CHIYODA CORPORATIONGroup CSR Report

2014
Fiscal Year Ended March 31, 2014

CHIYODA CORPORATIONGroup CSR Report 2014
Contents

Corporate Profile

Editorial Policy

Corporate Profile…………………………… 1
Editorial Policy……………………………… 2
Message from the President………………… 3

Name:
Chiyoda Corporation

The Chiyoda Group reports its CSR activities on the Chiyoda
Corporation website and in the CSR Report.

Feature:“Seize the moment, Open up new
frontiers” in Chiyoda Group BusinessFeature 1
Papua New Guinea LNG Project……………… 5
Feature 2
SPERA Hydrogen: Constructing sustainable energy
infrastructure with the City of Kawasaki……… 6Group Company Activity Highlights…………… 7
The Chiyoda Group’s CSR…………………… 9
The Chiyoda Group’s
CSR Vision in Action
CSR vision 1
A Reliable Company…………………………11
CSR vision 2
Environmental Initiatives……………………12Address:
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 (As of March 31, 2014)
Main Business Fields:
Consulting, planning, engineering, procurement, construction, commissioning(test operation), consulting and training for operation and maintenance, researchand development, technology services, and project management for plants andfacilities in fields including energy, chemicals, pharmaceuticals, biotechnology andthe environment.
Number of Major Group Companies:
29 consolidated subsidiary companies, 5 equity method associated companies

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

CSR vision 4
Respect for Human Rights……………………15

Consolidated Financial Highlights (OneYen)
3,989 Hundred Million144

Third-Party Opinion……………………………18

6,125

New Orders
4,294

Revenues

6,125 4,029

Net Income

3,130

5,899

4,294 2,353

144

Publishing Department
Compliance & CSR Unit/Group Liaison Meeting on CSR
134

80

3,130

4,029

30

80

'09

'10

'11

'12

'13

'09

'10

'11

'12

'13

'09
30

'10

'11

'12

'13
(FY)

'09

'10

'11

'12

'13

'09

'10

'11

'12

'13

'09

'10

'11

'12

'13
(FY)

Revenues by Industry (FY2013)

Revenues by Region (FY2013)■ LNG Plants

6%■ Gas & Power Utilities

17%
45%

6%
21%
17%
11% 45%
21%

Applicable Period and Date of Publication
Applicable Period: 	FY2013 (April 1, 2013 to March 31, 2014,
unless otherwise specified)
Date of Publication: August 2014

134

161

4,461
2,471 2,547 3,989

Scope of the Report
The report encompasses the CSR activities of 35 Chiyoda Group
companies (Chiyoda Corporation and 34 major Group companies),
across the board. In case a certain part of the report is specific toa group company, the names of the applicable group companies
are indicated.

Guidelines Used for ReferenceThis report is prepared with reference to the Global Reporting
Initiative’s (GRI) Sustainability Reporting Guidelines G4, theReporting Guidelines (2012 Version) of the Ministry of theEnvironment in Japan, ISO 26000, and the United Nations
Global Compact.

2,353

Compliance & CSR Unit

Website (Commitment to CSR)
http://www.chiyoda-corp.com/csr/en/index.html

161

4,461

5,899

2,471 2,547

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

CSR Report

Reporting with afocus on highlightsof activities in themost recent
fiscal year

Number of Group Employees:
6,062

CSR vision 3
Social Contributions throughBusiness Activities…………………………13

CSR vision 5
Commitment to Fairness……………………17

CSR Activity Report Policy
Detailed information related to CSR in general is covered
comprehensively on the Chiyoda website.
The Group CSR Report reports the highlights of Group CSR
activities. The content of these reports focuses on the Group
corporate philosophy and CSR vision and is determined by the Group
Liaison Meeting on CSR
The Chiyoda Group’s
in cooperation with those
CSR activities
responsible for CSR in Group
companies in Japan andWebsiteDetailed reporting
overseas.

Composition of the CSR Report
This CSR report highlights activities in the 2013 fiscal year, whichwere selected by the procedures below, and is composed of“Message from the President,” “Feature,” “Group Company Activity
Highlights,” “The Chiyoda Group’s CSR Vision in Action,” and“Third-Party Opinion.” In particular, CSR vision 5 provides anextended report on the activities relating to human rights andanti-corruption pursuant to the recommendations made in thethird-party opinions form the Group CSR Report 2013. Furthermore,in order to improve our CSR activities, we have received, and arewilling to continuously receive, objective assessments and advice
from experts.

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

Domestic
29%
Overseas
71% Domestic
29%

Overseas
71%

Reference: Chiyoda Group CSR Handbook
This handbook is a compilation of basic policies, such as the Chiyoda
Group Corporate Philosophy, CSR Vision, Code of Conduct, andCompliance Manual, which provide the guide for group employee’s
behavior pertinent to social responsibility in day-to-day work. The
handbook is distributed to all
employees as it is the starting pointof Chiyoda Group CSR activities.
It can also be downloaded fromthe Chiyoda website.

IR related documents

Fact Book

Shareholders’ Report
ANNUAL REPORTThe documents listed above can be downloaded from the website.
Home > Investor Relations
http://www.chiyoda-corp.com/ir/en/index.html
Home > About Chiyoda > Corporate Governancehttp://www.chiyoda-corp.com/company/en/corporategovernance.html

11%

1

CHIYODA CORPORATION Group CSR Report 2014

CHIYODA CORPORATION Group CSR Report 20142

Message from the President

Message from the President

Implementing the Chiyoda Group
Corporate Philosophy
Our social mission as anengineering company

Corporate philosophy
Enhance our business in aiming for harmony
between energy and the environment andcontribute to the sustainable development of asociety as an integrated engineering company
through the use of our collective wisdom andpainstakingly developed technology.

When I assumed the position of President in 2013, recognizing theuncertainty of the future, I resolved to transform Chiyoda Group into anengineering company that is worthy to exist in the times to come. In the
new Medium-Term Management Plan, our social mission is defined as“being an engineering company that uses cutting-edge technologies toprovide the infrastructure required at various times and in various
countries, and that contributes to the development of a sustainable society
through a philosophy of harmony between energy and the environment,”of which the underlying concept is common to our corporate philosophy.
With such mission in mind, I have steered the operation guided by theslogan, “Seize the moment, Open up new frontiers.”

Steady steps taken in the Medium-Term
Management Plan
In the Medium-Term Management Plan, we have defined our visionof Chiyoda Group 10 years from now as a corporate group that has(1) diversified into new business areas and enhanced the satisfactionof stakeholders; (2) deepened its contribution to local communities
in various parts of the world including emerging and developing
countries; and (3) put in place an operational frameworks andsystems for managing work globally.

3

CHIYODA CORPORATION Group CSR Report 2014

The main results after one year are as follows: (1) In the field of LNG,
we completed the LNG plant and achieved a record 65 million hours(as of the end of May 2014) without a lost time incident in Papua
New Guinea. We were awarded two major LNG projects, namely, theFreeport LNG and Cameron LNG projects in North America. In termsof new business, we have advanced into offshore and upstream
projects by forming a capital alliance with Xodus Group (Holdings)
Ltd. in Great Britain. Also, Chiyoda Group is working towards therealization of hydrogen-based society by establishing a hydrogen
supply chain that can store and transport large quantities ofhydrogen at normal temperature and pressure using a world firstcatalyst and process developed by Chiyoda. Such initiatives arehighly valued by our stakeholders, including our customers.
(2) In the countries and regions into which our business is
expanding, we have been contributing to local communities indeveloping and emerging countries by enhancing employment
opportunities, providing training to the people of such local
communities and receiving trainees in Japan.
(3) Chiyoda Business Solutions Co., Ltd. was established in April
2014 as a new company for human resource management anddevelopment, which is essential to solidifying systems to manage
work globally. As a key part of implementing the Medium-Term
Management Plan, Chiyoda Business Solutions will enhance securing
and developing diverse human resources, which is the mostimportant asset of an engineering company.
We also established the Crisis Management Unit in 2013 as a
dedicated organization to cope with the various risks involved in
globalization, and we have been reinforcing its activities since then.

Respecting the global codes and ensuring
complete complianceGroup company members, business regions and business partners
continue to diversify. A fair code that can be understood by one andall is essential. In that sense, we have continuously supported andwill continue to support the spirit of the United Nations Global
Compact (UNGC)* for human rights, labor, environment and anticorruption.
We will continue to address employees the importance of showing
this spirit in day-to-day business and other activities. We will also
work on our business partners and other parties concerned tounderstand and comply with the Chiyoda Group Code of Conduct,
which reflects the spirit of the UNGC.
We are particularly endeavoring to enhance transparency in all
Group business activities regarding compliance with Japanese andoverseas laws and regulations, international agreements, and respectfor human rights, harassment prevention, anti-corruption,
information security and the like. In order to heighten complianceawareness and adherence throughout the Group, we are expanding
existing management systems, and we have newly established
the Compliance Committee and Group Company Liaison Meetingon Compliance headed by a representative director under the directcontrol of the Executive Committee.

Chiyoda Group corporate social
responsibility (CSR) in practice
I believe Chiyoda Group’s social mission and corporate philosophy
can only be achieved when we are able to accurately assess theneeds of the times, create and offer, through the engineering, therequired solution of value to the society’s global challenges such as
poverty, environmental issues and securing resources.
In this regard, our basic stance towards communication is “tosmile to express a warm feeling and to show respect to the otherparty.” It is important that we communicate attentively withcustomers, local communities and all other stakeholders. We will
always listen with humility to our stakeholders and contribute tosociety through our business activities, which I believe is the firststep in practicing the Chiyoda Group Corporate Social Responsibility.
We will continue to proactively engage in CSR activities with the aimof being a reliable company for society.
August 2014

Shogo Shibuya
President & CEO
Chiyoda Corporation*	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 is centered on ten principles concerning human rights, labor, theenvironment and anti-corruption.

CHIYODA CORPORATION Group CSR Report 2014

4

Feature: “Seize the moment, Open up new
Feature 1

frontiers” in Chiyoda Group BusinessContributing to the Local Community

Papua New Guinea LNG Project

Approximately 2,500 people from four local villages were employedat the LNG Plant over the construction period. Furthermore, nine
young local engineers were given training
in the Chiyoda Global Headquarters,machine manufacturing companies andon construction sites. The PNG LNG
Project established a construction training
facility which provided many training
programs for Papua New Guineans.
On-site security and food catering services
were managed with the cooperation of
specialist companies in joint ventures withlocal landowner companies. Additionally,

LNG plant and loading jetty

automobiles, office furniture and equipment used on site werepurchased through local companies where possible, and commuterbuses, and on-site stores and barbershops were entrusted to local
entrepreneurs, contributing to job creation and regional businessstimulation.

Local employees with a completion certificate at the work training school

Project Summary
Chiyoda Corporation, in a joint venture with JGC Corporation, wasawarded the contract to build the LNG Plant for the PNG LNG
Project near Port Moresby, Papua New Guinea. The PNG LNG Projectis operated by ExxonMobil PNG Limited, a subsidiary of Exxon Mobil
Corporation. The PNG LNG Project is an integrated development that
includes gas production and processing facilities, onshore andoffshore pipelines and liquefaction facilities.
The Project is expected to have a strong impact on the economy of
Papua New Guinea, and it is anticipated to support GDP growth.
As roughly half of the LNG produced will be exported to Japan, theProject will also deliver a stable long-term energy resources to Japan.
While the Project faced many challenges, including limited
infrastructure and logistical challenges, the Project was completed
ahead of schedule.

Safe Construction Carried Out at theHighest Standards
The LNG Plant experienced an exceptional safety record, with 65
million hours without a lost time incident at the end of May 2014

Kitchen staffed by local residents

5Storehouses and kitchens are inspected
weeklyCHIYODA CORPORATION Group CSR Report 2014

since March 2012. The Chiyoda JGC joint venture (CJJV) has worked
closely with ExxonMobil to develop several safety programs toensure a strong safety culture on site.
With more than 11,000 people working at the LNG Plant at peak,
it was very important to maintain the health of the workforce.
Comprehensive occupational health and safety programs wereintroduced. The main areas of focus were malaria prevention by
distribution of malaria bed nets to employees, provision of insectproof work clothes, food quality control (particularly important whenserving 30,000 meals a day), establishment of clinics, and the use ofinternational emergency medical relief services.

Environmental Initiatives
The PNG LNG Project required a high level of environmental
management due to the pristine nature of Papua New Guinea. In
addition to choosing work methods that fit in with environmental
expectations, the Project introduced comprehensive waste
management plans for on-site waste processing, due to limited
waste management systems in the country. Efforts were made tohalve the amount of waste from the LNG Plant by means of crushingand compression. The Project worked to reuse materials as well,including donating materials from wooden packing cases to local
communities for use in building community centres and otherstructures.

Donating used wood materials to
local residents

Local resident collecting used wood

Feature 2

SPERA Hydrogen*: Constructing
sustainable energy infrastructure with
the City of Kawasaki*SPERA is a Latin word meaning “hope”

On March 25, 2014, TV Asahi televised a 15-minute feature programon “Hodo Station (a news show)” entitled “Looking 100 Years
Ahead: The Changing Keihin Industrial Area.” The program explained
how 100 years ago, Mr. Soichiro Asano, founder of Asano Cement,
contributed to Japanese economic growth by establishing a land
reclamation business centering on the Kawasaki coastal region. The
program looked at how even now, after 100 years has passed, thespirit of Mr. Asano continues to live on in a form that the businesses
comprising the Keihin Industrial Area which look towards the future
by building a hydrogen supply network with the support of Kawasaki
City. The core technology for this project is Chiyoda’s SPERA
hydrogen technology.
In June 2013, Chiyoda and the City of Kawasaki concluded acomprehensive cooperation agreement towards realizing a hydrogenbased society. By announcing plans for the first hydrogen supply
business in the Kawasaki coastal region, many people have come torecognize Chiyoda’s level of engagement in the Hydrogen supply
business and the viability of the project. The project has progressed
steadily as, among other activities, Chiyoda along with the City of
Kawasaki submitted a National Strategic Special Zone application to
the Cabinet Office in September 2013, and held three Hydrogen
Network Conferences with businesses in the Kawasaki coastal region
in FY2013.
The hydrogen supply business in which Chiyoda is engaged isfundamental to its CSR activities in terms of contributing to society
through its core business. It is also a unique initiative in that Chiyoda
is establishing a new public utility alongside the government andvarious other stakeholders.

Message Board at the exhibition Kawasaki International Eco-Tech Fair 2014
Signing ceremony with Kawasaki City
Left:
Shogo Shibuya, President & CEO of
Chiyoda Corporation
Center:Professor Kenichiro Ota, Specially
Appointed Professor, Head of Green
Hydrogen Research Center, Faculty ofEngineering, Yokohama National
University
Right:
Mr. Takao Abe, (then) Mayor of
Kawasaki

CHIYODA CORPORATION Group CSR Report 20146

Group Company Activity Highlights
L&T-Chiyoda Limited (L&TC)

http://www.lntchiyoda.com/

Office Relocated to Environment-friendly Building
In January 2014, L&TC decided to relocate its offices to Knowledge City as the office in B. P. Estate in Vadodara
had deteriorated to the point that its structure became unstable, which raised concerns about safety of
employees and facilities.
Knowledge City, which is the location of the new office, is working towards becoming carbon positive byabsorbing more CO2 than it emits. It is an area with lots of plants, and there are ducks living in small ponds
nearby. Initiatives to conserve water are being carried out, including storing rainwater, and reusing processeddrainage water for gardening and more. Waste is also being entirely eliminated, and solar generated power isused for external lighting.

Garbage composter

Chiyoda Philippines Corporation (CPh)Chiyoda Almana Engineering LLC (Chiyoda Almana)

Chiyoda Almana implemented donation activities to support victims of Typhoon Haiyan, which caused massive
damage to the Philippine islands in November 2013. Many people from the Philippines work for Chiyoda
Almana, and, in order to show sympathy and support for the victims, the Fund-raising activities carried out by
the employees raised a total of 250,000 Philippine Pesos (approximately 550,000 yen), which was donated to
the NPO ABS-CBN Foundation, Inc. (Sagip Kapamilya). From this activity, we again recognized the importanceof making social connections and contributions. (Also related articles on P13).
Donation Certificate

http://chiyodaphil.com.ph/

Chiyoda Kosho Co., Ltd. (CKS)

Support, Share and Supply for Elementary School Students

In Japan, industrial waste disposal manifests are published in either paper form or in electronic form (electronic
manifests), and the government has been urging companies to switch over to electronic manifests. CKS has
been moving towards the full-use of electronic manifests, and in FY2013 the company has made its publishedforms 100% electronic. As a waste disposal business, CKS has approximately 40 industrial waste processing
sites, approximately 150 contracts, and has published approximately 600 manifests. The in-house Quality
Assurance Department checks the details of all cases (jobs), provides guidance for each location and contract,and cooperates with on-site staff.

http://www.cst.chiyoda.co.jp/english/

EPM User Seminar Held

Chiyoda (Thailand) Limited (CTL)

Working with Universities, Local Government and Local
Communities on Regional Development

As projects become more large-scale, and the implementation of joint ventures and other complex projects
is required, a major issue that has emerged in recent years is understanding the situation by visualizing the
project status. CST is meeting such industry needs by supporting customer to visualize the project status byusing the project management tool called Primavera. User seminars, which CST holds every year, receive afavorable review from many customers. The seminar in 2013 was entitled “Develop a competitive system inthe midst of globalization” and it introduced systems development and solutions that use international
community-leading packages.

Chiyoda Singapore (PTE) Limited (CSL)

Between May 4 and May 6, 2013, CTL participated for the first time in a work camp called Bangkok University
Work Camp (BUWC), an initiative led by graduates of Bangkok University, which supports local elementary
schools in Thailand. BUWC has been implementing this activity every year for more than 30 years. Also CTL
made a contribution for the cost of construction for volleyball courts and water storage tanks at schools in
Buriram province (northeastern Thailand). CTL, BUWC, local government and local citizens all worked together
on this construction. Chairs and tables were also donated.

http://www.chiyoda.com.sg/

42 Annual Dinner and Dance Party Heldnd

CSL, a leading company in the Singapore EPC industry, holds a dinner and dance party called“Mambo Jambo” every year in order to thank its employees. 450 specially designed cups werepurchased from ARTS@Metta as souvenirs for those who attended the party. ARTS@Metta, which isoperated by the Metta Welfare Association, donates challenged people the proceeds from handicraft
sales. CSL continues to highlight the importance of contributing to local communities, and this smallsocial contribution will provide definite support for challenged people.

Arrowhead International Corporation (AIC)

http://www.arrowhead.co.jp/

Implementation of UNICEF Foreign Coin
Fund-raising Activity
AIC cooperated with the United Nations Children’s Fund to participate in a foreign coin Fund-raising activity
between November 25 and December 10, 2013 on behalf of the Chiyoda Group. By collecting unused coinsfrom the desks of employees, this Fund-raising activity helps to save the lives of children in poverty-stricken
developing countries, creates opportunities for education, and allows young people with hopes and dreams tocontribute to society. In total, the foreign coins and bills collected in this activity reached a weight of 46kg,
valued more than $1,000. We will continue to make such social contributions.

7

CHIYODA CORPORATION Group CSR Report 2014

http://www.cks-ykh.co.jp/

Industrial Waste Disposal Manifests Become
100% Electronic

CPh is working hard to promote social welfare, and in 2013, it donated bags, stationery and other schoolsupplies to students at Amado T. Reyes Elementary School as part of a “Support, Share and Supply” program,which aims to provide elementary school students with an enjoyable education. The objective of this initiative
is to reach out to children who want to learn but cannot afford the necessary tools to do so.
The management level of the company cooperate extensively in this initiative almost every year by appealing
not only to those within the company but also to all Chiyoda Group companies for donations of pencils,
notepads, coloring books, color pencils, ballpoint pens and bags.

Chiyoda System Technologies Corporation (CST)

http://www.chiyoda-almana.com/

Activities to Support Victims of Typhoon Haiyan

Chiyoda TechnoAce Co., Ltd. (CTA)

http://www.cta.chiyoda.co.jp/en_corporate.html

Exhibition at Interphex Japan 2013
Jointly with Chiyoda’s Pharmaceutical Project Section, CTA exhibited at Interphex Japan 2013, the world’s
leading technology exhibition for the display of various kinds of equipment, systems and technology for the
production and research and development of pharmaceuticals, cosmetics and the like. By means of thisexhibit, CTA communicated the activities and technical strengths of the Chiyoda Group in connection to thepharmaceuticals industry. Approximately 800 people, primarily pharmaceutical company representatives, visited
the Chiyoda Group exhibit stand, which enabled CTA to proactively exchange ideas and acquire information
about developing and contributing to the field of medicine.

Chiyoda Malaysia Sdn. Bhd. (CMSB)

http://www.chiyoda.com.my/

Implementing a Blood Donation Campaign
On June 5, 2013, CMSB carried out a blood donation campaign in the lobby of the building where the office islocated. As well as providing an opportunity for employees to participate in a volunteer activity, this campaign
will have a positive long-term effect as it brought the importance and necessity of donating blood to theattention of the Malaysian people. CMSB hopes that other nongovernment organizations will also carry out
blood donation campaigns so that the blood bank will have a sufficient supply of blood throughout the year tohelp those in need.

CHIYODA CORPORATION Group CSR Report 2014

8

The Chiyoda Group’s CSR
Our Mission

Chiyoda Group
Corporate Philosophy

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

Our Values Chiyoda Group CSR Visions
As an integrated engineering company, the Chiyoda Group pledges tocontribute to the sustainable development of society through its businessactivities, and to constantly strive to increase corporate value and earn
the trust and understanding of all stakeholders by adhering to thefollowing principles.

ISO 26000
Core Subjects

UN Global Compact

Consumer(customer) issues−

CSR vision 2 Environmental Initiatives

Principle 7:	Businesses should support a precautionary
approach to environmental challenges;

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.

Principle 8:	undertake initiatives to promote greater
environmental responsibility; andCSR vision 3	Social Contributions throughBusiness Activities
Through our engineering business in Japan and overseas, we
contribute to local communities in ways including humanresources development, technology transfer andenvironmental protection.

The environment

Principle 9:	encourage the development and diffusion ofenvironmentally friendly technologies.

Community
involvement anddevelopment−

Human rights
Labor 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 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.

CSR vision 4	Respect for Human Rights
We are dedicated to respecting the human rights of all
people. We will create a corporate culture where thediversity, individuality and character of employees arerespected, where people are motivated to do their best,and of which employees and their families are proud.

CSR vision 5	Commitment to Fairness
We are dedicated to achieving even greater transparency
and stability by conducting our operations fairly inaccordance with the highest ethical standards.

Compliance Reinforcement Plan Established
In order for the Chiyoda Group to aim for sustainable business expansion and enhance its corporate value as a global company, theChiyoda Group requires each and every employee to comply with domestic and relevant international laws and regulations, and to workin line with Chiyoda Group business ethics. In recent years, as greater demands for compliance are being made by the global community,
which includes Chiyoda’s partners, a Compliance Reinforcement Plan was established by the Executive Committee, and activities are being
carried out in line with the established annual plan. (Please see “CSR vision 5” on page 17 for details)

Compliance with International Guidelines

CSR vision 1 A Reliable Company
We strive to be a reliable company to our customers andother business partners by providing world-classtechnologies and knowledge.

Point of Initiatives in FY2013

Organizational
governanceFair operating
practices

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

Action Policies

Activity report
pages

Activities in FY2013◦Provide industrial plants that earn customer trust
through engineering of outstanding quality◦Share our CSR principles with suppliers and otherbusiness partners◦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◦Develop and provide environmentally friendly energy
and conservation technologies◦Conduct business activities that contribute toenvironmental conservation◦Continuing research and development for a low-carbon society(energy conservation/ effective utilization of CO2)
◦Promotion of business development towards a hydrogen-based society◦Expansion and promotion of renewable energy◦Execution of projects that consider environmental conservation◦Implementation of biodiversity preservation activities◦Contribute to society through integrated engineeringbusiness activities◦Enhance social contribution activities by providing
knowledge and labor◦Promotion and support of culture in the community◦Contribution to local economic development and humanresource development◦Tie-ups and cooperation with educational institutions to
educate the next generation◦Response to the Great East Japan Earthquake◦Support for other major disasters◦Create a lively and energetic working environment andhelp employees develop their talents◦Instill in everyone involved that safety is a core value◦Creation of pleasant work environments◦Establishment and enforcement of a safety culture◦Enhancement of human resource development systems◦Establishment of crisis management systems◦Conduct business activities based on strict complianceand a high degree of transparency◦Conduct a thorough risk management program◦Compliance Reinforcement Plan and Group Company
Liaison Meeting on Compliance established◦Continuous compliance training and auditing◦Promotion for better understanding of UN Global Compact◦Thorough awareness of export controls◦Enhanced awareness of information security

P5, 6
P7 (CST)
P8 (CTA)P11

P5, 6
P7 (L&TC)
P8 (CKS)
P12, 14P6P7 (CPh, AIC)
P8 (CTL, Chiyoda
Almana, CMSB)
P13, 14

P5, P7 (CSL)
P15, 16

P17, 18

Basis of Our Actions
Code of Conduct of the Chiyoda Group
Chiyoda Group Compliance Manual(Emproyee’s Practical Guide)9

CHIYODA CORPORATION Group CSR Report 2014

Details of these philosophies, visions and guidelines can be viewed on the Chiyoda website.

http://www.chiyoda-corp.com/company/en/policy/index.html
CHIYODA CORPORATION Group CSR Report 201410

1

CSR visionWeb

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

CHIYODA Vision 1

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

SearchA Reliable Company

2

CSR vision

Negishi receiving terminal for Tokyo Gas(diagram below ★)Completion Construction site

ClientCapacity

Under❶
construction

Ibaraki (Hitachi)

Tokyo Gas Co., Ltd.

LNG 230,000kL
LPG 50,000kL

❷

Under
construction

Fukuoka(Hibikinada)

Hibiki LNG Co. Ltd.

LNG 180,000kL x 2

❸

2013

Niigata (Naoetsu)

INPEX CORPORATIONLNG 180,000kL x 2

❹

2013

Ehime (Namikata)

❺

2013

Niigata (Joetsu)

❻

2013

Okayama(Kurashiki)

JOGMEC (*)

LPG 400,000t

❼

2013

Okayama(Mizushima)

Mizushima LNG Co. Ltd.

LNG 160,000kL

JOGMEC (*)

LPG 450,000t

Chubu Electric Power Co. Inc. LNG 180,000kL x 3

Completion of INPEX CORPORATION Naoetsu LNG Terminal

CHIYODA Vision 2

SearchEnvironmental Initiatives

Test equipment installed at the Kawasaki Plant of
JX Nippon Oil & Energy Corporation*	Inorganic membrane for gas separation: membrane forgas separation made from inorganic material

Chiyoda Wins the GSC Encouragement Award forDeveloping a High-Efficiency Synthetic Gas Production
Process Using CO2
The GSC Award is conferred by the Green & Sustainable Chemistry Network (GSCN) for
achievements that contribute to the promotion of Green & Sustainable Chemistry (GSC), i.e.
environmentally friendly and people-friendly chemical technologies and chemicals that support
the development of a sustainable society. The GSC Encouragement Award is conferred forachievements that are expected to make future contributions.
The award-winning technology, with the newly developed catalyst, produces synthetic gas
with greater efficiency than conventional reforming technology* that produces synthetic gas
from natural gas. When carbon is deposited on catalyst surface that will cause catalyst
deactivation. But this new catalyst has characteristics of hardly making carbon deposit on its
surface and as a result, it makes possible not only to reduce CO2 emission due to reduced
energy consumption but also to downsize the facilities, which lead to resource saving.

Commemorative photograph at the awards ceremony*	Reforming technology: technology that producessynthetic gas composed of hydrogen and carbon
monoxide by reacting hydrocarbon with steam andcarbon dioxide.

Inauguration of Next-generation Concentrated Solar
Power Demonstration Plant

Naoetsu LNG receiving terminal

Japan Oil, Gas and Metals National Corporation (JOGMEC*)
Completion of the Namikata National LPG Stockpiling
Terminal
The Namikata national LPG stockpiling terminal was completed in March 2013 as a part ofthe strategic system to provide national LPG stockpiles.
Three huge tunnels (2 lines of 26m wide, 30m high, 485m long and 1 line of 26m wide,
30m high, 430m long) were constructed at the base at a distance of 150m and 180m below
ground with the technology to store LPG by means of underground water pressure.
Construction took more than ten years, and Chiyoda played a major role in the installationof facilities.

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

The chemical industry uses more energy than any other industry. Approximately 40% of thechemical plant’s energy is consumed in the distillation processes of separation and refinement.
As an innovative technology to save energy, Chiyoda has participated in a project lead by
the New Energy and Industrial Technology Development Organization (NEDO) to develop an
inorganic membrane* for gas separation.
An application of the newly developed inorganic membrane to separate water from a
mixture of water and isopropyl alcohol coupled with the conventional distillation process
enables more than 50% reduction of energy use compared to the separation simply by
distillation.

Major LNG/LPG receiving terminals in Japan undertaken by Chiyoda in recent years

In December 2013, the “Naoetsu LNG receiving terminal,” which is the first INPEX LNG
receiving terminal, was completed. This terminal handling capacity can supply approximately
1.5 million tons of LNG per year, which is equivalent to the annual natural gas consumption of
approximately 5 million households.
Chiyoda was involved from the initial stages of planning of this terminal, and carried out
construction, test operations and performance test operation for the main plant facilities at
the terminal over a period of more than four years.

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

The Development of an Inorganic Membrane for Gas
Separation that Enables Reduction of Energy Used in
the Distillation Process by More than 50%

Initiatives for a Stable Energy Supply
Ever since its establishment, Chiyoda has taken part in planning, designing and implementing
many national oil stockpiling projects. Chiyoda is also endeavoring to introduce clean energy
as it emphasizes the harmony between energy and the environment, and the company istrusted by its many customers with the construction of numerous LNG (Liquefied Natural Gas)
receiving terminals and LPG (Liquefied Petroleum Gas) receiving terminals.
As for LNG receiving terminals, Chiyoda has constructed more than 60 receiving terminals
in Japan, including the Negishi receiving terminal for Tokyo Gas in 1969, the Sodegaura
terminal (1973) and the Ogishima terminal (1993).
Since the Great East Japan Earthquake, LNG has been highlighted as a clean energy with low
CO2 emissions, and it is expected that demand will continue to increase from now on. Chiyoda
will, fully utilizing its unparalleled design and construction capabilities, continue to work on theconstruction of safe and high quality LNG receiving terminals.

Web

Chiyoda has been jointly working with Archimede Solar Energy (Italy) to construct ademonstration plant to test the next-generation solar power generation system in Massa
Martana, Italy. The grand completion ceremony was held on July 3, 2013 with more than 500
participants from all over the world, including government officials from both Italy and Japan.
The concepts for the technologies to be demonstrated at the plant were newly developed by
the govenment-operated Italian research institution ENEA, which provided the Chiyoda Group
with an ideal opportunity to show the world that it has the engineering technology to realize
such concepts.

Voice

Namikata
terminal

Under the ground

MSPT-CSP (Molten Salt Parabolic Trough Concentrated
Solar Power) Demonstration Plant

Manager’s Remarks
Though only three technologies have been showcased above, Chiyoda is engaged in a wider range of technology development,from the existing hydrocarbon fields to non-hydrocarbon fields, including renewable energies.
The company’s philosophy of “harmony between energy and the environment” is the principle behind our technology development.
As an engineering company, Chiyoda is selectively adopting new technologies that are available and we are working diligently to develop
technologies maintaining a strong footing on our core expertise. We also strive to make a contribution to the society through ourtechnological capabilities by focusing on those that are required by society.

Makoto Yasui
General Manager, Technology Development Unit

11

CHIYODA CORPORATION Group CSR Report 2014

CHIYODA CORPORATION Group CSR Report 201412

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CSR visionWeb

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

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

CHIYODA Vision 3

SearchWeb

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

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

Social Contributions through Business Activities
Reforestation Activities

Typhoon Haiyan directly struck central Philippines on November 8, 2013, causing extensive anddevastating damage. The Chiyoda Group in cooperation with Chiyoda Philippines Corporation(CPh) has made a donation of approximately 8 million yen in total with the hope that thecountry will recover as soon as possible.
Overseas group companies have also made their own donations respectively in terms ofmaterials, monetary donations and the like. For example, Chiyoda Singapore (PTE) Limited (CSL)
immediately started volunteer contribution activities, and gathered 42 boxes of clothes andcanned and preserved foods within a period of approximately three weeks, which they sent to
the Philippines with the help of local distributors. A donation of 16,300 Singapore Dollars(approximately 1.33 million yen) was also made through CPh to Philippine Red Cross. (Alsofeatured on P8)

As a part of restoration activities following the Great East Japan Earthquake, we are cooperating
for such activities as tree thinning and planting activities in the areas damaged by bushfires due
to tsunami in Kamaishi and Otsuchi.
There are steep mountain slopes approaching close to the coast in this region. There wasunhindered nature where “Itoyo” (three-spined stickleback), which is a protected species inJapan, lives in the rivers that flow from these mountains and the natural phenomenon of
salmon swimming upstream unhindered used to occur in the fall, but the ecosystem is now ina critical state as piles of debris have accumulated in the river due to the tsunami. Even after
private volunteers and others cooperated to remove the debris, the forests damaged bybushfires could result in landslides from the steep mountains flowing into the sea via the rivers
if left unchecked.
Chiyoda Group called for volunteers from among its employees, and, with guidance from theKamaishi Regional Forest Cooperative, which is responsible for developing and maintaining
local forests, they worked on such activities as re-planting bushfire sites and thinning mountain
forests. Chiyoda will continue to cooperate towards regenerating forests and conserving natureand the ecosystem in this region.

Lecturing at KEISOSHIKAI(Instrument Engineers Association)
In response to an invitation from KEISOSHIKAI, members of that association, who weredispatched from Chiyoda System Technologies, provided lectures at the study seminar.
KEISOSHIKAI was established in March 1997 as an association with the aim of developing
instrumentation technology and contributing to enhancement of its social position throughexchanging knowledge and deepening friendship among the member instrument engineers.
In 2013, study seminars took place at three locations (Sendai, Hiroshima and Takamatsu) on
the theme “The present and the future of design for plant instrumentation work,” in which
lecturers talked about the present situation and troubles vs. measures on the overseas
instrumentation work including their personal experiences. Participants said that it was very
interesting, and that they learned something new.

Right: Kazuhisa Yanagihara, President of CPh (then) anda check for Philippine Red Cross

SearchCSR vision 3 Social Contributions through Business Activities

Donations for Typhoon Haiyan in the Philippines

CSL Internal Bulletin Poster

CHIYODA Vision 3

Without thinning“Itoyo” (three-spined stickleback)Mountain surface damaged by bushfires

With thinningImpactImpactofofrainfall
rainfall(large)(large)SSuu
rfrafaceceff(l(ala loloww
rgrgee))ImpactImpactofofrainfall
rainfall(small)(small)Permeation
Permeationamountamount(small)(small)Permeation
Permeationamountamount(large)(large)SSuu
rfrafacece
flfolo(s(msm ww
aallll))Unless thinning iscarried out, notgrowing underbrushthen the capacity
for water retention
reduces, whichcauses landslides
Working on steep slopes

KEISOSHIKAI study seminar

Other Activities Implemented in FY2013(Including domestic Group companies)

Inviting Vision-impaired People to a Japan Philharmonic
Orchestra Concert
Continuing on from the previous year, Chiyoda invited 50 people in 25 pairs from the Yokohama
Blind Association to a concert of the Japan Philharmonic Orchestra at Yokohama Minato Mirai
Hall on December 26, 2013. 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 attended the presentation ceremony on behalf of those invited. “The hall seemed to
become smaller as the concert was so powerful and produced images in our minds,” said theManaging Director. “Such opportunities to enjoy sounds are extremely precious to those who
cannot see, so we were very happy. We would much appreciate it if Chiyoda would continue
the same activities.”

ImpactImpactofofrainfall
rainfall
ImpactImpactofofrainfall
rainfallCooperationof educators)(large)(large) for university education activities (dispatch(small)(small)Suu
Training for Sinterns
rfrafaSSuu
rfrafaecef fVisiting seminars c(including
non-internship workplace tours)cece(l(ala loloww
flfoloCommunity cleanuprgrcampaigns
gee
(s(m
sm ww
))
aallllFood aid activity))
Disaster area support
Contribution to the NPO
Presentation ceremony for the certificate of appreciation
Left: Ms. Hiroe Haga, Managing Director of the Yokohama
City Council of Social Welfare
Right: Katsutoshi Kimura, Senior Vice President of
Chiyoda Corporation

In-House Sale of Goods Made by Challenged People(Heart-made Sale)

Comments from a Stakeholder

Ryo Shibata
Scene from the Heart-made sale of goods

CHIYODA CORPORATION Group CSR Report 2014

Voice

After work

An exchange of ideas made during field survey of Otsuchi by an economic organization two years ago gave me the opportunity tocoordinate on-site activities for Chiyoda in cooperation with the local travel agency Northern Iwate Travel Service, Inc. A key feature of
Chiyoda’s activities is that a deep understanding of regional and social issues is obtained through participants interacting and studying
with the receiving organization for themselves, so that the actual activities are carried out with a high level of awareness of the issues
and a sense of ownership. In the activities with the Kamaishi Regional Forest Cooperative, the receiving organization was highly
appreciative of the teamwork onsite, the improvement in volunteer work efficiency, and the high level of safety awareness, which is
unique to a plant engineering company like Chiyoda. Also, the activities are not of transient nature, as the participants, after they once
finish, continue to take action which leads to an increased awareness of the receiving organizations and other new activities. As thecoordinator, I was glad to hear the local organizations say that they want Chiyoda to come again.

A sale of cookies, cakes, puddings, and handicrafts made at community workshops bychallenged people has been taking place every other month since March 2013 in cooperation
with the Yokohama City Council of Social Welfare. These sales, which take place at Chiyoda
Global Headquarters, are very popular and confectionaries are sold out every time within 30
minutes. Confectionaries ordered from Heart-made catalogs were distributed as mementos for
Chiyoda’s Family Day held in August.
The proceeds are used to support the people who made the items.

13

Permeation
Permeationamountamount(small)(small)21 people
42 people
202 people
Total of 13 people
Provide to TABLE FOR TWO  Total of 1,693 meals
73 people◦Second Harvest Japan◦Implementation of Central Community
Chest of Japan (Red Feather Campaign)
Permeation
Permeationamountamount(large)(large)Project Associate Professor
National University Corporation Iwate University
Iwate University Headquarters for Promotion of Sanriku Region Recovery
CHIYODA CORPORATION Group CSR Report 201414

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CSR visionWeb

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

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

CHIYODA Vision 4

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

CHIYODA Vision 4

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

Respect for Human Rights
Creating a Sense of Unity with Local Citizens

Recently, the security situations worldwide are changing more quickly than ever before, andmost Japanese companies, not only Chiyoda, are stressing the importance of risk management,
which includes gathering and analyzing security related information in the countries where they
engage in business, and establishing security counter-measures based on the analysis. However,Japan is far behind Europe and the United States in terms of initiatives and efforts in this field.
Based on the above recognition, on April 1, 2013, Chiyoda established the Crisis
Management Unit as a special department to deal with risk management, primarily indangerous overseas areas. With the basic philosophy, “human life comes first,” the unit
undertakes such main activities as shown on the right.
Gathering risk information, analyzing the information and security counter-measures to betaken based on the analysis are of particular importance. Risk information, such as the
movement of terrorist organizations and criminal organizations, and information about elections
and the political situation of the respective countries, is gathered from security consultants in
Europe and the Unites States, the Ministry of Foreign Affairs, Japanese Embassies in various
countries, the U.S. Department of State, and others. Counter-measures are assessed andimplemented by the Crisis Management Unit, as necessary.
During the coup d’etat in Thailand in May 2014, we gathered multi-faceted information fromon-site employees, Embassy of Japan in Thailand, and security consultants in the U.S. andEurope. We used this information to analyze the situation. Based on the results of the analysis,
we promptly provided employees stationed in Thailand and employees going on business trips
with specific and localized cautionary notes, such as traveling and moving restrictions. In
addition to such measures, we provide training prior to overseas assignments to employees
traveling and relocating to the locations that are particularly dangerous.
It is extremely difficult to timely gather and analyze information about the risks and to link
such analysis to specific counter-measures, but a system is in place so that the Crisis
Management Unit can call on external specialists for their advice at any time.
Until now, counter-measures at construction sites in particularly dangerous regions, such as
Iraq, have been prioritized. From now on, however, activities will be expanded to include a
review of safety measures and so on at our business locations around the world in addition to
the construction sites in dangerous areas.

In order to create a sense of unity between group employees and local citizens, the Chiyoda
Portable Shrine (Chiyoda O-mikoshi) was entered for the first time into the Minato Mirai 21
event “Sakura Festa 2014” on April 5, 2014. The Chiyoda blue O-mikoshi looked great as it was
carried down the street lined with cherry trees in full bloom by Chiyoda Group employees, theirfamilies and local residents. This activity has helped to foster a sense of unity with local citizens.

Practicing how to deal with crises in dangerous areas

Main Responsibilities of the
Crisis Management Unit
■Internal training activities for crisis
management awareness (training prior
to overseas assignment)■Gathering and analyzing risk
information■Developing and updating the crisis
management manual (manual for crisis
prevention/counter-measures)■Understanding the situation of thosedispatched overseas and thecommunication network with them
■Risk pre-investigations in specificcountries, determination of pros andcons for dispatching staff to specificcountries, risk verification in specificcountries, etc.
■Gathering information about crisis
management in general, andexchanging information with relatedorganizations, etc.

Employees carry the Chiyoda O-mikoshi withlocal residents

Establishing a Safety Culture Through Supervisor Training
Chiyoda’s Basic Pilicy for Safety, Quality and Environment (SQE) declares that every accident ispreventable, and so safety management activities are being carried out daily in construction
sites in order to achieve this. Strong leadership from managing supervisors at Chiyoda and atcooperating companies of primary contracts level is essential to the success of these activities.
We also have to share the Chiyoda philosophy on safety culture with managing supervisors inorder to heighten their attention to safety.
Following instructions from senior management, BST (a safety consulting company from theUnited States) was invited to hold a series of seminars five times under the title of “Leadership
Training” in 2013 for staff in member companies of the Chiyoda construction cooperative. Also,in order to raise safety awareness and strengthen the leadership of management, which isessential to creating a safety culture in our company, a research fellow from Mitsubishi ResearchInstitute addressed senior managers with a lecture entitled “Reviewing successful 21st century
business management from a safety viewpoint.”

The important thing in crisis management is to assume the worst-case scenario and to think, “This kind of event could happen,” and toprepare for that scenario. However, in our daily activities and business, we cannot normally think solely about hypothetical situations.
That’s why we need specialist departments that regularly gather and analyze information and promote systems for emergency situations.
The Crisis Management Unit handles this role for Chiyoda Corporation, and I have been working with them since October 2013.
If Japanese people fall behind Europeans and Americans in terms of crisis management, I think it’s in the area of knowing what to dofor oneself, as I feel that Japanese people are remarkably unaware in this regard. Customers, partner companies and governments cannot
always ensure our safety. Ultimately, we have to ensure our own safety. The major theme for the Crisis Management Unit is creating anawareness of this fact throughout the company.

Crisis Management Unit
International Political Analyst and International Journalist

CHIYODA CORPORATION Group CSR Report 2014

Management personnel listening attentively tothe safety lecture

C-SAFE Program Development
Our proprietary C-SAFE Program has been newly developed as a program for safety
management. It will be implemented in stages in overseas projects.
By analyzing the results of major accidents at Chiyoda in the past and exposing the common
causes, this safety program aims to maximize the effects of preventive measures. As well as
playing a prominent role as an applied management program within management systems, thisprogram will contribute to an increased awareness of safety and will reinforce the culture ofsafety, as the progressive design of this program is built on behavioral science-based safety
management. The effective use of this program will also improve management systems.

Comments from an Advisor

Izuru Sugawara

SearchCSR vision 4 Respect for Human Rights

Crisis Management Initiatives for Overseas Projects

Voice

15

Web

Documents used in the C-SAFE Program

International Women’s Day
International Women’s Day is a time to celebrate acts of courage and determination by women
who, calling for changes in society, have played an extraordinary role in the history of theircountries and communities.
Countries with more gender equality are said to have better economic growth, andcompanies with more women leaders are said to perform better.
L&T-Chiyoda Limited celebrated International Women’s Day on March 8, 2014, in order toexpress its great affection and respect for women employees and to encourage them to aim forleading positions in the company by building up a track record.

Commemorative photograph of women employees

CHIYODA CORPORATION Group CSR Report 201416

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CSR visionWeb

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

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

CHIYODA Vision 5

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

Training Conducted by Chiyoda Corporation / Reports to
the Consultation and Reporting Hotline in FY2013

In recent years, much stronger attitudes of the parties concerned towards emphasizing
compliance are becoming noticeable when we carry out overseas projects with major clientsand partners. Under the circumstances, we have strengthened our compliance systems by
establishing the Compliance Committee, which is directly managed by the Executive Committee,
with the purpose of raising awareness and reinforcing promotion systems for compliance witha focus on global measures, including the prevention of anti-corruption practices.
We have also established the Group Company Liaison Meeting on Compliance with the
purpose of enhancing a compliance system for the entire Group. This Liaison Meeting is raisingcompliance awareness in all Group companies in Japan and overseas.

Chiyoda Corporation is hosting a wide range of training programs for its management and staff.
●Compliance
Pre-assignment training for site managers of field offices
Pre-assignment training for overseas assignments
Raising awareness of quasi governmental officials
New employee training

Harassment seminar
UN Global Compact seminar
Companywide directives (reminders)Companywide directives (export control directives)
Export control general training

With the increase in global compliance risks, such as bribery for foreign government officials,
human rights issues and the like, employees taking up new overseas assignments are given
pre-assignment training with an emphasis on the risks associated with overseas assignments.
We also continue to regularly audit the adherence situation to such important domestic laws,
to which observance we have always emphasized, as the Anti-Trust Act (to prevent bid rigging),
Construction Industry Act, and the Subcontract Act.

●CSR Training
New employee training
Training for mid-career hires

Pre-assignment training for site managers of field offices

Pre-assignment training for overseas assignments

Many companies have established internal reporting hotlines. If a company’s unfair practices are found out by governmental agencies
and the mass media, sanctions and penalties will be imposed, and the company will be denounced by society as one that has violated
the law, which will eliminate society’s trust in the company. The information from internal reporting hotlines can prevent and stamp out
unfair practices and inappropriate conduct within the company in advance. The hotlines can be a form of risk management, as theyminimize the damage to be suffered by the company. In addition to the internal reporting hotline, Chiyoda has established the external
consultation hotline for the sake of those for whom consultation within the company is difficult, and for those who do not know who toconsult, among others. As a kind of neutral third party, the external consultation hotline deals with cases of individual reports.

Tomoo Kugisawa, Corporate Lawyer
CHIYODA CORPORATION Group CSR Report 2014355 participants
92 participants●Reports to the Consultation and Reporting Hotline
Reports related to workplace improvements
Reports related to compliance with workplace rules
Requests for reminders
Other

5
1
0
1

113 participants
26 participants

Third-Party Opinion

Comments from a Corporate Lawyer

Tokyo Fuji Law Office

4 times
6 times

Information security general training
Management training

UN Global Compact seminar

Information Security

Voice●Information Security
17 locations
4 times
1 time88 participants(management members)
126 participants
2 times●Export Control

Continuous Compliance Training and Auditing

In recognition of the fact that Chiyoda handles important information assets of clientsworldwide, we continue to raise the awareness of all employees with regard to the importanceof information security.
We have ensured response to risk that is newly-recognized since 2013 by implementing
training for prospective employees of new graduates specifically on the points of caution whenusing SNS in order that the company’s credibility is not damaged due to careless writing onsocial network sites or elsewhere.
Also, in order to raise the awareness of managers regarding information security, managers
were provided with training on the subjects “current state of company information leakage,”and “mechanisms where illegality occurs.” The training was implemented by a lawyer who iswell versed in this field.

SearchCSR vision 5 Commitment to Fairness

Compliance System Reinforcement and Designing
Improvement Measures

Chiyoda Group has always maintained internal regulations that comply with Foreign Exchange
laws, and we have an export control-related system to prevent illegal exports againstinternational security. We carry out continuous training and internal inspections for departments
handling overseas businesses in order to provide a complete awareness of export control in linewith international security. We are working hard to ensure that such awareness reaches every
corner of the company.

CHIYODA Vision 5

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

Commitment to Fairness

Complete Awareness of Export Control

17

Web

The environment surrounding energy supply and demand situation has been undergoing dramatic changes
for the recent years mainly due to the so-called shale gas revolution and the political instability in theregions around Russia and the Middle East. The current environment is also urging the Chiyoda Group to
take swift and timely steering of its operation. I believe that securing and supplying stable energy resources
will continue to be a major social issue for Japan for some time, and that society would expect to see suchstances of companies as striving to work towards resolving these issues through their core business.
The two projects featured in this report are highly regarded for creating shared value between thecompany and society. In addition, an announcement was made most recently regarding Chiyoda’s
participation in the construction of LNG-related facilities in the United States and Canada. Furthermore,
initiatives towards supporting the construction of energy infrastructure in emerging countries are also
noticeable as “forward-thinking CSR.”
On the other hand, however, business risks are increasing due to the locations of construction andmaintenance-related businesses to be in areas of high risk in environmental and social terms. In this regard,
environmental considerations and human rights considerations are essential for individual cases such as the“Papua New Guinea LNG Project” introduced in this report. I would like to see more detailed information in
the future about such initiatives and their results in particular. Many cases of community involvement anddevelopment activities are provided in the “Group Company Activity Highlights” and “Social Contributions
through Business Activities” sections. I would also like to see “protective CSR” activities being disclosed forspecific cases. In terms of “Respect for Human Rights” and “Commitment to Fairness,” the report, including
the Message from the President, clarifies the policy and introduces measures for strengthening and fully
ensuring compliance, which includes respecting human rights and working against corruption. I would
suggest that these features are more fully expanded in the future, and in particular, measures being taken
to respect human rights must be specified to the related parties outside, as well as to employees.
The CSR Report has become more compact, as detailed information is now comprehensively disclosed on
the website. However, based on my above comments, I would like to request that each item be disclosed as
fully as possible as a sequence comprising the Policies, Practices and Performance.

Eiichiro AdachiCounselor
The Japan Research Institute, Limited
After graduating from Hitotsubashi
University in 1986, Mr. Adachi joined theJapan Research Institute, Limited (JRI)in 1990. He is currently Counselor at
JRI after previously serving in theManagement Consulting Department
and Technology Research Department.
He specializes in industrial researchand corporate assessment from thestandpoint of CSR. He has also worked
as a member of the Japanese experts
for ISO26000 standard working group(March 2005 through May 2009). Noted
publications that he has authored or
co-authored include CSR Management
and SRI (Kinzai, 2004), Businesses thatGrow with Global Warming (Toyo Keizai
Inc., 2007) and Introduction toEnvironmental Management (Nikkei
Publishing Inc., 2009).

CHIYODA CORPORATION Group CSR Report 201418

We contribute to realizing the harmony in developing asustainable society and conserving the global environment
through the combined efforts of our group companies withthe engineering expertise.
Chiyoda’s Global Network (Major Overseas Subsidiaries and Offices as of March 31, 2014)■ Xodus Group (Holdings) Ltd.
■ Milan Representative Office■ L&T-Chiyoda Limited■ Bangalore Office■ Sales Base
■ Engineering Center■ Procurement Center■ Chiyoda (Thailand) Limited■ Chiyoda Corporation
Netherlands B.V.

■ Project Execution Base
■ Operation Support■ Chiyoda & Public Works Co., Ltd.
■ Korea Representative OfficeUK
The Netherlands
Korea

Italy
Saudi Arabia
Qatar
UAE

Japan

China

Chiyoda Global Headquarters

MyanmarThailandPhilippines
Malaysia
Singapore

India

Indonesia

USA■ Beijing Office■ Chiyoda Corporation (Shanghai)■■ Chiyoda International
Corporation■ Chiyoda Philippines Corporation■ Jakarta Office-Southeast Asia Operation■ PT. Chiyoda International Indonesia

Brazil■ Chiyoda Oceania Pty Limited
Australia■ Abu Dhabi Office■ Chiyoda-CCC Engineering(Pte.) Limited■ Middle East Headquarters Doha Office■ Chiyoda Almana Engineering LLC■ Chiyoda Petrostar Ltd.

■ Chiyoda Human Resources International (Pte.) Limited■ Chiyoda Singapore (Pte) Limited■ Chiyoda Malaysia Sdn. Bhd.
■ Chiyoda Sarawak Sdn. Bhd.

■ Chiyoda do Brasil
Representações Ltda.

Major Group Companies in Japan (as of March 31, 2014)
Chiyoda Kosho Co., Ltd.
Engineering, construction and maintenance of domestic energy and chemical plants; life andnon-life insurance agent

Chiyoda System Technologies Corporation
Engineering, procurement, construction and maintenance of electrical and instrumentation, and ofsocial infrastructures. Consulting, development and operation for integrated IT systems

Chiyoda TechnoAce Co., Ltd.
Consulting, design, procurement, construction and test operation services for pharmaceutical andother fine chemical plants, and various types of research facilities

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

Minatomirai Grand Central Tower
4-6-2, Minatomirai, Nishi-ku, Yokohama 220-8765, Japan
Please direct inquiries about this CSR Report to:Compliance & CSR Unit Tel: (81) 45-225-7741 Fax: (81) 45-225-7224
E-mail: csr@ykh.chiyoda.co.jp

Chiyoda U-Tech Co., Ltd.
Feasibility studies and consulting for energy, oil, chemical and environment-related plants andvarious types of industrial facilities

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

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