Shinryo Corporation CSR Report 2014

World
Create a Freshening World

Corporate Information
Company Name

SHINRYO CORPORATION

Major Group Companies;

Headquarters Address

2-4, Yotsuya, Shinjuku-ku, Tokyo

Shinryo Kogyo LTD., Akita Castle Hotel,

Telephone+81-3-3357-2151 (Main)

Kantoreiki Co., Ltd., Ryoei-Kogyo Co., Ltd.,

Date of Establishment

February 23, 1956

Shinryo Technical Service Corporation,

President,
Representative Director Takeshi Kagami
Number of Employees(As of the end of September, 2014)

2,001 people(nonconsolidated)
4,973 people(including Group companies)

Capital

3.5 billion yen

Global Staff Co., Ltd., Shiroguchi Co., Ltd.,
Daiei Denki Co., Ltd., Bikoshaen Co., Ltd.,SHINRYO (HONG KONG) LTD.,TAIWAN SHINRYO CO., LTD.,SHINRYO (PHILIPPINES) COMPANY, INC.,
Thai Shinryo Limited,
SHINRYO (MALAYSIA) SDN. BHD.,SHINRYO SINGAPORE PTE LTD.,
PT. SHINRYO INDONESIA,SHINRYO VIETNAM CORPORATIONSHINRYO CORPORATION Headquarters

Business Field●Design and construction of various building services

1●

Environmental control
service work

air conditioning and mechanical ventilation system / industrial air conditioning and mechanicalventilation system / constant temperature and constant humidity system / environmental
reliability testing system / clean room system / bio-clean room system / dry room system /dynamic ice storage system●

Plumbing, drainage andsanitary service work

water supply system / hot water supply system / gas supply system / soil and waste drainage
system / kitchen equipment system●

Automatic control service work

automatic control system / building management system / industrial automation system●

Fire Fighting service work

automatic fire alarm system / smoke purge and smoke extraction system / evacuation
guidance system / indoor and outdoor fire hydrant system, sprinkler system, carbon dioxide
firefighting system and other types of fire extinguishing system●

Electric service work

power reception and transformer system / main and submain power distribution system /lighting and small power system / extra low voltage system / lightning protection system /power generation system●

Urban utility service work

district heating and cooling system / waste transportation system / energy supply systems●

Information management
service work

various control and management systems for utility plant facilities, industrial production
facilities, building facilities and etc.

●

Cogeneration service work

power generation system / heat recovery system●

Power Plant service work

ventilation and air-conditioning system for nuclear power plants, thermal power plants andfuel cycle related facilities and R&D centers / special filtering system / waste treatment system●

Environmental sanitation andhygiene service work

potable water distribution system / sewage collection and disposal system / greywater
recycling system / sewage treatment system / industrial waste water treatment system /waste treatment and dust collection system●

Industrial production service work pharmaceutical and food plant facility / petroleum-related facility / other plant facility●

Refrigeration service work

freezing and refrigerating system / ultra-low temperature and high accuracy temperature
control system●

Special service worksolar energy utilization facility / aquarium facility / aquaculture facility / swimming pool system/ bio-hazard facility / air quality control system / weather simulation facility / snow making
facility●Design and construction ofbuilding

clean room / plant building / interior finishing work / associated construction work forbuilding services / general building facility●Sales of air-conditioning
equipment

air conditioner and other heating and cooling product / fan and blower / sanitary ware / otherproduct related to air-conditioning and ventilation

Shinryo Corporation CSR Report 2014

Table of Contents

Business Performance Trends

3 Message from the President●Orders Received

7 Business Network[Million yen]
250,000

238,630

234,795

9 CSR Philosophy

200,000

192,150

11 CSR Statement and Materiality

171,430
150,000

145,925

154,332

153,273

13

100,000

Feature 1

Shinryo Supply Chain
System

A streamlined operation model together with
our partners

50,0000
FY 2010

FY 2011

FY 2012FY 2013■ Consolidated

FY 2014

15

Feature 2■ Non-Consolidated

Globally Expanding
People and Technology●Net Sales

Connected through people and technology[Million yen]

To become an environment creation company trusted
throughout the world

250,000
209,301

203,008

200,000
166,428150,000

157,080

157,840

17
158,000

156,872

Training and Developmentof Human Resources

Passing technology, knowledge and experience tothe next generation through development of humanresources who can act globally

100,000

50,00019 Initiatives in Challenges and Results

0
FY 2010

FY 2011

FY 2012FY 2013

FY 2014■ Consolidated ■ Non-Consolidated●Ordinary profit
7,772

21 Environment / Consumer Issues

25 Fair Operating Practices

7,750

6,845
6,000

CSR activity topics

24 Organizational Governance[Million yen]
8,000

Feature 3

28 Human Rights / Labor Practices

5,736

5,404

4,000

3,789

30 Community Involvement andDevelopment

2,000
1,236
0
FY 2010

FY 2011

FY 2012FY 2013

FY 2014■ Consolidated ■ Non-Consolidated●Target period
Centering on FY 2014 (October 1, 2013 to September 30, 2014),
including some periods before and after.

●Net assets[Million yen]
120,000

116,180

112,246
100,322

100,000
90,156●Editorial policy
The intent of this report is to enable all our stakeholders todeepen the understanding of Shinryo Corporation’s CSR (corporatesocial responsibility) activities.

92,993103,117

92,14780,000●Scope of report
As a rule, CSR activities of SHINRYO CORPORATION are reported.
Some activities of Japanese and overseas Group companies arealso reported.
●Reference
ISO26000
GRI (Global Reporting Initiative)
Sustainability Reporting Guideline 4th Edition (G4)60,00040,000●Publication dateCurrent: December, 2014 Next: December, 2015 (scheduled)

20,0000
FY 2010

FY 2011

FY 2012FY 2013

FY 2014■ Consolidated ■ Non-Consolidated●Departments responsible for publication and contact point
CSR Promotion Division, SHINRYO CORPORATIONTEL +81-3-3357-2151 (Main) FAX +81-3-3357-4914

Shinryo Corporation CSR Report 20142

Message from the President

Create a Freshening WorldAs a Company concerned with the realization of a comfortable andsustainable environment, we continue to focus our eﬀorts and resources
to the development of a harmonious global society.

Introduction
Since being founded in 1956, Shinryo Corporation
has continued to be participated in a wide rangeof activities with building services at the core of
our focus. In particular, we conduct our businessas a Company leading the field of HVAC (Heating,
Ventilation and Air Conditioning) concerned withcreating optimum environmental living and working
situations, responsibly and with high ethicalstandards.
In recent years, we have established systems
that enable us to respond to the many and varied
needs and requirements of our customer’s throughclose collaboration with group companies whose
principal businesses activities concern sanitaryand electrical services.

The Company philosophy, management
vision and start of CSR Activities

Takeshi Kagami
President, Representative Director
Shinryo Corporation

3

Shinryo Corporation CSR Report 2014

At Shinryo Corporation, the company philosophy
remains that of our founder encompassing thespirit of our employees. We continue to hold thefounding spirit that is embedded in the company

Company Philosophy

Shinryo Corporation CSR Statement
We, Shinryo Corporation, based on our management
vision, declare following three initiatives to evolve into
an environment creation company.

This company philosophy expresses the life philosophy and business philosophy
which was the belief of our founder, Chairperson Masaru Kagami (deceased).
Shinryo Corporation was established in order to embody this philosophy in thebusiness world. These three principles serve as the roots of Shinryo Corporation,and they are the foundation for all thinking, decision-making and action of
executives and employees.

philosophy close to our heart and strive toimprove the partnership with our Customers forthe collective benefit of society.
In recent years, we have placed significant
emphasis on the development and promotion of
Corporate Social Responsibility (CSR) activities asrecognition of the importance of our employees
to be further engaged in undertakings that reflect
the spirit of our company philosophy and inform
local communities about our beneficial actions.
As a central pillar of CSR we have improved
environmentally based activities and have engaged
in initiatives that positively acknowledge our
responsibility to Society.
As a result of our efforts we are pleased to
publish the first Shinryo Corporation CSR Report for2014. To consider and develop the CSR of Shinryo
Corporation, we have adopted the motto of“Creating a Freshening World” as the management
vision to clearly define the objectives we aim torealize. In addition we have formulated the Shinryo
Corporation CSR Statement, as a strategy basedon our company philosophy and management
vision in striving to realize the world we desire.

1

We will provide high quality, resource saving,energy saving production through new operation
model that makes full use of leading edge
methods, and our own unique one stop
service that achieves most suitable andcomfortable life cycle management.

2

We will expand these technologies globally andengage in solving social challenges, of preventing
global warming and safe, secure and effective useof energy.

3

We will engage in creation of a foundation of
all business activities that is managed highly
transparently and having a business climate thatis easy to work in.

International Activities
Spreading the message of “Creating a Freshening
World” to the different regions.
The desire to develop our vision began in 1972
when we started business activities overseas,
often ahead of other companies within our field ofoperation. Currently, our business is expanding inmany regions including Asia and Middle East. We haveachieved the completion of successful construction
Projects delivering Air Conditioning Services, District
Cooling System and Cogeneration Plants andhave received favorable Customer evaluations andrecognition in all regions. We believe that this is due
to not only the technologies that Shinryo Corporation
offer but also from close cooperation between staff in
all our overseas operations.
To further develop our social responsibility to
the international communities in which we operate
Shinryo Corporation has announced participationin the United Nations Global Compact and haveregistered as a participating company in FY2014.
In exercising Social Responsibilities on an
I n t e r n a t i o n a l s t a g e , w e w i l l p ro m o t e C S R
activities in relation to the Ten Principles of theUnited Nations Global Compact in respect toShinryo Corporation CSR Report 20144

human rights, treatment of labor, environment

innovation and continue to enhance and refine provenconsiderations and the prevention of corruption.

technologies for the benefit of future generations.

Research and Development

Human Resources Development and Training

We have been proactively and extensively been
engaged in Research and Development sincesetting up the industry’s first research center for air
conditioning technology in Shinagawa-ku, Tokyo in
1970. In 1990, we moved to Tsukuba Science Cityin Ibaraki Prefecture and established our first classResearch and Development Center which contains
facilities un-paralleled within our industry. Shinryo
Corporation’s constant focus of effort in research
produced results and solutions that are utilized in
the various facility related technologies we possess.
In addition to the broad focus on Research andDevelopment, we are evolving coordination with thesales, design and construction functions to promoteadvancement of pioneering construction technologies,
products, and systems. We believe that our
cumulative efforts will yield considerable technological

Our human resource development is characterized
by the training systems deployed at the employee
training dormitory “Kofu Dormitory”. At Shinryo
Corporation, people are considered to be ourmost valuable asset and through employees, whojoined the company in the same year, spendingtime together at the Kofu Dormitory, we harness
the value of building strong ties and long lastingclose inter-personal relationships. Strengthening
training systems enables the employees to growindividually and respond to ever changing socialand economic situations and be ready to confront
the most pressing environmental issues. Employeesthat mature through the Shinryo Corporation’s
technology and personal development initiatives
demonstrate the motivation and ability to make apositive contribution to society.

Milestones
1956 to 1999
1956

1957

1958
1960
1961
1964

1966

1967
1969
1970

1972
1973

1977
1978
1979

1982

5

Established our Headquarters at 45 Nishikubo Tomoecho,
Minato-ku, Tokyo and founded our company with 5 million
yen in capital
Received an order for Shin-Otemachi Building, the largest
building in Japan at that time. Established the foundationof our company
Opened the Osaka Office (currently Osaka Branch)
Moved our Headquarters to its current location at 2-4
Yotsuya, Shinjuku-ku, Tokyo
Opened the Nagoya Office (currently Nagoya Branch)
Adopted a division-based organization system
Established the Construction Division (currently Tokyo
Metropolitan Area Division)
and Equipment Division (currently Air Conditioning
Equipment Division)
Opened the Hiroshima Office (currently Chugoku Branch)
Opened the Yokohama Office (currently Yokohama
Branch)Opened the Sendai Office (currently Tohoku Branch)
Opened the Fukuoka Office (currently Kyushu Branch)
Established the industry’s first research center for
air conditioning technology (currently Research andDevelopment Center)
Opened the Nuclear Power Plant Department (currently
Nuclear Power Plant Division), entered the energy plant
industry for nuclear power use
Realized full-scale entry into overseas construction
Opened the Tokyo Metropolitan Area Facilities
Department (currently Urban Environment Division)
Established a system for handling large-scale projects
such as urban planning and urban redevelopment
Opened the Maizuru Plant
Opened the Hong Kong Branch as a base for overseas
expansion
Established the Overseas Department (currently HONG
KONG Regional Office and SINGAPORE Regional Office)and positioned overseas expansion as a major pillar ofour business
Acquired Level 1 Plumbing Registration from the
Ministry of Construction (currently the Ministry of Land,
Infrastructure, Transport and Tourism)
Established a local company (SHINRYO (HONG KONG)
LTD.) in Hong Kong

Shinryo Corporation CSR Report 2014

1983

1986
1987
1990

1992
1994
1998

Established a local company (SHINRYO (MALAYSIA) SDN.
BHD.) in Malaysia
Opened the Singapore Branch
Established a local company (Thai Shinryo Limited)in Thailand
Established a local company (TAIWAN SHINRYO CO.,LTD.) in Taiwan
Opened a Research and Development Center in Tsukuba
Academic Town
Established a local company (SHINRYO (PHILIPPINES)COMPANY, INC.) in the Philippines
Established the Technical Supervision Division
Established the Safety Supervision Division
Established a local company (PT. SHINRYO INDONESIA)in Indonesia
Acquired ISO 9000s certification

20002001

2005
2007

2010

2011

2013

Acquired ISO 14001 certification
Established a local company (SHINRYO SINGAPORE PTELTD.) in Singapore
Opened the Dubai Branch
Opened the Macau Branch
Established a local company (SHINRYO VIETNAMCORPORATION) in Vietnam
Opened the Abu Dhabi Branch
Established the Administrative Division
Opened (former) the Tokyo Metropolitan Area Division(currently Tokyo Metropolitan Area Division and Urban
Environment Division)
Established the Control & Instrument Engineering Division
Adopted an Executive Officer organizational system
Constructed the new Takahama Plant and transferredfunctions from the Maizuru Plant
Opened the Technical Supervision Division
Opened the TOKYO Metropolitan Area Division
Opened the Urban Environment Division
Opened the Air Conditioning Equipment Division
Opened the YOKOHAMA Branch
Opened the HONG KONG Regional OfficeOpened the SINGAPORE Regional OfficeEnhancing productivity and beyond

Together with all our stakeholders

Presently, the construction industry is confronted

Shinryo Corporation promotes CSR activities

with great challenges. These include the increasing

following the ISO26000 International Standard

material and labor costs and lack of skilledworkers. It is evident that we will be faced withdifficult market situations in the near future that
may result in a rapid decline in demand. Shinryo
Corporation thinks that to simply focus on
increasing productivity to solve these challenging
issues is insufficient and innovative changes inaddressing the factors surrounding production
are required. Amid the current situation, Shinryo
Corporation is advancing their own operation
model called “Shinryo Supply Chain System” which
is not bound or based on the traditional way of
thinking. Through rational and swift coordination
with our business partners (including trading andpartner companies, manufacturers and suppliers)
we will continue to strive to enhance a systemthat will bring added value to all our business
partners and Shinryo Corporation.

in respect of Corporate Social Responsibility,
whilst also making continuous and sustained
efforts to communicate effectively with all of our
stakeholders. As a Company concerned withthe realization of a comfortable and sustainable
environment, we will remain contributing to theconservation of the global environment andsustainable development of society through theearning of trust from the international community
with our openness and sincerity, and by voluntarily
and actively responding to the ever changing
demands of society.
To provide detailed information regarding ouractivities to all stakeholders, we will publish andrelease Shinryo Corporation CSR Report every year.
Shinryo Corporation respectfully requests yourcontinued valuable support and guidance in the
future.

Participation in the United Nations Global Compact
In September 2014, Shinryo Corporation signed asa participant in the United Nations Global Compact
set by the United Nations. Going forward, Shinryo
Corporation will promote business following the Ten
Principles in four areas in the United Nations Global
Compact.
For Shinryo Corporation that make effort in providing
technologies overeas, participation in the United
Nations Global Compact is not just agreeing with thecause but participating in the International Global
Compact is an expression of wanting to grow into a

company trusted by the international community.
Our desire is to make our basis of CSR activities of“Creating a Freshening World” to activities that are
directed toward the world.

The Ten Principles of the UN Global Compact●

Human Rights

Principle １
Principle 2●

LabourPrinciple 3

Businesses should support and respect the protection of internationally proclaimed
human rights; andmake sure that they are not complicit in human rights abuses.

Principle 4
Principle 5
Principle 6

Businesses should uphold the freedom of association and the eﬀective recognitionof the right to collective bargaining;
the elimination of all forms of forced and compulsory labour;
the eﬀective abolition of child labour; andthe elimination of discrimination in respect of employment and occupation.

Principle 7
Principle 8
Principle 9

Businesses should support a precautionary approach to environmental challenges;
undertake initiatives to promote greater environmental responsibility; andencourage the development and diﬀusion of environmentally friendly technologies.

●

Environment●

Anti-Corruption Principle 10 Businesses should work against corruption in all its forms, including extortion andbribery.

Shinryo Corporation CSR Report 20146

Business Network

Continuing to Bring a Freshening World
Shinryo Corporation has been providing air conditioning, plumbing drainage and sanitary
service and electrical facilities friendly to people and the environment, reliable technologicalpower to build production environment to produce advanced products, district heating
and cooling systems friendly to city and district, safe and secure plant facility technologies,
and integrated information systems that support maintenance management and energy
conservation from bases throughout Japan. Additionally, we established bases centering in
Asia and the Middle East to bring refreshingness to the world.
Tokyo Sky TreeⓇ District DHC(Sumida-ku, Tokyo)*DHC: District Heating and CoolingOverseas Network(16 bases)● Regional offices(2 bases)● Branches and centers(6 bases)● Local companies(8 bases)
Minato Mirai 21 Central District DHC(Yokohama City, Kanagawa Prefecture)

DUBAI Branch

Otemachi District, Marunouchi 1-chome District DHC(Chiyoda-ku, Tokyo)

HONG KONG Regional Office
TAIWAN SHINRYO CO., LTD.
MACAU Branch HONG KONG Branch

SHINRYO (HONG KONG) LTD.

ABU DHABI Branch

SHINRYO (PHILIPPINES) COMPANY, INC.
Thai Shinryo Limited
SHINRYO VIETNAM CORPORATIONKL ENGINEERING CENTER

SHINRYO (MALAYSIA) SDN. BHD.

SINGAPORE Regional Office

SINGAPORE Branch
SHINRYO SINGAPORE PTE LTD.

PT. SHINRYO INDONESIA*DCS: District Cooling System

7

Discovery Garden DCS Plant(Dubai)

Kuala Lumpur International Airport(Malaysia)

The Mass Transit Railway Corporation(Hong Kong)

Putrajaya Precinct 1
DCS Plant (Malaysia)

Changi International Airport Terminal 3(Singapore)“Courtesy of Civil Aviation Authority ofSingapore”

The Venetian Macao Resort(Macau)Shinryo Corporation CSR Report 2014

The Hongkong and Shanghai Banking
Corporation Limited, HSBC Main Building(Hong Kong)

Meiji Seimei Kan・Meiji Yasuda Life
Building(Chiyoda-ku, Tokyo)

Marunouchi Eiraku Building
Sumitomo Mitsui Trust Bank
Head Office Building
Bank of Tokyo-Mitsubishi UFJ Marunouchi
1-chome Building（Chiyoda-ku, Tokyo）

Domestic Network(54 Bases)● Headquarters,
branches,
research institutes(10 Bases)● Branch offices,
offices,
sub-branch offices, plants(44 Bases)

Nishi Shinjuku 6-chome Area DHC facilities
3rd Plant DHC(Shinjuku-ku, Tokyo)

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

THE LANDMARK TOWER YOKOHAMA(Yokohama City, Kanagawa Prefecture)

Kinshicho Heat Supply Central
Monitoring System(Sumida-ku, Tokyo)

Kanto Glico Co.,Ltd. Kitamoto Factory(Kitamoto City, Saitama Prefecture)

Sharp Corporation Kameyama Factory(Kameyama City, Mie Prefecture)

Shinjuku DHC Center Central
Monitoring System(Shinjuku-ku, Tokyo)

STANLEY ELECTRIC CO., LTD.
Hatano Factory Building No. 1(Hadano City, Kanagawa Prefecture)

Honda Motor Co.,Ltd., Wako Building(Wako City, Saitama Prefecture)

Shinryo Corporation CSR Report 20148

CSR Philosophy

Management Vision and CSR Promotion System
Shinryo Corporation is conducting business following its management vision and promotes CSR activities basedon ISO26000, a standard regarding corporate social responsibility.
Through comparing the business activities of Shinryo Corporation with the seven core topics of ISO26000,
we strive to contribute to a sustainable society by carrying out CSR management with medium and long-term
viewpoint.

Management Vision
Shinryo Corporation is conducting business activities based on our management vision. Management vision
is what Shinryo Corporation continues to strive for and activities based on it will lead to contribution towardsustainable development of the society.

Create a Freshening WorldIn the Environment

Creation of comfortable and earth-friendly spaces
In the Management

Compliance with laws and regulations and highly transparent management
In the Company

Corporate culture that allows people to grow and easy to work in

Vision, Statement & Management Plan
Contribution to development of a sustainable societyManagement vision

Create a Freshening WorldCSR Statement

Basic
i CSR
CSR

Organ
Organizational
nizationaalgovernancegove
ernance

Environment
ntt

PrioritizedP
i iti d CSR
SRMedium and long-term business
management plan(Three year plan)Community
Commu
unity
involvement
inv
volvemennt anddeve
developm
ment
development

Fair operating
F
Fapractices

Single year business plan

Consumer issues

Labor practices
Human rights

9

Basic
B i CSR
CS

Shinryo Corporation CSR Report 2014

CSR Promotion System
Shinryo Corporation began its engagement in CSR
with its CSR Review Board in 2013. The Review Board
repeatedly discussed CSR appropriate for Shinryo
Corporation, and established the CSR Promotion
Division as a formal department in May 2014. With
the aim of achieving “Create a Freshening World”
based on our management vision, the CSR Committee
was established with a Vice President as Chairperson
as shown in the diagram on the right. We promote
activities together with the CSR executives selectedfrom each section with the CSR Promotion Division at
the center.

●CSR promotion system
CSR Committee

Chairperson (Vice President)

Corporate divisions, Branches
and Administrative sections
CSR executive chairman
General managers or deputy
general managers at Corporate
Divisions, Branches,
Administrative sections

CSR Promotion Division
・Creation and notificationof CSR Basic Plan
・PDCA of CSR activities
・Creation anddissemination of reports
・Report to the CSR
committee

Corporate divisions, Branches
and Administrative sections
CSR executives
・Create the CSR executive plan proposal
・Reports the activities of Corporate
Divisions to the CSR Promotion Division
・Reflection of stakeholder opinions
・Other

PDCA of CSR activities
CSR Basic Plan
CSR Executive Plan Proposal

Plan

Initiatives in energy
Build BIM + supply
B
Life cycle management conservation technologies andchain operation model(LCM) service
low carbonization technologies

Global expansion

Compliance initiatives

Initiatives to insurebusiness continuity
during emergency

Environment
conservationand social investing

Initiatives inwork-life balanceof project sites

Implementation oftraining and humanresources development

Initiatives in diversity

Participation in anddevelopment of
the community

Participation in
the international
agreed scheme

Activities of all employees

Do

Act

Prioritized
CSR

Basic CSR

Feedback to improveFFededegreeof satisfaction

Announcement of activities to stakeholders publicly,
such as through Shinryo Corporation CSR Report
Shareholders

Check

Employees
and families
Partnercompanies

Clients

Stakeholder opinions(satisfaction survey)
Localcommunities

Governmentorganizations

Students

Survey evaluation
organizations*BIM: Building Information Modeling

Shinryo Corporation CSR Report 201410

CSR Statement and Materiality

Shinryo Corporation CSR Statement
We have formulated our strategy based on Creating a Freshening World that incorporates opinions of theemployee as Shinryo Corporation CSR Statement.
To report our business and various activities to realize the statement in easy to understand manner to all
the stakeholders, we have organized the 4 priority subjects to 8 basic themes.
In the Feature, 3 issues are selected and reported in detail.

Shinryo Corporation CSR Statement
The Shinryo Corporation CSR Statement includes medium and long-term business management gives details
contained in the medium and long-term business management plan (three year plan). It is a statement that we
see it necessary to achieve in order to fulfill social responsibilities together with business continuity and growth.
Additionally, the statement is to be revised or newly set after achieving the goals to be a guiding strategy that
corresponds to the times and society.

We, Shinryo Corporation will evolveas an environment creation company
by declaring the following three
initiatives which are based on ourmanagement vision.

We will provide high quality,
resource saving, energy saving
production throughpg new
operattion model that makes
full use
e of leading edgemethoods, and our own u
uniqueone stoop service tha
at acchievesmost suitable and c
comfo
ortablelife cycycle managemegent.

We will ex
xpand theseWe will engage in creation ofW

technoologies
es globally anda ffoundation of all b
busin
ness

engagee in solving socialac
ctivities that is managed
managechallenges, of preventing

hig
ghly transparently and having

global warming and safe,abbusiness climate that is easy

secure and effective use

to work in.

of energy.
Feature 1

11

Feature 2

Feature 3

Shinryo supply chain system

Globally expanding people
and technology

Training and development of
human resources

Providing our own unique

To become a trusted

Passing down technology

one stop service with ourenvironmental creationand know-how through thestreamlined new operationcompany through offeringdevelopment of internationalmodel Shinryo supply chain

environment and technology tohuman resources

systemthe world

P.13

P.15

Shinryo Corporation CSR Report 2014

P.17

CSR Priority subjects Provision of new values to the society
Promote of 3D-CAD
Build a construction supply chain by modularization and innovationin procurement and delivery process● Increase eﬃciency of construction, reduction of construction resourceand environmental impact●

1

Build BIM + supply
chain operation model

2

Life cycle management(LCM) services

3

Initiatives in energy
conservation technologies andlow carbonization technologies

4

Global expansion●●

Provide our own LCM services which combine BIM, commissioning,
CFD and FM technologies

Develop and provide energy related technologies and low
carbonization technologies● Provide optimization and area energy network technology toboth suppliers and customers●●

Improving human basis for the expansion of overseas business

CSR Basic Themes
1 Compliance initiatives
Compliance training opportunities, and implement continuity● Promote use of consultation service “Helpline”● Build PDCA for the Compliance Promotion System● Promote CSR procurement●

3 Environment conservation and social investing
Initiatives to reduce CO2 in construction● Support environment conservation activities●

2 Initiatives to insure business continuity
during emergency
Rebuild BCP (including review of crisis management
measure regulation)● Response to emergencies that include partner companies● Provide emergency supplies to surrounding communities●

4 Initiatives in work-life balance of project sites
Achieve efficiency by reorganization of operation model
Reduce on-site workloads by upgrading logistics support● Improve effectiveness of the holiday system●●

5 Implementation of training and human resources development
Business information management and personal
information protection● Upgrade training system for employees and partners●

6 Initiatives in diversity●●

Introduce rehiring system
Extend the period of working hour reduction systemfor childcare

7 Participation in and development of the community●●

Introduce volunteer leave
Contribute to the community through concluding
disaster prevention agreements with local jurisdictions
and community

8 Participation in the international agreed scheme●●

The United Nations Global Compact
Caring Company Scheme (Hong Kong)

Shinryo Corporation CSR Report 201412

Feature 1

Shinryo Supply Chain System

A streamlined operation model
together with our partners
Recently in Japan, there is a dire problem of skills of experienced workers not
being suﬃciently passed down to the next generation.
This problem is accelerating in the construction industry where work force ison the decline.
Shinryo Corporation believes that the solution to this problem is to promote new
operation models that make use of advanced production methods.
Focusing on BIM data, Shinryo Corporation is building its own communication
data processing tools and implements swift and accurate management and delivery
based on situation such as at on-site and processing. Shinryo BIM solutions and
ICT and various initiatives to coordinate with suppliers contribute not only toresponding to the lack of skilled workers, but also to high quality, resourcesaving, energy conservation manufacturing and creation of a safe and secure
work environment.
We will provide our own one stop service that will realize comfortable andoptimum life cycle management through new operation model of Shinryo supply
chain system.

Purchasing Department●Centralized purchasing using
data●Setting standard unit costs
based on company-wideorder results

Operations Management
Department●Development and utilizationof a distribution management
system/data sharing system

Cooperation

BIM Center●Building Shinryo standard●Strengthening S-CAD
functions

About Shinryo supply chain system
Shinryo Corporation intends to provide our own one stop service centeredon new solution called Shinryo BIM. In achieving this service, cooperation ofbusiness partners in the supply chain is essential. In addition, we will achieve
high quality, environmentally friendly, and highly productive on-site operation
innovation through a number of measures starting with building standard
called the Shinryo standard. These are collectively called the Shinryo supply
chain system.

Solving issues through building the Shinryo supply chain system
Initiatives in quality

13

Initiatives on the environment

Initiatives in labor practice

IssuesIssuesIssuesRapid enhancement ofengineering service is diﬃcult
through extending existingbuilding methods andmanagement procedures.

Initiatives in conservation of global
environment such as energy
saving, CO2 reduction, asbestos
measures, and proper disposal ofindustrial wastes.

Number of workers in theconstruction industry tends todecrease, especially decrease andaging of technicians and skilledlaborers is notable.

Objective

Objective

Objective

Realize high quality engineering
service which does not exist
through innovating manufacturing
and the supply chain.

Build earth-friendly engineering
service through innovating
distribution and reducing
transport energy consumption.

Support accurate judgment
and speedy decision making forconstruction workers throughmanagement of sites using BIM
and ICT.

Shinryo Corporation CSR Report 2014

Strengths of the Shinryo supply chain system
OrdersManufacturers, agents,
trading companies
Delivery date confirmation
ATP

Shipment registration
Transport
Distribution
management
systemQuality control

Budget management

Delivery date confirmation
ATP

Qualitycontrol data
sharing system
5D tool

Process control
4D toolSupportOn-siteBIM

Fabrication
data sharing
systemdata

Distribution
management
systemFabrication

Fablicationcompanies(Building Information Modeling)

Inspection anddelivery of goods

Distribution
management
systemShipment registration

Delivery date management

S-CAD
Creation of construction drawings

Various inspection reports

Construction
management
data sharing
systemTransport
Distribution
management
systemDelivery date confirmation
ATP
Fabrication
Construction area confirmation
Transport Shipment registration

Construction completion area report

Partnercompanies

Services that achieve the supply chain system“S-CAD”

Shinryo BIM solutions

S-CAD is an independently developed 3D CAD softwarethat support BIM and a core technology of Shinryo
BIM solutions. Starting with 3D construction drawing
creation and review function, it also equips construction
procedure simulation, interference check while laying
pipes, calculation of static pressure and lift, materials
tally function, and other various functions to support
various wayof visualizing
construction.

Space management to perform facility renovation,
space scanning system using laser scanner, environment
simulation such as interior air current analysis andtemperature and humidity analysis, and facility
management for maintenance and management.
Shinryo BIM* solutions is a system which meet various
customer needs by improving productivity with S-CAD
and by comprehensively handling large amount of datarequired for construction and facility.

S-CAD Screen*BIM: Building Information Modeling

Shinryo Corporation CSR Report 201414

Feature 2

Globally Expanding People and Technology

Connected through people and technology
To become an environment creation company trusted
throughout the world
Shinryo Corporation aims to become a company loved by everyone andprovides good quality technology that enables creation of comfortable andsecure environment in countries we operate. Together with about 2,000
colleagues working overseas, we strive to grow as an environment creationcompany trusted by the world with our people and technology.

Connecting with people
Starting with the opening of our Hong Kong branch in 1978, Shinryo Corporation has set up bases overseas
focusing on Asia, and expanding business.
The aim of Shinryo Corporation’s overseas business is to take root in each country and local community, andgrow together with the people living there.
To achieve that, local companies operate business at each principal overseas base.

SHINRYO (HONG KONG) LTD.

SHINRYO SINGAPORE PTE LTD.

SHINRYO (HONG KONG) LTD. is most localized base among overseas

About 350 people work at SHINRYO SINGAPORE PTE LTD. Singapore

local companies due to being the earliest established base. About

is a multi-national country resembling Shinryo Corporation’s global

400 staff are at work, and the president and many of the directors

expansion and staff from variety of countries besides Singapore such as

are from Hong Kong.

Malaysia, the Philippines, India, Myanmar, and the UK work together.

Thai Shinryo Limited

SHINRYO (PHILIPPINES) COMPANY, INC.

About 300 staff work at Thai Shinryo Limited. The female general

About 160 staff work at SHINRYO (PHILIPPINES) COMPANY, INC. With

manager of Administrative Department is a role model for thetheir signature footwork, they work abroad in various parts of theadministrative department staff in overseas bases. Many female

world based on the project.

managers play active roles overseas local companies.

15

Shinryo Corporation CSR Report 2014

Connecting through technologies
Prevention of global warming and the realization of safe and secure effective utilization of energy have become
global common challenges.
Shinryo Corporation would like to contribute to solve these issues with technologies.
Cogeneration systems and district cooling technology are the examples of those technologies.

Cogeneration system

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

Petronas Fertilizer (Kedah) Sdn Bhd
Cogeneration Plant (Malaysia)

PTT Utility Co. Ltd.
Central Utility Plant 2 (Thailand)

Cogeneration system

Electric power
Exhaust heat(steam, warm water)

Electric power

Process utilization
Air conditioning

Fuel

Cogeneration system, or combined heat and power, is a technology thatobtains heat and electricity by driving a generator on gas or oil. As shown in the
diagram on the right, heat obtained from operating the system can be efficiently(1) used in the process of plants by generating steam and hot water, (2) used
for air conditioning by recovering heat with an absorption chiller, (3) heating and(4) hot water supply system. The cogeneration system that utilizes heat insteadof just wasting its energy is an excellent energy conservation technology.

Absorption chiller
utilizing exhaust heat
HeatingHeat exchanger
Hot water supply
Heat exchanger

Basic configuration of cogeneration system

District cooling system

Kuala Lumpur International Airport
CGS/DCS Plant (Malaysia)*CGS: Cogeneration System

Putrajaya Precinct 1
DCS Plant (Malaysia)

The Venetian Macao Resort
Large Scale Chiller Plant (Macau)

District heating and cooling systems
Hospitals

District heating and cooling systems is a technology installed in a district energy
center to provide energy for heating and air conditioning and hot water supply
for multiple buildings. Compared to the system which installs an energy centerin each building, the energy aggregate type district heating and cooling systems
can contribute to prevention of global warming by reducing emissions such as
CO2 and NOx. In Asian countries, only cooling system is installed.
In 1970, we installed the first district heating and cooling systems in Japan in
Senri Chuo district, Osaka. Even now, Shinryo Corporation conducts more than
40% of construction in the Japanese domestic market.

Officebuildings

Commercial
facilities

Hot waterand steam

Chilledwater

HotelsEnergy center

Overview of district heating and coolingsystems

Shinryo Corporation CSR Report 201416

Feature 3

Training and Development of Human Resources

Passing technology, knowledge and experience to the next
generation through development of human resources who
can act globally

New employee training and education
First year full training dormitory system in Kofu Dormitory is a Shinryo Corporation tradition continuing since theestablishment of the company. Kofu Dormitory is the site of human resources training and development where
new employees live and study together to form deep ties between employees that entered in the same year todevelop employees that bear the next generation to have vigorous spirit of challenge . In addition, our training
system provides optimal training curriculum for the engineers and office workers respectively so they can workwith confidence where they are assigned after completion of the training.

Extensive training curriculum

Training dormitory Kofu Dormitory●Primary training
LectureBusiness operations simulation
Technical skill experience activity
Tour of Research and Development
CenterCommunity contribution activity
Tour of our partner manufacturers●On-site training●Follow up training

On-site training

Communication space

Construction drawing (S-CAD) training

Dining hall●Overseas short term training system●Construction drawing (S-CAD)
training (for engineers)●Management and accounting
practical training (for office
workers)●Secondary training
Construction drawing (S-CAD) training
topic presentation
LectureRound table discussion with managers

Training by level, years

Advanced test

Chief
promotion training

Promotion training

General Manager
position training

Assessment of degreeof achievement

Annualimplementation

Managerial position
promotion
Training after
a year and a half

Shinryo Corporation CSR Report 2014

Managerial position
promotion training

17

Training for 20th year
after joining

Senior Chief administrator
promotion training

New employee training
and education

Training for 10th year
after joining

At Shinryo Corporation, people are considered to be our most valuable asset since our establishment. The
techniques, knowledge and experience that all our employees have are indeed our management resources.
Thus, we have been engaging in human resources training and development that bring out the capabilities of
employees to their full potential and vigorous spirit of challenge and a ﬂexible approach.
We can respond ﬂexibly to change of customer needs and global environmental issues, and especially throughdevelopment of human resources to play global roles. We are expanding the technology, knowledge and experienceof Shinryo Corporation to the world.

Overseas training system
Shinryo Corporation has been putting effort into overseas business since 1972 and has been placing importanceon human resources who can play global roles. Thus, we are actively engaged in building the humaninfrastructure of those who are experienced in work abroad by periodic transfer overseas, practical training in
the U.S., and dispatch of flexible human resources from Corporate Divisions in Japan to projects overseas. Since
2014, we have expanded the overseas training system for employees and bolstered our response capabilities inoverseas business to move forward with further overseas development.

Overseas training system

Human resources training and education for overseas local staff

New employees

Shinryo Corporation
promotes hiring ofoverseas local staff
mainly in Asia. We
employ about 2,000
people as of 2014,
and put effort into
Workshop at SHINRYO SINGAPORE PTE LTD.
hiring and training
overseas local staff as well as we do in Japan.

Overseas short term training system
We dispatch all
new employees
to overseas
construction sites.
They stay in the
country for one
week and receive
practical site
Group photo at the Hong Kong training sitetraining. On the site,
employees gain a first-hand understanding of working
and living overseas.
Fourth to eighth year after joining

Overseas practical dispatch system
Employees who have worked as an engineer in Japan for
four to eight years are dispatched overseas for one tothree years to experience full process of overseas project.
Voice

●

For many years, research staff have been dispatched onsite as instructors in order for Shinryo Corporation Researchand Development Center to globally expand our own
technologies. In addition to technical workshops, visiting
construction sites to discuss technical problems on-site leadto the technical skills improvement of overseas local
staff, and strengthening of their technical handling skills.
Voice

Voices of overseas training system participants●

Technical guidance by the research staff ofResearch and Development Center

Japanese employees and overseas local staff havethe same aim, which is completion of the project anddevelopment of Shinryo Corporation. If that is the
motive, then I felt that working in Japan and working
overseas are completely the same.
I thought that I just needed English when I working
overseas, but I realized that I also needed tounderstand the culture, society, history and economyof the country.

Voices of Research and Development Center
Instructors giving technical guidance on-site overseas
I was surprised at how enthusiastically overseas local
staff asked questions at every site.

●

I think we should promote more technology
deployment and further interchange to meet thedesire of overseas local staff to acquire technology.

●

Voices of overseas local staff
I learned about corrosion of piping and sound andvibration countermeasures which I had not studied
before. I would like to start using that from now on.
It was quite useful.

●

Shinryo Corporation CSR Report 201418

Initiatives in Challenges and Results

Main Results of Activities and Future Initiatives
CSR initiatives are set based on provision of new value to the society and basic theme andcorporate governance .

Initiatives

Results in FY2014

Priority subjects Provision of new values to the society

1

2

3

4

Build BIM + supply chain
operation modelLife cycle management (LCM)
services

Initiatives in energy
conservation technologies andlow carbonization technologies

Global expansion

Rationalization of construction utilizing 3D
CAD (S-CAD)

Supply chain model on-site inspection (2 cases), promotion of 3D
measuring instrument utilization (34 cases), promotion of S-CAD
utilization, etc.

Building of a new “operation model”

Consideration of S-CAD usage methods, AR technology verification(1 case)

Improvement of LCM service system

Energy–saving check-up, commissioning, re-commissioning, active
expansion of COP improvement / renewal construction proposals,
etc.

R&D and utilization of energy-related and low
carbon technology

Development of optimal operational control, etc., effective useof district heating and cooling systems / nuclear power facilities,
natural energy, etc.

R&D and utilization of air quality improving
technology

Development and utilization of technology for formaldehyde
removal, tobacco odor removal, etc.

Nuclear power: Initiatives in waste treatment,
decommissioning and decontamination

Strengthening of initiatives for incineration / solidification
technologies for radioactive wastes

Building of human infrastructure toward
expansion of overseas business

Implementation of global personnel transfer system, overseas
practical dispatch programs, overseas short-term training system,
etc.

Basic themes and corporate governance
−

1

2

3

4

5

6

19

Corporate governanceCompliance initiatives

Initiatives to insure business
continuity during emergency

Environment conservation andsocial investing

Implementation of training andhuman resources development

Initiatives in work-life balanceof project sites

Initiatives in diversity

7

Participation in anddevelopment of the community

8

Participation in theinternational agreed scheme

Shinryo Corporation CSR Report 2014

Internal control, operating audit

Continuous review of internal controls and implementation ofoperating audits that include on-site audits

Compliance education

Broad implementation of regular dissemination of compliance news,
case-based education and curriculum for each department, etc.

“Helpline” consultation service

Continuous operation of Helpline and mail-based information
dissemination

Compliance with Organized Crime Exclusion
Ordinance and other related laws andregulations

Implementation of education to reaffirm compliance in employee
training

CSR procurement

Formulation of Shinryo CSR Procurement Guidelines

Information security management

Implementation of information security education

Formulation and promotion of BCP

Promotion of BCP formulation project, with BCP plans under
formulation

Environment management system

Ongoing operation of ISO14001 environmental management system

Visualization of CO2 reduction at sites

Posting of work site CO2 emission reductions at sites and promoteenhancement of awareness

Reduction of vehicle exhaust gas emission

Recommend adoption of environmentally friendly vehicles ascompany vehicles (14% across the company)

Proper handling and treatment of asbestosand hazardous substances

Appropriate removal of asbestos and implementation of appropriate
management / treatment of hazardous substances, etc. inaccordance with guidelines

Promotion of measures for improving
workplace skills and administrative skills

Implementation of various training programs, management position
training, OJT / new technology study groups for each department,
etc.

Dissemination of trouble information

Internal notification of information concerning troubles, recalls,
and accidents

Streamlining by operation model reform

Launch of Shinryo supply chain project

Reduction of on-site work by logistics support

Implementation of on-site support by persons in charge of
construction plans / design / technology management

Improvement of effectiveness of various
vacation systems

Increase in acquisition of project leave“Online Mental Support”

Continuous operation of mental health consultation services

Measures to support the success of female
employees

Policy consideration by female employee investigative team

System to promote to boost active use of
seniors

Implementation of new personnel system for seniors

Employment of people with disabilities

Promotion of employment of persons with disabilities

Relationships with local communities

Implementation of community clean-up activities in Japanand overseas
Support for culture, etc.

The United Nations Global Compact

Participation in the United Nations Global Compact (September
2014)

Caring Company Scheme

Renewal of Caring Company Scheme (2 companies in Hong Kong)

*FY2014 (October 1, 2013 to September 30, 2014), FY2015 (October 1, 2014 to September 30, 2015)

Reference page

Initiatives in FY2015

Comparison with ISO26000 core subjects
Organizational
Human rights
governanceFeature 1
13-14

Labor
practices

Practical application and validation of the Shinryo Standard throughShinryo supply chain project●
Strengthening of the LCM service system that was integrate
Group companies

21

Feature 2, 3
15-18

24

Promotion of development / sales / installation of various energy
conservation technology and low carbon technology

Promotion of technical and personal exchanges with overseas
local companies

Continuous review of internal control systems●

Fair
operatingpractices

Consumerissues

●

●

●

●

●

●

●

●

●

●

●

●

●

●

●

●

●

●

25

26

●

Environment

・Restructuring compliance promotion system
・Creation of overseas versions of compliance guidance・Continuous implementation of compliance enforcement education(100% implementation)・Continuous implementation of information security education andverification of its effects

Formulation of BCP plans, and implementation of comprehensive
drills22-23

・Continuous operation of ISO14001 environmental management
system
・5% increase in CO2 emission reduction compared with FY2014
・Adoption rate of environmentally friendly vehicles as company
vehicles: 20%
・Continuous implementation of proper removal, management, andtreatment (100% implementation)

Feature 3
17-18

●

●

●

●

●

●

●

●
●
●

●

●
●

●

●
●
●

●
●

●

●

Continuous implementation and improvement of various training
programs and OJT for each department●
Feature 1
13-14
28

●

●

●
27

Community
involvement anddevelopment

Promotion of operation model innovation through the introductionof the Shinryo Standard

●

●

●

●

●

●
●
●

29

Continuous investigation of systems to promote activities by all
employees, including female and seniors

●
●

30

Continuous implementation of community clean-up activities andsupport for culture in Japan and overseas

6

Participation in subcommittee activity of the United Nations Global
Compact

●
●

●

●

●

●

●

●

●

●

●

●

●

●

●

Shinryo Corporation CSR Report 201420

CSR Activity Topics

Environment / Consumer Issues
Shinryo Corporation has acquired environmental management system (ISO14001:2004) certification at all of
its Corporate Divisions and branches, and engages in continuous environmental conservation activity.
Shinryo Corporation has established management systems for the handling of asbestos, in order to secure
the safety of consumers and construction workers.

Energy saving eco-project in headquarters building
We renovated our headquarters building which wasbuilt in 1970 into a model building for environment
and energy saving. We did so through only renovating
facility systems, under the concept “Making Yotsuya,
Tokyo into Tasmania.” Continuing from the first year
after the renovation, operating performance in thesecond year (FY2013, April 2013 – March 2014)
exceeded our targets for energy and CO2 emissions
reductions. We are undertaking continuous energy
saving measures and operational improvements toreach our final targets of a 40% reduction in energy
consumption and 37% reduction in CO2 emissions(both compared to FY2009).
We are using natural energy technology such as
solar cooling systems, photovoltaic,
and energy saving equipment,
including high-efficiency air-coolingheat pump chillers and cogeneration
CASBEE (Renovation)systems, to increase energy usage
S Rank certification
efficiency.
mark●Effects of reducing energy consumption and CO2
emissions due to renovation in headquarters building
Primary energy consumption (GJ/year)
Performance prior
to renovation
15,000Future targets

Targets
cleared

34％

Targets
cleared36％

40％

10,0000
FY2009FY2012FY2013
FY2014FY2015FY2016(2009.4-2010.3) (2012.4-2013.3) (2013.4-2014.3) (2014.4-2015.3) (2015.4-2016.3) (2016.4-2017.3)■Performance ■Targets
CO2 emissions (t/year)
700
Performance prior
to renovation
600

Future targets

Targets
cleared500

31％Targets
cleared

33％

37％

400
0

®

FY2009FY2012FY2013
FY2014FY2015FY2016(2009.4-2010.3) (2012.4-2013.3) (2013.4-2014.3) (2014.4-2015.3) (2015.4-2016.3) (2016.4-2017.3)■Performance ■Targets

Initiatives aimed at energy saving technology and low carbon technology
After acquiring ISO14001 certification in May 2001,
Shinryo Corporation has been undertaking Energy
Management System (EMS) activities for 13 years.
With particular emphasis on reducing energy
consumption during operation, we actively propose
to our customers the adoption of energy saving
technology and low carbon technology in the designand construction of facilities.

●Energy saving efficiency through proposal or
adoption of energy saving systems and equipment●Representative energy saving and low carbon technologies

15

Highly-eﬃcient operation of heat source equipment● Use of heat sources from exhaust heat recovery● Use of renewable energy● Installation of cogeneration system● Adoption of high-efficiency equipment for air conditioners
and packaged air conditioners● Reduction of power for conveyance of heat
● Reduction of ventilation load
● Introduction of Shinryo Energy Management Service (SEMS)

Energy reduction rate (%)
26.8
25.9

CO2 reduction rate (%)
26.3
25.2
25

25

20.1

20

20

15.4

15.2

14.7

14.3

15

●

21

Shinryo Corporation CSR Report 2014

0
FY2010FY2011FY2012FY2013
FY 2014■Energy reduction rate (air conditioning) ■Energy reduction rate (sanitation)■CO2 reduction rate (new construction / renovation)0

To clearly indicate the effect of low carbon technology, we changed ouraggregation standard in FY2014 and began releasing the results of the CO2
reduction rate.

Visualization of CO2 emission reduction on-site
Large amounts of CO2 are generated in manufacturing
process for the materials used in construction, fuel fortransporting the materials to work sites, and various
processes for the processing and installation ofmaterials and equipment. For over 30 years, Shinryo
Corporation has engaged in the reduction of CO2
emission on-site. In particular, we have made CO2
emission reductions on-site visible from 2008 and arevigorously pursuing reduction activities.

Reduction methods born from creative
ingenuity

3. Optimization through prior validation
We implement comparative validation of required
quality and blueprints, using computational fluid
dynamics (CFD) simulations before construction forspaces with high expected air conditioning load,
including large spaces such as atriums and theaters
as well as places requiring high-level cleanliness suchas operating rooms. Conducting such prior validation
enables the optimization of equipment details. By thisoptimization, CO2 emissions and running costs can be
reduced through conservation of resources.

A variety of CO2 reduction methods and technologies
have been implemented through creative ingenuity
on-site, with over 50 such methods and techniques
standardized. Below is a look at three frequentlyadopted items and their effects.
Example of analysis result using CFD : temperature distribution of music hall.

1. 3D-MAPS (3D measurement system)
We use the 3D-MAPS system based on surveying
instruments for 3D measuring and positioning on-site.
Through this, we are able to reduce the amount of
CO2 generated through reducing readjustments during
construction, which conserve resources.

Environmental communication project
We convert CO2 emission reduction to area of forest
plantations and to gasoline-based travel distance, andcommunicate this to employees every month. Throughthis activity, we enhance awareness concerning CO2
reduction.
●Visualization of CO2 reduction

Measurement work using 3D-MAPS

2. Use of environmentally-friendly materials
and equipment
We are working to adopt environmentally-friendly
materials and equipment that also satisfy quality
requirements. Specific examples include reductionof running costs through the adoption of highefficiency equipment, reduction of CO2 emissions in
manufacturing through the use of recycled materials,
and curtailment of transport vehicle fuel through theuse of lighter-weight materials.

FY2009-2011

FY2012FY2013

FY2014Presenting amount of CO2 fixation from trees converted to area of forest
plantation in terms of area surrounding headquarters
Source: Edited data from Digital National Map
URL http://portal.cyberjapan.jp/index.html

Gasoline
consumption amountkL

Travel distancekm

Equal to 5,762 rounds
around the globe

EarthroundsThis
period2,508

48,662,641

1,217

Cumulative

11,881

230,497,436

5,762

Gasoline consumption saved and travel distance converted to number of rounds
around the Earth

Shinryo Corporation CSR Report 201422

CSR Activity Topics Environment / Consumer Issues

Participation in the Japan Business and Biodiversity Partnership
Shinryo Corporation agrees to the activity of the
Keidanren Committee on Nature Conservation. Also
we are participating in Japan Business and Biodiversity
Partnership and has begun investigating activities
aimed at preserving biodiversity. We are startingby first learning about ecosystems and biodiversity.
While learning much through our participation in theJapan Business and Biodiversity Partnership, we will
investigate initiatives suited to Shinryo Corporation.

About the Japan Business and Biodiversity Partnership
The Private Sector Engagement Initiative on Biodiversity
was established on May 25, 2010 as a voluntary
program centered on the business world to promoteprivate sector participation in implementing treaties
such as those on conservation of biodiversity and its
sustainable usage. The Japan Business and Biodiversity
Partnership is an initiative of multiple stakeholders,
including businesses that agree with the theme andwishes to conduct activities in line with the Action
Policies (1 or more items) of the Japan Business andBiodiversity Partnership Action Policies put forth by theInitiative, as well as organizations, NGOs, researchers,
local governments, governments, and other parties
that support those businesses.

Treatment of asbestos and hazardous substances
Since the establishment of the Ordinance on
Prevention of Health Impairment due to Asbestos,
we have established an international management
organization, held conferences for persons in chargeof asbestos management, implemented patrols ofasbestos removal work sites in Japan, and operated ourown “asbestos construction cycle.” By doing so, we aremaking all-out efforts to prevent health impairments toemployees and workers during asbestos removal workand to prevent asbestos dispersal into the atmosphere.

Local staff wearing protective gear

Promoting acquisition of Operations Chief ofAsbestos qualification
At Shinryo Corporation, all employees engaged inconstruction undergo skills courses with the aim ofacquiring Operations Chief of Asbestos qualification. Asof May 26, 2014, 1,053 employees hold this qualification.

Warehouse before asbestos slate tile removal

Example of asbestos removal work overseas
Bangchak Cogeneration Plant (Thailand)
We are committed to asbestos countermeasures
overseas as well as in Japan. One example is in
Thailand, which lacks laws and regulations concerningasbestos. In order to protect overseas local staff andworkers from health impairments, Shinryo Corporation
employees have always engaged in asbestos removal
work under measures based on Japanese law.
The photograph shows asbestos slate tile removal
work performed on-site at a cogeneration plant in
Bangchak, Thailand.

23

Shinryo Corporation CSR Report 2014

Landfilling asbestos slate tiles at a waste
disposal siteOrganizational Governance
Based on our CSR Statement, we are engaged in fostering high transparency in management and a corporate
climate that facilitates work, which are the foundation for all business activities.
We have prepared a corporate governance structure and internal control mechanisms to secure transparency
in management and to conduct prompt decision-making.

Corporate 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 Committee deliberates on importantmatters concerning company management, in addition
to proposals submitted to the Board of Directors.
The Executive Committee communicates reportson the status of work execution by executives andresolutions of the Management Committee, andperforms prior hearings on opinions concerning
matters for deliberation by the Management
Committee. The Audit Department verifies
compliance and the efficacy and efficiency of systems,
organizations, and work activities. From 2013, it has
performed audits of not only domestic and overseas
workplaces but also of construction sites.
The Compliance Committee seeks to enforce andimprove awareness of legal compliance and corporate

ethics by the Committee and supervisors in eachdivision, while also conducting policy decision-making
and corrective guidance with regard to consultations
and information received through the Helpline
consultation service.
●Corporate governance system
General Meeting of Shareholders
Appointment/Dismissal

Appointment/Dismissal

Independent Coordination
Auditors

Board of Corporate Auditing
Auditors

Financial Auditing

Appointment/Dismissal

Board ofDirectors

Executive Officer
Appointment/Dismissal

Auditing

Discussion andReporting[Business Execution System]

Audit
Division

CSR Committee

President
Management
council

Compliance Committee

Board of
Executive Officers

Risk Management
Committee

Corporate Divisions, Branches, Administrative Sections, Group Companies

Internal control
The construction of internal control systems is
mandated by the Companies Act. Since the enactmentof the Act, Shinryo Corporation has performed reviewsof the systems as necessary, and works to fully securecompliance and enhance consistency and efficiency
in work execution.

Overview of Shinryo Corporation’s internal control system(excerpted from resolutions of the Board of Directors)
1. Systems to ensure that the execution of duties of directors, executive oﬃcers, and employees conforms to laws, regulations,and the Articles of Incorporation
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
4. Systems to ensure the eﬃcient execution of duties of directors
5. Systems to ensure reasonable work in corporate groups composed of the Corporation, its parent company, and its
subsidiaries
6. In cases of auditors requesting the appointment of employees to assist the duties of auditors, matters concerning theemployees and independence from the directors of the employees
7. Systems by which directors, executive oﬃcers, and employees report to auditors, and other systems concerning reporting
to auditors
8. Systems to otherwise ensure the eﬀective conduct of audits by auditors

Shinryo Corporation CSR Report 201424

CSR Activity Topics

Fair Operating Practices
Shinryo Corporation has undergone site inspections by Japan Fair Trade Commission and Tokyo District Public
Prosecutor’s Office on suspicion of violation of the Antimonopoly Act, related to facilities construction in the
Hokuriku Shinkansen train. We have received this with seriousness and sincerity, and are pursuing initiatives
aimed at preventing recurrence and incorporating the opinions of professionals and experts inside and outside theCompany. It is the aim of Shinryo Corporation to realize sincere, fair, and appropriate management, and to fulfill
the social responsibilities placed upon the Company’s business. We wish to maintain Shinryo Corporation as acompany with sincerity and integrity, for the practice of compliance and the sound development of our business.

Compliance
Shinryo Corporation believes that the enforcement ofcorporate ethics and legal compliance are the mostimportant issues in management. All of our employees
will comply with laws and regulations and will fulfill
social responsibilities.

Compliance Promotion System
We have established the Compliance Promotion
Division and are otherwise reviewing andstrengthening our systems and structures, to further
enforce corporate ethics and legal compliance.

The Shinryo Group Code of Business Conduct●Compliance Promotion System diagram
We, the employees of the Shinryo Group, have basic
and common awareness of corporate ethics andcompliance in accordance with the Shinryo Group’s
company philosophy and this Code of BusinessConduct and Standards of Conduct, and positively
practice the code of business conduct and standardsof conduct in our daily business with a strong senseof belonging to the company.

Decision-making
Body
Board of Directors
ReportingPresident
Management
CouncilCorrections/
OrdersReporting

The Shinryo Group Code of Business Conduct

Coordination

Compliancepromotion function

Auditing
Function

Compliance
Committee
Corrections/
OrdersReportingCompliance
Promotion
Division

Audit
Division

Education
Pursuit of Various
Measures Guidance
and Support

Auditing

25

Shinryo Corporation CSR Report 2014

RelatedDivisions
Administrative
Department,
othersReporting and Consultations

Corporate
Divisions,
Branches,
Administrative
Sections,
Group companies
Compliance
Supervisors

Every year, our employees sign the Code of Business Conduct page printed
in the Group manual that is distributed to employees, and vow to engage
in strict compliance.

Coordination

Code of Business Conduct 1
Pursue customer satisfaction by standing in customers’
positions.
Code of Business Conduct 2
Pursue management efficiency for the sake of shareholders.
Code of Business Conduct 3
Ensure comfortable and relaxing workplaces, of which
management and staff can be proud to their families.
Code of Business Conduct 4
Comply with corporate ethics, and laws and regulations,and compete fairly, transparently and freely, with ourbusiness partners.
Code of Business Conduct 5
Constantly pursue the ideal state that a member of society
should be, by following social rules.
Code of Business Conduct 6
Fulfill social responsibilities in related countries.

Establishment of the “Helpline” consultation
service

Implementation of various compliance education
Shinryo Corporation enacts ongoing compliance

We have established a consultation and whistleblowing desk, for acts that are or are thought to bein violation of laws and regulations, or acts thought
to be in violation of our Code of Business Conduct
and Standards of Conduct. Its aim is the prevention or
the early detection and correction of legal violations
or internal improprieties. We are working to make it
widely known and thus used not only by employees,
but also by all persons participating in the work of
Shinryo Corporation.

education matched to a variety of opportunities andjob positions. In FY2014, in addition to education held
once per year for each targeted group, we conducted
a wide range of activities that include case study
education (a total of 22 times) focused on mid-level
employees and education with specific curriculum
suited for each department. In addition, we have
prepared an environment that facilitates all employees
to work with constant awareness of compliance,
through actions including the mailing of the Shinryo
Compliance News every month.

Compliance Guidance●Targeted groups and content of FY2014 compliance education
Matters related to compliance that are of particularimportance in the execution of Shinryo Corporation’s
work are collected in our Compliance Guidelines.
Along with the distribution of a booklet to employees,
we have made the content available at all times on
our internal message board.

Targeted groupsContent

All executives and employees

Information security education using e-learning

New employees

Education on fundamentals of compliance

Executives, General Managers

Education on related laws and regulations fromadvising lawyers

Persons receiving promotions

Education matched to grade

By grade

Case study education matched to grade

Corporate divisions / regional
offices

Overall compliance education

Compliance with the Organized Crime Exclusion Ordinance and other related laws and regulations“Never yield to intimidation made by antisocial forces.
Resolutely eliminate them in a courageous manner.”
Shinryo Corporation complies with this stance in
our Code of Business Conduct and Standards ofConduct, and makes it a part of our internal control.
During employee training, we carry out education anddissemination of information.

CSR procurement
We pursue CSR initiatives through cooperation andcoordination with our business partners, especiallypartner companies. We established the Shinryo
CSR Procurement Guidelines, and have asked over

500 companies to cooperate in complying with the
Guidelines. For FY2015, we are considering launchinga survey on the status of initiatives to gain theunderstanding of all of our partner companies.

Shinryo CSR Procurement Guidelines
1）Fair and sound corporate activities
We ask that companies engage in fair and sound businessactivities without unfair competition or actions that obstruct freecompetition.

2) Quality, safety, and business continuity
We ask that you comply with laws and regulations concerning
management of hazardous substances and product safety, andstrive to ensure the health and safety of product users andconsumers. We also ask that you engage voluntarily in initiatives forbusiness continuity planning.

3) Consideration of human rights, labor, and occupational
health and safety
We ask that you respect basic human rights and pursue businessactivities that take the working environment and occupational
health and safety into consideration.

(FY2014 edition)4) Consideration of the environment
We ask that you steadily implement environment conservation
including biodiversity, and environmental management to undertake
business activities with the global environment taken into account.

5) Legal compliance
We ask that you comply with the laws and regulations of all nations
and regions, as well as international treaties and social norms, andconduct business activities founded on corporate ethics.

6) Management of information
We ask that you enact measures against threats to computer
networks, while also appropriately managing and protecting
confidential information concerning business and personal
information, to avoid leaks or improper / illegal use. Please also
strive to prevent leaks of confidential information belonging tocustomers and third parties.

Shinryo Corporation CSR Report 201426

CSR Activity Topics Fair Operating Practices

BCP: Emergency Response that Includes Partner Companies
System and purpose of the BCP Formulation
Project
Shinryo Corporation formulates, maintains, andmanages business continuity plans (BCP) for the quick
restart of business activities in the event of a largescale disaster. Our goal is to maintain sufficient levelsof business activity and restore our business within
acceptable time, on the premise of securing humanlife and safety, in the event of a large-scale disasteror accident / incident that inflicts damage on ourheadquarters, Corporate Divisions, or branches withnegative impacts on business functions. We also
stipulate in advance measures to reduce damage,means of securing business resources, response
methods, and responding organizations during
emergencies.
●BCP Formulation Project structure diagram
President
Risk Response Task Force
Chairperson: Vice President

From here on out, we will flexibly and continually
carry out reviews of risks, based on factors includingchanges in the business environment and changes in
the risk environment.

Structure of partnerships with partnercompanies
In the event that a risk such as earthquake occurs,
we are concerned that Shinryo Corporation working
on its own would result in delayed response to therestoration of customers’ facilities and systems.
In response, Shinryo Corporation is preparing andstrengthening our system for cooperation with partnercompanies, primarily envisioning earthquake damage.
We have constructed a system that smoothlyand efficiently handles equipment restoration, etc.
following an earthquake disaster, by maintaining
lists of constructed properties and having partnercompanies take charge of response to individual
properties.
From here on out, we will advance activities toenhance practical capabilities through the BCP
Formulation Project.

BCP Formulation Project

Project Leader(General Manager, Administrative Department)

Corporate
Division

BranchAdministrative
Section・Person responsible
for Department
・Person in chargeof Department
・Department
Secretariat

・Person responsible
for Department
・Person in chargeof Department
・Department
Secretariat

・Person responsible
for Department
・Person in chargeof Department
・Department
Secretariat

Everyday initiatives
In addition to formulation and implementationof BCP in the broad sense, we are undertaking
initiatives aimed at the maintenance of functions
at each workplace, such as implementing drills forconfirmation of safety of employees and their families
in preparation for any contingency, and enhancementof training with our own firefighting organizations.

Thoughts concerning envisioned risks
Envisioned risks include natural disasters such as
earthquakes, wind, and floods, pandemic influenza,
terrorism, war, fire and explosion, system stoppage,large-scale blackouts, and other accidents andincidents of diverse natures. Among these, in BCP
formulation we envision risks based on the thinking
below, and work to build and strengthen our business
continuity system.
(1) Risks which carry a relatively high risk of future
occurrence(2) Wide-area disasters in which impairment would
extend across infrastructure, etc., creating highhurdles to business continuity(3) Response measures that are applicable to otherincidents

27

Shinryo Corporation CSR Report 2014

Comprehensive firefighting training

Training for persons in charge of firebrigadesStockpile warehouse for disasters

Disaster response bags distributed toall employees

Human Rights / Labor Practices
As a global company, Shinryo Corporation respects human rights in all countries. We have set “Securing
comfortable and relaxed workplaces, which workers can show their families with pride” as part of our Code ofBusiness Conduct, and engage in a variety of activities.

Making use of global human resources
An item within Shinryo Corporation’s Company
Philosophy, “Have leadership, irrespective ofeducation or age” has been translated into English forapplication overseas, with the addition of “nationality”
to “education” and “age.” This Company Philosophy
forms the basis for action at each of our overseas
sites, as in Japan. We believe that making use of
a broad range of human resources, crossing theboundaries of nationality and ethnicity, is necessary
for us to develop as a global company.

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

Initiatives for work-life balance
Leave acquisition promotion system
Believing that the mental and physical healthof employees is of highest importance, Shinryo
Corporation has introduced a system for promotionof various types of leave, as a part of our initiatives tocreate a workplace environment that facilitates leavetaking for employees as they work efficiently andprovide support for each other.
●

Project leave
Our aim is that employees, primarily thoseworking on-site take successive leaves when a site
completes to maintain their mental and physicalhealth and get refreshed before moving to the nextsite. In FY2014, 279 employees took the leave.

●

Anniversary leave

Voice

Voice of an employee taking project leave
I used the project leave system to take a 4-day,3-night family trip to Okinawa. That let me forget
about work and refresh my mind and body, and thentake on the next project in a fresh state of mind. I
think it’s a great system that allows employees tostrike a better balance in work.

●

Voice

Voice of an employee taking anniversary leave
In April, my son’s university entrance ceremony anddaughter’s high school entrance ceremony were
held on the same weekday. Using anniversary leave,
I was able to attend both. Thanks to the system, I
deepened bonds with my family.

●

This system, intended for all employees, allows
leave for commemorative days of employees ortheir family members, with taking three days per
year as its target.
●
Refresh leave
This system expresses our respect for thecontributions of employees at junctions, of 10, 20,
and 30 years of continuous service, as well as ourappreciation to the families supporting them, andallows the taking of successive leaves.

FY2014 commendations for 30 years of service (52 persons)Shinryo Corporation CSR Report 201428

CSR Activity Topics Human Rights / Labor Practices
Children visiting day

Online Mental Support

We hold “Children visiting day” to invite employees’

We established Online Mental Support as aelementary and junior high school family members
to the workplace or construction site. This helps
families understand our work and builds up pride ineach and every employee. In FY2014, the fourth yearof the program, the Shinryo Corporation Research& Development Center in Tsukuba City offered an
observation tour of experiments using a variety of
instruments, to provide study material for children’ssummer research projects. A total of 150 people from
47 families participated.

consultation service for mental health, staffed byoutside professionals. This site allows consultation
through collection of information and through e-mail.

Mental health education
We conduct “mental health education,” centered on
management positions, with the aim of management,
maintenance, and improvement of employees’ minds
and bodies.
In FY2014, 554
persons took courses
in the importance ofmental health in theworkplace.
Mental health education

Children visiting day

Initiatives for diversity (making use of diverse human resources)
Promotion of systems to boost activity byfemale employees

Promotion of systems to boost active useof seniors

In September 2014, we launched an investigative
team of female employees to study systems andenvironments by which female employees cancontinue working with motivation while experiencing
life events such as childbirth and child rearing.
Together with management departments and the CSR
promotion office, theteam will investigate
how female employees
can become evenmore active.

Shinryo Corporation believes that senior employees
who supported the company in the past continue
to provide valuable competitive strength. As such,
we are working to create systems and environments
facilitating the active use of these human resources,in accordance with their capabilities. In FY2014,
we created the “Temporary S” system for those incharge of valuable work, to enhance motivation andevaluation.
●Temporary system matched to capabilities
Category

Job requirements
Senior staff engineers

Female employee investigative team

Voice

Voice of a participant in the female employee
investigative teamWith male employees making up the majority of
employees, we discussed how female employees canbecome more active and contribute to the company.
I think that an environment allowing women to continue
working without undue stress, even after experiencing
life event such as childbirth and child rearing, is whatallows them to work with peace of mind.

1) Temporary S

Overseas local company president or
vice-president

2) Temporary I

On-site agents (stationed on site)
Other on-site staff (stationed on-site)3) Temporary II●

29

Shinryo Corporation CSR Report 2014

Person responsible for on-site response
design (stationed onsite)
Onsite clerical work (stationed on-site)4) Temporary III

Other non-regular re-employed persons

Community Involvement and Development
Shinryo Corporation actively implements and recommends activities that place importance on local communities
and culture as a company that contributes to the sustainable development of society.
We believe that steadily accumulating small, close-at-hand activities is important in engaging with local
communities.

Connections with local communities
Yotsuya Volunteer Clean-up Activities by new
employees
As a part of education for new employees, 61 new
employees in FY2014 conducted a volunteer cleanup activities in the Yotsuya, Shinjuku-ku where ourheadquarters is located. Picking up empty cans andcigarette butts along walkways and planted areas
provided an opportunity to consider environment
conservation. The activity, intended to foster selfawareness as members of the Yotsuya area, is held
every year for new employees.

Tohoku Branch Volunteer Clean-up Activities
In November 2013, we conducted a clean-up
activities at the time of the “Imoni Meet,” an annual
event of the Tohoku Branch. 10 participants picked up
litter on 5 kilometers of road along the Hirose Riverthat flows through Sendai as they headed for the
event venue. Throughthis activity, the day
served as a reminderof the importance ofvolunteering.

Litter pickup along the Hirose River in Sendai

Taking part in the Ecocap Movement
We collect PET bottle caps in special containers anddonate these. This activity, which had been carriedout by each Corporate Divisions and Branches, hasbeen implemented as a company-wide activity from2010. As of September 2014, we have collected anddonated a total of 729,545 caps, enough to yield 848
doses of vaccine through the Ecocap Movement.

Sympathies and support for earthquake- andtyphoon-afflicted regions in the Philippines
We made donations to assist victim relief andreconstruction support in areas hit by the Bohol
earthquake of October 15 and Typhoon Haiyan on
November 8, 2013. Donations through the Japanese
Red Cross Society were 1 million yen from Shinryo
Corporation, and 200,000 pesos through the Philippine
Red Cross from SHINRYO (PHILIPPINES) COMPANY,
INC. We extend our
deepest sympathies
to all of those affectedby the disasters, alongwith our wishes fora fast recovery in the
afflicted areas.
Sympathies from SHINRYO (PHILIPPINES)COMPANY, INC.

Support for culture and the arts
We engage in support for culture and the arts,
through supporting memberships, sponsorships. In
FY2014, we were registered as supporting members
for the following music-related organizations.
List of music-related organizations for which Shinryo
Corporation is registered as a supporting member
NHK Symphony Orchestra, Tokyo / Orchestra Ensemble
Kanazawa / Osaka Symphony Orchestra / Osaka Philharmonic

Orchestra / Kanagawa Philharmonic Orchestra / Kansai
Philharmonic Orchestra / The Kyushu Symphony Orchestra /Sapporo Symphony Orchestra / New National Theatre, Tokyo/ New Japan Philharmonic / Sendai Philharmonic Orchestra /Central Aichi Symphony Orchestra / 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/ Hiroshima Symphony Orchestra / Yomiuri Nippon SymphonyOrchestra ,Tokyo

Shinryo Corporation CSR Report 201430

C

SHINRYO CORPORATION
2-4, Yotsuya, Shinjuku-ku, Tokyo
160-8510, Japan+81-3-3357-2151 (Main)
http://www.shinryo.com/
Published on December, 2014