takasago thermal engineering co., ltd. - tte-net.com · pdf filetakasago thermal engineering...

Ecology from air-conditioning

Takasago Thermal Engineering Co., Ltd.

高砂

熱学

工業

CSR報

告書

2013

To keep a beaut i fu l earth

for the future through

Takasago Thermal Engineer ing technology –

that is our miss ion.

1 Takasago Thermal Engineering Co., Ltd. CSR Report 2013

2Takasago Thermal Engineering Co., Ltd. CSR Report 2013

C o n t e n t s

01 Contents

03 Top Message

05 Special Features HOYA/SCSK/NTN

11 TOpiCS

▪ Organizations All Takasago Thermal Engineering Co., Ltd. offices within Japan and abroad

(including some Group companies)▪ Term April 1, 2012 to March 31, 2013 (including some items from April 2013 and after)▪ Fields Environment, social, and economical aspects▪ Guidelines used as references Environmental Reporting Guidelines (Fiscal Year 2012 Version) (April 2012, Ministry

of the Environment) Environmental Reporting Guidelines (Fiscal Year 2005 Version) (February 2005,

Ministry of the Environment) GRI Sustainability Reporting Guidelines Version 3.0 (G3)

▪ Date of issue August 2013▪ Next scheduled issue August 2014▪ prepared by: Corporate Planning Group,

Corporate Planning Division CSR Management Office

1103 05

25 33

This report has been prepared for the purpose of conveying the CSR initiatives of Takasago Thermal Engineering to all of our stakeholders and to aid understanding and valuation of these efforts.

13 Overview of Takasago Thermal Engineering

and Group Companies

17 Financial Data

19 Environmental Data

23 Takasago Thermal Engineering’s CSR Management

25 Fair and Highly Transparent Management

27 Further improving Customer Satisfaction

31 Contributing to Environmental Conservation

33 Realizing Employee Satisfaction

33 Harmony with Society

Editorial Policy

Corporate profile & Financial data · Environmental data

Corporate social responsibility

010_0385090382510.indd 2 2013/11/14 22:07:58


T o p M e s s a g e

The first commitment period of the Kyoto Protocol concluded

in fiscal 2012, and the government is looking for alternative

new targets as we approach the COP19 to be held in November

2013. Living standards of people around the world are rising

and significant population increases are expected, mainly in the

emerging nations, and in this context, we as corporations must also

pool our knowledge in order to “realize a low carbon society.”

Meanwhile, the international standards for corporate reporting

are moving away from reports that simply summarize financial

and non-financial information to “integrated reporting” in which

these types of information are linked organically and strategies for

future growth are presented as narratives. What can be said is that

corporations are beginning to be questioned about their thoughts on

governance, opportunity and risk, and the kinds of business models

they are constructing.

Amid these major changes in the roles demanded of corporations,

the Takasago Group takes as its key words “change and speed,”

“diversification of the profit stream,” and “globalization,” as we

press ahead with efforts to continue being a corporate group that

is needed and trusted by society. The driving force behind this aim

springs from the allegiance of all employees to the corporate motto

“contribution to society through personal harmony and creativity,”

and the “abundant imaginative capabilities” and “highly-principled

sense of ethics” possessed by each individual. We will continue to

keep our gaze on the future as we contribute to people’s lives and

to the society through the practice of CSR management that meets

the expectations of society.

We will contribute to people’s

lives and to society by practicing

CSR-based management with

“abundant imaginative capabili-

ties” and a “highly principled

sense of ethics.”

010_0385090382510.indd 3 2013/11/14 22:08:00


The Group is United in the Pursuit of Greater Customer SatisfactionSince its founding in 1923, Takasago Thermal Engineering has

continued to be a pioneer of the heating, ventilation and air

conditioning (HVAC) systems industry providing the highest quality

air environment. We have now grown into a corporate group

engaged in businesses that ranges from manufacturing and sales

of HVAC equipment to integrated management of HVAC systems

for various types of buildings, and security and cleaning. We are

currently leveraging our comprehensive capabilities in pursuit of

even greater customer satisfaction through the “two types of one-

stop service” initiative.

The first is one-stop service providing various services spanning

the entire life cycle of a building, from planning of building

equipment to design, construction, and after-sales service. The

second is one-stop service providing not only HVAC equipment but

also peripheral construction related to sanitation and electricity.

As we look forward to the 100th anniversary of our founding

in a decade from now, we seek to contribute to the development

of our customers’ business by uniting the awareness of all Group

employees and pushing forward “two types of one-stop service”

initiative.

Meeting the Needs of Society through New Proposal CapacityThe tasks demanded of the Group are growing more advanced

as the times change. We are currently being urgently required to

“minimize and improve the efficiency of energy consumption” in

order to help with solutions to social problems such as prevention of

global warming and effective utilization of resources.

Examples of the Company’s technologies in 2012 that were highly

evaluated include the IDC-SFLOWTM energy saving HVAC system for

data center server rooms, and the SWIT® which combines energy

saving and comfort for large spaces. The IDC-SFLOWTM won the

Judging Committee Special Award of the “Green IT Awards 2012,”

and the energy saving renewal business which utilizes SWIT® was

awarded the Director General Prize of Agency of Natural Resources

and Energy in the “2012 Energy Conservation Grand Prize for

excellent energy conservation equipment.”

In addition to developing these energy saving technologies, in

order to respond more actively to diverse needs, we opened the

“GreenAir Plaza” in Kyobashi, Tokyo in 2013 as show room the

Group’s environmentally friendly technology. As well as presenting

the new energy saving systems, construction methods, and products

pursued by the Group, the plaza also serves as a base for enhancing

solutions and consulting services to offer the new values demanded

by the era.

To Make Even Greater Strides AheadStarting with the establishment of the Singapore branch in 1974,

the Group has expanded its overseas bases mainly in Asia. Recently,

the share of overseas businesses within the entire Group has been

growing year by year following the shift of domestic manufacturing

facilities overseas and the rapid growth of emerging nations.

We are already developing the business overseas as a

comprehensive construction business including full turnkey contracts.

In order to respond to the growing awareness of environmental

conservation in emerging nations, we will actively use environmental

solutions as an entry point for business development and make full

use of the energy saving technologies built up by the Group within

Japan.

At the same time, in conjunction with overseas business

expansion, we are reinforcing our overseas governance in order to

achieve steady development. Always bearing in mind the principle of

conducting management rooted in the local region, we seek to be a

“truly global company” by creating a corporate culture that respects

local culture and customs and accommodates diverse values.

In order to harmonize an increase in the Group’s corporate value

with sustained development of the society, and to meet the

expectations of all our stakeholders, we will constantly review

our own corporate activities as we strive to deepen our CSR

management.

We hope that this report will help you understand the Group’s

activities, and we look forward to your further support and to

hearing your frank comments.

presidentTakasago Thermal Engineering Co., Ltd.

010_0385090382510.indd 4 2013/11/14 22:08:00


Special Feature 1 HOYA

HOYA ELECTRONICS SINGAPORE PTE.LTD.New Factory Construction Project

Under the tight schedule of an actual construction period of nine months, from ground leveling to handover of the completed factory, the Company coordinated with the customer, selected and followed up with design firms and construction contractors , and handled a l l governmental paperwork.

By keeping in mind of the short construction period from the design stage, while ensuring the factory could accommodate future expansions and line changes and aiming to reduce lifecycle costs, the Company took thorough, simple and modular approaches using a large number of standard devices.

Simple, Modular Design for a Short Construction period

Speedy Construction of an Environmentally Conscious, Cutting Edge Factory through EpC Responding to Customer Expectations

Construction period:

August 2011 to end of May 2012

Size: 2F, 9,700m2 floor space (CR: 3,900m2)

Construction scope:

Turnkey EPC (including static electricity countermeasures, chemical pollution countermeasures, and minute vibration countermeasures) for entire building, all M&E, and all utilities, such as purified water

The HOYA Group is engaged in global business in fields such as telecommunications, eye care, medical treatment,

and imaging, based on its advanced optical technologies. In order to respond to the rapidly changing global

economy and markets, it speedily focuses its management resources in growth fields.

Since the establishment of the Singapore branch in 1974, Takasago Thermal Engineering has established a long

track record as a full turnkey contractor, handling everything from overall design to construction of buildings and

equipment, and has expanded its overseas business operations as an engineering company. The actual construction

period of HOYA’s new factory took place within a tight schedule of just nine months. The Company provided

EPC (overall work of engineering, procurement, and construction) services for the entire construction process,

from building construction to transformer facility and utility equipment work. The Company’s speed and flexibility

responded to customer expectations, and its use of thorough offsite construction methods and other techniques

greatly reduced construction-related CO2 emissions.

Full view of new factory

2011 2012

Sep. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May.

Excavation work

Foundation work

Construction work

Roofing work

Equipment and electrical facility work

CR construction work

T&C

010_0385090382510.indd 5 2013/11/14 22:08:01


A simple clean room for processing use was set up on the construction

site, and in addition to pipework and ducts, over 90% of interior

materials and electrical equipment components and materials were

manufactured offsite, processed, cleaned, and packaged, which

greatly shortened the process before handover. This, together with

the prefabrication of building components, contributed to tremendous

reductions in CO2 emissions produced by construction work.

The Company pooled all of its engineering power to take on the

challenge of improving the energy efficiency of machinery and electrical

equipment. The use of backwash drainage cooling towers for pure

water production, the deployment of inverters in chilled water pumps,

cooling water pumps, and compressors for manufacturing, unification

of cooling towers and cooling water vertical pipework to reduce

pressure loss, use of separate 5°C and 8°C chilled water systems, and

other measures resulted in high levels of energy savings, culminating

in the factory’s acquisition of the “Green Mark

Certification*” from the government of Singapore.

*Green Mark CertificationCertification granted to environmentally friendly buildings satisfying energy saving standards defined by the Building Construction Authority of the Singapore government.

project Execution Services

EpC OverseasThe Takasago Group engages in EPC

activities, with a focus on industrial

clean rooms and district heating and

cooling facilities. EPC unifies the three

fields of Engineering, Procurement, and

Construction, as well as make members

from different backgrounds, be they

different in terms of religion, race,

language, or culture, to work together

as one. We leverage the exceptional

engineering strengths we have cultivated

through our top per formances in

construction within Japan, creating

a strong core, and our engineers will

provide the leadership that ensures that

projects are carried out smoothly.

project Execution process

Everyone working together as oneWe have long held Takasago Thermal Engineering’s clean room

construction track record and engineering capabilities in high regard,

but our project had very tight time constraints, so the people involved in

the project and I felt some trepidation in the beginning. However, as the

work progressed, Takasago Thermal Engineering engineers’ confident

response and instructions brought everyone, not just ourselves but

also the individual specialist construction firms working on the project,

together as one, completing the project just as planned while pursuing

energy savings and reducing lifecycle costs. Thank you.

Mr. Loo Kin Pung Managing Director, Directorate

HOYA ELECTRONICS SINGAPORE PTE.LTD.

Application of Thorough Off-Site Construction Method

Acquisition of “Green Mark Certification” for High Energy Efficiency

Close up!!

Client Feedback

Simple clean room for processing use

Project Management

E P C

· Commercial (Construction Management)· Feasibility studies· Basic design proposals· Master plan and basic design creation

· Governmental paperwork· Detailed design· Bidding· Material and equipment procurement· Construction

· Site management (Quality assurance, schedule management)

· Commissioning coordination· Maintenance planning

Basic design (process design, P&ID)

Detailed design (machinery,

pipework, civil engineering,

construction, electrical, control,

etc.)

Delivery management

Inspection and transport

Building construction

Engineering

Design

Procurement

Machinery purchasing

Construction

ConstructionCommissioning

Commissioning

Commissioning preparation

010_0385090382510.indd 6 2013/11/14 22:08:02


SCSK

SCSK offers IT services, led by its mission of “creating our future of

dreams by establishing value based on our customers’ trust.” The

amount of energy used by the world’s data centers is said to be

equivalent to that produced by 30 nuclear plants. As social concerns

regarding global warming and power saving increase, improving data

centers’ energy efficiency has become a vital task to earn the trust of

clients.

In 2009, before the creation of SCSK, Sumisho Computer Systems

began implementing measures to improve energy efficiency at its

“Tokyo Center 2” urban data center, which was put into operation in

Working with Customers as partners in Energy Saving at Data Centers

1992. Working under many building and equipment limitations due to

the aging of the facility, Takasago Thermal Engineering used its Green

Air® IDC solution service, developed for internet data centers (IDCs),

to improve re l iab i l i t y

while reducing energy

consumption and worked

together with our customer

Sumisho Computer Systems

as partners in introducing

improvement measures.

Chiba Center 2(Planned for completion by the end of 2014)

Chiba Center

Tokyo Center 1 Tokyo Center 2 Tokyo Center 4

Sanda Center

Monitoring from overseas



Tokyo Center 5

Osaka Center 2Osaka Center 1

Internet Exchange

Global monitoring

center (overseas)

SCSK’s Solution-Oriented netXDC Data CenterTokyo Center 3

SCSK Corporation, Tokyo Center 2

* A non-profit organization made up of member companies from around the world which promotes energy efficiency improvements in

data centers and business computing. (Established in 2007)

Special Feature 2

Contributing to Winning the Green Grid Japan Data

Centre Award with Green-Air® iDC Solution ServiceSCSK Corporation was formed in October 2011 by a merger of Sumisho Computer Systems Corporation and CSK Corporation. With this merger, the number of its data centers within Japan rose to 10 locations, making it one of the top companies in the IT service industry. In October 2012, SCSK was presented the Green Grid Japan Data Centre Award 2012 Performance Award hosted by the Japanese branch of The Green Grid* in recognition of the company’s efforts in improving energy efficiency at data centers. Takasago Thermal Engineering, which has a track record of data center energy saving services of over 80 cases inside Japan and abroad, uses its unique Green Air® IDC method to achieve steady energy efficiency improvements and contributes to the customer’s energy savings and their increase in business competitiveness.

010_0385090382510.indd 7 2013/11/14 22:08:04


Improvements were proposed and implemented after thoroughly researching the amount of server and HVAC power usage, server room temperatures, humidity levels, air flow, and also thermal environment of the location of exterior unit installed. For example, cold aisles* and hot aisles* were separated, and servers were supplied with cool air evenly, with no inflow of hot air from the hot aisle side, which allowed for the reduction in the amount of energy used with higher temperature setting of air supply.

Takasago Thermal Engineering’s Green Air® IDC offers Prior verification in order to assess the potential effectiveness of measures, and uses empirical methods including cost-benefit calculation based on Prior verification results, making it possible to propose the

Before hot/cold separationHot air from the hot aisle side flow over the top into the cold aisle, causing server rack temperatures to rise.

After hot/cold separationCold air is sealed in, lowering overall cold aisle temperatures.

IDC-SFLOWTM IDC HVAC System

IDC-SFLOWTM is a HVAC system developed as a key device for the Green-

Air® IDC service. In 2012, it was presented the Judging Committee Special

Award in the IT energy saving category of the “Green IT Awards 2012”

hosted by the Green IT Promotion Council with the support of the Ministry

of Economy, Trade and Industry. By blowing cool air out from the sides

of server rooms, it cuts the amount of energy needed for ventilation to

approximately 1/3 of the energy used in conventional floor supply systems.

Moreover, its airflow rectification technologies for cold aisle* ventilation

suppresses any concentrated increases in temperature of racks. This not

only makes it possible to raise the set temperature of supplied air, but also

enables long-term usage of natural energy such as Outdoor Air Cooling,

greatly reducing annual energy consumption.

We were able to formulate solid facility investment plansBased on our corporate philosophy “Create Our Future of Dreams,” SCSK supports customers’ business activities through our dependable and reliable IT services. We are very thankful to Takasago Thermal Engineering for enabling us to establish solid facility investment plans by performing advance testing on effectiveness of measures before construction. After the construction, Takasago Thermal Engineering checked and confirmed its reliability in the face of failures, power outages and other accidents, and I believe our receiving of the “Green Grid Japan Data Centre Award” was a result of being recognized of the activities we have engaged in together with Takasago Thermal Engineering.

Section Manager Mr. Kazuto Koike Facility Management Section

Facility Management Dept.netX Data Center Business Div.

IT Management Group SCSK Corporation

implementing Effective Measures Based on Research, proposals, and Verification Testing

implementation of effective measures. Not only was the Tokyo Center 2 able to achieve extraordinary improvements in energy efficiency, but it was also able to achieve reliability in BCPs and DRs envisioned for power outages, thus resulting in achievement of both reduction of power consumption and improvement in reliability upon implementing measures. Green Air® IDC was also used to make improvements to the Tokyo Center 1, which began operation in 1988. These deployment cases contributed greatly to the achievement of SCSK being presented with the “Green Grid Japan Data Centre Award 2012 Performance Award.” The knowledge gathered through these cases is now being utilized in the Osaka Center 1, which was put into operation in 2012.

Close up!!

Improvement ExampleClient Feedback

* Cold aisle: Cold air routes from HVAC equipment to server racks containing IT devices such as servers* Hot aisle: Hot air routes from server racks containing IT devices such as servers to HVAC equipment

Minimum: 17.3°CMaximum: 25.0°C

Minimum: 17.9°CMaximum: 22.3°C

Green IT Awards 2012

Green IT Promotion CouncilWinner of Judging Committee

Special Award

010_0385090382510.indd 8 2013/11/14 22:08:06


NTN

The best energy saving solutions vary depending on specific building conditions. Takasago Thermal Engineering works together with customers to promote energy savings through a cycle of “prior verification,” “original design,” “streamlining work,” and “follow-up verification and operation improvement” to produce optimal energy saving solutions. The Company noticed that the ceiling of Iwata Works is high and that areas where people occupy and work are low, and designed and created energy saving equipment utilizing our original SWIT® stratified HVAC system. SWIT® provides highly efficient HVAC by using slow swirling airflow to keep cold air close to the floor during summer times and to draw cold air away from the floor during winter times, preventing the cold air from pooling around peoples’ feet. In order to achieve comfortable HVAC at low cost, we identified the factory’s HVAC load during our “prior verification” and determined the HVAC load. We then used our “original design” combining SWIT® and ceiling-hung packages which draw in external air, enabling energy

Cutting Energy Usage by 50% by providing Comfortable HVAC Only Where people Are present

saving operation that uses outside air for over 80% of the year. By also implementing “follow-up verification,” we achieved tremendous energy savings, reducing energy consumption by 50%, CO2 emissions by 56% (740 tons per year), and lighting costs by 58%.

Slim SWIT® air supply units

Energy Saving Equipment Outside Air Operation Mode

Cool outside air alone is used for natural cooling

Spring / fallEarly summer / late

summer

Outside air is slightly cooled for energy-saving

air conditioning

NTN CORPORATION Iwata Works

Special Feature 3

Contributing to Significant Energy Saving and Work Environment improvements at Major Bearing Factory with the SWiT® Stratified HVAC SystemSince it was founded in 1918, NTN CORPORATION has contributed to reducing environmental impacts by providing products which reduce energy loss due to friction, as well as actively working to reduce the amount of energy consumed by its own production processes. In March 2012, the NTN Group began ESCO operations* using a stratified HVAC system at its Iwata Works, which had the group’s highest CO2 emissions levels in Japan, in order to reduce energy consumption and improve the working environment. Takasago Thermal Engineering proposed an energy saving solution that used its own unique SWIT® stratified HVAC system technology, contributing to reducing energy usage by the customer, as well as improving the work environment by helping prevent situations such as heat exhaustion and heat stroke.* ESCO operation which is an abbreviation for Energy Service Company. ESCO operators invest in energy consumption reducing facilities and renovations, making it possible for ESCO contractors to reduce energy consumption with no initial investment. The operators guarantee a baseline amount of energy savings, and the contractors pay them service fees for a fixed amount of time based on these energy savings.

010_0385090382510.indd 9 2013/11/14 22:08:09


SWIT® also proved to be extremely effective in the project’s

other mission, improving the work environment. One of the

work environment improvement challenges Iwata Works faced

was reducing the heat and oil mist created when bearings are

SWiT® Stratified HVAC System

Our “energy savings renewal business,” which use SWIT® in energy saving improvements to buildings with large open areas such as factories, halls, and gymnasiums, were presented with the Director General Prize of Agency of Natural Resources and Energy in the Business Model Category of the “2012 Energy Conservation Grand Prize for excellent energy conservation equipment” (held by the Energy Conservation Center, Japan supported by the Ministry of Economy, Trade and Industry). Our measures for energy saving solutions by SWIT®’s exceptional energy saving performance combined with our cycle of “prior verification” “original design,” “streamlining work,” and “follow-up verification and operation improvement,” was highly praised as a business model which has a great influence on the progress of energy saving.

Work Environment improvements Such as Heatstroke prevention and Oil Mist Reduction

processed. The Ministry of Health, Labour and Welfare provides

guidance regarding the use of heat stress evaluation based on

WBGT (Wet-Bulb Globe Temperature) indices in evaluating the

risk of workplace heatstroke. WBGT measurement during “follow-

up verification” found that regarding the air environment, the

risk of heatstroke had fallen in all areas after the energy saving

renovations had been performed. SWIT® also reduced the amount

of oil mist and CO resulting from production processes with its

improved effectiveness of ventilation, reducing energy consumption

and improving the working environment. At the same time, fine

tuning also made it possible to control humidity in second floor

areas, assisting with rust prevention.

The Company will continue to act as a partner to our customers,

providing effective energy saving and workplace environment

improvement solutions, thereby contributing to the creation of a

sustainable society.

Close up!!

Business model for creating energy saving solutions

Prior verification

Original design

Follow-up verification and operation improvement

Streamlining work

Vertical temperature distribution before and after renovations

Room temperature (°C)20

0

1

2

3

4

5

6

7

25 45403530

Before renovation2010 summer measurement

SWIT®

2012 summer measurement

Temperature decrease of approximately 6°C

Hei

ght

abov

e flo

or (m

)

2012

Host: The Energy Conservation Center, Japan

(Product and Business Model Category)Director General Prize of Agency of Natural Resources and Energy

2012Energy Conservation Grand Prize for

excellent energy conservation equipment

Host: The Energy Conservation Center, Japan

(Product and Business Model Category)Director General Prize of Agency of Natural Resources and Energy

SWIT cooling system

Contaminated hot air

Exhaust

Supply Air

Hot air updraft

Circulation layer of induction

Perforated faceplate

Swirl guide vanes inside air supply unit

Diffusion

InductionDiffusion

DiffusionInduction

Improved diffusion with increased

induction

010_0385090382510.indd 10 2013/11/14 22:08:09


In line with the Company’s social contribution activities under the theme “harmony with society,” we have been providing freshly baked pizza to shelters in the areas affected by the Great East Japan Earthquake and to welfare facilities throughout the country.

This project began with the Company’s donation of a mobile pizza truck equipped with a pizza oven to the group running the volunteer organization, NUOVA Project (Representative: Mitsuhiro Shibuya). The Company supports the organization’s activities based on the concept of “Pizza to Boost Spirits in Tohoku!” and “Cheering up Children with Pizza!”

In fiscal 2012, we paid a visit to the mayor of Rikuzentakata City in Iwate Prefecture, and carried out activities including distributing pizzas made by a professional pizza chef and holding pizza-making workshops at places such as shelters and daycares throughout Tohoku. Furthermore, inspired by taking part in this program, we introduced a “volunteer vacation” system to support our employees’ proactive participation in volunteer activities.

Providing pizza at a shelter

1. Opening ceremony2-5. Exhibition in the Plaza

Pizza-making workshop at a daycare

Contributing to Society with pizza Fresh from the Oven

The Group opened GreenAir Plaza, a permanent exhibition space showcasing the latest energy saving systems, construction methods, and products in Kyobashi, Tokyo. The plaza is located in Kyobashi Environment Station (TOKYO SQUARE GARDEN, 6F), which hosts exhibits by companies engaged in the effort to realize a low carbon society.

This exhibition space displays actual energy saving HVAC systems from Group companies as “technologies that contributes to society.” In addition to allowing visitors to experience the effectiveness of the equipment, there are also displays and videos that clearly explain the energy management system of the whole building.

The facility is also equipped to meet a wide range of needs with a presentation room that can regularly show operating conditions and effects at actual customer facilities using our unique data collection and analysis tool GODA®, and a teleconference system that allows communication with Company technicians at various locations.

With this exhibition space, the Group seeks to further increase communication with our customers, and to utilize the needs we identify in the development of technology and products in the future.

Topic

1

“GreenAir plaza” opened in Kyobashi, TokyoTopic

2

T O p i C S

1

3

5

2

4

010_0385090382510.indd 11 2013/11/14 22:08:13


Corporate profile &

Financial data ·

Environmental data

13 Overview of Takasago Thermal Engineering and Group Companies

17 Financial Data

19 Environmental Data

010_0385090382510.indd 12 2013/11/14 22:08:13


Corporate Data Description of Business

The Takasago Thermal Engineering Group provides one-stop service for comprehensive

energy solutions centered on HVAC systems, spanning the life cycle of various equipment and

systems from planning to design, construction, after-sales service, and renewal.

Company name Takasago Thermal Engineering Co., Ltd.

Head office 4-2-5 Kanda Surugadai, Chiyoda-ku, Tokyo 101-8321

Representative Atsushi Ouchi, President

Established November 16, 1923

Capital ¥13,134 million

Net sales ¥248,430 million (Consolidated, Fiscal year ended March 31, 2013)

Number of employees 4,312 (Consolidated, As of March 31, 2013)

Listed First Section of the Tokyo Stock Exchange

Design, construct ion, manufactur ing, instal lat ion, and maintenance management of HVAC systems, cleanroom and related systems, DHC systems, co-generation systems, electrical and instrumentation systems, plumbing and sanitation systems, discharged-heat recovery systems, high precision HVAC systems, consulting services related to energy saving and environmental measures, business related to greenhouse gas emissions rights trading, energy supply business, power generation business, water treatment business, other types of environmental control systems and thermal engineering systems

Overview of Takasago Thermal Engineering and Group Companies

Overseas Affiliates

Takasago Constructors And Engineers (Beijing) Co., Ltd.

Takasago Thermal Engineering (H.K.) Co., Ltd.

Thai Takasago Co., Ltd.

Takasago Engineering India Pvt. Ltd.

Takasago Vietnam Co., Ltd.

Takasago Singapore Pte. Ltd.

T.T.E. Engineering(M.)Sdn. Bhd.

China

Thailand

Vietnam

India

Hong Kong

Singapore

Malaysia

011_0385090382510.indd 13 2013/11/21 17:30:20


Overview of Takasago Thermal Engineering and Group CompaniesC

orp

ora

te p

rofile

Co

rpo

rate

socia

l resp

on

sibility

Finan

cial data

• Enviro

nm

ental d

ata

Takasago Constructors And Engineers (Beijing) Co., Ltd.

Takasago Vietnam Co., Ltd.

Thai Takasago Co., Ltd.

Takasago Thermal Engineering(H.K.)Co., Ltd.

Date established July 31, 2003Accounting period December 31Capital CNY25.53 millionShareholder composition Takasago Thermal Engineering 100%Number of employees 160Description of business Construction contractor (construction,

HVAC, electricity, utilities, sanitation, fire extinguishing, fire prevention), consulting related to building equipment, etc.

Date established March 19, 2007Accounting period December 31Capital US$1 millionShareholder composition Takasago Thermal Engineering 100%Number of employees 75Description of business Design and construction of HVAC, ventilation,

plumbing, and sanitation systems and agent of equipment and materials

Date established July 17, 1984Accounting period December 31Capital BAHT20 millionShareholder composition Takasago Thermal Engineering 49%, PHAISAN

family 46.5%, THAI MC CO., 4.5%Number of employees 156Description of business Design and construction of HVAC, ventilation,

electrical and sanitation systems and clean rooms and buildings, etc.

Date established March 3, 1994Accounting period December 31Capital HK$5 millionShareholder composition Takasago Thermal Engineering 100%Number of employees 31Description of business Designing and construction of HVAC,

sanitation and electrical systems, etc.

Takasago Constructors & Engineers (Beijing) Co., Ltd., a whol-ly-owned subsidiary of Takasago Thermal Engineering in China, undertakes design and construction of foreign-owned factories as a turnkey package which includes construction-, equipment-, and production-related utility facilities. Based on our 30-year track record of operations in China, we satisfy the needs of our customers by pro-viding Takasago’s advanced technology and close attention to detail, and offer assistance and after-sales service for the construction of low-energy, easy-to-use, and long-lasting production bases. We oper-ate throughout China, with nine branches including the head office in Beijing.

As we welcome the 40th anniversary of the restoration of diplomatic relations between Japan and Vietnam, the latter of which contin-ues to develop amid increasing attention from around the world, Takasago Vietnam Co., Ltd. provides one-stop service from planning to after-sales service for machinery and electrical equipment for for-eign-owned factories.

Utilizing the energy-saving technology we have cultivated in Japan and abroad and using proactive environmental solutions as a catalyst, Takasago Group will work as one with the Vietnamese staff to con-tribute to Vietnam’s efforts in solidifying its position as the “world’s environmentally-friendly factory” without destroying the natural beauty with which the country is blessed.

Since its establishment in 1984, Thai Takasago Co., Ltd. has engaged in business centering on contracts for construction of factories in the Kingdom of Thailand, which is attracting significant investments from around the world, particularly from Japan.

Although Thai Takasago Co., Ltd. is a foreign-owned company in Thailand, the company policy at the core of our management is the same as that of the parent company, and our executives and employ-ees press ahead with their daily work in a united effort to contribute to the Kingdom of Thailand by responding to the demands of our clients with attention to harmony and creativity. We will continue to meet the expectations that society demands of us as a part of the Takasago Group and strive to contribute on a global basis.

Takasago Thermal Engineering (H.K.) Co., Ltd., a wholly-owned local subsidiary of Takasago Thermal Engineering in Hong Kong, engages in construction mainly of HVAC systems. Based on our 30-year track record in construction in Hong Kong, we provide our customers with a comfortable environment through high-efficiency operations with Takasago’s fine-tuned design technology and construction manage-ment technology. With an established reputation for construction of high-rises and other large-scale buildings as well as for specialized environments such as laboratories and hospitals, we have been con-tributing to local development for many years. We also have a branch in Macao where we conduct business.

General Manager, Engineering Operations Group, Overseas Business Division, Takasago Thermal Engineering

Koichi Tanaka


Junichi Yamamoto


Kenichiro Tanaka


Koichi Tanaka

Corporate profile & Financial data • Environmental data

011_0385090382510.indd 14 2013/11/21 17:30:41


Takasago Singapore Pte. Ltd.

Takasago Engineering India Pvt. Ltd.

T.T.E. Engineering(M.)Sdn. Bhd.

Date established January 18, 2005Accounting period December 31 Capital S$5.57 millionShareholder composition Takasago Thermal Engineering 100%Number of employees 78Description of business Construction management, design, and

construction of clean rooms, utilities and HVAC, electrical, sanitation, and fire extinguishing systems, etc.

Date established November 6, 2012Accounting period March 31Capital INR100 millionShareholder composition Takasago Thermal Engineering 100%Number of employees 19Description of business Design and construction of clean rooms and

HVAC systems, etc., and associated services

Date established November 11, 1980Accounting period December 31Capital MYR1 millionShareholder composition Takasago Thermal Engineering 30%, TTE

Malaysia Holdings Sdn. Bhd. 70%Number of employees 89Description of business Design and construction of HVAC, sanitation,

and electrical systems

It has been 40 years since the Singapore branch was established in 1974 as Takasago Thermal Engineering’s first expansion overseas. During these years, we have kept pace with local economic growth, and have developed the business including numerous projects, from high-rises and to semi-conductor factories, pharmaceuticals manufac-turing, and dry rooms. Meanwhile, the per capita GDP of Singapore now stands at approximately 51,000 U.S. dollars, outstripping the growth of that in Japan by roughly 7%, and reaching the level where it is numbered among the developed countries.

In keeping with this maturing of society, our business fields too are evolving to meet local needs such as advanced medicine, projects to enhance infrastructure, as well as the energy-saving business which is an inevitable need. As we approach our next landmark occasion of the 100th anniversary of Takasago Thermal Engineering’s head office, which is a half-century older than Takasago Singapore, we intend to further our development by pursuing highly customer-oriented busi-ness and serving as a hub in Southeast Asia.

Takasago Engineering India Pvt. Ltd. has been in full-fledged opera-tion in Bangalore City in southern India since April 2013. The com-pany engages in construction management and controls internally directly-managed construction workers and construction material processing factories so as to provide a high level of quality and safety management as well as strictly-met completion times for customers in India.

In light of the increasing sophistication of the industry in India, through employing numerous people with design experience in other countries in the engineering team and providing organizational sup-port, we strive to meet the high-level needs of our customers.

Since its establishment in 1982 in Kuala Lumpur, Malaysia, T.T.E. Engineering (Malaysia) Sdn. Bhd. has regularly constructed Japanese, European, and American affiliated factories. We are not confined to building work and offer a wide range of services from construc-tion-related planning to maintenance. We also engage in prima-ry-side electrical construction focused on HVAC systems planning, construction work, and special utility construction, with the aim of expanding our performance results based on the concept of one-stop service for factory construction. Amid intensifying global competition, we will continue to provide the value that our customers demand of us as a member of the Takasago Group through the united sincerity and efforts of our employees.


Akihiko Okamura


Hirotake Yaegashi


Yoshito Ikeda

011_0385090382510.indd 15 2013/11/21 17:30:58


Co

rpo

rate

pro

fileC

orp

ora

te so

cial re

spo

nsib

ilityFin

ancial d

ata • En

viron

men

tal data

Support spanning the life cycleof buildings

Ren

ewal

New

construction

Maintenance andManagement

Planning andDesign

Maintenance andManagement

Construction Construction

Planning andDesign

The Group’s One-stop Services in Japan

Comprehensive equipment management

Comprehensive equipment management

Maintenance inspection of building equipment

Cleaning and security of building

Maintenance inspection of building equipment

Cleaning and security of building

Renovation and construction of equipment

Construction of equipment

Design and manufacturing of HVAC environmental equipment

Design and manufacturing of HVAC environmental equipment

Staff dispatchInsurance agency

Staff dispatchInsurance agency

Design and manufacturing of HVAC equipment

Design and manufacturing of HVAC equipment

Takasago Engineering Service

Takasago Engineering Service

Marusei

Marusei

Nihon Setsubi Kogyo Nihon Setsubi Kogyo

Nippon Flöda

Nippon Flöda

Nihon Kaihatsu Kosan Nihon Kaihatsu Kosan

NIPPON PMAC

NIPPON PMAC

Takasago Thermal Engineering

Customer

Group Companies in Japan

NIPPON PMAC CO., LTD.3150 Iiyama, Atsugi City, Kanagawa 243-0213 Tel: 046-247-1611

Description of business Design, manufacturing and sales of HVAC equipment

Nippon Flöda Co., LtdYamajin Bldg., 1-1 Kanda-Ogawamachi, Chiyoda-Ku, Tokyo 101-0052 Tel: 03-5282-7800

Description of business Design, manufacturing, sales and import/export of HVAC and ventilation devices

Nihon Kaihatsu Kosan Co., Ltd.NK Bldg., 3-6-2 Kanda-Ogawamachi, Chiyoda-Ku, Tokyo 101-0052 Tel: 03-3292-6680

Description of business 1. Real estate business 2. Life and non-life insurance agency business 3. Labor dispatch business

Takasago Engineering Service Co., Ltd.Tokyo Toshikaihatsu Iwamotocho Bldg., 3-9-3 Iwamoto-cho, Chiyoda-ku, Tokyo, 101-0032

Tel: 03-3864-6011

Description of business 1. Comprehensive equipment management (Overall high level maintenance,

operating maintenance, and maintenance management of systems, etc.) 2. Labor dispatch business

Nihon Setsubi Kogyo Co., Ltd.Tokyo Sankei Bldg., 1-7-2 Otemachi, Chiyoda-Ku, Tokyo 100-0004 Tel: 03-3279-1731

Description of business Designing and construction of HVAC and plumbing and sanitation systems

Marusei Co., Ltd.1-1 Yotsuya, Shinjuku-ku, Tokyo 160-0004 Tel: 03-3357-4545

Description of business 1. Operations, surveillance, system maintenance inspection services for various types

of buildings 2. Janitorial services, full-time security services 3. Labor dispatch business


011_0385090382510.indd 16 2013/11/21 17:30:59


F i n a n c i a l D a t a

Consolidated Financial Data

Consolidated Financial Highlights

0

1,000,000

3,000,000

2,000,000

2008 2009 2010 2011 2012 (FY)

2,279,1252,226,811

2,268,060 2,292,414

2,643,153

12.8%

5.0%

5.7%5.4%5.3%

859,219662,655

622,140

698,712

904,713

72,53976,997

72,56073,646

68,645

1,7661,872

1,712 1,787

1,798

1,345,579 1,485,264 1,571,635

1,518,246

1,667,985

0

1,000,000

2,000,000

3,000,000

2008 2009 2010 2011 2012 (FY)

16.5%

7.2%5.3%5.7%

4.1%

2,517,735

2,191,892 2,205,372

2,355,899

2,701,542

879,327

555,878661,868

797,797

958,995

76,848

75,412 72,124

76,242

66,358

1,766

1,872 1,712

1,787

1,798

1,559,782

1,558,708 1,469,6561,480,061

1,674,380

0

1,500,000

2,000,000

2,500,000

3,000,000

1,000,000

500,000

2008 2009 2010 2011 2012 (Year-end)

41.1%43.9%

46.6%

42.6% 43.6%

2,094,6802,001,819

1,863,6662,100,585

2,207,309

864,113 880,019 870,156 912,554 999,382

Orders Received(Thousand USD)

Net Sales(Thousand USD)

Total Capital, Net Assets and Equity Ratio(Thousand USD)

Ordinary Income and Net Sales to Ordinary Income(Thousand USD)

346,473

1,200,617

85,59466,709

9,022

33,418

465,464

Cash and time deposits

Notes and accounts

receivable-trade

Other

Cost of uncompleted contracts and

other inventories

Property, plant and equipment

Intangible assets

Investments and other assets

541,195

Fixed assets

1,666,102

Current assets 254,197

46,526

652,654

121,151

56,016

899,978

99,393

Notes, construction work and other payables

Accounts payable-other

Short-term debt

Other current liabilities

Shareholders’ equity

Long-term liabilities

Accumulated other comprehensive income and minority interests

31,056

Allowance for losses on construction contracts

46,292

Advances received on uncompleted contracts

1,207,926

Liabilities

999,382

Net assets

Consolidated Balance Sheets (Thousand USD)

Assets

Total assets 2,207,309 Total liabilities and net assets 2,207,309

Liabilities and Net Assets

2,643,153Net sales

2,406,436Cost of sales

198,723

Selling, general and

administrative expenses

12,650

Non-operating income (loss)

37,982

Operating income

50,643

Ordinary income

27,375

Extraordinary income (loss) / income taxes

23,257Net income

Consolidated Statements of Income (Thousand USD)

0

20,000

40,000

60,000

100,000

80,000

3.8%

3.1%2.8% 3.1%

1.9%

2008 2009 2010 2011 2012 (FY)

68,49662,879

71,230

50,643

86,828

■ Ordinary income Net sales to ordinary income

■ Total assets ■ Net assets Equity ratio■ General facilities ■ Industrial facilities ■ Facility equipment

■ Others Portion attributable to overseas■ General facilities ■ Industrial facilities ■ Facility equipment

■ Others Portion attributable to overseas

011_0385090382510.indd 17 2013/11/21 17:30:59


Stakeholders DescriptionAmount

Shareholders

Business owners

Others

Employees

Others

Partner companies

Employees

Society

Creditor

Suppliers

20,321

61,123

15,288

468

5,138

50,398

1,064,645

594,924

135,939

144,089

Dividends

Salaries, bonuses and employment benefits, etc.

Taxes, dues and donations

Interest expense

Compensation for directors and corporate auditors

Others

Labor and outsourcing expenses

Material Cost

Salaries, bonuses and employment benefits, etc.

On-site operational expenses

Co

rpo

rate

pro

fileC

orp

ora

te so

cial re

spo

nsib

ilityFin

ancial d

ata • En

viron

men

tal data

Consolidated Financial Data

Consolidated Financial Highlights

0

10,000

20,000

30,000

50,000

40,000

2.5%

5.2%

3.7%

5.3%

3.3%

2008 2009 2010 2011 2012 (FY)

46,185

31,950

45,419

23,257

29,843

0

1.0

1.5

2.0

2.5

0.5

2008 2009 2010 2011 2012 (FY)

2.4 2.42.3

2.2

2.4

Net Income and Return on Equity (ROE)(Thousand USD)

Dividend on Equity (DOE)(%)

Non-consolidated Financial Data

Allocation to Stakeholders (Thousand USD)

Breakdown of Completed Construction by Purpose (Thousand USD)

202,830

138,887 ∆9,256∆29,801

6,904

21,438 330,992

Cash and cash equivalents at beginning of

year

Cash and cash equivalents

at end of year

Increase in cash and cash

equivalents from newly

consolidated subsidiaries

Effect of exchange

rate change on cash and cash

equivalents

Cash flows from financing

activities

Cash flows from investing

activities

Cash flows from operating

activities

Consolidated Cash Flows (Thousand USD)

* Figures are converted into U.S. dollars at the rate of ¥93.99 to $1. * Figures of less than one unit are rounded off.

■ Net income Return on equity (ROE)

152,760Gross

profit-completed construction

1,939,610Cost of

completed construction

Sales of completed construction

2,092,371

Business694,020

Retail134,588

Industrial572,177

Other210,799

Hotel51,218

Educational157,069

Medical216,331 Entertainment

55,282Residential840


011_0385090382510.indd 18 2013/11/21 17:30:59


Envi ronmental Data

*1 Prime contracts of specified scale (new construction and refurbishment).*2 Estimated from amount of major materials. “Manual for Reducing Environmental Impact of Air Conditioning and Plumbing System (The Society of Heating, Air-Conditioning and

Sanitary Engineers of Japan)” used for unit conversions.*3 “Manual for Reducing Environmental Impact of Air Conditioning and Plumbing System (The Society of Heating, Air-Conditioning and Sanitary Engineers of Japan)” used for unit

conversions.*4 “List of Calculation Methods and Emission Factors for Accounting, Reporting and Disclosure Systems” (Ministry of the Environment) used for calculation of CO2 emission equivalent.

Reduction in CO2 through resource reduction measures in construction*3 -6,100 t-CO2

Reduction of ductwork, piping, and scaffolding (4,110 t)

Reduction in CO2 through energy-saving proposals at design stage -31,500 t-CO2

Energy saved (-222,600 GJ)

Reduction in CO2 through reduced device capacity at construction stage -52,000 t-CO2


Reduction in CO2 through reduced device capacity at operation stage -91,400 t-CO2


Amount of principal resource and material for building HVAC systems*1

Total capacity of cooling equipment 269,477 kW

Total capacity of heating equipment 117,422 kW

Total duct volume 1,157,233 m2

Total piping 6,751 t

Office ActivitiesOffice energy usage

Electricity consumption 3,791,441 kWh

Gas consumption 14,764 m3

Heavy oil consumption 18 kℓ

Kerosene consumption 12 kℓ

Heat from district heating and cooling 3,993 GJ

Total crude oil conversion volume of above energy

1,150 kℓ(Reporting obligation: 1,500 kℓ)

Sheets of copier paper (in A4 equivalent) 16,241,594

Green purchasing items 13

Production Activities

INPUT OUTPUTEnvironmental Activities

Thorough collection of CFCs

Promotion of reducing, reusing, and recycling resources at offices

Consideration for ecosystems

Promotion of reducing, reusing, and recycling resources at worksites

Proposing and implementing green

procurement

Green purchasing of office supplies

CO2 emissions from main production activities*2

(Scope 3, Category 1) 43,700 t-CO2

Total CO2 reduction from HVAC systems delivered to customers(Scope 3, Category 11) -174,900 t-CO2

Reduction of energy used in design

Reduction of energy used in operations

Reduction of materials used in construction

Reduction of energy used in construction

Reduction of energy used at offices

Reduction of greenhouse gas

emissions

Reduction and thorough

management of waste

CO2 emissions from office activities*4

(Scopes 1, 2)

Fiscal 2012 1.12 t-CO2/personReduction from previous fiscal year 0.010 t-CO2/person

2,390 t-CO2

Total industrial waste 40,431 tTotal amount landfilled 4,382 tRecycling rate 89.2 %

General waste 23.7 tFiscal 2012 23.1 kg/personReduction from previous fiscal year 2.0 kg/person

Number of green procurement proposals 59

Green purchasing 100% of 13 target items purchased

Specified CFCs collected 8.0 tDesignated CFCs collected 27.7 tNew refrigerants collected 2.1 tTotal CFCs collected 37.8 t

Fiscal 2012 Material Flow

011_0385090382510.indd 19 2013/11/21 17:31:00


Co

rpo

rate

pro

fileC

orp

ora

te so

cial re

spo

nsib

ilityFin

ancial d

ata • En

viron

men

tal data

(FY)

222

276257

196

139

2008 2009 2010 2011 20120

100

200

300

0

50

100

150

250

200

(FY)

133154

136159

241

2008 2009 2010 2011 20120

20

40

60

80

100

2008 2009 2010 2011 2012 (FY)

84 8581

58

75

Number of energy-saving proposals and diagnostics(proposals and diagnostics)

Number of energy-saving measures implemented through detailed study of design intent(measures)

Rate of energy-saving design proposals(%)

■ Number of proposals Adoption rate

(FY)

2,900

6,200

1,900

2,700

6,100

2008 2009 2010 2011 20120

2,000

4,000

6,000

8,000

Reduction in CO2 through reduced materials(t-CO2)

5967 65

101

22

0

20

40

80

60

100

0

20

60

40

80

100

8389

92

21

(FY)

16

2008 2009 2010 2011 2012

447

609

(FY)

648

443405

2008 2009 2010 2011 20120

250

500

750

Number of green procurement proposals and adoption rate(proposals)

Number of times managing construction waste(times)(%)

■ Designated CFCs collected ■ Specified CFCs collected■ New refrigerants Times CFCs collection

27

16

25

31

38

(FY)

195 196179

180

214

2008 2009 2010 2011 20120

10

20

30

40

0

100

50

150

250

200

Number of times CFCs collection (right axis) and amount collected (left axis)(t) (times)

(FY)

158 150167

141 135

2008 2009 2010 2011 20120

50

100

150

200

(FY)

1,4001,260 1,320

1,160 1,150

2008 2009 2010 2011 20120

500

1,000

1,500

Company-wide electricity usage(kWh/person/month)

Company-wide energy usage (in crude oil equivalent)(kℓ)

(FY)

1.30

0.83 0.91

1.24

1.94

2008 2009 2010 2011 20120

0.5

1.0

2.0

1.5

(FY)

881 856 891

1,124

1,320

2008 2009 2010 2011 20120

300

600

900

1,200

1,500

(FY)

2.22.3

2.1 2.11.9

2008 2009 2010 2011 20120

0.5

1.0

1.5

2.0

2.5

Company-wide green purchasing(100 million yen)

Company-wide copier paper usage(sheets/person/month)

Company-wide waste emissions(kg/person/month)

“Scope 3” There is a growing move towards planning and implementing effective measures to reduce CO2 emissions by tracking overall CO2 emissions throughout the supply chain, rather than CO2 emissions of the company alone, which enables a clear view of the stages with high emissions and the areas with a great potential to reduce emissions.

In March 2012, the Ministry of the Environment and the Ministry of Economy, Trade, and Industry published the “General Guidelines on Supply Chain GHG Emis-sion Accounting.” These guidelines define Scopes 1 and 2, which measure the com-pany’s emissions, and Scope 3, which measures other indirect emissions between

the company and its upstream and downstream partners.As the Company has long recognized its importance, our environmental reports

and CSR reports have disclosed calculated CO2 emissions from the manufacture of purchased materials and equipment used in construction (Scope 3, Category 1) and operation of HVAC systems delivered to customers (Scope 3, Category 11) since fiscal 2008.

After studying the amount of our emissions in all categories for Scope 3 in fiscal 2012, we learned that company cars used for commuting (Category 7) accounted for high levels of emissions. We have been working to reduce emissions in this cate-gory starting in fiscal 2013.

Column


011_0385090382510.indd 20 2013/11/21 17:31:00


Since fiscal 2006 (for the activities in fiscal 2005), the Company has introduced environmental accounting in accordance with the “Environmental Reporting Guidelines” published by the Ministry of the Environment, in order to provide information to make appropriate management decisions by analyzing the cost effectiveness of our environmental conservation activities. We have also pub-lished environmental accounting information as an effective way to enable our stakeholders to understand and evaluate the environmental activities in our

business operations.We quantified the environmental conservation costs and effects upon the

calculation of our environmental accounting. Environmental conservation ef-fects are estimated from the monetary amount related to CO2 reductions.

We will remain committed to continuing environmental conservation efforts, while staying focused on the costs and effects of environmental conservation.

Environmental Conservation Costs 1,427 million yen

Environmental Conservation Effect 3,474 million yen

Category Subcategory Main items used for calculationConservation cost(million yen)

Environmental Conservation Activities

Low environmental impact design Cost of low environmental impact design, etc. 6

Energy and material saving in construction Cost of energy and material saving, etc. 77

Proposals for energy-saving operation Cost of proposals for energy-saving operation, etc. 72

Collection of CFCs Cost of disposals of collected CFCs, etc. 152

Green purchasing and procurement Cost of green purchasing and procurement, etc. 64

Subtotal 371

Resource Reuse, Reduction, and Recycling

Construction waste reduction planning Cost of construction waste reduction planning, etc. 57

Disposal of industrial waste Cost of disposal of industrial waste, etc. 209

Disposal of general waste Cost of disposal of general waste, etc. 2

Subtotal 268

Management of Environmental Activities

Maintenance and operation of en-vironmental management systems

Cost of ISO 14001 registration screening, etc. 50

Disclosure of environmental information Cost of issuing environmental reports, etc. 2

Local environmental activities Cost of local environmental activities, etc. 9

Subtotal 61

Environmental Conservation Research and De-velopment

Cost of researching, developing, and im-proving energy and resource efficiency, etc.

727

Environmental Conservation Costs (Total) 1,427

CategoryType of Environmental

Impact ReductionReduced Amount

Economic Effect*1

(million yen)

Environmental Conservation

Reduction of CO2 in new construction design and at customer facilities

129,900 t-CO2

(Energy saving: 868,000 GJ/year)1,476

Reduction of CO2 in the Company’s production activities*2

6,100 t-CO2

(Resource reduction: 4,110 t)73

Collection of CFCs 38 t 1,314

Subtotal 2,863

Resource Reuse, Reduction, and Recycling

Recycling of construction waste 12,198 t 610

Recycling of general waste 69 t 1

Subtotal 611

Environmental Conservation Effect (Total) 3,474

*1 Estimated at 12,000 yen per tons-CO2, based on actual trading prices and valuation results of emissions trading program in Tokyo Prefecture.

*2 Estimated from reduced amount of CO2 from ductwork, piping, and scaffolding saving in prime contracts of specified minimum scale or larger.

2010 20122011 (FY)

1,337

709 727

63 61

268

371

225

340

1,427

896

57

193

321

1,467

0

1,000

500

1,500

2010 20122011 (FY)

1,440

374

3,045

503

937

3,419

2,863

611

3,474

0

1,000

1,500

2,000

2,500

3,000

500

3,500

Trends in Environmental Conservation Costs(million yen)

Trends in Environmental Conservation Effects(million yen)

■ Environmental Conservation Activities ■ Resource Reuse, Reduction, and Recycling ■ Management of Environmental Activities ■ Environmental Conservation Research and Development

■ Resource Reuse, Reduction, and Recycling ■ Environmental Conservation

Fiscal 2012 Environmental Accounting Report


011_0385090382510.indd 21 2013/11/21 17:31:00



23 Takasago Thermal Engineering’s CSR Management

25 Fair and Highly Transparent Management

27 Further Improving Customer Satisfaction

31 Contributing to Environmental Conservation

33 Realizing Employee Satisfaction

33 Harmony with Society

011_0385090382510.indd 22 2013/11/21 17:31:00


Taking as our management principle “Serving society through the cre-

ation of the best product quality on a foundation of mutual respect,”

Takasago Thermal Engineering considers it our mission to continuously

and actively contribute to society by responding to social needs amid the

changes in the social and economic environment surrounding the Com-

pany.

Therefore, our fundamental approach to CSR is to “position CSR man-

agement (socially responsible management) at the core of our manage-

ment as an integral part of our business since we work to increase our

corporate value while bearing social responsibility as a good corporate

citizen seeking to realize a sustainable society.”

Company PolicyContribution to society through personal harmony and creativity

Management Principles

CSR Management (Socially Responsible Management)

Fair and highly transparent management

1 To serve society through the development of business activities that focus on the creation of the best product quality

2 To develop technology that serves our customers’ needs and utilizes the creativity of all employees

3 To enhance personal character and harmony between people by human resource development and promoting mutual respect

• Corporate governance

• Compliance

• Internal control

• Risk manage-ment

• Information management, etc.

Shareholders and General public

Contributing to environmental conservation

Realizing employee satisfaction

• Energy saving

• Reduction and management of industrial waste

• Green procurement

• Consideration of the ecosystem, etc.

Environment andNext generation

Harmony with society

• Social contri-bution

• Promotion of culture

• Local environ-ment

• Information disclosure, etc.

Local community

Further improving customer

satisfaction

• Increasing added value

• Increasing product quality

• Safety and hygiene

• Research and development, etc.

Customers

• Utilizing and nurturing human resources

• Work-life balance

• Respect for human rights

• Diversity

• Work envi-ronment, etc.

Employees

In fiscal 2012, we continued to engage in activities under the five key

themes of “fair and highly transparent management,” “further improving

customer satisfaction,” “contributing to environmental conservation,”

“realizing employee satisfaction,” and “harmony with society.” We clari-

fied the basic philosophy, targets, and actions for each activity.

With the harmony and creativity of each and every person, we will

contribute to the development of society by providing building equipment

and services aimed at realizing the highest quality air environment and

a low carbon society. At the same time, through our efforts under these

five key themes, we will improve the communication with all stakeholders

and fulfill our responsibility as a member of society.

Takasago Thermal Engineering’s CSR Management

012_0385090382510.indd 23 2013/11/12 5:19:15

24


Takasago Thermal Engineering Co., Ltd. CSR Report 2013

The Company has established a “Company-wide CSR Management

Meeting” chaired by the president in order to promote CSR activities. At the

meeting, basic policy is deliberated and the status of activities is reviewed,

while at the same time discussing on items that need to be rectified.

In addition, a “CSR Management Office” was set up in the Corporate

Planning Group, which serves as the secretariat for the Company-wide CSR

Management Meeting. Meanwhile, “CSR management committees” made

up of the division heads have been formed at head office and each branch

to review the status of implementation of CSR activities in each division

Working groups on each key theme

Separate meetings for each target

Separate meetings for each organization

Risk Management Committee

Corporate ethicsCommittee

Quality and Environment Committee

CSR Management OfficeHead office/Branch office

CSR Management committees

Company-wide CSR Management Meeting(Chair: President)

and to conduct discussions regarding items that are not adequate.

In fiscal 2012, with regard to the five key themes for activities, we iden-

tified targets for the year and items for implementation based on the policy

for each activity. We carried on with drawing up a “CSR Activities Plan” as

part of the business plan for the fiscal year.

In order to put this plan into action, we have implemented a promotion

system under which each group carries out activities according to the

PDCA (plan, do, check, act) cycle, centering on working groups for each of

the five key themes and various committees for each target.

System for Management of CSR Activities

Local community

Suppliers/Partner

companies

Employees

Environment/Next generation

Shareholders/InvestorsCustomers


Disclose information adequately on a timely basis

Secure stable income and make appropriate distributions

Maintain and increase corporate value

Actively contribute to the prevention of global warming

Make effective utilization of resources and energy

Reduce and control industrial waste

Carry out fair and highly transparent trading

Cooperate to increase productivity

Work together to enhance safety measures

Provide and support flexible working environments

Utilize and nurture human resources

Assess and treat employees fairly

Respect diversity, character, and individuality

Consider for occupational health and safety

Actively participate in social contribution activities

Prevent accidents and disasters at construction sites

Cooperate in and give support to arts and culture activities

Conserve the local environment

Develop and provide valuable products and services

Ensure quality and safety of construction products

Respond actively and sincerely to customers' needs

Properly handle customer information

Major Stakeholders and the Company's Responsibilities

Co

rpo

rate

pro

fileFin

ancial d

ata • En

viron

men

tal data

Co

rpo

rate

socia

l resp

on

sibility

012_0385090382510.indd 24 2013/11/12 5:19:15


Enhancing Corporate GovernanceFair and Highly Transparent Management

Basic Philosophy on Corporate GovernanceThe Company’s basic philosophy on corporate governance is to “ensure the legitimacy, transparency and promptness of management, to increase

management efficiency in order to raise corporate value in the medium to long term, and to earn the trust of society.”

Corporate governance system

Audit Audit and report

Report

Election and dismissal Election and dismissal Election and dismissal

Election and dismissal

Approval of election and re-electionDetermining the appropriateness of accounting audit

Election, dismissal, and supervision

Audit Report

Report

Discussion and reporting of important matters

Instructions and supervision

Instructions and supervision Audit

Instructions Report

PolicyReport

Board of Auditors

Executive Officers Internal Audit Office

Divisions, Group Companies

Board of Directors Accounting Auditor

President, Vice President

Nomination Compensation CommitteeManagement Committee

CSR Management Meeting

Quality and Environment Committee

Corporate ethics Committee

Risk Management Committee

General Meeting of Shareholders

Further Deepening of CSR Management

Basic Policy for CSR Activities

1. For top management to recognize CSR management as their own role, and to set an example for others.

2. To inform every employee of corporate ethics and legal compliance.

3. To actively promote global environment conservation activities.

4. To provide products and services of use to society to ensure customer satisfaction.

5. To increase employees’ motivation and promote development of their skills.

6. To actively engage in communication with society.

7. To implement a system to promote the above.Company-wide CSR Management Meeting

System for Management of CSR ActivitiesIn 2005, the Company formulated its “CSR Activities Regulations,” and has promoted CSR management initiatives since then. In fiscal 2012, activities based on

the five key themes were expanded company-wide under the “CSR Activities Plan.” These initiatives were further deepened mainly by managing progress status

and facilitating discussion on items that need to be addressed based on the new management system.

The purpose is to carry out socially responsible management by improving the activities themselves through repetition of an ongoing, planned, and all-encom-

passing PDCA cycle, with a view to heightening understanding of CSR among executives and employees and resolving the issues faced by each division.

The policy for CSR activities in fiscal 2013 will be to “pursue results with priority directed toward activities that are practically effective in light of assessments

of the previous fiscal year, while grappling with urgent management challenges and practicing risk control.”

All executives and employees of the Company will continue to share the “Company’s principles and policies (basic philosophy)” for these various activities as

we steadily practice CSR management through the activities of each and every individual.

012_0385090382510.indd 25 2013/11/12 5:19:16

26



Development and Implementation of “Group Action Guidelines”Recognizing that establishing compliance is the foundation of CSR

management, in fiscal 2011 the Company established the “Group

Action Guidelines” as a basic guide for the actions of Group ex-

ecutives and employees in the execution of corporate activities by

the Group from the perspective of adherence to laws and internal

rules, action in accord with corporate ethics, and harmony and

co-existence with society. In conjunction with that, the previous

“Code of Business Conduct” (established in 2002) was revised as

the “Group Code of Business Conduct.”

We are implementing these codes by putting them together in

a small booklet that can be easily carried so that all Group execu-

tives and employees will become familiar with them and practice

them in their daily activities. ❶

Promoting Proper Procurement TradingIn order to promote fair, transparent and free competition as well

as proper trading, we not only assess the economic rationality of

our procurement activities but also evaluate the systems at our

trading partners (including purchasing and outsourcing partners) in

the aspects such as legal compliance, product quality, technology,

information management, fair trading and corporate ethics, environ-

mental conservation, safety and hygiene, human rights and labor, in

an effort to ensure that social responsibility is fulfilled by each.

❶Group Code of Business Conduct

❷Company-wide compliance training

Basic Policy for Procurement

The Company’s basic policy on purchasing and outsourcing transac-tions has been set as follows.

1. To strive to build good partnerships with our trading partners based on mutual understanding and trust.

2. To provide fair trading opportunities to our trading partners.

3. To select transactions rationally, based on comprehensive assess-ment in the aspects of legal compliance, product quality, price, delivery date, technological capabilities, environmental conser-vation, safety and hygiene, soundness of management, etc.

Rigorous ComplianceFair and Highly Transparent Management

Report Instructions

Report Instructions and support

Report Instructions and support Report

Report (Branch CSR promotion committees)

Instructions

Instructions (CSR Activities Plan)

Report (CSR Promotion Meeting)

Group General Manager of Corporate Planning Group

Risk Management CommitteeEmergency measures headquarters

Local measures headquarters

Divisions, Group Companies

General Managers, Branch Managers

PresidentEmergency Normally

❶Risk management system

Basic Philosophy on Risk ManagementThe Company’s basic philosophy on risk management is to “promote risk management in order to ensure business continuity by seeking to prevent

all risks surrounding the business before they arise while minimizing losses when crises do occur.”

Enhancing Risk ManagementFair and Highly Transparent Management

Co

rpo

rate

pro

fileFin

ancial d

ata • En

viron

men

tal data

Co

rpo

rate

socia

l resp

on

sibility

012_0385090382510.indd 26 2013/11/12 5:19:17


Basic Philosophy on Customer SatisfactionThe Company’s basic philosophy on customer satisfaction is to satisfy our customers and win their trust by developing and offering socially valuable construction equipment and services that contribute to the development of a sustainable society.

Promoting Green Air® ActivitiesThe Takasago Group promotes “Green Air® Activities” to increase custom-er satisfaction.

The purpose of “Green Air® Activities” is to make our customers’ equip-ment more energy efficient and to reduce environmental impact while delivering air environment of the highest quality. In FY2011, we estab-lished our “Basic Policy for Environmental Solution Activities (Basic Policy for Green Air® Activities)” to promote these activities. In conjunction with this policy, we implemented new initiatives such as “operations follow-up activity,” “Green Air IDC activities,” and the “integrated power saving system,” in addition to our existing “ESCO operation and Consignment business” which guarantees and validates energy efficiency performance. In FY2013, we opened our “GreenAir Plaza” in the Kyobashi area of Tokyo. GreenAir Plaza is a comprehensive exhibition space for the Group, and helps us communicate the benefits of our “Green Air® Activities” in more depth to a broader range of customers. ❶

❶”Takasago Thermal Engineering Green Air® Activities”

❷The Green Air® Activities Logo

Customer CenterCustomerWe want to save energy

consumption but…(What should we do?)

Head office and branches around Japan

What are your concerns?

Energy saving?

Indoor environment?

Legal compliance?

Cutting power peak

GODA

Scenario productionIssue clarification

Energysaving

planningDesign

Constructionwork

❸Process of facilities operation consultation

ESCO operation and Consignment

business

Green Air IDC activities

Integrated power saving

system

Operations follow-up

activity

Eco from air

Building on Green Air® ActivitiesFurther Improving Customer Satisfaction

“Basic Policy for Environmental Solution Activities (Basic Policy for Green Air® Activities)”

We will contribute to our customers in overcoming their issues by actively develop-ing and deploying technologies that save energy and reduce CO2 emissions, and col-laborate with our customers to optimize their operation of construction equipment.

Supporting Efficient Operation of Equipment in Constructed Buildings: Implementing “Operations Follow-up Measures”Our job does not end with construction. After the construction is complet-ed, we promote a follow-up on the operation of equipment, such as tuning for energy conservation, in collaboration with our customers. Through our operations follow-up, we offer a broad range of support to keep equipment in functional condition and to improve efficiency through its operation.

Our operation follow-up measures are performed by a dedicated “Cus-tomer Center.” The Customer Center performs a detailed analysis of opera-tional data, and utilizes it to optimize operation. ❸

The Green Air® Activities LogoIn 2006, we created a logo for the Group’s “Green Air® Activities” in order to increase the understanding of these initiatives among as many stake-holders as possible. The logo combines the catch phrases of “eco from air” and “Takasago Green Air®.” ❷

For details, see p.11

Dealing with the Increasing Energy Consumption at Data Centers: Promoting “Green Air IDC Activities”Data centers use much more energy than general offices—about 10 times as much. Our customers are facing the urgent task of reducing the consumption of energy for HVAC due to the rapid increase of recent data center installations. The Company uses its independently developed tech-nologies for diagnosing and simulating the thermal environment in data centers to conduct tuning for an efficient operation of cooling systems with less energy consumption. ❹

Electricity Conservation Initiatives: Developing “Integrated Power Saving System”Our customers need to reduce their peak electricity usage, due to the shortage of electricity. The Company met this need by launching sales of the “integrated power saving system.” This system is fine-tuned to control demand through such measures as “implementing phased energy consumption control, incorporating the weather forecast, and predicting the amount of electricity used.” The system also achieves peak-shifting by controlling power generation, charging, and discharging through “pre-diction of the amount of solar power that will be generated” and “use of energy storage units (lithium batteries and control systems).” These measures enable the systems to save energy without expending excessive effort, while maintaining a comfortable indoor environment.

012_0385090382510.indd 27 2013/11/12 5:19:53

28



❶”Takasago Thermal Engineering Green Air® Activities”

This service is an operation measures service for the entire life cycle of the IDC.

IT equipment thermal load Server load TimeTime

Large-scale tuning Increased HVAC Increased heat sources

Construction

Commissioning

1-2 years after completion

Diagnostics from ongoing operations

Completion

Investigation planWalkthrough investigation, diagnosis plan

We offer single and mul t i -year contracts, mainte-nance, consulting a n d p e r i o d i c reporting services.

ProposalProposal of comprehensive optimization

DiagnosisAscertain current status, and simultaneously assess thermal environment and energy

TuningTrial tuning, tuning, diagnosis of potential emergency situations, assessment report

Building efficient system Securing reliability and energy saving operations through continuous diagnosis and tuning

Propose diagnosis and tuning

Propose diagnosis and tuning

Initial performance verification

Plan to increase HVAC before additional server rack installation

Optimization

Optimization

Appropriate HVAC operation

Optimization

Before additional server rack installation

CO2 reduction

Medium and long term operation plan

Thermal load, HVAC capacityThermal load, HVAC capacity

HVAC capacity

❹Process of Green Air IDC activities

Energy service business schemeFull-scale Entry into “Energy Service Business” for HospitalsIn December 2012, the Company made a full-scale launch into

the energy service business that contributes to saving energy and

reducing costs at hospital facilities. The energy service business

is a one-stop solution for installing, maintaining, and managing

heat source equipment.

Under the energy service business model, the Company retains

ownership of boilers, freezers, and other heat source equipment,

and supplies energy to the customer, while tracking energy usage

and optimizing operations for the customer’s needs. This service

helps our customers streamline the management at their facilities.

Heat source equipment Heat source equipment contractorContractor provides operational management and maintenance, including preventive maintenance


Yearly (monthly) service payments included in cost of service

Tax

Electric/gas company

Construction costs, Heating, & lighting costsLeasing costsOperational management & maintenance costsConsulting costs, etc.

Contracted service cost

Maintenance

Hospital

Provide service(Full service for heat source)

Supply electricity and gasPay fees

Breakdown

Ownership(Contractor)

Close up!!

Co

rpo

rate

pro

fileFin

ancial d

ata • En

viron

men

tal data

Co

rpo

rate

socia

l resp

on

sibility

012_0385090382510.indd 28 2013/11/12 5:19:55


Offering Quality that Earns Satisfaction and TrustFurther Improving Customer Satisfaction

Basic Philosophy on QualityThe Company’s basic philosophy on quality is to “earn the satisfaction and

trust of our customers by continually offering high-quality, safe, high-per-

formance construction equipment and services.” Based on this philosophy,

in fiscal 2011, we defined our “Basic Policy for Quality,” standardizing our

structure for promoting quality.

Having created a structure that responds to customers’ needs and in-

quiries swiftly, appropriately, and in good faith, we are committed to main-

taining and improving the construction equipment and services we have

provided.

1. To strive to ascertain our customers’ needs and contribute to our customers’ businesses by of-fering the optimized quality.

2. To comply with all related legal requirements.

3. To promote research and development, and offer cutting-edge quality.

4. To offer services continually over the life cycle of construction equipment.

5. For promoting this policy, to create a structure for pursuing quality control and commit to its continuous maintenance and improvement.

Basic Policy for Quality

Internal training

Fiscal 2013 Company-wide health and safety conference

Thorough Commitment to Occupational SafetyFurther Improving Customer Satisfaction

Basic Philosophy on SafetyIn 2000, the Company defined its health and safety philosophy, “Safety

takes top priority in all business tasks.” Under this philosophy, we defined

our basic safety policy as, “the employees working for Takasago Thermal

Engineering and their families must never suffer from accidents at con-

struction sites.” Based on this policy, we are committed to health and safe-

ty activities in the workplace.

The employees working for Takasago Thermal En-

gineering and their families must never suffer from

accidents at construction sites.

Basic Policy for Health and Safety Activities

1. To have consideration for ourselves and others.

2. To be more sensitive to danger.

3. To study safety measures thoroughly.

4. To maintain a strict attitude toward safety.

012_0385090382510.indd 29 2013/11/12 5:19:58

30



Facility construction technologies

Facility ConstructionTechnology

Water environmentpurification

Facility management

and operation

Production environment

cleaning

Indoor environment

control

Energy utilization and supply

Going back to our roots as an engineering company, we are also putt ing our efforts into further advance-

ment of construction technologies.

Facility Construction Technologies

With the latest HVAC systems and timely consideration of on-site needs, we are developing new solution technology and applying it to on-site construction, and are thereby contributing to the construction of high-quality facilities.

1. Customer NeedsComfort, health, clean low-humidity environment, fast installation

2. Consideration of Global Environment, ZEBEnergy saving, reduction in CO2, resource saving, elimination of CFC

3. Construction-site NeedsQuality, cost, productivity, safety

4. Societal DemandsSafety, elimination of asbestos, treatment of exhaust gas and wastewater

ResearchFields

Further strengthening of construction technologies

Strengthening of on-site and technical-development capabilities

Strengtheningcooperation

Sharinginformation

Spiral up

TechnicalDivision

Research & Development Center

Planning and promotion of sophistication

Planning and promotion of development

Research, development, verification, acquisition

Standardizationof technology

Differentiatedtechnology

Dissemination of technology (through cooperation)

On-site needs

Promoting Research and DevelopmentFurther Improving Customer Satisfaction

Basic Philosophy on Research and DevelopmentUnder the Company’s management principle, “develop unique technology that serves our customers’ needs,” we promote research and development in accordance with the basic policy listed to the right.

Helping to Achieve a Sustainable SocietyFollowing the Great East Japan Earthquake, there has been increasing de-mand among our customers regarding matters such as conserving electric-ity, saving energy, and ensuring business continuity. We are responding to these demands by enhancing our research and development in a number of fields, including systems for the integrated management of building-equip-ment energy; systems that make efficient use of thermal energy; thermal stratification type HVAC systems designed for maximum energy saving, comfort, and convenience; and low dew point temperature clean air supply systems for the manufacturing process of rechargeable lithium ion batter-ies. Our achievements of this field in fiscal 2012 are the commercialization of air cooled package HVAC equipment for IDC-SFLOW, a data center HVAC system; a “solar source heat pump system” using “wave-shaped panels” able to collect solar heat and heat of outside air with high efficiency, just by installing them on the rooftop where there is sunlight and natural wind; and a “calorimeter for pipe surface” that facilitates the measurement of heating medium flow and its quantity of heat through existing piping, which is a key index for saving energy in heat source equipment.

Furthermore, in order to achieve a sustainable society, we are work-ing on the research and development for Zero Energy Buildings (ZEB) by integrating the above technologies, as well as developing innovative construction technologies to ensure the continuity of our businesses. Our achievements of this field in fiscal 2012 include the commercialization of “N-FreeB” (Nitrogen Free Brazing), a new method of copper pipe brazing that does not require nitrogen substitution.

Basic Policy for Research and Development

1. To offer the optimum environment with the minimum energy.

2. To pursue environmental technologies to improve production efficiency.

3. To develop construction technologies that contribute to higher quality and less energy.

To develop unique technology that serves our customers’ needs.

Co

rpo

rate

pro

fileFin

ancial d

ata • En

viron

men

tal data

Co

rpo

rate

socia

l resp

on

sibility

012_0385090382510.indd 30 2013/11/12 5:19:59


Environmental Conservation ActivitiesContributing to Environmental Conservation

Basic Philosophy on Environmental ConservationThe Company’s basic philosophy on environmental conservation is to

“endeavor to harness our corporate power and environment preservation

technologies, with the aim of contributing to the ‘sustained development

of society while protecting the Earth’s environment.’” Based on this phi-

losophy, we have defined a “Basic Policy for Environment” in order to

standardize our structure for promoting environmental conservation. In

our business activities, we strive to proactively develop technologies that

save energy and reduce CO2, optimize equipment operation in collabora-

tion with our customers, and help to create a low carbon society. We also

comply thoroughly with all environmental laws and regulations, and seek

to prevent environmental pollution, while working actively to save energy

and reduce CO2 internally through efforts at our production sites (includ-

ing construction sites) and offices.

We endeavor to harness our corporate power and environment preservation technologies, with the aim of contributing to the “sustained development of society

while protecting the Earth’s environment.”

1. To promote effective use of energy and resources.

2. To promote development and use of technologies to reduce envi-ronmental impact.

3. To strive to raise the awareness of executives and employees to the global environment, and participate in environmental conser-vation activities.

4. For promoting this policy, to create a structure for pursuing en-vironmental conservation and commit to its continuous mainte-nance and improvement.

Basic Policy for Environment

Targets and Results of Environmental Activities in Japan in fiscal 2012 Medium-term Target

Target of Activity

Activity Category Description of Activity Control Items Control

Standard Actual Evaluation Fiscal 2013 Target

Prom

ote effo

rts to ach

ieve low

carbo

n so

ciety

Reduction of greenhouse gas emissions

Propose energy savings at design, construction, and

operation stages

Propose energy saving in designAmount of energy saved*1

Baseline*2 energy consumption20% 28% (^_^) 30% reduction*7

Reduce equipment capacity in constructionAmount of energy saved*3

Energy consumption in original design10% 8% (^_^) 10% reduction

Propose energy saving in operationAmount of energy saved*4

Current energy consumption30% 31% (^_^) 30% reduction*8

Saving energy in offices

Reduce energy usage at head office, main branches, sales branches, R&D center, and

recreational facilities

Energy consumption for current fiscal year

Energy consumption for previous fiscal year1% 1% (^_^) 1% year on year

Promote reduction of electricity usage at head office and branches, and collect and

analyze results

Electricity usage/person for current fiscal year

Electricity usage/person for previous fiscal year3% 0% (-.-)

Subsumed in total energy

Reducing construction materials

Reduce volume of piping, ductwork, and equipment scaffolding in construction

Material reduction volume

Materials used for ductwork, piping, and scaffolding in original design10% 14% (^_^) 20% reduction

*1 New buildings designed by the Company of certain scale.*2 The baseline value is the energy consumption for the year or the amount defined for a specific project, equivalent to the baseline in the Law Concerning the Rational Use of Energy.*3 Contracts of certain scale (new construction and refurbishment).*4 Refurbishments designed by the Company of certain scale.*5 Prime contracts of certain scale (new construction and refurbishment).*6 All prime contracts.*7 Target is 30% reduction of baseline value stipulated in the Law Concerning the Rational Use of Energy.*8 24% reduction in fiscal 2012 compared to fiscal 2005.

Review of Environmental Conservation ActivitiesContributing to Environmental Conservation

1–

1–

012_0385090382510.indd 31 2013/11/12 5:19:59

32



HVAC systems account for over 50% of a building’s total energy use. We

actively propose high efficiency systems (such as integrated heat source

systems ) and energy-saving devices (such as refrigerant sub-cooling ),

We reduce construction materials by considering the optimum routes for duct and

piping delivered to construction sites , and revising equipment scaffolding .

Reducing construction materials also reduces the CO2 emissions from

Integrated Heat Source SystemThe Takasago Integrated Heat Source System is a heat source system with one of the highest levels of energy conservation performance in the world, which it achieves by removing as much wasteful consump-tion of energy as possible to maintain the ideal operating conditions. The devices which constitute the system are commercially available general-use items, but an order-made system is designed which is op-timal for the customer’s circumstances.

Heat Source Machine Room Piping Work DiagramsWhen we create work diagrams based on design drawings, we thor-oughly consider the optimum routes, which enables us to reduce ma-terial waste.

We create and study three-dimensional work diagrams of the pip-ing routes and other aspects of machine rooms which are especially complex.

Refrigerant Sub-coolingWe greatly improve efficiency by heat exchangers for installing refrig-erant sub-cooling along refrigerant piping in multi-type building HVAC.

Water in cooling towers, boiler make-up water, well water and other water sources can be used as cooling water. We can propose systems suited to the location they are installed.

Equipment Scaffolding Optimization SystemThis system optimizes the structural elements of equipment scaf-folding, using our original equipment scaffolding structural design technologies to fine-tune the layout of devices, duct, piping, and other equipment, and give consideration to maintenance route and space.

This enables us to ascertain the status of equipment scaffolding—both of the structure as a whole and of each component of the structure—and thoroughly eliminate unnecessary scaffolding material, ensure seismic integrity, and reduce materials.

Proposals to Save Energy at Design, Construction, and Operation Stages Reduced Emissions by 175,000 tons CO2-equivalent

Reducing 6,000 tons CO2-equivalent through Reduction of Construction Materials

In fiscal 2012, we reduced CO2 emissions by about 180,000 tons. This is

equivalent to the annual emissions of 60,000 households. We achieved

this reduction by proposing energy saving in HVAC systems at the design,

Commitment to a Low Carbon SocietyContributing to Environmental Conservation

construction, and operation stages, reducing materials used in construction,

and saving energy in offices.

both in our design and construction of HVAC systems (the Company’s main

business) and in our customers’ HVAC systems. The energy savings are about

1,240,000 GJ primary energy equivalent and about 175,000 tons-CO2 equivalent.

their manufacturing and transportation process. In fiscal 2012, we reduced

emissions by a total of approximately 6,000 tons CO2-equivalent for three

construction materials.

1

1

3

2

4

2

3 4

Sub-cooling unit

Indoor unitIndoor unit

IndoorsOutdoors

Cooling water

Cooling water pump

Refrigerant pipe

Refrigerant gas pipe

Outdoor unit

Cooling tower

Cooling water

Cold water

Medium temperature

cold water(production

cooling water)

Low temperaturecold water

(air conditioningload)

Ice thermal storage tank

Dump radiator

HEX for free cooling

HEX for free cooling

Integrated cooling towers

UHE screw type brine chiller

Brine

HEX for compressor-aided operation

INV

INV

INV driven turborefrigerator

Co

rpo

rate

pro

fileFin

ancial d

ata • En

viron

men

tal data

Co

rpo

rate

socia

l resp

on

sibility

012_0385090382510.indd 32 2013/11/12 5:20:00


Respect for Human Rights and DiversityRealizing Employee Satisfaction

Human Rights Policy

The Company respects the fundamental human rights stipulated by the “Universal Declaration of Human Rights” and “the Constitution of Japan,” and does not discrim-inate in any way on the basis of matters such as race, sex, nationality, beliefs, social status, or physical reasons, but considers the character and individuality of employ-ees. In our overseas operations, we adhere to international treaties prohibiting forced labor and child labor and obey all local laws, while striving to understand the culture and customs. By actively engaging in activities to raise awareness of human rights and in related education, we cultivate a spirit of mutual respect among people.

Basic Philosophy on Human RightsThe Company’s basic philosophy on human rights is to “respect fundamental human rights, and not to discriminate on the basis of matters including race, sex, nationality, beliefs, social status, or physical reasons.” Under this philos-ophy, we strive to ensure equality of opportunity in employment, respect for the character, individuality and human rights of our employees, and a safe and comfortable working environment. Furthermore, we absolutely reject practices such as child labor and forced labor.

Respect for DiversityThe Company makes “mutual respect among people” one of its funda-mental management principles, and practices fair promotion of employees regardless of nationality or sex, while seeking to create a workplace where diverse human resources can express their individuality and skills to the fullest and play an active role. In fiscal 2012, we further increased the number of female technical staff and endeavored to build a workplace environment where they can fully utilize their skills. Regarding employment of the disabled, the percentage of disabled employees exceeds the ratio required under the revised law of April 2013.

In addition, the Company promotes employment of graduates of foreign nationality who have graduated from Japanese universities and conducts technical training in Japan for staff employed at Group companies over-seas. We expect that the trainees will make use of the technical capabilities they have acquired in Japan, and will become valuable human resources as globalization picks up speed in the years ahead.

Green Festival – Creating Kanagawa’s Forest of the Future 2012

We planted seedlings around the trees that had been planted personally by Imperial couple at the National Tree-planting Festival.

Initiatives for Social Contribution ActivitiesHarmony with Society

Basic Philosophy on Social ContributionThe Company’s basic philosophy on social contribution is to “fulfill our social responsibility as a ‘good corporate citizen’ by engaging voluntarily in social contribution activities.” We pursue harmony with local society by informing all executives and employees of our basic policy and being actively involved in initiatives such as support for activities related to the local environment and arts and culture.

Basic Policy for Social Contribution

1. To actively engage in social contribution activities as a “good corporate citizen.”

2. To cultivate good relations with local communities through organized participation in local activities and other events.

3. To contribute to promotion of culture through cooperation and sup-port for academia, research, education, the arts, and other areas.

4. To raise individual awareness through support for volun-tary social participation by executives and employees.

The ongoing NUOVA Project, distributing pizza from a mobile pizza truck and organizing pizza-making activities (for details, see “TOPICS,” p.11)

Donation to support activities for evacuees from Naraha, Fukushima Prefecture

Volunteer activities in support of reconstruction after the Great East Japan Earthquake (Tohoku Branch)� ❶❷

❷ Volunteer activities in support of reconstruction after the Great East Japan Earthquake (ii)

❶ Volunteer activities in support of reconstruction after the Great East Japan Earthquake (i)

The Company makes donations and carries out activities to assist reconstruction. In fiscal 2012, we enhanced our

support system by offering accident insurance and financial grants for relief activities to encourage employees to get

involved in volunteering.

Assistance for Disaster-stricken Areas

Orientation meeting for National Staff of overseas subsidiaries

012_0385090382510.indd 33 2013/11/12 5:20:03

34

Third Party Opinion

Response to the Third Party Opinion

Makoto KojimaCorporate Planning Group, Corporate Planning Division, General Manager, CSR Management Office

Professor Bai has served on the staff of Reitaku University since 2001. His posit ions include Chairman, Japan Society For Management Accounting; Vice-President, ICBM (International Conference on Business Management); and Councilor, Japan Federation of Management related Academies. He was a visiting lecturer at Bond University, Faculty of Business in Australia in 2008.

Since completely reforming its “CSR Activities Plan” in 2011,

Takasago Thermal Engineering (hereinafter, the “Company”) has

been actively working to visualize the status of its activities by

collecting and organizing financial data related to CSR activities

for the CSR Report 2013. I offer the following as a third party

opinion from the perspective of CSR accounting that attempts to

quantify CSR activities and the promotion of enduring corporate

management.

Highly-evaluated PointsSpecial Features 1-3 describe how the Company practices social

contribution through its business as a leading company in the

HVAC industry, such as by providing support for the challenge

of improving the energy efficiency of data centers, and through

approaches using rigorous simplification and modularization at a

new factory construction project. In addition, I highly evaluate the

Company’s efforts during the current fiscal year to promote the

visualization of CSR activities as an attempt to pursue sustained

growth for the future.

In order to promote CSR activities, it is necessary to show the

basic policy clarifying how CSR activities will be put into practice

based on “management principles.” This information is sum-

marized in “Takasago Thermal Engineering’s CSR Management

(p.23).” The contents of the report reveal not only the relation-

ship with stakeholders based on the Company’s management

principles, but also an awareness of coordination with business

activities.

Furthermore, with the introduction in fiscal 2012 of “Financial

Data (p.17-18)” and “Environmental Data (p.19-21),” CSR ac-

tivities have become visualized, and the Company is making the

status of its CSR management efforts even easier for stakeholders

to “Mieruka (visualization)” than they have been to date. This

gives concrete shape to the Company’s principle of promoting

CSR activities as an integral part of business activities rather

In preparing this year’s report, we have been guided by the

principle of conveying as clearly as possible an overall picture

of the Takasago Group and the current status of our CSR ini-

tiatives.

We are deeply honored by this evaluation that our CSR

activities have been integrated with our business activities and

than positioning them as a special separate activity. These kinds

of initiatives reflect the strong will of top management and the

Company to create “integrated reports” in the future, and we can

expect significant development of the Company’s CSR manage-

ment in the future based on the contents of this report.

Points Where Improvement Can be Expected in the FutureIn recent years, the way of corporate reporting has been under-

going a major transformation due to the new concept of “inte-

grated reporting.” The importance of non-financial information

in evaluation of corporate value is growing year by year. In that

context, I would like to see the Company pursue even further the

establishment of an integrated CSR management system uniting

the quantitative (non-financial) information on CSR activities pre-

sented here and the management strategies.

The first step in establishing a CSR management system

would be to deepen shared awareness through communication

with each business division such as sales and procurement based

on the quantitative information regarding CSR activities disclosed

in this report, and to create a mechanism to grasp and monitor

potential CSR risks.

What is essential for CSR management is to collect and man-

age comparable data, including non-financial information, and to

feed back the status and level of efforts related to CSR initiatives

to business activities. As a result, the PDCA cycle of the CSR

Activities Plan becomes more closely linked to the management

strategy, and a system will be established in which it can give a

concrete explanation of the relationship with strategic allocations

of profit based on the Company’s management principles and

action guidelines.

I offer my best wishes for your increasing development in your

pursuit of sustained growth so that you will be able to show your

stakeholders what an enduring corporation should be.

that we are making steady progress in this regard.

We will continue to focus efforts on the environmental

solutions business while striving to gain even greater under-

standing from all stakeholders by pressing ahead with the cre-

ation of a mechanism mindful of future integrated reporting.

Mr. Kazuhiro Bai (Doctor of Business Administration)Deputy Director, Reitaku University, Business Ethics and Compliance Research CenterProfessor, Reitaku University, Faculty of Economics and Business Administration, C. Hiroike School of Graduate Studies, School of Economics and Business Administration


高砂

熱学

工業

CSR報

告書

2013

Contact Takasago Thermal Engineering Co., Ltd.

Corporate Planning Group, Corporate Planning Division, CSR Management Office

TryEdge-Ochanomizu, 4-2-5 Kanda Surugadai, Chiyoda-ku, Tokyo 101-8321

Tel: 03-3255-8213 Fax: 03-3255-8255

http://www.tte-net.co.jp

takasago thermal engineering co., ltd. - tte-net.com · pdf filetakasago thermal engineering...

Documents