Chiyoda GroupCSR Activities 2015
- Digest Version

IR, PR & CSR Section
CHIYODA CORPORATIONTo Our Stakeholders
Publication of Chiyoda GroupCSR Activities 2015 - Digest Version
The Chiyoda Group, as an integrated engineering company,
has been pledging to contribute to sustainable developmentof society through its business activities, as well as toconstantly strive to increase corporate value and earn thetrust and understanding of all stakeholders.
To ensure that readers are able to correctly understand its
CSR activities, the Group discloses a variety of information on
our website named “Commitment to CSR” as well as annual
report. In addition, the Group hereby publishes the digest
version of the Group’s CSR Activities 2015 highlighting thelatest activities.

Legacy for the 21st Century
issued in 1972

The Group will continue to make improvements to its CSR report, easier to understand,
while reflecting the opinions or comments of stakeholders regarding the report.

1

Contents
1. Corporate Profile

3 ～ 4

2. Message from the President

5 ～ 6

3. The Chiyoda Group’s CSR
3 - 1 CSR Promotion Structure7

3 - 2 CSR Vision

8 ～ 104. Introduction of the Activities in FY201411 CSR Vision1

A Reliable Company

12 ～ 18

 CSR Vision2

Environmental Initiatives

19 ～ 23

 CSR Vision3

Social Contributions

24 ～ 32

 CSR Vision4

Respect for Human Rights

33 ～ 37

 CSR Vision5

Commitment to Fairness

38 ～ 44

Appendix：

Overseas Network

45

Major Group Companies in Japan

46

Editorial Policy

47
2

１. Corporate Profile
CompanyName

CHIYODA CORPORATION

Established

January 20, 1948

P a i d - i n
C a p i t a l

43,396 Million Yen (as of March 31, 2015)

R e ve n u e s

481.0 Billion Yen （Consolidated: as of March 31, 2015）

Number of
Employees

6,097 people（Consolidated: as of March 31, 2015）

President& C E O

Shogo Shibuya

Main BusinessF i e l d s

Integrated Engineering & Construction Service Provider

Main Offices

Chiyoda Global Headquarters （Minatomirai）
Koyasu Office & Research ParkP r o j e c t
E xp e r ie n ce

Over 60 countries

All Rights Reserved. CHIYODA 20153

Consolidated Financial Highlights (Billion Yen)
Revenues

New Orders

Net Income

746.8

16.1

481.0
612.5

14.4

446.1
398.9

589.9

13.4
11.0

402.9
247.1 254.7

0.8

’10

’10

235.3

’10

’11 ’12 ’13 ’14’11 ’12 ’13 ’14

Revenues by Industry （FY2014）’11 ’12 ’13 ’14（FY）

Revenues by Region （FY2014）

LNG Plants
Gas Utilities

8%
22%
53%

24%

Overseas

General Chemicals& Industries

9%

Petroleum &Petrochemicals

8%

Environment &OthersDomestic
76%

4

2. Message from the President(1/2)
【Corporate philosophy】
Enhance our business in aiming for harmony between energy
and the environment and contribute to the sustainable
development of a society as an integrated engineering company
through the use of our collective wisdom and painstakingly
developed technology.

The Chiyoda Group’s Corporate Social Responsibility (CSR)
The Chiyoda Group has worked to contribute to the advancement of society with the aim of realizing its
corporate philosophy centered on “Energy and Environment in Harmony.” As an engineering company,
we build infrastructure that requires state-of-the-art technologies in various countries. The energy
industry has recently undergone structural changes such as the shift to natural gas and renewableenergy. Rapid changes have also taken place in the industry environment, notably the shale revolutionthat has revitalized the North American market. The demands of society are becoming more diverse aswell.
In this context, I believe the Chiyoda Group’s corporate social responsibility is to accurately assess
current demands and deploy engineering to provide the value that society requires for addressing
global challenges such as eradication of poverty, preservation of environment issues and stable supplyof resources, consistent with our Corporate Philosophy.

5

2. Message from the President(2/2)
Respecting the Global Code and Ensuring Complete Compliance
The energy-related industries, where Chiyoda plays its major roles, are amid the structural changes
in not only Chiyoda but also their business regions and partners which are to diversify more than ever.
A fair code that can be understood by one and all is essential. In that sense, we have continuously
supported and will continue to support the spirit of the United Nations Global Compact (*UNGC) for
human rights, labor standards, environment and anti-corruption. 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 to understand and comply with the
Chiyoda Group Code of Conduct, which reflects the spirit of the UNGC.
We are particularly endeavoring to improve transparency in all Group business activities inconnection with adhering to Japanese and overseas laws and regulations, international agreements,
and respect for human rights, compliance with harassment prevention, anti-corruption, information
security and the like. We have newly established the Compliance Committee under the direct controlof the Executive Committee and the Group Company Liaison Meeting on Compliance.

* 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,
the environment and anti-corruption.

President & CEO

6

3-1. CSR Promotion Structure
In April 2015, Chiyoda reorganized CSR into IR, PR & CSR Section under Corporate Planning Unit in
Corporate Planning & Management Division.
This reorganization aims to grasp the exact requirements of society expected of the Chiyoda Group andeffectively proceed with living up to such expectations so that Chiyoda can reinforce CSR in collaboration
with its domestic and overseas group companies. In this respect, “Group Liaison Meeting on CSR“ *1 has
also been set up. Besides, the CSR promotion staff*2 system has been adopted to further advance CSR
actibities.
We will also continue to support the recovery from the Great East Japan Earthquake through ourbusiness and by supporting employee volunteers in the affected areas.
*1 “Group Liaison Meeting on CSR”,

comprising of Chiyoda subsidiaries inJapan, means an organization that
deliberates CSR report / establishes
annual program on CSR activities,
compiles business achievements / social
contribution activities, activation ofenvironment-related and CSR
activities/promotion of United Nations
Global Compact among the Chiyoda
Group.
*2 “CSR promotion staff” are volunteer

members who will take the lead in CSR
activities consisting of employees inall Chiyoda group companies.

7

3-2. Chiyoda Group CSR Vision (1/3)
Our corporate social responsibility is to fulfill the Chiyoda Group Corporate Philosophy.
The Group corporate philosophy shows the mission that we should fulfill. The CSR Visions are values that
all Chiyoda Group members should share in order to achieve this mission.
The Group has also established the Code of Conduct of the Chiyoda Group and the Compliance Manual（Employee’s Practical Guide） as guides to rely on when acting according to our mission and values.

Chiyoda Group Corporate Philosophy
Enhance our business in aiming for harmony between energy and theenvironment and contribute to the sustainable development of a society as anintegrated engineering company through the use of our collective wisdom andpainstakingly developed technology.

（Our mission： Contribute to Society and Environment）

Chiyoda Group CSR Visions
1. A Reliable Company
2. Environmental Initiatives
3. Social Contributions throughBusiness Activities
4. Respect for Human Rights
5. Commitment to Fairness

Employee’s Practical Guide

Compliance manual(Employee’s
Practical Guide)8

3-2. Chiyoda Group CSR Vision (2/3)
In November 2012, the Chiyoda Group joined the United Nations Global Compact (UNGC*) to advance our
CSR efforts on a global basis including addressing the issues of human rights, labor, the environment, anticorruption etc. in line with the UNGC principles as the global codes understood by one and all, and to firmly
establish CSR as a unifying force of the Group.

Chiyoda Group
Corporate Philosophy

Chiyoda GroupCSR Visions• Increase Corporate Value• Provide the value that
Society Requires• Contribute to the
Sustainable Development

The Group has been participating inthe study group of UNGC network
Japan on:The United Nation's
Global Compact

・ Anti-corruption
・ Supply Chain Management
・ Human Rights
・ SRI / ESG

9

3-2. Chiyoda Group CSR Vision(3/3)
Our Values Chiyoda Group CSR Visions
The Chiyoda Group pledges to contribute to the sustainable
development of society through its business activities, andto constantly strive to increase corporate value and earn thetrust and understanding of all stakeholders by adhering to
the following principles.
CSR vision 1

Compliance with International
Guidelines
UN Global Compact

A Reliable Company

We strive to be a reliable company to our customers andーother business partners by providing world-class technologies
and knowledge.

CSR vision 2

Environmental Initiatives

CSR vision 3

Social Contributions throughBusiness Activities

Principle 7: Approach to challenges
We will work to remain to be an invaluable company to society Principle 8: Greater responsibility
by utilizing refined technologies to promote harmony between Principle 9: Development and
Diffusion
the global environment and economic and social activities.

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

ーRespect for Human Rights
Principle 1: Human rights
Principle 2: Not complicit
We are dedicated to respecting the human rights of all
people. We will create a corporate culture where the diversity, Principle 3: Freedom of associationindividuality and character of employees are respected, where Principle 4: Labour
Principle 5: Abolition of child labour
people are motivated to do their best, and of which
Principle 6: Discrimination in respect
employees and their families are proud.

Action Policies
・Provide industrial plants that earn customer trust
through engineering of outstanding quality
・Share our CSR principles with suppliers and otherbusiness partners
・Develop and provide environmentally friendly
energy and conservation technologies
・Conduct business activities that contribute toenvironmental conservation

・Contribute to society through integrated
engineeringbusiness activities
・Enhance social contribution activities by providing
knowledge and labor

CSR vision 4

CSR vision 5

Commitment to Fairness

We are dedicated to achieving even greater transparency
Principle 10: Anti-corruption
and stability by conducting our operations fairly in accordancewith the highest ethical standards.

・Create a lively and energetic working environmentand help employees develop their talents
・Instill in everyone involved that safety is a corevalue

・Conduct business activities based on strict
compliance and a high degree of transparency
・Conduct a thorough risk management program104. Introduction of the Activities in FY2014

 CSR Vision1

A Reliable Company

12 ～ 18

 CSR Vision2

Environmental Initiatives

19 ～ 23

 CSR Vision3

Social Contributions through 24 ～ 32
Business Activities CSR Vision4

Respect for Human Rights

33 ～ 37

 CSR Vision5

Commitment to Fairness

38 ～ 44

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CSR Vision 1

A Reliable Company

The Chiyoda Group strive to be a reliable company to our customers and other business
partners by providing world-class technologies and knowledge.
1. Action Policies
・ Provide reliable plants through high quality engineering, which fulfill customers’satisfaction
・ Share our CSR principles with suppliers and other business partners
2. Activity
・Quality Management Initiatives
・Information Security Management
・Collaboration with Clients
・Working with Business Partners
3. Activities in FY2014① Technical Dialogue with Customers and Partners② National Resilient System：Structuring to EPC③ Project for Establishing a New Production Line
－Challenge to The First in the World –[Comments from the client]④ Participating in the study group of UNGC network Japan
12

CSR Vision 1 A Reliable Company- Technical Dialogue with Customers and Partners
Technical Dialogue with Customers and Partners
The Chiyoda Group holds annual dialogues (conferences) with its customers and business partners (including machineryand equipment manufacturers, construction companies, inspection companies) in order to present and discuss the most
up-to-date technologies, and to reflect the results of discussion in its work.
Event

Key Agenda

Participating Companies

Interphex Japan 2014

Chiyoda/CTA*1 exhibited at Interphex Japan 2014, the exhibition for various kinds ofequipment, systems and technology for the production, research and development ofpharmaceuticals, cosmetics and the like .

Pharmaceutical companies(approx. 800 attendees)

Seminar for improving skills ofInternal Auditors in Quality
Management System

Training for Internal Auditor” is the one of the key factors of successful Quality Management
System.
CUC*2 runs the annual seminar to support continual improvement of the System.

Chemical Company, Machinery/
Equipment Engineering Company(30)North America CT-121 Users
Group Conference

Technology Exchange with The North American CT-121 Users

North America CT-121 User
companies.
(approx. 50 attendees)

CST EPM User Seminar 2014 focused on “Develop a competitive system in the midst of
globalization”. It has been held annually since 2002 for Primavera users. Following
opportunities were provided for the users: Hearing users’ requests and solving the
problems, and communicating with the other users. The system construction and solutions
using a package which leads the international community was introduced to each industry
relating to EPC*5, ETO*6, and O&M*7. CST issued the message that CST would like tosupport global companies and become their strategic partner by following ways (1) Pursuinga global best practice within the industry, (2) Innovating solution which has not introduced inJapan and so forth.

Engineering companies andconstruction companies. (Approx. 50
attendees)

ChAS Forum 2014

Technology Exchange with the theme of Visualization of Asset Integrity Management for
Preventive MaintenanceMore than 30 businesses andorganizations and Chiyoda Group
companies.
(Over 200 attendees)

INCHEM TOKYO 2013

INCHEM TOKYO is the Japan's only exhibition specialized in chemical/process industries
and environment/engineering. Since its first opening in 1966, this exhibition has a long
history and it has been contributing to the development of these industries along theJapanese economic growth.

Chemical Company Machinery/
Equipment Engineering Company(approx. over 1,000 attendees)

PM*8 Symposium 2014

Project Management Association of Japan (PMAJ) has held a symposium specialized for
project management since 1997.In the symposium, CST has set up booth since 1999,
packaging case examples of EPM system construction, and providing an explanation about
Primavera, PRISM and Aconex.

Engineering companies andconstruction companies.
(Approx. 30 attendees)

MES*9 DAYThe theme of this seminar was “Regulatory compliance and the use of MES solutions”. CST
caught a trend of the industry by inviting the ex-FDA inspector as a keynote speaker. MES
DAY provided the pharmaceutical companies with interesting and important information
about “Investigating the trend and compliance of the laws and regulations”.

40 pharmaceutical companies. 60
attendees

CST*3 EPM*4 User Seminar 2014
~Approach toward project
management infrastructure
construction among global
enterprises in the innovation age~

*1 CTA：Chiyoda TechnoAce
Co., Ltd.
*2 CUC：Chiyoda U-Tech
Co., Ltd.
*3 CST：Chiyoda System
Technologies Co.
*4 EPM：Enterprise ProjectManagement*5 EPC：Engineering,
Procurement &Construction*6 ETO：Engineering to Order*7 O&M：Operation and
Maintenance*8 PM：Project Management*9 MES: Manufacturing
Execution System

13

CSR Vision 1 A Reliable Company- National Resilient System : Structuring to EPC
Amid the ongoing changes in the business environment, including the growing size of plants, theincreasing sophistication in equipment and demands for earlier project completion, the Chiyoda Grouphas been continuously working to fulfill costomer satisfaction through its engineering of outstanding
quality.
National Resilient System : Structuring to EPC
The Great East Japan Earthquake caused the unprecedentedly
tremendous damages to the Tohoku district (the Northeast
district) in Japan in 2011. Particularly, the energy supply
facilities were damaged so severely that the energy supply was
adversely affected not only in the Tohoku district but also
nationwide, which resulted in disrupting the means oftransportations and communications to take recovery measures
for the disaster. People in the disaster-hit areas and refuge
shelters were forced to endure much inconvenient lives. The
damages on food processing / pharmaceutical manufacturing
facilities and further the disruption of supply chain caused suchgrave social and economic problems as worsening healthconditions of people in the disaster-hit areas and disturbing
business activities.

Photo of Fire Fighting Agency

Taking these experiences as lessons learned, the Government of Japan enacted the National Resilience Law in 2014.
In order to ensure Energy Supply as one of the purposes of the Law, the Ministry of Economy, Trade and Industry (METI)
has been undertaking to study the following measures for industrial facilities including the quake-proof investigation of all
the petroleum refineries nationwide, particularly considering the possibilities of Nankai Trough Quake and Earthquake that
directly hits Tokyo area:
To shut down safely
To prevent tremendous secondary disasters
To attain a stable energy supply

14

CSR Vision 1 A Reliable Company- National Resilient System : Structuring to EPC
Once, Japan reviewed various quakeproof standards due to the fact that a lot ofbuildings and facilities fell down andcaused a large number of casualties in the
Hanshin-Awaji Earthquake. The laws areapplied to buildings and facilities to be
newly constructed, while the existing ones
are not required to became quake-proof
analysis. Further, the existing facilities inparticular are required to take themeasures during their operations, it has
been considered difficult to revamp themin view of the relevant costs and technicalaspects.
The Group supports companies having the above issues. As part of this, the Group has undertaken the
study on business continuity plan, securing of local residents’ safe and sound environments, and has
undertaken the quake-proof analysis to further contribute to developing the Japanese economy so that it
may provide the countermeasures for early recovery from damages due to earthquakes and tunami.
Based on such experiences, Chiyoda cooperated with METI in the above METI’s quake-proof
investigation from its planning stage and prepared the manuals and scheme on quake-proof analysis
and measures with METI and experts.
Now, The Group has been continuously undertaking quake-proof investigations on energy-supply
facilities for companies with subsidies granted, and further performing the revamping works. The Groupwill continue to proceed with engineering the resilient infrastructure to realize the stable energy supply.
15

CSR Vision 1 A Reliable Company- Project for Establishing a New Production Line
Project for Establishing a New Production Line－ Challenge to the First in the World －In August 2014, the new production line of fluid infusion was completed in the Oigawa plant, AY
Pharmaceuticals Co., Ltd’s main production base in Shizuoka Prefecture. The line is the first of its
kind in the world engineered and built adopting the standing bag system.
This system received the prestigious industrial award inJapan “Good-design Award 2015 “. Chiyoda concentrated
its various engineering expertise in pharmaceutical facilities
on collaborating with AY Pharmaceuticals in their new
challenge of pursuing a high-quality and easy-to-use Fluid
Infusion to realize their corporate philosophy “One drop ofthought flows to you all the time.” The Group will continue tomake every effort to become such a company as being
recognized No.1 in reliability and safety and contribute to
the society through its high quality engineering inpharmaceutical facilities.

16

CSR Vision 1 A Reliable Company- Project for Establishing a New Production Line
Comments from the Client

Osamu Ishihara
General Manager, Shizuoka Factory
AY Pharmaceuticals Co., Ltd.
AY Pharmaceuticals Co., Ltd. has contributed to societies through the stable supply of high quality fluid infusion product.
Fluid infusion used to be filled initially in a glass bin and then on plastic bottles or bags. This time, we have developed thefirst standing bag system in the world to meet with the practical needs in the medical fields; accuracy and quickness.
Further, we have established a comprehensive production line from the materials for fluid infusion bag to the final
products to strive for the stable operation through sophisticated production control as well as intensive quality control. We
requested Chiyoda to follow up various changes during the engineering and construction and received quick and flexible
response.
It is the very essence of engineering that designing facilities is carried out not only from hardware aspects, but also
manufacturer’s human-friendly viewpoint with a good imagination.
My opinion is that the facilities designed and built based on a good relationship between both sides of a facility owner andan engineering company will be evolved in the course of operating the facility, because both sides’ ideas are shared to
be incorporated therein. We have been able to gather both sides’ technological expertise by forming mutually reliable
relationships.
Thanks to the Chiyoda’s engineers, we are able to stably deliver the first standing bag in the world to patients. We
appreciate the strong will of all the Chiyoda members. They are the group of engineers with whom we would like to work
together again. Thank you.

17

CSR Vision 1 A Reliable Company- Participating in the study group of UNGC network Japan
Ongoing Initiatives based on United Nation's Global Compact
In November 2012, the Chiyoda Group joined the United Nations Global Compact (UNGC*) toadvance our CSR efforts on a global basis. In order to effectively promote CSR, the Group has been
participating in the study groups on SRI (Socially Responsible Investment)/ESG (Environmental,
Social & Governance), Anti-corruption and Supply Chain Management.
The study group on Anti-corruption has regularly discussed and studied appropriate preventive
actions among the group members. Corruption is a large risk of damaging organizational function
and reputation as well as leading to a civil action, administrative deposition, or criminal prosecution.
The study group on supply chain management has studied promotion for CSR procurement throughcooperation between buyers and suppliers, also considering such elements as environment, decent
work practice and human rights.
In the China-Japan-Korea (CJK) Roundtable
Conference, the importance of measures formaterializing the low-carbon society, and alsos t a k e h o l d e r eng a g e me n t t hr o ug h CS R
procurement was discussed. Through theconference, it was reconfirmed how important it
is for Chiyoda Group to keep promoting overall
CSR activities.
Meantime, the Chiyoda Group support for
conducting the Conference by assigning into
employee as a member of the linguist staff.

The CJK Roundtable Conference

18CSR Vision 2 Environmental Initiatives
The Chiyoda Group will work to remain to be an invaluable company to society by
utilizing refined technologies to promote harmony between the global environment andeconomic and social activities.
1. Action Policies
・ Develop and provide environmentally friendly energy and conservation technologies
・ Conduct business activities that contribute to environmental conservation

2. Activity
・ Environmental Management System (EMS)・ Environmental Conservation Activities
・ Low Carbon Society
・ Chiyoda Group Companies Activities
・ Biodiversity
・ Environmental Data

3. Activities in FY2014① Overview of Chiyoda's Environmental Technologies② Chiyoda Group Companies Activities③ Internal Activities / Forest Preservation Activities

4. Material Flow in business activities

19

CSR Vision 2 Environmental Initiatives- Overview of Chiyoda's Environmental Technologies

CT-CO2 AR®: High Efficiency Synthetic Gas Production Using CO2
Chiyoda Group has accomplished effective utilization of CO2 by developing a highefficiency reforming process—CT-CO2 AR®—employing a novel catalyst. This catalyst
was already commercialized in an existing synthetic gas plant last year, exhibiting smoothand safe operation.
The technology, comprising of a catalyst with high resistance to carbon formation,
produces synthetic gas from natural gas with higher efficiency than conventional reforming
technology. It reduces energy consumption by around 10% and reduces carbon dioxide
emission drastically.
CT-CO2 AR® can not only reduce energy consumption by replacing
the existing catalyst with a superior one, but can also achieve
remarkable environmental benefits when applied to grass-root
plants. Furthermore, it leads to resource minimization by
downsizing facilities, and is expected to effectively utilize the CO2
contained in natural gas.
The technology succeeds in greatly reducing the environmental
burden from chemical plants, such as oxo-alcohols and acetic
acid.

High Efficiency Catalyst
for reforming CO2

20

CSR Vision 2 Environmental Initiatives- Overview of Chiyoda's Environmental Technologies
The Development of a New Manufacturing Process for Production of Propylene
Propylene, one of the basic industrial chemicals, is mainly produced by thermal steamcracking of hydrocarbon feedstock such as naphtha at present and alternative methods aredesired to improve both high energy consumption and low propylene selectivity.
The Group has been developing an energy saving propylene manufacturing process bymeans of fixed-bed-type catalytic cracking using our own zeolite catalysts. We havereceived high appraisal for the results and won the Best Paper Award in the Fuels &Petrochemical Division of the American Institute of Chemical Engineers.
The Group will accelerate its research and development
to commercialize this technology and contribute tosaving energy and reducing CO2 emissions by applying it
to non-conventional fossil resources such as shale gas
and oil.

Best Paper Award

21

CSR Vision 2 Environmental Initiatives- Chiyoda Group Companies Activities
Overseas：Chiyoda Philippines Corporation (CPh)CPh renewed commitment to our society by planting more than one hundred fifty (150) saplings at Sitio
Labahan, Barangay San Isidro, Angono, Rizal last April 05, 2014.
The activity was participated by sixty five (65) employees headed by our former President and CEO Mr.
Kazuhisa Yanagihara.
The activity was also meant to strengthen the camaraderie among employees by planting trees andshows that we care about the environment.

Japan：Chiyoda TechnoAce Co., Ltd. (CTA)
Energy saving is one of the most important issues of animal
experimental facilities because a lot of energy is used in order tooperate an air conditioning system for 24 hours, meet severe
requirements for air quality and take in a large volume of outsideair (ventilation rate).
To cope with the above issues, Chiyoda TechoAce introduced
Demand Control Ventilation (DCV). This system is expected tosave energy by reducing ventilation rate according to the animal
occupancy or other good indoor air quality factors.
Through the series of our field tests incommissioning phase, we have verified
that this air conditioning system works
sufficiently for future DCV in terms oftemperature uniformity andpressurization controllability.
22

CSR Vision 2 Environmental Initiatives- Material flow in business activities(FY2014)
INPUT*1 Green Procurement : Procurement thatgives preference to eco-friendly
equipment and materials.
Green
Procurement *1

Offices
Electricity・・・・・11,690,000kWh
Water・・・・・・・・・・・・・14,000kl
Gas・・・・・・・・・・・・・・129,000m3
Paper・・・・・・・・・・・・・・128tons

Recycling facilities

Intermediate
Treatment facilities
Domestic construction sites
Recycling rate
(excluding sludge)・・・・・・・92%

Domestic construction sites
Electricity・・・・・・・・・510,000kWh
Construction water ・・・・3,000m3
Daily life water ・・・・・・・ 3,000m3
Diesel oil・・・・・・・・・・・・・・・1.273kl
Kerosene・・・・・・・・・・・・・・・・ 7kl
Ready mixed concrete・80,000tons
Asphalt concrete・・・・・11,000tons
Steel・・・・・・・・・・・・・・・15,000tons

Business Activities(EPC*2, Office, and development activities)*2 EPC：Engineering, procurement
and construction

Offices
Recycling rate・・・・・・・・・95.8%

OUTPUT
Final disposal site
Final disposal quantity(excluding sludge andincineration ash)・・・・・・・・・・・・1,435 tons

Offices
Greenhouse gas (CO2 only)
SCOPE2・・・・・・・・・・ 6,500 tons
Total waste・・・・・・・・・247 tons

Domestic construction sites
Greenhouse gas (CO2 only)
SCOPE1 ・ ・・・・・・・・・ 3,310 tons
SCOPE2 ・ ・・・・・・・・・ 281 tons
Chemical substances(including VOC) ・・・・ 12.2 tons
Industrial waste(excluding sludge)・・ 19,209 tons

23

CSR Vision 3 Social Contributions through Business Activities
Through our engineering business in Japan and overseas, the Chiyoda Group contributes
to local communities in ways including human resources development, technology
transfer and environmental protection.
1. Action Policies･ Contribute to society through integrated engineering business activities･ Enhance social contribution activities by providing knowledge and labor
2. Activity
・ Contribution to Local Communities
・ Human Resources
・ Fund raising / Donations
3. Activities in FY2014① Providing Technical Training for Engineers② Social Contribution Activities in 2014
- Volunteer Activities in the area of Great East Japan Earthquake- Collaboration with Yokohama city Council of Social Welfare/Fundraising ・Donations- Cleanup Campaigns/ Environmental Lecture/ Human Resources- Overseas Activities

24

CSR Vision 3 Social Contributions through Business Activities- Providing Technical Training for Engineers

Providing Technical Training for Engineers
The Chiyoda Group has, since 1976, provided technical training for young engineers and students withproject engineering training and, in recent years particularly, has been trying to assist in propagating thedevelopment of human resources in not only resource rich countries such as Mozambique, Qatar,
Saudi Arabia and the United Arab Emirates, but also in non resource-rich countries like South Korea.
The development of the nation’s human resources has recently been ranked as a top priority in many
resource-rich countries, including Mozambique, Qatar, Saudi Arabia and , accordingly, the Japanese
government has responded positively for the energy security. The Group’s efforts in providing training
programs for these countries have beenhighly appreciated by the Japanese
government.
We hope that these young engineers will
become tomorrow’s leaders, who willserve as bridges between those countries
and Japan, and the Chiyoda Groupintends to provide continued support indeveloping the skills of human resources
wherever required.
Farewell party for trainees
from Mozambique25

CSR Vision 3 Social Contributions through Business Activities- Volunteer Activities

Volunteer Activities
The Group has been supporting to promote social contribution under the motto of “CSR to be promoted by each as aparticipant.” As part of this, volunteer members have been dispatched to the disaster-affected areas. This fiscal year, thevolunteer activities were collaboration with the local party through environmental lessons to the kindergarten children,
reforestation and developing energy circulation system. In addition, supporting the construction of a workplace to be used
for making regional products and also used for an administration office of the area tourism. Furthermore, the Group’s
employees have also visited a junior high school annually and given a lecture to the students on its global activities. The
Group also accepted them on their school trip to Chiyoda Global Headquarters in Yokohama.
The Group constantly continues with its efforts to improve its activities by way of exchanging views with regional experts
or local residents, and through discussions among the volunteer members including in house questionnaires.
Collaboration with
Yokohama city
Council of Social Welfare

Main Activities Implemented in fiscal year ended March 2015
(FY 2014), including domestic Group
Volunteer Activities
in the area ofGreat East Japan Earthquake

Dispatch of Lectures
to Universities

Contribution Activities
for Local Communities
Internship

Cleanup Campaign

Visiting Seminars
and Career
Education Supports
Workplace Experience Program（Job Shadowing)

Cooperation for university education
activities (dispatch of lecturers)

16 people

Training for interns

67 people

Visiting seminars(incl. non-internship workplace tours)

7 times

Community cleanup campaigns

Total of 100 people

ECOCAP program to enable thepurchase of vaccines

198,316 caps
(equ-231 persons)

Disaster-hit areas support(dispatch of volunteers)

37 people

Support to challenged people

・In-house sale events :7 times
・Inviting 50 people to a concert

Food aid activity as TABLE FOR TWO

Total of 1,817 meals

Collaboration with NPO

・Harvest Japan・Food Bank Yamanashi

26

CSR Vision 3 Social Contributions through Business Activities- Volunteer Activities in the area of Great East Japan Earthquake Location
 Otuchi（Iwate）
 Kamaishi（Iwate）

Oraga-Otuchi Yume Hiroba
Kamaishi Forestry Association,Kirikiri-koku andUnited Green Term November, 2012 – May, 2015
Dispatched 30 volunteers * 2 times/year June, 2015 – present
Dispatched 10 volunteers * 6 times/year

 Main Activities Support to promote regional societies

 Assistance for reconstruction at Yokohama
 “Yubeshi no Kai” in-house sale events of goods made in
Nagahora-Genki Village
12 times/year

Lecture by top of the secretariat
of Nagahora-Genki Village (left)
Yubeshi no Kai(right)27

CSR Vision 3 Social Contributions through Business Activities- Collaboration with Yokohama city Council of Social Welfare/Fundraising ・Donations
Invitation to the Japan Philharmonic Orchestra （Dec.’14 ）Presentation Ceremony at Yokohama city
Council of Social Welfare

Heart-made Sale
In-house sale events of goods made bychallenged people are periodically heldon every other month.

Participating Support Program for Children in developing
Countries• Table for Two (TFT):
Implementing the TFT program in the cafeteria at its Koyasu
Office & Research Park to provide support to children.
In 2014 FY, a total of 1,817 meals under the TFT program wereordered with twenty yen (20 yen) for each meal donated.

• Eco cap campaign

UNICEF Foreign Coin
Fund-raising Activity

Used plastic bottle caps (ECOCAP) are utilized for purchasing
vaccines for children. 860 caps earn 20 Japanese Yen, whichenables to purchase the polio vaccination for one child. Somegroup of employee volunteers started the movement by installing
Ecocaps collection box in December, 2013 and the movement
has expanded to be company-wide since August, 2014.
Meantime, Chiyoda Kosho Co., Ltd. has been promoting Ecocap
Movement since June, 2010.

28

CSR Vision 3 Social Contributions through Business Activities- Cleanup Campaigns/ Environmental Lecture/ Human Resources
Community Cleanup Campaigns

Workplace on-site training for high school students（Aug.’15）

Visiting Seminar for high school Students（Nov.’15）
29

CSR Vision 3 Social Contributions through Business Activities- Overseas Activities ： Thailand / India
ThailandDonated school supplies as well asbooks to elementary school students

India
Blood donation program

Providing used office furniture for police office(we received a certificate of appreciation for our activities)

30

CSR Vision 3 Social Contributions through Business Activities- Overseas Activities ： Myanmar / Malaysia / Singapore
Myanmar:Chiyoda CPW donated umbrellas toprotect children from strong sunshine

Malaysia:
Having our ongoing
Petron project inNegeri Sembilan, weare determined to givesomething back to the
local community andhad selected local
orphanage named“Rumah Anak-AnakYatim Darul Aminan.”
Singapore:
2014, CRC came across the “Adopt a Bank Box”
section in the Food Bank Website, whereby a box will
be adopted, and collect unwanted yet unopened andunexpired food items. These food items will then be
made available to those in need, namely community
service providers etc., via The Food Bank Singapore
Ltd.’s network of members beneficiaries.
Beginning 9th July 2014, a “Bank box” was adopted
and installed in the CRC room, collecting foodproducts, until the near full box was returned on 4th
Aug 2014.
31

CSR Vision 3 Social Contributions through Business Activities- Overseas Activities ： Qatar
Beach cleaning by Volunteer member of Chiyoda Almana Engineering LLC(Qatar)(local newspaper reported this activity)

32

CSR Vision 4 Respect for Human Rights
The Chiyoda Group is dedicated to respecting the human rights of all people. The Group will create a
corporate culture where the diversity, individuality and character of employees are respected, where
people are motivated to do their best, and of which employees and their families are proud.

1.

Action Policies
・ Promote employee training and create a satisfying and energetic
work environment
・ Instill in everyone involved that safety is a core value

2. Activity
・ Employee Skill Development and Work Environment
・ Occupational Health and Safety
・ Crisis management Initiatives
・ Chiyoda Group Companies Activities

3. Activities in FY2014① Promote Safety Culture through sharing practice on site amongst all employees② HSE Education③ HSE management System: Job Site Occupational Injury / Illness Frequency Rateand Severity Rate vs. Rate for JP Construction Industry④ Chiyoda Group Companies Activities“We will be the most reliable Project Company in the world
through SQE activities.”
33

CSR Vision 4 Respect for Human Rights- Promote Safety Culture through sharing practice on site amongst all employees
One of the Chiyoda Group's CSR medium-term policies is to instill in everyone involved that safety isa core value. We make ongoing efforts to ensure all employees fully understand that safety shouldbe their number-one priority.
In order to share knowledge and expertise from both outside and inside Chiyoda about Safety,
Quality and the Environment (SQE), the Group has been holding a series of Corporate SQEConventions.
In November 2014, the 7th Convention titled “Establishment of a Safety Culture by Sharing On-site
Practices” was a great success attended by more than 500 ardent participants including corporate
management executives, where the safety activities of the Papua new Guinea LNG Project (PNG)
were introduced. Their methods and practices were presented, then two-way communication in apleasant atmosphere was demonstrated in front of the audience so that everyone there could share
one and the same understanding as the members of the PNG Project, which has achieved the resultof “over 65 million man-hours without lost time injury”, the best safety record in Chiyoda’s history.
In this way, the Group will constantly make efforts to instill the corporate policy “Safety is a corevalue.”

34

CSR Vision 4 Respect for Human Rights- HSE Education
 Occupational Health and Safety Training Prior to
Assignment to Construction Site
・ Supervisors
Health, Safety and Environmental (HSE) Training Course(two days course) for Supervisors based on the Industrial
Safety and Health Law. (Conducted five (5) times and received
totally 132 attendees in FY2014)
HSE Training Course for Beginners prior to assignment toConstruction Sites. (Conducted seventy five (75) times andreceived totally 233 attendees in FY2014)

・ Site Managers and Construction Managers
Management Health, Safety and Environmental (HSE) Training
Course for Site Manager and Construction Manager (one day course) (Conducted two (2) times and received
totally 64 attendees in FY2014)
Consultation for Site Manager and Construction Manager. (Conducted twenty four (24) times in FY2014)

 Occupational Health and Safety Training at Construction Site
We conduct training for all new workers at both domestic and overseas construction sites, as well as special
safety training for those involved in hazardous operations. Safety activities also include TBM* and KYK(kiken yochi katsudo or “hazard identification activities”) prior to the start of construction work. KYK employs a
special checklist that workers go over together on a daily basis to confirm hazard prevention measures for thework they will undertake on that particular day.
※TBM (Tool Box Meetings): Meetings held by each work group to confirm safety

35

CSR Vision 4 Respect for Human Rights- HSE Management System
HSE Management System ： Chiyoda Construction Job Site Occupational Injury / Illness Frequency Rateand Severity Rate vs. Rate for Japanese Construction Industry
The Chiyoda Group has obtained accreditation of OHSAS18001 which is well known as one of the most authoritative
management systems to verify the effectiveness of Chiyoda Management System.
Based on this program, each project and project unit shall develop their own HSE programs to conduct specificsafety management activities. And the safety targets for every fiscal year are established utilizing TRIR (Total
Recordable Injury & Illness Rate based on OSHA Standard, USA) The safety target for FY2015(Domestic project) is
less than 0.5. The results of the above actions are shown in the following chart.

*1 HSE :Health, Safety and Environment*2 TRIR:Total Recordable Injury & Illness Rate (Standards OSHA, U.S.A.)

36

CSR Vision 4 Respect for Human Rights- Overseas Activities

Malaysia / India

Chiyoda Malaysia Sdn. Bhd. (CMSB)CMSB had organized a half day event of “Health Talk” to promoteawareness among our employees. The event was held in Pantai Indah
Hospital in Pandan Indah, Kuala Lumpur on 14 February 2014 andtopics presented were Cardiac Health and Gynae Cancer Screening.
We had also organized a 2 day course on basic first aid and CPR for
our Safety Committee on 5 and 6 May 2014. With this initiative, we will
be well prepared for any eventuality of medical emergency at ourhome office or construction site.

L&T-Chiyoda Limited (L&TC)
INTERNATIONAL WOMEN’S DAY CELEBRATIONInternational Women's Day is celebrated the world over, on
the 8th of March every year. It celebrates womanhood andpays tribute to the indomitable spirit of women besides theireconomic, political, and social achievements.
“When the power of women is unleashed, it secures the
future for all”.
To mark the occasion, and show our love & respect to the
L&TC women employees, International Women’s Day wascelebrated at L&TC. A group photograph was also taken as amemoir.

37

CSR Vision 5

Commitment to Fairness

The Chiyoda Group is dedicated to achieving even greater transparency and stability byconducting our operations fairly in accordance with the highest ethical standards.
1. Action Policies
・ Ensuring Compliance Program and Conduct our Business with Transparency
・ Strengthen Responding to Risk
2. Activity
・ Compliance Initiatives
・ Risk Management
・ Export Control
・ Corporate Governance3. Activities in FY2014① Reinforce Compliance Initiatives② Established Corporate Risk Management Policy③ Established Group BCP (Business Continuity Plan)④ Results of Training and Compliance Consultation and Reporting System in 2014
⑤ Corporate Governance38

CSR Vision 5

Commitment to Fairness- Reinforce Compliance Initiatives

Monitoring
As part of our mechanism for ensuring compliance, wehave also implemented internal auditing periodically, andmade improvements if required. The auditing includes theConstruction Industry Law, the Act against Delay inPayment of Subcontract Proceeds, etc. to Subcontractors,
Unfair Competition Act (to prevent bribes to foreign officials),
and the Anti-Trust Law (to prevent bid rigging), etc. Besides
the Compliance Unit in charge of promoting compliance, theInternal Audit Unit as an independent organization also
conducts auditing activities.

Compliance System
We have strengthened our compliance systems
by establishing the Compliance Committee,
which is directly managed by the Executive
Committee, with the purpose of raisingawareness and reinforcing promotion systems
for compliance with a 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 forthe entire Group.
Also, we have assigned Compliance Managers
who shall be responsible for the complianceactivities in each division, group companies andproject teams.

海外グループ会社でのモニタリング実施

39

CSR Vision 5

Commitment to Fairness- Established Corporate Risk Management Policy

The Group promotes the risk management activities and planning/ implementing Corporate Strategy as
the robust wheels to support and drive maintaining/creating Corporate Value. Chiyoda Group ensures
to properly disclose its business risk information to the stakeholders so as to increase transparency, tomitigate those risks by taking proactive countermeasures, then to achieve the business target.
That is exactly the aim of CORPORATE RISK MANAGEMENT POLICY. The purposes and action
guidelines are defined as follows:

Purposes◆ To maximize corporate value◆ To maintain corporate assets◆ To secure business continuity◆ To gain confidence of all the stakeholders including shareholders, clients, employees◆ To promote a preventive Safety and Health Culture, in which safety comes first

Action guidelines
 To report risk information immediately and share the information among the parties
concerned.
 To ensure that all the directors and employees must well understand theimportance of risk management and to make their best efforts in managing risks.
 To believe that every accident is preventable and conduct daily activities with thisconsciousness.
 To remember that the risks are defined as uncertainties which might affect thecompany’s interests and that we must manage risks in a rational and an optimal
method from an overall perspective so as to maximize corporate value.
40

CSR Vision 5

Commitment to Fairness- Established Group BCP (Business Continuity Plan)

The Chiyoda Group has been coping with various risks such as fires, earthquakes,
disease, information leakage, compliance violation and terrorist attacks, in addition
to its project execution risks in the core business. In 2014, the Group established
its Group BCP and BCM(Business Continuity Management), anticipating various
risks that would disrupt its business.

BCP（Business Continuity Plan）： The BCP provides the direction andcourse of action in order to avoid such risks, or recover quickly even if
such a disruption may occur, and was known to all employees. When adisaster including a fire/an earthquake or any epidemic, terrorism/turmoil,
occurs, and if the impact on the Group is anticipated to be large enough to
disrupt its Group business/operation, the Group immediately declares theimposition of BCP.
Then, based on the basic philosophy of “Employees’ safety First”, theGroup makes utmost efforts to continue its minimally required importantbusiness and to make a quick return to normal operation as well as tocontribute to the restoration of communities affected by such a disaster.

41

CSR Vision 5

Commitment to Fairness- Results of Training and Compliance Consultation and Reporting System in 2014
Compliance related

Training

Training prior to assignment toconstruction site
Training for site manager andconstruction managers

147
24

Training for management team143

Prevention of insider trading

65

Construction industry laws

70

Anti-corruption

129

Publication

In-house letter for compliance

10Companywide notificatione-learning for export control

6

Categorized seminar

Export control

3

New employees training

CSR, Compliance andexport control

11

Mid-career recruits training

CSR, Compliance andexport control

23

Seminar（by external instructors）

Export control related

CSR general

42

CSR Vision 5

Commitment to Fairness- Corporate Governance

1/2

The Chiyoda Group pledges to constantly strive for sustainable growth and enhance corporate value
on a mid- to long-term basis. To achieve this target, the Group established "Chiyoda Corporation
Corporate Governance Policy" on October 23, 2015, which sets forth the Group's basic views andguideline with regard to corporate governance. The Group will continue to actively secure soundness
and transparency of its corporate management through the Policy.
•

Corporate Governance System
Chiyoda has established the Compliance Unit and the Internal Audit Unit to raise the quality and transparency ofmanagement, improve response to stakeholders and reinforce risk management and the compliance system. We
also established the Safety, Quality and Environmental (SQE) Unit and an internal control system directly linked
to management.
To ensure speedy and accurate decision-making to deal with rapidly changing social and economic conditions,
Chiyoda has adopted the executive officer system, which separates the functions of directors, who areresponsible for management supervision, from those of executive officers, who are responsible for the executionof business operations.

•

Reinforcing Internal Controls
The Chiyoda Group constantly conducts self-assessments of existing internal control functions andreinforces internal control systems. In addition, the Group has established the Internal Audit Unit as anautonomous unit to perform evaluations. Chiyoda has a system in place for auditing the development
and operation of a suitable overall internal control framework and constituent components, and forsubmitting reports to the Executive Committee.

43

CSR Vision 5

Commitment to Fairness- Corporate Governance

2/2

The Chiyoda Group believes that management that earns the trust and empathy of all its
stakeholders, including shareholders, customers, business partners, creditors, employees
and local communities, is the basis of our corporate activities, and is working to continue tostrengthen our management foundation and ensure sound and transparent managementwith the objective of sustained growth in the mid- to long-term. We uphold the continued
strengthening of corporate governance and the development and reinforcement of aninternal control system asimportant issues, and makeefforts to put these into
practice.
As part of these activities,
the
Group
reports
its
activities to stakeholders
periodically.

44

Appendix : Overseas Network
Chiyoda’s Global Network （Major Overseas subsidiaries and Offices as of April 1, 2015）45

Appendix : Major Group Companies in Japan （as of April 1, 2015）
Engineering

Business Support

Chiyoda Kosho Co., Ltd.

Arrow Business Consulting Corporation

Engineering, Construction and maintenance of domestic energy
and chemical plants; life and non-life insurance agent
URL:http://www.cks-ykh.co.jp/

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

Chiyoda System Technologies Corporation

Temporary staffing, placement consulting,and education and training
URL:http://www.ahr.co.jp/

Engineering, procurement, construction and maintenance ofelectrical and instrumentation, and of social infrastructures.
Consulting, development and operation for integrated IT systems.
URL:http://www.cst.chiyoda.co.jp/

Chiyoda TechnoAce Co., Ltd.

Arrow Human Resources Co., Ltd.

Arrowhead International Corporation
Travel agent, air cargo and materials export services, etc.
URL:http://www.arrowhead.co.jp/

Consulting, design, procurement, construction and test operation services Chiyoda Business Solutions Co., Ltd.
for pharmaceutical and other fine chemical plants,
Outsourcing services and consulting for HR and facility management
and various types of research facilities
URL:http://www.cta.chiyoda.co.jp/

Chiyoda U-Tech Co., Ltd.
Feasibility studies and consulting for energy, oil, chemical andenvironment-related plants and various types of industrial facilities
URL:http://www.utc-yokohama.com/

Chiyoda Corporation
Chiyoda Global Headquarters
Minato Mirai Grand Central Tower
4-6-2, Minatomirai, Nishi-ku, Yokohama 220-8765, Japan
Please direct inquiries about this CSR Report to:
IR, PR & CSR Section
TEL: (81) 45-225-7734
FAX: (81) 45-225-4962
E-mail csr@chiyodacorp.com

Chiyoda Corporation is a member of the
FTSE4Good Index, an equity index series
that is designed to facilitate investment incompanies that meet globally recognised
corporate responsibility standards.

46

Appendix : Editorial Policy•

CSR Activity Report Policy
The Chiyoda Group comprehensively reports its CSR activities including detailed information on
the Chiyoda Corporation website.
In addition, the Group published the digest version of the Group’s CSR Report 2015 highlighting
the latest activities. The contents of these reports are elaborated though collaboration with themembers of on the Group Liaison Meeting on CSR and those responsible for CSR in Group
companies in Japan and overseas.
・ Website (Commitment to CSR)
https://www.chiyoda-corp.com/csr/index.html
・ Website (Corporate Governance Policy)
http://www.chiyoda-corp.com/company/files/151023_CGP.pdf<<Reference>> Annual Report
Published in English annually for shareholders
and investors overseas. From the latest report,
the major topics on CSR activities are added to
the financial information,

The Chiyoda Group’s
CSR activities
WebsiteDetailed reporting

CSR報告
CSR Activities
W(Digest Version)

Highlighting
the latest activities

Chiyoda GroupCSR Handbook
This Handbook is edited to include the Group’s basic policies,“Corporate Philosophy”, “CSR Vision”, “Code of Conduct” and“Compliance manual” and distributed to all the Chiyoda Group
employees.
47