissions through ourengineering techniques in order to contribute to the futureof energy and the global environment.

On November 2, 2018, we held the groundbreaking ceremony for construction on our experimental bio jet and diesel fuel plant for euglena Co., Ltd. (“euglena” below). The
plant is the first of its kind in Japan. At the ceremony, euglena's President Izumo announced the new GREEN OIL
JAPAN declaration of Japan's aims to become a leading
biofuel nation. The declaration sets establishment of a biofuel industry as its goal, and calls for the adoption of biofuels produced at the experimental plant by 2020 in land,
air, and marine vehicles, as well as the spread of biofuel
production and usage supporters across Japan by 2030.
We are working on joint development of biofuel production systems using Fluid Catalytic Cracking (FCC*), in collaboration with euglena and Shinshu University. This research works to produce cheap, high-quality liquid fuelsfrom low-environmental-burden biomass. Wood biomass
is abundantly available, but bulky by the unit, and also features low energy density, making it difficult to use as a resource with existing technologies. To address that, we areproducing fuels with economic quality equal to petroleum
gasoline and reduced CO2 production by liquifying wood

Respect for
Human Rights

Map of CT-121 licensing projects underway in India

Efforts to Achieve a Carbon Recycling Society
Our aim of achieving a carbon-free society in 2030 and beyond is one key issue we must work toward. In that regard,
we established our Decarbonization Advancement Officeon June 1, 2018 (restructured to a Carbon Management
Business Office in July 2019).
In FY2018, alongside the drafting of our strategy for a carbon-recycling society, we also considered ways to contribute toward quantitative CO2 emissions reductions. When
doing so, we calculated quantitative contributions toward

CO2 breakdown/collection demonstration
facility imagefacility image

Social Contributions

In India, coal accounts for 54.6% of the installed power
capacity of 356GW (as of March 2019). With its robust andrapid economic growth, air pollution has been seriously increased, and removal of SO2 emitted from coal-fired plant
has become an important social issue.
In 2030, domestic share of coal-fired plant will be stillaround 40 % as the demand for coal is ﬁrmly rooted in its
low and stable price.
In November 2016, Chiyoda concluded a technology license agreement with India’s major heavy industry manufacturer Larsen & Toubro (L&T) to provide its proprietary“Chiyoda Thoroughbred
121 (the CT-121)” ﬂuegas desulfurization process (FGD) technology
for promotion in the Indian market.
Currently, CT-121 technology is applied in the
8 FGD retrofit projects Artwork of the completed CT-121

Environmental Initiatives

Environmental Initiatives to Protect Air Pollution in India

plant. With the project execution know-how of huge-scale
gas processing project in both domestic and overseas
market, Chiyoda is proposing high level pre-treatment
technology of CT-121.
In addition, Chiyoda is adopted in NEDO Feasibility Study
Program from 2018 and is collaborating with RIKEN and
Furukawa Electric Co. Ltd., aim to commercialize, in the2030s, the Hybrid Electrocatalysts System which can produce basic chemical products (C2 chemicals) directly from
CO2 and H2O.
Thus, Chiyoda is enforcing the promotion of renewable energy and reduction of CO2 in these programs.

A Reliable Company

Why

Chiyoda participates in the CCS (Carbon dioxide Captureand Storage) demonstration project, and currently executing the construction work of large-scale demonstration
plant which recovers CO2 from flue gas exhausted from
Coal-fired Thermal Power Plant.
This demonstration plant is under construction in the Mikawa Power Plant of SIGMA POWER Ariake Corporation(SPAC), subsidiary of Toshiba Energy Systems & Solutions
Corporation (Toshiba ESS), in Omuta-shi, Fukuoka prefecture, which will captures 500 tons of CO2 per day, almost
50 % of its CO2 daily emission. Based on the technical requirements of Toshiba ESS, Chiyoda is undertaking detailengineering, procurement, installation and test operationof facilities including civil construction work. This demonstration project led by Toshiba ESS was authorized as“Demonstration of Sustainable CCS Technology Project”
sponsored by Ministry of the Environment in 2016 and will
start operation in the summer 2020. Chiyoda is one of theconsortium members of 16 organizations aiming for theconstruction and societal implementation of CCS demonstration plant.
This demonstration work is responding to the governmental vision for the introduction and commercializationof CCS technology to decrease CO2 from thermal power

3

Value

Integrating Hydrogen, AI, and Digital

Social Contributions

Working to resolve societal issues is our social mission
as an engineering company. We don't just provide plants;
we develop social infrastructure with a fusion of AI anddigital technologies, and work to develop global humanassets through technical knowledge transfer and cultural
exchange.

How•D evelopment of global human resources• Transferring technology, creating job in countries where we
execute projects• P roviding added value by integrating with cutting-edge
technologies• E stablishing industrial infrastructure

Implementing internships and university courses
People are the greatest assets in the engineering industry, and thefinding and training of young engineers is also critical to reinforce
international competitiveness and achieving resolutions forsocial issues through technological innovations. Chiyoda GroupIn front of our booth with the Charge d'Affaires ad Interim of Brunei (center)

provides a wide range of training programs in partnerships withschools, and works to develop the next generation of humanassets and increase awareness of the engineering industry.

Contributing to Regional Economic Development andthe Engineering Industry Through Our Projects

Example efforts in FY2018
Accepted 57 interns
Held project management courses at Yokohama National University and Kyushu University
Held global human resources training model curriculum courses at Sophia University

Chiyoda System Technologies Corporation

Accepted seven interns

Chiyoda Philippines Corporation

Implemented
two-month long on-the-job training programs for engineering students at 25 local
universities

Chiyoda & Public Works Co., Ltd.

Assisted
with corporate dispatch placements primarily coordinated by Okayama University forstudents from Myanmar*2. Porous pure titanium obtained via smelting of titanium ore.
*3. MEED MEDIA FZ LLC: A top media company founded in 1957 and specialized in
the Middle East and North Africa.

Commitment to Fairness

Chiyoda Corporation

mestic Supply Chain Development in Saudi Arabia in the“Japan-Saudi Vision 2030” because titanium supply chain
promoted by this project will contribute their economicaldevelopment. In addition, this project won the GCC Winner, Industrial project of the Year in the MEED*3 2019 Project award in April 2019.
Thus, Chiyoda will cntribute the development of engineering industy and follow the global goal of “Industy Innovation
and Infrasructures”.

Development of training for overseas customers
In relation to the execution of numerous overseas projects, we
also focus on human resources development in relevant countries. At training sessions for our overseas customers, we offer domestic lessons that incorporate new guidance on how tointeract with Japanese culture, and also training via instructors
dispatched to customers' nations. We held nine training sessions in FY2018, with 124 trainees from four nations. Throughtechnology transfers and cultural exchange, we will continue tocontribute to the sustainable development of nations where wehave constructed plants.
17 CHIYODA GROUP Sustainability Report 2019

The MEED 2019 Project award

Scene from training for overseas customers

Respect for
Human Rights

Chiyoda & Public Works employees speaking at a study abroad in Japan seminar

Chiyoda won the Engineering Commendation Award 2018of The Engineering Advancement Institution of Japan(ENAA), due to Titanium Sponge*2 Plant Project in Saudi
Arabia completed in 2017. In this project execution, Chiyoda, as a leader of JV with CTCI, could manage the samelevel of quality and construction schedule as in domestic
project of equal type plant in Japan, and realized the supreme safety record under the very severe natural conditions. Chiyoda implemented various crisis management
measures including terolist attack as well. Those project
execution is highly evaluated and awarded by ENAA. Also,
this project was selcted as Advanced project for the Do-

Social Contributions

Interns at Chiyoda Philippines Corporation*1. A virtual digital plant coordinating and consolidating all operational and security
data, centering on a 3D model.

Environmental Initiatives

Developing the Next Generation of Human Assets

We will contribute to realizing a smart society with total
system optimization capability an integrated engineering
company provides.
A Reliable Company

Why

Chiyoda exhibited in the Kawasaki International Eco-Tech
Fair 2019 held in Kawasaki City, February 7-8, 2019.
Featured at the Chiyoda booth were the SPERA Hydrogen® system that brings hydrogen on a large scale in liquidstate at ambient temperature and pressure from overseas
and the Plant Digital Twin*1 that promote “visualization”
of plant operations and maintenance through the application of new data integration technology with 3D data
platform.
Mr. Ian Maidin, Charge d'Affaires ad interim at the Embassy of Brunei Darussalam and Mr. Norihiko Fukuda, Mayorof Kawasaki City visited Chiyoda’s booth and attended at
the presentation and discussion.
It was not only an introduction to individual technologies,
but also an exhibition that showed the goals and the wholesense of the future society including hydrogen integrationof AI and digital.

The ENAA Awards

CHIYODA GROUP Sustainability Report 2019 18

4

Value

Human Rights Initiatives through the Project Execution

Respect for Human Rights

Human resources are valuable assets for an engineering
company. In order to maintain a corporate culture that ouremployees and their families can take pride in, we are
faced with a growing necessity to carry out work style reforms, develop global human resources, and respect thediversity of personnel.

How• S hare the consciousness of “safety as a core value”• S trengthen emergency management systems•R espect human rights•U ndertake work style reform initiatives•U se of diverse human assets

Voices of Employees
Simulated Experience Training at Oita Rinkai Field Office ofOita Liquefied Natural Gas Company, Inc.

Employee data as of March 2019
(Chiyoda Corporation)
Number of women employees
Number of non-Japanese employees
Number of employees with disabilities

248
63
19

Voices of Employees

Polishing My Catch-Up Abilities on a Daily Basis

It Is Only Natural That Chiyoda Corporation Will Bring in

I was lucky to become a mid-career hire in October 2018.

Countless People to Provide Clean Energy Worldwide

Since I serve as the secretary to the Division Director, I of-

I work in the Gas and LNG Process Design Department,

ten have to make schedule arrangements for business trips

and our daily efforts are focused on the goal of creating

or excursions or set up meetings with people both within

plants and bringing LNG to people worldwide throughand outside my department. I try to keep my eyes sharp

cooperation with all departments, customers, licensers,

and immediately catch what the other person wants, but

vendors, and countless others. It is natural for a lot of

I'm constantly aware that I still have a lot to learn in terms

people to be involved with these large projects, and whileof "catch-up abilities."that includes people from diverse nationalities (I myself am

Since being hired, I've gradually gained perspective on

looked upon as a foreigner by the people around me), I

operational and management methods in the department

have never felt any issues due to our different genders or

through a variety of tasks, so I want to work with my supe-nationalities. Instead, this workplace environment is natu-

riors and the other people in charge to make improvements

ral at CHIYODA, and those around me demonstrated withand support freedom of action for the sales staff. That istheir attitudes and work how to accept others for their mo-

my goal.

tivation and abilities, regardless of gender or nationality.

I want to build better relationships while communicating

I think that as a company member, this is how I contributewith a diverse cast of people, in order to in-to the creation of a sustainable society, both in terms of en-

crease acceptance for others with physi-

vironmental and energy issues, and in terms

cal disabilities that require wheelchairs.

of equality across gender and nationality.

Global Environment & Green Energy
Project Business Development
Division,Business Development
Department 1

Technology & Engineering Division,
Gas & LNG Process Engineering
Department

Akira Kubota

Pantira Privatananupunt

CHIYODA GROUP Sustainability Report 2019 20

Commitment to Fairness

19 CHIYODA GROUP Sustainability Report 2019

We have always worked to prevent harassment in our operational areas both within Japan and abroad. We haveestablished and operate under the group consultation reporting system intended to detect and prevent and remedy
violations immediately.

Respect for
Human Rights

Use of Diverse Human Resources
An engineering company's assets are its technology
and human resources. We believe in the use of diverse
human resources as one of our management strategies
alongside work-life balance for group employees, andwe aspire to further advance and enhance our humanresources.
Through this use of diverse human resources, we aim
to further advance our international competitive edge
and build an organization that is flexible in the face ofchange, which can proactively accept new values andchanges on an individual level.

Employee Human Rights

Social Contributions

Chiyoda Kosho Co., Ltd. has developed simulated experience training of danger situation, and executed with clientsand sub-contractors in the construction site.
To protect labor incidents in the site, raising awareness ofdanger is important and key to realize the Zero Incident”.
In this training participants experienced near-miss situation of construction work and analyze how it occurs bythemselves.
In the feedback report in past 3 years, most of participants
satisfied this program and more than 80% answered thatawareness for the dangerous risk has been raised to moresensitive in construction work.

Chiyoda is doing its project activities all over the world,and protection of children’s human rights is common requirement in global society. In this respect, Chiyoda observing related local laws and regulations and to confirm
how subcontractors and vendors observe human rights
requirements as elimination of child labor, forced labor anddiscrimination etc., (in the inquiry registration process).

For the enhancement of safety for the employee to be assigned in the project site, Chiyoda implements thoroughlocal surveys before the site work is started. Depends
on the results of those surveys, Chiyoda needs to deploy
armed security guard under the local laws and regulations.
In addition, Chiyoda only uses the service providers which
not only comply with local law, regulations and international law, but also support international agreements such as“UN Global Compact” and “Voluntary Principles on Security and Human Rights”.

Environmental Initiatives

Simulated Experience Training ofDangerous Situation with Clients and Partners

Children Human Rights

Employee Safety and Community Human Rights
Considerations by Armed Security

A Reliable Company

Why

Chiyoda issued Human Rights Policy in September, 2018as a management commitment for the respect of humanrights by integrating of our human rights concepts includedin the Code of Conducts and Employer’s Practical Guide
and some global initiatives.
In the execution of EPC project, Chiyoda is paying attention to the human rights of stakeholders including regional
communities as follows;

5

Value

Commitment to Fairness

Why

Commitment to fairness is the foundation for a corporation’s
continuing existence. The Chiyoda Group has also been
pursuing stronger governance and a more thoroughgoingcompliance. Meanwhile, transparency, fairness, andopenness in management have been increasingly called
for because of requirements in Japan and overseas.

How• Implementinitiatives to prevent misconduct•G lobal development of Compliance Consultation andReporting System• Implementationof thoroughgoing compliance educationand export control education• E xpand corporate management frameworks that aretransparent and sound• Implement thoroughgoing risk management

Compliance Seminar at Chiyoda-Almana

FY2018 Reporting and Consultation Record
By reporting or consultation contact window

Various Efforts to Raise Awareness and Recognition ofCompliance and Prevent Corruption

Group company
consultation and reporting
windows

Functional Training Pre-dispatch training for overseas assignment (for all applicable persons) Pre-appointment training for site managers (for all applicable persons) Security Export Control training

Seminars Insider trading Construction law Bribery and cartels Harassment Chiyoda Group Code of Conduct

e-Learning The Chiyoda Group Code of Conduct and handling of bribery, cartels,
and other serious risks

21 CHIYODA GROUP Sustainability Report 2019

Number of Students

1
3
1

82
11
19

Held as needed
Held as needed
3

91
26
51

1
1
6
3
1

119
53
493
258
70

ChiyodaDomestic Group Companies
Overseas Group Companies

2,429
1,536
704

incidents

Power Harassment(including consultations,canceled items, and concerns)
Sexual or maternity
harassment

79

5 incidents

External windows(workplace hotline)*

Workplace Environment

38 incidents
0

20

40

60

Other consultations
80

100※Workplace hotline entered operation in January 2018 (for three months of
FY2017)0 incidents
9 incidents
2 incidents
17 incidents
8 incidents

0

10

20

30

Total of36

incidents

40

50

There were no incidents of corruption or legal violations such as bribery orsimilar during FY2018.

Enhancing Corporate GovernanceWe reinforced our corporate governance system as of July
1, 2019 in order to execute our renewal plan reliably andcontinue as a financially-healthy company that can continue to meet shifting societal demands.
①
Increasing the ratio of independent externalboard members
We have increased the incidence independent externalboard members to 40% and enhanced external monitoring functions.

Current

14 Members of the Board
Audit & Supervisory
Committee② Establishing new Chief Officers and clarifying thedivision of roles between board members and executive officers
We have limited additional roles as executive officers to
the president and CFO alone, for further delineation of
executive and auditing roles in management.
Furthermore, we have established a new COO (Chief
Operating Officer) and CRO (Chief Risk Management
Officer), and our President is serving concurrently as
COO (with our chairman of the Board serving concurrently as CEO).

New

10 Members of the Board
Audit & Supervisory
Committee

External

Executive Officers

External

Executive Officers

Independent externalboard members
Board members who
concurrently serve as
Executive Officers

CHIYODA GROUP Sustainability Report 2019 22

Commitment to Fairness New hire training Mid career hire training New executive training

Sessions, etc.

Violation of law, Anti-bribery (corruption)

Respect for
Human Rights

Tiered Training

Item

Total ofSocial Contributions

In 2019, we have issued “Compliance Handbook” coveringcase studies of 14(fourteen) compliance cases and distributed to all employees in Chiyoda groups.
Also, we made “Investigation of Compliance Status” in
2018. As a result, outstanding compliance matters were
defined and to be followed by us.
The purpose of the Group’s consultation and reporting
system (hotline, whistleblowing system) is to quickly detect and prevent any illegal activities or unethical conduct,whether actual or suspected, using a framework thatproperly processes reports and consultations regarding
unethical conduct and illegal activities by individuals or organizations. This hotline is operated jointly by Chiyoda, its
domestic Group companies and overseas Group compa-

FY2018 Compliance Education and Training Record
Type

36 incidents

By details (only for incidents reported to Group consultation
and reporting windows)
Environmental Initiatives

Group consultation and reporting
window (including external contact
windows: attorneys)

Chiyoda group have been continuously conducting training program on compliance for all employees to enhancecompliance consciousness (awareness) and knowledge
level. In this connection (For those purpose), we are operating annual e-learning program for thorough awarenessof “Chiyoda Group Code of Conduct”, and risk hedge ofanti-bribery and cartels.
Furthermore, individual seminars for the construction business act, regulation of insider trading, bribery, cartels andharassment have been held with the many attendants ofgroup all employees.
For the monitoring of overseas group companies, we havevisited each companies to define their compliance risks
and made lectures for individual compliance themes.

A Reliable Company

nies. It has an External Consultation Center with a lawyer
and workplace hotline available to all employees.
The Chiyoda group will continue working together as awhole to enhance compliance training as well as to reinforce our systems for ensuring early deletion and prompt
response to cases regarding the compliance.

The Chiyoda Group’s
Social Contribution Activities

Assistance to areas hit by disasters

Why

How

The Chiyoda Group is actively seeking solutions to global issues
in order to help create a better society. This is not just a matter ofsocial contributions through business. We will also continue working closely with local communities to contribute to the sustainable
development of society.

Taking ‘CSR promotion by all members together’ as our motto, and withcollaboration and coexistence with local communities as our objective,
we will continue our corporate existence as a contributor to the sustainable development of society. By having our employees participate inthese activities, we are also heightening their motivation to contribute tosociety and developing human capital that will be capable of contributing not just to business performance but to society as a whole.

Educational Support & Human Resource Development
Students received on company visits andCGH outreach lecturers dispatched

Chiyoda Young Inventors
AcademyAssisted with a Japanese
speech contest

CGH

CIC

Chiyoda-Almana

PV Toyota Field Office

Assistance to Areas Hit by the Great
East Japan Earthquake Employees
Serve as Volunteer Relief Workers

Implemented fund-raising to benefit
flooding-affected areas in southern
India

Chiyoda Group within Japan

Chiyoda-Almana

Dispatched a full 53 personnel for three visits
to the town of Otsuchi in the city of Kamaishi, Iwate Prefecture.

Donated 20,681 Qatari riyals to The Chief
Minister's Distress Relief Fund.

Yubeshi no Kai

Registration forGreen Wave program*1

Chiyoda Group within Japan

Support for Sports
Support for the Papua New Guinea
women's rugby team
CGH, COPL

Source: Sports Journalists' Association website*1: An initiative to spread a ‘Green Wave’ of growing things
across the Earth by tree-planting and other such activities on
the UN-designated International Day for Biological Diversity.
http://greenwave.undb.jp/index.html/

Environmental
Conservation
Community clean-up activities

Implemented one corporate field
trip and five off-site courses tosupport high school student careerdevelopment.

Assisted with solar power plant construction site tours for local elementary
school students.

School Drive Campaign

Held a two-week academy at the University of
Houston for seventh through ninth graders interested in engineering and programming.

Purchase of CO2 sequestrationcredit (19.00 t-CO2)

Assisted with a contest held at the
University of Qatar.
Held 10 souvenir sales sessions internallyfor products from disaster-affected areas.

Interns accepted to program andUniversity lecturers

CPh,CIC

Contributions to Health & Welfare

CGH, CST, CPh, Chiyoda-Almana

TABLE FOR TWO*2
Chiyoda Group within Japan

Support for people with special needs
Heart-Made Sale

Donations to Yangon children's
hospitals

Blood donation
CPW

In cooperation with community clean-up activities, a
total of 110 personnel participated in the Minatomirai and Koyasu districts.

Beach cleaning campaign

CPW

Chiyoda-Almana

Donated 1.5MM kyat and 500 nutritional
meals for treatment of patients that requireliver transplants.

About 120 employees and their family members
participated in cleaning up Qatar's seafront.

Please see page 17 for details.

We donated school supplies to local primary schools.

Chiyoda Group within Japan

Chiyoda Group within Japan

1,561 meals provided*2: The TFT menu provided at employee dining halls
includes a 20-yen donation, and each 20 yen can
provide one school meal in a developing country.

Japan Philharmonic Orchestra of
Beethoven’s Ninth Symphony
CGH

ECOCAP Program*3

Holiday food drive

Donations to rural areas in India

Chiyoda Group within Japan

CIC

LTC

Assisted West Houston Assistance Ministries
and donated food to the hungry.

Provided refrigeration facilities for dairy producers andcovered expenses for a medical examination bus.

Tree planting activities
CPh

251,206 caps recycled(Vaccine doses for 292
people)Held a total of 20 internal sales meetings for local
site products for persons with disabilities in the city of
Yokohama, at CGH and Koyasu Office & ResearchPark.

23 CHIYODA GROUP Sustainability Report 2019

Chiyoda has been supporting Japan Philharmonic Orchestra of Beethoven’s Ninth
Symphony since 2011, and every year we give
invitations with 25 pairs of tickets to people
with visual impairments.

*3: C aps for PET bottles arecollected at the office andthe proceeds (approximately 860 caps provides a polio
vaccine for one person) aresent to developing countries.

Planted 300 tree saplings.

CHIYODA GROUP Sustainability Report 2019 24

Messages from Stakeholders

Becoming a Company Even More Essential
to Society by Merging Sustainability WithManagement
Adjunct Professor,

Mr. Masao Seki School of Business Administration, Meiji University

This is our first year driving toward renewal as a group, and this year's report clearly shows our will to work even more proactively on
global issues, advancing the integration of sustainability and management strategy more than ever.
Have the strengths we've continued to heighten in energy and the environment since our founding ever been more necessary for society?
We must polish our technical skills even further, and grow to become a company even more essential to society.

Positive Points

Points Where Future Efforts Need Reinforcement

1. T he new corporate management system launched
in July 2019 resolved that President and COO Santo
would also serve as CSO (Chief Sustainability Officer).
This sends a strong message internally and externallythat we are merging sustainability with management
even more solidly.

1. We need to show more specific issues and road maps
for efforts to achieve our vision for renewal and the future, and thus realize our corporate philosophy by providing society with value that incorporates our technological strengths. We should also work on setting longterm goals.

2. We should also focus on the role of the Carbon-Free
Promotion Office on June 1, 2018 (current: Carbon
Recycling Business Office), established last year. I want
us to use our abilities to the utmost as an engineering
company that shapes the future of the global environment, as we fight against climate change. Special, urgent reinforcements for efforts of all sorts are required,as this is the issue with the greatest gap between reality
and achievement of all SDGs.

2. We have made major steps by seriously addressing
points cited last FY and in drafting and disclosing our
Human Rights Policy. It is also positive that we are considering the human rights of children and working toensure armed security consider the needs of local communities. As a next step, we need to find human rights
risks across our entire value chain, and work to create asystem of human rights due diligence.

3. For concrete results, we are working as the single contractor for the world's largest storage battery system's
construction in the town of Toyotomi, Teshio District,
Hokkaido Prefecture, and we also delivered home consumption-style solar generator systems for the villageof Toshima as a disaster-prevention measure on theisolated island. Thanks to our record and experience intechnology worldwide, we are able to provide solutions
that suit diverse and varied sets of regional needs.

25 CHIYODA GROUP Sustainability Report 2019

3. We should focus more on approaching and involving
stakeholders. We will definitely need the support of diverse stakeholders to plan and implement the type of
projects that lead the way for the society of the future.

A Future Only Chiyoda Group Can Shape,
Formed through the Development of Flexible,
Diverse Human Assets
Professor

Mr. Kenichi Takayasu Department of Economics Dokkyo University

CHIYODA Corporation announced our "Renewal Plan -Vision
for Renewal and the Future-" in May 2019, showing our longterm route toward management restructuring. We anticipate
that the three pillars of advancing sophistication in our risk
management system, evolving our EPC control strengths, andexpanding and advancing human assets will produce not only
improved financial results but also more satisfying non-financial results.
Only human assets can implement our Renewal Plan. The
employees working passionately to resolve issues are thetrue source of Chiyoda Group value creation. Even advanced
technology amounts to little unless paired with human assets.
I would like to consider the three following points regarding
human asset development. First, there is securing diversity ofideas through hiring of human assets without regard to genderor nationality. This is precisely as noted in "activities by diverse
human assets" under "Respect for Human Rights" in our
CSR Values. Second is developing human assets capable of
immediately spotting shifts in technological trends and putting
those to use in work. Both construction and operating periods
are long in the energy and environmental fields. Meanwhile,the technological revolution in AI is blindingly quick, and it is
not coming from engineering companies. Third, human assets
familiar with non-technical fields and capable of observing
long-term changes in worldwide lifestyles. For example, whatkind of ideas do you come up with when you ask yourself

about the relationships our technologies will have with babies
born this year, over the course of their lives? Imagining thepeople behind our corporate clients can provide ways to use
the technologies we possess.
In business portfolio terms, we have produced a policy thatemphasizes the global environment through solar power,
biomass, marine wind turbines, and energy management services (EMS), while incorporating steady growth of demand for
LNG, all under the umbrella of our Renewal Plan. These fields
have deep ties to the SDGs and global environmental issues.
The contents of our renewal plan are tailored to global issues
that require resolutions.
While the SDGs are not legally binding as some regulations
are, they are becoming "soft" laws which restrict activities
when violated, and it is growing more vital for companies
to emphasize their efforts to address the SDGs. This year's
Sustainability Report is our first to list contributions toward
an estimated 1.18 billion ton reduction in CO2 emissions by
2030 through our LNG and renewable energy businesses.
This should be a useful and powerful indicator for inviting ESG(Environmental, Social, and Governance) investment.
The calls increase in intensity by the day for private companies to take the lead in driving innovations to resolve societal
issues. We want to see a future that only Chiyoda Group canshape. The world has high hopes for us.

In Response to the Messages from Stakeholders
I would like to express my gratitude once again to everyone for this report and these efforts.
Understanding of the SDGs has spread fairly broadly over the last fiscal year thanks to efforts to identify materiality in SDGs items at each department. A reminder that our corporate philosophy is directly
linked to the SDGs reminds us that there is a lot we can do to contribute to resolving societal issues,and I think it gives us a view of the path we all must follow. Under our President and now CSO, and as
an engineering company, we always aim to fulfill our responsibilities toward the future with technology
and ideas. Please continue to take a broad perspective and share your opinions and ideas.

Kaoru Nakamura
General Manager
IR, PR, and CSR Department

CHIYODA GROUP Sustainability Report 2019 26

Chiyoda Corporation

Chiyoda Global Headquarters
Minato Mirai Grand Central Tower
4-6-2, Minatomirai, Nishi-ku, Yokohama 220-8765, Japan
Please direct inquiries
about this Sustainability Report to:
IR, PR & CSR Department

TEL : (81) 045-225-7741
E-mail : Chiyoda_CSR@chiyodacorp.com