CSR/Environment

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Keisuke Takeuchi Chairman and Representative Director JGC Corporation		I wish to once more express my deepest sympathy to all those affected by the Great East Japan Earthquake. As I write this message, the JGC Group is maximally contributing its long-accumulated multi-disciplinary engineering expertise to aid in the recovery of its clients' facilities and the most rapid possible restoration of the disaster-affected regions as a whole.

		Engineering: A Pre-Requisite for Sustainable Development
		In 1872, during the Victorian Era, at the height of the wealth and glory of the British Empire, a memorial was built in South Kensington, London, to honor the late
Prince Albert for the support he gave to his wife Queen Victoria, and the prosperity he brought to the Empire. Sculptures at the base of the Albert Memorial represent the four industrial arts that were essential for the ruling of the Empire: Agriculture, Manufacture, Commerce, and Engineering. The Memorial is a testimony to the important role that engineering has played in contributing to the development of society, alongside agriculture, industry, and commerce, starting from even before the era of the British Empire. Over the years, the JGC Group has fully applied its engineering capabilities and experience for the design and build of energy production plants and industrial facilities, as well as the development of social infrastructure all around the world. In the engineering and construction of energy production facilities, such as oil and natural gas plants, absolute requirements are efficient energy generation, economy of resource consumption and consciousness of environmental and social issues. The JGC Group has adopted the keywords "Energy," "Economy," and "Environment and Society" to describe these requirements, and makes full use of "Engineering" for their simultaneous achievement. Recognizing the role of engineering in achieving efficiency, we define the corporate philosophy of the JGC Group as: "achieve enduring growth as a globally active company with a core business of engineering-based services, while contributing to world economic and social prosperity, as well as to the conservation of the earth's environment." The JGC Group draws on its engineering experience not only to provide systems that support social and industrial development, but also to help provide energy and environmental solutions. The construction of facilities for the production of liquefied natural gas (LNG) is a good example. LNG processing facilities provide a cleaner energy option by removing impurities - metals, acid gases, etc. - contained in natural gas when it is extracted from underground fields. Beyond oil and natural gas applications, energy engineering is also indispensable in the development and use of renewable, including biomass, wind or solar energy. The power of engineering can also contribute solutions for water purification, soil decontamination, and the prevention of air pollution. Engineering innovations help make energy cleaner, render processes in plants more efficient, and detoxify wastes.

Building Relationships of Trust by Supporting Industrial Development in Emerging Countries
In accordance with its medium-term management plan through fiscal 2010, the JGC Group revised and reformed its business structure. The purpose of the change was to transform into an engineering company capable of responding to a wide range of client needs, beyond the scope of a conventional contractor focused on engineering, procurement, and construction (EPC). By meeting such needs and acting as an investor in projects, in addition to constructing a range of plants, the aim is to contribute to the development of an efficient social infrastructure in the countries of business. On a global basis, the JGC Group has already begun securing stable energy supplies, providing power infrastructure facilities, and delivering and operating water and wastewater facilities. This report covers progress in the fields of solar thermal and solar photovoltaic power generation, which are now drawing considerable attention as renewable energy options. The report details work conducted on low-carbon, environmentally-conscious urban and infrastructure projects, among others. With its new medium-term management plan "NEW HORIZON 2015," starting from fiscal 2011, the JGC Group will develop further its existing policies to become a "Program Management Contractor and Investment Partner." While maintaining EPC as its core business, JGC intends to become a new business entity active in both investment and in planning and management services. Specifically, in the EPC business area, JGC is developing activities in new fields while strengthening its management capabilities and personnel expertise at overseas EPC subsidiaries. In enterprise investment, strategic priorities comprise four fields: (1) power and new energy; (2) environment and water; (3) resource development; and (4) development of urban infrastructure and new industries. A total of 90% of JGC projects are situated outside Japan, and the strong desire of emerging countries is to develop their domestic industries. Considering economic development in the true sense of the term, they want to take construction and operation of facilities into their own hands and thereby accumulate technological experience as well as create employment opportunities. We are eager to respond to the needs of the emerging countries and engage in the challenge of aiding their development, while demonstrating in the process the cultural and ethical qualities of the Japanese people - seriousness, integrity, and persistence. We are confident that these efforts will bring heightened trust in the JGC Group and increase its competitiveness in the global arena.

Future Shape of CSR Reports
In April 2011, the JGC Group defined its CSR Basic Policy and set forth its four major CSR priorities. They are (1) Environment: to actively contribute to environmental conservation; (2) Education: to support activities that contribute to the education of the next generation of engineers; (3) Science and Technology: to support the science and technology that will form the foundation of sustainable development; and (4) Local Contribution: to contribute to the sustainable development of the regions where the JGC Group does business. The JGC Group views environmental and social considerations as indispensable to its industrial projects. This is why the facilities constructed must be optimized to ensure safety and peace of mind not only for the owners, but also for the employees, beneficiaries of the facility, and the local society. The world is now facing a number of social and environmental problems. By drawing on the engineering and project management capabilities it has fostered through its experience in a wide range of fields, the JGC Group contributes to solutions to environmental problems and continues to strive for concrete results as priority matters.

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