SHINRYO REPORT
2024
Corporate Profile and Sustainability Report

English Version

Management Vision“Create a Freshening World”- Brand Promise -We would like to provide a comfortable air quality appropriate
for where we work,
spend our time, and in the surrounding natural environment.
We would like to create a rich and pleasant environment.
We, Shinryo Corporation strive to realize an even more
comfortable and pleasant lifestyle byproviding optimal air quality around the world.
As a means to this end, we strive to provide new value throughflexible thinking byheightening the technology we have cultivated up until now
even further while sincerely
responding to the customers.
We will continue to strive to realize a “Freshening World” by
pursuing to offer greater value.

1

SHINRYO CORPORATIONSHINRYO Report 2024

Contents
3

Message from the President

26

Sustainability Promotion Management

5

Message from the Vice Presidents andGeneral Managers

31

Initiatives to Address Priority Subjects
31 Contribute to a Decarbonized Society

7

Value Creation Process

9Feature 1: Construction Process
Innovation with DX

47 R
 ealize Safe and Highly Efficient Work
Processes

11

Feature 2: C onstruction of New Main Building

53 B uild Refreshing Environments Rich with
Creativity

39 Contribute to a Resilient Societyof Shinryo Innovation Hub

Challenge Toward
Decarbonization

63

Sustainability Promotion Activities at
Shinryo Group Companies

13

History of Shinryo Corporation

65

Social Engagement

15

Corporate Profile

66

Third-party Opinion

15 C orporate Information/List of Executives/
Organizational Chart
17 O
 verview of the Shinryo Group/Business
Performance Trends
19 Business Fields
21 Construction Track Record

Editorial Policy

Scope of report

The intent of this report is to help allof our stakeholders to deepen theirunderstanding of Corporate Social
Responsibility (CSR) activities at
Shinryo Corporation.

Sustainability Promotion activities of
Shinryo Corporation and the Shinryo
Group.

Some of the images in this report
differ from current occupational
health and safety measures, but
all of the images are either images
taken after measures were taken
for inclusion in this report or images
taken before the measures began.

Target period
This report focus on FY2023 (October
1, 2022 to September 30, 2023),
including some periods before andafter.

Reference guidelines andstandards• ISO 26000• GRI Standards• Environmental Reporting

Guidelines (2018)• Task Force on Climate Related
Financial Disclosures (TCFD)

Date of publication
January 2024

Division responsible forpublication

Shinryo Corporation
Sustainability Promotion
Department, Corporate Strategy andPlanning Division

Informational Dissemination System
Main Publications such as
Pamphlets

WebsiteAll activities such as financial and non-financial information

SHINRYO Report 2024 (Japanese/English)
Comprehensive corporate activities

Corporate information

SHINRYO Corporation homepage(Japanese/English)
https://www.shinryo.com/en

Technology

Employment information

Technology and Services website
https://www.shinryo.com/tech/

Employment Information
Employment website
https://www.shinryo.com/saiyo/

Various technical catalogs

Sustainability Promotion Activities
Sustainability Promotion Website
https://www.shinryo.com/sustainability/

SHINRYO Report 2024

2

Message from the President

Stride Forward withTechnology andOrganizational Effort

Takeshi Kagami
President,
Representative Director

Aiming to Become a Future and Environmental Engineering Company
2024 is a significant year for Shinryo Corporation. We
need to make it the year we can remember as achieving
great strides toward the future. 2023 was the year thatJapan overcame the COVID-19 pandemic and broughtback normalcy. Inbound needs have recovered andaccommodation and retail industries are operating
favorably. The construction market was estimated to
decline after the Tokyo Olympics in 2021 but continues inmaintaining a robust state. Orders received and net salesof Shinryo Corporation are also robust. The constructionindustry is expected to face further shortage of labor
due to the revised Labor Standards Act which will be ineffect from April 2024. In addition, we need to consider
that the domestic construction market is unlikely to show
significant growth in the mid- to long-term perspective
and there is a possibility of slowdown in market growth.

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SHINRYO CORPORATION

Looking overseas, tension is rising due to various issues
such as conflicts and wars around the world, financial
instability, and inflation. Although the international
economy overall is relatively stable, with mainly
Asia expected to show steady growth. Our overseas
business also showed a steady trend. With the Japanese
government announcing GX investment of 150 trillion
yen in public and private sectors by fiscal 2032, Japan
has initiated its transition toward a decarbonized society.
We have also set targets for reducing greenhousegas emissions by 50% by 2030 and achieving carbon
neutrality by 2050 with the hope of becoming a “Future &Environmental Engineering Company” that contributes tothe realization of a decarbonized society through cuttingedge technology.

Message from the President

Technological Capability and Organizational Strength as Driving Forces
As stated above, drastic changes in the labor market are
expected in 2024. I believe companies that can quickly
adapt to changes will achieve significant growth. We
have been preparing for this for many years, by measures
including improving productivity of construction sites since2013, launching Refreshing Work Style Project in 2016,
and launching Challenge 45, a project with the aim oflimiting monthly over time to under 45 hours, in 2021. We
are also consciously working to increase the effectivenessof the work style reform through construction process
innovation with DX ( P53-54).
Improvement of productivity and effectivenessrequire strengthening of both technological capability
and organizational strength. In terms of technologicalcapability, we were awarded First Place Winner in theCommercial Buildings (New) category of the 2023
ASHRAE Technology Awards hosted by the world’s largest
international academic conference on air conditioning.
This was due to the building being highly praised for the
implementation of environmentally-friendly technologies
in which we were involved in its continued development
and improvement of their operations. We will continue
to develop technologies that contribute to thedecarbonization of society ( P35).
In terms of organizational strength, I believe having
high organizational strength will realize both work stylereform and improvement of productivity. The 15th ThreeYear Management Plan launched in October 2022 hasfour strategies. Strategy 1: Improve On-Site Reforms
and Engagement; Strategy 2: Expand Core Business
Strategies; Strategy 3: Strengthen Business Development
Capabilities Prioritizing Green & Digital Domains; andStrategy 4: Promote a Digital Transformation based on
the vision “Transformation for Growth.” One target of the
15th Three Year Management Plan is operational process
innovation named “From Individuals to Organization.” Each
construction site has worked independently from eachother until now but we will strengthen the back office
function that supports the construction sites and the useof off-site bases to coordinate the three sites and realize ahigh quality and highly efficient construction process. This
construction process innovation has been implemented
across Japan and is steadily progressing. DX Promotion
Division established in 2022 is executing company-wide
DX initiatives and playing an important role in realizing
construction process innovation ( P9-10).
In addition, new construction processes that fully utilize

the BIM were put to practice in the construction of the
new main building of the Innovation Hub completed in
November 2023. Its effects and issues were reported
to the BIM Model Project of the Ministry of Land,
Infrastructure, Transport and Tourism (MLIT) which wehave been participating in for the three years since 2020.
The new main building implements the numerous latest
decarbonization technologies that we have developed
and we were able to acquire precious knowledge. The
Innovation Hub will strongly promote active exchange
between the industry, government, and academia as well
as being open innovation to function as a platform forcreating and disseminating new values ( P11-12, P50).
Shinryo Corporation is focusing on activities to promotesustainability and formulated a human rights policy
as well as announced its support for the Task Force on
Climate-related Financial Disclosures (TCFD) in 2023. We
are also actively engaged in various activities based on
the policies of the United Nations Global Compact andSustainable Development Goals (SDGs).
In 2024, we will achieve higher productivity bypromoting construction process innovation to strengthen
technological capability and organizational strength. We
will work hard to make the year remembered as the yearthat built the foundation for our exponential growth.
Shinryo Corporation will continue to work to reflect the
feedback we receive from all of our stakeholders in ourbusiness activities in order to become a company chosen
by customers. I ask for your ongoing support and guidancein the future as well.

15th Three Year Management Plan
(68th Term to 70th Term)• Long-term Vision 2030

Future and Environmental Engineering
Company• 15th Three Year Vision“Transformation for Growth”• Strategies to Achieve Goals

Strategy 1: Improve On-Site Reforms andEngagement
Strategy 2: Expand Core Business Strategies
Strategy 3: Strengthen Business Development
Capabilities Prioritizing Green &Digital Domains
Strategy 4: Promote a Digital Transformation

SHINRYO Report 2024

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Message from the Vice Presidents and General Managers
Promoting Open Innovation for Corporate Growth
The reason Shinryo Corporation exists is to use environmental
technology to realize a sustainable world through preserving the
global environment, in addition to delivering creative technologies
and global new values. The new main building of the Innovation
Hub was completed in November 2023. We will strongly promote
open innovation using this as an opportunity. We are aiming toachieve corporate growth through the development of technology
and business in the Green & Digital field, which is the social trend
and a pillar for the next generation. In addition, we will evaluate theeffectiveness of the decarbonization technologies we have developedand implemented in the new main building while also taking on thechallenge of implementing advanced construction process through theuse of BIM and digital technology, off-site production, andthe back office. Shinryo Corporation will solve social issues throughcontinuously taking on challenges and continue being an attractive
company that continuously grows.

Tetsuro Kochiya
Representative Director, Executive Vice President
General Manager, Technical Supervision Division &in charge of Group Health and Safety & Compliance &the Environment

Solving Social Issues with Technological Capability

Takeo Yamaguchi
Executive Vice President
Representative of West Japan & General Manager,
Osaka Branch

Trend of SDGs and ESG investments are active in the society. With
the increase of needs for decarbonization and digitalization, needs
for planning and proposal from a perspective of sustainability haveincreased more than ever. Furthermore, the importance of enhancing
corporate competitiveness has increased in the recent unstableinternational and economic situation. In such a social environment,
providing optimum technology depending on the characteristics ofeach building instead of providing them uniformly and continuing tochallenge building a sustainable business model based on the belief
that change is constant and understanding of the possibility of growthin the market is required. We will diligently research customer needs
and contribute to their energy and resource saving efforts while thecustomers can trust also actively pursuing efficiency of construction tooffer construction equipment that.

Responding to the Trust of Customers throughTechnological Capability and Proposals
Construction equipment that requires a high level of technologicalcapability such as large-scale urban redevelopment, semiconductors,
and EVs are increasing in the construction market. In addition,philosophy behind the SDGs and sustainability became wide spreadin society and decarbonization and energy saving have become an
important management issue for companies. As Shinryo Corporation
is involved in building energy related facilities such as manufacturing
equipment, district heating and cooling systems, data centers, medical
facilities, and other various social infrastructures, the role we haveto fulfill is increasing year by year. We will strive to enhance ourtechnological capability, which is our strength, whilst also enhancing
our proposals through the use of BIM and DX in order for thecustomers to feel sure entrusting project to us. We will contributein realizing a sustainable society as an “Future & Environmental
Engineering Company.”

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SHINRYO CORPORATION

Takao Watanabe
Director, Executive Vice President
General Manager, Marketing Supervision DivisionMessage from the Vice Presidents and General Managers

Creating a Freshening World through Business
Activities
Shinryo Corporation has pursued offering an ideal environment that isfriendly to people and nature since its founding. Through our journey,
we came to a conclusion that our business activities and the goals of
the SDGs are fundamentally aligned and are focusing on promoting
sustainability that align with the SDGs. In 2023, we have formulated ahuman rights policy and endorsed the TCFD Recommendations. The
revised Labor Standards Act will come to effect in the constructionindustry from April 2024. We started work style reforms in 2016 andhave been working to improve productivity and employee satisfaction
since then. We aim to build a work environment where diverse
human resources can work operate in a lively manner and fully exert
their potential. Sixteen companies of the Shinryo Group will work to“Create a Freshening World” through their businesses and take on
the challenge of creating new values as well as contributing to solvingsocial issues.

Koichi Kaji
Director, Managing Executive Officer
General Manager, Corporate Management Division & incharge of Group Management and Sustainability Promotion

DX that Maximizes Strength of Construction Sites

Katsuhiko Yakita
Managing Executive Officer
General Manager, DX Promotion Division

Trends of increasing efficiency and innovating businesses using DX arealso becoming more prevalent in the construction industry. Shinryo
Corporation is working on the grand design of “DX that Maximizes
Strength of Construction Sites” to innovate construction process basedon the pillars of digitalization, industrialization, and systemization.
We will enhance our strength and create new values through making
advancements in the visualization of data and coordination, as well
as strengthening our knowhow and knowledge base. Going forward,
provision of optimum solutions will become possible throughadvanced analysis and the use of AI. As such, we will develop humanresources that autonomously promote and execute DX based on
advanced information. A decarbonized society can be realized only by
fully utilizing technology. We will continue to grow toward “A Company
Helping to Realize a Sustainable and Decarbonized Society throughAdvanced Technology” to create a sustainable society for the future.

United Nations Global Compact and Sustainable Development Goals (SDGs)

Shinryo Corporation signed the UN Global Compact
in September 2014.

Sustainable Development Goals (SDGs)

The sustainability promotion activities of Shinryo Corporation refer to the United Nations Global Compact and Sustainable
Development Goals (SDGs). Shinryo Corporation is advancing sustainability promotion management and business activities thathave adopted the ten principles in four areas (human rights, labor, the environment, and anti-corruption) of the United Nations Global
Compact as well as the concepts in the 17 SDG targets.
These efforts demonstrate the will of Shinryo Corporation to grow as a company earning trust from the international society as it
focuses its strengths into the provision of technology overseas.

SHINRYO Report 2024

6

Value Creation Process
Shinryo Corporation employs a value creation process that earns trust and delivers new value to customers
through technology. We contribute to solutions to social issues by providing safe and secure equipment systems
offering energy and resource savings to a variety of business regions. The most important Shinryo asset andstrength are people, which are also our driving force.

External Business
Environment

Input

Materiality
Four Priority Subjects
NIZED S
BO

TY
CIE
O

DECA
R

Aspiration for a
Sustainable Society

Contribute to a
Decarbonized Society

Climate Change
TURE
UC

RESILIENNFRASTR
TI

Business

Management Resources
Supporting Value Creation

Planning & Proposal
Research &Development

Financial Capital
FY 2022

Plant facilities

Intellectual Capital• Extensive track record in eachbusiness region• Environmental engineering
technology supporting this trackrecord
P19-24Contribute to a
Resilient Society

Population Decline
in Japan

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SHINRYO CORPORATION

CTIVE C
TA

ATIVE
RE

Shifts in Work/
Life Styles

BETTER

Realize Safe and Highly
Efficient Work Processes

EARNE
S

Faster Digital
Transformations

ND

OCESS
PR

SAFETY A

Globalization

Build Refreshing Environments
Rich with Creativity

Energyrelatedfacilities• Capital: 3.5 billion yen• Consolidated net assets:
156.7 billion yen

Safety andEnergyResource

Comprehensive
information
systems

Electric
systems

Human Capital• Roughly 5,300 employees
worldwide• Numerous qualified personnel

Maintenance
P15

Social Capital• Business organizations in about
15 countries and regions
worldwide• Numerous business partners• Brand power cultivated throughbusiness and sustainability
promotion activities

Long-term
Future & Environmental
A Company Helping Realize aSociety throughP17-18Manufacturing Capital

Improve On-Site Reforms
and Engagement• Business Network:
63 Japanese bases, 19 overseas
bases• Research facility: 1 facility

Strengthen Business
Development Capabilities

P11-12

Priority Sustainable
Development Goals(SDGs)Natural Capital• Energy consumption: 42,780 GJ

Strengths of Our(FY 2022)**Scope 1 and 2 (including the headquarters,
branches, offices, research facilities, plants,
and other business establishments but
excluding construction sites)

Trust
Technological Capabilities
Human Resources
InitiativeValue Creation Process

The business environment surrounding the Shinryo Corporation is dramatically changing. We established theLong-term Vision 2030 to anticipate and transition these changes into business opportunities by responding to
the external business environment from medium- to long-term perspectives while heightening our value
creation capabilities. Our vision is to deliver refreshingness to the world. The aim of the Shinryo management
vision to create a freshening world will enhance sustainable corporate value.

Activities

Design/Engineering

OutcomeFinancial Capital

Higher Sustainable Corporate Value
Realization of the Management Vision

Results of Business Performance
FY 2023

Air
conditioning
systems

Security
SavingSavingOutput• Consolidated operating income:19.5 billion yen•C onsolidated net assets: 172.7 billion yen

Sanitation
systems

District heating
and coolingsystems

Cogeneration
systems

Installation

P17-18• Reduce greenhouse gas emissions•C ommendation awards for energy savings•R esearch and development of technology
to save, generate, and store energy
P11-12/P31-38

Brand Promise

We would like to provide a comfortable
air quality appropriate for where weContribute to a Resilient Society

work,• Provision of High-efficiency, Highquality Systems• Praise of technology through theinternal commendation program

spend our time, and in the surrounding

Realize Safe and Highly Efficient Work Processes

Engineering Company
Sustainable Decarbonized
Leading-Edge Technology“Create a Freshening World”

Contribute to a Decarbonized Society

P39-46

Vision 2030

Management Vision•Q uality improvements and prevention oftechnological trouble through construction
executed based on quality manuals• Prevention of human error• Active use of digital technologies

natural environment.
We would like to create a rich andpleasant environment.
We, Shinryo Corporation strive to realize
an even more comfortable and pleasant
lifestyle by providing optimal air quality
around the world.

P9-10/P47-52

Expand Core Business
Strategies
Promote a Digital
Transformation

Business Activities

Global Adaptability
Unity
Imagination

Build Refreshing Environments Rich with Creativity• Increases in the rate of paid leave
taken by employees• Higher employee satisfaction• 2023 Certified Health & Productivity
Management Outstanding Organization•A cquisition of Eruboshi (2 stars) certification

As a means to this end, we strive toprovide new value through flexible
thinking by heightening the technology
we have cultivated up until now evenfurther while sincerely responding to
the customers.

P53-62

We will continue to strive to realize aStrengthening of Business Foundation“Freshening World” by pursuing to over• Work Style Reform Promotion• Implementation of diversity training• Active investment in education• Active investment in research anddevelopment

greater value.

P11-12/P53-58

SHINRYO Report 20248

Construction Process Innovation with DX

Feature 1

The construction industry faces many issues including the decline in labor force and long work hours, and inturn needs to increase operational efficiency and productivity to combat such issues. Shinryo Corporation is
promoting digital transformation (DX) to solve these issues through digitalization and contribute to therealization of a sustainable and decarbonized society with advanced technology.

Providing New Value with DX
Each building construction has different specifications and conditions as each building has a different shape and facilities. As such,mechanization, automation, and standardization were thought to be difficult. Shinryo Corporation is taking on the challenge of
construction process innovation with three pillars of digitalization, industrialization, and systematization to contribute to theimprovement of productivity and construction quality throughout the construction industry. In addition, we are enhancing ourtechnological capability while also advancing the development of human resources that can promote and carry out DX. We will
provide new values to the society through DX including decarbonization technology, life cycle assessment (LCA) with BIM, andoptimum solution with the use of AI.

Industrialization

AI

Digitalization

Cloud

Systemization

Provision of
New Value

Construction Process Innovation

BIM

STEP1

STEP2

STEP3

Visualization andstatus recognition

Accurate estimation
and analysis

Automation and
Optimization

with digitalization

with data utilizationof Construction Process

Construction Process that Shinryo Corporation Envisions
Conventionally, operations related to construction were done all on-site. Shinryo Corporation aims to innovate the process to
optimize the entire on-site operations and make the operations more efficient by coordinating the construction site, off-site base,and back office through sharing BIM and other data.

Construction sites

Management using data

Use of robots

Optimum supply

Environmental
management
Quality management
Safety management
Process management

Off-site baseManufacturing
and assembly
Storage
Logistics

Standardization
and unitization ofmaterials andequipment

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SHINRYO CORPORATION

Unit product assembly

Remote management

Cooperation

Back office

Coordinationof BIM and data

Management of operations
and manufacturingFormulation of
construction plan andprocess
Cost management
Assignment of materials,
equipment, and personnel
Management of price-rate

Systematic construction
operations throughmaximum use of data

Feature

Three Initiatives to Innovate Construction Process
Digitalization

Use of BIM in All Aspects

We are utilizing BIM and other digital technologies in all
aspects of operations on-site.
In terms of construction, we are promoting the robotization
and automation through the use of robots that draw
construction blueprints that fully automatically draw
construction data on floors by using BIM data ( P35) andautomatic generation of diagrams for manufacturing
equipment units that are installed in construction sites. In
addition, we utilize new digital technologies such as process
management system that visualize the progress ofconstruction with a 3D model of a building ( P49).

Maintenance and management of customer building
Robot that draws
Modulation of unit
construction blueprints

CFD simulation

Realization
with BIM

Aggregationand heat load
calculation

Industrialization Improvement of Productivity and Construction Quality through Off-site Manufacturing
We are promoting off-site manufacturing which air
conditioners and piping are pre-manufactured as units at
plants and warehouses, and transported to construction sites
to be installed and assembled. Industrialization of
prefabrication method which air conditioning ducts and otherparts are manufactured at plants is being promoted by directlysending data on dimensions of processed goods and number oforders to the manufacturer based on digitalized construction
information.
Unit production at partner company factory

Systemization

Cooperation with Back Office

We are accelerating the digitalization through BIM and ICT tocreate an environment where operation can be also carried out
from outside the construction sites. We have built a back officesystem for systematically conducting construction operations
by identifying operations that can be conducted outside theconstruction sites and standardizing them. We are conducting
this initiative in cooperation with the deployment of humanresources company Global Staff of Shinryo Group ( P64).
Blueprint adjustment meeting with a construction site

TOPICS
Practical Application in Construction of New Main Building of Innovation HubConstruction of the new main building of the Innovation Hub completed in November 2023 ( P11-12) put construction processthat fully utilized BIM into practice. Its effects and issues were reported to the BIM Model Project of the Ministry of Land,
Infrastructure, Transport and Tourism (MLIT) to contribute to the promotion of BIM in Japan.
(Initiative on BIM Model Project of MLIT is available on P50)
Initiatives

Effects, etc.

Participation in BIM Model Project of
MLIT

Achievement reports for FY
2020 - FY 2022 Results report

Unitization and prefabrication ofmaterials and equipment

80% implementation

Automation of marking using robots

40% implementation

Shift of on-site operations to the backoffice60% implementation

BIM model of new main building of the Innovation Hub

SHINRYO Report 2024

10

Feature 2

Construction of New Main Building of Shinryo Innovation Hub

Challenge Toward Decarbonization
The Innovation Hub is taking on the challenge of achieving effectively
zero greenhouse gas emissions from research and development
activities by 2030 which we named “Innovation Hub-CN2030.”
We will introduce new decarbonization technologies in
the facility, analyze their effects, and share many
valuable finds during this challenge withthe society.

Vision of Innovation Hub
In 1990, we opened the Japan’s largest facility in the industry, the Research andDevelopment Center, in Tsukuba City, Ibaraki. The center has been providing
various energy saving and renewable energy technologies to the society. In 2022,
the center was renamed to the Innovation Hub to promote open innovation in
response to the changes in the social landscape and speed of technologicaladvancement. We are focused on three themes of realization of a decarbonizedsociety (GX), use of digital technology and innovation of operational andmanufacturing processes (DX), and collaboration. In November 2023, new mainbuilding of the Innovation Hub, a platform for creating and disseminating newvalues, was completed.

Three Themes of Innovation Hub Initiatives

Innovation Hub-CN2030*1 CN: Carbon neutral*2 ZEB: Building with net zero annual primary energy consumption

Plan of Innovation Hub-CN2030
Greenhouse gas emissions from researchand development activities

The Innovation Hub is working on “Innovation HubCN2030,”*1 an initiative aiming to achieveeffectively zero greenhouse gas emissions throughresearch and development activities.
The new main building acquired ZEB*2
certification with the its introduction of various
decarbonization technologies and renewableenergy, reducing greenhouse gas emissions by 50%.
Going forward, we will strive toward carbon
neutrality through research and development ofdecarbonization technology and renovation ofexisting facilities.

Energy saving byexisting technology

1. Completion of New Main BuildingImplementation of decarbonization
technologies and renewable energy
Acquisition of ZEB certification-50%

Renewable energy

2. Toward CN2030
Effectiveness analysis of technologies
developed in-house
Renovation of existing testing facility
Expansion of renewable energy facility

FY 2009 (company-wide base year)

Energy saving by
developed technology-100%
FY 2022

FY 2023

FY 2030

Research and development of energy saving and renewable energy technology
Acceleration of GX, DX, and collaboration(Company-wide initiatives on carbon neutrality:

11

SHINRYO CORPORATION

P31-34）

Feature

1. Completion of New Main Building

この建物のエネルギー消費量

114 ％削減

The new main building implements highly efficient equipment, photovoltaic generation system, and various energy saving andrenewable energy technologies to realize ZEB and reduce primary energy consumption from the 建築物省エネルギー性能表⽰制度
design stage by 114% compared tothe base value. Through these initiatives, the hub acquired highest BELS ranking of ★★★★★ .
The building also acquired CASBEE - Wellness Office S Rank for being recognized
as a building that realize both decarbonization and comfortable workplace.
国⼟交通省告⽰に基づく第三者認証
2023年5⽉8⽇交付

Implementation of decarbonization technologies and renewable energy that realized ZEB
Implementation of highly efficient heatReduction of outdoor air load with fullsource equipment
heat exchanger
Reduction of power consumption ofImplementation of photovoltaic
fans with variable-air-volume
generation system
conditioning system
Implementation of highly efficient LED
Reduction of load on air conditioning
lightingwith outdoor air coolingetc.

3
この建物のエネルギー消費量

114％削減2023年5⽉8⽇交付 国⼟交通省告⽰に基づく第三者認証

Highest BELS Rank ★★★★★
ZEB Certification

CASBEE - Wellness Office
S Rank

2. Toward CN2030
The following new decarbonization technologies were developed and implemented in the new main building. We will strive toward
carbon neutrality through analyzing the effectiveness of these technologies.

Three-pipe Dynamic Range Chilling Heat Source System
Three-pipe dynamic range chilling heat source system is a systemthat connects heat source equipment that supply cooled water at
different temperatures with three piping systems. Efficiency of thesystem is improved by supplying water from the heart source
equipment to each air conditioner at optimum temperaturedepending on the heat load and outdoor air conditions.

4th Dimension Minienvironment Air Conditioning3 System
4th dimension minienvironment air conditioning system is an air
conditioning system that combine floor radiant air-conditioning andblowing air from floor ducts using reversable fans. The systemcreates a comfortable temperate environment with lower energy use
by controlling air flow volume of each space according to the
movement of people.
Comfortabletemperature

Cooling
tower

Cooling tower Generation of hotcooling waterHeat
exchanger (Air-cooled chiller)

Use of hot cooling water(Radiant air-conditioning, etc.)

Generation of coldcooling water(Water-cooled chiller)

Reversable
fanFloor radiantair conditioningAir
conditioner

Use of cold cooling water(Dehumidification coil, etc.)

4th dimension minienvironment air conditioning system

Three-pipe dynamic range
chilling heat source system
Natural ventilation

CFD-connected PMV control
Dynamic range radiant air conditioning system

Variable-air-volume Coanda air conditioning system

CFD-connected PMV Control*1

Variable-air-volume Coanda Air Conditioning System

CFD-coordinated PMV control estimates the room environment in
the near future based on temperature, humidity, and othermeasurements along with weather forecast with CFD technology.
Furthermore, the system controls the room environment to be
comfortable based on the estimate with minimal energy.

This air conditioning system using the Coanda effect creates a jet of
air flowing along the ceiling, which eliminates the need for duct
space. This system realizes greater energy savings of blower powerby delivering a uniform airflow to every corner of the room,
regardless of the strength of airflow.

Air conditioning
control

Estimation of room environment

Realization of comfortableroom environment*1  C FD: Computational Fluid Dynamics
PMV: Predicted Mean Vote. An indicator for how people feel temperature.

Air flow of Variable-air-volume Coanda
air conditioning system

Constant autonomous wind speed
device Air-Soarer®*2*2 Air-Soarer® was developed jointly by Mitsubishi Jisho Design Inc., Shinryo
Corporation, Shibaura Institute of Technology, and Kyoritsu Air Tech Inc.

SHINRYO Report 2024

12

History of Shinryo Corporation

Aiming to Create a Freshening WorldThis section introduces the history of Shinryo Corporation, which was founded in 1956,
that has been cultivated to its efforts in developing people toward achieving
1978-1987
the management vision to “Create a Freshening World.”
Evolution of Japanese Business and1969-1977
Expansion of Overseas Business
1956-1968
Founding and Trajectory
1956 • Established our Head Office at
45 Nishikubo Tomoecho,
Minato-ku, Tokyo and founded
our company with five million
yen in capital• Received our first order forcooling equipment work at the
Kaori cafe and restaurant
1957 • Received an order for ShinOtemachi Building, the largest
building in Japan at that time,and established the foundationof our company• Received an order for full
retrofitting of construction
equipment at the Fuji Tsushinki
Manufacturing Kawasaki plant1958 • Opened the Osaka Office

1960 • Moved Headquarters (2-4,
Yotsuya, Shinjuku-ku, Tokyo)• Completed the Training
Dormitory “Kofu Dormitory”
1961 • Opened the Nagoya Office
1964 • Established the Construction
Division and Equipment Division
1965 • Developed and installed Japan’s
first “3-pipe Air-conditioning
System” in the head office ofNippon Fudosan Bank
1966 • Opened the Hiroshima Office
1967 • Opened the Sendai Office
1968 • Deployed three engineers on afact-finding mission in the U.S.A.
• Introduced a skyscraper building
application and refrigerator
computer control at the World
Trade Center Building

Enhancement of Division-based
Organization System and Expansion
to New Business Regions

1969 • Opened the Fukuoka Office• Received an order to install a
district heating and coolingsystem at the Senri New Town
Chuo District Center• Received an order to install a
district heating and coolingsystem in Shinjuku Fukutoshin
District
1970 • Completed the newheadquarters building• Established the industry’s firstresearch center for air
conditioning technology• Established the Nuclear Power
Plant Department to enter theenergy plant industry for
nuclear power use
1971 • Opened the Chugoku Branch1972 • Received the first order for
full-fledged overseas work at
the Vietnam Cho-Ray Hospital• Opened the Sapporo Office

1978 • Opened the Hong Kong Branch
as a base for overseas expansion
1979 • Established overseas
department as a major pillar of
business for overseas expansion• Acquired the Level 1 Plumbing
Registration from the Ministryof Construction (currently the
Ministry of Land, Infrastructure,
Transport and Tourism)• Developed the NAIAS sludge
atmospheric flotation concentrator
1982 • Established a local company inHong Kong (SHINRYO (HONG
KONG) LTD.)1983 • Opened the Singapore Branch• Established a local company in
Malaysia SHINRYO (MALAYSIA)
SDN. BHD.
1986 • Established a local company inThailand (THAI SHINRYO LTD.)1987 • Established a local company in
Taiwan (TAIWAN SHINRYO CO.,LTD.)

Shin-Otemachi Building
Air conditioning System
Cho-Ray Hospital
Air conditioning and sanitation Systems(Vietnam)Shinjuku Fukutoshin District
District Heating and Cooling System

1975 • Opened the Tohoku Branch
1976 • Received the first order foraquarium equipment
renovations of the Izu Mito
Natural Aquarium (currently Izu
Mito Sea Paradise)
1977 • Opened the Maizuru Plant• Received order for the firstphase construction of the Kwun
Tong Hong Kong Subway LineThe Hong Kong and Shanghai Banking
Corporation Limited, HSBC Main Building
Air conditioning, sanitation and electric
System (Hong Kong)

Established1956 〜
History of Technical and Human Resource
Development
13

1960 〜

1970 〜

Initial Meeting to Establish Shinryo
Corporation

The Company Philosophy clearly
expresses the life philosophy andbusiness philosophy of our founder
Chairperson Masaru Kagami(deceased). Shinryo Corporation
was established to embody thisphilosophy in the business world.
These three principles serve as
the “roots” Shinryo Corporation
and are the foundation for all
thinking, decision-making andaction of executives.

SHINRYO CORPORATION

1980 〜1969

1970

Enhanced the organization by adopting
a division-based organization system.
Authority was given to each department
for the purpose of teaching junioremployees

Completed the headquarters building in
Yotsuya located in Shinjuku district.
Accelerated autonomy as an organization

1970
The First Members Training at the
Takamatsu Dormitory

Established the industry’s first research
center (Osaki, Shinagawa-ku, Tokyo)

History of Shinryo Corporation

2019 to Present
2009-2018
1998-2008
1988-1997
New Mission and Restructuring
of Core Businesses
1990 • Opened the Research andDevelopment Center in Tsukuba
Academic Town in Tsukuba City,
Ibaraki• Established a local company in
the Philippines (SHINRYO(PHILIPPINES) CO., INC.)• Received an order from THE
LANDMARK TOWER
YOKOHAMA

Establishment of Advanced
Technology Regions
1998 • Acquired the ISO 9000s
certification• Began development of numerical
fluid analysis technology using
super computers• Received an order from the
Okinawa Churaumi Aquarium2001 • Acquired ISO 14001 certification• Received an order for a district
heating and cooling system in
the Marunouchi District
2002 • Received an order for the Sharp
Corporation Kameyama Factory

Perseverance and Organizational
Development to Expand Business Regions

Progress Toward a Future andEnvironmental Engineering Company
2020 • Moved Headquarters (1-6-1,
Yotsuya, Shinjuku-ku, Tokyo)
2022 • Launched the DX Promotion
Division• Renamed the Research andDevelopment Center to theInnovation Hub andrestructured its role within the
Shinryo Group
2023 • Moved the Kofu Dormitory to
Nishitokyo City• New main building of Innovation
Hub completed

2009 • Started renovations of theheadquarters building (energy
saving Eco-project at theheadquarters building)2010 • Established the Control &Instrument Engineering Division2011 • Opened the Takahama Plant
2012 • Commemorated for the long-timecertification of the environmental
management system• Opened the Working Drawing Center2014 • Drafted the “Create a Freshening
World” management vision• Established the CSR Promotion
Division and Compliance
Promotion Division• Introduced the overseas
practical dispatch system andthe overseas short term training
system for new employees
2015 • Began on-site training forengineers from overseas
2017 • Standardized an English logo
2018 • Established a local company inIndia (SHINRYO SUVIDHAENGINEERS INDIA PVT. LTD.)

Kiyohara Smart Energy Center
Civil Engineering and Construction of Plant
Facilities

Toranomon Hills Mori Tower
Air conditioning System

Tokiwabashi Tower
Air conditioning System

The Venetian Macao Resort
Air conditioning/District Heating and Cooling
System (Macau)

Jewel Changi Airport
Air conditioning and Mechanical ventilation
Systems (Singapore)

Sharp Corporation Kameyama Factory
Air conditioning System

THE LANDMARK TOWER YOKOHAMA
Air conditioning System

1992 • Opened the TechnicalSupervision Department and
Safety Supervision Department• Passing of Founder Chairperson
Masaru Kagami
1994 • Established a local company inIndonesia (PT. SHINRYOINDONESIA)
1995 • Received an order for the firstoverseas district cooling systemat the Kuala Lumpur
International Airport

2003 • Released the 3D-CAD “S-CAD”
working drawing CAD for
construction equipment
2005 • Opened the Middle East (Dubai)
Branch2006 • Moved the Kofu Dormitory to
Yokohama
2007 • Established a local company inVietnam (SHINRYO VIETNAMCORPORATION)• Opened the Abu Dhabi Branch2008 • Registered the Research andDevelopment Center as a
Certified Environmental Survey
and Odor Measurement Service

Tokyo DomeAir conditioning System

1990 〜2010 〜2020 〜
Implemented various programs for
new employee training andeducation

1990

2015

2023

Opened the Research and Development
Center (Tsukuba City, Ibaraki)

Start of Japan Invitation Program forOverseas Group Companies

Moved Training facility Kofu Dormitory
to Nishitokyo City
Hands-on skill training

1992

2016

2023

Passing of Founder Chairperson Masaru
KagamiStart of Shinryo Group-wide New
Employee Training

New main building of Innovation Hubcompleted

Creation of work drawings

SHINRYO Report 2024

14

Corporate Profile

Corporate Information

List of Executives

Company Name

SHINRYO CORPORATION

Headquarters Address

1-6-1, Yotsuya, Shinjuku-ku, Tokyo

Takeshi Kagami
President,
Representative
Director

Date of Establishment

February 23, 1956

Number of Employees

2,262 people (non-consolidated)
5,279 people (including Group companies)

Capital

3.5 billion yen(As of September 2023)

Representative Tetsuro Kochiya
Director
Directors

Yoji Kawai
Audit &
Supervisory
Board Member

Construction Business License (Japan) (As of January 2024)
License Number(Special 1) No. 3447 issued by Minister ofLand, Infrastructure, Transport and Tourism

Date of License

March 11, 2020

Licensed business

Plumbing, Electrical, Machine and Equipment
Installation, Building, Civil Engineering, Steel
Structure, Interior Finishing, Water andSewerage Facilities, Telecommunication,
Scaffolding, Earthwork and Concrete,
Sanitation Facilities

License Number

Outside Audit Toshihito Furuya& Supervisory Koichi Kubo
Board Members
Takeshi Kagami*
President &Chief Executive
Officer
Executive Vice
Presidents

March 11, 2020

Licensed BusinessFire Protection Facilities

Tetsuro Kochiya* General Manager, Technical Supervision
Division & in charge of Group Health &Safety, and ComplianceTakeo Yamaguchi Representative of West Japan(Ordinary 1) No. 3447 issued by Minister ofLand, Infrastructure, Transport and Tourism

Date of License

Takao Watanabe
Koichi Kaji
Sayaka Kagami
Non-Executive Director
Hideaki Fujizuka Outside Director& General Manager, Osaka Branch

Takao Watanabe* General Manager, Marketing Supervision
Division

Main Registered Business (Japan)
Senior registered architect officeSeniorManaging
Executive
Officers

Takeshi Egi

General Manager, Urban Environment
Division

Satoru Narisawa

General Manager, Tokyo Metropolitan
Area Division & in charge of East Japan

Managing
Executive
Officers

Koichi Kaji*

General Manager, Corporate
Management Division & in charge ofGroup Management and Sustainability
Promotion
General Manager, DX Promotion Division

Registration Number

No.46232 issued by Governor of Tokyo

Katsuhiko Yakita

Date of Registry

April 10, 2021

Tatsuji Yoshimura General Manager, Asia Business Division

Main qualifiersName of certificationNumber of people

Professional Engineer Japan (Engineering Management)

3

Professional Engineer Japan (Environmental Engineering)

42

Professional Engineer Japan (Mechanical Engineering)

3

Professional Engineer Japan (Water Supply & Sewerage)

1

First-Class Plumbing Work Operation and Management
Engineer

Executive
Officers

131

First-Class Building Operation and Management Engineer

17First-Class Civil Engineering Works Execution Managing
Engineer10

1st class Qualified Certified Electrician

31

3rd Class Electric Works Specialist

33

Class A Fire Defense Equipment Officer

329

Class B Fire Defense Equipment Officer

18

1st-class Kenchikushi (Architect)46

Qualified Person for Energy Management

126

Building Facilities Diagnostic Technician

In charge of Sales Promotion, Marketing
Supervision Division

Hideki Hagiwara

President & Representative Director,
Shinryo Technical Service Corporation

Takuji Fujisawa

General Manager, Air Conditioning
Equipment Division

Yukitoshi Maeda

General Manager, Innovation Hub

Hideki Furumoto In charge of Sales Promotion, Marketing
Supervision Division

1,143

First-Class Electric Works Execution Manager

Kazuto Inabe

Naoki Uchiyama

In charge of Sales Promotion, Marketing
Supervision Division

Koji Murakami

General Manager, Marunouchi Branch

Masahiko
Kitabayashi

General Manager, Yokohama Branch

Hiromitsu Fujioka Deputy General Manager, Tokyo
Metropolitan Area Division

HideyukiNagasawa

Deputy General Manager, Urban
Environment Division

Shuichi Abe

Deputy General Manager, Marketing
Supervision Division

Takehiro Masuda General Manager, Nagoya BranchToshiyuki Shimizu General Manager, Tohoku Branch
Shuji Chiba

Deputy General Manager, DX Promotion
Division & General Manager, Production
Engineering Department

Toshiya Terao

General Manager, Kyushu Branch

Hideki Nagato

Deputy General Manager, Urban
Environment Division93

Ken Shima

Building Mechanical and Electrical Engineer

231

General Manager, Nuclear Power Plant
Division

The First Level Instrumentation Engineer

367

Minetoku
OkamuraGeneral Manager, Electric & Instrument
Division

Professional Engineer(CxPE: Commissioning Professional Engineer)

5

Motosuke Kadono Deputy General Manager, Osaka Branch
Executive
Fellow

Yasunori Abe* Executive Officers also acting as Directors

15

SHINRYO CORPORATIONCorporate Profile

Organizational Chart
Marketing Supervision
Division

Procurement Department
Quality & Environment
Management Department

Technical Supervision
Division

Safety & Health Promotion
Department
Production Engineering
Department
Digital Promotion Planning
Department

DX Promotion Division

Mission-critical System
Department
Corporate Strategy &Planning Department
General Affairs Department
Accounting & Finance
Department
Human Resources
Department
Corporate Communication
Department

Corporate Management
Division

Real Estate Development
Department
Overseas Management
Department
Innovation Hub
Gunma office/Tochigi office/Tsukuba office/Niigata office/Kawaguchi office/Kofu office/Matsumoto office

Kanto branch
officeTokyo Metropolitan Area
Division

Chiba branch
officeNuclear Power Plant
Division

Rokkasho Center/Tokai Center/Wakasa Center/
Yokohama Center/Takahama Plant

Hokkaido Branch
Tohoku Branch

Aomori office/Iwate office/Akita office/Yamagata office/Fukushima office

Marunouchi Branch
Yokohama Branch

Kanazawa office/Fukui office

Hokuriku Branch
Nagoya Branch

Gifu office/Shizuoka office/Hamamatsu office
Shiga sub-branch office

Keiji branch
officeKobe branch
officeMatsuyama sub-branch office

Risk Management
Promotion Office

Kawasaki office

Audit & Supervisory
Board

Hakodate sub-branch office/Asahikawa subbranch officeCompliance
Promotion Division

Asia Business Division

Audit Division

Electric & Instrument
Division

HONG KONG Branch/MACAU Branch/
CAMBODIA Branch/SINGAPORE Branch/ABU
DHABI Branch/DUBAI Branch/
KENYA Branch

General Meeting of
Shareholders

Nagoya office/Kobe office

President

Air Conditioning Equipment
Division

Vice President

Osaka branch
officeBoard of Directors

Urban Environment
Division

Osaka Branch

Shikoku branch
officeTenri sub-branch office/Wakayama sub-branch
officeSanin sub-branch office/Okayama office/Mizushima sub-branch office/Yamaguchi office

Chugoku Branch

Kumamoto office/ Miyazaki sub-branch office/Kagoshima office/Okinawa office

Kyushu Branch

SHINRYO Report 2024

16

Overview of the Shinryo Group

Number of Companies

16

The Shinryo Group provides people-friendly and environmentally-friendly
air conditioning, water-supply and drainage sanitation, electrical systems,
city-friendly and community-friendly district Heating and Cooling
Systems, safe and secure plant systems, and comprehensive information
systems that support energy savings.
Overseas, the Group also delivers a “Freshening World” by setting up
bases primarily in Asia and the Middle East.

Shinryo Corporation
6 Japanese Group Companies
9 Overseas Local Companies

Shinryo Corporation Headquarters
Branches and offices of Shinryo Corporation
Group Companies

TaiwanHong Kong

Japan

Macau
Dubai

Abu Dhabi

India

Hanoi
MyanmarPhilippines

ThailandCambodia

Vietnam

Malaysia

Singapore

Kenya
Indonesia

Business Performance Trends
Orders received

Net sales
317,457[Million yen]
300,000

240,000

243,890

266,342

192,789

213,157

259,072
230,799

240,000

228,884[Million yen]
20,000272,982

233,297

176,310

183,955

199,166

209,223

16,000180,000

120,000

120,000

8,000

60,00060,000

4,000

2020

Consolidated

2021

2022

Non-consolidated

SHINRYO CORPORATION

2023

[FY]

0

2020

Consolidated

2021

19,525
16,67015,084
15,44815,056
14,914
13,293

17,23912,000180,000

0

17[Million yen]
300,000

276,913

209,800

Operating income

2022

Non-consolidated

2023

[FY]

0

2020

Consolidated

2021

2022

Non-consolidated

2023

[FY]

Corporate Profile

Business Network82

Net sales

272.9

bases

63 Japanese bases
19 overseas bases

Number of Employees

5,279

billion yen

209.2 billion yen (non-consolidated)people2,262 people (non-consolidated)

SHINRYO CORPORATION
Design, construction and maintenance of building
system work

Shinryo Technical Service Corporation
Design, construction and maintenance of
plumbing, drainage and sanitary service work

Shiroguchi Co., Ltd.
Design, construction and maintenance of electric
service work

Daiei Denki Co., Ltd.
Kanto Area
Shinryo Corporation Headquarters
Shinryo Corporation
12 bases such as branches and offices
5 Group Companies

Design, manufacture, sales, installation andaftercare services of pumps

Shinryo Kougyo LTD.
International tourist hotel

Akita Castle Hotel Co., Ltd.
Deployment and outsourcing of human resources

Global Staff Co., Ltd.
Design, construction and maintenance ofbuildings and civil engineering/industrial
production service work

Ordinary profit

Net assets[Million yen]
25,000[Million yen]
175,000

24,81720,00015,00017,342
16,648 17,251
15,391

19,217SHINRYO TECHNICAL SERVICES LTD.

172,746
152,069

21,425SHINRYO (HONG KONG) LTD.

155,590 156,720
141,219 140,156

153,447

136,708

140,000

TAIWAN SHINRYO CO., LTD.
SHINRYO (PHILIPPINES) CO., INC.

16,629

THAI SHINRYO LTD.

105,000

SHINRYO (MALAYSIA) SDN. BHD.
10,00070,0005,000

35,00002020

Consolidated

2021

2022

Non-consolidated

2023

[FY]

0

PT.SHINRYO INDONESIASHINRYO VIETNAM CORPORATION
2020

Consolidated

2021

2022

2023

[FY]

SHINRYO SUVIDHA ENGINEERS INDIA
PVT. LTD.

Non-consolidated

SHINRYO Report 2024

18

Business Fields
The features of business at Shinryo Corporation are the state-of-the-art construction technology and trackrecord accumulated in Japan and overseas up until now. Our businesses create people-friendly andenvironmentally-friendly air conditioning, water-supply and drainage sanitation, electrical systems, and leadingedge production environments in addition to city-friendly and community-friendly district heating and coolingsystems and comprehensive information systems that support energy savings. Shinryo Corporation will earn thetrust of customers and meet their expectations with technology, proven success and sincerity.

Planning & Proposal/Research & Development
We propose optimal spaces according to
the needs of customers in terms of bothtechnology and cost through coordination
between our design and construction
divisions. Shinryo Corporation provides
advanced planning through the use ofcomputational fluid dynamic simulations.

Design/Engineering
Concern forEnvironment

Safety andSecurity

We listen closely to the needs of ourcustomers to provide the suitable
designs and engineering of equipment
system, which includes selecting theappropriate materials and equipment.

Energy Saving
Resource Saving

Comfort19

MaintenanceInstallation

We provide the support to prolong theuse of equipment systems such as
operational management of thosesystems, commissioning, inspections forthe state of equipment degradation andthe formulation of long-term
maintenance plans.

We offer sound installation throughmeans that include the creation of
construction drawings, proper process
management, quality management,
environmentally- and safety-friendly
construction management as well as
test runs.

SHINRYO CORPORATIONCorporate Profile

Business Items
 esign and construction ofDvarious building services
Environmental service work
Air conditioning and mechanical ventilation
systems/industrial air conditioning andmechanical ventilation systems/clean room
systems/dry room systems/bio-hazard
facilities

Water-supply, drainage and sanitation
Water supply and hot water supply systems/
soil and waste drainage systems/gas supply
systems/kitchen equipment systems

Urban utility service work
District heating and cooling systems/energy
supply systems

HVAC systems

Plumbing and sanitation

District heating and cooling systems

Cogeneration systems

Electrical systems

Comprehensive information systems

Plant facilities

Aquarium facilities

Cogeneration systems
Power generation systems/heat recovery
systems

Electrical systems
Power cable systems/Extra low voltage
systems/Power receiving equipment andtransformer systems/Main & submain power
distribution systems/Generator systems

Automatic control systems
Building management systems/Instrument
equipment systems

Comprehensive information systems
Various control and management systems forutility plant facilities, industrial production
facilities, building facilities, etc.

Firefighting service work
Automatic fire alarm systems/smoke purgeand smoke extraction systems/evacuation
guidance systems/indoor and outdoor fire
hydrant systems, sprinkler systems and othertypes of fire extinguishing systems

Power plant service work
Ventilation and air-conditioning systems fornuclear power and thermal power plants/
special filtering systems/waste treatment
systems

Industrial production service work
Pharmaceutical and food plant facilities/
petroleum-related facilities/other plant facilities

Special service work
Aquarium facilities/pool facilities/weather
simulation facilities/various environmental
reliability testing systems/freezing andrefrigerating systems/ultra-low temperatureand high accuracy temperature control systemsD esign and construction of building
Clean rooms/plant buildings/interior finishingwork/associated construction work forbuilding services/general building facilitiesS ales of air conditioning equipment
Air conditioner and other heating and cooling
products/fans and blowers/sanitary ware/other products related to air conditioning
and ventilation

SHINRYO Report 2024

20

Construction Track Record
Japan

Offices, hotels, and district heating and cooling systems

Tokiwabashi Tower(Chiyoda-ku, Tokyo)

Air Conditioning
SystemDai Nagoya Building(Nagoya City, Aichi Prefecture)

Air Conditioning
SystemTHE LANDMARK TOWER Air Conditioning
SystemYOKOHAMA(Yokohama City, Kanagawa Prefecture)

Palace Hotel Tokyo • Palace Building(Chiyoda-ku, Tokyo)

21

SHINRYO CORPORATION

Air Conditioning
SystemMizuho Marunouchi Tower(Chiyoda-ku, Tokyo)

Air Conditioning
SystemCorporate Profile

Otemachi, Marunouchi 1-chome & 2-chome
and Yurakucho Districts DHC

District Heating
and Cooling System(Chiyoda-ku, Tokyo)© TOKYO-SKYTREETOWNTokyo Sky Tree® District DHC(Sumida-ku, Tokyo)

District Heating
and Cooling System

Features of the sc-brain Comprehensive Information
System and Main Delivery Record
sc-brain is a comprehensive information system to realize
high efficiency operation and energy savings in systems
by configuring operational support features to assist theoperation of system equipment as well as data management
features to analyze energy consumption trends. As a highly
universal and easy-to-use system, sc-brain is used in facilities
from office buildings and factories to district heating andcooling plants.
[Main Delivery Record]
 apporo Station area district heating and cooling systems•S(Sapporo City, Hokkaido)•N arita International Airport central heating and cooling plant(Narita City, Chiba)• Adachi Metropolitan Taxation Office(Adachi-ku, Tokyo)•M arunouchi Center Building/Shin-Marunouchi Center Building(Chiyoda-ku, Tokyo)•H isaya-odori Nagoya Municipal Subway Station(Nagoya City, Aichi)

Photo courtesy:
Minato Mirai 21 District Heating and Cooling Co., Ltd.

Minato Mirai 21 Central District DHC

District Heating
and Cooling System(Yokohama City, Kanagawa Prefecture)

Construction track record in districts heating supply
operations throughout Japan
Construction/delivery record/national share• District heating
and cooling systems:• District with sc-brain:

72 (Share: 52%)
56 (Share: 40%)

Hokkaido Area
District heating and cooling systems: 3
District with sc-brain: 2
Chubu/Hokushinetsu Area
District heating and cooling systems: 9(Share: 75%)
District with sc-brain: 7(Share: 58%)
Kansai Area
District heating andcooling systems: 7
District with sc-brain: 4•O saka Station area district heating and cooling systems(Osaka City, Osaka)• Japan Post Shin-Osaka Post Office(Osaka City, Osaka)•F ukuoka City Chiyo area district heating and cooling systems(Fukuoka City, Fukuoka)

Kanto Area
Kyushu Area
District heating andcooling systems: 1
District with sc-brain: 1

District heating andcooling systems: 52(Share: 61%)
District with
sc-brain: 42(Share: 50%)SHINRYO Report 2024

22

JapanEnergy Centers, Plants, Hospitals, Building Complexes, Aquariums,
Theaters, and Research Facilities

Hareza Tower(Toshima-ku,
Tokyo)

Kiyohara Smart Energy Center(Utsunomiya City, Tochigi Prefecture)

Civil Engineering andConstruction of Plant Facilities

Air Conditioning
SystemOsaka Umeda
Twin Towers
South(Osaka City, Osaka)
Air Conditioning andSanitation System

Kochi Prefectural Ashizuri Aquarium

Rearing
SystemIUHW Narita Hospital

Air Conditioning andSanitation System

Suntory Kita-Alps Shinano-no-Mori Air Conditioning and Mechanical
Ventilation, Sanitation Systems
Water Plant

Takasaki City Theatre

Air Conditioning
System(Yokohama City, Kanagawa Prefecture)(Tosashimizu City, Kochi Prefecture)(Omachi City, Nagano Prefecture)

23

Heat Source and
Air Conditioning
Systems

Chugai Life Science Park Yokohama

SHINRYO CORPORATION(Narita City, Chiba Prefecture)(Takasaki City, Gunma Prefecture)Corporate Profile

Commercial Complexes, Data Centers, Transportation,

Overseas Energy Plants and Bio Plants

Marina Bay Sands Integrated Resort

Air Conditioning and
Mechanical Ventilation Systems(Singapore)

NARRA1 Data Center(Philippines)

Air Conditioning, Firefighting
and Electric Systems

MOMBASA PORT DEVELOPMENT
PROJECT PHASE-2 (Kenya)

Air Conditioning, Sanitation,
Firefighting and Electric Systems

Hong Kong West Kowloon Station,
Guangzhou-Shenzhen-Hong Kong
Express Rail Link (Hong Kong)

Air Conditioning andElectric Systems

GSPP Cogeneration Plant(Malaysia)

Plant Facilities/Civil
Engineering and Construction

THAI KYOWA BIOTECHNOLOGIES Plant Facilities/Civil Engineering and Construction(Air Conditioning, Sanitation, Firefighting, Electric,CO., LTD. (Thailand)
and Instrumentation Systems)

District Cooling Plant for the New Abu Dhabi
International Airport Terminal

District Cooling
System(United Arab Emirates)

SHINRYO Report 202424

Sustainability
TY
CIE
O

DECA
R

Initiatives to Address Priority Subjects

NIZED S
BO

Relevant SDGs

Contribute to a DecarbonizedSociety

Achieving the goals of the Paris Agreement and realizing a decarbonized society are pressing issues as the effects
of global warming grow.
Shinryo Corporation will strive to reduce greenhouse gas emissions and other such measures in its businessactivities from design, installation and maintenance to research and development as a way to help realize adecarbonized society as an environmental engineering company.

Shinryo Corporation Sustainability Promotion Activities

Adaption to Climate Change

Japan announced its commitment to carbon neutrality in
October 2020 calling for net-zero greenhouse gas emissions by
2050. In April 2021, the government also announced its target
to reduce greenhouse gas emissions 46％ by fiscal 2030
compared to 2013 levels.
The realization of decarbonized society is an importantobstacle to overcome to enable sustainable development ofsociety. Shinryo Corporation promotes the six items below toensure effective initiatives solutions to realize target.

26

Sustainability Promotion Management

31

Initiatives to Address Priority Subjects• Promote an Environmental Management System(EMS)• Identify and mitigate greenhouse gas emissions• Promote labor savings as well as BIM and a digitaltransformation on construction sites• Leverage technologies that use renewable energy• Accelerate research and development ofdecarbonization technologies• Implementation of decarbonization technologies in ourfacilities

As KPI of the SDG priority subjects, we aim to reduce Scope
1 and 2 greenhouse gas emissions by 50% by 2030 as part ofour efforts to realize carbon neutrality by 2050. Our efforts in
Scope 3 emissions have set a 100% implementation rate ofdesign proposals for greenhouse gas emission reductions
during system operations as a KPI and are striving to propose
better technologies to customers.
In November 2023, we have declared our support for therecommendations of the Task Force on Climate Related
Financial Disclosures (TCFD). We will analyze risks andopportunities related to climate change in our businessactivities and implement measures for them.

KPI

Greenhouse Gas Emissions Scope 1 and 2(Compared to 2009)50
Net Zero• 2030% Reduction• 2050FY 2022 Results 40%
KPI

Outline of KPI for Priority SDG Subjects (Detailed List on

P34

P29-30)Road Map to 2050

Priority Subject 1 Contribute to a Decarbonized Society

31 Adaption to Climate Change

NIZED S
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31

32 Environmental Management System (EMS)
32 Participation in TCFD Recommendations
33 Initiatives to Mitigate Greenhouse Gas Emissions from the2050 Net Zero Greenhouse Gas Emissions
Leverage Technologies That Use
Renewable Energy
Labor Savings on Construction Sites 2030
Promotion of BIM and a Digital
Net Zero Greenhouse Gas Emissions from Research
Transformation
and Development Activities

2040

FY 2023

Implementation of Decarbonization
Construction of New Main
Technologies in our Facilities
Building of Innovation Hub
Acceleration of Research and Development After FY 2017
Restructuring of Researchof Decarbonization Technologies
and Development Center
Identification and Mitigation ofGreenhouse Gas Emissions
2010-2019

2030(Current Innovation Hub)

2016-2024

Work Style Reform

Renovations to Save Energy at Old
Headquarters Building
Base year: FY2009

2010

2020
Promotion of Environmental
Management Systems (EMS)

Propose energy savings to customers, improve
on-site productivity, and promote the 3Rs

Supply Chain
37 Contributions to Recycling-oriented Society/Biodiversity
Conservation

39

39 ES CON FIELD HOKKAIDONFRASTR
TI

TURE
UC

RESILIEN

Priority Subject 2 Contribute to a Resilient Society

41 Singapore Mass Rapid Transit (MRT)Thomson-East Coast Line Stage 3 (TEL3)
43 3GeV Synchrotron Radiation Facility “NanoTerasu”
44 FUJI FOODS Ibaraki Plant
45 Okayama Performing Arts Theatre Harenowa
46 Nagasaki City HallND

BETTEROCESSPRSAFETY A

47

Priority Subject 3 Realize Safe and Highly Efficient Work

Processes
47 Quality Management System (QMS)
49 Initiatives to Improve On-site Construction Productivity
50 Challenging Toward New Operational Process with BIM
51 Health and Safety Initiatives
52 Supply Chain Initiatives

CTIVE C
TA

ATIVE
RE

EARNE
S

53

Priority Subject 4 Build Refreshing Environments Rich with

Creativity
53 Work style reform
55 Build Refreshing Environments Rich with Creativity
57 Human Resource Development Rich with Creativity
59 Corporate Governance
61 Compliance
62 Human rights

25

63

Sustainability Promotion Activities at Shinryo Group Companies

65

Social Engagement

SHINRYO CORPORATION©H.N.F.

Sustainability Promotion Management

Sustainability Promotion Management
Toward the development of a sustainable society
Shinryo Corporation started CSR activities by establishing the
CSR Promotion Division in 2014. The CSR Promotion Division
was reformed into the Sustainability Promotion Division to
expand these activities in April 2019. In October 2019, we
integrated activity promotion operations with the Corporate
Strategy & Planning Division to strengthen strategic activities
in accordance with management policies based on theincorporation of the Sustainable Development Goals (SDGs)

into management as well as the growing importance of factors
such as stakeholder communication.
In 2020, we determined priority SDG subjects (materiality) toengage in through our business activities to tackle social issues.
In 2021, we formulated Key Performance Indicators (KPI) to
enhance the effectiveness of our work in overcoming thesechallenges ( P29-30). We are aiming to integrate the SDGs andmanagement through promoting more specific activities.

Four Priority Subjects
Priority Sustainable
Development Goals (SDGs)• 	Priority Subject 1
Contribute to a decarbonized society• 	Priority Subject 2
Contribute to a resilient society• 	Priority Subject 3
Realize safe and highly efficient work processes• 	Priority Subject 4
Build refreshing environments rich withcreativity

Creating a Freshening World and Contributing
to the Development of a Sustainable Society

Provision of New Value
Solutions to Social Issues Through BusinessMedium to Long Term Management Plan/
Single Year Business Plan

Sustainability Promotion Foundation

Brand
PromiseCode of Business Conduct
Standards of Conduct

Promises as
Shinryo Corporation

Specific Action

Corporate Governance
Environment

Company Philosophy

ISO 26000 Core Subjects
Community Involvement
and Development
Fair Operating
PracticesFounding Spirit

Management Vision Framework

Consumer Initiatives

Labor practices
Human rights
SDGs

United Nations
Global Compact

Sustainability Promotion System

SHINRYO Report 2024

26

Sustainability Promotion System
Sustainability Promotion Committee Chairperson (Executive Officer in Charge of Sustainability Promotion)
Coordination

Group Companies Executive Chairperson

Corporate Divisions, Branches andAdministrative sections Executive Chairperson

Corporate Strategy and Planning Division
Sustainability Promotion Department

Group Company President

General Managers or Deputy General Managers at
Corporate Divisions, Branches, Administrative sections

Group Companies Executives

Corporate Divisions, Branches andAdministrative sections Executives• Creation andnotification of Basic
Plan• PDCA (review ofpriority subjects, KPI,
etc.)

• Creation of action plan proposals• Reporting of activities• Creation of reports• Reporting to
Sustainability
Promotion Committee• Creation of action plan • Reflection of
proposals
stakeholder opinions• Reporting of activities • Other

Sustainability Promotion Committee

Sustainability Promotion Department

We have put in place a Sustainability Promotion Committeewith the executive officer in charge of Sustainability Promotion
as the chairperson to check the status of activities anddetermine activity policies in order to reflect the feedback we
receive from all of our stakeholders and promote better
sustainability promotion activities.

The Sustainability Promotion Department communicates
activity policies defined by the Sustainability Promotion
Committee to Shinryo Corporation and Shinryo Group
executives to further sustainability activities in coordination
with each division. The department publishes the SHINRYO
Report by bundling annual activity information for feedback
from all of our stakeholders to reflect and improve efforts
when drafting activity plans.

Priority Subjects (Materiality)
Shinryo Corporation decided upon four SDG priority subjects in
2020. There are six SDG targets of particular importance: 7 .
Affordable and Clean Energy, 8 . Decent Work and Economic
Growth, 9 . Industry, Innovation and Infrastructure, 11 .
Sustainable Cities and Communities, 13 . Climate Action, and 16 .
Peace, Justice and Strong Institutions. These priority issues not
only fulfill the important social responsibilities for Shinryo
Corporation to realize a decarbonized and resilient society but
also include goals to better construction sites and provide
refreshing environments unique to Shinryo Corporation.
In the future, we will contribute to the realization of asustainable society by linking the SDGs and management while
reviewing these priority subjects from a medium-term
perspective based on management plans and social demands.
Sustainable Development
Goals
ISO 26000 Core Subjects
Medium-termManagement Plan

Decision Making Process
Shinryo Corporation has furthered its scrutiny into the social
issues requiring attention for the sustainable development ofsociety since 2017 through its businesses, incorporating theconcepts of ISO 26000 and the Sustainable Development
Goals (SDGs) mainly through the medium-term management
plan and sort out subjects that we should address.
Furthermore, we analyzed the validity of the issues based on
the opinions of the management and external experts anddetermined the priority subjects in 2020.

Organize subjects

Analyze validity

Decision on Priority
Subjects

Organize subjects basedon these factors

Conduct hearing withthe management andexternal experts

Top management
approved these priority
subjects

Continuous revision
Conduct revision according to changes in internaland external environment

27

SHINRYO CORPORATION

Sustainability Promotion Management

Four Priority Subjects
Relevant SDGs

Priority Subject 1

Contribute to a
decarbonized society

Contribute to a resilient
society

Relevant SDGs

Priority Subject 3

RESILIENNFRASTR
TI

TURE
UC
Relevant SDGs

Priority Subject 4

Build refreshingenvironments rich withcreativity

Realize safe and highly
efficient work processes

The construction industry in Japan faces the major
challenges of reforming long work hours andbuilding flexible work environments.
Shinryo Corporation will build workplaces where
diverse human resources are motivated and each canreach their full potential with the goal of realizing
refreshing, highly productive company rich withcreativity.
CTIVE C
TA

ATIVE
RE

OCESS
PR

More efficient operations and higher productivity are
essential issues when considering the labor shortagein the Japanese construction industry. Internationally,
human rights of workers and labor management
have also become issues.
Shinryo Corporation will establish safe and highly
efficient work processes with the goal of realizing
safe work-friendly environments and efficientconstruction site
BETTER
operations.
ND

EARNE
S

DECA
R

With escalating risks of natural disasters, theconstruction of strong infrastructure is essential toensure sustainable corporate activities as well as
safe and secure life in society.
Shinryo Corporation helps build safe, long-lastingsocial infrastructure by providing high-efficiency,
high-quality systems and proposing optimal
maintenance and renewal plans.

TY
CIE
O

Achieving the goals of the Paris Agreement andrealizing a decarbonized society are pressing issues as
the impact of global warming becomes more drastic.
As an environmental engineering company,
Shinryo Corporation will strive to reduce greenhousegas emissions and take other such measures in its
business activities from design, installation andmaintenance to research and development as a way
to help realize a
NIZED S
decarbonizedBO
society.

SAFETY A

Relevant SDGs

Priority Subject 2

Participating Initiatives and External Evaluation
Participating Initiatives• United Nations Global Compact (September 2014)• Task Force on Climate Related Financial Disclosures (November2023)• Climate Change Initiative (February 2021)• Keidanren Declaration on Challenge Zero (June 2020)• Keidanren Initiative for Biodiversity Conservation (June 2020)• Declaration of Partnership Building (May 2023)

External Evaluations• 2023 Certified Health & Productivity Management Outstanding
Organization (Large Enterprise category)• Two-star “Eruboshi” certification of the Minister of Health,Labour and Welfare• Nikkei SDGs Management Survey 2023 (3.5-star)• Nikkei Smart Work Management Survey 2023 (Three-star)
Main Commendations• American Society of Heating, Refrigerating and Air-Conditioning
Engineers (ASHRAE) “2023 ASHRAE Technology Awards”, First
Place Winner in the Commercial Buildings (New) Category-Shinryo Shinjo Building-

SHINRYO Report 2024

28

Initiatives to Address Priority SDG Subjects
Shinryo Corporation formulated key performance indicators (KPI) in 2021 and put its full efforts behind them in 2022 to solve thepriority issues (materiality) determined in 2020. We have set these targets focusing on the activities done in the past to propel thoseinitiatives forward.
We will ingrain these activities through the employees with an understanding that Shinryo Corporation’s ongoing efforts will

Priority Subjects(Materiality)

Priority Subject 1

Contribute to a
decarbonizedsociety

PolicyReduce greenhouse gas
emissions from businessactivities

Priority Subject 4

Build refreshingenvironmentsrich withcreativity

29

SHINRYO CORPORATION• Reduce Scope 1 direct greenhouse gas
emissions• Reduce Scope 2 indirect emissions
associated with energy sources

Reduction rate of Scope 1 and 2
emissions

Promote designs and proposals to reducegreenhouse gas emissions from Scope 3
Category 11 emissions (use of soldproducts)

Implementation rate of design
proposals to reduce greenhouse gas
emissions during system operations

Strive to employ the latest
energy-saving technologies—

Contribute to building resilientsocial infrastructure• Provide resilient, efficient, and highquality equipment and systems• Recognize technology through aninternal commendation program(President’s Awards)—

Improve productivity on
construction sites

Streamline construction sites andpromote a digital transformation—

Provide high quality equipment
and systems

Improve quality and prevent technicalissues through construction carried out
according to a quality manualConstruction cycle implementation rate

Manage safe and work-friendly
constructions sites

Prevent human error by strictly following
operational procedures that incorporaterisk management

Frequency rate

Improve fair evaluations ofengineers and construction
quality

Promote the expansion of theconstruction career up system

Construction career improvement
system registration rate of Safety and
Health Council members

Achieve the ideal work style for
the Shinryo Corporation• Work-friendly environment
with a refreshing and open
corporate climate• Pride, satisfaction, a sense ofaccomplishment, and growth• A fulfilling work-life balance• A work style driving maximum
results in a limited amount oftime• Fully execute the medium- to long-termplans and achieve the three-year vision• Advocate the work style reforms
promoted in Priority Subject 4 as one
initiative- Refreshing Work Style Project- Challenge 45

Comprehensive Compliance

Implement comprehensive complianceeducation

Priority Subject 3

Realize safeand highly
efficient work
processes

Key Performance

Broadly promote energy-saving
technology throughout the society bysoliciting entries for external energysaving commendations and other suchinitiatives

Priority Subject 2

Contribute to a
resilient society

Action Plan

Employee satisfaction

Rate of annual paid leave taken by
employees

Participation rate in compliance trainingSustainability Promotion Management

lead to solving SDG issues. In doing so, we are actively creating opportunities to deepen employee understanding of the SDGs,
such as e-learning addressing SDG themes and cross-organizational expansion of activity results through committee members
executing sustainability initiatives.

Activity Results
Indicators (KPI)

FY2021• Base year for greenhouse gas reductions:2009• Greenhouse gas emissions- 50% reduction by 2030
- Net zero by 2050

100% implementation rate

FY2022
Activity Results

FY2023

37%

30%

40%

*FY 2020 Results*FY 2021 Results*FY 2022 Results

97%

100%

100%

Referencepage

11-12,
31, 34

34—

Award-winning technology published in the SHINRYO Report—

Main initiatives and award-winning technology publishedin the SHINRYO Report

39–46

—

Main initiatives published in the SHINRYO Report

9-10, 35,
49-50

100%

47–48

Frequency rate of 0.40 or less

Registration rate of 80% or more
4.0 or higher*Index based on internal research (Evaluation on ascale from 0 to 5)

—

100%

35-36

0.14

0.28

0.40

*FY 2020 Results*FY 2021 Results*FY 2022 Results

72%

79%

82%

51

—

3.2

3.3

55

85%

87%

92%

Year-on-Year Increase(21 points increased
compared to previous
fiscal year)(2 points increased
compared to previous
fiscal year)(5 points increased
compared to previous
fiscal year)

100% participation rate

—

93%

100%

Strategy 3
Strengthen
Business
Development
Capabilities
Prioritizing
Green & Digital
Domains

Strategy 2
Expand Core
Business
Strategies

Strategy 4 DX promotion

100% implementation rate

Medium-termManagement Plan
(15th Three Year
Management Plan)

51

Strategy 1
Improve
On-SiteReforms andEngagement

54

62

SHINRYO Report 2024

30

NIZED S
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Initiatives to Address Priority Subjects

Relevant SDGs

Contribute to a DecarbonizedSociety

Achieving the goals of the Paris Agreement and realizing a decarbonized society are pressing issues as the effects
of global warming grow.
Shinryo Corporation will strive to reduce greenhouse gas emissions and other such measures in its businessactivities from design, installation and maintenance to research and development as a way to help realize adecarbonized society as an environmental engineering company.

Adaption to Climate Change
Japan announced its commitment to carbon neutrality in
October 2020 calling for net-zero greenhouse gas emissions by
2050. In April 2021, the government also announced its target
to reduce greenhouse gas emissions 46％ by fiscal 2030
compared to 2013 levels.
The realization of decarbonized society is an importantobstacle to overcome to enable sustainable development ofsociety. Shinryo Corporation promotes the six items below toensure effective initiatives solutions to realize target.

• Promote an Environmental Management System(EMS)• Identify and mitigate greenhouse gas emissions• Promote labor savings as well as BIM and a digitaltransformation on construction sites• Leverage technologies that use renewable energy• Accelerate research and development ofdecarbonization technologies• Implementation of decarbonization technologies in ourfacilities

As KPI of the SDG priority subjects, we aim to reduce Scope
1 and 2 greenhouse gas emissions by 50% by 2030 as part ofour efforts to realize carbon neutrality by 2050. Our efforts in
Scope 3 emissions have set a 100% implementation rate ofdesign proposals for greenhouse gas emission reductions
during system operations as a KPI and are striving to propose
better technologies to customers.
In November 2023, we have declared our support for therecommendations of the Task Force on Climate Related
Financial Disclosures (TCFD). We will analyze risks andopportunities related to climate change in our businessactivities and implement measures for them.

KPI

Greenhouse Gas Emissions Scope 1 and 2(Compared to 2009)50
Net Zero• 2030% Reduction• 2050FY 2022 Results 40%
KPI

Outline of KPI for Priority SDG Subjects (Detailed List on

P34

P29-30)Road Map to 2050
2050 Net Zero Greenhouse Gas Emissions
Leverage Technologies That Use
Renewable Energy
Labor Savings on Construction Sites 2030
Promotion of BIM and a Digital
Net Zero Greenhouse Gas Emissions from Research
Transformation
and Development Activities
Implementation of Decarbonization
Technologies in our Facilities

Construction of New Main
Building of Innovation Hub

Acceleration of Research and Development After FY 2017
Restructuring of Researchof Decarbonization Technologies
and Development Center
Identification and Mitigation ofGreenhouse Gas Emissions
2010-2019

Work Style Reform

Base year: FY2009

SHINRYO CORPORATION

2030(Current Innovation Hub)

2016-2024

Renovations to Save Energy at Old
Headquarters Building

31

2040

FY 2023

2010

2020
Promotion of Environmental
Management Systems (EMS)

Propose energy savings to customers, improve
on-site productivity, and promote the 3Rs

Initiatives to Address Priority Subjects

Environmental Management System (EMS)
Shinryo Corporation has been using an Environmental
Management System (EMS) for more than two decades sinceacquiring the ISO 14001 certification (MSA) from theManagement System Assessment Center in 2001.
Shinryo Corporation will bolster its EMS initiatives tocontribute to the realization of a decarbonized society.

Basic Philosophy

As a company connected to the environment, Shinryo Corporation has been practicing environmental preservation through building
equipment based on our mission to Create a Freshening World.
We actively work to reduce our environmental burden and conserve the global environment in the future.

Environmental Policy

Shinryo Corporation recognizes its social responsibility in realizing a sustainable society.
In doing so, Shinryo Corporation will acknowledge the needs and expectations of its stakeholders and conduct the following to balancebusiness development and environmental conservation.
1. We shall control greenhouse gas emissions in business activities to realize a decarbonized society.
2. We shall promote the 3Rs* of construction byproducts to realize a recycle-oriented society.
3. We shall put in place and utilizes proper business processes to comply with all laws, regulations, and requirements.
Each one of us will operate under an Environmental Management System and commit to make a contribution to ensure these initiatives
are effective.
We will raise awareness about this policy with not only our employees but everyone involved in our businesses.
*3Rs: Reduce, Reuse, and Recycle

Environmental Promotion System

ISO 14001-certified Divisions, Branch Offices, andAdministrative Sections

Executive in Charge ofEnvironmental Activities
Environmental
Management Supervisor

Company-wide

Promotion Committee
Secretariat of EMS Office

Corporate
Divisions, Branches
and Administrative
Sections

General managers, general managers of branches,
administrative section representatives, Manager
Supervising Environmental Management and EMS
Promotion Committee• Tokyo Metropolitan Area Division• Yokohama Branch• Urban Environment Division• Hokuriku Branch• Air Conditioning Equipment Division• Nagoya Branch• Nuclear Power Plant Division• Osaka Branch• Electric & Instrument Division• Chugoku Branch• Hokkaido Branch• Kyushu Branch• Tohoku Branch• Innovation Hub• Marunouchi Branch• Administrative Sections

Participation in TCFD Recommendations
Task Force on Climate Related Financial Disclosures (TCFD)
founded at the request of G20 recommends companies andagencies around the world to understand business risks andopportunities related to climate change and disclose relevant

information. Shinryo Corporation endorsed the TCFD
Recommendations in November 2023. We will contribute to
the realization of a decarbonized society through strategicallytackling climate change.

Response to estimated climate change risks and opportunities
Types of risks and opportunities

Political andregulation risks
Transition
risks

Market risks
Reputation
risks

Physicalrisks

Acute risks
Chronic risks

Opportunities

Details of risks and opportunities

Impact*Initiative description

Carbon tax and purchase of emission rights Medium Promotion of EMS activities (Reduction of Scope 1 - 3 emissions)
Increase in load due to complying withlaws and regulations

Medium Decarbonization of our facilities

DX promotion and promotion of productivity (off-site
production, etc.)
ZEB certification, development and implementation of
Decline in trust from stakeholders andHighdecarbonization technology, and participation in the Japan
reputation
Climate Initiative
BCP, DX promotion, and promotion of productivity (off-site
Increase in natural disasters, typhoons,High
production, etc.)
spread of infectious diseases, etc.
Promotion of EMS activities, DX promotion, improvement of
Decline in labor productivity due to rise in
Mediumproductivity, and automation of construction
average temperature
Development and implementation of decarbonization
Increase of needs and orders for renewableHigh
technology
energy technologies, etc.
Utilization of BIM, DX promotion, improvement of productivity,
Demand for improved productivity inHighand automation of construction
construction sites
ZEB certification, utilization of BIM, and recycling of
Expansion of ZEB and renovation market
High
construction byproducts

Increase in energy and procurement costs

Medium* Evaluating impact on business activities and finances as high, medium, and low. Changes depending on fluctuations in climate, market, and financial environment.

SHINRYO Report 2024

32

Contribute to a Decarbonized Society

Initiatives to Mitigate Greenhouse Gas Emissions from the Supply Chain
Shinryo Corporation has identified hot spots that impact theenvironment by calculating Scope1, 2 and 3 greenhouse gas
emissions. Of the 5,591,000 ton-CO2 emissions in fiscal 2022,
most emissions came from Scope 3 Category 11: Use of Sold
Products.

Shinryo Corporation actively engages in numerous initiatives
to help mitigate greenhouse gas emissions from not only
construction but throughout the entire life cycle ofconstruction equipment such as efforts to propose solutions tocustomers and improve productivity.

Image of the Shinryo Corporation Supply Chain Management
Scope 3

Indirect Emissions from Third-Party Companies Involved with Business Activities

Input into Business Activities

Output from Business Activities

Category 3

Fuel and energy
activities not includedin Scope 1 and Scope 2

Category 1

Purchased goods andservices

Scope 1
Direct GHG
emissions(from our facilities)

Category 4

Upstream transportationand distribution

Scope 2
Indirect Emissions
from the Use of
Electricity and Steam(from our facilities)

Category 2

Capital goods

Category 11

Category 12

Use of soldproducts

Category 6

Business travel

End-of-life
treatment ofsold products

Category 5

Waste generated
in operations

Category 7
EmployeecommutingWaste related to the life cycle of construction equipment provided to customers
Waste related to other business activities

FY2022 Scope 1, 2 and 3 Calculation Results*1 (Construction Sites for Properties with Orders of 30 Million Yen or More)
Calculation scope

Scope 1

Direct emissions from fuel consumption at Shinryo facilities, leakage offluorocarbons, and use of company vehicles*3

867

Scope 2

Indirect emissions from the use of electricity and heat purchased by
Shinryo facilities

1,755

Scope 3

Indirect emissions from third-party companies involved with businessactivities (total of all categories)

5,589,091

1 Purchased goods and services

Emissions from resource harvesting and manufacture of sold goods

293,778

2 Capital goods

Emissions from manufacture and construction of capital assets593

3 Fuel and energy activities not included in
Scope 1 and Scope 2

Emissions from manufacture such as electricity and fuel bought by theheadquarters, branches and offices453

4 Upstream transportation and distribution

Emissions from transportation of goods from seller to construction sites

35,233

5 Waste generated in operations

Emissions from disposal of waste produced on construction sites

3,316

6 Business travel

Emissions from fuel and power consumption of transportation agencies
used for business travel of employees

1,086

7 Employee commuting

Emissions from electricity consumption of transportation agencies used
for employee commuting

523

11 Use of sold products

Emissions from the operation of building equipment after delivery(operation period set to 15 years)

12 End-of-life treatment of sold products

Emissions from duct and piping waste during demolition

Category *2

Category

Total of Scope 1 to 3

Result (ton-CO2)

5,254,001
108
5,591,713*1 Calculations based on the Basic Guidelines on Accounting for Greenhouse Gas Emissions throughout the Supply Chain (Ver2.5) from the Ministry of the Environment and theMinistry of Economy, Trade and Industry*2 Categories 8 through 10 and 13 through 15 are activities not related to our businesses*3 The scope of emissions from the use of corporate vehicles in fiscal 2021 expanded from the headquarters to the entire company

33

SHINRYO CORPORATION

Initiatives to Address Priority Subjects

KPI

indicates SDG priority subjects (seeP29-30 for a detailed list)

Shinryo Corporation aims to reduce greenhouse gas produced
by its business activities by 50% compared to 2009 levels by
2030 and reach net-zero emissions by 2050.
Shinryo Corporation has been putting its strength behindbroader decarbonization and energy savings. We rolled out theenergy saving Eco-project to fully renovate the oldheadquarters building for energy savings in 2011, while
introducing several decarbonization technologies into theShinryo Shinjo Building ( P35) erected in 2020 and the newmain building of the Innovation Hub ( P11-12) erected in 2023
to reduce greenhouse gas emissions at each facility.

Scope 1 and 2 reduction rate

KPI

Scope 1 and 2 Reduction Initiatives(Target: 50% by 2030; Net zero by 2050)

CO2 emissions [tons per year]

5,000
Base Year (Before Old Headquarters Building Renovations)

4,000

40%

2030
Reduction
Target

2,000
1,000

2009

2015

2016

2017

2018

2019

2020

2021

2022

2030

[FY]

25

%

CO2 emission reduction rate(

P49-50)Shinryo Corporation has actively used these technologies toimprove productivity and achieved a 25% reduction in CO2emissions in fiscal 2023.

Recycling rate

90%

Industrial Waste Emissions and Recycling Rate(t)

Industrial waste emissions

25,00020,000

90

88

(%)

Recycling rate

88
18,533

17,352
14,74915,00090

90

16,592

15,913100
80
60

10,000

40

5,000

20

0

KPI

Scope 3 (Category 11) Reduction Initiatives* CFD: Computational Fluid Dynamics

reduction

3,000

Scope 3 (Category 5) Reduction Initiatives

Shinryo Corporation has set a 100% implementation rate ofdesign proposals for customers as a KPI to reduce thegreenhouse gas emissions during the use of building
equipment. These design proposals encourage customers to
upgrade to optimal facility systems with effective energy
savings through airflow and temperature distribution
simulations using industry leading CFD* technology,
consideration for adopting and commissioning highly energy
saving facilities, and systems that greatly reduce energy
consumption.

50%

reduction

Scope 3 (Category 1 and 4) Reduction Initiatives

Shinryo Corporation strives to properly sort and recycle waste
to reduce the greenhouse gas emissions produced by processes
to manage industrial waste.
Of the industrial waste produced on construction sites,
Shinryo Corporation promoted recycling of four main materials(concrete, metal scrap, waste plastics, and waste glass, ceramics
and pottery) and outsourced recycling to industrial waste
disposal and recycling companies with superior processing
technology and achieved 90% recycling rate in fiscal 2023.

%

Changes in Scope 1 and 2 CO2 Emissions (Emissions Since Fiscal 2009)0

We are promoting efficient management of construction
sites by using BIM and taking advantage of ICT based on
appropriate construction plans to reduce greenhouse gas
emissions from the production of materials and equipment
purchased at construction sites and during transportation.

40

2019

2020

2021

2022

2023

Design proposal implementation rate
(Target: 100%)

0

[FY]

100

%

Implementation Rate of Design Proposals
(%)

100

75

95

97

100

100

2020

2021

2022

2023

78

50

25

0

2019

[FY]

SHINRYO Report 2024

34

Contribute to a Decarbonized Society

Scope 3 (Category 11) Reduction Initiatives
Shinryo Corporation promotes greater decarbonization andenergy savings in construction equipment as an environmental
engineering company. Each construction site works to reduce

Scope 3 emissions utilizing various means, such as introducing
decarbonization technologies, higher construction productivity,
and the use of BIM.

Awarded as the First Place Winner by the World’s Largest
International Academic Conference on Air Conditioning

American Society of Heating, Refrigerating and
Air-Conditioning Engineers (ASHRAE) 2023 ASHRAE
Technology Awards, First Place Winner in theCommercial Buildings (New) Category

Shinryo Shinjo Building
Shinryo Shinjo Building which Shinryo Corporation, Mitsubishi
Jisho Design Inc., and Shibaura Institute of Technology havebeen involved in its design, construction, and analysis wasawarded as the First Place Winner in the Commercial Buildings(New) category of the 2023 ASHRAE Technology
Awards hosted by the world’s largest international
academic conference on air conditioning.
Shinryo Shinjo Building has implemented
numerous decarbonization technologies we havedeveloped, including variable-air-volume Coanda
air-conditioning system and dynamic range radiantair conditioning system. We have establishedthese technologies by analyzing theireffectiveness through CFD analyses, real scale
experiments, and field tests.
Primary energy consumption has been reducedby 75% compared to the base value in the firstyear of its operations, achieving high level ofenergy saving. Shinryo Corporation is engaged in
activities to continuously reduce greenhouse gas
Exterior
emissions such as developing and adopting
optimal heat source control systems that is linked

Construction Workflow Innovation
Robot to Draw Construction Blueprints
When devices, piping, ducts, air vents, and other equipment are
installed during installation constructions, location for installingthem are marked on the floors of the site. Vast amount of workand time were required as multiple construction workers
needed to do it by hand while looking at the blueprint.
Robot to draw construction blueprints developed by Shinryo
Corporation can automatically mark various information suchas installation location of devices and equipment indicated on
the blueprint with accuracy. Through this, it has become
possible to construct building without checking the blueprint,
enabling appropriate management of construction andinstructions for operation. This also leads to avoiding work byhand, reducing left-over materials and other wastes, andimproving effectiveness of shipment, which in turn contributes
to the improvement of productivity and reduction ofgreenhouse gas emissions.
These innovations to the construction workflow in theconstruction site were highly praised as initiatives for work
environment design, and received the 21st Environmental andEquipment Design Award (I. M&E Equipment/System Design
Category ) from the Association of Building Engineering andEquipment.

35

SHINRYO CORPORATION

to spreadsheet software even after the building is complete.
We will provide the technology and expertise gained from theShinryo Shinjo Building to contribute to the realization of adecarbonized society.
Effective reductions of primary energy
consumption*[MJ/(m per year)]
2

1,500

1,094
1,000

Energy consumption (Net)
Renewable energy

54%
reduction
503

500

75%
reduction
265

0Standards–35
Design–40
ResultFirst fiscal year
operations began* Excluding electricity not included in the standard primary energy
consumption such as electricity consumption by power outlets.

21st Environmental and Equipment Design Award of the
Association of Building Engineering and Equipment

Robot to draw construction blueprints

Floor after drawing completedStandard Operation Ratio of Piping and Duct Construction
Labor saving by use of robots
Other adjustments 14%

Processing of duct andpiping materials 10%

Hanging work for ducts,
piping, etc. 24%

Confirming work
drawings andfloor marking 14%
Ceiling slab
marking 5%
Anchoring work,
etc. 33%

Initiatives to Address Priority Subjects

Seven and a Half Year Large-scale Renovation While in UseTokyo Metropolitan Government Building No. 1
Tokyo Metropolitan Government Building is a large-size
governmental building where almost 20,000 civil servants
work. A large-size renovation work was conducted as years
have passed since its opening in 1991 and its equipment havereached their replacement periods.
Shinryo Corporation was responsible for the construction of
air conditioning system in the Building No. 1 and contributed tothe installation of highly efficient equipment and air conditioning
system for buildings with large temperature differences. We
realized both the improvement of room
environment and energy saving throughimproving the thermal environment ofrooms and reducing energy used fortransferring water and air. Primary energy
consumptions of the Building No. 1 and 2
have reduced by 63% (estimated value)compared to before the renovation in fiscal
2000 in fiscal 2021, realizing performanceequivalent to ZEB Oriented set by theSociety of Heating, Air-Conditioning andSanitary Engineers of Japan.
In order to conduct construction
without stopping civil service and otheradministrative functions, this seven and aExterior
half year long-term construction was

11th Renovation Award Special Prize of the Society ofHeating, Air-Conditioning and Sanitary Engineers of Japan

conducted under meticulous adjustments and relocating andrenovating two floors at a time.
Tokyo Metropolitan Government Building No. 1 and 2 werehighly praised for the large-scale renovation of a high-risebuilding and contribution to carbon neutrality throughconversion to ZEB, and received the 11th Renovation Award
Special Prize of the Society of Heating, Air-Conditioning andSanitary Engineers of Japan.
Energy Saving Effects in Building No. 1 and No. 2[MJ/(m2 per year)]

2,000

1,679
1,500

1,077

1,060

1,000

37%
reduction

5000Beforerenovations

Designvalue

Afterrenovations

FY 2000

Environmental Equipment Plan in Accordance with
the Local Climate

37th Awards of Promotion & Technological
Promotion of the Society of Heating, AirConditioning and Sanitary Engineers of Japan

Kama City Hall
The new city hall completed in Kama City, Fukuoka Prefecturein March 2020 is a sculptural rectangle building located next to
the Onga River. The Shinryo Corporation was responsible forbuilding the air conditioning, sanitation, and firefighting
systems.
In consideration for the unique local climate of the KamaCity which outdoor temperature fall at night even during thesummer and a natural environment where wind direction tends
to constantly change, we combined passive and active systems
to coexist with the natural environment. We have also
implemented advanced energy saving system. The highly
efficient heat source system we built stores water cooled using

FY 2021the lower outdoor temperature during the night and supplies
cooled water from the thermal storage tank and medium
temperature cooled water from the air-cooled chiller during
the day. Outdoor air cooling, natural ventilation, night-time
purging, perimeter system that can change simple air barrier,
air conditioning system that blow air from floor ducts whichhave reduced energy consumption for transferring. Thoughthese systems, we were able to reduce annual primary annual
energy consumption by approximately 49%* or approximately
61%* compared to other standard city halls of the same size
when limited to air conditioning system.
* Measurement value of BEMS implemented in the new city hall

Heat source systems of the Kama City Hall
Heat dissipation during the day(In conjunction with supplying
medium temperature coolingwater)
DoubleOfficeAir-cooled heatpump
Modular chiller

coil 12°C (medium temperature
cooling water)Air
conditioner
7°C(cooling water)
Outdoor air
conditioning
unit
Heat
Heat
Doubleexchanger exchanger
coil

Air-cooled heatpump
Modular chiller

Storing heat during
the night

Air
conditioner
OfficeOutdoor air
conditioning
unit

4°C
(cooling water)

Heat
Heat
exchanger exchanger

5°C

5°C

Thermal water storage tank

Thermal water storage tank

Exterior

SHINRYO Report 2024

36

Contribute to a Decarbonized Society

Contributions to Recycling-oriented Society/Biodiversity Conservation
There is a need to realize a recycling-oriented society that use
limited resources and energy efficiently as well as
environmental regulations. It is important to ensure efficientuse of resources and preservation of biodiversity to avoid
affecting the natural ecosystem through excessive
consumption of resource and generation of waste. Shinryo

Corporation will contribute to the realization of a resource
recycling society and preservation of biodiversity throughreducing and recycling construction byproducts, use ofrenewable energy, corporate activities that are eco-friendly, andother measures.

Responding to the Plastic Resource Circulation Act
Shinryo Corporation is working to separate, collect, and recycle
waste plastics that are industrial waste as well as reducing
plastic packaging in respond to the Plastic Resource Circulation
Act.

Status of Waste Plastic Generation
Amount of waste plastics generated in fiscal 2023 increased
31% from the previous year but recycling rate of waste plastic
from construction sites in Tokyo, which we aggregate andreport in compliance with the Tokyo Metropolitan Government
Ordinance on Wastes of Tokyo Prefecture , was 93%, indicatingthat our recycling effort is making progress. We are planning toaggregate recycling rate in the entire company from the next
fiscal year to more appropriately respond to the laws andregulations through promoting the reduction and recycling ofwaste.

Development of Piping Identification Sheets
We co-developed piping identification sheet using a newmaterial LIMEX with a manufacturer. Main material used for
LIMEX is limestone, which enables the reduction of greenhousegas emissions by approximately 60% compared to conventional
plastic products. LIMEX is an environmentally-friendly productthat can contribute to the realization of a recycling society as it
can be recycled as materials after use.

Waste Plastics Generation* Trend
FY 2020

FY 2021

FY 2022

FY 2023

1,783t

1,096t920t

1,213tLIMEX piping identification sheets

Image of piping identification sheets* Aggregated only outsourced constructions

Use of an Electronic Subcontracting System and Electronic Manifests
The electronic subcontracting system is able to rapidly
conclude waste disposal outsourcing contracts with industrial
waste processors system also links to the electronic manifest
system to reduce the risk of contract breaches and other legal
and regulatory risks.
Since April 2021, Shinryo Corporation has used the electronic
subcontracting system to conclude outsourcing contracts witha total of 493 primary contractors in Japan (as of September
30, 2023). In fiscal 2023, 99% of all issued manifests used theelectronic manifest system to properly process industrial waste.

37

SHINRYO CORPORATION

Usage Ratio Between Electronic and Paper Manifests
Paper Manifest

Electronic Manifest

99

1%

%

Manifest
Operational
Status(FY 2023)

Initiatives to Address Priority Subjects

Rated as Excellent Company (S Class) Under the Energy Saving Act for Four Consecutively Years
Shinryo Corporation was rated as an excellent company (SClass) for four consecutive years from 2019 to 2022 by the Act
on Rationalizing Energy Use (Energy Saving Act).
Energy Saving Act was renamed as the Act on Rationalizing
Energy Use and Shifting to Non-fossil Energy in April 2023 andrevised to promote planned use of renewable and non-fossil
energy and a shift to non-fossil fuels. Shinryo Corporation will
respond appropriately to the revised Energy Saving Act
through implementing planned use of renewable energy anddemand-response (DR)* system.
* Changing demand pattern of electricity by consumers controlling the amount ofelectric use.

Overview of the Business Operator Classification Evaluation
System (SABC Evaluation System)*
S Class Excellent
Operators(1) Operators achieved challenging targets;(2) or achieved benchmark targets

A Class

Operators had a high standard of energy
savings above the B Class, but did not achieve
S Class standards

B Class(1) Operators did not achieve challenging
targets and unit energy consumption rosecompared to previous years for the last
two years consecutively;(2) or the average unit consumption increased
by 5％ over the last five fiscal years

C Class

Operators with particularly poor compliancewith discretion standards among B Class
operators*Created based on Agency for Natural Resources and Energy materials

Participation in the Japan Climate Initiative
The Shinryo Corporation participates in the Japan Climate
Initiative (JCI). JCI was launched as a network consisting of
numerous companies, municipalities, and non-governmentorganizations that actively engage in climate change initiatives.
In May 2023, we endorsed the JCI’s message of overcoming

two crises with renewable energy and carbon pricing
announced prior to the G7 Hiroshima Summit, announcing ourstance toward contributing to the early realization of
decarbonization.

Initiatives Toward Conservation of Biodiversity
Shinryo Corporation strives to take in biodiversity andpreservation of the natural environment in to consideration inits business and social contribution activities. We are actively
fulfilling our responsibility as a member of the society throughthe development of environmentally-friendly technologies andimplementing them in customers’ and our facilities;

participating in Keidanren Initiative for Biodiversity
Conservation and Japan Business and Biodiversity Partnership,
which promote biodiversity conservation initiatives; andcontinuously donating to the Keidanren Nature Conservation
Fund.

Ecological Conservation Activities Enlightenment Program “The Environmental Renaissance Activities”
Shinryo Corporation has been conducting the Environmental
Renaissance Activities enlightenment program since 2015 forthe purpose of heightening employee awareness about
ecological conservation.
This program supplies book coupons to employees engagedin activities related to ecological conservation andenvironmental education to subsidize the purchase ofenvironmental books. This also deepens understanding of
ecological conservation and heightens motivation towardongoing activities. Moreover, these activities have become amatching gift system to donate the equivalent book coupon
costs that are supplied over one year to international
environment NGOs working to preserve biodiversity and otherenvironmental conservation efforts.

Framework of Environmental Renaissance Activities
ShinryoCorporation

Activities to Conserve
the Ecosystem throughNon-profit Organizations

 articipate❶Pin employee
conservation
activities

 ubmission of activity❷S
reports from employees

Sustainability
Promotion
Committee

❹ Donate

International
Environment
NGO(Matchdonations ofbook coupons
supplied to
employees.)❸ Supply (book coupons)

SHINRYO Report 2024

38

NFRASTR
TI

TURE
UC

RESILIEN

Initiatives to Address Priority Subjects

Relevant SDGs

Contribute to a Resilient
Society

With escalating risks of natural disasters, the construction of strong infrastructure is essential to ensure sustainablecorporate activities as well as safe and secure life in society. Shinryo Corporation helps build safe, long-lasting social
infrastructure by providing high-efficiency, high-quality systems and proposing optimal maintenance and renewal
plans.

Supporting the Revitalization of Local Community
Completed: January 2023
Total floor area: 120,432m2
Facility application: Baseball stadium, hotel, etc.

ES CON FIELD HOKKAIDO

Hokkaido©H.N.F.

Inside the stadium (retractable roof when opened)©H.N.F.

Stadium exterior

39

SHINRYO CORPORATION

Cogeneration systems

Initiatives to Address Priority Subjects

About the ES CON FIELD HOKKAIDO
ES CON FIELD HOKKAIDO is a new baseball stadium for the
Hokkaido Nipponham Fighters built in Kitahiroshima City,
Hokkaido. An Area named Hokkaido Ballpark F VILLAGE covers
approximately 32 hectares, housing the stadium, commercial
facilities, agriculture learning facility, gramping facility,
residences, certified childcare facility, and other facilities. The
area is a bedrock for community building centered on thestadium. Going forward, vitalization of the local community is
expected with the construction of elderly care facilities andhotels as well as the opening of a JR station.
The stadium has a capacity of about 35,000 people (approx.
30,000 seats) with Japan’s first stadium having both aretractable roof and a natural turf field. The stadium was
excavated to below the ground level and designed to make thefour-floor viewing stands to feel closer to the field. Mid-sectionof the building is designed with terraces to blend with thesurrounding community. The stadium houses restaurants, kid’sarea, museum, Asia’s first hotel with rooms that the visitors candirectly watch the game during their stay, and other facilities toallow visitors to enjoy their stay throughout the year not only
through watching a game.
The stadium also acts as a regional disaster response base of
Kitahiroshima City and is equipped with multiple power sourcesin the form of emergency generator and cogeneration system(CGS), large-size water receiving tank, emergency supply stocks,
and other preparations to enable temporary evacuation of
approximately 10,000 people.

Our Work

was equipped with spot air conditioners, infra-red heaters, andhot water panel heaters for localized air conditioning, enabling
visitors to be comfortable even outside the stands. In
consideration for the players to play in a comfortableenvironment, we installed electric heaters under the benches
to keep the dugouts warm during the winter and also painted
heat insulation materials gray to avoid air conditioning ducts
reflecting light and bothering the players during the game.
The heat source system consists from heat recovery typechilled and hot water generators, vacuum type hot water
heaters, air-cooled heat pump chillers, and other equipment.
Energy saving is made possible by selecting optimum operation
mode from among eight patterns using different equipment
depending on the season and conditions. The stadium isequipped with gas cogeneration and emergency power
generators to continue operations even during power outages.
BIM was used in the construction to estimate how the ductsin the concourse looked and where the rain would fall to
conduct highly precise construction as well as directly sending
the BIM data to the processing machine of the duct
manufacturer to make the process more efficient.

Air Conditioning and Mechanical
Ventilation, Heat Source Systems

Shinryo Corporation was responsible for the air conditioning
and mechanical ventilation system and heat source system of
the stadium with the aim of creating a comfortableenvironment for all users.
For air conditioning and ventilation when the retractable roof
is closed, 24 air conditioners with a maximum air volume of
90,000m3/h and 17 spot air conditioners were installed. We
adjusted the angels of the air conditioner outlets vertically andhorizontally by units of one degree as well as analyzed the time
it takes for the environment to become comfortable after the
air conditioning starts based on simulation results of air flow
and temperature distribution so that the air conditioner covers
all seats. Furthermore, the 360 degree circulating concourse

VOICE

Tomohiro Noro
(On-site Project Manager)

Manager, Engineering Department,
Hokkaido Branch

Air conditioning starts

Pride and Fulfillment of Constructing “A Ballpark the World
has Never Seen Before”
As highlighted by the slogan “a ballpark the world has never seen before,” this was acompletely new large stadium with retractable roof for not only us but for the design
company and construction company. Every problem had to be tackled one by one
without any foreknowledge. The construction term of the equipment was limited andconstruction was carried out by up to 23 people from various departments of thecompany. With everyone working together in coordination across their assigned area, wewere able to complete the construction on schedule. Going forward, the stadium will
attract even more visitors as the neighboring facilities complete and become a symbolof the community. Taking part in building such a stadium is something I am proud of.

SHINRYO Report 2024

40

Contribute to a Resilient Society

Supporting Singapore’s Transportation Infrastructure

Singapore Mass Rapid Transit (MRT)Thomson-East Coast Line Stage 3 (TEL3)

Completed: November 2022
General description:
The total length of 13.2 km with 11 stations
Facilities usage:
Subway train stations and tunnels
Singapore

Gardens by the Bay Station exterior

Entrance to Gardens by the Bay Station

41

SHINRYO CORPORATION

Tunnel ventilation system

Initiatives to Address Priority Subjects

About Singapore TEL3
Singapore aims to develop a convenient, safe and universallyuser-friendly land transport system. In its Land Transport
Master Plan 2040 (LTMP 2040), Singapore had held up the planof developing a transportation infrastructure aiming to enablepassengers to reach their neighborhood centre within 20
minutes and the city within 45 minutes. In this plan, thegovernment has, in particular, worked on the establishment of
new subway lines and stations as well as the extension ofexisting lines to provide easy access to as many places as
possible; presently, a total of six lines has been opened.
The Thomson-East Coast Line runs from Woodlands North
Station in northern Singapore to Sungei Bedok Station in theeastern area, serving 32 stations over a total of 43 km. The
Thomson-East Coast Line Stage 3 (TEL3) passes throughGardens by the Bay Station with an extensive botanical garden
adjacent to Marina Bay Sands, via Orchard Station in the
shopping and entertainment district, serving a total of 11
stations over a total length of 13.2 km.

Singapore MRT Network Map* Shinryo Corporation has installed Air Conditioning and Mechanical Ventilation
Systems at approximately 70% of MRT stations.

Our Work

Air-Conditioning and Mechanical Ventilation
Systems for Train Stations/Tunnels

After taking charge of the construction of air-conditioning
systems for train stations of the Hong Kong subway line in
1979, Shinryo Corporation has built a track record in the field of

VOICE

Hironao Koshikawa(On-site Project Manager)

Senior Chief, Asia Business Division,
Shinryo Thailand

subway construction in various countries in Southeast Asia, suchas Singapore, Thailand and Indonesia. Particularly in Singapore,
after taking charge of the construction of air-conditioning
systems for train stations and ventilation systems for tunnels
on the North–South Line and the East-West Line, the firstsubway lines in the country, in 1987, Shinryo Corporation has
continued to be engaged in projects, providing Shinryo
Corporation’s technologies for about 70% of all subway lines.
With station building air-conditioning, in order to prevent theexhaust heat from the driving devices of trains from entering
the platform, which is an air-conditioned area, we install screen
doors to separate the platform and the tracks, which makes it
possible to reduce the capacity (burden) of air-conditioners andrefrigerators, leading to energy conservation. Also, naturalventilation is normally used for ventilation in tunnels between
train stations; however, in preparation for unpredictable events
such as a temperature increase in a railway resulting from asudden stop of a train in a tunnel, we take measures topromote air circulation, such as by operating large ventilationfans with a diameter of about two meters and a capacity of
about 270,000 CMH installed at both ends of the train stationin combination with pneumatic dampers for rapid ventilation
as well as by activating booster fans installed at theintersections of the inbound and outbound lines. In addition,with safety in mind, these ventilation fans are provided with afunction that can change the wind direction in either direction
as a measure for smoke elimination in case of a fire in a tunnel.
In the construction of a subway line, process control must be
carried out in a rigorous manner. According to underground
depth, the presence or absence of a transfer line, and the typeof platform, the construction method for a train station varies.
However, since a subway line cannot be opened until all thetrain stations and the tunnels have been completed, it isimportant to integrally control the progress of construction
work for all stations. Therefore, in addition to bringing inmaterials and equipment and securing workers in a planned
manner, we engaged in timely exchange of information among
persons in charge of each station using an app, and cooperated
with many companies such as engineering companies,
construction companies and facility management companies,
with the aim of advancing construction work effectively andaccurately.

Project Completed by Valuing Communication
TEL3 was a large-scale project involving the 11 newly established stations andimprovement of four stations connected to existing lines, and the work was difficult,requiring 11 site leaders and integrated management of 15 construction sites.
To manage all of the station building and tunnel construction works with the same
quality and processes, we made sure to maintain close contact by arranging online
meetings with each construction site every morning. With construction work suspended
during the COVID-19 pandemic, this became a long-term project lasting seven and ahalf years, but the approximately 60 site staff worked unitedly to complete the project
without any problems. Every time I use the newly launched subway, I feel a great senseof satisfaction.

SHINRYO Report 2024

42

Contribute to a Resilient Society

Supporting Cutting-edge Industrial Application and Academic Research

3GeV Synchrotron Radiation Facility“NanoTerasu”

Completed: March 2023
Total floor area: 25,184m2
Facility application: research facility
Miyagi Prefecture

Full View

About the 3GeV Synchrotron Radiation Facility“NanoTerasu”
3GeV synchrotron radiation facility “NanoTerasu” is a facility
that can visualize the structure and function of materials using
an artificial synchrotron radiation*1 that is a billion times
brighter than the sunlight using electrons accelerated to the
speed of light. It is also referred to as a giant microscope forbeing able to visualize molecules and atoms at a nano level(one billionth). The facility consists of a storage ring building
which houses a circular accelerator (storage ring) with aperimeter of 349m and linac building which houses an 110m
long linear accelerator. Operations are scheduled to start fromfiscal 2024.
In the recent years, use of synchrotron radiation facilities
with soft X-ray*2 band is increasing. With a facility with world’s
leading performance, this facility is expected to be used forindustrial, medical, foods and other wide variety of industrial
fields and increase the development and innovations oftechnologies in the academic field.
*1 Synchrotron radiation: X-ray that is radiated to the direction the electron beamthat is accelerated to nearly the speed of light is bent by magnets. It has
advantageous properties such as being bright, highly directive, and flexible
pollination characteristics.
*2 Soft X-ray: X-rays that have relatively long wave length of 0.1 to 10 nano meters,
which are more absorbable by materials.

43

SHINRYO CORPORATION

Our Work

Air Conditioning, Sanitation, Air Compression,and Cooling Water Systems

Shinryo Corporation was in charge of building the air
conditioning, sanitation, compressed air, and cooling water
systems.
For experiments conducted in the nano level, measurements
can be affected by minute vibrations and thermal expansion ofdevices due to temperature change. As such, we not only
installed sound dampening devices to exhaust ducts but also
to ventilation ducts of air conditioners to reduce air vibration.
We also installed exhausts in locations and directions thatwould not affect the accelerator. In addition, the cooling watersupplied to the testing equipment are controlled to mitigate
the temperature change to ±0.2°C to prevent minutedeformation of the accelerator due to temperature change.
Furthermore, in consideration for energy saving, we
implemented displacement air conditioning system to reduce
air volume to lower changes in room temperature.
During construction, we unitized equipment, piping, andducts to install them at the same time as the steel frame
construction to improve efficiency and safety. For the storage
ring building, piping was manufactured to fit the circularbuilding, and as such, tool to cut piping at arbitrary angle wasused to ensure quality.

Initiatives to Address Priority Subjects

Supporting Safety and Quality of Food Plants
Completed: November 2022
Total floor area: 32,850m2
Facility application: Food plant

FUJI FOODS Ibaraki Plant

Ibaraki Prefecture

Full View
Heat Source, Air Conditioning and Mechanical
Ventilation, Freezing and Refrigerating Systems

About the FUJI FOODS Ibaraki Plant

Our Work

FUJI FOODS Ibaraki Plant is a food production plant that
produces deserts and frozen foods for the Seven-Eleven stores.
The plant was built in Yachiyo, Ibaraki Prefecture as the 14th
plant of FUJI FOODS.
The plant has various facilities that integrate preparation of
raw materials to cooking, packaging, and shipping to offer
customers both deliciousness and high quality. The plant also
houses freezing and refrigeration room for ingredients, preprocessing room, heat cooking room, cooling and refrigeration
room for processed products after cooking, packaging room for
packaging foods, and frozen storage. Sanitation, quality, andtemperature are thoroughly managed at all stages of the
production process as well as measures toward labor saving
and automation are taken.

Shinryo Corporation was responsible for the construction of
the heat source equipment for the air conditioning system andair conditioning and mechanical ventilation system as well as
freezing and refrigerating system in the production area.
As the facility is a food plant, measures were taken to prevent
insects and foreign materials from entering the production line.
Such measures include installing highly airtight equipment andinsect repellent filters and treating ducts, pipes, and other parts
that directly contact the outside. Furthermore, as the cooking
room and production equipment generate large amount ofsteam, we strived to create a sanitary and comfortable working
environment by taking measures for condensation and waterleaks through ducts that are not segmented and by circulating
air inside the ceiling with air blowers.
Maintaining appropriate temperature of stored products isimportant in the stable supply of high quality products. As
frozen storage of the facility is large, we supply cooled air
evenly throughout the storage to avoid uneven temperature
within the storage. We realized accurate environmental
temperature by constructing based on prior analysis oftemperature dispersion in the storage using the CFD
technology.

SHINRYO Report 2024

44

Contribute to a Resilient Society

Supporting Local Culture and Arts

Okayama Performing Arts Theatre
Harenowa

Completed: March 2023
Total floor area: 19,663.13m2
Facility application: Theater
Okayama Prefecture

Exterior

About the Okayama Performing Arts Theatre
Harenowa
Okayama Performing Arts Theatre Harenowa was built as a
new culture and arts facility for Okayama City that combines
the Okayama Civic Hall and Civic Cultural Hall . The hall is an
iconic large scale cultural facility in the Chugoku and Shikoku
regions with seven floors above ground and two floors
underground, housing three theaters, art salon, practice room,
and a gallery. The hall supports creative activities of thecitizens and cultural organizations through the creation anddissemination of culture and arts under the concept of “Inspire,
Gather, and Create.”
Harenowa is unique for have large, medium, and small sizedtheaters dedicated for stage play. The theater is capable to hostvarious performances with its stage equipment thatincorporate latest technologies such as the large theater which
can host large productions including ballet and opera, themedium theater which is suited for music performances withits movable sound reflecting boards, and the small theater
which its space can be used flexibly due to its flat floor design.
The theater also acts as a temporary evacuation site during adisaster and has high anti-seismic performance as well as
emergency generators and facility that prevent rain water fromentering during torrential rains.

45

SHINRYO CORPORATION

Our Work

Heat Source and Air
Conditioning Systems

Shinryo Corporation was responsible for the construction of
the heat source and air conditioning systems and offeredoptimum equipment for the theaters, studios, and practicerooms based on their different uses and sizes.
For the air conditioning systems, due to the large andmedium theater having high atrium, we implemented efficient
air conditioning method for the audience seats which exhaust
ducts are installed under the seats. We have also analyzed air
flow and temperature using CFD technology and placed
exhaust and intake ducts to ensure visitors on upper floors toenjoy the performance comfortably. For the heat source
equipment, it contributes to energy saving by storing watercooled using electricity at night in water storage tanks during
the summer and generating cooled water in the cooling tower
for cooling during the winter.
Theaters require high level of quietness. To ensure quietness,sound dampening calculations were conducted before theconstruction and adjustment of the air volume of air
conditioners, installation of and sound dampeners, use of highlysoundproof lead sheets for duct penetration parts, and use ofother measures were decided based on the results tocontribute to the realization of an optimal air conditioning andsound environment.

Initiatives to Address Priority Subjects

Supporting Administrative
Operations with Technology

Nagasaki City Hall
Completed: November 2022
Total floor area: 51,752m2
Facility application: Municipal office
Nagasaki Prefecture

City Council Assembly Hall

Exterior

About the Nagasaki City Hall
The new city hall of the Nagasaki City was built on top of theformer location of the old city council assembly hall, which wasa symbol of post-war recovery, due to the aging of the former
city hall. The hall has 19 floors above ground and one floor
under ground, with lower floors having counters for citizens.
The second floor has counters for child raising related mattersand space for kids. The plaza at the front of the city hall is used
for events and public space for relaxation and the top floor hasa rooftop garden to provide a space that is both convenientand comfortable.
The city hall has acquired ZEB Ready certification as a facility
that is able to reduce primary energy consumption by 50%
compared to the standard value through use of renewableenergy and active use of energy saving technologies inconsideration for the environment.

Our Work

Heat Source and Air
Conditioning Systems

Shinryo Corporation aimed to construct a facility that isenvironmentally-friendly and can be used comfortably by the
citizens and the staff.
For the heat source system, we implemented heat recovery
type chilled and hot water generators that use waste heat fromthe cogeneration system and highly efficient air cooled heatpump chillers. For the air conditioning system, we implemented

radiant air conditioning system that have lower temperature
difference and air flow for rooms in work areas and a systemthat use natural ventilation during transitional seasons such as
the spring and autumn to save energy.
The challenge for the city council assembly hall, which
consists the fifth and sixth floors, was to extend the air
conditioning to the audience seats located at the top section of
the atrium. To solve this issue, we used CFD technology tosimulate the optimum locations for the exhaust ducts as wellas used mixed reality (MR) technology to visualize temperature
dispersion to confirm the status with the customer before theconstruction to realize appropriate environmental temperature.
For construction, we used highly accurate 3D laser
measurement device, a robot to draw construction blueprints,
unitized outdoor air conditioning units and pumps, and otheringenuities toimproveproductivity.

Environmental temperature check with MR technology

SHINRYO Report 2024

46

ND

BETTEROCESSPRSAFETY A

Initiatives to Address Priority Subjects

Relevant SDGs

Realize Safe and Highly
Efficient Work Processes

More efficient operations and higher productivity are essential issues when considering the labor shortage in theJapanese construction industry. Internationally, human rights of workers and labor management have also become
issues. Shinryo Corporation will establish safe and highly efficient work processes with the goal of realizing safe
work-friendly environments and efficient construction site operations.

Quality Management System (QMS)
Quality Policy

Ongoing improvements to work processes
Customer Requirements

Provide quality earning trust from ourcustomers with all our effort.
Shinryo Corporation acquired the certification for the ISO 9001
quality management system at corporate divisions andbranches in Japan and overseas. We practice quality assurance
activities according to the quality manual in systems andservices based on common company-wide quality policy.
We are also striving to offer quality that can be trusted bymaking improvements by understanding customer and social
needs through customer satisfaction surveys.

Plan Deliberate
Quality goal setting
and practical plans

Act Enhancement
Correction ofincompatibilities
Initiatives toward
improvement

Work processenhancement

Do Support/Execute
Education, training
and work cycles

Check Review

ISO 9001-certified Divisions and Branch Offices as well as
Overseas Branches

Customer satisfaction
analysis andmanagement reviews• Tokyo Metropolitan Area
Division• Yokohama Branch•U rban Environment Division•N agoya Branch•N uclear Power Plant Division•O saka Branch•E lectric & Instrument Division•C hugoku Branch•H okkaido Branch•K yushu Branch

ISO 9001 Internal Auditor Training• Tohoku Branch•H ONG KONG Branch•M arunouchi Branch•S INGAPORE Branch

We internally expand latest technology and good practices atconstruction sites through technical presentations at theShinryo Forum to provide even higher quality to customers.
Shinryo Forum Seminar provides explanations on latest trends
in the piping equipment, examples of energy saving proposals
through commissioning, and other matters as seminars.

•H okuriku Branch
Customer Satisfaction

Operational Flow Based on Construction Cycle

Inspection Before
Completion

Quality Patrol

Intermediate
Inspection

Quality Patrol

SHINRYO CORPORATION

Construction Review
Meeting

47

Example of Operational Flow According to a Construction Cycle
Construction Start

Construction sites implement a construction cycle based on
the quality manual. We identify issues related to constructionthat require discussion and solving through holding
construction review meetings at the start of construction,
quality patrols as the construction progresses, intermediate
inspection, and inspection before completion at an appropriate
time. We provide construction quality that meets customer
requirements through thorough implementation of theconstruction cycle which is the foundation for managing
construction.

Initiatives to Address Priority Subjects

KPI

Outline of KPI for Priority SDG Subjects (Detailed List on

P29-30)

Improvement of Construction Quality andPrevention of Technological Trouble
Shinryo Corporation set a 100% construction cycle
implementation rate* as KPI to provide high-quality equipment
systems that can be trusted by customers. We will thoroughly
implement the construction cycle based on the quality
management system (QMS). Implementation rate was 100% infiscal 2023, achieving our target.
Implementation of the construction cycle leads to theimprovement of construction quality of equipment system. As
such, we are improving the quality with taking in law andregulations, technical standards, and maintenance andmanagement of the equipment system into consideration.
Furthermore, accuracy of quality management has improved
through the active use of ICT in confirming the progress ofconstruction.
We are promoting the realization of safe and highly efficient
work processes by checking the construction site from multiple
perspectives which include management of health, safety, andenvironment; improvement of productivity; and work stylereform.
* Cumulative result for construction completed during this fiscal year

KPI

Construction cycle implementation rate
(Target: 100%)

100

%

VOICE
Hideki Nagato
Executive Officer
Deputy General Manager,
Urban Environment Division

Construction status and work environment change daily
at construction sites. As such, clarifying issues inconstruction at an appropriate time according to theprogress of construction is important to make
improvements. We prevent technical troubles fromhappening by conducting internal inspections to ensure
quality bases on the construction cycle planned before
the start of construction. We will also strive for more
efficient and reliable management of construction using
ICT tools for construction management.

Quality Patrol
Quality patrol is an operational process to check that theconstruction is appropriately conducted in compliance with therequirements of the design, laws and regulations, and internal
technical standards, and make necessary improvements.
Person in charge of quality management regularly patrol
construction sites to verify whether construction is conducted
appropriately based on the construction quality plan andblueprint using a checklist. We also check importantmanagement items identified by organizing past examples oftrouble and customer feedbacks. We strive to improve theconstruction quality through identifying issues at an earlystage through quality patrols and make continuous
improvements.

Confirming Construction Status Through Quality Patrols

Quality Management of Specialized Welding Products
Specialized air conditioning systems, piping, and ducts used in
power generation facilities and large-scale plants require moreadvanced management of welding compared to otherbuildings. Shinryo Corporation implements a quality
management system that integrates design, manufacturing,inspection, and delivery at its Takahama Plant (Fukui
Prefecture) to provide products that are high quality and safe
to customers. We also handle welding work which is conductedby numerous technicians with welder qualifications as well as
non-destructive testing such as penetrant testing.
In February 2023, we acquired welding management“Process Certification I” which complies with private productcertification standards for electric facilities. We will continue toprovide technically reliable products to our customers.

Welding work at Takahama Plant

SHINRYO Report 2024

48

Realize Safe and Highly Efficient Work Processes

Initiatives to Improve On-site Construction Productivity
Ordering and Process Management Using BIM
Construction sites use numerous materials and equipment andrequire appropriate management of the time of order anddelivery. Managing progress of construction is also importantin doing construction efficiently.
Shinryo Corporation uses a 3D-CAD software that have highaffinity with BIM to develop a process management systemthat manages materials and equipment and progress of theconstruction with BIM data. We are able to prevent missingorders and duplicate orders as well as gather information for
tracking the progress of construction and organizing data
through the use of this system. Furthermore, we are also able
to make the work more efficient and require less labor bysharing information with parties involved in construction
through BIM data.

OrdersPlanned delivery date confirmed
Not processed
Order received
DeliveredOrder Management with BIM

Improvement of Operational Efficiency Using Cloud-based Facial Recognition System
Our construction sites use facial recognition systems to
manage the entry and exit of engineers and have adopted a
cloud management system that can record working hours.
Attendance record per partner company can be automaticallygenerated with the work record data, ensuring accurate
management of work hours. Body temperature can bemeasured at the same time and can be used as a measureagainst infectious diseases.
This system helps improve the efficiency of on-sitemanagement work thanks to the construction careeradvancement system advocated by the Ministry of Land,
Infrastructure, Transport and Tourism as well as theconstruction industry in addition to our own internal system
built to log daily occupational health and safety on
construction sites.

Facial recognition system

Construction Technology Training Program
Shinryo Corporation is actively developing its human resourcesthat can be in charge of construction sites. We conduct internal
education on construction technology and troubles to improve
the skills of the employees.
We have also prepared training program for dispatch
employees that manage construction to enable them toacquire basic knowledge on construction sites such as quality,
safety, and rules of the site. This training is also held online toenable access from anywhere in Japan and also offered toShinryo Technical Service, Shiroguchi, and Daiei Denki of theShinryo Group. Shinryo Group will work as one to develop
human resources to ensure construction quality and improve
productivity.

49

SHINRYO CORPORATION

Construction technology training

Initiatives to Address Priority Subjects

Challenging Toward New Operational Process with BIM
Participation in BIM Model Project of MLIT
Purpose of construction BIM is to stably supply safe and energy saving buildings
through coordinating BIM throughout the planning, design, construction,
maintenance, and management of buildings in response to the decline inworking population, new work styles, global warming, and other social issues.
The Ministry of Land, Infrastructure, Transport and Tourism (MLIT) has been
designating companies engaged in analyzing effects and issues of implementing
BIM as subsidized model projects* during fiscal 2020 and 2022. Shinryo
Corporation was the only equipment construction company to be selected forthree consecutive years for its theme of identifying the merits and issues fororderers and constructers of buildings when using BIM. We put the use of BIM
into practice in the construction of the new main building of our Innovation Hub( P11-12) and analyzed its effects.

Asset management
Facility management

Maintenance
Delivery
Simulation
Sitemanagement

Installation* Model project for facilitating building production, maintenance, and management processes using BIM.
Source: Based on Vision for the Future and Roadmap to BIM by MLIT
(https://www.mlit.go.jp/jutakukentiku/content/001351969.pdf)

Construction
plan

Implementation
designBasic design

DesignSurvey and planning

Effectiveness Analysis of BIM Use
In order to smoothly use BIM in the design and construction stages, operation method throughout the lifecycle of the building mustbe established. As such, we analyzed the effects and issues for merits for the orderer and construction technology consulting work*.
* Operation to optimize the entire equipment construction by smoothly coordinating BIM between design and construction processes, and rationalizing the construction.

Construction
process

Second Year (FY 2021)

First Year (FY 2020)

Analysis Reflect analysis and request

on blueprint

Merits fororderer(customer)

Third Year (FY 2022)

DesignInstallation
Analysis Estimate CO2

Analysis Build maintenance andemissions ofconstruction materials

Input instructions to
BIM data

management BIM

Orderer

 ommunicateCrequests todesigners
Quick decisionmaking

CO2
Select materials with lower CO2
emissions

Analysis Propose construction technology to designer

Digitalize equipment information used
for building operations after completion

Analysis Smooth coordination of data
Discuss appropriate
construction plan

Construction
technology
Consulting

Design meeting

Requests and proposals to blueprint

Construction technology consultant

Participate in design to propose optimum construction
technology

Process plan

Method plan
(unitization)

Prior simulation of
construction process

Formulate optimum construction plan at an early stage using
design BIM and construction BIM

Analysis Result
As a merit for the orderer, details of the specification can bedecided smoothly with completed image of the building andsimulated outputs of construction costs and CO2 emissions
calculated based on data of construction materials.
In addition, structural engineering consultancy services havethe effect of reducing construction time through front-loading(carrying out structural studies early in the design phase).

At the same time, it was necessary to establish rules forlinking BIM data between designers and constructors tofacilitate consultancy work.
Shinryo Corporation is realizing highly productive
construction by utilizing the knowledge gained from this model
project and promoting improvements.

SHINRYO Report 2024

50

Realize Safe and Highly Efficient Work Processes

KPI

Outline of KPI for Priority SDG Subjects (Detailed List on

P29-30)

Health and Safety Initiatives
KPI

Shinryo Group Health and Safety Policy

Safety First for our Prosperity
Shinryo Group has prioritized safety above all else based on
the Health and Safety Policy unchanged since its founding. All
employees and our partner companies engage in health andsafety activities to prevent labor accidents.
To eradicate occupational accidents, it is important tonurture a higher sensitivity to danger and extract latent on-site
hazards before we can have the ability to execute any types ofcountermeasures. Moreover, we are focusing on preventing
human error by thoroughly following the work procedures aswell as serious disasters caused by unscheduled work.

Frequency rate

(Target: Less than 0.40)

0.40

Construction Industry Law.
In fiscal 2023, we have strengthened the safety patrol toidentify risks and harms in construction sites and provide
instructions for improvement to prevent disasters. We havealso conducted safety education to dispatch employees
working at construction sites to improve the overall safety
management capability of construction sites. For education to
improve the abilities of chiefs and persons in charge of healthand safety, we implemented a system which enable large
number of participants to join more efficiently by remotelyconnecting offices and construction sites across Japan andoffices of partner companies.

VOICE

Cooperation with the Health and Safety Council
At the Health and Safety Council participated by partnercompanies and Shinryo Corporation, we hold education forchiefs and persons in charge of health and safety and various
specialized education for acquiring qualifications, with a focus
on safety patrol of the construction site conducted every
month. Labor safety training targeting business proprietors isheld to train business proprietors on their duty to adhere to theIndustrial Safety and Health Law as well as comply with the

Toshitada Watanabe
Chairperson of Health and
Safety Council
President & CEO
IIO KOGYOSHO CO., LTD.

Active communication in construction sites plays animportant role in preventing labor accidents. In fiscal
2023, we worked to offer guidance on improvement
through conducting safety patrols at more construction
sites than ever before and promoting more active
communication in construction sites, which had declined
due to the COIVD-19 pandemic, and to raise safety
awareness. Health and Safety Council and Shinryo
Corporation will cooperate in promoting health andsafety activities to eliminate labor accidents and realize asafe and reliable construction site.

Patrol by Health and Safety Council

Promotion to Expand the Construction Career Up
System (CCUS)
The Construction Career Up System launched in 2019 is acertification system developed by the Ministry of Land,
Infrastructure, Transport and Tourism in cooperation with theconstruction industry, organizations and other entities for the
purpose of certifying the skills and experience that an engineer
has amassed from an objective standpoint. The adoption ofthis system is expected to drive on-site work efficiency byadvancing registration of practical experience and thecertification of engineers, ensuring fair evaluation of those51

SHINRYO CORPORATION

KPI

CCUS registration rate of healthand safety council members(Target: Over 80%)82

skills, and improving construction quality.
Shinryo Corporation promotes the use of this system withthe hope of improving construction quality by not only
visualizing the careers of individual engineers but also
capabilities of partner companies that employ experienced
engineers. Therefore, we are rolling out the system toconstruction sites in an effort to promote its standardization,such as preparing an environment for partner companies tomore easily use it.

%Initiatives to Address Priority Subjects

Overseas Health and Safety Activities
We have put in place a system that links the Health and Safety
Promotion Department of Shinryo Corporation with safety
management supervisors at each country and on construction
sites to maintain a high-level of safety management while
incorporating management techniques in Japan. In fiscal 2023,
we aimed to share safety management methods andinformation horizontally through conducting joint safety patrolwith the Safety & Health Promotion Department as well as
joint meeting with persons in charge of health and safety.
Safety Patrol at Shinryo Suvidha

Promotion of Safety Education and Training
Shinryo Corporation is focusing on providing safety educationand training to employees in charge of construction sites. The
purpose is to prevent labor accidents through raisingawareness about the dangers through understanding theexisting dangers and harms in construction sites.
For new employee training and education, we include
statutory education on aerial work vehicles, full harness safety
belts, and other lectures that are useful in preventing accidents
in construction sites for construction managers as well as
experiencing disasters using virtual reality (VR) in the
curriculum.

Lecture on Aerial Work Vehicles

Asbestos and RCF Management
Shinryo Group has put in place an Asbestos and Refractory
Ceramic Fiber (RCF) management system to prevent any
adverse health effect on employees, on-site workers,
customers, and everyone else involved in its renovation
projects. With the revisions to the Air Pollution Control Act andOrdinance on Prevention of Health Impairment Due toAsbestos, prior survey by an asbestos surveyor became astatutory requirement when demolishing and otherconstruction work of buildings from October 2023. As such,
about 120 employees acquired the certification. Shinryo Group

works to properly remove and dispose asbestos and RCF by
taking advantage of safety patrol on asbestos and RCF as wellas construction cycle.

Removal of Piping Insulation
Containing Asbestos

Spray and Disposal of an Agent toPrevent the Scattering of Asbestos

Supply Chain Initiatives
We are striving to realize a sustainable society in the entire supply chain in cooperation with our partner companies and business
partners.

CSR Procurement Guidelines

Partnership Building Declaration

We have asked all our partner companies to understand andcooperate in fulfilling corporate social responsibility.

We endorse the philosophy of the Partnership Building
Declaration established by the Cabinet Office of Japan, Ministryof Economy, Trade and Industry, and other agencies anddeclared to build new partnerships by deepening thecoordination, coexistence, and co-prosperity with business
partners in the supply chain as well as companies that aim tocreate value.

Shinryo CSR Procurement Guidelines and Items Therein
1. Fair and sound corporate activities
2. Quality, safety, and business continuity
3. Consideration of human rights, labor, and occupational
health and safety
4. Consideration of the environment
5. Legal compliance
6. Management of information

https://www.biz-partnership.jp/declaration/30451-04-00-tokyo.pdf

SHINRYO Report 2024

52

CTIVE C
TA

ATIVE
RE

EARNE
S

Initiatives to Address Priority Subjects

Relevant SDGs

Build Refreshing Environments
Rich with Creativity

The construction industry in Japan faces the major challenges of reforming long work hours and building flexible
work environments. Shinryo Corporation will build workplaces where diverse human resources are motivated andcan each reach their full potential with the goal of realizing a refreshing, highly productive company rich withcreativity.

Work Style Reform
Shinryo Corporation has been working to reform work styles
since 2016. These reforms go beyond simply addressing long
working hours as an effort to realize the ideal work style, whichshould help heighten employee satisfaction. In preparation for
the amended Labor Standards Act which goes into effect inApril 2024 in the construction industry, we have been engaged
in the Challenge 45 project as an aim to limit monthly overtime
to 45 hours since May 2021.

Ideal Work Style of the Shinryo Corporation• Work-friendly environment with a refreshing and open
corporate climate• Pride, satisfaction, a sense of accomplishment, andgrowth• A fulfilling work-life balance• Work style driving maximum results in a limited
amount of time

Refreshing Work Style Project
Shinryo Corporation has continued the Refreshing Work Style
Project as an initiative working to reform individual employee
work styles since 2016. This project shares innovations toenhance productivity, ways to revitalize communication, andother specific measures while striving to raise awareness andspearhead work style reforms.
Every year, we hold the Refreshing Work Style Project Results
Briefing in which employees from Shinryo Corporation andGroup companies participate online. All of the corporate
divisions, branches, and administrative sections and three
Shinryo Group companies*1 present their success, introducing
various examples of work-style reforms, such ascommunication and management methods using digital tools
on construction sites. Each organization focuses on the effortsof other departments in an effort to further reform their work
styles under the motto, “Be successful using TTP (Tettei Tekini
Pakuru (Take Tip Proposals)) by imitating the beneficial actionsof others.”
To further advance the work style reform, we believe
industrywide initiative and productivity improvement are
required. As such, we have been submitting request for work
style reform to our customers since March 2023. This was led
by the sales department and we have submitted requests toover 390*2 customers as of the end of July 2023.
*1 The three Group companies—Shinryo Technical Service, Shiroguchi, and Daiei
Denki—involved with system design and installation*2 Counted multiple times if submitted to different business divisions or branches ofa same company.

53

SHINRYO CORPORATION

Some Examples in the Work Style Reform Guidebook(Collection of Case Studies)

Job Visualization• Analyze the time required for a job• Visualize on-site jobs using white boards

Reforms to Ensure Work Continues When Jobs
Arise Suddenly• Introduce concentration times and booths

Preparations to Build a More Work-friendly
Environment• Negotiate and enhance larger on-site offices• Introduce dual displays

On-site Morning Meeting Reforms• Abolish on-site morning meetings• Share information on monitors at morning meetings

Use of ICT Tools• Share information using on-site messaging tools• Conduct project manager meetings online• Conduct on-site inspections remotely• Provide video training to new on-site personnel

Reforms Through Cooperation with Other
Companies• Reform work styles through discussions withconstruction companies• Negotiate to eliminate urgent work requests

Initiatives to Address Priority Subjects

KPI

Outline of KPI for Priority SDG Subjects (Detailed List on

P29-30)

Challenge 45 to Comply with the Amended Labor Standards Act Going into Effect April 2024
In May 2021, Shinryo Corporation launched the Challenge 45
initiative for the purpose of limiting monthly overtime to 45
hours to further heighten the effectiveness of work stylereforms. Challenge 45 has set a clear target for overtime permonths by challenging employees how many months they canachieve the goal of no more than 45 hours of overtime. If forsome reason this goal cannot be achieved, we investigate thecause and use the PDCA cycle to spearhead improvements.
Shinryo Corporation will enhance the effectiveness of work
style reforms through backcasting which counts back fromtargets.

Challenge 45 Logo

Challenge 45 Promotion System
Management Council

Policy Revision, etc.
Approval

Reporting

Submission as Company-wide Measure

Refreshing Work
Style Project
Report Briefings(Twice/year)

Refreshing Work Style Project
Executive in charge, promoter, and secretariat: Gather feedback from each department and review Company-widemeasures
Confirmation Reporting

Coordination

Coordination

Confirmation ReportingWork Style Reform Activities by Model Teams
Corporate Divisions, Branches andAdministrative sections: Reform work styles

Information
Exchange

Orders Reporting

Group Companies
Shinryo Technical
Service
Shiroguchi

45 Meeting
General managers and managers of technology: Identify
problems

Daiei Denki
Information
Exchange

Orders Reporting

Board of Executive Officers
General managers of businesses, branches, and administrative sections:
Report on the commitment and progress of activities

KPI

Successes Up Until Now

Rate of annual paid leave taken by employees(Target: Year-on-year increase)%

First Year

Second Year

Third Year

Fourth Year

Fifth Year

Sixth Year

Seventh Year

April 2016
to March 2017

April 2017
to March 2018

April 2018
to March 2019

April 2019
to March 2020

April 2020
to March 2021

April 2021
to March 2022

April 2022
to March 2023

‒

‒

‒

–2.7

–3.3

–6.0

Implementation rate ofon-site no overtimedays and number ofmodel sites striving forwork style reform

Model Sites
Total:142

Model Sites
Total:121

Model Sites
Total:229

90%

End of Data
Collection
Due to Expansionof Initiative to All
Sites

Year-on-year change inovertime

–3.3

–2.6

–2.1

+1.7

97%

PointsRate of annual paid
leave taken by
employees and year-onyear change

92

60%

+3 points year
on year90%

Points62%+2 points year
on year

Points72%+10 points year
on year

Points64%-8 points year
on year

Points85%+21 points year
on year

Points87%

Points+2 points year
on year92%+5 points year
on year

SHINRYO Report 2024

54

Build Refreshing Environments Rich with Creativity

KPI

Outline of KPI for Priority SDG Subjects (Detailed List on

P29-30)

Build Refreshing Environments Rich with Creativity
Shinryo Corporation strives to cultivate an enthusiastic workplace for
employees by realizing a refreshing atmosphere and work-friendly environment.

KPI

Employeesatisfaction(Target: 4.0 or above)

3.3

Promotion of Health Management
Health Declaration

Health Management Promotion System
President
Management Council

Safety & HealthCommittee
Safety & Health
Promotion
Department

Coordination

Shinryo Corporation has striven to develop human resources
and build a work-friendly environment since its founding basedon the belief people are the most valuable asset. We also think
supporting physical and mental health is key to cultivating
enthusiasm in every employee. The promotion of healthmanagement is a critical management challenge for the
Shinryo Corporation. In March 2021, our President announced
the Health Declaration. This commitment will enhance thevitality of the Shinryo Corporation and contribute to thedevelopment of a sustainable society with the hope of realizing
our management vision to Create a Freshening World.

Charge of HealthManagement
Promotion
Human Resource
Department(Public Health Nurses
and Industrial
Physicians)

Health Officer,
Health Manager,
and Industrial Physicians at Each Division

Health Declaration
The Shinryo Corporation is committed to promoting healthmanagement.
1. We will support the physical and mental health of every
employee.
2. We will build a workplace where everyone can feel safe
and secure to reach their full potential.
3. We will heighten the vitality of our organization andcontribute to the development of a sustainable society
through employees’ healthy body and mind, and better
workplace environments.

Promoting Better Health Toward an Enthusiastic Workplace
Shinryo Corporation conducts various health promotion
activities so that every employee can actively participate withhealth and enthusiasm.
To promote health management, we have put in place asystem to not only work with the Health and Safety Committee

HealthConsultation
OfficeCoordination

Kankenpo
Health InsuranceSociety

but also with the health supervisors and managers in charge ofhealth management, and industrial doctors at each businessthroughout Japan.
Shinryo Corporation focuses on communicating informationthat helps raise awareness about health. Thus far, we have held
lectures on health topics from sleep, smoking, and alcohol todrugs, and infectious diseases as well as distributed healthinformation from public health nurses. With the adoption of aretirement age of 65 in 2020, measures to address the healthof older employees have become more important. Whenrenewing contract with employees of ages 65 and above, we
check the physical status of such employees through selfevaluation check sheet for falling and other risks. Other healthpromotion efforts include a Woman’s Health Seminar center
upon gynecological diseases and illnesses often affecting
women as topics for all female employees.

Progress of Health Initiatives and Target Values
Performance
Annual Health
Rate of Employees Undergoing
Indicator/Fiscal Year Examination Rate Necessary Follow-ups/Health Guidance

55

Rate of Stress Check

Rate of Annual Paid Leave Ratio of employees able toTaken by Employees
sleep for six hours or more

FY 2017

100%

5.4%

99.0%

62.0%

‒

FY 2020

100%

69.7%

96.2%

85.2%

35.0%

FY 2021

100%

79.1%

92.4%

87.3%

35.6%

FY 2022

100%

84.9%

95.5%

92.4%

35.8%

FY 2023 Target

Maintain 100%80%

Maintain 90% or above Year-on-year increase‒

FY 2026 Target

Maintain 100%

100%

Maintain 90% or above Year-on-year increase

‒

Item

Policies/Education

Physical Health•F ollow-up after regular health checkup•H ealth Consultation Office through the industrial doctors (offered once a week)•2 4-hour health consultation service (telephone/email consultations)• Implementation of flu vaccinations right in offices (Headquarters, Yokohama Branch, etc.)•F ull support for treatments to quit smoking (provides full support to employees who quit smoking forthree or more months after starting treatment)

Mental Health• I mplementation of stress-checks, creation of opportunities for employees who would like consultations
and advice from doctors, and implementation of PDCA to improve the workplace environment•C onsultation Office through industrial mental health professionals (offered once a month)• I mplementation of mental self-care education for new employees• I mplementation of mental health education (32 newly appointed managers and 33 specialized
education candidates took this program in fiscal 2023)

SHINRYO CORPORATION

Initiatives to Address Priority Subjects

Introduction of Programs to Support Flexible Work Styles
Shinryo Corporation is introducing various policies to encourage employees to take leave thanks to policies and mutual support thatbuild a flexible workplace so that employees can work while taking care of family as well as having and raising children.
Program

Overview

Telework Program• This program provides work-from-home and other telework options to smoothly execute the BusinessContinuity Plan (BCP) if working on-site is difficult when pregnant or raising children or when caring for
oneself or sick family or in large-scale natural disasters or pandemic-type situations.

Transfer System to
Accompany Spouse• This policy allows employees to transfer when an employed spouse has been transferred if they want tokeep working at a Shinryo Corporation office and a place at that office is available.

Come-back System• This policy allows regular employees who have worked at Shinryo Corporation for more than three
years and resigned to (1) raise children, (2) care for family, or (3) transfer with a spouse to return to workwithin five years of their resignation as a general rule.

Occupational System• This policy supports ongoing employment by providing work transfers based on the desires of regular
employees who would like to limit their work area or type of job according to their circumstances, suchas care to a sick family member. We also offer this program to employees hired mid-career.

Half-day leave acquisition
system for annual paid leave• This system allows employees to take annual paid leave in half day increments.

Expanded administration ofan accumulation system• This expansion allows employees to carry over the number of days left in annual leave to the next fiscal
year to use the paid leave they have left the previous year and the year before that for non-work related
injuries and illnesses as well as to care for children and other family members.

Special allowances for annual • E mployees who do not have 20 days of total annual paid leave carried over from the previous year andpaid leave
provided in the current fiscal year may take special leave (paid) according to their tenure at the company
in the event of an absence for the reason of sickness after all of the annual paid leave is extinguished.
Leave acquisition promotion
system•P roject leave policy: Employees in construction roles may take consecutive leave at appropriate times
such as at the completion of on-site construction (up to five business days that may be taken by
splitting).
• Anniversary leave policy: All employees may take leave on days recommended by the company such as
their birthday, birthdays of family members or school events (three working days per year).

Special leave program•R efresh leave policy: Employees may take designated consecutive leave as commemoration for 10, 20
and 30 years of work.

Maternity leave program for
spouses• This program allows employees to take up to five days of leave from one month before the due date to
one year after their spouse gives birth. It also lets employees take leave in half-day increments.

Activities to Promote Active Participation of Diverse Human Resources
Shinryo Corporation has established systems and policies to promote and support the active participation of diverse human resources.
We also promote the active participation of women and conduct activities to communicate the appeal of the construction industry.
Purpose

Systems/Policies/Events

Promote the success offemale employees•R elease of information and action plans based on the Law to Promote Women in the Workplace on the
Ministry of Health, Labour and Welfare Positive Ryouritsu website•P ublication of an Independent Conduct Plan for Female Employees Participation on the
Keidanren(Japan Business Federation) website• Acquired two-star “Eruboshi” certification of the Minister of Health, Labour and Welfare (June 2022)

Promote active participation • C ontinue the retirement age to 65 with raises, promotions, and ongoing additions of points forof senior employees with richretirement benefits from the date of joining of the company to the age of 65
experience•L ife plan seminars for 58-year old employees
Promote active participation • Implementation of training for new employees (company philosophy, founding spirit, programs andof employees hired midcareer regulations, compliance, occupational health and safety management, disaster prevention measures, etc.)
Promote active participationof foreign nationals• J apan invitation program for overseas Group companies (annual seminar, but not held in fiscal 2021)•P ractical technical training of engineers from the SHINRYO (PHILIPPINES) CO., INC.
• Implementation of a variety of education for overseas branches and overseas Group company staff(compliance, safety, and technical education)

Promote active participation • Work assignments according to aptitude in fields such as design and legal affairsof employees with disabilities • E stablishment of satellite offices equipped with environments offering amenities such as work support
systems and barrier-free designs

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Build Refreshing Environments Rich with Creativity

Human Resource Development Rich with Creativity
Promotion of Education and Training
Shinryo Corporation plans and launches educations programs
centered upon the education and training committee for the
purpose of improving business execution skills by bringing
understanding of the corporate philosophy and basic
philosophy. The Examination Committee drives forward
training practically in each department while improving theskills of each employee through promotion examinations.
Development Training System Framework
Decision-making Body
Board of Directors
President
Management Council
OrdersDevelopment Training System
We designate group training and internal testing as required
training to recognize the roles of employees and improve theirknowledge and skill by level.
New employee training and education provides the training
and education necessary for new employees to learn the basics.
This program also provides promotions in stages from thesecond year on by passing internal tests and external
certification exams, which takes the skills of managers to thenext level. The broad curriculum such as elective externalseminars by duty and position and practical educationaccording to department and occupation also establishes adevelopment training system able to ensure the continued
learning of each and every employee.
Group training by level and year

ReportingManagerial position
promotion training

Senior chief
promotion training

Advanced test

Chief promotion
training

Competent
promotion

Introductory test,
etc.

ReportingOrders

Education and Training Department

New Employee
Training and Education

Evaluation and
Improvement
Plans

ReportingOrdersRegular
Reporting

Evaluation and Improvement Plans

ReportingOrdersRegular Reporting

Examination Committee

Reporting andConsultations

Training Committee

Expansion of Education
and Relevant Measures
Guidance/Support

Education and Training Promotion Functions

Corporate Divisions,
Branches andAdministrative
sections

Career development support (short-term overseas trainees, etc.)

Manager ofDevelopment
Training

Basic training (management, risk management, etc.)

Technical training (on-site management skills, BIM, etc.)

Training and Education for Diverse Human Resources
Human Resources with Diverse Skills

Training for Mid-career Hires

Shinryo Corporation provides support such as subsidies for thecost of acquiring certifications to employees and incentives for
employees who have acquired certifications in order tocultivate human resources who have a high level of technicaland specialized abilities and skills. We broadly support not only
certifications required by the business but also from aperspective of ability development.

Shinryo Corporation is promoting the active participation ofdiverse human resources. As one aspect of this initiative, we
held an education opportunity for all female employees offeredboth in-person and online in August 2023. This opportunity
thoroughly explained Shinryo support programs and various
work styles in addition to deepening understanding about one
another across generations and occupations to build
supportive relationships.

Technical Professional Engineer, First-Class Plumbing Work
Operation and Management Engineer, First-Class
Architect, First-Class Instrumentation Engineer, FirstClass Electric Works Execution Manager, etc.
Administrative First-Grade Official Business Skills in
Bookkeeping, First-Class Construction Industry
Accountants, etc.

Human Resources Active on the Global StageAs the Group expands business overseas primarily in Asia andthe Middle East, Shinryo Corporation has a program thatmakes a public offering for people who want to work overseas
for the purpose of nurturing human resources who can actively
participate on the global stage.
After three years of service in an overseas assignment, theperson is assigned to a location considering their requests andstatus of the business.

57

SHINRYO CORPORATION

Presentation During the Training

Lecture During the Training

Initiatives to Address Priority Subjects

New Employee Training
Education Programs
Over the one year of new employee training and education, we
have established the perfect curriculum for each technical andadministrative system to teach the skills necessary to create anorganization where everyone can work with confidence rightafter assignment.

Education Schedule
Apr.

May

Jun.

Jul.

Aug. Sep. Oct. Nov. Dec. Jan.

Feb. Mar.

Primary training and education
Practical on-site training and education (engineering)
Construction drawing training and education (engineering)
Pre-assignment training and education (engineering)
Practical on-site training and education (administrative)
Practical administrative training and education (administrative)
Pre-assignment training and education (administrative)
Education at assigned department
Secondary training
and education

Primary Training and Education

Primary training and education teach the posture necessary for
professionals from the corporate philosophy, policies, and otherbasic knowledge to business manners over the first monthafter joining Shinryo Corporation. This program also provides
the essential basics for safety management on construction
sites as well as on-site operations while interweaving technicalexperience. In addition, employees learn basic knowledge about
Shinryo Corporation businesses through mediums such ascourses to teach basic knowledge on construction equipment
as well as information related to the main equipment andmaterials handled on construction sites.

Practical Training on Construction Sites

We conduct practical training and education after the primarytraining and education for not only technical employees but
also administrative employees on construction sites. Senior
employees are in charge of this practical education and teach abroad range of knowledge, including overall management
operations related to safety, quality, and process as well as
handling procedures for work drawings and the mainequipment. This helps deepen understanding about its businessthrough practical training on construction sites, which are mostimportant to Shinryo Corporation.

Education by Assignment/Secondary Training and Education

Shinryo Corporation provides practical education by assignment
by dividing engineers and administrators. Engineers take part intraining to learn about construction drawings using 3D-CAD
software while administrators learn the basic foundation to sales
and accounting through hands-on training. These programs
also provide an opportunity to review the education conducted
over the year and reaffirm the attitude as a professional insecondary training after the initial training is done.
Kofu Dormitory: Energy saving construction that acquired
BELS highest rank ★★★★★ and ZEH-M Ready.

Start of Training at the New Kofu Dormitory
The overall training at Kofu Dormitory for approximately
one year is an ongoing tradition at Shinryo Corporation
since its founding. Employees who enter the company inthe same year can build bonds by living and learning
together. This acts as an opportunity to alleviate concerns
about the job and seek advice from those with moreexperience in meetings held by each team at the dormitory.
In April 2023, the Kofu Dormitory moved to Nishitokyo
City, Tokyo. New Kofu Dormitory is not only located in ahighly convenient location but also addresses issues suchas measures to prevent the spread of infections.

Exterior

VOICE
Takeo Kimura
Dormitory Manager
Sales Department 3
Tokyo Metropolitan Area
Division

Kofu Dormitory is a unique feature of Shinryo
Corporation which values the bond between new
graduate employees. I think this is a very comfortableenvironment as the second- and third-year employees
at the dormitory support new graduate employeesthat come from all over Japan. Relationship I have builtwith the residents of the dormitory as a manager ofthe dormitory have become a strong network and agreat asset for me. I will utilize that strength even afterI graduate the Kofu Dormitory to further my growth.

Dormitory

Meeting at the dormitory

Communication space

Entrance

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Build Refreshing Environments Rich with Creativity

Corporate GovernanceCorporate Governance System
The Board of Directors deliberates submitted agenda items
based on agenda and reporting criteria stipulated by agenda
items and by Board of Directors rules set forth in the
Companies Act. The Management Council deliberates onimportant matters concerning company management, in
addition to proposals submitted to the Board of Directors. The
Board of Executive Officers communicates reports on thestatus of work execution by executives and resolutions of theManagement Council, and performs prior hearings on opinions
concerning matters for deliberation by the Management
Council. The Audit Division verifies compliance and the efficacy
and efficiency of systems, organizations, and work activities. In
addition, it has performed audits of not only domestic andoverseas workplaces but also of construction sites.
The Compliance Committee seeks to enforce and improveawareness of legal compliance in conjunction with corporate
ethics in collaboration with the Committee and supervisors ineach department and Group company, while also conducting
policy decision-making and corrective guidance with regard toreports and consultations received through the Shinryo Hotline( P62) reporting and consultation service.
The Risk Management Committee is also extracting vitaltechnological and contractual risks in large-scale jobs whichhave the potential to greatly affect management andperiodically engages in discussions about measures to respondto these risks.

Corporate Governance System
General Meeting of Shareholders
Appointment/Dismissal

Appointment/Dismissal

Coordination

Independent
Auditors

Appointment/Dismissal

Auditing

Audit &
Supervisory Board

Board of Directors

Executive Officers
Auditing
Appointment/
Supervision

Financial Auditing

Discussion and Reporting[Business Execution System]
President

Compliance Committee

Management Council
Audit Division

Board of Executive
Officers

Risk Management Committee

Corporate Divisions, Branches, Administrative Sections, Group Companies

Internal Control
Since the construction of the internal control system is mandated by the Companies Act, we performed reviews of the system asnecessary, and works to fully secure compliance and enhance consistency and efficiency in work execution.

Overview of Shinryo Corporation’s basic policy on internal control system
1. Systems to ensure that the execution of duties of executives and employees of the Group conforms to laws, regulations, and the Articles ofIncorporation
2. Systems concerning the preservation and management of information pertaining to the execution of duties of directors
3. Rules and other systems concerning management of the risk of loss in the Group
4. Systems to ensure the efficient execution of duties of directors in the Group
5. Systems to ensure reasonable work in the Group composed of our company and Group companies
6. Matters concerning the employees in cases of auditors requesting the appointment of employees to assist the duties of auditors
7. Systems by which executives and employees of the Group or those that received the report to inform to auditors, and other systems
concerning reporting to auditors
8. Systems to otherwise ensure the effective conduct of audits by auditors

Business Continuity Plan (BCP)
Shinryo Corporation has established a Business Continuity Plan
(BCP) to ensure business activities continue during large-scaledisasters and other such emergencies. In times of peace, we
strive to improve the practicality of the BCP by conducting
regular training while pushing forward preliminary measures

59

SHINRYO CORPORATION

such as building internal infrastructure and preparing
cooperative systems with partner companies. Shinryo
Corporation concluded cooperative disaster managementagreements with local governments and other such partners to
respond to requests for support at the time of natural disasters.

Initiatives to Address Priority Subjects

Introduction of Comprehensive BCP Drills

Organizational Structure During Disasters

Shinryo Corporation regularly conducts BCP drills with thegoals of improving employee response capabilities andstrengthening the BCP system in the event of a disaster. This
training takes a multifaceted approach that includes safety
reporting drills for everyone even at Group companies in Japan
as well as Disaster Prevention Office training in which the
President acts as the Chairperson.
In November 2023, we held a drill for the more frequently
occurring wind and water damage caused by typhoons inrecent years. We checked the coordination with disasterstricken areas from before the typhoon making landfall to after
its passing aswell asprocedures ofthe businessrecoverysystem, andreviewed theireffectiveness.
Comprehensive BCP Drills

Business Continuity Plan (BCP) Basic Policies of Shinryo
Corporation
1. Immediately provide support by prioritizing the safety of
executives and employees.
2. Sustain ongoing operation of corporate functions by recovering
company facilities as soon as possible.
3. Cooperate with the recovery of sites currently underconstruction or completed properties as support toward thebusiness continuity activities of our customers.
4. Introduce support to recovering infrastructure and support forresidence affected by the disaster as much as possible as amember of the local community.

Headquarters
Disaster Prevention
OfficeChairperson: President
Office members:• Vice President• General Manager,
Technical Supervision
Division• General Manager,
Marketing
Supervision Division• General Manager of
DX Promotion
Division• General Manager ofCorporate
Management Division• General Manager ofCorporate Strategy &Planning Department• General Manager of
Human Resources
Department• General Manager of
Accounting and
Finance Department• General Manager ofCorporate
Communication
Department• General Manager ofMission-critical
Systems Department• General Manager of
Safety & Health
Promotion
Department
General Manager:
General Manager ofGeneral Affairs
Department
Secretariat:
Secretariat Members

Headquarter
Divisions

Construction Sites

Headquarters
Recovery Group• Disaster Prevention
Office InstallationGroup• Information
Gathering Group• Rescue Group• Headquarters
Building RecoveryGroup• Information
Systems Group• Stranded Employee
Support Group

Innovation
Hub• Innovation Hub
Disaster PreventionGroup

Administrative
Sections

Fire Brigade

Corporate Divisions/Branches
Outside Headquarters
Division Disaster Prevention Office
Division Chairperson:
Heads of Corporate Divisions/
Branches Outside Headquarters
Division Secretariat: Secretariat Members

Fire Brigade
Headquarters

On-site ProjectManager

Construction Sites
On-site ProjectManager

Corporate Division/
Branch Employees

Japanese Group Companies

Construction Sites

Disaster Prevention OfficeOn-site ProjectManager

Risk Management
We have prepared systems and measures to minimize damage
related to various risks in the business environment
surrounding Shinryo Group and ensure business continuity,
Risk Management System[Promotional Body]

Management Council

Policy Decisions
Supervision of the Risk Management Process
Directives on the execution of specific response measures, etc.
Risk Management
Formulation of
Relevant Regulations,
Submission of
Revision and
Abolition
Submission as well as
ReportingOrdersRisk Training
Plans
Submission as
well asReporting

Coordination[Management Council
Secretariat]

General Affairs Department
Coordination

OrdersReportingOrders[Company-wide Training Body]

Education andTraining Committee

Feedback/Requestsof Risk Training Plans

Training

Corporate Divisions, Branches and Administrative Sections
Implementation of the Risk Management Process
Response to Risks that Manifest

Risks

such as quality, safety, the environment, human rights,
compliance, and information, and to continue and recoverbusiness as quickly as possible. Shinryo Group has put in place
Risk Management Regulations that gather basic risk
management items and Crisis Management Measure
Regulations. We created specific response guidelines to ensure
the ability to rapidly respond to not only risks in Japan andoverseas.
In October 2022, we formulated an Overseas Safety andCrisis Management Manual as specific guidelines to respond tocrises arising overseas. The purpose of this manual is to prevent
risks from materializing by identifying risks and preparing
based on their expected impact at normal times using thismanual. In addition, we have established a cycle of reviewing
risks and impacts every year.

Information Security Management Systems
Shinryo Corporation establishes Management Rules ofCorporate Information to properly manage customer andpartner information. We also regularly carry out security auditsof our main businesses and on-site offices. We host internalliaison conferences about information security and emphasize
activities to heighten informational literacy. In February 2023,
Shinryo Corporation also conducted e-learning on the dangerof targeted email attacks and measures against them.

SHINRYO Report 2024

60

Build Refreshing Environments Rich with Creativity

Compliance
Legal Compliance System
Compliance Promotion System

Compliance Promotion System diagram

The Shinryo Group believes uncompromising compliance is thehighest priority subject for management. All executives andemployees of the Group will practice legal compliance, which isat the heart of the Company Philosophy to “be fair andstraightforward” in their actions while striving to gain the
support of all of our stakeholders.

Decision-making Body
Board of Directors
ReportingPresident
Management Council

Shinryo Group Code of Business Conduct
OrdersAudit
Division1P ursue customer satisfaction by standing in customers’ positions.

Compliance promotion function
Compliance Committee
Orders3 Create energetic and comfortable workplaces that staff canshow their families how proud they are of their Company.
4 Together with our business partners, thoroughly comply withcorporate ethics, laws, and regulations and conduct fair,transparent, and open.

Auditing

5 Constantly pursue how we should be as a member of a healthysociety.
6 As a global enterprise, contribute to the societal developmentof related countries.

ReportingCompliance Promotion
Division
Expansion of
education andrelevant measures
Guidance/support

2 Pursue management efficiency for the sake of shareholders.

Reporting

Reporting andConsultations

Coordination

Auditing
Function

Coordination

We, the executives and employees of Shinryo Group, have basic
and common awareness of corporate ethics and compliance inaccordance with Shinryo Group’s Company Philosophy and thisCode of Business Conduct and Standards of Conduct, andpositively practice compliance in our daily business with astrong sense of belonging to the company.

Relevant
Departments
General Affairs
Dept.
Human
Resources
Dept.
Overseas
Management
Dept.
etc.

Corporate Divisions,
Branches andAdministrative sections
Group Companies
Compliance Supervisors

Practical Formulation of Guidelines and Other Rules
Domestic Compliance Guidelines
Compliance Guidelines and a Collection of Examples

We created the Shinryo Group Compliance Guidelines as core
principles founded in our company philosophy, code of businessconduct, and standards of conduct. We also established
Explanations on Related Laws and Regulations as a manualbringing together systematically organized laws, such as the
Antimonopoly Act and Construction Industry Law. Shinryo
Corporation and all of the executives and employees of Group
companies have taken the guideline education and havecommitted to compliance.
Shinryo Corporation created a Collection of Compliance
Examples bundling specific examples related to compliance asa document to use in education and to raise corporate officer
awareness about compliance.

Global Compliance GuidelinesFormulation of Overseas Guidelines

We formulated the Compliance Guidelines (Global Version) forJapanese employees active globally as well as executives andemployees of overseas Group companies, etc. We are defining
basic mandatory principles in-line with different cultures andcustoms everyone should adhere to based on compliance witheach type of international rule which includes compliance tothe laws and regulations in each country and region as well as
human rights. All managers undergo education for theseguidelines and vow to adhere to this compliance.

61

SHINRYO CORPORATION horough Compliance to Guidelines for Anti-corruption
T
Overseas

Shinryo Corporation gathers compliance items and thecompliance system related to government officials when
conducting business overseas in its Guidelines for
Anticorruption Overseas. These guidelines include
countermeasures tailored to the circumstances of each country
and region in addition to basic principles as well as
anticorruption concepts common to each country. We respondto changes both statutory and political in a timely manner
while continually making revisions. Furthermore, we
continuously conduct guideline training for all Japaneseemployees who work at overseas bases as well as executives
and employees from local companies.
Shinryo Group Basic Principles on Anti-corruption Overseas
1. We will not pursue the acquisition, expansion or profit inbusiness through bribery or any other inappropriate means.
2. We will comply with bribery and anti-corruption laws andregulations in each country and region while adhering to Article
18 of the Unfair Competition Prevention Act in Japan(prohibition of illicit profits to foreign public officials).
3. We will never give gifts with the intention of acquiring businessor gaining favor even if such practices are customary in the
country or region.

Initiatives to Address Priority Subjects

KPI

Outline of KPI for Priority SDG Subjects (Detailed List on

P29-30)Understanding and Practice of Compliance
KPI

Participation rate in compliancetraining(Target: 100%)

100%

Implementation of Comprehensive Compliance
Education
Implementation of education for every executive andemployee throughout the Group

Implementation of education for every executive and employee
throughout the Group Compliance education is regularly held
for Shinryo Corporation and Group companies worldwide. In
fiscal 2023, we conducted practical education on complianceviolations and harassment that could occur in construction
sites. By handling social issues in a broad and timely manner,
Shinryo Corporation strives to build a corporate climate
engaged in operations while always keeping in mind compliance.
Target Trainees

Training Content

Engineers

Compliance violations that could
occur in construction sites

New employees

Explanation on Compliance Guidelines

New mid-level employees Explanation on Compliance Guidelines
Employees in eachdepartment

Various compliance violations likely tooccur in businessPeriodic Distribution of Shinryo Compliance News

Shinryo Compliance News is distributed periodically by email toall of our executives and employees. The news covers a broad
range of topics from legal explanations about the Construction
Industry Law and other statutory regulations relevant toShinryo Group businesses, and points on legal amendments tocompliance in the workplace. Each issue also provides a system
to easily offer feedback and make inquiries about compliancethrough a questionnaire.

Launch of an Internal Reporting System
Shinryo Corporation has established its Compliance Reporting
and Consultation Regulations with the objective of preventing
legal violations or inappropriateness as well as quickly
discovering and correcting signs of these issues. Pursuant to
the Whistleblower Protection Act, we have set up and arerunning an internal reporting system that places emphasis on
the protection of whistleblowers. The SHINRYO Hotline has
also been set up as a reporting and consultation service in aneffort to raise awareness.
SHINRYO Hotline Reporting and Consultation Service
Internal Service Office: Shinryo Corporation/Compliance
Promotion Division
E-mail: soudan@shinryo.com
External Service Office: Wakaba Partners Law and Accounting
Firm
E-mail: soudan@wakaba-ps.jp
This service is available to anyone whether a Shinryo Group
executive and employee or not. *Please see the Shinryo
Corporation website for more information.
https://www.shinryo.com/corp/compliance.html

Cooperation Between Group Companies
We regularly hold liaison meetings with Group companies inJapan and share information about compliance such as
response to legal reforms and formulation of internal rules tounify compliance awareness and operations as the Shinryo
Group. In the liaison meetings held in fiscal 2023, complianceincidents of each company were reported and information on
education and materials for improving compliance were shared.

Responding to Antisocial Forces
We will work to stay faithful to our Code of Business Conduct
and Standards of Conduct stating our intention to never

succumb to the threats of antisocial forces and resolutely
eliminate them in a courageous manner.

Human rights
We hope to fulfill our responsibility of respecting the humanrights of all our stakeholders involved in our business activities
based on our Management Vision of “Create a Freshening World.”
We have established human rights policy in November 2023.
In addition to supporting and respecting internationalguidelines such as the International Bill of Human rights and

UN Guiding Principles on Business and Human rights, we will
engage in business activities in accordance with the four areas
and ten principles, including human rights, of the United
Nations Global Compact. We will also promote business
partners and partner companies to respect human rights andwork to respect human rights in the entire supply chain.

Initiatives

Description

Training and awarenessraising activities• Implementation of e-learning and training on harassment, distribution of the Shinryo Compliance News via
email, and other informational dissemination P62

Preparation of a working
environment• Work-style reform initiatives: promotion of the Refreshing Work Style Project and Challenge 45• Promotion of health management P55• Encouragement of the active participation of diverse human resources P56

Cooperation with partnercompanies• Health and safety activities on construction sites through the Health and Safety Council P51• Promotion of a supply chain with human rights considerations according to the Shinryo CSR Procurement
Guidelines and Declaration of Partnership Building P52

P53, 54

Setup of a consultation service • Setup of the Shinryo Group Hotline reporting and consultation service and protection of whistleblowers

P62

SHINRYO Report 2024

62

Sustainability Promotion Activities at Shinryo Group Companies
Each company of the Shinryo Group is aiding in the growth of society from initiatives to solve social issues
through its businesses.

Shinryo Technical Service Corporation
Implementation of Energy Saving Tuning

As a company that offers construction equipment renewals and maintenance andmanagement services, Shinryo Technical Service uses the utmost care in making proposals
toward long-term comfort during building use. In renovation construction, the company not
only offers highly efficient equipment proposals but also energy saving tuning to further
increase the energy saving effect of equipment. The aim is to further reduce energy
consumption of equipment by adjusting the temperature of the cooling water, pressure of
the water sent to air conditioner, and other settings to make full use of the equipment’s
performance. The company hopes to contribute to the decarbonization of customers’
equipment through this service.

Confirmation of energy saving tuning

Shiroguchi Co., Ltd.
Improving Efficiency of Drain Pipe Tests

For testing drain pipes in buildings, cloths and balls are flushed down toilets and sanitaryequipment after the construction is completed to test for clogs in pipes and where waste
water flows to. Conventionally, flushed cloths were collected from catch basins outside thebuilding and each sanitary equipment required to be tested individually with multiple
personnel located in different locations of the building. As such, it required large amount ofwater and time. To address these issues, the company developed a testing tool that enables
collection of cloths from cleaning holes. This enabled the reduction of water used for testingwater passage and improvement of efficiency.

Testing water passage in pipes with testing tool

Shinryo Kougyo LTD.
Improving Productivity in Plants with Environmental
Maintenance

The manufacturing plant with a lot area of 16,530m2 located in
Hiratsuka City, Kanagawa Prefecture manufactures and maintains
pumps for public infrastructure and industrial environmental
equipment as well as trial operation of large pumps as the Shinryo
Cooperation’s manufacturing base. Renovations such as renewal ofplant facilities and relocation of processing machines wereconducted from 2017, with the completion of the renovation of
the office building in 2023 finishing the improvements of its
workplace environment. The company implements automation of
manufacturing equipment, online visit inspection, and 3D
technology to improve the productivity of the entire plant.

Exterior of Hiratsuka Plant No. 1

THAI SHINRYO LTD.

SHINRYO (PHILIPPINES) CO., INC.

Implementation of Regular Technical Education

Operation of Safe and Secure Construction Sites

THAI SHINRYO continuously holds monthly technicaleducation to improve the skills of technical employees. Themesof education are chosen from diverse fields such as design
calculation, construction quality, material selection,
management methods for construction sites, and safety
management, with a focus on request from young employees
and questions that arose during daily work. Education is offeredthrough lectures which can be participated in-person andonline as well as through external lectures such as plant visitswith the cooperation ofpartner companies. The
company aims to
educate its employees
while also creating a
comfortable workplacethrough technicaleducation.
External lecture on pipe welding

63

SHINRYO CORPORATIONInternal of Hiratsuka Plant No. 2

The company received the Distinguished Service Award forachieving zero accidents and disasters in construction sites andSafety Record Award for appropriate submission of records oncrisis management and initial disaster response drill from theSAFETY ORGANIZATION OF THE PHILIPPINES INC. at the
14th National Construction Safety Conference. SHINRYOPHILIPPINES has been cooperating with partner companies to
conduct safety education and safety patrols and maintain highlevel of safety management that incorporate Japanesemanagement method
in order to realize safe
and secure construction
sites. The company
regards this recognition
as an encouragement
to continue working
toward realizing safe
and secure operation ofAwarding at the National Construction Safety
construction sites.
ConferenceSustainability Promotion Activities at Shinryo Group Companies

Daiei Denki Co., Ltd.
Contributing to Decarbonization Through Photovoltaic Generation System
Business

The company has been making advancements in the “in-house consumption typephotovoltaic generation system business” by utilizing technological capability and knowhow
cultivated through constructing photovoltaic generation equipment since 2009. The businessenables customers to purchase the generated electricity from solar panels installed by power
generation companies in the customer premises. Daiei Denki simulates the amount of power
generation and consumption to offer equipment that enable an efficient cycle of electric
consumption. The company hopes to contribute to decarbonization through customers,
power generation companies, and Daiei Denki working together to create an environment
which renewable energy is easy to use.

Photovoltaic generation system

Global Staff Co., Ltd.
Comprehensive Construction Site Support Through ICT Technology

Through the merger of a Group company that engage in drawing blueprints and BIM related
businesses, the company has built a system that can offer outsourcing work related to ICT
and BIM in addition to dispatching human resources. The company offers wide range ofservices that supports construction sites from outside including administrative work such asorganizing photo data and creating minutes for the meeting, creating blueprints and 3Dmodels with BIM, and engineering work such as static pressure and lifting height calculations.
Going forward, the company will coordinate construction sites and DX to create a systemthat can provide support from anywhere in Japan through using ICT technology.

Preparation for storing photo data toconstruction management app

Akita Castle Hotel Co., Ltd.
Contributions Toward Local Health and Welfare

Medical catering business, which require provision of meals thatmatch health conditions, supports human life with food using highlevel of expertise and food processing technology. Since the start ofits business in 2001, the company now offers its services to 40
locations in the prefecture, such as hospitals and welfare facilities.
The service not only considers taste but also ease of eating andcolor by offering locally unique menus and special menus by hotel
chefs, capitalizing on being a local hotel. Soft foods using mousse
from foods are shaped to look real to enable people that havetrouble swallowing to enjoy eating.

Soft food made to look like real sushi

Ingredients processed into mousse

PT.SHINRYO INDONESIASHINRYO TECHNICAL SERVICES LTD.

Initiatives to Strengthen Information Security

Contributing to Traffic Infrastructure in Hong Kong

The company conducted information security education forthe purpose of raising awareness of the Information Security
Guideline. All national staff participated in the education andconfirmed items to be aware of when connected to theInternet and using the internal system, how to use external
devices, and measure to take when infected by a virus. This
was a good opportunity to remind everyone that consciously
making improvements to the workplace environment on adaily bases lead to prevention of troubles. The company willcontinue to maintainthe relationship of trustwith customers andbusiness partners
through continuing to
educate the employees
and appropriately
managing information.
Online information security education

As a company specializing in renewal construction of
construction equipment and maintenance and management
services, the company handles maintenance and renewal
construction of air conditioning systems in buildings as wellas various traffic infrastructure equipment in Chinese highspeed railways, subways, and airports. Of note, the company ishandling the renewal constructions of chillers in stations andpiping in tunnels of subways in the Hong Kong Island andKowloon Peninsula sides based on meticulous process
management following
the annual plan. The
company willcontribute to make theimportant traffic
infrastructure of Hong
Kong safe andcomfortable for the
citizens.
Ventilation fan in the subway tunnel

SHINRYO Report 2024

64Social Engagement
Shinryo Corporation actively conducts activities to demonstrate the importance of community and culture
as a company that contributes to the development of sustainable society. We also believe that steadily
accumulating small, close-at-hand activities is important in engaging with local communities.

Initiatives to Support Education
Shinryo Corporation is focusing on supporting activities aimed to better young generation’s understanding of theconstruction industry and engineering technology to raise their interest.

Supporting High School Internships

Part-time Instructor Activities at Universities

In July 2023, we brought in 10th grade living environment
system interns from Fujisawa Koka High School. The training
spanned three days, offering curriculum including hands-on
training of creating design plan that meets customer request, atour to heat source system at a renovation construction site,
and a tour to a duct manufacturing plant of a partner company
to deepen their understanding that the construction industry isfounded on
support frommany people.

Employees of Shinryo Corporation are jumping at the chance
to teach as part-time instructors at universities in courses that
include classes related to building services and engineeringsystems. To develop the construction industry and its
technology, we hope to stay actively involved in the educational
opportunities of students entrusted with the next generation.

Heat source machine room tour

Course track-record
Name of University

Classes taught

Meijo University

Construction Equipment Engineering 2

Tsukuba Universityof Technology

Specialized Courses in Eco Environmental
Systems and System Engineering

Tokyo University of
Science

Advanced Ventilation Systems

Setsunan University Studies on Building Services
Osaka Metropolitan
University

Studies on Building Services

Social Contribution Activities
Shinryo Corporation strives to realize a rich and fulfilling society based on its management vision “Create a Freshening World.”

Donations to the Disaster and Humanitarian
Organizations
Considering natural disasters becoming more devastating inrecent years and disaster-afflicted areas needing longer-term
support, Shinryo Corporation continues to donate funding often million yen every year to organizations in Japan andoverseas that actively support the recovery.
In fiscal 2023, we donated five million yen to the Japan
Voluntary Organizations Active in Disaster (JVOAD), an
organization that builds system for activities to support
disaster-affected area during disaster as well as during normal
times. We have also donated three million yen to the United
Nations High Commissioner for Refugees (UNHCR), aninternational organization that protects and supports refugees
and displaced people, and a total of two million yen to theTurkish Embassy In Tokyo and the Japanese Red Cross Society
as donations to support the recovery from the earthquake inthe south-eastern part of Turkey.

The Plus Volunteer Activity
Our corporate divisions and branches in Japan take part in the
Plus Volunteer Activity. The Plus Volunteer Activity aims to add(plus) clean-up and other volunteer activities to events such as
gatherings with employees, families and partner companies
held at each department.

65

SHINRYO CORPORATION

It was temporarily suspended due to COVID-19, but we are
gradually
becoming more
active. Also ouroverseas local
companies also
continually takepart in volunteer
activities deeply
rooted in local
communities.
Carry out clean-up volunteer and beachcombing(Yokohama branch)

Support for Culture and the Arts
Shinryo Corporation promotes activities to support thedevelopment of superb and vibrant arts and culture.
We support the following organizations:
NHK Symphony Orchestra, Tokyo/Kanagawa Philharmonic
Orchestra/Kansai Philharmonic Orchestra/The Kyushu SymphonyOrchestra/Sapporo Symphony Orchestra/New National Theatre,
Tokyo/New Japan Philharmonic/Sendai Philharmonic Orchestra/
Tokyo Metropolitan Symphony Orchestra/Tokyo Nikikai Opera
Foundation/The Japan Opera Foundation/Japan Performing Arts
Foundation/Hiroshima Symphony Orchestra/Yomiuri Nippon
Symphony Orchestra

Third-party Opinion
Hidemi Tomita, Managing Director of LRQA Sustainability KK who has given his insight into our selection
process for priority subjects and other efforts in the past, joins us again to give his third-party perspective.

Hidemi Tomita
LRQA Sustainability K.K.
Managing Director

Mr. Hidemi Tomita cultivated experience in CSR management at a business firm
before joining Lloyd’s Register Japan K.K. in 2013. In 2020, he was appointed theManaging Director of LRQA Sustainability K.K. (Previously Lloyd’s Register Japan K.K.).
Mr. Hidemi Tomita has also been involved in numerous other roles during his career,
including his service on government committees and involvement with international
standards.

The SHINRYO Report 2024 once again brings together
information from Shinryo Group profile and business overview
to the corporate history in a very accessible manner. The report
is easy to read with the sustainability initiatives and otherdetailed information required to understand the overall pictureof the company being organized systematically. I feel that thereport is concisely summarized and reflects the elements of an
integrated report, excluding financial information.
In terms of “Feature 1: Construction Process Innovation with
DX,” I believe it is a very effective method for addressing various
upcoming issues such as decline of the labor force. This initiative
is put to practice in the construction of the Innovation Hub,which I feel it showcases the Company’s strength.
As discussed in “Feature 2: Construction of New Main
Building of Shinryo Innovation Hub,” the hub can become asymbol of the Company as a research site and a proof ofconcept for decarbonization. I am excited to see what kind oftechnology will be developed there in the future.
These are good examples to showcase the innovativeness of
the Company that aims to be a “Future & Environmental
Engineering Company.”
As for the promotion of sustainability, as I noted last year, thereport continues to clearly presents the promotion systemalongside the four priority subjects (materiality) while
demonstrating uniqueness of Shinryo Corporation. This year,
the Company has established its human rights policy andendorsed TCFD, along with its related initiatives. I think thesewere appropriate response to the rapidly shifting external
environment.
Going forward, I expect the Company to make advancements
in initiatives addressing sustainability of the Company, such as
implementation of human rights due diligence, as stipulated in
the human rights policy, and its disclosure; disclosure based on
the TCFD framework and setting reduction target for Scope 3
emissions; revision of procurement guidelines aimed atmanaging the impact in the entire supply chain; and otherinitiatives.
In 2023, TNFD Recommendations were released following
the TCFD, indicating the progress in the formulation of aninternational standard for disclosure of information onsustainability. As Shinryo Corporation is not a listed company, it
may not necessarily be required to respond to all these things,
but I hope the Company continues to keeping track of new
trends as they are information required by customer companies.
When looking at points I addressed in the previous year,
disclosure of KPI results has changed from a single year in theprevious year to show a three-year progress, which clearly
showcase the progress made toward the target. Considering its
volume, SHINRYO Report has a great characteristic of providing
very detailed explanation. For example, initiatives and results of
Scope 3 are provided for each category in “Priority Subject 1
Contribute to a Decarbonized Society.” In particular,
technologies used in the Shinryo Shinjo Building are highly
praised for their environmental performance, and even inoverseas, strongly highlighting the connection between
business and sustainability.
Furthermore, “Priority Subject 4 Build Refreshing
Environments Rich with Creativity” not only provides
examination rate of health checkups and stress checks, but also
ratio of employees that are able to sleep for six hours or more.
Data such as these are rarely disclosed even by major listedcompanies. Such stance toward disclosure is not just forformality and sends a message about the direction the
Company is headed. I hope Shinryo Corporation to continue
focusing on aspects unique to the Company while also
addressing various standards for information disclosure.

Reflection on the Third-party Opinion
Koichi Kaji
Director, Managing Executive Officer in charge of Sustainability Promotion

I would like to thank Hidemi Tomita for his invaluable feedback about our sustainability promotion activities. Formulation of
the human rights policy and endorsement of the TCFD Recommendations was carried out in 2023 upon systemicallyreorganizing the past initiatives. As highlighted in the comment, we recognize that making steady progress is important. In
terms of human rights, we are revising the CSR Procurement Guidelines to promote human rights due diligence in the entire
supply chain. In terms of TCFD, we are further accelerating the reduction of Scope 1 and 2 emissions with the completion of
the Innovation Hub as well as making progress in discussions for setting Scope 3 reduction targets. For information disclosure,
we are considering the disclosure of information focusing on climate change and resource recycling that align withinternational standards. Shinryo Corporation will continue striving to contribute to the development of a sustainability society
through our business activities.

SHINRYO Report 2024

66

COMORE YOTSUYA/YOTSUYA TOWER, 5th Floor, 1-6-1,
Yotsuya, Shinjuku-ku, Tokyo 160-8510, Japan

Published in January 2024