CHIYODA CORPORATIONGroup CSR Report 2009
Fiscal Year Ended March 31, 2009

From the Editors
We hope you will enjoy reading the Group CSR Report 2009, in which we report the Chiyoda Group’s CSR* activities.
As we would like to reflect your opinions and thoughts in our future activities, please take a moment to fill out the attachedquestionnaire and let us know what you think.
*METI’s Definition of CSR: CSR, the abbreviation of Corporate Social Responsibility, is defined by the Ministry of Economy, Trade and Industry (METI) as follows: “A
corporation should voluntarily take a balanced approach to addressing economic, environmental and social issues in order to also benefit citizens, communities andsociety, which leads to the success of its business operations.”

Organization of the Report

Chiyoda’s CSR Website

Feature:The Chiyoda Group’s Unique CSR Initiatives
In this section we introduce two examples of the Chiyoda Group’s contribution
through business activities to the sustainable development of society.

The Chiyoda Group’s CSR Vision in Action
In line with our five CSR visions, this section highlights our main achievements in thefiscal year ended March 31, 2009.

“Commitment to CSR” on Our Website
In the “Commitment to CSR” section of our website, we introduce our CSR policy
and initiatives for corporate governance, compliance, social contribution and the environment, as well as our relationship with customers and business partners and measures for
employees. Please browse previous CSR reports that we have also made available online.

http://www.chiyoda-corp.com/en/company/csr/
CHIYODA Commitment to CSR

Coverage of this Report
This report covers the CSR activities of nine Chiyoda Group companies, consisting of Chiyoda Corporation and eight domestic consolidated
subsidiaries. Activities of specific companies are noted where relevant.

Chiyoda Kosho Co., Ltd.
Engineering, construction and maintenance of domestic energy
and chemical plants; life and non-life insurance agent

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

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

Arrow Business Consulting Corporation
Consulting on ﬁnance, accounting and tax

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

Business travel and relocation agent; materials export
and air cargo agent

IT Engineering Limited
IT system development and consulting

Chiyoda U-Tech Co., Ltd.
Feasibility studies and consulting for industrial facilities

Chiyoda Corporation

Applicable Period and Date of Publication
Applicable Period:
Date of Publication:

Fiscal year 2009 (April 1, 2008 to March 31, 2009)
August 2009

Guidelines
This report was prepared referring to the Global Reporting Initiative’s (GRI) Guidelines (G3) and the Reporting Guidelines (2007 Version) of the
Ministry of the Environment in Japan.

SearchCHIYODA CORPORATION Group CSR Report 2009

The Chiyoda Group will strive
to contribute to the sustainable
development of society while
promoting harmony between
energy and the environment.

Contents

As of March 2009, the Chiyoda Group consists of

Feature:Chiyoda Corporation, 17 consolidated subsidiaries

1

Overview of the Chiyoda Group
Corporate Profile

1

A Message from the President

2

The Chiyoda Group’s Unique CSR Initiatives

and 3 affiliates. Chiyoda is an integrated engineeringand construction group primarily engaged in theengineering and construction of various plants andServing Global Needs for Clean Energy

4facilities in Japan and around the world.

Creating the Future with Chiyoda’s Energy
and Environmental Technologies
6

Corporate Profile (As of March 31, 2009)

The Chiyoda Group’s CSR Vision in Action• Name:Chiyoda Corporation• Main Offices:

Yokohama Head Office(Tsurumi-ku, Yokohama, Japan)
Koyasu Office & Research Park
(Kanagawa-ku, Yokohama, Japan)• Paid-in Capital:¥43,392 million• Main Business Fields:

Consulting, planning, engineering, procurement, construction, commissioning (test operation), consulting andtraining for operation and maintenance, research and development andtechnology services, project management for plants and facilities in fields
including energy, chemicals, pharmaceuticals, biotechnology and the environment• Consolidated Financial Highlights (Fiscal year ended March 31, 2009):
New contracts:¥209.4 billion
Revenues:¥446.4 billion
Ordinary income:¥11.4 billion
Net income:¥6.4 billion
Backlog of contracts:¥425.0 billion
Number of employees:
3,376• URL:

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

Chiyoda’s CSR Vision 1
A Reliable Company

8

Chiyoda’s CSR Vision 2
Environmental Initiatives

10

Chiyoda’s CSR Vision 3
Social Contributions throughBusiness Activities

12

Chiyoda’s CSR Vision 4
Respect for Human Rights

14

Chiyoda’s CSR Vision 5
Commitment to Fairness

16

2

A Message from the President

We aim to be an energetic
company with a worldwide
reputation for reliability.

Chiyoda Group
Corporate Philosophy
Enhance our business inaiming for harmony between
energy and the environmentand contribute to thes u s tainable developmentof a society as an integrated
engineering company
through the use of ourcollective wisdom andpainstakingly developed
technology.

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

Completion of the Sakhalin LNG Project
A Product of Chiyoda’s DNA
Since I became President and CEO of Chiyoda in 2007, I have emphasized
the three pillars of “intellectual property for the future,” “environmentally
responsible technologies” and “people-oriented management,” based on the
key concepts of “people,” “technology and trust” and “contribution to theinternational community” that make up the DNA of the Chiyoda Group.
In a sense, our completion of the Sakhalin LNG project, featured on
pages 4 and 5 of this CSR Report, and receipt of the “JAPAN ProjectInternational Award” Minister’s Prize from the Ministry of Land,
Infrastructure, Transport and Tourism (MLIT) are products of this DNA.
The award is objective recognition of over 20 million man-hours without asingle accident or lost-time incident, 40 million kilometers of accident-freetransport, overcoming harsh environmental conditions, and safety compliance, at the same time completely satisfying the region’s strict environmental
protection demands, contributing to the region in various ways, including
technology transfer, and managing nearly 10 thousand workers of differing
cultures and languages from over 40 countries. I am extremely pleased that
this success is a product of not only the hard work of those who took part in
the project, but also the natural expression of Chiyoda’s DNA that has takenroot in our employees.

CHIYODA CORPORATION Group CSR Report 2009

New Medium-Term Management Plan:Engineering Excellence, Value Creation
Focusing on Energy, Environment and Resource Development
In May 2009, Chiyoda announced its new medium-term management
plan, “Engineering Excellence, Value Creation,” for the period ending March
2013. In it we set energy, environment and resource development as ourbusiness domain. In 1972, well before environmental issues became a focal
point, Chiyoda’s founder, Akiyoshi Tamaki, declared in his booklet Legacy forthe 21st Century that Chiyoda would take the initiative to develop technologies to solve energy and environmental problems. To that end, we haveworked for harmony between energy and the environment, including construction of residuum hydrodesulfurization plants and development of
Chiyoda Thoroughbred-121 (CT-121) flue gas desulfurization technology. As
achieving a low-carbon society gains importance, our strengths in LNG projects will form the core of our effort to expand our range of business to thefield of alternative clean energy as we reinforce business development in agreater number of countries and regions. In the decades ahead, we will also
work to develop new technologies to reduce carbon from the existing energy sources of oil, gas and coal. With our teams of engineers and other technical staff, we will steadily carry out the plan one step at a time. I believethat Chiyoda people can make it happen.

Promotion of Consistent CSR Activities
Aiming to be a Reliable Company Worldwide
I expect that with the new medium-term management plan under way,
we will become an energetic company with even broader business operations. The engineering that sustains the Chiyoda Group is finally beginningto earn society’s recognition. I am excited about the potential for moreyoung people to gain interest and for our industry as a whole to expand further by earning greater recognition from society at large.
I believe that the essence of CSR is embodied in corporate behavior that
conforms to social norms. The Chiyoda Group’s management philosophy is toenhance our business to achieve harmony between energy and the environment and contribute to the development of a sustainable society as an integrated engineering and construction company through the use of our collective wisdom and painstakingly developed technology. As such, we will promote corporate activities that are in line with social norms in our pursuit ofGroup management that earns the trust and understanding of all our stakeholders. We will promote the Chiyoda Group’s unique CSR activities to further build our reputation for reliability worldwide.

July 2009

Takashi Kubota
President & CEO

Legacy for the 21st Century:
An Everlasting Commitment toChiyoda’s DNA
This spirit is passed on to the newgeneration of Chiyoda people so that
our DNA remains the nucleus of all
our technologies.

3

4

The Chiyoda Groupʼs Unique CSR Initiatives

Serving Global Needs for Clean Energy:
Sakhalin LNG Project Receives Minister’s Prize, the Ministry of Land,
Infrastructure, Transport and Tourism (MLIT)
Concurrently with construction of an LNG plant in extremely hot Qatar, the Chiyoda Group completed the first
LNG plant in Russia, which was under construction on the bitterly cold Sakhalin Island. This project received the
MLIT’s “JAPAN Project International Award”* Minister’s Prize, recognizing the Chiyoda Group’s project
implementation capabilities.

A Project Displaying the Technological Prowess of Japanese Companies

Panoramic view of the plant and the project staff

The project was awarded the Minister’s Prize for the excellent evaluation it received in thefollowing four areas:
1. Giving full consideration to preserving the natural environment of Sakhalin, including theriver running on the plant site where Sakhalin trout spawn, and minimizing
environmental impact
2. An excellent safety record under harsh environmental conditions, including over 20 million
man-hours without a single accident or lost-time incident and 40 million kilometers ofaccident-free transport
3. Wide ranging activities for employment, technology transfer and social contribution
in the local community
4. Combining Russian resources and Japanese technology to secure a source of energy inneighboring Russia, thus reducing reliance on the Middle East and other regions*The MLIT bestows the “JAPAN Project InternationalAward,” established in 2009, to overseas projects thatexhibit the excellent design and construction know-how
and technological strengths of Japanese companies. For
their involvement in the Sakhalin LNG project, Chiyoda
and four other companies received the Minister’s Prize,
the highest award.

CHIYODA CORPORATION Group CSR Report 2009The Significance of Completing Russia’s First LNG Project
Liquefied natural gas from thecompleted LNG project will be supplied toJapan and other countries in East Asia bytanker. As a clean energy source with low
CO2 emissions, LNG is in high demand, andplays an important role in Japan’s nationalenergy strategy to diversify supply sources.
The leaders of Japan and Russia
attended the grand ceremony for the
successful completion of the project inFebruary 2009, and the first shipment
arrived in April at the Sodegaura terminal
operated jointly by Tokyo Electric Power
Company and Tokyo Gas Co., Ltd.

Ribbon cutting at the completion ceremony

Camp Operations in the Extreme Cold of Sakhalin

The plant at sunrise in midwinterTemperatures in Sakhalin fall under -30°C in midwinter. Under these extreme
weather conditions, Chiyoda enabled operations for over 7,000 people,
including expanding camp capacity to accommodate the increase in workers
after it opened in August 2004. Regional characteristics in Russia required
various considerations, in particular strengthening control of alcohol, traffic
control throughout the expansive camp, and snow management. We
successfully completed and turned over the plant in September 2008 throughthe combined ideas of everyone involved, such as cleaning events and otheropportunities to raise everyone’s sense of involvement, as well as timely revisionof camp rules.
Sakhalin II Plant and LNG tanker

56

The Chiyoda Groupʼs Unique CSR Initiatives

Creating the Future with Chiyoda’s Energy
and Environmental Technologies:
Chiyoda’s Transitions in Contributing to a Prosperous Society
Chiyoda Corporation, which marked its 60th anniversary in 2008, published a booklet in 1972 entitled Legacy for the 21stCentury , stating it would take the initiative to develop technologies and solve energy and environmental problems. Guided bythis principle, we have contributed to prosperous lifestyles in countries around the world by developing energy- andenvironment-related technologies and building numerous plants in Japan and overseas. In this feature, we introduce ourtransitions in such technologies and plants, including LNG 1 , flue gas desulfurization (FGD) plants 2 and residuum
hydrodesulfurization and gas oil deep desulfurization plants 3, 4.
Gas oil deep desulfurization plant
for TOA Oil Co., Ltd. in KawasakiFirst commercial Chiyoda Thoroughbred-121(CT-121) FGD plant for Mitsubishi
Petrochemical Co., Ltd. in Yokkaichi

Developed and received
many orders for waste
water filtration plants
Constructed residuum
hydrodesulfurization plants
Developed and constructednumerous CT-101 FGD plants

Completed first CT-121 FGD plant,
followed by successive orders

1960s〜1970s1980s

Completed gas oil deep
desulfurization plant,
followed by successiveorders

1990s
Successive orders for LNG plants(2.0-5.0 MMTPA)

Completion of Japan’s first
LNG receiving terminal

Courtesy of Qatargas

Qatargas, LNG Plant (Train 3)
Tokyo Gas Co., Ltd. LNG Receiving Terminal
in Negishi

CHIYODA CORPORATION Group CSR Report 20097

Green indicates events related to FGD plants (CT-101, 121) and residuum / gas oil desulfurization plants.
Orange indicates events related to LNG plants.

Georgia Power Co. (USA)
Plant Bowen Unit 3
CT-121 FGD Plant

FGD Plants
Top-level share of orders
in the industry

Environment
Envi
ron
nment
ment
Prov
ProvidePro
carbon manag
management
gementement
solutions toward a low
w carbon society

Installed energy-savingnggfacilities at industrial
complexes

utility
Develop in
integrated util
lity
lity
y systems
andd wat
water management
managemenntCreating Valuefor Tomorrow

Continuous orders for CT-121
FGD plants in United States

Strengthen
Stre
St
tre
eng
e
gt
gthen
t e initiatives
inniitiatives
t at vess forfor
floating
floatin
floa
atin
ng
g LNG
G
ExpandExpanndd businessbusin
ne
ess toto thee renewable
renew
ren
ew
wable
wable
energyenergy fieldUse
resources
U energy
en
ne
ergy
erg
gy rressources more
more
e efficiently
efficiently
y

2000s

y
EnergySeries of orders following
completion of LNG receiving
terminals in Japan

Full-scale orders for and completion oflarge-scale LNG plants

LNG Plants
No. 1 share of orders
in the industry

Floating
Flti LNG

Notes:
1. LNG: Liquefied natural gas

Courtesy of Qatargas

Qatargas 2, LNG Plant (Train 4)

2. Flue gas desulfurization (FGD) plant:
A plant for removing sulfur dioxide from fluegas. The Thoroughbred Series CT-101 andCT-121 were developed by Chiyoda.

3. Residuum hydrodesulfurization plant:
A plant for removing sulfur from residuum.
4. Gas oil deep desulfurization plant:
A plant for removing sulfur from gas oil.
Deep desulfurization removes sulfur toconcentrations of less than 500ppm. Recent
plants can desulfurize to even lower
concentrations.

8

Chiyodaʼs

The Chiyoda Group’s CSR Vision in Action

1

CSR vision
A Reliable Company

We strive to be a reliable company to ourcustomers and other business partners byproviding world-class technologies andknowledge.

CSR Medium-Term Policies• Provide industrial plants that earncustomer trust through engineeringof outstanding quality• Share our CSR principles withvendors, subcontractors and otherbusiness partners

Maintenance Service Cultivated through Reliability
The Chiyoda Group works in unison to provide plant lifecycle
engineering, a service that adapts to a plant’s lifecycle from design,
procurement and construction to operation and maintenance.
Maintenance services for optimal plant operation are proof ofcustomers’ trust in us cultivated over many years by providing safeand reliable services.

Customer-Focused, Proposal-Based Maintenance BusinessChiyoda Keiso conducts the maintenance business of On Stream
Maintenance (OSM: daily maintenance done during ongoing plant
operation) and Shut Down Maintenance (SDM: maintenance done duringa scheduled shut-down of plant operation) through four regional offices(Eastern Japan, Kanto, Chubu and Western Japan) with a customerfocused, proposal-based approach. Chiyoda Keiso has gained the trust ofcustomers over the years by ensuring thorough workplace safety using
proprietary safety tools, services of quality management-certified
employees, and reduction of CO 2 emissions. This trust enabled theCompany to win a recent series of orders not only for OSM/SDM but also
for revamp and construction from Fuji Oil Company and Showa Yokkaichi
Sekiyu Co., Ltd. Chiyoda Keiso is working hard on these projects
together with the customers.

Shut Down Maintenance

Quality management by certified workers

CHIYODA CORPORATION Group CSR Report 2009

Development of Construction Method Improves Cost Efficiency at Plants
Chiyoda Kosho Co., Ltd. and Chiyoda developed a short delivery,
low-cost construction method for insetting body plates in repair andrenewal of large-scale distillation columns. The method applies atechnique for stripping away several body plates of a column at adesignated repair spot and insetting new plates.
The technique achieves enhanced cost efficiency compared toconventional methods by shortening turnaround and making maximum
use of existing facilities, and contributes to reduced environmental
impact.

Overview ofInset Method

Removing
corroded bodyplates andwelding in
new plates

Safety-Oriented Maintenance Engineering
The general manager of Chiyoda Kosho’s Maintenance Division,
Keihin Office gave a presentation on safety management activities at
a seminar on preventing work-related accidents during scheduled
repair work, held by the Kawasaki South Labor Standards Inspection
Office in July 2008. Approximately 300 attendees gathered from local
companies, including customers, contractors and subcontractors. In
an inspection of the Mizue Factory of TOA Oil Co., Ltd.’s Keihin
Refinery, administrated by the Keihin Office, the Kawasaki South
Labor Standards Inspection Office highly evaluated Chiyoda Kosho’s
safety management at the site, and extended the invitation to present
at the seminar.
Chiyoda Kosho has regional offices in Hokkaido, Kashima, Keihin,
Shizuoka, Aichi, Yokkaichi, Kurashiki, Onoda and Fukuoka, covering amajor industrial belt in Japan. The company also keeps offices withincustomers’ refineries to support plant operation and management,
centered on maintenance including plant construction, repair,renovation, expansion and emergency response.

Safety recitation at a morning assembly

Safety patrol

Comment from Masaru Takahashi, General Manager of Maintenance Division, Keihin Office, Chiyoda Kosho
A culture of safety must involve repeating and sustaining
sharp awareness and behavior toward safety on a daily basis.
Instead of assigning responsibility, I believe that a true culture ofsafety comes from the personal commitment of everyone
involved in construction to safety matters. As a result of further

For more details, please refer to our website.

strengthening the initiatives I introduced in thepresentation in 2008, we also succeeded in completing
construction work ordered in the fiscal year ended
March 31, 2009 at the Mizue Factory of TOA Oil’s
Keihin Refinery without accident or injury.

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

9

10

Chiyodaʼs

The Chiyoda Group’s CSR Vision in Action

2

CSR vision
Environmental Initiatives

We will work to remain an invaluable
company to society by utilizing refinedtechnologies to promote harmony between
the global environment and economic andsocial activities. Our environmental initiatives
include measures to reduce greenhouse gas
emissions and waste.

CSR Medium-Term Policies• Develop and provide environmentallyfriendly energy and conservation
technologies• Conduct business activities that
contribute to environmental
conservation

Material flow in business activities (FY2009)

Environmental Business Activities
EPC Activities*

INPUT
Domestic construction sites

610,000kWh
1,830kl
Kerosene
9.4kl
Ready mixed concrete 86,000 tons
Asphalt concrete
1,000 tons
Steel
14,000 tons

Offices

Electricity

Electricity

Diesel oil

Water
Gas
Paper

12,600,000kWh62,000kl
542,000m3
364 tons* EPC Activities: Engineering, procurement and construction

Intermediate treatment facilities

RecycleDomestic construction sites

Recycling facilities

Recycling Rate

89.6% (excluding sewage)

Green
Procurement** Green procurement: Procurement that gives preference toeco-friendly equipment and materials

Offices
Recycling Rate

74.0%

CHIYODA CORPORATION Group CSR Report 200911

Initiatives in Oﬃce Activities
The Chiyoda Group is working to
reduce the ratio of greenhouse gas

Ratio of Greenhouse Gas Emissions (Mainly CO2)
to Revenues

emissions to revenues at its offices
by using natural energy sources andintroducing energy-saving facilities.

50

In addition, we are working to
reduce the amount of general waste
through trash separation andGreenhouse gas emissions (kg per million yen)

40

Amount of waste(Tons)

120

37.8

Plastic
PET bottles
Bottles
Cans

Newspapers andmagazines
Corrugated fiberboard
Incinerated waste

80

26.0

30

21.7

21.8

16.5

20

40
10
0

recycling.

Changes in Amount of General Waste

05

06

07

08

09

0

(FY)

05

06

07

08

09

*Waste output from Koyasu Office & Research Park is included for FY2009 only.

OUTPUT
Domestic construction sites

Offices

OfficeActivities

Research andDevelopment
Activities

5,160 tons
Chemical substances
12 tons
Industrial waste
9,060 tons
Greenhouse gas

Greenhouse gas
General waste

8,350 tons
89 tons(excluding sewage)

Final disposal site
Final disposal quantity

855 tons(not including sludge
and incineration ash)Comment from Satoru Narita, General Manager, Wakamatsu Field Office
We removed an existing underground concrete foundation(3,500m 3) ahead of construction as an environmental protection
measure. Using a crushing machine at the construction site, we
broke up the industrial waste concrete into bits of 40mm indiameter or smaller and reused it as roadbed material.
Traditionally, we use approximately 1,000 dump trucks
making round-trips to transport the waste concrete offsite.
However, this time we planned and implemented the transport

For more details, please refer to our website.

with a focus on not bothering residents along the roadwith excessive noise and dust, as well as effective reuse
and recycling of industrial waste.

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

(FY)

12

Chiyodaʼs

The Chiyoda Group’s CSR Vision in Action

3

CSR vision
Social Contributions
through Business Activities

Through its engineering business in Japanand overseas, Chiyoda contributes to local
communities in ways including humanresources development, technology
transfer and environmental protection.

CSR Medium-Term Policies• Contribute to society throughintegrated engineering businessactivities• Enhance social contribution activities
by providing knowledge and labor

Chiyoda builds plants around the world that treat water and air.
We are utilizing that experience to educate the next generation for the future.
Environment Classes as Education
for the Next Generation
Chiyoda held an environment class for 55 fourth grade students
at Shincho Elementary School in Kawasaki, Kanagawa on
November 17, 2008, with company employees serving as
instructors.
The class quizzed students on topics such as how much water aJapanese person uses in a day and the volume of water necessary
to clean water with soy sauce mixed in it. The children eagerly
raised their hands and their voices rose with surprise to theanswers, which enlivened the class.
Students raise their hands eagerly during the quiz.

Chiyoda held anenvironment class on
February 20, 2009 for
105 fifth grade students
at Tsurumi Elementary
School, which is locatednear Chiyoda’s head office..
Comment from Takao Tsuchiya, Principal of Tsurumi Elementary School in Yokohama, Kanagawa
We began requesting guest lessons on the environment

surprise on learning that they use 50 times more

two years ago. In the 2008-2009 school year, students

water than people in desert countries, and resolved

learned about the importance of water through quizzes andto use it more carefully. We will continue theseexperiments.

lessons so that children will find interest in

Following the class, many students expressed their

the environment in their daily lives.

Letters fr
fromstudents with
their impressions
imp

CHIYODA CORPORATION Group CSR Report 2009

Listening intently to the instructor’s explanation

A water purification experiment

In addition, the students voiced their amazement on watchingcolored water turn clear, in an experiment to purify water using
activated carbon and a filter. Teachers were also impressed by theclass, which created an opportunity to reflect on how to use water
wisely in our daily lives.
An overview of the environment class ran in an environment andenergy advertising issue of The Nikkei newspaper on December 9,
2008. Please refer to our website for the entire feature (in Japaneseonly).
Chiyoda also conducts private-sector training for teachers,
dispatches instructors to universities, and accepts students forinternships.

A sample question from the quiz(“The amount of water that people in the desert use
each day is equal to how many 2-liter bottles?”).

Communication
Communication with
with thethe Region
RegionIInternationalnternational C
Contributions
ontributions

On November 16, 2008, 70 employees and their families
volunteered in the cleanup campaign held by theneighborhood association of Tsurumi-ku, Yokohama, where
Chiyoda’s Yokohama Head Office is located. Following thecleanup, we held a tour of facilities including our solar power
generation equipment and rooftop greenification.

Chiyoda Philippines Corporation invites local engineering
students and engineers from Southeast Asia for on-the-job
engineering training. The Chiyoda Group supports technology
transfer and job creation through the construction of its overseas
plants, while respecting the traditions of host countries.

For more details, please refer to our website.

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

13

14

Chiyodaʼs

The Chiyoda Group’s CSR Vision in Action

CSR vision
Respect for Human Rights

4

We are dedicated to respecting the human CSR Medium-Term Policies
rights of all people. We will create a• Create a lively and energetic working
corporate culture where the diversity,
environment and help employees
individuality and character of employees
develop their talents
are respected, where people are motivated • Instill in everyone involved
to do their best, and of which employeesthat safety is a core value
and their families are proud.

Achieving Work-Life Balance
Joint Employee Survey with the Labor Union
We conducted a survey together with the employee union in January 2009 to assess employees’ needs andopinions concerning welfare and work-life balance. As an example, the top five systems chosen by
respondents as the most important from a list of 14 are shown below. We will cooperate with the labor union
to enhance the welfare system based on the results.
Systems that Employees Find Important
1. Paid holiday system

16.9%

Survey subjects

1,429

2. Office environment

16.7%

Respondents844

3. Living arrangements

11.6%

Response rate

59.1％

4. Illness prevention andhealth promotion

11.1%

5. Child raising and nursing support 10.1%
0

5

10

15

20 (%)

Response to Interest in Paid Holiday System
We have introduced anniversary holidays where employees can use annual leave days for their birthday or
wedding anniversary, seasonal holidays for taking consecutive days off, and a holiday system to use forvolunteer activities.

Response to Interest in Illness Prevention and Health Promotion
Aiming to reduce the number of employees who have or are at risk of illnesses such as metabolic
syndrome and diabetes, we implemented a lifestyle disease checkup from the fiscal year ended March 2009.

CHIYODA CORPORATION Group CSR Report 2009

Initiatives Toward a Safety Culture
Chiyoda is continuing its efforts to instill a commitment inall employees to prioritize safety above all else.
Safety Commendation: EMDC 2009 Safe Contractor Award from Exxon Mobil Development Company
After receiving the Shell CEO 2007 HSE (Health, Safety andEnvironment) Award in the fiscal year ended March 2008, Chiyoda
received the EMDC 2009 Safe Contractor Award, symbolizing
customer recognition of Chiyoda’s joint safety initiatives with thecustomer and subcontractors at an LNG project for Qatargas.

Company-wide Safety Conference
We hold an annual Company-wide safety conference, whichbegan in the fiscal year ended March 2008, to enhance awarenessof safety as a core value. In the fiscal year ended March 2009,
customers gave presentations on safety from their perspective.
●●

Presentation by Mrs. Hilary Mercer,
Customer Project Manager of the Sakhalin project

Presentation by the Customer Project Manager of the Sakhalin project (July 2008)
Presentation by the presidents of Shell Gas & Power Japan Ltd. and Shell Global Solutions(Japan) K.K. (December 2008)

Educational Activities
using methods such as posters at construction sites in the local language.

Accident Rate
The frequency rate of accidents at construction sites was 0.14 1 and the severity
rate was 0.13. 2 (Fiscal year ended March 2008 frequency rate: 0.13; severity rate: 0.01)

A poster showing that eating anddrinking within the facility is prohibited(In English above and Russian below)

Notes: 1. The frequency rate of accidents is the number of individuals in accidents (excluding accidents with no loss of working time) per total working hours,
times 1 million. A lower figure indicates higher safety.
2. The severity rate of accidents is the number of lost-time days per total working hours, times 1,000. A lower figure indicates higher safety.

Support for Foreign Engineers
Chiyoda employs over 100 engineers from the Philippines, India and othercountries at its Yokohama Office, and we hold festivals, parties and other events
respecting the culture and traditions of their countries. We also offer support for
day-to-day living, including providing information on schools and helping withhospital visits, in addition to obtaining visas and resident status.
Trying on kimono

For more details, please refer to our website.

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

15

16

Chiyodaʼs

The Chiyoda Group’s CSR Vision in Action

5

CSR vision
Commitment to Fairness

We are dedicated to achieving evengreater transparency and stability byconducting our operations fairly inaccordance with the highest ethicalstandards.

CSR Medium-Term Policies• Conduct business activities basedon strict compliance anda high degree of transparency• Conduct a thorough risk
management program

Compliance Initiatives
Compliance Consciousness Survey:
We conducted a survey in March 2009 to measurecompliance consciousness, including awareness ofcompliance activities carried out by the Chiyoda Group. The
response rate of 3,500 Group employees was 65 percent.
Responses to major items on the survey were as follows.
1. Awareness of the Chiyoda Group Code of Conduct: 80% (68%)
2. Awareness of the Chiyoda Group Compliance Manual: 64% (42%)
3. Awareness of the Compliance Consultation andReporting System: 84% (67%)(Figures in parentheses show previous survey results.)

We will reflect the survey results in conducting higher
quality activities while raising awareness within the Group.

No
20%

Have you readthe Chiyoda Group
Code of Conduct?

Partly
20%

Yes
60%

No Response
2%

Have you readthe Chiyoda Group

No
34%

Yes
44%

Compliance Manual?
Partly20%

Use of the Compliance Consultation andReporting System in the Fiscal Year Ended March 2009
1. Reports related to workplace improvements
2. Reports related to compliance with workplace rules
3. Other
Total

6
2
3
11

Please refer to our website for the Chiyoda Group Code of Conduct and the Chiyoda Group Compliance Manual.

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

Internal Control
Chiyoda maintains and operates an internal control system, which is necessary to ensure appropriate
business activities. The Board of Directors adopted the Basic Policy on Formation of an Internal Control System
in April 2006, when the Corporation Law was implemented.
In addition, we conducted an internal audit that contributed to management’s evaluation of the internal
control reporting system of the Financial Instruments and Exchange Law (the so-called J-SOX Law), andconfirmed the appropriateness of Chiyoda’s internal controls in late March 2009. Based on the Financial
Instruments and Exchange Law, we submitted our Internal Control Report on June 24, 2009.
Please refer to our website for the Internal Control Report dated June 24, 2009 (Japanese only).

http://www.chiyoda-corp.com /ir/library/file /financial-report/fr81-200903_naibu.pdf

CHIYODA CORPORATION Group CSR Report 2009

Intensive Compliance Campaign MonthIn October 2008, we designated October every year as
Intensive Compliance Campaign Month. During this month, we
conduct compliance education through e-learning and seminars byoutside professional instructors covering laws related to the Chiyoda
Group’s operations. Seminars to date and participation from
related departments are shown here.
ParticipantsAnti-Monopoly Law (to prevent bid rigging)

Approximately 70

Subcontract Act

Approximately 110

Unfair Competition Prevention Act(to prevent bribes to foreign civil servants)

Approximately 40

Insider trading

A lawyer giving an Unfair Competition Prevention Act seminar

For division manager level and above

Notes: Anti-Monopoly Law: The Anti-Monopoly Law basically prohibits unreasonable restraints on trade, private monopolization and unfair methods of competition, and is intended toensure free and fair trade among companies and businesses.
Subcontract Act: A special act within the Anti-Monopoly Law, officially called the Act against Delay in Payment of Subcontract Proceeds, Etc. to Subcontractors. It proscribes
obligations and restrictions related to payment by contractors in order to protect the interests of subcontractors.
Unfair Competition Prevention Act: A law regulating dishonest behavior in order to ensure fair competition among business entities and a fair market. A revision in 1999
prohibits bribes to foreign civil servants.
Insider trading: A representative example of unfair trading, in which individuals related to a company obtain significant information that could affect that company’s stock price,and then buy or sell that stock before the information is made public.

Information Security Measures
The Chiyoda Group holds regular Group liaison conferences,and works in unison to maintain and enhance its information
security system.
After Chiyoda Corporation acquired information security
certification in December 2007, Chiyoda Advanced Solutions
Corporation and IT Engineering Limited acquired ISO/IEC
27001:2005 / JIS Q 27001:2006 third-party certification in
December 2008 and April 2009, respectively, for their information
security management systems.

Third-party
party certification
certific

Comment from Setsuko Kinukawa and Reiko Yokota, Chiyoda Corporation, Operational Auditing OfficeInternal audits are often compared to a health checkup.
At a health checkup, the doctor gives advice on any
illness symptoms to keep a medical condition fromworsening.
However, only the individual concerned can take

For more details, please refer to our website.

measures like diet and lifestyle improvements
based on the checkup results.
We strive through internal audits to help
each staff member review whether business isbeing carried out properly.

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

17

We consolidate Group strengths inour business operations.

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

Recognized by SRI (Socially Responsible Investment) evaluation bodies as a company fulfilling CSR standards