SHINRYO REPORT 2022
Corporate Profile and Sustainability Report

English Version

-B
Brran
a d PrPromis
omis
om
i e-

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

1

SHINRYO Report 2022

SHINRYO Report 2022

Contents
3

Message from the President

7

Message from General Managers

9

History of Shinryo Corporation

27

Initiatives to Address Priority Subjects
27 Contribute to a Decarbonized Society
37 Contribute to a Resilient Society
45 Realize Safe and Highly Efficient Work

11

Processes

Corporate Profile

51 Build a Refreshing Environments Rich with

11 Corporate Information/List of Executives/

Creativity

Organizational Chart
13 Overview of the Shinryo Group/Business

61

Performance Trends

Sustainability Promotion Activities of
Shinryo Group Companies

15 Business Fields

64

Social Engagement

65

Third-party Opinion

17 Construction Track Record
21 Initiatives at the Research andDevelopment Center

23

Sustainability Promotion Management

Editorial Policy

Target period

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

This report focus on FY2021(October 1, 2020 to September 30,2021), including some periods before
and after.

Informational Dissemination System
Main Publications such as Pamphlets

All activities such as ﬁnancial and non-ﬁnancial information

SHINRYO Report 2022 (Japanese/English)

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

WebsiteComprehensive corporate activities

Sustainability Promotion activities of
Shinryo Corporation and the Shinryo
Group.

Employment information

Reference guidelines andstandards

Corporate information

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

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

Technology
Technology and Services website
https://www.shinryo.com/tech/ISO 26000

Various technical catalogs

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

SHINRYO Report 2022

2

Message from the President

To Achievea Sustainable Society
Takeshi Kagami
President, Representative Director

Supporting Health and Safety
The rampant spread of the COVID-19 infection and theworldwide disarray brought by it has lasted longer thananyone could have anticipated. In spite of all of this,society has persevered with amazing strength. Shinryo
Corporation will also show the same fortitude by fully
executing the last year plan of the 14th Three Year
Management Plan throughout ﬁscal 2022. I believe thiswill foster tremendous growth of our organization.
Not long ago, Japan thought the construction market
would shrink after the Tokyo Olympics and Paralympics
and plunge us into a very harsh business environment.
However, that did not happen. Urban redevelopment plans
are moving forward today after the Tokyo Olympics andParalympics ended, and markets are thriving. Even in thisbusiness environment, the construction industry struggles
to increase orders in the current business environment
with the growing sense of uncertainty in society. Guiding
corporate organizations as society drastically changes will
become even more difficult.

Company Philosophy• Be fair and straightforward• Do your best with all your effort• Have leadership, irrespective of education, age, or nationality.
This Company Philosophy
clearly expresses the Life
and Business philosophy of
our founder Chairperson
Masaru Kagami (deceased).
Shinryo Corporation wasestablished to embody
this philosophy in thebusiness world. These
three principles serve as
the “roots” of Shinryo
Corporation and are thefoundation for all thinking,decision-making and actionof executives.
Company Philosophy (in Japanese)

3

SHINRYO Report 2022

During the ongoing chaos caused by this virus, I amstrongly aware of the importance of crisis management
and ﬂexible business continuity as a corporate group.
Shinryo Corporation has considered how to best support
the health and safety of its employees, their families, andour many other stakeholders and will continue to takemeasures to prevent COVID-19 infection at businesssites worldwide. In 2021, our headquarters and the Osaka
Branch implemented a workplace vaccination program toprevent the spread of the COVID-19. Even though there
was a limited supply, we were able to inoculate employees
at these two sites. I think this proved greatly beneﬁcial in
our ﬁght as a company. We will never let our guard down
as we push forward efforts to protect everyone’s healthand safety.

Challenge of Realizing a Decarbonized Society

I think the importance of seeing through efforts to foster
sustainable development of society has grown during
these highly unpredictable times.
Shinryo Corporation has deﬁned a Company Philosophy,
Management Vision, and Code of Business Conduct. These
give shape to the business outlook and provide the coremanagement platform which allows Shinryo to exist. We
have clariﬁed the relationship between this corporate
spirit and sustainability as the Sustainability Promotion
System, which is also being integrated with management.
Sustainability promotion activities are one driving
force fostering growth of the Shinryo Corporation. As an
environmental engineering company that contributes
to society through technology, Shinryo Corporation
has participated in the United Nations Global Compact
since 2014 and promotes greater sustainability via theconcepts of the Sustainable Development Goals (SDGs).
In 2020, Shinryo Corporation determined priority subjects(materiality) it hopes to achieve. Shinryo Corporation
has four priority subjects: contributions to realize adecarbonized society, contributions to a resilient
society, realization of safe and highly efficient work
processes, and building of refreshing environmentsrich with creativity. These materiality issues have beenorganized by considering global challenges from theimpact of global warming to risks of natural disasters andhuman rights, domestic challenges from a labor shortagein the construction industry to reforms of long working
hours, as well as from a perspective of cultivating an ideal
corporate climate. In 2021, we took this another step bylaying out various action plans and Key Performance
Indicators (KPI) to put these SDG initiatives into practiceas much as possible ( P25-26).

In April 2021, the Japanese government announced atarget to reduce greenhouse gas emissions 46% by 2030
(compared to 2013) and achieve net zero emissions by
2050 in order to achieve a decarbonized society. The
impact of these numerical targets set by government issigniﬁcant. In light of these goals, Shinryo Corporation
set Priority Subject 1: Contribute to a DecarbonizedSociety. This deﬁnes our ambitious target of reducing
greenhouse gas emissions 50% (Scope 1 and 2) by 2030
and achieving net zero emissions by 2050 ( P27).
Shinryo Corporation has always striven to realize asustainable society through its businesses. For example,
we contribute to resource saving through energy saving
proposals during the design stage and through efficientconstruction management. We have also advocatedactivities such as energy-saving proposals during system
operation through commissioning. Going back to 2011,
Shinryo Corporation executed the Energy Saving Ecoproject to achieve extensive energy savings at its
Headquarters building, proving that proper renovations
can enhance energy savings even in a fairly old building.
We will continue to carry out such initiatives throughbusinesses. Besides those initiatives, Shinryo Corporation
always offers proposals for design that will help reduce
the greenhouse gas emissions of our clients—or Scope 3
emissions.
We are currently focusing our efforts on restructuring
the Research and Development Center in Tsukuba
City, Ibaraki as a research and development site fordecarbonization technology. I think this will cultivateeven more leading-edge technology in the future which
will in turn bring decarbonization technology to society.
The new Research and Development Center will take on
the challenge of achieving carbon neutrality (net zero) ofresearch and development activities by 2030 ( P29-30).
This is an extremely aggressive target. However, looking
back 65 years to around when the Shinryo Corporation
was founded, we can see a time when air conditioning
system were still rare and no one thought every building
would install air conditioning systems. Today, it would
be harder to ﬁnd a building without an air conditioning
system. Decarbonization may be essentially the same.
Right now, the targets to realize a decarbonized society
seem unattainable. However, I believe the Shinryo
Corporation cannot shy away from this bold challenge.

Sustainability Promotion System (P23)

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
Practices

Message from the PresidentManagement Vision and Sustainability

Founding Spirit

Management Vision Framework

Consumer Initiatives

Labor practices
Human rights

United Nations
Global Compact

SDGs

SHINRYO Report 2022

4

Message from the President

To Address Priority Issues

Four Priority SDG Subjects (P24)

Priority Subject 2

Contribute to a
Decarbonized Society

Contribute to a Resilient
Society

NIZED SBO

RESILIENNFRASTR
TI

TURE
UC

DECA
R

Priority Subject 1

Priority Subject 4

Realize Safe and Highly
Efficient Work Processes

Build Refreshing Environments
Rich with Creativity

BETTER

EARNE
S

ND

CTIVE C
TA

ATIVE
RE

SAFETY A

Priority Subject 3

OCESS
PR

Road Map to Realize a Decarbonized Society (addition to work style reforms for the purpose of realizing
the ideal work style. We will aim to heighten employee
satisfaction as the overall indicator. We are committed
to compliance for highly transparent and fair operating
practices and view it as the most important management
challenge.

TY
CIE
O

Shinryo Corporation will also actively strive to address its
other priority issues.
Let us look at Priority Subject 2: Contribute to a
Resilient Society. We will support activities by recognizing
technology through our internal commendation program.
I hope we can raise even greater awareness internallyabout the important work the Shinryo Corporation doesto support society through technology.
Shinryo Corporation values construction sites mostof all. We will expand our activities on construction sites
through Priority Subject 3: Realize Safe and Highly
Efficient Work Processes. Shinryo Corporation will aim toachieve on-site operations that are able to improve quality,
prevent technical trouble, and provide safety for everyone
working there while also rationalizing and enhancing
productivity on construction sites.
The robots to draw construction blueprints developed
by Shinryo Corporation are one example of these
initiatives ( P48). The use of new technologies iscritical to further rationalize, mechanize, and digitalize
construction sites. The use of leading technology will also
help heighten the appeal of construction sites. Moreover,
we will support skill evaluations of everyone at our partnercompanies working on construction sites and promotebroader use of the Construction Career Up System tosustain the highest level of construction quality.
In regards to Priority Subject 4: Build Refreshing
Environments Rich with Creativity, Shinryo Corporation
will fully execute the 14th Three Year Management Plan in

P27)
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
Identification and Mitigation ofGreenhouse Gas Emissions

After FY 2017

Restructuring of Researchand Development CenterWork Style Reform
20020

Renovations to Save Energy at Old
Headquarters Building

Promotion of Environmental
Management Systems (EMS)
20
010

Base year: FY 2009SHINRYO Report 2022

2030
20
0

2016-2024

2010-2019

5

20
2040
0

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

Message from the President

Work Style Reform - Challenge 45
Work style reform is a major challenge of Priority Subject 4.
Work style reforms are prone to focusing on the
reduction of long working hours, but the true purpose is toachieve the ideal work style for Shinryo Corporation. This
creates a refreshing and open corporate climate which
fosters a workplace of pride, a sense of accomplishment,
and growth.
These reforms need to achieve a fulﬁlling work-lifebalance and work style driving maximum results in alimited amount of time. As we strive toward this goal,
we must fully adapt to comply with the amended Labor
Standards Act that will go into effect in April 2024 in theconstruction industry.
Shinryo Corporation began its work style reform
initiatives in 2016. I think the Refreshing Work Style
Project has raised awareness throughout the organization
about work style reforms, encouraged employees totake paid leave, and built an atmosphere where people
can quickly wrap up work Even as this corporate climate
becomes more common, we still have been unable to getover that last hump to achieve our overtime reduction
target. Therefore, we have stepped up the level of our work
style reforms in 2021. Challenge 45 has been launched as
an initiative aiming to limit monthly overtime to 45 hours.
The only question is how many months the Challenge 45
initiative can realize the goal of no more than 45 hours ofovertime.
The purpose of the Challenge 45 is to analyze andaddress the reasons for this constant level of overtime.

By identifying and resolving each and every one of these
problems, I hope we can succeed in limiting the amount ofovertime to 45 hours throughout the Shinryo Corporation.
The key to overcoming this challenge is gaining
sufficient experience in a short amount of time withthe aim to realize the ideal work style for the Shinryo
Corporation, which will allow every person to have a
fulﬁlling balance between private and professional life
( P51-52).

To Achieve Sustainability
Modern society has a greater interest in decarbonization
thanks to the SDGs.
A generation where companies earn their reputationby the work done to better society is a fantastic one. The
company philosophy of the Shinryo Corporation has aphrase, “Do your best with all your effort.” We will do ourbest with all of our effort through our business activities
to achieve the SDGs and realize a decarbonized society,which I hope will have the power to support society. We
will continue to work to reﬂect the feedback we receivefrom all of our stakeholders in all businesses activities
in order to become a company speciﬁcally chosen bycustomers. I ask for your ongoing support and guidance inthe future as well.

United Nations Global Compact and Sustainable Development Goals (SDGs)
Shinryo Corporation refers to the concepts of the United Nations Global Compact and Sustainable Development Goals(SDGs) in its sustainability promotion activities and advances sustainability promotion management that has 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 SDGs targets.
These efforts demonstrate the will of Shinryo Corporation to grow as a company earning trust from the internationalsociety as it focuses its strengths into the provision of technology overseas.

United Nations Global
Compact
September 2014

Sustainable Development Goals (SDGs)

SHINRYO Report 2022

6

Message from General Managers

Together with Development Worldwide
Shinryo Corporation will always strive to Create aFreshening World. The business ﬁelds in which Shinryo
Corporation operates to build this world span the globe.
These efforts also contribute greatly to achieving thecentral, transformative promise of the SDGs to leave
no one behind. Our work to build and maintain the air
conditioning and mechanical ventilation system for the
National Centre for Infectious Diseases, which is on thefront lines of the ﬁght to tackle the COVID-19 pandemic,
is one example of this in Singapore. Shinryo Corporation
technology not only helps build a resilient society in theface of the pandemic but also helps provide safe andsecure lifestyles to people. In Indonesia, we are promoting
a new work style with reference to the work style reforms
in Japan. These reforms pursue a work style that drives
maximum results in a limited amount of time rather thansimply reducing the number of working hours to offer a
fulﬁlling work-life balance. This effort also contributes
to building refreshing environments rich with creativity.
The work done by the Shinryo Corporation in each region
around the world fosters our growth together with thedevelopment of a sustainable society and world.

Yasunori Abe
Representative Director, Executive Vice President
General Manager, Global Finance Division & in charge of Overseas Business, GroupManagement & New Work Style

Living Up to the Expectations and Trustin a Generation of Sustainability
This is a generation of sustainability, which will transformhumanity as much as the industrial and digital revolutions.
Our world is seeing the rise of many social issues fromclimate change to food shortages. Companies mustcarry out initiatives to address these social issues andneed to contribute to the development of a sustainable
society through business. As expectations grow for
new technologies to address these problems, I thinkthese times make it essential to incorporate ideas ofsustainability in sales strategies. I believe this means an
era has come for Shinryo Corporation to capitalize on theexpertise it has gained to not only build a single building
but work with the community where it stands to reallyconsider its entire life cycle. Shinryo Corporation has theduty to use technology in the ongoing search to ﬁnd thebest way to build simple ideal systems with tremendous
energy efficiency to help our customers overcome thesechallenges, while always sincerely living up to theirunwavering expectations and trust. I hope our businessactivities will make the Shinryo Corporation a company
which works together with its customers to create social
value.

7

SHINRYO Report 2022

Takeo Yamaguchi
Director, Senior Managing Executive Officer
General Manager, Marketing Supervision DivisionSupport of Social Infrastructure to Contributeto the Realization of a Decarbonized Society

Message from General Managers

Tetsuro Kochiya

The modern construction industry faces challenges fromthe compliance with regulations about overtime hours,
mandated by the amended Labor Standards Act that will
go into effect in April 2024, in the construction industry toa labor shortage on construction sites. The solution is topursue dramatically higher productivity on construction
sites while building safe and attractive workplaces. The
14th Three Year Management Plan rolled out in 2019
introduces various ICT tools and uses BIM and a variety
of other data in addition to providing active logisticalsupport from off site. These measures aim to greatly
enhance productivity on construction sites. In particular,
the advancement of BIM and other digital technology has
the potential to completely revolutionize the way things
are done on construction sites. I believe this directly ties
to approaches for addressing the priority subjects ofsustainability, which are to realize safe and highly efficient
work processes and build refreshing environments richwith creativity. I hope Shinryo Corporation will continue tofoster sustainable growth as an attractive corporate groupby supporting social infrastructure and helping realize adecarbonized society through its business activities.

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

Unity is Strength

Katsuhiko Yakita
Director, Managing Executive Officer
General Manager, Corporate Strategy & Planning Division, Corporate Strategy &Planning Department, & Real Estate Development Department & in charge of BPR
Promotion, Sustainability Promotion & DX Promotion

The most important topics are the Key Performance
Indicators (KPI) set to accomplish the priority SDG
subjects. Shinryo Corporation integrates the SDGs andmanagement by taking on these activities to achieve
our targets. We will contribute to the realization of asustainable society and do everything in our power tobecome the chosen corporate group of customers andsociety. Through these efforts, we will also enhance
corporate value and the sense of employee satisfactionand engagement through the strength found in theunity of work to accomplish common goals. I want thisto become a virtuous cycle which drives our corporate
growth.
The important key to addressing our priority issues isthe use of digital technologies in all operational processes.
The essential purpose of using digital technologies is to go
beyond the convenience found in the shift from analog todigital mediums in order to achieve seamless cooperation
between relevant people and organizations and in turn tocreate new value. The future will most deﬁnitely generate
new value worldwide. Through the strength of unity,
Shinryo Corporation will also create amazing new value toprovide to society.

SHINRYO Report 2022

8

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

Shin-Otemachi Building
Air conditioning system

District Heating and Cooling System

Established

1956

1960〜

1970〜

History of Technical and Human
Resource Development

Initial Meeting to Establish Shinryo
Corporation

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

Company Philosophy
The Company Philosophy clearly
expresses the life philosophy andbusiness philosophy of our
founder Chairperson Masaru
Kagami (deceased).

The First Members Training at the
Takamatsu Dormitory

9

1980〜

SHINRYO Report 2022

1970
Established the industry’s first research
center (Osaki, Shinagawaku, Tokyo)

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 3Dtechnology
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)

Tokyo DomeAir conditioning System

Sharp Corporation Kameyama Factory

Air conditioning System

History of Shinryo Corporation

1988-1997
New Mission and Restructuring ofCore Businesses

Petronas Penapisan (Melaka) Sdn Bhd
Cogeneration Plant

Plant facilities (Malaysia)

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

THE LANDMARK TOWER YOKOHAMA

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

Air conditioning System

THAI KYOWA BIOTECHNOLOGIES CO., LTD.

Plant facilities/civil engineering andconstruction (Thailand)

2000〜

2010〜

Start of Shinryo Group-wide New
Employee Training

SHINRYO Report 202210

Corporate Profile

Corporate Information

List of Executives

Company Name

SHINRYO CORPORATION

Takeshi Kagami

Headquarters Address

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

President,
Representative
Director
Representative
Directors

Yasunori Abe
Tetsuro Kochiya

Directors

Takeo
Yamaguchi
Katsuhiko Yakita
Sayaka Kagami Non-Executive Director
Hideaki Fujizuka Outside Director

Date of Establishment

February 23, 1956

Number of Employees

2,251 people (non-consolidated)
5,453 people (including Group companies)(As of September 2021)

Capital

3.5 billion yen

Construction Business License (Japan) (As of January 2022)

Audit & Supervisory Haruaki Kotani
Board Member

License Number(Special 1) No. 3447 issued by Minister ofLand, Infrastructure, Transport and Tourism

Date of License

March 11, 2020

Toshihito Furuya
Outside Audit &Supervisory Board
MemberKoichi Kubo

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

President & Chief
Executive Officer

Takeshi Kagami*

Executive Vice
Presidents

Yasunori Abe*

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

Date of License

March 11, 2020

Licensed BusinessFire Protection Facilities

Testuro Kochiya* General Manager, TechnicalSupervision Division & in chargeof Group Health and Safety, &Compliance

Main Registered Business (Japan)
Senior registered architect office
Registration Number

No.46232 issued by Governor of Tokyo

Date of Registry

April 10, 2021

Senior Managing
Executive Officer

Takeo
Yamaguchi*

General Manager, Marketing
Supervision Division

Managing
Executive Officers

Takeshi Egi

General Manager, Osaka Branch & incharge of Western Japan

Takao Watanabe General Manager, Tokyo
Metropolitan Area Division & incharge of Eastern Japan

List of qualiﬁers (Japan)
Name of certiﬁcation

Number of people

Professional Engineer Japan (Engineering Management)

3

Professional Engineer Japan (Environmental Engineering)

44

Professional Engineer Japan (Mechanical Engineering)

3

First-Class Plumbing Work Operation and Management
Engineer

1,177First-Class Electric Works Execution Manager

135First-Class Building Operation and Management Engineer

17First-Class Civil Engineering Works Execution Managing
Engineer10

1st class Qualiﬁed Certiﬁed Electrician

31

3rd Class Electric Works Specialist

31

Class A Fire Defense Equipment Officer

336

Class B Fire Defense Equipment Officer

23

Executive Officers

Koichi Kaji

General Manager, Nuclear Power
Plant Division

Katsuhiko
Yakita*General Manager, Corporate Strategy& Planning Division, & Corporate
Strategy & Planning Department,& Real Estate Development
Department & in charge of BPR
Promotion, Sustainability Promotion& DX Promotion

Tatsuji
Yoshimura

General Manager, Asia Business
Division

Kazuto Inabe

General Manager, Urban
Environment Division

Hideki Hagiwara President & Representative
Director, Shinryo Technical Service
Corporation

Satoru Narisawa General Manager, Nagoya Branch

1st-class Kenchikushi (Architect)

42

Qualiﬁed Person for Energy Management

124

Building Facilities Diagnostic Technician

97

Building Mechanical and Electrical Engineer

248

The First Level Instrumentation Engineer

379

Professional Engineer(CxPE: Commissioning Professional Engineer)

4

Takuji Fujisawa

SHINRYO Report 2022

General Manager, Air Conditioning
Equipment Division

Yukitoshi Maeda General Manager, Yokohama Branch
Hideki Furumoto General Manager, Corporate
Communication Department

Naoki Uchiyama In charge of Sales Promotion,
Marketing Supervision Division

Koji Murakami

General Manager, Marunouchi
BranchMasahiko
Kitabayashi

Deputy General Manager, Tokyo
Metropolitan Area Division

Hiromitsu
Fujioka

Deputy General Manager, Tokyo
Metropolitan Area Division

HideyukiNagasawa

General Manager, Kyushu Branch*Executive Officers also acting as Directors

11

General Manager, Global Finance
Division & in charge of Overseas
Business, Group Management & New
Work Style

Organizational Chart
CHP Promotion DivisionMarketing Supervision
Division

BIM Promotion Office
Procurement Department
Quality & Environmental
Management Department

Technical Supervision
Division

Safety & Health Promotion
Department
Corporate Strategy &Planning Department
General Affairs Department
Human Resources
Department
Corporate Communication
Department

Corporate Strategy &Planning Division

DX Promotion Department
Real Estate Development
Department
Corporate Profile

Research & Development
Center
Accounting & Finance
Department
International Administrative
Department

Global Finance DivisionInternational Planning
Department
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 2022

12

Overview of the Shinryo Group

Number of Companies

17

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
7 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
Kenya

Vietnam

Malaysia
Singapore

Indonesia

Business Performance Trends
Orders received

Net sales

Operating income[Million yen]
300,000[Million yen]
300,000[Million yen]
20,000271,143

266,342
246,402260,496259,671

243,890240,000

210,401

209,800
190,014

16,989228,884

240,000

206,184

192,789

233,297

16,00015,18615,084
15,44815,21015,056
14,914

200,743
176,310

183,955
12,000180,000

180,000

120,000

120,000

8,000

60,00060,000

4,000

9,387

0

0

2018
Consolidated

13

2019

2020

Non-consolidated

SHINRYO Report 2022

2021

[FY]

0

2018
Consolidated

2019

2020

Non-consolidated

2021

[FY]

2018
Consolidated

2019

2020

Non-consolidated

2021

[FY]

Business Network84

Net sales

bases

64 Japanese bases
20 overseas bases

Number of Employees

233.2

5,453

billion yen

183.9 billion yen (non-consolidated)people2,251 people (non-consolidated)

SHINRYO CORPORATION

Corporate Profile

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.
Design, manufacture, sales, installation andaftercare services of pumps

Shinryo Kougyo LTD.
Kanto Area
Shinryo Corporation Headquarters
Shinryo Corporation
12 bases such as branches and offices
6 Group Companies

Development of three-dimensional CAD/FM
systems

SYSPRO CORPORATIONInternational tourist hotel

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

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

Ordinary proﬁt

Net assets[Million yen]
20,000[Million yen]
175,000

16,980 16,358
16,00015,777 16,648
15,391

17,342
17,251140,000

12,000SHINRYO (HONG KONG) LTD.
SHINRYO TECHNICAL SERVICES LTD.

125,307132,203

TAIWAN SHINRYO CO., LTD.

155,590152,069

145,278

138,716

136,708

141,219

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

105,000

9,915

SHINRYO (MALAYSIA) SDN. BHD.

8,000

70,000PT.SHINRYO INDONESIA
4,000

SHINRYO VIETNAM CORPORATION

35,00000

2018
Consolidated

2019

2020

Non-consolidated

2021

[FY]

2018
Consolidated

2019

2020

2021

[FY]

SHINRYO SUVIDHA ENGINEERS INDIA
PVT. LTD.

Non-consolidated

SHINRYO Report 2022

14

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

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

Design/Engineering
Concern forEnvironment

Safety andSecurity

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

Energy Saving
Resource Saving

Comfort

15

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 2022

Business 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
Corporate Profile

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 and 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 202216

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)

17

SHINRYO Report 2022

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

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

District Heating
and Cooling System(Chiyoda-ku, Tokyo)

Corporate Profile© 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:

68 (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: 8(Share: 66%)
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: 50(Share: 60%)
District with
sc-brain: 40(Share: 48%)

SHINRYO Report 2022

18

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 Nasu Factory(Otawara City, Tochigi Prefecture)

19

SHINRYO Report 2022

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海外
海外as
OverseasO

Commercial Complexes, Medical Facilities, Public Facilities,
Transportation, Energy Plants and Bio Plants

Air Conditioning and
Mechanical Ventilation Systems

Marina Bay Sands Integrated Resort(Singapore)

Corporate Profile

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 2022

20

Initiatives at the Research and Development Center
Shinryo Corporation established the industry’s first research center in Shinagawa-ku, Tokyo in 1970 with the aim
to Create a Freshening World. In 1990, we opened the largest facility in the industry, the Research andDevelopment Center, in Tsukuba City, Ibaraki.

Facility and high-precision analysis technologies for large scale experiments
The Research and Development Center has facilities such asa large space to conduct large-scale experiments, sufficientutilities, and high-performance HPC servers able to run highly
accurate simulations. Engineers can verify the performanceof systems by running large-scale simulations before starting
construction.
In addition, the Research and Development Center provides
high-precision analysis technologies through analysis
instruments such as various chromatography. To maintainanalysis accuracy, the Research and Development Center has
been registered as a measurement certiﬁcation business andFull View of the Research and Development Centerhas built a management system for analysis technologies andmeasurement equipment.
Registration as a measurement certification businessBusiness classification

Register number

Date of registration

Concentration (in theatmosphere, water, and soil)

Ibaraki Prefecture No. 68

June 2, 2008

Sound pressure level

Ibaraki Prefecture No. 28 February 20, 2009

Oscillating acceleration level Ibaraki Prefecture No. 20 February 20, 2009

Large-scale Experiment Space

Anechoic Room

Environment Simulation Room

Chemical Experiment Laboratory

Open innovation
Cooperative research
Shinryo Corporation cooperates in research with many different
universities, public research institutes and companies to bringabout the highest level of research success. By leveraging
mutual technology and know-how, we are building a system tobroadly expand debate and ideas.

Numerous of visitors
People from all walks of life, from customers to students, cometo tour the Research and Development Center aimed at anopen laboratory. Researchers provide detailed explanations
about the research and development themes using
demonstration equipment and other such tools. The Researchand Development Center also acts as a technical showroomthat offers visitors a look and experience into actual researchand development. We offered tours online in ﬁscal 2021.

Numberof cooperative
research projects

Breakdown of cooperative research

14
18 institutions
researchthemes10 universities
2 public institutions
6 companies

Shift in the number of visitors[Number of visitors (persons)]

600

556

551

560

400

292
183

200

0

2017

21

SHINRYO Report 2022

2018

2019

2020

2021

[FY]

Promotion System for Research and Development
The Research and Development Center is furthering research and development with particular focus on four research regions basedon its seven fundamental technologies. This section introduces some of the new technologies and value created by the Researchand Development Center.

Ultra trace
analysis
Energymeasurement
and analysis

Computational
ﬂuid dynamic
simulation

Field
measurement
and control
Corrosion
research andcorrosion
diagnosis

Seven fundamental technologies
Thermalenvironment
measurement
and analysis

Environmental Control

Noise andvibration
control

Four Research Regions

Energy Management
Research in technology related to energy suchas energy savings, energy creation and energy
storage is advancing.

Production Technology

Digital Engineering

Research into accurate measurement
technology, corrosion diagnosis technology forconstruction equipment as well as measurement
and control technology for noise and vibrations
in equipment on construction sites.

Research is underway for technology to run
equipment optimally based on Building
Information Modeling (BIM) and operationaldata, indoor environmental predictions
through Computational Fluid Dynamics (CFD).

Corporate Profile

We are advancing research into air
conditioning systems that build optimal
environments for people, industrial products
and living things.

Examples of Creating New Technology and Value*• Formaldehyde Removal System• Optimal Heat Source Control Systems

The airflow control technology “U flow system®” and the removal
device “MediECO®-FA” are technologies developed for formaldehyde
control in hospitals. The system combining the two technologies
realizes a safe working environment and an energy-saving ventilation
and air conditioning system.

These optimal heat source control systems achieve the optimal
operation of equipment by using design and operational know-how andenergy simulation tools for heat source systems to derive operational
conditions with the minimal amount of energy consumption.
(Operational data, etc.)
Operational
statusOutdoor air
temperature

Outdoor wet-bulb
temperature/load(Extracts necessary
information)

Temperature/
flow settings(Commands for optimal
operation conditions)

Energy simulations

Derives optimal operation conditions

Load
•
•
•

Optimal cooling water
Temperature settings

Outdoor wet-bulb
temperature

Temperature: 25°C
Flow: 70%

Outdoorwet-bulb temperature

Airflow control technology “U flow system®” Removal device “MediECO®-FA”• Corro−Guard® Non-chemical Corrosion Prevention System• Space Scanning System

Corro-Guard® lengthens the lifespan of piping through technology to
reduce the risk of occurrence of local corrosion and monitor the levelof corrosion. This system improves the water quality with an ion
exchange process without the introduction of rust inhibitors.

A 3D laser scanner measures real spaces and creates BIM models. By
automating the plan for setting up scanners, this system can create
highly accurate models more easily than ever before.

Without introduction of thecorrosion prevention system

BIM modelWith introduction of the corrosion
prevention system

Illustration of Scanner Layout*Please see the Shinryo Corporation homepage for more detailed information. https://www.shinryo.com/corp/rdcenter.html

SHINRYO Report 2022

22

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)
to engage 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 ( P25-26). 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
23

SHINRYO Report 2022

Priority Subjects (Materiality)
In 2020, Shinryo Corporation incorporated ISO 26000 and
Sustainable Development Goal (SDG) concepts as a central
part the 14th Three Year Management Plan. While referencing
feedback from the management team and outside experts,
we also determine four priority SDG subjects (materiality).
There are six Sustainability Development Goals of particularimportance: Goal 7 . Affordable and Clean Energy, Goal 8 .
Decent Work and Economic Growth, Goal 9 . Industry,Innovation and Infrastructure, Goal 11 . Sustainable Cities andCommunities, Goal 13 . Climate Action, and Goal 16 . Peace,

Justice and Strong Institutions. These priority subjects not only
deﬁne important social responsibilities for Shinryo Corporation
to fulﬁll in order to realize a decarbonized and resilient society
but also include goals to better construction sites and provide
refreshing environments unique to Shinryo Corporation.
We will continue to contribute to a sustainable society
by further integrating the SDGs and management while
spearheading reforms at appropriate times, such as when
updating medium-term management plans.

Review Process
14th Three Year Management Plan
ISO26000 Core Subjects

Organize priority
subjects(materiality)
based on these factors

Sustainable Development Goals SDGs

Top management approved
these priority subjects

Determine Priority
Subjects(Materiality)

Process for Considering Priority Subjects

Relevant SDGs

Contribute toa decarbonized society

Realize safe and highly
efficient work processes

More efficient operations and higher productivity are
essential issues when considering the labor shortage in theJapanese construction industry. Internationally, humanrights 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.

EARNE
S

SAFETY A

Relevant SDGs

Relevant SDGs

Contribute toa resilient society

CTIVE C
TA

ATIVE
RE

Priority Subject 3

Priority Subject 2

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

BETTER

OCESS
PR

ND

NFRASTR
TI

Sustainability Promotion Management

Achieving the goals of the Paris Agreement and realizing adecarbonized society are pressing issues as the impact of
global warming becomes more drastic.
As an environmental engineering company, Shinryo
Corporation will strive to reduce greenhouse gas emissions
and take other such measures in its business activities fromdesign, installation and maintenance to research anddevelopment as a way to help realize a decarbonized society.

RESILIEN

Priority Subject 1

TURE
UC

NIZED S
BO

TY
CIE
O

DECA
R

Four Priority Subjects

Priority Subject 4

Relevant SDGs

Build refreshing environmentsrich with creativity

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

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

Group Companies Executive Chairperson

Corporate Divisions, Branches andAdministrative sections Executive Chairperson

Corporate Strategy and Planning Division
Sustainability Promotion Department

Group Company President

General managers or deputy general managers at
Corporate Divisions, Branches, Administrative sections

Group Companies Executives

Corporate Divisions, Branches andAdministrative sections Executives

Creation andnotification of Basic
Plan
PDCA

Creation of action plan proposals
Reporting of activities

Creation of action plan
proposals
Reporting of activities

Creation of reports
Reporting to
Sustainability
Promotion Committee

Reflection of
stakeholder opinions
Other

SHINRYO Report 2022

24

Initiatives to Address Priority SDG Subjects
Shinryo Corporation set Key Performance Indicators (KPI) in
2021 to tackle the priority subjects (materiality) identiﬁed in2020. These KPI will be fully rolled out throughout the Shinryo
Corporation in 2022. The KPI that we have set for the initialﬁscal year aim to build upon the activities already underway.

Priority Subjects (Materiality)

Shinryo Corporation will raise awareness and ensure fullparticipation in these efforts by working to bring understanding
among employees about the ongoing initiatives to address
SDG issues.

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 energysaving 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

Provide high quality equipment andsystems

Improve quality and prevent technical issues through construction
carried out according to a quality manualManage 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 3

Realize Safe and Highly
Efficient Work
Processes

Priority Subject 4

Build Refreshing
Environments Rich with
Creativity

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.

25

SHINRYO Report 2022

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).

Key Performance Indicators (KPI)

FY 2021 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)

37％*FY 2020 Results

27, 32

97％

32—

Include award-winningtechnologies in the SHINRYO
Report

33–35

—

—

Include main initiatives andaward-winning technologies in
the SHINRYO Report

37–44

—

—

Include main initiatives in the
SHINRYO Report

47–48

Start in FY 2022

45–46

Construction cycle implementation
rate

100% implementation rate

Frequency rate

Frequency rate of 0.40 or less

0.14

49

Registration rate of Safety and
Health Council members

Registration rate of 80% or more

72％

49

Sustainability Promotion Management—

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

85%

Rate of annual paid leave taken by
employees

Year-on-Year Increase

Participation rate in compliancetraining

100% participation rate

Review target values
considering thecommitment andeffectiveness.

Start in FY 2022

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

(up 21 points compared
to previous fiscal year)

Start in FY 2022

Deliberate these target
values among themanagement team.

Top management
approved these priority
subjects

52

60

Set KPIKPI Review Process

SHINRYO Report 2022

26

NIZED 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.

Adapt to Climate Change
In October 2020, the Japanese government committed to net
zero greenhouse gas emissions and carbon neutrality by 2050.
The administration followed up this announcement by setting
a goal in April 2021 to reduce emissions 46% compared tofiscal 2013 by fiscal 2030.
The realization of a decarbonized society is an important
challenge to build a sustainable society. Shinryo Corporation
will promote the five items below to ensure initiatives toovercome this challenge are effective.
As KPI for Priority SDG Subjects, we have set Scope 1 and 2

targets to reduce greenhouse gases 50% by 2030 and reachcarbon neutrality by 2050. Shinryo Corporation has set a KPIfor Scope 3 emissions that aims for a 100% implementation
rate of design proposals to reduce greenhouse gas emissions
during use of our systems. We will do everything in our power
to propose even better technologies to our customers. Shinryo
Corporation will also accelerate its research and development
into new technologies to contribute to greater reduction of
Scope 3 emissions.

KPI• 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

Greenhouse Gas Emissions Scope 1 and 2 (Compared to 2009)50
Net Zero• 2030% Reduction• 205037% Reduction as of FY 2020
KPI

Outline of KPI for Priority SDG Subjects (Detailed List on

P32

P25-26)

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
Identification and Mitigation ofGreenhouse Gas Emissions

After FY 2017

Restructuring of Researchand Development CenterWork Style Reform
20020

Renovations to Save Energy at Old
Headquarters Building

Promotion of Environmental
Management Systems (EMS)
20
010

Base year: FY 2009SHINRYO Report 2022

2030
20
0

2016-2024

2010-2019

27

20
2040
0

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

Relevant SDGs

Environmental Management System (EMS)
Shinryo Corporation received the ISO 14001 Environmental
Management System (EMS) certification from theManagement System Assessment Center (MSA) in 2001 andhas been promoting these activities for two decades.
Efforts started by reducing power and paper consumption
before expanding to on-site initiatives from activities toimprove on-site productivity to proposals for reducing CO2 indesign operations ( P32).
In addition, Shinryo Corporation sees legal compliance as
one vital aspect of EMS. Therefore, we have been emphasizing

efforts which adapt to the Waste Management and Public
Cleansing Act, Act on Rational Use and Proper Management of
Fluorocarbons, Construction Material Recycling Act, and othersuch laws and ordinances. We have also been focused on
educating all of our employees and partner companies.
The importance of reducing energy consumption, resource
recycling, and other environmental initiatives is greater thanever before. Shinryo Corporation will engage in even moreexhaustive EMS initiatives to make larger contributions to therealization of a decarbonized 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 tobalance 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• Yokohama Branch• Urban Environment Division• Hokuriku Branch

Initiatives to Address Priority Subjects• Tokyo Metropolitan Area DivisionCorporate Divisions, Branches
and Administrative Sections

ISO 14001-certified Divisions, Branch Offices, andAdministrative Sections

Environmental Promotion System

Company-wide

Shinryo Corporation manages the entire organization throughan Environmental Management Supervisor according todirectives from the executive in charge of environmental
activities. Moreover, we appoint environmental managers as
the person in charge of EMS operations of the corporate
divisions, regional offices, and the administrative sections whoare supervised by the general managers of those departments.
Shinryo Corporation is also building a system to promote
environmental preservation activities.
The Environmental Management Supervisor andEnvironmental Managers lead the actions taken on a wide range
of environmental risks and opportunities, whether environmental
target and compliance initiatives or environmental education
efforts and the response to environmental emergences.

Executive in Charge ofEnvironmental Activities

Environmental Management
Supervisor
Promotion Committee
Secretariat of EMS Office

General managers, general managersof branches and administrative
section representatives
Manager Supervising
Environmental Management
EMS Promotion Committee
Secretariat
Each department and office• Air Conditioning Equipment Division • Nagoya Branch• Nuclear Power Plant Division• Osaka Branch• Electric & Instrument Division• Chugoku Branch• Hokkaido Branch• Kyushu Branch• Tohoku Branch• Research and Development Center• Marunouchi Branch• Administrative Sections

SHINRYO Report 2022

28

Contribute to a Decarbonized Society

Challenge of Decarbonization
Shinryo Corporation has always striven to provide peoplefriendly and environment-friendly building equipment. Since its
founding, we have offered numerous energy-saving
technologies. Since the adoption of the Paris Agreement in

December 2015, society is taken even greater action toward
decarbonization. Shinryo Corporation has also stepped up to
overcome the challenge of a decarbonized society throughtechnology as an environmental engineering company.

Approach to a Decarbonized Society: Restructuring the Research and Development Center
Various global initiatives are already underway to realize adecarbonized society. The reduction of carbon dioxide (CO2)and other greenhouse gas emissions is essential to helping theworld take an even larger step toward a decarbonized society.
This pursuit also means systems must adopt technologies
which can reduce greenhouse gas emissions, which include theintroduction of highly energy-efficient equipment thatminimizes resource losses through optimal designs andbroader use of renewable energy.
The categories with the largest greenhouse gas emissions
throughout the Shinryo Corporation supply chain are Scope 3
Category 11 emissions related to the use of building equipment
after delivery to customers and Scope 3 Category 1 emissions
related to resource harvesting and manufacture of purchased
goods ( P31). To reduce these emissions, we must provide
equipment systems which use as little energy as possible,
precisely grasp the materials used in construction, and design
and install optimal systems with zero waste.
Modern decarbonization needs have become even moresophisticated. Totally new ideas going against convention are

Main Building Mock Up of the New Research and Development Center

29

SHINRYO Report 2022

necessary to address these needs. Therefore, Shinryo
Corporation has restructuring the Research and Development
Center as a site researching and developing decarbonization
technology as an approach to achieve a decarbonized society.
The new Research and Development Center has been
designed to overcome two challenges. The first is the challengeof reducing greenhouse gas emissions through the power of
research and development. Shinryo Corporation will achieve its
target of net zero greenhouse gas emissions from research anddevelopment activities by 2030 by researching and developing
various net zero technologies to implement at research anddevelopment center.
The second is testing new operational processes using BIM.
Shinryo Corporation is striving to provide the best construction
processes that use BIM in an effort to decarbonize the entire
life cycle from the building design and construction throughmaintenance. Our goal is to contribute to a decarbonizedsociety by providing all the technology and expertise gained
from these efforts to society.

CHALLENGE 1

Reducing Greenhouse Gas Emissions through the Power of Research and Development
Shinryo Corporation will also work to reduce Scope 3
greenhouse gas emissions. We will focus more heavily on the
research and development of decarbonization technologies.
The Research and Development Center will validate concepts
leveraging the spacious premises while testing theeffectiveness of some of this new technology. The proposal oftechnologies, products and services in line with customer needs
based on the technology and expertise gained from researchand development will contribute to a decarbonized society.

Shinryo Corporation Greenhouse Gas Reduction Target(Scope 1 and 2)

Acceleration of the Development of Technologies to Reduce
Scope 3 Emissions and Realize a Decarbonized Society

Shinryo Corporation Greenhouse Gas Emissions

Shinryo Corporation has set a target of net zero greenhouse gas
emissions from its business activities (Scope 1 and 2) by 2050
( P27). As a means to this end, we have also set the ambitious
goal of achieving net zero greenhouse gas emissions fromresearch and development activities at the Research andDevelopment Center by 2030. The plan for the main building
wing currently under construction details a Net Zero Energy
Building (ZEB) by 2024 followed by the systematic introductionof technologies to drive energy savings and use renewable energy.

（ % ） Base Year
100

Realization of a
Decarbonized Society

Contribution of the New ZEB
Main building- Contribution of eliminating
greenhouse gas emissions
from research anddevelopment activities- Contribution of reducing
greenhouse gas emissions
from business activities

50

Provision ofTechnologies,
Products, andServices thatContribute to the
Reduction of
Scope 3 Emissions

Customers

ExpansionsofoDecarbonizationnoTechnology

Efforts to Eliminate
Scope 1 and 2 Emissions

0

2009

CHALLENGE 2

2024

2030

2050

[FY]

EnergySavingEnergyCreation

Resource
SavingOptimizing New Operational Processes with BIM
The Ministry of Land, Infrastructure, Transport and Tourism
has even adopted our use of BIM in the construction of thisnew main building as a building production and maintenanceprocess facilitation model project using BIM. Shinryo
Corporation rationalizes construction using BIM through thisbusiness based on the clear benefits of using BIM from thestance of customers placing orders. BIM smoothly connects
operational processes from design through construction torationalize and fully optimize building system work. Our goal isto establish a construction technology consultancy to further
validation in each project.

Use of BIM Throughout the Entire System Life Cycle

Consulting on Construction Technologies
Optimize All System Work by
Smoothly Integrating BIM

DesignInstallation
Planning

Initiatives to Address Priority Subjects

The construction of this new main building provides us with theopportunity to test new operational processes that fully
leverage BIM from design and installation through energy
management and maintenance. It also lets us take on thechallenge of optimizing the construction process. This initiative
aims to improve construction quality and decarbonize every
aspect of the life cycle from the design and installation throughmaintenance. We hope to take full advantage of BIM to provide
our customers with efficient design, construction, andmaintenance processes using the knowledge cultivatedthrough this reconstruction project.

Use of
BIM Data

MaintenanceManagement

DesignInstallation

Consulting on Construction Technologies to Integrate BIM
in Design through Construction

SHINRYO Report 2022

30

Contribute to a Decarbonized Society

Initiatives to Mitigate Greenhouse Gas Emissions from the Supply Chain
Shinryo Corporation strives to identify hot spots that impact
the environment by calculating Scope 1, 2 and 3 greenhousegas emissions. Of the 10,717,000 ton-CO2 emissions in fiscal
2020, most came from Scope 3 Category 11: Use of Sold
Products.

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

Image of the Shinryo Corporation Supply Chain Management
Scope 3

Indirect Emissions from Third-Party Companies Involved with Business Activities

Input into Business Activities

Output from Business Activities

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

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

FY 2020 Scope 1, 2 and 3 Calculation Results (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

Scope 2
Scope 3

Indirect emissions from the use of electricity and heat purchased by Shinryo
facilities
Indirect emissions from third-party companies involved with business activities(total of all categories)

Result (ton-CO2)

386
2,380
10,714,814

1 Purchased goods and services

Emissions from resource harvesting and manufacture of sold goods

202,744

2 Capital goods

Emissions from manufacture and construction of capital assets

13,595

3 Fuel and energy activities not included Emissions from manufacture such as electricity and fuel bought by thein Scope 1 and Scope 2
headquarters, branches and offices

415

Category *1 and 2

4 Upstream transportation anddistribution

Emissions from transportation of goods from seller to construction sites

5 Waste generated in operations

Emissions from disposal of waste produced on construction sites

4,376

6 Business travel

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

1,160

Emissions from electricity consumption of transportation agencies used for
employee commuting

560

7 Employee commuting
11 Use of sold products

23,560Emissions from the operation of building equipment after delivery (operation
period set to 15 years)

12 End-of-life treatment of sold products Emissions from duct and piping waste during demolition
Total of Scope 1 to 3

10,468,204
200
10,717,580*1 Calculations based on the Basic Guidelines on Accounting for Greenhouse Gas Emissions throughout the Supply Chain (Ver.2.3) 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

31

SHINRYO Report 2022

KPI

Outline of KPI for Priority SDG Subjects (Detailed List on

P25-26)

KPI

Scope 1 and 2 Reduction Initiatives
The challenge of realizing carbon neutrality and a decarbonizedsociety is a global one. Shinryo Corporation aims to reduce its
Scope 1 and 2 greenhouse gas emissions 50% by 2030
compared to 2009 and to become net zero by 2050.
Our priority thus far has been decarbonization and energy
savings. Shinryo Corporation has already begun work to achievethese goals. Various initiatives have been reducing ourgreenhouse gas emissions from the Energy Saving Eco-Project
which renovated the old headquarters building in 2011 to therestructuring project of our Research and Development Center( P29).

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

37%

Changes in Scope 1 and Scope 2 CO2 Emissions (FY 2009 Onward)
CO2 emissions [tons per year]

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

4,000

37%
reduction50%
reduction
2030
Reduction
Targets

3,000

2,000

1,000

0
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Scope 3 (Category 1 and 4) Reduction Initiatives
Efforts to improve productivity on construction sites andachieve efficient site management using ICT technology are
only a few of the important initiatives necessary to further the
reduction in Category 1 and Category 4 greenhouse gas

CO2 reduction rate:

[FY]

28

Recycling rate:

88%

Industrial waste emissions and Recycling rate(t)

Industrial waste emissions

90

87
20,000

88

100

88

77

18,533

17,35280
60

12,368
9,891

40
20

5,000

0

2017

KPI

Scope 3 (Category 11) Reduction Initiatives

Initiatives to Address Priority Subjects

14,74915,00010,000(%)

Recycling rate

25,0000

Shinryo Corporation contributes to the reduction of greenhousegas emissions during the use of construction equipment(Category 11) through many different technologies owned by
the Company. We have set a 100% design proposal
implementation rate as our KPI for the reduction of Category 11
emissions. Shinryo Corporation makes every effort to propose
the best and most beneficial drive methods to our customers
through airflow and temperature distribution simulations madepossible by CFD* technologies, which is an industry-leading
technique and achievement, the adoption of equipment andsystems with high energy savings, commissioning, and othersuch initiatives.

%emissions ( P47-48).
Shinryo Corporation actively worked to improve productivity
using these technologies, which succeeded in reducing CO2
emissions 28% in fiscal 2021.

Scope 3 (Category 5) Reduction Initiatives
We are working to properly sort and recycle waste in an effort to
reduce greenhouse gas emissions (Category 5) generated duringindustrial waste disposal processes.
Of the industrial waste produced on construction sites, Shinryo
Corporation is promoting recycling of four main materials(concrete, metal scrap, waste plastics, and waste glass, ceramics
and pottery). We achieved a recycling rate of 88% in fiscal 2021
by outsourcing recycling to industrial waste disposal andrecycling companies with superior technology for processes that
include material recycling and thermal recycling.

2030

2018

2019

2020

2021

[FY]

Design proposal implementation rate:

97(Target: 100%)%

Implementation Rate of Design Proposals
(%)

100

80

78

2018

2019

95

97

2020

2021

75

64
50

25

0

2017

[FY]

*CFD: Computational Fluid Dynamics

SHINRYO Report 2022

32

Contribute to a Decarbonized Society

Scope 3 (Category 11) Reduction Initiatives
High-efficiency Heat Source Systems Using Heat fromRiver Water Sources

2020 Energy Conservation Grand Prize Award in the
Energy Conservation Best Practice at Workplaces
Category
The Energy Conservation Center, Japan Chairman’s Award

Nakanoshima 2-Chome District Heating and Cooling System
The Nakanoshima 2-Chome District Heating and Cooling
System is building a heat source system using heat from riverwater sources as a renewable energy with the hope of easing
the impact of heat island phenomenon and improving energy
efficiency in heating and cooling.
Shinryo Corporation was in charge of the Nakanoshima
Festival Tower West plant for this district heating and coolingsystem. We were involved in enhancements to drive energy
efficiency after the system was up and running as well.
By directly using the river water as a heat source more stable
than air, we were able to not only reduce heat loss but alsobuild a thermal stratification water storage tank using a simple
diffuser as a few of the efforts to provide greater energy
savings. As a result, the Shinryo Corporation has achieved aheat source system with the highest Coefficient of
Performance (COP) in Japan.

Turbo Chiller Using
River Water

Hot Water (Heating)
Turbo Heat Pump
Using River Water

Heat Exchanger

Dojima River
Heat Exchanger

Heat Recovery
Heat Pump

Cold
and Hot
Water
Storage
Tank

Heat Exchanger

Heat Exchanger

System Image of the Nakanoshima Festival Tower West Plant

FY 2021 Heat Pump & Thermal Storage Technology ofJapanAward of Excellence for Impeccable Improvements to
Operational Management

Changes in Unit Primary Energy Consumption
Unit Primary Energy Consumption[MJ/GJ]

1,200
1,000

980.4
800

5.6%

7.3%

33

SHINRYO Report 2022

7.8%

925.9 Reduction 908.5 Reduction 903.9 Reduction

600
400
200
0

2017

2018

2019

Energy-saving Lighting Equipment

The Shinryo Shinjo Building is an environmentally friendly
office building which has acquired the ZEB Ready certificationfrom the Building-Housing Energy-efficiency Labeling System(BELS). The Shinryo Group was in charge of system installations(air-conditioning system: Shinryo Corporation; sanitation
system: Shiroguchi; electric system: Daiei Denki).
This building took advantage of high-efficiency LED lighting
throughout while also adopting light guide plates for officespaces. These innovations insured a space with a bright feel byreflecting a low intensity of light off the ceilings and walls.
Illuminance and motion sensors automatically control lighting
adjustments to provide the highest level of energy savings. The
lighting layout takes advantage of the suspended ceiling using
support beams to create an accommodating design while
maintaining functionality.

Festival

Tosabori RiverTokyo Sky Tree® District Heating and Cooling Facility

Shinryo Shinjo Building

River Water(Intake
Water)(Heat
Tower Plant
Cold
interchange)
water
thermalRiver Water
storage(Wastetank:
Water)Heat Pump dedicatedfor cooling purpose

Operational Enhancements of the Heating Tower Heat
Pump System

Tokyo Sky Tree District Heating and Cooling Facility provides ahighly efficient supply of heat by integrating equipment fromthe turbo chillers and heating tower heat pump system (HTHP
system) to the large-capacity water thermal storage tank.
The HTHP system is a highly efficient heat source systemthat heats circulating water by recovering heat from cold
outdoor air in the heating tower during winter heating to
generate hot water from that heat using the heat pump.
Shinryo Corporation has striven to improve operations forthe purpose of heightening HTHP system efficiency. As a resultof ongoing operational enhancements using analyses andsimulations based on actual data, we have been able to reduceenergy consumption 8% compared to conventional HTHP
systems.

Cold Water (Cooling)2020 Good Lighting AwardTokyo Chapter Jury Special Award

Lighting System Using Acrylic Light Guide Panels

2020

[FY]

Japan’s First Zero Energy School Coexisting with Nature
9th Carbon Neutral Award
JABMEE Special Selection Committee Prize

Mizunamikita Junior High School

Effective Reduction in Primary Energy Consumption Comparedto the Base Model[MJ/(m2 per year)]

400

Unit Primary Energy Consumption

Mizunamikita Junior High School opened its doors in Mizunami
City, Gifu in April 2019 as the first zero energy school in Japan
with the aim of maximizing the use of natural energy creatinga learning environment of wellbeing. This education institution
was also recognized as a Super Eco School Demonstration
Project by the Ministry of Education, Culture, Sports, Scienceand Technology.
Shinryo Corporation was in charge of the mechanical systeminstallation and built a system capitalizing on ground heat,solar heat and other natural energy sources. As part of alearning environment teaching through the five senses, we put
in place innovations such as mechanisms for the children totouch and feel the air passing through the ducts as well as see
and learn the various duct materials. The use of thesetechnologies for environmental systems succeeded in anenergy reduction rate of 101% during the school’s first year.

364
300
50%
Reduction

72%
Reduction

101%
Reduction

200

180
100

103

0

–2
–50
Base Model

Energy Savings

Energy Savings Energy Savings ++ Generation Generation Energy
Energy+ Supply Off Site

System Plan for Smart City Considering Energy Savings
Sapporo City Redevelopment Project for Four Northern and Six
Eastern Wards

Grid Power

Solar Collectors(Power Returned
to Grid)

Direct Fire
Absorption Chiller

Cold Water

Power
Gas engine
Cogeneration System

Waste Heat Input
Absorption Chiller
Hot Water toMelt Snow

Vacuum Hot
Water Boilers

Initiatives to Address Priority Subjects

The Sapporo City Redevelopment Project for Four Northernand Six Eastern Wards introduced regional heating and coolingas well as power supply systems with a high level of BCP
performance in addition to a Community Energy Management
System (CEMS) for the entire area. Moreover, theredevelopment project aims to achieve a smart city* throughthe promotion of area management in which everyone in thelocal community takes part.
Shinryo Corporation was in charge of building heat sourceand distribution systems of the energy center linked to the
CEMS as well as the district conduits. These systems
contributed to the configuration of a local production andconsumption energy system that uses renewable energy andhighly efficient equipment.

The Society of Heating, Air-Conditioning and SanitaryEngineers of Japan
35th Awards of Promotion & Technological Promotion

Ground Heat
Heat Pump
Hot Water

Illustration of Energy Supply*A smart city is an urban area with higher quality lifestyles and services using IoT
and AI to make energy, telecommunications, and other infrastructure more efficient.

Realization of a Comfortable Environment Maximizing
the Creativity of Animators

Return air
28˚C

25˚C

Personal
Heatingwith
Air Outlet
Control

Exhaust air

TOEI ANIMATION aims to build a comfortable environment at
the Oizumi Studio which would bring out the most creativity
from its animators. Shinryo Corporation was in charge ofbuilding the air-conditioning system.
This new studio adopts a personalized heating and air
conditioning system which not only provides air conditioning toentire floor but also blows hot air on the backside of employees.
This enhances the comfort level by enveloping employees in anarea of their own. The Oizumi Studio also takes advantage ofenergy-saving technologies that effectively use the naturalventilation as the changing seasons. These innovations have
reduced primary energy consumption (actual values) roughly
50% on weekdays compared to standard office buildings.

Outdoor air

TOEI ANIMATION Oizumi Studio

The Society of Heating, Air-Conditioning and SanitaryEngineers of Japan
35th Awards of Promotion & Technological Promotion

Supply Air (23°C)
Supply Air (14°C)
Make up air unit
Process Outdoor Air

Air Conditioner

Illustration of the Office Air Conditioning System

SHINRYO Report 2022

34

Contribute to a Decarbonized Society

Successful Balance Between Stronger Resilience andBetter Environmental Performance

The Society of Heating, Air-Conditioning and SanitaryEngineers of Japan
35th Awards of Promotion & Technological Promotion

SUITA MUNICIPAL HOSPITALThe SUITA MUNICIPAL HOSPITAL is one of several urban
development projects built in the Northern Osaka Health andBiomedical Innovation Town as an international medical andpharmaceutical complex to embody the concepts of health andhealthcare. This environment-friendly hospital constructed ashighly reliable infrastructure for disaster prevention has earned
the CASBEE S Rank certification.
Shinryo Corporation was in charge of installing the air conditioning
system in this hospital, which required a large volume of fresh air toprevent the spread of infections throughout the facility. We helped
improve the environmental performance of the entire complex bybuilding a system that reduces the load of air conditioning, suchas second-floor pre-heating and pre-cooling of outdoor air coming
into the facility in two stages using ground heat and well water.

Outpatientward

2nd Floor

ISS Floor

Supply Air Inlet(Wind Tower)
Fresh
Outdoor Air

Well water coil

1st Floor

Well
Heating and Cooling Trench

Base isolation Pit

Miscellaneous Water Tank

Well Water Pump

Image of Air Conditioning System Using Heating and Cooling Trench and Well
Water

Contributions to the Reduction of Energy Consumption
Through Commissioning

The Society of Heating, Air-Conditioning and SanitaryEngineers of Japan
35th Awards of Promotion & Technological Promotion

Nagasaki Prefectural Office

Annual Primary Energy Consumption for the Entire Building[MJ/(m2 per year)]

Annual Primary Energy Consumption

The Nagasaki Prefectural Office utilizes a high-efficiency heatsource system with a thermal storage tank for the purpose ofsaving energy and resources. It also acts as a resilient officecoexisting with environment which also functions as a disasterprevention site during emergencies.
Shinryo Corporation was in charge of building an air
conditioning system with features that include a high-efficiency
heat source system and an air conditioning system separating
latent and sensible heat in offices. We also participated in theCommissioning and Performance Testing (Cx) Meeting and helped
reduce energy consumption by getting involved in other aspectsof the process from the review and construction of systems andautomated control to BEMS* verifications. Shinryo Corporation
has been continually inspecting and enhancing this system evenafter completion, which resulted in a 40% reduction in primaryenergy consumption compared to standard government buildings.

Outdoor-air
conditioning
unit

1,500

1,341

1,000

788

739

500

0
Standard Government Nagasaki Prefectural
Building
Office: First Year

Nagasaki Prefectural
Office: Second Year

*BEMS: Building and Energy Management System

Electronic Manifest and Contracting System Initiatives
Shinryo Corporation uses electronic manifests (industrial waste
management ledgers) to properly dispose of industrial waste inaccordance with the Waste Management and Public Cleansing Act.
The electronic manifest system reduces the operational burdenof managing industrial waste and even strengthens compliance.
In fiscal 2021, 97% of all issued manifests had transitioned toelectronic manifests. We have also rolled out an electronic
contracting system to conclude waste disposal contracts withindustrial waste disposal companies. The electronic contracting
system not only establishes outsourcing contracts quickly but
also links to the electronic manifest system to reduce the riskof breaches to consignment standards or other legal violations.
The use of electronic manifest and electronic contracting
systems at the Shinryo Corporation will reduce the operational

35

SHINRYO Report 2022

burden of properly managing industrial waste in accordancewith the law as well as drive efficiency on construction sites.
Usage Ratio of Electronic and Paper Manifests
Paper manifest

Electronic manifest

3%

97

%

Manifest
Operational
status(FY 2021)

Participation in the Japan Climate Initiative
Shinryo Corporation announced its support for andparticipation in the Japan Climate Initiative (JCI) in 2021. The
JCI launched as a network of companies, local governments,
NGOs and other leaders who want to not only join the front
lines of the global push for decarbonization from Japan to fightagainst climate change but also foster new growth anddevelopment opportunities. Shinryo Corporation will placeeven greater emphasis on climate change issues and further its
initiatives to realize a decarbonized society through its support
for and participation in the JCI.

Rated an Excellent Company (S Class) Under the Energy Saving Act
Shinryo Corporation was rated an excellent company (S Class)in 2019 and again in 2020 by the Business Classification
Evaluation System under the Act on the Rational Use of Energy(Energy Saving Act).
The Energy Saving Act categorizes all regularly reporting

businesses into four SABC stages according to the level of theirenergy savings. Each business location will continue various
activities on operational building improvements and otherefforts to control energy consumption.

Donations to the Keidanren Nature Conservation Fund
The Keidanren (Japan Business Federation) established theKeidanren Nature Conservation Fund in 1992 to support
nature conservation activities. Shinryo Corporation has
continued to donate to this fund. We also participate in theJapan Business and Biodiversity Partnership, whose secretariat

is handled by the Keidanren Committee on Nature
Conservation.
Shinryo Corporation recognizes the importance ofconserving biodiversity and will always help build a society
which coexists with nature.

Ecological Conservation Activities Enlightenment Program“The Environmental Renaissance Activities”

Framework of Environmental Renaissance Activities
Activities to Conserve
the Ecosystemthrough Non-profit
Organizations

ShinryoCorporation

Activity Report Introduction
Norio Takeshima
Quality & Environmental Management Department, TechnicalSupervision Division
Activity to Preserve Little Tern Nesting Areas (Little Tern Project)

Initiatives to Address Priority Subjects

Shinryo Corporation has been promoting the Environmental
Renaissance Activities Enlightenment Program since 2015 forthe purpose of heightening employee awareness about
ecological conservation.
This program supplies book coupons to employees engaged in
activities related to ecological conservation and environmental
education to subsidize the purchase of environmental books.
This also deepens understanding of ecological conservation andheightens motivation toward ongoing activities. These efforts
have become a matching gift system to donate the equivalentbook coupon costs that are supplied over one year tointernational environment NGOs engaged in biodiversity
conservation and other environmental activities.

I have volunteered for activities for six years that help
the nesting of little terns which have lost theirtraditional breeding grounds. Little terns began to neston the roof of the water reclamation center after losing
their natural breeding grounds, which made it difficult
for the chicks to leave the nest. We helped build a more
comfortable nesting area for these birds by weeding,removing mud, cleaning drainage, setting up levelingstrings to repel crows, and building brick shelters. I hope
our hard work will help many of these young birds leave
the nest safely.

❶ Participate
in employee
conservation
activities❷ Submission ofactivity reports
from employees

Sustainability
Promotion
Committee❹ Donate

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

Refurbished Nesting Ground

Little terns❸ Supply(book coupons)

SHINRYO Report 2022

36

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 the Energy Supply of a Port City

Toyosu Smart Energy Center

Completed: March 2020
Power supply capacity: Approx. 14,000 kW;
Approx. 115 GJ/h cryogenic power;
Approx. 51 GJ/h thermal power
Building application: Special Energy and District
Heating and Cooling Systems
Tokyo

Cogeneration Plant

Heat Source Machine Room37

SHINRYO Report 2022

Toyosu 2-Chome and 3-Chome District Heating and Cooling System Supply Area

Relevant SDGs

About the Toyosu Smart Energy Center
The Toyosu District is rapidly developing as the new urban areaof Tokyo. The Toyosu Smart Energy Center is an energy plantbuilt during the redevelopment of the central area in front of
the Toyosu Train Station. This energy plant supplies powerand heat to the existing Toyosu Center Building as well as the
new Toyosu Bayside Cross Tower. The Toyosu Smart Energy
Center effectively uses heat produced during power generation
to supply heating, cooling and hot water for a compact standalone distributed energy supply realizing local production andconsumption of power and heat by the city, contributing to thecreation of a resilient and eco-friendly town.
The facility has also adopted the latest energy management
system for managing the energy throughout the entire district.
This system collects information about actual supply demands,
the weather, events, and various other factors to analyze the big
data to anticipate the next day’s power and heating demandsof the offices, commercial complexes, hotels, and other facilities
spread throughout the district. The results of the forecast allow
the system to provide the best operational control of plant
equipment according to the target values of the system, suchas the energy savings and CO2 emission reductions. This control
can even tune and tailor operations as needed when the actual
demand deviates from forecasts. These speciﬁcations are able
to achieve an even higher level of energy savings.

Our Work

Air Conditioning, Electricity, CGS, and Civil Engineering

Initiatives to Address Priority Subjects

Shinryo Corporation received a bundled order (joint venture) andhandled the installation of the air conditioning, electricity, andcogeneration systems (CGS) as well as the civil engineering work.
We placed core equipment on the ﬁfth or higher ﬂoors
as a measure to combat the risks of ﬂoods in the event ofguerrilla rainstorms or other such disasters. In addition, Shinryo
Corporation constructed supports packing seismic isolation andresistance measures with the main equipment brought in andinstalled above to ensure a high level of earthquake prooﬁng.
The energy plant leverages a high-capacity, high-efficiency CGS
inside a facility constructed to stand up against disasters, whichenables the supply of electricity even during power outages.
Adoption of a high-efficiency CGS and the use of waste heat
during power generation has reduced CO2 emissions about
20%*1 compared to standard thermal power plants.
We employed measures against salt damage and installedroughly 290 ﬁlters to remove salt on outdoor air inlets that canprocess 950,000 m3/h of outdoor air throughout the complex.
Shinryo Corporation even considered the ease of maintenanceand strove to realize a long-lasting and efficient facility evenafter the completion of the project by planning stairs and asimple elevator as well to use when replacing these ﬁlters.
Our civil engineering work employed a thrusting method*2
to minimize the effects of traffic congestion and noise forconstructing the district heating and cooling conduits andprivate electricity pipelines across the roughly 50-meter widthof Harumi-dori Street.
The prospecting process before construction began discovered
many obstructions not indicated on the design blueprints.
We succeeded in ﬁnishing the project on schedule throughpure tenaciousness from more comprehensive prospecting toreviewing piping routes and shaft positioning while working
closely with every company involved in the project.
Shinryo Corporation also achieved efficient energy use bybuilding a Community Energy Management System (CEMS)
equipped with advanced features to predict future heatand power loads using AI and automation and optimization
functions taking into account the best mix of power and heat
supply systems. This is what allowed us to build systems that
help reduce the environmental load.
*1 Compared to the per unit energy consumption of standard buildings in Tokyo.
*2 Construction method to create conduit lines by gradually adding existing piping
behind the excavator.

A Project Bringing Together Extensive Cooperation and Expertise

Taku Watanabe(On-site Project Manager)
Manager, Technical Section 3,
Technical Department 2
Urban Environment Division

As a large-scale private urban special energy project with a district heating and coolingsystem, this project was the ﬁrst order of its kind for us. It was a big project bundlingeverything from air conditioning and electricity to CGS and civil engineering work.
We had to tackle numerous challenges, but were able to complete the project
without any major problems by bringing together the knowledge, innovativenessand effort of everyone working on site with the expertise of the Shinryo Corporation
thanks to the cooperation of so many people at the company. Our client even sent usa letter of thanks. I have a great sense of accomplishment and joy for the recognition
that I’ve received from the company, such as the President’s Award and othercommendations.

SHINRYO Report 2022

38

Contribute to a Resilient Society

Supporting Operations of a Large-scale Convention Center

G MESSE GUNMA

Completed: March 2020
Total floor area: 33,150 m2
Building application: Meetings and exhibitions

Exterior

Exhibition Hall39

SHINRYO Report 2022

Main Hall

Gunma PrefectureAbout the G MESSE GUNMAG MESSE GUNMA is the largest convention center in thenorthern Kanto area built on the enormous roughly 110,000
m2 lot of the former Takasaki Racetrack. The complex offers avariety of venues, such as an exhibition hall with a capacity of
10,000 people and 17 small and large meeting rooms, to use
for everything from exhibitions and concerts to international
conferences. The site is only a 15 minute walk from JR Takasaki
Station which services the Joestu and Hokuriku Shinkansens.
It also provides visitor with a parking area that is able toaccommodate about 2,000 vehicles. The basic concept strove
to build a facility sprinkled with traces of Gunma Prefecture asa manufacturing heartland incorporating the unique history,
traditions, climate, industry and technology in its design.
G MESSE GUNMA can even act as a local disaster prevention
site. In the event of a large-scale disaster, the complex shouldbe able to house up to 7,000 local residents and people
stranded in the area. The exhibition hall can function as a site
to sort or distribute relief goods while the premises outdoors
can become a temporary base of operations for the SelfDefense Forces, ﬁre ﬁghters, and police.
G MESSE GUNMA is expected to not only revitalize the local
economy but also share the magniﬁcence of Gunma Prefecturewith Japan and the rest of the world.

Our Work

Air-conditioning and mechanical ventilation systems

Initiatives to Address Priority Subjects

Shinryo Corporation was in charge of the air conditioning andmechanical ventilation systems for the exhibition and meetingbuildings together with a local joint venture company. We paid
close attention to creating both efficient and comfortable air
condition for the huge-space accommodating such a large
number of people.
The very high ceilings of the main and exhibition halls

would make adjusting the air outlets almost impossible after
construction. The Shinryo Corporation took advantage ofComputational Fluid Dynamics (CFD) technology to carefully
examine the best layout and direction for each and every air
outlet before construction. As a result, we were able to achieve
comfortable air conditioning while eliminating the need for any
adjustments after the system was built.
The approximately 10,000 m2 exhibition hall was equippedwith an on-demand environment system using infrared arraysensors. The sensors installed in the ceiling by dividing the hall
into twelve different sections detect the ﬂoor temperature, thereturn air temperature, and the number of people in the space
to control the air temperature, air volume of the air conditioner
as well as the amount of outdoor air in real-time. The concourse
area handles a large ﬂow of foot traffic. Motion sensors andvariable air volume control systems have the ability to adjust
the air volume by minimizing airﬂow when the space is empty,
quickly maximizing airﬂow when people are detected, and thenstrategically decreasing the airﬂow as necessary thereafter.
This type of meticulous control with immediacy pursues aspace that is not only comfortable but also saves energy.
Modularization and the use of ICT tools during construction
increased operational efficiency. The 84 gas heat pumpchillers were used to satisfy the broad usage requirementsof the convention center. By breaking down and delivering
this equipment as chiller and heat transfer units, Shinryo
Corporation cut the lifting workload in half which in turnshortened the time required for the delivery. We also
distributed tablet terminals to every employee and encouragea paperless workplace by shifting drawings to a construction
management app that enhances work style efficiency.

Overcoming Challenges to Complete a Large-scale Project

Toshio Sakai(On-site Project Manager)
Manager, Technical Section 1,
Technical Department 4
Tokyo Metropolitan Area Division

The biggest challenge for us was whether or not we could more efficiently and safely
execute work on an air conditioning system for the exhibition hall which is a hugespace. We visited similar buildings, ran CFD simulations of the air conditioning, andundertook many other exhaustive measures to complete the project without any
rework or major problems. During the construction, we worked hard to overcome
adversities from continual labor shortages to delays in material due to torrential rains.
In spite of all of that, I am proud to have been involved in a project to build the largest
convention center in northern Kanto which carries the hopes and dreams of theprefecture.

SHINRYO Report 2022

40

Contribute to a Resilient Society

Supporting Disaster and Emergency Medical Care at a Local Hospital

Iwaki City Medical Center

Completed: March 2021
Total floor area: 64,286.88 m2
Building application: Hospital

Fukushima Prefecture

Exterior

41

About the Iwaki City Medical Center

Our Work

The Iwaki City Medical Center provides state-of-the-art
advanced medical care as one of the largest general hospitals
in Fukushima Prefecture. It has also been designated as thebase hospital to handle disaster and emergency medical care.
Over the more than 70 years since it opened in 1950, this
hospital has served as the core medical care facility in theregion. However, the hospital had to be rebuilt as a disasterresistant medical institution due to the aging building and inlight of the Great East Japan Earthquake.
The new facility integrated the medical wing and energy
center with a base isolation structure to reduce the impact ofearthquakes on the building. Even if power and water supply
systems are cut, the facility is equipped with water storage
tanks and power generation systems to allow medical services
to continue for 72 hours or more. The parking lot outside has
also been equipped with manhole toilets where emergency
restrooms can be set up. The facility has other innovations toensure stable medical services continue even when disasterstrikes, such as a space to act as a patient intake area during
emergencies and a heliport on the roof.

Shinryo Corporation was in charge of building the air
conditioning and mechanical ventilation system as well as
sanitation systems for the 13-ﬂoor, 700-bed hospital wing.
The air conditioners in headquarters clinic use fan coil units
that operate at low power as an energy-saving measure andozone deodorizers as an odor control measure. In rooms fordialysis, radiant air-conditioning that can sustain a comfortabletemperature with a gentle airﬂow create a medical space that
reduces the burden on patients who have to spend many hours
at the hospital.
The use of piping prefabricated at the plant as well as lightand durable resin tubes during construction increased theefficiency and safety of on-site operations. We incorporated
innovations using colored bands to hang each piping system
which helped prevent connection errors during construction
and improved the ease of maintenance after completion.

SHINRYO Report 2022

Air Conditioning and Sanitation System

Supporting Educational Environments at an integrated Elementary and Junior High School

Seto City Nijinooka Gakuen

Completed: First phase of construction: January 2020; Second
phase of construction: February 2021
Total floor area: 12,134 m2 school building; 3,234 m2 gymnasium;
102 m2 swimming pool
Aichi Prefecture
Building application: Education facility

Initiatives to Address Priority Subjects© ロココプロデュース 林 広明

Exterior

About the Seto City Nijinooka Gakuen

Our Work

The Nijinooka Gakuen was established through consolidationof ﬁve elementary schools and two junior high schools in theeastern district of Seto City, Aichi in April 2020 as part of theefforts undertaken in the system for uniﬁed elementary andjunior high schools advocated by the Ministry of Education,
Culture, Sports, Science and Technology. By unifying nine yearsof education under one roof, the school teaches cooperative
problem-solving skills. Children educated at the school in
Seto City not only develop a love for their home province
but also learn about careers through unique local educationand international studies (foreign language activities), which
nurture pride and joy for one’s roots in Seto.
The new school uses systems and equipment providing ahigh level of energy savings, which satisfy the Ministry of theEnvironment’s standards as a demonstration project of anadvanced energy-saving structure toward the realization of
ZEB*. The school can even act as a local disaster prevention
site.

Shinryo Corporation was in charge of the mechanicalsystems (air conditioning and sanitation systems) for theschool buildings (south wing, north wing, and administrativebuilding), swimming pool, and gymnasium with a local joint
venture company. We aimed to create a safe and comfortableeducational environment for the children and students.
As some of the measure to satisfy the ZEB standards, thefacilities adopted solar heat collecting panels as a heat source,
and used hot water heated up by the system according to thetemperature zones in stages, for cold and hot water generators,
hot water storage tanks, heat exchangers to heat warm water
during the winter season, and other such equipment to reduce
primary energy consumption and heighten energy efficiency.
A central monitoring system collects electricity, water,gas, amount of heat, and other data to visualize, analyze, andmanage data using a function that creates various graphs. Thissystem is effective in extracting problems related to energy use
and improving the operation efficiency of equipment.
The school uses this operational data to display informationin an easy-to-understand format on digital signage in the main
entrance, which plays a role in raising awareness and educating
the children and students about daily energy use.

*A Net Zero Energy Building (ZEB) is a structure that uses natural energy andhigh-efficiency equipment systems with the goal of making the balance zero
between energy consumption and renewable energy generation on primary annual
energy consumption.

Mechanical System WorkSHINRYO Report 2022

42

Contribute to a Resilient Society

Supporting Digital Infrastructure

Equinix Japan
Inzai Izumino Building

Completed: December 2020
Total floor area: 15,054 m2
Building application: Data center

Chiba Prefecture

East-side Exterior

About the Equinix Japan Inzai Izumino Building
Equinix, Inc. operates 220 locations worldwide with 12
data centers in Japan as a company building global digital
infrastructure. The Inzai Izumino Building is a large capacity,
high-density, hyperscale data center operated by Equinix-GIC
Private Limited joint venture ﬁrm targeting major IT service
providers.
The facility employs extremely stringent access management
and top-notch security measures in order to handle critical
data. The building is fully equipped with BCP response
measures from a base isolation structure to power generation
systems and emergency waste water tanks to achieve a highlevel of disaster resistance. The highly energy-efficient design,
construction and operation has earned a sliver rating for
the Inzai Izumino Building in the LEED green building rating
system.

Our Work

Air-conditioning, Sanitation, and Firefighting Systems

The Shinryo Corporation was in charge of building the air
conditioning, sanitation, and ﬁre-ﬁghting systems. This data
center requires the conﬁguration of systems that never stop thefunction of equipment under any circumstances. The data hallhousing all of the server racks also requires temperature and43

SHINRYO Report 2022

humidity management to always keep the temperature andhumidity within a certain range. Therefore, Shinryo Corporation
prepared emergency backup equipment and other response
measures, including a loop piping system running through thethermal storage tank, to ensure a constant supply of cold water
through the cold water pipes.
We also employed a wide range of other innovations toeliminate risks which could cause trouble after the facility wasup and running. The Data Center had to scatter cold water
thermal storage tanks across each ﬂoor to handle the total
water capacity of 160 m3 due to space constraints. We wereable to ensure stable and uniform pipe welding by fabricating
everything at the plant. Moreover, we used down piping fromthe heat source equipment on the roof to the air conditioners
on each ﬂoor to eliminate the risk of the ﬂow of cold water
stopping.
To prevent any delays in the work to install the heat source
equipment on the roof during the construction, we broke downlarge-radius pipes (550 A), including the earthquake-resistantbases, into modular units at the plant and completed all of thewater pressure testing before delivery and installation on site.
These approaches saved labor on site which in turn reduced
the construction schedule.

Supporting Demand in Asia with an Energy Supply

GSPP Cogeneration Plant

Completed: April 2021
Lot area: 8,472 m2
Building application: Energy plant

Malaysia

About the GSPP Cogeneration Plant
GS Paperboard & Packaging Sdn Bhd (GSPP), an Oji Group
company, constructed a new raw paper production facility for
manufacturing corrugated boards to expand the production
capability of existing factory amid growing demand of
corrugated boards in Asia. The GSPP Cogeneration Plant
operated by GSPP, is a combined heat and power facility thatwas built along with the construction of the new facility.
The cogeneration plant consists two lines of combined heatand power system. Each line equipped with a 16,000kW gas
turbine generator that uses natural gas as fuel and a 71.6 ton/hr heat recovery steam generator. The plant supplies totalof 30,000kW and 141 ton/hr of steam to the entire factory
including the new facility. Through the addition of the plant, thefactory is able to generate its own energy and enabled stablesupply of electricity and steam.

Our Work

Plant Facilities / Civil Engineering and Constraction

Shinryo Corporation’s scope of work was Engineering,
Procurement, Construction and Commissioning (EPCC) of
all the services including plant facilities, air conditioning,plumbing and sewerage, ﬁre protection, electrical as well as

Initiatives to Address Priority Subjects

Full View

civil engineering. We have made use our extensive experiencesof plant construction in Malaysia to carry out the engineeringand construction.
During the engineering stage, we used 3D-CAD to efficiently
design the detailed plant layout and optimized the position ofvalves and instruments to allow the customer to easily operateand carry out maintenance of the plant.
In construction, we optimized construction quality andefficiency by promoting prefabrication such as erection of
furnace for duct burner at an external workshop as well as
adopting modular type boiler. Due to the COVID-19 pandemic,
some technical advisers for imported equipment were unable
to attend the commissioning at the project site. However, wemanaged to carry out remote commissioning for some of theactivities and completed the project as planned.
The cogeneration plant enables low nitrogen oxide (NOx)operation by dry low emission combustion even in Malaysia
where gas caloriﬁc value ﬂuctuates greatly compare to Japan.
The plant also has highly efficient, energy saving and low CO2
emissions performances. The NOx emissions are signiﬁcantly
lower than Malaysia’s emission regulations, achieving
environmentally friendly plant facility.

SHINRYO Report 2022

44

ND

BETTEROCESSPRSAFETY A

Initiatives to Address Priority Subjects

Realize Safe and Highly Efficient Work Processes
More efficient operations and higher productivity are essential issues in the Japanese constructionindustry. 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 ISO 9001 quality
management system certiﬁcation at corporate divisions andbranches in Japan and overseas. We strive to practice quality
assurance activities in systems and services to provide qualitythat satisfy our customers based on common company-wide
quality 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 Audit• Hokkaido Branch• Kyushu Branch• Tohoku Branch• HONG KONG Branch• Marunouchi Branch• SINGAPORE Branch

Shinryo Corporation positions internal audits as part of thecheck process of the PDCA cycle as an important operational
process to verify whether Quality Management Systems (QMS)
are effectively functioning on construction sites.
We certify employees who have taken the internal auditor
training course as internal auditors to promote internal audits
on construction sites.

• Hokuriku Branch

Customer Satisfaction

Operational Flow According to a Construction Cycle

Inspection Before
Completion

Quality Patrol

Intermediate
Inspection

Quality Patrol

SHINRYO Report 2022

Construction Review
Meeting

45

Example of Operational Flow According to a Construction Cycle
Construction Start

Construction sites utilize a construction cycle outlined in aquality manual. In addition to holding construction review
meetings at the start of a project, quality patrols and internal
audits at various times appropriate for the progress ofconstruction act as functions to check construction quality
by identifying and ﬁnding solutions to any problem points.
Securely implementing the construction cycle is the foundationof the Shinryo Corporation’s construction management.

Relevant SDGs

KPI

Outline of KPI for Priority SDG Subjects (Detailed List on

P25-26)

Improve Quality and Prevent Technical Issues Throughthe Construction Cycle
Shinryo Corporation has set a 100% implementation rate of
the construction cycle as a KPI to guarantee the construction
cycle is carried out in accordance with the Quality Management
System (QMS) to provide high-quality facility systems whichearn customer trust.
The construction cycle is vital to building facility systems thatcan sufficiently satisfy the quality required by customers. The
construction cycle plays an important role in putting in place
preventative measures from the construction stage to ensure
not only higher quality construction but also no technicaltrouble after delivering systems to the customer. By regularly
checking what is happening on construction sites, we can work
to better occupational health and safety, the environment, andproductivity, view construction sites from work style reformand other perspectives, and promote safe and secure on-sitemanagement.

KPI

Construction cycle implementation rate:
Target: 100%
*Start in FY 2022

Hiromitsu Fujioka
Executive Officer
Deputy General Manager, Tokyo
Metropolitan Area Division

The ability to ensure the construction cycle is carried out on
construction sites is indispensable in continually identifying
the progress and any potential problems, which helps tomake improvements at the appropriate time. We are able toenhance quality and prevent any potential technical or safety
trouble by checking and taking corrective actions frommultiple perspectives. This includes design requirements,
compliance with laws, regulations, and technical criteria,
appropriate construction plans and progress, and clearlysafe construction practices. I also think checking to makesure employees can work enthusiastically is important andstrive for work style reforms on construction sites.

Quality Patrol

Initiatives to Address Priority Subjects

Quality patrols on construction sites check to make surevarious aspects of construction are done properly, such as
aspects related to design requirements and legal, regulatory
and internal technical standards.
People in charge of quality management regularly patrol
construction sites to verify whether construction satisﬁes
the conditions included in design drawings and construction
quality plans as well as construction blueprints by following achecklist. These patrols also check the implementation level ofimportant management items which organize things such as
past examples of problems and speciﬁc areas pointed out by
customers on customer satisfaction surveys. Quality patrols
continually improve quality as a system that makes every effort
to further improve quality.

Quality Patrol

Internal Expansion of Proprietary Technology
We strive to broadly expand the latest technology and superior
construction site efforts, to provide even higher quality tocustomers.
In ﬁscal 2021, we held technical seminars for Shinryo
Corporation and Shinryo Group employees to encourage
the use of Research and Development Center technologies.
Approximately 600 employees took part both in person andonline. In addition, Shinryo Corporation has striven to internallydisseminate technical information by publishing technical reports,
including topics such as design and construction technologies
and explanations of the laws and ordinances, and by an Idea
Proposal Contest for the purpose of sharing the rationalization fortechnology and other excellent ideas with the entire organization.

Technical Seminar at the Research and Development Center

SHINRYO Report 2022

46

Realize Safe and Highly Efficient Work Processes

Initiatives to Improve Productivity on Construction Sites
Delivery Management System Using BIM Data
Shinryo Corporation has developed a Delivery Management
System to manage material orders utilizing BIM data to makepurchasing and management on construction sites more
efficient.
Material purchases have traditionally involved multiple
people to handle everything from setting delivery dates toinspecting the delivered items. The adoption of this systemallows the entire process to be managed centrally with data.
The system accurately extrapolates the type, quantity andother information about materials using BIM data and prevents
human error in the purchasing process. The framework
allows the entire process to be completed by simply sending
the material data from the system to the supplier, and thenscanning tags attached to the materials using a dedicatedterminal upon delivery to manage the delivery status. Throughthis type of centralized management, we are able to streamline
procurement to reduce the operational burden of construction
sites.

Flow of Material Procurement
Construction
Site

Material Company A

Arrangements

Tubes
Company B

User CodePassword

Manufacturer
C
Login

Delivery Management
Confirmation
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More Efficient Spiral Duct Production Processes Using BIM
Generally, the installation of air conditioning ducts requires
each duct to be measured, cut, and hung on the construction
site. The Shinryo Corporation has been working to shift to aprefabrication process at plants using BIM data to drive theefficiency of on-site operations.
This new approach breaks down the ducts into individual
parts according to BIM data and exports the part list requiredby each construction site. By directly importing the exported
data into the processing machine at the duct manufacturer,
the system eliminates any input work on the manufacturerside to enhance efficiency of the duct production process. This
technique contributes to resource savings as well because iteliminates material waste resulting from duct production.

Shinryo Corporation

Duct Manufacturer Company

We use BIM data to create duct
distribution drawings and a parts list
necessary to produce the spiral ducts.

The manufacturer produces the spiralducts by importing the duct
distribution drawings and parts list
data into the processing machine.

System Compatible with Spiral
Duct CAD/CAM
BIM
Data

Features to Create
Duct Distribution Parts
Drawings
List

Duct Distribution Drawings

Data Links Site
and Manufacturer

Promotions of ICT Tools for on-site Management
Conventional on-site management operations verify the
progress of construction through a manager who reviews
paper blueprints on the construction site before returning tothe on-site office to create a report and share their ﬁndings.
Today, the use of ICT tools lets anyone share information more
rapidly and eliminates the time necessary for returning to theon-site office because inspectors can display blueprints andother materials, record inspection details, take photographs,
and much more using tablet terminals. These ICT Tools also
help drive the efficiency of measurement work because airﬂow,
pipe pressure and other measurement data can be directly
input from measurement instruments to the tablet terminal.
Airflow Measurement

47

SHINRYO Report 2022

Measurement Data Input on Tablet
TerminalOnline Confirmation of On-site Progress
Shinryo Corporation is actively incorporating methods to
conﬁrm the progress on construction sites online via video.
For example, the person in charge on site can wear a portable
camera and patrol the construction site so that the video canbe shared online with project managers who can then report
the progress of work and conﬁrm particular installation areas
while watching the video. Videos and photos taken of the site
are saved in the cloud to provide a means of conﬁrmation at alater day, which enhances efficiency by allowing participants tocheck the progress of work according to their own schedule.
In addition, we have installed ﬁxed cameras in areas on
construction sites requiring regular inspections and are testing
the use based on the progress of the work, such as checking
the progress via cameras online as necessary.

Confirmation from the On-site OfficeOn-site Verification of Work Progress

Realization of a Digital Transformation in Construction Using Robots to Draw Construction
Blueprints

Robot to Draw Construction
Blueprints

Design and Construction Process Optimizationof Heat Source Systems Using BIM

The Society of Heating, Air-Conditioning and Sanitary Engineers ofJapan
59th SHASE Award for Technical Papers (Academic Papers Category)

Simulation Results at Each Stage Using BIM Attribute Data
Basic Design Phase
Practical Design Phase
Construction Phase

Energy Consumption

Shinryo Corporation is advancing research anddevelopment to limit energy consumption and life cycle
costs by optimizing design and management methods ofheat source systems. We have developed tools to perform
detailed energy-cost simulations which have proven todramatically improve the efficiency of creating simulation
models and the accuracy of simulation results by linking
to BIM data. The use of this tool allows simulations at eachstage whether during the basic and practical designs orconstruction phase. We created methodologies to conﬁrm
optimization at each stage of the construction processfrom design through construction and demonstrated its
effectiveness.

Drawing of Floor
Initiatives to Address Priority Subjects

Shinryo Corporation is developing and operates robots to draw
construction blueprints using information extracted from BIM
data to fully automate the drawing of blueprints on ﬂoors, suchas the position to install equipment as well as routes for piping
and ducts.
In 2021, we built 20 more units to roll out to construction
sites throughout Japan. This is the largest number of robots inoperation in the construction industry.
The use of robots can reduce labor by 25% because iteliminates the need for marking work generally done byhand. Moreover, this contributes to the realization of a digitaltransformation in construction by revolutionizing the workﬂow
by creating all the construction drawings to get the work done
without construction blueprints for part installations and otherwork.

Life Cycle Costs

SHINRYO Report 2022

48

Realize Safe and Highly Efficient Work Processes
KPI

Outline of KPI for Priority SDG Subjects (Detailed List on

P25-26)

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 dangers and extract latent onsite hazards before executing any type of countermeasure.
Shinryo Corporation actively creates education and training
opportunities to teach these skills. The production of work
manuals and thorough checks also prevent human error. We
are also focusing on ways to prevent any serious incidents
caused by unscheduled work.
Shinryo Corporation has set a 0.40 or less frequency rate ofoccupational accidents as a KPI to realize its commitment tomanage safe and work-friendly constructions sites. With thecooperation of the Safety and Health Council, we are making
every effort to prevent occupational accidents for the safety
and security of construction sites.

Frequency rate:(Target: 0.40 or less)Shinryo Group Health and Safety Policy

0.14

Cooperation with the Safety and Health Council
At the headquarters and branches, the Safety and HealthCouncil play central role in formulating annual plans andconduct training for managers, health and safety supervisors
as well as diverse specialty training and education for partnercompanies.
In particular, we consider managers who act as the deputyof the business proprietor as key persons for health and safety
management who clearly identify dangers and hazards. We
also ask training be taken to better the skills of managers
as well as health and safety supervisors so that they canformulate measures to prevent occupational accidents. We
plan and hold special training necessary for full harness safety
belts, scaffolding assembly, procedures for handling asbestos
and other such work while actively promoting employees ofpartner companies to acquire certiﬁcations.
During the busiest times for the industry, Shinryo
Corporation regularly conducts safety patrols to identify onsite construction hazards and guide corrective actions. In
ﬁscal 2021, we conducted these patrols using comprehensive
measures to prevent the spread of the COVID-19.

Special Training on Full Harness Safety Belts

KPI

Promotion to Expand the Construction Career Up System
The Construction Career Up System, launched in April 2019,is a certiﬁcation 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 adoptionof this system is expected to drive on-site work quality andefficiency by enhancing registration of practical experience andcertiﬁcation of engineers and ensuring fair evaluation of those

Registration rate of Safety
and Health Council members(Target: 80% or higher)

72

skills.
Shinryo Corporation promotes the use of the Construction
Career Up System with the hope of improving construction
quality by not only visualizing the careers of individual
engineers but also capabilities of partner companies throughexperienced engineers they employ. Currently, we have put
this system into practice on construction sites in an effort toencourage and expand the certiﬁcation to partner companies.

Measures to Prevent the Spread of the COVID-19 Infection on Construction Sites
Shinryo Corporation does everything in its power to prevent the
spread of COVID-19 on construction sites with the formulationof guidelines founded in the Ministry of Land, Infrastructure,
Transport and Tourism Guidelines for Preventing the Spread of
COVID-19 in the Construction Industry.
Especially in staff offices that tend to become crowded, we
have put up desk partitions, use staggered lunch schedules,
and other such measures to ensure safe spaces for employees
to take breaks.

49

SHINRYO Report 2022%

Safe Meetings Ensuring Social
Distancing

Measure to Combat COVID-19 in
Staff OfficeOverseas Health and Safety Activities
The Shinryo Group has a broad range of construction sites inSoutheast Asia, India, the Middle East, Africa, and many otherparts of the world. We strive to undertake health and safety
management practices unique to the circumstances of eachcountry.
Cambodia and its capital of Phnom Penh in particular
are showing signiﬁcant economic growth recently. Many
skyscrapers and public facilities are being built, but there
is a lack of a skilled and experienced workforce. Shinryo
Corporation has been working to provide the same level ofhealth and safety management on construction sites as that ofJapan in accordance with the various laws and regulations of
the country. A person in charge of safety is always assigned toconstruction sites to provide safety guidance during morningand daily meetings. We also take advantage of other safetymeasures that include conducting safety patrols, training
personnel new to the site, and inspecting any equipment
brought onto the site. These efforts aim to improve safety
awareness as well as nurture a culture of safety.

Morning Meeting on Construction Site (Cambodia)

Asbestos and RCF Management
The Shinryo Group has put in place asbestos and Refractory
Ceramic Fiber (RCF) management systems to prevent any
adverse health effects to employees, on-site staff, customers, oranyone else involved with renovation work. To promote proper
management on construction sites, Shinryo has establishedstandard Group guidelines to ensure thorough on-sitemanagement through an asbestos and RCF construction cycle.
We hold meetings with everyone in charge of asbestos and
RCF management twice a year to review and share the level ofasbestos and RCF management. In ﬁscal 2021, these meetings
successfully raised awareness about amendments to the Air
Pollution Control Act, the Ordinance on Prevention of Health
Impairment Due to Asbestos, and other applicable laws andregulations.

Moreover, a check list to prevent asbestos exposure publishedby the Ministry of Health, Labour and Welfare in March 2021
was distributed to people in charge of construction work onsite to promote evengreater awarenessabout the measures
which should
be taken during
demolition andrenovation work on
construction sites.
Removal Operations for Products that Contain
RCF
Initiatives to Address Priority Subjects

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.).
This website is used by many construction companies to create
documents more efficiently.
Shinryo Corporation has formed a dedicated team and built
a system for that dedicated team to review documents fromnot only primary suppliers but also secondary and subsequent
suppliers. We engage in uncompromising compliance with laws

and regulations by using this system to properly manage thedocumentation required under the Construction Industry Law
and other statutory regulations. The Green Site Construction
website also helps reduce the administrative work of partnercompanies because it links to the Construction Career up
System ( P49), such as the registration of information about
engineers and other staff.

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 understating 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 2022

50

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 - Phase 5
Shinryo Corporation has continued to use the Refreshing Work
Style Project as an initiative for employees to review their own
approach to work since 2016. This work style reform initiative
shares specific ways to enhance work styles from innovations
to increase productivity to invigorating communication andcultivate broader awareness.
In May 2021, about 180 employees from the Shinryo
Corporation and Shinryo Group companies participated in an
online meeting to report on Refreshing Work Style Project
results. All of our corporate divisions, branches, and three
Shinryo Group companies announced a total of 20 examples ofsuccessful work style reforms, including the use of digital tools
to enhance communication and management techniques on
construction sites. Among these reports, the presentations
from our Asian branches engaging in work style reform
together with employees from various countries with different
perspectives on labor by country attracted much attention.
We are bundling and sharing the many innovations realized
through this activity which encourages employees to think
about how to change their own work style in a Work Style
Reform Guidebook (Collection of Case Studies).
Through the Refreshing Work Style Project, Shinryo
Corporation has gradually shifted its corporate climate fromone only seeing work style reforms as impossible to one thatmakes employees feel at ease taking paid leave or going homeearly. In the future, we aim to achieve even a better work stylethrough a wide range of initiatives.
*Shinryo Technical Service Corporation, Shiroguchi Co., Ltd., and Daiei Denki Co., Ltd.
were involved in the system design and installation.

51

SHINRYO Report 2022

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

Relevant SDGs

KPI

Outline of KPI for Priority SDG Subjects (Detailed List on

P25-26)

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

Confirmation ReportingWork style reform activities by model teams
Corporate Divisions, Branches andAdministrative sections: Reform work styles

Information
Exchange

Orders Reporting

Coordination

Group Companies
Shinryo Technical
Service
Shiroguchi

45 Meeting
General managers and managers of technology: Identify
problems

Daiei Denki

Initiatives to Address Priority Subjects

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

Implementation rate of on-site
no overtime days and numberof model sites striving for work
style reform

Year-on-year change inovertime

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

85%

First Year

Second Year

Third Year

Fourth Year

Fifth 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

97%

90%

90%

‒

Model Sites
Total:142

Model Sites
Total:121

Model Sites
Total:229

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

–3.3

–2.6

–2.1

+1.7

–2.7

PointsPointsPointsPointsPoints

60%

62%

72%

64%

85%

+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

SHINRYO Report 2022

52

Build Refreshing Environments Rich with Creativity

Cultivating an Enthusiastic Workplace
Promotion of Health Management
Health Declaration
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.

Better Health for an Enthusiastic Workplace
Shinryo Corporation engages in a broad range of activities topromote better health so that every employee can actively
participate thanks to good health and enthusiasm.
To promote health management, we coordinated with the
Safety and Health Committee to build a system that links
health officer, health manager, and industrial physicians at eachlocation throughout Japan.
Shinryo Corporation focuses on communicating information
which can help raise awareness about health. Thus far, we haveheld lectures on sleep, smoking, alcohol, medicine, and infectious
diseases as well as distributed a public nurse health newsletter.
With the adoption of a retirement age of 65 in 2020, measures
to address the health of 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 to sustain the function of locomotive organs. Shinryo
Corporation has also put in place measures to promote the healthof female employees. We held seminars to teach how to do selfscreenings for breast cancer at the headquarters and six otherbranches and locations with the participation of 152 employees.

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.

Health Management Promotion System
President
Executive in Charge of Health Management, New Work StyleManagement Council

Safety & HealthCommittee

Coordination

Safety & Health
Promotion
Department

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

HealthConsultation
OfficeCoordination

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

Kankenpo
HealthInsurance
Society*Locomotive syndrome is a condition that reduces the ability to stand and walk due
to the impairment of locomotive organs.

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

53

Stress Check Rate

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 2023 Target

Sustain 100%

80%

Sustain 90% or higher

Year-on-year increase80%

FY 2026 Target

Sustain 100%100%

Sustain 90% or higher

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 (35 newly appointed managers and 35 specialized
education candidates took this program in fiscal 2021)

SHINRYO Report 2022

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 theywant to keep 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.
• 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.

Initiatives to Address Priority Subjects

Leave acquisition promotion
systemActivities 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

Promote active participation • Revisions of the retirement age to 65 (60 before the change in April 2020) with raises, promotions andongoing additions of points for retirement benefits from the date of joining of the company to the ageof senior employees with richof 65
experience• Life plan seminars for 58-year old employees
Promote active participationof employees hired midcareer• Implementation of training for new employees (company philosophy, founding spirit, programs andregulations, 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

SHINRYO Report 2022

54

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 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

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 20th year
after joining

Corporate Divisions,
Branches andAdministrative
sections

Training for engineers(on-site management skills, BIM, etc.)

Manager ofDevelopment
Training

Education for marketers andadministrators

Training and Education for Diverse Human Resources
Active Participation of Human Resources Regardlessof Education, Age or Nationality

55

New Employee Training for Mid-career Hires

Shinryo Corporation has translated the Japanese in its
company philosophy that states to “have leadership,
irrespective of education and age” to include nationality in the
English translation. To develop as a global enterprise, we needto build an environment able to cultivate and facilitate a wide
range of human resources to actively participate unbounded bynationality.

Shinryo Corporation provides training to mid-career employeeswith experience working at another company or institution.
Shinryo Corporation offers opportunities to deepen
understanding about important matters that include thefounding spirit and basic philosophy in addition to the
management vision. In addition, we provide company policy,
regulation, compliance, health and safety management
training.

Human Resources Active on the Global Stage

Human resources with diverse skills

Shinryo Corporation opened branches and overseas Group
companies focusing on Asia and the Middle East. Launched in2014, the overseas practical dispatch system is for employees
who have worked for the company between four to eight years
that have first-hand experience in Japan, as a way to cultivate
human resources active on the global stage.
In this program, employees selected from an open
solicitation each year are appointed overseas from one to three
years to gain experience from the start to the completion of an
overseas project.

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

SHINRYO Report 2022

New Employee Training and Education
Over the one-year of new employee training and education,
we have established the perfect curriculum for each technicaland administrative system to teach the skills necessary tocreate an organization where everyone can work withconfidence right after assignment.
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

Training Dormitory “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 who enter thecompany in the same year are able to build bonds by living andlearning together. The system helps employees in many ways,
such as alleviating concerns about the job and seeking advice
from those with more experience at meetings held by eachteam at the dormitory.
*This dormitory puts in place various measures in 2021 to avoid the Three Cs andprevent the spread of the COVID-19 infection.

Education Programs
Primary training and education
Primary training and education teaches the posture necessary
for professionals from the corporate philosophy, policies, andother basic knowledge to business manners over the firstmonth after joining Shinryo Corporation. This program also
provides the essential basics for safety management on
construction sites as well as on-site operations whileinterweaving technical experience. In addition, employees learn
basic knowledge about Shinryo Corporation businesses
through mediums such as courses to teach basic knowledge on
construction equipment as well as information related to themain equipment and materials handled on construction sites.

Practical on-site training and education
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 ofthis practical 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.

Overseas short term training system
Overseas short term training system for new employees held
every year. This system helps deepen understanding aboutliving and working overseas by providing an opportunity for
new junior employees to travel to construction sites overseas
and work on-site there for one week. Communication with local
staff also cultivates human resources who have a global
perspective and will to work overseas.
*This training program was not implemented in fiscal 2021.

Initiatives to Address Priority Subjects

Education by Assignment

Kofu Dormitory

Dormitory

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

Masato Ito
Taku Shimosaka
New employee

I learned and lived with everyone at the Kofu Dormitory, whichbuilt strong bonds with my colleagues. Each one of us
underwent practical training on different construction sites.
We would come back to the dormitory and talk about thethings we had learned that day, which helped us gain new
knowledge and communication skills. My time there was
priceless. I think it was an invaluable experience that I could
only have had during my first year on the job. I hope to becomea technician trusted by my colleagues while we work together
to hone our skills even more in the future.

Dormitory Officer
Sales Section 1, Sales Department 2
Urban Environment Division

Looking back at when I first joined the company, I know the
new employee training and education programs were fantastic
in giving me the basic knowledge I needed. The sales training
was particularly impactful. I remember wanting to become likethe senior employees training us. Now in the second year, I
learn a lot myself as a dormitory officer while working at Kofu
Dormitory and giving guidance to those below me. In the
future, I want to gain even more experience so that I canhandle orders for large-scale projects that will become assets
to the company.

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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 through the Shinryo Hotline
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]
Compliance Committee

President
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

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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
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.

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 byrecovering 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.

Organizational Structure During Disasters
Headquarters
Disaster Prevention
OfficeChairperson: President
Office members:
Vice President
General Manager
Marketing Supervision
Division
General Manager ofCorporate Strategy &Planning Division
General Manager of
Global Finance Division
Chairperson ofTechnical Supervision
Division
General Manager of
Human Resources
Department
General Manager,
Corporate
Communication
Department
General Manager of DX
Promotion Department
General Manager of
Accounting and
Finance Department
General Manager of
Safety & Health
Promotion Department
General Manager:
Manager of General
Affairs Department
Secretariat:
Secretariat Members

Construction Sites

Headquarter
Divisions
Administrative
Sections

Fire Brigade

Headquarters
Recovery Group
Research andDevelopment Center

On-site ProjectManager• Disaster Prevention
Office Installation Group• Information GatheringGroup• Rescue Group• Headquarters Building
Recovery Group• Information Systems
Group• Stranded Employee
Support Group• Research andDevelopment Center
Disaster Prevention
Group

Corporate Divisions/Branches Outside Headquarters

Construction Sites

Division Disaster Prevention OfficeOn-site ProjectManager

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

Fire Brigade

Corporate Division/
Branch Employees

Japanese Group Companies

Construction Sites

Disaster Prevention OfficeOn-site ProjectManager

Risk Management
Information Security Management Systems
Shinryo Corporation has established Management Rules ofCorporate Information and regularly conducts security auditsof primary business and construction site offices to properly
manage customer and supplier information. We have focused
efforts on holding internal liaison conferences on information
security and activities to improve information literacy. In March
2021, an e-Learning program taught the importance of
information security as well as the threats and measuresagainst targeted email attacks.

Initiatives to Address Priority Subjects

Shinryo Corporation has built systems and measures tominimize the damage caused by quality, safety, environmental,
compliance, information security and various other risks in thebusiness environment surrounding the Group to ensurebusiness continuity. We have also put in place Risk
Management Regulations that gather basic risk management
items and Crisis Management Measure Regulations. Specificresponse guidelines were also created to ensure the ability to
rapidly respond to risks worldwide.
Risk Management System

Response to the COVID-19 Pandemic[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

Shinryo Corporation established the Shinryo Group Risk
Response Task Force while advancing efforts to prevent the
spread of the virus at all of its business locations worldwide
starting at the end of January 2020 to guide the decisions andexecution of measures to ensure business continuity.
To protect the health and safety of Shinryo Group executives
and employees worldwide, the task force is working to checkthe health of everyone involved, gather and share information
about the COVID-19, and procure masks, antiseptics and otherpreventative articles.
Between June and October 2021, our headquarters and the
Osaka Branch implemented a workplace vaccination program
to prevent the spread of the COVID-19 which inoculated
approximately 2,800 people. We have striven to properly
manage vaccines during this vaccination program.

Risks

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Build Refreshing Environments Rich with Creativity

Compliance
Legal Compliance System
Compliance Promotion System

Shinryo Group Code of Business Conduct

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.

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.

Compliance Promotion System diagram
1 Pursue customer satisfaction by standing in customers’
positions.

Decision-making Body

2 Pursue management efficiency for the sake of shareholders.

Board of Directors

3 Create energetic and comfortable workplaces that staff canshow their families how proud they are of their Company.

ReportingPresident

4 Together with our business partners, thoroughly comply withcorporate ethics, laws, and regulations and conduct fair,transparent, and open.

Management Council

OrdersCompliance promotion function

Audit
Division

Compliance Committee
OrdersReportingCompliance Promotion
Division
Expansion of
education andrelevant measures
Guidance/support

Auditing

Coordination

Coordination

Auditing
Function

5 Constantly pursue how we should be as a member of a healthysociety.

ReportingRelevant
Departments
General Affairs
Department
Accounting and
Finance
Department
etc.

6 As a global enterprise, contribute to the societal developmentof related countries.

Reporting andConsultations

Corporate Divisions,
Branches andAdministrative sections
Group Companies
Compliance Supervisors

Guidelines and Other Policy Measures
Japan Compliance Guidelines
Compliance Guidelines/Collection of Compliance
ExamplesShinryo Corporation formulated the Shinryo Group Compliance
Guidelines founded in the basic principles of the Company
Philosophy, Code of Business Conduct, and Standards ofConduct. We have also created the Explanations on Related
Laws and Regulations booklet bringing together systematicallyorganized laws such as the Antimonopoly Act and Construction
Industry Laws. Shinryo Corporation and all of the executives
and employees of Group companies have taken the guideline
education and have committed to compliance.
We have also created a Collection of Compliance Examples
bringing together specific examples related to compliance as away to educate and raise awareness about compliance in our
executives and employees.

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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. 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.

KPI

Outline of KPI for Priority SDG Subjects (Detailed List on

P25-26)

Thorough Compliance to Guidelines for Anti-corruption
Overseas
Shinryo Corporation has brought together compliance items
and the compliance system related to government officials
when conducting business overseas, as Guidelines for Anticorruption Overseas. These guidelines also 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 and make revisions in atimely manner. All of the Japanese employees who work atoverseas bases as well as executives and employees from local
companies participate in training 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.

KPI

Understanding and Practice of Compliance
Implementation of Comprehensive Compliance
Education
Implementation of education for every executive andemployee throughout the Group
Compliance education is regularly held for Shinryo Corporation
and Group companies worldwide. In fiscal 2021, the education
addressed fraudulent accounting. Shinryo Corporation strives
to build a corporate climate to engage in operations thatbroadly address social issues in a timely manner while always
keeping in mind compliance.
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*Start in FY 2022

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
Internal Service Office: Shinryo Corporation/Compliance
Promotion Division
E-mail: soudan@shinryo.com

Initiatives to Address Priority Subjects

Target Trainees

Participation rate in compliance training:
Target: 100%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

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

Cooperation Between Group Companies
We regularly hold informational liaison meetings with Group
companies in Japan and share information about compliancesuch as response to legal reforms and formulation of internal
rules to unify compliance awareness and operation as the
Shinryo Group. In fiscal 2021, the revised Collection ofCompliance Examples was rolled out for use in training at eachcompany.

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.

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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
Construction Equipment Optimization Aiming for Greater Efficiency

Hideki Hagiwara
President, Representative Director
Date of Establishment: 1989
Address: Shinryo No. 5 Bldg., 14 Arakicho,
Shinjuku-ku, Tokyo

Shinryo Technical Service launched in
1989 has continued to prove itself as acompany specializing in construction
equipment upgrade, maintenance, andmanagement services. The passage oftime has set us on a trajectory towarda sustainable society, which has shifted
the construction industry into an era ofstock and renovations. In this businessclimate, I think our business is an

essential one.
The merger of six Group
companies involved with systems andinstrumentation work in 2015 created alife cycle management service systemand established an organizational
structure that can provide everythingfrom new construction throughmaintenance and renewals throughone-stop service. Our regular efforts inpreventative equipment maintenancecombined with maintenance cost andlabor reductions and a synergistic
effect, such as renovation work, aim to
optimize construction equipment andimprove efficiency.
We devise maintenance plans thatconsider a wide range of standpoints
from the run time and type of use to
the maintenance period recommended
by each manufacturer and carefully
propose the best equipment andsystems for each client to save energy
throughout the entire life cycle so that

customers can use equipment longer.
In the last few years, Shinryo
Technical Service has also started
training to enhance the skills oftechnical employees. We constantly
offer educational opportunities in aneffort to improve our technical skills.
This includes mentor training where
veteran engineers provide guidance toyoung technicians, courses to enhance
the ability to propose renovations,and seminars to study for various
certiﬁcations.

High-efficiency Equipment Upgrade Handled by
Shinryo Technical Service

Shiroguchi Co., Ltd.
Social Contributions by Expanding and Enhancing Hygienic Environments

Takehiro Masuda
President, Representative Director
Date of Founding: 1917
Date of Establishment: 1926
Address: Shinryo Shinjo Bldg., 2-9-2, Kandata-cho,
Chiyoda-ku, Tokyo

Shiroguchi provides society withenvironments offering an easier wayof life and work, safety, security, andcomfort through the design, installation,and maintenance of water supply,
drainage and sanitation systems
necessary for daily life. In 2017, we

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SHINRYO Report 2022

celebrated a century in business since
our founding in 1917. Throughout all ofthat time, we have continued to researchand innovate the world with unfetteredingenuity prioritizing people’s lifestyles.
We are actively adopting prefabricationand precutting methods for standard
piping used in condominiums and various
other projects to increase productivity
on construction sites. The piping material
plants also connect the pipes, joints andfasteners and test for any leaks, whichmeans only the installation work needs
to be done on site. This fabrication
method provides a fully integrated
system from material procurement tofabrication, inspection and installationand offers stable quality and higher
operational efficiency. We limit theamount of packaging waste by sorting
the various piping parts fabricated ateach plant by room for installation anddelivering those parts in reusable boxes.
Shiroguchi has also started internalteam projects for work style reforms,
on-site support, ICT promotion, humanresource strategies, and numberbased management in preparation
for the amended Labor Standards
Act going into effect in April 2024 in
the construction industry. Everyone is
striving to innovate their work styles
and increase productivity in an effort toreach the same targets.

Inspection of Piping Parts Fabricated at the Plant

Daiei Denki Co., Ltd.

Akita Castle Hotel Co., Ltd.

Social Contributions by Shifting Train Stations to
LED Lighting

Original Product Development ThroughPartnerships with the Local Community

Daiei Denki has been involved with the construction of railway
infrastructure for a very long time. Many projects that we arehandling recently are work to shift train stations to LED lighting
systems. Lighting has become a vital system at train stations used
day or night in modern times. Due to the constant use of the lights,
the systems require economical maintenance and management
as well as ways to save energy. By installing the proper lightning
equipment, Daiei
Denki not only helps
extend the life of eachsystem and increaseenergy savings but
also contributes togreater comfort andsafety of passengers
using the train station. Train Station Using LED Lighting

The Akita Castle Hotel began sales of a cheese terrine fragrant withfermented sake lee in June 2021. The use of the sake lee byproductof the rice wine production process brings a rich ﬂavor to the cheese
terrine. Akita Prefecture has more than 30 different Japanesesake breweries. Japanese sake is one invaluable resource sharing
the mystique of Akita. Our hotel has striven to develop productsthat use Japanese sake and sake lees taking the creation of an
original Japanesesake in 2018 as anopportunity. We willcontinue to deepen
partnerships withlocal businesses while
using local resources.

Shinryo Kougyo LTD.

Global Staff Co., Ltd.

Disaster Recovery Support of the Tohoku Region

Diversification of Educational Opportunities

The heavy rains brought to East Japan by Typhoon Hagibis in 2019
devastated Tohoku, Japan. The Tohoku Region has only recently
restored its drainage pump station and recovered the rest of thefunctions halted by the disaster due to the record-breaking rainfall
in each area. With the increasing risk of natural disasters every year,
Shinryo Kougyo will continue to propose and provide the proper
maintenance and improvements for drainage pump stations andother public utilities. Therein, we will contribute to ongoing urban
redevelopmentthat can provide asafer, more securecommunity for the
local people to live.

Education is more important than ever before in order to adapt to a
generation rapidly evolving technology and the labor environment.
Global Staff provides a learning environment for CAD software totemp staff as demand for these skills grows. More and more of ourstaff is showing interest in these programs thanks to the distancelearning format. In the last six months, approximately 80 people
have taken part and learned practical skills they can actually use on
the job. As a way to offer human resource development adapting
to the needs ofeach generation,
Global Staff will ﬁnd
solutions to overcome
the limitations of timeand place and realize
diverse educational
opportunities.

Cheese Terrine Fragrant with Fermented Sake Lee

Sustainability Promotion Activities at Shinryo Group Companies

Shimo Ogawa Drainage Pump Station After
Restoration

Remote CAD Software Training

SYSPRO CORPORATION
Young Employee Project to Invigorate the Organization
SYSPRO worked to develop a scheduling app for the purpose of employee
training and organizational revitalization. This new app makes it easier to divide
tasks and adjust plans, leading to improvement in productivity because it canbe viewed while out of the officeor working remotely. In the future,
we hope to focus on enhancing
the app features by putting oureffort into making it more usefulfor people outside the company.
Through these types of activities,
SYSPRO will help promote a
digital transformation.
Young employee Project

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Sustainability Promotion Activities at Shinryo Group Companies

SHINRYO HONG KONG

SHINRYO MALAYSIA

Steady Participation in Volunteer Welfare Activities

Measures to Prevent the Spread of COVID-19
Infection at Offices

SHINRYO HONG KONG supports Open Door Community
Services as a non-proﬁt organization engaged in volunteer
activities and community services for people in need. We havebeen sponsoring and volunteering for this organization foreleven consecutive years since 2011.
In June 2021, a team of ﬁve volunteers participated in aneffort working to donate masks, antiseptic gels, foodstuff andother such supplies. The pandemic has constricted volunteer
activities, such as those to support nursing homes. In spite ofthese limitations, SHINRYO HONG KONG hopes to contributeto the development of the local community in Hong Kong bycontinuing to volunteer for Open Door Community Services
activities.

Volunteer Activities

Entry and Exit Management Using the App

THAI SHINRYOSHINRYO INDONESIAManagement of Safe and Work-friendly Constructions
Sites

BIM Promotion to heighten Productivity

Thai Shinryo appoints safety officers as specialized staff trained insafety management to lead safety management on construction
sites. The safety officers strive to manage the safety on theirconstruction site through initiatives that maintain a high-levelof safety. Safety meetings share a broad range of informationfrom safety management procedures to safety educationand examples of accidents on each construction site. The
safety officers also participate in on-site safety patrols on arotational basis where executive officers participate to learnsafety measures outside of one’s ﬁeld in order to improve safety
awareness and support construction site management that is able
to achieve a safe
and work-friendly
environment.

Safety Patrol

63

Shinryo Malaysia has thoroughly implemented measures to preventthe spread of the COVID-19 infection at offices based on thestandard management procedures to prevent the spread of the
COVID-19 infection issued by the Malaysian Government.
These measures of course include taking temperaturesand disinfecting hands upon arrival at work as well as using
sprayers to disinfect the office on a daily basis and taking
voluntary COVID-19 tests using antigen testing kits once every
two weeks. We also have put in place an environment where
employees can feel safe to work using daily countermeasures,from entry and exit management using an app developed by
the Malaysian government to reports to the Ministry of Health if
someone does test
positive.

SHINRYO Report 2022

The use of BIM is even expanding in Asia, especially in Singaporeand Honk Kong. Needs for BIM are growing too in Indonesia,
such as adjustments to ﬁt equipment and systems as wellas conﬁrmations of material quantities during customer
presentations and at the design stage.
Shinryo Indonesia has a history using BIM software. In 2020,
we established a BIM promotion department and began to fully
ramp up BIM use. This department works in tandem with the BIM
Promotion Office at the Shinryo Corporation and shares the latest
information in regular meetings in an effort to improve technicalcapabilities and train operators in BIM software. The support of BIM
operations on construction sites helps increase on-site productivity.

Work of the BIM Promotion Department

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

High School Internships

Model Company Safely Using Bicycles

In July 2021, sophomore living environment system students
from Fujisawa Koka High School took part in an internshipat the Yokohama Branch. These interns took classes on thefundamentals of air conditioning and sanitation systems
and gained practical design experience on the ﬁrst day while
making sure to take the utmost care to prevent the spread of
the COVID-19 infection. Over the next few days, the students
toured various facilities to see heat source and air conditioning
equipment, central monitoring systems, and other installations
on renovation sites. These high schoolers experienced duct
production through visits to partner companies, and learned
that the construction industry exists through cooperation ofmany companies and their employees. Shinryo Corporation willcontinue to cultivate more interest and understanding about
the constructionindustry in youths
through theseinternships. We
will also support
opportunities forstudents to consider
and design a future
career path.
High School Internship at the Yokohama Branch

Shinryo Corporation encourages the safe use of bicycles toreduce the use of corporate cars and improve the commuting
environment for employees. Bicycles are not only used forcommuting but also for getting around large construction sites
and traveling between accommodations and construction sites
in areas with minimal public transportation. The Marunouchi
Branch uses bicycles to travel between the construction sites
in central Tokyo and the office, which even reduces the time ittakes to go back and forth.
Employees use these bicycles safely according to internal
rules that include strict compliance with traffic laws andenrollment in insurance to be ready for any unexpected
incident. In September 2021, the Yotsuya Police Department
designated theShinryo Corporationa model company
safely using bicycles.

Donations to Organizations Supporting
Disaster-afflicted Areas

Clean-up Activities Around the
Takamatsu Warehouse

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 forsupport in disaster-afflicted areas over the longer term, we
also continue to donate funding to organizations that actively
support the recovery of disaster-afflicted areas. In November
2020, we donated 5 million yen to JVOAD to provide relief topeople and for recovery support activities of areas afflicted by
the disaster.

Shinryo Corporation engages in a clean-up activity around the
Takamatsu Warehouse in Nerima-ku, Tokyo every Wednesday.
This warehouse is located in a residential district. The cleanup effort started as an activity to share our gratitude with thelocal communitythat supports us ona daily basis. Our
partner companies
even lend a hand in
the clean-up activity
which has been
done for about 12
consecutive years.
Clean-up Activity

Using a Bicycle Between the Office andConstruction Site

Social Engagement

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
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64

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 Quality Assurance Ltd. in 2013. He was appointed
the Managing Director of Lloyd’s Register Japan K.K. in 2020. Throughout his career,
Mr. Hidemi Tomita has been involved with many government committees andinternational standards.
*Company name changed from Lloyd’s Register Japan K.K. to LRQA Sustainability
K.K. in January 2022.

The Editorial Policy for the SHINRYO Report 2022 statesthat this report has been compiled focusing on the initiatives
for sustainability promotion, but it also includes summaries
from Shinryo Group business proﬁles to the history of theorganization. The broadness of the information herein
provides an overall view of the Shinryo Group that is easy forreaders to understand, even though it is not in an integrated
reporting format. The SHINRYO Report 2022 offers theinformation which effectively deepens the understanding of
employees, customers, and various other internal and external
stakeholders.
The comprehensiveness of information about sustainability
promotion illustrates the promotion system and thefour priority subjects (materiality) unique to the Shinryo
Corporation in a very clear way. The materiality identiﬁed
by companies often becomes too technical and is generally
hard for employees to understand. I think the four priority
subjects presented in this report have found harmony witheach business and are very compelling to employees. I mustalso praise how the KPI set for each priority issue deﬁne a ﬁxed
target. I hope the Shinryo Corporation will update the KPI andtarget values from a medium- to long-term perspective in the
future.

Priority Subject 1: Contribute to a Decarbonized Society
sets a target to reduce emissions 50% by 2030 and achieve
net zero emissions by 2050, which compares favorably to thetarget levels expect of modern companies. I also would like tocommend the clear emission reduction trends over the last
several years and the formulation of actual scenarios centered
upon research and development. However, as Takeshi Kagami
wrote in his Message from the President, “Today, it would be
harder to ﬁnd a building without an air conditioning system.” In
the future, people will expect even more ambitious reduction
target settings and speciﬁc scenarios to achieve those goals
from a stance aiming to contribute to a decarbonized society.
This not only includes Scope 1 and 2 emission reductions for
Shinryo Corporation but also Scope 3 emissions resulting
from the use of air conditioning systems in particular. Shinryo
Corporation has already put in place a variety of measuresand has been bettering its performance. However, I think
there is a high chance of expectations to accelerate initiatives,
considering the problem of climate change will become moreurgent. Shinryo Corporation is not a publicly listed company.
However, I think following the information disclosure guidelinesof the Task force on Climate-Related Financial Disclosures(TCFD) as a future effort would beneﬁt the Shinryo Corporationfrom a corporate resiliency standpoint.
The in-depth coverage of several speciﬁc initiatives toaddress the three other priority subjects provides a real
feeling of disclosure. In the future, I would like to see higher
targets and systematic initiatives to overcome each of thesechallenges.
I also applaud the information about Priority Subject 4: Build
Refreshing Environments Rich with Creativity. The report offersa sincere look at the results achieved up until now, including
targets that were not met. Unfortunately, many companies shy
away from disclosing unfavorable information in an effort tomake themselves look good. I hope the Shinryo Corporation
will continue to provide even more comprehensive information
while remaining steadfast to its company philosophy andsincere-disclosure of information.

Reflection on the Third-party Opinion

Katsuhiko Yakita
Director and Managing Executive Officer in Charge of Sustainability Promotion

Thank you very much for the invaluable feedback about our sustainability promotion activities. Mr. Hidemi Tomita advised
us during the 2019 and 2020 idea exchange meeting concerning the priority SDG subjects to aim to set priority issues
unique to the Shinryo Corporation which would be compelling to employees. We discussed what might be unique to ourorganization once again based on his guidance and successfully found priority subjects and KPI to address those issues.
His recognition of our priority subjects and KPI this year is encouraging to our future activities. In regards to his point
about our climate change initiatives, we are raising awareness about the importance of these efforts and hope to promoteeven stronger research and development as well as planning capabilities. We will also consider reduction targets to set for
Scope 3 greenhouse gas emissions and relevant disclosure in the future. Shinryo Corporation will respond to demands ofsociety through its businesses to build a sustainable society and create a freshening world.

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SHINRYO Report 2022

SHINRYO REPORT 2022
Published January 2022 (Next Report Scheduled for January 2023)

Shinryo Corporation
Sustainability Promotion Department, Corporate Strategy and Planning Division
COMORE YOTSUYA/YOTSUYA TOWER, 5th Floor, 1-6-1, Yotsuya, Shinjuku-ku, Tokyo 160-8510, Japan

https://www.shinryo.com/sustainability/

SHINRYO Report 2022

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Published in January 2022