CSR (Corporate Social Responsibility) Policy

Standard Engineering is committed to fulfilling its role as a member of society (Corporate Citizenship). We recognize that the foundation of our business activities is strengthened by contributing to the prosperity of the world economy and society; to the healthy preservation of the global environment; and to the sustainable development of society and the global environment. To meet this commitment, Standard Engineering hereby establishes the following principles, which shall be applied, throughout its operations.

 We shall conduct our business with a full understanding of the importance of quality, safety, and the environment.

 We shall provide our social contributions using the characteristics of the Standard Engineering Group.

 We shall comply with legal requirements inside and outside the country, and conduct our business in a fair and       sincere manner following a proper governance system.

 We shall disclose necessary information to our stakeholders in a timely and appropriate manner.

 We shall endeavor to maintain and further improve fair human resource management to develop people‘s ability       and vitality based on mutual trust and responsibility.

 We shall promote the awareness of CSR and further develop our CSR activities reflecting the voices of stakeholders.

  HEALTH, SAFETY AND ENVIRONMENT (HSE) CORPORATE POLICY

Standard Engineering’s corporate management is committed to providing a safe and healthful place of work throughout all of Standard Engineering’s facilities，offices and work sites and to making every effort towards eliminating or minimizing any environmentally adverse effects of Standard Engineering’s operations.

Thus，Standard Engineering will，in all of its operations and at all locations where work is being carried out under its control，promote the highest standards in health, safety, and environmental preservation and protection by establishing, implementing and maintaining an HSE Management System that will include such elements as targets and standards for HSE performance，HSE education programs and motivational incentives，and assessments and accountability for achievement of those targets and standards.

To meet this commitment，Standard Engineering in carrying out its operations, will in all cases, abide by the following principles:

 Provide plants that meet the highest standards for safety and operation, and place the minimum burden on the        environment.

 Place the highest priority on the health and safety of personnel and on the preservation and protection of the        environment.

 Plan and perform work in accordance with the HSE Management System.

 Hold employees，including those of Vendors and Subcontractors, responsible for their own HSE and that of their        colleagues.

 Ensure that personnel are trained in HSE.

 Review，monitor and measure HSE performance for continual improvement.

Provide full cooperation to clients，statutory authorities and local communities.

This policy shall be posted at all locations under Standard Engineering control, and all those engaged in work for Standard Engineering or present at those locations shall be aware of its contents and shall commit themselves to its fullest implementation.

  Safety and Health Policy

Standard Engineering Corporation places the highest priority on maintaining the safety and good health of all the personnel participating in or affected by Standard Engineering’s operations and preventing property losses as Standard Engineering serves its clients, industry and the world community.

In the fulfillment of the above-stated policy, Standard Engineering hereby declares:

Standard Engineering Corporation ensures that this policy, related directives and procedures are thoroughly communicated and implemented throughout the corporation and subcontractors engaged in Standard Engineering’s projects.

  Quality Policy

It is Standard Engineering’s purpose that, in realizing our Clients‘ projects, we will fulfill our Clients’ needs in the optimal way by fully applying our knowledge and experience and by incorporating state-of-the-art technology.

In order to achieve this purpose, we affirm the following quality policy.

 We will deliver plants and services fully complying with agreed requirements as well as statutory and regulatory        requirements, thus achieving our Clients’ satisfaction and confirming their trust in Standard Engineering.

 We will continually improve the effectiveness of our quality management system.

  Environmental Policy

Standard Engineering is committed to achieving environmental excellence in both, its corporate operations and the services it renders its clients, as a reputable and professional engineering contractor. To meet this commitment, Standard Engineering hereby establishes the following principles,which shall be applied, throughout its operations.

  We shall endeavor to preserve the natural environment through the prevention of pollution and the conservation         of energy and natural resources.

 We shall provide our clients with technical solutions that conserve energy and natural resources and reduce         pollution and other adverse environmental impacts.

  We shall fully comply with both, environmental laws and regulations and the environmental requirements of our         clients.

  We shall reduce the production of waste through measures that emphasize reuse, recycling.

  We shall apply the following specific principles to the execution of our EPC projects

To ensure the thorough, consistent and effective implementation of this policy throughout its operations, Standard Engineering shall establish, maintain and continually improve a corporate Environmental Management System in conformance with ISO 14001.

  Social Contribution Policy

“Quality, Safety, and the Environment,” “Social Contribution,” “Employee Satisfaction,” “Information Disclosure,” “Compliance,” and “Governance” are six the fundamental components which guide Standard Engineering’s CSR Policy.

Furthermore, Standard Engineering has established four target areas for our Social Contribution Policy, in line with the unique capabilities of Standard Engineering Group.

  IR Policy

Disclosure Standards

Standard Engineering discloses information accurately in a fair and timely manner in accordance with the “Disclosure of Corporate Affairs and Other Related Matters” chapter of the Financial Instruments and Exchange Act, and with the “Timely Disclosure Rules for Issuers of Listed Negotiable Securities or Valuable Instruments” (hereafter “Timely Disclosure Rules”) laid out by the Tokyo Stock Exchange. In addition, regarding the content of financial results briefings and other information not under the jurisdiction of the Timely Disclosure Rules, Standard Engineering has a policy of disclosing appropriate information to investors upon request, in a fair and thorough manner, to the best of our ability.

Methods of Information Disclosure

Information falling under the jurisdiction of the Timely Disclosure Rules will be disclosed, as specified in the rules, over the Tokyo Stock Exchange information disclosure system (TDnet), following an explanation to the Tokyo Stock Exchange. Information that does not fall under the jurisdiction of the Timely Disclosure Rules shall be disclosed at an appropriate time, by an appropriate method, in an accurate and fair manner, with due consideration for its dissemination to general investors. Therefore, we request that investors who wish to confirm information disclosed by Standard Engineering should refer to the information posted on the company website, TDnet, and the like.

Future Prospects

In addition to the performance forecast submitted by Standard Engineering to the Tokyo Stock Exchange, Standard Engineering may also provide guidance on its future prospects to investors and securities analysts, so they can publish their own forecasts. In addition, lectures, Q&A sessions, documents published by the company, information posted on the company website, etc. may include information about current plans, future prospects and strategies. In either case, any information which is not recorded historical fact is a forecast for the future based on set preconditions and the judgment of the company management based on the information available at the time the prediction was made. Therefore, when investigating Standard Engineering’s performance, business value, etc. we request that analysts and investors refrain from relying solely on future forecasts and forward-looking statements.

Since actual business performance depends on numerous different factors, in some cases, actual results may differ significantly from predicted results. Factors with a major influence on actual business performance include (1) economic circumstances surrounding the company in the domestic and worldwide market, (2) domestic and worldwide energy demand, (3) currency exchange rates, and others. Factors affecting business performance are not limited to the three items mentioned above.

Regarding the Period of Silence

Before financial results briefings, Standard Engineering establishes a “period of silence,” during which we refrain from making comments or answering questions regarding financial results, so as to avoid information disclosures which could influence our stock prices while we are preparing the data to be presented at the financial results briefing. However, in the event that actual results deviate significantly from expected results during the “period of silence,” we will disclose the information appropriately via a press release.

  Basic Policy for Standard Engineering Group Information Security

Information and information systems are important assets, and information security is essential in maintaining the trust of clients, business partners, and other parties and performing our social responsibilities. Bearing this in mind, the Standard Engineering Group will establish a basic policy for Standard Engineering Group information security as follows, and Standard Engineering Corporation and other member companies will make a group effort to implement it.

  Observe applicable laws, regulations, and standards relevant to information security.

  Use information assets effectively within the required limits of business activities.

 Take reasonable safety measures and necessary corrective action to prevent unlawful computer access, loss of         information, computer hacking, alteration of database, information leakage, etc.

 Set up an organization for promoting information security with the aim of making continued efforts in our         approach to information security and its review, improvement, and enhancement.

  Provide corporate officers and employees with necessary education and strengthened awareness with respect to         information security.