Chiyoda’s Website

12-1, Tsurumichuo 2-chome, Tsurumi-ku, Yokohama 230-8601, Japan
Tel: (81) 45-506-7535 Fax: (81) 45-506-6857

CHIYODA CORPORATIONCSR Report 2007
Fiscal Year Ended March 31, 2007

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

Printed in Japan with soy ink onrecycled paper.

Contents

Editorial Policy Report Policy
With this report, we are pleased to give a clear understanding of our Corporate Social
Responsibility (CSR) activities and to deepen our communication with all the stakeholdersof the Chiyoda Group.

Corporate Outline
A Message from the President .........................................................
Overview of the Chiyoda Group .......................................................
Business and Society ........................................................................
CSR .................................................................................................

2
4
6
8

• Reflecting Readers’ Comments in the CSR Report

Customers

Shareholders
and Investors

FeatureRasGas Train-5 Project ........................................................... 10

We began publishing the Environmental Report in the year 2003, and first issued the CSR
Report in September 2006, which includes a summary of our environmental programs.
We have worked to make the fiscal year 2007 issue more reader-friendly by reflecting
readers’ comments on the 2006 Report.

Employees

ChiyodaG ro u p

Business
Partners

Local
Communities

Namikata Project ..................................................................... 12
The Chiyoda Group’s Stakeholders

Social Report
With Customers ............................................................................... 14
With Shareholders ........................................................................... 15
With Local Communities: Social Contributions with Heart ................ 16
With Business Partners ..................................................................... 18
With Employees: Job Satisfaction ..................................................... 19
With Employees: Safety Management .............................................. 20

METI’s Definition of CSR
CSR, the abbreviation of Corporate Social
Responsibility, is defined by the Ministry of
Economy, Trade and Industry (METI) of
Japan as follows: “A corporation should voluntarily take a balanced approach toaddressing economic, environmental andsocial issues in order to also benefit citizens,
communities and society, which leads tothe success of its business operations.”• Coordination with the Annual Report and Website
We publish corporate activity information in our Annual Report and on our website.
Theandicons indicate that more detailed information is provided in our Annual
Report/website as shown below.

• Contributing to Society through Our Business Operations
As a pioneer in Japan’s engineering and construction industry since its foundation in
1948, the Chiyoda Group has contributed to the industrial and social development ofJapan and more than 40 other countries in the world through its activities of engineeringand constructing petroleum, liquefied natural gas (LNG) and chemical plants and otherfacilities.
This report highlights two projects (RasGas Train-5 Project, Namikata Project) in theGroup’s contribution to society through its business operations. (Please refer to pages
10-13.)

Coverage of this Report
Unless otherwise noted, this report covers Chiyoda Corporation and the seven domestic
consolidated subsidiaries in the Chiyoda Group. (Please refer to page 6.)

Applicable Period and Date of Publication
Applicable Period: Fiscal year 2007 (April 1, 2006 to March 31, 2007)
Date of Publication: August 2007

Guidelines

Environmental Report
For the Global Environment ............................................................. 22
Environmental Management ............................................................ 24
Environmental Activities ................................................................... 26
Environmental Technology ............................................................... 32

Global Network ............................................................................... 34

This report was prepared using the Global Reporting Initiative’s (GRI) Guidelines (G3)and the Reporting Guidelines (2003 Version) of the Ministry of the Environment in Japanas reference.

Annual Report

WebsiteThe Annual Report covers
the Chiyoda Group’s management and operational
strategies, the Group’s operations, business performanceand financial position for theprevious fiscal year, and its
medium-term management
and operational policies.

Previous annual reports andinvestor relations materials,
press releases and otherinformation about Chiyoda
are available on our website
atCover Page
LNG Plant Train-5 for Ras Laffan Liquefied Natural Gas Co., Ltd. (II)(Photo: Courtesy of RasGas)

1

CHIYODA CORPORATION CSR REPORT 2007

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

Corporate Outline

A Message from the President

New Horizons, Infinite Experience:
We fulfill CSR in our corporate operations with the assets ourpredecessors have accumulated to sustain growth for the future.

In Harmony with Local
Communities

The Chiyoda Group is engaged in offering full-fledged technical services for varieties ofindustrial or energy-related plants. Our responsibilities are increasing in tandem with theglobal expansion of our businesses. Over the past several years, a key objective of the
Chiyoda Group has been to develop technologies that mitigate environmental impact during
plant construction and operation, including technologies to reduce sulfur and CO2 emissions.
Moreover, at the Yokohama Head Office we have used gas heat pumps to reduce overall
fuel consumption, and we have been implementing solar and wind power generation andother energy conservation programs. The wide recognition of our efforts for energy saving
in office operation includes the Fourth Annual Kanagawa New Energy Award.
As a corporate citizen, the Chiyoda Group emphasizes harmony with local communities
both in Japan and overseas. During long-term projects, we maintain cooperation with local
residents. In Japan, as part of our interaction with local residents we took part in town
clean-up activities in Namikata, Imabari City, Ehime Prefecture, where we are constructing
underground rock cavern tank systems for liquid petroleum gas (LPG). We received official
recognition for our efforts from the Ehime Labor Bureau.
Overseas, the Chiyoda Group contributes to regional economies by employing as manyas thousands of local residents in areas such as Qatar, Sakhalin and Oman. In particular,
for a large-scale plant construction project in Oman, the Chiyoda Group provided education and vocational training to workers with limited job experience. Moreover, we also

Takashi Kubota

provided safety education courses to protect these workers against work site hazards. As a

President & CEO

result, we achieved a record of 20 million incident-free manhours from the start of construction, thus effectively protecting the safety of local residents and workers.

Promoting CSR
Corporate Social Responsibility(CSR) at the Chiyoda GroupThe Chiyoda Group’s corporate philosophy is to enhance our business and contribute31, 2008. It embraces the concept of moving forward using what our predecessors have createdto the development of a sustainable society as an integrated engineering and construction

to develop further for the next generation. Continuity and integrity are of prime importance forcompany through the use of our collective wisdom and painstakingly developed technology.

a company’s existence. We must take the needs of the current generation into account in deciding

Based on this, the Chiyoda Group aims to earn the trust and understanding of all stakeholders,

what to restructure and what to maintain in order to achieve continuity. The Chiyoda Group has

including shareholders, customers, business partners, employees and local communities.

experienced many changes in our 59-year history, but our philosophy of contributing to societyIntellectual
Property
for theFutureThe Chiyoda Group recognizes that we must behave appropriately as a respectful memberof society. Long before CSR was a widely discussed issue, the Chiyoda Group was earnestly

as an integrated engineering and construction company has never changed.
The three pillars of Chiyoda Group management for fiscal year 2008 are intellectual

fulfilling its corporate responsibilities. In 1972, Chiyoda’s founder, Akiyoshi Tamaki, issued

property for the future, environmentally responsible technologies, and people-oriented

a booklet entitled “Legacy for the 21st Century” that focused on the importance ofmanagement. Opinions may differ on what people-oriented management entails, but I consider

harmonizing nature and energy development. Thus for more than 30 years Chiyoda
Group management and all employees have maintained this spirit, which entails responsiLegacy for the 21st Century:
An Everlasting Commitment toChiyoda’s DNA“New Horizons, Infinite Experience” is our slogan for fiscal year 2008, the year ending March

Environmentally
Responsible
Technologies

Peopleoriented
Management

bilities for an integrated engineering and construction company to fulfill as part of theThis spirit is passed on to the new generationof Chiyoda people so that our DNA remains
the nucleus of all our technologies.

The Chiyoda Group will celebrate its 60th anniversary in 2008. We will continue developing
as an engineering and construction company that makes dreams into realities, and as the

The Three Pillars of
Chiyoda Group Managementfor Fiscal Year 2008

Group’s corporate DNA.

it to be based on fellowship and mutual respect, regardless of nationality.

world’s most reliable project company.
July 2007

Takashi Kubota
President & CEO

2

CHIYODA CORPORATION CSR REPORT 2007

For more details, please refer to our website.

3

CHIYODA CORPORATION CSR REPORT 2007

Corporate Outline

Overview of the Chiyoda GroupWe conduct a worldwide plant engineering business.
Chiyoda Corporation was established as an engineering and construction company in 1948. As of April 2007,
the Chiyoda Group consists of Chiyoda Corporation, 16 consolidated subsidiaries and 5 affiliates. An integrated
engineering and construction group that operates in Japan and worldwide, the Chiyoda Group primarily

Consolidated Business Results for Fiscal Year 2007 (Year Ended March 31, 2007)

engages in engineering and construction of various plants and facilities. By adhering to common core values, theChiyoda Group dedicates its efforts to operating in a manner that earns the trust and understanding of all

New Contracts
Revenues by Industry
3%

stakeholders. Please refer to the Chiyoda Group’s Annual Report and website for more details.

Revenues

6%

4%
22%

15%

(As of April 1, 2007)(Fiscal Year 2007)

Chiyoda Corporation• Main Offices:
Yokohama Head Office (Tsurumi-ku, Yokohama, Japan)
Koyasu Office & Research Park (Kanagawa-ku, Yokohama,Japan)¥557.7 billion¥484.9 billion¥36.7 billion¥23.5 billion¥1,048.7 billion
2,947

Asia and Others

Consulting, planning, engineering, procurement, construction,commissioning (test operation), consulting and training for
operation and maintenance, research and development andtechnology services, project management for plants and facilities in fields including energy, chemicals, pharmaceuticals,
biotechnology and environmental protection

New Contracts

Revenues

Backlog of Contracts(Billions of yen)(Billions of yen)(Billions of yen)

1,000

500

390.9

400

557.7

65%

79%

The Chiyoda Group is now executing a medium-term management plan called
Double Step-Up Plan 2008 (DSP2008). Since fiscal year 2006, we have been working to take a double step up with the objectives of being the “Reliability No.1”

960.5

267.7
600

206.8

200

100

06

The Chiyoda Group’s
Medium-termManagement Plan

62%

project company and an excellent company able to sustain earnings growth.

1,000

522.4
375.9

400

05

14%

22%

1,200

200

290.7

FY 04

10%
28%

1%

800
300

411.3

0

6%

1,048.7

804.2

600

484.9

Backlog of Contracts

Russiahttp://www.chiyoda-corp.com/en/• Main Business Fields:

400

3%
7%

Japan

• URL:¥12.9 billion

Revenues

3%

Middle East

• Paid-in Capital:

800

54%

New Contracts
Revenues by Region

62%

70%

OthersNew contracts:
Revenues:
Ordinary income:Net income:Backlog of contracts:
Number of employees:

28%

7%

General chemicals• Consolidated Financial Highlights:

1%

14%

Petroleum & petrochemicals• Name:2%
7%

LNG plants
Gas and power utilities

Corporate Profile

Backlog of Contracts

5%

07

0

200
FY 04

05

06

07

0

FY 04

05

06

07

For more details, please refer to our Annual Report and website.

4

CHIYODA CORPORATION CSR REPORT 2007

5

CHIYODA CORPORATION CSR REPORT 2007

Corporate Outline

Business and Society

We contribute to society and the environment
through our business operations.
Our business operations help deal with global issues such as stable energy supply, environmental conservation and
LNG Plant (Photo: Courtesy of RasGas)

sustainable social and economic development while contributing directly to society and the global environment.
As a pioneer in Japan’s engineering and construction industry since its foundation in 1948, the Chiyoda

Chemical
PlantsGroup has contributed to the industrial and social development of Japan and more than 40 other countries

Gas Processing /LNG Plants

Flue Gas Desulfurization
Plant for Kobe Steel, Ltd.

Petroleum
PlantsEnvironmental
PlantsPharmaceuticals Plant for Eisai Co., Ltd.

Food Product
PlantsPharmaceutical
PlantsAutomated Factories /Fine Chemical Plants

around the globe by engineering and constructing petroleum, liquefied natural gas (LNG) and chemical

We engineer and construct plants and facilities in various fields.

plants and other facilities.

We consolidate Group strengths in our business operations.
Chiyoda Kosho Co., Ltd.
Engineering, construction and maintenance of domestic energy and chemical facilities

Maintenance

Chiyoda TechnoAce Co., Ltd.
Engineering, construction and consulting for research laboratories,
pharmaceutical and food product plants and distribution facilities

Commissioning

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

Chiyoda U-Tech Co., Ltd.
Construction

Feasibility studies and consulting for industrial facilities

Chiyoda Advanced Solutions Corporation
Provision of advanced analysis and solutions for plant and industrial facility operation;
consulting for use in space

Procurement

Arrow Business Consulting Corporation
Finance, accounting, tax and investment consulting

Our Business Operations Contribute to:

Arrowhead International Corporation

DetailEngineering

Business travel and relocation agent; materials export and air cargo agent(These companies are Chiyoda Corporation’s seven domestic consolidated subsidiaries.)

Feed /
Basic
Engineering

Stable Energy Supply

Sustainable Economic Development• Engineering and construction of facilities for the efficient production and stable supply of petroleum and petrochemical
products, natural gas and other energy sources• Provision of technical solutions for energy conservation andother issues at industrial plants and complexes• Engineering and construction of production facilities for
petroleum and petrochemical products, fine chemicals,
pharmaceuticals, food and other products• Development of economies of countries where plants are constructed

Environmental Conservation

Sustainable Social Development• Engineering and construction of facilities that produce
clean energy with low CO2 emissions• Engineering and construction of air pollution control andwastewater treatment facilities• Provision of solutions for environmental issues• Technology transfer to countries where plants are constructed, and expansion of local employment opportunities• Training and development in science and technology

R&D

Feasibility
Study

Flow of Operations at the Chiyoda Group

6

CHIYODA CORPORATION CSR REPORT 2007

7

CHIYODA CORPORATION CSR REPORT 2007

Corporate Outline

CSR

Our corporate social responsibility is to fulfill
the Chiyoda Group Corporate Philosophy.

Corporate Governance

Chiyoda Corporation has adopted the company with corporate auditors system.
To ensure accurate execution of operations, we have also adopted the executive officer
system to separate the functions of directors, who are responsible for management
supervision, from those of the executive officers, who are responsible the execution

Enhance our business and contribute to thedevelopment of a sustainable society as an integrated
engineering company through the use of our collective
wisdom and painstakingly developed technology.

Chiyoda Group
Corporate Philosophyof business operations.

Risk Management

The Chiyoda Group works to enhance the structure and operation of its risk
management system in order to handle the various risks of corporate management

Chiyoda Group CSR Vision

CSR Medium-Term Targets

and business operation and to carry out business activities smoothly on an ongoing

Main CSR Plans and Performancefor Fiscal Year 2007

basis. In this respect, risk managers and crisis managers have been appointed tocarry out day-to-day preventive management as well as to deal with any incidents

As an integrated engineering and construction company, the Chiyoda Grouppledges to constantly strive to increase
corporate value and earn the trust andunderstanding of all stakeholders byadhering to the following principles.
I. A Reliable
Company

II. Environmental
Initiatives

and minimize their consequences, while the procedures of ensuring that we
address and limit the effect of risks involved with each project phase have also been
established.

We are dedicated to earning a reputation
among our customers and all others withwhom we do business as the “Reliability
No. 1” project company by providing thehighest levels of technology and knowledge in the world.

• Achieve customer satisfaction by
providing industrial plants of outstanding quality with “Reliability
No. 1” technology• Share our CSR principles with vendors, subcontractors and otherbusiness partners• With Customers (Page 14)• With Business Partners (Page 18)

We are dedicated to remaining a company
that plays a vital role in society by usingsophisticated technology to maintain theproper balance between environmental
conservation and social and economic
development.

• Develop and provide environmentally friendly energy and conservation technologies• Conduct business activities that
contribute to environmental conservation• Environmental Technology (Pages 32-33)• Environmental Report (Pages 22-33)

We are dedicated to using our engineering business activities in Japan and overseas to contribute to society by helping
people reach their goals, transferring
technology and protecting the environment.

• Contribute to society through integrated engineering business activities• Enhance social contribution activities by providing knowledge andlabor• Feature (Pages 10-13)

We are dedicated to respecting thehuman rights of all people. We will create a corporate culture where the individuality and character of every employee
are respected, where people are motivated to do their best, and of which
employees and their families are proud.

• Create a lively and energetic working environment and help employees develop their talents• Achieve zero accidents• With Employees (Pages 19-21)

We are dedicated to achieving evengreater transparency and stability by conducting our operations fairly in accordance with the highest ethical standards.

• Conduct business activities basedon strict legal compliance and ahigh degree of transparency• Conduct a thorough risk management program

Information Security

In January 2007, Chiyoda Corporation started an information security management system (ISMS) conforming to ISO 27001 international standards and issued arule book on ISMS to all employees. To further reinforce information security, in fiscal year 2007 we introduced an online education (e-learning) program, which weplan to expand Group-wide in fiscal year 2008.

Compliance

The Group’s consultation and reporting system (hotline), dubbed “Welcome All About
Compliance,” gives careful consideration to enabling practical use by all individuals, as
exemplified by assigning staff who specialize in women’s workplace issues. In fiscal
year 2007, the system received a total of nine consultations and reports.

III. Social
Contributions
through Business
Activities

IV.Respect for
Human Rights

V. Commitment toFairness(RasGas Train-5 Project, Namikata Project)• With Local Communities: Social
Contributions with Heart(Pages 16-17)

With Employees: Job Satisfaction
With Employees: Safety Management

Compliance Counseling and Reporting System “Welcome All About Compliance”
Corporate Auditors

Executive Committee

Executive VP in Charge of CSR

Instruction(Remedial Action and Prevention)
External Consultation
Center (Lawyer)

Contact

ReportCSR Division / Compliance Management OfficeCompliance Staff

Manager
Consultation
and Reporting• Compliance (Page 9)• Risk Management (Page 9)

Consultation
and Reporting

ReportConsultation
and Reporting

Feedback

Employees and Temporary Staff (Including those of Subsidiaries)

For more details, please refer to our Annual Report and website.

8

CHIYODA CORPORATION CSR REPORT 2007

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CHIYODA CORPORATION CSR REPORT 2007

Feature

RasGas Train-5 Project

Reduced Burden on the Environment and a Record
12 Million Manhours without Lost Time Incidents

People and Safety

The Chiyoda Group completed the world’s largest liquefied natural gas (LNG) plant in Qatar, and achieved a

The Chiyoda Group placed the highest priority on safety during the construction of the RasGas

record for no lost-time-incident (No LTI) construction hours through its execution with the highest priority

Train-5 LNG plant with the goal of zero incidents (no accidents). Following an incident in April 2006

on safety.

when a window fell out of a tower crane, we worked in concert with the customer and construction
subcontractors to achieve 10 million No LTI manhours as of October 2006. Our honors included asafety award from the customer, which was reported in local newspapers. The No LTI manhours

LNG: An Energy Source that Emits 20 Percent Less CO2 than Oil and
40 Percent Less than Coalincreased to 12 million by the end of fiscal year 2007.

In 1996, the Chiyoda Group completed its first LNG plant in Qatar, Qatargas Train-1, located innorthern Qatar. In October 2006, the Chiyoda Group completed RasGas Train-5, then the world’s
largest LNG plant with annual production capacity of 4.7 million tons. The plant contributes toreducing CO2 emissions.
Construction work involved more than 9,000 workers at its peak, thus creating excellent
employment opportunities for Qatar and contributing to the nation’s economic development. The
project also helped secure a stable supply of LNG, a critically important source of energy for Japan.
More environmentally friendly than previous plants, the RasGas LNG plant is designed for zero
emissions of effluent water. Engineered for low exhaust emissions as well, it features significantly
reduced emissions of nitrogen oxide (NOx) into the atmosphere.

Safety Glove Campaign(Promotion of the use of gloves in cooperation withthe customer and business partners to prevent handand finger injuries)
A Safety Award from the Customer

KuwaitRas Laffan
Qatar
U.A.E.
Saudi Arabia■ From the Site Manager of the RasGas Train-5 Project

Oman

During the peak period, there were over 9,000 workers from India, Pakistan, the Philippines, Nepal, Indonesia
and Thailand at Qatar construction sites, where scorching temperatures reached 45°C in June and 50°C in July. In
constructing the world’s largest LNG plant in a short period of time, I came to realize the extreme importance ofrepetitively implementing step-by-step training in order to complete construction safely.
Katsuki Ninomiya, Site Manager, RasGas Construction Site Office

Yemen

LNG Plant (Photo: Courtesy of RasGas)

10

CHIYODA CORPORATION CSR REPORT 2007

11

CHIYODA CORPORATION CSR REPORT 2007

Feature

Namikata Project

We contribute to the development of local communities, aiming
for coexistence in regions where our construction projects are located.
In constructing liquefied petroleum gas (LPG) underground rock cavern tank systems in Namikata, Imabari City
in Ehime Prefecture, we interact with residents, hiring locally and conducting social contribution activities topromote mutual understanding.

Specific activities are listed below. As a result of these activities, we continue tobuild mutually beneficial relationships with local residents who reciprocate in ways
such as patrolling the area around the facility during the New Year and other holiday periods.

Employment• Gave priority to local Imabari firms for construction of temporary facilities
Seventy-five percent of the LPG used in Japan is imported. The LPG undergroundrock cavern tank systems, designed to stockpile 450 thousand tons of LPG for use in• Employed local residents as office and janitorial staff with the help of the
Namikata municipal government and the Miyazaki district local governmenta crisis, are among the largest facilities of their kind in Japan and have extremely

Contribution to Societyhigh social importance as a public works project. We are aware of the significance of• Cleanup of Misaki Shrine

such projects, and aim to coexist with and contribute to local communities from the• Cleanup and mowing of ditches along local roads

pre-construction stage. By appointing local firms as vendors and subcontractors and• Fundraising for local schools by collecting aluminum canshiring local residents, and through active volunteer services and other efforts, we are• Delivery of lunch to senior citizens living alone

working to achieve mutual understanding with residents in the Miyazaki district ofNamikata.

Namikata Spring Festival (Miyazaki District)(staff volunteer activity)

Participation in Local Events• Namikata Peninsula Ekiden Race
• Miyazaki District residents’ excursion• Spring festival (Miyazaki district)• Karaoke classes held by local women’s group
Interacting with Local Residents

Namikata,
Miyazaki District■ From the General Manager of the Namikata Project Office
Greetings are the first step in social interaction. It began when we received help in growing flowers and vegetaConceptual Drawing of the Completed
Namikata Basebles that we had planted on vacant land. These days, when I wave and say, “Good morning,” ladies in the area
wave back with a smile. Every day during my lunch break I make the 20 minute uphill walk to Misaki Shrine to

Ehime Prefecture

pray for safety, and I think the local residents have taken notice.
LPG Underground Rock Cavern Tank Systems

12

CHIYODA CORPORATION CSR REPORT 2007

Michio Komoriya, General Manager, Namikata Site Office13

CHIYODA CORPORATION CSR REPORT 2007

Social Report

With Customers

With Shareholders

Our devotion to quality management reflects a commitment
to earning the satisfaction and trust of customers.

The Chiyoda Group works to earn the trust ofshareholders and investors in Japan and overseas.

Our primary mission is to supply products and services that meet customers’ requirements by integrating a wide

The Chiyoda Group is dedicated to increasing corporate value and maintaining the trust and understanding of

range of technologies.

its shareholders and all other stakeholders. Fair and timely disclosure of information is therefore one of ourhighest priorities.

Quality Management
for Customer
Satisfaction

Chiyoda Corporation received ISO9001:1994 certi-

Policies on
Information
Disclosure

fication for project management in 1994, and currently
maintains ISO9001:2000 certification. In fiscal year 2008,• In raising corporate value over the medium and longterm, our objective is to achieve a wide-ranging

the Reliability Program. It will strengthen the connection

11.25%
29.24%

Total
193,125

shareholder composition by building and maintaining

Activity at the ChAS Forum

Financial institutions
Securities companies
Other corporations
Foreign companies
and foreign individuals
Individuals and others

information.

target to its corporate quality objectives: realization ofPresentation at the Chiyoda
Advanced Solutions (ChAS)
Forum

Shareholding Breakdown by Shareholder (As of March 31, 2007)

commitment: we will willingly and fairly disclose

the Company has added a company-wide management“Reliability No.1” through the steady implementation ofstrong relationships with shareholders and investors.

thousand

38.69%

3.35%

17.47%• We aim to earn the trust of shareholders/investors

between corporate quality objectives and BSC*.

by conducting disclosure worthy of a “Reliability No. 1”*BSC (Balanced Scorecard) is a management system that supports the establishment andimplementation of specific management strategies by facilitating the quantitative monitoring of progress from four perspectives: clients, finance, execution and humanresources.

Customer Satisfaction
Survey• The Chiyoda Group Code of Behavior expresses our

project company, as outlined in our management
vision.

Specific Activities
for Information
Disclosure

Chiyoda Corporation began conducting customer
satisfaction surveys in 2002, and many domestic andoverseas customers have commented that theCompany’s performance met their expectations.

Participants at the Chiyoda
Thoroughbred 121 (CT-121) User
Group Convention• Analyst Meetings
The Chiyoda Group is committed to fair disclosure of
information with equal emphasis on individual investors
and overseas investors. We fulfill this commitment inways such as holding presentations for analysts on the

Executive Vice President Hiroshi
On-site Tour for Investors
Shibata at a Conference Organized
by a Securities Company

day the Company submits reports to the Tokyo StockA CT-121 User-Group Plant Tour

Customer Satisfaction Survey Flow
Visit customers to
conductsatisfaction survey

Report to
management

our website on the same day in both Japanese andDialogue with Customers
Implement
project-levelmeasuresEvent

Measure effects
and provide
feedback

The Customer Satisfaction Survey Process
We conduct regular interview surveys of domestic and overseas
customers from project implementation to completion, regarding issues such as site safety and environmental response, ourproject organization and personnel system, and our technologicalcompetence as an engineering and construction company.

Exchange, and by posting the presentation materials on

Organizer

Month/
Year

Participating companies(Number of participants)

CT-121 User Group
Convention(Flue gas desulfurization
technology)

ChiyodaNovember U.S. power companies and flue
Head Office 2006
gas desulferization technology
sub-licensees (47)

ChAS Forum(Equipment diagnosis
and operational
analysis)

ChAS**

Chiyoda Industrial
Furnace Symposium(Industrial furnacetechnology)

ChiyodaFebruary
Head Office, 2007
ChAS**

Domestic petroleum
companies, furnace tube
manufacturers and inspection
companies (77)

ME Workshop(Oil refinery
maintenance)

ChiyodaFebruary
Kosho Co., 2007
Ltd., ChAS**

Domestic petroleum companies,
equipment manufacturers andinspection companies (107)November Domestic petroleum, chemical
2006
companies and powercompanies (200)**Chiyoda Advanced Solutions

English. In fiscal year 2007, we conducted business pre-way of participating more in conferences organized byunderstanding of our operations.

securities companies, building up communications with• Individual Investors

more such investors and ensuring fairness in information

The Chiyoda Group posts all disclosable information
on its website, and plans to post contents specifically
prepared for individual investors.

CHIYODA CORPORATION CSR REPORT 2007

disclosure, the same as we do for domestic investors.
• General Shareholders’ Meeting
Chiyoda Corporation enhances communication by• Overseas Investorsscheduling its General Shareholders’ Meeting on a day

The Chiyoda Group holds teleconferences every

that fewer companies hold their annual meetings, andquarter, and meets with investors in Europe and Northby sending invitations to shareholders well in advance.

America more than once a year. Further, we are making

We also provide proxies via the Internet and an electronic

every effort to earn the trust of overseas investors by

proxy platform for institutional investors.

For more details, please refer to our website.

14

IR Tools

sentations at domestic construction sites to enhance

For more details, please refer to our website.

15

CHIYODA CORPORATION CSR REPORT 2007

Social Report

With Local Communities: Social Contributions with Heart

We contribute to local communities
based on our expertise and practice.
The Chiyoda Group contributes to society through its business activities and by providing its knowledge andhands-on activities. In fiscal year 2007 we enhanced our range of programs by giving environmental lessons atelementary schools.

Providing Knowledge
and Labor in Social
Contribution• Training for Teachers

Executive Vice President Nobuyasu Kamei Addresses Overseas
Energy Conservation Trainees

The Chiyoda Group invites teachers to attend classes

Overseas Energy Conservation Trainees Touring Company
Facilities

at our premises where they receive first-hand knowledge

facility tours conducted in 2007, of which nine wereof managing organizations and training programs at a

at the Yokohama Head Office and one at the Koyasu

business sector in order to serve for them to manage

Office and Research Park.

their school operations and plan their educational pro-• Dispatch of Instructors to Universities

grams. In fiscal year 2007, we received six teachers of

The Chiyoda Group dispatches personnel to univer-elementary and junior high school at the request ofsities to serve as instructors in various subjects in order

the Japan Institute for Social and Economic Affairs.

Volunteers Participate in a Cleanup Campaign with a Local
Neighborhood Association

to broaden understanding of our technologies andEducation, we dispatched lecturers to give lectures on

the head office and Group companies work side-by-

year 2007, four personnel taught at the Tokyo

management for about 200 school principals, vice-side with residents to keep the surrounding area

Institute of Technology and one at Yokohama

principals and the candidates.

clean. In fiscal year 2007, we extended the cleanup

National University. In addition, we conducted classes• Internship/Workplace Experience Program

beyond the head office area to include the com-in energy conservation for 117 students in the fourthmuters’ route to the nearest station.

and fifth grades at Anesaki Municipal Elementary• Office Eco-Tours

School in Ichihara, Chiba.

Also, at the request of the Yokohama Board of

In fiscal year 2007, seven undergraduate and graduate university students participated in the Company’s
internship program, and two high school students

We invite local residents to see our energy conser-

expertise and maintain ties with universities. In fiscal• Overseas Energy Conservation Training

participated in our workplace experience program.

vation systems to promote a better understanding ofAs part of the Multi-Country Training Program on• Cleanup Campaigns

Chiyoda’s commitment to the environment. The 21

Energy Conservation for ASEAN Countries directed at

The neighborhood association where Chiyoda’s

members of the Corporation and Citizens Fellowshipenergy conservation leaders, we accepted 23 trainees

Yokohama Head Office is located holds a semi-annual

Committee of the Japan Institute for Social andfrom Vietnam and 26 from India at the request of thecleanup campaign in which volunteer employees from

Economic Affairs were among the participants in ten

Energy Conservation Center, Japan.

■ From Our Employees

Energy Conservation Classat Anesaki Municipal
Elementary SchoolStudents’ Written Impressionsof the Class■ From Our Employees

I participate in the Tsurumi Clean Campaign with my son and daughter, who are in elementary school. Picking

We conduct energy conservation tours and other activities open to the general public to demonstrate facilities forup the trash with the fire tongs and collecting it in plastic bags seems like fun for them. We look forward to thepreventing global warming that we have been introducing step-by-step since 2001, including diesel engine cogener-

Clean Campaign as a kind of family recreation.

ation facilities. In fiscal year 2007, we held 12 tours for some 240 participants. In particular, government officials

Families with small children should definitely take part. After the cleanup, you can tour the energy conservation
facilities, which are popular, and there are rooftop propellers, so the Tsurumi Office is like a wonderland for children.

from India and Vietnam were very attentive and asked many questions, making it a very meaningful experience.
Naotake Nakano, Administrative Services Center

Akio Oba, Piping Engineering Center

16

CHIYODA CORPORATION CSR REPORT 2007

17

CHIYODA CORPORATION CSR REPORT 2007

Social Report

With Business Partners

Approach to
Procurement

With Employees: Job Satisfaction

We work to build mutually beneficial relationships
with our business partners.

The assets of a company are “people.”
We aim to be a company where employees can work enthusiastically.

With a view to building mutually beneficial relationships with its business partners, the Chiyoda Group works

We believe that customer satisfaction is higher when employees are proud of their company and work with

together to complete projects that contribute to society.

motivation.

Amidst ongoing changes in the business environment
including the growing size of plants, increasing sophisti-

Purchase Orders by Product Purchase Orders by Region
Fiscal Year 2007

Fiscal Year 2007

Aiming for Job
Satisfaction

satisfaction. Chiyoda implements various measures thatcation of equipment and demands for earlier project

motivate employees to work enthusiastically by allow-

completion, it is becoming increasingly important to

ing them to continuously develop their capabilities.

select the optimal suppliers and supervise their work

• Linking Company Targets and Personal Targets
By using the BSC* System to firmly link company targets withthe targets of individual employees, we make them aware ofmanagement policies and help them to firm up their goals.

using our quality management systems.
To maintain mutually beneficial relationships inprocurement, the Chiyoda Group requests business
Pressure vessels
PipingRotary motors, devices
Instruments
Electrical
Otherspartners to cooperate in the following areas.
1. Compliance with laws, regulations and ethical guidelines
2. Environmental conservation• Establish ISO14001-compliant environmental
management systems• Acquire external certifications• Reduce the use of hazardous chemicals• Promote Green Procurement*BSC (Balanced Scorecard) is a management system that supports the establishment andimplementation of specific management strategies by facilitating the quantitative monitoring of progress from four perspectives: clients, finance, execution and humanresources.

EuropeAsia
Japan
U.S.A./Canada
Middle East
OthersEmployee
Satisfaction Survey

In fiscal year 2007, Chiyoda Corporation conducted

4. Continuous sound management of business operations
5. Technological improvements

Further, we take special care to promote the following.
1. Education about and strict compliance with the Antimonopoly
Act, the Subcontract Act and related laws
2. Building better partnerships based on mutual understanding
and trust• Ample Health and Welfare Systems
We have established health management centers at the
Yokohama Head Office and the Koyasu Office & Research Park
where Group employees can receive medical care from an industrial
physician. In addition, we are creating working conditions and an
atmosphere in which employees can work comfortably by establishingsystems for parental leave, nursing care leave and continuing
employment.

improve workplace conditions in order to motivate
individuals and the organization.

Survey Results

an employee satisfaction survey to identify the roots• Survey Results
72.1 percent of employees responded affirmatively to thequestion, “Are you satisfied as an employee of this company?”
Employees also had a high level of satisfaction with theCompany’s social contribution in its business operations.

6. Appropriate quality management• Employee Skill Development• Career Development Program (CDP)• In-house education program• Certification incentive program• Follow-up
Chiyoda Corporation will reflect the survey results in future
operations to increase employee and customer satisfaction, andwill conduct regular opinion surveys of employees to confirm theefficacy of workplace improvements.

of employee motivation and to implement policies and3. On schedule delivery

Green Procurement*
Guidelines

Without employee satisfaction, there is no customer

6.9%

6.0%

20.0%
66.1%

Very satisfied
Satisfied
Fair
Unsatisfied
Very unsatisfied
UnsureTransporting a Fractionator

The Chiyoda Group promotes Green Procurement■ From Our Employees

as part of its Corporate Environmental Policy of opti-

Taking on work of quality, quantity and responsibility from an early age of employment is part of the Chiyoda

mizing consumption of resources and energy in ordercompany culture. While developing their careers, employees develop experience through on-the-job training thatto provide customers with facilities, machinery andencourages them to think independently in carrying out their duties. A senior worker or superior is always there toequipment that has no significant environmental

help when necessary and the company culture is very nurturing, which makes Chiyoda a comfortable place to work.

impact.

Masako Takahashi, Personnel Department*Green Procurement: Procurement which gives preference to machinery and equipmentwith low environmental impact.

18

Training in Welding a Reactor Vessel

CHIYODA CORPORATION CSR REPORT 2007

19

CHIYODA CORPORATION CSR REPORT 2007

Social Report

With Employees: Safety Management

We work to maintain the highest level of health and safety.
Health and Safety
Training

We believe that health and safety are of prime importance to the welfare and morale of all people as well as• Refresher Health, Safety and Environmental
Training for Construction Site Supervisors
Construction site supervisors are required to regularly

to sustain corporate growth. All Chiyoda personnel continuously work together to maintain the highest levelparticipate in training which will enable them to steadilyof health and safety.

implement health and safety management duringassignment activities at our construction sites.

Corporate
Occupational
Health & Safety
PolicyThe Corporate Safety Management Policy was• Construction Site Health and Safety Training

established in 1993. In April 2003, when Chiyoda
started using an occupational health and safety man-

We conduct training for all new workers at construcOccupational Health, Safety and Environmental Training Class

tion sites, domestic and overseas, as well as special safety

agement system, the policy was renamed thetraining for employees involved in hazardous operations.

Corporate Occupational Health & Safety Policy. We

Safety activities also include TBM* and KYK (kiken yochi

review this policy every year, and further translate it

katsudo or “hazard identification activities”) prior to theinto specific actions to be taken for job sites.

As part of its daily construction site safety activities, Chiyoda Keiso
Co., Ltd. joins workers in devising and utilizing safety tools. Giving
the tools unique names has raised safety awareness, and construction sites currently maintain zero accidents. (From left:
Moyasazu1, Skynet 2, Otosazu 3)

Establishing a
Safety Culture

An easy-to-attach, freely expandable net used to prevent accidents fromfalling nuts, bolts and other small items when working in high places

3. Otosazu:

A drawstring tool bag that keeps contents from spilling out evenwhen swung or tilted

establish and inculcate a safety culture, which meansa spirit of putting safety first on both an organization* TBM (ToolBox Meetings): Meetings held by each work group to confirm safety.

Chiyoda Construction Job Site Occupational Injury/Illness
Frequency Rate and Severity Rate vs.
Rates for Japanese Construction Industry (FY2003 to 2007)

and individual basis. To achieve this, we are working
to raise executives’ and employees’ awareness of the

1. Moyasazu: A sheet to put over cans of paint and other flammable solvents to prevent
fires caused by sparks
2. Skynet:

Our management policy for fiscal year 2008 is tostart of construction work.

Frequency ratepriority of safety in their behavior.
2.0

Occupational
Health & Safety
Management
SystemEvery year, the Chiyoda Group formulates an
Occupational Health & Safety Management Program,based on which it conducts specific safety management

1.5

Chiyoda Group Total Frequency Rate*
Chiyoda Group Total Severity Rate**
Japanese Construction Industry Average Frequency Rate*
Japanese Construction Industry Average Severity Rate**

1.0

activities for each project and related department. As
part of establishing a safety culture, in fiscal year 2008

Individuals involved in accidents(excluding accidents withno loss of working time)*Frequency rate =X 1,000,000
Total working hours

0.5

Chiyoda Corporation will incorporate the Occupational
Health & Safety Management Program into each

0

FY

03

04

05

06

07

Lost-time days**Severity rate =X 1,000
Total working hours

Note: Japanese construction industry data is based on calendar years.

department’s Balanced Scorecard (BSC) and work to
implement it steadily through self-managed goal
attainment.

■ From Our Employees
The Chiyoda Group introduced an occupational health and safety management system in April 2003. To
strengthen the activities based on this system, since January 2007, all Group employees prioritize safety consciousness
in carrying out their duties. Moreover, we are promoting efforts toward establishing a safety culture to make that
consciousness a part of our corporate identity.
Fusao Nakata, Health, Safety and Environment (HSE) Management Office

For more details, please refer to our website.

20

CHIYODA CORPORATION CSR REPORT 2007

21

CHIYODA CORPORATION CSR REPORT 2007

Environmental Report

For the Global Environment

Our most important mission isto preserve the global environment.
We contribute to the environment through our worldwide business operations, while promoting recycling
and Green Procurement at our construction sites and offices in Japan to mitigate our environmental burden.

Please find more detailed information on the pages shown below.

Material flow of business activities employing environmental management

Environmental Business Activities
Domestic sites

Offices

Office Activities
and Environmental Targets
Electricity
Diesel oil
Kerosene
Ready mixed concrete
Asphalt concrete
Steel140,000kWh
454kl
6.1kl
82,000 tons
2,000 tons
16,000 tons

Electricity
Water
Gas
Paper

14,800,000kWh
72,000kl
338,000m3
352 tons

EPC Activities andEnvironmental Targets

Domestic sites

Offices

Greenhouse gas

Greenhouse gas

P28-31

1,290 tons
Chemical substances
9 tonsIndustrial waste
5,600 tons

P26-27、
31

General waste

9,090 tons
78 tons(excluding sewage)

Research and Development Activities
P30-31and Environmental Targets

Environmental Management

Office environmental improvement facilities
Cogeneration
Photovoltaic/wind power generating facilities
Ice thermal storage air conditioning
P28

Environmental Accounting(Environmental conservation cost and effect)

P30-31

P24-25Intermediate treatment facilities

Recycling Rate

Recycling facilities

Final disposal site

Domestic sites(excluding sewage)

Green Procurement
Green Procurement Guidelines

RecycleP18

Final disposal
quantity

80.6%

1,132 tons

Office42.0%

Detailed data on waste and recycling

22

CHIYODA CORPORATION CSR REPORT 2007

23

CHIYODA CORPORATION CSR REPORT 2007

P27、
29

Environmental Report

Environmental Management
Environmental
Training

We have established an effective systemfor conducting environmental activities.

Chiyoda Corporation classifies environmental training
into the following three areas.
• Environmental Management Systems (EMS) general

Chiyoda Corporation was Japan's first engineering and construction company to acquire ISO 14001 certification,

training: Implemented for all employees to comply

and promotes activities under the environmental activity policy and management system it has instituted, whilewith the requirements of ISO14001:2004

conducting systematic environmental education and awareness activities.

• Specialist training: Five workshops have been held
for acquiring specialized EMS knowledge
Environmental Education Class

Environmental
Management System• Special training: Training for acquiring specialized

At Chiyoda Corporation, the Environmental

knowledge of operations that could potentially have

President & CEO

Management Review Committee is responsible fora large environmental impact

decisions on environmental activities. This committee
establishes Corporate Environmental Policy and peri-

Environmental Management
Review Committee

odically reviews the Company’s activities.
In addition, the Company has established committees

Environmental
Auditing

SQE Division(HSE Management Office)under the direct control of top management to promote

year for the second renewal of ISO14001 certification,

Executive HSE
Management Committee

activities and environmental management activities.

we audited all internal areas of the Company. Further,

Moreover, lower-level committees at each operatingof office activities, R&D activities and EPC* activities

we have audited our measures taken for the issues
Yokohama Head Office
HSE Management
Committee

R&D Center
HSE Management
Committee* EPC: Engineering, Procurement and Construction

Yokohama Head Office,Koyasu Office &Research Park

ISO14001
Certification

and R&D environmental activities to ensure they arebeing carried out properly. As fiscal year 2007 is theoccupational safety, health and environment (HSE)base promote independent initiatives in the categories

We conduct annual internal audits of EPC, office

R&D Group

In March 2001, Chiyoda Corporation became thefirst engineering and construction company in Japan toraised over the three-year period from the year 2004

Project HSE Management
Committee

by a third-party inspection organization.

Third-party Environmental Audit

Engineering& Procurement Division
Domestic Project
Operation
International Project
Operation

Environmental
Meeting

We hold a monthly Environmental Meeting including
business partners who cooperate in office operations todeliberate and exchange opinions about environmental

acquire ISO14001 certification. In March 2005, theimprovements. Members propose ideas, formulate

scope of certification was expanded to include activities atplans to reduce environmental impact, conduct envi-

the Research & Development Center. Except for overseas

ronmental patrols of offices to assess trash separation

projects, the entire organization briefed on our manage-

and carry out office-related educational activities.

ment system diagram at the right is ISO-certified.

Environment Meeting■ From Our Employees
Industrial waste such as syringes and needles from our infirmary in the Yokohama Head Office requires particularly strict control of disposal procedures. We assign legally authorized contractors to collect, transport and disposeof waste from our infirmary, and conduct inspections of the contractors to confirm that the disposal of waste isproperly carried out with the appropriate procedures.
Eri Moritani, Health Management Center

For more details, please refer to our website.

24

CHIYODA CORPORATION CSR REPORT 2007

25

CHIYODA CORPORATION CSR REPORT 2007

Environmental Report

Environmental Activities

We have set medium-to-long-term targets and goals inthree categories of activity to preserve the environment.
We have established targets to achieve environmental goals in EPC activities, office activities and researchand development (R&D) activities.

Fiscal Year 2007 EPC Environmental Targets andMajor Examples of Achievements

Main Operations

Three Categories of Activity• Released annual checklists for machinery and equipmenton the responsible department’s online server

Project Operations

EPC
E

EngineeringP

Procurement

C

Construction

Project Management

Project Support
R&D Operations

Target 1 Practical use and improvement ofdesign checklists

EPC Activities
Within EPC and related
management operation

Office Activities
Within operations at offices,other than at construction sites

R&D Activities
Within R&D operations• Prepared a checklist for the legal requirements of control
engineering

Target 2 Design considering reduction of
construction waste• Developed an environmentally conscious engineering policy• Developed survey and inspection documents for organic
solvent recovery and treatment technologies, and utilized
these documents in engineering

Target 3 Reduction and proper processing of
construction waste
Chiyoda‘s major fields of business are in the engineering, procurement and construction (EPC) of plants and• Prepared green procurement guidelines

facilities, project management and support services, and R&D, which are collectively called EPC activities, office• Deployed environmental patrols to confirm thoroughwaste separation

activities and R&D activities.

EPC Activities

Domestic Construction By-Products: Ratio of Waste toDomestic Revenues (Excluding sewage)

Chiyoda establishes annual environmental goals for

Domestic Construction By-Products: Status of Recycling(Excluding sewage)

each of the specialized engineering and procurement
Recycling and/or Reuse

departments based on the environmental objectives
Amount of waste (Tons/Billion yen)and targets shown on the next page. Self-evaluationsof our activities at the end of the first half and the full

1,600

100

20.3

activities.

80

1,155

1,200

987

904

60

0

26

CHIYODA CORPORATION CSR REPORT 2007

12.9
4.0

13.2
6.2

14.7
4.7

84.3

83.1

80.6

80.6

04

05

06

07

67.0

40
400

12.1
3.6

12.7

998

800

Environmental Safety Patrol

Landfill

(%)

1,478

fiscal year are applied to the following fiscal year’s

Incineration

20

FY

03

04

05

06

0

07

27

FY

03

CHIYODA CORPORATION CSR REPORT 2007

Environmental Report

Office Activities

Chiyoda installs energy-saving facilities and conducts

Eco-friendly Offices

Changes in Amount of General Waste

greenification based on the Office Environment

In fiscal year 2008, we will implement thoroughImprovement Plan the Company has been formulating

trash separation at offices and improve reuse andannually since 2001. The following introduces major

recycling efforts. Our goal is to reduce the amount of

examples of activities and data from fiscal year 2007.

office waste treated by incineration by 70 percent

160

compared with fiscal year 2007.

Biofuel Cogeneration Facility

120Wind Power Generating Facilities

In fiscal year 2007, cogeneration for office air con-

We have installed 5kW wind power generating

ditioning facilities at the Koyasu Office & Researchfacilities on the roof of the Koyasu Office & Research

Park switched from heating oil, which is relatively inex-

Park. The predicted output of these turbines ispensive, to biofuel in order to reduce CO2 emissions.

2,800kWh per year, equivalent to the energy con-

As a result, CO2 emissions were reduced to zero.

sumption of a typical household over nine months. The

Plastic
Pet bottles
Bottles
Cans
Newspapers and magazines
Corrugated fiberboard
Incinerated waste

Amount of waste (Tons)

80

40

0

FY

03

04

05

06

electricity the turbines generate is used for the office.
Ratio of Greenhouse Gas Emissions to Revenues

Greenhouse gas emissions (kg/Million yen)

70

56.5

60

45.0

50

37.9

40

26.0

30

21.6

20
10
0

Wind Power Generating Facility

FY

03

04

05

06

07

Biofuel Cogeneration Facility

Ice Thermal Storage Air Conditioning Facilities
On the roof of the main building at the Koyasu

Ratio of Power Consumption to Revenues

Ratio of Gas Consumption to Revenues

Power consumption volume(kWh/Million yen)

Gas consumption volume(Nm3/Million yen)

Office & Research Park, we have installed air condi120

tioning facilities that combine an ice thermal storage

100

system and high-efficiency air-cooled chillers.

2.5

98

1.431

62

60

1.5

42

40

1.0

35

0.938

0.693

FY 03

04

05

06

0

07

FY 03

04

05

Ice Thermal Storage Air Conditioning Facilities

28

CHIYODA CORPORATION CSR REPORT 2007

0.804

0.5

20
0

1.919

2.0

73

80

29

CHIYODA CORPORATION CSR REPORT 2007

06

07

07

Environmental Report

Environmental Targets, Performance and Evaluation

Office Activities

Area

Fiscal Year 2007 Targets

Fiscal Year 2007 Performance (Examples)

EPC• Practical use and improvement of design
checklists• Released annual checklists for machinery andequipment on the responsible department’s
online server• Prepared a checklist for the legal requirementsof control engineering• Developed an environmentally conscious engineering policy considering the environment• Developed survey and inspection documentsfor organic solvent recovery and treatment
technologies, and utilized these documents inengineering• Prepared green procurement guidelines• Deployed environmental patrols to confirm
thorough waste separation• Participated in neighborhood cleanup activities(104 participants)• Gave tours of company environmental facilities
and held informal meetings with local government agencies• Put up information boards along the officeenvironmental tour course showing facility
summaries, energy conservation benefits andenvironmental benefits• Implemented rooftop greenification, placedplants at entranceways and set flowers atreception desks• Established new production methods

○

27

○

27

○

27

○

16-17

○

16,28

○

—

○

—

• Reduced laboratory waste by 52%
compared with FY2005• Completed set up of storage and management methods

○

30

○

30

• Effects of Environmental Conservation Activities
Environmental conservation activities showed• Design considering reduction of constructionwasteincreased results in many areas in fiscal year 2007. We
will continue working to improve the effectiveness of
our environmental conservation activities by installingenergy-saving facilities for power, gas and water and by• Reduction and proper processing of construction wasteenhancing waste separation.
Area of Activities

1. CO2 reduction

Environmental EffectEconomic Effect(Millions of yen)△ 215 tons of CO2—

2. Reduction in electricity
consumption△ 606,758kWh

47.1

3. Reduction in water
consumption△ 5,128kl

6.9

4. Reduction in gas
consumption△ 17,356m3

2.8

5. Reduction in generalwaste

9,331kg

0.6

6. Reduction in printing
paper

16,400kg

13.0

100%

—

7. Expansion of green officesupply purchasing

OfficeGas Cogeneration at the Yokohama Head Office
R&D• Promote an environmentally conscious community by communicating with local society• Hold regular cleanup activities, patrols for theenvironment and social gatherings regularly
with neighboring residents• Establish tours of eco-friendly facilities in
office buildings• Promote greening campaigns both inside andoutside offices as well as improve the office environment by placing foliage, such as potted plants• Use catalysts and new production methods toreduce the environmental impact• Reduce laboratory waste by 10% vs. FY2005• Set up storage and management methods forchemicals and gases used in R&D

Evaluation Page Fiscal Year 2008 Targets• Suggest environmental proposals tocustomers• Increase recycling rate of constructionwaste• Promote the use of construction
machinery that has no significant
environmental impact

Increase recycling of office waste• Avoid bringing things to the office thatwill be thrown away
• Separate waste correctly• Reduce incinerated waste to under 70%
of FY2007 levels• Develop high-efficiency flue gas desulfurization catalysts• Confirm and comply with laws regarding
pharmaceutical products• Reduce industrial waste by 5% comparedwith the FY2005-2007 average

Environmental Conservation Costs for Fiscal Year 2007
Research andDevelopment
Activities

The following are examples of activities conductedto achieve fiscal year 2007 research and development
targets and goals.

• Establishment of Chemical and Gas Storage andType of Cost

In fiscal year 2007 we finished developing the storage

1. Within operation areas

N/A(2) Global environmental
conservation

Building and Energy Management System (BEMS),
high efficiency lighting, 200kW gas cogeneration facilities,
gas heat pump air conditioning, rooftop greenification,
air conditioning units (called “Sky Enecut”), other

416.9

Waste treatment, recycling activities

75.4

Offices and domestic
construction sites

2. Upstream and downstream

N/A

0

Offices

3. Management activities

Environment Meeting, internal auditing,certification review, on-site environmental management,
management committees, other

179.0

4. R&D activities

Environmental R&D

942.5

Environmental R&D (expenses)

5. Community activities

CSR Report publication, facility tours

24.5

Offices and environmental PR

6. Environmental damage
response

N/A

0

Offices and domestic
construction sites

2005.
(3) Resource recycling

lower than in the reference year of fiscal year 2005,
surpassing our 10 percent reduction target. We believe
this thoroughness was the result of increased awareness among research staff and by establishing strict
procedures for the separation of waste that ensured
laboratory waste was not mixed with other waste.

0

Total

Research facilities at the Koyasu Office & Research Park

30

CHIYODA CORPORATION CSR REPORT 2007

Area of Activity(1) Pollution prevention

and gas that we have been working on since fiscal year

Laboratory waste in fiscal year 2007 was 52 percent

Amount(Millions of yen)management and transportation methods for chemicals• Reduction of Laboratory Waste

Main Activities

Management Methods

Offices
Offices

Offices and domestic
construction sites

1,638.3

Compared with fiscal year 2006, total environmental conservation costs increased approximately 27 percent. The increase consisted mainly of an increase in expenses ofenvironmental R&D activities and an increase in the cost of installing energy-saving office equipment as a global warming countermeasure. The above items were classified
and calculated using Environmental Accounting Guidelines from the Ministry of the Environment of Japan.

31

CHIYODA CORPORATION CSR REPORT 2007

Environmental Report

Environmental Technology

Original Chiyoda Group technologies serve topreserve the environment for the future.

LNG Satellite Terminals

Located close to consumers, LNG satellite terminals(LST) are smaller, secondary LNG storage terminals

We deploy the experience and expertise acquired through global business operations and our research andsupplied by truck from larger primary storage terminals

development organization to develop technologies that contribute to the preservation of the environment.

where LNG imports are first received. The LNG in thestorage tanks at LSTs is gasified using a vaporizer,
adjusted to the required calorific value, and given an

ACETICA®
Technology for
Producing Acetic
Acid

The ACETICA process is a new method developed

odor before being supplied for use. Chiyoda Kosho®

Reactor Section

Purification

Co., Ltd., a Chiyoda Group company, is now working

by Chiyoda Corporation for producing acetic acidusing methanol. It uses a catalyst developed by theto develop and popularize facilities that will allow LSTs

Methanolthat currently supply only natural gas made from LNG

Company to produce a high yield of acetic acid fromcarbon monoxide and methanol. Acetic acid is a key

Reactor

IodideRemovalsolvent used in production of raw materials for textiles
and end-products such as polyethylene terephthalate(PET) bottles. An overseas development assistance(ODA) project in China is using environmentally friendly
ACETICA® technology to eliminate mercury emissions

to also supply forms of energy including heat, electricity,

AceticAcid

hot water, steam and hydrogen.

Incinerator
CO
Makeup
CH3I

Flue
Gas

Air
Fuel

PG

LNG Satellite Terminal for Furukawa-Sky Aluminum Corporation

LG

LNG
storagetank

Acetica® Process Flow Schemein acetic acid production.

CO2 Gas Reforming

BL (boiler)
PG (pressure gauge)
LG (level guage)
LPG (liquefied petroleum gas)
BOG (boil-off gas)
NG (natural gas)

BOG heater

Recently, natural gas has become popular as aPG

LGsource of energy to replace petroleum. Natural gas

B. L

Mixingdrum

Cushion
drum

Mixer

LNG
storagetank

NG
LNG gasifier

helps protect the environment because it contains very

Odorant equipment

LPG storage tanklittle sulfur and nitrogen. A recent area of focus is gasLNG regasifier

Tank lorry

to-liquid (GTL) technologies that convert natural gas

Pressurized Vaporizer

into chemicals for producing methanol, dimethyl ether(DME), synthetic fuel and other liquid fuels.

Photovoltaic
Power
Generating
Facilities

Chiyoda Corporation is developing CO2 gas reforming technology that uses our original catalyst to trans-

Yufutsu GTL Pilot Plant

Photovoltaic power generating facilities are a promising
method for countering global warming. One-hundred
thousand (100,000) kWh/year produced with solar

form CO2 gas, which causes global warming, into aenergy will eliminate the production of 56 tons of CO2

raw material for reforming natural gas. This technology

or the consumption of 25kl, or 125 barrels, of crude oil.

can produce the synthetic hydrogen and carbon

Chiyoda Keiso Co., Ltd., a Chiyoda Group company, ismonoxide gases needed for GTL production. Pilot

aggressively promoting various services that help indus-

plant tests at the JOGMEC* GTL Project** have con-tries reduce energy consumption and use renewable

firmed that it performs as expected.
*JOGMEC: Japan Oil, Gas and Metals National Corporation. A Japanese public corporationthat supports the exploration, development and stockpiling of petroleum, natural
gas and metals.

energy. It is now offering assistance for photovoltaic

200kW Photovoltaic Power Generating Facilities for Mitsui
O.S.K. Lines, Ltd. and International Container Terminal Co., Ltd.

power generating projects ranging from business plandevelopment and New Energy and Industrial
Technology Development Organization (NEDO) grant**GTL Project: This project is developing GTL processes for synthesizing crude oil fromnatural gas.

applications to construction and commissioning.
For more details, please refer to our Annual Report.

32

CHIYODA CORPORATION CSR REPORT 2007

33

CHIYODA CORPORATION CSR REPORT 2007

Global Network (As of July 1, 2007)

Head Office
Yokohama Head Office12-1, Tsurumichuo 2-chome, Tsurumi-ku
Yokohama 230-8601, Japan
Tel: (81) 45-521-1231
Fax: (81) 45-503-0200

Koyasu Office & Research Park
13, Moriya-cho 3-chome, Kanagawa-ku
Yokohama 221-0022, Japan
Tel: (81) 45-441-1268
Fax: (81) 45-441-1297
Research & Development Center
Tel: (81) 45-441-9132
Fax: (81) 45-441-9728

Osaka Office14-10, Nishinakajima 5-chome, Yodogawa-ku
Osaka 532-001, Japan
Tel: (81) 6-6390-3411
Fax: (81) 6-6889-5101

The Hague Representative Office
Parkstraat 83, 2514 JG
The Hague, The Netherlands
Tel: (31) 70-385-9453
Fax: (31) 70-346-3779

Major Subsidiaries & AffiliatedCompanies
Overseas
Engineering BusinessChiyoda Corporation (Shanghai)
29F-Room E, Pufa Tower, No. 588,
Pudong Rd. (S), Pudong New Area,
Shanghai 200120, China
Tel: (86) 21-5877-6266
Fax: (86) 21-5877-6366

Chiyoda International Corporation

Overseas Offices
Abu Dhabi Office
Clock Tower Bldg. Al Najda Street
Abu Dhabi, U.A.E., P.O. Box 43928
Tel: (971) 2-671-7161
Fax: (971) 2-671-7162

Beijing Office
Room No. 1028, China World Tower 1,
Jianguomenwai Street, Beijing, 100004,
China
Tel: (86) 10-6505-2678
Fax: (86) 10-6505-1118

Jakarta Office
9th Floor, MidPlaza Bldg. Jalan Jenderal
Sudirman Kav. 10-11 Jakarta, 10220,
Indonesia
Tel: (62) 21-570-7579
Fax: (62) 21-570-6276

Korea Representative Office1358-8, Tal-dong Nam-ku Ulsan, Korea
Tel: (82) 52-256-5721/5722
Fax: (82) 52-256-5723

Middle East Headquarters Doha Office
Al Mana Tower Airport Road, Doha Qatar,
P.O. Box 20243
Tel: (974) 4622-875/6
Fax: (974) 4622-716

Milan Representative Office
Viale Della Liberazione 18, 20124 Milan, Italy
Tel: (39) 02-303517-111
Fax: (39) 02-303517-35

Singapore Human Resources Office
10 Anson Road, #03-02, International Plaza,
Singapore 079903
Tel: (65) 6324-0080
Fax: (65) 6324-0090

Services: Business activities in the U.S.A.
1177 West Loop South, Suite 680
Houston, TX 77027, U.S.A.
Tel: (1) 713-965-9005
Fax: (1) 713-965-0075

Chiyoda Malaysia Sdn. Bhd.
Services: Design and construction for orders
received in Malaysia
15th Floor, Menara Maxisegar Jalan Pandan
Indah, 4/2 Pandan Indah, 55100
Kuala Lumpur, Malaysia
Tel: (60) 3-4297-0988
Fax: (60) 3-4297-0800
URL: http://www.chiyoda.com.my/

Chiyoda Nigeria Limited
Services: Construction of industrial facilities in
Nigeria

Abuja Office
C/O Peniel Apartments Room No. B2C Plot 171,
IBB Way, Adetokunbo Ademola Crescent,
Wuse I I, Abuja, Nigeria
Tel: (234) 9-4130961
Fax: (234) 9-4130961

Lagos Office
Lindev Plaza 1st Floor
16, Amodu Ojikutu Street
Off Bishop Oluwole Street, Victoria Island,
Lagos, Nigeria
Tel: (234) 1-2613291/2612565/4627238
Fax: (234) 1-2612565

Chiyoda & Public Works Co., Ltd.
Services: Industrial design and construction
for orders received in Myanmar
SEDONA HOTEL Room 307 ~ 309 No. 1,
Kaba Aye Pagoda Road, Yankin Township,
Yangon, Myanmar
Tel: (95) 1-545605
Fax: (95) 1-545227

Chiyoda Petrostar Ltd.
Services: Design and construction of industrial
facilities for orders received in Saudi
ArabiaAl-Khobar Office
P.O. Box 31707, Al-Khobar 31952
The Kingdom of Saudi Arabia
Tel: (966) 3-864-0839
Fax: (966) 3-864-0986

The Netherlands

Jeddah Head Office

Italy

P.O. Box 6188, Jeddah 21442
The Kingdom of Saudi Arabia
Tel: (966) 2-647-0558
Fax: (966) 2-647-1908
Tlx: 601062 MOTSIM

China
Saudi Arabia

Nigeria

Chiyoda Philippines Corporation
Services: Design services related to overseas
projects
Chiyoda Bldg. Meralco Avenue Corner,
General Araneta Street, San Antonio,
Pasig City, Metro Manila, Philippines
Tel: (63) 2-636-1001/8
Fax: (63) 2-636-1013/1023
URL: http://www.chiyodaphil.com.ph

Oman India

Japan

Thailand
Malaysia
U.A.E.
Qatar

U.S.A.

MyanmarPhilippines

Singapore
Head Office
Overseas Offices
Project Companies
Subsidiaries & Affiliated Companies

Indonesia

Chiyoda Singapore (Pte) Limited
Services: Design and construction of industrial
facilities
14 International Business Park Jurong East,
Singapore 609922
Tel: (65) 6563-3488
Fax: (65) 6567-5231
URL: http://www.chiyoda.com.sg/

Chiyoda (Thailand) Limited
140/39 ITF Tower II, Suite H 18th Floor,
Silom Road, Kwaeng Suriyawong,
Khet Bangrak, Bangkok 10500, Thailand
Tel: (66) 2-231-6258/6259
Fax: (66) 2-231-6260

L&T-Chiyoda Limited
Services: Design services related to overseas
projects
B.P. Estate, National Highway No. 8, Chhani
Baroda-391740, Gujarat State, India
Tel: (91) 265-2771003/2772855
Fax: (91) 265-2774985

PT. Chiyoda International Indonesia
Services: Construction of industrial facilities inIndonesia
MENARA HIJAU, 10th Floor Suite 1001 Jl.
Mt. Haryono Kav. 33 Jakarta Selatan 12770,
Indonesia
Tel: (62) 21-798-4680
Fax: (62) 21-798-6174

Domestic

Major Subsidiaries & AffiliatedCompanies
DomesticEngineering BusinessChiyoda Advanced Solutions Corporation
Services: Advanced engineering consulting
1-25, Shinurashima-cho 1-chome
Kanagawa-ku, Yokohama 221-0031, Japan
Tel: (81) 45-441-1260
Fax: (81) 45-441-1264
URL: http://www.chiyoda-as.co.jp/

Chiyoda Keiso Co., Ltd.
Services: Electrical and instrumentation
design, construction services
13, Moriya-cho 3-chome, Kanagawa-ku
Yokohama 221-0022, Japan
Tel: (81) 45-441-1433
Fax: (81) 45-441-1434
URL: http://www.ckc.chiyoda.co.jp/

Chiyoda Kosho Co., Ltd.

Project Companies
Oman, Qatar, Russia

34

RussiaKorea

CHIYODA CORPORATION CSR REPORT 2007

Services: Domestic construction andmaintenance34-26, Tsurumichuo 4-chome, Tsurumi-ku
Yokohama 230-0051, Japan
Tel: (81) 45-506-7662
Fax: (81) 45-506-7667
URL: http://www.cks-ykh.co.jp/

Chiyoda TechnoAce Co., Ltd.
Services: Pharmaceuticals, civil engineering
construction for domestic oil facilities
13, Moriya-cho 3-chome, Kanagawa-ku
Yokohama 221-0022, Japan
Tel: (81) 45-441-9600
Fax: (81) 45-450-5236
URL: http://www.cta.chiyoda.co.jp/

Chiyoda U-Tech Co., Ltd.

Services: Travel services, shipping and air
freight agent
7-8, Shibakoen 1-chome, Minato-ku
Tokyo 105-0011, Japan
Tel: (81) 3-5470-0880
Fax: (81) 3-5470-0890
URL: http://www.arrowhead.co.jp/

Arrow Mates Co., Ltd.

Services: Consulting and human resources
placement services
15-19, Tsurumichuo 2-chome, Tsurumi-ku
Yokohama 230-0051, Japan
Tel: (81) 45-502-7618
Fax: (81) 45-503-5399
URL: http://www.utc-yokohama.com/

Other Businesses
Arrow Business Consulting Corporation
Services: Consulting services for finance andaccounting
32-1, Tsurumichuo 4-chome, Tsurumi-ku
Yokohama 230-0051, Japan
Tel: (81) 45-502-5774
Fax: (81) 45-502-5753

35

Arrowhead International Corporation

Services: Placement of technicians and office
staff; educational research, reemployment support and administrative, personnel and procurement
services
43, Hon-cho 4-chome, Naka-ku
Yokohama 231-0005, Japan
Tel: (81) 45-662-1126
Fax: (81) 45-662-1173
URL: http://www.arrowmates.co.jp/

IT Engineering Limited
Services: Business and system development,
computer management, information
management
1-25, Shinurashima-cho 1-chome, Kanagawa-ku
Yokohama 221-0031, Japan
Tel: (81) 45-441-9123
Fax: (81) 45-441-1466
URL: http://www.ite.co.jp/

CHIYODA CORPORATION CSR REPORT 2007