Contents

Introduction

Management

Special Reports / TCFD

Social (S)Environment (E)Governance (G)Recognition / Assurance

Special Report 1: The Aims of Toppan’s Human Rights Policy | Special Report 2: Sustainable Procurement | Special Report 3: Evolution of Activities Focused on the TCFD | Climate Change Disclosure According to TCFD Recommendations

Special Report 3: Evolution of Activities Focused on the TCFD
Toppan recognizes the scale of climate change’s impact on the Group’s business. We view analyzing climate change risks andopportunities and taking countermeasures to be vital management issues. We announced our support for the recommendationsof the TCFD in 2019, starting scenario analysis in accordance with the recommendations in fiscal 2020 and disclosing related
information in fiscal 2021.
Based on issues identified in fiscal 2020, relevant business divisions also participated in fiscal 2021, stimulating discussions
to enhance the accuracy of analysis and countermeasures. The results have been disclosed in line with the four thematic areas of
the TCFD recommendations. Details can be found on page 30.

About the TCFD
The Task Force on Climate-related Financial Disclosures(TCFD) was established by the Financial Stability Board toenhance disclosure of climate-related information in financial
reporting. Companies are expected to recognize andincorporate climate change risks and opportunities into theirIssues Identified in Fiscal 2020 Scenario
Analysis
1. Expanding scope

Fiscal 2021 Scenario Analysis andDisclosure

management strategies, and disclosed information isreferenced for ESG investing.

Business divisions participated in our TCFD Working Group to ensure a scenario analysis that reflects the characteristics of the business.

Climate change risks in overseas business need to be monitored
as we expand globally.

Working Groupmembers

Corporate divisions: (Opportunities) Corporate Planning; (Risks) Ecology Center,
Manufacturing Management
Business divisions: Information & Communication, Living & Industry, Electronics, DX Design

2. Enhancing content of opportunities
・Enhance content based on characteristics of the business andlink to the Medium Term Plan in financial impact assessment
・Raise the accuracy of financial impact assessment andScenario
Analysis

Scopecountermeasures

Business scope: Expanded to overseas operations managed by business divisions
Scenario definitions: 1.5℃ and 4℃ scenariosConsideration in line with scenario analysis frame

MethodIdentify

1. significant risks/
opportunities

Disclosure

2. Definescenarios

Assess

3. financial
impactDefine4. countermeasures● Organize according to the TCFD’s four thematic areas—governance, strategy, risk management, metrics and targets● Link opportunity themes to DX and SX themes in alignment with the Medium Term Plan and business targets forSDGs

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TOPPAN Sustainability Report 2022

Contents

Introduction

Special Reports / TCFDManagement

Social (S)Environment (E)Governance (G)Recognition / Assurance

Special Report 1: The Aims of Toppan’s Human Rights Policy | Special Report 2: Sustainable Procurement | Special Report 3: Evolution of Activities Focused on the TCFD | Climate Change Disclosure According to TCFD Recommendations

Interview

Interview

Taking a fresh look at Toppan from multiple
perspectives

More precise analysis and assessment
With the IPCC’s Sixth Assessment Report stating there is noTo address the challenge of giving shape to businessdoubt that global warming is human-induced, and agreement

opportunities, we performed scenario analysis again in fiscal

being reached on the 1.5℃ target at COP26, we reviewed the2021 with a working team including staff from businessdivisions. Our discussions on the impact climate change will
have on the business environment went beyond the boundariesof business divisions. We identified opportunities to exploit

1.5℃ and 4℃ scenarios for climate change risks to reflect theGaku Satomi

acceleration of mitigation initiatives. For transition risks, weJunior Manager
Corporate Strategy
Department
Corporate Planning Divisionapplied a new scenario to reassess and calculate carbon
pricing and other financial impacts under the expanded scope.

Hiroshi Asakawa

General Manager
Global Environmental Policy
Department
Ecology CenterManufacturing Management
Division

Toppan’s strengths, organizing them systematically and linking

BCP and facilities personnel joined us for assessment ofthem to the Medium Term Plan. It was a chance to reassess

physical risks. We were able to conduct a more precise

Toppan’s distinctive characteristics and the challenges we need to address from multiple

financial impact assessment than last year by reviewing sites

perspectives. Going forward, we will enhance collaboration across the Group, reexaminethat could be damaged and going through potential damage point by point. We will

analyses as the environment changes, and work to realize opportunities.

continue to work to enhance resilience to climate change risks.

Takeaways from Scenario Analysis Discussions

Environmentally Friendly Products andServices

In the words of leaders from business divisions who joined the working group in fiscal 2021.

Information & Communication

The most challenging part of scenario analysis was plotting thebusiness risks, which are extensions of the present, against theopportunities that are part of the strategy to address the risks.

Driving commitment to targetsbased on forecasts for the future

Yoshiyuki Nishikawa

ManagerBusiness Transformation Office andSDGs UNIT Promotion Project
Business Strategy Department
Information & Communication Division(Current position: Manager, GroupManagement Strategy Office)

Our business division will have to continue extensive
discussions on this.
We had to rely on qualitative information for forecasts,
and it was difficult to assess their appropriateness because it
depended largely on each person’s own sensitivity to changes
in the environment. The challenge now will be to set
quantitative targets based on the forecasts and drive

Our division is working to enhance ethical sales
promotion offerings. We plan, design, and pitch sales
promotion tools based on Toppan’s guidelines forenvironmentally friendly products, which cover material
selection, printing, processing, packing, use, disposal,and recycling. We also hold supplier workshops toinform subcontractors of the guidelines.
We are advancing a range of activities for a circular
economy with other Toppan divisions, customers, andour external partners.

commitment to them, so we need to keep working on it.

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TOPPAN Sustainability Report 2022

ContentsIntroduction

Management

Special Reports / TCFD

Social (S)Environment (E)Governance (G)Recognition / Assurance

Special Report 1: The Aims of Toppan’s Human Rights Policy | Special Report 2: Sustainable Procurement | Special Report 3: Evolution of Activities Focused on the TCFD | Climate Change Disclosure According to TCFD Recommendations

The fundamental policy for the Living & Industry business

Living & Industry

going forward is to provide solutions to social issues throughsustainable transformation from a global perspective. The

Addressing the TCFD alignswith the key theme for ourbusiness

Kenji Shinohara

General ManagerSales Planning 1
Business Strategy Department
Living & Industry Division

TCFD advocates disclosure of business risks and opportunities
brought by global warming and other aspects of climatechange. Addressing this aligns with the key theme for ourbusiness. The business opportunities also line up with theMedium Term Plan. This process has allowed us to understandthe importance of the TCFD in relation to our business.
Our packaging business is divided into various types, suchas flexible packaging, folding cartons, and rigid plastics. Theopportunities and risks of each business line can sometimes
conflict with respect to TCFD-related impacts, so the process
has reemphasized the importance of optimizing business mix

Environmentally Friendly Products andServices
Demand for more readily recyclable mono-material
packaging is growing globally to drive a circular
economy.* Toppan’s GL BARRIER film delivers worldclass moisture barrier performance. We have a lineup
using various materials and will accelerate developmentof mono-material barrier packaging for all kinds ofproducts and contents.
*Many types of film packaging consist of multiple materials that
fulfill different roles. Mono-material packaging is composed offilm of a single material, enabling significant improvement inrecyclability by eliminating the need for separation.

and portfolio when looking at packaging as a whole.

Discussing the effects of rising temperatures furthered myElectronics

understanding of the impact of climate change and promptedme to take ownership with a more focused sense of urgency.

Reassessing strengths andweaknesses within the context
of climate change

Ryota Hosoya

Manager
Administration
Business Strategy Department
Electronics Division

Assessing our activities in the context of climate change
allowed me to reconfirm the strengths and weaknesses of eachbusiness.
In identifying opportunities and making quantitative
assessments, it was difficult to pinpoint the extent of theimpact of climate change. It was also challenging to estimate

Environmentally Friendly Products andServices
e-Platch is a solution that uses ZETA networks and IoTtechnologies to monitor environmental conservation
activities at factories. It can support efforts targetingzero emissions through services such as visualization ofpower consumption, which is in development.

the impact for individual electronic components, which are thefocus of what we supply.
We need to continue efforts to clarify risks andopportunities and conduct quantitative assessment taking into
account factors other than climate change. I also think weshould always be mindful of the impact our activities have onsociety and reflect that perspective in the products andsolutions we create.

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TOPPAN Sustainability Report 2022