At the JGC Group, under our corporate philosophy “JGC’s Purpose and Values,” we have established “Challenge” and “Integrity” as part of the values to be shared by all employees, positioning compliance as the cornerstone of management. For our Group to achieve sustainable business development as a member of the international community, it is essential to comply with domestic and international laws and to conduct business fairly and equitably in accordance with corporate ethics. Based on this recognition, we have established the “JGC Group Code of Business Conduct” to define important matters to be observed when putting our corporate philosophy into practice, and we require all employees to comply with it.

The Company formulated the Code of Business Conduct in 2002 as a foundation for realizing its corporate philosophy. The “JGC Group Code of Business Conduct,”established in April 2018, further enhanced and specified the contents of the former Code of Business Conduct in order to address increasingly diverse and sophisticated compliance requirements.
In 2022, the JGC Group also set forth "Enhancing planetary health" as its Group's purpose. As a foundation for this purpose, the JGC Group Code of Business Conduct clearly sets out the concrete standards that all individuals working within the Group should rely on in putting our corporate philosophy into practice.

• The JGC Group Code of Business Conduct

The JGC Group has established a Group compliance system to ensure each company carries out its business based on high ethical standards. Each major Group company assigns a compliance officer who, together with the compliance department under their direction, evaluates company-specific risks and formulates and implements measures tailored to each company’s circumstances. In addition, to facilitate information sharing and collaboration on compliance activities among Group companies, we have established a Compliance Committee, aiming to realize cross-group initiatives. The Compliance Unit at JGC Holdings is responsible for comprehensive measures, coordination, and other functions for the entire Group.

JGC Group Compliance System Organization

To promptly identify and prevent compliance risks, our Group has established both internal and external contact points, including the external JGC Group Compliance Hotline, allowing individuals to choose where to seek advice or report concerns. We also accept anonymous consultations and reports, thereby creating an environment where it is easy to consult or report on violations of laws, our Group Code of Conduct, or human rights issues. We have also established a system to accept reports from business partners and other stakeholders involved in our business activities via our website.

Number of Reports Received by Hotlines

JGC Group Consulting and Reporting Hotline Organization

Each company in our Group conducts its business activities based on high ethical standards. In conducting these business activities, our fundamental policy is not only to comply with anti-bribery laws in each country, but also to engage only with trustworthy business partners.
Based on this fundamental policy, we conduct prior screening of our Group’s business partners to prevent illegal transactions or those that could result in sanctions. Depending on the results of these screenings, we implement risk-based measures, such as stipulating strict anti-bribery clauses and other appropriate provisions in contracts with business partners.

Furthermore, under the Group’s purpose and Code of Conduct, we have established anti-bribery regulations as shown in the table above and implemented anti-bribery programs. We also require advance applications and monitor gifts, entertainment, donations, and political contributions to detect transactions that could lead to corruption or reputational risk. In addition, to ensure compliance with domestic and international competition laws, we continuously review internal regulations and guidelines as appropriate and promote awareness through training, aiming to raise employee awareness and prevent bid-rigging, cartels, and similar activities.

Our Group positions international legal compliance as the foundation of our corporate activities and recognizes complying with regulations related to economic sanctions and export controls as an important responsibility. When starting a transaction, our internal expert committee conducts reviews based on relevant laws regarding the target country/region and business partners, and appropriately determines whether the transaction can proceed.
Going forward, to accurately respond to the rapidly changing international regulatory environment, we will strive to maintain and strengthen a flexible and robust compliance system through measures such as enhancing our internal information-sharing framework.

In our Group, to raise awareness of compliance, we conduct e-learning on our Group Code of Conduct as well as training programs by level and by theme. In addition to expanding the scope of e-learning to domestic and overseas Group companies from fiscal year 2024, hierarchical training targets employees of domestic Group companies, and in addition to new employee training, four types of training are provided according to employee position. These training programs not only teach knowledge of compliance, but also incorporate many case studies to encourage each employee to consider compliance as a personal matter.
In addition, we have created message videos from the management of each Group company (Tone at the Top), in which top management themselves emphasize the importance of compliance to employees, thereby promoting the awareness of compliance among all executives and employees of our Group.

Courses and participation