Environmental & Social Report

2014

▲

6 JGC’s Basic CSR Policy

1▲

8 Relationships with Major Stakeholders▲

12 Risk Management

Ab out this E n viron m e n ta l & S oc ia l Re por t▲

9 Corporate Governance▲Introduction

3 Message from the Chairman▲

14 Operations of the JGC Group▲The purpose of this report is to present to ourstakeholders the CSR efforts of the JGC Group,with a focus on environmental conservation.
This year’s feature article covers our “Initiatives
Aimed at Realizing a Sustainable Society.” In
this context, we report on our efforts to addressenvironmental issues in China as well as detailsof global warming countermeasures.
In addition, we provide details of the Group’s
endeavors as they relate to three pillars of ourbusiness: “HSE—Becoming the Leading Global
Health, Safety, and the Environment Contractor;”“the Environment—the JGC Group’s
Environmental Technologies and Environmental
Conservation Activities;” and “Society—Activities
as a Corporate Citizen.”▲▲▲

34 Environmental Considerations Associated with Business Activities▲

41 Environmental Objectives, Targets, and Achievement
43 Environmental Report on Office Activities▲▲▲

Activities as a Corporate Citizen

Society

51 Personnel Development and Communication with Employees
53 Our Contributions to Society▲

45 Using JGC’s Environmental Technology to Solve Difficult Issues

49 Close-up On-site personnel training initiatives

Guidelines Used as a Reference inConnection with the Disclosure of
Non-Financial Information
ISO 26000, an international guidance
standard for social responsibility issued by theInternational Organization for Standardization● The Sustainability Reporting Guidelines
Version 3.0 (G3), an international guideline
concerning corporate sustainability reporting
issued by the Global Reporting Initiative (GRI)● The Environmental Reporting Guidelines 2007
issued by Japan’s Ministry of the Environment●

Scope of Reporting
In principle, this report covers consolidated
subsidiaries and affiliates accounted for by theequity method. However, details of activities
that fall outside the aforementioned scope ofreporting are clearly identified in each case.

▲

40 Continuous Improvement of Management Systems▲

38 Safety and Environmental Consideration in Investment Projects and Research & Development▲

The JGC Group’s Environmental Technologies
and Environmental Conservation Activities

The Environment

31 Close-up Environmental contributions in China
33 Environmental Policy

Editorial Policy▲

JGC aims to be the No. 1 contractor in HSE.

HSE

24 Close-up JGC Aims for Zero Incidents and Injuries
27 Occupational Health and Safety▲

20 Efforts to Mitigate the Effects Global Warning▲

Initiatives at the JGC Group Aimed atRealizing a Sustainable Society

Feature Article

17 Efforts to Address China’s Environmental Problems

Publication ofThis Issue

Next Scheduled
Publication

August 2014

August 2015

Reporting Period

PublisherThis report is compiled principally on the basis of data for fiscal
2013 (from April 1, 2013 to March 31, 2014). Important matters(those regarded as highly significant) concerning activities
outside the reporting period (up to July, 2014) are also included
within the scope of this report.

Corporate Administrative & Financial Affairs Division
Public Relations & Investor Relations Department/Corporate
Administration Department

Quality Assurance, Safety & Environment Office
Contact telephone number: +81-45-682-8026
JGC website URL: http://www.jgc.com

Introduction

2

A bo u t J GC

The JGC G rou p

Feature Article

Employees (approx.):Name:

JGC Corporation

JGC: 2,200 persons

10,000

Domestic EPC Affiliates: 3,000 persons

persons (as of March 2014)

Overseas EPC Affiliates: 4,800 persons

Locations:

Total Engineering Business

HSE

Yokohama World Operations Center

Research and Development Center

2-3-1 Minato Mirai, Nishi-ku, Yokohama-shi, Kanagawa

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

Tokyo Corporate Office

Domestic Office2-2-1 Otemachi, Chiyoda-ku, TokyoOsaka

MM Park Building Office

Overseas Offices

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

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

Kamiooka Office

Overseas Affiliates

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

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

The Environment

Consolidated Net Sales (2009~2013)(Billions of yen)0

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

1,000

2,000

(EPC Business)

Catalyst and Fine Chemicals BusinessJGC

JGC Catalysts & Chemicals

JGC Plant Innovation

Nikki-Universal

JGC Philippines

Japan Fine Ceramic

3,000

4,000

5,000

6,000

2013

7,000
6,758

2012

6,246

2011

5,569

Society

2009

4,472
4,142

Net Sales by Region (2013)

Oil and Gas Development 23.4%
Petroleum Refining 8.2%

Japan 13.0%

LNG 47.7%
Petrochemicals and Chemicals 5.6%
Power Generation/Nuclear Power/
New Energy 2.9%
Living and General Production 2.8%

2010

JGC Information Systems
Japan NUS
JGC Energy Development andothersJGC Gulf International andothersNet Sales by Industry (2013)

Other Businesses(IT and Consulting Businesses)

Environmental Protection,
Social Development and IT 2.0%
Others 1.9%
Catalyst and Fine Chemicals 5.5%

Southeast Asia 19.0%
Net Sales

The Middle East 21.2%

675.8

Africa 6.5%

billion yen

Oceania 31.9%
Others 8.4%

Net Sales

675.8

billion yen

Introduction

3

M e ssa g e from t h e Ch airman

Feature Article
HSE

Channeling our engineering
capabilities, a sustainable

The Environmentsociety is well within our grasp.

SocietyIntroduction

4

M e ssa g e from t h e Ch airman

Feature Article
HSE
The Environment

A world in need of greater energy
reserves and resources

Is it possible to balance growth in energy consumption
with efforts to secure a sustainable society?

The world’s population is rapidly increasing. In
2011, the number of people inhabiting the planet
totaled seven billion. This figure is projected tosurpass nine billion in 2050. Led by such nations
as China and India, countries with substantial
populations, the emerging markets that make up
the Group of 20, including Southeast Asia, theMiddle East and Latin America, are experiencing
remarkable growth. As a consequence, demandfor energy continues to expand at a robust
pace. According to the International Energy
Agency, investments aimed at increasing the
supply of energy totaled US$1.6 trillion ( ¥164
trillion) in 2013. This was twice the investment
undertaken in 2000 after adjusting for inflation.

Against the backdrop of a rapid increase in
the world’s population, the global economy,
and in particular the economies of newly
emerging nations, is experiencing robust
growth. At the same time, greenhouse gases
emissions, attributable to the consumption offossil fuels, have resulted in a broad range ofclimate change issues which attract widespread
concern. In its fifth assessment report, covering
the period from 2013 to 2014, the United
Nations’ Intergovernmental Panel on Climate
Change has issued a warning that a greenhousegas-induced increase in the global temperatureof two or more degrees will lead to a serious
decline in food production. Despite these grave
concerns, Japan’s consumption of fossil fuels
for thermal electric power generation use are on
the rise, mainly the result of the suspension ofoperations at nuclear power plants. Greenhousegas emissions have subsequently increased
14% compared to levels recorded in 1990, withthis upward trend continuing unabated.
This raises the critical issue of our ability tobalance the need for a sustainable society withenergy consumption that increases with eachpassing year.

By geographic region, capital investment
has extended across the full gamut of energy
resources, from upstream fields including
petroleum and natural gas to downstream fields
in the Middle East. Conscious of export activity
to the Asia region, which remains the world’s
most prominent destination for LNG, projects
continue to progress throughout Southeast Asia.
In North America, multiple projects are currently
in the planning stage. These projects include
gas chemicals and LNG, which adopt affordable
shale gas a primary feedstock.
While there are indications of light at the endof the tunnel for both the United States and theEuropean economies, the global economy as awhole remains stagnant. Despite the uncertainty
surrounding a significant number of industries,
the energy field stands virtually alone in terms of
its brisk capital investment.

Society

The JGC Group remains committed toongoing steps aimed at resolving this issue
by leveraging its engineering expertise. These
efforts are consistent with the Group’s corephilosophy which emphasizes its mission to“contribute to the prosperity of the economy andsociety while protecting the global environment,
and aim for sustainable development as a
globally active company with its core business inengineering-based services.”
For example, engineering is an essential
process in the construction of facilities for the
production of liquefied natural gas (LNG), aform of clean energy, the effective utilization ofpreviously unused resources such as low-rankcoal, development of renewable energy such as
photovoltaic and solar thermal power, and theimplementation of systems for water and soil
purification, air pollution prevention, and energy
conservation. Moreover, in developing countries
with fast-growing economies, needs have
rapidly emerged for the creation of sustainable
cities that minimize impact on the environment
through the deployment of renewable energy
sources and highly efficient energy infrastructure.
With engineering technologies and project
management capabilities a necessity in thesefields, the JGC Group has undertaken a variety
of measures to address such needs.

Introduction

5

M e ssa g e from t h e Ch airman

Feature Article

Fiscal 2013 results

HSE
The Environment
Society

The “shale gas revolution” that emerged
throughout fiscal 2013, the fiscal year ended
March 31, 2014, triggered the creation ofa new market. As a result, natural gas fielddevelopment projects sprang up, particularly
in North America, but also across the rest of
the world. With the growing awareness ofenvironmental concerns, natural gas, whichemits lower levels of greenhouse gases thanother fossil fuels, has attracted considerable
interest since the second half of the 1990s. JGC
is a contractor for major LNG plant construction
projects in Canada and Russia. JGC was also
the first Japanese company to be awarded acontract for the construction of an offshore LNG
plant in Malaysia. Through this project, we aretaking up the extremely difficult challenge ofextracting natural gas from depths of more than
1,000 meters below the ocean’s surface.
From a greenhouse gas reduction
perspective, carbon dioxide capture andstorage, which is the topic of our special featurein this report, is drawing attention as a mediumto-long-term greenhouse gas countermeasure.
JGC received an order for the construction of
a Carbon Dioxide Capture and Storage (CCS)
demonstration plant in Japan from Japan CCS
Co., Ltd. Work is currently underway.

The future to which engineering aspires
In addition, we received an order for the
upgrade of large-scale oil refineries in Kuwait.
As a part of the work to be undertaken, JGC
will provide assistance in the construction ofsophisticated treatment facilities that will help
meet the automobile exhaust gas standards ofEurope. As the oil refinery plan takes shape andefforts are channeled toward the productionof environment-friendly fuel products, we will
respond flexibly to all requirements.
In the enterprise investment business, JGC
has entered into collaborative arrangements with
two leading banks in Japan and China. Under
this arrangement, we have provided financing
to help establish a fund in support of theenergy saving and environmental conservation
activities of venture companies. (Please see
our special feature for further details). Throughthis investment, JGC will draw on our expertisein energy-saving environmental technologies
and offer our support in the development ofbusinesses that will uncover technologies ofthe future. In this manner, we will contribute tosolving China’s environmental issues.

The energy industry is a core JGC businessfield. This industry is closely linked to such
issues as greenhouse gas emissions andenvironmental conservation. It is for this very
reason that JGC is committed to continuously
taking up the challenge of realizing a sustainable
society. Moving forward, JGC will work tirelessly
to develop technologies that ensure theeffective use of limited resources, promote thedevelopment and widespread use of renewableenergy, and enhance social infrastructure. At thesame time, we will look to resolve issues that
confront the earth both today and tomorrow, andwill address the variety of environmental issues
associated with the growing demand for energy
and the increase in the world’s population.

Chairman and Representative Director
JGC Corporation

Masayuki SatoIntroduction

6

J G C ’s Ba s ic CSR Policy
Addressing International Standards
Basic CSR PolicyCore Social Responsibility Issues

IssuesSpecific Initiatives● Ensure fair marketing, information disclosure, and contractual

We shall conduct our business with a full understanding of the importance ofquality, safety, and the environment.

business practice● Ensure consumer health and safety

Consumer (Customer)
Related Issues● Promote sustainable consumption● Provide services and support to consumers,

address complaints, and resolve conflicts● Protect consumer data and privacy

Become the leading global
health, safety, and the environment (HSE) contractor● Undertake education regarding access to essential services

P.23

and enhance awareness

HSE
The Environment

45● Alleviate and adapt to issues relating to climate change● Protect the environment and biodiversity while

restoring natural ecosystems

Engage in environmental
technology development
and environmental protection activities

P.30

Engage in fair and honest business activities
We shall comply with legal requirements inside and outside the country, andconduct our business in a fair and sincere manner following a proper governance system.

Ensure proper information disclosure to
stakeholders

Organizational governanceand fair business practice-related issues● Promote organizational governance● Prevent corruption● Pursue responsible political involvement● Engage in fair competition● Promote social responsibility across the value chain● Respect property rights

Pursue sound relationships
between the JGC Group’sbusinesses, society, and theenvironment

We shall disclose necessary information to our stakeholders in a timely andappropriate manner.

Implement human resource measures thatdevelop the abilities and vitality of employees
We shall endeavor to maintain and further improve fair human resource management to develop the ability and vitality of our employees based on mutual
trust and responsibility.

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

P.01
Respect human rights andengage in proper labor
practices

Participate in community
events and contribute to
the growth and development of local communities

ISO26000● Promote employment and engage in proper employment

activities● Ensure fair labor conditions and social protection● Promote dialog with society● Ensure labor health and safety● Conduct workplace human resource education and training● Participate in community events

Engage in activities as acorporate citizen

SocietySociety6● Ensure the sustainable use of resources

Introduction

3

We shall provide our social contributions by drawing on the strengths of the
JGC Group● Prevent pollution

Environment-Related
IssuesThe
Environment

2

Contribute to society by drawing on theGroup’s experience and technologies

HSE

Feature Article

1

Maintain and enhance quality, safety, and theenvironment● Engage in educational and cultural pursuits● Create employment opportunities and develop skills● Develop technologies and promote access● Create prosperity and income● Promote sound health● Undertake social investment

ISO 26000 is an international guidance social responsibility standard for corporate and other organizations issued by theInternational Organization for Standardization in November 2010. Over and above the stringent eye being cast on organizations by a variety of stakeholders (vested interests), this standard is designed to help enhance an organization’s performance with respect to its relationship with society.

P.48

Introduction

7

J G C ’s Ba s ic CSR Policy

Basic CSR Policy

Feature Article

1
2

Maintain and enhance quality, safety, and theenvironment
We shall conduct our business with a full understanding of the importance ofquality, safety, and the environment.

Contribute to society by drawing on theGroup’s experience and technologies
We shall provide our social contributions by drawing on the strengths of the
JGC Group

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

The JGC Group’s diverse global business activities range from comprehensive engineering services to catalysts and fine chemicals, andwe aim to put the unique technologies and experiences we have gained through our involvement in such business fields to full use in
our social contribution activities. Details of JGC’s policy regarding our social contributions are described in the “JGC Social Contributions
Policy.” The four target areas for our social contributions are Environment, Education, Science and Technology, and Community.

HSE

3

The Environment

45Society

6

Engage in fair and honest business activities
We shall comply with legal requirements inside and outside the country, andconduct our business in a fair and sincere manner following a proper governance system.

Ensure proper information disclosure to
stakeholders
We shall disclose necessary information to our stakeholders in a timely andappropriate manner.

Implement human resource measures thatdevelop the abilities and vitality of employees
We shall endeavor to maintain and further improve fair human resource management to develop the ability and vitality of our employees based on mutual
trust and responsibility.

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

The JGC Group is profoundly conscious that the maintenance of compliance and an efficient internal governance system areessential for the sustained well-being of any organization. Hence, we shall continue to maintain these elements as we respond to therequirements from society and the trends of the times. All management and employees shall follow legal and social rules based onhigh ethical standards.

The JGC Group is a listed company, and we take it as our duty to disclose information to the market in a timely and appropriatemanner. We shall proactively provide important information in terms of the business environment and social situation, information that
may have an impact on stakeholders, helpful information to deepen the understanding of the JGC Group as well as fulfilling our duty of
information disclosure required by laws and regulations such as the Companies Act and the Financial Instruments and Exchange Law.
The JGC Group’s CSR Policy describes “fair human resource management to develop the ability and vitality of our employees.”
We shall be fully guided by the principle that the growth and development of the company occurs reciprocally with the growthand development of its employees. Based on this sense of mutual trust and responsibility, each employee shall contribute to thecompany as a professional, and the company shall provide opportunities for the empowerment of employees and for them to show
their ability and vitality.

The JGC Group shall promote CSR awareness throughout its organization, from management to employees. We shall carefully listen
to the voices of stakeholders and continue making optimal efforts to respond to social needs and trends in the business environment.

Introduction

8

Re l a ti o n s h ips w it h Major St ak ehold er s

The JGC Group engages in business while cooperating with a variety of stakeholders.
Feature Article

Here, we introduce the major stakeholders of the JGC Group, and describe ourrelationship with them.

Presenting our results and expanding
the scope of IR information disclosure!-

JGC’s homepage
The Company undertakes steps to disclose a wide range ofMajor Stakeholder

Core Relationship
JGC strives for open and fair transactions with its business partners, which include vendors that supply materials and equipment, as well as
subcontractors involved in plant construction work.

HSE

Suppliers andBusiness Partners

All companies that desire to work with the JGC Group are given an equal opportunity to join as business partners. Daily procurement
activities are done on an in-house custom web-based system called the JGC e-Procurement Solution System (J-PLUS), which reduces theamount of paper used in transactions and provides quick and efficient communications.
Information regarding procurement is also available on JGC’s website.

information for the benefit of stakeholders via its homepage. In
addition to company information as well as details of the Group’sbusiness activities, background data on the lead-up to orders
received, information regarding various episodes during the
conduct of individual projects, and photographs in connection
the construction of plants and investments undertaken are
posted on the Company’s website. Visitors to our homepage
can access information through a variety of categories including
individual regions, fields, and businesses.
Every effort is made to provide investors with a wealth of IR
information over more than 20 categories. This includes details

Customers

The purpose of our business is to contribute to the development of our clients’ businesses.

of the Company’s new medium-term management plan, financial

Sales managers are the main point of contact for communicating with our clients.

information, and webcasts of briefings of JGC’s financial results.

In countries and regions where JGC operates, we communicate with our clients with due respect for the cultures and traditions of thecountry involved, while aiming to contribute to business development.
JGC contributes to continuing development in the countries in which it does business, establishing local companies and hiring and

The Environment

training local people.

JGC’s homepage brings together virtually all of the Company’s published materials from a journal that provides an introduction to proprietary technologies through CSR and HSE-relatedmaterials to the Company brochure.
The homepage underwent a complete design renewal in2013 further enhancing access as well as navigation. We look

Shareholders andInvestors

In addition to disclosing information to shareholders and investors in accordance with statutory disclosure systems based on the Financial

forward to stakeholders visiting our site and ask for their contin-

Instruments and Exchange Act, JGC discloses without delay important corporate information via its Public Relations & Investor Relations

ued support and understanding.

Department in accordance with rules for timely disclosure systems at financial instruments exchanges.
JGC also provides opportunities for face-to-face discussion at shareholder meetings, results briefings and investor relations meetings.
As a corporate citizen, JGC aims to exist in harmony with local communities while being well aware of its social responsibilities.

Local Communities /NGO and NPO

In business development, we value input from local communities where we plan to construct plants and invest in operations, andreflect this feedback in our projects.

Society

Our employees also engage in activities that give back to the community.
JGC provides employees with opportunities to enhance their skills to world-class levels as professionals in the engineering business.

Employees

In our personnel evaluation system, we also create opportunities for dialogue between managers and their employees to clarify the
expectations of both parties. The JGC Council, which represents employees, also periodically holds meetings with management.

Introduction

9

C o r p o r a te Go ver n an ce

Corporate GovernanceFeature Article

JGC is a company with both a board of directors and a board of auditors. The Company has
also taken steps during the current year to upgrade and expand its executive officer system.
Every effort is being made to further bolster the
executive function and to ensure that operating decisions are made on a timely and flexible

HSE

Corporate Governance

The Environment

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

<Board of Directors>● The Board of Directors is headed by the Chairpersonof the Board of Directors and comprises 10 board
members, including outside board members, and fivecorporate auditors, including three outside corporate
auditors. In principle, the Board of Directors meets twicea month.
<Board of Auditors>● The Board of Auditors comprises five corporate auditors,
including three outside corporate auditors. In principle,
the Board of Auditors meets once a month.
<Director and Executive Officer Committee>
The Director and Executive Officer Committee in principle meets once a month for the purpose of sharing
information regarding the status of management policies
and reporting/confirming the status of operations.
● The Chairperson of the Board of Directors heads thiscommittee, which is composed of directors, executive
officers, and corporate auditors.
●

Society<Management Strategy Committee>
The Management Strategy Committee in principle meetsonce a month to deliberate on important matters for JGC
and the JGC Group relating to management strategy.
● The Chairperson Emeritus of the JGC Group heads thiscommittee, which is comprised of directors, corporate
auditors, and other members.
●

basis. In order to reinforce the oversight function
and to enhance management transparency,
JGC has appointed an outside director and outside corporate auditors who meet all necessary
requirements as independent officers. Details of
the Company’s current corporate governanceframework are p resented as follows.

<Operations Steering Committee>
The Operations Steering Committee in principle meets
twice a month to deliberate on matters for JGC and the
JGC Group relating to the execution of operations.
● Chaired by the president, this committee includes corporate auditors and other individuals elected by the president.
●<Nominating Committee and Assessment Committee>
The Nominating Committee and the Assessment
Committee each meet in principle once a year for the
purpose of enhancing fairness and transparency in theselection of executive personnel and in the determination of compensation issues.

●<Independent Auditor>
The certified public accountants who audit JGC’s
accounts are Kazutoshi Isogai, Yoshihisa Uchida, andYoshinori Saito of KPMG AZSA LLC. Five other CPAs andnine other individuals assist in carrying out these audits.

●

Introduction

10

C o r p o r a te Go ver n an ce

Internal Control System
Feature Article

Corporate Governance Systemdenotes “Direct” and “Report”

General Meeting of Shareholders

Disclose/
Explain

HSE

Disclose/
Explain

Disclose/
Explain

Disclose/
ExplainBoard of Auditors

Independent Auditor

Audit

Audit

Nominating Committee
Board of Directors
Assessment Committee

The Environment

Internal Auditing OfficeDirector and Executive Officer Committee
Legal & Compliance Office
Management Strategy Committee
Risk Management Committee
Operations Steering Committee
Security Management OfficeSocietyBusiness Divisions/Sections

Subsidiaries and Affiliates

The basic policy concerning JGC’s internal
control system was determined at the Board of
Directors’ meeting held on March 27, 2006. In
the ensuing period, this policy has been updated and revised as appropriate.
For its internal control, JGC has establishedan Internal Auditing Office that verifies, evaluates, and enhances the efficiency of the internal
control systems of JGC and the JGC Group.
The Internal Auditing Office also conducts
individual audits when appropriate. In addition,
JGC’s management and executive accountability system has been clarified, with Job Authority
Regulations set forth to define the duties andauthorities of each position. Group Management
Regulations instituted for Group companies arealso applied.

Introduction

11

C o r p o r a te Go ver n an ce

ComplianceBusiness Continuity Plan (BCP)

Feature Article

Overseas Group Companies

HSE

In order to conduct sustainable businessdevelopment as a member of the international
community, JGC believes that it is essential foreach and every employee to conduct businessin conformity with corporate ethical standards,
as well as to observe local laws and regulations
not only in Japan but also overseas. To this end,
JGC has formulated a Corporate Philosophy forthe entire JGC Group, a document on Principles
of Business Conduct, a Code of Conduct manual, regulations to prevent incidence of bribery,
and related rules. JGC also educates and trains
employees on various laws and regulations, aspart of its efforts to raise employees’ complianceawareness.
JGC recognizes that the bar is being raisedeven higher in terms of the level of compliance ex-pected of global corporations. To respond to thedemands of the international community, we have
expanded our compliance division and strengthened our internal compliance system. To this end,
we have put in place and continue to implement
compliance programs which employ an ongoing
monitoring and improvement process.
In addition, recognizing the importance of
establishing a compliance system that encompasses Group companies inside and outside
Japan, JGC maintains close coordination withthe persons responsible for compliance in eachcompany. Steps are taken to ensure Groupwide consistency and integrity by establishingand promoting compliance programs that continuously focus on monitoring and improvement.

Working in unison, the JGC Group is endeavoring to put in(1) Early confirmation of employee safety

Center and each overseas Group company.

In 2004, in advance of many other companies, JGC introduced

Singapore in March 2014. This conference was attended by atotal of 16 participants and comprised the persons responsible
for compliance at the Company’s Yokohama World Operations
The Company’s president, Koichi Kawana, kicked off

the scope of the system has been extended to include notstrengthen compliance. Persons responsible for compliance then

only regular employees, but also temporary staff and contract

gave presentations on the respective status of compliance pro-

employees who work at JGC. In addition, for a quick confirma-

grams over the past year as well as results of risk assessment

tion of employee safety, an emergency liaison network has been

as well as education and training activities. These presentations

established as a backup in each department.

were followed by a Q&A session and vigorous debate. The con-(2) Securing of ICT infrastructure

The Environment

security management systems. Server operation and management, user authentication management, Internet operation andmanagement including e-mail, management of communications
infrastructure such as LAN/WAN, and other components of
our IT infrastructure are tested through emergency drills every
year, and they benefit from feedback to constantly evolve while

Society

Relations & Investor Relations Department. JGC
also proactively discloses corporate information
falling outside the scope of such regulations andsystem through news organizations and othermedia, in cases where it determines that disclosure is desirable.

these endeavors, a Group Compliance Conference was held in

the conference via a video message reconfirming the need toto obtain ISO certification (ISO 27001) in 2006 for its information

JGC discloses information in accordance withthe statutory disclosure system, based on theJapanese Financial Instruments and Exchange
Law. In addition, in accordance with the timely
disclosure system at Japanese financial instruments exchanges, JGC promptly discloses important company information through its Public

place a sound compliance structure and systems. As a part ofa Safety Confirmation System for its employees. At present,

JGC was the first company in the Japanese engineering industry

Disclosing Company Information

Group Compliance
Conference

JGC does not have production facilities suchas manufacturing plants, and it conducts its
business with employees, a sophisticated ICT
infrastructure, and offices. Consequently, JGC’s
Business Continuity Plan (BCP) consists of threepillars: (1) Early confirmation of employee safety,(2) securing of ICT infrastructure, and (3) securing of office safety.

supporting our business.
(3) Securing of office safety
In 1997, JGC transferred its office to its current location, a
new building located in the Minato Mirai district of Yokohama.
Designed to meet earthquake-resistant specifications exceeding
the new earthquake resistance standards under the revised
Building Standards Act, the building suffered almost no
damage from the tremors of the Great East Japan Earthquake.
Stockpiles of food and supplies are also kept on hand at all
times, to provide additional support and security for workers at
the Yokohama office in the event of an emergency.

ference was therefore an excellent opportunity for participants togain an insight into where their programs could be improved aswell as a wellspring for future initiatives.
Looking ahead, energies will be channeled toward building
a robust compliance structure across the Group as a wholewith the Group continuing to push forward measures aimed atensuring thoroughgoing compliance.

Introduction

12

Ri sk M a nag emen t

OfficeSecurity Management Office
Feature Article

JGC employees and executives make approximately 5,100 overseas business trips per
year, and approximately 650 JGC personnel
are stationed overseas at any one time, in 30
different countries. Therefore, JGC has established Security Management Office available
on a 24-7 basis to cope immediately with any
risks employees stationed overseas might face,

HSE

Risk Management

including natural disasters, acts of terrorism,
war, pandemics, crimes, riots, traffic accidents,
and illness.
Security Management Office has two operating patterns: Crisis Management Operations
and Preventive Operations, details of which arepresented as follows.

(1) Crisis Management Operations
Security Management Office takes the lead in implementing a range of measures based on the risk level in a given
area, according to the Basic Rules for Risk Management. *Examples: business trip cancellation, temporary evacuation, etc.
(2) Preventive Operations

The Environment
Society1

2

3

Collect, analyze and communicate risk information:issue situation-specificreminders and warnings

Update standard documentation such as crisis
response manuals andsafety standards

Survey, analyze and evaluate the levels of public
safety, potential dangers
and threats as well as risks
and take steps to put inplace countermeasures on
an individual project basis

4

5

6

Monitor each of theaforementioned items andprovide guidance to ensure
continuous improvement

Provide education andtraining on crisis
management

Make all necessary adjustment to ensure a pointof contact with relatedorganizations (government
agencies, outside consultants, etc.)

Introduction

13

Ri sk M a nag emen t

Information Security Management
Feature Article
HSE
The Environment

Handling large volumes of information (specification documents, drawings and reports) ispart and parcel of EPC operations. Much of thisinformation contains confidential data received
from customers and business partners as wellas materials regarding proprietary know-how.
As an engineering contractor, it is a matterof course that we work to ensure that theseinformation assets are properly protected.
Meanwhile, it is equally important that theCompany’s employees, customers and business
partners have safe and ready access to essential information in order to ensure that projects
scattered throughout the world are carried out
smoothly.
To this end, we actively undertake information investments which include security
countermeasures. These investments help toensure that information security is maintained at
an appropriate level that satisfies the needs ofcustomer and business partners.

Group-wide information security promotion structure
The JGC Group looks closely at the ISO/IEC 27001 international standard when maintaining its information security
management systems. We draw up rules and regulations
for each project and put in place the necessary operating
structures based on major differences in customer requirements, the operating environment and conditions confronting the Company. From both the technological and humanresource perspectives, we take steps to improve the qualityof the information security.
Acquiring information system platform certification
The Company’s Corporate Administrative & Financial Affairs
Division, which is responsible for the planning, construction,
operation and management of IT infrastructure, Corporate
IT Office and the responsible department of JGC Information Systems Co., Ltd. acquired ISO/IEC 27001 certificationin 2006 as a part of effort to ensure the stable operation of
information system platforms. Certification entails continuous screening on an annual basis and renewed certification
every three years. Plans are in place for continuous screening to be undertaken in July 2014.

SocietyIntroduction

14

O pe r a ti o n s o f t h e JGC G ro u p

Feature Article

Operations of the JGC GroupHSE
The Environment

Through our engineering business, the JGC Group is involved in theconstruction of oil, natural gas and other energy-related plants,
petrochemical plants, and infrastructure for pharmaceutical, medical
and environmental-related facilities in more than 80 countries aroundthe world.
In recent years, JGC has been developing enterprise investment
and planning & management services businesses byleveraging our accumulated experience in plant construction.
In addition, mainly through our subsidiaries, JGC produces andsells catalysts used in fields related to oil refining, petrochemicals andthe environment, as well as fine chemical products for use in theinformation and electronics materials fields.
The JGC Group is well aware of our responsibilities to society, andtakes due consideration of these important responsibilities in our business development activities.
Below, we introduce the operations of the JGC Group and our relationship with society and the environment.

Oil, gas and resource
development

Petroleum refining

LNG & GTL

Petrochemicals andgas chemicals

Pharmaceuticals andresearch facilities

Medical and welfare facilities

Non-ferrous metal refining

Nuclear energy and power
generation

EPC Business

Environmental catalysts
Power generation andwater

Catalysts andFine Products Business, etc.

Renewable energy

Urban
development

Society

Regional
development
Environment

Resource development

Business Operations andInvestments

LCD materials

Introduction

15

O pe r a ti o n s o f t h e JGC G ro u p

Total Engineering Business (EPC Business)
Feature Article
HSE

Through the process of engineering, the JGCGroup provides engineering, procurement andconstruction (EPC) services for industrial plants
and social infrastructure commissioned by its
clients.
To date, the JGC Group has participatedin more than 20,000 such plant engineering
projects in 80 countries worldwide.
After getting our start constructing oil
refineries in Japan, JGC began to develop
business overseas in the 1960s, andaccumulated experience around the world in
various fields ranging from the constructionof oil refineries and petrochemical plants tonatural gas processing plants and the moreenvironmentally friendly liquefied natural gas(LNG) plants. In the field of LNG in particular,
JGC has been involved in plant construction
projects that account for 30% of global LNG
production volume.
Using the know-how and experience wehave accumulated through the constructionof these plants, JGC has also branched out
into the construction of pharmaceutical plants,
hospitals and other large-scale facilities.
The JGC Group’s engineering businesshelps to shore up the foundation of society
and the economy through the constructionof vital environmental and industrial facilities,
including oil, gas and other energy-related
plants, as well as plants for refining non-ferrous
metals and producing chemical products andpharmaceuticals. Amid rising energy demand
from a growing population and rapid economic
development in emerging countries, we hopethat the JGC Group will play an increasingly
important role in society and the economy.

Take, for example, a business plan toconstruct a new renewable energy power
plant. The JGC Group not only commits ourown capital to the business plan, but alsouses the expertise we have accumulated in
the EPC business to manage the constructionof the required facilities, and then takes total
responsibility for operating and maintaining
the business after construction is completed.
Our involvement extends to feasibility studies
and consulting services for tax, legal andfinancing issues.
In the enterprise investment business,
JGC does not necessarily construct ourown plants, and instead chooses the best
construction company based on our insideknowledge of the EPC business. JGC
manages and advances construction as
the business owner, and after construction
finishes, takes full responsibility for the reliablesupply of electricity in the required amount.
Going beyond pure business investment,
the JGC Group takes control of all aspectsof business administration, from thedevelopment and construction of businesses
to plant maintenance and operations.

Business Operations and Investments
The Environment
Society

The JGC Group’s enterprise investment
business, which is currently focused on power
generation, water and renewable energy
operations, relies on the relationships of trust
we have built with clients around the world, as
well as the technologies and expertise we havegained through our work in the EPC business.
The purpose of our EPC business is toconstruct plants commissioned by companies
planning and launching new businesses,
whereas the purpose of our enterpriseinvestment business is to invest in companies
that are owned or partially owned by JGC, andwhose management we can direct on our own.

Catalysts and Fine Products
Business, etc.
Mainly through our subsidiaries, the JGC Group
produces and sells catalysts used in fields
related to oil refining, petrochemicals and theenvironment, as well as fine products such as
hard disk abrasives and positive electrodes forlithium-ion rechargeable batteries.
JGC also offers environmental consulting
services that propose measures to maintain,
manage and improve the environmental
sustainability of business activities likely to havean impact on the environment.

Introduction

Special Feature
17 Efforts to Address China’s Environmental Problems▲

20 Efforts to Mitigate the Effects Global Warning▲

Feature Article

Initiatives at the JGC Group Aimed atRealizing a Sustainable Society

HSE
The Environment
Society

The world population reached 7 billion people in 2011, and is projected to increase to 9 billion
people by 2050.
Rapid growth in the populations of emerging countries alongside economic expansion will
likely lead to a major increase in demand for food, water and energy. Meanwhile, global warming and environmental pollution as a result of the massive consumption of energy are becoming
problems on a wide level. In order to address both growing demand for energy and the pressing
need to reduce environmental impact, a variety of efforts have picked up momentum in countries
around the world to promote the use of renewable energy and move toward a sustainable society.
JGC Group has taken initiatives to build up renewable energy businesses and help realize asustainable society by drawing on our engineering technology and the project management
expertise we have garnered through our involvement in numerous plant EPC projects spanningmany decades. In this special feature, we introduce some of these initiatives.

16

Feature Article
HSE
The Environment
Society

Efforts to Address China’s
Environmental Problems

Introduction

17

Feature Article No.1

Air Pollution, Water Shortages,
Waste Disposal . . .
China’s environmental problems are
becoming more serious.
Saving energy and environmental protection were incorporated as the Chinese government’s priority policy areas in its 12th Five-Year Plan from 2011. The 2007 announcementfrom both the Japanese and Chinese governments, “The Joint Statement from the Japanese Government and the Government of the People’s Republic of China on the Further
Enhancement of Cooperation for Environmental Protection,” had confirmed a strengthening of cooperation in the fields of energy and environmental protection. Under suchcircumstances, JGC aimed to offer financial support to companies in China involved inenergy saving or environmental protection and was involved in the establishment of theJapan-China Energy Efficiency and Environment Fund to that end. In partnership with
JGC were the Japan Bank for International Cooperation (JIBC), Mizuho Bank, Ltd., Tsukishima Kikai Co., Ltd., The Export-Import Bank of China, Hangzhou City Industry Development Investment Co. Ltd., and Zhejiang Communications & Media Holdings Group Ltd.
Leveraging its engineering technologies in energy saving and the environment as wellas its knowledge of those fields in China, JGC will contribute to the solving of the environmental problems in China by supporting the realization of high-quality projects that arise
from cooperation between companies in both countries through the investments made inthis fund.

Introduction

18
Establishment of Japan-China Energy Efficiency and Environment Fund:

Initiatives at the JGC Group Aimed atRealizing a Sustainable Society

Feature Article

Pooling Business Investments toContribute to Solving ThatCountry’s Problems
The fund memorandum of understanding was signed in the presence of the then JapanesePrime Minister Yoshihiko Noda and Chinese Premier Wen Jiabao after their summit meetingin Beijing in December 2011. The agreement was signed at the Seventh Japan-China Energy
Conservation Forum that was held in Tokyo in August the following year. However, due to theHSE

ku Islands’ nationalization issue, it was not until November 2013 that the fund was finally fullyGroup Leader
New Business Group
Business Development Department

established. That same month, a ceremony was held in Hangzhou, the fund’s place of incorpo-

No.3 Business Divisionsubsequent heightened tensions between the respective governments triggered by the Senka-

ration. Those in attendance at the ceremony, where the high expectations for the fund could befelt, included not only people involved in the fund but also invited guests from China’s National
Development and Reform Commission, the Ministry of Commerce of the People’s Republic ofChina and the Hangzhou Shangcheng District local government as well as Minister-Counselor
Masaaki Kaizuka from the Embassy of Japan and media representatives. The fund’s mission
could be strongly felt in the words of one Chinese guest: “Japan’s environmental technologies
are like China’s treasures. They will bring happiness to the Chinese people.” Impressions fromthe forum were aired by the state-owned broadcaster Chinese Central TV (CCTV), resulting in
JGC’s Beijing office receiving a number of enquiries.

The Environment

I would like to give an overview of the fund. The total amount of cash held in the fundamounts to one billion yuan (equivalent to approximately ¥16.4 billion), investors from the Japanese and Chinese sides each contributing 500 million yuan. The period of operation is eight
years, the four-year first half being deemed to be the investment period, the second half theperiod in which investments are to be recovered. Investment targets are Chinese companies
active in the fields of energy saving and the environment, but other targets are local subsidiaries of companies from outside China, including Japanese corporations, and energy-saving
and environmental projects that are undertaken in China. The main concept behind the fund is
the introduction of Japanese environmental technologies, for which investments in appropriate

Societycompanies and businesses are positioned as “priority investment areas.” It is prescribed in thefund’s provisions that more than 20% of the investment amount will be retained, and that morethan 50% is regarded as the target. Energy saving and the environment cover a wide variety ofareas, but it was decided for the time being to narrow these areas down to three—namely, air
pollution (PM2.5) measures, water treatment, and solid waste disposal—to respond to the mostpressing issues facing China.

Hiroaki Nakamura

Introduction

19

JGC is not a financial institution,
so why are you injecting capital
into a fund business?
Initiatives at the JGC Group Aimed atRealizing a Sustainable Society

Feature Article

With the exception of JGC and Tsukishima Kikai, the investors in the fund are financial
institutions. The role expected of business corporations JGC and Tsukishima Kikai is tocarry out technical assessments of candidates for investment and to introduce Japanese
corporations that possess energy-saving or environmental technologies.
Last year, when a party of Chinese partners visited Japan, they were shown the JGCGroup’s catalyst technologies, including on a factory visit, and were presented with information on the environmental projects in which JGC is involved. The visitors expressed agreat deal of interest in both, and we received requests that they be kept informed about

HSE

technologies and projects on an ongoing basis. Furthermore, JGC is enterprisingly promoting business development in China. For example, we are fully leveraging the network
assembled by the fund for such tasks as examining collaborations with companies thatare potential recipients of investment, which we would like to lead to the creation of new
business in China.
The development of investment recipients is primarily being conducted by partner fundmanagement companies, and their information-gathering capabilities, network building,and investment project negotiation capabilities are a real eye-opener. We would like toactively exchange information and search for opportunities to create businesses with them.

The Environment

In conclusion . . .

Society

I consider JGC’s project management capabilities, accumulated in the course of EPC
contracts, to be indispensable in business creation and management.
More than an EPC contract, we take it as our mission to conduct business that willcontribute to solving China’s problems and would like to work toward business creation.

Feature Article

Separate
Recover

Transport

Separation and recovery
of CO2 from large-scale
emissions

Transportation ofrecovered CO2 toinjection facilities(pipeline or tank trucks/lorries)

Injection
Storage
CO2 injection andunderground storage(depth: 1,000 to 3,000)

HSE
The Environment
Society

Efforts to Mitigate
the Effects Global Warning

Introduction

20

Feature Article No.2

In recent years, as global warming has become a serious problem
due to the continuing increase in greenhouse gases in theatmosphere, carbon dioxide capture and storage (CCS) techniques
have been attracting interest across the world as a measure to
mitigate the effects of global warming over the medium to long term.
The International Energy Agency (IEA) is expecting to bring 100 CCS projects to fruition
across the world by 2010 and 850 projects by 2030. Under these projects, CO2 is prevented from being discharged into the atmosphere and stored in the ground. Expectations arehigh that CCS will prove to be a trump card in solving the problems of climate change andincreasing energy demand. Amid such expectations, in Japan the Ministry of Economy,
Trade and Industry (METI) is moving ahead with the country’s first large-scale demonstration project of the total system under the Carbon Dioxide Reduction Technology Demonstration Project. The aim is for CCS technology to have been commercialized (at aroundthe 1 million tons per annum level) under this demonstration project by around 2020.
The city of Tomakomai in Hokkaido Prefecture has been selected as the demonstration
project site, and plans call for the demonstration to be consistently carried out, separating and capturing the CO2 (more than 100,000 tons per annum) from the gas in which it iscontained, up to the monitoring of stages such as the injection and storage as well as of
the behavior of the injected CO2 . Japan CCS Co., Ltd. (JCCS) has been commissioned by
METI to carry out oversight of the building of the facilities necessary for the demonstration project operation and the monitoring of the natural conditions prior to the injection of
the CO2. Under an engineering, procurement, and construction (EPC) contract awarded by
JCCS, JGC will be responsible for the design work, covering facilities to receive suppliesof the gas containing the CO2 from the hydrogen production unit at the Idemitsu Kosan
Co., Ltd.’s Hokkaido oil refinery—located adjacent to the site of the demonstration project operation—for facilities to separate and capture the CO2 , and for the above-groundfacilities to transport the gas for injection into the wells. JGC will also be in charge of the
procurement of materials, construction work, and the commissioning work for the facilities that will be injecting the gas underground.
*What is CCS?
CCS stands for carbon dioxide capture and storage. To live more comfortably and more conveniently, humankind has developed
and utilized the fossil fuels that have lain deep in the earth for millions of years. The consumption of fossil fuels generates carbon
dioxide (CO2) as a by-product, resulting in rising CO2 concentrations in the atmosphere. These are recognized as one of the maincauses of global warming. CCS technology provides the means to capture the CO2 from power stations or industry processes before its emission into the atmosphere. Transported through wells to sites suitable for geological sequestration that are
scattered deep underground, the gas is stored stably for the long term. With its greater potential to lower CO2 emissions, CCS is
expected to be a key option in mitigating the effects of global warming.
The CO2 will be injected into reservoirs (composed of highly porous rock, such as sandstone) located more than 1,000
meters beneath the earth’s surface. The upper part of the reservoir needs to be formed of thick, CO2-impermeable layers of rock(known as the cap rock), to prevent any upward migration and thus ensure that the CO2 remains stored safely and stably.
(Source: Japan CCS Co., Ltd. homepage)Introduction

21
Large-Scale Demonstration Project of Complete CCS System:

Feature Article

Project Manager
No.2 Project Department
No.3 Business Division

Masakazu Yoshimito

To pass on the knowledge of ourancestors, to develop andproliferate CCS technology
For Japan’s first large-scale CCS demonstration project, JGC received EPC and commissioning
contracts covering the above-ground facilities to separate, capture, and inject the CO2 contained in supplied gas. The project is currently being carried out with a view to delivery in 2016.
Our proposal to reduce the amount of heat when separating and capturing CO2 by using a twostage chemical absorption method, thereby reducing operating costs, led to a new contractthat recognized our track record in large-scale overseas contracts.

HSE

In Japan, we have been conducting an experiment involving the underground storage ofaround 10,000 tons of commercial (after separation and capture) CO2 in the city of Nagaoka in
Niigata Prefecture. However, this project in Hokkaido is the first demonstration project designed
to verify the entire process, from the separation and capture of the CO2 contained in the gas towhen the CO2 is stored beneath ground. What’s more, the scale of the demonstration, at morethan 100,000 tons per year, takes into account the need to verify commercial viability and isthus huge in comparison. In this case, the CO2 feedstock is flammable gas, consisting mainlyof hydrogen, from an adjacent oil refinery. After separating out the flammable gas and the CO2

The Environment

from the feedstock, the former is used to generate our own power for the CCS facilities, and theCO2 is stored underground. We are thus building a mechanism that uses gas with no waste.
In the case of the large-scale projects in which JGC has been involved up to now, we havebeen working on CCS facilities in collaboration with joint-venture partners, but this is the firsttime for JGC to work on a CCS facility EPC single-handedly. As a result, as a project manager
it is not uncommon for me to be faced with difficult decisions. Having said that, at JGC there isa good sense of openness between managers and other workers as well as between departments, and that culture enables consultation about problems, which leads to rapid resolutions.

Society

When time permits, I utilize that corporate culture to make judgments, after having gathered
information and opinions from a number of different perspectives, and unhesitatingly endeavor
to move forward once I have made my decision. Nine years have passed since I joined JGC. I
feel that the rational way of thinking that flows throughout JGC—of entrusting project leaderswith responsibilities irrespective of their age or experience— is one of our virtues.

Introduction

22
The catalyst that led to JGC’s efforts in CCS was the In Salah natural gas project in Algeria, which started in
1997. Our client, BP—then known as British Petroleum—was keenly interested in reducing CO2 and built a CCS
facility at the plant. Subsequently, JGC worked on the construction of a CCS plant for the Gorgon LNG projectin Australia.
In 2003, when the In Salah natural gas project was under way, JGC created an internal organization called theInitiatives at the JGC Group Aimed atRealizing a Sustainable Society

Feature Article

Green House Gas (GHG) Initiative. That was just before the Kyoto Accord came into effect, and measures to mitigate
the effects of global warming were being intensely debated. As JGC’s core business is in the energy industry, we are
inextricably linked to GHG emissions, but I believe that our technological expertise can make a significant contribution to reducing them. Of these technologies, in the case of CCS, JGC displays a very high affinity for CO2 capture
technologies at both LNG plants and natural gas production plants, the Company having proven from the outset
to be very adept in the construction of both. Furthermore, at that time we thought the technologies could make asignificant contribution to Japan, which needed to reduce GHG emissions within the framework of the Clean Development Mechanism (CDM), part of the Kyoto Accord.
One of the problems which prevent the proliferation of the CCS process is that CCS costs money but does not

HSEof itself generate new value. We had once studied if we could utilize CCS in the CDM with the case of an LNG plantin Malaysia which emitted the three million tons of CO2 per year. Although the project did not reach the stage of actual construction, during the course of the examination, the methodology for utilizing CCS in the CDM was advocated through the world, which spiked the interest of those involved.
While taking over the findings about CCS that were made by our predecessors, I would like to contribute to thedevelopment and proliferation of CCS with the safe completion of facilities for the demonstration project. In addition
to the contributions we are making from the technological standpoint, I believe JGC is taking on the social role thatwill be demanded of the Company in the years to come, conducting business planning and management that raises

The Environment

revenue by combining CO2 utilization with CCS. This is already being seen in the application of this technology inpetroleum advanced oil recovery (EOR) and in integrated gasification combined cycle (IGCC) technologies, which
are attracting attention as the next generation of highly efficient coal-fired thermal power generation.

SocietyIntroduction

23

HSE

JGC aims to be the No. 1 contractor in HSE.
▲

27 Occupational Health and Safety▲

Feature Article

24 Close-up JGC Aims for Zero Incidents and Injuries

HSE

We aim to faithfully fulfill our social responsibility by considering HSE in every aspect of our business.
Aiming to Be a No. 1 HSE Contractor
The Environment

In recent years, the interest of operators and society in HSE as
it relates to the design, construction, and operation of largescale facilities such as energy plants has risen. Requirements oncontractors have become more stringent. JGC aims to maintainthe trust of its clients and fulfill corporate social responsibility by
becoming a No. 1 HSE contractor.

Society

HSE encompasses.....

Combining Economic Efficiency with HSE at
a Higher Level

Balance of Long-Term and Short-Term
Perspectives

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

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

HealthSafetyEnvironment

Introduction

Close-up

24

Feature Article

JGC Aims for Zero Incidents
and Injuries
JGC aims to be the No. 1 contractor in HSE.

HSE

As a part of our occupational health and safety endeavors at construction sites inside and outside Japan, JGC makes every effort to improve
Health, Safety and Environment (HSE) levels through “Incident andInjury Free” (IIF) initiatives.
Through IIF activities to foster a culture of safety and educate
employees about safety, JGC fulfills our social responsibility while
contributing to local communities as an engineering company.

The Environment

IIF activities are based on the idea of workers watching out for each other and ensuring thateveryone involved in a construction project is able to return home safely without incident. Safety
is not something that is enforced, but a conscious decision made by each person involved in a
project. By working to improve safety awareness, we foster a culture of safety throughout thewhole corporate group. Everyone, from our managers in charge of a construction site to theworkers at the site, play a vital role in ensuring the safety of all of those involved. IIF is not set instone such as in a safety manual, but decided in accordance with conditions that vary from site
to site, by the people working at the construction site. IIF also serves to increase the motivationof each individual worker, because constant communication is at the root of these initiatives.
In this close-up, we introduce some examples of IIF at JGC’s construction sites in Japan andaround the world.

SocietyIntroduction

Close-up

25

At construction sites overseas
Feature Article
JGC aims to be the No. 1 contractor in HSE.

HSE

IIF activities are briskly underway as work
continues night and day on the Barzan project
involving more than 30,000 people from over
45 countries.
The project starts each and every morningwith site managers from JGC making the rounds
and greeting workers.
“Namashika, ap keyaisa?” (Good morning,
how are you?) This greeting knows no boundaries whether corporate or profession. In broken
Hindi, we do our best to convey our enthusiasm
to workers, who bend their ear out of curiosityand friendlily chat about matters unrelated towork. This mindless chit chat fosters a sense of
camaraderie with deep roots, and cultivates aculture of caring for the safety of not just yourself
but also the others you work with.

The Environment

IIF sign

Society

IIF Walk is held once a week in each area,
where teams made up of a mix of people from
JGC, clients and subcontractors patrol work areas
to express their gratitude to the workers for working safely every day, and explain that the important work they do brings the plant one step closer
to starting operations and producing products. If aworker requests an improvement at a work site orat their dormitory, the request is looked into rightaway to improve the morale of the workers andbuild relationships of mutual trust.
The Barzan project has had zero accidents
causing work stoppage from July 2012 throughApril 2014, a combined total of 130 million
man hours. In 2014, JGC will make every effort
to keep the IIF Days (days with zero incidents
and zero injuries) rolling by redoubling efforts
to eliminate minor accidents and injuries. IFF
signs have been placed at the main entrance
gate of the worksite and in each area, and thenumber of IIF Days of zero incidents and zero injuries are displayed at the end of each day as avisual reminder to workers that another day has
passed safely, sharing a sense of accomplishment and boosting their energy for the next day.
Six straight months of IIF Days earns the area aGold Award trophy, which is presented by JGC
managers and customer representatives in a
ceremony with their gratitude.

IIF WalkIntroduction

Close-up

26

At sites in Japan
Feature Article

When introducing IIF activities at construction
sites in Japan, IIF activities are first nicknamed“Ii Fureai undo” in Japanese, which means“good rapport campaign,” and workers at theconstruction site are asked to think about how
safety can be improved, while site supervisors
make an extra effort to greet and talk with each

HSE

JGC aims to be the No. 1 contractor in HSE.

and every worker at the site. “Everyone” is thecatchphrase we use to get site supervisors andsite workers to come together to share theiropinions and form bonds of trust. The circle of
IIF activities broadens out among construction
site workers and extends to customers as well.
Through these efforts, construction site supervisors and workers are able to communicate
more freely across corporate boundaries andthroughout the ranks. If unsafe behavior is seen

The Environment

at the construction site, workers speak up andcollaborate with each other at the work site tocome up with a safer way of accomplishing thetask at hand. As a consequence, our safety
record has improved substantially.

Society
Greetings and handshakes to start the day(from DVD describing actual incidents)

As an occupational safety training material,
JGC has produced DVDs describing actual incidents that have happened in the past with computer graphics to illustrate the incident. These
DVDs have been made into a series. In Volume
4 “Nip an accident in the bud: actual closecall incidents,” there is an introduction of the
IIF activity of “calling out each other’s names toprevent accidents” at worksites. The DVD series
has received positive feedback internally as well
as at customers and construction companies
concerned about accidents. JGC is currently
producing a DVD that explains IIF activities inmore detail.

Introduction

27

O c c u pa ti o n al Healt h an d Safety

HSSE Organization
Feature Article

The HSSE* Committee deliberates on important safety matters for the entire group. It also
reports to the Operations Steering Committee,
which is chaired by the President. Matters
decided by the HSSE Committee are promptly
acted upon by the various company divisions.

JGC aims to be the No. 1 contractor in HSE.

HSE

Occupational Healthand Safety

The Environment

In accordance with our Health and Safety Policy, JGC conducts healthand safety management covering the JGC Group companies andbusiness partners.
Above all, we focus on the prevention of occupational accidents atconstruction sites.

An audit group appointed by the chairmanof the HSSE Committee conducts health andsafety audits at principal construction sites
in Japan and overseas, and reports the audit
results to the Operations Steering Committee.
*The first letters of “Health,” “Safety,” “Security,” and“Environment.”

HSSE Organization
Operations Steering
Committee(Chaired by the President)

HSSE Committee
Quality Assurance, Safety& Environment Office

Health Management Center,
Human Resources Dept.,
Corporate Administrative &Financial Affairs Div.

Engineering Division
Project Division

HSE Systems Department

Each department
and office

HSE Group

Construction Department

Project teams

HSE Control Team

Project HSE Managers

SocietyIntroduction

28

O c c u pa ti o n al Healt h an d Safety

HSSE Conference Hosted by the
President

Safety Performance
Feature Article
JGC aims to be the No. 1 contractor in HSE.

HSE

As a result of continuous implementation ofGroup-wide health and safety improvement
measures, our incident rate*1 (ILO method)
has remained at around 0.7 for the past ten
years, a lower level than the average incident
rate of 1.4 for the construction industry as awhole. In addition, specific internal annual Total
Recordable Injury Rate*2 (TRIR) targets havebeen set for domestic and overseas projects,

with monthly status of achievement circulated
within the Company to raise the awareness ofsafety. The TRIR is a workplace safety indicatorthat includes the number of cases of accidents
without first aid cases. For fiscal 2013, JGC’s
TRIR for domestic projects was 0.48 against atarget of 0.60 or below, and 0.17 for overseas
projects against a target of 0.15 or below.

Note:*1 The incident rate expresses the occupational accident frequency as the toll of occupational accidents that result in a fatality or
time off work of more than one day per million hours worked.
*2 TRIR is a benchmark of the frequency of occupational injuries developed by OSHA in the United States.
It is calculated as the number of recordable injuries, which includes injuries not requiring time away from work,
per 200,000 work hours.

Comparison between the incident rate at JGC and the Japaneseconstruction industry as a whole (ILO Method)

Safety Day Campaign

Every year in July since 2007, JGC has held an
HSSE conference hosted by the President as apart of efforts to bolster HSSE initiatives.
Approximately 140 corporate officers, project division heads, project department heads, project
managers, and construction managers participate in the conference.
Following the President’s opening speech
and the Zero- Accident Award Ceremony,presentations are given on a variety of safety
themes, and are followed by group discussions.
Through the conference, JGC seeks to enhance
the health and safety awareness of officers andemployees and demonstrate the leadership of
top management in HSSE matters.

Each year in July, JGC conducts a Group-wide
campaign that focuses on traffic as well as construction safety. This campaign covers all of theGroup’s construction sites, offices, subsidiaries,
and affiliates in Japan and overseas.
In 2013, the Group continued with efforts tolift awareness toward HSE. In addition to callingfor safety posters and slogans, employees
were asked to record and carry on their person
Commitment Cards. These cards outline detailsof each individual’s HSE initiatives. Moreover,safety committee meetings and other eventswere held on a team basis.

(Incident rate)

The Environment

2.0

1.4 Constructionindustry average(Japan)The HSSE Conference

1.5

1.0

0.5
Average for JGC projects

Society

0.7 in Japan
0

2004

2005

2006

2007

2008

Construction industry in Japan

2009

2010

2011

2012

JGC projects in Japan2013
Fiscal 2013
safety poster award winnerIntroduction

29

O c c u pa ti o n al Healt h an d Safety

HSE Patrols by the President
Feature Article
JGC aims to be the No. 1 contractor in HSE.

HSE

At JGC, the president performs HSE patrols ofmajor business sites overseas, and works toraise awareness of safety among all employees
working at the site. The purpose of these patrols
is to have the president visit the business sites inperson, underscoring the importance of having
a high awareness of HSE at JGC. During thiscampaign to foster a culture of safety and promote safety education, the president patrols thebusiness sites in person, warmly greeting thePresident Kawana communicating to workers

Introducing “HSE Moments”
workers at the site, after a discussion to raisesafety awareness with customers and business
partners.
In recent years, the president paid a visit
to the construction site of the Donggi-Senoro
LNG Project in Indonesia, held a discussion toraise awareness of HSE with management at its
customers and business partners, and patrolled
the site to directly communicate to workers theimportance of HSE.

Since September 2010, JGC has introduced“HSE Moments,” five-minute lectures given bya participant officer at the opening of meetingsof the Operations Steering Committee, which
are attended by officers and executives. The
purpose is for management to take the lead in
addressing HSE matters, in consideration of
JGC’s aim to be a No. 1 HSE contractor.
Carrying on from the previous year, various
topics were again covered in fiscal 2013, including “measures to protect the eyes from blue lightdamage,” “emergency evacuation proceduresfrom offshore facilities,” and “the need to be waryof theft when on a business trip.” A wide rangeof topics, such as issues closely related to workand subjects that arouse intellectual curiosity, arechosen to heighten HSE awareness at JGC.

Consideration for Worker Safety

Measures for Traffic
Accident Prevention
JGC is strengthening its measures to prevent traffic accidents
at overseas sites and bases.
In fiscal 2010, we introduced a thorough set of guidelines
for management of vehicle operation, including the Seven
Golden Rules for accident prevention, a traffic safety management system, and the In-Vehicle Monitoring System (IVMS). We
also revised the guidelines for the prevention of traffic accidents
overseas. In addition, to continuously monitoring the status of

The Environment

traffic safety measure implementation at overseas sites andbases, JGC’s management conducts traffic safety audits andmandates the submission of Monthly Traffic Safety Reports andsemiannual reports.
HSE Moments

SocietyIntroduction

The Environment
31 Close-up Environmental contributions in China▲

33 Environmental Policy▲

Feature Article

The JGC Group’s Environmental Technologies andEnvironmental Conservation Activities▲

34 Environmental Considerations Associated with Business Activities▲

40 Continuous Improvement of Management Systems

▲

▲

HSE

41 Environmental Objectives, Targets, and Achievement
43 Environmental Report on Office Activities▲

38 Safety and Environmental Consideration in Investment Projects and Research & Development▲

45 Using JGC’s Environmental Technology to Solve Difficult Issues

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

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

Society

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

30

Introduction

Close-up

31

Feature Article

Environmental contributionsin China
HSE~Production of LNG from coke oven gas~

The JGC Group’s Environmental Technologies
and Environmental Conservation Activities

The Environment

In Japan, gas generated during the coke production process (coke ovengas) is effectively used as a fuel by neighboring steel plants, for example. In China, however, coke ovens and steel plants are often not located next to each other, so many coke factories burn off any excess cokeoven gas; this is said to be a cause of air pollution.
Coke oven gas contains carbon monoxide and hydrogen. Using
these components as raw materials, it is possible to produce synthetic
natural gas (methane). It is said that there is enough coke oven gas in
China to produce synthetic natural gas equivalent to 5 million tons of
LNG every year. If this could be done, it would contribute significantly
to preserving the environment by helping to reduce emissions of greenhouse gases and air pollutants, in addition to being a source of clean
natural gas.

SocietyIntroduction

Close-up

Feature Article
HSE
The JGC Group’s Environmental Technologies
and Environmental Conservation Activities

The Environment

If the various impurities in coke oven gas can beremoved to produce refined carbon monoxideand hydrogen, already established technologies
can be used to produce synthetic natural gas. If
this purification process is insufficient, catalysts
are damaged and piping is blocked, making it
impossible to reliably produce synthetic naturalgas. It is this purification process where JGC’stechnological strengths truly shine.
JGC has extensive technologies and experience in treating gases, and has built a cokeoven gas purification plant before. After operating this purification plant stably for several years,
JGC has refined its coke oven gas purification
technologies.
JGC has partnered with ACRE Coking &Refractory Engineering Consulting Corporation,
MCC, which deals with 80% of the largest cokefactories in China, to provide it with the technologies to produce synthetic natural gas and
LNG from coke oven gas. As the first endeavor,
JGC and ACRE signed a contract with a cokeproducer in Shandong, and is currently drawing
up engineering documents. JGC and ACRE
plan to spread these technologies throughout
China, contributing to effective energy use andthe reduction of air pollution in China.

32

Process of producing synthetic natural gas and LNG from coke oven gas

Coke oven gas

LNG

50,000Nm /hr3

Gas
purification

110,000 ton/yr

Dehydration

Methanation

Liquefaction

LNG● Sulfur removal● Impurity removal

MethaneSeparation
anddehydration

Synthetic natural gas
35,000Nm3/hr

Storageandshipment

SocietyIntroduction

33

T h e J G C G ro u p’s E n viro n men tal M anagem ent

Feature Article
HSE

Environmental Policy

The JGC Group’s Environmental Technologies
and Environmental Conservation Activities

The Environment

JGC, as a professional engineering contractor, is committed toachieving 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 beapplied throughout its operations.

1.

We shall endeavor to preserve the natural environment through theprevention of pollution andthe conservation of energy and natural resources.

2.

We shall provide our clients with technical solutions that conserve
energy and natural resources, and reduce pollution and other adverse
environmental impacts.

shall fully comply with both environmental laws and regulations, and3. We
the environmental requirements of our clients.

4. size reuse and recycling.

We shall reduce the production of waste through measures that empha-

shall apply the following specific principles to the execution of our
5. We
EPC projects:
Engineering Phase:
We shall reduce the adverse environmental impacts of completed plants by minimizing the energy and resource consumption of eachplant, and minimizing emissions and waste production.
Procurement Phase:
We shall give preference to vendors that adopt environmentally-friendly manufacturing practices.

Society

Construction Phase:
During construction, we shall endeavor to minimize emissions, adverse impacts on the surrounding environment, energy and resource
consumption, and waste production. Furthermore, we shall ensure that our subcontractors adopt work practices consistent with thisprinciple.

Introduction

MarketingFeasibility Studies

Basic Planning(FEED)

Basic Engineering,
Detailed Engineering

Equipment andMaterials Procurement

Construction
Planning

ConstructionWork

Maintenance

Facilities
Decommissioning

The Workflow of the
JGC Group’s EPC Services

34

E n v i ro n m en t al Co n s iderat ion s Associated with Business Activ ities

In Marketing Activities
Feature Article
HSE

Environmental Considerations
Associated with Business
Activities
The JGC Group’s Environmental Technologies
and Environmental Conservation Activities

The Environment

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

Ensuring a reliable supply of energy while preserving the environment is an issue shared by allof humanity.
The emergence of shale gas has changed
the global landscape for energy in recent years.
A fundamental shift is underway, lessening
our dependence on oil and coal as the use ofnatural gas, which is friendlier on the environment, expands. However, natural gas alone
cannot fulfill all our energy needs amid growthin the global population. Oil and coal use is unavoidable. Fortunately, advances in technology
have lessened the environmental impact of oil
and coal.
As a company rooted in technology, the
JGC Group is addressing these needs forvarious kinds of energy and the reduction ofenvironmental impact.

Specifically, JGC’s marketing activities haveplayed a major role in the development andmanagement of the electricity, water and renewable energy business as well as the urban development business, in addition to our traditional
EPC business in gasoline and kerosene desulfurization systems, heavy oil countermeasures,
LNG plants, gasification plants, and CCS plants.

LNG plant (Indonesia)

In Feasibility Studies

Society

We consider many matters at the feasibility
study stage, including market analysis, potentially useful technology, systems capabilities, facilities configuration, construction and operation
cost analysis and financial arrangement. Whenconfiguring facilities, we take environmental
consideration into account, along with regional

characteristics and safety. We also consider
secondary environmental impacts, such aswhether waste disposal facilities are available in
the region, or whether any transportation-related
problems exist.

Introduction

MarketingFeasibility Studies

Basic Planning(FEED)

Basic Engineering,
Detailed Engineering

Equipment andMaterials Procurement

Construction
Planning

ConstructionWork

Maintenance

Facilities
Decommissioning

The Workflow of the
JGC Group’s EPC Services

35

E n v i ro n m en t al Co n s iderat ion s Associated with Business Activ ities

In Basic Planning (FEED)
Feature Article
HSE
The JGC Group’s Environmental Technologies
and Environmental Conservation Activities

The Environment

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

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

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

Consideration at Engineering Stages

Example: minimizing
emissions of gas
Last year, JGC constructed a new gas plant in the Middle East designed to minimize emissions of gas. Since gas emissions are greater when operations start or enter emergency shutdown comparedwith normal operations, it is necessary to take a design approachthat considers the operational cycle of the plant in order to reduce
its total gas emissions. While envisioning various operating conditions at the plant, JGC reassessed systems from the standpoint of
reducing gas emissions. We successfully delivered to our customer
a plant that achieved minimal gas emissions.

SocietyIntroduction

MarketingFeasibility Studies

Basic Planning(FEED)

Basic Engineering,
Detailed Engineering

Equipment andMaterials Procurement

Construction
Planning

ConstructionWork

Maintenance

Facilities
Decommissioning

The Workflow of the
JGC Group’s EPC Services

36

E n v i ro n m en t al Co n s iderat ion s Associated with Business Activ ities

In Construction PlanningFeature Article
HSE

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 purposeof understanding what impacts the construction has on the environment of the construction
site and minimizing those impacts as muchas possible. The EIA report describes in detail
impacts that construction work will have on theair, water, soil, flora, fauna, and marine life, andit also details measures that can be taken tocounter them.
JGC applies environmental management
systems to construction work to ensure that
we demonstrate environmental consideration incompliance with EIA reports, emphasizing thefollowing points.

In Maintenance
1. We practice strict legal compliance and environmental
risk management by identifying environmental laws andregulations and environmental considerations that havebearing on construction work.
2. We endeavor to increase client satisfaction and reinforce
communication with stakeholders.
3. We manage environmental risks and endeavor to minimize
the possibility of incidents which may have a negative impact
on the environment by anticipating, preparing for, andspeedily responding to emergencies.

Before starting construction work, we consider
the above matters and unfailingly perform thefollowing preliminary work:
12
3
4

Identifying environmental impacts of the construction work
Setting environmental objectives and targets for theconstruction work
Preparing a Construction Environmental Management Planfor the construction work
Providing new workers with environmental education andtraining

The JGC Group’s Environmental Technologies
and Environmental Conservation Activities

The Environment

We incorporate the Zero Emissions Initiative
2015, a JGC Group independent environmental
conservation initiative, into this preliminary work,and thoroughly confirm environmental conservation measures before starting construction.

In Construction

Society

Construction work by JGC is preceded bythorough environmental consideration at theplanning stage.
Matters laid out in the Construction Environmental Management Plan include projectenvironmental policy, the organizations andpersons responsible for environment-related
work, environmental protection measures,
environmental performance monitoring andmeasurement, regular testing of emergency pre-vention and relief procedures, monthly reporting,etc. Following the start of construction, a review
of environmental aspects of the project (therelationship between construction work and theenvironment) is conducted to confirm whether
the construction work differs from the plan. If
any differences are found, the plan is revised
to ensure that there are no omissions in environmental consideration in the environmental
management framework.

Rigorous HSE risk assessments by specialists
are conducted in the engineering phase for various industrial plants, and risk mitigation measures determined to be necessary are borne out
in the engineering and construction work.
However, over years of plant operation,
facilities age and operating conditions or feedstock composition may change. In some cases,
chemical substances not assessed as risks at
the time of construction become recognized ashealth risks. In recent years, the necessity of theregular and timely reassessment of HSE risks
that may potentially increase over the course oflong-term plant operation has long been advocated and plant operators recognize the needfor this as well.
Utilizing its ability to act as a third party withthe latest technology, knowledge, and ability tosupply needed resources to plant operators, the
JGC Group actively supports plant operators in
conducting HSE risk assessments at operating
plants, recognizing the importance of thoroughmaintenance operations. Accidents at energy
industry facilities obviously carry an inherent riskof becoming worst-case scenarios. The JGCGroup offers maintenance services with fullconsideration of these needs and risks.

Considerations for Maintenance

HSE Risk Assessment in
Existing Plants
When plants have to undergo successive upgrades because of theirage, environmental and health standards initially set as requirements
when the plants were built become often difficult to maintain. Aiming
at improving the environmental performance and safety of aging
plants, JGC offers HSE risk assessments and support services.
We conduct surveys during plant operation and identify problems
through HSE-specific examinations. Taking advantage of theexperience we have gained from numerous plant construction andmaintenance service contracts, we offer realistic propositions thatbring significant improvements.

Introduction

MarketingFeasibility Studies

Basic Planning(FEED)

Basic Engineering,
Detailed Engineering

Equipment andMaterials Procurement

Construction
Planning

ConstructionWork

Maintenance

Facilities
Decommissioning

37

The Workflow of the
JGC Group’s EPC Services

E n v i ro n m en t al Co n s iderat ion s Associated with Business Activ ities

In Facilities Decommissioning
Feature Article
HSE
The JGC Group’s Environmental Technologies
and Environmental Conservation Activities

The Environment

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

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

Hazardous substancestorage area

Handling of chemical
substancesSocietyIntroduction

38

S a fe ty a nd E n viro n men t al Consid er ation in Inv estm ent Projects and Re se a rc h & De ve lopm e n t

Enterprise Investment BusinessFeature Article
HSE

Safety and Environmental
Consideration in Investment
Projects and Research &Development
The JGC Group’s Environmental Technologies
and Environmental Conservation Activities

The Environment

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

The JGC Group, in addition to being involved in
the EPC business, is also involved in numerous
investment projects as a strategic equity partner.
Investments include infrastructure projects(desalination and power generation), renewableenergy projects (solar thermal and solar photovoltaic power generation), resource development
projects (for oil, gas, and other resources), CDM
projects, new energy development projects,
environmental catalyst and fine chemicals manufacturing projects as well as urban development
and other projects.
As a general rule, in the enterprise investment business, we keep the following objectives
in mind:● Development of social infrastructure● Environmental improvement on a local or global scale● Improvement in energy use efficiency● CO2 reduction and utilization of natural energy

In investment projects, from the feasibility study
stage onward, we abide by the environmental

regulations of the country or region, as well as
the environmental guidelines set down by theWorld Bank Group. In our current desalinationand power generation projects, we are performing detailed environmental impact assessments, and are working in compliance with theaforementioned environmental guidelines andregulations. Moreover, we are taking the lead inpromoting safety management in collaboration
with project partners including EPC contractors
and operation maintenance companies.
The JGC Group has taken steps to promote
an IIF campaign at a solar photovoltaic power
generation project in Oita in similar fashion to
its EPC activities. The group was successful
in completing construction without incident
or accident. In this manner, the JGC Groupmakes investments with the belief that safe andenvironmentally considerate projects increase
corporate value for the JGC Group and for its
business partners.

The IIF campaign at a solar photovoltaic power generation project in Oita

SocietyIntroduction

39

S a fe ty a nd E n viro n men t al Consid er ation in Inv estm ent Projects and Re se a rc h & De ve lopm e n t

Research and Development
Feature Article
HSE
The JGC Group’s Environmental Technologies
and Environmental Conservation Activities

The Environment

JGC conducts research and development,
principally testing, at our Research and Development Center in Oarai, Ibaraki Prefecture.
At the Research and Development Center,
we treat wastewater generated as a by-productof the tests we conduct by filtering, adsorption,and neutralization, in strict compliance with voluntary management criteria as well as relevantlaws, ordinances and regulations. We dispose oftreated water in accordance with environmental
standards. In controlled areas where we use
radioactive isotopes, we strive to reduce theamount of test waste liquid and hand washingwastewater generated. We treat these liquids
and wastewater by ion exchange, filtering, adsorption, and concentration, and recycle themwithin the controlled area. Under no circumstances do we discharge this water outside thecontrolled area.

Furthermore, we release exhaust fromthe controlled area after filtering it through ahigh-performance HEPA filter, with continuous
monitoring to confirm that it complies with emission control standards.
We aim to reduce the amount of industrial
waste generated within the Research and Development Center, and we separate and disposeof waste in compliance with industrial waste
disposal standards.
In addition, to support safety management
and help prevent accidents, the Researchand Development Center’s Safety Committee
conducts monthly patrols to identify hazards
and provide guidance for improvement of safety
protocols. Moreover, written plans must be submitted to the committee before the beginning of
new research operations. The committee thendeliberates on the contents of the operations
from the standpoint of safety, to provide sufficient accident prevention measures.

Society
Research and Development Center(Oarai, Ibaraki Prefecture)

Introduction

40

C o n ti n u o us I mpro vemen t o f M anagem ent System s

Environmental Improvement Activities in Line with Our BusinessFeature Article
HSE

Continuous Improvement ofManagement Systems

As environmental improvement activities at JGC’s
Headquarters tended to center on reducing
waste, paper, and electricity consumption, ourtask was to shift this focus to activities that fall inline with our actual business. To accomplish this,with the participation of the heads of all divisions,
we reviewed our methods for identifying opportunities for environmental conservation and our
procedures for target setting. We reached a common recognition of the following points.

●

●

●
●

●

The JGC Group’s Environmental Technologies
and Environmental Conservation Activities

The Environment

In December 2003, JGC obtained the ISO 14001 certification from
Lloyds Register Quality Assurance (LRQA). ISO 14001 is theinternational standard for environmental management systems.
Since then, the certification has been renewed three times, and theaudit required for maintaining it in fiscal 2013 was completed in
October 2013, including at overseas sites.

With this common recognition, JGC continuously makes a concrete review of the significanceof environmental objectives and targets, andimplements environmental management activities from the following perspectives.

●

While we solve environmental issues through our original
business and aim for sustainable development in society,
it is important to link these processes to the creation of
corporate value and improvements in competitiveness.
While concerns over environmental issues are risingworldwide, JGC is contributing directly and indirectly tosolutions through its original core business. JGC recognizes
sustainability as an issue it has to address in this particularbusiness.
Important points that JGC must consider to develop itself
sustainably are as follows:
1.Implementing adequate operation and maintenance toprevent environmental problems from arising in the future.
2.Continuing to implement improvements to increase
corporate profits, while giving consideration to environmental
matters.

Environmental management activities conducted withenvironmental objectives and targets are not separate frombusiness, they are business.
The operational policies of divisions and departments are
determined for substantial performance improvements of theorganization and its operations.
Environmental targets and quality targets can be matched
together.

In this way, JGC conducts environmental
improvement activities in line with its original
business, by loosely linking its environmental
management systems to its quality management systems.

Environmental Management Systems
ChairmanPresident
HSSE Committee

Society

Division

Division

Quality Assurance,
Safety &Environment Office

EMS Working GroupEngineering

Procurement

Project Execution

Working Group

Office Activities Execution

Construction

Introduction

41

E n v i ro n m en t al O bject ives , Tar gets, and Achievem ent

Promotion of the Zero Emissions Initiative 2015
Feature Article
HSE

Environmental Objectives,
Targets, and Achievement
The JGC Group’s Environmental Technologies
and Environmental Conservation Activities

The Environment
Society

Promotion of the Zero Emissions Initiative 2015

Since 2008, as part of its corporate social
responsibility, the JGC Group has enacted
environmental improvements through the Zero
Emissions Initiative, which details strategies for
reducing the harmful by-products of JGC’s business activities to zero. In 2011, with new targets
set for the mid- and long-term in consideration
for the development of our environmental business, we have renewed the initiative under the
new title, “Zero Emissions Initiative 2015.”
The Zero Emissions Initiative 2015 covers
the head office, the Research and Develop-

ment Center, JGC construction sites in Japanand overseas, JGC Group companies in Japanand overseas, and domestic and internationalsales bases.
● GC Group Offices
Environmental improvements were promoted in offices byadopting an environmental target of a five-year average
reduction of 1% or more in energy-related CO2 emissions units.
● JGC Domestic Construction Sites
Environmental improvement targets were quantified in threeareas: final disposal rate, number of leaks, and CO2 emission
units. The target (3%) for the final disposal rate was not reached(5.8%). The JGC Group will continue to make every effort toachieve the target in the next fiscal year. On a positive note, thetargets for the number of leaks and CO2 emission units werereached with the Group securing favorable results

Recycling of Construction Waste
JGC aims at minimizing final waste through the
rigorous implementation of the “Zero Emissions
Initiative 2015.”
In fiscal 2013, the final disposal rate of domestic construction projects was 5.8%.
On every site, before contracting disposal
to a provider of intermediate waste treatment
services, we confirm its recycling rate with ourown industrial waste surveys.
In particular, because there are significant
differences between contractors regarding thetreatment methods and recycling rates of construction sludge, we carefully compare treatment methods and costs.
Before starting construction, we also establish an adequate waste separation plan basedon the characteristics of waste to be generated.
In addition, through the rigorous separationof wastes in accordance with this plan, we seek
to improve the recycling rate during construction.
● JGC Overseas Construction Sites
Compared with domestic sites, overseas sites have different
conditions for each site, which make it challenging to quantify
environmental improvement targets. In this difficult context,
in an operating environment that tends to lack sufficient
recycling mechanisms, efforts were made regarding the use ofvaluable resources, rigorous reuse of materials, and prevention,
preparation of treatment, and handling of oil leaks. In addition,internal HSE audits are conducted at all sites.
● Efforts in Group Companies
Because these companies conduct extremely varied formsof business, they pursued independent efforts aiming at zeroby-products, based on their respective business characteristics.

Introduction

42

E n v i ro n m en t al O bject ives , Tar gets, and Achievem ent
Assessment
E: Completely implemented G: Extensively implemented NG: Not yet implemented

In accordance with our Envi-

Improvement:
Substantial modification of environmental improvement measures
Continuation of environmental improvement measures

Fiscal 2013 Results and Fiscal 2014 Improvement

Feature Articleronmental Policy, JGC strives
for continuous improvement of

Activity objective

Fiscal 2013 results

Implementation of the Zero
Emissions Initiative 2015

• CO2 emissions reduced to the Kyoto Protocol level.
• Soil pollution from leaks reduced to almost zero.
• Reduced the final disposal of waste (reduction in theamount of final disposal without an improvement in
the final disposal rate)• Promoted environmental investment

G

Continued implementation of the Zero
Emissions Initiative 2015

Environmental targets

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

G

Continuing promotion of environmental
improvements directly linked to original
business

our environmental management
systems by setting environmental
objectives and targets, and measuring and assessing achievement
as shown in the table below.

HSE

Strengthening of internal
auditing

Strengthening initiatives forbiodiversity

Assessment

Implemented at all overseas sites.
(Currently implemented 11 times in total.)

Score: 87.4 points (target: 82 points)
Initiatives for biodiversity directly linked to original
business (expansion also at overseas sites and inGroup companies.)

E

Initiatives for fiscal 2014

Improvement

Planning for multiple implementation at alloverseas sites(To be implemented 19 times in total.)

Target: 84 points
G

Continued the implementation of initiatives
for biodiversity directly linked to original
business

The JGC Group’s Environmental Technologies
and Environmental Conservation Activities

The Environment

Notes:

Society

1. Office activities ··· Regarding office activities, environmental
performance has reached a satisfactory level that indicatessaturation. Consequently, environmental improvements inoffices are now implemented with environmental targets as
operation and maintenance items.
2. Project execution ··· Divisional environmental targets for
project execution are set for environmental improvementsin the original business and are matched to quality targets.
Consequently, targets cover a broad range of division- specificitems, they are loosely linked to the quality management
systems, and they produce steady results.
3. Group companies ··· Group companies also actively engagedin activities of the “Zero Emissions Initiative 2015” andobtained significant results in environmental improvement.
However, because these companies conduct very diverse
forms of business, summarized environmental targets are
difficult to express, and for this reason they are not mentioned
in this report.

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

Unit

Fiscal 2009

Fiscal 2010

Fiscal 2011

Fiscal 2012

Fiscal 2013

1. Final disposal rate of industrial waste

Result (Target)%

3.7 (7)4.1 (4)3.3 (3)4.2 (3)5.8 (3)

2. Number of leaks

Result (Target)

Leaks

2 (0)

1 (0)

0 (0)

0 (0)

0 (0)

3. Energy-related CO2 emission units

Result (Target)

kg-CO2/hour

0.94 (1)0.75 (1)0.46 (1)0.36 (1)0.58 (0.9)

Introduction

43

E n v i ro n m en t al R epo rt on Office Activ ities

Efforts based on Minato Mirai 21
Urban Management
Feature Article
HSE

Environmental Report on
Office Activities

The Queen’s Tower A building, which houses
JGC’s Yokohama World Operations Center, is located in Queen’s Square Yokohama, a complex
in the Minato Mirai 21 district in the Nishi Wardof Yokohama city. This area is being developedwith consideration for a more efficient use of energy, the needs of a recycling-oriented society,urban disaster prevention, and environmental
friendliness. Its urban management is based on
the “Basic Agreement on Town Development
under Minato Mirai 21.”
The efforts made by JGC to mitigate theenvironmental impacts of its office activities arealso based on this concept, and they include
reducing electricity consumption, heating andcooling consumption, energy consumption, andwaste, and increasing the recycling rate.

The JGC Group’s Environmental Technologies
and Environmental Conservation Activities

The Environment

Minato Mirai 21 District

Efforts to Reduce Electricity
Consumption
In fiscal 2013, JGC’s consumption of electricity
declined 5.1% compared with the previous
fiscal year.
JGC is undertaking a variety of activities toachieve power savings of 15%. These activities
are being implemented by the Queen’s Square
Yokohama Management Association at theCompany’s Yokohama World Operations Centerin line with a ministerial ordinance for the restriction of the use of electricity, based on article 27of the Electricity Business Act, in the wake of theGreat East Japan Earthquake. Steps have beentaken to replace fluorescent lighting in the upper
open area of the second floor, indirect lighting
in elevators, and down lights between the 23rdand 35th floors with LED bulbs. Through theseSocietyIntroduction

44

E n v i ro n m en t al R epo rt on Office Activ ities

Feature Article

and other endeavors, the JGC Group is continuing with efforts aimed at reducing its electric
power consumption.

A sticker calling for power-saving efforts in the use of personal
computers was distributed to all employees. Moreover, newhigh-performance, energy-saving models have been introduced
at the time personal computers are replaced.

HSE

Electricity consumption by JGC Yokohama
World Operations Center(1,000kWh)
10,000

9,475

9,000

7,934

8,000

7,826

7,000

7,530

6,000

0

The Environment

The JGC Group’s Environmental Technologies
and Environmental Conservation Activities

2010

2011

2012

In fiscal 2013, the volume of chilled water necessary to regulate heating and coolingdecreased by 1.8% year on year. While averagetemperatures over the period from the middle ofJuly 2013 through to September 2013 were up
compared with the corresponding period of theprevious year as a result of the extraordinarily
oppressive summer, this decrease was largely
attributable to successful efforts aimed at holding down the consumption of water during peak
periods by bringing forward air conditioning operating times . Meanwhile, the volume of steam
necessary at the time of heating also declined
13.1% year on year in fiscal 2013.
This was mainly due to the renewal ofhigh-efficiency air-conditioning automatic control
equipment (IDC controller: zero energy band
control), which helped to regulate the volumeof steam consumption. As a result, the use ofchilled water and steam for the year fell 5.6%
compared with the previous fiscal year.

Efforts to Reduce Energy
Consumption
The JGC Yokohama World Operations Center
is a Type 1 Designated Energy Management
Facility under the Act on the Rational Use ofEnergy (Energy Saving Act), and as such, weare legally obligated to report on our volume ofenergy consumption (crude oil equivalent). In
fiscal 2013, the volume of our energy consumption was 2,908kl, down 5.3% from 3,069kl theprevious year.
*In both fiscal 2012 and fiscal 2013, the power consumption
crude oil conversion emissions coefficients as well as the chilledwater and steam CO2 conversion coefficients were 9.97 and
1.36, respectively.

Volume of waste disposal by JGC
Yokohama World Operations Center

400

Efforts to Reduce Heating andCooling Consumption

Society

For cooling and heating, the Minato Mirai 21
District adopts a District Heating and Cooling
System designed for the efficient use of energy,
with centralized production, provision, and management of heat, cold, and steam for necessary
uses such as cooling, heating, hot water, etc.
The air conditioning of the Queen’s Tower A
building, where JGC’s Yokohama World Operations Center is located, receives all its heating
and cooling through this system.

341
300

Consumption of chilled water and steam by
JGC Yokohama World Operations Center

Rate of waste recycling by JGC Yokohama
World Operations Center

306

(%)

200
100

21,59818,28320,00019,40375

19,058

7,102

8,729

9,911

2012

67.5

50

2013

8,617

0

2010
2011

2012

65.4

25

0

2010

2011

65.3

(FY)

Steam

10,000

70.6

0

2010

Chilled water

15,000

5,000

309

300

100

(1,000MJ)
25,000In the Minato Mirai 21 District, all companies
recycle used paper, bottles, and cans under a joint
program to reduce waste and save resources.
In fiscal 2013, JGC’s total volume of waste
disposal edged down by 0.8% compared withthe previous fiscal year. While certain areas of
the Group were relocated as a result of organizational changes, the relevant departments
had only limited amounts of unnecessary files
requiring disposal.
While the volume of recycling waste emission was down, the recycling rate edged up
0.1% compared with the previous fiscal year to65.4% in fiscal 2013, which took into accountthe decrease in general waste (for incineration).

(1,000kg)

2013
(FY)

Efforts for Resource Saving, Waste
Reduction, and Recycling

2013
(FY)

2011

2012

2013
(FY)

Introduction

45

U si n g J G C’s E n viro n men t al Te chnology to Solve D ifficult Issues

Promoting Medium- to Small-Scale LNG Plant Projects
Feature Article
HSE

Using JGC’s Environmental
Technology to Solve
Difficult Issues
The JGC Group’s Environmental Technologies
and Environmental Conservation Activities

The Environment

As the demand for energy continues to rise
globally, and the development and production of shale gas continues to advance, manyobservers consider that natural gas will play animportant role as a comparatively environmentally-friendly energy source to bridge the gap
toward a renewable-energy-based, low-carbon
society. At the same time, the demand for liquefied natural gas (LNG) is expected to expand
steadily in emerging countries such as China
and India.
Recently, baseload LNG plants have tended
to be large in scale because of investment efficiency considerations.
JGC has contributed to the constructionof more than one-third of the world’s LNG
plants. Making full use of the technology andknowledge we have accumulated in this field,
JGC has developed a design and construction
concept for medium- to- small scale LNG plants
where demand is expected to increase. Withproduction on the scale of about one million
tons LNG per year, emphasis is being placed on
ensuring sufficient economic efficiency.
Image of a completed 1.0 MTPA LNG plantThrough the application of this design concept, JGC contributes to developing projects using as-yet undeveloped small- to medium-sizedgas fields into successful LNG operations. By
using this generic concept the time from frontend engineering design to plant start-up will be
shortened to three and a half years, down fromthe corresponding six to eight years for conventional LNG project development. Furthermore,
JGC has developed a Floating LNG (FLNG)
standard design concept to accommodate
annual production of between one million andtwo million tons in an effort to support offshore
gas field development. In this manner, energies
are being channeled toward addressing a broad
range of client needs.
In addition, LNG is also gaining momentum in the U. S. and Europe as a clean fuel forthe internal combustion engines of trucks andvessels, while new business models are understudy, such as the LNG production of thousands
to tens of thousands of tons per year from pipeline gas and its retail in LNG stations. By further
developing its medium- to small-scale LNG
plant concept, JGC will support the creation ofthis new LNG-based business chain.

Society

Keywords of JGC’s design concept
Low cost
Standardized design for reduced engineering cost

Short delivery

Ordering of preselected equipment and repeated orders of thesame equipment reduces delivery times

Compact

Modularization of plant equipment for minimized construction
work on site

Introduction

46

U si n g J G C’s E n viro n men t al Te chnology to Solve D ifficult Issues

Development of an Efficient CO2 Separation and Recovery Technology
Feature Article
HSE

JGC has developed the High Pressure Acid-gas
Capture Technology (HiPACT®) process inpartnership with BASF of Germany. HiPACT® is atechnology for high-pressure recovery of the CO2
in natural gas and synthesis gas. The technology
makes it possible to greatly reduce the energy
use and cost of CO2 underground storage, andcould help promote widespread use of Carbon
Dioxide Capture and Storage (CCS).

The JGC Group’s Environmental Technologies
and Environmental Conservation Activities

The Environment

Koshijihara Gas Plant of INPEX Corporation

After the completion of basic technology
pilot testing at our Research and Development
Center, JGC conducted demonstration testingof 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 2010. Now that testing has confirmed thatenergy reduction targets can be achieved, commercial applications are possible. Because it
reduces costs and operational energy, HiPACT®
could contribute to the early dissemination of
CCS, which is viewed throughout the world as apromising technology for achieving large-scale
reductions of CO2 emissions.

Development of NOx Removal Catalysts for Overseas Markets
Since introducing the world’s first honeycomb-shaped flue gas denitration catalyst in
1975, the JGC Group company JGC Catalysts
and Chemicals Ltd. has extended the licensingout of its production technologies not only inJapan but also to Europe, the United States,
and South Korea.
Focusing on China, which in recent years
has been showing remarkable economic
growth, JGC Catalysts and Chemicals has contributed to preserving the environment in thatcountry by licensing out there, too. The company has already completed the licensing out
of its production technologies for DeNOx (NOxremoval) catalysts for coal-fired power plants to
two Chinese companies.
One of the environmental problems in Chinais that of garbage. Landfill remains the country’s predominant method of garbage disposal,
which has resulted in such problems as wildfires
caused by fermentation and heat generation as
well as the hygiene problems caused by insect
pest outbreaks. The installation of waste incin-

erators to help solve these problems was under
way last year. NOx regulations were tightened in
China at the start of 2012, and waste incinerators are also subject to emission controls. However, DeNOx catalysts for waste incinerators
have different design concepts to those for coalfired power plants and, including JGC Catalysts
and Chemicals’ two licensees, there were no
manufacturers in China capable of producing
this type of catalyst. Having therefore won anorder to supply catalysts for the first waste
incinerator installed after China had tightened its
NOx regulations, JGC Catalysts and Chemicals
is aiming to steadily expand the market for thesecatalysts in China.
As a leading company in the global business for DeNOx catalysts, JGC Catalysts andChemicals will aggressively develop the business overseas by initiating contact with major
local companies in India, a market expected tosee growth in demand for environment-related
equipment alongside economic expansion.

Selective catalytic reduction (SCR) facility
Note: DeNOx catalyst is contained in the reactors visible on the right of the picture.
The volume of catalysts per reactor can reach several hundred cubic meters in total, depending on the size of the reactor.

SocietyIntroduction

47

U si n g J G C’s E n viro n men t al Te chnology to Solve D ifficult Issues

Biomass Power Generation Project Started for Greenhouse Gas Reduction
Feature Article
HSE
The JGC Group’s Environmental Technologies
and Environmental Conservation Activities

The Environment

Since the Great East Japan Earthquake, dispersed electricity generation, especially fromrenewable energy sources, has been attracting
attention. Because Japan is a heavily forested
country, the efficient use of woody biomass has
been a much studied topic. However, examples of commercialization have been limited,
because of the challenge of efficiently collecting
woody biomass, which is thinly spread overwide areas. In this context, Japan’s Ministry of
the Environment conducted its Challenge 25
Community Building Project (renamed Focused
Support Model Project to Create Low-Carbon
Communities in fiscal 2013), with the objectiveof expanding new energy projects including
those that use woody biomass. In the Shonai
region of Yamagata Prefecture, the Ministry put
into operation a demonstration project that uses
a woody biomass gasification cogeneration
system proposed by the JGC Group company
Japan NUS Co., Ltd.
By making use of the residue removed
after the thinning of mountain forests, orchard
prunings, and driftwood, this system ensuresthe efficient collection and necessary quantities
of woody biomass feedstock. The aim was highcommercial viability and profitability by process-ing these woody residues into wood chips foruse as feedstock in the demonstration plant,
from which power and heat would be supplied
to nearby PVC farm greenhouses and heat towelfare facilities. Plant installation and commissioning were completed during the first year, in
fiscal 2011. From fiscal 2012 to fiscal 2013, theplant operated normally for approximately 350
days, allowing its CO2 reduction effect and otherbenefits to be demonstrated. As a result, thegeneration of electric power by and the supply
of heat from the demonstration plant resulted
in CO2 emissions being reduced by 86.69t-CO2
per year. In addition, the demonstration plant’s
generator was a scaled-down 25kW version. A
feasibility study was undertaken into operating astandard 75kW generator for around 350 daysin parallel with the machine producing bio-diesel
fuel (BDF) at the demonstration plant, on theassumption of a profit in selling the excess BDF
used at the demonstration plant. As a resultof the feasibility study, it was discovered thatan investment subsidy rate of more than 28%
would be needed to recover the investment in
15 years, but were the subsidy rate 50%, asis common in subsidy systems, only 12 years
would be needed.

Effective use of material from cut-down trees (woodchip paving) at asolar power plant construction site
Solar power generation projects have spread
rapidly since the launch in Japan of a renewableenergy buyback program in 2012.
Coastal industrial zones and idle land at
landfill sites are seen as good choices for thebuilding of solar power plants. However, as
securing such sites has become more difficult
following the construction boom of recent years,
the trend is for the development of forest land
as a candidate for new construction sites.
On the other hand, the burden of the costs
needed to maintain forests and labor shortages are becoming serious problems for forest
owners in depopulated areas. The constructionof solar power plants is expected to be able togenerate new value in property while maintaining
harmony with nature.
The construction of a solar power plantrequires the felling of the minimum number oftrees. Although effective use can be made ofsome trees as a resource, tree felling forces
many trees to be treated as industrial waste.
A JGC Group company, JGC Plant Innovation Co., Ltd., proposes wood chip paving as

way to effectively utilize materials from cut-down
trees and has introduced the product at construction sites. Although the climate at Koshimizu, on the Sea of Okhotsk side of Hokkaido,means that snowfall is comparatively light, thewinds are strong, and the soil becomes frozen
to a depth of 80cm. The Koshimizu Solar Power
Plant construction site displayed many typicalsoil characteristics and was not a realistic prospect: poor drainage because of clay; places thatare almost impassable to vehicular traffic; and if
the topsoil had to be improved, the solar power
plant installation costs would be higher.
So, JGC Plant Innovation reused woodchip
materials made from cut-down trees and spreadthem on the road way, which improved the poor
drainage and enabled vehicular traffic. (Volume
of woodchip deposited: approx. 5,000m3; estimated amount of cut timber: approx. 30,000m2)
As an EPC contractor that eyes local
community issues and the effective utilization of
resources, JGC Plant Innovation will continue tobe actively engaged in environmental conservation activities in the years to come.

Forest development land turned over for the construction of a solar power plant.
Biomass power generation demonstration plant

Introducing woodchips (fuel)SocietyIntroduction48

Society▲

49 Close-up On-site personnel training initiatives
53 Our Contributions to Society▲

51 Personnel Development and Communication with Employees▲

Feature Article

Activities as a Corporate Citizen

HSE

Social prosperity and the development of our business are inextricably linked. Always giving consideration to our coexistencewith society, the JGC Group engages in diverse activities to fulfill our social responsibility.
The Environment

Establishing Client Satisfaction and Earnings Society’s Trust,Developing Our Business through Coexistence with Society
The above words are taken from the “Principles of Business Conduct of the JGC Group,” which wasformulated to guide JGC on the path to being an enduring company achieving consistent innovation.
Recognizing that our business development is inextricably linked with social prosperity, we always giveconsideration to our coexistence with society.

The Four Priorities of Social Contribution Activities
JGC, as a professional engineering contractor, has established the following principles in an effort tocontribute to the preservation of the global environment.

Society

1. Environment: To actively contribute to environmental conservation
2. Education: To support the education of the next generation of qualified professionals
3. Science and Technology: To support science and technology that will form thefoundation of sustainable development
4. Community: To contribute to the sustainable development of the areas where we
do businessIn this section, we cover specific examples of our education, science and technology andcommunity activities.

Introduction

Close-up

49

Feature Article
HSE

Field training Program
The Environment
Activities as a Corporate Citizen

Society

Since fiscal 2013, JGC has dispatched all new employees to construction sites inside and outside Japan for six months out of their first year.
By having them see with their own eyes and feel the plants that JGC
constructs as its final product at an early stage in their careers, the new
employees gain an understanding of how engineering blueprints drawn
up in Yokoyama are used in plant construction by experiencing construction in various stages. The ultimate aim is for the new employees
to experience the weight of the responsibility of delivering quality plants
to customers on schedule.
At overseas construction sites, there are times when people fromseveral tens of different countries come together to work. At the work
site, there is a mix of customers, vendors that supply materials andequipment, as well as subcontractors involved in plant construction
work, and they each have their own way of thinking and value systems.
In this environment, JGC expects new employees to represent the company and develop the leadership and teamwork skills necessary to aligneveryone toward the goal of completing the plant.
Of the new employees that have participated in this training, somehave said that while initially bewildered by the new environment, theyfelt the responsibility that they must fulfill, the teamwork built throughdaily face-to-face communication, and sense of accomplishment constructing a massive plant. JGC will continue to implement this training
program for new employees.

Introduction

Close-up

50

Feature Article
HSE

When JGC introduced this system, a new employee training
program, which had previously focused on classroom learning,
switched to a more hands-on style. In particular, one month
was spent training new employees about the work that is
expected of them as an employee of JGC while deepening theirknowledge of safety and technology at worksites. In addition toregular safety lectures, JGC works to raise awareness of safety
among employees by holding Safety Moments every morning,where new employees tell a story about safety based on theirown experiences, and through case studies of actual accidents.
For employees to increase their knowledge about plants
at an early stage, employees are taught lessons where they

The Environment

create piping and instrumentation diagrams for an entire plant,
given opportunities to operate a small-scale prototype plant,
and provided with other training to ensure a smooth transition
to actual worksites.

Activities as a Corporate Citizen

SocietyIntroduction

51

P e r so n n e l Develo pmen t an d Com m unication with Em p loyees

Personnel Systems
Feature Article

JGC’s fundamental policy for personnel systems
is defined as the “autonomous development andcreation of new value.” In 2001, we introduced apersonnel system that aimed to “enable employees to autonomously develop their professional
skills, while sharing the strategic direction of the

HSE

Personnel Development andCommunication with
Employees

The Environment

As an engineering company, JGC’s sustained growth depends upon
our people.
Therefore, the JGC Group focuses on personnel development andcommunication with our employees.

company, and offering new value and contributions to customers and society.”
Improving our systems when appropriate,
we strive for the growth of the Company and of
its individual employees.

Personnel Development(A) Personnel Development Initiatives
As an engineering company that does notpossess assets such as production facilities,
JGC’s most important assets are its personnel.
Each person is regarded as a professional in
the engineering business, and thus we provide
personnel development programs that bringout their abilities and enable them to play anactive part on the world stage. The scope ofthe development programs ranges from all
forms of engineering technology to Englishand Japanese-language business skills andleadership development.

(B) JGC Techno College Held
In addition to the personnel development programs offered by the Company, the JGC Techno
College was founded in 2001 as a place where
motivated personnel can voluntarily participate
in continuing education courses. Senior staff
members volunteer to act as instructors at thecollege and organize and run the sessions,
thereby helping to pass on their skills andexperience to younger employees. The college
also invites prominent experts from Japan andforeign countries to give lectures. In fiscal 2013,
JGC held approximately 210 lectures that wereattended by more than 2,200 employees.

Activities as a Corporate Citizen

SocietyIntroduction

52

P e r so n n e l Develo pmen t an d Com m unication with Em p loyees

Personnel Diversity
Feature Article
HSE(A) Development of Global Recruitment
Up to now, JGC has been involved in morethan 20,000 projects in 80 countries acrossthe world. To further strengthen its involvement in projects undertaken on a multinational basis, JGC is promoting diversity interms of the nationality of its employees.
The Company is enterprisingly conducting
recruitment drives at universities outside
Japan and employing exchange students
who come to Japan.
(B) Giving Senior Staff Members a New
Lease of Life
Under the Revised Act for Stabilization of
Employment of Older Persons, the Company
is implementing a re-employment system for
employees aged 60 or over. In principle, all

The Environment

Company information session for foreign students

Efforts toward a Work-Life Balance
those who wish to participate in the program
are re-employed. In addition to assuming the
responsibility of continuing in employment,
the senior staff member elements are passing on their techniques, providing advice, andmaking a major contribution to the training ofyoung engineers.
(C) Employment of the Disabled
Under a law promoting their employment,
JGC actively works to comply with the legal
ratio of employees with disabilities. Efforts
are made to upgrade or improve workplaceenvironments to cater for the type and degree of a person’s disability.

(A) JGC Family Day(Bring-Your-Child-To-Work Day)
Held annually since 2009, the JGC Family
Day allows children to observe their parents’ workplaces. In addition to developingchildren’s social awareness and fostering theconcept of work and occupation, the aim
is for them to gain an understanding of thework family. The event is designed for employees’ children in the fourth to sixth gradesof primary school. In fiscal 2013, 14 children
attended, exchanged handmade businesscards with their parents’ work colleagues,
and observed work and meetings in theactual company office.
(B) Support for Childcare/Nursing CareTo enable employees to care for their families
or children, the Company introduced a
Employees and their children participating in the JGC Family Day

system that includes leave of absence, timeoff, and reduced working hours. Since 2007,
JGC has also consistently gained the Kurumin Mark accreditation in recognition of its
active support for the bringing up of children.
(C) Health Checks, Mental Health
The Company implements, for example, partially subsidized medical checkups, including
regular health checks that are held in-house
twice a year, and actively works to improveawareness of health issues among its employees. Besides requiring its managers toattend mental health workshops, interviews
are conducted by industrial physicians at our
on-site health management centers.

Activities as a Corporate Citizen

SocietyIntroduction

53

O u r C o n t ribu t io n s t o So ciet y

Educating Future Engineers (Piping Layout Training Center)Feature Article
HSE

Our Contributions toSociety

To train plant piping layout engineers, who are expected to be in short supply in the years ahead,
the JGC Group company, JGC Plant Innovation
Co., Ltd., opened a Piping School in Morioka
City, Iwate Prefecture, in April 2007.
Among other people, the school hires highschool graduates from the area with an interest inindustrial plants and design. After one year of intensive training in basic design techniques at theschool, they refine their skills through on-the-job
training (OJT) in Yokohama. By 2014, 61 students
had graduated and were already accumulating
experience through this OJT system.

The Environment

General view of OJT (On-the-job training)

JGC Plant Innovation established Morioka-based Plant Engineering Morioka Co., Ltd.
as a piping layout training center to take on the
responsibility for training from fiscal 2013.
Plant Engineering Morioka is taking chargeof plant design for some portions of the projects
that the JGC Group is working on worldwide.
This initiative is attracting local interest within
Morioka City, as a measure that is helping toprovide young people with stable jobs.

Activities as a Corporate Citizen

SocietyIntroduction

54

O u r C o n t ribu t io n s t o So ciet y

JGC-S Scholarship Foundation: Support for the Next Generation
Feature Article
HSE

Through the JGC-S Scholarship Foundation,
JGC contributes to the cultivation of scientists
and the advancement of science and technology in Japan and overseas. The foundation
was established in March 1968 with an endowment from JGC founder Masao Saneyoshi. Its
principal undertakings include the provisionof educational loans to Japanese university
and graduate students majoring in scientificand technical fields, grants to foreign students
studying in Japan, and research funding assistance for young researchers.

The Environment

Fiscal 2013 grant students

As of fiscal 2013, the foundation has provided assistance to a total of 20,233 persons,through educational loans to 13,656 students
and educational grants to 6,577 students(1,374 Japanese and 5,203 foreigners studying
in Japan at their own expense). The foundation
has also provided research funding assistanceto a total of 2,118 young researchers. Annual
disbursements have reached 331 million and
180 thousand yen. Having set up a special
reserve for victims of the Great East Japan
Earthquake following fiscal 2012, the foundation is supporting students affected by the2011 Great East Japan Earthquake who areattending either three foundation-designateduniversities in the disaster-stricken areas or twoother non-designated universities.

Science Classes for Children
With the aim of interacting with and contributing
to local communities, JGC Group company JGC
Catalysts and Chemicals Ltd. holds science
experiment classes every year for elementary
school students at its Kita-Kyushu Operation
Center in Fukuoka Prefecture.
As a chemicals maker, we hope to piquethe curiosity of children in science throughthese classes and for them to have thoughtsof aiming to become researchers in the future.
Every year, the classes are so popular that they
are filled to their 20-student capacity a day after
registration opens.
In 2013, we also held a class for around 20
students from a neighboring elementary school.
There are students who attend every year, whichmakes topic selection difficult, but this time wedemonstrated three experiments: the dilatancy effect experience, using potato starch; the–196º C world experience, using liquid nitrogen;A science experiment class with children

and the air cannon experience. The experiments
were of great interest to the children, who could
not tear their eyes away as they tried to imagine
how the experiments worked.
The children worked to first to complete
the experiments, and it was very impressive to
see them having fun that used all five senses.
Moreover, in the “air cannon experience,” thechildren came up with more and more new
ways to play, and you had to admire the abundance of their ideas.
JGC Catalysts and Chemicals believes thatthe experiments provide children with an opportunity to deepen their interests and that theysense the significance in the fun they derive fromthose experiments. Looking ahead, the company will maintain its strong relationships with local
communities and would like to continue contributing to society.

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O u r C o n t ribu t io n s t o So ciet yContributing to Project Engineering Management Personnel
Training in Singapore
Feature Article
HSE

Our local affiliate in Singapore, JGC Singapore PTE LTD, accepts a few college students
every year through an industrial attachment(IA) placement program promoted by Nanyang
Technological University (NTU), an elite national
university established in 1991 by the National
University of Singapore (NUS).
In fiscal 2013, during the six-month period from January to June, JGC Singapore PTE
LTD’s Process Engineering Division took in two
students, one from NUS, and one from NTU.
The two university students were provided withthe opportunity of on-the-job training with topclass JGC Singapore engineers working on thefront line. In addition to being exposed to expert
knowledge, the students experienced the intricacies of the EPC business.

Furthermore, the Singapore Economic
Development Board (EDB) launched an Engineering Services Roadshow in fiscal 2013 thattargets students from both of the abovementioned universities, as part of its plans to train
project engineering management personnel.
Having also received a request from the EDB,JGC Singapore participated in the initiative anddeepened knowledge of project engineering
management through Q&A sessions with students and a stand at the roadshow.
JGC Singapore believes it is fulfilling its
social responsibility as a member of the local
community and would like to support the training of the personnel who will be responsible forthe next generation by participating in activities
such as this.

The Environment

Process engineers and the IA students at JGC Singapore’s Civil Engineering Division

Donation for Massive Flood Damage in Indonesia
Extensive flood damage is caused when theannual rainy season arrives in Indonesia, where
PT. JGC Indonesia is based. The floods in January 2013, when Prime Minister of Japan Shinzo
Abe made his first visit to the country, resulted inextensive damage that was enough to paralyze
the functions of capital city Jakarta. The flood
damage caused by the rainy season from early2014 dealt a serious blow to the Indonesian
economy. In the floods caused by the torrential rain in mid-January 2014, close to 40,000
people were evacuated in Jakarta alone. JGC
Indonesia employees were in the same situation, as their routes to work were submerged infloodwater, and many were unable to leave forwork as their homes were flooded.

The handover of the relief funds in Indonesia

Under these circumstances, employees at
JGC Indonesia played a pivotal role in soliciting
donations, contributing to assist those affectedby the floods by raising 25 million rupiah (around
250,000 yen) for distribution via the Aksi Cepat
Tanggap (ACT) fund and also donating relief
supplies.
Employees at JGC Indonesia also takethe initiative in other ways. For example, they
make local donations to coincide with religious
festivals, such as the Islamic Eid-al-Fitr (End of
Ramadan), and visit and give donations to orphanages at Christmas time. In Indonesia, actsof giving to the needy are widely performed on adaily basis, and the employees and the company and would like to continue to work together
to provide assistance in the years to come.

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O u r C o n t ribu t io n s t o So ciet yDonation of Relief Funds for Those Affected by Typhoon Haiyan
in the Philippines
Feature Article
HSE

On November 8, 2013, typhoon Haiyan struck
the central Philippines and caused extensive
damage.
To provide relief for those affected and toassist in the recovery and reconstruction of
the disaster-hit areas, the Company and JGC
Philippines, Inc. donated a total of 8 million
pesos (approximately 18 million yen) to the GMA
Kapuso Foundation established by the major
Philippine TV network GMA.

The Environment

The handover of the relief funds in the Philippines

In parallel to the money raised for thefoundation, in-company donations were also
encouraged, and nearly 1.7 million yen collectedfrom directors, employees, and other people
involved. The donation was handed over to the
Embassy of the Philippines.
Particularly in respect of natural disasters
in areas where it has close business links, the
JGC Group would like to continue undertaking
activities that assist relief operations.

Students Tour of the Donggi-Senoro LNG Project Site
Tours of the Donggi-Senoro LNG Project in Indonesia were held for high school and university
students from central Sulawesi. Started in 2012,
the program has held tours on 10 occasions, inwhich a total of 482 students have participated.
The program has two major aims. One isto convey to local residents the reasons forthe Donggi-Senoro LNG plant construction
project. In the area surrounding this project are
more than 50 villages of various sizes, and it isessential for the smooth running of the projectthat JGC builds a good relationship with thelocal community. The students who take partin the plant tours speak about JGC’s business
contribution in conversations with their families,
which leads to the adults in the area gaining abetter understanding.

Another aim is to provide a catalyst for all
the students who take part to think about their
future careers through the plant tour. In muchthe same way as social studies field trips areundertaken in Japan, we would appreciate it if
all the students were to gain an interest in the oiland gas field from having actually experienced
what it is like at the front line.
We also believe that these kinds of events,
which are geared toward all young people, contribute just as much to the future of the countries in which they are held. Even if it is only oneof the students who took part, it is our hope that
we are encouraging a younger generation thathas many high aspirations and dreams.

Students who took part in a plant tour flanked by company employees.

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57

O u r C o n t ribu t io n s t o So ciet yBarzan Project
Educational Support Activities for Children at Japanese School in Qatar
Feature Article
HSE

The Barzan project in Qatar undertakes educational support activities for children at the DohaJapanese School. All the teachers and children
from the Japanese School were invited to thesite and given an overview of the project as well
as a simply worded explanation of the contribution it is making to the country of Qatar. On theplant tour, in front of a huge structure the like ofwhich cannot be see inside an ordinary school,
all the children’s eyes sparkled as they listened
intently to our commentary.
Staff from the Barzan project had visited theJapanese School beforehand to give a lecture.
They visited the Japanese School to give a pretour lecture to get the children, who will play aleading role in the future, interested in or developing a liking for environmental conservation.

They were provided with illustrations of thecontribution being made to the environment at
the Barzan project, given a simple explanationof the processes, from the familiar sorting of thegarbage to the garbage being recycled, followed
by a quiz devised so that the children would
have fun while learning. Looking ahead, wewould like to continue these educational support
activities that contribute to local society.

The Environment

A group photo taken during the plant tour.

Sales of Bread Hand-Made in Facilities for the Disabled
JGC is continuing the initiative, started in
January 2012, of using the lunchtime period to
support sales of bread baked by physically ordevelopmentally challenged people at facilities
for the disabled in Yokohama City. The initiative
supports the local community near JGC’s head
office and provides employees with the opportunity to make a social contribution in a simple
way. Aimed at helping Yokohama residents withdisabilities participate in society, this project
became possible through the cooperation
between the city of Yokohama, which supports
efforts to address such issues as finding sales
opportunities and channels for products madein these facilities, and JGC, which was considering contribution activities aimed at benefitting
the area.

The area where the bread is sold is crowded with employees.

A scene from the on-site lecture

Vendors were selected through food tasting
sessions and test sales organized by members of related divisions of JGC, and there are
currently five facilities (including two facilities onalternating weeks) selling bread on four days aweek on a day-by-day rotating basis.
The bread is moderately priced, tastes
good, and is very popular with JGC staff.
The bread is sold at the lunchbox vending
space, on the sixth floor of the JGC Yokohama
World Operations Center. Workers from othernearby offices are also welcome to purchasetheir lunch here, as the space is open to the
public (for about one hour from 11:30, on business days only).

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O u r C o n t ribu t io n s t o So ciet ySponsorship of the “Fureai Concert-Fostering the Heart” in Yokohama City
Feature Article
HSE

Since fiscal 2011, JGC has been a sponsor of
the Fureai Concert Series “Fostering the Heart”
organized by the Board of Education of Yokohama City. This initiative comes under education and community, two of JGC’s four major
CSR priorities.
The Fureai Concert Series “Fostering theHeart” has been held since fiscal 1998 for upper
grade pupils of municipal elementary schools
and the elementary departments of schools forthe deaf and blind as well as for the physically or
mentally disabled. The purpose of the concert
series is to hone students’ sensibilities throughmusic appreciation and to nurture participants’qualities and abilities so that they try to live
their lives to the full. Greatly appreciated by thechildren, the concert series is attended by about
33,000 pupils in total (approximately 3,300
pupils per day).
Every year, the concert series includes
performances by the Kanagawa Philharmonic
Orchestra and organ performances. Also acting
as the master of ceremonies, the conductor
provides the audience with playful, easy-to-understand explanations of the pieces performed,
allowing not only children but also parents andother adult participants to develop their cultural
knowledge while enjoying the music.

Forest Conservation in the Watershed Forests of Kanagawa Prefecture
To commemorate its 80th anniversary, JGC became a watershed forest partner in Kanagawa
Prefecture’s Water Source Conservation Projectin August 2008 and launched an environmental
conservation project that marked its fifth year
in 2013. In September 2013, a donation wasmade to Kanagawa Prefecture and the decision
taken to continue as a forest renewal partner inthe project for another five years. Through the
project, employees of the JGC Group assist
with watershed forest conservation while deepening their understanding of the role of watershed forests and the importance of coexistingwith nature.
Activities are carried out once a month, andin fiscal 2013 more than 100 employees participated in various events, including forest walking
tours and aquatic wildlife observation tours,

The Environment

Many employees participated along with President Koichi Kawana

Social Welfare Grants by the JGC Social Welfare Foundation

Activities as a Corporate Citizen

Society

The JGC Social Welfare Foundation provides
welfare equipment for persons with physical disabilities, as well as funding for support groups
and volunteer organizations for senior citizens
and persons with disabilities in Kanagawa
Prefecture. Established in March 1994, by fiscal
2013 the foundation had made 641 contributions to support groups, 412 contributions tovolunteer organizations, and 19 contributions
to other groups. In fiscal 2013, the foundation
made 50 contributions to support groups, 26
contributions to volunteer organizations, and six
contributions to other groups.

which gave them the opportunity to enjoy occasional contact with nature in all four seasons.
In September 2013, a large bus was chartered
for an event that was attended by around 50
people, including the president, employees, andtheir families. En route, those on board the bus
were given an explanation of the significance ofwatershed forest conservation. Upon arrival at
the forest, they were divided into three groups—
Tree Thinning, Craftwork, and Forest Walking
Tour—under the guidance of an instructor. While
exchanges between those present transcended
generations and nationalities, all learned about
the importance of forest conservation.
We plan to increase our ongoing efforts
in environmental initiatives, for example byeven introducing forest activities into new
employee training.