Chiyoda Corporation has continuously kept dialogues with experts of sustainability since FY2017.
In FY2019 which is the first year of our revitalization plan, we received honest advices on management strategy containing sustainability and development of human resources. Responding to the expectations of stakeholders as much as possible will lead to establishment of a stable relationship with society and forms a basis of a strong corporate system.
We will firmly reflect the advices of stakeholders in our business activities and create the future as an engineering firm.
Stakeholder Dialogues in FY2019
Becoming a Company Even More Essential to Society by Merging Sustainability with Management
Mr. Masao Seki Adjunct Professor, School of Business Administration, Meiji University
This is our first year driving toward renewal as a group, and this year's report clearly shows our will to work even more proactively on global issues, advancing the integration of sustainability and management strategy more than ever.
Have the strengths we've continued to heighten in energy and the environment since our founding ever been more necessary for society?
We must polish our technical skills even further, and grow to become a company even more essential to society.
The new corporate management system launched in July 2019 resolved that President and COO Santo would also serve as CSO (Chief Sustainability Officer). This sends a strong message internally and externally that we are merging sustainability with management even more solidly.
We should also focus on the role of the Carbon-Free Promotion Office on June 1, 2018 (current: Carbon Recycling Business Office), established last year. I want us to use our abilities to the utmost as an engineering company that shapes the future of the global environment, as we fight against climate change. Special, urgent reinforcements for efforts of all sorts are required, as this is the issue with the greatest gap between reality and achievement of all SDGs.
For concrete results, we are working as the single contractor for the world's largest storage battery system's construction in the town of Toyotomi, Teshio District, Hokkaido Prefecture, and we also delivered home consumption- style solar generator systems for the village of Toshima as a disaster-prevention measure on the isolated island. Thanks to our record and experience in technology worldwide, we are able to provide solutions that suit diverse and varied sets of regional needs.
Points Where Future Efforts Need Reinforcement
We need to show more specific issues and road maps for efforts to achieve our vision for renewal and the future, and thus realize our corporate philosophy by providing society with value that incorporates our technological strengths. We should also work on setting longterm goals.
We have made major steps by seriously addressing points cited last FY and in drafting and disclosing our Human Rights Policy. It is also positive that we are considering the human rights of children and working to ensure armed security consider the needs of local communities. As a next step, we need to find human rights risks across our entire value chain, and work to create a system of human rights due diligence.
We should focus more on approaching and involving stakeholders. We will definitely need the support of diverse stakeholders to plan and implement the type of projects that lead the way for the society of the future.
A Future Only Chiyoda Group Can Shape, Formed through the Development of Flexible, Diverse Human Assets
Mr. Kenichi Takayasu Professor, Department of Economics, Dokkyo University
CHIYODA Corporation announced our "Renewal Plan –Vision for Renewal and the Future-" in May 2019, showing our longterm route toward management restructuring. We anticipate that the three pillars of advancing sophistication in our risk management system, evolving our EPC control strengths, and expanding and advancing human assets will produce not only improved financial results but also more satisfying non-financial results.
Only human assets can implement our Renewal Plan. The employees working passionately to resolve issues are the true source of Chiyoda Group value creation. Even advanced technology amounts to little unless paired with human assets.
I would like to consider the three following points regarding human asset development. First, there is securing diversity of ideas through hiring of human assets without regard to gender or nationality. This is precisely as noted in "activities by diverse human assets" under "Respect for Human Rights" in our CSR Values. Second is developing human assets capable of immediately spotting shifts in technological trends and putting those to use in work. Both construction and operating periods are long in the energy and environmental fields. Meanwhile, the technological revolution in AI is blindingly quick, and it is not coming from engineering companies. Third, human assets familiar with non-technical fields and capable of observing long-term changes in worldwide lifestyles. For example, what kind of ideas do you come up with when you ask yourself about the relationships our technologies will have with babies born this year, over the course of their lives? Imagining the people behind our corporate clients can provide ways to use the technologies we possess.
In business portfolio terms, we have produced a policy that emphasizes the global environment through solar power, biomass, marine wind turbines, and energy management services (EMS), while incorporating steady growth of demand for LNG, all under the umbrella of our Renewal Plan. These fields have deep ties to the SDGs and global environmental issues.
The contents of our renewal plan are tailored to global issues that require resolutions.
While the SDGs are not legally binding as some regulations are, they are becoming "soft" laws which restrict activities when violated, and it is growing more vital for companies to emphasize their efforts to address the SDGs. This year's Sustainability Report is our first to list contributions toward an estimated 1.18 billion ton reduction in CO2 emissions by 2030 through our LNG and renewable energy businesses.
This should be a useful and powerful indicator for inviting ESG (Environmental, Social, and Governance) investment.
The calls increase in intensity by the day for private companies to take the lead in driving innovations to resolve societal issues. We want to see a future that only Chiyoda Group can shape. The world has high hopes for us.