Compliance

Our initiative to compliance

Policy

Chiyoda Group defined, 'compliance' as activities to maintain the social validity of the Chiyoda Group operations, to ensure compliance with company rules, domestic and international laws and regulations and international agreements and safeguard respect for human rights, harassment prevention and information security. In addition to complying with laws and regulations, Chiyoda Group has endeavored to promote and thoroughly implement compliance measures while responding to stakeholders' expectations as a corporate citizen, and has promoted sincere, equitable and fair corporate management at all times as a member of society.
We understand that in order to create new value and realize sound, sustainable growth amid a business environment that is changing at a dizzying speed, compliance with laws and regulations as well as fostering awareness of compliance based on a strong sense of corporate ethics will increase the trust of all of our stakeholders and lay the foundations for sound growth.
Officers and employees are dedicated to achieving even greater transparency and stability by conducting our operations fairly in accordance with the highest ethical standards in order to achieve transparent and sound corporate management and to respond to the trust of all stakeholders.

Compliance system

The board of directors appointed the Chief Compliance Officer (CCO) who is responsible for all issues related to compliance of Chiyoda Group, and has authority to investigate if any non-compliance or potential non-compliance is found, and to issue an order for improvement or termination of such action.
The Compliance officer (CO) of each division is to serve of his or her own divisions and is responsible for implementing measures and policies related to compliance in his or her division under the supervision of the CCO.
The president of a group company or his or her proxy is to serve as the Group Company Compliance Officer of his or her company. The Group Company Compliance Officer is responsible for implementing measures and policies related to compliance under the supervision of the CO of the governing division.
If officers and employees become aware of, or determine that there is a risk of, a non-compliance in the Chiyoda Group, they shall report it to, or consult with, their supervisor to detect, prevent or immediately correct the non-compliance. The supervisor who receives the report or consultation shall immediately inform the CO of the issue, and ultimately, it is structured to be reported to the CCO.

Chiyoda Corporation holds the 'Compliance Committee' and the 'Group Companies Compliance Liaison Meeting' twice a year as a general rule.
The 'Compliance Committee' is an advisory body to the CCO, with the CCO serving as the chairperson and the CO as members. This committee coordinates and communicates compliance measures.
The 'Group Companies Compliance Liaison Meeting' is an organization aimed at promoting compliance-related matters and initiatives across domestic and international group companies. It is chaired by the CCO, with Group Company Compliance Officers as its members. This organization facilitates communication and discussions regarding compliance measures among the group companies.
Chiyoda Group will create a more effective compliance system by reviewing its management system from time to time.

Efforts to Prevent Compliance Violations

Risk Assessment

Chiyoda Group regularly assesses compliance risks associated with Chiyoda Group's business and identify compliance risk items that need to be addressed. For those compliance risk items identified as high risk, we have developed and implemented specific preventive measures. Additionally, we regularly review and improve these preventive measures.

Compliance Training

Chiyoda Group is committed to enhancing each employee's awareness of compliance and acquiring knowledge of laws and regulations related to business operations, through various training programs, including 'new employee training'. Our training is conducted in various formats, such as group training and e-learning, and we are working to enhance learning effectiveness by maintaining records of participation and verifying understanding.Please see our ESG Fact Sheet for compliance training records.

Initiatives for High-Risk Compliance Items

Based on the result of risk assessment, Chiyoda Group has identified 'anti-bribery,' 'prevention of cartels and bid-rigging,' 'disconnection from antisocial forces,' 'security trade control,' 'economic sanctions,' and 'respect for human rights' as high-risk compliance items. To address these risks, we have developed and implemented preventive measures, including development of internal regulations, introduction of prior application/approval procedures, and implementation of compliance risk assessments for business partners.
Specific initiatives to address anti-bribery risks, which has been identified as particularly high risk within Chiyoda Group business operations, are outlined in the "Chiyoda Corporation Group Basic Policy on Anti-Bribery."

Monitoring

Chiyoda Group conducts periodic monitoring of the status and effectiveness of its compliance initiatives, and if required, implements improvement measures. Further, all divisions in Chiyoda Corporation and group companies conduct self-assessment every fiscal year to examine their compliance activities.

Consultation and Reporting System

To detect illegal activities, misconduct, and human rights violations, including harassment, at an early stage and to ensure corrective actions and prevent recurrence, Chiyoda Group has established a group-wide consultation and reporting system. We have established not only internal reporting channels but also external reporting channels (law firms and specialized external agencies).
Additionally, we distribute 'Consultation and Reporting Cards' (in both Japanese and English) that include the contact information for internal and external reporting channels to all employees, including those in domestic and overseas group companies, to raise awareness of the compliance consultation and reporting system.

For more details about the consultation and reporting system, please see below.

Past Records

As of March 2025, there were no compliance violations that had a significant impact on the management of the Chiyoda Group.