SHINRYO REPORT 2023
Corporate Profile and Sustainability Report

English Version

Manageg me
m nt Vision- Brand Promise -We would lik
ke to provide a coomfortable air quualiity appropriate
for where we
e wo
ork,,
spend our time, and in thee surrooundingg natural environment.
We would likee to creatte a ricch andd pleasant envirron
nment.
We, Shinryo Corporation strive to realize an even more
comfortable and pleasant lifestyle byproviding optimal air quality around the worrld.
As a meeanss to this end, we strive to provide new value throug
gh
ﬂexible thin
nking
g by
heightenin
ng the technology we have cultivated up until now
even fuurther while sincerely
respondiing too the customers.
We willl continue to strive to realizze a “Freshening World” byypursuing to offer greater valuue.

1

SHINRYO Report 2023

SHINRYO Report 2023

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: Shinryo Innovation Hub

47 Realize Safe and Highly Efficient Work
Processes

11

Feature 2: Initiatives at Shinryo Shinjo
Building
Taking on the Challenge of
Decarbonization

53 Build Refreshing Environments Rich with
Creativity

13

History of Shinryo Corporation

15

Corporate Profile

39 Contribute to a Resilient Society

63

Sustainability Promotion Activities of
Shinryo Group Companies

65

Social Engagement

66

Third-party Opinion

15 Corporate Information/List of Executives/
Organizational Chart
17 Overview of the Shinryo Group/Business
Performance Trends
19 Business Fields
21 Construction Track Record

Editorial Policy

Target period

The intent of this report is tohelp all of our stakeholders todeepen their understanding ofCorporate Social Responsibility(CSR) activities at Shinryo
Corporation.

This report focus on FY2022 (October 1,
2021 to September 30, 2022), including
some periods before and after.

Some of the images in thisreport differ from current
occupational health andsafety measures, but all of theimages are either images taken
after measures were taken
for inclusion in this reportor images taken before themeasures began.

Scope of report
Sustainability Promotion activities of
Shinryo Corporation and the Shinryo Group.

Informational Dissemination System
Main Publications such as Pamphlets

SHINRYO Report 2023 (Japanese/English)
Comprehensive corporate activities

Employment information

Reference guidelines and standards
ISO 26000

Date of publication

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

Employment Information

Corporate information

Employment website
https://www.shinryo.com/tech/Technology

January 2023

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

Division responsible for publication
Shinryo Corporation
Sustainability Promotion Department,
Corporate Strategy and Planning Division

WebsiteAll activities such as financial and non-financial information

Various technical catalogs

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

SHINRYO Report 2023

2

Message from the President“Transformation for Growth”

Takeshi Kagami
President,
Representative Director

Start of the 15th Three Year
Management Plan
The domestic construction market in Japan is recovering
investments that temporarily stagnated due to the
COVID-19 pandemic showing active large-scale urban
redevelopment. However, trends in international society
remain uncertain from mid- and long-term viewpoints. The
domestic construction market in Japan has little potential
for explosive growth with concerns about slowdown inmarket growth. In light of various social changes, like
this, hitting the construction industry, I believe we areapproaching a major transformational period unlike
anything we have seen before.
International action to realize a sustainable society is
one of these social changes. Initiatives are taking evengreater action, whether it be to achieve the Sustainable
Development Goals (SDGs) or in ESG investments. Manycompanies have deﬁned corporate visions to realize thissustainable society. Initiatives to achieve a decarbonizedsociety are picking further more momentum, even in
Japan, and have become an important element of market

Company Philosophy• Be fair and straightforward• Do your best with all your effort• Have leadership, irrespective of education, age, or
nationality.

3

SHINRYO Report 2023

evaluations in the construction industry as well.
Additionally, efforts to foster digital transformations are
greatly impacting the construction industry. The industry
as a whole is driving forward technological development
in an effort to introduce IoT, robots, and other digitaltechnologies to construction sites, which is expected toencourage further automation and labor savings in the
future. I also expect construction processes to evolve
together with advancements in the digitalization of work
processes and broader use of BIM.
In addition to these trends in decarbonization anda digital transformation, another challenge we face iswork style reform. The construction industry is right inthe middle of reforming work styles to rectify a working
environment with surmountable overtime in order tocomply with the amendments to the Labor Standards Act
set to go into effect in April 2024.
These work style reforms are an urgent initiative tosolve the labor shortage problem. In the currently active
market though, the priority for companies has been
executing a large volume of construction projects. This
makes work style reforms difficult to achieve.
The Shinryo Corporation will not be defeated by thissituation. The 15th Three Year Management Plan started
in October 2022 as a mission to foster a transformation
for growth. The three-year Transformation for Growthvision proposes four strategies to foster change.
Strategy 1: Improve On-Site Reforms and Engagement
by striving to better innovate the on-site work processes

Message from the President

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

and work style reforms to further enhance productivity
and realize our vision, but also begin to rebuild personnel
policies to encourage the active participation ofdiverse human resources as well as improve employee
engagement.
Strategy 2: Expand Core Business Strategies aims todeliver reliable and high-quality construction services,
always a strength of the Shinryo Corporation, in light ofwork style reforms and a labor shortage. These efforts willbuild a ﬂexible and resilient proﬁt structure responding tochanges in the domestic construction market, anticipatechanges in the global business environment, andstrengthen overseas businesses from both offensive anddefensive standpoints.
Strategy 3: Strengthen Business Development
Capabilities Prioritizing Green and Digital Domains targets
green and digital domains as the major driving forces of
the changes in society. These efforts will cultivate future
core businesses and advance technological and businessdevelopment through more effective collaboration insideand outside of the company.
Strategy 4: Promote a Digital Transformation by
adopting digital technologies to heighten the effectivenessof Strategies 1 through 3 and promote both business anddigital transformations through available digital means.

Toward Transformation
We have executed two major organizational reforms as
part of the 15th Three Year Management Plan right at
the start of the 68th term. The ﬁrst was the launch of
the Digital Transformation (DX) Promotion Division. The
Shinryo Corporation has always actively striven to use
digital technologies, but the launch of the DX Promotion
Division will enhance and bolster our business strengths.
Our second organizational reform renamed theInnovation Hub Key Visual

Research and Development Center as the “Innovation
Hub” and restructured its role within the Shinryo Group.
We not only reconstructed the center building but alsochanged the name to the “Innovation Hub” as a way tomore strongly promote straight forward interactions
and open innovation with industry, government, andacademia. The speed of technological development is
rapidly accelerating. As a new value creation and delivery
platform, the Innovation Hub will become a base ofinnovation as represented by its name. ( P9–10) This
report outlines the 15th Three Year Management Plan aswell as organizes the Shinryo Corporation value creation
process. ( P7–8) By reorganizing our recognition andresponse to social change and risk as well as the value(outcomes) provided to society through our businessactivities herein, I hope to provide all of our stakeholders
with an even deeper understanding of the Shinryo
Corporation. The reason the Shinryo Corporation exists is
to use environmental technology to realize a sustainable
world by preserving the global environment, in addition todelivering original technology around the globe to realizea world ﬁlled with new possibilities. Our management
vision to create a freshening world embodies this passion.
The Shinryo Corporation is prioritizing sustainability
promotion activities. We are participating in the
United Nations Global Compact and promote various
other initiatives via the concepts of the Sustainable
Development Goals (SDGs). One important challengeof the SDGs is deﬁning and integrating KPI’s into
management, which is also positioned as an initiative forcreating a freshening world. ( P26-30)
Shinryo Corporation will continue to work to reﬂect
the feedback we receive from all of our stakeholders inour business activities in order to become a company
speciﬁcally and repeatedly chosen by customers. I ask foryour ongoing support and guidance in the future as well.

SHINRYO Report 2023

4

Message from the Vice Presidents and General Managers
Growth Opportunities Brought by a Paradigm Shift

Yasunori Abe
Representative Director, Executive Vice President
In Charge of Finance and Overseas Businesses

Our founder spoke of corporate growth as becoming a company
that contributes to the society and the people as well as a major
contributor in improving health and industry. Everyone at the Shinryo
Corporation puts that philosophy into practice, which has always
fostered growth. Today, the founder’s philosophy ties contributions
to a decarbonized as well as resilient society, which are important
SDGs priority subjects, and provides a guide for us to contributeto the development of sustainable society. As an environmental
engineering company, the Shinryo Corporation prepares to tackle
these priority issues with its technology. The 15th Three Year
Management Plan invests in the development of digital technologies
and open innovation to expand our technological capabilities. These
efforts are pushing forward preparations for us to capitalize on the
coming paradigm shift as a growth opportunity. With our founder’sphilosophy as an unwavering strength, the Shinryo Corporation willtransform itself without the fear of change to foster growth.

Realizing Advanced & Appealing Construction Sites

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

Shinryo Corporation decided upon four SDGs priority subjects
in 2020. These issues included the realization of a decarbonizedsociety and contributions to a resilient society in addition to deﬁning
our goals to build better construction sites and provide refreshingenvironments unique to the Shinryo Corporation. Amendments
to the Labor Standards Act will apply the upper limit on overtime
in April 2024. The Three Year Management Plan starting the68th term aims to dramatically transform on-site operations andincrease the efficiency of construction sites by more rapidly shifting
to digital and off-site operations. I also believe the harmonizationand standardization of construction sites will realize operational
environments with higher quality and greater safety. We will realize
safe and highly efficient work processes and achieve advanced andappealing construction sites. Our efforts will drive forward the work
style reforms and take on the challenge of realizing a decarbonizedsociety thereafter.

Provision of Reliability and Trust

Takeo Yamaguchi
Director, Executive Vice President
General Manager, Marketing Supervision Division

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SHINRYO Report 2023

Decarbonization has begun to take roots as a central value evenin the construction industry with a vested interest in shaping
a sustainable society. The impact of the COVID-19 pandemic
seems to have diminished, but exchange rates and the prices ofmaterials are adversely affected by international situations as wellas economic affairs, which continue to be highly unpredictable. To
ensure management stability, the Shinryo Corporation will guidemanagement centered upon economic circumstances in Japan andoverseas, societal demands, and customer feedback most of all. A
responsive organization that can take action is critical. The active
domestic construction market has predominately expanded the scaleof construction projects in recent years. In my opinion, a company
must earn the trust and provide peace of mind to its customers inthese uncertain times. I see change as the new normal. We will doour utmost to provide equipment systems with superior energy andresource savings in addition to safe and clear construction quality by
striving to truly understand the goals of our customers.

Message from the Vice Presidents and General Managers

Work Style Reforms Reinforcing Corporate Strengths

Koichi Kaji
Director, Managing Executive Officer
General Manager, Corporate Management Division & incharge of Group Management & New Work Styles

The construction industry in Japan faces the major challenges ofreforming long work hours and building ﬂexible work environments.
Shinryo Corporation launched the “Refreshing Work Style Project”
in 2016 as its initial efforts to reform work styles. As of 2021, we
have taken these reforms to the next level by expanding the projectcompany wide with the Challenge 45 initiative that aims to limit
overtime work to a maximum of 45 hours per month. Further
advancement of these efforts require putting in place preparations
for the construction industry to comply with amendments to the
Labor Standards Act going into effect in April 2024 and realize ideal
work styles after that. The promotion of health management has
also been positioned as a priority management issue. Therefore,
the Shinryo Corporation will build workplaces where diverse humanresources are motivated and each can reach their full potential withthe goal of realizing a refreshing, highly productive company richwith creativity.

Digital Empowerment of On-site Capabilities

Katsuhiko Yakita
Managing Executive Officer
General Manager, DX Promotion Division

The new DX Promotion Division has been entrusted with themission to use digital technologies to promote an operationaltransformation with the aim of achieving the ideal form of theShinryo Corporation as a Future and Environmental Engineering
Company by 2030. Modern digital trends have the momentum totransform the construction industry. We will track new technology
and value emerging around us while also working to reform onsite construction processes and foster a digital transformation.
Shinryo Corporation aims to execute a digital transformation thatstrengthens on-site capabilities, improves productivity, and creates
new value. The visualization of equipment data reveals points ofimprovement while data sharing facilitates a smooth review, which inturn contributes to excellent safe and high-quality construction andthe creation of new products and services. I believe this will also leadto more effective work style reforms and engagement.

United Nations Global Compact and Sustainable Development Goals (SDGs)

Shinryo Corporation
ti signedid th
the UN Gl
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 2023

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
Financial Capital

Planning & Proposal
Research &Development
Energyrelatedfacilities

FY 2021• Capital: 3.5 billion yen• Consolidated net assets:
155.5 billion yen

Plant facilities

Intellectual Capital• Extensive track record in eachbusiness region• Environmental engineering
technology supporting this trackrecord
P19-24

Safety andSaf
EnergyResource
R

Comprehensive
information
systems

Electric
systems

Human Capital
Contribute to a
Resilient Society

ND

BETTEROCESSPRSAFETY A

Globalization

Realize Safe and Highly
Efficient Work Processes

CTIVE C
TA

ATIVE
RE

EARNE
S

Faster Digital
Transformations

Build Refreshing Environments
Rich with Creativity

Shifts in Work/
Life Styles• Roughly 5,500 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

P9-10

Priority Sustainable
Development Goals(SDGs)Natural Capital• Energy consumption: 52,293 GJ

Strengths of Our(FY 2021)*

Population Decline
in Japan*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

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SHINRYO Report 2023

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

OutputOutcomeFinancial Capital

Higher Sustainable Corporate Value
Realization of the Management Vision

Results of Business Performance
FY 2022Air
conditioning
systems• Consolidated operating income:16.6 billion yen• Consolidated net assets: 156.7 billion yen“Create a Freshening World”

P17-18

Sanitation
systems

Security
SavingSavingManagement Vision

Contribute to a Decarbonized SocietyDistrict heating
and coolingsystems• Reduce greenhouse gas emissions• Commendation awards for energy savings• Research and development of technology
to save, generate, and store energy
P31-38Brand Promise

We would like to provide a comfortable
air quality appropriate for where we work,
spend our time, and in the surrounding

Cogeneration
systems

Contribute to a Resilient Society

Installation

natural environment.

• Provision of High-efficiency, Highquality Systems• Praise of technology through theinternal commendation program
P39-46

Realize Safe and Highly Efficient Work Processes

Vision 2030
Engineering Company
Sustainable Decarbonized
Leading-Edge Technology• Quality improvements and prevention oftechnological trouble through construction
executed based on quality manuals• Prevention of human error• Active use of digital technologies
P47-52

Expand Core Business
Strategies
Promote a Digital
Transformation

Business Activities

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.
As a means to this end, we strive toprovide new value through flexible
thinking by heightening the technology

Build Refreshing Environments Rich with Creativity• Increases in the rate of paid leave
taken by employees• Higher employee satisfaction• 2022 Certified Health & Productivity
Management Outstanding Organization• Acquisition of Eruboshi (2 stars) certification
P53-62

we have cultivated up until now evenfurther while sincerely responding to thecustomers.
We will continue to strive to realize a“Freshening World” by pursuing to overgreater value.

Strengthening of Business Foundation
Global Adaptability
Unity
Imagination• Work Style Reform Promotion• Implementation of diversity training• Active investment in education• Active investment in research anddevelopment
P9-10/P53-58

SHINRYO Report 2023

8

Feature 1

Shinryo Innovation Hub
The Research and Development Center has
pioneered research in not only the air
conditioning field but also a wide-range of otherdomains to realize optimal next-generation
environments since its establishment in 1990 as
the Japan’s largest research facility in Tsukuba
City. However, Shinryo Corporation restructured
Research and Development Center in an effort toadapt research and development to the speed ofrecent changes in society and technologicalinnovations.
In October 2022, Shinryo Corporation renamed
the Research and Development Center theInnovation Hub. The Innovation Hub will further
energize research and development efforts as aplatform to create revolutionary products andservices in addition to other new value.

Innovation Hub Key Visual

Visions of the Shinryo Innovation Hub
S
ShinryoCorporation renamed the Research and Development Center the Innovation Hub torrestructure the center as a hub to collaboration with startups and a place to bring together
tthe main players of innovation who have technology and expertise. This is one of theTransformation for Growth initiatives advocated by the 15th Three Year Management Plan,
T
which began this fiscal year. We have spearheaded various joint research projects in the past,w
but there was room to improve the ability for Shinryo Corporation to make business capitalb
out of research and development results. Strengthening capabilities to take advantage oforresearch and development has been a pressing issue, especially in light of the speed of recent
ssocial changes and the speed of technological development. That is why we are transitioning
ffrom a Research and Development Center to an Innovation Hub. This shifts our focus fromcclosed innovation to open innovation. By broadening these innovation activities, Shinryo
Corporation is taking on a surmountable challenge of conducting high-speed research at aChigher level with the aim of developing businesses. I hope our collaboration with many morehpeople in the future will generate a diverse range of new value.
p

Yukitoshi Maeda Executive Officer General Manager, Innovation Hub

Three Themes of Innovation Hub Initiatives▶ Green Transformation (GX)

We will strive to develop technology to save, generate, andstore energy for equipment systems within the premise tofurther a green transformation with the goal to realize net-zerogreenhouse gas emissions from research and development
activities by 2030.

GX

DX▶ Digital Transformation (DX)We will use digital technologies, create products and services
that satisfy customer and societal needs, and reform work andproduction processes with the aim of fostering a digitaltransformation.
▶ Collaboration

Collaboration

We will spearhead open innovation, provide a place for researchand development, such as co-creation field experiments andthe sharing of internal resources, through active collaboration
across business categories as a platform for creating anddelivering new value.
Three Themes of Innovation Hub Initiatives

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SHINRYO Report 2023

Feature

Construction of the New Main Building and Two Challenges▶ Overview of the Innovation Hub Main

Shinryo Corporation takes on two challenges whenrestructuring the Research and Development Center.
The first challenge set out to reduce greenhouse gas
emissions through the power of research anddevelopment. The second set out to test new work
processes using BIM. In October 2022, we began
construction of the main building for the Innovation
Hub as a platform for open innovation.
Challenge 1

Building
Address: 41, Wadai, Tsukuba City, Ibaraki
Lot area: 34,676 m2
Total building area: 2,356 m2
Total floor area: 4,778 m2 (main building)
Structure: Steel construction
Floors: 3 stories above groundStart of construction: October 15, 2022
Completed: End of September 2023 (tentative)

Reduce greenhouse gas emissions

Shinryo Corporation plans to implement the latest air
conditioning systems utilizing its technological expertise andquality product development into the new main building torealize net-zero greenhouse gas emissions from research anddevelopment activities by 2030, but that’s not all. We also aim
to dramatically increase the energy savings of heat source
equipment of existing energy centers on the premise and plan
to upgrade the heat source systems. The development andintroduction of technologies to generate and store energy will
also evolve the Innovation Hub to realize a green
transformation.

Challenge 2

Completed Illustration of the Innovation
Hub Main Building

Main Technology and Systems Tentatively Set for Adoption
Shinryo Corporation plans to not only introduce the latest
systems innovated from the technologies put in place at theShinryo Shinjo Building ( P11–12) but also the technologies
and systems below.
• Dynamic range heat source system optimizing fluctuations intemperature differences and flow rate of heat mediums• Digital twin air conditioning control using real-time CFD*
• Supply water and heat temperature, water and air conveyance,
and air conditioning systems with greater overall energy savings*CFD: Computational Fluid Dynamics

Total BIM Construction ‒ New Work Process Trial

The Ministry of Land, Infrastructure, Transport and Tourism has
adopted the new main building construction as a model projectfor facilitating building production and maintenancemanagement processes using BIM. As a model project, thisinitiative aims to clarify the benefits of using BIM to customers
and establish a construction technology consultancy through aspecialized system and construction company.

We are moving forward with reviews and improvements sothat other construction sites can also implement this initiative.
In the future, we hope to realize greater efficiency and laborsavings on all construction sites by being able to roll out theappropriate and highly efficient construction methods thatalign with the needs of each construction site ( P36).

Collaboration

New Value Creation Through Open Innovation
Shinryo Corporation has collaborated with other institutions in
the past to create new value. For example, a joint research anddevelopment project with other institutions developed andcommercialized optimal heat source control systems andsmart sericulture systems by defining development

requirements while listening to the needs of customers.
The active incorporation of these types of collaborations
hopes to accelerate open innovation to deliver a lot of newvalue to society and customers.

• Optimal Heat Source Control Systems• Smart Sericulture System

These optimal heat source control systems achieve the optimal
operation of equipment by using design and operational knowhow, AI and energy simulation tools for heat source systems toderive operational conditions with the minimal amount ofenergy consumption ( P36).

The Smart Sericulture System creates the optimal environment
to rear silkworms. The sericulture management technology canefficiently and stably produce quality silkworm proteins, whichbecome a raw material for foodstuff, cosmetics,
pharmaceuticals, and petroleum alternatives.

(Operational data, etc.) Outdoor wet-bulb
Operational
statusOutdoor air
temperaturetemperature/load

Temperature/
ﬂow settings(Extracts necessary
information)(Commands for optimal
operation conditions)

Programs Using AI

Unique Programs Using
Prior Simulations
Optimal cooling water
Temperature settings

Outdoor wet-bulb
temperature

or

Load

・
・
・

Temperature: 25°C

Flow: 70%

Outdoorwet-bulb temperature

Collaboration
Listen to the Needs ofCustomers▶ Simulate phenomena via

measurement and analysis

Collaborate with Other
Institutions▶ Develop control technology▶ Test and demonstrateconcepts

Silkworms

MayuFacture® Large Sericulture System

Collaboration
Listen to the Needs ofCustomers▶ Devise a sericulture flow
▶ Develop systems

Collaborate with Other
Institutions▶ Propose technology andbusiness partnerships▶ Review business models

SHINRYO Report 2023

10

Feature 2: Initiatives at Shinryo Shinjo Building

Taking on the Challenge of
Decarbonization
The Shinryo Shinjo Building is a medium-sized building located in
the Tokyo metropolitan area. Shinryo Corporation provides thetechnology and expertise gained from this building as a model casefor ZEB that adopts various decarbonization technologies, which
contribute to the realization of a decarbonized society.

Provision of New Decarbonization Technologies
Shinryo Corporation has been providing technologies that contribute to the
reduction of greenhouse gas emissions (Scope 3: Category 11) produced by runningbuilding equipment after delivery to customers. Society is taking significant action toachieve decarbonization and demands new technologies.
For the construction of the Shinryo Shinjo Building, Shinryo Corporation worked
jointly with Mitsubishi Jisho Design Inc. and Shibaura Institute of Technology(Professor Takashi Akimoto) in efforts to research and develop decarbonization
technologies from the planning stage. To embody ideas obtained in reviews oftechnical issues and solutions, we have established new technologies by conducting
CFD (Computational Fluid Dynamics) analyses, full-scale experiments, and field tests.
Established Decarbonization Technology Processes

CFD Analyses

Full-scale Experiments

Realization of ZEB Ready
The introduction of various decarbonization
technologies reduces primary energy
consumption 54% from reference values
at the design stage to achieve ZEB Ready.
These technologies have also realized a
63% reduction thanks to improvements
after the systems are up and running.
Additionally, Shinryo Corporation always
strives to expand energy savings, such as
developing and adopting optimal heatsource control systems with new links tospreadsheet software.

Field Tests

Effective Reductions of Primary Energy(MJ/m2 per year)
Consumption*

1,094

54%

reduction

63%

reduction

503

Base

410

DesignResultFirst Fiscal Year
Operation Began*ZEB ratings exclude the power outlet consumption

Social Evaluation
Shinryo Corporation has received many environmental certifications and praise forits energy-saving technologies and decarbonization initiatives as well as many
awards in the world.
Main Commendations• 2023 ASHRAE*1 Regional XIII*2 Technology Award First Place Winner• 2022 ASHRAE Japan Chapter Technology Award First Place Winner• 60th SHASE*3 Award for Distinguished
Environmental Certification
Technologies• 10th Carbon Neutral Award Kanto Branch• 18th/20th Environmental and Equipment
Design Award (Total of 3 Awards)*1 American Society of Heating, Refrigerating and AirConditioning Engineers*2 Asian regions including Japan, Singapore, South Korea,
and Taiwan*3 The Society of Heating, Air-Conditioning and SanitaryEngineers of Japan

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SHINRYO Report 2023

Highest BELS
Certification - 5 Stars

LEED v3 GOLDFeature

Main Development Technologies
6-8F Offices
Shinryo Shinjo Building
Completed: July 2020
Total floor area: 4,619 m2
Building application: Office
Location: Chiyoda-ku, Tokyo
Builder: Shinryo Corporation

Dynamic Range Radiant Air Conditioning System

This new radiant air conditioning system integrates various technologies to maximize
the use of natural energy, such as a variable water volume and variable temperature
control that optimizes the temperature range according to heating load and aprecool cooling tower that uses outdoor air to cool water. The system uses naturalenergy approximately 70% of the time during cooling annually.

4 Variable water volume andvariable temperature control
Air-cooled chiller
used whennecessary

Radiant airconditioning panel
3 Variable return watertemperature cascade
control

2 Piping system withno heat exchanger

1 Precool cooling tower

7F Office3-5F Office

Dynamic Range Radiant Air Conditioning System

Variable-Air-Volume Coanda Air Conditioning System

This air conditioning system using the Coanda effect creates a jet of air flowing along
the ceiling, which eliminates the need for duct space in the ceiling to enable a shorter
floor height. This system realizes greater energy savings of blower power used in
combination with Air-Soarer®* constant autonomous airflow outlets that can deliver
a uniform airflow to every corner of the room, regardless of the strength of airflow.
Shorter Floor Height

Air-Soarer

OfficeAir
Conditioner

4F Office

Variable-Air-Volume Coanda Air Conditioning
System*Air-Soarer® was developed jointly by Mitsubishi Jisho Design Inc., Shinryo Corporation, Shibaura Institute of Technology,
and Kyoritsu Air Tech Inc.

Facility Management Rooted in the Community

Kanda-Tacho, where Shinryo Shinjo
Building is located, still has the quaintcityscape of the oldest Edo town. We
aimed to create an environmentallyfriendly building incorporating the
traditional shopping and residential street
in a way that values the connection withnature and people in the alleyway space.
The local community uses a section of theentrance as a place to store the portableshrine for the Kanda Festival.

Natural Ventilation Using Stairways

Real-time Environment Visualizer

As the seasons change, naturalventilation uses ventilation windows
installed at the top of stairways. Thesestairways act as a buffer zone during
the summer and winter to reduce
invasive heat or chill from outside.

This system can check indoor
environments in real time. Engineers use
this information to analyze and improveindoor environments. This system also
raises awareness about energy savings
because staff working on each floor
can view this data on the web.

OfficeStairway

Stairway

Temperature Distribution

SHINRYO Report 2023

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 cultivatedto its efforts in developing people toward achieving the management vision to “Create a Freshening World.”
1956-1968
Founding and Trajectory
1956• Established our Head Office at 45 Nishikubo
Tomoecho, Minato-ku, Tokyo and founded ourcompany with five million yen in capital• Received our first order for cooling equipment
work at the Kaori cafe and restaurant
1957• Received an order for Shin- Otemachi Building,the largest building in Japan at that time, andestablished the foundation of our company• Received an order for full retrofitting of
construction equipment at the Fuji Tsushinki
Manufacturing Kawasaki plant
1958• 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 andEquipment 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 Office1968• Deployed three engineers on a fact-finding
mission in the U.S.A.
• Introduced a skyscraper building application andrefrigerator computer control at the World Trade
Center Building

1969-1977
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 andcooling system at the Senri New Town Chuo
District Center• Received an order to install a district heating andcooling system in Shinjuku Fukutoshin District
1970• Completed the new headquarters building• Established the industry’s first research center
for air conditioning technology• Established the Nuclear Power Plant Department
to enter the energy plant industry for nuclear
power use
1971
• Opened the Chugoku Branch
1972• Received the first order for full-fledged overseas
work at the Vietnam Cho-Ray Hospital• Opened the Sapporo Office
1975• Opened the Tohoku Branch
1976• Received the first order for aquarium equipment
renovations of the Izu Mito Natural Aquarium(currently Izu Mito Sea Paradise)
1977• Opened the Maizuru Plant• Received order for the first phase construction of
the Kwun Tong Hong Kong Subway Line

1978-1987
Evolution of Japanese Business andExpansion of Overseas Business
1978• Opened the Hong Kong Branch as a base foroverseas expansion
1979• Established overseas department as a major
pillar of business for overseas expansion• Acquired the Level 1 Plumbing Registration from
the Ministry of Construction (currently the Ministryof Land, Infrastructure, Transport and Tourism)• Developed the NAIAS sludge atmosphericflotation concentrator
1982• Established a local company in Hong 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 in Thailand (THAI
SHINRYO LTD.)1987• Established a local company in Taiwan (TAIWANSHINRYO CO., LTD.)

Cho-Ray Hospital
Air conditioning and sanitation systems(Vietnam)Shinjuku Fukutoshin District
District Heating and Cooling System

Shin-Otemachi Building
Air conditioning system

Established

1956
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 Report 2023

The First Members Training at the
Takamatsu Dormitory

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

History of Shinryo Corporation

1988-1997
New Mission and Restructuring ofCore Businesses

1998-2008
Establishment of Advanced
Technology Regions2009 to Present
Perseverance and Organizational
Development to Expand Business Regions

1990• Opened the Research and Development 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
1992• Opened the Technical Supervision Department
and Safety Supervision Department• Passing of Founder Chairperson Masaru Kagami
1994• Established a local company in Indonesia (PT.
SHINRYO INDONESIA)1995• Received an order for the first overseas districtcooling system at the Kuala Lumpur International
Airport1998• Acquired the ISO 9000s certification• Began development of numerical fluid analysis
technology using super computers• Received an order from the Okinawa Churaumi
Aquarium
2001• Acquired ISO 14001 certification• Received an order for a district heating andcooling system in the Marunouchi District
2002• Received an order for the Sharp Corporation
Kameyama Factory
2003• Released the 3D-CAD “S-CAD” working drawing
CAD for construction equipment
2005• Opened the Middle East (Dubai) Branch
2007• Established a local company in Vietnam(SHINRYO VIETNAM CORPORATION)• Opened the Abu Dhabi Branch
2008• Registered the Research and Development
Center as a Certified Environmental Survey andOdor Measurement Service

2009• Started renovations of the headquarters building(energy saving Eco-project at the headquarters building)2010• Established the Control & Instrument
Engineering Division
2012• Commemorated for the long-time certification of
the environmental management system• Opened the Working Drawing Center• Developed the Space Scanning System using 3D technology
2014• Drafted the “Create a Freshening World”
management vision• Established the CSR Promotion Division andCompliance Promotion Division• Introduced the overseas practical dispatch
system and the overseas short term training
system for new employees
2015• Began on-site training for engineers from overseas
2017• Standardized an English logo
2018
• Established a local company in India (SHINRYOSUVIDHA ENGINEERS INDIA PVT. LTD.)
2020• Moved Headquarters (1-6-1, Yotsuya, Shinjuku-ku, Tokyo)
2022• Launched the DX Promotion Division• Renamed the Research and Development Center
to the Innovation Hub and restructured its role
within the Shinryo GroupTokyo DomeAir conditioning System

Sharp Corporation Kameyama Factory
Air conditioning System

Petronas Penapisan (Melaka) Sdn Bhd
Cogeneration Plant
Plant facilities (Malaysia)

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

THAI KYOWA BIOTECHNOLOGIES CO., LTD.
Plant facilities/civil engineering andconstruction (Thailand)

The Hong Kong and Shanghai Banking
Corporation Limited, HSBC Main Building
Air conditioning, sanitation and electric
system (Hong Kong)

THE LANDMARK TOWER YOKOHAMA
Air conditioning System

1990

2006

2015

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

Moved the Kofu Dormitory to Yokohama

Start of Japan Invitation Program forOverseas Group Companies

1992

The Kofu Dormitory is used as a facility for overall training in addition to new
employee training and education

2016

1990〜

Passing of Founder Chairperson Masaru
Kagami

2000〜

2010〜

Start of Shinryo Group-wide New
Employee Training

SHINRYO Report 2023

14

Corporate Profile

Corporate Information

List of Executives

Company Name

SHINRYO CORPORATION

Headquarters Address

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

President,
Takeshi Kagami
Representative
Director

Date of Establishment

February 23, 1956

Number of Employees

2,245 people (non-consolidated)
5,348 people (including Group companies)(As of September 2021)

CapitalRepresentative Yasunori Abe
Directors
Tetsuro Kochiya
Directors

3.5 billion yen(Special 1) No. 3447 issued by Minister ofLand, Infrastructure, Transport and Tourism

Outside Audit Toshihito Furuya& Supervisory Koichi Kubo
Board Member

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(Ordinary 1) No. 3447 issued by Minister ofLand, Infrastructure, Transport and Tourism

Date of License

March 11, 2020

Licensed BusinessFire Protection Facilities

Takeshi Kagami*
President &Chief Executive
Officer
Executive Vice Yasunori Abe*
Presidents
Tetsuro Kochiya*

General Manager, Technical Supervision
Division & in charge of Group Healthand Safety & Compliance
Division

SeniorManaging
Executive
OfficerManaging
Executive
Officers

Senior registered architect office
Registration Number

No.46232 issued by Governor of Tokyo

Date of Registry

April 10, 2021

List of qualiﬁers (Japan)
Number of people

Professional Engineer Japan (Engineering Management)

3

Professional Engineer Japan (Environmental Engineering)

42

Professional Engineer Japan (Mechanical Engineering)

3

First-Class Plumbing Work Operation and Management
Engineer

1,159First-Class Electric Works Execution Manager

131First-Class Building Operation and Management Engineer

19First-Class Civil Engineering Works Execution Managing
Engineer10

1st class Qualiﬁed Certiﬁed Electrician

32

3rd Class Electric Works Specialist

32

Class A Fire Defense Equipment Officer

340

Class B Fire Defense Equipment Officer

20

1st-class Kenchikushi (Architect)

43

Qualiﬁed Person for Energy Management

126

Building Facilities Diagnostic Technician

91

Building Mechanical and Electrical Engineer

245

The First Level Instrumentation Engineer

374

Professional Engineer(CxPE: Commissioning Professional Engineer)

In Charge of Finance and Overseas
Businesses

Takeo Yamaguchi* General Manager, Marketing Supervision

Main Registered Business (Japan)

Name of certiﬁcation

Non-Executive Director
Outside Director

Audit &
Haruaki Kotani
Supervisory
Yoji Kawai
Board Member

Construction Business License (Japan) (As of January 2023)
License Number

Takeo Yamaguchi
Koichi Kaji
Sayaka Kagami
Hideaki Fujizuka

Executive
Officers

Takeshi Egi

General Manager, Osaka Branch & incharge of Western Japan

Takao Watanabe

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

Koichi Kaji*

General Manager, Corporate
Management Division & in charge ofGroup Management & New Work Styles

Katsuhiko Yakita

General Manager, DX Promotion Division

Tatsuji Yoshimura

General Manager, Asia Business Division

Kazuto Inabe

General Manager, Urban Environment
Division

Satoru Narisawa

General Manager, Nuclear Power Plant
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

General Manager, Corporate
Communication Department

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

Hideyuki Nagasawa General Manager, Kyushu Branch
Shuichi Abe

Deputy General Manager, Marketing
Supervision Division

Takehiro Masuda

General Manager, Nagoya BranchToshiyuki Shimizu

Deputy General Manager, Osaka Branch

Shuji Chiba

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

Toshiya Terao

General Manager, Corporate Strategy& Planning Department & Real Estate
Development Department & in chargeof Sustainability Promotion

Hideki Nagato

Deputy General Manager, Urban
Environment Division

4*Executive Officers also acting as Directors

15

SHINRYO Report 2023

Corporate ProﬁleOrganizational Chart
CHP Promotion DivisionMarketing Supervision
Division

Procurement Department
Quality & Environment
Management Department

Technical Supervision
Division

Safety & Health Promotion
Department
Production Engineering
Department
Digital Promotion
Department

DX Promotion Division

Mission-critical Systems
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

Gifu sub-branch office/Shizuoka office/Hamamatsu office

Nagoya Branch

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 2023

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[Million yen]
300,000

240,000

246,402

243,890

192,789

190,014

209,800

Operating income[Million yen]
300,000[Million yen]
20,000259,671

213,157

259,072
228,884

240,000

16,989233,297

200,743
176,310

183,955

199,166
12,000180,000

120,000

120,000

8,000

60,00060,000

4,000

2019

Consolidated

2020

2021

Non-consolidated

SHINRYO Report 2023

2022

0
[FY]

2019

Consolidated

2020

2021

Non-consolidated

16,67015,084
15,44815,21015,056
14,914
13,29316,000180,000

0

17

266,342276,913

Net sales

2022

0
[FY]

2019

Consolidated

2020

2021

Non-consolidated

2022

[FY]

Corporate ProﬁleBusiness Network82

Net sales

bases

63 Japanese bases
19 overseas bases

Number of Employees

259.0

5,348

billion yen

199.1 billion yen (non-consolidated)people2,245 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[Million yen]
25,000SHINRYO TECHNICAL SERVICES LTD.

[Million yen]
175,000

24,81720,00016,358 15,777 16,648
15,391

17,342
17,251

132,203

140,000

156,720

155,590152,069

145,278

15,000SHINRYO (HONG KONG) LTD.

Net assets

136,708

141,219

TAIWAN SHINRYO CO., LTD.
140,156

16,629SHINRYO (PHILIPPINES) CO., INC.
THAI SHINRYO LTD.

105,000

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

35,0000

2019

Consolidated

2020

2021

Non-consolidated

2022

0
[FY]

PT.SHINRYO INDONESIASHINRYO VIETNAM CORPORATION
2019

Consolidated

2020

2021

2022

[FY]

SHINRYO SUVIDHA ENGINEERS INDIA
PVT. LTD.

Non-consolidated

SHINRYO Report 2023

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, andleadingedge production environments in addition to city-friendly and community-friendly district heating andcooling systems and comprehensive information systems that support energy savings. Shinryo Corporation will
earn the trust 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 Report 2023

Corporate ProﬁleBusiness Items
Design and construction ofvarious 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

Electric systems

Comprehensive information systems

Plant facilities

Aquarium facilities

Cogeneration systems
Power generation system/heat recovery
systemElectric systems
Power reception and transformer systems/
main and sub main power distribution
systems/lighting and small power systems/
extra low voltage systems/lightning
protection systems/power generation systems

Automatic control service work
Automatic control systems/building
management systems/industrial automation
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 ﬁrehydrant system, sprinkler system 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 systems

Design and construction of building
Clean rooms/plant buildings/interior ﬁnishingwork/associated construction work forbuilding services/general building facilities

Sales 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 2023

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 Report 2023

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

Air conditioning
SystemCorporate ProﬁleDistrict Heating
and Cooling System

Otemachi, Marunouchi 1-chome & 2-chome
and Yurakucho Districts DHC(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]• Sapporo Station area district heating and cooling systems(Sapporo City, Hokkaido)• Narita International Airport central heating and cooling plant(Narita City, Chiba)• Adachi Metropolitan Taxation Office(Adachi-ku, Tokyo)• Marunouchi Center Building/Shin-Marunouchi Center Building(Chiyoda-ku, Tokyo)• Hisaya-odori Nagoya Municipal Subway Station(Nagoya City, Aichi)

District Heating
and Cooling System

Minato Mirai 21 Central District DHC(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:

70 (Share: 51%)
51 (Share: 38%)

Hokkaido Area
District heating and cooling systems: 2
District with sc-brain: 1
Chubu/Hokushinetsu Area
District heating and cooling systems: 9(Share: 75%)
District with sc-brain: 5(Share: 45%)

Kansai Area
District heating andcooling systems: 7
District with sc-brain: 4• Osaka Station area district heating and cooling systems(Osaka City, Osaka)• Japan Post Shin-Osaka Post Office(Osaka City, Osaka)• Fukuoka 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: 51(Share: 60%)
District with
sc-brain: 40(Share: 48%)

SHINRYO Report 2023

22

JapanEnergy Centers, Plants, Hospitals, Building Complexes, Aquariums,
Theaters, and Sports Facility

Hareza Tower(Toshima-ku,
Tokyo)

Kiyohara Smart Energy Center(Utsunomiya City, Tochigi Prefecture)

Civil Engineering andConstruction of Plant Facilities

Air Conditioning
SystemYokohama
City Hall(Yokohama
City, Kanagawa
Prefecture)

TOCHIGI SPORTS PARK EAST AREA
(Utsunomiya City, Tochigi Prefecture)

Kochi Prefectural Ashizuri Aquarium(Tosashimizu City, Kochi Prefecture)

Shiseido Fukuoka Kurume Factory(Kurume City, Fukuoka Prefecture)

23

SHINRYO Report 2023

Air Conditioning andSanitation System

Rearing
SystemIUHW Narita Hospital

Air Conditioning
SystemTakasaki City Theatre(Narita City, Chiba)(Takasaki City, Gunma Prefecture)

Air Conditioning
SystemAir Conditioning andSanitation System

Air Conditioning
SystemCorporate ProﬁleCommercial Complexes, Medical Facilities, Public Facilities,

Overseas
海外海外 Transportation, Energy Plants and Bio Plants

Air Conditioning and
Mechanical Ventilation Systems

Marina Bay Sands Integrated Resort(Singapore)

National Centre for Infectious
Diseases (Singapore)

Air Conditioning and
Mechanical Ventilation Systems

Petronas Penapisan (Melaka) Sdn Bhd
Cogeneration Plant (Malaysia)

Jewel Changi Airport

Air Conditioning and
Mechanical Ventilation Systems

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

Air Conditioning, Sanitation,
Firefighting and Electric Systems

District CoolingDistrict Cooling Plant for the New Abu Dhabi
SystemInternational Airport Terminal (United Arab Emirates)(Singapore)

Hong Kong MTRC Airport Express
Hong Kong Station (Hong Kong)

Plant
Facilities

SHINRYO Report 2023

24

Shinryo Corporation Sustainability Promotion Activities
26

Sustainability Promotion Management

31

Initiatives to Address Priority Subjects
Priority Subject 1 Contribute to a Decarbonized Society

31 Adaption to Climate Change

NIZED S
BO

TY
CIE
O

DECA
R

31

32 Environmental Management System (EMS)
33 Initiatives to Mitigate Greenhouse Gas Emissions from the
Supply Chain

39

39 Yaesu Energy Center

NFRASTR
TI

TURE
UC

RESILIEN

Priority Subject 2 Contribute to a Resilient Society

41 Hiroshima City North Medical Center Asa Citizens Hospital
43 Suntory Kita-Alps Shinano-no-Mori Water Plant
44 Osaka Umeda Twin Towers South
45 Tokyo Metropolitan Government Building No. 1
Air Conditioning System Renovations
46 New National Cancer Centre Singapore

ND

Priority Subject 3 Realize Safe and Highly Efficient Work

Processes

BETTEROCESSPRSAFETY A

47

47 Quality Management System (QMS)
49 Initiatives to Improve On-site Construction Productivity
51 Health and Safety Initiatives
52 CSR Procurement Guidelines

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 Report 2023

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). In the future, Shinryo Corporation will
promote more specific activities with the hope of better
integrating SDGs into management.

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

United Nations
Global Compact

SDGs

Sustainability Promotion System

SHINRYO Report 2023

26

Sustainability Promotion System
Aim too SolveSolo ve Social Issues T
Through BusinessShinryo Corporation has provided new value to society through business with theSh
aim to realize solutions to social issues as well as its management vision to createaia refreshing world. We have been determining priority SDG subjects (materiality),
setting Key Performance Indicators (KPI), and pushing forward practical initiatives
sesince 2020. During the second year of these initiatives, the Shinryo Corporation has
si
put in place a system to continually set and manage KPI while collecting data.
pu
In the future, these activities will become commonplace within the Group withthe hope of overcoming problems, integrating management and sustainability, andthenhancing corporate value.
enToshiya Terao Executive Officer in Charge of Sustainability Promotion

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 BasicPlan• 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 goals 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

27

SHINRYO Report 2023

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.

Sustainability Promotion Management

Review Process
Shinryo Corporation has furthered its scrutiny into the social
issues requiring attention for the sustainable development ofsociety since 2017 through its businesses. We examined thepriority subjects to emphasize incorporated concepts from theISO 26000 and Sustainable Development Goals (SDGs) aroundthe Shinryo Corporation 14th Three Year Management Plan
while referencing feedback from the management team andoutside experts and then decided on important 2020 priority
subjects.

Review Process
Organize priority subjects(materiality) based on thesefactors

14th Three Year Management Plan
ISO 26000 Core Subjects
Sustainable Development Goals

Top management approved
these priority subjects

Determine Priority Subjects(Materiality)

Process for Considering Priority Subjects

Four Priority Subjects
Relevant SDGs

Relevant SDGs

Priority Subject 1

Priority Subject 2

Contribute to a
decarbonized society

Contribute to a resilient
societyNFRASTRTI

RESILIENDECAR

NIZED S
BO

Relevant SDGs

Priority Subject 3

TURE
UC

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 decarbonized society.

Relevant SDGs

Priority Subject 4

Build refreshingenvironments rich withcreativity

Realize safe and highly
efficient work processes

EARNE
S

CTIVE CTA

SAFETY A

BETTER

ND

ATIVE
RE

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.

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 operations.

SHINRYO Report 2023

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.
Ongoing Shinryo Corporation efforts have striven to raise employee awareness about how our businesses connect to solutions

Priority Subjects (Materiality)

PolicyAction Plan

• Reduce Scope 1 direct greenhouse gas emissions• Reduce Scope 2 indirect emissions associated with energy sources
Priority Subject 1

Reduce greenhouse gas emissions frombusiness activities

Contribute to a
decarbonized society

Promote designs and proposals to reduce greenhouse gas emissions
from Scope 3 Category 11 emissions (use of sold products)

Strive to employ the latest
energy-saving technologies

Broadly promote energy-saving technology throughout the society
by soliciting entries for external energy-saving commendations andother such initiatives

Contribute to building resilient social
infrastructure• Provide resilient, efficient, and high-quality equipment and systems• Recognize technology through an internal commendation program(President’s Awards)

Improve productivity on construction
sites

Streamline construction sites and promote a digital transformation

Priority Subject 3

Provide high quality equipment andsystems

Improve quality and prevent technical issues through construction
carried out according to a quality manual

Realize safe and highly
efficient work
processes

Manage safe and work-friendly
constructions sites

Prevent human error by strictly following operational proceduresthat incorporate risk management

Improve fair evaluations of engineers
and construction quality

Promote the expansion of the construction career up system

Achieve the ideal work style for the
Shinryo Corporation• Work-friendly environment with arefreshing 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 of time

• Fully execute the medium- to long-term plans and achieve thethree-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 compliance education

Priority Subject 2

Contribute to a resilient
society

Priority Subject 4

Build refreshingenvironments rich withcreativity

KPI Decision Making Process
Shinryo Corporation reviewed KPI together with the 14th
Three Year Management Plan and its internal promotion
targets based on the various goals advocated throughout
society and the industry at large.
As the Shinryo Corporation furthers activities in the future,
we will freely review targets and add KPI according to changes
in social requirements and trends. This will ensure even more
effective activities.

29

SHINRYO Report 2023

Various Goals Advocatedthroughout Society andIndustry at Large
14th Three Year Management Plan
EMS, Health and Safety,
Work Style Reform and Other
Internal Promotion Targets

Organize these goals
and targets and review
effective policies andobjectives to address
the four priority
subjects (materiality).

Sustainability Promotion Management

to SDG issues to ingrain these activities in the attitude and action of everyone. Additionally, we are actively creating opportunities
to deepen employee understanding of the SDGs, such as e-learning addressing SDG themes and cross-organizational expansion
of KPI activity results through committee members executing sustainability initiatives.

Key Performance Indicators (KPI)

FY2022 Activity Results

Reduction rate of Scope 1 and 2
emissions• Base year for greenhouse gas
reductions: 2009
• Greenhouse gas emissions- 50% reduction by 2030
- Net zero by 2050

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

100% implementation rate

Reference
Priority Sustainable
page
Development Goals (SDGs)

30%

31, 34*FY 2021 Results

100%

34

—

—

Award-winning technology
included in the SHINRYO
Report——Main initiatives and awardwinning technology included in
the SHINRYO Report

39–46

—

—

Main initiatives included in the
SHINRYO Report36, 48-50

100%

47–48

Construction cycle implementation
rate

100% implementation rate

Frequency rate

Frequency rate of 0.40 or less

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

Registration rate of 80% or more

11-12, 35, 50

0.28*FY 2021 Results

51

79%

51

3.2

55

4.0 or higher
Employee satisfaction*Index based on internal research(Evaluation on a scale from 0 to 5)

87%

Rate of annual paid leave taken by
employees

Year-on-Year Increase(2 points increased compared toprevious fiscal year)

54

Participation rate in compliancetraining

100% participation rate

93%

62

Review target values
considering thecommitment andeffectiveness.

Make adjustments witheach department
promoting KPI(management and datacollection).

Deliberate these target
values among themanagement team.

Top management
approved these priority
subjects.

Set KPIKPI Review Process

SHINRYO Report 2023

30

Relevant SDGsNIZED S
BO

TY
CIE
O

DECA
R

Initiatives to Address Priority Subjects

Contribute to a Decarbonized Society
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
business activities from design, installation and maintenance to research and development as a way
to help realize a decarbonized 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 develop a sustainable society. Shinryo
Corporation will promote the five items below to ensure
effective initiatives toward solutions to realize this target.
As KPI related to the SDG priority subjects, we aim to reduce• 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

Scope 1 and 2 greenhouse gas emissions 50％ compared to2009 levels by 2030 as part of our efforts to realize carbon
neutrality by 2050. Our efforts in Scope 3 emissions have set a
100％ implementation rate of design proposals for greenhousegas emission reductions during system operations as a KPI andwill strive to propose better technologies to customers. We arealso ramping up our research and development of newtechnologies that will contribute to these Scope 3 emission
reductions.

KPI
Greenhouse Gas Emissions Scope 1 and 2 (Compared to 2009)50
Net Zero• 2030% Reduction• 205030% Reduction as of FY 2021
KPI

Outline of KPI for Priority SDG Subjects (Detailed List on

P34

P29-30)Road Map to 2050
2050 Net Zero Greenhouse Gas Emissions

Labor Savings on Construction Sites
Promotion of BIM and a Digital
Transformation

Leverage technologies that use
renewable energy
2030

Net Zero Greenhouse Gas Emissions from Researchand Development Activities

Acceleration of Research and Developmentof Decarbonization Technologies

After FY 2017

Restructuring of Researchand Development Center(Current Innovation Hub)Identification and Mitigation ofGreenhouse Gas Emissions

Work Style Reform
2020

Renovations to Save Energy at Old
Headquarters Building

Promotion of Environmental
Management Systems (EMS)2010

Base year: FY2009

SHINRYO Report 2023

2030

2016-2024

2010-2019

31

2040

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 from the Management
System Assessment Center in 2001.
Our EMS sets environmental targets intended to help realize
a decarbonized and recycle-oriented society and executes
environmental conservation initiatives. We actively conduct
internal briefings, employee education, and other awareness-raising efforts to respond to even more stringent laws andregulations.
In modern times where everyone must adapt to climatechange, the importance for companies to fulfill their corporatesocial responsibilities to achieve SDGs and realize carbon
neutrality is greater than ever before. Shinryo Corporation willbolster its EMS initiatives to contribute to the realization of adecarbonized society.

Basic Philosophy
As a company connected to the environment, Shinryo Corporation has been practicing environmental preservation throughbuilding 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 balance business 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
response measures in addition to continually improving theEMS.
224 employees took the EMS internal auditor training
program in July 2022. Internal auditing further enhances the
EMS check functions and promotes environmental
conservation activities.
Environmental Promotion System

Company-wide

Shinryo Corporation supervises and manages environmental
efforts throughout the entire company through environmental
management supervisors executing directives from the officer
in charge of environmental activities. Environmental managers
responsible for EMS operations in administrative sections ofcorporate divisions and branches are appointed under thegeneral managers, branch managers, and representatives of
the administrative sections to build systems to promote
environmental conservation activities.
The environmental management supervisors andenvironmental managers guide the response to environmental
risks and opportunities across a wide range of areas fromenvironmental targets, legal and regulatory complianceinitiatives, and internal environmental training to emergency

Executive in Charge ofEnvironmental Activities

Environmental Management
Supervisor
Promotion Committee
Secretariat of EMS Office

ISO 14001-certified Divisions, Branch Offices, andAdministrative Sections• 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

Corporate Divisions, Branches
and Administrative Sections• Tokyo Metropolitan Area Division

General managers, general managersof branches and administrative
section representatives
Manager Supervising
Environmental Management
EMS Promotion Committee
Secretariat
Each department and office*Name changed from the Research and Development Center in October 2022.

SHINRYO Report 2023

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 8,340,000 ton-CO2 emissions in fiscal 2021,
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
Output from Business Activities

Category 3
Fuel and energy
activities not includedin Scope 1 and Scope 2

Scope 1
Direct GHG
emissions(from our facilities)

Category 1

Category 4

Purchased goods andservices

Upstream transportationand distribution

Scope 2Category 11

Category 12

Use of soldproducts

End-of-life
treatment ofsold products

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

Category 2
Capital goods

Category 6
Business travel

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

FY2021 Scope 1, 2 and 3 Calculation Results*1 (Construction Sites for Properties with Orders of 30 Million Yen or More)
Category

Calculation scope

Scope 1

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

1,066

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

2,024

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

8,337,569

1 Purchased goods and services

Emissions from resource harvesting and manufacture of sold goods

237,090

2 Capital goods

Emissions from manufacture and construction of capital assets

131

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 offices

369

4 Upstream transportation and distribution

Emissions from transportation of goods from seller to construction sites

29,5695 Waste generated in operations

Emissions from disposal of waste produced on construction sites

4,356

6 Business travel

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

804

Emissions from electricity consumption of transportation agencies used
for employee commuting

539

Scope 2
Scope 3Category *2

7 Employee commuting
11 Use of sold products
12 End-of-life treatment of sold products
Total of Scope 1 to 3

Emissions from the operation of building equipment after delivery(operation period set to 15 years)
Emissions from duct and piping waste during demolition

Result (ton-CO2)

8,064,422
289
8,340,659*1 Calculations based on the Basic Guidelines on Accounting for Greenhouse Gas Emissions throughout the Supply Chain (Ver2.4) 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 Report 2023

Initiatives to Address Priority Subjects

KPI

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

KPI

Scope 1 and 2 Reduction Initiatives
The realization of a decarbonized society and carbon neutrality
are global objectives. Shinryo Corporation aims to reducegreenhouse gas emissions produced by its business activities
by 50% compared to 2009 levels by 2030 and reach net-zeroemissions by 2050.
Shinryo Corporation has always been putting its strength
behind broader decarbonization and energy savings. We rolled
out the energy saving Eco-project to renovate the oldheadquarters building for energy savings in 2011, while
introducing several decarbonization technologies into theShinryo Shinjo Building erected in 2020 ( P11-12). Presently,
our initiatives are working to further greenhouse gas emissions,such as planning the reconstruction of the Innovation Hub( P9-10).

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

CO2 emissions [tons per year]

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

4,000

30%

2030
Reduction
Target

2,000
1,000
0

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2030

CO2 emission reduction rate

[FY]

26

%

construction sites through transport. ( P49-50)
Shinryo Corporation has actively used these technologies toimprove productivity and achieved a 26% reduction in CO2emissions in fiscal 2022.

Recycling rate

90%

Industrial Waste Emissions and Recycling Rate(t)

Industrial waste emissions

25,00087

20,00015,00090(%)

Recycling rate

88

14,74912,3689088
18,533

17,352100
80

16,59260

10,000

40

5,000

20

2018

KPI

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

reduction

3,000

0

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 operation methods with effective energy
savings as well as high-efficiency systems through airflow andtemperature distribution simulations using the world’s leading
CFD* technology and efforts to adopt and commission highly
efficient equipment and systems that reduce energy
consumption.

50%

reduction

Scope 3 (Category 5) Reduction Initiatives
Shinryo Corporation strives to properly sort and recycle waste to
reduce the greenhouse gas emissions produced by processes tomanage industrial waste. Of the industrial waste produced on
construction sites, Shinryo Corporation is promoting recycling offour main materials (concrete scrap, metal scrap, waste plastics,
waste glass and ceramics, and pottery). Outsourcing of recycling
to industrial waste disposal and recycling companies withsuperior processing technology and the use of National Permit
System for waste disposal companies ( P37) have achieved arecycling rate of 90% in fiscal 2022.

%

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

Scope 3 (Category 1 and 4) Reduction Initiatives
Efforts to improve productivity and efficiently manage
construction sites by taking advantage of ICT technologies
based on appropriate construction plans are vital to reducing
greenhouse gas emissions in every process from theproduction of materials and equipment purchased on

30

2019

2020

2021

2022

Design proposal implementation rate

0
[FY]

100

%

(Target: 100%)

Implementation Rate of Design Proposals
(%)

100

80

78

2018

2019

75

95

97

100

2020

2021

2022

50

25

0

[FY]

SHINRYO Report 2023

34

Contribute to a Decarbonized Society

Scope 3 (Category 11) Reduction Initiatives
Shinryo Corporation promotes greater decarbonization andenergy savings in construction equipment as anenvironmental 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.

Environmental and Equipment Planning for a DecarbonizedHigh-rise City Office Building
Yokohama City Hall
As a flagship of decarbonization in Yokohama—SDGs Future
City—Yokohama City Hall is a high-rise city office building
integrating advanced architectural, structural, and systemtechnologies that has built and implemented a BEMS cloudsystem complying with the Ministry of Economy, Trade, andIndustry information security guidelines. The integration of
construction plans and various new technologies, the active
participation of city hall staff in management, the use ofafterFIT* energy, and other measures realized 100% net use ofrenewable energy in 2020, earning Yokohama the ZEB Ready
and CASBEE Yokohama S Rank certifications.
Shinryo Corporation was in charge of installing the air
conditioning system. We strove to fully increase productivity
using BIM, unit construction methods, off-site logistics, andvarious other approaches. We encouraged the effective use ofnatural ventilation consistent throughout the entire building,sensible/latent heat separated air conditioning systems,
visualization using real-time measurements, and many othernew technologies. All of these efforts have contributed toSociety of Heating, Air-Conditioning and SanitaryEngineers of Japan
60th SHASE Award for Distinguished Technologies(Construction Equipment Category)realizing a decarbonized city hall.
*afterFIT refers to renewable energy after Feed-in-Tariffs (FIT) end.

Business Scheme to Use Renewable Energy as Power(Fiscal 2020)

Transmission ofPower Generated
at Plant

Incineration Plant

Yokohama afterFIT

Yokohama City Hall

Electric Power Retailer

Zero Energy School
Society of Heating, Air-Conditioning and Sanitary Engineers of Japan
36th Awards of Promotion & Technological Promotion

Mizunamikita Junior High School

35

SHINRYO Report 2023

撮影者：車田 保

School Exterior

Primary Annual Energy consumption[MJ/(m2 per year)]

400

Primary per Unit Energy
consumption

Mizunamikita Junior High School combines three public juniorhigh schools in Mizunami City, Gifu built with the aim todisseminate information about next-generation educational
facilities and the ideal form of environmental education.
Shinryo Corporation was in charge of installing the mechanicalequipment and built systems to use geothermal, solar, andother natural energy sources.
The facility takes advantage of environmental technologythat coexists with nature, such as the introduction of outdoor
air via natural ventilation and cooling and heating trenches
accomplished through a layout plan utilizing climbing kilns,
which are a local historical construction method. This
environmental platform that appeals to the five senses also
conducts a trial for teaching a high level of awareness aboutprotecting the global environment to students. Mizunamikita
Junior High School is a facility that can put ongoing energy
management into practice. An analysis examining the energy
supply and demand earned the school a ZEB rating inenvironmental performance evaluation one year after theconstruction. It also earned the building a CASBEE S Rank (selfevaluation).
The Society of Heating, Air-Conditioning and SanitaryEngineers of Japan highly praised the innovation and creativity ofthe major measures underpinning the decarbonization as a rolemodel for future school construction by awarding the projectthe 36th Awards of Promotion & Technological Promotion.

300

364
50%
Reduction

72%
Reduction

101%
Reduction

200

180
100

103

0

–2

–50
Standard
Model

EnergySavings

Energy Savings Energy Savings ++ Generation
Generation +Supply Offsite

Initiatives to Address Priority Subjects

Total BIM Construction of the Innovation Hub Main Building
Shinryo Corporation took on two challenges in its restructuringof the Innovation Hub ( P9-10) as a hub for the research anddevelopment of decarbonization technology. The firstchallenge in the current construction of the new main buildingis the adoption of technologies to save energy and use
renewable energy. These efforts will realize ZEB standards by
2024. The second challenge in the main building construction
will test new work processes that fully leverage BIM to optimize
construction processes.

Steps to Confirm, Agree, and Approve

Results of Construction work Process Optimization
Review Using BIM
The Ministry of Land, Infrastructure, Transport and Tourism has
adopted the new Innovation Hub use of BIM as a model projectfor facilitating building production and maintenancemanagement processes using BIM. The consistent use of BIM in
addition to the broad knowledge and expertise that Shinryo
Corporation has accumulated will optimize construction workand further decarbonization over the lifecycle of this building.
The early review of construction procedures using BIM
models creates consensus between everyone involved, whilemodularization of equipment and prior construction work
promotes shorter construction periods. We also visualized theCO2 emissions as an effort to estimate the effective CO2
reduction realized by optimizing construction work processes.
Results of CO2 Emission Reduction EstimatesType of Work

Construction
Technology
Consultants

Customer
Designers

Construction Review Process

Proposal

Effective Reductions

Construction

Use environmentally friendly
concrete84.8 tCO2

Air conditioning
systems

Reduce waste by modularizing
piping

3.9 tCO2

Electric
systems

Use light panels and quick-connect
terminal breakers to save energy

7.2 kgCO2

Sanitation
systems

Use water-saving equipment

153.3 kg CO2/year

Introduction of an AI Control System for Large-Scale Heat Source Facilities
District heating and cooling systems and other large-scale heatsource facilities with a variety of heat source equipment plants
must have the expert knowledge and experience of the plant
operators who manage operations, such as forecasting
fluctuations in heat demand, equipment start and stop, andchanges to operation schedules for efficient operation. Shinryo
Corporation has joined forces with the Marunouchi Heat Supply
Co., Ltd. to develop an AI control system for large-scale heatsource facilities aiming for greater decarbonization by minimizing
the workload of plant operators and maximizing energy savings.
This system capitalizes on a predictive AI model createdusing machine learning based on past operational data. It has
proven extremely effective in generating further energy
savings because the AI predicts the settings that minimize
energy consumption according to the current weather
conditions, fluctuations in heat demand, and other such factors.
Marunouchi Heat Supply Co., Ltd. introduced this AI control
system at two of its district heating and cooling plants:
Urbannet Otemachi Center and the Marunouchi Nijubashi
Building Plant. The independent inverter chiller operation at
the Urbannet Omotemachi Center has reduced annual energy
consumption approximately 4%.

Framework of AI Control System
Heat Source Systems in Use

Optimal Settings

Monitoring
SystemAppropriate
settings
minimize theenergyconsumption

Past DataAI Exploration

Current Data
MachineLearning

Search for Optimal
Settings
AI Forecast
Predictive Model of Energy
Consumption
Cooling
Tower
Pump

Optimization
techniques explore andexport the ideal
solutions based on
current data

Chiller

Create a predictive AI modelby training the AI with pastdata in advance to forecast
overall system characteristics

Commissioning Seminar
We regularly hold Shinryo Forum Seminars as training
opportunities for everyone to participate regardless of theirposition in sales, design, or technology. In 2022, a total of 232
people participated in seminars emphasizing “commissioning”
themes.
Commissioning refers to a review of whether the customer
equipment is providing the intended performance of the design,
analyzing energy consumption performance, or proposing

energy-saving management methods and renovations. Shinryo
corporation can reduce its Scope 3 emissions by reducing the
Scope 1 and 2 emissions of its customers by commissioning.
Commissioning is the skill expected to make tremendous
contributions toward realizing a decarbonized society. Our
Commissioning Seminars will raise employee understanding
about commissioning so that everyone will actively propose
these energy savings to customers.

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36

Contribute to a Decarbonized Society

Contributions to a Recycling-oriented Society
The world must build social economic systems that canencourage the efficient use of limited resources and energy as
well as properly respond to environmental limitations, whichmeans realizing a recycling-oriented society. Moreover,decarbonization and solutions to address the problem ofmarine plastics need to effectively use resources as well as
reduce and recycle waste.

In light of these needs, Japan enacted the Plastic Resource
Recycling Promotion Law in April 2022. Shinryo Corporation
has actively striven to reduce, reuse, and recycle (3Rs)construction by-products since launching its Environmental
Management System (EMS). Our future efforts will control
waste emissions, promote recycling and other initiatives, andproperly comply with new laws and regulations.

Use of the Industrial Waste National Permit System
The Industrial Waste National Permit System acts as a program
to promote the wide-area collection of products for disposal,
waste reductions, and proper waste treatment processes atmanufacturers certified by the Ministry of the Environmentand other organizations.
Shinryo Corporation takes advantage of this system for theproper disposal of waste glass wool insulation materials.
Consultations with certified insulation manufacturers about
adjusting waste material processes, delivery methods, andother waste-related operations has made it easier to recycle
waste glass wool insulation. These efforts have helped mitigate
our industrial waste emissions and reduce disposal costs. We
believe these kinds of initiatives contribute to the realization ofa recycling-oriented society and hope to actively promote themin the future.

VOICE
Yasuhiro Kii
Manager, Technical Section 3,
Technical Department 1
Yokohama BranchPrimary contractors on new building construction sites use
the Industrial Waste National Permit System to process
the waste glass wool used as piping insulation.
The use of this system transforms waste into new
products. Up until now, we often disposed of waste glass
wool materials as standard industrial waste, but the widearea certification system makes it easy to recycle. It not
only helps us mitigate industrial waste emissions atconstruction sites but also connects to recycling andpromotes the 3Rs.

Waste Glass Wool Materials Waiting to be Sent for
Disposal

Use of an Electronic Subcontracting System and Electronic Manifests
Shinryo Corporation uses an electronic subcontracting systemand electronic manifests (industrial waste management
ledgers) to properly dispose of industrial waste according to
the Waste Management and Public Cleansing Act. The
electronic subcontracting system is able to rapidly conclude
waste disposal outsourcing contracts with industrial waste
processors. This system also links to the electronic manifest
system to reduce the risk of contract breaches and other legal
and regulatory risks. The effective use of the electronic
subcontracting system and electronic manifests lowers thestrain on industrial waste management operations andcontributes to better compliance. Since April 2021, Shinryo
Corporation has used the electronic subcontracting system toconclude outsourcing contracts with a total of 255 primarycontractors in Japan (as of September 30, 2022). In fiscal 2022,
98% of all issued manifests used the electronic manifest
system to properly process industrial waste.

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SHINRYO Report 2023

Usage Ratio Between Electronic and Paper Manifests
Paper Manifest

Electronic Manifest

98

2%

%

Manifest
Operational
Status(FY 2022)

Initiatives to Address Priority Subjects

Energy-saving Initiatives at Business Sites
Rated an Excellent Company (S Class) Under the
Energy Saving Act
Shinryo Corporation was rated as an excellent company (SClass) for three consecutive years—2019, 2020, and 2021—by
the Business Operator Classification Evaluation System underthe Act on the Rational Use of Energy (Energy Saving Act).
Japan will enact amendments to the Energy Saving Act inApril 2023 which will require contractors to systematicallyfurther the use of renewable energies (non-fossil energy).
Shinryo Corporation will strive to limit energy consumption
through various means, including the use of renewableenergies, future improvement to building management, andmore efficient operations.

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

Environmental Employee Education
Shinryo Corporation holds a wide range of environmental
education programs. In fiscal 2022, we provided education
including e-Learning on carbon neutrality and training on thePreliminary Asbestos Survey Results Reporting System toheighten awareness about the SDGs and promote greater
understanding of environmental laws and regulations.

Primary Environmental Education
Target Trainees

Training Details

New employees

Environmental management

Mid-level supervisors

Methods for handling construction
byproducts on site

Employees in each department

EMS departmental training

Sales and technical employees

Education on the Preliminary Asbestos
Survey Results Reporting System

All employees

Carbon neutrality and EMS

Employees certified as internal
auditors

ISO 14001: 2015 internal auditor
training

Participation in the Japan Climate Initiative
Shinryo Corporation has declared its intent to participate in theJapan Climate Initiative (JCI). JCI was launched as a network
consisting of numerous companies, municipalities, associations,and non-government organizations for the purpose of creating

new growth and development opportunities against theclimate crisis. Shinryo Corporation supports the JCI activities
and will work to reduce greenhouse gas emissions to help
realize a decarbonized society.

Donations to the Keidanren Committee on Nature Conservation Fund
Shinryo Corporation supports nature conservation efforts
through regular donations to the Keidanren Committee on
Nature Conservation Fund established by the Keidanren (Japan
Business Federation). In addition, we participate in the Japan
Business and Biodiversity Partnership which the Keidanren

Committee on Nature Conservation acts as the secretariat.
Shinryo Corporation recognizes its part in preserving
biodiversity and contributes to the realization of a society thatcoexists with nature.

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
Activities to Conserve
the Ecosystem throughNon-profit Organizations

ShinryoCorporation❶ Participate
in employee
conservation
activities❷ Submission of activity
reports from employees❸ Supply (book coupons)

Sustainability
Promotion
Committee

International
Environment
NGO❹ Donate(Matchdonations ofbook coupons
supplied to
employees.)

SHINRYO Report 2023

38

Relevant SDGs

NFRASTR
TI

TURE
UC

RESILIEN

Initiatives to Address Priority Subjects

Contribute to a Resilient SocietyWith escalating risks of natural disasters, the construction of strong infrastructure is essential toensure sustainable corporate 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 Yaesu Regional Energy Resilience in Front of Tokyo Station

Yaesu Energy Center

Completed: July 2022
Supply capabilities: 21,600 kW power; Approx. 120 GJ/h coolingand heating; Approx. 105 GJ/h hot water
Building application: Special energy/district heating and coolingsystems
Tokyo

Cogeneration systems

Heat Source Machine Room39

SHINRYO Report 2023

Tokyo Midtown Yaesu (Housing Energy Center Installation)

Initiatives to Address Priority Subjects

About the Yaesu Energy Center

Our Work

The Yaesu Energy Center is an independent distributed energy
plant that supplies power to the Yaesu area in front of Tokyo
Station, which is a major transit and economic hub of Japan.
The energy center was built alongside the development ofTokyo Midtown Yaesu as a large-scale mixed-use*1
development project combining not only offices, commercial
complexes and hotels but also a bus terminal and elementary
school. This energy plant supplies power to the existingunderground Yaesu Shopping Mall in addition to Tokyo
Midtown Yaesu. In the future, the Yaesu Energy Center plans toalso supply power to other buildings upon completion of theYaesu 2 Chome Central District Town Redevelopment Project.
The plant has adopted a facility designed for high-level ofenergy resilience. A large cogeneration system (CGS) that burns
medium pressure gas supplied through highly durable piping
and power multiplexing through cooperative power enables apower and heat supply with a more than 50% demand peakeven in wide-area stoppages. The electricity can be used for not
only common elevators and restrooms but also office lighting,outlets, and the ventilation system to ensure business
continuity. Yaesu Energy Center is even expected to fulfill an
important role in disaster response as a power plant supplying
continuous energy to temporary shelters for people who are
stranded away from home and disaster prevention sites.
Moreover, the adoption of an energy management system tomanage energy for the entire area analyzes big data
aggregating past energy demand, weather, and a wide range ofother information via the latest ICT technologies. This type ofdata analysis forecasts next-day energy demand and optimizes
management of heat source equipment to realize a more
efficient energy supply and better environment.

Shinryo Corporation received a bundled order from the Yaesu
Energy Center for the machines, power equipment, CGS, and civilengineering work as well as took charge of the installation work.
The CGS adopted by this facility operates with a high 48.5%
power generation efficiency compared to the standard 40%
power generation efficiency of thermal power plants. Moreover,
we have succeeded in a total energy efficiency rate of 77% bycombining use of different technologies, including steam
absorption chillers using exhaust air from the CGS as well asheat exchangers using hot water and exhaust heat for heating
purposes. As a result, we have cut CO2 emissions roughly 26%
compared to that of standard buildings, which contributes to a
reduction in the environmental load.
The hot and cold water supply also provides energy savings.
We have also introduced a system to supply and return waterwith larger temperature differences to reduce the feed power.
Furthermore, the use of a supply pump inverter control andtwo pump system has reduced pump feed power andheightened operational efficiency of heat source equipment
through various means including the separation of primary andsecondary pump controls.
Our civil engineering work to build underground tunnels toservice power and heat in Yaesu required the installation of
supply piping under the piles supporting the undergroundYaesu Expressway Route tunnels. Therefore, we carefully
executed the construction using a thrusting pipe construction
method*2 while constantly measuring displacement to ensure
no impact on the foundation around the tunnels.
Shinryo Corporation strove to make considerations about
the neighboring buildings because the construction took placein an urban district covered by hotels and other buildings.
Especially when carrying in large equipment, we formulated
painstaking plans and executed our work by taking into accountcarry-in procedures, the time of day, and noise measures while
making adjustments with relevant parties. Other efforts
included the use of wearable cameras so that managers could
provide prompt instructions to personnel on the construction
site remotely from the on-site offices.

*1 Mixed use refers to a building or city ward with multiple applications, such as
residential, commercial, office, and cultural spaces.

Air Conditioning, Electricity, CGS and Civil Engineering*2 A construction method to build piping routes by successively adding existing
pipes after the excavator.

VOICE
Overcoming Challenges to Realize Accident-Free,
Disaster-Free Construction

Taku Watanabe(On-site Project Manager)
Manager, Technical Section 2,
Technical Department 2
Urban Environment DivisionThis project built an energy plant with two 7,800 kW CGS underground in Yaesu as
the gateway to Tokyo and contributed to Yaesu urban development by supplying
energy to underground Yaesu Shopping Mall.
Located in front of Tokyo Station, we faced various challenges in the construction
from the planning stage. However, each division worked together unified as one tofind solutions to each one. The broad construction handling everything from the air
conditioning and electric systems to the CGS and civil engineering finished with great
success free of any accidents or disasters through the cooperation of so many people.

SHINRYO Report 2023

40

Initiatives to Address Priority Subjects

Supporting Total Community-based Medical Treatment and Care

Hiroshima City North Medical Center
Asa Citizens Hospital

Exterior

Machine Room41

SHINRYO Report 2023

Surgical Suite

Completed: December 2021
Total floor area: 52,159 m2
Building application: Medical complex
Hiroshima Prefecture

Initiatives to Address Priority Subjects

About the Hiroshima City North Medical Center
Asa Citizens Hospital
Hiroshima City North Medical Center Asa Citizens Hospital
aims to provide total community-based medical treatment andcare as a necessary medical institution in the northeasternregion of Hiroshima Prefecture. The Hiroshima City North
Medical Center Asa Citizens Hospital was built by restructuringand moving the existing Asa Citizens Hospital and neighboring
medical institutions. The facility is located centrally at thesquare on the corner in front of the JR Aki-Kameyama Station
with the hospital and energy center buildings on the east sideand the auxiliary wing, hospital daycare, and single-levelparking lot on the west side.
This local medical emergency center operates around theclock all year long to provide the most advanced and cuttingedge medical care. The catheter treatment rooms can handle
emergency medical care, such as myocardial and cerebral
infractions, while the surgery suites employ robots that support
endoscopic surgeries. The heliport on the roof also puts inplace a system to handle wide-area patient emergencies.
This hospital is fulfilling its role as the emergency medical
institution. The building utilizes a seismic isolation structure forhigh earthquake resistance in addition to emergency power
generators, emergency wastewater tanks, and other disasterprevention measures. It secures a space that can handle
roughly 4,000 disaster-afflicted patients. A majority of therooms are private suites. Outpatients and families from far
away have access to accommodations as well as a roofed
walkway to reach the hospital from the station easily regardlessof the weather conditions. These are only some of many
patient-friendly considerations.

Our Work

Air Conditioning System

Shinryo Corporation was in charge of installing the air
conditioning system for the hospital and energy center wings

which house rooms with 434 beds for patients and 11 surgicalsuites.
These surgical suites use radiant air conditioning systems
that maintain a uniform temperature throughout the room toensure an indoor environment with minimal stress on patients
thanks to the airflow from the air conditioning vents. As abackup function of the air conditioning system to process
outdoor air, we also implemented a mechanism that can supply
air from other systems with consideration to safety. By
incorporating ideas from the doctors and nurses, we evenpursued greater usability with a touch panel installed in thestaff room that allows central management of air conditioning
as well as switching between negative and positive pressure ineach surgical suite.
The COVID-19 infection was spreading during theconstruction, which made changes to hospital systems
essential to accept infected patients. The medical emergency
center switched to a system that can separate negative andpositive pressure into zones divided by variable airflow
equipment installed in the ducts. In addition to making it simple
to switch from central monitoring, we ensured a system that
can handle infected patients by making it possible to change
the pressure in some hospital rooms.
The construction aimed for efficient and effective
installations through prior testing. Shinryo Corporation used
BIM to verify the building frame for the seismic isolation
structure and systems did not contact one another when
shaking in an earthquake. Moreover, we verified proper
equipment installation layouts and necessity for soundproofing
when building hospital and examination rooms as well as
anywhere else requiring noise considerations. The active use of
ICT tools strove to realize more efficient work styles by shifting
to paperless drawings through the use of a construction
management app, remote work instructions via wearable
cameras, and other such initiatives.

VOICE
A Project Completed by Sharing Knowledge Between On-site
Personnel

Yoshihisa Niwa
(On-site Project Manager)
Senior Chief, Technical Section 2,
Technical Department 1
Chugoku Branch

All of the on-site personnel shared their knowledge to figure out the best way to go
about more efficient construction of a large hospital project. The incorporation of ICT
tools on-site from the start of work and the use of BIM offered more efficientconstruction operations. We also regularly held meetings to review construction
quality by involving everyone from our partner companies, aiming to further enhancequality on-site.
The construction happened to coincide with the COVID-19 pandemic, but we wereable to complete a project necessary for the medical needs in Northeastern
Hiroshima, which has given me a great sense of accomplishment and joy.

SHINRYO Report 2023

42

Initiatives to Address Priority Subjects

Supporting Eco-friendly Plant Equipment

Suntory Kita-Alps
Shinano-no-Mori Water Plant

Completed: April 2021
Total floor area: 40,744 m2
Building application: Water beverage production plant
Nagano Prefecture

Exterior

About the Suntory Kita-Alps Shinano-no-Mori
Water Plant
Suntory built its Kita-Alps Shinano-no-Mori Water Plant on ahuge roughly 410,000m2 lot neighboring the Alps Azumino
National Government Park in Omachi City, Nagano, which isrenowned for the beauty of the 3,000-meter-tall Kita Alps. This
plant is Suntory’s fourth natural mineral water production
plant. As a Kita-Alps natural mineral water plant, the Shinanono-Mori Water Plant fully automates the water production
process from harvesting to bottling, packaging, and shipping.
This is an eco-friendly plant that strives to save bothresources and energy. The adoption of solar power generation
systems, boilers using biomass fuel, and the procurement of
power derived from renewable energy aims to achieve net-zero
CO2 emissions. As a result, the plant has received the highest S
Rank in the Comprehensive Assessment System for Built
Environment Efficiency (CASBEE). The plant even reduces thewater used for product production through various means,including the design of production processes minimizing water
consumption as much as possible as well as high-level of water
recycling and reuse. In addition, Suntory aims to create a venue
to interact with the local community and society by hosting
plant tours and allowing public use of its square on the plantgrounds.

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SHINRYO Report 2023

Our Work

Air Conditioning and Mechanical Ventilation Systems, Sanitation Systems

The Shinryo Corporation was in charge of building the air
conditioning, mechanical ventilation, and sanitation systems forthe production, warehouse, and wastewater treatment buildings.
As a beverage production plant, we put in place measures toprevent insects or contaminates from penetrating the production
line. We strove to secure a certain level of clean rooms. Somemeasures included room pressure control ensuring positive
pressure, systems fully process the air running through the piping
and ducts in the walls and floors, and central monitoring
systems to verify the condition of the filters on outdoor air inlets.
Our construction of underground piping took into accountthe impact of earthquakes and other disasters, and used a
welding process for the stainless steel pipes. Shinryo
Corporation set up a welding station that was able to provide
quality equivalent to plant welding on the construction site. We
brought in automatic welding machines and expert welders tocarry out the pipe welding work. Moreover, X-ray inspections to
examine the weldings not only ensured a high-level of
installation quality but also reduced the construction period.
Additionally, we took advantage of 3D-CAD when cooperatingwith building and equipment contractors as well as equipment
manufacturers. This realized efficient and safe construction
installations by preventing interference between system
devices and production equipment when drawing constructionplans and verifying routes to carry in all of the equipment.

Initiatives to Address Priority Subjects

Supporting the Energy Supply and
Local BCP of a Skyscraper Building

Osaka Umeda
Twin Towers South
Completed: February 2022
Total floor area: 258,856 m2
Application: Department store, offices,
event hall, etc.
Osaka Prefecture

Heat Source Machine Room

Exterior

About the Osaka Umeda Twin Towers SouthOur Work

Osaka Umeda Twin Towers South is a skyscraper that has 38
floors above ground and 3 floors below built in front of Umeda
Station, which is the largest terminal building in the Kansai
region. This ultra-high building offers much from department
stores to offices and a conference zone. It has become an
Umeda landmark alongside the Twin Towers North.
Twin Towers South provides many features as a disasterprevention base. This includes private power generators thatcan supply power for up to 72 hours in the event of a power
outage as well as elevated earthquake-resistant water tanks
that can provide water to use to flush toilets if the water stops.
The skyscraper even has a temporary shelter for people whoare stranded, which helps bring better disaster prevention to
the Umeda area. The Twin Towers South are also
environmentally friendly. Highly efficient equipment, solar
power generation, and other energy saving and creation
measures realize roughly 25% greater CO2 emission reductions
than typical office buildings. This skyscraper has acquired the
CASBEE Osaka Mirai S Class as well as various otherenvironmental certifications. The Twin Towers South has also
been praised for providing building management that considers
the health and comfort of everyone working in the offices andits health promotion program, which have earned it the highest

Shinryo Corporation was in charge of building the heat source
system as well as air conditioning system for the lower floors.
The heat source system leverages a system to optimize
operations via the best mix of six different types of heatsources. This system precisely predicts the air conditioning load
for the next 24 hours to select and run the best heat sources.
This process sustains a stable supply of energy while also
realizing energy and labor savings. Heat sources that use bothelectricity and gas also offer a high-level of disaster prevention.
Shinryo Corporation used CFD* technology to investigate
the ideal location to install the cooling towers and outdoor air
conditioning units to avoid any decline in performance due towaste heat from peripheral equipment.
We worked together with general contractors to carry inequipment and modularized the structural skeleton and piping.
These efforts reduced lifting work and drove work efficiency
on-site. Moreover, our plans to carry in large equipment visuallydescribed the work using 3D-CAD data to create animations,which heightened understanding of everyone involved in thework and let us finish the job in a safe and reliable way.

Heat Source and Air Conditioning Systems* CFD: Computational Fluid Dynamics

S Rank certification in the CASBEE Smart Wellness Office.

SHINRYO Report 2023

44

Initiatives to Address Priority Subjects

Supporting Tokyo Government
Administration

Tokyo Metropolitan
Government
Building No. 1
Air Conditioning
SystemRenovations
Completed: March 1991
Renovations completed: July 2021
Total floor area: 196,755 m2
Building application: Government administration
Tokyo

Machine Room

Exterior

About the Tokyo Metropolitan Government
Building No. 1
The Tokyo Metropolitan Government Building No. 1 opened in
Shinjuku in 1991 as a place to provide citizen services as theadministrative center of the Tokyo metropolitan area. The
building is also a disaster prevention site designed to rapidly
execute a disaster response when disaster strikes.
Nearly 20 years after it opened, the Tokyo Government
renewed its system through a long-term renovation projectfocusing on the air conditioning, electric, and sanitation systems
over seven and a half years from December 2013 to July 2021.
To avoid any impact on citizen services or government andsenate activities, the project did a pile-up move to gradually
shutdown and move its offices inside of the governmentbuilding while doing live-in renovations for spaces difficult toshut down and move on days the offices were closed. In addition
to renewing the building systems, the renovation work also put
in place BCP measures, such as dampening devices as a measureagainst long-lasting earthquakes and power diversification thatreinforced emergency generators to distribute power
procurement risks. These innovations succeeded in renovations
that maintained building functionality and responded to thechanging times and requirements of society.

Our Work

Air Conditioning System

Shinryo Corporation was in charge of installing the air

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SHINRYO Report 2023

conditioning system as a joint venture in this renovation
project. We aimed to introduce a more highly efficient system
and improve maintainability based on our track record ofhandling these installations in new construction.
We adopted an air conditioning system with large
temperature differences for the air conditioners in offices. A
larger temperature difference between the cold and hot waterand exhaust air from the air conditioner via this air conditioning
system reduces the amount of water and air feeding as well as
feed power to help save energy, in addition to decreasing thesize of ducts and piping to help save resources. The Tokyo
Government expressed its need to improve the ability tomaintain its existing systems. To improve maintainability, one
measure improved the traffic flow of people to allow for
inspections of the machine room even when the building is
occupied.
The nearly seven-and-a-half-year renovation period
necessitated strict management of floor shutdowns andmoving dates in addition to work processes. Therefore, Shinryo
Corporation meticulously adjusted the schedule for
installations and system tests with the joint venture companies
in charge of the building construction and other systems, inaddition to detailed construction planning that included
executing work on power and server rooms that require yearround cooling in the winter with a low outdoor air temperature
after putting in place temporary cooling systems.

Initiatives to Address Priority Subjects

Supporting State-of-the-Art
Cancer Treatments

New National
Cancer Centre
Singapore
Completed: 2022
Lot area: 118,000 m2
Building application:
Medical and research complex
Singapore

High-efficiency water-cooled chillers

Exterior

About the New National Cancer Centre Singapore(“NCCS”)
The new NCCS specializes in the treatment of cancer withtwenty-four floors above and four floors below ground. The
Centre is located on Singapore General Hospital Campus. It
houses Specialist Outpatient Clinics, an Ambulatory Treatment
Unit, a Proton Therapy Centre, imaging facilities, research labs,
education facilities and other functions to support cancer
patients. The Building and Construction Authority has certified
the new National Cancer Centre Singapore as a platinum-level
energy-saving building in its Green Mark Certification Programwith high-efficiency water-cooled chillers, and other measures.

Our Work

Air Conditioning and Mechanical Ventilation Systems

Shinryo Corporation was responsible for the air-conditioning
system, integrated building management system, heat recovery
system, engineered smoke control system and smoke
extraction system, secondary power system for the airconditioning system, steam system, and the cooling water
system for medical equipment. We took advantage of ourabundant experience in building hospitals in Japan and the restof the world, including the National Centre for Infectious
Diseases also located in Singapore.
We built an environment suitable for diverse medical
facilities in the hospital, including the heat recovery system,
cooling water supply system used to control the temperatureand humidity of operating theatres as well as temperature of
CT scanning and proton therapy equipment, and otheradvanced medical equipment. To prevent the spread of viruses
and other infectious diseases, laboratories utilize negativepositive pressure control, special exhaust fans, and air handlingunits that pass air-conditioned air through the built- inelectronic air cleaners and ultraviolet light before the airconditioned air is supplied to the rooms. We also simulated theairflow in B1 Cytotoxic clean room using CFD* technology
before the construction to provide a facility which everyone
can use safely and reliably.
We implemented the use of multi-lingual site management
apps to facilitate better communication between multinational
contractors and employees as well. We also animated 3D-CAD
data by BIM software to explain installation plans to create anefficient and accommodating worksite.
* CFD: Computational Fluid Dynamics

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46

Relevant SDGs

ND

BETTEROCESSPRSAFETY A

Initiatives to Address Priority Subjects

Realize Safe and Highly Efficient Work Processes
More efficient operations and higher productivity are essential issues when considering the labor
shortage in 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 efficient construction
site operations.

Quality Management System (QMS)
Ongoing improvements to work processes
Quality Policy

Customer Requirements

Provide quality earning trust from ourcustomers with all our effort.

Plan Deliberate
Quality goal setting
and practical plans

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 to provide quality that satisfies our customers basedon common company-wide policies.
Customer satisfaction surveys after the completion of a
project will provide insight about the needs of society in oureffort to ensure the quality which will earn customer trust.

Act Enhancement
Correction ofincompatibilities
Initiatives toward
improvement

Do Support/Execute
Work processenhancement

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• Urban Environment Division• Nagoya Branch• Nuclear Power Plant Division• Osaka Branch• Electric & Instrument Division• Chugoku Branch

ISO 9001 Internal Auditor Training• Hokkaido Branch• Kyushu Branch• Tohoku Branch• HONG KONG Branch• Marunouchi Branch• SINGAPORE BranchInternal auditing is an important operational process using
internal auditors who verify the effectiveness of quality
management systems. In fiscal 2022, we held internal auditor
training online, increasing our ISO 9001 Internal Auditors by
222 employees.

• Hokuriku Branch

Customer Satisfaction

Quality Improvements and Prevention of TechnologicalTrouble Through a Construction Cycle

Outline of KPI for Priority SDG Subjects (Detailed List on

Inspection Before
Completion

Quality Patrol

Intermediate
Inspection

SHINRYO Report 2023

KPI

Quality Patrol

47

100

%

(Target: 100%)

Construction Review
Meeting*Cumulative result for construction completed during this fiscal year

Construction cycle
implementation rate

Example of Operational Flow According to a Construction Cycle
Construction Start

Shinryo Corporation set a 100% construction cycle
implementation rate* as KPI to provide high-quality equipment
systems that can be trusted by customers. We extract
construction issues to review and find solutions to those
problems at an appropriate time in line with the construction
progress, whether at construction review meetings, quality
patrols, or intermediate inspections. The implementation of aclear construction cycle provides construction quality thatsufficiently meets customer requirements for equipment
systems.

KPI

P29-30)Initiatives to Address Priority Subjects

Quality Patrol
Quality patrols on construction sites check quality to makesure various requirements of construction are reflected
properly, such as those related to design requirements andlegal, regulatory and internal technical standards. People incharge of quality management regularly patrol construction
sites to verify whether construction satisfies various conditions
included in design drawings and construction quality plans aswell as construction blueprints. Past examples of trouble,
customer satisfaction surveys and other measures also check
important management items organized according to
instructions from our customers.
We held a joint on-site Shinryo Group inspections andexchange of idea meetings in fiscal 2022 to share information
and brainstorm ideas on various matters, including initiatives toimprove on-site productivity and the level of ICT and quality

management tool use. Shinryo Corporation always strives toefficiently manage construction sites Group wide and improve
the quality provided to customers.

Quality Patrol Inspections of Pipe Weldings

Initiatives to Improve On-site Construction Quality Using BIM
Shinryo Corporation uses Building Information Modeling (BIM)
to improve construction quality and respond to customers
various requirements, whether realizing comfortable living
environments and energy efficiency or preventing systemmanagement trouble. BIM provides a tool for effective
construction management by assigning equipment and otherstatus data to 3D models to accurately understand theprogress of each construction process.
We can grasp and analyze the progress of each process frompart purchases for each system to the production, machining,delivery, installation and inspection, and then take any
corrective actions necessary at the appropriate time.
A cloud data environment before construction begins helps
improve quality and drive efficiency by letting us check thebuilding structure and any interference, review workability andwork procedures, and devise construction plans, as well as
manufacturing and fabrication of piping and ducts in the plant.

Verification of Piping Behavior During Earthquakes andInterference Checks

Internal Expansion of Proprietary Technology
We internally expand technological capabilities of employees,
including the latest skills and superior on-site efforts, to provide
even higher quality to customers.
Shinryo Corporation holds the Tsukuba Forum to report on
the fruits of Innovation Hub research and development as aplace to debate the direction of future technologicaldevelopment from a management standpoint.
Company-wide Shinryo Forum Technology Seminar also acts
as a venue for technical explanations, including methods toanalyze the cause of technical trouble. We also hold technicaleducation for marketing and administrative staff toward theactive expansion of technologies throughout the company.

Tsukuba ForumSHINRYO Report 2023

48

Realize Safe and Highly Efficient Work Processes

Initiatives to Improve On-site Construction Productivity
Promotion of Off-site Production
Shinryo Corporation promotes off-site production that helps
improve construction quality and productivity. Building projects
differ according to various requirements, such as the
specifications for the construction equipment as well as thework environment, processes, and occupational health andsafety on each construction site. These distinct differences
make it difficult to improve productivity.
Therefore, Shinryo Corporation has introduced off-site
production that aggregates and fabricates materials andequipment at off-site warehouses that can then be carried in
and installed on construction sites. These off-site warehouses
provide work environments that not only improve theproductivity of construction sites but also offer effective
production systems that ensure construction quality andreduce occupational accidents.

Off-site Production System
Off-site Warehouse

Aggregates Materials
and Assembles Units atthe Warehouse
Carries In Units toConstruction Site

Construction Site
Executes Only the
installation of Units

Employees will also On-site Staff
be able to work at
the warehouse!

Benefits• Improves
productivity
through efficient
allocation of staff• Reduces on-site
personnel

Modularization at Off-site Warehouse
Shinryo Corporation is working to modularize not only the
production of piping and ducts but also other equipment andsystems at off-site warehouses. An indoor machine unit is a unitof equipment that incorporates the indoor machine piping andother materials with a cart for transport that can be delivered
and carried into construction sites and even lifted into place as
is. Coolant standpipe units come together with a unit frame toallow it to be carried in as a set with two layers of coolant
piping units to construction sites. The set can then be put inplace and installed on-site easily as an upper and lower tier.
These modularization construction methods feature a
configuration that lets personnel install the units as is, whichhelps to dramatically increase construction productivity.
Indoor Machine Units

Coolant Standpipe Units

Automated Generation of Unit Production Drawings
We have developed a unit production tool that can generate
unit production drawings automatically using BIM. The
innovation has made the introduction of modularization easier
thanks to the ability to easily create indoor machine, coolant

standpipe, and other unit production drawings.
Shinryo Corporation actively uses off-site production andmodularization construction methods in an effort to better
enhance productivity.

Access Management Using a 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. The
engineers themselves have typically been responsible forrecording and certifying their own arrival, departure andattendance on paper logs, which on-site project managers
needed to frequently collect. To prevent the spread of the
COVID-19 infection, engineers also needed to take and record
their body temperature. This made the entry process take quite
a bit of time.
The introduction of a facial recognition system enables an
instant digital log of engineers while simultaneously checking
their body temperature. The technology has been able tosimplify entry and exit processes as well as easily track work
performance data.
This system helps improve the efficiency of on-site

49

SHINRYO Report 2023

management work while reducing the labor required foradministrative processes thanks to links to the construction
career advancement 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.

Access Management on Construction Sites

Initiatives to Address Priority Subjects

Development of an On-site Procurement System
Material and equipment procurement operations on
The system puts in place data analysis infrastructure toconstruction plants require complicated procedures, such ascollect, analyze and visualize information, such as construction,
supplier contracts and invoices via the transfer of purchasingorder, delivery, and other procurement data as well as the latest
information, orders, and order invoices that includes
price changes. The technology is driving a digitalspecifications and quantities of materials and equipment fromtransformation.
construction sites to procurement departments.
Shinryo Corporation developed an on-site
Framework of the On-site Procurement Systemprocurement system and has completely(2) Submit
digitalized creation and approval processes,
Construction site (1) Request
estimate
Engineering
Supplier
estimate
including orders and the sharing of purchasing
Department
data between construction sites and(7) Receive
digital order(3) Review estimate
procurement departments. This initiative has
Purchase
EstimateRequestenhanced the efficiency of procurement(4) Request
purchase
operations and realized a paperless
Procurement
environment. It also contributes to the
SystemProcurement
operational efficiency of manufacturers,(5) Approve
Department
purchase(8) Issue digital
distributors, partner companies, and otherrequestorder invoice
Orderaffiliates, and promotes greater productivity
Digital Signature
InvoiceOrder(6) Issue digital orderfrom a supply chain perspective.
Digital Signature

Promotion of a Shift of On-site Operations to the Back Office
Solutions to the labor shortage and long working hours are
extremely important in the construction industry, which makes
achieving higher productivity and work style reforms an urgent
effort. Shinryo Corporation is centralizing on-site management
operations with employees who work on the construction sites,
standardizing on-site operations to further improve
productivity, and promoting a shift of operations to the backoffice through BPO*.

Longer Lasting Equipment
via a Non-chemical
Corrosion Prevention System

As Shinryo Group human resource recruiting service, Global
Staff has set up a system to support construction sites. Shinryo
Group is also putting its strength behind the promotion of
better on-site productivity (P64). We will continue to further
increase operations subject to these measures to expand sites
adopting BPO.
*BPO: Business Process Outsourcing.

Society of Heating, Air-Conditioning and Sanitary Engineers of Japan both
SHASE Award for Distinguished Technologies (Technological Development)Award of Excellence from the Heat Pump & Thermal Storage Technology Center of Japan in 2022 as an
Example of Impeccable Improvements in Operational Management of Heat Pump and Storage Systems

The Corro−Guard® Non-chemical Corrosion Prevention System is atechnology that expands the lifespan of equipment systems and piping by
mitigating corrosion. This system uses anion exchange resin without any rust
inhibitors to replace the corrosive ions in water with ions that have a corrosive
inhibition effect. This essentially shifts the properties of water into water thatprevents the corrosion of metal. The use of an anion exchange process
prevents corrosion trouble before it happens.
Introduction into the Tokyo Sky Tree® DHC
Shinryo Corporation and Tobu Energy Management introduced this system
into the heating and cooling system at the Tokyo Sky Tree® DHC that
includes large-scale water thermal storage tanks to test the effectivenessover several years. As a result, we not only confirmed the corrosive inhibition
effect but also verified higher management efficiency and other energy
savings.
The typical method to prevent corrosion has been to inject rust inhibitors
into the water flowing through pipes. However, this system does not use anyrust inhibitors, which not only extends the lifespan of equipment but also
reduces the environmental load. Anion exchange process water is atechnology responding to social demands as a way to support BCP in theevent of a disaster or other emergency situation because this water can also
be used as potable water.

Corrosive
Ions
CI–

SO4

Ant-Corrosive
Ions
HCO3–

Anion
Exchange
Resin

HCO3–

2–

HCO3–

Illustration of Anion Exchange Process

External View of the Corro−Guard® Non-chemical
Corrosion Prevention System

SHINRYO Report 2023

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

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. That is why Shinryo Group actively provides
education and training opportunities to cultivate thisawareness of danger. Moreover, we create and confirm
comprehensive work procedures to prevent human error whileworking to prevent serious disasters due to unscheduled work.

VOICE
Toshitada Watanabe
Chairperson of Health and Safety
CouncilPresident & CEO
IIO KOGYOSHO CO., LTD.

The Health and Safety Council at our headquarters
ensures work procedures are followed and puts in place acomprehensive foundation of safety that helps eradicate
occupational accidents. That’s why we are enhancing
safety patrols and education that increases sensitivity todanger as well as providing specific and detailed safety
guidance.
During the COVID-19 pandemic, on-site communication
seemed to have suffered. I want to take time now to review
the workplace environment and eliminate any human error
resulting from this lack of communication.

Cooperation with the Health and Safety Council

Promotion to Expand the Construction Career Up
System (CCUS)

KPI

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

Shinryo Corporation conducts safety simulation training for
new employees and mid-career hires using VR to enhance thesensitivity to danger on construction sites. Real simulations ofgetting caught or entangled, crashing, falls, and other such
accidents provides understanding about these dangers andteaches key points to safety management. Moreover,workshops on examples of occupational accidents done inconjunction with these simulations teach techniques to identify
these dangers and hazards, which can be leveraged in disasterprevention activities on construction sites.
Simulation Training Incorporating VR

SHINRYO Report 2023

79%

skills, and by 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 through a number ofexperienced engineers they employ. Therefore, we are rollingout the system to construction sites in an effort to promote its
standardization, such as preparing an environment for partnercompanies to more easily use it.

Safety Simulation Education Incorporating VR

51

0.28

importance. Shinryo Corporation strives to thoroughly prevent
disasters by working with partner companies to regularly
provide guidance on actions to rectify causes of on-site
hazards.

At the headquarters and branches, the Health and Safety
Council plays a central role in formulating annual plans andconduct training for managers, health and safety supervisors
as well as diverse specialty training and education for partnercompanies, and training to acquire certifications. Labor safety
training targeting business proprietors teaches businessproprietors their duty to adhere to the Industrial Safety and
Health Law as well as comply with the Construction Industry
Law in an effort for legal and regulatory compliance. We also
believe safety patrols of construction sites are of particular

The Construction Career Up System, launched in 2019, is acertification system developed by the Ministry of Land,
Infrastructure, Transport and Tourism in cooperation withconstruction 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, by ensuring fair evaluation of thoseFrequency rate
(Target: Less than 0.40)

Shinryo Group Health and Safety Policy

Initiatives to Address Priority Subjects

Overseas Health and Safety Activities
Shinryo Group has a broad-range of construction sites in Asia,
India, the Middle East, Africa, and many other parts of theworld. Health and safety management practices differ
according to the circumstances in each country. We have put inplace a system that links the Health and Safety Promotion
Department of Shinryo Corporation with safety management
supervisors at each business location and on construction sites
to maintain a high-level of safety management while
incorporating management techniques in Japan.
The COVID-19 Pandemic prevented our ability to conductsafety patrols done jointly with safety supervisors at each site.
In spite of this, these sites connected with one another online
to exchange ideas about health and safety activities. In August
2022, Shinryo Corporation held training to prevent

occupational accidents to heighten awareness and nurture aculture of safety by sharing and teaching the safety initiativesof each country. This included reports on health and safety
activities as well as meetings to exchange ideas.

SHINRYO PHILIPPINES Safety Patrols

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, workers, customers, andeveryone else involved in its renovation projects.
In April 2022, we started the Preliminary Survey Results
Reporting System for Construction Materials Containing
Asbestos. To support this system, Shinryo Corporation selected
people to supervise the use of the Preliminary Survey Results
Reporting System and held online briefings about it.
Furthermore, we held training for all employees involved inmarketing and engineering taken by a total of 1,856
employees.
Shinryo Group works to properly remove and dispose ofasbestos and RCF while taking advantage of asbestos and RCF

safety patrols, an asbestos and RCF construction cycle, andother such measures.

Removal of Piping Insulation
Containing Asbestos

Spray and Disposal of an Agent toPrevent the Scattering of Asbestos

Use of Green Site Construction Website
Green Site is a system to create, submit, and manage labor andsafety documents online (Operated by: MC Data Plus, Inc.).
Many construction companies have introduced the Green Site
system for the purpose of increasing the efficiency of
document production.
Shinryo Corporation has built a system that enables
managers in charge of dedicated teams to internally review
documents from not only primary suppliers but also secondaryand subsequent suppliers. We are able to properly engage inuncompromising compliance with laws and regulations byusing this system to properly manage the documentation
required under the Construction Industry Law and otherstatutory regulations. Green Site helps reduce theadministrative work of partner companies as well because it
links to the registration of personnel information and theConstruction Career Up System ( P51).

CSR Procurement Guidelines
Shinryo Corporation pursues initiatives through cooperationand coordination with its business partners, especially partnercompanies, to expand activities to not only its own businessactivities but also throughout our supply chain.
In terms of procurement, we have established Shinryo CSR
Procurement Guidelines and have asked over 500 companies
to cooperate while deepening understanding about corporatesocial responsibility.

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

SHINRYO Report 2023

52

Relevant SDGs

CTIVE C
TA

ATIVE
RE

EARNE
S

Initiatives to Address Priority Subjects

Build Refreshing Environments
Rich with Creativity
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 humanresources are motivated and can each reach their full potential with the goal of realizing a
refreshing, highly productive company rich with creativity.

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. With only three
years until the amended Labor Standards Act goes into effectin April 2024 in the construction industry, we launched theChallenge 45 project as an initiative aiming to limit monthly
overtime to 45 hours.

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
and Group companies participate online. All of the corporate
divisions, branches, and administrative sections and three
Shinryo Group companies* 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.”
We also gather the numerous innovations brought forththrough activities to reform work styles devised by employees
themselves into a work style reforms guidebook (collection of
examples) distributed throughout the company.
Through the Refreshing Work Style Project, Shinryo
Corporation has transformed the initial atmosphere of thinking
it was something impossible to one where it is easy to take paid
leave and go home early. We will continue to execute a wide
range of initiatives with the aim to realize better work styles.
*The three Group companies—Shinryo Technical Service Corporation, Shiroguchi,
and Daiei Denki—involved with system design and installation

53

SHINRYO Report 2023

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
Challenge 45 Logo

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 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 of new work style, promoter, and secretariat: Gather feedback from each department and review
Company-wide measures
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)

87

First Year

Second Year

Third Year

Fourth Year

Fifth Year

Sixth 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

End of Data
Collection
Due to Expansion of
Initiative to All Sites‒‒

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

97%

90%

90%

Model Sites
Total:142

Model Sites
Total:121

Model Sites
Total:229

Year-on-year change inovertime

–3.3

–2.6

–2.1

+1.7

–2.7

–3.3

PointsPointsPointsPointsPointsPointsRate of annual paid
leave taken by
employees and yearon-year change

60%

62%

72%

64%

85%

87%

+3 points year
on year+2 points year
on year+10 points year
on year-8 points year
on year+21 points year
on year+2 points year
on year%

SHINRYO Report 2023

54

Build Refreshing Environments Rich with Creativity

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

Employee satisfaction(Target: 4.0 or above)

3.2

Promotion of Health Management
Health Declaration

Health Management Promotion System

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 work with the Health and Safety Committee, healthsupervisors and managers in charge of health management,

President
Executive in Charge of Health Management, New Work StyleManagement 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

HealthConsultation
OfficeCoordination

Kankenpo
Health InsuranceSocietyand industrial doctors at each business throughout 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. Therefore,
we held lectures on depression and dementia for these older
employees as well as a locomotive syndrome* classroom tosustain the function of locomotive organs. Other healthpromotion efforts include a Woman’s Health Seminar center
upon gynecological diseases and illnesses often affecting
women as topics for all female employees.
*Locomotive syndrome is a condition that reduces the ability to stand and walk due
to the impairment of locomotive organs.

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 Persons Getting
Taken by Employees
Enough Rest by Sleeping

FY 2017

100%

5.4%

99.0%

62.0%

66.0%

FY 2020

100%

69.7%

96.2%

85.2%

72.3%

FY 2021

100%

79.1%

92.4%

87.3%

71.6%

FY 2023 Target

Maintain 100%80%

Maintain 90% or above Year-on-year increase80%

FY 2026 Target

Maintain 100%

100%

Maintain 90% or above Year-on-year increase

90%

Item

Policies/Education

Physical Health• Follow-up after regular health checkup• Health Consultation Office through the industrial doctors (offered once a week)• 24-hour health consultation service (telephone/email consultations)• Support for dental check-ups (provides free check-ups at the headquarters and 1,200 dental clinics
contracted by Shinryo Corporation throughout Japan)• Grants for rubella vaccinations (provides support to employees and family members who live with them)• Implementation of flu vaccinations right in offices (Headquarters, Yokohama Branch, etc.)• Full support for treatments to quit smoking (provides full support to employees who quit smoking forthree or more months after starting treatment)

Mental Health• Implementation 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• Consultation Office through industrial mental health professionals (offered once a month)• Implementation of mental self-care education for new employees• Implementation of mental health education (33 newly appointed managers and 37 specialized
education candidates took this program in fiscal 2022)

SHINRYO Report 2023

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 • Employees who do not have 20 days of total annual paid leave carried over from the previous year andprovided in the current fiscal year may take special leave (paid) according to their tenure at the company
paid leavein the event of an absence for the reason of sickness after all of the annual paid leave is extinguished.
Leave acquisition promotion
system• Project 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• Refresh 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• Release 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• Publication 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 • Revisions of the retirement age to 65 (60 before the change in April 2020) with raises, promotions andof senior employees with richongoing additions of points for retirement benefits from the date of joining of the company to the age
experienceof 65• Life plan seminars for 58-year old employees
Promote active participation • Implementation 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• Japan invitation program for overseas Group companies (annual seminar, but not held in fiscal 2021)• Practical technical training of engineers from the SHINRYO (PHILIPPINES) CO., INC.
• Implementation 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 • Establishment 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

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 the next level. The
broad curriculum such as elective external seminars by duty andposition and practical education according to department andoccupation also establishes a development training system able
to ensure the continued learning of each and every employee.
Group training by level and year
Managerial position
promotion training

Advanced test

Chief promotion
training

Training for 20th year after joining

Corporate Divisions,
Branches andAdministrative
sections
Manager ofDevelopment
Training

Competent
promotion

ReportingOrders

Education and Training Department

Introductory test,
etc.

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

Senior chief
promotion training

Reporting

New Employee
Training and Education

OrdersDevelopment Training System

Training for engineers (on-site management skills, BIM, etc.)
Education for marketers and administrators
Promotion for the acquisition of CPD* points*Continuing Professional Development (CPD) refers to points employees can earnby acquiring certifications and participating in seminars in the continued education
program for engineers advocated by the government.

Training and Education for Diverse Human Resources
Active Participation of Human Resources Regardlessof Education, Age or Nationality
Shinryo Corporation has translated the Japanese in its company
philosophy that states to “have leadership, irrespective ofeducation and age” to include nationality in the English
translation. To develop as a global enterprise, we need to build
an environment able to cultivate and facilitate a wide range ofhuman resources to actively participate unbounded by nationality.

Education for Female Employees
In August 2022, we held an education opportunity for all
female employees offered both in-person and online. This
opportunity thoroughly explained Shinryo support programsand various work styles in addition to deepening understanding
about one another across generations and occupations to build
supportive relationships.

Human Resources Active on the Global StageAs the Group expands business overseas primarily in Asia andthe Middle East, Shinryo Corporation has a program that makes
a public offering for people who want to work overseas that
focuses on junior employees for the purpose of nurturing humanresources who can actively participate on the global stage.
After three years of service in an overseas assignment, theperson may further hone their skills abroad or move into an
active role in a domestic assignment based on their goals andcareer development.

Training in Japan for Engineers from Overseas
As the construction industry in Japan struggles with a serious
labor shortage, Shinryo Corporation began employing
engineers from overseas in Japan in 2015. In April 2022, four
engineers from the Philippines came to Japan for the first timein three years. Currently, all of them are taking an active role
primarily in design operations.

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SHINRYO Report 2023

Presentation During the Training

Lecture During the Training

Training for Mid-career Hires
Shinryo Corporation provides training to mid-career employeeswith experience working at another company or institution. We
offer opportunities to deepen understanding about importantmatters that include the founding spirit and basic philosophy inaddition to the management vision. In addition, we provide
company policy, regulation, compliance, health and safety
management training.

Initiatives to Address Priority Subjects

Human Resources with Diverse Skills
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.

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.

New Employee Training
Education ProgramsStart of Training at the New Kofu Dormitory
The overall training and education at Kofu Dormitory
for approximately one year is an ongoing tradition at
Shinryo Corporation since its founding. Employees whoenter the company in the same year are able to build
bonds by living and learning together. This acts as anopportunity to alleviate concerns about the job andseek advice from those with more experience inmeetings held by each team at the dormitory.
In April 2023, the Kofu Dormitory will move to NishiTokyo City, Tokyo. The new Kofu Dormitory can offer ahigher level of convenience, increase participation of
female employees, and address the challenge of measures
to prevent the spread of infections.

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)
Practical on-site training and education (administrative)
Practical sales / accounting training
and education (administrative)*These programs were not heldin fiscal 2021 due to the
COVID-19 pandemic.

Overseas short term
training system*

Secondary training
and education

Primary Training and Education
Image of completed new Kofu Dormitory

VOICE
Riku Arifuku
Sales Section 1, Sales Department 1
Tokyo Metropolitan Area Division

We weren’t able to stay at the Kofu Dormitory due to theimpact of the coronavirus pandemic, but I did value thetime I spent with my colleagues whether at dormitory
events or on days off. These opportunities really deepened
our bonds with one another. Although I have only beenworking at Shinryo for one year, I think the time I spent at
the Kofu Dormitory has been invaluable. In addition to
gaining specialized knowledge practically on site, I also
learned how good human relationships build a workfriendly environment. This experience also helped me feelfirsthand how important it is to greet and bow tocolleagues when building these relationships. I will takeadvantage of everything I learned, which I know will help
me cultivate a better workplace environment in the future.

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 for roughly six months
after the primary training and education for not only technicalemployees but also administrative employees on construction sites
in metropolitan areas. Senior employees are in charge of thispractical education and teach a broad range of knowledge,
including overall management operations related to processes,
quality and safety as well as handling procedures for work drawings
and the main equipment. This helps deepen understanding
about its business through practical training on construction
sites, which are most important to Shinryo Corporation.

Education by Assignment
Shinryo Corporation provides practical education by assignment
by dividing engineers and administrators. Engineers take part intraining to learn about work drawings using 3D-CAD software
while administrators learn the basic foundation to sales andaccounting through hands-on training. These programs also
provide an opportunity to reaffirm the attitude as a professionalin secondary training after the initial training is done.
SHINRYO Report 2023

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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
Executive Officers communicates reports on the status of work
execution by executives and resolutions of the Management
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 ofsystems, organizations, and work activities. In addition, it has
performed audits of not only domestic and overseas

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
Auditing

Financial Auditing

Board of Directors
Executive Officers
Appointment/
Supervision

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 ismandated by the Companies Act, Shinryo Corporation has
performed reviews of the system as necessary, and works tofully secure compliance and enhance consistency andefficiency 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

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SHINRYO Report 2023

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 training held in October 2022, we assumed an earthquake
struck outside of the metropolitan area and confirmed
procedures in the system to recover business in coordination
with areasafflicted by thedisaster toreview theeffectiveness.

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

Construction Sites
On-site ProjectManager

Headquarter
Divisions

Headquarters
Recovery Group• Disaster Prevention
Office InstallationGroup• Information
Gathering Group• Rescue Group• Headquarters
Building Recovery
Group• 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

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,
such as quality, safety, the environment, compliance andinformation, and to continue and recover business as quickly as
possible. Shinryo Group has put in place Risk Management

Regulations that gather basic risk management items andCrisis Management Measure Regulations. We created specificresponse guidelines to ensure the ability to rapidly respond to
not only risks in Japan and overseas. In October 2022, weformulated an Overseas Safety and Crisis Management Manualas specific guidelines to respond to crises arising overseas.

Risk Management System

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 March 2022,
Shinryo Corporation also conducted e-learning on malware
attacks.

[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

Response to the COVID-19 Pandemic
We established the Shinryo Group Risk Response Task Force
while advancing efforts to prevent the spread of the virus at allof our business locations worldwide starting at the end ofJanuary 2020 to guide the decisions and execution of measures
to ensure business continuity. In March 2022 as an ongoing
effort from the previous year, we provided COVID-19 vaccines(occupational inoculations) to roughly 1,300 employees.
We strove to properly manage these vaccines during the
inoculations.

Risks

SHINRYO Report 2023

60

Build Refreshing Environments Rich with Creativity

Compliance
Legal Compliance System
Compliance Promotion System
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.

Compliance Promotion System diagram
Decision-making Body
Board of Directors
ReportingPresident
Management Council

Shinryo Group Code of Business Conduct

OrdersAudit
Division

Compliance promotion function
Compliance Committee
OrdersExpansion of
education andrelevant measures
Guidance/support

3 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

1 Pursue customer satisfaction by standing in customers’
positions.
2 Pursue management efficiency for the sake of shareholders.

Reporting
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.

Reporting andConsultations

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.

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SHINRYO Report 2023

Thorough Compliance to Guidelines for Anti-corruption
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 respond tochanges both statutory and political in a timely manner while
continually making revisions. In July 2022, we revised theseguidelines in light of amendments to Guidelines for thePrevention of Bribery of Foreign Public Officials. All of theJapanese employees who work at overseas bases as well as
executives and employees from local companies participate intraining about these guidelines.

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 compliance training

93%(Target: 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
2022, we provided practical education based on the Collectionof Compliance Examples. 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.

to easily offer feedback and make inquiries about compliancethrough a questionnaire.

Launch of an Internal Reporting System
Shinryo Corporation has revised its Compliance Reporting andConsultation Regulations with the objective of preventing legal
violations or inappropriateness as well as quickly discoveringand correcting signs of these issues. Pursuant to theWhistleblower Protection Act, we have set up and are running
an internal reporting system that places emphasis on theprotection of whistleblowers. The SHINRYO Hotline has also
been set up as a reporting and consultation service in an effort
to raise awareness.

SHINRYO Hotline Reporting and Consultation Service
Target Trainees

Training Content

Engineers

Compliance violations likely to occur
on construction sites

New employees

Explanation on Compliance Guidelines

New mid-level employees Explanation on Compliance Guidelines
Newly promoted
employees

Companies and complianceManagers

Explanation on civil code amendments

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

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. Liaison meetings in fiscal 2022 reviewed and discussed
educational approaches and effective materials to further
heighten compliance awareness.

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
Shinryo Corporation advocates and sincerely practices therespect of human rights and individuality of all people inbusiness through its Standards of Conduct. Shinryo
Corporation also has declared its support and signed onto theUnited Nations Global Compact. We are advancing ourbusiness activities in accordance with its four areas and ten
principles, including human rights. We recognize the respect forhuman rights as one essential duty of any corporate entity andpromote initiatives to ensure the respect of human rights.

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

P53, 54

Cooperation withpartner companies• Health and safety activities on construction sites through the Health and Safety Council P51• Promotion of a supply chain with human rights considerations via the Shinryo CSR Procurement Guidelines

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

P52

P62

SHINRYO Report 2023

62

Sustainability Promotion Activities at Shinryo Group Companies

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

Daiei Denki Co., Ltd.

Support of Life-Cycle Management for Construction
Equipment

A Better Work-Life Balance

As a company specializing in construction equipment renewals
and maintenance and management services, Shinryo Technical
Service Corporation not only enhances the value of building
assets but also uses the utmost care in making proposals
toward long-term comfort during building use. This Group
company coordinates with the manager at Shinryo Corporationin charge of the installation to execute maintenance andmanagement taking into account regular preventative
maintenance of equipment and a reduction in management
costs, in addition to supporting life-cycle building management.
Shinryo Technical
Service Corporation
also emphasizes basic
technical training to
improve the technicalskills of its employees.
It even holds study
sessions for
employees to acquire
Works Execution
Equipment Serviced and Managed by Shinryo
Managing Engineer
Technical Service Corporation
certifications.

Shiroguchi Co., Ltd.
Use of the Siphon Waste Water System
Sanitation systems for condominiums in recent years
emphasize resident preferences, which increase the demandfor diverse layouts in rooms requiring plumbing. Typically,
sanitation equipment could only be installed near the drainage
standpipes connected to slanted horizontal piping. Upper andlower floors generally had the same layout, but the siphon
waste water system makes any incline unnecessary giving totallayout freedom. Since last year, Shiroguchi has been furthering
the adoption of this system centered upon condominium
kitchens. In the future, the company will strive to provide evengreater comfort by expanding the siphon waste water system
to washrooms, modular bathrooms, and utility systems.

Siphon Waste Water System Installation

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SHINRYO Report 2023

Daiei Denki takes part in Shinryo Group Challenge 45 initiativethat aims to reduce overtime to further excel in its work stylereforms. This initiative works to enhance the efficiency ofvarious operations. For example, employees identify challenges,
take advantage of ICT tools, support business processes of
construction sites, and visualize schedules. Therein,promotional posters about thework style reforms created foreach construction site aredisplayed on site to create good
opportunities for customers andemployees from other companies
to understand these initiatives aswell while generating greater
momentum for each activity.

Promotional Activity Poster Madeby an Employee

Shinryo Kougyo LTD.
Development of a Disaster Response Ultra-Light
Submersible Pump
Localized torrential rains in recent years have caused frequent
flooding, making measures to handle drainage during floods apressing issue. Shinryo Kougyo developed and commercialized
an ultra-light submersible pump that can handle ten times thedrainage capacity as conventional submersible pumps forconstruction. The company has bundled this portable ultralight pump with a generator, high-pressure hose, floodlights,
and all the other incidental equipment necessary for drainage
into a compact package. This innovation realizes a system thatcan be loaded onto a two-ton truck, which can quickly deal withfloodwaters when dispatched in an emergency. Shinryo Kougyo
will continue to advance this development with the aim offurther enhancements to its product lineup toward even lighter
product options.

Compact Drainage Pump Package

Ultra-Light Submersible Pump (SP50)

Sustainability Promotion Activities at Shinryo Group Companies

Akita Castle Hotel Co., Ltd.

Global Staff Co., Ltd.

Barrier-Free Mindsets Initiatives

Start of On-site Support Services

In March 2022, the Japan tourism Agency certified Akita Castle
Hotel as the first barrier-free hotel in Akita Prefecture under its
Barrier-free Mindsets Certification System for Tourist Facilities.
With the aim to be the most guest-friendly hotel for anyone,
the Akita Castle Hotel has been renovating hard aspects of the
facility, conducting training courses to cultivate supporters of
persons with dementia andvisual impairments in aneffort to ensure barrier-free
hospitality. The Akita Castle
Hotel will always provide asafe and comfortableenvironment while doing its
utmost to have a spirit of
hospitality that can bring thejoy of a hotel to everyone.
Training to Cultivate Supporters for

Global Staff has launched various on-site support services inlight of revisions to the Labor Standards Act which will go into
effect in the construction industry in 2024.
A shift of photographic, organization, static pressure and lift
calculation, meeting minute production, and other work to theback office as well as outsourcing of patrols around on-site offices
is alleviating the labor burden on construction sites ( P50).
Global Staff will
provide logisticalsupport on construction
sites with Shinryo
Group at the core as away to continually takeon the challenge ofassisting better work
Photo at Construction Site
style reforms.

Visually Impaired Persons

SHINRYO (HONG KONG) LTD.

SHINRYO VIETNAM CORPORATION

Ongoing Social Contribution Activities

Training to Increase Employee Engagement

SHINRYO HONG KONG is supporting Open Door Community
Services activities as a private non-profit organization that has
been providing volunteer activities and community services
since 2011. The company participates in a wide range of these
activities, such as recreational activities held forunderprivileged children and food and daily commodity drives.
In 2022, The Hong Kong Council of Social Service selected
SHINRYO HONG KONG
as a Caring Company(scheme to build
cohesive partnerships
between business andsocial service partners).

SHINRYO VIETNAM puts tremendous effort into training for
employees new to the company. This training helps employees
understand the company and makes them feel secure about
their desire to work for the company over the long term. The
program takes time for senior staff to not only explain the
SHINRYO VIETNAM history, philosophy and business but alsointernal rules, salary systems, and other topics that employees
have a vested interestin. SHINRYO VIETNAM
hopes this increases thetrust people feel for thecompany as well as
improves the
motivation of each andevery employee.

Volunteer Activity

New Employee Training

SHINRYO INDONESIASHINRYO MALAYSIA

Promotion of BIM Use

Goals Set to Raise Safety Awareness

SHINRYO INDONESIA has been using BIM not only for design
but also for customer proposals and briefings since establishingits BIM promotion department in 2020. Even when explaining
drawings or systems in ceilings and other hard-to-see places,
the company can share 3D images, which have been raved
about by customers. The Shinryo Corporation Digital Promotion
Department also conducts regular meetings to exchange ideas
about usage examples, execute trial joint inspections of models
using an internal cloudenvironment withmultiple people, andexpand the BIM
technology acrossorganizationalboundaries in other
ways.

SHINRYO MALAYSIA has set specific goals in an effort to raise
the safety awareness of employees and staff working on
construction sites. In fiscal 2022, the company set goals that
included the number of health and safety training sessions andan increase in favorable examples of safety patrols. Each
construction site also furthered initiatives mainly lead byon-site project managers, such as review training programs andthorough review and reinforcement of safety management. In
addition, regular safety
meetings share theprogress of activities
and strive to sustain
every employee’s
motivation towardachieving these goals.

Joint Inspection Using a Cloud Environment

Health and Safety Training on Construction
Sites

SHINRYO Report 2023

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 withlocal communities.

Japan Construction Occupational Safety and Health Association Activities
Shinryo Corporation belongs to the Shinjuku, Nakano, andSuginami Chapter of the Japan Construction Occupational
Safety and Health Association Tokyo Branch that encourages
activities to prevent occupational accidents in the constructionindustry and promotes worker skill training. We are also incharge of the secretariat tasked with duties that include thesharing of information about health and safety as well as
seminars and educational training for the roughly 140
corporate members.
In 2022, Shinryo Corporation also acted as chair of its
chapter providing health and safety supervisor training
necessary for health and safety management as well as courses
on the project notifications necessary for large-scaleconstruction sites that have a risk of serious occupational
accidents, which are attended by many member companies. In
addition, we are striving to take the lead of health and safetywith the cooperation of the Labor Standards Bureau, such as
patrolling construction sites within our jurisdiction.

On-site Patrols

Special Member Company Training

Ongoing Donations to the Disaster andHumanitarian Organizations

Part-time Instructor Activities atUniversities

Shinryo Corporation has been a supporting member of the
non-profit organization Japan Voluntary Organizations Active
in Disaster (JVOAD) since 2018. This organization provides asystem to quickly obtain information from disaster-afflicted
areas to make contributions according to needs.
In light of the growing number of serious and more frequent
natural disasters of modern times and need for support indisaster-afflicted areas over the longer term, we also
continually donated funding to organization that actively
support the recovery of disaster-afflicted areas. Since 2019,
Shinryo Corporation has made ongoing donations of 5 million
yen to JVOAD to provide relief to people and for recovery
support activities of areas afflicted by disaster. We have also
been providing support to overseas organizations since 2022,
donating 5 million yen to the United Nations High Commissioner
for Refugees (UNHCR) that protects and supports refugees
and evacuees internationally as a UN Refugee Agency.

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.
Course track-record
Name of University

Classes taught

Meijo University

Construction Equipment Engineering 2

Tsukuba University ofTechnology

Specialized Courses in Eco Environmental
Systems and System Engineering

Osaka Metropolitan
University

Construction Equipment I

Tokyo University of
Science

Advanced Ventilation Systems

Setsunan University

Studies on Building Services

Support for Culture and the Arts
Shinryo Corporation promotes activities to support the development of superb and vibrant arts and culture.

We support the following organizations:
NHK Symphony Orchestra, Tokyo/Orchestra Ensemble Kanazawa/Osaka Symphony Orchestra/Osaka Philharmonic Orchestra/
Kanagawa Philharmonic Orchestra/Kansai Philharmonic Orchestra/The Kyushu Symphony Orchestra/Sapporo SymphonyOrchestra/New National Theatre, Tokyo/New Japan Philharmonic/Sendai Philharmonic Orchestra/Central Aichi SymphonyOrchestra/Tokyo Symphony Orchestra/Tokyo Metropolitan Symphony Orchestra/Tokyo Nikikai Opera Foundation/Tokyo
Philharmonic Orchestra/Nagoya Philharmonic Orchestra/The Japan Opera Foundation/Japan Century Symphony Orchestra/Japan
Philharmonic Orchestra/Japan Performing Arts Foundation/Hiroshima Symphony Orchestra/Asami Maki Ballet/Yomiuri Nippon
Symphony Orchestra

65

SHINRYO Report 2023

Third-party Opinion

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 KKManaging 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 JapanK.K.). Mr. Hidemi Tomita has also been involved in numerous other roles during
his career, including his service on government committees and involvement withinternational standards.

The SHINRYO Report 2023 brings together information from
Shinryo Group profile and business overview to the corporate
history in a very accessible manner. It also appropriately
presents information to generate understanding about its
sustainability initiatives and the Group as a whole.
The report even summarizes the fours strategies foundedin the 15th Three Year Management Plan newly adopted by
Shinryo Corporation, while at the same time organizing thevalue creation process. This value creation process
recognizes and very clearly presents material subjects basedon changes in the external business environment, mediumterm strategies, and results achieved through business, inaddition to the final outcomes of the Create a Freshening
World management vision. Readers can distinctly see theintegrative thinking of Shinryo Corporetion’s management.
I think the Innovation Hub covered in Feature 1 is anorganization core to the medium-term strategies. The report
includes definitive themes about the goals of thesestrategies as well as specific examples. In particular, I see
open innovation as an extremely important aspectconsidering new business development and sustainability
strategies. The Shinryo Shinjo Building example in Feature 2
demonstrates the amazing potential effectiveness of thisproject to not only contribute to a reduction in thecompany’s own greenhouse gas emissions but also theemission reductions possible worldwide through the various
technologies introduced into the headquarters. I believe thepoints covered by these features really hit the mark at theright time.
As for the promotion of sustainability, the report clearlypresents the promotion system alongside the four priority
subjects (materiality) while demonstrating the uniquenesseach has to Shinryo Corporation.
For example, Priority Subject 1: Contributions to a
Decarbonized Society presents extremely excellent
information about initiatives to mitigate greenhouse gas
emissions in the supply chain. Shinryo Corporation not only
discloses its Scope 3 emissions but also illustrates each
initiative meant to tackle the main Scope 3 categories. I feelthe report uses an honest approach in clarifying the
trajectory of these initiatives.
Moreover, Priority Issue 4: Building Refreshing
Environments Rich with Creativity really grabs the reader’sattention, especially the information disclosed about how
Challenge 45 is adapting to the revised Labor Standards Act.
We can easily understand the specific progress that has
been made in both the promotion system and outcomesthus far.
The information about materiality includes 2022 activity
results both as KPI and in a list, which gives a very clear
overall picture. However, I think it would be beneficial todisclose data about the progress made over time fornumerical data in the future because some items only
include the results for the single year.
Furthermore, legislation is rapidly advancing in eachcountry in recent years based on the UN Guiding Principles
on Business and Human Rights. As demonstrated by Japan’s
release of guidelines on human rights in supply chains,interest in business and human rights is growing. Companies
will find human rights due diligence initiatives andmanagement of mechanisms to handle grievances done inaccordance with these types of guidelines indispensable.
Therefore, I hope to see Shinryo Corporation further bolster
its current human rights initiatives.

Reflection on the Third-party Opinion
Toshiya Terao
Executive Officer in Charge of Sustainability Promotion

I would like to thank Hidemi Tomita for his invaluable feedback about our sustainability promotion activities. As an initiative to
mitigate greenhouse gas emissions and adapt to the revised Labor Standards Act, we are putting particular effort into
promoting Challenge 45. Shinryo Corporation has built a company-wide system and is rolling out a wide range of measures. I
am very encouraged by the praise Hidemi Tomita has given these efforts. In regards to our reporting about the KPI activity
results Mr. Tomita said could be improved, Shinryo Corporation will consider ways to properly present its results over time
toward the disclosure of information for three fiscal years while also continuing to advance activities toward achieving its
goals. We also strongly feel the importance of human rights. We will systematically organize the initiatives considering our
stakeholders to date and shift to the review and execution of human rights due diligence. Shinryo Corporation will always
strive to make contributions to the development of a sustainability society through our businesses.

SHINRYO Report 2023

66

COMORE YOTSUYA/YOTSUYA TOWER, 5th Floor, 1-6-1,
Yotsuya, Shinjuku-ku, Tokyo 160-8510, Japan
Published in January 2023