Editorial Policy
JGC Group engages in environmental preservation activities in accordance with its Environmental Policy (see P3). To
report on the nature and performance of these environmental preservation initiatives, in fiscal 2006, we issued a reporton the JGC website titled, “Working for Societal Development and Global Environmental Preservation”. This report wasalso available in a PDF format. Since fiscal 2007, we have reviewed the details of these activities every year and issued
our annual Environmental Report. We also continue to update the environment-related content on the JGC website,
including uploading this yearly report.

Principal content for fiscal 2009.
I JGC Group’s Environmental Technologies
In this section, we introduce several environment-related
businesses in which JGC is involved.
II Environmental Consideration in Business Activities
Since JGC is an engineering company, our business is by nature
closely related to environmental preservation. In this section, we
describe how JGC demonstrates consideration for theenvironment at each stage of project execution.
III Environment Protection Framework Based on
Environmental Management Systems
As JGC is an engineering company which has no production
facilities of its own, we report on the targets and results of theenvironmental preservation efforts at our construction sites inJapan and overseas.
IV Social Dimensions of Sustainability
In this section, we report on occupational health, safety, andcontributions to communities in countries around the world.

Scope of Reporting
The content of this report includes information concerning theactivities of JGC Corporation (“JGC”) and of 16 domestic and 18
overseas Group companies.
Section III at left: This section covers JGC Group’s construction
sites and offices in Japan and overseas and plants in Japan.
Note: Matters other than those specifically attributed to JGC orGroup companies refer to activities of JGC Group.
Reporting Period
This report is compiled principally on the basis of data for fiscal
2009 (from April 1, 2009 to March 31, 2010). Important matters,
and those regarded as highly significant, concerning activities
outside the reporting period are also reported.
Publication Date
August 2010
Next Scheduled Publication Date
August 2011
Publisher
Public Relations & Investor Relations Department/
Quality Assurance, Safety & Environment Office
Contact telephone number: +81-45-682-8026
JGC website URL: http://www.jgc.co.jp

Contents
Message from the CEO………………………………………02
JGC Group’s Environmental Management…………………03
JGC Group’ s Businesses, Society, and the Environment… 04
The Role of JGC Group’ s Engineering in Mitigating
Environmental Impacts on Society……………………………05
Fiscal 2009 Highlights
New Approaches to Solving Electric Power, Water, andEnvironmental Problems……… … …………………………07
Our Commitment
Executive Vice President Interview…………………………08
Major Electricity, Water, and Environment-Related Projects
Currently in Progress…………………………………………09
I JGC Group’s Environmental Technologies… … … … … 13
Underground CO2 Sequestration……………………………14
CDM Projects in China………………………………………15
Environmental Activities of Group Companies………………16

II Environmental Consideration in Business Activities……19
Our Commitment
Interview with the Senior General Manager, Quality
Assurance, Safety & Environment Office……………………20
Environmental Consideration at Every Stage of EPC… ……21
Environmental Consideration in Investment Projects andResearch & Development…………………………… ………24
III Environment Protection Framework Based on
Environmental Management Systems …………………25
Our Commitment
Interview with the Safety Management Group Leader,
Construction Management Dept.……………………………26
Environmental Objectives, Targets, and Achievement………27
JGC Environmental Indicators……… … ……………………28
Review of Environmental Management Systems (EMS):
Objective and Target Setting…………………………………29
Biodiversity Initiatives…………………………………………29
IV Social Dimensions of Sustainability…… … … …………31
Occupational Health and Safety……………………… …… 32
Personnel Development and Communication with Employees…32
Corporate Social Responsibility………………………………33

01 JGC Corporation

Message from the CEOContributing to a Sustainable Society
through the Engineering Business
Keisuke Takeuchi

Chairman and Chief Executive Officer JGC Corporation

The JGC Group contributes to stabilization of the world’s energy supply through its core engineeringbusiness, which includes the design and construction of oil and natural gas energy production plants.
Recognizing that engineering enterprises can play a key role in making energy cleaner, rendering

plants more energy-efficient, and detoxifying wastes, we have developed the corporate philosophy,“As a global company with engineering as our core business, we aim for sustainable development
while contributing to global economic prosperity and working to ensure environmental preservation.”With this philosophy as its cornerstone, JGC engages itself in a variety of business activities andgeographical areas.

In this Environment Report for fiscal 2009, we detail our recent achievements in electric power, water,and environment-related projects, as well as the future directions we will pursue in such projects. We
also highlight examples of JGC Group involvement in environment-related research anddevelopment, production business, construction services, and consulting activities. Moreover, we

provide specific examples of our consideration given to the environment through all business phases,from sales to design work, materials procurement, construction projects, and R&D.

I would like to talk here about the JGC Group’s contributions to environmental conservation. The
Group is continually monitoring the burden placed on the environment by our business operations,and we are tirelessly striving to mitigate our environmental impact. In this year’s Report, we provide

environmental impact data from our overseas construction sites, and inform on labor safety indicators

as part of our effort to fulfill our social responsibilities. In fiscal 2008, the JGC Group implemented
the “Zero-Emissions Initiative” with the aim of eliminating harmful by-products generated by our

projects. We set targets for curbing CO2 emissions and increasing industrial waste recycling, focusing

on domestic sites in particular. We are working vigorously to reduce environmental loads.

We face many social and environmental issues. Geopolitical matters and international disputes
cannot be solved through the efforts of private companies. However, we can contribute in areas

directly related to the day-to-day living environment-energy security, water supply, and electricity, toname a few. With our accumulated engineering and project management experience, the JGC Groupcan help improve the quality of global living. We do greatly appreciate your support as we step up
our efforts to realize a sustainable society.

Environment Report 201002

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
established the following principles, which shall be applied throughout its operations.
・We shall endeavor to preserve the natural environment through the prevention of pollution and theconservation of 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 ofour clients.
・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 shallensure 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
shall establish, maintain and continually improve a corporate Environmental Management System in
conformance with ISO 14001.

Masahiko Yaegashi
President and Chief Operating Officer,
JGC Corporation
1st July 2009Engineering is Essentially an Activity that Contributes to Environmental Preservation.
JGC’s engineering business, which involves the provision of EPC(engineering, procurement, and construction) services for oil andnatural gas production plants, is intrinsically related toenvironmental preservation. Since the 1960’s, JGC has been
grappling with environmental issues in its capacity as anengineering company. We remain keenly aware that our businessactivities in and of themselves must contribute to environmental
preservation, and we declare that awareness in the JGC
corporate philosophy.
In the enterprise investment business, a new business sector
for JGC, we have further expanded the scope of ourenvironmental preservation activities. For instance, we havelaunched biofuel production, Clean Development Mechanism

03 JGC Corporation(CDM, a form of emissions trading), and lake water
purification/quality improvement projects. Supplying clients with
low-environment-impact plants is another important element ofenvironmental management at JGC. Over the course of the EPC
process, we have tested various devices and improvements
aimed at environmental efficiency, and won accolades fromclients for our efforts.
Environmental impact reduction at construction sites and thehome office are the foundation supporting JGC’s environmental
management. Each year, we achieve significant results fromwaste reduction and recycling efforts at construction sites, andCO2 reduction at the home office.

Relationships Between JGC Group’s Businesses,
Society, and the Environment
JGC Group provides engineering services to private-sector corporations, government organizations, and other clientsaround the world. Needless to say, this business is closely related to the efficient use of energy and global
environmental preservation. We also engage in business closely tied to society and the environment in a number offields other than engineering, such as enterprise investment in the environment and energy sectors.

Business Sector
Engineering, Procurement, and Construction (EPC) Services

Oil and gas
development

Petroleumrefining

Nuclearpower

Energy andChemicals

LNG

Pharmaceuticals
and researchfacilities
Medical,welfare,social, andcommercial
facilities

Power
generation
andnew energy

Living andGeneralProduction

Environment
andinfrastructure

Industrial
plantsfor non-ferrous
metals, etc.

ChemicalsEnterprise Investment
Oil and gas
development

CDM(emissions
trading)

Investment
Business

New energy,
includingbiomass

Desalinationand power
generation

Companies Involved with JGC
Licensers
Process licensers

Financial institutions

Generaltrading companies

Insurance companies

Overseas engineering
companies

Clients

Technology alliances, business cooperation

Joint venture partners

Financing, investment

Equipment manufacturing
Materials supply

Business coordination
Business cooperation

Insurance coverage

JGC

Materials andequipment transport

Construction work

Vendors(manufacturers)

Transportation andlogistics companies

Subcontractors

Environment Report 201004

The Role of JGC Group's Engineeringin Mitigating Environmental Impacts on Society
When supporting the implementation of clients’ capital investment projects,
JGC Group takes into account more than technical and economic considerations.
We consider the reduction of environmental impacts to be an important duty to future generations.
We work diligently towards environmental load reduction throughout our business.
JGC Group seeks to optimize client facilities through the active introduction of the latest engineering technologies.
We are also working for prosperity and environmental load-reduction through other means,including the underground sequestration of CO2.

Increasing Impact of
Economie Expansion

Resource consumption

Fossil fuel use, greenhouse gas emissions

Resource depletion

Ecosystem impact

JGC Group’s Output
Measures

Role ofJGC Group

Environmental impact
reduction anddetoxification measuresJGC Group’s Input
Measures
Measures to reduce
consumption,use, and emissions

05 JGC Corporation

Global warming

The Threat to
Human Survival

Environmental pollutant
emissions

Effects on the air, water, and soil

Health impairment

Promotion of natural gas use
Underground CO2 sequestration

CDM business

Pollutant removal and detoxification(NOx removed catalyst use,water purification,sludge melting, etc.)

Promotion of new energy use(DME, biomass, etc.)

Energy conservation
at plants

Promotion ofadvanced fossil fuels(low sulfur oil, etc.)(see P14, 16)(see P12, 16, 17, 18)(see P15)(see P18)

Environment Report 201006

Fiscal 2009 Highlights

New Approaches to Solving Electric Power,
Water, and Environmental Problems
JGC: An Investor with Thorough Knowledge of Engineering and the Environment
JGC has begun to participate in electric power and water projects around the world.
Over the years, JGC has contributed to the development of the countries in which we do businessthrough construction projects for a wide range of fields. These projects include numerous oil
refineries, natural gas processing plants, chemical plants, nuclear power plants, andpharmaceuticals facilities. However, in recent years, the needs of our clients and the countries inwhich we do business have been diversifying. Problems are emerging that cannot be solved bymeans of plant construction alone.
In response to this situation, JGC established the “Scenario 2010” medium-term management plan,
to cover the five-year period from fiscal 2006. We have expanded the range of fields in which we canapply our project management capabilities, and we have launched initiatives to support economic
development and living standards in the countries where we operate, not only through plant
construction, but also through the development of a wide variety of public infrastructure.
In recent years, problems in developing countries include energy and water security andenvironmental pollution. As a consequence of global climate change and rapid population increases,
water shortages have become a critical problem. According to a 2009 United Nations study, morethan one billion people around the world have trouble obtaining safe water. To address this global
problem, JGC participates not as a plant construction contractor, but as an investor, promoting
electricity and water projects. In this section, we provide an overview of new projects JGC is set toundertake, and report on the future directions of these projects.

07 JGC Corporation

Our Commitment

As one of a handful of companies combining a thorough knowledgeof energy and the environment, JGC will continue to involve itself
in new environmental businesses.

Koichi Kawana

Executive Vice President

Venturing beyond the EPC business to meet diverse needs
JGC has long demonstrated its engineering capabilities through the plant engineering,procurement and construction (EPC) business, focusing on the energy and hydrocarbon
market sectors. In recent years, however, we have come to realize that, given industrial
advancement and rising standards of living in the countries in which we operate, wecannot provide the facilities and services these countries truly require by simply
continuing conventional plant construction.
In the “Scenario 2010” five-year management plan we implemented in fiscal 2006,
we made it our objective to actively apply our engineering capabilities not only to plant
construction but also to resource development, electric power, water, andenvironment-related projects. Now we participate in projects not just as an EPC
contractor, but also as an investor and operator.
Collaborating with partners on global water development
In accordance with Scenario 2010, JGC is engaging in new business, including electric
power generation, desalination, water purification and quality improvement, as
described in this report. In desalination and power generation projects, we apply ourengineering knowledge by contributing to the stable operation of facilities. Through ourcollaboration with Hyflux Ltd. (see P9) and our management participation in Ebara
Engineering Service Co., Ltd. (see P10), our goal is to actively engage in the waterbusiness around the world. Furthermore, with the water purification project at Lake
Taihu in China (see P11), and our CDM (emissions trading) projects, JGC’s engineeringand management capabilities are contributing to local environmental protection
measures.
Speedy, efficient project development for strengthening environmental
business
JGC’s strength lies in our ability to rapidly detect market needs, integrate effective
technologies domestically and internationally, and effectively organize projects inoverseas markets, especially developing countries. Our thorough familiarity with legal
systems and business practices that differ between countries will allow us to take fulladvantage of our advanced engineering capabilities in water and environment-related
businesses around the world.
In addition to the water business, we have launched projects and businesses that
contribute to environmental preservation, including a bio-ethanol project in thePhilippines and underground CO2 sequestration projects for greenhouse gas emissions
reduction. As one of the few companies in the world with an extensive knowledge ofboth energy and the environment, we will continue to develop new environmental
business strategies.
Environment Report 201008

Major Electric Power, Water, andEnvironment-Related Projects Currently in Progress
In this section, we provide an overview of major new projects in which JGC is involved, including electric power, water,and environment-related projects.

Desalination and Power Generation Projects for Ensuring Stable Water
and Electricity Supplies in the Middle East
JCG is participating in a desalination and power generation(IWPP) project in Abu Dhabi, UAE. From 2005, we have also
been participating in a desalination, power generation, andindustrial steam supply (IWSPP) project in Saudi Arabia. In
addition, from 2008, we have been participating in anotherdesalination and power generation project in Abu Dhabi. We
will operate the projects in Abu Dhabi for 20 years and the
project in Saudi Arabia for 25 years.
Accomplishments to Date・Taweelah B IWPP Project (Abu Dhabi, UAE)
Power generation: 2,000 MW
Desalination: 168 MIGD
・Rabigh IWSPP Project (Rabigh, Saudi Arabia)
Power generation: 600 MW
Desalination: 30 MIGD
Steam: 1,230 tons/hour
・Taweelah A2 IWPP Project (Abu Dhabi, UAE)
Power generation: 710 MW
Desalination: 50 MIGD

The desalinization and power generation plant in Saudi Arabia

Implementation of a Seawater Desalination Project in Tianjin, China
In December 2009, JGC entered into an agreement with
Hyflux Ltd. of Singapore to jointly operate a seawater
desalination project in Tianjin City, China. Hyflux, a company
with inter national water business operations, began
construction of a seawater desalination plant (desalination
capacity 100,000 tons) in Tianjin in 2005, and in 2009 beganselling industrial water to a nearby petrochemical complex.
JGC performs plant maintenance, operation, and upkeep, in
addition to project operation. Due to rapid economic growthand population increases, Tianjin City and other areas inNorthern China face chronic shortages of industrial andresidential water. This desalination project has garnered highexpectations, as one part of the solution to China’s ongoingwater problem.
In addition, JGC is actively involved in seawater
desalination projects in the Middle East, North Africa, andother regions, and aims to upgrade and enhance water
infrastructure facilities in these regions.

The seawater desalination plant in Tianjin

Desalination equipment* A Collaboration of JGC and Hyflux

09 JGC Corporation

Fiscal 2009 Highlights

The Launch of a Water Business Company
In April 2010, JGC and Mitsubishi Corporation acquired
equity stakes in Ebara Engineering Service Co., Ltd. (EES).
EES, the water business subsidiary of Ebara Corporation, is
one of Japan’s largest domestic contractors for construction,
maintenance, and operation of water and wastewater
facilities. The newly launched water business company will
combine the water treatment engineering, operation, andmaintenance expertise of Ebara Engineering Service Co.,
Ltd., the global network and business management
capabilities of Mitsubishi Corporation, and the global
engineering and project management capabilities of JGC.
Ebara Engineering Service Co., Ltd. aims to strengthen its

water treatment operating base in Japan, and eventually
expand the business to overseas water markets.
In May 2010, JGC entered into an agreement with
Mitsubishi Corporation, Innovation Network Corporation ofJapan, and other partners, to jointly acquire a water businesscompany in Australia. Through these and other initiatives,
JGC is continuing to pursue a new business approach.
JGC is committed to combining its project management
and engineering capabilities to propose businesses that
effectively utilize resources and energy. We are also
contributing to environmental conservation through water,electric power, and urban development projects.

Tianjin City, China
Seawater desalination project

Yunnan Province, China
Demonstration research onwater quality improvement
Abu Dhabi
Desalination andpower generation projectJapan
Launch of a waterbusiness company

Australia
Saudi Arabia

Operation of a waterbusiness company

Desalination, power generation,industrial steam supply project
The Philippines
Bio-ethanol production andpower generation project

Environment Report 201010

Demonstration Research on Water Quality Improvementin Yunnan Province, China
In China, rapid economic growth has made river andlakewater pollution a severe problem urgently in need of asolution. To address this problem, in 2008, JGC used anozone-based technology, developed by a Japanese venturecompany, to conduct water purification testing at Lake Taihuin
in Jiangsu Province. The testing confirmed the effectivenessof this new technology for purifying water to a drinking-watersafety level, and the initiative subsequently attracted theattention of the Chinese and Japanese governments. At the
fourth Japan-China Energy Conservation Forum, (November2009), JGC concluded an agreement with the People’s
Government of Kunming, Yunnan Province, and China Energy
Conservation and Environmental Protection Group, toconduct a purification project at Dianchi Lake in Yunnan
Province. China Energy Conservation and Environmental
Protection Group are JGC’s business partners in China, andChina’s only national energy investment and conservationcompany.

JGC has begun investigational research aimed at designingand promoting a water-quality improvement system for
Dianchi Lake. This research has been commissioned by the
New Energy and Industrial Technology Development
Organization (NEDO). It will be conducted by the National
Development and Reform Commission, the Yunnan Province
Development and Reform Commission, and NEDO, as a joint
development project between the governments of Japan and
China. In this way, JGC will be applying its engineeringexpertise to environmental preservation initiatives in China.
Overview of the Investigational Research・Water purification facility capacity: 300 m3/hour x 2 units
・Purified water quantity: Approx. 5 to 15 million m3 (approx.1
year)
・Water quality improvement objective:
Chinese Surface Water Quality Standard Class III equivalent(suitable for use as drinking water）

Water purification test flow
Contaminant recovery / recycling
Compost, etc.

Treatment of polluted water
Water purificationequipment

Recovery of natural purification capability bymeans of purified water and high-oxygen water

Dianchi Lake, site of the demonstration test

11 JGC Corporation

Severe water pollution

Fiscal 2009 Highlights

Bio-ethanol Production and Power Generation Project in the Philippines
In April 2010, in a partnership with ITOCHU Corporation andagriculture businesses in the Philippines, JGC launched a
project to construct a bio-ethanol plant in Isabella, Luzon.
The plant will produce bio-ethanol from sugarcane (54,000
kiloliters per year) and generate thermal power (19 MW) frombagasse (sugarcane residue). By February 2012, the partners
will invest more than 10 billion yen to prepare new sugarcane
farmland in Isabella, (11 thousand hectares) and constructethanol production facilities and power generation facilities on
the same site.
The Philippines currently mandates a mixture of 5%
bio-ethanol in gasoline for automobiles, and plans to raise themixture rate to 10% in 2011. Although the law mandates

The supply of a renewableenergy source

preferred use of domestically-produced ethanol, currently
domestic production falls far short of the amount required.
The Philippines is also preparing a program to provide
favorable treatment for the use of renewable energy sources,
which will include bagasse-fueled power generation.
T h i s m u l t i f a c e t e d p ro j e c t i s m a d e p o s s i b l e b y a
combination of fuel-plant and power plant technologies, inwhich JGC has a solid track record. It is also a uniqueundertaking, serving both as an environmental business thatwill create renewable energy, and as a socially beneficial
business that will create many local jobs. Through sugarcane
cultivation and plant operation, the project will create
continuous employment for approximately 3,000 households.

The supply of electricity froma renewable energy source

Plant engineering technologies
and knowledge

Agricultural use of undeveloped land

Provision of employment opportunities

A broad expanse of sugarcane farmland

Environment Report 201012

I JGC Group's Environmental Technologies

JGC Group actively contributes to environmental preservation through our wide-ranging
engineering business, especially in the field of energy.
Furthermore, we apply the knowledge we have acquired over the years to various environmental businesses,
including electric power and water projects and Clean Development Mechanism (emissions trading) projects.
In this section, we report on how JGC Group companies have taken advantage of our environmental
technologies to contribute 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.

13 JGC Corporation

Underground CO2 Sequestration
CO 2 capture and storage (CCS) is a global warming counter-measure that involves recovering and storing CO 2
underground, instead of releasing it into the atmosphere. Demand for CCS is likely to increase in the coming years, with
the International Energy Agency (IEA) predicting 100 CCS projects worldwide by 2020, and 850 projects by 2030.
JGC engineered and constructed the world’s second large-scale CCS plant (annual amount of CO2 injection
approximately one million tons) in the In Salah natural gas processing plant in Algeria. Together with partner companies,
we are working to further develop and disseminate CCS in countries around the world. Currently, we are participating in
the design, procurement management, and construction management of the Gorgon LNG project, slated to encompass
the world’s largest CCS project.
CO2 separation andrecovery facilities

Injection
facilities

CO2 injection

CO2 capture and storage (CCS)

Subsea pipeline

Subsea injection
facilities

Cap rockCO2 storage
Reservoir
CO2 storage
Reference material : Information from Japan CCS Co., Ltd.
The natural gas processing plant in Algeria

Participation in the World’s Largest CCS ProjectIn 2009, JGC formed a joint venture with KBR (U.S.), Clough(Australia), and Hatch (Canada and Australia) and obtained anorder from the Gorgon Joint Venture, in which Chevron is amajor investor. The order is for the design, procurement
management, and construction management of the Gorgon
LNG project, an LNG facility to be constructed on Barrow
Island in Northwest Australia. As part of this project, theworld’s largest CCS facility (average of 3 million tons of CO2
per year) is planned as an environmental protection measure.
The facility will compress, inject, and store CO2 undergroundinstead of releasing it into the atmosphere, making theGorgon project an advanced LNG plant that reflects
maximum consideration of the natural environment.

Development of an Efficient CO2 Separation and Recovery Technology
JGC is developing the HiPACT (High Pressure Acid-gas
Capture Technology) process in partnership with BASF of
Germany. HiPACT is a technology for high-pressure recoveryof the CO2 in natural gas and synthetic gas. The technology
makes it possible to greatly reduce the energy use and costo f C O 2 u n d e r g ro u n d s t o r a g e , a n d c o u l d c o n t r i b u t esignificantly to the widespread use of CCS.
Basic technology pilot testing at the Research andDevelopment Center has been completed. To verify HiPACT’s
applicability to commercial facilities, for several months, JGC
has been conducting demonstration testing of CO2 recovery(40,000 tons per year) using actual natural gas, at the carbon
dioxide gas removal facility of INPEX Corporation’s Koshijihara
Gas Plant (Nagaoka City, Niigata Prefecture). In this way, JGC
is actively working to achieve the early dissemination of CCS
technology.

The INPEX Corporation’s Koshijihara Gas Plant

Preparation for CCS Implementation
The cost burden is a major obstacle to the realization of CCS.
One solution would be implementing CCS as a CDM project
under the Kyoto Protocol, and JGC has been working
continuously to achieve this. Another solution underconsideration is enhanced oil recovery (EOR) using CO 2 .
EOR increases oil yield by injection of CO2 into oil reservoirs
where yield is declining. In China, a project combining CCS

and EOR technology to sequester CO2 in oil fields is underconsideration as a public-private sector effort involving thegovernments of Japan and China. JGC, the ResearchInstitute of Innovative Technology for the Earth (RITE), and the
China National Petroleum Corporation (CNPC) are conducting
a joint technical investigation in preparation for CCS
implementation.

Environment Report 201014

CDM Projects in China
Clean Development Mechanism (CDM) emission-reduction projects are being implemented 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 to apply emission reductions made in investment recipient countries
toward the achievement of their own CO2 emission reduction targets. JGC participates in CDM projects in China.

17-Million-Ton Greenhouse Gas Reduction from Chlorofluorocarbon
Substitute Gas Recovery and Decomposition
JGC, in partnership with Marubeni Corporation, is
implementing the Juhua CDM project, the first-everJapan-China CDM project. The project objective is theacquisition of Certified Emission Reduction (CER) credits
through the recovery and decomposition of the greenhousegas HFC23 at a chlorofluorocarbon substitute production
plant in China’s Zhejiang Province. The plant is owned by

Zhejiang Juhua Co., Ltd. Enormous greenhouse gas
reductions (equivalent to 40 million tons of CO2) are plannedover a period of seven years. The Juhua CDM project’s
decomposition facilities began operation in August 2006, andgreenhouse gas reductions of approximately 17 million tons
were achieved by December 2009.

Acquisition of Emissions Reduction Credits of 22,000 Tons / YearThrough Residual Heat Power Generation for a Cement Plant
In September 2008, a residual heat power generation project,in which JGC was a participant, was registered as a CDM
project by the United Nations. The project is operated by
Huaibei Mining (Group) Cement Co., Ltd. in Anhui Province in
China, and is the second CDM project in which JGC has
been involved. JGC plans to obtain emissions reduction
credits for the equivalent of 22,000 tons of CO2 per year fromthe project, which involves residual heat power generation
facilities for a cement plant.

The Huaibei Cement plantin Anfui, China

Acquisition of Emissions Reduction Credits of 520,000 Tons / YearThrough Cement Raw Material Substitution
China is the world’s second-largest consumer of energy, andalso 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 thesurplus energy released during cement production.
JGC, in partnership with Elion Jidong Cement Co., Ltd. ofthe Inner Mongolia Autonomous Region and Jutai Building
Material Co., Ltd. of Quzhou City, Zhejiang Province, iscurrently involved in cement plant projects that apply a new
cement production method using more sustainable raw
materials as a substitute for limestone. These projects wereregistered as CDM projects by the United Nations in Marchand April of 2009, respectively.
In conventional cement production, “clinker,” theintermediate product, is produced using limestone as a raw
material. The new production method uses carbide residue(calcium hydroxide), a substance produced as a by-productat vinyl chloride production plants, as a substitute forlimestone.
In this new method, the by-product generated throughclinker production is water vapor, not CO2. Therefore, the new
method enables a significant reduction in CO2 emissions fromproduction processes, as well as effective utilization ofcarbide residue. Through these projects, JGC plans toacquire emissions reduction credits for the equivalent ofapproximately 520,000 tons of CO2 per year.

U.N. Registration of an Emissions-Reduction Project for the Recovery andUse of Coal Mine and Ventilation Air Methane
During coal mine operation, methane gas in the coal bed isrecovered to ensure the safety of the miners. However, muchof the recovered coal mine methane (CMM) is emitted into theatmosphere. In addition, the air used for the ventilation ofmine shafts 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 thegreenhouse gas potential of CO2, the recovery and effective
use of methane gas can be expected to have global warming
prevention and energy conservation effects.
A VAM recovery and utilization 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 (annual GHG

15 JGC Corporation

reductions equivalent to 45,000 tons of CO 2 ). In addition,
JGC has applied for U.N. registration of another CDM project
to recover CMM (annual GHG reductions equivalent to75,000 tons of CO2 ).

A coal mine VAM duct facility

I JGC Group's Environmental Technologies

Environmental Activities at Group Companies
JGC Group includes companies that operate EPC (engineering, procurement, and construction) businesses similar tothat of JGC, as well as companies involved in process licensing, inspection, maintenance, consulting, catalyst and finechemicals businesses.
In this section, we report on the development of new environmentally-friendly technologies and mechanisms at theseGroup companies.

Introduction of a NOx Removal Catalyst in Overseas Markets
Nitrogen oxides (NOx) are substances that cause acid rain
and photochemical smog. In the early 1970’s, JGC Catalysts
and Chemicals Ltd., a member of JGC Group, began todevelop catalysts for the flue gas de-nitrification equipmentused at power plants and other facilities, and in 1976 it
became the first company to offer a honeycomb structurede-nitrification catalyst (NO x removal catalyst) to theJapanese market. Subsequently, following the strengtheningof NO x regulations in various countries, the company hasoffered NO x removal catalyst manufacturing technology
licenses to companies in the EU, the US, and South Korea.
Increased global environmental awareness has driven up
Chinese demand for NOx removal catalysts as well, and now
the company is selling NO x removal catalysts for use at anumber of thermal power plants in China. China’s demand is
expected to continue to expand, so in addition, JGC
Catalysts and Chemicals operates a sales company in Beijing

to provide service to Chinese customers. It has also begun
offering NO x removal catalyst manufacturing technology
licenses to manufacturers in China. In the coming years, NOxremoval catalysts manufactured under license are expected
to come into widespread use at power plants in China and to
broadly contribute to the curbing of China’s NOx emissions.

Huaneung Hainan Dongfang
Power Plant in China is supplied with
NOx removal catalyst.

Development of Titanium Materials for Dye-Sensitized Solar Cells
Solar cells, which convert solar energy into electricity, arepower generation devices that require no oil, coal, naturalgas, or other fossil fuels. Solar cells have attracted increasing
attention and come into widespread use in recent years as asolution to energy problems and a means of preserving the
global environment.
Several types of photovoltaic materials are used for solar
cells. Although high-purity silicon is now the most commonlyused material, dye-sensitized solar cells are being heralded asa next-generation material. Dye-sensitized solar cells are
made using a photovoltaic material that consists of a thin
nanoparticle titanium dioxide layer infused with a special dye
on a glass or plastic plate. This material possesses
characteristics not found in silicon solar cells: it offers goodreactivity to comparatively faint light energy such as artificial
light, comes in a variety of colors, and is easy to fabricate.
Two factors that affect the performance of dye-sensitizedsolar cells are a technology that controls the titanium dioxide
nanoparticles (the material that causes the light-encapsulating

effect) to the ideal average diameter of 0.4 microns, and a
special technology for preparing a paste of titanium dioxide
nanoparticles with a diameter of 0.02 microns or less, for use
in forming a thin titanium dioxide particles layer.
JGC Group member JGC Catalysts and Chemicals has
already refined these technologies to the industrial level and is
endeavoring to promote the dissemination of dye-sensitizedsolar cells, an energy source with great promise for the future.

Titanium dioxide particles withan average diameter of 0.4 microns

Environmental Impact Assessment Method for CCS Projects
CCS (underground sequestration of CO 2 ) is attracting
considerable attention as an immediately effective means ofglobal warming mitigation. JGC has constructed the world’s
second large-scale CCS plant in Algeria and is currently
participating in the construction of what will be the world’s
largest CCS plant, located in Australia.
JGC Group company Japan NUS Co., Ltd., offers
environmental consulting and risk assessment to promote
environmental impact assessment and social consensus in
CCS projects.
The introduction of CCS involves issues that require carefulconsideration. For instance, is there a possibility that CO 2
sequestered for long periods of time will leak into seawater orthe atmosphere? That is, is CCS an environmental protection
technology that involves inherent risk of environmental
pollution? A mechanism for assessing this risk was discussed

at the London Convention, and the framework for thatmechanism was completed in 2007. Japan revised theMarine Pollution Prevention Law in 2007 in response to thisinternational development, and it was decided that theEnvironment Minister would permit the sequestering of CO2
under the seabed following the completion of environmental
impact assessments. As an environmental consulting firm,
Japan NUS has provided support in all aspects of this
deliberation process, from the Japanese government’s
participation in the international convention to the procedure
for revising Japanese law. The company is currently
supporting the preparation of a technical manual to enable
the government (Ministry of the Environment) to appropriately
examine future environmental impact assessments performedby CCS contractors.

Environment Report 201016

A Cell Structure for Solid Oxide Fuel Cells
Comparison Of Thermal Power
Generation and SOFC
LNG、LPG
・Waste heat at the time of heat generation(disposal into the sea, etc.): 55%
・Waste heat that is・Transmission loss: 5%
difficult to utilize: 25%

Gas
supplyElectrical energy
Electrical energy

75%

40%

60%

Heat energy

15%

Thermal power plant

The Fuel Cell
Mechanism
Fuel
H2ElectrodeH2
e- eO2-

Water

H 2O

Fuel cell (SOFC)e-e-Electrolyte

Solid oxide fuel cells (SOFC), which generate electricity by
causing a chemical reaction between hydrogen and oxygen,provide greater power generation efficiency than conventional
thermal power generation. In addition, since electricity is
generated where it is used, SOFC are power generation
systems that entail no transmission loss and enablepreviously unusable waste heat to be effectively used as heat
energy of at the time of power generation. For these reasons,
SOFC are an environmentally-friendly power source that offer
higher fuel and energy use efficiency than thermal power
generation.
JGC Group member Japan Fine Ceramics Co., Ltd.
contributes to the practical application of eco-friendly SOFC
by applying expertise in diverse fields, such as thin plate
forming techniques developed for the manufacture of ceramic
substrates. The company assists the development efforts ofelectrical equipment manufacturers, gas equipment
manufacturers, and research institutions by engaging incontract manufacturing involving trial production, start-up ofmass production, and production scale expansion for thecells that are the heart of SOFC.

Air

Electrode
e- e-

O2

O2

O2

O2-

ThermalenergySOFC cell

Fuel electrode Air electrode
Ceramic membrane

Development of a Commercial Air Purification System
Incorporating a Bactericidal Enzyme
JGC Group member JGC Universal Ltd. is working to realize
clean air in office and living environments through theapplication of numerous elemental technologies for dust
removal, deodorizing, volatile organic compound (VOC)
removal, and disinfecting. The company provides bactericidal
enzyme filters for air conditioning at food, medical,
pharmaceutical, and research facility clean rooms and has
recently commercialized the Clean Pro BIOFREE commercial
air purification system for the prevention of secondary
infection of influenza and other illnesses at medical carefacilities and public spaces.
A bactericidal enzyme developed by JGC Universal isaffixed to the filter. The enzyme deactivates bacteria collectedby the filter, preventing secondary infection caused by
microorganism propagation. Whereas ordinarily approximately
100 bacteria exist per cubic meter of air several days after air
passes through a filter, the enzyme filter makes it possible tocontrol the number of bacteria to nearly zero.

The BIOFREE air purification system

Commercial Application of a Mercury Separation System for Fluorescent Lamps
Even as awareness of environmental problems increases
worldwide, many local governments in Japan continue todispose of fluorescent lamps in landfills. Mercury is enclosed
in fluorescent lamps, and there is concern that landfill without
treatment may result in mercury ground pollution and ocean
pollution.
JGC Group company JGC PLANTECH Co., Ltd. hasscaled up the capacity of its “vacuum-reducing gas ventilation
method” laboratory equipment (jointly developed by Civilian
Eco Research Co., Ltd. and Professor Masahiro Hori of
Yokohama National University) to commercial size, andsucceeded in separating the mercury in fluorescent powders
to landfill standards (concentration of 5 mg/l or less in elution
testing)Previously, the separation of the mercury in fluorescentpowders was a difficult undertaking.
JGC PLANTECH’s highly regarded separation system has
been installed at two waste disposal plants in Yatsushiro City,
Kumamoto Prefecture and Naha City, Okinawa Prefecture,
where it serves the purpose of fluorescent lamp recycling.

17 JGC Corporation

Mercury Separation Flow
Atmosphere

Reducing
gas

CoolingHeating

RecoveryvesselAdsorption
tower

Mercury Separation line
FluorescentpowderHeating

Cooling
ReactorMercury Separation line

Recovery vessel
Vacuumpump

I JGC Group's Environmental Technologies

Next-Generation Tubular Heating Furnaces
Tubular heating furnaces are an integral equipment item atvarious industrial plants, where they are used to heat liquids
or gaseous fluids to required temperatures. However, sincelarge quantities of fossil fuels are used to fuel ordinary heating
furnaces, the fuel cost burden is high and fuel combustion
causes emission of large quantities of nitrogen oxides (NOx),
which have a serious impact on the global environment, andCO2, a greenhouse gas.
The ability to increase the thermal efficiency of heating
furnaces, or reduce NO x emissions, has historically been
limited, for reasons involving combustion techniques, facilities
cost, and anti-corrosion technologies. However, JGC Group
member JGC Project Services Co., Ltd., which has been
involved in the engineering and construction of numerous
heating furnaces in Japan and overseas, offers
next-generation tubular furnace heaters that solve theseissues. The company has already built several facilities inJapan.

Waste heat recovery
equipment NOx removal
equipment expansion

A next-generation tubular heating furnace

Features of Next-Generation Tubular Heating Furnaces
1. Application of energy-saving technologies
・Exhaustive recovery of heat from flue gas
・Increase in thermal efficiency through combustion witha low coefficient of excess air
・Reduction of furnace wall radiation heat loss throughinsulation reinforcement
2. Application of green technologies
・Realization of an ultra-low NOx combustion techniquethrough the installation of leading-edge burners
3. Improvement in combustion control and operation control
・Increase in combustion safety.

Conversion toultra-low NOx burners

Energy Conservation Using Server Virtualization Technology
JGC Group member JGC Information Systems Co., Ltd. isadopting server virtualization technology in order to conserve
energy, save space, and reduce the total cost of servers.
“Server virtualization” is a technology for reducing the numberof installed servers by logically splitting up a server’s physicalenvironment and causing the server to operate as if it were
multiple servers.
JGC Information Systems is executing a virtualization
project for the servers that operate as the information
systems infrastructure at JGC’s Yokohama headquarters. The
first stage of the project is a three-year plan from fiscal 2010
to fiscal 2012 to integrate approximately fifty print and plot
servers, file sharing servers, and other servers into a virtual
server environment of servers. In this way, we expect toreduce server power consumption in fiscal 2012 by 85% fromthe previous level.

Beginning in fiscal 2011, JGC Information Systems plans toseek further energy savings by integrating JGC’s project
management system and other mission-critical systems into a
new information infrastructure (mail, groupware, electronicbulletin board system, etc.) currently being developed using
server virtualization technology.
The company’s future plans call for applying its expertiseand project management capabilities as a systems integrator
to offer a server integration service that will contribute toenvironmental impact reduction.

Environment Report 201018

II Environmental Consideration in Business Activities

JGC Group's Business Activities
Investment business
EPC
business

MarketingFeasibility
Studies

Basic
Planning(FEED)Engineering,
Detailedengineering

Equipment
and materials
procurement

Construction
planning

Construction
work

Maintenance

Facilities
decommissioning

Research and development

JGC Group executes projects around the world in business sectors ranging
from resource development, oil, natural gas, and petrochemicals, to the environment, chemicals,
pharmaceuticals, water resources, and new energy.
In all of its businesses, the Group constantly strives to fully consider environmental impacts.
We demonstrate environmental consideration not only in plant
EPC (engineering, procurement, and construction), but also in our marketing and at all project stages,
from feasibility studies to maintenance and plant decommissioning.
19 JGC Corporation

Our Commitment

JGC aims to be a No. 1 HSE contractor.
We aim to faithfully fulfill our social responsibility by considering
HSE in every aspect of our business.

Hidenori Yashima

Senior Executive Officer, Senior General Manager, Quality Assurance, Safety & Environment Office

Intensive Management of HSE to Meet Newer, Higher Standards
JGC has established the Quality Assurance, Safety and Environment Office for constantenvironmental consideration in all aspects of business. Client interest in HSE has
heightened in recent years, and the requirements of clients have become more stringent.
JGC aims to maintain customer trust and fulfill social responsibility by becoming a
No. 1 HSE contractor.
HSE in the Concept and Basic Planning Stages
JGC carefully considers HSE concerns, starting from the concept and basic planningstages. For example, in a recent LNG plant project in Indonesia, JGC met the strictest
standards in Indonesia’s environmental impact assessment system. JGC consideredenvironmental factors starting at the basic engineering stage, including shipment ofmaterials and equipment from remote areas, protection of flora and fauna, and local
employment policies. With the cooperation of the client, JGC completed a world-classplant satisfying all environmental requirements.
Balance of Long-Term and Short-Term Perspectives
Energy and infrastructure facilities in operation around the world, even those that makefull use of the latest technologies, all have an impact on the environment over the longterm. Parties responsible for the concepts, detail specifications, and construction ofthese facilities must consider not only ad-hoc economic rationality, but also long-term
environmental impacts. Provided all involved parties understand the essence of HSE
and overall optimization can be achieved, the result will meet with the approval ofcustomers and society. JGC is keenly aware not only of the need for initial cost
performance, but also for consideration from both short-term and long-term perspectivesof matters including subsequent environmental impact, operating safety, and ease ofmaintenance. We aim to be a company that achieves a good balance between short-termand long-term perspectives.

Environment Report 201020

Environmental Consideration at Every Stage of EPC
In this section, we report on specific examples of JGC Group’s concern for the environment at every stage of EPC
services.

In Marketing
Achieving balance between generating a stable energy supply
and protecting the natural environment is a critical issue
facing the human race. Our clients are expressing an
increasing demand for environmental sensitivity andsustainability, and JGC Group has been orienting marketingand sales strategies toward these environmental concerns.
Recently, many plants have been switching from coal or oilover to fuels with a lower environmental impact, such as
natural gas. JGC will continue to market its services to clientswith needs of this kind. We will also be marketing ourenvironmental facility EPC services more broadly. These
services include EPC for gasoline and diesel oil desulfurization
facilities, LNG plants, and integrated gasification combined
cycle (IGCC) facilities.
In addition, we are increasing our presence in newenvironmental sectors like renewable energy, with solar
radiation and solar thermal power projects in the Middle Eastand other areas. In response to increased demand for water,
we are also making the global water business (incl.
desalination and water supply projects), a major part of our
future marketing plans.

Marketing

IGCC Plant

In Feasibility Studies
We consider many matters at the feasibility study stage,
including market analysis, potentially useful technologies,
systems capabilities, facilities configuration, and construction
and operation cost analysis. When selecting facilities
configuration, we take environmental concerns into account,

Feasibility
Studiesalong 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 FEED (front-end engineering design) stage. At
this stage, JGC Group draws up specifications reflecting
comprehensive consideration of plant construction costs,
safety, operation costs, environmental impact, and otherfactors, and applies technological strategies for energy
conservation and effective energy use. During FEED, wemeasure the overall thermal balance of the plant and propose

Basic
Planning(FEED)

energy conservation and efficiency improvement measures,
including “pinch technology” for optimization 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 byreducing CO2 emissions, and considering measures such aswaste heat recovery maximization and flare gas emissions
reduction.

In Basic Engineering and Detail Engineering
At the basic and detail engineering stages, we considerpractical, concrete measures for minimizing environmental
impacts, which are reflected in the equipment specifications
decided at these stages. During initial engineering design fora recently opened overseas natural gas processing plant, wecreated a compact design for compressor locations, piping
layout, and other details to achieve a 35% reduction in
structure height and a 28% reduction in length. As a result,

21 JGC Corporation

Engineering,
Detailedengineering

we increased production efficiency and reduced construction
cost.
To increase thermal efficiency, we recover and reuse theheat of high-temperature flue gas from compressor turbines.
Whereas previously the heat was reused at various plant
departments through an oil medium, now, we have further
increased thermal efficiency by converting waste heat tosteam and using it to power an additional steam turbine.

II Environmental Consideration in Business Activities

Equipment
and materials
procurement

In Equipment and Materials Procurement
JGC Group also takes environmental considerations into
account at the procurement phase of projects, encouraging
the materials and equipment vendors with whom we dobusiness to adopt a forward-looking stance on environmental
conservation, including protection of biodiversity.
Though transactions with vendors previously required alarge volume of paper documentation, we have now
successfully switched to digital documents with our in-house
JGC e-Procurement Solution System (J-PLUS). This systemis environmentally friendly and improves work efficiency by
reducing the use of paper forms. After purchase order
finalization, interaction with vendors at the detail engineering
stage is computerized using J-PLUS, resulting in a virtuallypaper-free work environment.

Overview of J-PLUS
J-PLUS

ading

DownloJGC

Mailtransmission
and receipt

PricequotesMail Relay,
distribution,
storage

Submission

Mailtransmission
and receipt

Vendors

Construction
planning

Before starting construction work, we consider the above
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 an environmental management plan for
construction work
4. Providing new workers with environmental education andtraining
We incorporate the Zero Emissions Initiative, a JGC Group
independent environmental conservation initiative, into thispreliminary 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
decided in the Construction Environmental Management Plan
include project environmental policy, the organizations andp e r s o n s re s p o n s i b l e f o r e n v i ro n m e n t - re l a t e d w o r k ,e n v i ro n m e n t a l p ro t e c t i o n m e a s u re s , e n v i ro n m e n t a lperformance monitoring and measurement, emergency
prevention and mitigation procedures, environmental

Inquiry
documents

Preparation

In Construction Planning
Meticulous concern for sustainability at plant construction
sites is essential. In many countries, construction of newplants requires submission of an environmental impact
assessment (EIA) report for the purpose of minimizing
environmental impacts wherever possible. The EIA report
describes in detail impacts that construction work will haveon the air, water, soil, flora, fauna, and marine life.
JGC applies environmental management systems toc o n s t r u c t i o n w o r k t o e n s u re t h a t w e d e m o n s t r a t eenvironmental consideration in compliance with EIA reports,emphasizing the following points.
1. We practice strict legal compliance and environmental
risk management by identifying environmental
laws and regulations and environmental considerations
that bear on construction work.
2. We endeavor to increase customer satisfaction andreinforce communication with stakeholders.
3.We manage environmental risk and endeavor to minimize
the possibility of environmental disasters by anticipating,preparing for, and responding to emergencies.

Via the Internet

Via PMS

Construction
work

monitoring, and monthly reporting. Following the start ofconstruction, a review of environmental aspects of the project(the relationship between construction work and thee n v i ro n m e n t ) i s c o n d u c t e d t o c o n f i r m w h e t h e r t h econstruction work differs from the plan. If any differences arefound, the plan is revised to ensure that there are noomissions in environmental consideration in the environmental
management framework.

Containment Engineering for Pharmaceutical Plants
Some pharmaceutical plants handle potentially hazardous
substances. Focusing on this characteristic ofpharmaceutical plants, JGC has developed a rational
containment engineering approach to ensure worker safety,
protect the local environment, and provide comprehensive

protection from hazardous substances. By participating inplant construction from the basic planning stage, JGC
makes doubly sure of environmental safety even at
pharmaceutical plants that handle hazardous substances.

Environment Report 201022

Preservation of Sacred Symbols at Construction Sites
Construction work for an LNG plant on Papua, Indonesia
required consideration of two forms of sustainability:
minimizing project impact on the natural environment inaccordance with Indonesian government regulations, andavoiding introduction of objects and actions that would be
detrimental or offensive to the culture and society of theindigenous people. The plant site contained sacred trees
and sacred stones that are religious symbols for the area’s
original inhabitants. These symbols have been preserved
within the site and are made accessible for festivals andother religious rites.

In Maintenance
Rigorous HSE risk assessments are conducted in theengineering phase for oil and natural gas plants, and risk
mitigation measures determined to be necessary are borneout in engineering and construction. However, over years ofplant operation, operating conditions change and facilities
age. In some cases, chemical substances not assessed asrisks at the time of construction become recognized as healthrisks. HSE organizations in the Western Hemisphere havelong advocated the timely reassessment of risks that may
potentially increase over the course of long-term plant
operation. Plant operators recognize the need for this, and in

In Facilities Decommissioning
JGC also strives to minimize environmental impacts indismantling work during facilities renewal. For example,
during the renewal of a pharmaceuticals laboratory, weused construction drawings and materials analysis to confirmt h e p re s e n c e o r a b s e n c e o f a s b e s t o s d u s t , P C B s ,chlorofluorocarbons, and other harmful materials before
dismantling facilities. On the basis of the results, we sought tominimize environmental impact by preventing asbestos
dispersion, and recovering and decomposing
chlorofluorocarbons. We measured asbestos particle
concentration in the air before, during, and after construction
and confirmed that asbestos had not been dispersed outside
the work area.
To reduce the processing of industrial waste generated
during decommissioning, we dismantle each type of waste
separately and promote waste recycling and reuse. In thisway, we have achieved a recycling rate of 100% for concrete
and asphalt. We use industrial waste control manifests todetermine appropriate treatment for industrial waste at every
stage up to final disposal.

Sacred trees preserved within the plant site

Maintenancegeneral have been consistently conducting more rigorous risk
reassessment. JGC Group actively supports plant operators
in conducting risk assessment at operating plants. We havean excellent reputation for our ability to act as a third party,
provide the latest technologies and knowledge, and supply
needed resources to plant operators.
As evident from the April 2010 oil spill in the Gulf of Mexico,the energy industry carries an inherent risk of causing
environmental problems on a global scale. This makes risk
assessment at plants all the more important.

Facilities
decommissioning

Ceiling dismantling

Separation of waste

23 JGC Corporation

II Environmental Consideration in Business Activities

Environmental Consideration in Investment Projects
and Research & Development
In this section, we report on the environmental considerations related to our investment projects, and in the researchand development that supports our engineering business.

Enterprise Investment BusinessIn addition to the EPC business, JGC Group is involved ininfrastructure projects (desalination and power generation),resource development projects (for oil, gas, and otherresources), CDM projects, new energy development projects(bio-ethanol and coal upgrading), as well as environmental
catalyst and fine chemicals manufacturing projects. As ageneral rule, in the enterprise investment business, we keep
the following objectives in mind: development of social
infrastructure, environmental improvement on a global or local
scale, and improvement in energy use efficiency.
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 International Finance Corporation (IFC). In ourcurrent desalination and power generation projects in the
U A E a n d S a u d i A r a b i a , w e a re p e r f o r m i n g d e t a i l e denvironmental impact assessments, and are working incompliance with the aforementioned environmental standards
and regulations. JGC Group makes investments with thebelief that environmentally considerate projects increase
corporate value for JGC and for our business partners.

Research and Development
JGC conducts research and development, principally testing,at the Research and Development Center in Oarai, Ibaraki
Prefecture. At the Research and Development Center, wetreat testing wastewater by filtering, adsorption, andneutralization, in strict compliance with voluntary
management criteria as well as relevant laws, ordinances andregulations. We dispose of treated water in accordance withenvironmental standards. In controlled areas where we use
radioactive isotopes, we strive to reduce the amount of test
waste liquid and hand washing wastewater generated. We
treat these liquids and wastewater by ion exchange, filtering,
adsorption, and concentration, and recycle them within thecontrolled area. Under no circumstances do we discharge
this water outside the controlled area. Furthermore, werelease exhaust from the controlled area 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, andwe separate and dispose of waste in compliance withindustrial waste disposal standards.

Investment business

Desalination and power generation plant (Abu Dhabi, UAE)

Research and development

Research and Development Center (Oarai, Ibaraki Prefecture)

Environment Report 201024

III Environment Protection Framework Based on
Environmental Management Systems

ChairmanPresident
HSE Committee

Division

Division

Quality Assurance
Safety & Environment OfficeEnvironmental Management Systems
Operation Structure
Engineering

EMS Working
Group

Working Group

Project execution

Office activities

Procurement

Construction

JGC Group considers the creation of sustainable local communities and the preservationof the global environments to be critical business priorities.
We carefully consider the natural environment from a variety of perspectives, and we haveachieved significant environmental improvement results through innovation in business execution.
At the core of JGC’s robust environmental protection framework are our environmental management systems.
We have also focused on biodiversity preservation in preparation for the InternationalYear of Biodiversity in 2010.
25 JGC Corporation

Our Commitment

We aim to be an engineering company with a high level of HSEawareness and HSE employee education.

Fumio Nishiyama

Group Leader, Safety Management Group, Construction Management Dept.
Industrial & Domestic Energy Project Division

HSE Leader in Charge of Policy Implementation, Awareness, and Education.
I am responsible for the promotion of HSE (health, safety, and environment) atconstruction sites in Japan. I work mainly on the promotion of the Zero Emissions
Initiative, and also for the company’s policy for preventing environmental accidents,
raising awareness of company policies at construction sites, ensuring compliance with
relevant regulations, and conducting HSE education programs for everyone involved inconstruction.
Problems Associated with Environmental Management at an Engineering
Company
Our safety management target is very clear: to achieve zero accidents rate atconstruction sites. With environmental targets, however, matters are not so clear.
Although we set targets each year, we found it difficult to explain the targets and how to
go about achieving them in a way that is easy for the people involved to understand.
Although we worked continuously for several years to reduce paper, waste, andelectricity use, there are limits to what can be accomplished in strengthening
environmental management by repeating the same activities year after year. Accordingly,
we wracked our brains searching for the next environmental target.
In addition, although we devoted considerable time and effort to improving
deficiencies identified in environmental assessments, the task was so arduous that
Department Environmental Key Persons expressed doubts about the purpose ofenvironmental management and whether it contribute to profits. Since even Department
Environmental Key Persons felt that way, I was forced to recognize the inadequacy of
our internal environmental education and awareness.
Implementing Environmental Policy and Setting of Clear Targets with
Partner Companies
Recently, we have been setting more concrete environmental targets, such as the Zero
Emissions Initiative, which was instituted in 2008. Together with partner companies, wehave set clear objectives for industrial waste recycling, CO2 emissions reduction, andprevention of oil and chemical spills at construction sites.
Environmental awareness in the general population is increasing year by year, withissues like hybrid cars, energy conservation, and residential waste reduction/separation
gaining more and more attention. This increased awareness facilitates theimplementation of new environmental policies at construction sites. I hope to continue
to raise environmental awareness among employees involved in construction, just as I
hope to support safe, accident-free construction site operation.

Environment Report 201026

Environmental Objectives, Targets,
and Achievement
In accordance with the company environmental policy, JGC strives for continuous improvement of its environmental
management systems by measuring and assessing achievement as shown in the table below.

Fiscal 2009 Results and Fiscal 2010 Improvement
E : Completely implemented G : Extensively implemented NG : Not yet implemented: Substantial modification of environmental improvement measures

SectorEnvironmental objectives: Continuation of environmental improvement measures

Activity details

Implementation
statusE-learning concerning
environmental problems

Use of National Institute forEnvironmental Studies' Eco-life Guide
and other instructional materials

G

Elimination of stationery
and office supplies waste,prohibition of personal files

Periodic pooling and reuse of unused
stationery and office supplies,
prohibition of personal files

Reduction of overtime
hours through the greater
work efficiency and streamlining

Improved work efficiency, no-overtimedays, and shortening of business hours
in accordance with the circumstancesof individual organizations

Voluntary restraint in elevator use

Implementation of the“One up, two down” movement

Environmental targets

E

Fiscal 2009 results
Although the number of participatingorganizations increased, the average
implementation rate did not.
Reuse of stationery and office supplies
remained at a high level.
Prohibition of personal files is taking hold.

1. Reduction of electricity use
2. Reduction of cooling and heating use

OfficeactivitiesGroup
companies

No-overtime days were decided andovertime reduction gained impetus.

3. Reduction of paper use and paper waste
4. Promotion of waste recycling

Project
execution

E

Thorough use of window blind
controlThorough performance of window
blind control, which has a significant
energy-saving effectExhaustive participation in the
Ecocap Movement

Separate collection and recycling of
PET bottle caps

Industrial waste recycling
rate (sites in Japan) 89% or higher

Study of recycling rates at Intermediate
disposal companies, vendor selection,
elimination of mixed waste, etc. (similar
measures for overseas sites, for which
numerical target have not yet been set)

Zero complaints due to oil, liquid,or water spills

Monitoring of fueling, use of oil pans,spill inspections at the time of heavyequipment delivery

Total CO2 emissions per working
hour (sites in Japan) Less than
1kg-CO2/hour

Use of high-efficiency electrical equipment,
promotion of carpooling, shortening oftransportation distances, curbing of excess
air conditioning, etc. (similar measures foroverseas sites, for which numerical target
have not yet been set)

Reduction in man-hour and cost
increases due to rework

Implementation of a risk management
PDCA cycle, prevention of confusion
in work execution, minimization of the
impact of problems that occur, taking
maximum advantage of potential
adverse impacts

Implementation of
the Zero Emissions Initiative

Implementation of
the Zero Emissions Initiative

27 JGC Corporation

E

The number of employees who use
stairways increased, contributing toelevator load reduction and employee
health.

E

The significance of window blind control
became widely understood, and blind control
contributed to air conditioning load reduction.

E

The cumulative number of PET bottle
caps collected by the JGC Groupreached 600,000.
Industrial waste recycling rate (sites inJapan) 94% Target achieved.

G

G

G

E

Target values were unfailingly reflected in drawings
and specifications, and construction performed onthat basis. During the fiscal year environmental impact
mitigation measures were 100% implemented.

Examination and assessment of relevant
environmental impact mitigation measuresat each responsible organization, shifting
to the project execution stage

G

Obtaining orders for jobs that cancontribute to recycling

Obtaining orders for mercury recovery
jobs and jobs waste vegetable oil
reuse

G

Sludge reduction

Installation of high-performance
dewatering machines

Continuation of breakwater installationand environmental improvement activities(prevention planning, monitoring)

Product development that
contributes to global
environmental impact reduction

Anode materials improvement,
development of automotive catalysts

Five-year average improvement of
1% or higher in energy-related
CO2 emissions units

Steady implementation of energy-saving
measures (installation of energy-efficient lighting,equipment, and air conditioning facilities)

Office environment improvement

Wearing of energy-efficient summer and winterbusiness wear, automatic extinguishing of lights
during noon breaks, reduction in the number oflights, shutdown of idle PCs, water conservation,
rigorous separation of waste, use of both sides of
paper, reuse of stationery, eco-friendly stationery,
prevention of rework, use of own drinking cups

Total CO2 emissions per working hour(sites in Japan) 1kg- CO2/hour Target
achieved.

Organizations and project teams
vigorously implemented rigorous,
integrated project risk management andundertook effective utilization of resources(manpower, machines, materials, money).
The results are reflected in fiscal 2008
business performance.

Achievement of targets in detailed
environmental impact assessment(DEIA) reports

Prevention of leakage into thesurrounding environment

Minor leaks within sites Overseas sites:
14 leaks Sites in Japan: 1 leak Nearly allleaks were less than 5 liters.

G

Achievement of target number of orders

Achievement of a sludge reduction of
25% or higher

Zero leaks within sites
G

E

G

Achievement of the target level forcommercialization

Achievement of five-year average improvement of 1%
or higher in energy-related CO2 emissions units, withfavorable effect of a decline in production volume
Rigorous discipline in officeenvironmental measuresG

implemented
for 2010

III Environment Protection Framework Based on Environmental Management Systems

JGC Environmental Indicators
JGC collects, analyzes, and assesses environmental data for the head office, the Research and Development Center,
JGC construction sites in Japan and overseas, JGC Group companies in Japan and overseas, and domestic andinternational sales bases. However, since JGC conducts projects on a made-to-order basis, environmental impacts ofbusiness activities vary substantially by country and project type. In addition, some construction sites are managed
directly by clients, making it difficult for JGC to collect data. For these reasons, major differences in our environmental
monitoring occur from year to year. Furthermore, even when environmental indicator data are collected, data analysis
and assessment is difficult. Accordingly, we are proceeding with trial implementation of CO2 emission unit management
on a working-hour basis.

Zero Emissions Initiative Environmental Performance
Environmental Indicators

Unit

Fiscal 2008

Fiscal 2009

Fiscal 2010 forecast

JGC sites in Japan
1. Industrial waste recycling rate
2. Number of leaks
3. Energy-related CO2 emission units

Target

%

89

93

96

Result

%

94.7

96.3

96

Target

Leaks

0

0

0

Result

Leaks

0

2

0

Targetkg-CO2/hour

1

1

1

Resultkg-CO2/hour

1.05

0.94

1

Notification

Accidents

0

0

0

Other

Accidents

000

JGC sites in Japan

Leaks

1

2

0

JGC overseas sites

Leaks

14

1

0

Environmental Accidents, etc.
Environmental accidents
Spills within facilities
JGC sites in Japan
Energy consumption

Waste
Energy-related CO2 emission

Fuel oil

Kl Crude Oil equiv.

23,34014,757

15,108Gas

Kl Crude Oil equiv.

20,70227,00827,214

Electricity

Kl Crude Oil equiv.

23,86523,466

24,698Industrial waste

tons

36,12836,066

53,836

Specially controlled waste

tons

356

320

514

119,569

92,47893,814

Direct emissionst CO2 equiv.

Indirect emissionst CO2 equiv.

34,44833,69934,774Total

t CO2 equiv.

154,017

126,177

128,588

Fuel oil

Kl Crude Oil equiv.

16,721

9,422

30,488Gas

Kl Crude Oil equiv.

519

2

6

Electricity

Kl Crude Oil equiv.

2,235

2,324

2,343

Non-hazardous waste

tons

28,85022,16142,000

Hazardous waste

tons

2,259

42

80

Direct emissionst CO2 equiv.

52,64826,89187,022

Indirect emissionst CO2 equiv.

4,466

4,989

5,020

Total

t CO2 equiv.

57,11431,88092,042JGC Group Overseas
Energy consumption

Waste
Energy-related CO2 emission

Environmental
Indicator
Collection Map

The Zero Emissions Initiative
In fiscal 2008 JGC Group implemented the Zero Emissions
Initiative, in order to fulfill our corporate social responsibility.
The Zero Emissions Initiative covers the head office, theResearch and Development Center, JGC construction sites
in Japan and overseas, JGC Group companies in Japan andoverseas, and domestic and international sales bases. We
hang posters advertising the initiative at all business sites, toinspire broader interest in environmental improvement. At
JGC domestic construction sites, we quantify environmental
improvement targets in three areas: the recycling rate,
number of spills, and CO2 emission units (as indicated in theenvironmental objectives and targets section). In 2008 and

Poster at overseas construction sites

2009 we achieved our targets for recycling rate and CO 2
emission unit targets, and reduced the number of spills, as
shown in the table “Zero Emissions Initiative Environmental
Performance” (above). Furthermore, we made fourconstruction sites into zero-waste sites. JGC defines“zero-waste” as a final landfill disposal rate of less than 1%.
Based on these performance figures, JGC Group will set
medium- and long-term targets (for 2020 and 2050). By
setting high environmental improvement targets, we plan tostep up the Zero Emissions Initiative and continue to fulfill
our social responsibility.

Environment Report 201028

Review of Environmental Management
Systems (EMS) and Target Setting
In this section, we report on efforts for improvement in environmental management systems.

At JGC’s Yokohama headquarters, we have used the ISO
14001 certification process as an opportunity to promote
environmental conservation efforts in both office work andproject execution. An issue at locations other than the
Yokohama headquarters is that environmental target-setting
was based on standards set at the Yokohama office, andtherefore tended to center on reduction of waste, paper, andelectricity consumption. To make environmental targets more
applicable to the company at large, we reviewed
environmental target setting procedures and created acompany-wide process of trial and error for improving
environmental management systems. As a part of thatprocess, the heads of all relevant departments participated in
the EMS workshop “Environmental Aspects Identificationfrom the viewpoint of Business Process Improvement.”
At the EMS workshop, we sought for deeper
understanding of environmental aspects of business, anddeveloped methods for setting targets that accurately reflect
the primary work of the company, and are not simply focusedon waste, paper, and electricity. Workshop participants
gained practical experience in how to identify environmental
aspects in their primary work and review target-setting

procedures through a lecture by an instructor from Lloyd’s
Register Quality Assurance (LRQA) and a subsequent group
discussion.
We plan to apply the experience gained from this workshop
to revise departmental environmental targets in 2010.

The EMS workshop attended by department heads

The group discussion sparked
a lively exchange of opinions

ISO 14001 certification
In December 2003 JGC obtained certification in the ISO 14001 international standard forenvironmental management systems from Lloyd’s Register Quality Assurance (LRQA). In
October 2009 we completed an second examination for renewal of certification.

Biodiversity Initiatives
In preparation for the International Year of Biodiversity in 2010, JGC has increased its contribution to biodiversity
preservation. In this section, we report on examples of biodiversity preservation efforts.

Regeneration of Vegetation at Overseas Construction Sites
At an LNG plant project on Papua, Indonesia, JGC respected
the client’s policy of minimizing environmental impacts on thesurro un di n g a re a b y re g e n e r a t i n g b i o d i v e r s i t y a f t e r
construction.
To help regenerate more than 100 indigenous plant species atthe construction site, we
・Measured tree distribution at the planned construction site
and record e d detailed tree-cutting data b e f o re thestart of construction
・Reused of a portion of felled trees in compost, etc.
・Replanted saplings of the same tree species to restore
vegetation
・Employed plant specialists to manage vegetation
regeneration

29 JGC Corporation

In addition, we took a variety of other measures to reduce theimpact of the project on the local environment, including
waste separation and reuse of all salvageable waste/debris
material, achieving an unprecedented level of environmental
sensitivity. Periodic environmental conservation reports,
complete with third-party checks, were issued under the
management of the client to provide information within andbeyond the company.This project was unprecedented
with respect to the rigorous
implementation of action guidelines
for preventing the sustainability of thenatural environment and neighboring
society.
A seedbed for vegetation
regeneration

III Environment Protection Framework Based on Environmental Management Systems

Wildlife Protection at Construction Sites
To m i n i m i z e i m p a c t o n e c o s y s t e m s a n d t h e n a t u r a l
e n v i ro n m e n t , J G C c o n d u c t s e n v i ro n m e n t a l i m p a c t
assessments of planned sites and surrounding areas before
the start of construction, and devises mitigation measures toavoid damaging environmental impact. We are considering
the preparation of our own biodiversity guidelines to prevent
ecosystem damage even in cases where problems are notrevealed in environmental assessment.
At the Sakai Refinery Project in Osaka, killifish, crawfish,
and other wildlife had inhabited a rainwater ditch near the siteof construction. To avoid filling them in the ditch with earthand sand in site preparation work, We discussed the matterwith the client, and decided to build a pond alongside one of
the construction site buildings. Wildlife was transferred to thepond, and following the completion of construction, the client
decided to retain the pond as a permanent safe biotope.

The pond that has been permanently retained

The killifish that have become a symbol of wildlife protection

Forest Conservation in Kanagawa Prefecture Watersheds
To commemorate its 80th anniversary, on August 1, 2008,
JGC became a watershed forest partner in Kanagawa
Prefecture’s Water Source Forest Conservation Project. Since
that time, we have continuously supported environmental
conservation efforts by the project, the aim of which is protect
healthy, vital forests in Kanagawa Prefecture’s watersheds forthe next generation. Through the project, JGC Group
employees assist with watershed forest conservation while
deepening their understanding of the role of watershed
forests and the importance of coexistence with nature.
O n f i v e o c c a s i o n s f ro m A p r i l 2 0 0 9 t o J u n e 2 0 1 0 ,approximately 100 employees helped with watershed forest
pruning and thinning. On thinning days in winter, they spent
an hour climbing steep, snow-covered mountain paths to thin
forest areas densely populated with trees for about twohours. Pruning of lower branches and thinning out of weakertrees helps remaining trees grow more vigorously, and lets inthe wind and light necessary to foster a greater variety of
species in the understory and forest floor. As past of the new
employee training conducted in May 2010, employees helpedwith forest thinning under the guidance of a forest instructor.
We also held a nature observation tour (forest walking tour),aquatic wildlife observation tour, and Christmas wreath
making workshop for JGC Group employees and theirfamilies. Future plans include watershed forest development,such as the use of wood left over from thinning to makebenches, tables, and nature observation walking paths.

Watershed forest in the snow

New employees pruning trees

Environment Report 201030

IV Social Dimensions of Sustainability

JGC Group regards the development of employee business skills and the protection of occupational healthand safety as important social responsibilities.
As a good corporate citizen, we also contribute to building prosperous societies in developing countries bymeans of human resources cultivation and technology licensing.

31 JGC Corporation

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

Health and Safety Management Structure

Operation Steering Committee(chaired by the President)

The HSE Committee deliberates on important safety mattersfor the entire Group. It also reports to the Operation Steering
Committee, which is chaired by the President. Matters
decided by the HSE Committee are promptly implemented 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 Operation Steering Committee.

HSE Committee
Health and Safety
Management System

Safety Performance

Safety performance, accident incidence rate (%)(ILO method)

As a result of continuous implementation of health and safety
improvement measures group-wide, the incident rate (ILO
method/OSHA method) has remained at around 0.2/0.04 forthe past ten years, a lower level than the average incident rateof 1.4 for the construction industry as a whole.

2.5

Health Management Center,
Human Resources Dept.,
Corporate Planning& Administration Div.

Quality Assurance, Safety& Environment Office

Engineering Division
Project Division

HSE Systems
Department

Office HSE Group

2.0
1.5

Construction Department

Project teams

HSE Control Team

Project HSE managers

Other departments
and offices

Japanese
Construction Industry

1.0
0.5
0

JGC
’99

’00

’01

’02

’03

’04

’05

’06

’07

’08

’09

HSE Conference Hosted by the President
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 the conference,
where they discuss health and safety reinforcement measuresand prevention measures for common occupational
accidents. Through the HSE conference, JGC seeks toenhance the health and safety awareness of officers andemployees and demonstrate the leadership of the top
management in HSE matters.

JGC President Masahiko Yaegashi delivers the opening speech.

Personnel Development andCommunication with Employees
JGC’s sustained growth depends upon its people. 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 toautonomously develop their professional skills, while sharing the strategic direction of the company, and offering newvalue and contributions to customers and society. In subsequent years we have worked to firmly establish the system.

Development of Broader Visions at JGC Techno-College
In 2001, JGC founded the JGC Techno-College to sharein-house technology and engineering expertise more widely
within the company. Senior staff with long-term technicalexperience are requested and encouraged to act as
instructors at the college, to help pass on their knowledge toyounger employees. In addition to offering conventional
technical courses, the college invites prominent experts invarious fields to deliver lectures on recent notable subjects. In
2009, more than 1,700 employees of JGC attended JGC
Techno-College courses and lectures.

JGC Techno-College

Environment Report 201032

JGC Family Day (Bring-Your-Child-To-Work Day)
On August 24, 2009 JGC held JGC Family Day, to allow
children to observe their parents at work. Twenty-five children
from grades four to six participated in the event, the purposeof which is to develop children’s social awareness and foster
the concept of work and occupation. They exchanged
handmade business cards with JGC Chairman Keisuke
Takeuchi and employees, in addition to observing work andmeetings in the actual company office. We plan to hold thisevent again to encourage employees to maintain a healthy
work-life balance.

Employees and children participating in JGC Family Day

Exchanging greetings with Chairman
Takeuchi using handmade business cards

Corporate Social Responsibility
JGC Group is keenly aware of its social responsibility as a corporate citizen. We seek a harmonious coexistence withsociety and aspire to contribute to local communities and society at large through our business activities.

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 established by an initiative ofKing Abdullah to serve as a research base in advanced
technology fields including resources development, energy,
environmental studies, biological sciences, biotechnology,
applied mathematics, computer science and materials
science. As a KICP member, JGC is using its engineeringexperience to support the creation of next-generation
technology and the training of personnel who can make alarge contribution to both Saudi Arabia and to internationalsociety.
In fiscal 2010, JGC plans to participate in KICP’s
investigative research in water technology fields.

Acceptance of Internship Students
JGC accepts university students and graduate students asinterns. Each year we accept approximately 16 students fromuniversities in Japan, and give them an opportunity toexperience the actual work that goes on at JGC over theirsummer holiday. In 2009, 12 students from overseas
universities also participated in JGC’s internship program,
through a student exchange program.

33 JGC Corporation

JGC staff together with the staff and students of KAUST.

IV Social Dimensions of Sustainability

Participation in the “Children’s classroom for keeping rich sea”
JGC Group company Japan NUS applies its knowledge ofo c e a n o g r a p h y a n d m a r i n e o r g a n i s m s t o c h i l d re n ’s
environmental education with the “Children’s classroom forkeeping rich sea”, sponsored by the Beneficiaries of the Sea
Coalition. The fourth seminar was held on May 30 and 31,
2009, at the Minami Boso Municipal Taibusa-misakiChildren's Nature Center. Beneficiaries of the Sea Coalition isan organization that advocates for a socially conscious
Japanese fishing industry.
Japan NUS is always involved in this event, with six
researchers from the company participating in 2009.
Approximately sixty parents and children participated inbiological surveys, sweep netting, and beach clean-up atbeaches (tidal zones). They listened with interest as Japan
NUS researchers explained about microscopic observation,
marine life ecology and evolution, looking up the names offish, and the problem of marine debris. The seminar allows
children and their parents to learn about ocean ecology
through a variety of fun, hands-on activities.

Children enthusiastically collecting organisms

JGS-S Scholarship Foundation: Support for the Next Generation
Through the JGS-S Scholarship Foundation, JGC contributes
to the cultivation of scientists and the advancement ofscience and technology in Japan and overseas. The
f o u n d a t i o n w a s e s t a b l i s h e d i n M a rc h 1 9 6 8 w i t h a n
endowment by JGC founder Masao Saneyoshi. Its principal
undertakings include provision of educational loans toJapanese university and graduate school students majoring inscience and technology fields, grants to foreign students
studying in Japan, and research funding assistance for young
researchers.
Up to 2009, the foundation has provided educational loans to
a total of 13,005 students, educational grants to 4,607
students, and research funding assistance to 1,943
researchers. Annual disbursements have reached 324 million
yen.

2009 assistance recipientsJGC Social Welfare Foundation
The JGC Social Welfare Foundation provides welfare
equipment for persons with physical disabilities, as well as
funding for support groups and volunteer organizations forsenior citizens and persons with disabilities in Kanagawa
Prefecture. Since its establishment in March 1994, thefoundation has made 437 contributions to support groups
and 295 contributions to volunteer organizations. In fiscal
2009, the foundation made 38 contributions to support
groups, 18 contributions to volunteer organizations, and 2
contributions to other groups.

Environment Report 201034

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