Environmental & Social Report 2014
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Environmental & Social Report 2014 Introduction ▲ 1 3 Message from the Chairman ▲ 6 JGC’s Basic CSR Policy ▲ 8 Relationships with Major Stakeholders About this Environmental & Social Report ▲ 9 Corporate Governance ▲ 12 Risk Management ▲ 14 Operations of the JGC Group Feature Article Feature Initiatives at the JGC Group Aimed at Initiatives at the JGC Group Realizing a Sustainable Society Guidelines Used as a Reference in ▲ 17 Efforts to Address China’s Environmental Problems Connection with the Disclosure of ▲ 20 Efforts to Mitigate the Effects Global Warning Editorial Policy Non-Financial Information The purpose of this report is to present to our ● ISO 26000, an international guidance stakeholders the CSR efforts of the JGC Group, standard for social responsibility issued by the with a focus on environmental conservation. International Organization for Standardization JGC aims to be the No. 1 contractor in HSE. ● HSE This year’s feature article covers our “Initiatives The Sustainability Reporting Guidelines Aimed at Realizing a Sustainable Society.” In Version 3.0 (G3), an international guideline this context, we report on our efforts to address concerning corporate sustainability reporting environmental issues in China as well as details issued by the Global Reporting Initiative (GRI) ▲ 24 Close-up JGC Aims for Zero Incidents and Injuries of global warming countermeasures. ● The Environmental Reporting Guidelines 2007 ▲ 27 Occupational Health and Safety In addition, we provide details of the Group’s issued by Japan’s Ministry of the Environment endeavors as they relate to three pillars of our business: “HSE—Becoming the Leading Global Health, Safety, and the Environment Contractor;” Scope of Reporting “the Environment—the JGC Group’s The JGC Group’s Environmental Technologies Technologies Environmental The JGC Group’s and Environmental Conservation Activities and Environmental In principle, this report covers consolidated The Environment ▲ Environmental Technologies and Environmental 31 Close-up Environmental contributions in China subsidiaries and affiliates accounted for by the ▲ Conservation Activities;” and “Society—Activities 33 Environmental Policy equity method. However, details of activities ▲ as a Corporate Citizen.” 34 Environmental Considerations Associated with Business Activities that fall outside the aforementioned scope of ▲ 38 Safety and Environmental Consideration in Investment Projects and Research & Development reporting are clearly identified in each case. ▲ 40 Continuous Improvement of Management Systems ▲ 41 Environmental Objectives, Targets, and Achievement ▲ Publication of Next Scheduled 43 Environmental Report on Office Activities This Issue Publication ▲ 45 Using JGC’s Environmental Technology to Solve Difficult Issues August 2014 August 2015 Society Activities as a Corporate Citizen Reporting Period Publisher This report is compiled principally on the basis of data for fiscal Corporate Administrative & Financial Affairs Division ▲ 2013 (from April 1, 2013 to March 31, 2014). Important matters Public Relations & Investor Relations Department/Corporate 49 Close-up On-site personnel training initiatives ▲ (those regarded as highly significant) concerning activities Administration Department 51 Personnel Development and Communication with Employees outside the reporting period (up to July, 2014) are also included Quality Assurance, Safety & Environment Office ▲ within the scope of this report. 53 Our Contributions to Society Contact telephone number: +81-45-682-8026 JGC website URL: http://www.jgc.com Introduction 2 About JGC The JGC Group Feature Article Feature Name: Employees (approx.): As an engineering contractor, the JGC Group’s core business is providing planning, design engineer- ing, equipment procurement, construction (EPC), and commissioning services for various industrial JGC: 2,200 persons JGC Corporation plants and facilities. The JGC Group is also involved in enterprise investment businesses, management 10,000 Domestic EPC Affiliates: 3,000 persons services, the manufacture and sale of catalysts and fine chemicals, and others. persons (as of March 2014) The scope of this report mainly includes the JGC Group companies listed at right. Overseas EPC Affiliates: 4,800 persons Locations: Total Engineering Business Catalyst and Fine Chemi- Other Businesses (EPC Business) cals Business (IT and Consulting Businesses) Yokohama World Operations Center Research and Development Center HSE 2-3-1 Minato Mirai, Nishi-ku, Yokohama-shi, Kanagawa 2205 Narita-cho, Oaraimachi, Higashi-ibaraki-gun, Ibaraki JGC JGC Catalysts & Chemicals JGC Information Systems Tokyo Corporate Office Domestic Office JGC Plant Innovation Nikki-Universal Japan NUS 2-2-1 Otemachi, Chiyoda-ku, Tokyo Osaka JGC Philippines Japan Fine Ceramic JGC Energy Development and MM Park Building Office Overseas Offices others 3-6-3 Minato Mirai, Nishi-ku, Yokohama-shi, Kanagawa Beijing, Jakarta, Hanoi, Perth, Almaty, Abu Dhabi, Paris and others JGC Gulf International 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) Net Sales by Industry (2013) Net Sales by Region (2013) (Billions of yen) 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 Oil and Gas Development 23.4% Petroleum Refining8.2% 2013 6,758 Japan 13.0% LNG 47.7% Southeast Asia 19.0% 6,246 Petrochemicals and Chemicals 5.6% 2012 Net Sales The Middle East 21.2% Net Sales Power Generation/Nuclear Power/ 675.8 New Energy 2.9% 675.8 Africa 6.5% 2011 5,569 billion yen billion yen Society Living and General Production 2.8% Oceania 31.9% 2010 4,472 Environmental Protection, Others 8.4% Social Development and IT 2.0% 4,142 2009 Others 1.9% Catalyst and Fine Chemicals 5.5% Introduction 3 Message from the Chairman Feature Article Feature HSE Channeling our engineering capabilities, a sustainable The Environment society is well within our grasp. Society Introduction 4 Message from the Chairman A world in need of greater energy Is it possible to balance growth in energy consumption Feature Article Feature reserves and resources with efforts to secure a sustainable society? The world’s population is rapidly increasing. In By geographic region, capital investment Against the backdrop of a rapid increase in The JGC Group remains committed to 2011, the number of people inhabiting the planet has extended across the full gamut of energy the world’s population, the global economy, ongoing steps aimed at resolving this issue totaled seven billion. This figure is projected to resources, from upstream fields including and in particular the economies of newly by leveraging its engineering expertise. These surpass nine billion in 2050. Led by such nations petroleum and natural gas to downstream fields emerging nations, is experiencing robust efforts are consistent with the Group’s core as China and India, countries with substantial in the Middle East. Conscious of export activity growth. At the same time, greenhouse gases philosophy which emphasizes its mission to populations, the emerging markets that make up to the Asia region, which remains the world’s emissions, attributable to the consumption of “contribute to the prosperity of the economy and the Group of 20, including Southeast Asia, the most prominent destination for LNG, projects fossil fuels, have resulted in a broad range of society while protecting the global environment, HSE Middle East and Latin America, are experiencing continue to progress throughout Southeast Asia. climate change issues which attract widespread and aim for sustainable development as a remarkable growth. As a consequence, demand In North America, multiple projects are currently concern. In its fifth assessment report, covering globally active company with its core business in for energy continues to expand at a robust in the planning stage. These projects include the period from 2013 to 2014, the United engineering-based services.” pace. According to the International Energy gas chemicals and LNG, which adopt affordable Nations’ Intergovernmental Panel on Climate For example, engineering is an essential Agency, investments aimed at increasing the shale gas a primary feedstock. Change has issued a warning that a greenhouse process in the construction of facilities for the supply of energy totaled US$1.6 trillion (¥164 While there are indications of light at the end gas-induced increase in the global temperature production of liquefied natural gas (LNG), a trillion) in 2013. This was twice the investment of the tunnel for both the United States and the of two or more degrees will lead to a serious form of clean energy, the effective utilization of undertaken in 2000 after adjusting for inflation. European economies, the global economy as a decline in food production. Despite these grave previously unused resources such as low-rank whole remains stagnant. Despite the uncertainty concerns, Japan’s consumption of fossil fuels coal, development of renewable energy such as surrounding a significant number of industries, for thermal electric power generation use are on photovoltaic and solar thermal power, and the The Environment the energy field stands virtually alone in terms of the rise, mainly the result of the suspension of implementation of systems for water and soil its brisk capital investment. operations at nuclear power plants. Greenhouse purification, air pollution prevention, and energy gas emissions have subsequently