CHIYODA CORPORATIONGroup CSR Report 2008
Fiscal Year Ended March 31, 2008

CHIYODA CORPORATION Group CSR Report 2008

Editorial Policy
The Chiyoda Group implements Corporate Social Responsibility (CSR) initiatives through its business activities in Japan and overseas. While these initiatives are presented on our website, we also publish this report todeepen our communication with all stakeholders of the Chiyoda Group.
As we wish to reflect the opinions and thoughts of our stakeholders in our future activities, we would appreciate your cooperation in filling out and returning the attached questionnaire to let us know what you think.
• Digest
This report highlights our main achievements in the fiscal year 2008, in line with our CSR vision. Pleaserefer to our website for details about each of these initiatives and the systems underpinning them.
• Feature: The Chiyoda Group’s Unique CSR Initiatives
Established in 1948, Chiyoda Group has grown as an integrated engineering and construction
company that contributes to the industrial and social development of many countries around theworld. The feature “The Chiyoda Group’s Unique CSR Initiatives” focuses on activities that reflect thethinking on CSR that has always pervaded our business activities.
Chiyoda’s Website

Contents

Overview of the Chiyoda Group
Corporate Profile

1

A Message from the President

2

Feature: The Chiyoda Group’s
Unique CSR Initiatives
International Contribution throughthe Sakhalin LNG Project4

Contribution to Japanese Experiment Module“Kibo” of the International Space Station
6

The Chiyoda Group’s CSR Vision in Action
Business and Society

8

Chiyoda’s CSR Vision

9

I. A Reliable Company

10

II. Environmental Initiatives

12

III. Social Contributions throughBusiness Activities

14

IV. Respect for Human Rights

16

V. Commitment to Fairness

18

Third-Party Evaluation

20

Global Network21

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

SearchCoverage of this Report
Unless otherwise noted, this report covers Chiyoda Corporation and the sevendomestic consolidated subsidiaries in the Chiyoda Group. (Please refer to page 1.)
Applicable Period and Date of Publication
Applicable Period: Fiscal year 2008 (April 1, 2007 to March 31, 2008)
Date of Publication: July 2008
Guidelines
This report was prepared using the Global Reporting Initiative’s (GRI) Guidelines (G3)and the Reporting Guidelines (2003 Version) of the Ministry of the Environment inJapan as reference.

1

We conduct a worldwide plantengineering business.
Chiyoda Corporation was founded in 1948 as an engineering and construction company with
about 20 employees. As of March 2008, the Chiyoda Group consists of Chiyoda Corporation, 16 consolidated subsidiaries and 5 affiliates. Chiyoda has grown as an integrated engineering and construction group in Japan and around the world, primarily engaged in engineering and construction ofvarious plants and facilities.

Corporate Profile (As of March 31, 2008)• Name:Chiyoda Corporation• Main Offices:

Yokohama Head Office (Tsurumi-ku, Yokohama, Japan)
Koyasu Office & Research Park (Kanagawa-ku, Yokohama, Japan)• Paid-in Capital:¥43,389 million (As of April 30, 2008)• Main Business Fields:

Consulting, planning, engineering, procurement, construction, commissioning(test operation), consulting and training for operation and maintenance, researchand development and technology services, project management for plants andfacilities in fields including energy, chemicals, pharmaceuticals, biotechnology andthe environment• Consolidated Financial Highlights (Fiscal Year 2008):
New contracts:¥258.7 billion
Revenues:¥603.5 billion
Ordinary income:¥19.1 billion
Net income:¥9.6 billion
Backlog of contracts:¥670.0 billion
Number of employees:
3,067• URL:

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

We consolidate Group strengths in our business operations

Chiyoda Kosho Co., Ltd.

Chiyoda Advanced Solutions Corporation

Engineering, construction and maintenance of domestic energy
and chemical plants; life and non-life insurance agent

Provision of advanced analysis and solutions for plant andindustrial facility operation; consulting for use in space

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

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

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

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

Arrowhead International Corporation
Business travel and relocation agent; materials export
and air cargo agent

Chiyoda Corporation

2

CHIYODA CORPORATION Group CSR Report 2008

A Message from the President

Based on the Chiyoda Group Corporate
Philosophy and CSR Vision, we will
firmly promote corporate social
responsibility (CSR) throughout ouroperations.

Chiyoda Marks its 60th Anniversary
Chiyoda Group
Corporate Philosophy
Enhance our business andcontribute to the development of a sustainable society
as an integrated engineering
company through the use of
our collective wisdom andpainstakingly developed technology.

Chiyoda Group CSR Vision

Chiyoda Corporation marked the 60th anniversary of its founding on January
17, 2008. The three pillars emphasized by Chiyoda's founder, Akiyoshi Tamaki, since
the Company’s establishment — “people,” “technology and trust” and “contribution to the international community” — have been handed down from generation
to generation as Chiyoda’s corporate DNA.
As for “technology and trust” in particular, our high-level technological capabilities centered on energy and the friendly relations and trust we have built withcustomers through our achievements in plant construction with the concerted
efforts of all officers and employees involved are the Chiyoda Group’s strengths andcore competencies.
When I assumed the office of President & CEO in April 2007, I set “NewI. A Reliable Company

Horizons, Infinite Experience” as our corporate slogan. I stated that our mission is to

II. Environmental Initiatives

use and expand the assets created by our predecessors to meet the needs of theIII. Social Contributions
through Business Activities

times, and to hand them on to the next generation to continue shaping the future.

IV. Respect for Human Rights

the Chiyoda Group maintains the technology and trust that has been part of

V. Commitment to Fairness

Chiyoda’s DNA since its founding and uses it to fulfill its mission of contributing to

All executives and employees are committed to doing their best to ensure thatthe international community as the “Reliability No. 1” Project Company.

3

Gastech 2008 in Thailand (March 2008)

The Chiyoda Group summer festival (July 2007)

The Chiyoda Group’s Corporate Philosophy and CSR
The Chiyoda Group’s corporate philosophy is to enhance our business andcontribute to the development of a sustainable society as an integrated engineeringand construction company through the use of our collective wisdom and painstakingly developed technology. Based on this philosophy, the Chiyoda Group aims toearn the trust and support of all stakeholders, including shareholders, customers,
business partners, employees and local communities.
In 1972, aware that companies are part of society and must behave accordingly,
Akiyoshi Tamaki created a booklet entitled Legacy for the 21st Century. Well before
Legacy for the 21st Century:

CSR was a focus of attention, he declared that the Chiyoda Group would work to

An Everlasting Commitment todevelop technologies and solve energy and environmental problems.

Chiyoda's DNA
This spirit is passed on to the newgeneration of Chiyoda people so that

We will continue to firmly promote CSR as an integrated engineering and construction company, based on the five principles of the Chiyoda Group CSR Vision*.

our DNA remains the nucleus of all
our technologies.

July 2008

Takashi Kubota
President & CEO*Please refer to pages 9-19 for a detailed description of the five principles and the Chiyoda Group’s activities withrespect to each principle.

4

CHIYODA CORPORATION Group CSR Report 2008

Feature:The Chiyoda Group ’s Unique CSR Initiatives

International Contribution
through the Sak halin LNG Projec t
The Chiyoda Group is currently executing a project on
Sakhalin Island in Russia for Sakhalin Energy Investment

Okha

PiltunAstokhskoye
Field
Boatasyngas (LNG) plant consisting of two trains, each with an

Nogliki
Katangli

Lunskoye Field

Nysh

RussiaCo., Ltd. It involves the construction of a liqueﬁed naturalannual production capacity of 4.8 million tons per year,
and an oil export terminal. It is Russia’s ﬁrst LNG plant,

AleksandrovskSakhalinskiy

Sakhalin
Islandand the impor tant missions of complying with anextremely high level of requirements for environmental

Poronayskconservation and contributing to the local community, asJapan

we l l a s s a f e t y i n p a r t i c u l a r, h ave m a d e i t a ve r ychallenging yet signiﬁcant project since its start.
YuzhnoSakhalinsk

Prigorodnoye
LNG Plant

Safety Initiatives
The environment of Sakhalin Island is harsh. In January andFebruary, the coldest months, the temperature remains below-20ºC for days on end. In this bitter cold, Chiyoda implements acomprehensive system to ensure safe working conditions that
protect workers against hypothermia and frostbite. We have alsoestablished a system that provides the thousands of workers fromall over the world assembled at the project with a safe andcomfortable living environment.
Because traﬃc accidents are frequent on Sakhalin Island,
Shell CEO 2007 HSE Award (Please refer to “Third-party Evaluation”
on page 20.)

Chiyoda carries out various measures including holding safety
events at the camp that involve subcontractors. We also employ
local traﬃc police retirees to regulate traﬃc. As a result, we haveachieved 20 million manhours without a single lost-time incident.

An aerial view of the Sakhalin LNG Project site5

Contributing to the Local Community
Since the outset of this project, Chiyoda has actively implemented
sustainable development initiatives for the local community. We haveestablished courses for junior engineers and a welding school incooperation with a local vocational school. We are also contributing todevelopment of the local economy through human resource and job
development programs that include assignments to Japan for trainer

Welding school

courses, and internships for local university students. At the peak ofconstruction, we employed more than 5,000 Russians, including over
3,000 local residents.
As a result of regular meetings with the residents of Korsakov,
Chiyoda is conducting social contribution activities that address local
needs. We work with the local police force to implement traﬃc safetymeasures and campaigns. We provide support for improving local
facilities including kindergar tens, retirement homes, hospitals,
elementary schools, libraries and community centers, as well as salmon
farm facilities. We also conduct regular tours of the site for local
residents and school children, and provide road maintenance andA course for junior engineers

clearing, including helping with snow removal.

Environmental Conservation Initiatives
T he Sak halin LNG Proje c t is unique due to wide - ranging
requirements for environmental conservation that we were not able todeal with following our usual project execution approach. As a result,
Chiyoda established a separate organization to enact environmental

Environmental monitoring(survey of bird habitat)

conservation initiatives to the fullest extent possible.
Chiyoda implements a range of initiatives to comply with strict
requirements for environmental conservation, including constructing
rainwater and sewage holding and set ting ponds to purif y all
wastewater before it is discharged, and making eﬀorts to restore thesite to its original condition once construction is completed byreplanting. In addition, we monitor the results of our eﬀorts based onan environmental assessment program and submit reports to thegovernment.
Chiyoda’s initiatives at Sakhalin are highly regarded by thegovernment of Russia as a model for other projects.

Preventing water pollution

6

CHIYODA CORPORATION Group CSR Report 2008

Feature:The Chiyoda Group ’s Unique CSR Initiatives

Contribution to
Japanese Experiment Module “ Kibo ”
of the International Space Station

Researchers Have High Hopes for Space
Scientiﬁc experiments that will impact on the future of the human race are about tobegin at Japanese Experiment Module “Kibo” (Hope) of the International Space Station (ISS)orbiting 400 kilometers above Earth.
Fusing its engineering and project management capabilities, the Chiyoda Group has
developed an experimental unit that will allow researchers to realize their dreams in space,an environment where high reliability and safety are a must.
As the “Reliability No.1” Project Company, Chiyoda will extend its social contribution
eﬀorts to the realm of space.
Construction progresses at the International Space Station (ISS). (March 25, 2008, photo courtesy of National Aeronautics and Space Administration (NASA))

7

Mission to Construct Japanese Experiment Module “Kibo”
A space shuttle docks to the International Space Station on March 13,
2008. Visible in the cargo bay is the cylindrical Experimental Logistics Modulepressurized section for the Japanese Experiment Module “Kibo.” Chiyoda
Advanced Solutions (ChAS) was commissioned by the Japan Aerospace
Exploration Agency (JAXA) to develop two experimental modules, whichwere delivered to the ISS with the Module.
Space shuttle viewed from the ISS(Photo courtesy of NASA)

Biological Experiment Unit: A Small Box Contributing to the Future
Combining automation and miniaturization, the Biological Experiment
Unit (BEU) was developed in order to facilitate cell cultivation and life science
experiments in “Kibo.” Studying biological phenomena in the microgravity
environment unique to space is expected to contribute to the developmentof advanced medicine including regenerative medicine, and innovations infood production technology.
The BEU is our small but important contribution to fulﬁlling the dreamsof scientists as they continue their research for the future of the human race.

Plants growing inside BEU(Photos courtesy of JAXA)ChAS team members

Image Processing Unit: Experiment Image Transmission Terminal
Images of experiments conducted in “Kibo” are one of the important
forms of data. The Image Processing Unit (IPU) gathers, records andcompresses image data from the various experimental units for transmission
to r e s e a rch e r s o n E ar th . T h e IPU m a ke s u s e o f cu t ti n g - e d g e I T a n dmultimedia technology.
I m a g e d a t a f r o m s p a c e p r o v i d e s a d e t a i l e d p i c t u r e o f E a r t h ʼsever-changing environment. Our image transfer technology is contributing
to the ﬂow of information between space and Earth.
Image Processing Unit
(Photo courtesy of JAXA)

Contributing to a Boundless DreamA hurricane as seen from space(Photo courtesy of U.S. National Oceanicand Atomospheric Administration)

The development of space is currently taking place in orbit above Earth,
but within another decade or so will extend to the construction of a base on
the moon. Eventually, our boundless dream will take us to Mars and beyond.
The development of space broadens the scope of human activit y,furthers science, and promises to lead to a host of breakthroughs including
new solutions to the problems posed by Ear thʼs ﬁnite resources andenvironment.
Chiyoda will make every eﬀort to contribute to this boundless dream byapplying its cutting-edge engineering to create the diverse facilities andequipment necessary for space development in the future.
For more details, please refer to ChAS’s website.

http://chiyoda-as.co.jp/

Conceptual image of Moon base
(Image courtesy of JAXA)

8

CHIYODA CORPORATION Group CSR Report 2008

Business and Society

We contribute to society and the environment
through our business operations.

StableEnergySupplyPetrochemical plant for
Kashima Aromatics Co., Ltd.

Chiyoda contributes to sustainable economic development byconstructing plants that produce
petroleum and petrochemicals,
pharmaceuticals, food and otherproducts.

Sustainable
Economic
Development

Four Contributions
throughBusiness Operations

Natural gas processing plantin Indonesia

Chiyoda contributes to stableenergy supply by constructing plantsthat produce and supply various
kinds of energy including petroleum
and liqueﬁed natural gas (LNG).

GlobalEnvironmental
Conservation

Sustainable
SocialDevelopment

Earth viewed from space (Photo courtesy of NASA)In addition to its energy-related, environmental
and economic contributions, Chiyoda helps promotesustainable social development through technological advancement, education, transfer of technology
to the countries where it constructs plants andexpansion of local employment opportunities.

LNG plant in Russia

Chiyoda contributes to global environmental conservation by constructing
plants that conserve and supply clean
energy, prevent air pollution and treat
wastewater.

As a pioneer in Japan’s engineering and construction industry since its foundation in
1948, the Chiyoda Group has contributed to providing solutions for global energy supply,
environmental, economic and social issues by engineering and constructing petroleum,
LNG and chemical plants and other facilities in Japan and more than 40 other countries
around the world.

9

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

As an integrated engineering and construction company, the Chiyoda Grouppledges to constantly strive to increase corporate value and earn the trust andunderstanding of all stakeholders by adhering to the following principles.

I.
II.
III.
IV.
V.

A Reliable
Company

We are dedicated to earning a reputation among ourcustomers and all others with whom we do business as the“Reliability No. 1” Project Company by providing the highest
levels of technology and knowledge in the world.

Environmental
Initiatives

We are dedicated to remaining a company that plays avital role in societ y by using sophisticated technology tom a i n t a i n t h e p r o p e r b a l a n ce b e t w e e n e nv i r o n m e n t a lconservation and social and economic development.

page10

page12We are dedicated to using our engineering businessSocial Contributions activities in Japan and overseas to contribute to society byhelping people reach their goals, transferring technology
through Businessand protecting the environment.
Activities

page14We are dedicated to respecting the human rights of all
p e o p l e . We w i l l c r e a t e a c o r p o r a t e c u l t u r e w h e r e t h e
individuality and character of every employee are respected,
where people are motivated to do their best, and of which
employees and their families are proud.

page16

Respect for
Human Rights

Commitment
to Fairness

We are dedicated to achieving even greater transparency
and stabilit y by conduc ting our operations fairly inaccordance with the highest ethical standards.

page18

10 CHIYODA CORPORATION Group CSR Report 2008

August 2006: The Construction Site
We regularly inspected and reviewed the schedulefrom various perspectives including engineering,procurement and delivery of equipment and materials,
and construction execution in order to ensure safety
while meeting an extremely short deadline.

A Reliable Company
The Chiyoda Group cooperates withbusiness partners to construct plants thatearn customer satisfaction and trust by• providing the latest technology,• delivering on schedule, andConstruction Site Staff
Detailed consideration of new technology andIT-aided design began in tandem with the contract
award in August 2005.

• eliminating accidents during
construction.

CSR Medium-Term Targets• Achieve customer satisfaction
by providing industrial plants ofoutstanding quality with
“Reliability No. 1” technology• Share our CSR principles with vendors,
subcontractors and other business
partners

Safety Poster
Posters were handdrawn to stand out, andhung throughout theconstruction site.

11

October 2006
Construction begins.

February 2007
Equipment installation
progresses smoothly.

June 2007
Major equipment is installed.

“ Reliability No.1”
Project Company
Construction of RIPE-X Plant
for Kashima Aromatics Co., Ltd.
The projec t entailed construc tion of apetrochemical plant for Kashima Aromatics thatuses petroleum to manufacture xylene and othersubstances used as raw materials in synthetic ﬁber
and plastics. It was a Chiyoda Group eﬀort involving
Chiyoda Kosho Co., Ltd., Chiyoda Keiso Co., Ltd.,C h i y o d a Te c h n o A c e C o . , L t d . a n d C h i y o d a
Corporation. The plant applies integrated process
technologies from France, the United States andGermany that are new to Japan. The entire project
took 25 months to complete, including 12 months
for construction. This is a very short period for a
project of this size, but we completed it on scheduleand achieved a record of 1,140,000 no lost-timeincident (LTI) manhours during construc tion.

September 2007: Plant Completion
We completed the project in 25 months
using cutting-edge technology and delivered
the plant to the customer.
In pursuing “Reliability No. 1,” weconducted a customer satisfaction survey
during construction, and reﬂected the resultsin our subsequent activities.

Construction Safety Assembly
In preparation for the peak ofconstruction, everyone involved
gathers ﬁrst thing every morning toensure the day’s safety.
For more details
details, please refer to our website
website.

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

12 CHIYODA CORPORATION Group CSR Report 2008

Efforts to Counter Global Warming

Global Warming
Due to Greenhouse Gases

CO2

Environmental
Initiatives
Chiyoda contributes to countering global
warming with its stock of existing
environmental technologies and by
developing new technologies. We work
to reduce greenhouse gas emissions andwaste in order to achieve eco-friendly
offices.

CO2

The main cause of global warming is CO 2 . Morethan 25 billion tons of CO 2 are released into theatmosphere every year by fossil fuel producing andconsuming countries.
To help prevent global warming, we carry out
reengineering of the total carbon chain to provide
solutions that reduce atmospheric emissions of CO2.
One such solution is the utilization of fossil fuelsv ia s y nthesis gas pro duc tion te chno l o gies incombination with acid gas / CO2 capture and storage.

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

Oﬃce Activities
The ratio of greenhouse gas emissions to revenues at
Chiyoda Group oﬃces is decreasing due to theintroduction of energy-saving facilities.
In addition, the amount of general waste is decreasing
annually due to thorough trash separation and recycling.

13

Example of Reengineering

Acid gas・For facility-wide energy saving

CO2・Capture of CO2
from exhaust gas

Undergroundstorage

Treatment of
exhaust gas(desulfurization, CO2 capture)

Reuse・Capture andrecovery of CO2
from natural gas

Acid gas
removalNatural gas

LNG

Electric power(H2S, CO2)

(Chiyoda has extensive
experience)

Chemicals
Steam reforming

・Capture of CO2
through gasiﬁcationof coal for power
generation with low
CO2 emissions
centered on usinghydrogen as a fuel(Auto thermal
reforming)

Coal
Residue oil
Oil sandetc.

CO2Synthesisgas・Captured CO 2 usedas chemical raw
material or stored
undergroundH2
Gasification

Ratio of Greenhouse Gas Emissions (Mainly CO2)
to Revenues

Hydrogen separation

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

Amount of waste (Tons)
160

60

120

45.0

Electric power

Changes in Amount of General Waste

Greenhouse gas emissions (kg per million yen)
70

50

Enhanced
oil recovery

Fuel

37.8

40

80

26.0

30

21.7
16.5

20

40

10
0

04

05

06

07

08

For more details, please refer to our website.

(FY)

0

04

05

06

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

07

08

(FY)

14 CHIYODA CORPORATION Group CSR Report 2008

Training for Teachers

Social Contributions
through Business
Activities

We con du c te d p r i v ate s e c tor t r ainin g
including 3D computer assisted development(CAD) system operation for 10 teachers. In
addition, we held practical training inorganizational management and other topics
for 42 vice-principals of schools in Yokohama.

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

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

Workplace Experience Program
Prr ogramfor High School Students, OtherThis photo depic ts the work experience
program for high school students (one participant).
In addition, we carried out the following activities.
・Dispatched nine Group oﬃcers and employees
to universities to serve as instructors
・Accepted a total of 21 university undergraduate
and graduate students for internships at Group
companies

15

Overseas Social Contribution Activities
We conduct various social contribution
activities at Group companies around theworld. Here, employees of L&T-Chiyoda
Limited in India donate blood.

Social Contribution Activities
at Construction Sites in Japan
Chiyoda cooperated with Kashima Oil Co., Ltd.
in its bottle cap drive CSR initiative by donating
15,000 PET bottle caps, which will be used tohelp purchase vaccines for children.

Fiscal Year 2008
Social Contribution Activities*Please also refer to the feature“The Chiyoda Groupʼs Unique CSR
Initiatives” on pages 4-7.

Tsurumi Clea
Cleanupanup Campaign
The neighborhood association of Tsurumi-ku,
Yokohama, where Chiyoda’s Yokohama Head
Office is located, holds a semi-annual cleanup
campaign. In the fiscal year 2008, employees
and f amily member s totaling 16 4 people
participated as volunteers in the cleanup.

EnvironmentEEn
it Classes
Cl
We held environment classes concerning theimpor tance of petroleum resources andenvironmental protection for about 120 fourth-yearenand 110 fifth-year students at Koyasu ElementaryanSchool and Tsurumi Elementary School, which areScnear the Yokohama Head Office.
ne

For more details, please refer to our website.

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

16 CHIYODA CORPORATION Group CSR Report 2008

Establishing a Safety CultureEﬀorts of the Past YearTo support and enhance the ongoing eﬀorts ofindividual Group companies to establish and inculcate aculture of safety, in Januar y 2007 Chiyoda began
reinforcing Group-wide safety initiatives. We havecontinued to conduct educational activities to build asafety culture based on mutually reinforced awareness,such as safety conferences, publishing the Health, Safety
and Environment (HSE) Report, and putting up posters.
In the ﬁscal year 2008, there were no fatal accidents
at Chiyoda’s construction sites in Japan or overseas
despite a 67 percent year-on-year increase in working
hours. Our occupational injury/illness frequency rate 1
and severity rate 2 in Japan and overseas decreased 50
percent and 94 percent, respectively, compared withthe previous year.

Respect
for Human Rights
We are dedicated to respecting the humanrights of all people. We will create a
corporate culture where the individuality
and character of every employee arerespected, where people are motivated to
do their best, and of which employees andtheir families are proud.

CSR Medium-Term Targets• Create a lively and energetic working
environment and help employees
develop their talents• Achieve zero accidents
Notes:

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

2. Severity rate =Lost-time days
Total working hours

X 1,000

Chiyoda President and CEO Takashi Kubota speaks at a safety conference.

A Satisfying Work Environment
An Enhanced Leave System
Volunteer Leave

From April 20 08, employees may use up to 10
consecutive days of paid leave every year for volunteer
activities.
Promoting Workplace Flexibility with Parental andNursing Care Leave

Employees with newborn children may takeparental leave until children turn 18 months old. One
employee used parental leave in the ﬁscal year 2008.
Chiyoda also provides up to one year of nursing carel eave to a ll ow e m p l oye e s to l o o k af te r f amil ymembers. Four employees have used the system since
its introduction.

17

A Full Range of Educational Opportunities
Chiyoda helps employees develop professional and managerial skills with an educational structure consisting ofon-the-job training and classroom lectures outside the workplace centering on professional training.

A course inprogress

Career Development Program (CDP)

Project Key Personnel (PKP) Course

CDP is a program for promoting
professional development. In their ﬁrst 15
years with Chiyoda, employees conduc t
p er sonal evaluations of their aptitudes
and careers every three years anddetermine their professional dire c tions
with the help of superiors. Chiyoda
supports career development that meetsspeciﬁc needs.

The aim of the PKP Course is to develop
key personnel for project execution and tostrengthen project management. Managers
with practical experience and specialized
knowledge conduct “thinking lectures” thatemphasize dialogue with attendees.

Active Assignment of Foreign Employees
International Exchange through Cooking

Chiyoda has assigned 83
foreign engineers fromoverseas bases in its global
network to assist inadvancing the Company ʼsoverseas projec ts. Besides
these duties, the engineers
participate in activities at the
Hodogaya International
E x c h a n g e Ce n t e r i n t h e i rspare time to deepen
relations with local residents.

Foreign engineers
in Japan gave
cooking classes in
D e ce m b e r 20 07
and January 2008.

For more details, please refer to our website.

Health Management
Mental Health

We place special emphasis on
mental health, and employ
industrial physicians specializing
in mental care. Chiyoda conducts
an annual s tress che ck for all
employees, and in March 2008
dispatched nine medical
specialists to Qatar to oﬀer
counseling to approximately 300
Japanese employees assigned toconstruction sites in that country.

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

18 CHIYODA CORPORATION Group CSR Report 2008

CSR Handbook
In October 2007, Chiyoda published the CSR
Handbook (the Bluebook), a compilation of the
Chiyoda Group Corporate Philosophy, CSR Vision and
Code of Conduct, and distributed it to all Japaneseemployees in the Chiyoda Group, both in Japan andoverseas. The English edition for foreign employees
was distributed in March 2008.

English andd Japaneseeditions of the CSR Handbook

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

Compliance Initiatives
Compliance Consultation and Reporting System
Corporate Auditors

Executive Committee

Executive VP in Charge of CSR

Instruction(Remedial Action and Prevention)

External Consultation
Center (Lawyer)

Contact

ReportCSR Division /Compliance Management Oﬃce
Compliance Staﬀ

Manager
Consultation
and Reporting

CSR Medium-Term Targets• Conduct business activities based onstrict legal compliance and a highdegree of transparency• Conduct a thorough risk management
program

Consultation
and Reporting

Feedback

ReportConsultation
and Reporting

Employees and Temporary Staﬀ (Including those of Subsidiaries)

Reports ﬁled in the ﬁscal year 2008

① Regarding work environment improvements

3② Regarding compliance with oﬃce rules

5③ Requests for attention

3④ Other

3

Total

14

19

Acquisition of Information Security Management System
Third-Party Certiﬁcation
Chiyoda acquire d ISO/IEC 270 01:20 05(JIS Q 27001:2006) third-party certiﬁcation for
its information security management system(ISMS). All business activities at Chiyoda fallwithin the scope of certiﬁcation, including
e n g in e e r in g an d ot h e r R & D, p roj e c tmana g e m e nt , p ro c u re m e nt an d re l ate dbusiness, and general administration. Chiyoda
is the ﬁrst engineering company in Japan toacquire company-wide certiﬁcation.
Chiyoda will continue working to establish
and inculcate a culture of information
security management with the participationof all employees through measures including
enhanced education.

Third-party ISO/IEC 27001:2005 certification

A lawyer leads a training session for staff in charge of the compliance consultation and reporting system hotline.

Compliance Education and Training
As general education for all employees and oﬃcers ofth e Chi yo da Group, we have devel op e d or iginal
e-learning materials and administer a compliance quiz todeepen understanding of the contents of the Bluebook.
As of July 2008, more than 1,100 employees and oﬃcers
have taken the quiz. We plan to continue promoting thise-learning program on a regular basis.

For more details, please refer to our website.

As professional education for employees and oﬃcers
in charge of ac tivities within the scope of theConstruction Industry Law, the Act against Delay inPayment of Subcontract Proceeds, Etc. to Subcontractors,
and the Anti-Monopoly Law, we provide training by alaw yer and cautionar y reminders using teachingmaterials. We also conduct periodic audits to reinforce
awareness of compliance issues.

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

20 CHIYODA CORPORATION Group CSR Report 2008

Third-Party Evaluation
Main Awards for the Fiscal Year 2008
Award

Details

Regional Economic Promotion
Memento expressing gratitude from
Ulsan City, Korea

Chiyoda was presented with a memento from the mayor of Ulsan City, recognizing the rapid
increase in the Company’s procurement in Korea and amicable business relations with Korean
corporations.
At a safety awareness forum for on-site contractors organized by Qatargas, Chiyoda was awarded

Qatargas Contractor Forum
1st Prize

1st Prize in recognition of its effective safety program.
The Sakhalin project, in which Chiyoda is the contractor, was selected from 237 Shell Group proj-

Shell CEO 2007 HSE* Award*Health, Safety and Environment

ects to receive the award in recognition of 20 million manhours without a single lost-time incident(LTI). (Please refer to “International Contribution through the Sakhalin LNG Project” on page 4.)

Engineering Advancement Associationof JapanChiyoda received the 2007 Engineering Achievement Award with Nippon Petroleum
Refining Co., Ltd. for developing technology for carbon dioxide capture using cold energy.

2007 Engineering Achievement Award (sharedwith Nippon Petroleum Refining Co., Ltd.)The Society of Plant Engineers Japan

A Chiyoda Kosho employee received this award recognizing initiatives over many years that

Monozukuri Award (Individual Award)

contributed to the spread and transfer of manufacturing technology, through pressure vessel
symposiums and maintenance engineering workshops with customers and manufacturers.
This award recognized the promotion of occupational health and safety activities over many

Okayama Labor Standards Association
Commendation for Excellent Safety and
Health Achievement (Individual Award)

years by an employee of Chiyoda Keiso.

Memento from the mayor of Ulsan City, Korea, forregional economic promotion

1st Prize, Qatargas Contractor Forum

Okayama Labor Standards Association
Commendation for Excellent Safety and HealthAchievement (Individual)

Recognized by SRI (Socially Responsible Investment) Evaluation Bodies• FTSE4Good Index Series• Morningstar Socially Responsible Investment Index

In March 2005, Chiyoda was thefirst engineering company in theworld to be certified as a member of
the “FTSE4Good” Index Series of
FTSE Group, UK.
This means that Chiyoda is
acknowledged as a Japanese corporation fulfilling a series of internationally recognized CSR standards.

In September 2007, Morningstar Japan K.K. selected
Chiyoda for inclusion in the SRI Index that they compile
and monitor. As with the FTSE4Good Index, this was a firstfor a Japanese engineering company.

21

Global Network (As of July 1, 2008)

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

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

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

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

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

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

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

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

Milan Representative Office
Viale Della Liberazione 16-18, 20124 Milan,
Italy
Tel: (39) 02-303517-111
Fax: (39) 02-303517-35

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

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

Major Subsidiaries & AffiliatedCompanies
Overseas
Chiyoda Almana Engineering LLC
Services: Design and construction ofindustrial facilities
Almana Tower, 5th floor, Airport RD,
P.O. Box-20243 Doha Qatar
Tel: (974) 462-2875/2876
Fax: (974) 462-2716

Chiyoda Corporation (Shanghai)
Services: Project consulting
29F-Room E, Pufa Tower, No. 588,
Pudong Rd. (S), Pu Dong New Area,
Shanghai 200120, China
Tel: (86) 21-5877-6266
Fax: (86) 21-5877-6366

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

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

Chiyoda Oceania Pty Limited
Services: Design and construction ofindustrial facilities
Level 28, AMP Tower 140 St Georges
Terrace Perth WA 6000, Australia
Tel: (61) 8-9278-2599
Fax: (61) 8-9278-2727

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

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

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

Chiyoda (Thailand) Limited
Services: Design and construction ofindustrial facilities
140/42 ITF Tower II, 20th Floor,
Silom Road, Kwaeng Suriyawong,
Khet Bangrak, Bangkok 10500, Thailand
Tel: (66) 2-231-6441/6442
Fax: (66) 2-231-6443

L&T-Chiyoda Limited
Services: Design
B.P. Estate, National Highway No. 8, Chhani
Baroda-391740, Gujarat State, India
Tel: (91) 265-2771003/2772855
Fax: (91) 265-2774985
URL: http://www.Intchiyoda.com/

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

Chiyoda Petrostar Ltd.
Services: Design and construction ofindustrial facilities

Project Companies

Al-Khobar Office

Oman, Qatar, Russia

P.O. Box 31707, Al-Khobar 31952
The Kingdom of Saudi Arabia
Tel: (966) 3-864-0839
Fax: (966) 3-864-0986

Jeddah Head Office
P.O. Box 6188, Jeddah 21442
The Kingdom of Saudi Arabia
Tel: (966) 2-647-0558
Fax: (966) 2-647-1908
Tlx: 601062 MOTSIMThe Chiyoda Group Adopts a New Logo
To commemorate the 60th anniversary of Chiyoda Corporation, management solicited suggestions from
employees of the Chiyoda Group for a new Group logo. The logo adopted is shown at the left.
The new logo design maintains the original significance of the current logo of Chiyoda Corpration by incorporating two inverted triangles signifying consensus, breakthrough and a unified hardware and software system, and awhite circle representing “heart.” The addition of the letter “G” surrounding the triangles expresses the Group’s united efforts to expand globally. Blue stands for progress and technology, and green for internationalization and theenvironment.

Chiyoda’s Website

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

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

Printed in Japan with soy ink onrecycled paper.

Search