Environmental & Social Report 2012 About JGCName:

JGC Corporation

Location:

Yokohama World Operations Center 2-3-1 Minato Mirai, Nishi-ku, Yokohama-shi, Kanagawa
Tokyo Corporate Office2-2-1 Otemachi, Chiyoda-ku, Tokyo

MM Park Building Office

3-6-3 Minato Mirai, Nishi-ku, Yokohama-shi, Kanagawa

Kamiooka Office		

1-13-1 Saido, Konan-ku, Yokohama-shi, Kanagawa

Research and Development Center

2205 Narita-cho, Oaraimachi, Higashi-ibaraki-gun, Ibaraki

Domestic Office		Osaka

Overseas Offices		

Beijing, Jakarta, Hanoi, Perth, Almaty, Abu Dhabi, Paris and others

Overseas Affiliates		

Philippines, Vietnam, Saudi Arabia, Italy, U.S. and others

Employees (approx.): 9,000 persons (as of March 2012)
JGC: 2,100 persons
Domestic affiliates: 2,900 persons
Overseas affiliates: 4,000 persons

Net Sales (2007–2011) <Consolidated>(Billions of yen)700

Net Sales by Region (2011)
Oceania 12.8%
North America/South America 0.9%
Europe/CIS/East Europe 0.4%

600

556.9

551.0

500

450.9

414.2

(Catalyst and Fine Chemicals)
7.5%

Net Sales
556.9
billion yen

200

Middle East
36.8%

100

2008

2009

Others 1.6%

Catalyst and Fine
Chemicals 7.5%

Japan
22.7%

300

2007

Living and General Production 7.7%
Environmental Protection, Social
Development and IT 3.9%

447.2

400

0

Net Sales by Industry (2011)
Power Generation/Nuclear Power/
New Energy 4.5%

2010

Africa
8.0%
Asia
10.9%

2011

Oil and Gas
Development
39.4%

Net Sales
Petrochemicals
andChemicals
9.2%

556.9
billion yen
LNG
18.6%

Petroleum Refining 7.6%

 The JGC GroupAs an engineering contractor, the JGC Group’s core business is providing planning, design engineering, equipment procurement,
construction (EPC), and commissioning services for various industrial plants and facilities. The JGC Group is also involvedin enterprise investment businesses, management services, the manufacture and sale of catalysts and fine chemicals, andothers.
The scope of this report mainly includes the JGC Group companies listed below.

Total Engineering
Business (EPC Business)

Catalyst andFine Chemicals Business

Other Businesses

JGC
JGC Plant Solutions
JGC PLANTECHJGC PhilippinesJGC Gulf Internationaland others

JGC Catalysts & Chemicals

JGC Information Systems

Nikki-Universal

Japan NUS

Japan Fine Ceramics

JGC Energy Development(IT and Consulting Businesses)

and others Editorial Policy
The purpose of this report is to present to ourContentsstakeholders the CSR efforts of the JGC Group,with a focus on environmental conservation. This
year’s feature article covers our “Initiative to be No.
1 in Health, Safety, and the Environment.” We report

Message from the Chairman

03

JGC Group’s CSR Policy

05

Relationships Between the JGC Group’s
Businesses, Society, and the Environment

07

to four pillars of our business: “Project—Health, Safety,

Corporate Governance09

and Environment Concerns in Project Activities”;

Risk Management

11

on the state of our HSE efforts in the EPC business,where the requirements imposed on us by our clientsgrow more important every year.
The report also details our activities as they relate“Management—Environmental Consideration Basedon

Environmental

Management”;“Technology—

the JGC Group’s Environmental Technology”; and“Social—Social Dimensions of Sustainability.”

Feature Article
To be the Top in HSE

Initiative to be No. 1 in Health, Safety,
and the Environment

12

Project
Scope of Reporting
The content of this report includes information concerning
the activities of JGC Corporation (“JGC”) and Group
companies (listed at the bottom of the left page).
“Environmental Consideration Based on Environmental
Management” (P23–29) covers the JGC’s construction
sites in Japan.
Note: Activities other than those specifically attributed to
the JGC head office or individual Group companies referto those of the JGC Group as a whole.
Reporting Period
This report is compiled principally on the basis of data
for fiscal 2011 (from April 1, 2011 to March 31, 2012).
Important matters (those regarded as highly significant)concerning activities outside the reporting period (up toJuly, 2012) are also the scope of this report.
Publication of This Issue
September 2012
Next Scheduled Publication
September 2013
Publisher
Corporate Administrative & Financial Affairs Division
Public Relations & Investor Relations Department/Corporate
Administration Department/Quality Assurance, Safety &Environment Office
Contact telephone number: +81-45-682-1111
JGC website URL: http://www.jgc.co.jp

Health, Safety, and Environment Concerns
in Project Activities
Health, Safety, and Environment
Consideration at Every Stage of EPC

16

Occupational Health and Safety

21

Environmental Consideration in Investment
Projects and Research & Development

22

Management

Environmental Consideration Based on
Environmental Management
The JGC Group’s Environmental Management 24
Environmental Objectives, Targets, and Achievement 25
Environmental Report on Office Activities

27

Continuous Improvement of Management Systems

29

Technology

The JGC Group’s Environmental Technology
Using JGC’s Environmental Technology
to Solve Difficult Issues

31

SocialSocial Dimensions of Sustainability
Personnel Development and Communication
with Employees

37

Corporate Social Responsibility

38

Message from the Chairman

Contributing to Realization of a
Sustainable Society through the Power ofEngineering and Project Management
The Widening Applications ofEngineering

growth, which creates a pressing need for highly energyefficient, environmentally-conscious sustainable urban

Ever since the British Empire, engineering, together
with agriculture, industry, and commerce, has formed
the foundation of our social infrastructure, and played
an essential role in the building of nations. In the years
through to the present time, the JGC Group has applied
its engineering knowledge to the design and building

demand for novel engineering technology and project
management across a wide variety of fields.

JGC is Active in a Broad Range ofFieldsof energy production plants and industrial facilities

Under our new five-year management plan “New Horizon

worldwide,2015” which took effect in fiscal 2011, JGC aims tocontributing

to

the

industrializationofnumerous countries.

further expand the market for our engineering services.

In the engineering and construction of energy-related

While retaining plant engineering, procurement, andfacilities such as oil and natural gas plants, efficiency ofconstruction (EPC) as our core business, JGC intends

energy generation, economy of resource consumption,

to become a “Program Management Contractor andand awareness of environmental and social issues, are

Investment Partner,” a business entity active both inabsolute requirements. The JGC Group has adopted

enterprise investment and in planning and management“Energy,” “Economy,” and “Environment and Society”

services.

as keywords to describe these requirements, and uses

In fiscal 2011, in the EPC business arena, JGC was“Engineering” as the means by which to optimize them.

awarded a contract for construction of an onshore LNG

The JGC Group defines our corporate philosophy asplant within the scope of the Ichthys LNG Project, a mega-

follows: “To achieve enduring growth as a globally active

LNG project currently under development in Australia

company with a core business of engineering-basedby INPEX Corporation. Approximately 70% of the LNG

services, while contributing to world economic and social

produced from this plant will to be exported to Japan,

prosperity, as well as to the conservation of the earth’s

making this Project a significant element of Japan’senvironment.”

national energy policy.

Today, the JGC Group makes full use of its engineering

In the field of enterprise investment, the solar

experience not only to provide various systems that support

photovoltaic power generation project developed by JGC

social and industrial development but also to offer energy

in Spain has entered into commercial operation. Thisand environmental solutions. For example, we apply our

project contributes to a stable supply of energy in the area

cutting-edge engineering technology to the construction

as well as to the reduction of greenhouse gases. Throughof production facilities for liquefied natural gas (LNG) as

it, JGC serves both the needs of society and conservationa cleaner form of energy; to the efficient development ofof the earth’s environment. In addition, construction of

untapped resources; and to the development and use ofa Demonstration Plant for production of JGC Coal Fuelrenewable energy, including biomass, solar photovoltaic,(JCF®), a petroleum alternative fuel made by artificiallyand solar thermal energy. We also apply engineering

upgrading low-rank coal, was completed in Indonesia.

innovations to water purification, soil decontamination, airCompletion of the Demonstration Plant marked a major

pollution prevention, energy efficiency development andstep towards the promotion of JCF® as a commercial

waste detoxification.

fuel. In addition to enabling previously unused low-rank

Furthermore,

03

development. In summary, there is very considerable

flexible

engineeringsolutionsarecoal to be utilized effectively, this project will also support

increasingly required in the energy-related field: foreconomic development and energy security in Indonesia,

example, to address the electricity shortages that followed

a country currently undergoing rapid economic growth.

the Great East Japan Earthquake of last year. In addition,

EPC continues to be JGC’s core business, and we

emerging countries are achieving remarkable economic

therefore take Health, Safety, and Environment (HSE)

JGC CORPORATION

requirements for EPC projects very seriously. In recent
years, HSE standards have grown consistently higher
and requirements more stringent. In this report, we detail
JGC’s proactive initiatives toward becoming the world’s
No. 1 contractor in HSE. Our philosophy for safety is thatit cannot be coerced. Instead, a culture for safety can be
fostered in an organization by transforming the attitudes ofindividuals, stressing that safety is a personal choice thathas an impact on everyone else.

Working Toward the Realization of a
Sustainable Society
The JGC Group defined its CSR Basic Policy and set forth
four Priorities of Social Contribution Activities in April 2011.
The Group believes it essential to take environmental andsocial considerations into account when designing andconstructing energy and industrial facilities. The facilities
and services we deliver must be optimized to ensure
safety and peace of mind for everyone. This means not
only the client but also the employees, the beneficiariesof the facilities, and the local community. Our social
contribution activities are organized around four priorities:
Environment, Education, Science and Technology, andLocal Contribution. This report covers part of these
initiatives, including activities in Yokohama, where
JGC’s headquarters is located, as well as at overseas
construction sites and subsidiary companies in Japanand overseas.
In these modern era, our global society faces numerous
problems related to energy, the environment, and society.
By maximizing the engineering and project management
capabilities we have fostered over many years, the JGCGroup will continue to strive to identify solutions for theworld’s problems, and in doing so realize a sustainable
society.

Keisuke Takeuchi
Chairman and Representative Director
JGC Corporation

Environmental & Social Report 201204

JGC Group’s CSR Policy
JGC Group’s CSR Policy and Guideline have been created based on the concept of “contributing
to the prosperity of the economy and society while protecting the global environment.”
The related activities are divided into six fields and implemented cross-functionally.

JGC CSR (Corporate Social Responsibility) Policy
JGC is committed to fulfilling its role as a member of society (Corporate Citizenship). We recognize that the foundation of ourbusiness activities is strengthened by contributing to the prosperity of the world economy and society; to the healthy preservationof the global environment; and to the sustainable development of society and the global environment.
To meet this commitment, JGC hereby establishes the following principles, which shall be applied, throughout its operations.

1. W
 e shall conduct our business with a full understanding of the importance of quality, safety,
and the environment.

2. We shall provide our social contributions using the characteristics of the JGC Group.

3. We shall comply with legal requirements inside and outside the country, and conduct ourbusiness in a fair and sincere manner following a proper governance system.

4. We shall disclose necessary information to our stakeholders in a timely and appropriatemanner.

5. We shall endeavor to maintain and further improve fair human resource management todevelop people’s ability and vitality based on mutual trust and responsibility.

6. We shall promote the awareness of CSR and further develop our CSR activities reflecting
the voices of stakeholders.

CSR Guideline
The JGC Group’s CSR Guideline is “to contribute to the prosperity of the economy and society while protecting the global
environment.” Through our business and CSR activities, using this CSR Guideline, the JGC Group aims to contribute tosustainable development of society as a whole. “Sustainable development” includes ensuring the longevity of our businessprospects by helping to ensure the longevity of the larger society that supports them, by aiming for development that enables
continuous growth.
The JGC Group holds a strong awareness of its role as a member of society, and aims to fulfill this role based on the six
points listed below.

1. “ Quality, Safety, and the Environment” are the fundamental watchwords which will guide the
JGC Group’s continued efforts to work toward the sustainable development of society. As
we exert our maximum efforts to realize these concepts, we shall maintain our awarenessthat providing safe, high quality, and environmentally friendly products and services
contributes to gaining our customers’ satisfaction.

05

JGC CORPORATION2. The JGC Group’s diverse global business activities range from the provision ofcomprehensive engineering services to dealing with catalysts and fine chemicals and weshall put the unique technologies and experiences we have gained through our involvementin such business fields to full use in our social contribution activities. Details of JGC’s policy
regarding our social contributions are described in the “JGC Social Contributions Policy.”
The four target areas of our social contributions can be summarized as, the Environment,
Education, Science and Technology, and the Community.

3. T he JGC Group is profoundly conscious that the maintenance of compliance and an efficientinternal governance system are essential for the sustained well-being of an organization.
Hence, we shall continue to maintain these elements as we respond to the requirementsfrom society and the trends of the times. All management and employees shall follow legal
and social rules based on high ethical standards.

4. T he JGC Group is a listed company, and we take it as our duty to disclose information
to the market in a timely and appropriate manner. We shall proactively provide important
information in terms of the business environment and social situation, information that
may have an impact on stakeholders, helpful information to deepen the understandingof the JGC Group as well as fulfilling our duty of information disclosure required by laws
and regulations such as the Companies Act and the Financial Instruments and Exchange
Law.

5. The JGC Group’s CSR Policy describes “fair human resource management to develop
people’s ability and vitality.” We shall be fully guided by the principle that the growth anddevelopment of the company occurs reciprocally with the growth and development of its
employees. Based on this sense of mutual trust and responsibility, each employee shallcontribute to the company as a professional, and the company shall provide opportunities
for the empowerment of employees and for them to show their ability and vitality.

6. The JGC Group shall promote CSR awareness throughout its organization, frommanagement to employees. We shall carefully listen to the voices of stakeholders andcontinue making optimal efforts to respond to social needs and trends in the businessenvironment.

Environmental & Social Report 201206

Relationships Between the JGC Group’s
Businesses, Society, and the Environment
The JGC Group provides plant engineering services to private-sector corporations andgovernment organizations around the world. JGC also engages in activities closely tied to society
and the environment in a number of other fields, focusing on enterprise investment and service
businesses.

Business Sector

EPC Servies

Enterprise Investment
and Service Business

EPC: Engineering, Procurement, Construction

The JGC Group contributes to local economic and industrial developmentby building energy-related plants in Japan and other regions of the world,
including Asia, Oceania, the Middle East, Africa, and South America. The JGCGroup also creates general production facilities and facilities that respond to
the needs of society in Japan and abroad: pharmaceutical plants, laboratories,
and diverse industrial plants that meet increasingly complex and sophisticatedstandards, medical and welfare facilities to support an aging population, andenvironmental conservation facilities employing energy-saving technologies.

q Energy and Chemicals• Oil and Gas Development• Petroleum Refining• Liquefied Natural Gas (LNG)• Petrochemicals andChemicals• Power Generation, Nuclear
Power, New Energy

q Pharmaceuticals, Environment
and Infrastructure• Pharmaceuticals andResearch Facilities• Medical, Welfare, Social
Facilities• Industrial Plants for NonFerrous Metals, etc.
• Environment andInfrastructure

Taking full advantage of technology andknowledge accumulated through its EPC
business, as well as trust relationships
developed with clients throughout theworld, the JGC Group is also expanding
its investments in businesses such as
desalination and power generation. JGC
also delivers “planning and management
services” designed from the standpoint of an
operator, in fields such as business design,planning, and promotion, as well as resource
development planning and infrastructuredevelopment planning.
q Enterprise Investment andBusiness Operation• Power Generation and New
Energy• Resource Development• Environment and Water• Urban Infrastructure and New
Industrial Development
q Service Business• Planning and Management• Manufacturing and IT

Companies Involved with JGC
Licensers
Process Licensers

Financial Institutions
General Trading
Companies
Insurance Companies

07

JGC CORPORATION

Technology Alliances,
Business Cooperation

Clients

Joint Venture Partners(EPC)

Financing, Investment

Equipment Manufacturing
Materials Supply

Business Coordination
Business Cooperation

Materials and Equipment
Transport

Insurance Coverage

Investment Business
Partners

Construction WorkEngineering
Contractors

Vendors(Manufacturers)
Transportation andLogistics Companies
Subcontractors

Engineering technology contributes significantly to
mitigating environmental impacts
Active on a global scale, the JGC Group considers the mitigation of environmental impacts as
an important duty and works assiduously to implement environmental conservation measures.

Population growth and global issues related to expanding economies

Resource
Depletion

ClimateChangeEffects on the
Air,Waterand SoilRole of the JGC Group
Optimizing customer facilities through proven engineering expertise and active introduction of thelatest technology, while mitigating negative impacts on ecosystems and human health
The JGC Group’s Input Measures

The JGC Group’s Output Measures

Measures to reduce resource consumption,energy use and emission of pollutants

Environmental impact reduction anddetoxification measures

Promoting use of new energy

Promotion of natural gas use and undergroundCO2 sequestration (see P32, 33)

Energy conservation at industrial plants

CDM business

Promotion of enhanced fossil fuels(low-sulfur oil, etc.)

Environmental pollutant removal and detoxification(catalyst use, enzyme use) (see P35)

(see P31)

Human Prosperity in a Healthy Environment

Environmental & Social Report 201208

Corporate GovernanceThe basic policy of JGC’s corporate governance is to continuously increase corporate value
through efforts to enhance management efficiency and transparency. Maintaining the trustof society and all our stakeholders, JGC will develop our business in line with societal needs,
expectations, and norms.

Corporate Governance Framework Outline
JGC has introduced an executive officer system, which clarifies the division of management decision-making and oversightfunctions from executive functions. This has further enhanced management efficiency and strengthened the JGC’s executive
accountability system. The current implementation of the system is described below.
<Operations Steering Committee>• The Operations Steering Committee meets in principle
twice a month for the purpose of deliberating on mattersrelated to the execution of business operations of JGC
and the JGC Group.
• It is headed by the President and consists of corporate
auditors and other members designated by the
President.
<Nominating Committee and Assessment Committee>• These committees meet in principle once a year for the
purpose of strengthening fairness and transparency
regarding the appointment and compensation of
executive personnel.
<Independent Auditor>• The certified public accountants (CPAs) who haveaudited JGC’s accounts are Kazutoshi Isogai and
Yoshihisa Uchida of KPMG AZSA LLC. Four other CPAs
and nine other individuals assist with these audits.

<Board of Directors>• Headed by the Chairman of the Board of Directors, itconsists of 15 directors and five corporate auditors (threeof which are outside corporate auditors) and meets inprinciple twice a month.
<Board of Auditors>• The Board of Auditors consists of five corporate auditors,of which three are outside corporate auditors. It meets inprinciple once a month.
<Director and Executive Officer Committee>• The Director and Executive Officer Committee meetsonce a month in principle for the purposes of sharing
information regarding the status of management policies,and reporting/confirming the status of operations.
• Headed by the Chairman of the Board of Directors, itconsists of directors, executive officers and corporate
auditors.
<Management Strategy Committee>• The Management Strategy Committee meets in principle
once a week for the purposes of deliberating on importantmatters for the management strategy of JGC and the
JGC Group.
• The Chairman Emeritus of the JGC Group heads thiscommittee, which consists of directors, corporate
auditors, and other members.

Corporate Governance System() denotes “Direct” and “Report”

General Meeting of Shareholders
Appoint/Dismiss

Disclose/Explain

Appoint/Dismiss

Appoint/Dismiss

Board of Auditors

Independent Auditor

Audit

Nominating Committee
Assessment Committee
Director and Executive Officer Committee
Management Strategy Committee
Operations Steering Committee

Business Divisions/Sections09

JGC CORPORATION

Audit

Board of Directors
Internal Auditing Office
Legal & Compliance Office
Risk Management Committee
Security Management Section
Subsidiaries and Affiliates

Status of the Internal Control
System and Risk Management
SystemFor its internal control, JGC has established an Internal
Auditing Office that verifies, evaluates, and enhances theefficiency of the internal control systems of JGC and the
JGC Group. The Internal Auditing Office also conducts
individual audits when appropriate. In addition, JGC’s
management and executive accountability system has
been clarified, with Job Authority Regulations set forth todefine the duties and authorities of each position. GroupManagement Regulations instituted for Group companies
are also applied.
JGC has established a Risk Management Committee
as part of a comprehensive risk management systemdesigned to systematically identify risks affecting all
Group companies. The system is focused on corporate
risk, and it manages risks related to management,
disasters, accidents, and society, among others. The Risk
Management Committee meets on an as-needed basis.
A Security Management Section has been establishedas part of crisis management. It gathers and manages
information related to crisis management, provides
training, and handles emergency situations as they arise.

recognizing the importance of establishing a compliancesystem that encompasses Group companies inside andoutside Japan, JGC maintains close coordination with thepersons responsible for compliance in each company, andimproves regulations and shares information to enable thedevelopment and operation of an efficient system for theentire Group.

Disclosing Company Information
JGC discloses information in accordance with thestatutory disclosure system, based on the Japanese
Financial Instruments and Exchange Law. In addition,in accordance with the timely disclosure system atJapanese financial instruments exchanges, JGC promptly
discloses important company information through its
Public Relations & Investor Relations Department. JGC
also proactively discloses corporate information fallingoutside the scope of such regulations and system throughnews organizations and other media, in cases where it
determines that disclosure is desirable.

Compliance
In order to conduct sustainable business development asa member of the international community, JGC believes
that it is essential for each and every employee to conductbusiness in conformity with corporate ethical standards,
as well as to observe local laws and regulations not
only in Japan but also overseas. To this end, JGC has
formulated a Corporate Philosophy for the entire JGCGroup, a document on Principles of Business Conduct,
and a Code of Conduct manual. JGC also educates andtrains employees on various laws and regulations, as partof its efforts to raise employees’ compliance awareness.
JGC recognizes that the bar is being raised in terms ofthe compliance level expected of global corporations. To
respond to the demands of the international community,
we have expanded our compliance division andstrengthened our internal compliance system. In addition,

Environmental & Social Report 201210

Risk Management

Business Continuity Plan (BCP)
JGC does not have production facilities such as
manufacturing plants, and it conducts its business with
employees, a sophisticated ICT infrastructure, and offices.
Consequently, JGC’s Business Continuity Plan (BCP)
consists of three pillars: (1) Early confirmation of employee
safety, (2) securing of ICT infrastructure, and (3) securing
of office safety.
(1) Early confirmation of employee safety
In 2004, in advance of many other companies, JGC
introduced a Safety Confirmation System for its
employees. At present, the scope of the system has been
extended to include not only regular employees, but also
temporary staff and contract employees who work at JGC.
In addition, for a quick confirmation of employee safety,
an emergency liaison network has been established as a
backup in each department.
(2) Securing of ICT infrastructure
JGC was the first company in the Japanese engineering
industry to obtain ISO certification (ISO 27001) in 2006
for its information security management systems.
Server operation and management, user authentication
management, Internet operation and management
including e-mail, management of communications
infrastructure such as LAN/WAN, and other componentsof our IT infrastructure are tested through emergency drills
every year, and they benefit from feedback to constantly
evolve while supporting our business.
(3) Securing of office safety
In 1997, JGC transferred its office to its current location,a new building located in the Minato Mirai district of
Yokohama. Designed to meet earthquake-resistantspecifications exceeding the new earthquake resistancestandards under the revised Building Standards Act, thebuilding suffered almost no damage from the tremorsof the Great East Japan Earthquake. Stockpiles offood and supplies are also kept on hand at all times, toprovide additional support and security for workers at the
Yokohama office in the event of an emergency.

11

JGC CORPORATION

Security Management Section
JGC employees and executives make approximately
3,500 overseas business trips per year, and approximately
300 JGC personnel are stationed overseas at any one
time, in about 20 different countries. Therefore, JGC hasestablished a Security Management Section available ona 24-7 basis to cope immediately with any risks employees
stationed overseas might face, including political turmoil,
war, terrorism, kidnapping, accident, and sickness.
The Security Management Section has two operating
patterns: Crisis Management Operation and Preventive
Operation, as follows.
(1) Crisis Management Operation
A range of measures are implemented based on the risk
level in a given area, according to the Basic Rules for Risk
Management.
* E xamples: business trip cancellation, temporary
evacuation, etc.
(2) Preventive Operation
1) Collection and communication of risk information:issuance of situation-specific reminders and warnings* Methods: company intranet and e-mail messages toindividual employees
2) Personnel stationed overseas and persons on businesstrips: coverage through the Business Trip Management
System3) Safety education for personnel bound for risky areas4) Creation of manuals, guidelines and security
standards

Countries and regions visited by JGC executives and employees on businesstrips up to fiscal 2011

Special Feature

Initiative to be No.1 in Health,
Safety, and the Environment

Pearl GTL
Project(Qatar)Here in Qatar, the largest gas producer in the Middle East, JGC was responsible for the construction of the GTL production unit at thePearl GTL Project, for Qatar Shell GTL Limited. The GTL production unit is one of the plant’s core facilities. Early in the morning, while
the construction site was still in darkness, JGC project management staff were already performing walk-arounds and verifying work
locations for the day. When local workers arrived, JGC project management staff greeted them with “Good morning, let’s complete
another day of safe work today,” and sometimes with handshakes. After all workers had gathered, specific precautions regarding
the day’s work and explanations on ensuring safety were given, and then lively exchanges of opinion began between JGC project
management staff, subcontractor supervisors, and workers.

Such activities implemented in the Pearl GTL Project were part of the measures introduced by JGC to raiseawareness about Health, Safety, and the Environment (HSE) on site.
EPC makes up the core of JGC’s business, but recently, HSE requirements imposed by clients on EPC contractors
have become increasingly sophisticated, with participation strongly demanded not only at site level, but also atmanagement level. In this context, JGC is striving for strict health and safety management in line with its Health and
Safety Basic Policy, aiming to become the “No.1 HSE contractor in the world.” We are also working to extend these
efforts to our subcontractors, as well.

Environmental & Social Report 201212

To be the Top in HSE

Incident- and Injury-Free Record
Achieved for 72.9 Million Hours

management staff took the initiative by communicating withlocal workers to familiarize them with all aspects of safety,
and a mechanism was built to promote communication
between workers. As a result of these efforts, the Pearl GTL
Project achieved the longest IIF record ever set by JGC,
with 72.9 million hours. Clients also strongly commended
JGC for its attitude toward safety in construction work andthe results achieved.

Every day, more than 10,000 workers of various nationalities
and languages are active on a construction site at a given
time. Because risk is inherent in many operations, suchas work in high places and installation of large machinery,
one of the primary objectives of project execution is toensure safety in construction work.
At peak times, the Pearl GTL Project was slated
to mobilize over 50,000 workers from more than 60
countries to the construction site, making safety an issue
more important than ever. As the project leader, JGC had
implemented the Incident- and Injury-Free (IIF) concept totake the lead in raising safety awareness among workers
and promoting safety activities in construction work. Using
two slogans, “Everyone Goes Home Safe” and “Caring for
Each Other,” IIF activities help build a safety culture basedon the principle that safety cannot be coerced, but mustarise from a transformation of individual attitudes, when
everyone makes safety a personal choice.
On the construction site of the Pearl GTL Project,
all project participants worked together to improve andraise safety awareness. Among other efforts, JGC project

JGC’s HSE Activities Expand
Worldwide
A number of global companies dedicated to improving
occupational health and safety in resource development
and construction sites heard about JGC’s efforts for the
Pearl GTL Project. Many management executives fromthese companies came to visit the site and gave JGC
accolades for its initiatives.
Drawing on the experience of the Pearl GTL Project,
JGC introduced IIF activities in other projects, including
the Integrated Gas Development (IGD) Project in Abu
Dhabi and the Donggi-Senoro LNG Project in Indonesia.
The improvement of the IIF record was a tangible result

Efforts in the
Integrated Gas
Development(IGD) Project(U. A. E.)
1

3

2

4

1 To increase safety awareness, all workers shout together “Go Home Safely” during the morning meeting. 2 JGC project management staff walk through the site forproactive communication with workers. 3 , 4 Workers who maintained a high awareness of safety were actively recognized.

13

JGC CORPORATION

Special Featureof the active contribution to safety made by JGC project
management staff, and efforts to deepen communication
between JGC project management staff, area supervisorsof subcontractors, and local workers. JGC is now working
on disseminating best practices to other overseas anddomestic sites, and trying to use them to improve thequality of construction work and accelerate construction
progress.

JGC management, to encourage management to take thelead in addressing HSE matters (see P20).
In addition to overseas construction sites, JGC is also
actively expanding safety measures to prevent traffic
accidents at overseas offices and bases (see P21). JGC
is aiming to spread our safety culture and educational
activities throughout the whole JGC Group, including
the subcontractors we work with. Everyone stationed
at overseas locations, from top management to regular
employees, is working to help achieve our objectiveof becoming a No. 1 HSE contractor, and fulfilling our
responsibility to society.

Aiming to become a No. 1 HSE
Contractor
Every year, JGC holds an HSE Conference hosted by
the President. About 120 persons participate in thisconference, including project managers, the President, andother corporate officers. The purpose of the conference is
to share information on measures for strengthening healthand safety and prevent accidents (see P21). In addition,
HSE moments, five-minute lectures given on HSE mattersby officers, are given at the opening of every meeting of
the Operations Steering Committee, which is attended by
top management, officers, and executives. The purpose of
the HSE moments is to increase HSE awareness among

Efforts in the
Donggi-Senoro
LNG Project(Indonesia)
1

3

2

4

1 Names are displayed in a visible location so that local workers can call each other by their names and build community. 2 We have developed the “Shake Hands
Campaign” to increase mutual consideration among all persons involved with site work. 3 With mutual contact, community-building also takes place during the morning
meeting. 4 JGC project management staff actively talk to workers to raise their awareness of the importance of safety.

Environmental & Social Report 201214

Project
Health, Safety, and Environment Concerns in Project Activities
The JGC Group executes services around the world in business sectors ranging from resource development,
oil, natural gas, and petrochemicals, to chemicals, pharmaceuticals, water treatment, new energy, andthe environment. In all of its projects, the Group constantly strives to fully consider Health, Safety, andEnvironment (HSE) concerns. Consideration for HSE is indispensable not only for plant EPC (engineering,procurement, and construction services), but also for marketing and all stages of project execution, fromfeasibility studies to maintenance, plant decommissioning and projects other than EPC services such as
investment and service businesses. The JGC Group strives to help create a sustainable society by combining
its engineering and project management capabilities with advanced consideration for HSE.

JGC aims to be the No. 1 contractor in HSE.
We aim to faithfully fulfil our social responsibility by considering
HSE in every aspect of our business.
 Aiming to Be a No. 1 HSE Contractor
In recent years, the interest of operators and society in HSE as it relates to the design, construction, and operation of largescale facilities such as energy plants has risen. Requirements on contractors have become more stringent. JGC aims tomaintain the trust of its clients and fulfil corporate social responsibility by becoming a No. 1 HSE contractor.

 Combining Economic Efficiency with HSE at a Higher Dimension
In large-scale plants, factors such as operating stability and ease of maintenance significantly affect economic efficiency
during operation. JGC constantly strives to provide plants that combine economic efficiency with consideration for HSE.
With the understanding and cooperation of our clients, who are also operators, we provide plants that meet our own high
HSE standards as well as legal requirements and the needs of the client.

 Balance of Long-Term and Short-Term Perspectives
Energy and infrastructure facilities in operation around the world, even those which make full use of the latest technology,
all have an impact on the environment over the long term. Parties responsible for the concepts, detail specifications, andconstruction of these facilities must make a prior assessment not only of short-term economic feasibility, but also long-term
environmental impacts. By making sure all parties involved understand the essence of HSE and overall optimization, plants
can be built that will meet with the approval of clients and society. JGC is keenly aware of the need for both short-term andlong-term perspectives and aims to be a company that achieves a good balance between the two.

15

JGC CORPORATIONIn this section, we report on specific examples of the JGC Group’s consideration for theenvironment at every stage of plant construction and other EPC services.

Project

Health, Safety, and Environment
Consideration at Every Stage of EPC (1)The Workflow of the JGC Group’s EPC Services
MarketingFeasibility
Studies

Basic
Planning(FEED)

Basic
Engineering,
Detailed
Engineering

Equipment
and Materials
Procurement

Construction
Planning

ConstructionWork

Maintenance

Facilities
Decommissioning

EPC: Engineering, Procurement, Construction

In Marketing
Achieving balance between generating a stable energy
supply and protecting the natural environment is a criticalissue facing the human race. In recent years, there is a
global trend moving away from using coal and oil as theprimary source of energy and toward expanding the use ofnatural gas, which has a lower environmental impact.
To respond to the global need for an environmentallyfriendly energy supply, the JGC Group is actively
marketing our experience with gasoline and light gasoil
desulfurization facilities, heavy oil upgrading, liquefied
natural gas (LNG) plants, and Integrated Gasification
Combined Cycle (IGCC) facilities. In addition, we areoffering our services to emerging countries in particular,
to help them respond to their expanding needs for energy
and social infrastructure in the face of their rapid economic
growth. We have also been extensively marketing
solar photovoltaic and solar thermal power generation
projects, mainly in the Middle East and North Africa,
and water business projects (sea water desalination,water treatment and wastewater treatment projects), in
response to the increased global demand for water.

In Feasibility Studies
We consider many matters at the feasibility study stage,
including market analysis, potentially useful technology,
systems capabilities, facilities configuration, construction
and operation cost analysis and financial arrangement.
When configuring facilities, we take environmental
consideration into account, along with regional
characteristics and safety. We also consider secondary
environmental impacts, such as whether waste disposal
facilities are available in the region, or whether any
transportation-related problems exist.

In Basic Planning (FEED)Basic engineering specifications of plant construction are
decided at the Front-End Engineering Design (FEED) stage.
At this stage, the JGC Group draws up specifications
reflecting comprehensive consideration of plant
construction costs, safety, operation costs, environmental
impact, and other factors. In these specifications, the
JGC Group makes use of its own technology for energy
conservation and effective energy use.
During FEED, we measure the overall thermal balance ofthe plant and propose energy conservation and efficiency
improvement measures, including “pinch technology” foroptimization of heat recovery and use, aero-derivative gas
turbines for power generation facilities, and combined
cycle power generation. We also work to actively mitigate
damaging environmental impact by reducing CO2
emissions, and considering measures such as waste heatrecovery maximization and flare gas emissions reduction.

LNG plant (Indonesia)

Environmental & Social Report 201216

Health, Safety, and Environment
Consideration at Every Stage of EPC (2)The Workflow of the JGC Group’s EPC Services
MarketingFeasibility
Studies

Basic
Planning(FEED)

Basic
Engineering,
Detailed
Engineering

Equipment
and Materials
Procurement

Construction
Planning

ConstructionWork

Maintenance

Facilities
Decommissioning

EPC: Engineering, Procurement, Construction

In Basic Engineering and Detailed
Engineering
This is an essential stage of the engineering process,during which the basic design concept is optimized basedon consideration of the life cycle of the plant. At this stage,
we analyze realistic, practical measures for minimizing
impacts on health, safety, and the environment that could
arise during construction and operation. These measures
are then reflected in the basic and detailed engineering(equipment specification) decided at this stage.
For example, plants must be designed so that gas
and liquid emissions will meet legal standards, but wealso consider means to further minimize minor emissions.
Every possible source of emissions is identified and thevolume of discharge estimated. This includes not only
stacks, vents etc., but also possible leaks from valves,
flanges, or gases discharged during maintenance
operations. We also review the basic engineering fromthe standpoint of either avoiding or reducing emissions,for example by making the operation of the plant more
efficient or reusing its exhaust heat and wastewater. In
addition, we determine optimal engineering specifications
for every source of emissions by selecting low-emission
valves and other such equipment.

Consideration at Engineering Stages
An Example of Emissions Minimization
To secure cooling water for a new plant in the Middle East,
JGC was conducting a comparative analysis to determine
whether to adopt cooling towers using seawater or open
circulation cooling towers using fresh water. Given thenecessity to introduce seawater desalination equipment
to produce pure water for the plant, JGC decided first to
use this equipment for both cooling water and producing
pure water. Then, taking into consideration the cost andenvironmental load, JGC adopted open circulation cooling
towers using fresh water as coolant for minimum water
intake and wastewater volume. With these choices, wewere able to deliver a highly efficient system to the client.

17

JGC CORPORATIONIn Equipment and Materials
Procurement
The JGC Group also encourages the materials andequipment vendors with whom we do business to adopt
a proactive stance on ensuring safety and environmental
conservation, including the protection of biodiversity.
Though transactions with vendors previously requireda large volume of paper documentation, we have now
switched to digital documents with our in-house JGC
e-Procurement Solution System (J-PLUS). This system isenvironmentally friendly and has improved work efficiency
by reducing the use of paper forms. After purchaseorder finalization, interaction with vendors at the detailed
engineering stage has been computerized using J-PLUS
P for the same purpose, resulting in a virtually paper-freework environment.
For JGC, reinforcing the initiatives taken by vendors to
improve safety practices is not only essential for humansafety, but also for quality control and on-time delivery ofequipment and materials. Consequently, JGC encourages
vendors on a regular basis to implement Safety Moments*
and reinforce traffic safety initiatives.
*Safety Moments refer to the practice of offering safety-related topics atthe opening of business meetings before bringing up the main subject. The
objective is to raise safety awareness among participants by giving them an
opportunity to think about and discuss such topics.

Project

In Construction Planning
Meticulous concern for sustainability at plant construction
sites is essential.
In many countries, construction of new plants requires
submission of an environmental impact assessment(EIA) report for the purpose of understanding what
impacts the construction has on the environment of theconstruction site and minimizing those impacts as muchas possible. The EIA report describes in detail impacts
that construction work will have on the air, water, soil,
flora, fauna, and marine life, and it also details measuresthat can be taken to counter them.
JGC applies environmental management systems
to construction work to ensure that we demonstrateenvironmental consideration in compliance with EIA
reports, emphasizing the following points.
(1) W e practice strict legal compliance and environmental
risk management by identifying environmental laws
and regulations and environmental considerations
that have bearing on construction work.
(2) We endeavor to increase client satisfaction andreinforce communication with stakeholders.
(3) We manage environmental risks and endeavor tominimize the possibility of incidents which may
have a negative impact on the environment by
anticipating, preparing for, and speedily responding
to emergencies.
Before starting construction work, we consider theabove matters and unfailingly perform the following
preliminary work:(1) Identifying environmental impacts of the constructionwork(2) Setting environmental objectives and targets for theconstruction work(3) Preparing a Construction Environmental Management
Plan for the construction work(4) Providing new workers with environmental educationand training
We incorporate the Zero Emissions Initiative 2015, a
JGC Group independent environmental conservation
initiative, into this preliminary work, and thoroughly confirm
environmental conservation measures before starting
construction.

In Construction
Construction work by JGC is preceded by thoroughenvironmental consideration at the planning stage.
Matters laid out in the Construction Environmental
Management Plan include project environmental
policy, the organizations and persons responsible forenvironment-related work, environmental protection
measures, environmental performance monitoring andmeasurement, regular testing of emergency prevention
and relief procedures, monthly reporting, etc. Following thestart of construction, a review of environmental aspects ofthe project (the relationship between construction workand the environment) is conducted to confirm whether theconstruction work differs from the plan. If any differences
are found, the plan is revised to ensure that there areno omissions in environmental consideration in theenvironmental management framework.

Environmental Conservation Initiatives in the
Operations of JGC Energy Development
JGC Energy Development (USA) Inc. (“JEDI”) has been
operating an oil and gas field (Little Lake Field) in the Stateof Louisiana since 2007. In addition to the production ofoil and gas, JEDI also conducts drilling operations.
In its operations, JEDI adheres to the regulations of theFederal Government, Louisiana’s Department of Natural
Resources (DNR), and Department of Environmental
Quality (DEQ). It also implements environmental
conservation initiatives that include environmental
measures based on its own internal regulations.
Because the Little Lake Field is located in a lake
region of Southern Louisiana, where many fishermen
live, the greatest care must be taken to prevent oil leaks
into lakes. The field has been producing oil since the1950s, before JEDI’s acquisition of a working interest,and consequently, production facilities have been aging.
However, since it became an operator in 2007, JEDI has
renewed the existing facilities as it was drilling new wells,
and by taking appropriate measures when necessary, it isdoing its utmost to prevent oil leaks from occurring.
Should any oil pollution occur, arranged response
measures are always available. They include steps tostop the source of pollution, reports to concerned parties,
deployment of a boom (containment) to prevent thepollution from expanding, and mobilization of a pollution
control operator. So far, no major problem or defect has
been pointed out during the annual on-site inspections
carried out by the U.S. Coast Guard.
After the occurrence of oil pollution caused by
Hurricane Katrina in 2008, the U.S. Coast Guard alsocommended JEDI for the preciseness of its swift response,
which prevented the pollution from expanding.

Environmental & Social Report 201218

Health, Safety, and Environment
Consideration at Every Stage of EPC (3)The Workflow of the JGC Group’s EPC Services
MarketingFeasibility
Studies

Basic
Planning(FEED)

Basic
Engineering,
Detailed
Engineering

Equipment
and Materials
Procurement

Construction
Planning

ConstructionWork

Maintenance

Facilities
Decommissioning

EPC: Engineering, Procurement, Construction

In Maintenance
Rigorous HSE risk assessments by specialists are
conducted in the engineering phase for various industrial
plants, and risk mitigation measures determined to benecessary are borne out in the engineering and construction
work. However, over years of plant operation, facilities
age and operating conditions or feedstock composition
may change. In some cases, chemical substances notassessed as risks at the time of construction become
recognized as health risks. In recent years, the necessityof the regular and timely reassessment of HSE risks thatmay potentially increase over the course of long-term plant
operation has long been advocated and plant operators
recognize the need for this as well.
Utilizing its ability to act as a third party with thelatest technology, knowledge, and ability to supply
needed resources to plant operators, the JGC Group
actively supports plant operators in conducting HSE
risk assessments at operating plants, recognizing
the importance of thorough maintenance operations.
Accidents at energy industry facilities obviously carry an
inherent risk of becoming worst-case scenarios. The JGCGroup offers maintenance services with full considerationof these needs and risks.

19

JGC CORPORATION

Considerations for Maintenance
HSE Risk Assessment in Existing Plants
When plants have to undergo successive upgrades
because of their age, environmental and health standards
initially set as requirements when the plants were built
become often difficult to maintain. Aiming at improving
the environmental performance and safety of aging
plants, JGC offers HSE risk assessments and support
services. We conduct surveys during plant operation andidentify problems through HSE-specific examinations.
Taking advantage of the experience we have gained fromnumerous plant construction and maintenance service
contracts, we offer realistic propositions that bringsignificant improvements.

In Facilities Decommissioning
JGC also strives to minimize environmental impacts indismantling work.
For example, in the course of several hospitalconstruction projects and pharmaceutical laboratory
renewal projects, we use construction drawings andsample analysis to confirm the presence or absence ofharmful materials that include asbestos dust, PCBs,
chlorofluorocarbons, mercury, lead, and other substances
before dismantling facilities or existing buildings. We seek
to minimize environmental impact by preventing asbestos
contamination, as well as recovering and decomposing
chlorofluorocarbons etc.
We measure asbestos particle concentration in the air
before, during, and after construction and confirm thatasbestos had not been dispersed outside the work area.
In addition, we work on preventing occupational accidents
and diseases by giving every consideration to the healthand safety of workers. Measures taken include risk
assessments, special health checks, wearing of personal
protective equipment such as fully protective masks, andProjectuse of adequate dust control in working environments.
When dismantling structures, we also strive to minimize
the impact on nearby residents by using low-vibrationand low-noise construction machinery, and constantly
monitoring operations through vibration meters and noise
meters.
In an effort to reduce the processing volume ofindustrial waste generated during decommissioning, we
dismantle each type of waste separately and promotewaste recycling and reuse. In this way, we have achieveda recycling rate of 100% for concrete and asphalt. We use
industrial waste control manifests to ensure appropriate
treatment for industrial waste at every stage up to final
disposal.

Consideration during Engineering andConstruction of Pharmaceutical Plants

Introducing “HSE Moments”
Since September 2010, JGC has introduced “HSE
Moments,” five-minute lectures given by a participant
officer at the opening of meetings of the Operations
Steering Committee, which are attended by officers andexecutives. The purpose is for management to take thelead in addressing HSE matters, in consideration of JGC’s
aim to be a No. 1 HSE contractor.
Various topics were covered in fiscal 2011, including“Safety Risks and Measures during the Final Phase ofConstruction Work,” “Environmental Impact of Shale
Gas Development,” and “Legal Status of Bicycles andPenalties in Case of Accident.” A wide range of topics,
such as issues closely related to work and subjects that
arouse intellectual curiosity, are chosen to heighten HSEawareness at JGC.

Engineering System forEnvironmentally-Conscious Facilities
During the engineering and construction phases for large
pharmaceutical plants, laboratories, or hospitals, one
major issue is to control their huge energy consumption
and mitigate the environmental impact of the facility while
securing its necessary functions. When designing andconstructing buildings, air conditioning and electricalfacilities, JGC uses optimization technology andassessment systems for low-carbon air conditioning
and electrical systems, providing owners (operatingcompanies) with facilities that can be operated in anenvironmentally-conscious manner.
HSE Moments

Management and Control of Hazardous Chemical Substances
In overseas construction sites, we use the management system Control of Substances Hazardous
to Health (COSHH) as part of our HSE efforts. COSHH is a framework of safety practices that
include obtaining in advance the Material Safety Data Sheets (MSDS) of materials to be used,creating registers of harmful substances, and working to prevent the potential hazards posed bythese substances. An MSDS contains safety guidelines for a given chemical substance, including
information on hazards, storage methods, handling methods, which personal protective equipment
should be worn when handling the substance, warnings regarding routine or non-routine use,
recommended first aid measures in case of direct contact, emergency measures in case of soil
contamination after accidental spillage, disposal of waste products after use, and so on. Before any
operation, JGC conducts a special training session based on MSDS data for supervising staff and
all workers involved, to ensure a comprehensive safety management system.

Handling of chemical substances

Hazardous substance storage area

Environmental & Social Report 201220

Occupational Health and Safety
In accordance with our Health and Safety Policy, JGC conducts health and safety management
covering the JGC Group companies and business partners.
Above all, we focus on the prevention of occupational accidents at construction sites.

2.0

HSE Organization

1.95

1.77
1.61

1.0

1.56

1.55

1.5

The HSE Committee deliberates on important safety
matters for the entire Group. It also reports to the
Operations Steering Committee, which is chaired by the
President. Matters decided by the HSE Committee arepromptly acted upon by the various company divisions.
An audit group appointed by the chairman of the HSE
Committee conducts health and safety audits at principal
construction sites in Japan and overseas, and reports theaudit results to the Operations Steering Committee.

1.89

1.04

0.97

Constructionindustry average

1.09

0.85
0.5

0.37

JGC

0.39
0.13

0.21

0.17

0.11

0.18

0.13

0.04 0.07

0
2002

2003

2004

2005

2006

2007

2008

2009

2010

2011 (Year)

Comparison between the Incident Rate at JGC and in the JapaneseConstruction Industry (ILO Method)

HSE Conference Hosted by the
President

Operations Steering Committee(Chaired by the President)
HSE Committee
Quality Assurance,
Safety & Environment Office
Health Management
Center, Human
Resources Dept.,
Corporate Administrative& Financial Affairs Div.

プロジェク
ト本部
Project Division

HSE GroupEngineering
Division
HSE Systems
Department

Construction Department

Project teams

HSE Control Team

Project HSE managers

Each department
and office

HSE Organization

Safety Performance
As a result of continuous implementation of group-wide
health and safety improvement measures, our incident
rate* (ILO method) has remained at around 0.2 for the pastten years, a lower level than the average incident rate of
1.5 for the construction industry as a whole. In addition,
specific annual Total Recordable Injury Rate (TRIR)
targets have been set for domestic and overseas projects,
with monthly status of achievement circulated within thecompany to raise the awareness of safety. The TRIR isa workplace safety indicator that includes the numberof cases of accidents without first aid cases. For fiscal
2011, JGC’s TRIR for domestic projects was 0.60 against
a target of 0.60 or below, and 0.10 for overseas projects
against a target of 0.18 or below.
* The incident rate expresses the occupational accident frequency as
the toll of occupational accidents per million hours worked.

21

JGC CORPORATION

Every year in July, JGC holds an HSE conference hosted
by the President. Approximately 120 corporate officers,
project division heads, project department heads, project
managers, and construction managers participate in theconference. Following the President’s opening speech
and the Zero-Accident Award Ceremony, presentations
are given on a variety of safety themes, and are followed
by group discussions. Through the conference, JGC
seeks to enhance the health and safety awareness ofofficers and employees and demonstrate the leadershipof the top management in HSE matters.

Consideration for Worker Safety
Measures for Traffic Accident Prevention
JGC is strengthening its measures to prevent traffic
accidents at overseas sites and bases. In fiscal 2010, we
introduced a thorough set of guidelines for managementof vehicle operation, including the Seven Golden Rules for
accident prevention, a traffic safety management system,and the In-Vehicle Monitoring System (IVMS). We also
revised the guidelines for the prevention of traffic accidents
overseas. In addition, to continuously monitor the statusof traffic safety measure implementation at overseas sites
and bases, JGC’s management conducts traffic safety
audits and mandates the submission of Monthly Traffic
Safety Reports and semiannual reports.

In this section, we report on the environmental conservation measures we take regarding
our investment projects, and regarding the research and development that supports ourengineering business.

Enterprise Investment Business
The JGC Group, in addition to being involved in the
EPC business, is also involved in numerous investment
projects as a strategic equity partner. Investments
include infrastructure projects (desalination and power
generation), renewable energy projects (solar thermaland solar photovoltaic power generation), resource
development projects (for oil, gas, and other resources),
CDM projects, new energy development projects,
as well as environmental catalyst and fine chemicals
manufacturing projects.
As a general rule, in the enterprise investment business,
we keep the following objectives in mind:
 Development of social infrastructure
 Environmental improvement on a local or global scale Improvement in energy use efficiency
 CO2 reduction and utilization of natural energy
In investment projects, from the feasibility study stage
onward, we abide by the environmental regulations of thecountry or region, as well as the environmental standards
set down by the World Bank Group. In our current
desalination and power generation projects, we are
performing detailed environmental impact assessments,
and are working in compliance with the aforementioned
environmental standards and regulations.
The JGC Group makes investments with the belief thatenvironmentally considerate projects increase corporate
value for the JGC Group and for our business partners.

Project

Environmental Consideration in Investment
Projects and Research & Development

Research and Development
JGC conducts research and development, principally
testing, at our Research and Development Center inOarai, Ibaraki Prefecture.
At the Research and Development Center, we treat
wastewater generated as a by-product of the tests we
conduct by filtering, adsorption, and neutralization, in strict
compliance with voluntary management criteria as well as
relevant laws, ordinances and regulations. We dispose oftreated water in accordance with environmental standards.
In controlled areas where we use radioactive isotopes, we
strive to reduce the amount of test waste liquid and handwashing wastewater generated. We treat these liquids
and wastewater by ion exchange, filtering, adsorption,and concentration, and recycle them within the controlled
area. Under no circumstances do we discharge this wateroutside the controlled area.
Furthermore, we release exhaust from the controlledarea after filtering it through a high-performance HEPA
filter, with continuous monitoring to confirm that it complies
with emission control standards.
We aim to reduce the amount of industrial waste
generated within the Research and Development Center,
and we separate and dispose of waste in compliance withindustrial waste disposal standards.
In addition, to support safety management and help
prevent accidents, the Research and Development
Center’s Safety Committee conducts monthly patrols to
idenify hazards and provide guidance for improvementof safety protocols. Moreover, written plans must be
submitted to the Committee before the beginning of new
research operations. The Committee then deliberates on
the contents of the operations from the standpoint of safety,
to provide sufficient accident prevention measures.

Concentrating Solar Power project (Spain)

Research and Development Center (Oarai, Ibaraki Prefecture)

Environmental & Social Report 201222

Management
Environmental Consideration Based on Environmental Management

The JGC Group develops its business while aiming to create sustainable local communities and protect
the global environment. The specific environmental factors we take into consideration in the process ofthe business development are detailed in the previous section, “Project—Health, Safety, and Environment
Concerns in Project Activities.” JGC also strives to improve the way we address environmental issues throughthe continuous improvement of our Environmental Management Systems (EMS).

To realize our Environmental Policy, we promote the reduction ofenvironmental impacts throughout all business activities.
In addition to quality and cost, clients in recent years have been placing more emphasis on construction safety andenvironmental considerations for facilities in operation or currently under construction. This trend is not limited to JGC’sclients alone, but is developing worldwide. JGC has long emphasized HSE in plant construction. We have established a
HSE Committee chaired by a Director and deployed a company-wide HSE policy while balancing client requirements withsocial and economic needs as an engineering company. Under the leadership of the HSE Committee, several relevant
departments are in charge of overseeing concrete operations through mutual cooperation.
Quality Assurance,
Safety & Environment Office

HSE Systems Department,
Engineering Division

Construction Department,International Project DivisionC onstruction Management Department,
Industrial & Domestic Project Division

Management of andguidance on general HSE
mattersIn charge of HSE inengineering for each project,from basic planning to part ofconstruction planningIn charge of HSE regarding
overseas construction
projects

In charge of HSE regarding
domestic construction
projects

In addition, HSE Committee members from each Division continuously conduct routine HSE activities in offices. In this way,
the JGC Group’s management recognizes that raising the awareness of HSE management within the company is essential,
and takes the lead in implementing it. To document its environmental management systems, JGC has also established an
Environmental Manual in 2003 in accordance with ISO 14001.

23

JGC CORPORATIONIn the context of growing interest in regulations, environmental issues, and sustainable
development, JGC has set forth the following policy regarding its environmental
performance.

Management

The JGC Group’s Environmental
Management

Environmental Policy
JGC, as a professional engineering contractor, is committed to achieving environmental excellence in both its
corporate operations and the services it renders its clients. To meet this commitment, JGC has hereby establishedthe following principles, which shall be applied throughout its operations.
• We shall endeavor to preserve the natural environment through the prevention of pollution and the conservationof energy and natural resources.
• We shall provide our clients with technical solutions that conserve energy and natural resources, and reduce
pollution and other adverse environmental impacts.
• We shall fully comply with both environmental laws and regulations, and the environmental requirements of ourclients.
• We shall reduce the production of waste through measures that emphasize reuse and recycling.
• We shall apply the following specific principles to the execution of our EPC projects:- Engineering Phase:
We shall reduce the adverse environmental impacts of completed plants by minimizing the energy and resource
consumption of each plant, and minimizing emissions and waste production.
- Procurement Phase:
We shall give preference to vendors that adopt environmentally-friendly manufacturing practices.
- Construction Phase:
During construction, we shall endeavor to minimize emissions, adverse impacts on the surrounding environment,
energy and resource consumption, and waste production. Furthermore, we shall ensure that our subcontractors
adopt work practices consistent with this principle.
To ensure the thorough, consistent and effective implementation of this policy throughout our operations, JGC shallestablish, maintain and continually improve a corporate Environmental Management System in conformance with
ISO 14001.

Koichi Kawana
President of JGC Corporation
1st July 2011

Engineering is in Essence an Activity that Contributes to Environmental Conservation
JGC’s engineering business, which involves providing
engineering, procurement, and construction (EPC) services
for oil and natural gas production plants, is intrinsically related
to environmental conservation. Since the 1960’s, JGC has
been grappling with environmental issues in its capacity as
an engineering company. We remain keenly aware that ourbusiness activities in and of themselves must contribute toenvironmental conservation, and we declare that awarenessin the JGC corporate philosophy. We have tested various

innovations aimed at improving environmental efficiency overthe course of the EPC process, and won accolades fromclients for our efforts.
In enterprise investment, a new sector outside of the
EPC business, JGC is expanding further the scope of ouractivities contributing to environmental conservation. We also
continuously work to reduce environmental impacts, including
CO2 emissions, at our construction sites and at our head
office.

Environmental & Social Report 201224

Environmental Objectives, Targets, andAchievement
In accordance with our Environmental Policy, JGC strives for continuous improvement of ourenvironmental management systems by setting environmental objectives and targets, andmeasuring and assessing achievement as shown in the table below.

 Fiscal 2011 Results and Fiscal 2012 Improvement
E: Completely implemented G: Extensively implemented NG: Not yet implemented: Substantial modification of environmental improvement measures: Continuation of environmental improvement measures

Activity objective

Fiscal 2011 results

Assessment

Initiatives for fiscal 2012

Implementation of
the Zero
Emissions Initiative 2015

• CO2 Emissions reduced to
Kyoto Protocol level.
• Soil pollution from leaks
reduced to almost zero.
• Zero industrial waste:
objective achieved.
• Environmental investment

G

Continuing Zero Emissions
Initiative 2015

Environmental targets

In departments that provide
supervision/guidance, setting ofenvironmental targets directly
linked to original business,promoting of linkage with quality
management systems.

G

Continuing promotion ofenvironmental improvements
directly linked to original
businessStrengthening of internal
auditing

Implemented at all overseas sites.
(Currently implemented 16 times
in total.)
Score: 78 points (target: 77 points)

E

Planning for multiple implementation
at all overseas sites(To be implemented 30 times in total.)
Target: 78 points

Initiatives for biodiversity
directly linked to original
business (expansion also atoverseas sites and in Group
companies.)

G

Continuing promotion of
biodiversity initiatives directly
linked to original business

Strengthening initiatives forbiodiversity

Improvement

 Zero Emissions Initiative 2015 Environmental Performance (JGC sites in Japan)
Environmental indicators

Unit

Fiscal 2008

Fiscal 2009

Fiscal 2010

Fiscal 2011

1. Final disposal rate of industrial waste

Result (Target)%

5.3 (11)

3.7 (7)4.1 (4)3.3 (3)

2. Number of leaks

Result (Target)

Leaks

0 (0)

2 (0)

1 (0)

0 (0)

3. Energy-related CO2 emission units

Result (Target) kg-CO2/hour

1.05 (1)0.94 (1)0.75 (1)0.46 (1)Notes:
1. O ffice activities ··· Regarding office activities,
environmental performance has reached a satisfactory
level that indicates saturation. Consequently,
environmental improvements in offices are now
implemented with environmental targets as operation andmaintenance items.
2. P roject execution ··· Divisional environmental targets for
project execution are set for environmental improvementsin the original business and are matched to quality targets.
Consequently, targets cover a broad range of division-25

JGC CORPORATION

specific items, they are loosely linked to the quality
management systems, and they produce steady results.
(see P29)
3. G roup companies ··· Group companies also actively
engaged in activities of the “Zero Emissions Initiative
2015” and obtained significant results in environmental
improvement. However, because these companies
conduct very diverse forms of business, summarizedenvironmental targets are difficult to express, and for thisreason they are not mentioned in this report.

Management

Promotion of the Zero Emissions
Initiative 2015
Since 2008, as part of its corporate social responsibility,
the JGC Group has enacted environmental improvements
through the Zero Emissions Initiative, which details
strategies for reducing the harmful by-products of JGC’s
business activities to zero. In 2011, with new targets
set for the mid- and long-term in consideration for thedevelopment of our environmental business, we haverenewed the initiative under the new title, “Zero Emissions
Initiative 2015.” The Zero Emissions Initiative 2015 covers
the head office, the Research and Development Center,
JGC construction sites in Japan and overseas, JGCGroup companies in Japan and overseas, and domestic
and international sales bases.
• JGC Group Offices
Environmental improvements were promoted in offices byadopting an environmental target of a five-year average
reduction of 1% or more in energy-related CO2 emissions
units.
• JGC Domestic Construction Sites
Environmental improvement targets were quantified inthree areas: final disposal rate, number of leaks, andCO2 emission units. Although the target (3%) for the
final disposal rate was not reached (3.3%), the figure
was improved from last year (4.1%), while targets for thenumber of leaks and CO2 emission units were reached.
• JGC Overseas Construction Sites
Compared with domestic sites, overseas sites havedifferent conditions for each site, which make it challenging
to quantify environmental improvement targets. In thisdifficult context, in an operating environment that tends tolack sufficient recycling mechanisms, efforts were maderegarding the use of valuable resources, rigorous reuse ofmaterials, and prevention, preparation of treatment, andhandling of oil leaks. In addition, internal HSE audits are
conducted at all sites.
• Efforts in Group Companies
Because these companies conduct extremely varied
forms of business, they pursued independent efforts
aiming at zero by-products, based on their respective
business characteristics.

HSE 2015 and Environmental Improvement Activities
After the start of our five-year medium-term management
plan “New Horizon 2015” in 2011, the JGC Group has beenpromoting a new initiative, “HSE 2015,” with the objectiveof becoming a “HSE No. 1 Contractor.”
In accordance with the expansion of our businessfields, and emphasis on Health, Safety, and Environment(HSE) in our policies, we do not limit the environmental
improvement activities of “HSE 2015” to reducing
immediate by-products (wastes, leaks, greenhousegases). Medium- and long-term targets (2020, 2050) arealso set, while “Environmental Efforts through Business
Activities” are promoted.
The JGC Group has now renamed its environmental
improvement activity “Zero Emissions Initiative 2015.”
To grow toward its vision, the JGC Group will accelerate
its activities: Proposing, planning and implementing
projects to respond to the needs of global environment
conservation, and operating businesses and investing inthem when necessary.

Poster for Zero Emissions Initiative 2015

Environmental & Social Report 201226

Environmental Report on Office Activities
JGC works on mitigating the environmental impacts of its office activities in line with the visionof Minato Mirai 21, where our head office is located. Minato Mirai 21 was conceived as a district
developed with consideration for a more efficient use of energy, the needs of a recycling-oriented
society, urban disaster prevention, and environmental friendliness.

Efforts based on Minato Mirai 21
Urban Management
The Queen’s Tower A building, which houses JGC’s
Yokohama World Operations Center, is located in Queen’s
Square Yokohama, a complex in the Minato Mirai 21
district in the Nishi Ward of Yokohama city. This area isbeing developed with consideration for a more efficientuse of energy, the needs of a recycling-oriented society,urban disaster prevention, and environmental friendliness.
Its urban management is based on the “Basic Agreement
on Town Development under Minato Mirai 21.” The efforts
made by JGC to mitigate the environmental impacts of
our office activities are also based on this concept, andthey include reducing electricity consumption, heating
and cooling consumption, CO2 emissions, and waste, andincreasing the recycling rate.

East Japan Earthquake. Concrete measures adopted
to reduce consumption included significant cuts in theuse of fluorescent lighting in office floors and elevators,
reductions in the number of elevators in operation during
daytime, maximized battery use on personal computersused by employees, and replacement of conventionalbulbs by LED bulbs in part of the lighting fixtures.
(Thousand kWh)
10,000
9,475

9,500
9,000

9,383

9,454

8,500
8,000
7,826

7,500
7,000

FY2008FY2009FY2010FY2011

Electricity consumption by JGC Yokohama World Operations Center (FY2008 - FY2011)

A sticker distributed to call for power-saving efforts by all employees in using
personal computers

Efforts to Reduce Heating andCooling Consumption

Minato Mirai 21 District

Efforts to Reduce Electricity
Consumption
In fiscal 2011, JGC significantly reduced its electricity
consumption, decreasing it by 17.4% year on year,
as a result of various activities implemented by the
Queen’s Square Yokohama Management Associationto achieve a 15%-power saving goal. This goal was set
by a ministerial ordinance for the restriction of the use ofelectricity, based on article 27 of the Electricity Business
Act, to respond to power shortages caused by the Great27

JGC CORPORATIONFor cooling and heating, the Minato Mirai 21 District
adopts a District Heating and Cooling System designed
for the efficient use of energy, with centralized production,
provision, and management of heat, cold, and steam fornecessary uses such as cooling, heating, hot water, etc.
The air conditioning of the Queen’s Tower A building,where JGC’s Yokohama World Operations Center islocated, receives all its heating and cooling through thissystem.
In fiscal 2011, the volume of chilled water necessary
for heating and cooling regulation was reduced by
15.3% year on year, as a result of reductions in electricity
consumption and heat generation, stemming from various
energy saving measures implemented in offices. Becauseof low average temperatures during winter, the volume ofsteam necessary to heat the offices increased by 22.9%
year on year. However, the total consumption of chilledwater and steam decreased by 4.0% year on year.

Management(Thousand MJ)
25,00021,59820,00019,15018,53818,28315,00010,000
6,533

6,618

7,102

8,729

Steam

5,000
0

Chilled water

FY2008FY2009FY2010on year. A reduction in overall volume of waste, as wellas the reduced disposal of recycled paper as a result of areduction in volume of paper consumed (volume of paper
purchased), seems to be the main cause.

FY2011

Consumption of chilled water and steam by JGC Yokohama World Operations
Center (FY2008 - FY2011)(Thousand kg)
450
400

389
346

350

341
300

300
250
200

Efforts to Reduce CO2 Emissions

150
100
50

The JGC Yokohama World Operations Center is a Type
1 Designated Energy Management Facility under the
Act on the Rational Use of Energy (Energy Saving Act),and as such, we are legally obligated to report our CO2
emissions. As a result of reductions in electricity, heating,and cooling consumption, CO2 emissions decreased by
13.8% year on year.

FY2008FY2009FY2010FY2011

Volume of waste disposal by JGC Yokohama World Operations Center (FY2008 - FY2011)
(%)
100
80
75.0
60

70.6

70.6

FY2009FY2010

67.5

40

(t)
5,400
5,275

5,200
5,000

0

20

5,198
0

5,064

4,800

FY2008FY2011

Rate of waste recycling by JGC Yokohama World Operations Center (FY2008 - FY2011)

4,600
4,545

4,400
4,200
4,000

FY2008FY2009FY2010FY2011CO2 emissions by JGC Yokohama World Operations Center (FY2008 - FY2011)

Efforts for Resource Saving,
Waste Reduction, and Recycling
In the Minato Mirai 21 District, all companies recycle usedpaper, bottles, and cans under a joint program to reduce
waste and save resources. JGC’s total volume of waste
disposal by JGC decreased by 12.0% year on year. This
was achieved by reducing the volume of paper consumed(volume of paper purchased) and promoting the digitizationof various documents, which resulted in a 13.6% year-onyear decrease in general waste (for incineration) and a
11.3% reduction in waste for recycling. The recycling rateachieved in fiscal 2011 was 67%, a 3.1% decrease year

Environmental & Social Report 201228

Continuous Improvement of Management
Systems
In December 2003, JGC obtained the ISO 14001 certification from Lloyds Register Quality Assurance(LRQA). ISO 14001 is the international standard for environmental management systems.
Since then, the certification has been renewed twice, and the audit required for maintaining it in
fiscal 2011 was completed in September 2011, including at overseas sites.

Environmental Improvement
Activities in Line with
Our BusinessAs environmental improvement activities at JGC’s
Headquarters tended to center on reducing waste, paper,and electricity consumption, our task was to shift thisfocus to activities that fall in line with our actual business.
To accomplish this, with the participation of the headsof all divisions, we reviewed our methods for identifying
opportunities for environmental conservation and our
procedures for target setting. We reached a common
recognition of the following points.
 While we solve environmental issues through our
original business and aim for sustainable development
in society, it is important to link these processes tothe creation of corporate value and improvements incompetitiveness.
 While concerns over environmental issues are risingworldwide, JGC is contributing directly and indirectly
to solutions through its original core business. JGC
recognizes sustainability as an issue it has to addressin this particular business.
 Important points that JGC must consider to develop
itself sustainably are as follows:(1) Implementing adequate operation and maintenanceto prevent environmental problems from arising in
the future.
(2) Continuing to implement improvements to increase
corporate profits, while giving consideration toenvironmental matters.
With this common recognition, JGC continuously makes
a concrete review of the significance of environmental
objectives and targets, and implements environmental

Environmental Management Systems

management activities from the following perspectives.
 Environmental management activities conducted withenvironmental objectives and targets are not separate
from business, they are business.
 The operational policies of divisions and departments are
determined for substantial performance improvementsof the organization and its operations.
 Environmental targets and quality targets can bematched together.
In this way, JGC conducts environmental improvement
activities in line with its original business, by loosely linking
its environmental management systems to its quality
management systems.

Recycling of Construction Waste
JGC aims at minimizing final waste through the rigorous
implementation of the “Zero Emissions Initiative 2015.”
In fiscal 2011, the final disposal rate of domestic
construction projects was 3.3%. On every site, before
contracting disposal to a provider of intermediate waste
treatment services, we confirm its recycling rate with
our own industrial waste surveys. In particular, because
there are significant differences between contractors
regarding the treatment methods and recycling rates of
construction sludge, we carefully compare treatment
methods and costs. Before starting construction, we alsoestablish an adequate waste separation plan based on
the characteristics of waste to be generated. In addition,
through the rigorous separation of wastes in accordancewith this plan, we seek to improve the recycling rate during
construction.

ChairmanPresident
HSE Committee

Division

Division

Quality Assurance, Safety &Environment Office

Engineering

29

JGC CORPORATION

Working GroupEMS Working Group

Project Execution

Office Activities

Procurement

Construction

Technology
The JGC Group’s Environmental Technology
The JGC Group applies the knowledge we have acquired through years of experience with a wide range ofengineering projects to various environmental businesses, including electric power and water projects andClean Development Mechanism (emissions trading) projects. In this section, we report on how the JGC Group
companies have put our environmental technology to use in contributing to environmental conservation
efforts. These efforts include environmental clean-up projects, development of low-environmental-impact
energy resources, and initiatives to realize a low-carbon society.

Combining technology that enriches human standards of livingwith technology that protects the environment, JGC is working
towards the realization of a sustainable society.
In our global plant EPC business, JGC efficiently combines a wide range of elemental engineering technology while
introducing proprietary processes when necessary. Although each kind of industrial plant we construct serves the purposeof improving our standard of living, plants may also have an impact on their surrounding environment in various ways. JGC
has always worked to create the optimal plant both for clients and society, continuously striving to combine advanced
performance with minimization of environmental impact. More sophisticated plant EPC technology can be translated
to more advanced environmental conservation technology. In this way, JGC works to develop and promote diverse
environmental technology that can be transformed into business solutions.
The JGC Group includes subsidiary and affiliate companies that operate in the EPC business, similar to JGC, as wellas companies in the catalyst and fine chemicals business, and companies that provide process licensing, inspection,
maintenance, and consulting services. In this section, we report on the new environmentally-friendly technology andmechanisms being developed by these group companies. Looking ahead to the next generation, the JGC Group strives
actively to ensure that our development and introduction of new technology can contribute to realizing a sustainable society.

Environmental & Social Report 201230

Using JGC’s Environmental Technology to
Solve Difficult Issues

CDM Projects in China
Clean Development Mechanism (CDM) emission-reduction
projects are conducted as cooperative efforts between
developing countries and developed countries. Emission
reduction credits issued for CO2 emission control and/or CO2 absorption enhancement achieved by a given
project are divided among the project participants. Thissystem makes it possible for developed countries toapply emission reductions made in investment recipient
countries toward the achievement of their own CO2emission reduction targets. JGC is participating in several
CDM projects in China.

31.6 Million-ton greenhouse gas reduction
from chlorofluorocarbon substitute gas
recovery and decomposition
JGC, in partnership with Marubeni Corporation, hasbeen executing the Juhua CDM project, the first-everJapan-China CDM project. The objective of the gigantic
project is to acquire Certified Emission Reduction (CER)
credits through the recovery and decomposition of thegreenhouse gas HFC23 at a chlorofluorocarbon substituteproduction plant in China’s Zhejiang Province. The plantis owned by Zhejiang Juhua Co., Ltd. Greenhouse gas
equivalent to 40 million tons of CO2 will be reduced over a
period of seven years. The decomposition facilities began
operation at beginning of August 2006, and greenhousegas reductions of approximately 31.6 million tons wereachieved by May 2012.

Acquisition of CER credits of 420,000 tons
through cement raw material substitution
China is the world’s second-largest consumer of energy,
and also accounts for 40% of the world’s cement output.
However, since many cement production facilities are
outdated, China uses large quantities of limestone (calcium
carbonate), which creates high levels of CO2 emissions.
Many Chinese cement plants also do not effectively utilize
the surplus energy released during cement production.
JGC, in partnership with Elion Jidong Cement Co., Ltd.
of the Inner Mongolia Autonomous Region, is currently
involved in a cement plant CDM project that applies a
new cement production method using a different raw
material as a substitute for limestone. In conventional
cement production, “clinker,” the intermediate product, isproduced using limestone as a raw material. In this project
we use carbide residue (calcium hydroxide), a substanceproduced as a by-product at vinyl chloride production
plants, as a substitute for limestone. In this new method,
the by-product generated through clinker production
is water vapor, not CO2. Therefore, the new method
enables more than 80% reduction in CO2 emissions fromproduction processes, as well as effective utilization ofcarbide residue.
Through this project, JGC acquired CER credits forthe equivalent of approximately 420,000 tons of CO2 byMarch 2012, and plans to continue the project by 2017 toacquire the same of approximately 1,400,000 tons.

Acquisition of CER credits of 50,000 tons
through residual heat power generation at
cement plants
A second CDM project in which JGC is participating
involves using of residual heat from cement plants togenerate electricity that can in turn be used to power theplants themselves. JGC has undertaken the project inpartnership with Huaibei Mining (Group) Cement Co., Ltd.,and the plants are located in China’s Anhui Province. JGC
obtained CER credits for the equivalent of approximately
50,000 tons of CO2 from the project by March 2012, andplans to obtain further credits for approximately 30,000
tons during fiscal 2012.

31

JGC CORPORATION

Elion Jidong Cement Co., Ltd. Cement Plant

Technology

U.N. registration of a project for therecovery and use of coal mine methane andventilation air methane
During coal mine operation, methane gas in the coal bed
is recovered to ensure the safety of the miners. However,much of the recovered coal mine methane (CMM) is emitted
into the atmosphere. In addition, the air in the mine tunnels
also contains methane gas in extremely low concentrations(0.3% to 0.7%). This is known as ventilation air methane(VAM). Since methane gas has 21 times the greenhouse gas
potential of CO2, the recovery and effective use of methanegas can contribute significantly to climate change mitigation
efforts, and can also improve energy conservation. A VAM
recovery project in Anhui Province in China, implemented
by a partnership between JGC and Huaibei Mining (Group)
Co. Ltd., was registered by the United Nations as a CDM
project in October 2009. This project enables emissions
reduction for the equivalent of approximately 45,000 tonsof CO2 per year. In addition, JGC obtained U.N. registrationof another CDM project to recover CMM (annual reductions
equivalent to 75,000 tons of CO2) in September 2010.

Recently, baseload LNG plants have tended to be large
in scale because of investment efficiency considerations,leaving smaller gas fields undeveloped. JGC has
contributed to the construction of more than one-third of
the world’s LNG plants. Making full use of the technology
and knowledge we have accumulated in this field, JGC
has developed a concept for an LNG facility model for
medium- to- small scale gas monetization (production on
the scale of about one million tons LNG per year) that canensure sufficient economic efficiency.
<Keywords of JGC’s design concept>
Low-cost	Standardized design for reduced
engineering cost
Short delivery	Ordering of preselected equipment
and repeated orders of the sameequipment for a reduced delivery time
CompactModularization of plant equipment forminimized construction work on site

Image of completed 1.0 MTPA LNG plant

Coal mine VAM duct

Medium- to Small-Scale LNG Plant
Project
As the demand for energy continues to rise globally,
and the development and production of shale gas
continues to advance, many observers consider thatnatural gas will play an important role as a comparatively
environmentally-friendly energy source to bridge the gap
toward a renewable-energy-based, low-carbon society.
The demand for liquefied natural gas (LNG) is expected to
expand steadily in Japan and emerging countries such as
China and India.

Through the application of this design concept,
JGC contributes to developing projects using as-yet
undeveloped small- to medium-sized gas fields into
successful LNG operations. By using this generic concept
the time from front-end engineering design to the plant
start-up will be shortened to three and a half years, downfrom corresponding six to eight years for conventional
LNG project development.
LNG is also gaining momentum in the U. S. and Europe
as a clean fuel for the internal combustion engines oftrucks and vessels, while new business models are understudy, such as the LNG production of thousands to tensof thousands of tons per year from pipeline gas and its
retail in LNG stations. By further developing its mediumto small-scale LNG plant concept, JGC will support thecreation of this new LNG-based business chain.

Environmental & Social Report 201232

Using JGC’s Environmental Technology to
Solve Difficult Issues

Development of an Efficient
CO2 Separation and Recovery
Technology
JGC has developed the High Pressure Acid-gas CaptureTechnology (HiPACT) process in partnership with BASF
of Germany. HiPACT is a technology for high-pressure
recovery of the CO2 in natural gas and synthesis gas. The
technology makes it possible to greatly reduce the energy
use and cost of CO2 underground storage, and could help
promote widespread use of Carbon Dioxide Capture andStorage (CCS).
After the completion of basic technology pilot testing at
our Research and Development Center, JGC conducteddemonstration testing of CO2 recovery (40,000 tons peryear) using actual natural gas at the carbon dioxide gas
removal facility of INPEX Corporation’s Koshijihara Gas
Plant (Nagaoka City, Niigata Prefecture) in 2010. Now
that testing has confirmed that energy reduction targets
can be achieved, commercial applications are possible.
Because it reduces costs and operational energy, HiPACT
could contribute to the early dissemination of CCS, which
is viewed throughout the world as a promising technology
for achieving large-scale reductions of CO2 emissions.
Thus, this is one way in which JGC is contributing to themitigation of climate change.

Koshijihara Gas Plant of INPEX Corporation

33

JGC CORPORATION

Biomass Power Generation ProjectStarted for Greenhouse Gas
Reduction
Japan has set a target of 25% reduction in greenhousegas emissions by 2020 compared to 1990 levels. Since
the Great East Japan Earthquake, dispersed electricity
generation, especially from renewable energy sources,
has been attracting attention. Because Japan is a heavily
forested country, the efficient use of woody biomasshas been a much studied topic. However, examples ofcommercialization have been limited, because of thechallenge of efficiently collecting woody biomass, whichis thinly spread over wide areas. In this context, theMinistry of the Environment has invited proposals as partof its Regional Projects for Challenge 25 Campaign, withthe objective of expanding new energy projects including
those that use woody biomass. In the Shonai Regionof Yamagata Prefecture, the Ministry has adopted ademonstration project using a Gasification Cogeneration
System using woody biomass proposed by the JGCGroup company Japan NUS Co., Ltd.
This system uses thinning residue from mountain
forests, in addition to orchard pruning residue anddriftwood, as a raw material that is plentiful and easy tocollect efficiently. The raw residues are processed intochipped woods, and used in a demonstration plant togenerate power and heating for nearby welfare facilities.
The demonstration plant supplies heat and power tonearby PVC greenhouses, as well. As such, the system is
expected to be highly economically viable and to generatehigh returns. Plant installation and commissioning werecompleted during the first year, in fiscal 2011, and from thesecond year and onwards, the plant will fully operate to
demonstrate the stability of its raw material supplies and
its CO2 reduction effects, as well as its economic viability
and profitability.

Technology

Efforts as an Operator of the EcoHome Diagnosis Program of the
Ministry of the Environment
The JGC Group company JGC Information Systems Co.,
Ltd. (J-SYS) has been selected as one of the operatorsof the Eco-Home Diagnosis Program implemented by the
Ministry of the Environment in fiscal 2011. The program isan effort to provide a visual understanding and a reductionof CO2 emissions from households. Under this program,
JGC Information Systems implemented various activities
for 150 monitor households, including measurement ofdata on hourly power consumption during the monitoring
period, data collection on the use of water, light and heat,and provision of advice for CO2 emission reduction by an
Energy Saving Consultant.
Households commented that they were able to gaina new perception of power consumption, and that theobjective advice given by the Power Saving Consultant
raised their awareness of CO2 emission reduction.
Data collected during the monitoring period, as well as
reference information including power-saving efforts
by households and specific methods they used, wereshared on regional information websites viewable by the
public. By allowing households to mutually compare theirpower consumption, the initiative helped them renew theirperception of energy saving.

Initiatives for the Next-Generation
Energy and Social System
Demonstration Project of the Ministryof Economy, Trade and Industry
Demonstration tests for the adoption of renewable energy
and smart grids have been conducted recently in many
countries around the world, with an eye toward the buildingof a sustainable society. As part of these experiments, JGC
and JGC Information Systems are participating in a NextGeneration Energy and Social System Demonstration
Project subsidized by the Ministry of Economy, Trade andIndustry (METI) in Yokohama City.
Commercial facilities, as core energy users intheir communities, must lead the push toward energy
efficiency. This project introduces the Building Energy
Management System (BEMS) into commercial buildings.

BEMS is designed to effectively use demonstrationequipment installed in buildings to maximize energy
efficiency. JGC and JGC Information Systems are also
undertaking demonstration project that applies BEMS to
the operation and control of equipment related to daily life,combining low-carbon technologies and products suchas photovoltaic power generation, storage batteries andelectric vehicles.
Because the behavior of the users of facilities is also an
essential element of energy use, the project includes joint
research with the University of Tsukuba on the Humanand Energy Symbiotic System, which is designed to
entice users to adopt energy-saving behaviors voluntarily.
The research applies the Human and Energy Symbiotic
System to the charging behavior of the users of electricvehicles, aiming at demonstrating how the electric load
can be leveled while maintaining convenience for users.
The BEMS stimulates user behavior by displaying optimum
charging times based on the modeling of charging
behaviors and forecasts on power excess or limitation in
the facilities.
While making full use of the results of the demonstration,JGC Information System is working on this project as amember of the JGC Group, to contribute to the realizationof a low-carbon society.

Overview of the Next Generation Energy andSocial System Demonstration Project BEMS
Photovoltaic
power generation

Lighting
systems

Efficient useof power
Efficientuse of heatAir conditioning
systems

Fuel cells
BEMS:Building Energy
Management System

Freezing andrefrigeration
systems

Batterysystems

Electric
vehicles (EV)EV chargers

Environmental & Social Report 201234

Using JGC’s Environmental Technology to
Solve Difficult Issues

Introduction of a Nitrogen Oxides(NOx) Removal Catalyst in Overseas
Markets
In the early 1970’s, JGC Catalysts and Chemicals Ltd., amember of the JGC Group, began to develop catalysts
for the flue gas DeNOx equipment used at power plants
and other facilities. In 1976, it became the first company tooffer a honeycomb structure DeNOx catalyst (NOx removal
catalyst) to the Japanese market. Subsequently, following
the strengthening of NOx regulations in various countries,
JGC Catalysts and Chemicals has offered NOx removal
catalyst manufacturing technology licenses to companies
in the EU, the US, and South Korea. By removing morethan 80% of NOx, which causes photochemical smog
and acid rain, honeycomb structure DeNOx catalysts
contribute to maintaining the safety of ecosystems.
Environmental regulations have been strengthened in
China, and in expectation of a sharp rise in demand for
DeNOx catalysts, JGC Catalyst and Chemicals has beenoffering technology licenses for NOx removal catalyst
manufacturing to Chinese manufacturers. The company
also offers technology licenses for manufacturing the raw
materials of DeNOx catalysts in China. In 2010, it has alsoestablished a sales company in Beijing to distribute thesematerials and started its sales activity. JGC Catalyst andChemicals is working to make NOx removal catalysts
manufactured under its license to come into widespread
use at power plants in China as the country’s standard
in the coming years, thereby broadly contributing to the
curbing of China’s NOx emissions.

Efforts for Commercialization of
Titanium Paste for Dye-SensitizedSolar Cells
Solar cells, which convert solar energy into electricity, arepower generation devices that require no oil, coal, naturalgas, or other fossil fuels. Solar cells are attracting increasing
attention and have been coming into widespread use
in recent years as a solution to energy problems and ameans of protecting the global environment.
Although several types of photovoltaic materials areused for solar cells, dye-sensitized solar cells are being

35

JGC CORPORATION

heralded as the next generation of solar cell technology.
Dye-sensitized solar cells are made using a photovoltaic
material that consists of a thin nanoparticle titanium
dioxide layer uptaking with a special dye on a glass orplastic plate. These solar cells possess the following
special characteristics:
 They offer good reactivity to comparatively faint lightenergy such as artificial light They have high photoelectric conversion efficiency
even with diffused light They require only low costs for manufacturing
equipment because high-vacuum manufacturing
processes are not necessary They come in a variety of colors, and are easy tofabricate.
An international accreditation organization (NREL:
National Renewable Energy Laboratory) has confirmedthat the light harvest efficiency of dye-sensitized solar
cells, and even submodules, outpaces that of amorphoussilicon-based solar cells that are currently in widespreaduse. Dye-sensitized solar cells are expected to come into
widespread use also because of other advantages theyhold over conventional solar cells. For example, they havedemonstrated durability in actual use under temperatures
as high as 80˚C and humidity as high as 85%.
Two factors affect the performance of dye-sensitizedsolar cells. One is the preparation technique used tocontrol the size of nanoparticles to the optimum value of
0.4 microns in nanoparticle titanium dioxide, the material
that creates the light-encapsulating effect. The other factor
is the preparation of a paste forming an evenly thin layerof titanium dioxide particles in exactly the same form as it
is staged by the industrial level. The JGC Group member
JGC Catalysts and Chemical has been developing paste
preparation technology using optimum particle size andhas already refined this technology to an industrial standard
level. JGC Catalysts and Chemical is now improving thetechnology with an eye toward commercialization.

SocialSocial Dimensions of Sustainability

As a professional engineering company, the JGC Group offers its employees the opportunity to improve theirskills, and considers it an essential social responsibility to use these skills to give back to society at large. As
a good corporate citizen, we also aim to build prosperous societies by proactively committing to technology
licensing and human resources cultivation for the next generation.

Social prosperity and the development of our business are
inextricably linked.
Always giving consideration to our coexistence with society,
the JGC Group engages in diverse activities to fulfill our social
responsibility.
Establishing client satisfaction and earning society’s trust, developing our business throughcoexistence with society
The above words are taken from the “Principles of Business Conduct of the JGC Group,” which was formulated to
guide JGC on the path to being an enduring company achieving consistent innovation. Recognizing that our businessdevelopment is inextricably linked with social prosperity, we always give consideration to our coexistence with society.
In fiscal 2011, the JGC Group formulated a new CSR Basic Policy, and systematically organized the social contribution
activities it has implemented so far based on this policy.
The Four Priorities of the Social Contribution Activities
1. Environment: To actively contribute to environmental conservation
2. Education: To support the education of the next generation of qualified professionals
3. Science and Technology: To support science and technology that will form the foundation of sustainable development
4. Community: To contribute to the sustainable development of the areas where we do businessIn this section, we cover specific examples of social contribution activities.

Environmental & Social Report 201236

Personnel Development andCommunication with Employees
As an engineering company, JGC’s sustained growth depends upon its people. Therefore, the
JGC Group focuses on personnel development and communication with its employees.

Personnel Systems

has also attracted attention within the city.

JGC’s fundamental policy for personnel systems is“autonomous development and creation of new value.”
In 2001, we introduced a personnel system to enable
employees to autonomously develop their professional
skills, while sharing the strategic direction of the company,
and offering new value and contributions to customers
and society. Improving our systems when appropriate, we
strive to develop the abilities of our employees.

Personnel Development at JGC
Techno College
In 2001, JGC founded the JGC Techno College as a place
where motivated personnel can voluntarily participate incontinuing education courses. Senior staff members withlong-term technical experience act as instructors at thecollege and organize and run the sessions, to help passon their skills and experiences to younger employees.
In addition to offering conventional in-house technicalcourses, the college holds lectures inviting prominent
experts in various fields from Japan and foreign countries.
In 2011, JGC held ten Techno College lectures andattracted more than 700 officers and employees.

Educating Future Engineers (Piping
School)Expecting a shortage of technicians skilled in plant piping
layout, the JGC Group company JGC Plant Solutions
Co., Ltd. has opened a Piping School in April 2007 totrain students for this field. Located in Morioka, Iwate
Prefecture, the school hires high school graduates fromthe area with an interest in mathematics and design. Afterone year of intensive training in basic design techniques
at the school, they refine their skills through on-the-job
training (OJT) in the Yokohama area. Forty-eight students
that graduated by 2012 are already accumulating
experience through this OJT system. The Morioka-based
company, Plant Engineering Morioka Co., Ltd., is taking
charge of plant designing in some portions of projects inwhich the JGC Group is working on worldwide, and thisinitiative that provides young people with the stable job

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JGC CORPORATION

Practical training using drafters

JGC Family Day (Bring-Your-ChildTo-Work Day)
On August 3, 2011 JGC held JGC Family Day, to allow
children from primary school grades four through six toobserve their parents’ workplaces. Fourteen children of
JGC employees participated in the event, the purpose ofwhich is to develop children’s social awareness and foster
the concept of work and occupation. They exchanged
handmade business cards with Chairman and employees,
in addition to observing work and meetings in the actual
company office. We hold this event every year to raise
employee awareness of the importance of a healthy worklife balance.

Employees and children participating in JGC Family Day

Corporate Social Responsibility

Sales of Bread Hand-Made in
Facilities for the DisabledSocialThe JGC Group is keenly aware of its social responsibility as a corporate citizen. We seeka harmonious coexistence with society and aspire to contribute to local communities andsociety at large through our business activities.

Participation in the Post-Tsunami
Monitoring Project

In January 2012, JGC has started using lunchtime
to support sales of bread baked by physically ordevelopmentally challenged people at facilities for thedisabled in Yokohama City. The initiative is meant tosupport the local community near JGC’s head office,and to provide employees with the opportunity to makea social contribution in a simple way. Aimed at helping
Yokohama residents with disabilities participate in society,this project became possible through cooperation
between Yokohama City, which supports finding sales
opportunities and channels of products made in thesefacilities, and JGC, which was considering contribution
activities to benefit the area.
Vendors were selected through food tasting sessions
and test sales organized by members of related divisions of
JGC, and six facilities were eventually chosen for vending
on a day-by-day rotating basis (including two facilities onalternating weeks). The bread is moderately priced andtastes good, and is very popular with JGC staff. The bread
is sold in the Bento lunchbox vending space, at the sixth
floor of JGC Yokohama World Operations Center. Workers
from other nearby offices are also welcome to purchaselunches here, as the space is open to the public (fromshortly before noon, for about one hour, on business days
only).

JGC has begun cooperating with NGOs to offer more
efficient contributions in line with its four pillars of social
responsibility: Environment, Education, Science andTechnology, and Community. As part of these activities,
the NGO Earthwatch Japan, of which JGC is a corporate
partner, has begun its Post-Tsunami Monitoring Project
to take care of the natural environment and nurture
biodiversity in the Tohoku area, which suffered significant
damage from the Great East Japan Earthquake of March
2011.
This project is undertaken as a cooperation between auniversity (Tohoku University), NPOs, private companies,and citizens, to monitor ecosystems in areas damaged by
the tsunami. The objective is to sustainably rehabilitate
these areas, focusing on the ecosystems that will support
the local agriculture, forestry and fisheries industries inyears to come.
In November 2011, the first participant from JGC
took part in a survey carried out in the rice paddies of
Sabusawa Island, Shiogama City. The survey monitored
the ecosystem of rice paddies, which serve as habitat
for aquatic insects, plants, amphibians, and fish. Waterand soil quality were also surveyed, restoration work was
conducted, including removal of debris and constructionof borders around rice paddies.

The vending area is crowded with employees

Participants working on project surveys

Environmental & Social Report 201238

Corporate Social Responsibility

Participation in the Ecosystem
Survey Project
JGC has invited its employees to participate as volunteers
in survey projects on domestic ecosystems organized by
the NGO Earthwatch Japan. As a result, in fiscal 2011,
one employee took part in the Ecological Survey of the
Nagoya Daruma Pond Frog of Rice Paddies of Takashima
City, Shiga Prefecture, and another employee took partin the Ecological and Conservation Survey of Indigenous
Japanese Pond Turtles.
Such surveys are conducted to help the conservationof endangered organisms by clarifying the ecologicalconditions under which they live. As research assistants,
the volunteers joined field work activities carried out by
researchers and collected valuable data. JGC intends tocontinue offering its cooperation to survey projects.

Survey participants

Sponsorship of the “Fureai
Concert—Fostering the Heart” in
Yokohama City
Since fiscal 2011, JGC has been a sponsor of the Fureai
Concert Series “Fostering the Heart” organized by the
Board of Education of Yokohama City. This initiative
pertains to Education and Community, two of the four
major CSR priorities set forth by JGC.
The Fureai Concert Series “Fostering the Heart”
has been organized since fiscal 1998 for upper grade
pupils of municipal elementary schools, and elementary
departments of schools for the blind, deaf, or physically or
mentally handicapped. The concert is meant to cultivate

39

JGC CORPORATION

and enrich the students’ sensibilities through music
appreciation. The concert series is attended by about
33,200 pupils in total (approximately 3,000 pupils per
day.)
Every year, the concert series includes performancesby the Kanagawa Philharmonic Orchestra, as well asorgan performances. The conductor, who also acts as themaster of ceremony, provides the audience with playful,easy-to-understand explanations of the pieces performed,
allowing not only children, but also parents and other adultparticipants to develop their cultural knowledge while
enjoying the music.

Donation of Used Stamps andForeign CoinsAt JGC, permanent donation boxes have been installed
to collect foreign coins that employees have left overfrom business trips abroad, as well as used stamps frompostal items employees have received. This is intended
as a social contribution activity that employees canparticipate in during the course of day-to-day work. Theseboxes have been installed in the social contribution areaof the reception lobby to raise interest in such activities
among employees and visitors. Many JGC employees
regularly travel abroad for business, and consequently,
the coin donation box often fills up within a single week.
Collected coins are donated to UNICEF, and stamps ofvarious designs from all over the world are donated to
the Make-A-Wish Foundation, an international volunteer
organization, to help its support activities for children whofight serious illnesses.

Donation boxes for used stamps and foreign coins in their dedicated spaceSocialSupport to NPO Activities throughDonation of Used Books, CDs andDVDs (Thank You Books)
Since July 2012, JGC has been participating in a donation
program called Thank You Books, which is organized by
the Shinrai Zaidan foundation. This is intended as anothersocial contribution activity that employees can participate
in during the course of day-to-day work. Through thisprogram, used books, magazines, CDs, DVDs, and gamesoftware are sent to the company Value-Books, whichpurchases them, with payments donated to designatedorganizations via the Shinrai Zaidan foundation. In thisway, used books and CDs collected from JGC employees
help support the Post-Tsunami Monitoring Project run by
the NGO Earthwatch Japan, to help restore the Tohoku
area.

Traffic Safety Training Sessions OnSite in Indonesia
In January 2011, JGC was awarded the contract for the
Donggi-Senoro LNG Project, located in Indonesia. In
Indonesia, people regularly drive without a proper license,and children under the legal driving age ride motorbikes athigh speeds with little regard for safety. The low awarenessof traffic safety became a deep cause for concern among
the local police. In 2011, the number of traffic accidents
around the construction site was approximately twicethat of 2010, and 60% of them involved motorbike drivers
aged between 17 and 21. In addition, risks were increasing
because of the extra traffic from vehicles related to theconstruction site.
To address the problem, JGC organized training
sessions on traffic safety in cooperation with the local
police. Training sessions have been held four times since
January 2012, and have been attended by more than
1,000 children from local schools. During the sessions,
JGC project leaders emphasized the importance of safe
school commuting for everyone, based on the Incidentand Injury-Free (IIF) concept currently in operation at theconstruction site. The sessions also included hands-on
safety training conducted by police officers.
JGC considers support of the local community to bean essential element of the plant construction project.

As such, JGC will continue offering new contributions tomeet local needs.

Forest Conservation in the
Watershed Forests of Kanagawa
Prefecture
In August 2008, to commemorate its 80th anniversary,
JGC became a watershed forest partner in Kanagawa
Prefecture’s Water Source Conservation Project, andlaunched an ongoing environmental conservation projectin the forest. Through the project, employees of the JGCGroup assist with watershed forest conservation while
deepening their understanding of the role of watershed
forests and the importance of coexisting with nature.
Activities are carried out once a month, and in fiscal 2011,
approximately 100 employees participated in various
events, including forest walking tours and aquatic wildlife
observation tours, which gave them the opportunity toenjoy contact with nature in different seasons.
In October 2011, a large bus was hired for an event
attended by about 50 persons, including the President,
as well as various employees and their families. During
the trip to the forest, participants received explanations on
the meaning of watershed forest conservation, and once
on the site, with the guidance of forest instructors, they
were divided into three groups—Tree Thinning, Craftwork,
and Forest Walking Tour—, learning about the importanceof forest conservation while enjoying exchanges bridging
nationality and age.

Many employees participated along with President Kawana

Environmental & Social Report 201240

Corporate Social Responsibility

KAUST Industry-University
Collaboration Program
In Saudi Arabia, JGC is a member company of the KAUST
Industrial Collaboration Program (KICP), an industrial
collaboration program at King Abdullah University of
Science & Technology (KAUST), which opened in 2009.
KAUST is a graduate-studies level university establishedby an initiative of King Abdullah to serve as a researchbase in advanced technology fields including resource
development, energy, water and environmental studies,
life sciences, catalyst and nanotechnology, and computerscience. JGC offers the technology and know-how it has
accumulated over years of experience in the field of plant
construction, to support the creation of next-generation
technology and training of personnel that will contributeto both Saudi Arabia and the international community. In
May 2011, JGC members attended the first presentationof a research report at KAUST, and exchanged opinionswith researchers.

JGC Philippines’ Sustainable Social
Contribution Program
JGC Philippines, Inc., JGC’s subsidiary in the Philippines,
is involved in several social contribution programs focusing
on local communities and the environment. In fiscal 2011,
33 employees joined “Run for Japan,” a charity event
organized to help the victims of the Great East Japan
Earthquake. A “Pray for Japan” booth was installed on thesite of the race, and relief money raised from participants
and spectators was sent to the Japanese Red Cross
Society, to assist disaster victims and restore housing andbasic services.
To support educational institutions, JGC Philippines
also donated educational material, including ten computerswith tables, chairs, and textbooks to a public elementary
school of Muntinlupa City, where JGC Philippines has an
office. Located in an area with many low-income residents,
the school had requested assistance from privatecompanies to cope with a chronic budget problem thatprevents it from procuring the computers and educational
material necessary for the curriculum.

41

JGC CORPORATIONJGC Philippines and its employees participate insocial improvement initiatives as one and as a memberof the local community. The company engages in social
contribution activities with the aspiration to always be abetter corporate citizen.

Ceremony for the presentation of educational material to the school

Christmas Cards from JGC Gulf toChildren in Quake-Hit Miyagi
In December 2011, children of the employees of JGC Gulf
International Co., Ltd. (“JGC Gulf”), the Saudi-Arabiansubsidiary of JGC, sent Christmas cards to children inareas of Miyagi Prefecture that were stricken by the Great
East Japan Earthquake. This project began with a call from
Takuo Tanaka, professor emeritus at Chuo University, who
proposed to send Christmas cards to warm the hearts ofchildren of disaster-stricken areas and give them courage.
Professor Tanaka thought that messages received fromfar countries would nurture the hopes of children for the
future and their openness to the world.
JGC Gulf cooperated with the project through theJapanese Association of Saudi Arabia and the Embassyof Japan in Saudi Arabia. Containing warm messages
from the children of JGC Gulf employees, the cards weresent to the venue of a piano recital to which local children,and volunteers who helped with restoration, were invited.
After the concert, the cards were bound in booklets anddonated to local libraries in Miyagi Prefecture.

SocialJGC-S Scholarship Foundation:
Support for the Next Generation

Christmas cards sent by the children of JGC Gulf employees

Nikki-Universal Organizes
Internships for High SchoolStudents
Since 2005, the Hiratsuka Plant/Research Center(Hiratsuka City, Kanagawa Prefecture) of Nikki-Universal
Co., Ltd., a JGC Group company, has been offeringinternships for students from the Hiratsuka High Schoolof Science & Technology, accepting two students
every summer vacation. The purpose of the internshipprogram is to give high school students a taste of onsite work, to galvanize their enthusiasm for careers inscience and technology. During the three-day training
program, students gain hands-on experience withcatalyst performance tests and analysis at the ResearchCenter, and measurement and processing operations ofenvironmental catalysts for office equipment at the Plant.

Through the JGC-S Scholarship Foundation, JGC
contributes to the cultivation of scientists and theadvancement of science and technology in Japan andoverseas. The foundation was established in March 1968
with an endowment by JGC founder Masao Saneyoshi.
Its principal undertakings include provision of educationalloans to Japanese university and graduate students
majoring in scientific and technical fields, grants toforeign students studying in Japan, and research funding
assistance for young researchers.
As of fiscal 2011, the foundation has provided
assistance to a total of 18,951 persons, througheducational loans to 13,570 students and educational
grants to 5,831 students (494 Japanese and 4,887
foreigners studying in Japan at their own expense).
The foundation has also provided research funding
assistance to a total of 2,029 young researchers.
Annual disbursements have reached 362 million and
450 thousand yen. The foundation is supporting
students affected by the Great East Japan Earthquakeby extending to fiscal 2012 the special framework
established in fiscal 2011 after the disaster, and byadding three universities to the four already designatedin disaster-stricken areas.

Social Welfare Grants by the JGCSocial Welfare Foundation

A student learns from an employee how to use an instrument

The JGC Social Welfare Foundation develops andprovides welfare equipment for persons with physicaldisabilities, as well as providing funding for support
groups and volunteer organizations for senior citizens andpersons with disabilities in Kanagawa Prefecture. Since
its establishment in March 1994, the foundation has made550 contributions to support groups, 356 contributions
to volunteer organizations, and eight contributions toother groups. In fiscal 2011, the foundation made 37
contributions to support groups, 21 contributions tovolunteer organizations, and four contributions to othergroups.

Environmental & Social Report 201242

2-3-1 Minato Mirai, Nishi-ku,
Yokohama 220-6001, Japan
Tel: 81-45-682-1111 Fax: 81-45-682-1112
www.jgc.co.jp