CSR REPORT 2007

CSR REPORT 2007
Report on Corporate Social
Responsibility Activities

As a mainstay of information and culture
Toppan has contributed to the development of information andculture through printing since its foundation in 1900.

Toppan is defined “as a mainstay of information and culture”
in its Corporate Philosophy. The starting point for Toppan is to use its businesses
to contribute to the building of a society rich with opportunities
for fulfilling lifestyles for people of all generations.

■■■Toppan expresses its commitment to communicate with society in the three primarycolors of printing: Blue for Sincerity, Red for Enthusiasm,
and Yellow for Creativity.

Toppan takes a sincere, enthusiastic, and creative approachin communication to fulfill the expectations of all of its stakeholders,from its customers and employees to its shareholders/investors,
business partners, communities, and society as a whole.

Contents

To the Readers

Executive Message

2

This CSR Report 2007 is a communication tool used to disclose information
to stakeholders and solicit their comments. The report was prepared with thefollowing points in mind.

Group Business Outline

4

OReadability
Environmental Reporting Guidelines 2001—With a Focus on Stakeholders,a set of guidelines by the Ministry of Economy, Trade and Industry, wasused as a reference. Most readers are assumed to have an interest in CSR.
Toppan has taken special care to organize the materials, layouts, color
schemes, typefaces, and font sizes in this report in ways that will help
readers understand the activities of Toppan as clearly as possible.
OCompleteness and Materiality
The contents of this report were strictly chosen in consideration of thebusinesses of the Toppan Group based on the following guidelines anditems in the questionnaire on socially responsible investment (SRI). The“Special Report” section summarizes the most important issues.
•Environmental Reporting Guidelines (fiscal 2003 version) from the
Ministry of the Environment•Environmental Performance Indicators for Businesses (fiscal 2002 version)from the Ministry of the Environment•Environmental Accounting Guidelines (2005 version) from the Ministry of
the Environment•Environmental Reporting Guidelines 2001—With Focus on Stakeholders,from the Ministry of Economy, Trade and Industry•Sustainability Reporting Guidelines 2002 from the Global Reporting
Initiative (GRI)
OReliability
KPMG AZSA Sustainability Co., Ltd. has provided annual independent
reviews of Toppan reports on the environmental and social responsibility,
starting with the 2001 report. As a testament to thereliability of the environmental information described inthis report, Toppan is authorized to attach the following
mark. This means that the report meets the standards forenvironmental report assurance and registration established by theJapanese Association of Assurance Organizations for Environmental
Information (http://www.j-aoei.org/). Starting from the 2004 report,
Toppan has received the opinions and advice of key figures in the CSR
field as guidance for producing its CSR reports. In preparing the CSR
Report 2007, Toppan consulted for the third year in a row with Mr.
Yoshiki Midorikawa, co-chair of The Valdez Society and director of theGreen Consumer Research Group, to seek his opinions.
URL for CSR Report: http://www.toppan.co.jp/english/corporate/csr/index.html

Scope of this Report
In principle, this report is concerned with the social and environmental
activities of Toppan Printing Co., Ltd. and Group entities that have been
consolidated for accounting purposes. This report mainly covers activities
during fiscal 2006 (April 2006–March 2007) but also includes supplementary
information on other periods. Most of the information on personnel applies
to personnel within Toppan Printing Co., Ltd., the parent company. The
scope of environmental performance data and environmental accounting has
been decided based on the importance of environmental conservation
among its subsidiaries (➞P.5). The Environmental Management System (EMS)
encompasses 63 domestic sites and nine overseas sites.

Highlights 2006–2007
Special Report 1: Information Security

8Special Report 2: Universal Design10

Stakeholder Dialogue

14

CSR Activity Topics

20

CSR Management
Toppan’s Social Responsibility

24

Review of CSR Activities and New Initiatives

28

Corporate Governance

30

Compliance34

CSR Review Meeting with Stakeholders

38

Social Report
For Customers

40

With Business Partners

44

With Communities

46

With Employees

50With Shareholders and Investors

58

Environmental Report
Overview of Environmental Activities

60

Overview of Results for Fiscal 2006 andFuture Environmental Targets

62

Environmental Management

66

Environmental Conservation Activities

72

Environmentally-friendly Products andEnvironment-related Business

76

Environmental Data

80

Conduct Guidelines and Information
Management Policy

85

Independent Review and Third-party Opinion
Independent Review

86

Third-party Opinion

87

Company Reaction to the Independent Review andThird-party Opinion
Global Reporting Initiative (GRI) Content Index

88
89*The Information and Communication Division was formed through a mergerof the Securities Printing Division and the Commercial Printing Division on
April 1, 2007.

Terms Used in this Report
OCSR: Corporate social responsibility
OStakeholder: A person (or interested party) who has a direct or indirect
relationship with the corporation, such as a customer, employee,shareholder/investor, or business partner. A community and a society canalso be stakeholders.
OStakeholder dialogue: Dialogue and exchange of views with stakeholders
OCorporate governance: Framework for the governance of corporate
activities
OCompliance: Adherence to laws, regulations, and corporate ethics
OPDCA: A sequence of four procedures—Plan, Do, Check, and Act

Publication Dates
Published in November 2007. Toppan plans to publish the next report inNovember 2008.

Inquiries on Content and Contact Information
CSR Promotion Section*, Legal Affairs Division, Toppan Printing Co., Ltd.
(Tokyo, Japan)*A new section in charge of CSR promotion, formed on October 1, 2007
Email: compliance@toppan.co.jp

TOPPAN CSR REPORT 2007

1

Contributing to a Fulfilling Lifestyle
The Toppan Group continues to serve as an essential and trustworthy corporate citizen
by fulfilling its social responsibilities in its businesses and operations.

Toppan’s Social Mission
Just as the steam engine was once the driver of the industrial revolution, printing has been a driving force behindcivilization and culture since Gutenberg’s invention of
printing technology about 560 years ago. Printing has
served as an important medium to express abstract information and human feelings widely throughout societies
around the world. Progress in printing technologies has
exponentially increased the speed of information transmission and now allows many people to share the same
information at the same time. It is no exaggeration to saythat printing makes up the richness of culture.
The Toppan Group was founded in 1900 by a group of
printing engineers from the printing bureau of the former
Finance Ministry who wished to bring the benefits ofprinting technology to society. Since its foundation,
Toppan has worked in partnership with customers, shareholders, business partners, local communities, and stakeholders in every field to contribute to the development of
information and culture with printing-based businesses.
The development of information technology epitomized
by digitalization and the birth of various new digital media
have substantially changed the methods used to express
and transmit information in print. What has not changedis the social role played by printing.

The social mission of the Toppan Group of today is toconvey information, foster culture, and contribute to fulfilling lifestyles.

To be a Trustworthy and Respected Corporation
I am always telling people at the Company, “Let’s build up
a trustworthy, respected, and strong company together.”This ideal follows from recognition that Toppan must win
the perpetual esteem of the public and maintain its role as
an essential part of society. To this end, Toppan must confront social and environmental tasks in a balanced manner while it pursues its economic goals. Social and culturalcontribution, environmental conservation, and respect forhuman rights are crucial.
I believe that a company’s corporate activities shouldbe piloted by a company’s approach to corporate social
responsibilities (CSR). At Toppan, this means the realization of the Corporate Structure that embodies the values
and codes we hold important.
Through business operations of the Toppan Group, all
the people working in the Group must understand their
responsibilities to society and to stakeholders, and work
to fulfill those responsibilities in their daily work. These
efforts will help Toppan become a strong company that istrusted and respected by society.

The Priority Themes ofToppan’s CSR
In 2000, the centennial anniversaryof our founding, we established
TOPPAN VISION 21 as our corporate
vision and as the foundation of all ofour business activities for the 21st
century. We base our efforts to promote CSR on a Corporate Philosophy, a Corporate Creed, and a set of
Conduct Guidelines. The Corporate
Philosophy forms an overall framework for the Corporate Structure, theCorporate Creed defines our standards for corporate activities, and the2

TOPPAN CSR REPORT 2007

Conduct Guidelines provide rules of behavior based on
our corporate ethics and our spirit of compliance withlaws and regulations. We have formulated six priority
themes to guide us as we develop our three primaryareas: the economy, society, and the environment.
Descriptions of these themes follow.
OCorporate Governance: We will perform our management activities rapidly and efficiently with a robust commitment to forming clear managerial strategies,
strengthening our supervisory and auditing capabilities
in corporate management, and improving the transparency of our managerial activities.
OCompliance: We will conduct our corporate activities instrict observance of corporate ethics and all applicablelaws and regulations. All employees will follow our corporate Conduct Guidelines with an unwavering sense of
ethics and morality.
OImproving Customer Satisfaction: We will strive to see
things from the customer’s perspective. Through ourwork with knowledge and technology, we will devote
ourselves to the creation of products that bind us to ourcustomers in a relationship of trust based on responsibility, passion, and skill.
ORespecting and Leveraging Human Assets: Through ourstrict commitment to human asset development andrespect for individuals, we will foster employees that
continue to enhance their abilities and meet their fullpotential. The people within the Toppan Group will
share the enjoyment of their work within a corporate
atmosphere that is gratifying and rewarding to inhabit.
OActivities for Society and Culture: As a leader in theinformation communication industry, we will develop
activities to promote social and cultural progress. We
will also work to create a rich cultural environment in
partnership with local communities.
OCommitment to the Environment: Under the initiatives
set forth in Toppan’s Declaration on the Global
Environment (1992), we will continue to alleviate theenvironmental burden of our operating activities by
proposing, developing, and providing environmentallyfriendly products and services that coexist in harmony
with our irreplaceable global environment.

Looking Back on the Last Year
Toppan resolved to participate in the United Nations Global
Compact at its board meeting of September 2006. Since
then, we have pledged our support for the United Nations
Global Compact, within and outside of the Company, by
introducing the basic tenets of the Compact in our business management and performing CSR activities to fulfill
our social responsibilities from a global perspective.
Toppan was elected as one of the Global 100 Most
Sustainable Corporations in the World in February 2007. It
also had the distinction of winning second prize in thenonfinancial industry category at the Key Firm of IntegrityAward in Japan. On the environmental front, however, wehave not achieved our targeted reduction of CO2 emission, a major cause of global warming. We are keenly
aware of the need to renew our efforts for various social
initiatives as well.
Based on self-examination, Toppan will continue its workand endeavors to accomplish higher goals in the future.

On the Publication of this Report
In the special section for this CSR report, we report our
CSR activities in connection with our core businesses in
the information communication industry.
We hope that many stakeholders will come to understand and appreciate the activities of the Toppan Groupby reading this report.
I believe that ongoing dialogue with stakeholders isessential for CSR activities. As a starting point, we will beemphasizing information disclosure. Please let us know
your candid opinions.
The Toppan Group will continue its work as an essential and trustworthy corporate citizen to help realize asociety that can provide rich and fulfilling lifestyles. We
hope to benefit from your continued support and guidance in the future.
August 2007
Naoki Adachi
President & CEO
Toppan Printing Co., Ltd.

TOPPAN CSR REPORT 20073

Group Business Outline
Toppan has developed its activities through the integrated strength of the Group in five fields of business:
Information & Networks, Living Environment, Electronics, Personal Service, and Next-generation Products.
Toppan’s activities in all of these fields have been expanded with printing technology at the core.

Group Profile

Corporate Profile
Corporate nameToppan Printing Co., Ltd.

Head office

1, Kanda Izumi-cho, Chiyoda-ku, Tokyo 101-0024 Japan
Phone +81-3-3835-5111

Established

January 17, 1900

President & CEO

Naoki Adachi

Number of employees(Nonconsolidated)

10,899 (as of the end of March 2007)

Number of employees(Consolidated)

36,757 (as of the end of March 2007)

Capital (Nonconsolidated)

104.9 billion yen

The Toppan Group comprises Toppan Printing
Co., Ltd. and 171 related companies (150subsidiaries and 21 affiliates) engaged inmanifold businesses in three main fields:
Information & Networks, Living Environment,
and Electronics.
On the opposite page you will find an
outline of the positioning of Toppan and its
related companies in these fields.

Business Fields
IInformation & Networks
Providing solutions that increase the value of
information and effectively deliver information
for clients who require smooth communication

ISecurities and Cards

IPersonal Service

ICommercial Printing

IPublications Printing

ILiving Environment

Providing innovative information services anddevices to consumers with Toppan’s own brand to
mediate the links between people and goods

Providing optimal products and services
for living in areas such as medicine,
food, and housing, to help create
fulfilling lifestyles globally

Vibrant
Knowledge
andTechnology

IMapion, Internet-based map
information service (in Japanese)

IPackaging

IIndustrial Materials

IElectronics
Working with leading-edge technologies to provide
electronic components with strong potential to be adopted
as de facto standards in the fields of semiconductors anddisplays

IElectronics

4

TOPPAN CSR REPORT 2007

IOptronics

INext-generation Products
Providing high-performance industrial materials with links to
the next generation by developing fields of business withgrowth potential

IHydrogen sensor

Group Business Outline

Toppan Group Structure
Customers

Living Environment
Envir
24%
ElectrElectronics 21%

Manufacturing andSales Companies
Toppan Forms Co., Ltd.
3 other companies∗Tosho Printing Co., Ltd.
∗TMP Co., Ltd.
Toppan Printing Co. (America), Inc.
(USA)
Toppan Printing Co., (H.K.) Ltd.
(Hong Kong, China)
Toppan Printing Co., (Shenzhen) Ltd.
(China)Toppan Printing Co., (Shanghai) Ltd.
(China)4 other companies

Manufacturing Companies
Toppan Plastic Co., Ltd.
Toppan Kansai Packs Co., Ltd.
Toppan Saga Yoki Co., Ltd.
Mikkabi Toppan Printing Co., Ltd.
11 other companies
Tama Processing Co., Ltd.
2 other companies

Manufacturing andSales Companies
Toppan Label Co., Ltd.
Toppan Containers Co., Ltd.
Tamapoly Co., Ltd.
Toppan Prosprint Co., Ltd.
∗Toyo Ink Mfg. Co., Ltd.
2 other companies
P. T. Toppan Printing Indonesia(Indonesia)
Toppan Interamerica Inc. (USA)
6 other companies

Manufacturing Companies
Niigata Toppan Printing Co., Ltd.
Toppan Shiga Seimitsu Co., Ltd.
5 other companies

Manufacturing andSales Companies
NEC Toppan Circuit Solutions, Inc.
Toppan CFI (Taiwan) Co., Ltd.
Toppan Optical Products, Inc. (USA)Toppan Photomasks, Inc. (USA)
13 other companies∗Advanced Mask Technology Center
GmbH & Co. KG (Germany)
1 other company

Toppan Printing Co., Ltd. (Manufacturing and sales company)

Information & Networks 55%

Manufacturing Companies
Toppan Display Co., Ltd.
Toppan Graphic Co., Ltd.
Toppan Graphic Communications
Co., Ltd.
Toppan Seihon Co., Ltd.
16 other companies∗Hino Offset Printing Co., Ltd.
2 other companies
Toppan Forms Tokai Co., Ltd.
10 other companies
T.F. Company, Ltd. (Hong Kong, China)
9 other companies∗Data Products Toppan Forms Ltd.
(Thailand)
6 other companies

Sales Companies
froebel-kan co., ltd.
Total Media Development InstituteCo., Ltd.
Toppan Travel Service Corp.
Toppan Multisoft Ltd.
∗Tokyo Shoseki Co., Ltd.
23 other companies∗Toppan M&I Co., Ltd.
3 other companies
Toppan Printing Co., (Australia) Pty.
Ltd. (Australia)
4 other companies

Sales Companies
Toppan Cosmo, Inc.
5 other companies

Sales Companies
Toppan Electronics (Taiwan) Co., Ltd.
3 other companies

Products
Raw materials
Service
Notes:• No symbol: subsidiary—150 companies ∗: affiliated companies—21 companies (as of the end of March 2007)• Toppan Group’s business activities are usually divided into five fields. Here, however, they are divided into three fields on the basis of the current
sizes of the businesses and other factors.
• The composition ratios given under each business field are percentages of overall sales contributed. (The net sales by business field are shown on P.6.)• Among Toppan’s subsidiaries, Toppan Forms Co., Ltd. is listed on the first section of the Tokyo Stock Exchange.
■ Scope of this Report• In principle, this report is concerned with the social and environmental activities of Toppan Printing Co., Ltd. and Group entities that have been
consolidated for accounting purposes.
• This report mainly covers activities during fiscal 2006 (April 2006–March 2007) but also includes supplementary information on other periods.
• Most of the information on personnel applies to personnel within Toppan Printing Co., Ltd., the parent company.
• The scope of environmental performance data and environmental accounting has been decided based on the importance of environmental
conservation among Toppan Printing Co., Ltd. and its subsidiaries.
• The EMS encompasses 63 domestic sites and nine overseas sites.

TOPPAN CSR REPORT 20075

Outline of Consolidated
Operating Performance
The Japanese economy recovered steadily
in 2006, buoyed by improved corporate
earnings and growth in capital investment. The printing industry, however,has contended with severe price competition arising from the elevated costs ofmaterials caused mainly by the rising
price of crude oil.
Within this environment, the Toppan
Group has striven to expand its businessand strengthen its management bases

cooperatively within the Group by taking
advantage of the marketing and technical capabilities acquired mainly in printing. To expand its business fields further,
the Group has renewed its core strategies
in the Business Fields established under
TOPPAN VISION 21, the corporate vision
for the 21st century. Toppan has increased
its production capacity and accelerated
technological development in markets
with high growth potential, such as electronics and security. Management has
also been innovating the Company’s
profit structure and cutting costs further.

Consequently, consolidated net sales
increased by 0.6% from the previous
year to 1,557.8 billion yen in fiscal 2006.
Consolidated operating income decreased
by 23.8% to 69.3 billion yen. Consolidated net income, meanwhile, stoodat 26.0 billion yen, up by 72.1% from the15.1 billon yen earned last year.

Net Sales

Operating Income

Net Income

1,800■Consolidated ■Nonconsolidated (Billion yen)100

1,548.2 1,557.8
1,500

1,251.6 1,297.3

1,413.5■Consolidated ■Nonconsolidated (Billion yen)
91.0
86.9

80

69.3

911.7

914.6

952.8

947.1

948.7

60
40

600

39.9
31.0

30.3

30.0

2002

2003

2004

2006
(Fiscal year)

2005

Net Sales by Business Field(Consolidated)

29.1

20

26.0
21.5

18.9

21.9

20.2

15.1

10

2002

2003

2004

2005

2006
(Fiscal year)

0

2002

2003

2004

2005

2006
(Fiscal year)

Net Sales by Region (Consolidated)(Billion yen)

Electronics
331.4

0

40.5
31.2

21.4

38.0

20

300
0

30

51.1

■Consolidated ■Nonconsolidated (Billion yen)

40

61.9

1,200
900

50

Other regions 61.7

(Billion yen)

Asia excluding
Japan 106.2

Information &Networks
860.1

LivingEnvironment
366.2

Japan 1,389.8

Number of Regular Employees

Note: In “Net Sales by Business Field (Consolidated),” sales are divided into three businessfields based on the sizes of the businesses
and other factors.

Number of Employees by Business Field (Consolidated)(Employees)

Fiscal 2002 Fiscal 2003 Fiscal 2004 Fiscal 2005 Fiscal 2006

6

(Employees)

Consolidated

33,292

32,17832,72435,95436,757

Information &Networks

LivingEnvironment

Electronics

Company-wide
Position

Nonconsolidated

12,053

11,512

10,548

10,582

10,89920,009

8,311

7,750

687

TOPPAN CSR REPORT 2007

Group Business Outline

Key Financial Data (Consolidated)
Fiscal 2002
Net sales (million yen)

Fiscal 2003

Fiscal 2004

Fiscal 2005

Fiscal 2006

1,251,605

1,297,357

1,413,580

1,548,208

1,557,876

Operating income (million yen)

51,16861,95686,93891,08569,376

Net income (million yen)

29,12531,22940,574

15,14826,067

Total assets (million yen)

1,317,454

1,461,305

1,483,477

1,727,636

1,837,719

Net assets (million yen)

715,438

740,481768,245803,678

918,002

Interest bearing debt (million yen)

136,294239,209

205,008

304,736

359,631

Capital expenditures (million yen)

83,312

85,10886,625

119,221

133,722

R&D expenses (million yen)

20,252

21,302

22,25527,59329,132

Corporate, residential & enterprise taxes (million yen)

24,872

24,91822,15434,07332,354

Share price—high (yen)

1,437

1,396

1,380

1,648

1,645

Share price—low (yen)

732

690

1,002

1,050

1,161

Net income per share (Basic) (yen)

42.29

45.57

60.09

22.13

39.58

Net income per share (Diluted) (yen)

41.77

44.86

59.94

22.02

39.40

Shareholders’ equity per share (yen)1,053.22

1,104.62

1,154.21

1,216.04

1,222.27

Dividends per share (yen)

16.00

17.00

19.00

20.00

20.00

Return on assets (ROA; %)

2.2

2.2

2.8

0.9

1.5

Return on equity (ROE; %)

4.1

4.3

5.4

1.9

3.2

Cash and cash equivalents at end of period (million yen)

107,214202,149

168,804

206,974

240,596

Number of employees

33,292

32,17832,72435,95436,757

Notes:
1. Net sales do not include consumption taxes.
2. The number of employees is the number of regular employees.
3. Toppan has applied the “Accounting standards related to the impairmentof fixed assets” and the “Guidelines on accounting standards related tothe impairment of fixed assets” since fiscal 2004.

Capital Expenditures

Total Assets & Return on Assets (ROA)(Billion yen)

150

133.7

90

(Billion yen)
2,000

1,500
83.3

85.1

86.6

2.2

3.0

30

34.0
24.8

32.3

24.9
22.1

2.0

20

1.0

10

0
2006
(Fiscal year)

0

1.5

60

0.9
500

30

2002

2003

2004

2005

2006
(Fiscal year)

R&D Expenses(Billion yen)

27.5

28
20.2

21.3

0

2002

2003

2004

2005

2002

2003

2004

2005

2006
(Fiscal year)

Net Assets & Return on Equity (ROE)

35

21

40

2.8

1,000

0

(Billion yen)

1,837.7 4.0

1,461.3 1,483.4
1,317.4
2.2

Corporate, Residential & Enterprise
Taxes

(%)
1,727.6

119.2

120

4. Toppan has calculated the net assets by applying the “Accounting Standard
for Presentation of Net Assets in the Balance Sheet” and the “Guidance on
Accounting Standard for Presentation of Net Assets in the Balance Sheet”
since fiscal 2006.
5. High and low share prices are prices on the first section of the Tokyo Stock
Exchange.

(Billion yen)
1,000

918.0

29.1
800

715.4

740.4

4.1

4.3

22.2

768.2

803.6

6.0
3.2

400

14

8.0

5.4

600

(%)
10.0

4.0

1.9
200

7
0

2002

2003

2004

2005

2006
(Fiscal year)

0

2.0

2002

2003

2004

2005

0
2006
(Fiscal year)

TOPPAN CSR REPORT 2007

7

Special Report 1

Responsibility for Handling High-quality
Information in Large Quantities

Information Security

Households and companies benefit from a staggering array of

There recently seems to be no end to accidents involving
the leakage of personal information. Public concern over
information security has been growing at an unprecedented pace, and the trend is expected to continue.

information services via advanced IT networks in this age of digital
information. Yet in many systems, just a single input error on a
keyboard can leak information stored in PC servers through networks in bulk quantities. In other cases an intruder or insider canaccess and leak sensitive information with dire consequences.
Printing companies in the information communication industry

As entities that handle vast amounts of personal infor-

manage and handle vast amounts of information from their vari-mation on customers, printing companies must be moreous clients every day. Some of the information is highly confiden-

strictly accountable for their information management.

tial. Toppan, for example, handles millions of names and addresses

This is why Toppan assigns great value to information

to print out direct mailing materials for clients such as insurance

security. The rigorous information management incompanies and credit card issuers. In some cases the Company

Toppan is crucial for winning the trust of clients and soci-handles information on the most advanced technologies and theety. Toppan also recognizes that it should take the initia-

newest products produced by competing manufacturers at thetive as the industry leader.

same time. Advertising materials such as flyers may contain sensitive information on products and prices that must be neverpublicly disclosed before the materials are distributed. Toppan
takes charge of the information from its clients under close relationships of mutual trust: No information is ever to be leaked.

Engagement throughout the Company
Information security management resembles flood-control levee
management. Just a small hole bored by an ant can reap serious
damage. Every department and every employee has to take therequired precautions and pay attention at all times.
Toppan has constructed its Company-wide information
security structure under the above-mentioned concept. The
Company’s Personal Information Protection Policy (establishedin 1999), Rules on the Management of Personal Information(1999), and Rules on Information Security Management (2001)
have put Toppan ahead of the rest of the industry. The proper
handling and strict control of information are thoroughly reinforced through various measures from wide-ranging viewpoints.
Toppan shapes its efforts in information management by keeping track of the information-related accidents that occur outsideof the Company. The Company has issued numerous in-house
notifications to plainly comment on these accidents and to callattention to them as lessons for conduct. A popular file-sharing
program called “Winny” has posed a particularly strong risk inJapan, as it can instantly spread the information stored in a PC
such as viruses via the Internet. When a string of Winny-related
Left: Entrance gate secured by a personal authentication system and double
door to restrict entry to authenticated persons only
Right: PC secured by an authentication with employee ID cards (IC cards) torestrict use to authenticated persons only

incidents were reported in 2006, Toppan disseminated notifications
on countermeasures against Winny throughout the entire Company and gained assurance in writing from all of its departmentsthat employees would shun Winny both at work and at home.

Information Security Management:
Toppan’s Mission as the Industry Leader
8

TOPPAN CSR REPORT 2007

ICompany-wide Engagement

IPDCA Cycle to Ensure Security

Management System
Back in March 2000, the Securities Printing Division took the initiative toacquire the Privacy Mark certification for the protection of personal rights.
One by one across the Group, other divisions and Group companies
acquired the same certification. In June 2002, TOPICA service from the Ebusiness Division acquired the Information Security Management System(ISMS) certification, an official guarantee that TOPICA service had established a comprehensive risk management system to properly manage
information and protect confidential matters on an organizational basis.
Toppan Forms Co., Ltd., a Group company, also acquired ISMS certification in February 2003.
Human Resources
Toppan strives to strengthen information security management in order
to uphold respect for human life and dignity. Through the approach of
employee education, a crucial and fundamental activity for this purpose,
the Company distributes Information Security Management Guidebooks
and other materials to all of its employees, including its part-time and temporary staff, for the thorough improvement of awareness on this matter.
Toppan improves information management by asking employees andothers to sign written pledges of confidentiality when necessary and by
installing surveillance cameras where especially sensitive information ishandled. The Company is creating a working environment in which frequent reporting, liaison, and counsel are encouraged.

Risk evaluation,
Introducing global
standards

Internal audit
Corrective
measureRestructuring as a risk
Certification system forpartner companies and the like management system
Preparing
manufacturing
processes andrulebooks

Internal audit

Quality-related accident
eradication policy

Corrective
measureFacilities/Equipment

Countermeasures against Personal Information
Leakage: A Critical Issue

Educationandoperation

Establishingmanagement system

The Company strives to minimize the possibility of information leakage bystrict control of entries and exits from rooms and buildings, access to networks and USB memories, and user authentication for PCs. It has also
introduced a system to monitor the details of the jobs carried out by theemployees authenticated for access.

improvement of PDCA to secure the confidentiality, integrity,
and availability of information assets by identifying all risks anddetermining the required security levels for personal information

There is growing interest in personal information leakage as one

and other forms of data.

of today’s most pressing social problems. To address this critical

Data on new products and data on devices and instruments inissue, Toppan further strengthened its countermeasures to elimi-

the Electronics Field, for example, require confidentiality tonate unauthorized data extraction in fiscal 2006.

restrict access to authenticated persons only. Systems for creat-More specifically, the President & CEO issued a notification to

ing advertising materials such as flyers must be integral, as thereconfirm the establishment of security at each workplace to all

product and price data printed and the methods for handlingmanagerial staff. The Information Security Management

those data must be accurate and intact. Plate-making data andPromotion Committee, meanwhile, issued a notification on the

back-up data must be kept available, as the persons who workurgent need to improve personal information management towith them will need rapid access. Toppan will renew its manage-

the information security managers. There was a call for the com-ment structure to conform with ISO/IEC 27001 requirements

prehensive implementation of top-priority improvement counter-such as the preparation of criteria for risk evaluation, the clarifi-

measures against the unauthorized extraction of confidential

cation of criteria for evaluating the effectiveness of measuresinformation, and control was tightened.

taken, the reporting of operational conditions to senior manage-

The Company consecutively carried out the emergent survey

ment, the reviews specified by senior management, and so on.

of actual conditions regarding personal information management.
The survey revealed the actual conditions of security at each

To be a Trustworthy Corporation

operational site/plant for each top-priority improvement countermeasure (electronic storage media management, etc.). Ongoing

Toppan investigates and supervises operational sites throughout

corrective measures have been taken based on the survey results.

the Group in order to position the reinforced information security management structure as a common view and policy of theUpgrading Information Security: ISO/IEC 27001

Group. On a broader scale, Toppan endeavors to improve security levels on an industry-wide basis and to strengthen the relia-

Toppan intends to adapt the security management measuresbility of the information communication industry by providing

established in the ISO/IEC 27001 Information Security Manage-

the All Japan Federation of Printing Industry Associations withment System (ISMS), the global standard of information security.

various sorts of expertise.

It aims to shift to stricter and more specific security management

As before, Toppan works to completely eliminate personalmeasures while promoting certification acquirement across theinformation leakage accidents through the activities describedCompany. ISO/IEC 27001 requires continuous maintenance andabove.

TOPPAN CSR REPORT 20079

Special Report 2

Toppan’s Ideal for
Universal Design

Universal Design

Universal Design aims for “easy-to-understand” and “easy-to-

Toppan established its original Six Principles on Universal
Design in 2001. It has implemented “a set of activities touse” for everyone, as a progenitor of the barrier-free concept toremove inconvenient obstacles from the lives of the disabled andelderly. The scope of UD is not limited to the creation of goods.
It encompasses urban development and formats for offering

realize products, spaces, environments, service, and com-

information and service with optimal accessibility and utility tomunication methods which are accessible and useful to

as many people as possible, regardless of age, gender, physicalas many people as possible.” Toppan strives not only toability, etc.

create easy-to-see and easy-to-use products as a printing

Toppan, a company in the information communication indus-

company, but also to design information that can be eas-try, submits various proposals from the UD viewpoint for issues

ily understood by recipients as a mainstay of information

related to communication between companies and individuals inand culture. Toppan will press forward with its endeav-

commercial printing, securities/card printing, publications print-

ors in Universal Design (UD).

ing, packaging, and industrial materials. The Company wishes tosatisfy individual end users and direct client companies throughits business activities.
This special section reports the UD initiatives undertaken by
the Information and Communication Division and Packaging
Division, and the UD issues considered when preparing this CSR
report.

ISpecific Items Considered

IToppan’s Six Principles on Universal Design
Toppan has defined UD as “a set of activities to realize products, spaces,
environments, service, and communication methods which are accessible
and useful to as many people as possible.” Based on this definition, theCompany has established a set of six UD principles.
Principle 1

Design products and services that are more responsive to
people with different physical abilities and perceptions.

Principle 2

Facilitate communication using multiple channels forcommunication, including visual, aural, and tactile channels.

Principle 3

Make products easier to use by making them easier tounderstand.

Principle 4Make products that are easier to move, easier to approach,and require less strength (remove the physical burdens).

Principle 5

Design products that are safe to use procedurally,functionally, structurally, materially, and environmentally.

Principle 6

Provide products at a reasonable price and in the amounts
required by society.

IEase of identifying information (easy-to-see visuals, easy-to-read displays, etc.)
IVisceral understanding (with photos, figures, symbols, and the like)
IClarity and understandability of the writing itself
IBrief and short expressions
ILittle possibility of misunderstanding or error
IEase of handling and using
INo dependency on the physical characteristics of the users
IEasy accessibility with less physical burden
IDiversity and substitutability of information media
IReasonable (proper/adequate) price setting
IAbility to provide products in the amounts required by society
IConsideration of design aspects
IUser satisfaction and feeling during use (amusement, joy, etc.)

Universal Design: Deliverable to Everyone, andEasy for Everyone to Understand and Use
10

TOPPAN CSR REPORT 2007

Universal Design of Information To Improve the Sales Materials of Financial Products
Information and Communication Division
Many people use financial products such as insurance, housing

Toppan prepared a test housing loan pamphlet based on thisloans, and products for financial investment to stabilize andchecklist. The test pamphlet won high praise in all of the nine

improve their lives. The details of those financial products, how-

areas (e.g., “easy to read,” “amount of data,” “intention toever, are complicated and difficult to explain to users. Many ofuse”) at a review session to compare it with actual pamphlets inthe brochures and pamphlets are filled with baffling technicaluse. About 50 monitors took part.

terms, disclaimers, and explanations on risk in tiny print, making
them difficult to understand. This can be confusing and troublesome for customers. A new law on financial product transactions

In-house Materials Prepared from the Same
Viewpoint

fully enacted on September 30, 2007 requires understandable
documentation in various advertising materials for financial prod-

Toppan promotes the policy of communicating plainly and pre-ucts. The terminology, presentations, etc. will have to be reviewed

cisely in the in-house manuals of financial institutions. To protectwith great care. This poses a challenge for financial institutions:the consumers of financial products, all of the employees work-

Though page space is limited, they have to communicate theing in the institutions that sell those products, including part-time

advantages of their products and corporate brands while explain-

and temporary staff, should properly understand and be able toing product details in understandable ways with legible font sizes

perform all of the procedures of sales and clerical work.

to protect the users of those financial products.

To this end, Toppan started a service in 2005 to help financial

To resolve these problems, Toppan’s Security Solution Center

institutions improve the visual understandability of their opera-

has started to provide the Creative Evaluation Service. This ser-tion manuals by introducing plainer and more transparent

vice assists Toppan’s client companies to develop sales materials

expressions and illustrations. The service is available for the entire

that fully publicize product advantages and corporate brands infinancial industry, and it has received acclaim from the institu-

understandable ways for everyone by embracing UD principles

tions that have used it. Financial Institutions report that thefor information communication.

improved visual understandability of their new manuals facilitatestraining and deepens the understanding of their employees.

Starting with Housing Loan Pamphlets

According to one customer, organized descriptions of the procedures employees should and should not perform have reduced

Housing loan pamphlets are generally difficult to understand for

clerical errors in their offices.

persons taking out their first loans. The language and information on interest rate plans and the terms of contract are complicated and abstruse. Financial institutions often have trouble in

From the Viewpoints of the Financial Institution and
the Consumer

their efforts describe the details plainly when they prepare theirmaterials. Toppan classified the critical points of housing loan

The needs for these services will increase as laws on user protec-

pamphlets into three areas—“term/description,” “design/lay-tion are revised, internal control is reinforced in financial institu-

out,” and “prevention of false recognition”—and extracted

tions, and working structures change. Toppan intends to help

problems and solutions in each. Group interviews with housing

establish better and closer relationships between financial insti-

loan customers were also held to explore their actual situations.

tutions and their customers by upgrading and expanding its

Based on an analysis of those results, Toppan created a checklist

services.

for an ideal housing loan pamphlet with over 100 check items.

Placing Importance on theViewpoint of CSR Support
Pamphlets (in Japanese)
prepared based on
creative evaluation

Communication Planning
Department, Security Solution
Center, Information andCommunication Division
Toppan developed this service with the expectation that specificdesigns and description rules for understandability could be established for the financial product sales materials used by institutions
that handle a great deal of information in common. The Company
will continue to place importance on the viewpoints of user satisfaction and CSR support for client financial institutions in the
future.

TOPPAN CSR REPORT 200711

Sensible and Thoughtful Design for Containers
Packaging Division
Easy to hold, easy to use, easy-to-see visuals, and suitability forthe entire product life cycle from purchase to disposal. Based onstorage and disposal…. The main application for Universal

this systemization, A UD Consulting Service Menu and its model

Design throughout Toppan’s businesses has been the creation

products, UD SELECTION, have now been developed. Toppan

of product packaging. This section reports the UD efforts of

can thus provide comprehensive UD services promptly to its

the Packaging Division to develop containers for food and every-clients.

day items.

Since the Age of Barrier Free

Constant Progression with a Sensible andThoughtful Mindset

Toppan started its efforts for UD in the beginning of 1990’s,

Easy to open for right-handers and left-handers alike; easy towhen the barrier-free concept was still mainstream. The

hold with big hands or small hands; drip-resistant when being

Company tackled this endeavor with a conviction that develop-

poured.… Though seemingly simple in themselves, these UD

ing containers with more satisfying and user-friendly properties

requirements can be hard to reconcile with other requirements

would become a key in the packaging business.

such as product strength and cost. But once a design is commer-

Toppan collected opinions from its clients (manufacturers offood and everyday items), distributors (wholesalers and stores),cialized, consumers take it for granted and never think of it
as UD.

and end users (consumers). By reviewing the usability of various

Toppan will maintain a sensible and thoughtful mindset

product packages and establishing a database of criteria, theunderlying all of its UD endeavors. It will also begin fostering its

Company developed its original Universal Design Diagnostic

own UD Consultants to analyze packages based on UD criteria

System. The approximately 750 samples now registered in theand submit UD proposals to clients. The Company will continue

database help Toppan make proposals to clients. The diagnostic

to make high added-value proposals at all times and create prod-system enables the Company to propose designs to resolve theucts based on UD considerations.

various packaging challenges of client companies on two levels:with ideal shapes and structures, and with design features thatcan be easily seen and understood.

The Products to Meet Social Expectations
Requests for evaluation and proposals have rapidly increased in

IThe Nine Requirements for Universal Design at Toppan
IEasy to identify the product
IEasy to pick-up and pull-out
IConvenient to store
IEasy to hold
IEasy to understand

IEasy to dispose
IEasy to open
IUseful functions
IPrevents injuries

the last few years. Several factors are adding momentum. First,
society is looking harder at the environmental considerations andsafety of products. Second, consumers demand usability andbeauty, in addition to safety and environmental friendliness.
Third, there are now more elderly consumers.
In response to these social advances, Toppan systematized its
UD concept in fiscal 2006 by setting four main points for packaging functions and graphics, each taking into account the ninemajor factors for package planning and production, as well as

Morinaga redesigned
its “pino” packagewith help from Toppan.
The size and locationof the tab werechanged to make thepackage easier toopen, and the opening itself was enlarged
to make it easier topick up and remove
the content (bite-size
morsels of chocolatecoated ice cream).

12

TOPPAN CSR REPORT 2007

Proposals Foregoing Consumers’
Requests
Ms. Akina Tsuji
Morinaga Milk Industry Co., Ltd.
Morinaga created “pino” as a product to beenjoyed by consumers of every age. By anticipating the requests and preferences of customers, we hope tomake an even better and more satisfying “pino” as the years go
by. We will continue to rely on Toppan’s support as we redesign
and renew our product packages in the future.

Universal Design in this CSR Report
The Company reviewed the CSR Report 2006 issued last year
Individual
Accomplishmefrom the viewpoint of Universal Design. The review has identi-

Individual
Accomplishme

fied improvements in the color scheme, search-and-guide function, and several other points.

Department
plan

Department
plan

Goal setting

Goal settingsColor SchemeHigh Value”

High Value”

The editorial team tried to create eye-friendly conventions andmers

schemes for precise information distribution for readers with nor-oundations

undationsmal color perception and weaker color perception alike. The

Figure in this report

Simulation of how persons withweak color perception perceive
the figure: Demonstrates how achange of colors can prevent
false recognition of the intended
meaning

Actionmers

team used the Color Finder for Universal Design application
reported in the last CSR report to carefully select the colors foruse in CSR Report 2007 and to identify the optimal color combi-

Actionnations. The revised draft was reviewed by a nonprofit organization, the Color Universal Design Organization (CUDO).

Products

Products

Raw materialss Raw materials

Service

Service

Arrows in CSR Report 2006

The arrows are revised in thisreport (P.5) to prevent false
recognition. Readers can distinguish the arrows by differences
not only in color, but also inshapes and patterns.

Major Points Considered
IUse of the colors easily distinguishable even by persons withweaknesses in color perception, in figures, tables, graph, etc.
that rely on color-coded information schemes to describe thedifferences in concepts and meanings.
IUsing schemes with line and space for clarifying the separation,
shape variation, and accompanied written information to precisely convey information without relying solely on color-cod-

1,297.3

1,413.5 1,548.2

1,548.2
1,297.3

ing.
914.6

952.8

947.1

Other Improvementss

1,413.5

914.6

952.8

947.1

2003

2004

2005

The search-and-guide function was improved by enlarging thepage titles and using titles and tabs. Information is easier to findand understand as a result.

2003

2004

2005

Graph in CSR Report 2006

Graphs are revised in this report(P.6) to improve visibility. Spaces
are placed between adjoining bars
and white outlines are added forthe numbers overlapping the colored bars.

Layout and Typestyle
Features of the CSR Report
IWide-ranging content and intensive use of graphics (figures, photos,
graphs, etc.)
A triple-column style is used to facilitate understandability on report pages
with heavy graphics (figures, photos, graphs, etc.), and the graphics themselves are aligned in the columns. A double-column style, meanwhile, is used
for other pages. The letters are printed in highly legible gothic fonts.
The CSR Report wasreviewed from the UD
viewpoint, especially thecolor scheme and designs.

Promoting Color UD
Mr. Koichi Iga
Nonprofit organization, Color Universal
Design Organization (CUDO)
Not everyone can perceive differences in color
in the same way. Reliance solely on color forclassification and emphasis may lead to imperfect recognition among persons with weaknesses in color perception. Reviews of designand color usage with this in mind will makethe materials easier for everyone to understand. We would like to promote this concept
of color UD.

Special Report 2: Universal Design

TOPPAN CSR REPORT 200713

Sakamoto: To begin, I would like each of you to describe
your own conception of what universal design is all about.
Nishida: We provide elderly people with opportunities toenjoy art as a way to help alleviate their symptoms of dementia. People should realize that there are many unknowns.
Even when all of our efforts are going well, we should
remember that there are other options. We must always try
to see things from the viewpoints of others while keeping

Stakeholder Dialogue

our own limits in mind.

Towards a Society
where Universal
Design is Common
The Roles Expected ofa Printing Company

Iga: We work on chromatic universal design, a discipline witha rather short history. An estimated 3.2 million people inJapan have weaknesses in color perception. But the exact
number is hard to know. Many people with weaknesses incolor perception hesitate to admit it, so we can’t recognize
them. When we try to communicate something by highlighting it in color, we aren’t getting through to these people—
we fail in our communication without knowing it. But how

What can Toppan do to create a society where universal

can we know this? And how are we going to change the sit-

design is common; a society where people from diverse

uation? These are important questions.

backgrounds can enjoy fulfilling lifestyles?
Stakeholders experienced in evaluating universal

Oyano: Our organization conveys the voice of the consumer

design met with Toppan to offer views and suggestions

to companies. We evaluate not only the considerations thaton Toppan’s efforts and what should be expected of theare built into a product or service from a company, but theCompany in the future.

extent to which the viewpoints of consumers are reflected in
the process. When consumers choose products and services,
they also consider the reliability of the company that produces them. This is how universal design directly improves
the reliability of a company.

14

Mr. Manabu Akaike

Mr. Koichi Iga

Ms. Yumiko Oyano

Ms. Kiyoko Nishida

Representative director and generalmanager, Universal Design Intelligence, Inc. Develops products andengages in community development based on universal design.

Technical advisor, nonprofit organization, Color Universal Design Organization. A consultant specialized incolor schemes that can be easily
seen and understood. Devises visualstrategies to reduce the likelihoodof misreading and errors for all people with different color perception.

Director of executive office, nonprofit organization, Universal Designof Citizen Network. Engages in collaborative work with various companies for spreading universal designfrom consumer viewpoints.

Standing director, nonprofit organization, Japan Clinical Art Association. Executive director, Institute ofFormative Art, Co., Ltd. Studies theinformation recognition capabilitiesof the elderly people based on clinical experience.

TOPPAN CSR REPORT 2007

Akaike: Ms. Oyano has it right. It’s crucial to be involved in

Iga: You can summarize by saying that universal design helps

the process of creating a product or service. When I create

people with weaknesses in color perception recognize things

products with manufacturers, especially in local regions, I

more easily. But the colors these people can distinguish vary

begin by building a system to enable persons with physicalfrom individual to individual. It’s one thing to find the opti-

disabilities, NPOs, and children to participate in the design

mal colors for just one person. Finding colors that will be

and development of a new product. Universal design takes

commonly recognized by many is a different thing alto-

place by combining participation and creation. There aregether. The products being designed and the people who will

great advantages to the process. First, a product is developed

use the products are important factors. However you

from the viewpoint of the consumer. Second, the people

approach it, there must be lots of flexibility.

who participate in the design of products and services
become the first users and promote the product at the

Oyano: Toppan’s direct customers are companies, so its rela-same time.

tionship with consumers is less direct. But consumers shouldstill be regarded as important stakeholders. When thinking
about universal design, Toppan should keep in touch with

Universal Design to Openly Engage
a Diversity of People

consumers to discuss their experiences as end users. Moreuser engagement will lead to more user participation andinvolvement in the development of products and services.

Sakamoto: For whom is universal design intended?
Hiromura: Toppan recognizes consumers as important
Nishida: People lump “the elderly” altogether in a single cat-stakeholders. Though opportunities for direct contact withegory. From a universal design standpoint, that category of

consumers are limited, the Company works with corporate

elderly people is too broad. We would never group a baby

customers from many industries and fields of operation.

and a 30-year-old together into a single category of person.

These people help Toppan keep abreast of consumer trends

But that’s just what we do with the elderly, grouping people

and preferences. The practice of interfacing with end users isthirty years apart together. In universal design we divide

one of Toppan’s strengths. The Company can use the infor-

the elderly into two groups: early elderly and late elderly.

mation it gleans from consumers to improve universal designs

We run into various kinds of problems if we don’t make thisfor all of the people in the world who use Toppan products.

distinction.

This is the true meaning of our work on universal design.

Venue and Date of
the Dialogue
Toppan Koishikawa Building,from 14:30 to 17:00
on July 3 (Tue.), 2007

Mr. Fumitake Sakamoto

Mr. Shingo Kaneko

Mr. Shungo Hiromura

Facilitator

Managing Director, head of the
Corporate Planning Division, incharge of the Legal Affairs Division.
Promotes CSR as the Director in
charge of CSR.

Director, head of the Information
and Publicity Division. In charge ofgeneral corporate public relations
at Toppan.

Senior Consultant, Witan Associates
Limited. Plans and drafts proposals
on corporate social responsibility.
Offers management assistance for
NPOs.

TOPPAN CSR REPORT 2007

15

Stakeholder Dialogue: Towards a Society where Universal Design is Common

Mining Universal Design Hints by Focusing
on Individuals
Sakamoto: Changes in society and technological advancement may compel us to think about universal design fromnew viewpoints. What do you think Toppan should focus on
as it considers universal design for the future?
Nishida: I think the elderly will become a great source ofconsumption in the future. In an ageing society with a low

ities. One technology allows a normal person to experiencebirthrate, positive lifestyles for the elderly will activate thethe vision of a person with weaknesses in color perception. It

social climate. People who have retired from their companies

will be very important to use these advanced technologies toare living with great ideas in their minds. Some retired

monitor and evaluate the products and services you develop.

employees from Toppan can propose great ideas for univer-

The pursuit of universal design for special types of people cansal design. You might make unexpected discoveries bysometimes lead to outstanding designs for general people.

including those seniors in your reviews of management

R&D on designs for children has enhanced safety for children,

resources.

for example, while also revealing challenges and discrepancies in creating products and social systems. By the same

Iga: Companies are now releasing interesting technologies.

token, the participation of people with various disabilities or

One software application simulates how people withdiseases in the process of product creation can sometimes

impaired color vision actually see, to help those of us who seereap seeds for products ideal for broad categories of people.

normally understand. Another application displays the nameToppan can find values that people with physical disabilities

of a color when the color is touched on screen. As theories

cherish and help such people in positive ways through vari-on color perception improve in the future, more tools toous business operations.

assist people with weaknesses in color perception are likely
to be released. The incidence of cataracts, meanwhile, is

Sakamoto: Where will universal design go globally? Howalso expected to rapidly increase in the elderly. People withdoes universal design in Japan compare to universal design incataracts will have to be considered as well.

other countries?

Akaike: Various researches are underway. There are many

Oyano: Universal design in Japan is evolving quite differently

tools that enable normal people to experience various disabil-from universal design in other countries. Japanese companies
are spearheading the designs for consumers as beneficiaries.
The NGOs, NPOs, and citizens are more active in Europe. If a
company takes a stance contrary to the consumer’s viewpoint in Europe, a citizen or citizen’s organization will point
it out.
Akaike: In some European countries, it’s the norm to assist adisabled person getting on or off a bus or subway car. We
should do the same in Japan. In addition to developing products, Japanese companies should cultivate a cordial and helpful spirit as they promote communication and services
through their business operations.

16

TOPPAN CSR REPORT 2007

What Does the Future Hold for Universal
Design?
Sakamoto: We’ve heard your views on the diversity of stakeholders, technology use, and balance between products andservice. Where will universal design go in the future? Howshould Toppan prepare and participate?
Akaike: When consumers “create together,” they build systems for creating goods for their own use. Some describe thisOyano: Universal design principles, applied in their ultimate

as customizing*1 or personalizing*2. So far we have been

form, will result in single-function products capable of being

designing one basic model and using it to develop products

customized to provide add-on or alternate functions as

for the elderly, the physically challenged, and children. The

options for different individuals. Universal design should

various businesses of Toppan in the future will provide prod-

allow for broader choices as well.

ucts and services more closely tailored to individuals. The universal design circle hasn’t discussed this issue yet. I take thisAkaike: That’s true. The core function is simple, but various

as a very important next step for universal design.

options can be chosen. That’s basic.

Hiromura: Work to personalize or customize a product costs

Iga: Information in general media can be personalized, andmoney and imposes environmental burdens. We need to findsome types don’t require many colors. By reorganizing infor-

a way to have stakeholders understand these issues.

mation you can make it easy to see not just for people withweaknesses in color perception, but for everyone. You can

Akaike: When users who take part in product creation

develop outstanding products simply by re-creating existing

become consumers, they are more likely to pay premium

ones from scratch.

prices for the products they help to create. If you’re concerned about environmental burdens when you customize

Nishida: Elderly people don’t want to use things stereotypi-

products, you should draw up a participation program thatcally intended for elderly people. They want simple things

touches upon environmental issues as well. Users involved inthat they can think of as their own and use for a long time.

the development of a product will form an attachment to the
product. A participation program for universal design can be

Kaneko: It certainly can be difficult to deal with people one-quite helpful for Toppan.

on-one. But we can create a common basis for as many people as possible and offer broad choices as an option. When aproduct serves inadequately under some condition, you candevelop a service to compensate. The value gained here is
the opposite of the value gained by mass manufacturing
identical items quickly at low cost. We need to enhance thisservice as our technique and expertise. We must know what
consumers think about and what they want. With thatknowledge, we can make ideal proposals to please our customers and win the recognition of society.

*1 Modifying a product or service designed by manufacturers to one’s preference*2 Adapting a product or service designed by manufacturers for one’s self

TOPPAN CSR REPORT 2007

17

Stakeholder Dialogue: Towards a Society where Universal Design is Common

stage of product development for a company, from collecting information on consumer needs to planning, designing,
prototyping, monitoring, and evaluation. The staff in the field
saw the monitoring and evaluation with diverse people forthemselves. The experience greatly changed their mindset.
Your own mindset won’t change until you hear the voice ofthe consumer.
Iga: Companies must use colors in many situations. When a
Akaike: Toppan has basic resources for developing products

review of the use of color is proposed for products or in-with social value, or what we call “socialware*3.” In my talks

house presentation materials, a person with weaknesses inwith Toppan’s development people, I was often impressed bycolor perception has an opportunity to confess his or her

the socially useful technologies they described. Toppan’s

weakness. Just one such person in the project can change

medical chips are a good example. I wonder if the results ofthe mindset of the entire team. Members will immediately

their research can somehow be applied in universal design.

understand the need to consider color into account in the

An inventory of techniques may result in seeds for new busi-

development. A development team must think about univer-nesses. With the right efforts, Toppan can turn these seeds

sal design from the very initial phase. Making a final checkinto merchandise for fulfilling its CSR.

after the completion of a product is often too late. Early
thinking about universal design facilitates the developmentof a product or service at low cost.

The Importance of a Consumer Mindset for
All Employees

Nishida: As Ms. Oyano said, employees must realize theiridentities as consumers as well as corporate workers. An in-

Sakamoto: When undertaken only by some of the employ-house training program to help participants realize their sen-ees, true universal design can’t be realized. Every employee

sibilities and identities will give them balanced outlooks asmust handle individual tasks in the overall process of businesscorporate workers and ordinary people. This, in turn, will

to realize UD. Toppan seems to be working in a Company-

improve their performance at work. Toppan seems to send

wide structure. What can be added to this stance?

out enormous amounts of information. If Toppan takes steps
to continually enhance the sensibilities of its employees as

Akaike: How about establishing programs to send employ-consumers, it will become a dynamic source of information

ees out to communities outside their core territories? A pro-intelligence within industry and society.

gram for Bunkyo Ward in Tokyo, the home ward for the
Toppan Koishikawa Building, would be ideal. Programs ofthis type would encourage employees to develop value forthe good of the public and spread that value into the community. It would be a good idea to support employee activities like this.
Oyano: When a company engages in universal design, thepeople in the field should think like ordinary users. All of thedepartments should connect in a cross-sectoral manner andwork from the user’s standpoint. I was once involved in every*3 Technologies, products, and services to assist the activities taking place in various communities

18

TOPPAN CSR REPORT 2007

Akaike: I’d like to see Toppan to develop socialware withdesign. You have also stressed the importance of encourag-corporate customers, especially socialware that appeals to

ing a consumer mindset among all employees within thethe sensibilities and memories of ordinary people. Every prod-

Company. This stakeholder dialogue has provided various

uct should have good content with a compelling story behindclues for universal design. We expect much of Toppan’s

it, not to mention an attractive external design. Customers

future efforts.

should feel a heartening warmth when they hold a productand a growing affinity with the product as they use it. When
Toppan’s printing and communication techniques fully harmonize with a product like this, a complete package will becreated as an interesting model for universal design.
Sakamoto: Thank you for presenting your various views. Allof you have encouraged changes in viewpoints. By compilinginventories of current technologies and techniques, theCompany can see if and how its technologies and techniques
can be diverted. The Company must realize that its information is limited and look at things from standpoints of consumers and ordinary people. The Company also should ask
consumers to participate in product development from earlystages. This itself becomes communication for universal

Responding to Stakeholder Dialogue
This was a valuable opportunity to exchange views withexperts in their professions. We all will be engaging more

stakeholders on Toppan’s efforts in universal design.

with society and consumers, and we all will strive to

Toppan has researched printing and communication tech-change our conventional viewpoints. We would like to cre-niques for more than 100 years. The Company is now con-ate new businesses for society in the future.

vinced that it can use its techniques even more for the
benefit of society. All of Toppan employees have plenty of

Shingo Kaneko

ideas for universal design, both as consumers and asManaging Director

Stakeholder Dialogue

TOPPAN CSR REPORT 2007

19

Topic01 Cartocan Received “eco products award”
Toppan developed and promoted Cartocan in collab-

About 140 products of some 40 manufacturers

oration with the Morikami (Forest and Paper)

have already introduced Cartocan. Toppan donates

Conference, a cross-industrial meeting to promote

some of the proceeds from Cartocan sales to thethe usage of environmentally-friendly paper-based

Green Fund, a program that funds volunteer organi-containers for beverages. The Minister of Agriculture,zations involved in forest maintenance throughout

Forestry and Fisheries awarded Cartocan in the eco

the country.

products category of the third eco products awards.

Cartocan was conferred the eco products award in

Cartocan is a paper-based container for beverages,

recognition of its excellence as a cyclical product fordeveloped by Toppan as an environmentally-friendly

foresting. Whenever consumers purchase a beverage

product in 1996. More than 30 percent of thein a Cartocan, they participate in foresting indirectly

paper composing Cartocan

and are reminded of the global eco-system.

is from domestic lumber,including lumber harvested
from forest-thinning operations. The use of Cartocan
helps to curb global warming by promoting the optimal foresting cycle, fromplanting and nurturing toharvest and optimal use.

Topic

02 User-friendly Ecotainer Wins the KINOSHITA PRIZE
The User-friendly Ecotainer® developed by Toppan

Toppan has applied its expertise in Universal Design

received the 31st KINOSHITA PRIZE in the Section of

consulting to develop the User-friendly Ecotainer, an

Packaging Improvement & Rationalization in 2007.

advanced Ecotainer that is easier to hold and to

The Japan Packaging Institute confers the KINOSHITA

pour. The container design also enhances suitability

PRIZE each year to products that have contributed

for recycling through the use of Ecogloss®, an envi-

notably to the research and development of packag-ronmentally-friendly printing process technology

ing technologies and the streamlining, improvement,with excellent de-ink properties. These improvements

and enhancement of packaging.

in the User-friendly Ecotainer attracted the attention

Toppan has been producing the Ecotainer® as aof the KINOSHITA PRIZE panel.

container for cooking oils and liquid detergents since1991. Ecotainer is a composite container made froman outer case of recycled paper, a plastic film lining
with a gas barrier property, and an easy-to-pourspout. Two environmental advantages have earned
Ecotainer the Eco Mark certification: easy fractionation for disposal and a 65% reduction in resin consumption compared to existing plastic bottles forcooking oils.

Highlights 2006–2007

CSR Activity Topics
20

TOPPAN CSR REPORT 2007

User-friendly Ecotainer
designed for ease of use
from various viewpoints,
with an anti-slip surface
on the outer case, rearsides fashioned in an hourglass shape, and big-letter
displaysTopic03 Cicero Project: A Quest for Lost Knowledge
Toppan has been working with the Bibiloteca
Apostolica Vaticana (Vatican Library) in the Cicero
Project to revive important documents from ancientand medieval Europe.
The Cicero Project was commenced in the springof 2004 as an international effort to decipher about
200 palimpsests kept in the Vatican Library archives.
A palimpsest is a parchment manuscript (apograph).
Before the advent of durable solid paper, the ancientand medieval Europeans wrote on specially treatedparchments made from the hides of sheep and cattle. Because of the great expense of parchments, thescribes would often rub out older text on the parchments when they had something new to write. Someof the documents rubbed out over the centuries arelikely to contain important paleography.
Toppan developed a special scanner to read fainttraces of the words rubbed off from the parchments,
together with an analysis application capable of estimating the ages of the rubbed out words based onslight color differences in the faint inks and displaying them in different colors corresponding to theirestimated ages. The first scanner was shipped fromJapan to the Vatican in April 2005. A second scannerpresented in fiscal 2006 has greatly improved theefficiency of research.
As one outcome, the project team discovered thework of a 10th century historian hidden on a parchment beneath a newer text from the 12th century. A(Top) Cardinal Jean-Louis Tauran, former Archivist and Head
Librarian of the Holy Roman Church (left—now Presidentof the Pontifical Council for Interreligious Dialogue) and
President & CEO Naoki Adachi (right)(Middle) Researchers of the Vatican Library engrossed in theiranalytical work
(Bottom) The image after the analysis: the colors of the displayed
words correspond to the estimated dates when they
were written.

Vatican researcher announced the discovery at aninternational conference.

Topic

04

Enhancing and Expanding Measures to Foster the Next
Generation: Rehiring Employees who Leave the Company toRaise Children
On January 1, 2007, Toppan introduced a system forto their jobs later. Toppan therefore gives employees

rehiring employees who resign from the Company to

who resign a chance to return to work before theirdeliver and raise children. This system was developed

children enter primary school. The system has advan-in response to requests from employees whose

tages for both the resigned employees and theneeds could not be met by the existing systems for

Company: the resigned employees can concentratematernity leave and reduced working hours. Someon childcare with peace of mind and the Company

employees want to concentrate on childcare while

can secure human resources well acquainted with

their children are very young; others have to resign

the work done at Toppan (➞P.57).

after childbirth for various reasons but wish to return

TOPPAN CSR REPORT 200721

Topic05

Detecting Hexavalent Chromium at the Itabashi Plant ofToppan Printing Co., Ltd.
Since detecting soil and groundwater pollution at thedetected and to install underground water shielding

former Fukuoka Plant I in October 2005, Toppan

walls on the borders of the premises to prevent any

Printing Co., Ltd. has voluntarily inspected soil andform of outflow. It will take these measures even if

groundwater at its operational sites.

the source of the contamination in this case is foundIn May 2007, Toppan inspected six investigation

to be outside the premises.

wells on the premises of the Itabashi Plant (Itabashi

Toppan will report the results of its current investi-

Ward, Tokyo) to test for the presence of various haz-gation on the source of the contamination in the CSR

ardous chemical substances the plant had used,

Report 2008.

including hexavalent chromium and lead. As a result,
0.13 mg/L of hexavalent chromium, a level in excessof the environmental standard of 0.05 mg/L, wasdetected in one well in the northwest at the plant.
Upon the detection, the Company reported theresult to neighboring residents and the local authority (Itabashi ward government). Toppan and the
Itabashi ward government both released this information to the press on June 28, 2007. The Company
has been investigating within the premises since June

Boring check19 to determine the cause of the pollution.
The local authority has concluded that this casecalls for a voluntary investigation and countermeasures, as opposed to administration guidance withregulatory enforcement. Recognizing the importanceof the matter to fulfill its corporate social responsibility, Toppan is to determine the source of the pollution with the counsel of the local authority. Toppan
intends to purify the pumped underground waterin the areas where heavy contaminations wereOn-site inspection and confirmation by the local authority

Highlights 2006–2007

CSR Activity Topics

22

TOPPAN CSR REPORT 2007

CSR Management

Toppan’s Social Responsibility
Basic Approach to CSR ---------------------------------------------------------------------------------------- 24
Review of CSR Activities and New Initiatives
Results for Fiscal 2006 and Future Issues and Targets ------------ 28
Corporate GovernanceCorporate Governance----------------------------------------------------------------------------------------- 30
Compliance
Compliance Promotion Activities --------------------------------------------------------------- 34
Information Risk Management --------------------------------------------------------------------- 36
CSR Review Meeting with Stakeholders ---------------------------------------------------- 38

CSR Management

Toppan’s Social Responsibility

Basic Approach to CSR
Toppan has been contributing to the development of society with a focus on printing since the Company’s
foundation in 1900. Toppan devotes itself to comprehensive CSR activities based on TOPPAN VISION 21,
the Group vision for the 21st century.

Towards Sustainable
Development
When Toppan was founded in 1900,
Japan was steadily building up its modern
industries in the aftermath of the Meiji
Restoration.
The printing industry was contributing
to society in three important areas: 1) theprinting of banknotes, bonds, and securities, important instruments for the establishment of modern capitalism; 2) the
publication of newspapers, the medium
for public discussion on the progress ofcivilization; and 3) the publication oftranslations, novels, and magazines toenlighten the public and encourage theestablishment of a modern state.
Toppan began in the last century as
a provider of printing services to support
the establishment of modern Japan.

Today it has grown into a multifaceted
enterprise with myriad businesses such as
IT and electronics, centered around core
printing technologies. Toppan supports
the development of information culture
and the creation of fulfilling lifestyles inmany ways.
Toppan has steadily progressed amid
the drastic changes that have taken placeworldwide in the more than 100 years
since its founding. These changes continue to pose threats to the earth andhumankind in the 21st century. The worldmust contend with poverty, abuses ofhuman rights, environmental destruction,and health problems. In Japan, meanwhile, birthrates are declining and the
population is ageing.
Toppan believes it has a responsibility
to help solve these kinds of problems bycontributing “to a fulfilling lifestyle as amainstay of information and culture”
through its business operation in cooperation with all of its stakeholders. The
Company contributes as an essential corporate citizen with an active commitment
to realizing sustainable development foritself and society.

Corporate Philosophy

Each of us shallreciprocate our customers’ continued trust,

Nurture and develop a relationship of trust with customers.

create dedicated products by

Take pride in our products and services and recognize their importanceas creations for the customer.

harnessing our vibrant knowledge and technology,

Continue and strengthen our operations through the use of knowledge(marketing and planning) and technology concerning printing, to attainfaithful reproduction with detail and creativity.

and contribute to a fulfilling lifestyle asCreate fulfilling lifestyles within society by giving shape to the aspirations
to communicate both on individual and corporate levels.

a mainstay of information and culture.

Recognize the universal role of printing as a medium for information andculture.

Established in June 2000

24

Each employee shares these values and bears the responsibility of
upholding them.

TOPPAN CSR REPORT 2007

Basic Approach to CSR

Corporate Creed and Conduct
Guidelines
The Corporate Creed expresses the standards that Toppan applies to its activities.
Built on the Corporate Philosophy andCorporate Creed, the Conduct Guidelines
express the behavioral norms based on
every employee’s compliance with laws,
regulations, and corporate ethics.
Under no circumstances will any member of the Toppan Group engage in abusiness operation that infringes the rulesof society or poses any risk of environmental or social harm. The Group also
understands that any failure to maintainits high standards for business may makeit difficult to guarantee profitable returns
and benefits for society.
The Conduct Guidelines specify items
that every employee in the Toppan Groupshould closely observe. The Toppan Group
believes that these Conduct Guidelines
must be kept open to review in order torationally adapt to changes in corporate
and social environments. In April 2006,
Toppan revised its Conduct Guidelines
for the second time to incorporate priority management themes and to rephrase
the text using more subjective expressions.

Corporate Creed

Conduct Guidelines

To build our customers’ trust though
sincerity, enthusiasm, and creativity
in all our corporate endeavors.

Chapter 1: Basic Principles

To strive for total innovation from a global
perspective by conducting marketing andtechnological development rich in originality.

Toppan’s Social Responsibility

TOPPAN VISION 21 expresses the basic
concept and directionality of the activities
undertaken by Toppan to steadily growin harmony with society and the global
environment.
TOPPAN VISION 21 consists of the
Corporate Structure and Business Fields.
The Corporate Structure, meanwhile, ismade up of three elements: Toppan’s
Corporate Philosophy, the Corporate
Creed, and the Conduct Guidelines.
These elements specify a complete setof values, standards, and guidelines forthe business operations of the Toppan
Group. Toppan will fulfill its social
responsibilities by realizing this Corporate
Structure.

Corporate Philosophy
The Corporate Philosophy is the top-level
concept that underpins Toppan’s corporate activities and defines its most important values and thoughts.

CSR Management

Toppan’s Social Responsibility:
Realizing an Ideal Corporate
Structure

1. Respecting basic human rights
2. Maintaining public order and standards of decency
3. Complying with laws and ethics
4. Conducting fair business operations
5. Striving to improve quality

To conduct fair and open business operations
while acknowledging our social responsibilities
and aspiring for harmony with
our global environment.

6. Appropriate management and disclosure of
information

To create a positive working environment by
maximizing our individual talents andstrengths as a team.

Chapter 2: Specific Conduct Guidelines

To enhance our corporate standing andpromote the continual development of
the Toppan Group throughthe exploration of new possibilities.
Established in June 2000

7. Environmental and safety considerations

Section 1: Building customer trust
Section 2: Reforming operations
Section 3: Fulfilling corporate responsibilities
Section 4: Creating a positive work environment
Section 5: Developing the Toppan Group
Established in June 2000; revised in April 2006
For more detailed information on the Conduct Guidelines, please see P.85.

TOPPAN CSR REPORT 2007

25

CSR Management

Toppan’s Social Responsibility

Toppan’s Relationships with
Stakeholders

tomers. By listening to the ideas of customers and employees, Toppan can study
the potential of those ideas and work torealize them one by one. Through thisapproach, Toppan finds new ways to surprise and delight society.

Toppan can only succeed in its businesses
and stay viable as a corporation throughstrong ties with various stakeholders. The
Company has defined five categories of
stakeholders vital for its business activities: customers, business partners, communities, employees, and shareholders/investors. Toppan tries to build closer
relationships of trust with its stakeholders
in these categories by actively disclosing
information and engaging stakeholders
in dialogue.
The companies that Toppan deals withare by no means the only customers that
Toppan serves. End users are also cus-Communication with Stakeholders
Dialogues with stakeholders are a very
effective way to regularly grasp social
needs. Toppan promotes and upgrades
its CSR activities by incorporating dialogues with stakeholders into the PDCA
cycle of its CSR activities.
Toppan held special dialogue sessions
with key stakeholder representatives in2004 and 2006, in addition to the regular dialogues held in the course of busi-

ness. The stakeholders who took part in
the 2006 dialogue session expressed
opinions on ideal directions and targets
for Toppan’s CSR activities in the future.
Starting from 2005, Toppan has also
been inviting an external expert into inhouse meetings to hear CSR promotion
members review the Company’s annual
CSR activities. This expert continues
to offer guidance on Toppan’s activity
reviews, and advice on setting new tasks.

Toppan’s Relationships with Stakeholders and Tools for Communication
IFor All Stakeholders(

IFor Customers: Tools for communication)

Corporate Guide
CSR Report
Various guides for individual divisions
Financial statements
Quarterly business reports
Website, etc.

Toppan’s customers are not just the companies with which Toppan does business.
Just about every person in society is a Toppan
customer, in some way or another. The Company strives to merit the trust of its customers
with sincerity, enthusiasm, and creativity at
all times by satisfying customer requirements
through Total Quality Assurance throughout
the entire product life cycle, from planningand manufacturing to use and disposal.
Various reports on business operations
Various reports on products and services
Various newsletters, etc.

IFor Shareholders and Investors
Toppan strives to improve its corporate value
through sustainable business developmenton the basis of stable dividends. The Company
makes itself fully accountable by promptly
and appropriately disclosing corporate information to ensure that shareholders andinvestors completely and accurately understand the Company’s business activities.

Customers

IFor Business Partners

Shareholders
andInvestors

Business
Partners

Shareholder newsletter Toppan Story
Business reports
Annual Report
Corporate governance reports, etc.

Employees
IFor Employees (including part-timeworkers and temporary staff)
Toppan strives to provide comfortable workplaces where various employees can work totheir full potential—workplaces where thedignity and lives of all employees arerespected. The Company offers meaningful
work that fulfills employees themselves andtangibly contributes to the goals of thecorporation.
In-house newsletter CONVEX
Overseas in-house newsletter Interlink
Pamphlets on welfare benefits, etc.

26

TOPPAN CSR REPORT 2007

Communities

Another crucial element in strong customer
trust is a steady relationship of trust andcooperation with the business partners who
provide the raw materials, the people inplants who manufacture products in tie-ups
with Toppan, and the other companies withwhich Toppan works. Toppan does businesson an equal footing with its partner companies in a fair and open manner as a matterof course. The Company strives to fulfill thesocial responsibilities that customers and society
expect it to fulfill by promoting CSR procurement in cooperation with business partners.
CSR Procurement Guidelines on
the Toppan website, etc.

IFor Communities
The business conducted by Toppan affects
local communities and the global environment in many ways. Toppan strives to win
the trust of communities by conserving theenvironment and contributing to society as amainstay of information and culture.
Plant guides
Site Report
Annual report Printing Museum, etc.

Basic Approach to CSR

Specific Concept of CSR
Activities

Six Priority Themes Based on the Corporate Structure and Stakeholders

Toppan’s Social Responsibility

Six Priority Themes
To proceed with more effective andinvolved CSR activities for the fulfillmentof its social responsibilities, Toppan has
set out six priority themes of focus. The
Company sets action points and goals foreach priority theme, and reviews themyearly by assessing the levels of achievement. The review of the six priority
themes in fiscal 2007 will reflect the opinions from stakeholders.

CSR Promotion Structure
To promote CSR on a wider scale, thePresident & CEO and the Director in
charge of CSR are leading a move todevelop activities through collaboration
with the relevant management divisionsof the head office and the ComplianceDepartment of the Legal Affairs Division,
the department undertaking administrative operation. These parties regularly
convene a CSR promotion meeting toassess the progress of each action pointand discuss ways to resolve related problems and challenges.

CSR Management

The purpose of Toppan’s CSR activities isto realize sustainable development ofsociety and the Company. To achievethis, Toppan must be a trustworthy andrespected corporation for stakeholders of
all types, including society and consumers.
Only companies with this policy can
expect to succeed in resolving social issues
and needs by creating added-value businesses through operations over the years.
Toppan has therefore set out priority
themes for its activities by combining its
policy towards the balanced developmentof the economy, society, and the environment with a conviction that a realizationof an optimally organized Corporate
Structure will help the Company fulfill its

social responsibilities. Toppan pledged its
support for the United Nations Global
Compact as an active participant in 2006.
By disseminating the basic tenets of the
Global Compact across the Company,
Toppan promotes CSR activities in consideration of the roles it is to play as amember of international society.

Toppan’s CSR Promotion Structure
President & CEO

Director in charge of CSR

Six Priority Themes

CSR Promotion Committee
ComplianceCorporate
Governance

Administration
Legal Affairs Division
Secretary Department

Commitment
to theEnvironment

TOPPANVISION 21
Corporate Philosophy
Corporate Creed
Conduct
Guidelines

Activities forSociety andCultureImproving
Customer
Satisfaction

Respecting andLeveraging
Human Assets

Information andPublicity DivisionCorporate Planning Division
Personnel & Labor
Relations Division
Finance & Accounting DivisionCorporate Manufacturing,Technology & Research Division
Purchasing Division

Stakeholders
International Division
United Nations Global Compact
The United Nations Global Compact comprises 10 principles in the four areas ofhuman rights, labour standards, environment, and anti-corruption. Toppan supports and implements the 10 principles as a socially responsible corporation.

TOPPAN CSR REPORT 2007

27

CSR Management

Review of CSR Activities and New Initiatives

Results for Fiscal 2006 and Future Issues and Targets
Toppan carries out various CSR activities based on the action points established for each of the six priority
themes and reviews them annually. The next two pages summarize the main activities and achievements
in fiscal 2006, and the issues and targets for fiscal 2007 and beyond.

Results for Fiscal 2006 and Future Issues and Targets
Priority Themes
Corporate
GovernanceAction Points
in Fiscal 2006
Strengthening audit
and control functions

Overallevaluation•Established 9 common issues on a Group-wide basis in comprehensive audits for divisions and subsidiaries; conductedA
comprehensive audits of 17 departments•Created audit manuals and built a database for auditing results
B•Decided to review and revise the in-house rules and regulations governed by the head office on a regular basis (twicea year); reviewed and organized the in-house rules and regulations in pilot divisions in order to introduce a system fortheir management
Main Activities and Achievements in Fiscal 2006

•Established the Rules on Risk Management, re-examined risks using a risk assessment sheet, and assessed risks in thehead office, all divisions, and domestic subsidiaries•Conducted employee training and evacuation drills to help the persons in charge of risk management assess the needfor evacuation and so on•Rehearsed emergency guidance by informing employees of the routes by which to return to their homes during
emergencies and the items to take with themCompliance promotion •Held 32 briefing sessions across Japan to deepen the understanding of employees on the revised Conduct Guidelines
and the types of revisions madeactivities•Had 30 of the manufacturing subsidiaries and major domestic affiliated companies establish their own Conduct
Guidelines and internal reporting systems•Elected 393 new Leaders (up by 91% year on year) through the re-election of the Conduct Guidelines Promotion
Leaders; 11 of the newly elected Leaders were female (the ratio of female Leaders was 2.2%)•Revised the Information Security Management Guidebook to incorporate guidance on personal information
Information risk
protection, distributed the guidebooks across the Company (including the production subsidiaries), and held briefing
management
sessions on the content•Conducted internal audits in the Group, including the production subsidiaries (41 out of 52 companies)•Conducted internal audits in all the divisions except 1 (the 1 exempted division underwent a divisional integration)•Revised the Basic Procurement Policy, prepared to formulate the CSR Procurement Standards by conducting interview
CSR promotion in thediscussions with business partners, went on to prepare the standards, and conducted in-house training
supply chain•Continued to examine the installation of hotlines for business partners by clarifying the requirements for operating
the hotline system•Had 4 experienced in-house consultants familiar with Company-specific technologies offer guidance and training for
Reinforcing Total
quality improvement in 20 plants
Quality Assurance•Conducted quality assurance audits for food operations at 37 operational sites and for manufacturing processes in the
Securities Printing Division and other departments
Technological development •Commenced full-scale production and supply of key components for electronic ink displays, including electronic books•Conducted tests for pilot SNP chips at medical institutions and endeavored to develop the chips for commercial use
aimed at value creation•Organized Design for You Exhibition (Toppan’s exhibition and seminar) and participated in the 2nd International
Products and services
Conference for Universal Design
developed with society•Developed and announced the Universal Design Solutions Service for product packaging and brochures and booklets
in mindfor the sale of financial products

A•Revised the system for treating managerial staff, conducted dissemination activities to heighten employee awarenessof the system, and began applying the system in April 2007
•Held 4 Human Resources Development Leader Meetings to discuss human resource development and strengthen thesynergy of Company-wide training and specialized training in the divisions and departments•Conducted educational seminars on the promotion of CSR activities in rank-based training (a cumulative total of
1,795 employees participated)•Offered 78 internships and held events such as the TOPPAN CAFÉ (a job hunting and career conference) to help job
applicants more thoroughly understand the work done at Toppan (246 applicants attended 9 TOPPAN CAFÉ sessions)•Took advantage of the managerial skills of female employees by appointing more women to managerial andLeveraging diverse
supervisory positions through positive action* (achieved a 2.6% ratio of females in these positions, surpassing thehuman assets
targeted 2.5% as of April 2007)•Made the most of the skills of experienced employees through the continuous employment system for post-retirement
employees (63 retired employees were reemployed)•Reduced working hours by strengthening organizational management and provided health guidance for employees
Realizing a safe andwho work long hours
secure working•Organized Company-wide activities to enhance mental health (e.g., introduced mental health curriculum inenvironment
managerial staff training and rank-based training)•Enhanced measures to support the development of the next generation by initiating a labor and management project(e.g., introduced a rehiring system for employees who resign from the Company to deliver and bring up children, andextended the period during which employees who take care of young children can work a shortened workday)•Promoted Kan-kan Gaku-gaku Museum (frank and lively debate on museums), a cooperative project with other
Cultural contributions
corporate museums in Japan•Cooperated in setting up Bunkyo Muse-net, a network of museums in Bunkyo Ward, Tokyo•Held 2 temporary exhibitions: Stanhope and The Industrial Revolution and War and Image•Held numerous exhibitions at the P&P Gallery, including the GRAPHIC TRIAL and Exhibition of “Introductory” Business
Cards•Held 32 Toppan Hall concerts (8 of which were held to foster talented youth—6 were Lunchtime Concerts and 2 were
Espoirs)•Lent out Toppan Hall to a nearby music college and local elementary schools, and participated in the Mejiro Ba-RockMusic Festival
Activities for contributing •Organized cleanup activities, blood donation campaigns, plant tours, open-houses, events, and so on at operationalsites around the world
to local communities
Tree-planting activities •Continued to support and participate in tree-planting programs
The targets and results of Toppan’s environmental commitment are shown on P.62–63
Commitment to
the environment

A

Improve risk
management system

Compliance

Improving
Customer
Satisfaction

Respecting andLeveraging
Human Assets

Activities forSociety andCultureCommitment to
the Environment

Merit-based personnel
policies
Fostering anddeveloping humanassets

B

A

A

B

A

A
A

A

A

A

A

A
A

Valuation standard: S, Results achieved far surpass targets; A, Targets achieved; B, Activities fully carried out, but targets unachieved; C, Activities insufficient

28

TOPPAN CSR REPORT 2007

Results for Fiscal 2006 and Future Issues and Targets

For Details
P.30

P.32

•Holding follow-up training sessions to execute the Conduct Guidelines Promotion Leaders’ Action Plan
•Re-electing the Conduct Guidelines Promotion Leaders and increasing the ratio of female Leaders to 3.0%
•Having all of the overseas subsidiaries in the U.S.A. introduce their own Conduct Guidelines, and having overseas sites in Eastern
Asia disseminate and entrench the guidelines they introduced in fiscal 2006

P.34

Information risk
management•Reinforcing an information security management system that incorporates the management measures stipulated under the global
standard ISO/IEC 27001 (e.g., applying 47 management measures for 50 areas under tight security, reviewing the rules and bylaws
on information security management and procedures for handling manuscripts, and training 20 more qualified staff members)•Inspecting and offering guidance for the improvement of confidential information management at 12 affiliated companies

P.36

CSR promotion in the
supply chain•Holding briefing sessions for CSR procurement business partners; grasping the current conditions through cooperative agreements
and check sheets•Feeding back survey results to business partners; re-inspecting designated chemical substances•Installing and operating the Business Partner Hotline•Appointing 1 more in-house consultant and launching an in-house consultation in the Electronics Field•Continuing the quality assurance audits for food-filling plants and food product packaging plants

P.44•Establishing a high-definition printing technology to ready the organic Electro Luminescent (EL) displays for commercialization•Accelerating the development of commercial SNP chips and reinforcing efforts to put them to practical use•Starting to grasp the actual orders for products that meet the Company-wide Standards for Universal Design and formulating new
action goals based on the achievements•Holding training and educational seminars in the sales and planning departments to standardize information on Universal Design(UD), to standardize how the discipline is understood, and to help the employees in those departments more ably solve Companywide issues•Promoting the UD application for communication tools issued by the Company•Entrenching the treatment system for managerial staff

P.42•Implementing personnel rotation to reinforce Total Quality Assurance•Strengthening the synergy of the divisions and departments through ongoing Human Resources Development Leader Meetings•Helping job applicants more thoroughly understand the work done at Toppan through internships, the TOPPAN CAFÉ (a job
hunting and career conference), and so on•Continuing educational seminars on the promotion of CSR activities in rank-based training

P.52

Leveraging diverse humanassets•Taking advantage of the management skills of female employees through positive action* (a 2.75% ratio of females in managerialand supervisory positions is targeted for April 2008)•Making the most of the skills of experienced employees

P.54

Realizing a safe and secure
working environment•Upgrading mental health measures at workplaces•Promoting action plans based on the Law for Measures to Support the Development of the Next Generation•Promoting efforts to shorten total working hours

P.56

Cultural contributions•Formulating policies on activities for society and culture•Promoting educational activities and providing information to educational institutions and cultural facilities in Bunkyo Ward, Tokyo•Holding 2 temporary exhibitions: Making Beauty—Early Japanese Lithographic Posters and ENCYCLOPEDIA•Holding 33 Toppan Hall concerts (including 6 Lunchtime Concerts, 2 Espoirs, and 2 Espoir Specials)•Continuing to lend out Toppan Hall to a nearby music college and local elementary schools, and participating in the Mejiro Ba-RockMusic Festival

P.46

Activities for contributing
to local communities
Tree-planting activities
Commitment to theenvironment•Conducting ongoing activities for contributing to local communities at operational sites around the world; running an internationalsocial action program (Toppan Charity Concert) to increase literacy rates•Continuing to support and participate in tree-planting programs
The environmental targets for fiscal 2007 and beyond are shown on P.64

P.48

Technological development
aimed at value creation
Products and services
developed with society in
mind

Merit-based personnel
policies
Fostering and developing
human assets

P.40

Review of CSR Activities and New Initiatives

Compliance promotion
activities

Reinforcing Total Quality
Assurance

CSR Management

Action Points
Main Issues and Targets for Fiscal 2007 and Beyondin Fiscal 2007
Establishing an internal•Drafting basic policy documents, grasping the current conditions of Company-wide internal control, reexamining issues forcontrol system
improvement, and offering guidance on improvement toward the creation of an internal control system that meets the(Responding to the Financial requirements of the Financial Products Exchange Law
Products Exchange Law)
•Completing the planned improvements and documentation for the internal control of the operating processes and general controlof IT•Having the Management Audit Office support the creation of an internal control system and monitor and verify the application of
the system•Preparing a checklist and an evaluation manual for the self-audits for the divisions to be audited for internal control
Reinforcing risk
•Validating countermeasures against risks identified through risk assessment
management•Regularly implementing risk assessment (to be scheduled in December)•Creating a risk management system, formulating rules and regulations for risk management, and implementing risk assessments inEastern Asia and the U.S.A.
•Reviewing the basic plan for countermeasures against earthquake disasters based on the concepts of the business continuation plan

P.43

P.50

P.79
P.59–

*Proactive efforts by a company to resolve problems related to inequities in the treatment of male and female workers in the workplace as a result of outmoded
concepts of gender-based division

TOPPAN CSR REPORT 2007

29

CSR Management

Corporate GovernanceCorporate GovernanceCorporate governance represents the foundation on which Toppan can fulfill its social responsibilities
promptly and thoroughly. The Company is enriching corporate governance by reinforcing its auditing andsupervising function in business operations, enhancing its risk management structure, and improving
the transparency of its corporate management.

Toppan’s Corporate GovernanceGroup with closer cooperative relationships among Group companies to securefair business within the Group under
the Related Company Administration
Regulations. Capitalizing on the integrated strength of the Group, Toppan
aims to provide products and services andto enhance profitability by leveraging thetechnology and expertise of Group companies while promoting the effective useof production assets.

Toppan places top priority on three issues
in its corporate management: developing
continuously, raising its corporate value,
and winning the approval of shareholders, customers, and society as a whole.
While the Company is equipped with
the Board of Corporate Auditors under
the Company Law, it has strengthened
the propriety and effectiveness of its
governance system by establishing theManagement Audit Office, the Compliance Department, and the Ecology
Center. In May 2006, in response to theenforcement of the Company Law, theBoard of Directors resolved a Basic Policy
for Establishing Internal Control System
at Toppan.
Toppan’s governance is geared to maximize the corporate value of the entire

The Directors, Board of Directors, andVarious Meetings
Toppan has 31 directors on its board(as of the end of March 2007). Board
meetings are held monthly and whenever a pressing matter requires action ordeliberation.
Especially important management
themes are examined beforehand inManagement Committees made up of
directors selected by the President &CEO. The goal is to lay weight on managerial efficiency in business judgment.
Directors from the head office and otherdirectors acting as division chiefs come tothese meetings to discuss and examine
measures and policies directly related toCompany business operation from various perspectives.
Corporate Auditors, Board of
Corporate Auditors, and Audit Firm
Toppan has adopted a system of corporate auditors. Three of the five corporate
auditors appointed are external (as ofthe end of March 2007). In addition to
the regular meetings of the Board of
Corporate Auditors, the corporate auditors attend important meetings of theBoard of Directors, meetings of the

Toppan’s Corporate Governance Structure
Meeting of Shareholders
Appointment or
dismissal

Appointment or
dismissal

Appointment or
dismissal

Board of Directors
Auditing

Auditing
Supervising

Selecting or demittingSpecial Committee (for defending
against takeover bids)

President & CEO

Crisis Management Committee
Responding toemergencies

Management Committee
Considers issues prior to board of
directors’ meetings

Business Divisions

Management Audit OfficeObservingandguiding

Relevant head officedivisions, mainly those
responsible for monitoringlaws and regulations, check,evaluate, and improve thelegality and propriety ofoperations in divisions

Compliance Department

Ecology Center

Promotes, verifies, and audits the strict
observance of laws and regulations and theestablishment of ethical business practices
Coordination, supervision, and verificationof Toppan’s environmental activities

Instructing

National Conduct Guidelines
Promotion Supervisors

Other organizations for control

Chief information
security manager

Safety and Health Committee

TPM National Conference

National Eco-protection
Committee

Working together

30

TOPPAN CSR REPORT 2007

ReportingAssistingGuiding

Auditing

Corporate Auditors Office

Audit firmGroup companies

Investigates and audits the legality andappropriateness of operational activities(Board of) Corporate Auditors

Directors in charge
Auditing

Advising and counselingCorporate Governance

Remuneration to Directors andCorporate Auditors
Remuneration to directors is determinedat the Board of Directors by the endorsement of the Meeting of Shareholders.
The amounts remunerated are set basedon considerations of the performance,
responsible roles, and fulfillment of theoperational targets of each director.
In fiscal 2006, the total annual remuneration to directors was 1,197 million
yen and the total annual remuneration tocorporate auditors was 81 million yen.

Strengthening Audit Functions
Internal Audits by the Management
Audit OfficeToppan has established the Management
Audit Office independently from the operating departments. To improve soundness in management, this office reviews
and verifies the propriety of business
operations and compliance with laws andregulations through internal audits conducted at each operational site, plant,
and subsidiary.
The internal audits consist of management audits and operation audits. The
management audit reviews and evaluates
the effectiveness of risk control and theconsistency between business activities
and business goals. The operation audit
reviews and evaluates the current statusof compliance with laws and in-houserules, the mechanisms to prevent improper
practices, and the obstacles to efficiency
or accuracy in daily operations. To make
Toppan an even better company, theoffice feeds back the problems revealedby audits to the relevant departments
and proposes measures for improvements when necessary. The audit results
are reported to the President & CEO anddirectors in charge of relevant departments whenever necessary.

Corporate Governancedetails of the Basic Policies and Measures
for the Management of a Joint-Stock
Company, in line with the results of discussions by the Board of Directors andthe like. As in all years, the independencyof the audit firm and the propriety of thefirm’s audits were closely observed andreviewed. To provide an added assurance,
KPMG AZSA reported and explained thestate of maintenance and operation of
the internal control system under the
Quality Control Standards for Auditing.
Toppan has had KPMG AZSA verify
the propriety of the Company’s accounts
through audits to enhance the reliability
and transparency of the Company’s
financial information.

CSR Management

Management Committee, and discussions on the environment and otherpressing issues. They regularly audit andadvise the head office and the main operational sites and affiliated companies
from a preventive perspective to ensure
the legality and effectiveness of the business activities of the directors and departments. Full compliance with regulations
and Company policy is crucial for smooth
and appropriate management.
Toppan strives to audit effectively
through a three-way audit approach pursued in cooperation with the audit firm
KPMG AZSA & Co. and the Company’s
own internal audit-related departments
such as the Management Audit Office.
From the viewpoint of consolidated
operation management, the Board of
Corporate Auditors of the Toppan Groupalso meets on a regular basis to improvethe effectiveness of the audits by the corporate auditors on a Group-wide basis.
In fiscal 2006, Toppan tightened its
compliance with the Company Law byrevising the Rules for the Board of
Corporate Auditors and observing andreviewing the Company’s progress inestablishing and operating the System toSecure Compliance and the Propriety ofBusiness Operation (an internal control
system). The Company also reviewed theInternal Audits Conducted in Fiscal 2006
Audit Items

Fiscal 2006 Results

Comprehensive Audit
Overall audit of business management,(including management
operation management, and compliance withaudit and operation audit) laws and regulations

5 divisions,
5 domestic subsidiaries,
7 overseas subsidiaries

Management Audit

Follow-up audit of large-scale capital
investments

2 projects

Operation Audit

Information system audit

1 division from the head
office, and related
divisions in the Company

Follow-up Audit

Comprehensive audit of divisions

3 divisions

Audit of domestic subsidiaries

4 subsidiaries

Audit of manufacturing/production/quality
control

3 divisions

TOPPAN CSR REPORT 2007

31

CSR Management

The Management Audit Office performed comprehensive audits (i.e., bothmanagement audits and operation audits)of 17 departments throughout the Groupin fiscal 2006 (in divisions of the head
office, divisions of the Company, and thedomestic and overseas subsidiaries). The
office also conducted an information system audit, two follow-up audits of largescale capital investments, and a series offollow-up audits of 10 departments to reexamine the results of the comprehensive
audits and operation audits on manufacturing management and compliance withlaws and regulations last year.
Toppan will be reinforcing its audits
primarily to evaluate the establishment
and operation of the internal control system required by the Company Law and
the Financial Products Exchange Law infiscal 2007. It will also continue with its
comprehensive audits and follow-up
audits to promote the sound growth of
the Company with social responsibilities
foremost in mind.

Corporate Governance

Auditing and Supervisory
Functions by the ComplianceDepartment and Ecology Center
The Compliance Department createdunder the Legal Affairs Division spearheads efforts throughout the Company
to ensure compliance with laws and regulations and to firmly establish a systemof corporate ethics. Other department
functions include employee education oncompliance with the Conduct Guidelines
and existing regulations, and internal
audits conducted collaboratively withquality assurance departments to improvethe effectiveness of information security
and personal information management
following the acquisition of Privacy Markcertification.
The Ecology Center audits the operational sites to support their environmental efforts. The center requests the sites
to submit Improvement Plans, monitors
the progress and effects of the plans, andcreates mechanisms to unfailingly achieve
improvement goals. The center now
adheres to a stricter set of in-house management standards and evaluates compli-

ance with those standards in addition to
the various environment-related laws andregulations.

Enhancement of Risk
Management System
Toppan manages risk comprehensively
through regular meetings on risk management to avoid risk and minimize thelosses incurred when events at risk occur.
In fiscal 2006, the Company reviewed
and renewed its risk management framework to comply with the provisions of the
newly enacted Company Law.
The Company established a set of
Rules and Other Systems for the Management of the Risk of Loss under the Basic
Policy for Establishing Internal Control
System resolved at the Board of Directors
meeting in May 2006. Under these Rules
and Other Systems, the Company reconfirmed its systematic risk management
framework, a structure under which the
responsibilities for risk management areallotted to specific divisions in the head
office based on the types of risk involved.
Under this framework, the directors in

Risk to be Managed and Relevant Main Divisions at the Head OfficeAccidents involving
products/product liability

Risk to be Managed
Accidents or complaints related to products
Accidents related to main systems
Accidents at the workplace, traffic accidents, and other accidents involving employees

Accidents or disasters
related to Company
operations

Debt-related incidents
Legal problems with orders received
Leakage of personal information or internal confidential information
Accidents or disasters related to fires or explosions
Illegal activity related to the storage of solvents, management of hazardous chemicals, etc.

Defamation, slander, andother criminal damages
Natural disasters
Risk in business management
Unlawful activities related toexternal contracts
Infringement of intellectual
property
Environmental problems
Risk in overseas businessactivities

32

TOPPAN CSR REPORT 2007

Damage to the Company’s internal computer system due to cyber terrorism, illegal access,illegal usage, or leakage of personal information or internal confidential information
Crimes against the Company (threats, kidnapping, theft)Material losses or personal accidents suffered by customers or the Company due toearthquakes, wind or water damage, lightning, etc.
Shareholder derivative lawsuits, hostile takeovers
Violations of the Subcontract Law, illegal activities with business partners

Division
Corporate Manufacturing,Technology & ResearchBusiness Innovation
Personnel & Labor Relations
Finance & Accounting
Legal Affairs
Legal Affairs
Corporate Manufacturing,Technology & Research
Corporate Manufacturing,Technology & ResearchBusiness Innovation
Personnel & Labor Relations
Personnel & Labor Relations
Legal Affairs
Corporate Planning

Infringements of patents, trademarks, copyrights

Legal Affairs

Violations of environmental laws or standards, illegal disposal of industrial waste

Corporate Manufacturing,Technology & ResearchInternational

Product accidents, environmental problems, fires and natural disasters, damage to human or
physical resources caused by international conflicts or terrorism, etc.

Corporate Governance

Responding to the Financial
Products Exchange Law

Management of In-house Rules
and Regulations
Toppan reinforces its internal control byputting in place and managing in-houserules and regulations.
The Company has appointed supervisors overseeing in-house rules and regu-

Corporate Governance

A project team in Toppan has been working since fiscal 2006 to improve the reliability of financial reporting in accordancewith the requirements of the Financial
Products Exchange Law. The team is now
preparing a constitution of internal control policies and formulating basic operational plans.
The next steps for Toppan will be todevelop documentation for evaluating
operating processes and determining thescope of evaluations, in order to establish
a system for the evaluation of internal
control over financial reporting while
testing the state of maintenance andoperation.

lations in the Legal Affairs Division andpersons in charge of in-house rules andregulations in each division of the head
office. These personnel review the inhouse rules and regulations controlled byeach division of the head office twice ayear and determine points to revise, add,
or abolish as needed. In fiscal 2007,
Toppan will systemize the managementof these in-house rules and regulations toestablish a system for accessing the latest
editions at any time.
To promote these efforts by the divisions throughout the Company, Toppan
asked several divisions in fiscal 2006 to
implement this system ahead of the otherdivisions. Thus, the system was used tocheck the actual conditions of the use of
the in-house rules and regulations, and toreview whether specific rules and regulations were actually necessary. Efforts toreinforce internal control will be accelerated through preparations for complete
implementation at all divisions and forthe systemization of the management of
in-house rules and regulations in fiscal
2007.

CSR Management

charge of each relevant division are
responsible for taking measures to prevent, avoid, and correct each type of risk.
Toppan, moreover, has held a weekly
Risk Management Liaison Meeting togive the persons in charge of risk management in each division of the head
office the opportunity to share information. The Company has thus establisheda practical structure to respond to risk.
The Rules on Risk Management havebeen established to resolve mattersregarding risk avoidance and the minimization of loss when an event at risk
occurs. Based on the rule, the Company
sorted out and evaluated possible risks
and examined countermeasures to betaken. The domestic subsidiaries havealso established their own Rules on Risk
Management and sorted out and evaluated possible risks by themselves.
The Company will sort out and evaluate possible risks and formulate countermeasures yearly in the future, while
maintaining the risk management structure, establishing relevant rules, andsorting out and evaluating risk in theoverseas subsidiaries.

Countermeasures against Earthquake Disasters
In fiscal 2005, the Sendai Plant introduced asystem for receiving the Earthquake Early
Warnings issued by the Japan Meteorological
Agency, in order to alleviate earthquake damages preemptively. The Asaka, Ranzan, andTakino Plants have introduced the same system over the last two years.
Toppan held an evacuation drill in the vicinity of the head office to rehearse for the
eventuality of a large-scale inland earthquakein Tokyo. This included simulation drills forconfirmation of disaster conditions, decisionmaking on the necessity for evacuation, andthe establishment of a disaster countermeasure office by the persons in charge of risk
management. The Company briefed employees on actions to be taken during and after
disasters, and strategies for returning home.
These activities are implemented under thebasic plan for countermeasures against earthquake disasters. The Company will reexamine
and revise the basic plan to bring it closer intoalignment with the business continuation
plan.

Parabola antenna to receive radio signals ofEarthquake Early Warnings

Decision-making drill for persons in charge ofrisk management, to help them decide if andwhen evacuations are necessary

Monitor display (in Japanese) of the system forreceiving Earthquake Early Warnings

Information for employees on earthquake disaster response

TOPPAN CSR REPORT 2007

33

CSR Management

Compliance

Compliance Promotion Activities
For a company to fulfill its social responsibilities, every one of its employees must fully comply with laws,
regulations, and corporate ethics in all business areas. Toppan is involved in Group-wide efforts tothoroughly implement its corporate ethics guidelines, the Conduct Guidelines.

Dissemination of the Conduct
Guidelines
Revision of the Conduct Guidelines
Toppan has established a set of Conduct
Guidelines, along with a Corporate
Philosophy and Corporate Creed, as the
Corporate Structure under TOPPANVISION 21. These guidelines express the
behavioral norms on the basis of every
employee’s compliance with laws, regulations, and corporate ethics.
Toppan’s Conduct Guidelines arereviewed each year to keep the behavioral norms for employees in harmony
with the changing circumstances aroundthe Company. The second revision was
implemented in April 2006 to more precisely respond to the various issues
caused by the spread and change of business activities. Thirty-two briefing sessions were held across Japan at the
beginning of fiscal 2006 (April to June) todeepen the understanding of employeeson the revised Conduct Guidelines andthe types of revisions made.

Conduct Guidelines Promotion
Leaders
Toppan introduced a Conduct Guidelines
Promotion Leader system in October
2004 to further establish a compliancesystem and corporate ethics through thefull execution of the Conduct Guidelines
in daily operations. Under this system, ateam of Conduct Guidelines Promotion
Supervisors (the “Supervisors”) and acadre of Leaders (the “Leaders”) havebeen deployed in each Group company
and operational site to promote theConduct Guidelines in the workplace.
Six-hundred and ninety-nine Leaders are
now operating across Japan. With theappointment of 393 new Leaders in fiscal
2006, more employees took on theopportunity to lead. A goal for the future
will be to increase the ratio of female
Leaders from the current 2.2% to 3.0%.
Dissemination Activities by Conduct
Guidelines Promotion Leaders
The Leaders have persistently and steadily
orchestrated dissemination activities tailored to the actual conditions in the workplaces (e.g., the number of employees,

the types of meetings held, and thetiming of meetings) in order to heighten
employee awareness of the Conduct
Guidelines in day-to-day operations.
The National Meeting of Conduct
Guidelines Promotion Supervisors is heldeach October to share and discuss thevarious outstanding activities at the workplaces in the operational sites acrossJapan.
Use of the Conduct Guidelines
Casebook
Toppan published the Conduct Guidelines Casebook, a Q&A style casebook
reporting actual situations that can arisein daily work. To provide a clear image ofthe content of the Conduct Guidelines,
the Leaders read through the cases pertinent to the actual operations at theirworkplaces. The casebook is also used forcompliance education based on employee
rank. In earlier years the Company distributed the casebook only to the Leaders
promoting the Conduct Guidelines. In fiscal 2006, every employee received arevised casebook with as many as 100
case reports.

Structure to Promote the Conduct Guidelines
President & CEO
Director in charge of Conduct Guidelines Promotion
Compliance Department

Divisions of
the head office

Divisions in the Company
Division heads
Conduct Guidelines Promotion Supervisors
The persons in charge of management: Business Strategy Department GM
The persons in charge of education: General Affairs Department GM

Conduct Guidelines
Promotion
Supervisor
Senior General
Manager of Legal
Affairs Division

Conduct Guidelines
Promotion Leadersin sales and planningdepartments

Conduct Guidelines
Promotion Leaders in
administrative
departments

Conduct Guidelines
Promotion Leadersin manufacturing
departments

Conduct Guidelines
Promotion Leaders

Sales promotion
managers, etc.

Managers or
supervisors of eachdepartment

Educational leaders

Managers or
supervisors of eachdepartment

Employees

34

TOPPAN CSR REPORT 2007

Employees

Conduct Guidelines Casebook (in Japanese)

Training for the Conduct Guidelines Promotion
Leaders

Compliance Promotion Activities

Operation of Helpline

Communicator
All employees

Education on Compliance with the
Antitrust Law and Other Laws andRegulations
Toppan held 34 training sessions acrossJapan for 3,140 employees in the sales,planning, sales promotion, purchasing,and production management departments to once again assure full compliance with the newly revised Antitrust Law
enforced from January 2006.

New Announcements on the Toppan
Helpline
When a problem
is not settled

Reporting andconsultation

Superior
Internal reporting(emails or sealed
documents sent using
employees’ real names)

Development in Overseas Group
Companies
Toppan issued a Chinese version of theConduct Guidelines to promote compliance in overseas Group companies. The
Company held briefings to disseminate
the Conduct Guidelines in the Shanghai
and Beijing regions in November andDecember of 2006. A Chinese version of
the Conduct Guidelines Casebooks tailored to local laws and commercial practices was distributed to employees of
local companies.

Compliance Education
Specialist training to promote the Conduct Guidelines was held for 578 Leadersin 31 sessions held across Japan from
December 2006 to March 2007. Following through from the year before, correspondence courses were held for 393
Leaders newly appointed to promote theConduct Guidelines in fiscal 2006.
Toppan also organized Company-widetraining to disseminate the Conduct
Guidelines in rank-based training sessions
for new employees, new supervisors, andnew managerial staff in fiscal 2006.

ComplianceToppan Helpline

Development in Group Companies
In fiscal 2006, the Group worked
together to establish its compliance promotion structure as a part of the establishment of the internal control system.
After the Conduct Guidelines wererevised, steps were taken to have themdisseminated and fully executed in all of
the production subsidiaries. Thirty Group
companies, including major domestic
ones, have established their own Conduct
Guidelines and prepared their own internal reporting systems.

Compliance Education
CSR Management

Toppan has been operating an internalreporting system called the Toppan
Helpline since August 2003. In accordance with the Whistleblower Protection
Act effective as of April 2006, theHelpline guarantees the rights of all persons who find a need to use it. This line is
kept open for use by directors andemployees, as well as temporary staff andpart-time workers. When a legal violation
or injustice is discovered, it is to bereported to superiors for deliberation.
When an employee’s superiors fail to settle a problem, the employee is encouraged to call the Helpline.
In fiscal 2006, the Helpline was used inthree cases. One case involved personnel
administration, another involved actual
job guidance, and the third involved relationships with superiors. All three cases
were strictly investigated and appropriately treated to prevent recurrence.

Expansion of the Compliance
Promotion Structure

Reporting on
progress andresults,
Follow-up
communication

ReceiverPresident & CEO or
Senior Corporate Auditor

The Company reminded employees about the
Toppan Helpline through announcements via
messages from the President & CEO and various booklets in fiscal 2006.
Message from the President & CEO•New Year’s message from the President &CEO•Briefing on new business fields by the President& CEO

Briefing on the Chinese version of the Conduct
Guidelines

Booklets•Revised Conduct Guidelines•Vision book: Creating Toppan’s Future Together•Conduct Guidelines Casebook

Instructions
Reporting

Investigation andCountermeasure
Organizations

The Chinese versions of the Conduct Guidelines
and the Conduct Guidelines Casebook

TOPPAN CSR REPORT 2007

35

CSR Management

Compliance

Information Risk Management
Reciprocating the trust of customers and society, Toppan will not tolerate a single incidence of information
leakage as a result of a careless error. Toppan prevents accidents through intensive education andguidance for all employees and reinforced supervision over manufacturing processes in Group companies
and partner companies alike, and maintains a perfect record.

Integration of Information
Security Management System
and Application of the Integrated
Privacy Mark Certification
Toppan integrated the Rules on Information Security Management and Ruleson the Management of Personal Information on April 1, 2006. Its purpose wasto restructure the in-house regulations
and organizational systems by combining
personal information protection and information security management. Companywide Meetings of the Information Security
Managers were held in April 2006 andFebruary 2007 to sum up the overall policies and review efforts to date. The information security supervisors also gathered
for meetings in June and September in2006 to consult with each other intensively at the working level.
The actual conditions of information
management were surveyed on seven
separate occasions in fiscal 2006 (see thebelow table) to identify problems andtasks to be handled across the Company.
The results of these surveys are used todevelop and continuously implement
measures for improvement. Throughthese efforts, the Company applied in
April 2007 for an integrated Privacy Markcertification covering all of the divisions

that had already acquired Privacy Markcertifications of their own.

Revision of the Information
Security Management Guidebook
Toppan consolidated the Information
Security Management Guidebook andPersonal Information Management Guidebook into a single publication and extensively revised the content to deepen theemployees’ understanding of the information security management rules.
The Company never wants employees
to overlook the various risks of information leakage in their immediate working
environments. The guidebook presentsabundant illustrations (graphics), examples, and procedures focused on key
points organized by chapter to help
employees fully understand the rules intheir everyday works.
The guidebooks and revised rulebooks
were distributed to all employees, andcertain temporary staff members whenneeded. Briefings were held on 40 occasions (one hour each) throughout Japan
in fiscal 2006. Departmental meetings
were also used as occasions to disseminate the rules on information management to all employees.

Unified Network Management
and Central Control of Accessto the Web
The Business Innovation Division is
responsible for managing the security of
network use in Toppan through the unified control of networks and the monitoring of access to the Web.
In response to a request from customers, Toppan investigated the actualuse of outside networks (networks notconnected with the internal LAN) by
Toppan employees during the month ofJune 2006. Based on the results of thatinvestigation, the Business Innovation
Division and the technology departmentsof relevant operational sites collaboratively developed a unified management
system.
Toppan also monitored the actual conditions of direct Web accesses fromwithin Toppan to realize more effective
network management. The results of thismonitoring were used to develop a system for designating web accesses into
the categories of “free access,” “limitedaccess,” “access prohibited,” or “writingprohibited,” based on content classifications of websites. The new system has
been applied since May 2007.

Activities in Fiscal 2006
IMeetings of Information Security Managers: April 19,
2006 and February 16, 2007
IMeetings of Information Security Supervisors: June
7, 2006 and September 20, 2006
IRegular meetings of the Personal Information Management Promotion Committee*: weekly
IVarious surveys of actual conditions at operational
sites•Survey of actual practices for handling personal information in the Web-related business: from May to June
•Survey of actual conditions of use of networks
unconnected with the internal LAN: June
•Regular investigation of use of the Internet data center (excluding TOPICA service): August•Inventory count investigation of access authority:from February•Survey to confirm management conditions in areas
under tight security: February•Survey to confirm management conditions in areas
where personal information is handled: March•Field survey of the aforementioned areas by the
Personal Information Management Promotion Committee: from March to April
IOthers•Interview survey on the handling of personal information in affiliated companies: from September to
October•Briefing of the Information Security Management
Guidebook (the version revised in 2006): from
December

36

TOPPAN CSR REPORT 2007

Restriction of Web access (in Japanese)

The Information Security Management Guidebook(in Japanese)

Briefing on the Information Security Management
Guidebook

Information Risk Management

Reinforcement of the
Manufacturing Process Audit
and Partner Company Audit
Toppan further strengthened its partnercompany audits and the manufacturing
Divisions Granted ISO/IEC 27001
Certification
Division
Commercial
Printing Division

Service Granted Certification
NumberCertification
TOPICA service I102

Securities
Data editing
Printing Division service

IC06J0151

Note: The Information and Communication Division
was formed through a merger of the Securities
Printing Division and the Commercial Printing
Division on April 1, 2007.

No Cases of Personal
Information Leakage

mistake in the handling of personal information, such as an error in delivering a
direct mail.
When a problem occurs, the Personal
Information Management Promotion
Committee and the risk management
structure of the head office assess the situation and discuss the measures to betaken. The Company has the relevant
departments identify the causes behindthe problem and develops measures toprevent recurrence across the Company.
All problems are reported to the Japan
Information Processing Development
Corporation, the organization that grants
the Privacy Mark.
Through those efforts, the Company
has managed to protect information withcomplete reliability. Not a single episodeof information leakage has occurred infiscal 2005 or fiscal 2006.
The Ministry of Economy, Trade andIndustry praised Toppan for its efforts in
a 2006 survey report on the practices ofprivate companies for protecting personal
information. Toppan’s practices were
described in detail to exemplify effective
and efficient activities.

ComplianceToppan has developed Company-wide
activities for acquiring the ISO/IEC 27001:
2005 (JIS Q 27001: 2006) Information
Security Management System (ISMS)
certifications, the global standards in
information security, to meet customer
requests for high-quality security service
in various business fields.
The data center service of the Commercial Printing Division and the dataprocessing service of the Securities
Printing Division (these two divisions are
now consolidated into the newly formed
Information and Communication Division)
have both acquired the certifications. The
Company is working toward acquisitionat three other new services by the end of
fiscal 2007. Numerous relevant divisions
in the head office help these services
obtain their certifications through inhouse consulting and internal audits on
objective viewpoints.

process audits in the departments handling personal information in fiscal 2006.
The Personal Information Management
Promotion Committee* in the head officeaudited manufacturing processes on 15
separate occasions. Six companies werecertified in the audits conducted under
the confidential direct mail certification
system for partner companies, and four
were not. While in-house plants havesucceeded in substantially improving theirsecurity levels, some of the external partner companies are falling behind. Finding
effective ways to close this widening gap
is a challenge for the Company.
Divisions carried out internal audits
in 41 of 52 production subsidiaries. The
results were reported in the Meetings ofInformation Security Managers.
The Company examined affiliated companies from August to October 2006 to
determine which of their departments
were handling personal information. The
Personal Information Management Promotion Committee held interviews andoffered guidance for these departments.

CSR Management

Development of Company-wide
ISO 27001 Certification
Acquiring Activities*Name changed to the Information Security Management Promotion Committee in May 2007

Company rules now require that all
departments report to the head officewhenever an employee makes a carelessInformation Security Management Structure
President & CEO
Chief information security manager(Head of Corporate Planning Division)
Meetings of Information
Security Managers
Conferring andapprovingorganization
within the
Company

Administrative
Office(Legal Affairs
Division)Management
Audit Office
Operating and promoting organization within the Company
Personal Information Management Promotion Committee*
Corporate
Administrative
Legal
Other
Corporate Manufacturing,departments
Affairs
relatedPlanning
Technology &handling WebResearch
relatedDivision
divisions
Division
Divisionbusinesses*Name changed to the Information Security Management Promotion Committee in May 2007

Divisions or the head officeSenior information security managers (Division heads)
Information security managers
Sales
departments(Department
managers)

Administrative
departments(Department
managers)

Web-related
business
departments(Department
managers)

Manufacturing
management
departments(Department
managers)

Internal auditing supervisors
Technology
departments(Department
managers)

Manufacturing
departments(Department
managers)

OthersArea under tight security

TOPPAN CSR REPORT 2007

37

CSR Management

CSR Review Meeting with Stakeholders

CSR Review Meeting
To promote stakeholder communication, Toppan invites an external stakeholder every year to review
the Company’s annual CSR activities and discuss future directions for CSR activities.

CSR Review Meeting
Toppan has held the CSR Review Meetingon a continuous basis since 2005 with
Mr. Hideto Kawakita, an expert on CSR
communication who runs IIHOE, theInternational Institution for Human, Organization and the Earth, as CEO. Toppan’s
CSR promotion members have attended
the meeting for lively exchanges of views.
The third review meeting was held on
April 16, 2007. The participants reviewed
the details of the CSR activities in fiscal
2006 to assess their progress against the
fiscal 2006 targets formulated based on
the six priority themes. The points progressing well and the points requiring
more focused efforts were identified foreach action plan.
The participants identified three areasin which progress was especially swift:
waste reduction, the establishment ofrules on risk management, and theimplementation of supportive actions forfostering the next generation. Remaining

challenges for the future included
Company-wide countermeasures against
earthquake disasters and the formulationof policies for activities for society andculture.
Mr. Kawakita stressed the importanceof further promoting CSR activities by
establishing ultra-long-term targets.
Summaries of the achievements in fiscal 2006 and the targets for fiscal 2007
confirmed at the meeting are listed earlier in this report (see the “Review of CSR
Activities and New Initiatives” on P.28).

Participants
Facilitator: Mr. Hideto Kawakita (IIHOE)
CSR promotion members: Legal Affairs Division,
Ecology Center, Corporate Planning Division,
Personnel & Labor Relations Division, Purchasing
Division, Corporate Manufacturing, Technology &Research Division, Secretary Department, Information and Publicity Division

Mr. Hideto Kawakita
CEO of IIHOE (International Institution for
Human, Organizationand the Earth): After
working as a public
relations and international recruiting specialist at Recruit Co.,
Ltd., Mr. Kawakita served as a secretary in chargeof policy for a member of the Japanese Diet andas the Japanese representative for NGOs involved
in international youth exchanges. He established
IIHOE in 1994 as an organization to provide management support to NPOs and corporations.
http://www.iihoe.com
Details of the Discussion (Abstract)• One remaining challenge for the future will be tolink the basic plan for countermeasures against
earthquake disasters with the business continuation plan, in terms of both the plan contents andimplementation (Legal Affairs Division).
➞When making decisions, the Company should
always aspire to harmonious coexistence withlocal communities (Mr. Kawakita).
• We progressed well in our dialogues with business partners and our in-house cooperation forthe development of the CSR Procurement Standards (Purchasing Division).
➞The products that partner companies deliver
and the stances of these companies are both
important for the development of the CSR
Procurement Standards. The Company should
endeavor to satisfy three procurement standards—manifesto, process, and quality (Mr.
Kawakita).
• Another remaining challenge for the future will
be to protect biodiversity in the core businesses(Ecology Center).
➞Actual examples should be examined: e.g., an
episode involving a specific risk in one department compels the Company to draw attention
to the importance of biodiversity. The Company may be able to find a way to examine
biodiversity in the green spaces of the vast
operational sites (Mr. Kawakita).

Mr. Kawakita has been involved in Toppan’s main
CSR communication activities since Toppan
launched its Environmental Communication Exhibition in 2000. He continues to advise Toppan
based on his understanding of the developmentof Toppan’s CSR activities.

38

TOPPAN CSR REPORT 2007

Social Report

For Customers
Reinforcing Total Quality Assurance -------------------------------------------------------- 40
Technological Development Aimed at Value Creation/
Products and Services Developed with Society in Mind -------- 42
With Business Partners
CSR Promotion in the Supply Chain -------------------------------------------------------- 44
With Communities
Cultural Contributions ------------------------------------------------------------------------------------------ 46
Activities for Contributing to Local Communities----------------------- 48
With Employees
Merit-based Personnel Policies---------------------------------------------------------------------- 50
Fostering and Developing Human Assets ------------------------------------------- 52
Leveraging Diverse Human Assets ------------------------------------------------------------- 54
Realizing a Safe and Secure Working Environment ------------------ 56
With Shareholders and Investors
Improved Transparency and Appropriate
Profit Distribution ------------------------------------------------------------------------------------------------------ 58

Social Report

For Customers

Reinforcing Total Quality Assurance
Toppan promotes Total Quality Assurance not only in its departments directly engaged in manufacturingand quality control, but throughout all of the Company’s processes. Toppan promises Total Quality
Assurance to customers and creates “dedicated products” with the consumers (the end users) always in mind.

The Basic Concept of Toppan’s
Quality Assurance
The products manufactured in Toppan’s
plants bear the brand labels not of
Toppan, but of the customers who usethem for their own products and services.
Every customer requires its own specifications for the products it orders, and every
specification requires a separate approachfor quality assurance.
Reinforcing Total Quality Assurance
Quality assurance is a concern not only
for the departments that produce Toppan
products. The departments involved inmarketing, R&D, planning, design, sales,and delivery are all responsible for assuring the quality of every product for every
customer.
This is why Toppan describes quality
assurance as a “total” activity, setting it
as a top priority for its business management.
A Company-wide campaign to promote “No exceptions in Total Quality
Assurance” (campaign slogan) has been
underway since 2005. Now, in 2007,
Toppan creates “dedicated products”
with the consumers (the end-users)

always in mind by reinforcing its efforts
under the new slogan—“Total Quality
Assurance—our commitment to customers.”
Activities in the Sales and Planning
Departments
The sales departments at Toppan receive
orders and manuscripts from customers,
while the planning departments prepare
proposals and offer suggestions to help
customers. Toppan focuses closely on
training in quality assurance for theemployees engaged in those activities, inrecognition of the roles of their departments as portals for Total Quality
Assurance. The goal is to continuously
increase customer satisfaction in allprocesses up to final delivery.
The sales departments, the front lines
for contacting customers, are expected to
immediately convey customer complaints
to the relevant departments and topromptly respond to the complaints ingood faith.

The Quality Assurance Concept
in the Technology andProduction Departments
Toppan has established its own quality
assurance system to strengthen Total
Quality Assurance in the technology andproduction departments responsible forrealizing the quality required by customers.
When the production departments
receive the ideal production conditions
set by the technology departments, they
use the Total Productive Maintenance(TPM) technique to refine the conditions
towards further improved productivity
and the complete elimination of production defects.
Next, Toppan standardizes the refined
production conditions as rules in order tomaintain them under the ISO 9001 quality management system. Toppan also
strengthens its quality assurance by verifying its management structure throughregular audits to maintain the quality that
customers want and need. The Company
thus improves product quality through its
own quality assurance system based on
integrated TPM and ISO 9001 quality
management.

Total Quality Assurance in Toppan’s Business Activities
Planning

Estimate
Receipt of Order

Poster to disseminate Toppan’s Total Quality
Assurance

40

TOPPAN CSR REPORT 2007

IDo we have a proper grasp of the customer’s demands?
IHave we uncovered needs the customer was unaware of?
IDo we have the technical development capabilities to create new
production methods?

IHave we accurately calculated costs?

Production
Instructions

IHave we issued production instructions that are proper in light ofquality, cost, and delivery requirements?

Production

IHave we delivered the quality the customer demands?

Inspection

IHave we properly inspected the product?

Shipment

IHave we assembled an appropriate shipping system?
IHave we delivered the product on time?

Reinforcing Total Quality Assurance

Improvement Activities by TPM

Improvement by TPMaRootage by ISOa
Thorough coverage through auditing

Required quality

TPM•Further
upgradesISO and Auditing•Dissemination to all
employees throughstandardization and education•Verification of thorough coverage
TPM•Assessment of ideal conditions•Improvement of the conditionsprescribed for eliminating defects in
production

Passage of time
Integration of TPM and ISOa
Improvement in product quality

Audits on Food Container and Filling/
Packing Business
Audit Points•Agreement with customers•Quality assurance system•Management of equipment and inspection
devices•Management of safety and sanitation•Steps to prevent the admixture of different
products•Steps to prevent the admixture of foreign
substances•Steps to prevent the outflow of defective
products•Steps to prevent contamination•Traceability•Security•Education and training•Maintenance of systems and frameworks

Toppan regularly audits its quality assurance activities to verify whether the
points improved through TPM activities
and defect detection are properly standardized in the manufacturing rules,
whether the standardized rules areaccurately observed in manufacturing
processes, and whether there are possibilities for further improvement.
The audits in the food filling and packaging business are somewhat stricter, inlight of the exacting requirements for
quality assurance for safety and health.
These audits cover not only in-houseplants in this business, but also all operational sites, including those of partnercompanies. Toppan has adopted a certified approval system to ensure that operational sites can manufacture only after
receiving the required ratings based on
audit results.
In fiscal 2006, the Company also
audited the departments responsible for
producing IC cards for customers infinancial and transportation industries.
The audits verified appropriate quality
control and responsible quality assurance
practices in those departments.

For Customers

Quality Assurance Cycle in
Manufacturing Departments

Nine operational sites newly acquired theISO 9001 certification in fiscal 2006 as
part of the Company-wide effort to haveall operational sites certified. Once certified, operational sites are subject to routine annual surveillance audits andreassessments once every three years forrenewal. To confirm whether ISO 9001 is
appropriately and effectively put into
practice in each operational site, the head
office carried out 38 operational site
audits in 30 sites in fiscal 2006, in addition to the internal audits carried out inall sites. Nineteen internal auditor training sessions were held to improve thequality of the internal audits. These activities continue to improve Toppan’s quality
control system.

Assuring Quality by Auditing

Social Report

All of Toppan’s plants have developed
and conducted TPM activities, since theintroduction of the activities in 1997.
Toppan has strengthened its competitiveness in quality, cost, and lead times
through concerted activities targetingzero production loss through equipment
modifications and enhanced employee
awareness.
The production departments have had
experienced in-house consultants familiar
with Company-specific technologies run
a guidance system since fiscal 2004. These
consultants direct individual improvement
activities to achieve quality enhancement
and cost reduction mainly through independently initiated maintenance activities, group activities, and disseminationof the 5S basic principles for optimal
manufacturing—seiri (organizing), seiton(tidying), seiso (cleaning), seiketsu (purifying), and shitsuke (nurturing).
Four in-house consultants offeredguidance on improvement activities in 20
plants in fiscal 2006.

Rooting Quality Assurance by
ISO 9001

Basic Stance on Product Safety
Management
Toppan prevents product-related accidents andprotects the health and safety of the users of
its products through the following steps:•Recognize the importance of product safety.
•Promote measures to improve Toppan’s
product safety management.
•Contribute to society through Toppan’s
product safety management.
Established March 1999

Operational Sites Audited•11 in-house plants•6 subsidiaries•20 other production partner companies

TOPPAN CSR REPORT 200741

Social Report

For Customers

Technological Development Aimed at Value Creation/
Products and Services Developed with Society in Mind
Toppan uses the advanced technologies and innovative ideas it has acquired in printing to create various
products, systems, and services with high added value for the satisfaction of future needs. The Company
recognizes its responsibility to promote Universal Design as a mainstay of information and culture.

Technological Development
Aimed at Value Creation
The Technical Research Institute plays acentral role in exploring untapped areasof science by thinking freely and pushing
forward with R&D projects on new products designed to respond to the anticipated needs of the future market. The
Company has successfully developed
numerous products with enhanced environmental benefits and high added value
by offering technical advantages and systemized techniques. Development efforts
are guided by analysis to grasp the latest
trends in the market and customers inclose cooperation with sales and promotion departments.
In the area of production technology,
on the other hand, Toppan endeavors to
improve quality, shorten lead times, andreduce costs by automating productionlines, saving labor and energy, and modifying processes in close collaboration
with production departments.
Next-generation Products Developed
by Technology Evolved from Printing
Advances in technology acquired byprinting, surface processing, and theapplication of prepress technology tomicrofabrication have led to the development of next-generation products suchas color filters for large liquid crystal displays (LCDs), full-color organic Electro
Luminescent (EL) displays, and medical
chips for examinations.
Industry-Government-Academia
Alliance
Toppan’s cooperative structures withinternal R&D departments and various
external research institutes have beenstrengthened to promote technology
development activities. In addition to
engaging in national collaborative projects (including contract research sponsored by the New Energy and Industrial
Technology Development Organization,
an independent administrative agency),
Toppan researchers collaborate withmany universities in Japan (including the
University of Tokyo, the Tokyo Instituteof Technology, Tohoku University, andYamagata University).
Toppan has also been active in technical cooperation with domestic and overseas companies to provide products,
systems, and services with high added
value in a wide range of fields.

Toppan’s Map of Next-generation Product Technologies

42

TOPPAN CSR REPORT 2007

Data Processing System
Technology

IC Cards/Tags

Semiconductor Design andAssembly

Ball SAW
Sensors

Microfabrication
Technology

Full-color Organic
EL Displays

Thin-film Formation andCoating Technology

45nm
Photomasks

Formation(injection, mold, etc.) andCutting Technology

Printing Technology

SNP Chips

Development of SNP Chips for
Medical Facilities
Toppan began its first forays into biotechnology in 1999 by establishing a set ofresearch themes in several branches ofthe life sciences expected to rapidly
develop. The Company now cooperates
with entities such as RIKEN, an independent administrative research institution,
to develop SNP chips for genetic analyses
in hospitals and clinics.
Toward Tailored Medical Care
SNP chips are used for bio-molecularanalyses as part of a service called tailored medical care*. The chips incorporate printing, microfabrication, and coating
technologies developed by Toppan.
These unique chips are capable ofidentifying differences in individual genes.
With this information, a doctor can moreaccurately assess whether a drug will
have a favorable or adverse effect on agiven patient and plan out tailored treatment strategies.
If adopted on a widespread basis, tailored medical care with SNP chips will
reduce adverse drug effects and excessive
dosing. This, in turn, will help to limit the*Tailored medical care: When patients undergo
tailored medical care, they receive optimal individualized therapies and prophylactic regimens
based on their genetic profiles. A close analogy
would be a ready-to-wear garment that fits one
person snugly and another loosely. When twopatients with the same symptom receive thesame drug, they may respond differently, withadverse effects for example, because of slightdifferences in their genetic profiles. A physician
practicing tailored medical care brings about the
optimal response for a patient by identifying thepatient’s genetic predispositions, just as a tailor
fashions the perfect-fitting suit for a customer
by taking exact measurements.

Technological Development Aimed at Value Creation/Products and Services Developed with Society in Mind

ever-rising expenses for medical care.
Toppan asked collaborating medical
institutions to conduct functional tests forpilot SNP chips and proceeded with thedevelopment of commercial SNP chips
applicable for actual treatments in hospitals and clinics in fiscal 2006. Reinforced
development efforts in fiscal 2007 are
expected to lead to the commercial useof SNP chips soon.
Toppan intends to explore further
applications for SNP chips as it works toestablish tailored medical care with SNP
chips in Japan.

Challenges in Universal Design
Toppan always devises and provides
products and services for the information
communication industry based on Universal Design (UD) principles in considerationof the user. The Company has introduced
UD to bring about improvements in various fields of communication between
client companies and their own customers.
Toppan thinks of UD as a corporatesocial responsibility. Through its workwith UD, the Company creates fulfilling
lifestyles and coexists with society by providing products and services in full consideration of as many people as possible.

For Customers

An SNP chip loaded with a reagent in advance tocheck reaction with blood

Social Report

Deepening the Awareness of
UD in Society
Toppan held the Design for You Exhibition in PLAZA21 of the Toppan Koishikawa Building as a forum to think about
UD together with customers and todeepen the awareness of UD in society.
UD concepts, examples of UD practices
in government agencies and advanced
companies, and the UD efforts of companies in the Toppan Group were presented. The exhibition was well received
in various quarters.

Efforts in Packaging
Toppan’s packaging segment has reaped
great results from its work on UD at theforefront of the packaging industry. Two
packaging series inspired by the principlesof UD are now available—UD FUNCTION
and UD SELECTION. The packages of UD
FUNCTION offer user-friendly functions
developed based on the knowledge, creativity, and technical and developmental
capabilities in UD garnered by Toppan
over the last decade and a half. The UDfriendly packages of UD SELECTION are
designed in consideration of the entire
product life cycle, from purchase, use,and storage to disposal. Both series drew
praise from the public at TOKYO PACK
2006. Henceforth Toppan will be designing packages with more ergonomic
designs for the convenience and satisfaction of users.

UD-friendly paper containers

Design for You Exhibition

UD-friendly flexible packaging materials and plastic
containers

TOPPAN CSR REPORT 200743

Social Report

With Business Partners

CSR Promotion in the Supply Chain
CSR activities are promoted throughout the entire Toppan supply chain in cooperation with business
partners. Toppan will always deal fairly and appropriately with its business partners, the companies
on which it depends for ongoing operation.

Promotion of CSR Procurement
Toppan promotes CSR procurement under
the Group’s CSR Procurement Guidelines.
The last set of Procurement Guidelines
from 2004 were revised and reissued
as the Toppan Group CSR Procurement
Guidelines in May 2007. These guidelines
consist of the Basic Procurement Policy
and the CSR Procurement Standards. The
Basic Procurement Policy is the conceptual platform for Toppan’s procurement
activities. Toppan performs its day-to-day
procurement operations in keeping withthe following principles.
•Fairness/propriety•Compliance•Information security•Environmental consideration•Pursuit of QCD•Promotion/development of CSR
The Company incorporates the Conduct Guidelines, the Purchasing Rules,
and the Subcontract Law Compliance
Manual in training for all employees
involved in the procurement of equip-

ment and materials and the outsourcingof production and processing, in order todeepen their understanding of the Basic
Procurement Policy.

Formulation of CSR
Procurement Standards
Toppan has also established a set of CSR
Procurement Standards to extend CSR
principles throughout the entire supply
chain. The standards stipulate the requirements to be satisfied by every business
partner involved in material and equipment provision, production, and processing for Toppan. There are 20 standards
categorized into eight separate areas. All
standards conform with the basic principles of Toppan’s Conduct Guidelines andthe CSR terms established by the Japan
Electronics and Information Technology
Industries Association (JEITA), in addition
to the requirements for Quality, Cost,and Delivery (QCD). Toppan asks its business partners not only to seek cost performance, but also to pay attention tosociety and the environment. Green
Procurement is one of the importantgoals of the CSR Procurement Standards.
Before formulating the CSR Procurement Standards, Toppan met with its
main business partners individually forinterviews and discussion on the directionality, criteria, feasibility, and proprietyof CSR procurement operations.
The Company also held in-house briefing sessions in the departments engaged
in procurement to enlighten employees
on issues concerning CSR procurement
and the position of CSR procurement
among the Company’s CSR activities.

Management of Chemical
Substances
Toppan has tightened the managementof chemical materials in the packaging
and electronics businesses by establishingseparate Green Procurement standards
appropriate for each business.
To promote Green Procurement forchemical substances, Toppan applies a

Toppan Group CSR Procurement Guidelines (revised from the Procurement Guidelines in May 2007)
Basic Procurement Policy
OWe impartially offer opportunities to all suppliers.
OWe comply with all domestic and overseas legislation and perform fairbusiness dealings based on corporate ethics.
OWe strictly control the information obtained through our procurement
activities.
CSR Procurement Standards
1. Basic human rights(1) The company respects basic human rights.
(2) The company does not carry out unjust discrimination in the treatment and employment of employees.
2. Public order, compliance with laws, fair business activities(3) The company does not carry out inappropriate profit sharing or receipts.
(4) The company does not have dealings with any antisocial individual
or group.
(5) The company complies with laws, regulations, and government notices
applicable to business activities, such as company laws, antitrust laws,
subcontracting laws, labor-related legislation, and environment-related
legislation.
(6) The company complies with laws protecting those who disclose
information in the public interest, and it protects the rights of those
who report internally.
(7) The company complies with legislation related to exports and withthe laws of the countries and regions in which it operates.
(8) The company does not allow child labor or forced labor.
(9) The company does not infringe intellectual property rights such as
patents, copyrights, and trademarks.
3. Management and disclosure of information(10) The company carries out appropriate management of confidential
information and personal information obtained through its dealings.
(11) The company strives to make timely and appropriate disclosure of
information relating to matters such as the details of business activities, quality, and product safety.

44

TOPPAN CSR REPORT 2007

OWe give full consideration to impacts on the environment.
OWe pursue QCD (Quality, Cost, Delivery) in order to meet the needs ofthe market.
OWe implement CSR initiatives throughout the entire supply chain.

4. The environment and safety(12) The company strives to use raw materials and components with a
low impact on the environment.
(13) The company strives to devise processes with a low impact on theenvironment for manufacturing and processing.
(14) The company carries out appropriate management of chemical
substances specified by Toppan.
(15) The company carries out appropriate disposal of industrial waste.
(16) The company strives to prevent work-related accidents and create asafe and clean workplace, and also works to ensure the safety of
employees in an emergency.
5. Improving quality(17) The company meets the standards for quality required by Toppan
and strives to improve quality.
6. Appropriate pricing(18) The company provides products or services at a price that is competitive in the market.
7. Stable supply(19) The company meets stipulated delivery dates and supplies items
safely and reliably.
8. Social contributions(20) The company engages in contributions to society.

CSR Promotion in the Supply Chain

set of Standards for the Chemical Components of Raw Materials under the CSR
Procurement Standards. The Company
has made these unified standards for thewhole Company by designating controlled and prohibited substances basedon the 24 groups of substances designated by the Japan Green Procurement
Survey Standardization Initiative (JGPSSI).
Toppan intends to manage chemical procurement in its packaging and electronics
businesses through these standards andother criteria for controlling chemical
substances used in each business.

CSR Promotion in Cooperation
with Business Partners

Compliance with
the Subcontract Law

One important factor in building a recycling-oriented society is to select environmentally-friendly products preferentially.
In April 2002, Toppan introduced a
Green Procurement system that conforms
to the Green Standards for Offset
Printing Services established by the Japan
Federation of Printing Industries. Toppan’sachievement ratios under these standards
were 19.8%* for paper and 97.1% for
ink in fiscal 2006. After the revisionof the Green Standards by the Japan
Federation of Printing Industries in March
2006, the Company revised Toppan’sGreen Procurement Standards (➞P.80).
Toppan adopted a Basic Policy ofGreen Purchasing for its office operationsin January 1999 and launched a Company-wide Green Purchasing initiative.
The Company selects products that meetin-house Green Purchasing standards andpurchases them on a continuous basis.

With Business Partners

The purchase orders sent out to business
partners from the planning, production
management, and purchasing departments are collected and reviewed by the
Toppan head office each month. The
review this year confirmed that there were
no nonconformities with the Subcontract
Law. As in fiscal 2005, there were nocompliance problems in fiscal 2006.

Green Procurement and Green
Purchasing

Social Report

The Toppan Group CSR Procurement
Guidelines are posted on the Company’s
website in both Japanese and English.
Toppan has held briefings on the guidelines with all of its major business partners, including overseas manufacturers.
The Company will be briefing all of its
operational sites one by one in the coming months. These briefings are not only
for helping partners understand Toppan’s
basic policies and standards on CSR procurement, but also for hearing the opin-

ions and requests of partners directly. The
goal is to mutually improve corporate
value within and outside the Group bypromoting CSR cooperatively.
Toppan monitors compliance with the
CSR Procurement Standards by sending
questionnaire surveys to its business partners. When field surveys and deeper
discussions seem necessary, Toppan personnel visit business partners in person.
Another way to advance dialogues toward
solutions is to feed back the results of thepartner surveys.
Toppan will soon be installing a
Business Partner Hotline, a portal forreceiving reports from business partners.

Green Purchasing Network (GPN)A nationwide network founded in 1996 to promote Green Purchasing in Japan. As of January 17,
2007, the network comprised 2,879 organizations(2,295 companies, 300 government institutions,and 284 private organizations). The network
announced its Purchasing Guidelines for Offset
Printing Services (GPN-GL14) in December 2001.

CSR Procurement Guidelines
http://www.toppan.co.jp/english/csr/policy.html

Briefing sessions on CSR procurement for business
partners*According to the Report on the Activities of theUsed Paper Recycling Committee issued by theJapan Federation of Printing Industries in March
2007, the actual rate of used paper reutilization
was 27%, while the target rate was 35%.

TOPPAN CSR REPORT 200745

Social Report

With Communities

Cultural Contributions
Toppan operates cultural facilities and proactively organizes other various cultural activities
to contribute to the development of culture and art and the growth of the printing industry.

As a Mainstay of Information
and CultureEver since its invention, printing has contributed to the development of culture
and art through the conveyance of
information. The information conveyed
through printing can amaze and leave
deep impressions. Activities to contributeto society and culture help Toppan live up
to its identity “as a mainstay of information and culture” under the Corporate
Philosophy.
The Company organizes cultural activities led by Toppan Hall and the Printing
Museum, Tokyo, two cultural facilities
annexed to the Toppan Koishikawa Building to commemorate the Company’s
100th anniversary in 2000.
Group companies such as Tokyo
Shoseki Co., Ltd. (a publisher of school
textbooks) and froebel-kan co., ltd. (apublisher of children’s and illustrated
books) have also engaged in cultural contribution activities. Toppan is eager tocontribute to the growth of not only theGroup, but the entire printing industry.

Activities to Contributeto Culture
Printing Museum
The Printing Museum, Tokyo pursues
activities toward the establishment of a
new academia, the study of printing culture, in the conviction that printing itself
has cultural value. More than 190,000
visitors have come to the museum so far.
The public can visit the General Exhibition Zone in the Main Exhibition Roomyear round, as well as temporary exhibitions held several times annually. The
museum also includes the Printing Workshop, VR (Virtual Reality) Theater, specialized library, and museum shop. The
Printing Workshop, an area for educationand training, has been used by over 150
institutions and organizations, including
companies, technical colleges, and elementary schools.
The museum held two temporary exhibitions in fiscal 2006—War and Image:
WWI Propaganda Posters; and The Dawnof Modern Printing: Stanhope and theIndustrial Revolution. The first exhibition
expounded the details of printing technology during World War I in the U.S.,
when the lithographic prints for posters

evolved from hand-drawn techniques tophotomechanical processes. It also introduced American society and poster artists
during the wartime era. The second exhibition traced the history of printing technology from the invention of Gutenberg’s
printing press onward.
Toppan Hall
Toppan Hall is a classical concert hall with
408 seats, designed for the sharing ofimpressions.
A wide range of performances havebeen held there, from recitals by worldfamous musicians to the Lunchtime
Concerts and Espoir series for the discovery and fosterage of talented youth.
Special programs such as Mozart Zyklus
and String Duo Series stirred critical interest in fiscal 2006, and the Final Concerts
by the oboist Fumiaki Miyamoto attracted
great public attention. Toppan Hall is also
lent out for the Music Competition ofJapan and local elementary schools.
Many people use the hall each year (morethan 260,000 people since the hall was
opened).

Cultural Facilities Annexed to the Toppan Koishikawa Building

1–21F
Office floor
Printing Museum: Library

Toppan Hall

1F

Printing Museum: Prologue
Exhibition Zone

Printing Museum: Main
Exhibition Room (General
Exhibition Zone)

B1F
Printing Museum: VR Theater

46

TOPPAN CSR REPORT 2007

Printing Museum: Printing
WorkshopCultural Contributions

For the Development of
the Printing Industry

String Duo Series
Thomas Zehetmair & Ruth Killius

Central Contest for Book Report Drawings

Japan’s Nursery Rhyme Culture Award

Kanatomi Konzert, a concert by Kanatomi Primary
School in Bunkyo Ward, Tokyo

The Textbook Library

Froebel Boys Choir

Toppan has always striven to develop theprinting industry and promote information culture in Japan as the industry
leader.
From 1995 to May 2007, Toppan
Chairman & Representative Director
Hiromichi Fujita spearheaded various
efforts to develop the industry throughhis activities as the chairman of the Japan
Federation of Printing Industries.
In fiscal 2006, the standard proof-correction marks for printing in Japan wererevised to enable digital composition
by computers. The Japan Federation of
Printing Industries was deeply committed
to this effort, the first full-fledged revisionof an industry standard in four decades.
The federation issued a list of the revised
proof-correction marks and held seminars
on correct usage of the marks and proper
understanding of Kanji (Chinese characters) and character types.
The federation has also establishedthe Integrated Environmental Printing
Recognition System, a system to facilitate
concerted efforts for environmental conservation by the printing industry.

TOPPAN CSR REPORT 2007

With Communities

Contributions to Society throughMusic
In 1959, froebel-kan co., ltd., a publisher
of children’s and illustrated books, organized the Froebel Boys Choir as a socialand cultural project. Boys choirs are relatively rare in Japan. As many as 1,000
boys have passed through the ranks ofthe choir since its founding.
The choir now has about 90 young
vocalists, ranging from 3-year olds tojunior high-school students. The boys
carry out wide-ranging activities, including appearances on television and commercials. Their annual concerts withperformances of the movie songs ofAnpan Man, the popular animation series
for kids, have always commanded astrong following.
Tokyo Shoseki Co., Ltd. is a joint sponsor of the Association of Children’s
Songwriters in Japan’s Nursery Rhyme
Culture Award. Tokyo Shoseki is working
to popularize children’s songs as a meansof handing over Japanese culture to thecoming generation.

Social Report

Supporting and Sustaining Education
CultureToppan works with The Mainichi Newspapers Co., Ltd. and the Japan School
Library Association as a cosponsor of
the Central Contest for Book Report
Drawings, an annual contest to encourage students to express their impressionsof books by drawing. The judges of
the 18th competition in 2006 received
521,985 picture entries from 7,385
schools.
Tokyo Shoseki Co., Ltd. opened The
Textbook Library, Japan’s first repositoryof school textbooks, back in 1936. Thislibrary now houses about 150,000 volumes, from the newest textbooks to historical literature and documents from theEdo Period. The entire collection can be
freely browsed at no charge. The Tosho
Education Award was established in 1984
with the aim of contributing to education. The library selects the best essay onteaching from submissions and chooses
winners every year.

47

Social Report

With Communities

Activities for Contributing to Local Communities
Wherever Toppan operates around the globe, its operational sites fulfill their responsibilities as
members of communities and respond to expectations as corporate citizens coexisting with othersin the communities.

Harmony with Local
Communities
Toppan believes every operational sitemust fulfill its responsibilities as a member of a community and respond to
expectations in building better relationships as a corporate citizen coexistingwith others in the community. Toppan
contributes to and communicates withlocal communities, mainly through activities in which its own employees participate.
Personnel from every operational site
beautify the environments around theplants, hold blood donation drives, andproactively participate and support local
events. The operational sites offer plant
tours and hold practical training sessions
to nurture the next generation and assist
with employment support. The sites also
open their facilities as venues for local
residents, organize initiatives to prevent
crime and disasters, and undertake various other activities.
Community Cleanup, Beautification,
and Blood Donation Drives
Toppan employees beautify local environments by weeding shrubbery, caring forpine forests, and cleaning up publicroads, parks, shopping streets, and rivers
around the operational sites.
In response to a call from the Mie prefectural government, volunteers from theMie Plant have cleared up domestic litter
illegally dumped along the national roads
for the last two years. Employees fromthe Niigata Plant, meanwhile, haveweeded the revetment area at a nearby
river and dredged up mud from theriverbed.
In addition to the various other initiatives at the operational sites, 8,495 people at 31 operational sites throughout
Japan took part in cleanup and beautification activities and 2,562 people at 29
operational sites participated in blood
donation drives in fiscal 2006 (on acumulative basis).
Plant Tours and Support for Learning
outside School
Toppan’s operational sites welcome local
residents for plant tours and elementaryand junior high school students for onsite tours for the nurturance of the next
generation. Toppan received 1,471 visitors at 19 operational sites in fiscal 2006.
Cooperating with a learning-through-work program held at a nearby juniorhigh school, the Shiga Plant welcomed
second-year students to experience documentation and data entry with personal
computers.
Employment Support
Toppan provides employment support byoffering students internships to help
them glean a practical understanding of
the printing industry and an awareness of
the importance of work. At the Toppan
Idea Center Nishinihon Co., Ltd. in
Fukuoka Prefecture, university students
from Japan and overseas learned andpracticed techniques as directors and digital photographers for the planning andproduction of printed materials.
Students from schools for the disabled
have taken part in plant tours and practical training sessions rich with opportunities for human exchange and recreation
with Toppan personnel. In developing
practical drills for these students in theplants, Toppan fully considers the capabilities of the students as individuals andappropriately prepares safe and secureenvironments. Employees conversant insign language assist with the drills, forexample.

Toppan’s Activities for Contributing to Local Communities

Activities to Connect Toppan
with Local Communities
IMeetings with communities
to report and explain
IPlant tours, practical training
IEnvironmental cleanup andbeautification activities
IOpening operational sitefacilities to local communities

Neighborhood cleanups during new employee
training

TOPPAN

Local Communities
IDisaster prevention andanticrime activities

Operational sites,
plants

ILocal events
IExchanges with local
community associations
IBlood donation drives andthe likeRiver cleaning

48

TOPPAN CSR REPORT 2007

Activities for Contributing to Local Communities

Initiatives Overseas

come people from their local communities for plant tours, while site personnel
clean up the surrounding environment,take part in local volunteering activities,
hold blood donation drives, make charitable donations, and participate in andsupport gatherings and events to promote
the understanding of different cultures.
Initiatives in Asia
P.T. Toppan Printing Indonesia and Siam
Toppan Packaging Co., Ltd., Toppan’sbases in Indonesia and Thailand, havedonated stationery, school bags, andother everyday items to children from elementary schools and orphanages to assist
them with their classroom work.
In addition, 74 employees from Siam
Toppan Packaging have cooperated withthe local Red Cross Society in blood
donation drives.
Initiatives in the U.S. and Europe
Toppan Photomasks, Inc. operates various bases throughout the U.S. andEurope. Its Santa Clara (U.S.) manufacturing site has donated to the Second
Harvest Food Bank, a nonprofit providerof food to those in need. Employee volunteers have participated in campaigns

Informal session (facility tour)

Donating stationery and everyday items (P.T.
Toppan Printing Indonesia)

With Communities

Operational sites in the U.S., Europe, andAsia contribute locally and communicate
with their communities in the same ways
as the operational sites in Japan. The
basic policy behind their local initiatives is
to carry out community-based activities infull consideration of local laws, customs,
and cultures. The operational sites wel-with the Food Bank to distribute food.
Toppan Photomasks Germany GmbH(Dresden), meanwhile, has donated to anorganization that supports the mentallydisabled and has worked with that organization to offer employment opportunities to people with mental disabilities.
At Toppan Interamerica Inc. in the U.S.,
15 employee volunteers helped organize
Special Olympics events for children withintellectual disabilities.

Social Report

Opening Operational Sites toLocal Communities
The Niigata, Asaka, Itabashi, Sagamihara,
Shiga, and Osaka Ebie Plants open their
gymnasiums to neighboring residents,
community groups, and school clubs.
Other operational sites loan out their
meeting rooms and dining facilities asvenues for local meetings. The TechnicalResearch Institute and Sagamihara Plant
open up their parking lots to people visiting nearby grounds and those attending
special events at neighboring kindergartens. The Koishikawa Site lets the residents of a neighboring condominium use
its parking lot as a substitute for theirbasement parking when the risk of overflow from the Kanda River rises during
typhoons.

Donating stationery and everyday items (Siam
Toppan Packaging)

Monetary Donations to Areas
Struck by the Earthquake inCentral Java, Indonesia
Toppan donated money through the Japanese
Red Cross Society for recovery assistance inareas affected by the devastating earthquakeof May 2006 in Central Java, Indonesia.
Plant tour for elementary school students

Participating in local events

TOPPAN CSR REPORT 200749

Social Report

With Employees

Merit-based Personnel Policies
Toppan values its employees as important assets (“human assets”) for the Company. In line with thepersonnel policies set to achieve TOPPAN VISION 21, the Company extends full support to its personnel toencourage their highly motivated, vigorous, and earnest efforts.

Basic Concept of Human Assets
Toppan values its employees as precious
company assets and recognizes how
much it depends on its people. From thisperspective, Toppan supports the motivated, vigorous, and earnest work of the
Toppan workforce.
Toppan keenly understands the importance of a motivation to take on new
challenges, a spirit to work vigorouslywith a healthy body and mind, and an
earnest commitment to follow throughon tasks to completion. The Company
believes that its people must work vigorously, earnestly, and with strong motivation if they are to fully show their true
abilities.
Toppan strives to draw out andenhance the abilities and organizational
powers of every employee through thestages of hiring, appointment, training,
promotion, and treatment. To do so, theCompany places importance on communication between superiors and subordinates under mutual trust. The Company
pursues its goals with well-defined
visions, formulates structures to strictly
and appropriately enforce rewards andNumber of Employees

Fiscal 2004
Fiscal 2005
Fiscal 2006

Male

Personnel Treatment System

penalties, and works to establish an open
and fair environment.

Toppan has formulated a personnel treatment system based on the competence
and achievement of each employee. The
system is designed to encourage employees to fully exert their diverse abilities andskills.

Basic Thinking on Personnel Policies
Toppan recognizes that it can build thetrust and respect of society, customers,
and other stakeholders by encouraging
all of its employees to pursue the realization of TOPPAN VISION 21 through conduct of high value. In keeping with thisconviction, the Company’s personnel
policies for hiring, appointment, training,
promotion, and treatment are all basedon conduct of high value and abilities
and skills.
The term “conduct of high value”
describes the concrete activities that go
into the realization of the Corporate
Philosophy and Corporate Creed. “Abilities
and skills,” meanwhile, are indispensable
to the practice of valuable conduct. Jobspecific assessment items are set forsales, planning, manufacturing, technology, business administration, andresearch and development within theframework of abilities and skills. Businessadministration is further divided into
finance, legal affairs, purchasing, personnel, and labor.

Revision of the Managerial Staff
Treatment System
Managerial staff at Toppan are treatedcommensurately with their achievements
as evaluated under a newly introduced
system. The evaluations focus on efforts
to encourage conduct of high value forthe realization of TOPPAN VISION 21,
and overall efforts to improve businessperformance from the stages of goal setting to the achievement of results. Fromfiscal 2007, the system for treating managerial staff will place more weight on
job roles within Toppan than on capabilities to perform jobs.
Functional Classification
Toppan has operated a multi-track job
function framework for non-managerial
staff since fiscal 2004. Employees in the

As of March 31 each fiscal year; the number of temporary staff is the average number from January to March.

Number of Management
Executives
Class
30
1,844

Supervisor
2,166

Total Numberof Employees
9,679

AverageTenure16.3

Average Age
38.7

Female

1

2

44

869

10.0

31.7

Male

30

1,889

2,106

9,693

16.0

39.1

Female

1

11

56

889

9.5

31.6

Male

30

1,796

2,173

9,964

15.8

39.0

Female

1

15

69

935

9.4

31.6

Recruits
Sales,
Male
88
142
178
Regularrecruitment of administration, Female
32
43
66
etc.
new university
Male
166
170
117
Technical
graduates andpost-graduates
Female33
34
36
New graduates from
Male
99
181
151
high schools and National
Female23
28
25Colleges of Technology
Total number of regular recruits
392(22.4%)
594(17.7%)
626(20.3%)(percent female)
Mid-career recruitment of
135
150
119
experienced personnel

TOPPAN CSR REPORT 2007

Part-timeWorkers

TemporaryStaff

10,548893

915

10,582

1,103

1,142

10,899

1,163

1,851

Reasons for Leaving
Fiscal 2004

Fiscal 2005

Fiscal 2006

Personal reasons

284

284

320

Retirement

109

56

117

Requested by the company

0

0

0

Accession to directorship

8

5

3

401

345

440

3.5%

3.1%

3.9%

Fiscal 2005 Fiscal 2006 Fiscal 2007

50

Sum Total of
Employees

Total
Turnover rate

Merit-based Personnel Policies

with their feedback interviews.
The questionnaire results are reported
to management and used for comprehending and reviewing the operation of
the personnel system. Management
seeks to develop and operate the personnel system more effectively in cooperation with employees at all times.
Toppan has introduced a union shop
system. In principle, all non-managerial
employees are members of the labor
union.

Proper Operation of the Personnel
Evaluation System in Cooperation
with the Labor Union
The labor union conducts questionnaire
surveys of employees to assess how
thoroughly the Company informs its
employees of the evaluation criteria the
Company uses to set annual allowancesand bonuses. The questionnaire gauges
the status of opinion exchanges withsuperiors on the alignment of job goals,
the level of achievement, issues to besolved or improved in the future, and thedegree to which employees are satisfied

Basic Thinking on the Personnel Treatment System

With Employees

Goal Setting and Transparency in
Evaluation
Toppan applies a management-by-objective (MBO) system for managerial staff.
Goals are set, midterm goals are modified, and results are evaluated basedon conduct of high value according tothree criteria of operating performance:
achievement, conduct, and competence/skill. Toppan emphasizes sufficient communication with superiors during theprocess as needed for goal sharing, transparency in evaluation, and enhanced
satisfaction.
In working with non-managerial staff,
Toppan feeds back evaluation results toemployees individually and works within
a carefully designed framework to sharecommon recognition on achievements,
unachieved tasks, and future goals.

Social Report

sales, planning, technology, research,and business administration departments
are evaluated under a five-grade scheme.
Employees in the manufacturing departments, meanwhile, are working under aneight-grade scheme. As a step forward,a wage system tailored to each grade
scheme has been introduced in this framework since fiscal 2005. With this revision,differences between actual task performance and achievement are reflected in
the determinations of wages and otherallowances.
In fiscal 2006, the Company drasticallyrenewed its system for reviewing the performance and making promotion decisions. New criteria were established
for the selection of capable employees
for early promotion. Interviews, tests
on management aptitude, and task
announcements were also commenced
to tighten the selection process.

Average Annual Salary*

Process management from goal setting to the improvement of job performance
Individual
Accomplishments

Fiscal 2004

6,890,638 yen

Fiscal 2005

6,957,713 yen

Fiscal 2006

6,751,069 yen*Including annual bonus and nonstandard wages
Mediumterm plan

Term plan

Department
plan

Goal setting

TOPPANVISION 21
Corporate
Philosophy
Corporate
Creed

Concept of “Conduct of High Value”
IEarning the trust of customers

Conduct
Guidelines

IStrengthening business foundations

Business
Fields

IStrengthening organization

ActionIFulfilling corporate responsibility
IImproving corporate value
Performance
improvement

TOPPAN CSR REPORT 200751

Social Report

With Employees

Fostering and Developing Human Assets
Human assets are developed and fostered at Toppan based on conduct of high value and abilities and skills
to develop individuals and the Company as a whole.

Concept of Human Asset
Development and Fosterage(group) courses, the Challenge School(correspondence learning programs), anda video library with a collection of morethan 700 video titles.
In addition to the educational programs on CSR activities, personal information protection, and sales available
through e-learning, educational seminars
on the promotion of CSR activities are
conducted in rank-based training. The
preparatory course for DTP experts certificated by the Japan Association ofGraphic Arts Technology (JAGAT), meanwhile, offers chances to acquire enhanced
individual competencies and skills, mainlyfor employees from the design, prepress,
and sales departments (331 employees
have acquired the certification so far.)

Toppan’s rank-based training helps
employees learn and understand theroles, responsibilities, and obligations ofeach rank, and appreciate and practiceconduct of high value. The Company alsooffers a variety of training programs systematically to encourage employees toacquire the abilities and skills required byeach division, department, and workplace. Employees participating in rankbased and departmental training sessions
act as facilitators or trainers to lead andtrain others in styles closely attuned toactual business situations.
A cumulative total of 1,795 employees
participated in rank-based training programs sponsored by the head officelast year. A cumulative total of 24,140,
meanwhile, took part in various training
programs held by divisions such as rankbased and departmental trainings andselective or optional trainings. The Toppan
Business School, meanwhile, offered
training to 4,619 employees cumulatively
in the course of the year. The curricula atthis school are customizable to employee
career designs and include optional

Coordination between Development
and Fosterage
Toppan rotates employees within andbetween divisions. The objectives are tofoster human assets capable of dealing
with all of Toppan’s products and to fulfill the Company-wide priority themes:
integrated strength enhancement andTotal Quality Assurance. Toppan also
implemented a horizontal rotation among
different lines of work to cultivate versa-

tile skill sets. Some newly hired employees were rotated between divisions inTokyo and local cities in Japan to balance
their knowledge and expand the scope of
their skills.
Rank-based training was conducted
for new employees, mid-level staff, anddepartment/section managers in the sales,
technology, and research departments
in Tokyo, in order to strengthen the unityof departments and synergy among
divisions.
Toppan also strives to enhance its integrated strength through its commendation
system, a system to recognize employee
proposals and performance based on the
Company’s integrated strength.
The Company held four Human
Resources Development Leader Meetingsin fiscal 2006 to discuss improvement of
human resource development. Thesemeetings identify important training issues
in departments and strengthen the synergy of Company-wide training and specialized training in the divisions anddepartments. Toppan will continue to holdthese meetings and offer opportunities tomore effectively foster human assets by
tailoring guidance and training to thecareer visions of individual employees.

Toppan’s Human Asset Development Program
Conduct of High Value Based on Corporate Philosophy and Corporate Creed
Fulfilling corporate
responsibility

Strengthening businessfoundations

Knowledge andinformation skills

Abilities and Skills for Conduct of High Value
Ability to identify andTechniques andAbility to accomplish tasks
formulate tasksknow-howRank-based Training
INew division manager training(introduced in fiscal 2007)
INew department manager training
INew manager training

Training to Meet Special Needs
ITraining for experienced personnel
hired through mid-career recruitment
IShort-term overseas study
IIT training in India
IGlobalization training
IForeign language training

52

Strengtheningorganization

Earning the trust ofcustomers

TOPPAN CSR REPORT 2007

INew supervisor training
INew employee training
IFirst career plan
IOJT brother/sister training

Selective Training
IExecutive business school
ITraining to nurture industryleading talent
IProject management training

Improving corporate value
Communication andtraining skills

Department-based Training
ISelected training for section
managers in sales departments
ISelected training for mid-level staff
in sales departments
ITraining for new section managers
in technology and manufacturing
departments
ITraining for employees in production
management departments
Toppan Business School
IOptional training
IChallenge School
IVideo library

ITraining for new supervisors intechnology departments(introduced in fiscal 2007)
IIndividual department-based
training (Purchasing, Secretary,
Personnel & Labor Relations andother divisions)

Training by the Divisions
ITraining in each division and ateach workplaceFostering and Developing Human Assets

Results in Human Asset Development

Personnel Rotation*2

Funds Spent on Usage Rate ofTraining per Toppan Training
Center*1
Employee

Employees
Transferred

Percentage of
Total
Workforce

People-to-People Exchange with theOverseas Group Companies
Toppan temporarily assigns employees toposts in overseas Group companies as ameans of promoting people-to-people
exchange among Group companies. It
also accepts employees from overseas
Group companies as trainees through its
education and skill training systems. The
Company received two trainees from
Toppan Printing Co., (Shenzhen) Ltd. infiscal 2006.
Fosterage of Human Assets who Can
Respond to Globalization
Toppan highly values its system to support overseas study for the fosterage of
people who can play active roles in global
businesses. Employees have the opportunity to participate in the following specialist training programs: the MBA abroad
program to foster experts in business
management, the study abroad programfor engineers to foster technical humanassets and build overseas networks, IT

Fiscal 2004

45,800 yen

56.9%

Fiscal 2004

343

3.3%

Fiscal 2005

36,600 yen

51.8%

Fiscal 2005

326

3.0%

Fiscal 2006

37,900 yen

51.5%

Fiscal 2006

301

2.8%

*1 The Toppan Training Center was establishedin July 2004. The usage rate in fiscal 2004 wascalculated by dividing the number of days thefacility was available by the number of days it
was actually used during the period from July
2004 to March 2005 (including use by subsidiaries and affiliated companies).

*2 Including only rotations among different divisions to develop human assets for integrated
strength enhancement and Total Quality
Assurance

training in India for in-house IT specialists,
and the support system for short-term
overseas training to foster human assets
in the sales and planning departments.
Toppan’s globalization training tomobilize fitting responses to globalization
is a set of individualized courses to help
candidates for overseas assignments andemployees from departments involved inoverseas businesses acquire basic skills forworking internationally (such as cross-cultural communication, proposing and presenting in other languages, coordinating
and managing conferences, and negotiating and persuading overseas businesspeople). Toppan has offered effective
globalization training since 1996. All of
the 100 employees who have participatedare now working in overseas Group companies or departments involved in overseas businesses.

With Employees

ability and skill development,” an action
plan with a checklist of accomplishmentsthat the employee is to achieve on theway to his or her goal.

Social Report

Assignment and Fosterage of
Newly Hired Employees
Employees hired mainly by regular
recruitment are interviewed on at least
three occasions before formal assignment: at their recruitment, during orientation just after they enter the Company,
and shortly after they are assigned. At
each interview they have the opportunity
to express their wishes for posting and toconfer with their supervisors on the divisions most suitable for their career plans.
Every employee also has a chance tomeet with a supervisor after one year to
discuss whether the employee’s current
workplace is suitable or not. After thisinterview, the Company officially determines the division or departments towhich the employee should be assigned.
Toppan regards the first three years
after recruitment as the fosterage period
for a new employee. A senior associate
in the employee’s new workplace isappointed as a Brother or Sister. The
employee, the employee’s immediate
superior, and the Brother or Sister work
together to form a vision of an ideal
future for the employee at the end of thefosterage period and set career goals.
They also prepare a “design sheet forTrainees from Shenzhen

Fixation Ratio of Recruits(percentage of recruits hired in fiscal
2004 who are still working at Toppan)
Male

FemaleHired on April 1, 2004

177

47

Still with Toppan as ofApril 1, 2007

160

37

Fixation ratio

90%

79%

(Average totals formales and females)(88%)

Percentage who leave
the company before
working three years

12%

Globalization training

TOPPAN CSR REPORT 200753

Social Report

With Employees

Leveraging Diverse Human Assets
The Company draws its competitive strength from the full use of the diverse strengths of its people.
Toppan conducts various measures to leverage an array of human assets from the viewpoint of diversity*1.

Open Recruitment
Toppan offers employment opportunities
through regular hiring for new graduatesfrom universities, National Colleges ofTechnology, and high schools in spring(every April) and autumn, and throughmid-career recruitment for experienced
personnel year round. In fiscal 2006, theCompany tested out a few new ideas in
the recruitment process in order to drawout the innate merits of every candidate.
It conducted interviews in casual wear,
for example, and adopted hiring standards based on the conduct of high value
in keeping with the principles ofToppan’s Corporate Philosophy andCorporate Creed. Recruitment screenings
are conducted in seven venues in Japanto provide a more open environment forhiring. Internship programs are held on
an ongoing basis. Seventy-eight interns
participated in fiscal 2006.
Toppan hired 119 experienced personnel in fiscal 2006. Twenty-nine of them
(24.4%) had worked in Toppan previouslyas temporary staff or part-time workers.
The Company hires foreign nationals
and helps them procure working visas
when required.

Systems for Self-determinationon the Career Path

Reinforcement in Leveraging
Female Employees

Toppan offers its employees various
opportunities to take on new challenges
through the Challenging Job System, inhouse staff recruitment system, and overseas study support system. The Company
is establishing an ideal environment for
employees who are eager to create theirown careers.
The Challenging Job System provides
the employees with opportunities to voluntarily report their own work experiences, official qualifications, language
abilities, medium-to-long-term career
aspirations, and the names of the departments and divisions to which theywould like to be transferred. The system
also gives employees opportunities toexchange opinions with superiors in interview settings and to personally makerequests regarding their own careerplans, Company-wide affairs, and otherissues.

Toppan proactively appoints female
employees to managerial and supervisory
positions. The Company’s efforts haveincreased the number of female managerial and supervisory staff to 112, or 2.6%
(as of April 1, 2007); The target for Fiscal
2007 is 2.75%.
Young female managers and supervisors at Toppan have played a central rolein launching projects to help maintainworking environments in which female
employees can work more energeticallyand freely.

Female Managerial and Supervisory
Staff

TOPPAN CAFÉThe TOPPAN CAFÉ is a series of consultation
sessions to discuss the concerns and difficulties of college students as they prepare toenter the labor market as recruits. In total,
246 third-year college students attended ninesessions held in the Toppan Koishikawa
Building in late October, 2006.
TOPPAN CAFÉ is not a company orientation
session for students who want to work at
Toppan. The purpose is to put college students in touch with young Toppan employees
in charge of recruitment, to ease their anxieties about the hunt for employment. By
holding TOPPAN CAFÉ in small groups, participants are encouraged to speak and ask questions more freely.

54

TOPPAN CSR REPORT 2007

The Female Project TeamsIn April 2006, the Company assigned anumber of all-women teams to develop
new products and services from a feminine perspective. Four teams are currently
in operation: the GTJ Project to plan forsales promotion tools for women’s goods;
the Consumption Behavior Laboratory to
conduct market research on consumer
products; the SP Team to plan out advertisements for women’s magazines; andthe Life Navigator Team to propose packaging for food and daily commodities.

(Staff)
120■Female supervisory staff■Female managerial staff

100
80

112

87
78
91

60
72
40

67

20

TOPPAN CAFÉ participants in discussion

0

11

15

21

April 2005

April 2006

April 2007

*1 Diversity: “Diversity is a ‘strategy of utilizing avariety of human resources.’ Avoiding the hitherto established standards within firms andsociety and taking into consideration the values and concepts of various attributes (gender, age, nationalities, etc.), this is a strategy
which responds to the changes in businessenvironment in a rapid and smooth manner toachieve firm growth and individual happiness.”(Regression to the Origin—The Directions ofDiversity Management from Japan Federationof Employers’ Associations: May 2002)

Leveraging Diverse Human Assets

Toppan’s divisions and departments
engage in businesses involving far morethan the receipt of orders for printed
materials. Many departments, for example, study market needs, propose products and services, and design products
and distribution channels for client companies. The ideas and sensitivity of women
can hone the competitiveness of Toppan
in all of these activities.

Support for Second Careers

The Internal Venture System was established in January 2001 to discover humanassets abounding in entrepreneurial spirit
and to create next-generation businesses.
Fifty projects have been proposed under
the system so far. This has led to thefounding of one company (Toppan Character Production Co., Ltd.), the initiationof two businesses, and a proposal thathas been integrated into an in-houseproject.
Toppan Character Production received
an in-house award from the Company inrecognition of its success in business overthe first five years of operation.

Ongoing Success in the
Employment of Persons with
Physical Disabilities

Propriety in Contract andDispatch
The Toppan head office notified all of theoperational sites of the revised Worker
Dispatch Law before it was enforced in
March 2004. The operational sites have
responded accordingly. Based on theactual conditions at workplaces, Toppan
always monitors compliance with thislaw, especially the provisions regarding
the distinction between “contract” and“dispatch” in manufacturing departments. Company monitoring has confirmed that no unlawful contracts havebeen concluded by any of the manufacturing departments to date.

With Employees

In 1993, Toppan founded Tokyo Metropolitan Government (T.M.G.) Prepress
Toppan Co., Ltd., a special subsidiary toemploy persons with physical disabilities.
Since then, Toppan’s ongoing measures
to promote the hiring of persons withphysical disabilities have been handled

mainly via this company. As of June 1,
2007, persons with physical disabilities
accounted for 1.84% of the total workforce in the Company.
In September 2005, the Health, Labourand Welfare Minister named Toppan aCompany with a Distinguished Record in
the Employment of the Disabled, inrecognition of Toppan’s ongoing successin attaining the statutory employment
rate of persons with physical disabilities.

Social Report

To support second careers in company
life, Toppan offers diverse options forsecond-career employees by developing
suitable work categories and positions.
The Company builds up a structure to use
the knowledge, experience, techniques,
and skills that employees acquire throughlong years of work. Toppan also operates
a Senior Reemployment System to offer
retired employees extended tenure at theCompany on a post-retirement basis until
they reach the age of 65. Sixty-three of
117 employees who retired in fiscal 2006
were reemployed in the same year and
now remain with the Company.

Internal Venture System

Employees with Physical Disabilities

Fiscal 2004

134

Percentage ofTotal Workforce*2
1.83%

Fiscal 2005

138

1.81%

Fiscal 2006

146

1.84%

Employees

Members of the four all-women teams

Toppan Character Production Co., Ltd. won an inhouse award for succeeding in its internal venturebusiness.

Website of Toppan Character Production Co., Ltd.
(in Japanese) http://www.chara-pro.com*2 The rate is calculated based on the total numberof employees (as of June 1, 2007) as a denominator. The total number was presented in the
Disabled Persons Employment Report in accordance with Article 8 of the Law for Employment
Promotion, etc. of Disabled Persons.

T.M.G. Prepress Toppan Co., Ltd. with its barrierfree working environment

TOPPAN CSR REPORT 200755

Social Report

With Employees

Realizing a Safe and Secure Working Environment
Toppan recognizes that a safe and secure working environment for its employees is not only a social
responsibility, but also a prerequisite for improved productivity. The Company goes to great lengths toassure safety and security beyond mere compliance with relevant laws and regulations.

Respect for Basic Human Rights
The Conduct Guidelines call for the assurance of the dignity of individuals under all
circumstances, and no invidious discrimination on the basis of race, ethnic group,
nationality, religion, gender, or physicalcharacteristics. To raise esteem for basic
human rights, including the ongoing prevention of sexual and power harassment,
Toppan conducts awareness-raising activities during rank-based training for new
employees, new supervisors, and new
managerial staff. There were 1,795
trainees in fiscal 2006.
To resolve and prevent troubles withsexual harassment, the Company established a Basic Policy on Sexual Harassment at the Workplace and deployedsexual harassment counselors in July 1999.
No instances of child labor or forcedlabor have ever occurred in the Company.

Countermeasures against Fires
and Disasters

Healthcare and Enhancement
Toppan arranges regular medical checkups and screenings for lifestyle-relateddiseases in order to maintain andenhance the health of employees by preventing and promptly detecting healthproblems. Based on the results of thesecheckups, the Company introduced aLifestyle Improvement Support Service
on a trial basis in fiscal 2006. Employees
in need of lifestyle improvements areoffered guidance for a fixed period onearly actions they can take to stave off
health problems. The Company runs 59
clinics across Japan in cooperation with
the Toppan Group Health Insurance
Union. These clinics hold various lectures
on health and offer guidance on healthcare and nutrition based on the results ofhealth examinations. Toppan also supports the enhanced health of the Toppan
workforce by offering employees theopportunity to use 500 fitness clubs
throughout Japan contracted by the
Toppan Group Fraternal Benefit Society.

Toppan makes every effort to eliminate
workplace accidents through the work of
the Safety and Health Committee, a bodymade up of both labor and management.

In addition to implementing a comprehensive disaster-preparedness drill,
Toppan’s fire-response squads have participated in the Self-defense Fire Training
Competitions held by local fire departments in alliance with and under theguidance of Toppan Security Service Co.,
Ltd. These squads have scored in the top
ranks at every regional competition.
Toppan also conducts drills on earthquake
countermeasures to practice the initialactions to be taken, and specialized drills
to confirm safety and provide employeeswith the information they need to returnsafely home after a major quake.

Workplace Safety and Health

Overview of Mental Health Maintenance System

Occupational Safety and Health

DeathsFrequencyfrom Work
Rate*1
Accidents

Severity
Rate*2

Primary
Prevention:

Secondary
Prevention:

MedicalTreatment:

Proactive measure

Early detection

Early cure

Fiscal 2004

0

0.41

0.01

Fiscal 2005

0

0.24

0.01

Fiscal 2006

0

0.16

0.02

*1 Number of employees injured or killed in labor
accidents per million working hours (reflects
the frequency of labor accidents)*2 Number of workdays lost as a consequence oflabor accidents per thousand working hours(reflects the severity of labor accidents)

Status of Main Work Holiday andLeave Systems
Average Ratio Employees Employees
Using theof Annual Paid Using theWork Holidays Maternity
Childcare
3
Used*
Leave System Leave System
Fiscal 2004

38.1%

38

46

Fiscal 2005

38.9%

32

55

Fiscal 2006

41.2%

40

58

*3 Average number of holidays used/average number of holidays granted

56

The Safety and Health Subcommittee set
up under the committee as a Total
Productive Maintenance (TPM) activity isseeking to increase the synergy of production activities and safety and healthmeasures. Toppan also carries out proactive safety checks in cooperation withtechnology departments before installing
equipment. This is an essential step for
avoiding disasters.

TOPPAN CSR REPORT 2007

Steps to Prevent
Recurrence:
Support for returning
employees (fresh starts)

Regular mental health examinations,
including stress checks
Mental healthtraining
IRank-based
training
IIncorporated
in optional
training
Appointment
anddeployment ofa person totake charge ofenhancingmental healthin eachoperational site

Cooperation with medical and counseling institutions outside Toppan
Guidance and information of
consultants outside Toppan(contracted with the Toppan
Group Health Insurance Union)

Establishment of anenvironment wherereturning employees caneasily resume their work
ITraining for employeeswith mental illnesses toprepare them for working
at the Company
IPhased reduction ofworking hours
Steps to allay anxiety
after resignation
Financial assistance fromthe Toppan Group Fraternal
Benefit Society and likesources for fixed periods
after resignation

Realizing a Safe and Secure Working Environment

Reinforcing Measures for
Mental HealthToppan enhanced rank-based mental
health training in fiscal 2006 and appointed
a person to take charge of enhancing
mental health at each operational site.
The reinforced measures for mental
health at the workplace are well recognized as Company-wide tasks. Toppan
will be taking steps in fiscal 2007 to support returning employees as they resume
their work at the Company.

Efforts to Shorten Total
Working Hours

Support for Achieving WorkLife Balance

Labor-Management Partnership
In keeping with the perception that laborand management are partners in sharedideals, Toppan works with various administrative issues and holds a range of
events in cooperation with the labor
union. Business councils are convened asforums to discuss wide-ranging administrative issues, for example, and special
committees are maintained to exchange
views on the wage system, working
hours, occupational safety, welfare, andmany other subjects. Toppan management and the labor union work together
to create safe and secure working environments through these efforts, together
with measures to nurture the next generation and maintain and enhance health.

With Employees

Toppan has striven to establish an environment in which employees can easily takechildcare leave. It does so by providing systems for maternity and nursing care leave,
for reduced working hours, and for higher
dependent family allowance.
The Company has introduced a systemin fiscal 2006 for rehiring employees who
resign from the Company to deliver andbring up children (➞P.21). The system forreduced working hours for employees
who need to care for a child has also

been extended. This reduced schedule
was originally offered to a parent until his
or her child reached the age of three;
now it is available until the child completes the third year of elementary
school. These enhancements of theworking environment improve the opportunities for employees to achieve a goodwork-life balance. The Company will continue to facilitate similar measures incooperation with the labor union.

Social Report

With the special conditions of the printing industry, the reduction of the hoursof overtime worked by employees has
been a longstanding challenge. The
Company has responded by developing
measures focused on actual conditions.
Each operational site, for example, has
appointed a labor-management committee to reduce overtime work and increase
the ratio of annual paid work holidays
used. In fiscal 2006, Toppan went backto the basic principle: employees should
only perform overwork if instructed to doso directly by their superiors. Efforts toprevent habitual overtime work and to
shorten total working hours have produced steady effects through a strengthening of overtime work management bymanagerial staff and a tightening of necessary procedures. Toppan encourages
employees to take holidays individually
through planned leave on consecutive
holidays granted in summer and otherseasons, as well as through personalized
holidays to commemorate anniversaries
and other important events for individuals. The usage ratio of annual paid work
holidays was 41.2% in fiscal 2006, up by
2.3% from the year before.

Main Work Holiday and Leave Systems/Work-Life Balance and Measures to Support the Development of the Next Generation
Stock Leave

Maternity Leave
Childcare Leave

Rehiring of Employees
who Leave the Company
to Raise Children
Nursing Care Leave

Healthcare Leave
Volunteer Leave
Dependent Family
Allowance
Partial Subsidization ofBabysitter Expenses
Other Systems

Employees can accumulate up to 50 days of annual paid leave that would otherwise be lost if not exercised within two years
from the date they are earned. Employees are eligible to use their stock leave when they or their dependents require treatment
or nursing, or for recovery from unexpected accidents.
Employees—fulltime, contract, and part-time—can take six weeks of leave before childbirth and another eight weeks after.
Both mothers and fathers are eligible for continuous childcare leave until their child reaches the age of 18 months (six male
employees have taken childcare leave so far). Employees receive 10% of their regular salaries during the leave. They can also
work for shorter hours (maximum reduction of two hours per day, in principle) from the date of their return to the job until
their child completes the third year of elementary school. Toppan subsidizes some childcare costs and provides childcare-related
information through a consultation office. Employees can consult with the Company to discuss their career plans for after they
return to work.
Rehiring is guaranteed for an employee who resigns to deliver and raise a child, provided that the employee has worked for
Toppan for more than three consecutive years just before resigning. A resigned employee who meets these conditions willremain eligible for rehiring until May 1 of the year when her child enters primary school.
Employees are entitled to take leave for the nursing care of at least one family member when necessary. The maximum
consecutive leave is one year and the maximum reduction in a working day is two hours. The Company subsidizes some nursing
costs and provides information through a consultation office.
Employees can take up to 10 days a year of leave. These days can also be taken in half-day allotments when necessary.
Employees can take a maximum of one year, in principle, of volunteer leave to engage in socially beneficial activities. Employees
on volunteer leave receive an allowance.
The Company pays every employee a monthly allowance of 20,000 yen for each child in the employee’s family. The allowance isdiscontinued on the first April 1 to arrive after the child’s 18th birthday.
Toppan Group Fraternal Benefit Society subsidizes 50% of babysitter expenses, up to a maximum of 5,000 yen a day, for up to
90 days a year.
The Toppan Group Health Insurance Union offers a supplementary allowance in addition to a lump-sum allowance forchildbearing and child rearing. It also provides one-year free subscriptions to the monthly childcare magazine Baby and Mommy
and runs a consultation office for employees with questions about the health of the mind and body.

TOPPAN CSR REPORT 200757

Social Report

With Shareholders and Investors

Improved Transparency and Appropriate Profit
Distribution
Toppan works to continuously enhance corporate value and establish long-lasting stable relationships withshareholders through fair and open disclosure of its management activities and appropriate profit
distribution.

Increasing the Transparency ofManagement Activities
Adhering to its IR motto “fair and open
disclosure of management activities,”
Toppan thoroughly discloses information
through various communication tools foreach stakeholder (➞P.26).
Disclosure of IR Information
Under the in-house Basic Policy on IR,
Toppan has built an exclusive IR website
to ensure fairness, transparency, andpromptness in its disclosure of IR information. Toppan has been announcing
its financial results quarterly via the
Company’s website and Toppan Story, anewsletter for shareholders. Public meetings with top management are also held
to explain the Company’s interim andfull-year results. All documents distributed at these meetings are posted on the
Company’s IR website.

Basic Policy on IR
1. Information Disclosure Standards
Toppan discloses all information required
under the Rules on Timely Disclosure established by the Tokyo Stock Exchange. It alsouses its website in a positive and fair manner
to disclose useful information not required by
the rules, in order to help shareholders andinvestors fully understand the Company.
2. Information Disclosure Methods
Information applicable to the Rules on Timely
Disclosure is disclosed on the Timely Disclosure
network (TDnet) provided by Tokyo Stock
Exchange under the rules. Information disclosed on TDnet is posted on the Company’s
website as soon as possible.
In addition, the Company’s website does
not include all of the information disclosedby the Company and may include different
expressions from those in other sources.

Overview of Stock andShareholders
As of the end of March 2007, the total
number of outstanding common stock
was 699,412,481 shares and the total
number of shareholders was 48,059.
Financial institutions, individual investors,
foreign companies, and other companies
make up 39.71%, 23.10%, 21.64%,
and 13.78% of the shareholders, respectively. The principal shareholders arelisted below.
Dividend Policy
Toppan’s fundamental policy for the payment of dividends is to provide shareholders with stable dividend payments
and to distribute gradually increasing dividends, taking into account the dividend
payout ratio. At the same time, theCompany will retain sufficient internal
reserves for strengthening the businessstructure and building a stable profit
base. Sufficient reserve will be allotted tocapital investment and research anddevelopment for expanding businessfields with growth potential, with theobjective of enhancing corporate value.

The Company will allocate retained funds
to increase investment efficiency from along-term perspective. Toppan believes
that its policy on profit distribution willcontribute to the enhancement of its corporate structure and increased future
profitability, and thereby enable theCompany to return profits to its valued
shareholders.
The annual dividend per share at theend of fiscal 2006 was 20.00 yen, with aconsolidated payout ratio of 50.5%.
Meeting of Shareholders
Two-hundred-and-two shareholders participated in the ordinary general meetingin June 2007. Toppan believes that theCompany should precisely reflect thewishes of its shareholders in the adoptionof the Policies on Large-scale Redemptionof Company Shares (policies to defend
against takeover bids). The Company
proposed a resolution to adopt policies todefend against takeover bids, and the
proposal was approved at the meeting.

Stock Ownership Profile
By Type of Shareholder
Securities companies
12,358,757
1.77%

Total
699,412,481
sharesFinancial
institutions
277,729,244
39.71%

By Number of Shares Held
Foreign companies
151,336,094
21.64%

Less than 1,000 shares
2,648,373
0.38%

Total
699,412,481
sharesOther companies
96,417,973
13.78%

Individual investors
161,570,413
23.10%
Principal Shareholders

The Master Trust Bank of Japan, Ltd. (Trust Account)
Depositary Nominees Inc.
Japan Trustee Services Bank, Ltd. (Trust Account)
Nippon Life Insurance Company
The Dai-ichi Mutual Life Insurance Company
NATS CIMCO
The Bank of Tokyo-Mitsubishi UFJ
Sumitomo Mitsui Banking Corporation
Employees’ Stock Club
Kodansha Ltd.

1,000,000
shares or more
489,808,305
70.03%
Number of Shares
Held (1,000 shares)
40,40433,74731,60029,64824,75019,09015,62815,62813,153
13,0771,000 shares or more
72,480,010
10.36%
10,000 sharesor more
29,772,516
4.26%
50,000 sharesor more12,755,673
1.82%
100,000 sharesor more
91,947,604
13.15%

Percentage of Total Number of
Shares Issued (%)
5.77
4.82
4.51
4.23
3.53
2.72
2.23
2.23
1.88
1.86

Note: The 40,909,000 shares of treasury stock are included in the “Individual investors” category of the graph“By Type of Shareholder” and in the “1,000,000 shares or more” category of the graph “By Number of
Shares Held.” These shares are excluded from the above table “Principal Shareholders.”

58

TOPPAN CSR REPORT 2007

Environmental Report

Overview of Environmental Activities
Toppan’s Environmental Activities ------------------------------------------------------------ 60
Overview of Results for Fiscal 2006 andFuture Environmental Targets
Environmental Targets and Results for Fiscal 2006 ------------------- 62
Environmental Investment and Conservation Benefit ------------- 65
Environmental Management
Environmental Management Structure------------------------------------------------- 66
Environmental Management Activities ------------------------------------------------- 68
Environmental Communication Activities------------------------------------------- 70
Environmental Conservation Activities
Mitigating Global Warming and Saving Energy --------------------------- 72
Resource Circulation----------------------------------------------------------------------------------------------- 73
Pollution Prevention and Chemical SubstanceManagement and Reduction-------------------------------------------------------------------------- 74
Approach to Logistics -------------------------------------------------------------------------------------------- 75
Environmentally-friendly Products andEnvironment-related Business
Development and Assessment ofEnvironmentally-friendly Products ------------------------------------------------------------- 76
Environmentally-friendly Printing Services------------------------------------------ 78
Forest Management and Formulation of
Recycling-oriented Society -------------------------------------------------------------------------------- 79
Environmental Data
Environmental Data------------------------------------------------------------------------------------------------- 80

Environmental Report

Overview of Environmental Activities

Toppan’s Environmental Activities
Toppan is aware of the importance of the environment as a management issue and is promoting
environmental activities in all sectors of its business. Toppan’s environmental activities can be placed into
two main categories: the development and commercialization of environmentally-friendly products andthe reduction of the environmental burden of production. The environmental burden caused by businessactivities is taken as the base of all activities.

Declaration on the Global
Environment

Toppan’s Environmental
Burden and Environmental
ImpactIn 1991, Toppan established the Ecology
Center and assigned it the role of overseeing its environmental activities. The
following April, the Company laid out
the Toppan Declaration on the Global
Environment, a comprehensive environmental philosophy appended with explanations of methods to be used totranslate that philosophy into action.
Since then, the declaration has guided
the efforts of all employees of the Groupas they work together to advanceToppan’s environmental activities under
the leadership of the Ecology Center.
In September 2000, Toppan revisedparts of its Toppan Declaration on the
Global Environment to reflect reformed
management policies. Reviewing the Environmental Action Plan regularly, Toppan
treats the Environmental Targets set
under the action plan as benchmarks ofToppan’s environmental management
performance as it works to improve environmental activities (➞P.62).
The Toppan Declaration on the Global
Environment will be thoroughly reviewed
whenever social attitudes on the global
environment significantly change. Toppan’s
work to upgrade its environmental activities
will be ceaseless on every front.

Toppan has a broad business base, andeach of the products it manufactures
imposes different environmental burdens.
Environmental burdens must be reducedin accordance with every product life
cycle and production process based on athorough understanding of the individual
environmental burdens entailed in thedevelopment, commercialization, andmanufacture of every product.
Toppan has established a comprehensive set of Environmentally-friendly
Product Assessment Guidelines to ensurethat this can be achieved for every product group. By acting on assessment
guidelines that bring the entire life cycle
into view, from product planning anddevelopment onward, the Company aims
to develop environmentally-friendly products in a manner appropriate to the environmental burden of each business area.
Toppan compiles and ascertains dataon the environmental burden associatedwith its production activities in three separate fields of business and undertakes a
set of environmental activities to manage
each environmental burden.

Toppan’s Declaration on the Global
Environment

Flow of Environmentally-friendly Products

1. Each of our employees recognizes theimportance of global environmental issues
and endeavors to conserve the global environment.
2. We actively promote energy/resource conservation and recycling as a means of conserving the global environment.
3. We abide by the law and social order, striving to prevent environmental pollution.
4. Through our business operations, we actively
support our customers’ activities to conserve the global environment.
5. In our research, we endeavor to develop
products and technologies that help conserve the global environment.
6. We implement corporate activities designed
to further global conservation in the context
of an international society.
Established April 1992
Revised September 2000

60

Overview of Environmental
Activities

TOPPAN CSR REPORT 2007

Division

The first step in reducing environmental
burden is to ascertain the environmental
impact of the Company’s overall businessactivities. Toppan compiles data on thebalance of materials at each production
site based on INPUT (materials and energyused)/OUTPUT (materials discharged as aresult of production) and then assesses
the impacts of sites from various environmental aspects. The Company establishes
Environmental Targets based on the
results of these assessments, clarifies its
priorities, carries through with the environmental activities in pursuit of its targets, and verifies the results of those
activities.
As a company engaged in diverse businesses, Toppan imposes environmental
impacts in various forms. To evaluate theextent and variation of its environmental
burden rationally, the Company compiles
and ascertains its environmental data
independently in its three main businessfields: Information & Networks, Living
Environment, and Electronics (➞P.61).

Planning and development ofenvironmentally-friendly products

Assessment
guidelines

Assessment of environmentally-friendly products

Application for environmentally-friendly products

Ecology
CenterConfirmation of divisional assessment

Registration of environmentally-friendly products
Registered data enteredinto database

Product manufacturing

Registration
application

Toppan’s Environmental Activities

Main Environmentally-friendly Products by Business Field
Information & Networks

Living Environment

Electronics

Providing solutions that increase the value of
information and effectively deliver information forclients who require smooth communication

Providing optimal products and services for livingin areas such as medicine, food, and housing, tohelp create fulfilling lifestyles globally

Working with leading-edge technologies to provide electronics components with strong potential
to be adopted as de facto standards in the fieldsof semiconductors and displays

Recycled Vegetable-oil Ink

GL Family

Anti-reflection Film

Printing ink and printed materials made withrecycled vegetable oil as a substitute for 70% ormore of the original soybean oil component

A family of transparent barrier films made entirely
without chlorine-based resin, based on a vapor
deposition coating technology from Toppan (GLfilm preserves fragrance and protects contentsfrom degradation by oxygen and moisture.)

An anti-reflection optical film with 50% less plastic material compared to Toppan’s existing product range (placed over liquid crystal displays forcellular phones and PCs)

Major Environmental Burdens in the Business Fields (INPUT/OUTPUT data)
INPUT
Total Energy Consumption (➞P.72)
Non-production Sites
703

Electronics
6,701

LivingEnvironment
4,922

Water Consumption (➞P.80)
Non-production Sites
341

Electronics
11,899

LivingEnvironment
1,975
Total

15,769(Unit: 1,000 GJ)(Unit: 1,000 m3)

Information &Networks
1,554

Information & Networks
5,469

▼

OUTPUT
Total Waste Generation (➞P.73)
Electronics
44,870Non-production Sites
306

Electronics
10,871

Total

330,918(Unit: tons)

Information & Networks
179,658

Information &Networks865

Non-production Sites
0.4

Electronics
60.4

LivingEnvironment
316.2

LivingEnvironment
1,464

LivingEnvironment
103,901

Total PRTR Release (➞P.74)

Total

Total

13,507

671.7(Unit: 1,000 m3)(Unit: tons)

Information & Networks
294.6

Overview of Environmental Activities

Non-production Sites
2,489

Total Effluent Discharge (➞P.80)

Environmental Report

Total

17,796

OIn a breakdown by business field, Electronics
accounts for about 75% of the water consumption and effluent discharge, Information& Networks accounts for about 55% of waste
generation, and Living Environment accounts
for about 45% of the release of chemical substances designated under the PRTR law.
OThe total energy consumption, i.e., the quantity of electricity and fuels consumed, is about
the same in each business field.
ODifferences in the material units accounted forin the three business fields make it difficult to
calculate the total material input volumes on
a comparative basis. Information & Networks
clearly accounts for a large percentage of thepaper consumed.

Note: The calorific value associated with electricity consumption is calculated uniformly as 0.00983 GJ/kWh. The total PRTR release is calculated by totaling thereleases of certain chemical substances (substances designated under the PRTR law) at each operational site. Dioxins are not included, due to differences in
the counting units. Excludes figures for overseas subsidiaries and certain independent subsidiaries.

TOPPAN CSR REPORT 2007

61

Environmental Report

Overview of Results for Fiscal 2006 and Future Environmental Targets

Environmental Targets and Results for Fiscal 2006
Based on its Environmental Action Plan, Toppan specifies concrete policies to realize the goals of its
Declaration on the Global Environment, the basic philosophy behind its environmental activities.
The Company reviews and revises the Medium- and Long-term Environmental Targets and Environmental
Targets for every current fiscal year.

Environmental Targets
Based on its Environmental Action Plan,
Toppan specifies concrete policies for therealization of the goals of the Declarationon the Global Environment, the basic philosophy of Toppan’s environmental activities in all of Toppan’s business fields. The
Medium- and Long-term Environmental
Targets and Environmental Targets forevery current fiscal year set under theEnvironmental Action Plan promote envi-

ronmental activities with participationfrom every employee.
Toppan takes one fiscal year as one
cycle for its environmental activities andreviews its environmental activities withinthat time frame. The Medium- and Longterm Environmental Targets are reviewed
and the Environmental Targets for thefollowing fiscal year are set based on theevaluations of achievements in the current fiscal year.

Evaluation of Progress inEnvironmental Targets
Toppan set 18 Environmental Targets forfiscal 2006 and undertook various programs and activities to attain them. As ofthe end of the year, nine of the targets
were reached and nine were not.
The Company has succeeded overwhelmingly in achieving all of the targets
it has set for recycling, reduced atmospheric emissions of VOCs, and reduced

Environmental Targets and Results for Fiscal 2006
Environmental Objectives

Medium- and Long-term Environmental Targets

1. Mitigation of global warming through the development of energysaving measures

Reduce CO2 emissions per unit of sales by 10% by fiscal 2010 (compared to thefiscal 2000 level)

2. Promotion of waste reduction and recycling

Reduce waste generation per unit of production value
Expand the material recycling of industrial waste
Reduce final landfill waste disposal*1 by 90% by fiscal 2010 (compared to the fiscal
2000 level)
Efficiently use the industrial waste materials generated in the manufacturing stage
and have all domestic sites certified as zero-emission sites*2 by fiscal 2010

3. Prevention of atmospheric pollution via VOC emission restraints

Reduce VOC emissions into the atmosphere by 70%*3 by fiscal 2010 (compared to
the fiscal 2000 level)

4. Control of risks from chemicals

Reduce the consumption of chemical substances designated under the PRTR law

5. Environmental contribution via the development and marketing ofeco products

Promote environment-related businesses by expanding the sales ofenvironmentally-friendly products
Develop environmentally-friendly products and apply LCA in product development

6. Promotion of environmental communication—

7. Avoidance of environmental risk

Establish and observe appropriate in-house management guidelines that embrace
regulatory controls
Reduce the risk of soil contamination
Maintain appropriate communication with stakeholders

8. Enhancement of environmental education and the environmental
awareness of all employees—

9. Upgrading of environmental management systems at our overseas
production sites—*1 Final landfill waste disposal: Direct landfill disposal + landfill disposal of residues from intermediate treatment*2 Zero-emission site: Operational site with a recycling rate of 98% or more (subject to approval by the Ecology Center)*3 Target in the industry: 41% reduction by fiscal 2010 (compared to the fiscal 2000 level)*4 Fiscal 2005 data and fiscal 2006 targets were restated based on revisions of the calculation methods.

62

TOPPAN CSR REPORT 2007

Environmental Targets and Results for Fiscal 2006

disposal of final landfill waste since
fiscal 2005.
In fiscal 2006, however, Toppan fell
considerably short of achieving its targeted
sales in the environment-related businessand its targeted reductions of CO2 emissions and the consumption of chemical
substances designated under the PRTRlaw. Please refer to the related pages tolearn why the Company was unsuccessful
in meeting its targets and to read about
the initiatives to be taken in the future.

Review of Environmental
Targets
Toppan reviewed its targets for fiscal
2007 by evaluating the progress inaccomplishing its environmental targets
for fiscal 2006. By setting the same number of targets in fiscal 2006—15
Medium- and Long-Term Environmental
Targets and 18 Environmental Targets forthe current fiscal year—the Company will
promote environmental activities.

Environmental Targets for Fiscal 2006

In order to reverse its recent increases
in CO2 emissions, the Company willdevelop energy-saving measures to help
mitigate global warming. One of themost important environmental impacts ofthe printing industry arises from the useof large amounts of inks and solvents.
Toppan will continue to control the risks
associated with inks and solvents by
reducing its consumption of chemical
substances designated under the PRTR
law.

Results and Status for Fiscal 2006

Evaluation

For
Details

CO2 emissions per unit of sales: Reduce by 4% compared to
the fiscal 2005 level

CO2 emissions per unit of sales: Increased by 2.9% compared to
the fiscal 2005 level

C

P.72

Waste generation per unit of production value: Reduce by
5% compared to the fiscal 2005 level

Waste generation per unit of production value: Reduced by 3.6%
compared to the fiscal 2005 level

B

P.73

Material recycling rate: 60%

Material recycling rate: 87.3%

S

Final landfill waste disposal: Reduce by 10% compared to
the fiscal 2005 level

Final landfill waste disposal: Reduced by 46.2% compared to the fiscal
2005 level

S

Expand the number of certified zero-emission sites: To
26 sites

Expand the number of certified zero-emission sites: Increased to 32 sites

S

VOC emissions into the atmosphere: Reduce by 10%
compared to the fiscal 2005 level

VOC emissions into the atmosphere: Reduced by 24.7% compared to
the fiscal 2005 level

S

Consumption of chemical substances designated under the
PRTR law: Reduce by 10% compared to the fiscal 2005 level

Consumption of chemical substances designated under the PRTR law:
Increased by 11.3% compared to the fiscal 2005 level

B

Sales in environment-related business: 60.2 billion yen(increase by 7% compared to the fiscal 2005 level)*4

Sales in environment-related business: 54.1 billion yen (decreased by
4% compared to the fiscal 2005 level)*4C

Expand the number of products registered asenvironmentally-friendly products: 5 new products

Number of products registered as environmentally-friendly products:
5 items added

A

Apply LCA in product development at regional divisions(Living Environment)

Considered at divisions

C

Evaluate research themes based on DfE (Design for theEnvironment)

Evaluation implemented by the LCA subcommittee of the TechnicalResearch Institute

B

Promote environmental communication by exhibiting at
Eco-Products 2006

Exhibited at Eco-Products 2006 (held on December 14–16, 2006)

A

P.71

Observe in-house management guidelines at all operationalsites and review them as necessary

Evaluations implemented in 59 domestic sites through internal
environmental audits

A

P.68

Monitor the operational sites, including the vacant lots ofrestored sites

Implemented at four sites

A

P.69

Expand the number of operational sites that issue Site
Reports: To 24 sites

Expand the number of operational sites that issue Site Reports:
Increased to 22 sites (17 reports in total)

B

P.71

Implement environmental education via e-learning on an
ongoing basis (follow-up for those yet to participate)

Postponed until fiscal 2007 as a result of a review of the implementing
structure

B

P.69

Conduct internal environmental audits at overseas
production sites: the U.S.A., China, and Southeast Asia

Implemented at one operational site in the U.S.A. and five sites in China(Postponed until fiscal 2007 for sites in Southeast Asia)

B

P.68

Monthly records of conformance with local regulatory
standards and environment-related data

ISO 14001 certification acquired by Toppan SMIC Electronics (Shanghai)Co., Ltd. in February 2007

A

P.74

P.77

TOPPAN CSR REPORT 2007

Overview of Results for Fiscal 2006 andFuture Environmental Targets

Valuation standard: S, Results achieved far surpass targets; A, Targets achieved; B, Activities fully carried out, but targets unachieved; C, Activities insufficient

Environmental Report

P.76

63

Environmental Report

Overview of Results for Fiscal 2006 and Future Environmental Targets

Environmental Targets for Fiscal 2007
Environmental Objectives and MediumEnvironmental Targets for Fiscal 2007
and Long-term Environmental Targets
1. Mitigation of global warming through the development of energy-saving measures
Reduce CO2 emissions per unit of sales
by 10% by fiscal 2010 (compared to thefiscal 2000 level)

CO2 emissions per unit of sales: Reduce by
5% compared to the fiscal 2006 level

Details on Specific Measures•Set up management guidelines that demonstrate the status ofefficient energy usage at each operational site, and develop andoperate a methodology for proper energy management•Reinforce large-scale energy-saving measures (exploring thepossibility of partnering with ESCO)

2. Promotion of waste reduction and recycling
Reduce waste generation per unit ofproduction value by 25% by fiscal 2010
(compared to the fiscal 2000 level)
Expand the material recycling of industrial
waste

Waste generation per unit of production
value: Reduce by 5% compared to the fiscal
2006 level
Material recycling rate: 87%

Reduce final landfill waste disposal*1 by
95% by fiscal 2010 (compared to thefiscal 2000 level)

Final landfill waste disposal: Reduce by 15%
compared to the fiscal 2006 level

Efficiently use the industrial waste
Expand the number of certified zeromaterials generated in the manufacturing emission sites: To 35 sites
stage and have all domestic sites certified
as zero-emission sites*2 by fiscal 2010
3. Prevention of atmospheric pollution via VOC emission restraints
Reduce VOC emissions into theatmosphere by 70%*3 by fiscal 2010
(compared to the fiscal 2000 level)• Reduce material consumption and improve recovery rates• Seek recycling partners within the Toppan Group network•Monitor recycling processes through site inspections ofcontractors•Reduce the direct landfill disposal by reducing the generated
waste•Reduce the volume of residual processed waste by selecting
efficient intermediate treatment technologies•Promote waste recycling by reviewing waste separation
guidelines and adopting them as binding rules•Expand in-house treatment and recycling equipment while
selecting appropriate recycling partners

VOC emissions into the atmosphere: Reduce •Perform a detailed examination of total VOC emissions in fiscal
by 10% compared to the fiscal 2006 level
2006•Install processing equipment for effluent gas with sufficientconsideration of resource efficiency, such as solvent collection
and waste heat recovery

4. Control of risks from chemicals
Reduce the consumption of chemical
substances designated under the PRTR
law

Consumption of chemical substances
designated under the PRTR law: Reduce by
3% compared to the fiscal 2006 level•Reduce the consumption of materials containing designatedchemical substances and shift to alternative materials with low
content of the same
• Use the Toppan Group network to develop in-house standards
for materials containing no designated chemical substances

5. Environmental contribution via the development and marketing of eco products
Promote environment-related businesses
by expanding the sales ofenvironmentally-friendly products
Develop environmentally-friendly products
and apply LCA in product development

6. Promotion of environmental
communication
7. Avoidance of environmental risk
Establish and observe appropriate inhouse management guidelines thatembrace regulatory controls
Reduce the risk of soil contamination
Maintain appropriate communication
with stakeholders
8. Enhancement of environmental
education and the environmental
awareness of all employees

Sales in environment-related business: 57.9
billion yen (increase by 7% compared to thefiscal 2006 level)
Expand the number of products registeredas environmentally-friendly products: 5 new
products
Apply LCA in product development atregional divisions (Living Environment)
Develop products with lower environmental
burdenPromote environmental communication by
exhibiting at Eco-Products 2007
Observe in-house management guidelines atall operational sites and review them asnecessary
Monitor the operational sites, including
the vacant lots of restored sites
Expand the number of operational sites thatissue Site Reports: To 24 sites
Implement environmental education via
e-learning on an ongoing basis (follow-up
for those yet to participate)•Promote sales and marketing activities for environmentallyfriendly products via ISO 14001 operations•Develop products based on Environmentally-friendly Product
Assessment Guidelines•Disclose product environmental data through the Toppan
Environmentally-friendly Product Certification Label•Newly apply LCA at the Chubu and Hokkaido Divisions andupgrade LCA at the Tohoku and Nishinihon Divisions• Develop new products with sufficient consideration of the CO2
emission proportions associated with manufacturing methods•Disseminate information through environmental forums,
exhibitions, and lecture presentations•Confirm the validity of items and reference values establishedunder in-house management guidelines through internal
environmental audits• Regularly monitor underground water and report the results togovernmental agencies• Issue a CSR Report and Site Reports•Expand the number of learners in environmental education by
setting up an intranet e-learning system•Promote two-way environmental communication using Toppan
Environmental Link (another intranet system)• Conduct internal environmental audits, including site inspections
9. Upgrading of environmental
Conduct internal environmental audits
management systems at our overseas at overseas production sites: Southeast Asia •Confirm the establishment of environmental management
and the U.S.A.
systems through internal environmental audits
production sites
Monthly records of conformance with local • Conduct activities aimed at acquiring ISO 14001 certification
regulatory standards and environment•Periodically collect data on environment-related issues via therelated data
Monthly Overseas Site Reports*1 Final landfill waste disposal: Direct landfill disposal + landfill disposal of residues from intermediate treatment*2 Zero-emission site: Operational site with a recycling rate of 98% or more (subject to approval by the Ecology Center)*3 Target in the industry: 41% reduction by fiscal 2010 (compared to the fiscal 2000 level)

64

TOPPAN CSR REPORT 2007

Environmental Investment and Conservation Benefit
Toppan has been keeping an environmental account and disclosing its results since fiscal 1998.
The Company has striven to improve the accuracy of its examinations on the effectiveness of investment
from fiscal 2005 onward by reviewing its methods for counting and disclosing its environmental accounts.
The fiscal 2007 environmental accounting will factor in the costs for asbestos-removal work.

Environmental Conservation
Cost

Field and the construction of new wastewater treatment facilities with new plants
at production sites in the Electronics
Field.
Other capital investments have been
expended to fund waste-treatment
improvements (such as the installation ofsludge-drying equipment and dust-collecting equipment for waste volume
reduction and recycling) and energy-saving improvements (through painting
plant roofs with heat-insulating paint,
installing inverters, and creating green
spaces for natural conservation, greenery,
beautification, and landscape maintenance).
The Environmental Conservation Equipment Investment includes investment tointroduce equipment for countermeasures taken in response to complaints
and inquiries from neighboring residents
and others.

Toppan has been keeping an environmental account since fiscal 1998 to help
the Company calculate the cost andeffectiveness of investment in environmental conservation. Since fiscal 2005,
the Company has focused only on theEnvironmental Conservation Equipment
Investment and the Environmental Conservation Benefit, in order to exclude
reliance on estimates insofar as possible.
This is expected to improve the accuracyof examinations on cost effectiveness.
Toppan has invested 6,003 million yen
in environmental equipment in fiscal
2006, 61% more than it invested theyear before. This has been the result of
increases in capital investments in equipment for waste material treatment,
atmospheric pollution prevention, andmaterial recycling (such as the introduction of the wastewater recycling system).
The major capital investments for fiscal
2006 are as follows: the additional
installation of equipment for recovering
solvents from VOC effluent gas at production sites in the Living Environment

Rooftop greenery (Akihabara Building)Investment in equipment
to prevent atmosphericand other forms ofpollution

2. Investment inequipment toconserve theglobalenvironment

Investment in equipment
to conserve the global
environment such as
by mitigating global
warming

3. Investment inequipment tocirculateresources

Investment in equipment
for adequate treatment
and the recycling ofwaste materials

4. Investment inequipment for
management
activities
Total

Investment in equipment
to monitor and measureenvironmental burdens
and to plant trees at
operational sites

3,455

164

349

–190

EnergyIncrease/
Fiscal 2006
Decrease
1,916
22,443
Total energy consumption (1,000 GJ)

Water

Water consumption (1,000 m3)

2,657

18,089

Atmosphere

CO2 emission (1,000 t-CO2)

55

1,032

Emission of ozone-depleting
substances (ODP-t)

–1

1.9

NOx emission (tons)

25

257

SOx emission (tons)

17

71

Emission of dioxins (mg-TEQ)

–97

33

2,820

15,389Underground penetration(1,000 m3)

7

45

On-site evaporation (1,000 m3)

86

2,434

BOD (tons)

39

230

COD (tons)

22

218

Total generation (1,000 tons)

21

417

14,638

1,823
Water andsoil
environments

2,330

2,096

4,328

Waste
54

26

434

6,003

2,281

21,223

Total effluent discharge (1,000 m3)

Notes: Total values may not match, as decimals are rounded up or down.
Entities covered: Toppan Group (➞P.5), excluding Toppan
Photomasks, Inc.
Period covered: Last fiscal year for each company or subsidiary
See P.74 for details on the conservation benefit gained fromthe reduction in PRTR release.

TOPPAN CSR REPORT 2007

Overview of Results for Fiscal 2006 andFuture Environmental Targets

1. Investment inequipment toprevent
pollution

Fiscal2006

Environmental Conservation Benefit(Million yen)
Increase/ Total Sum
Decrease for thefrom
Last Five
Fiscal 2005 Years

Environmental Report

Major Contents

Wastewater recycling system (Mie Plant II)

Other Environment-related Cost
Toppan completed its asbestos-removal
work in March 2007. The expenditure forthis work, at completion, amounted to
290 million yen.

Environmental Conservation Equipment Investment

Item

Equipment for recovering solvents from VOC
effluent gas (Gunma Plant)

65

Environmental Report

Environmental Management

Environmental Management Structure
Toppan has established an environmental management system to enhance the efficiency of its
environmental activities and promote the use of the PDCA cycle as an underpinning to environmental
action. This section gives a detailed overview of Toppan’s environmental management structure.

Toppan’s Environmental
Management

cycle is put into practice at every operational site irrespective of ISO 14001 certification. Fifty-seven domestic production
sites and two research facilities have beenpressing ahead with their environmental
activities to achieve the targets set under
the Eco-protection Activity Plan.
The progress of the activities is checked
monthly by the Eco-protection Promotion
Committee to ensure that any problems
that arise are resolved as quickly as possible. Every operational site sends the
Ecology Center reports on major environmental results such as for waste andenergy either monthly or every half year.
Toppan prepares an effective structure
for promptly evaluating progress towards
its Environmental Targets and reviewing
the targets as needed.

Toppan’s environmental management
relies on the operation of an establishedenvironmental management system covering the sales, sales promotion, and R&D
departments in addition to the actual
production sites. Top management conducts ongoing environmental management reviews to ensure that the PDCA
cycle, a core part of this system, continues to improve the efficiency of environmental measures. Data on the actual
results of environmental measures,
meanwhile, are regularly collected by the
Ecology Center in the head office, evaluated and verified by the Director in
charge of the Environment, reported to
top management via the Management
Committees, and so on. The improvements to the system are promoted
throughout the entire Company after further reviews.

Status for Obtaining ISO 14001
Certification
Fifty-four domestic sites (40 systems) andnine overseas sites in the Toppan Groupare now ISO 14001 certified (as of April2007). The latest overseas site to acquire
the certification was Toppan SMIC Electronics (Shanghai) Co., Ltd. in China (certified in February 2007).

Characteristics of Toppan’sManagement System
Toppan’s environmental management
system is uniquely structured. The PDCA

Once a site is certified, it is subject toroutine annual surveillance audits and areassessment once every three years forrenewal. Toppan is working towards thecertification of all of its main operationalsites in the future.

Structure to Promote
Environmental Activities
Under the control and leadership of the
President & CEO and the Director in
charge of the Environment, Toppan has
set up an environmental management
system in every production site, R&D
department, and sales and sales promotion department inside and outside ofJapan. The Ecology Center, a part of the
Corporate Manufacturing, Technology &Research Division at the head office, isdirectly responsible for operating the system. Once the personnel in charge ofenvironmental matters at the operationalsites determine the environmental policies and targets and the measures toimplement and achieve them, theEcology Center works with the employees of the various divisions and production sites to promote those agenda. The

Overview of Environmental Management
Eco-protection Activities
ToppanDeclaration on
the Global
Environment

Legalrequirements
Environmental
aspects
Environmental
impactProduction and Research Sites
Environmental
PolicyEnvironmental
Objectives

Ecoprotection
Activity Plan

Environmental
activities

Environmental
Targets
Review

Medium- andLong-term
Environmental
Targets

Progress review

Ecoprotection
Achievement
ReportAchievement
evaluation/review

National
Eco-protection
Meeting
Report andshare results onenvironmental
activities

Eco-creativity Activities
Sales/SP and R&D Departments
LCA
evaluation
Green
Procurement

Environmental
Targets66

Eco-protection
Promotion
Committee

TOPPAN CSR REPORT 2007

Development
Targets

R&D for environmentallyfriendly products

Subject ofResearch

Review

System for the Developmentof Environmentally-friendly
Products
Achievement
evaluation/review

Targeted
Sales

Sales activities forenvironment-related
business

National
Eco-creativity
Meeting

Progress review

Eco-creativity
Promotion System
Sales management

Total

Report andshare results onenvironmental
activities

Environmental
management
review by top
management(as required)

Review of
Medium- andLong-term
Environmental
Targets

Review ofEnvironmental
Targets

Environmental Management Structure

center also conveys environmental information from the divisions and production
sites back to the managers at these sites.
Toppan has established in-house systems to promote the progress and efficiency of the Company’s Eco-protection
and Eco-creativity Activities undertaken inpursuit of various environmental goals.
These systems are advancing under the
direction of the Ecology Center.
Many of Toppan’s Eco-protection Activities are launched independently at thesite level. Toppan production sites convene their own Eco-protection Promotion
Committees, each with its own subcommittees to address specific issues. The
Company’s strong focus on energy-saving activities has led to the strengthening
and review of the Energy Subcommittees
throughout the Company since thebeginning of fiscal 2003.
With regard to Toppan’s Eco-creativity
Activities, each division has establishedan Eco-creativity Promotion System todevelop environmentally-friendly products
and environmental support businesses.

ture and preparing and implementing
measures designed to leverage the integrated strength of the Group.
In fiscal 2004, the Company established the Toppan Group Eco-products
Meeting to promote the sharing ofenvironmental information on the development of environmentally-friendly products in each Group company. The meeting
engages in various actions to standardize
the criteria for product evaluation.

Reinforcing the Integrated Strengthof the GroupIn fiscal 2003, Toppan reviewed its environmental management structure as acorporate group and began organizing
a semi-annual Toppan Group Environmental Meeting under the auspices ofthe Meetings with the Heads of AffiliatedCompanies. By confirming the progress
towards the environmental targets ofeach company and sharing environmental issues, Toppan is strengthening its
environmental risk management struc-

Environmental Management Structure
President & CEO
Meetings with the Heads ofAffiliated Companies
Corporate Auditor

Toppan Group Environmental Meeting

Director in charge of
the Environment

Directors at
the Head Office

Ecology Center
Corporate Manufacturing,Technology & Research Division

Related Divisions atthe Head Office

R&D Departments

Sales and Sales
Promotion Departments

Domestic and Overseas
Production Sites

IFrequency: Semi-annually
IMajor objectives: Reporting and discussing theachievements of Toppan’s environmental activities
IChairman: Director in charge of the Environment

National Eco-creativity
Meeting

IFrequency: Semi-annually
IMajor objectives: Reporting and discussing
the achievements of environmental activities
IChairman: Director in charge of the Environment

Tokyo Eco-protection
Meeting

IFrequency: As needed
IFunction: Advisory meeting on Company-wide
environmental measures

Tokyo Eco-creativity
Meeting

IFrequency: Semi-annually
IFunction: Advisory meeting on Company-wide
environmental measures

Environmental ISO
Supervisory Meeting

IFrequency: Annually
IFunction: Strategy planning meeting for
ISO 14001 operations

Environmental ISO
Supervisory Meeting

IFrequency: Annually
IFunction: Strategy planning meeting for
ISO 14001 operations

IFrequency: Monthly in principle
IFunction: Operational management of
the environmental management system

Eco-creativity Promotion
SystemEco-protection
Promotion Committee
Energy Subcommittee

Other Subcommittees

IFrequency: Monthly in principle
IFunction: Streamlining of energy use
IEstablished at each operational site,
depending on site-specific environmental
features (type, scale, etc.)

IFunction: Promotion of Eco-creativity Activities inthe divisions

Environmental Management

National Eco-protection
Meeting

Environmental Report

Toppan Group Eco-products Meeting

System for the Development of IFunction: Planning, development, evaluation,
registration, and qualification ofEnvironmentally-friendly
environmentally-friendly products
Products in Each Division
LCA Working Group

IFunction: Execution of product LCATOPPAN CSR REPORT 2007

67

Environmental Report

Environmental Management

Environmental Management Activities
Toppan’s PDCA cycle is being fully implemented through internal environmental audits and theenvironmental management systems of its operational sites. In addition to environmental compliance(the upholding of all regulations relating to the environment), the Company also fully implements
environmental education to maintain and continuously improve its environment-related activities.

Internal Environmental Audit
SystemToppan’s internal environmental audit
system follows a two-stage screening
process: a document audit and an on-site
audit. The internal environmental audit
team consists of registered EMS assistant
auditors in addition to internally certified
environmental auditors. The team begins
by inspecting and evaluating the structural status of systems, compliance withenvironment-related laws and regulations, and compliance with in-housestandards at all the operational sites
audited. Next, the team compiles theInternal Environmental Audit Reports(documents specifying necessary improvements pointed out during audits) andsubmits them to the Director in charge of
the Environment. The internal environmental audits are reviewed within thesame fiscal year in order to systematicallyraise the quality of the audit for the following fiscal year.
Results of the Fiscal 2006 Audit
The internal environmental audit team
identified 527 issues in need of improvement at 59 domestic sites in fiscal 2006.

To correct the deficiencies pointed, each
operational site follows an Improvement
Plan, a list of required improvements anddeadlines for completion. Toppan has
confirmed the progress of improvement
measures on 127 items at 11 operationalsites through internal environmental
audit reviews. The progress and results of
the remaining 400 improvement measures will be reviewed during the internal
environmental audits for fiscal 2007.
Local hearings and inspections are carried out every other year, in principle, atoverseas production sites in Asia and the
U.S.A. Five operational sites in China andone operational site in the U.S.A. were
inspected for local environmental audits
in fiscal 2006. The inspections identified
87 items in need of improvement. The
main points of focus in the inspections
were the implementation and operationof environmental management systems
and the understanding and confirmationof compliance with local environmentrelated laws and regulations. The environmental impacts on water and theatmosphere and the daily control ofenergy and waste were also closely examined. The overseas sites have followed
the example of the domestic sites bytaking necessary procedures under the
Improvement Plan for the improvementof operational conditions.

Approach to Environmental
ComplianceToppan’s production sites endeavor toprevent environmental pollution more
rigorously by complying with all environmental laws, regulations, and agreements set by national and local
governments. The sites also endeavor tocomply with Toppan’s in-house standards, which are usually stricter thannational and local regulatory standards.
The compliance status at every domestic site is reported to the head office inthe Eco-protection Achievement Reports
every April. Overseas sites, meanwhile,submit Monthly Overseas Site Reports.
Compliance at both domestic and overseas sites is evaluated by internal environmental audits.
Compliance in Fiscal 2006
No nonconformities related to the atmosphere were detected in any of operational sites in Japan in fiscal 2006.
With regard to water, however, twoReview of the Internal Environmental Audit
Internal Environmental
Audit Reports*1
Document audit

On-site audit

Summary and evaluation of
results of the internal
environmental audit

A summary of activities conducted throughout the year to ensurecompliance with about 200 items for internal environmental audits
specified by the head office
A pre-check of the Internal Environmental Audit Reports conductedprior to the implementation of an on-site audit to clarify environmental
aspects at each operational site
1) Hearings with managers and personnel in charge of environmental
matters at the operational site, based on the Manual on Hearings
for the Internal Environmental Audit
2) Four-point evaluation (0, 1, 2, and 3) on applicable items, based on
Evaluation Standards for the Internal Environmental Audit
3) Verification of the state of environmental management via an
inspection within and around the operational site, based on the
Manual on Inspections for the Internal Environmental Audit
Summary of issues in need of improvement, along with an evaluation
score and general comments of each operational site. Returned tosenior management at each site for feedback.

Internal environmental audit hearing

Plan for the Improvement of Description of a specific improvement plan in response to issues in need of improvement pointed out during audits. Submitted to the head office upon confirmation bySpecified Issues
the chief of the Eco-protection Promotion Committee at the operational site.
(Improvement Plan)
Internal Environmental
Audit Result Report

Delivered to the corporate auditors and the Director in charge of theEnvironment

Review of Internal
Environmental Audit

Conducted to assess progress and give appropriate guidance on issues
found to be in need of improvement pointed out during audits*1 Operational sites that have already acquired the ISO 14001 certification report their activities in the
management review document.

68

TOPPAN CSR REPORT 2007

Internal environmental audit inspection

Environmental Management Activities

operational sites recorded contaminationlevels exceeding the regulatory standards(BOD, 2 cases; COD, 2 cases). Toppan
took corrective measures in each caseand has kept the levels within the standards since. The Company will continue
to take permanent measures to reliably
prevent recurrence in fiscal 2007.
Regarding the pollution of soil andunderground water, there were confirmed
instances of contamination exceeding
environmental or municipal standards
from fiscal 2001 to fiscal 2006 (shown
below). Toppan has handled every caseby taking soil restoration measures. At
plants where soil has been restored, theCompany monitors underground waterto ensure the reliability of purification
operations. Upon detecting pollution of
the underground water at the Itabashi
Plant in May 2007, Toppan began theprocess of implementing countermeasureswith the counsel of the local authority(➞P.22).
Regarding noise and foul odor, theauthorities alerted the Company to odor
levels that exceeded regulatory standards

in one case in fiscal 2006. The odor
resulted from a defect of deodorizing
equipment and was immediately resolved
by corrective measures. A full report on
the incident was presented to the relevant authorities. Toppan plans to promote more preventive measures and tofurther reduce the levels of noise and foulodor at its operational sites in the future.
Toppan was not subject to any environment-related litigation, penalties, orfines in fiscal 2006.
Emergency Response
Chemical solvents are handled and used
on a daily basis at each operational site.
Some types of accidents that occur during handling and use pose a risk of soil
and water pollution, particularly thosethat occur when solvent is being transferred from tank trucks to tanks. Toppan
has installed pollution-preventive devices
and prepared oil fences, sandbags, andother measures to prevent the outflow ofsolvents in the event of leaks or similar
accidents at operational sites susceptible
to environmental impacts.

Environmental Education
To maintain and continuously improve
the quality and scope of its environmental activities, Toppan recognizes the needto enhance the environmental awarenessof each employee. The Company provides a systematic range of environmental educational opportunities for its entire
workforce, from new recruits to senior
management.
Toppan introduced an e-learning system supported by web-based training infiscal 2002. This system offers educational opportunities for all employees
without any constraints on time or place.
The online platform supports two-way
communications for Q&A and otherforms of dialogue-based learning. Thanks
to this system, employees can learn environmental issues effectively within a shorttime. The e-learning content covers environmental issues involving corporations
and Toppan Group activities*2 (➞P.83).

Environmental Report

Purification of Soil/Underground Water Pollution Monitored by Self-investigation
Operational Site

Location
Koga City,
Fukuoka

Nagoya Plant

Nishi Ward,
Nagoya City, Aichi

Shiga Plant

Higashi-omi City,
Shiga

Asaka Plant

Niiza City,
Saitama

Toppan Electronics,
Inc. (TEI) Miramar
Plant

San Diego
County,California, USA

Itabashi Plant

Itabashi Ward,Tokyo

DetailState in Fiscal 2006

Soil pollution by hexavalentchromium
Underground water pollution byhexavalent chromium and VOCs
Soil pollution by hexavalentchromium(Detected by a voluntary
investigation accompanying
disposal into underground pits)
Soil pollution by hexavalentchromium(Detected by a voluntary
investigation of areas where
substances of concern had beenused on the plant premises)
Underground water pollution by
VOCs(Detected by a voluntary
investigation of well water on
the plant premises)
Soil pollution by heavy metals(lead, etc.) and VOCs

Restoration work wascompleted; undergroundwater is now monitored

Underground water pollution byhexavalent chromium(Detected by a voluntary
investigation of well water on
the plant premises)

Countermeasures are
now being implemented
with the counsel of thelocal authority (Fiscal
2007)

Restoration work wascompleted; undergroundwater is now monitored

Restoration work wascompleted; undergroundwater is now monitored

Underground water is
now monitored

Restoration work is now
underwaye-learning: a screenshot (in Japanese)*2 Toppan reviewed and reorganized its terminal
PC networks for business operations mainly inthe sales and planning departments in fiscal
2006. To avoid system complexity and confusion, the Company decided not to conduct
e-learning training in fiscal 2006.

TOPPAN CSR REPORT 2007

Environmental Management

Vacant lot of theformer Fukuoka
Plant I

69

Environmental Report

Environmental Management

Environmental Communication Activities
In order to make its environmental activities more fruitful, Toppan considers it important to spreadawareness on the environment amongst the wide range of people related to the Group, starting with
employees. Toppan is developing various levels of environmental communication, including environmental
education and integration into local communities.

Major In-house Communication
Activities
Toppan Environmental Link
The Toppan Environmental Link website
was set up on the Company intranet
in fiscal 2001 as a channel for sharing
environmental information and raising
employee awareness on the environment. Links to environmental informationand data on environmentally-friendly
products inside and outside the Company
are provided.
The system has supported interactive
transmission since fiscal 2003, when it
was modified to help activate in-housecommunication.

Toppan Environmental Link (in Japanese)

Formulation of Toppan’s
Environmental Logo
All of the employees within the Toppan
Group must constantly reconsider environmental issues if the Company is to
fully understand its own impacts andpromote comprehensive environmental
activities. The Toppan Environmental Logo
adopted in 1999 is now printed on inhouse publications, business cards, andother materials to remind employeesof the constant need for environmental
action.

Toppan’s Environmental Logo
Toppan aspires to devote increasing attention to
the global environment through its Eco-protection and Eco-creativity Activities. The Environmental
Logo expresses Toppan’s corporate concept andactivities. Toppan’s environmental action is symbolized as a seed that will germinate and grow.
The stalk shooting out of the seed symbolizes the“E” of ecology, and the two leaves represent
Toppan’s Eco-protection and Eco-creativity Activities.

President’s Ecology Awards
Toppan has incorporated the Ecology
Awards in its biannual lineup of
President’s Awards to encourage theenvironmental efforts of employees bycommending excellent environmental
activities. Individuals and groups who
have achieved or contributed in the following ways are nominated as candidates
to receive the award: those who significantly contribute to in-house environmental conservation activities; those whoserve as role models through their successes in promoting ingenious measures
for improvement; those who contribute
substantially to the development ofenvironmentally-friendly technologies or
products that win patents or utility modelrights.
Ecology Awards were granted in fiscal
2005 and before to a group of employees who developed a system for withdrawing acetic ether, employees whodeveloped and commercialized a label for
Biodegradable Plant Pots, several employees who actively promoted risk communication activities, and several employees
who conducted excellent energy management at plants. No Ecology Awards,
however, were conferred in fiscal 2006.

The Environmental Seminar
Toppan held the Environmental Seminar—
Forefront of Ecological Marketing at PLAZA21
on the second floor of the Toppan Koishikawa
Building from the 5th to the 8th of June,
2007. June 5 is World Environment Day, anoccasion established to commemorate theUnited Nations Conference on the Human
Environment held in Stockholm, Sweden on
June 5, 1972.
Eight lectures on environmental marketingwere presented at the four-day seminar. The
lecturers included Toppan personnel in chargeof the environment, experts from environmentally advanced companies, members ofenvironmentally active NGOs, and other key
figures in the environmental field.
Many companies seek ways to link environmental activities with general operations. To
offer guidance to these companies, seminar
lecturers from Toppan, Suntory Limited, and
Kao Corporation spoke on various practical

70

TOPPAN CSR REPORT 2007

activities undertaken in their own companies.
Persons with intensive hands-on involvement
in environmental activities presented lectureson the latest environmental trends and ways
to link environmental efforts among large
numbers of companies. Lecture topics covered: the steps that led up to the collaboration between grass-roots movements andcompanies for milk carton recycling; therecent trend of biomass plastics; eco-productsales methods more intensive than the basic
display of environmental information on products; and the relationships between the global
environment and forests.
The turnout of 510 visitors to the four-day
seminar was counted as a great success.
Toppan is watching eagerly to see if this seminar will help participating companies andorganizations to promote environmental
activities.

Reception at the Environmental Seminar

Lecture on Toppan’s environmental efforts

Environmental Communication Activities

Disclosure of Environmental
Information

Publishing Environmental Reports
Toppan has been disclosing environmental information in its Environmental
Report (re-named the CSR Report in fiscal
2004) since 1998. In line with the development of its global business, Toppan
has been making the same report available in English since 2000. Toppan’s ISO
14001-certified sites have been issuing
Site Reports, periodic communications
directed to municipalities and residents insurrounding communities, since fiscal
2000 (17 reports were issued by 22 operational sites* in fiscal 2006).

Organizing and Participating in
Seminars and Environment-related
Exhibitions
Toppan encourages the public outside
the Company to understand its environmental efforts. It does this mainly by participating in lectures and seminars,
including the conferences of trade andindustrial organizations and programs of
its own. Toppan regards environmentrelated exhibitions as platforms for practicing environmental communication
activities.

*Excluding overseas subsidiaries and certain independent subsidiaries

Environmental Report

Communication with Local
Communities
The communities around Toppan’s plants
filed 37 complaints and inquiries (16 ofthem new) at 11 operational sites in fiscal 2006, indicating that many stakeholders were inconvenienced. The complaints
dealt mainly with noise and foul odors,
two forms of urban pollution. While mostof the problems were promptly solved,
several problems related to production
activities require further efforts. Toppan
will continue to make capital investments
to improve environmental equipment anddeepen communication with local residents.
Toppan recognizes the importance ofcommunicating with local communities.
To make clearer its responsibility for the
impact of its business activities on theenvironment with the momentum fromthe launch of the PRTR law, the Company
has thoroughly reviewed both its understanding of the current situation throughenvironmental assessment and the methods used to exchange opinions withthird-parties through risk communication.

In addition to presenting guidelines fromthe head office, Toppan shares information by holding Risk Communication
Study Groups and implements risk communication based on the actual status ofits operational sites.

Exhibiting at Eco-Products 2006

Workshops in Toppan’s exhibition booth

Making cards at a workshop by Toppan Forms

Recycling of PET bottles into fibers

Making postcards with Cartocans

TOPPAN CSR REPORT 2007

Environmental Management

Toppan exhibited products in cooperation
with its Group companies (Tokyo Shoseki Co.,
Ltd., Toppan Forms Co., Ltd., Toppan Cosmo,
Inc., Toppan Label Co., Ltd., and froebel-kan
co., ltd.) at the Eco-Products 2006 exhibition
held in December 2006. The Company classified the environmentally-friendly products on
exhibit into four categories to enlighten visitors on the environmental considerations
entailed in the manufacture of everyday products for the public: recycling, resource-saving,health & safety, and environmental education.
Fun environmental events were arranged
not only for schoolchildren, but visitors of allages. All of the Group companies that took
part in the exhibit prepared hands-on eventsof their own. Highlights among them were aquiz to challenge visitors to tell real woodapart from printed grain and the “Let’s”
workshops (“Let’s make paper crafts,” “Let’s
learn about future energy,” and “Let’s
become artists with soft eco-clay”).

71Environmental Report

Environmental Conservation Activities

Mitigating Global Warming and Saving Energy
Toppan could not accomplish its target for reducing CO2 emissions per unit of sales in fiscal 2006. The main
factor impeding progress was increased energy consumption caused by the launch of new plants and theinstallation and operation of environmental conservation equipment. The Company will push further
ahead with its environmental conservation activities mainly through the development of energy-saving
action on various fronts in fiscal 2007.

Energy-saving Activities
Toppan is constantly searching for more
effective ways to conserve energy to
reduce the emissions of carbon dioxide(CO2) and other greenhouse gasses. To
respond to the Kyoto Protocol targets for
reduced greenhouse gas emissions, theCompany has established the following
Medium- and Long-term Environmental
Target: To reduce CO2 emissions per unitof sales by 10% by fiscal 2010 comparedto the fiscal 2000 level. The Company
also sets a yearly target based on themedium- and long-term target. To meet
Toppan’s overall target for the year, every
production site sets individual targets foremissions per unit of production value
and emissions per unit of production volume by product type.
Toppan began its activities in fiscal
2006 with the following target: To reduce
CO2 emissions per unit of sales by 4%compared to the fiscal 2005 level. By theend of the fiscal year, however, Toppan’svarious energy-saving activities to reduce
CO2 emissions had failed to counterbalance the additional CO2 generated by
new operations. As a result, CO2 emissions per unit of sales actually increasedby 2.9%. Energy-saving activities reduced
CO2 emissions by about 10,000 tons,
whereas the CO2 generated by thelaunch of new plants and installation andoperation of environmental conservationequipment exceeded that level.
CO2 emissions per unit of sales have
now increased by 12.0% compared to
the fiscal 2000 level. Toppan must clearlytake more intensive and longer-runningmeasures to accomplish its medium- andlong-term target.
Details of the Company’s Efforts
Toppan controls the use of incidental
equipment such as boilers, refrigeratingmachines, compressors, and ventilationfans on a regular basis to ensure that theequipment stays working under appropriate operational conditions with minimalenergy loss. To prevent energy loss due
to reduced efficiency in older equipment,
Toppan asks third-party companies to
identify any equipment in need of overhaul or renewal. The energy-saving measures applied for incidental equipment
are adopted for production lines as well.
Recent measures to improve energy efficiency include the introduction of thermal
insulation coatings to minimize thermal

Energy Consumption(1,000 GJ)
24,00018,000

16.34

16.15

16.07

14,46914,946

15,38815,962(1,000 t-CO2)
1,200(tons/million yen)
1.00

CO2 emissions
CO2 emissions per unit of sales

17.04
17,79614.25
13,812

Inspecting heat release spots by thermography

CO2 Emissions(GJ/million yen)
20

Energy consumption
Energy consumption per unit of sales
15.87

loss from dryers and the use of a unitbased management system to visualize
data on energy consumption and production amounts in order to detect and repair
energy loss or malfunctions.
Toppan will develop those activities
across the Company while organizing
new measures to accomplish the target.
The new measures call for ongoing fuelconversion efforts, the adoption ofenergy-saving systems in the air-conditioning equipment for power-hungry
clean rooms, and the hiring of experts tocheck energy efficiency and formulate
practical energy-saving measures.

15

900

0.73

0.74

0.72

0.71

687

710

0.66
637

661

675

0.74

0.75

768

12,000

10

600

0.50

6,000

5

300

0.25

0
2006
(Fiscal year)

0

0

2000

2002

2003

2004

2005

2000

2002

2003

2004

2005

0
2006
(Fiscal year)

Note: Excludes figures for overseas subsidiaries and certain independent subsidiaries. The calorific value associated with electricity consumption is calculated
uniformly as 0.00983 GJ/kWh. When Toppan calculates its own CO2 emissions, it ensures the comparability of emission data over time by referring not to
the Manual on Calculating and Reporting Greenhouse Gas Emissions (2007), but to the Ministry of the Environment’s Guidelines for Calculating
Greenhouse Gas Emissions from Businesses (2003). When calculated by the method specified in the manual, CO2 emissions in fiscal 2006 amount to810,519 tons. The large gap in emission volumes results from the difference in emission factors for electricity and city gas. The detailed ratios by energy
type are shown on P.83. The Company does not use the 1990 emissions as the base year value, since problems with the accuracy of measurement in fiscal
1990 and expansions and revisions in the scope of data since then would make a retroactive calculation highly contingent on elaborate estimates.

72

TOPPAN CSR REPORT 2007

Resource Circulation
Through its comprehensive management of waste materials, Toppan has increased the number of zeroemission sites to 32 and reduced its waste generation per unit of production value and final landfill waste
disposal by 3.6 % and 46.2%, respectively, compared to the previous fiscal year. Toppan will continue topromote the reuse of waste as recycled resources.

Waste Reduction Activity

by 95% by fiscal 2010, compared to thefiscal 2000 level.
From fiscal 2006, Toppan has also
been pursuing the new target of reducing waste generation per unit of production value. The result for fiscal 2006 wasa 3.6% reduction relative to the fiscal
2005 level, falling short of the 5% reduction target for the year. To control thewaste generation on a continuous basis
in the years to come, Toppan now aims
at a 25% reduction of waste generation
per unit of production value by fiscal
2010, compared to the fiscal 2000 level,
as its medium- and long-term target for
fiscal 2007.

Development of Zero-emission
Target and Reuse of Waste as
Recycled Resources
In a move to standardize its approach towaste reduction, Toppan launched activities to achieve zero-emission targets at anumber of plants selected as “zero-emission models” in 1999. Based on the
results achieved at these model plants,
Toppan began certifying “zero-emission
sites” in November 2001.
The recycling rate, an external factor

Environmental Report

Waste paper, a waste product derived
primarily from Toppan’s Information &Networks and Living Environment Fields,comprises 74% of the total waste generated by Toppan’s operational sites. Waste
acids (such as waste etchant from plants
in the Electronics Field) and waste plastics(from plants in the Living Environment
Field) also make up substantial portionsof the total waste generated.
Aiming for improved waste management performance, the Company previously set the medium- and long-termtarget of reducing final landfill waste
disposal by 90% by fiscal 2010, compared to the fiscal 2000 level. In fiscal
2006, Toppan achieved a 46.2% reduction of final landfill disposal relative tothe fiscal 2005 level, far surpassing the
10% reduction target for the year. This
resulted in a 91% reduction from the fiscal 2000 level, enabling the Company tomeet medium- and long-term target
ahead of schedule by four years. To takeadvantage of its momentum in this direction, the Company reviewed the earlier
target and set a new one for fiscal 2007:
to reduce final landfill waste disposal

beyond the Company’s control, has great
influence on the degree to which theCompany can expect to achieve its zeroemission targets. To solve this problem,
Toppan reviewed its certification criteria
and redefined zero-emission sites asplants with recycling rates of at least
98% and zero-emission approval by the
Ecology Center in the head office. The
center certified and registered 32 operational sites in fiscal 2006.
To advance further in its zero-emission
initiatives, Toppan began setting a yearon-year target for its material recycling
rate in fiscal 2006. In the first year theCompany achieved an 87% recycling
rate, surpassing the 60% target set. Two
important tasks in further promoting
material recycling will be to use waste
more effectively in-house and to develop
recycling through external communication. Toppan is promoting the maximum
reuse of the waste generated from every
process throughout the Company, withthe target of obtaining the zero-emission
certification for all domestic sites by fiscal
2010 (➞P.83, 84).

Total Waste Generation, Final Landfill Waste Disposal, andRecycling Rate
(1,000 tons)
500
92.9

Final landfill waste disposal
Total waste generated
Recycling rate (recycling amount/total waste generated)
93.1

94.4

95.4

96.3

(%)
100

98.0
80

400
318.7

321.6

330.9

325.0

324.5

300

60

200

40

20

100
24.0
0

Refuse sorting basket

2000

14.0
2002

10.5
2003

5.9

3.8

2004

2005

2.0
0
2006
(Fiscal year)

Notes: Excludes figures for overseas subsidiaries and certain independent subsidiaries.
Final landfill waste disposal is direct landfill disposal plus landfill disposal of residues from intermediate treatment. It includes the residues
discharged from the recycling processes.

Environmental Conservation Activities

337.2

Waste paper volume reduction within
the Company

TOPPAN CSR REPORT 200773

Environmental Report

Environmental Conservation Activities

Pollution Prevention and Chemical SubstanceManagement and Reduction
Toppan is working to reduce its burden on the environment and prevent pollution by establishing andcomplying with in-house control standards even more stringent than the legal requirements. Toppan
worked in fiscal 2006 to reduce emissions of VOCs, mainly toluene, and the consumption of chemical
substances designated under the PRTR law.

Pollution Prevention Activities
Toppan prevents pollution by collecting
information at each operational site inorder to glean an accurate picture of theactual state of pollution and other environmental burdens. The Company works
actively to reduce its burden on the environment and prevent pollution by complying with in-house control standards(established by the Eco-protection Promotion Committee for each operationalsite) even more stringent than the legal
requirements.

fiscal 2006. VOC emissions in fiscal 2006
were reduced by 25% compared to fiscal
2005, far surpassing the 10% target set.
Toppan is considering imposing control
in accordance with the relevant laws
and regulations in order to continuously
renew all of its equipment that uses designated chlorofluorocarbon (CFC-11).

Preventing Atmospheric Pollution
and Protecting the Ozone Layer
To prevent atmospheric pollution,
Toppan controls smoke- and soot-generating equipment such as boilers andincinerators by switching fuels and managing operations under appropriate combustion conditions. The Company has
also introduced VOC effluent gas treatment equipment for the thoroughcontrol of atmospheric pollutants. The
Medium- and Long-term Environmental
Target and the annual target for VOC
emissions into the atmosphere have beenreviewed based on industry targets since

Preventing Water and Soil Pollution
Toppan manages wastewater at its plants
by installing wastewater treatment facilities
designed to ameliorate specific production processes. Newly introduced wastewater recycling systems have improved
the rates of wastewater reusage, particularly in the production sites in Electronics.
This has reduced the water consumption
and effluent discharge of the Company
as a whole. The process wastewater iscompletely recycled in the Mie Plant II, afacility completed in January 2007.
Toppan’s principal safety concern inmanaging its chemical solution storage
tanks is to prevent the leakage of fluids.
Walls have been constructed around thestorage tanks and workers regularly
inspect the tanks and piping to detectcracks and other flaws before soil pollution can occur.

VOC Emissions into the AtmosphereNOx and SOx Emissions(tons)
20,000Since establishing a new target to reducethe consumption of chemical substances
designated under the PRTR law in fiscal
2006, Toppan has systematically promoted a switchover to materials with little to no PRTR content. Toppan targeteda year-on-year reduction of 10% in the
consumption of such materials, whereas
the result for fiscal 2006 was an 11%
increase. The major factors behind thisincrease were the inclusion of the NEC
Toppan Circuit Solutions, Inc. (TNCSi)
Toyama Plant in the total results for fiscal
2006 and the higher chemical consumption resulting from the growth of
production. However, Toppan managed
to significantly reduce the consumptionof HCFC-141b. More alternatives will be
adopted to reduce the consumption ofchemical substances designated under
the PRTR law in the years to come. The
actual levels of consumption will bereported in fiscal 2008 after a review of
the calculation criteria.

Total Release and Transfer of Chemical
Substances Designated under the PRTR Law(tons)
250

19,516

Management of Chemical
Substances

NOx

SOx

(tons)
4,000

224
200

201

Transfer

3,479.4
3,140.9

195

194

Total release

15,0003,000
150

10,000

2,000
9,903

7,456

0

50

2000

2005

2006
(Fiscal year)

Note: Covers operational sites that handle at least
1.0 ton annually. Excludes figures for overseas subsidiaries and certain independent
subsidiaries.

74

1,328.459

5,000

TOPPAN CSR REPORT 2007

1,812.9

100

0

45

41

36

2003

2004

2005

2006
(Fiscal year)

Note: Excludes figures for overseas subsidiaries
and certain independent subsidiaries. Figures
are calculated based on the Environmental
Activities Evaluation Program issued by the
Ministry of the Environment in April 2002.

1,031.8

1,000

0

749.5

2003

2004

2005

892.5
671.7

2006
(Fiscal year)

Note: Calculated from the release and transfer ofchemical substances designated under the
PRTR law at each operational site. Dioxins
are not included, due to a difference in the
counting unit. The figures at overseas subsidiaries and certain independent subsidiaries
are excluded. The data for fiscal 2004 havebeen restated based on the revised methods for aggregation.

Approach to Logistics
Toppan Logistics Co., Ltd., a Group company, handles logistics for the Toppan Group. The utmost
environmental challenge in logistics in the Group is to reduce the environmental burden caused bytransportation. The Group is organizing energy-saving measures in logistics while securing safe
transportation.

New Efforts for Energy Savingin Transportation

Efforts to Reduce
Environmental Burden

Fiscal 2006 Results

Toppan Logistics operates its ISO 14001certified environmental management
system (EMS) to effectively promote environmental conservation activities as apart of its efforts toward environmentally-friendly transportation. It develops
EMSs throughout operational sites acrossJapan, including the Kawaguchi andNishigaoka sites, its major logistics bases.
Toppan Logistics is also developing an
eco-drive campaign to improve gas
mileage by promoting the installation ofdigital tachometers in its own vehicles
and the vehicles of partner companies.

CO2 Emissions Per Unit of Sales
at Logistics Sites in the Kanto Area

Mileage of Company-owned Vehicles(t/million yen)
4.5

Efforts for Safe Transportation
Toppan Logistics established a safety
management system to improve thesafety of its own vehicles under therequirements of the comprehensive law
on transport safety enforced in October
2006.
Formulating basic policies and targets
on safe transportation, Toppan Logistics
has posted them on its website since fiscal 2006.

Environmental Report

As a company engaged in the transportof more than 30 million ton-kilometers offreight per year, Toppan is classed a“designated shipper” in the revised
Energy Saving Law enforced from April
2006. Under this designation, Toppan
will be required to take energy-saving
measures for the reduction of CO2 emissions associated with transportation fromfiscal 2007.
Toppan Logistics Co., Ltd. is conducting energy-saving activities together with
Toppan to reduce the CO2 emissions
associated with transportation by 1%
year over year—the target required by
the law.
The Environmentally-friendly Logistics
Management System has been operated
as a measure to reduce CO2 emissions
during fiscal 2006. This system has
reduced CO2 emissions per unit of sales
by 12.7% compared with the fiscal 2002
level.

•12.7% reduction in CO2 emissions per unitof sales compared to the fiscal 2002 level (atlogistics sites in Kanto area)•21.2% improvement of mileage comparedto the fiscal 2002 level (for company-owned
vehicles)•Establishment of the environmental management system
Acquisition of ISO 14001 certifications at all
operational sites of Toppan Logistics
Renewal of the Green Management certification•Establishment of the safety management system
Acquisition of the G Mark certification for
excellence in operational safety•Installation of more digital tachometers (inabout 200 vehicles—diffusion rate: approx.
20% throughout Toppan Logistics and partner companies)•Adoption of low-pollution trucks
Vehicles meeting the standards of the New
Long-term Exhaust Gas Regulation
CNG vehicles, hybrid vehicles•Promotion of eco-drive
Education and practical training for drivers(twice a year)(km/L)
4.5
4.18

4.0 3.95

4.0
3.75

3.65

2002

2003

2004

2005

3.45

2006
(Fiscal year)

Truck equipped with a digital tachometer

3.79

3.80

2003

2004

Environmental Conservation Activities

3.48

3.5

3.0

3.88

3.5 3.45

3.0

2002

System to monitor vehicles

2005

2006
(Fiscal year)

Information on safe transportation posted on the
Toppan Logistics website (in Japanese)

TOPPAN CSR REPORT 200775

Environmental Report

Environmentally-friendly Products and Environment-related Business

Development and Assessment of Environmentallyfriendly Products
Toppan plans and develops its environmentally-friendly products based on in-house evaluation criteria,
all of which are compliant with ISO 14021. The environmental burdens are quantified through ISO-14040compliant LCA procedures. Each Group company introduces Eco-products Standards and takes part in
the planning, development, and assessment of environmentally-friendly products.

Toppan’s Basic Thinking on
Environmentally-friendly
Products
Toppan develops its environmentallyfriendly products based on its own set ofstandards established in close consideration of the industries in which the divisions operate. The overarching criteria are
Toppan’s 14 Environmental Points basedon ISO 14021 standards. The Ecology
Center evaluates the developed products
and registers those that meet all of
the criteria for “environmentally-friendly
products.”
Toppan attaches Environmentallyfriendly Product Certification Labels to allof its environmentally-friendly products.
These labels fulfill accountability requirements while enlightening users on relevant environmental considerations.
Toppan has produced 85 environmentally-friendly items so far (as of the end of
March 2007) (➞P.81).

Environment-related Business

EPOP, an electronic POP tool made with safe
materials and leadless solder around the board

Toppan works to realize a recycling-oriented society by promoting the recycling
business and marketing environmentallyfriendly products. Lower rates of adoptionof environmentally-friendly products in
Commercial Printing led to a decline in
the sales of environmentally-friendly
products by Toppan in fiscal 2006. The
Company will endeavor to boost sales
through collaborative thinking at the Ecocreativity Meeting.
Sales of Environment-related
Business (Nonconsolidated)(Million yen)
80,000

Cartocan is a small, paper-based beverage container made without metals such as aluminum
foil. The container can be shipped and stored forlong periods at ordinary temperatures.

63,02760,00048,47856,252 54,151

51,96840,00020,0000Stripping and heat-sensitive label for glass bottles:
no more sticky labels to manage during recycling

2002

2003

2004

2005 2006(Fiscal year)

Note: The sales of the former Industrial Materials
Division have been excluded from the results
since fiscal 2005, when the division was spun
off into a separate company. The figures forfiscal 2004 and 2005 are restated based onrevisions of the calculation methods.

Toppan’s 14 Environmental Points and Environmental Considerations
Toppan’s 14 Environmental
Points for EnvironmentallyToppan’s Standards
friendly Products
Products and
1. Use of safe materials
Toppan will not use substances banned by industrial organizations or substances that could
potentially contaminate the Company’s products with environmental hormones.
distribution
Recycling rate
2. Use of recycled materials Toppan will not produce products from recycled materials that could potentially containenvironmental hormones or substances banned by industrial organizations.
Resource reduction 3. Resource-saving
The consumption of resources is reduced during the materials production and logistics
processes.
4. Reduced energy conThe consumption of energy and water is reduced during the production and logistics
sumption in production processes.
Recovered energy 5. Use of recovered energy Products are produced with surplus energy or energy recovered from waste materials.
Reduced solid
6. Reduced solid waste
The generation of solid waste is reduced through modifications of the production process,waste
product design, and packaging. (Byproducts reused in processes are not included in thiscategory.)
Use
Energy-saving
7. Energy-saving
Energy consumption is reduced during product operation.
8. Reduced release of
Products release the lowest possible levels of chemical substances.
chemical substances
Long-life products 9. Long product life
Product lifetimes are extended by improving durability and adopting scalable designs.
After use
Reusable/refillable 10. Reusability
Products can be reused or refilled for their original or related purposes. Systems andinfrastructures are provided for collection and reuse.
Recyclable
11. Recyclability
Systems and facilities are provided for product recycling. Recyclable parts are indicated as such.
12. Suitability for disposal
The materials used discharge the lowest possible levels of harmful gases during incineration.
Landfill waste is carefully treated to prevent all forms of soil contamination.
Easy detachment
13. Easy separation and
Product designs enable easy separation and disassembly. The parts and materials used
designdisassembly
support product recycling.
Degradability
14. Biodegradability
The biodegradable and photodegradable materials used in the products break down naturally
and are assimilated back into the environment.
Life Cycle
Stage

76

ISO 14021
Environmental
Labeling Type II

TOPPAN CSR REPORT 2007

Development and Assessment of Environmentally-friendly Products

LCA Approach

Activities by Group Companies

Toppan uses Life Cycle Assessment (LCA)
procedures to develop products withlower environmental burden. The Technical Research Institute applied LCA procedures to six products under research anddevelopment in fiscal 2005 and 2006
(A to D, products in the Living Environment Field; E and F, printed materials).
According to analyses of the environmental burdens of the manufacturing methods and raw materials used for theseproducts, the products can be organized
into three groups based on differences in
the proportions of their CO2 emissions
associated with manufacturing methods:(A, B, C), (D), and (E, F).
In fiscal 2007, the Technical ResearchInstitute will appoint a person to oversee
LCA in each of its departments andto assess and reduce the environmental
burdens of Toppan products being
researched and developed. Toppan has
reviewed the systems and plans for theregional divisions in the Living Environment Field, where the LCA approach has
not been carried out as scheduled.

Group companies are also helping toestablish a recycling-oriented society
through production activities that place
importance on the preservation of the
global environment.
Each Group company has been establishing a set of Eco-product Standards inline with industry conditions and featuresof product categories since fiscal 2005.
These companies develop, produce, andmarket products in environment-related
businesses under their Eco-productStandards. Total sales in these businesses
stood at 164.3 billion yen in fiscal 2006.
The efforts of Group companies todevelop, produce, and market environmentally-friendly products based on theirown Eco-product Standards have helpedto activate the environmental activities
throughout the Group.

Management of Chemical
Substances in Products
Manufacturers operating globally areurgently pressed to manage chemical
substances in products in order to minimize risks to the health of consumers andthe global environment by reducing thelevels of harmful chemicals in their products insofar as they can.
Toppan has responded by establishinga set of Guidelines for Management ofChemical Substances in Products andapplying the guidelines in periodic
reviews of in-house rules and systems for
quality assurance. In order to monitor thecompliance with those rules and systems,
on-site audits regarding the managementof chemical substances in products havebeen started in the plants.

Environmental Report

LCA Results for Products being
Researched and Developed (A to F)(Proportion of CO2 emissions)
Processing energy
Energy consumed by related equipment
Raw materials
A

Ecosheet, a door surface material designed toreduce the levels of chemicals responsible for sickhouse syndrome, and Coordination Floor, a flooring material. Both are manufactured by Toppan
Cosmo, Inc.

CDManaging chemical substances at plants

E
F
0

20

40

60

80

100
(%)

Fresh direct label, a peel-off label made with ahighly safe adhesive approved by the U.S. Foodand Drug Administration. Manufactured by Toppan
Forms Co., Ltd.

TOPPAN CSR REPORT 2007

Environmentally-friendly Products andEnvironment-related Business

B

77

Environmental Report

Environmentally-friendly Products and Environment-related Business

Environmentally-friendly Printing Services
Toppan provides environmentally-friendly printing services to respond to the demands of society. Every
process is approached from an environmentally-friendly stance, from the initial design and selection of inks
and papers to the latter stages of printing, binding, and processing.

Introduction of the GPN
Purchasing Guidelines forOffset Printing Services
As a member of the Green Purchasing
Network (GPN) (➞P.45), Toppan tries tominimize the environmental impact ofprinting and provides printing services
based on the Purchasing Guidelines forOffset Printing Services. The Company
applies environmentally-friendly technologies at every step of the process,from the selection of designated inks andpapers to surface processing and binding.
Many local governments and companies
involved in Green Purchasing activities
have adopted these services.
Production and Plate-making
Toppan saves natural resources andenergy by excluding filming and development processes through the full digitalization of every stage, from original
manuscript to plate-making.

Using Environmentally-friendly Inks
Toppan has developed a soybean-oil ink
that contains virtually no aromatics, aclass of organic compound harmful toboth the human body and the earth’s
atmosphere. The Company has also commercialized a recycled vegetable-oil ink
made from used soybean oil collectedfrom school cafeterias, restaurants, andother such sources.
Providing Environmentally-friendly
Paper
Printing paper is a resource directly related
to the conservation of forest resources.
The types of printing paper in use today
help conserve forest resources: recycled
paper, tree-free paper, FSC-certified
paper, and paper made with pulp fromforest-thinning operations.

Waterless Printing System
The waterless printing system uses a silicone layer that repels ink in lieu of water.
This eliminates the need for dampening
water containing isopropyl alcohol (IPA),
an organic solvent, and the resulting discharge of liquid waste.
Environmentally-friendly
Bookbinding and Finishing Processes
Fragmentation-resistant hot-melt is anadhesive suitable for use on paper to berecycled. Besides offering strong cohesion, it can be completely removed fromprinted materials without fragmenting
during recycling. Toppan has also developed methods for bookbinding andprocessing to confer outstanding recyclability. With Eco-binding, for example,
printed materials can be bound without
the stitching wire used in saddle stitching.

Toppan’s Advanced Environmentally-friendly Printing Technology
IColor Management System (CMS): A computer-based color management technology for printing
IDigital photography technology: A photographic technology requiring no film
IDirect Digital Color Proof (DDCP): A color proof technology requiring none of the films previously
required for the prepress process
IComputer to Plate (CTP): A plate technology that sends digital data directly to the printing plate

Environmental Considerations in Producing this Report
Toppan actively applies various environmentally-friendly technologies and methods in theprinting of the Toppan CSR Report.
Toppan has been manufacturing Cartocan
to promote the use of wood from forest-thinning operations since 1996 (➞P.20, 79). The
use of wood from forest-thinning operations
conserves domestic forest resources andencourages the proper nurturing of forests.
The body of the CSR Report has been
printed entirely on paper containing pulp
from forest-thinning operations for the last
two years. This is an advance over the CSR
Report 2004, in which only some pages wereprinted on this type of paper. Toppan willcontinue to promote environmentally-friendly
printing services and the use of paper designed
to benefit domestic forest resources.

78

TOPPAN CSR REPORT 2007

Environmental Considerations in the CSR Report 2007
Processes andMaterials
Photography

Specific Measures

Environmental Considerations

Use of digital photography for the new Elimination of filming andimages recorded for this year’s reportdevelopment (conventional
photographs from previous reports are
now recorded digitally)

Design andediting

Digital processes by DTP

Reduction of mid-process materials
such as artwork

Prepress

Plate-making by CTP

Elimination of the films required formaking plates

Printing

Sheet-fed press waterless printing

Reduction of IPA use, elimination ofwaste fluids

Paper

Cover: 100% recycled paper
Body: 70% domestic pulp, including
10% pulp from forest-thinning
operations

Forest resource-saving and proper
forest nurturing

Ink

Recycled vegetable oil made forwaterless printing

Resource-saving, use of recycledmaterials

Bookbinding andfinishing

Fragmentation-resistant hot-melt(EVA-base)

Improved recycling efficiency

Forest Management and Formulation of
Recycling-oriented Society
Toppan procures materials in ways amenable to promote sound forest management for the preservationof the ecosystem. One way to preserve the ecosystem is to develop a range of recycling mechanisms infull recognition of the importance of the 3Rs (reducing, reusing, and recycling) for the realization ofa recycling-oriented society.

Cartocan

FSC COC Certification
In May 2002, Toppan became the firstcompany to acquire the Forest Stewardship Council (FSC) Chain of Custody(COC) certification in the field of commercial printing in Japan. In February
2003, the Company acquired the COC
certification in wooden processing as
well. Toppan is convinced that the diffusion of products with the FSC logo will
enhance forest operations and environment-related communication between
corporations and customers. The Company will regularly propose products with
the FSC logo to customers.

Tree-planting Programs
In 1997, Toppan joined with Oji Paper
Co., Ltd. and Nissho Iwai Corp. (nowSojitz Corporation) to establish GPFL*1,
a tree-planting venture to produce
hardwood chip in Victoria, Australia(Hokkaido Electric Power Co., Inc. joined
the venture in 2000). The Company participates in efforts to develop methods
for monitoring CO2 absorption in forests.
Toppan has also participated in the
PPT’s*2 hardwood planting program in
Tasmania, Australia since fiscal 2004. The
Company seeks to acquire a third-party
forest management certification in theseafforested areas and to establish a system
for the traceability of wood products.
Toppan has been collaborating in study
and research on plantation as a supporting member of the Japan Overseas
Plantation Center for Pulpwood since
fiscal 1999.

Environmental Report

An urgent measure to mitigate global
warming will be to promote CO2 absorption by the trees grown in Japan. Efforts
for the sound nurturing and maintenanceof forest resources will require a poolingof efforts by the government and private
sector. The Forestry Agency has responded
by undertaking KIZUKAI-UNDOH (Wood
Products Utilization Campaign), a campaign to encourage forest maintenanceby promoting the use of domestic lumber, including lumber harvested from forest-thinning operations.
Supporting the KIZUKAI-UNDOH campaign, Toppan promotes the sound nurturing and maintenance of the country’s
forest resources by using domestic lumber to produce its paper-based beveragecontainer, Cartocan.
To extend the benefits of Cartocan, acontainer made of a high-quality paper
similar to that used for milk cartons,
Toppan established a system for the recycling of empty Cartocans into toilet
paper in January 2002. The Cartocan
recycling system salvages the paper fromunwashed Cartocans and re-commercial-izes the recycled material. ECO-GREEN,
an environmentally-friendly toilet paper,
is made from approximately 50% used
Cartocans. Toppan purchased 2,413
cases (60 rolls a case) of ECO-GREEN in
fiscal 2006, about 40% more than it purchased in fiscal 2005.

ECO-GREEN Purchasing(Case)
2,413

2,500
2,000

1,717
1,473

1,500
1,000

1,486

985

500
0

2002

2003

2004

2005

2006
(Fiscal year)

FSC COC Certification
The FSC forest management certification system
is a framework to approve proper forest management under the principles and standards established by Forest Stewardship Council. The FSC
Chain of Custody (COC) certification can only be
granted to comprehensive management systems
that effectively prevent the admixture of lumber
from certified forests with lumber from non-certified forests during any part of the production
process from manufacturing to distribution.

Tree planting by GPFL (upper) and PPT (lower)*1 GPFL: Green Triangle Plantation Forest Companyof Australia Pty. Ltd.
*2 PPT: Plantation Platform of Tasmania Pty. Ltd.

TOPPAN CSR REPORT 2007

Environmentally-friendly Products andEnvironment-related Business

Cartocan obtained the forest-thinning productmark (left). The 3.9 GREENSTYLE MARK, a logoof the KIZUKAI-UNDOH. Toppan obtained theregistration number (right).

79

Environmental Report

Environmental Data

Environmental INPUT/OUTPUT Data by Business Field■Combined Results by Business(Entities covered: Toppan Group [➞P.5], excluding Toppan Photomasks, Inc.)

Total energy consumption (GJ)

8,376,089

Information &Networks
7,338,393

Electricity consumption (GJ)

7,367,659

4,864,381

4,364,809

594,832

17,191,682

Fuel consumption (GJ)

1,008,430

2,474,012

1,603,699

165,1145,251,255

Water consumption (1,000 m3)

13,411

2,161

2,163

353

18,089Industrial water (1,000 m3)

1,780

783

438

0

3,002

Municipal water (1,000 m3)

183

938

665

353

2,140

Groundwater (1,000 m3)

11,448

440

1,059

0

12,947

Electronics
Energy

INPUT

Water

Use of rainwater (1,000 m3)

2

0

14

17

0

33

0

9,467

385,393

326,082

289,332

31,237

1,032,044

0

1,326

552

0

1,878

NOx emission (kg)27,65881,646

131,146

16,411

256,861

SOx emission (kg)34,326322

36,70646

71,401

0

5.9

27.6

0

33.5

Total effluent discharge (1,000 m3)

12,153

1,342

1,574

319

15,389Public water system (1,000 m3)

10,444

175

992

0

11,611

Sewage system (1,000 m3)

1,710

1,167

582

319

3,778

3

1

41

0

45

1,204

750

430

49

2,434

BOD (kg)

122,805

74,70828,4174,132

230,062

COD (kg)

158,470

48,292

10,935

0217,697

Nitrogen discharge (kg)32,340

3,527

9,851

1,264

46,981

742

388

758

101

1,988

Total generation (tons)

50,693

235,114126,029

4,728

416,564

Reused and recycled (tons)

43,311

232,763

120,555

4,028

400,657

Final landfill waste disposal (tons)

3,822

1,607

3,599

141

9,168

CO2 emission (tons)
Emission of ozone-depleting substances (ODP-kg)

OUTPUT

Underground penetration (1,000 m3)
On-site evaporation (1,000 m3)

Phosphorous discharge (kg)
Waste

Total

0

Emission of dioxins (mg-TEQ)
Water and soil
environments

22,442,937

9,434

Use of water circulated on premises (1,000 m3)
Atmosphericpollutants

Non-production
Living
Sites
Environment
759,946
5,968,508

Note: The Company refers to the Ministry of the Environment’s Guidelines for Calculating Greenhouse Gas Emissions from Businesses (2003) for its own calculation of CO2
emissions. The calorific value associated with electricity consumption is calculated uniformly as 0.00983 GJ/kWh.

Green Procurement/Green Purchasing■Toppan’s Green Procurement Standards(Revised in fiscal 2006. Figures for fiscal 2004 and 2005 are based on previous standards.)
Level 2

Level 1

Performance
Fiscal 2004 Fiscal 2005 Fiscal 2006

Paper
1. Recycled paper usage*1

70%+ recycled paper, or forest-certified
paper, tree-free paper, paper made withpulp from forest-thinning operations
Below 70% (down to +4%) for
Below 80% (down to +4%) for
non-coating paper
non-coating paper
Below 12 g/m2 (Maximum of 8 g/m2
Below 30 g/m2 (Maximum of 17 g/m2
per single surface)per single surface)
100% ECF-bleached pulp (no chlorine gas [Cl2] used for bleaching)
100% recycled paper, or 70% recycled
paper plus 30% forest-certified paper

2. Degree of whiteness*2
3. Coating volume
4. Chlorine-gas-free pulp usage

24.7%

21.3%

19.8%

97.6%

97.3%

97.1%

Offset Ink*3
1. Avoiding materials harmful
to the human body
2. Avoiding the use of substances
known to generate hazardous
substances
3. Considerations on chemical
substances designated under
the PRTR law
4. Controlling VOC emissions

Conforms to the NL restrictions of the Association of Japan Printing Ink
Manufacturers
Non-usage of chloride-based resins

Non-usage of substances designatedunder the PRTR law

Identification of substances designatedunder the PRTR law (preparing for MSDS)

VOC content below 1% (non-VOC ink):
Excluding ink for web press

VOC content below 15% (low-VOC ink)
or soybean-oil ink*1 Recycled paper components, including tree-free paper and paper made with pulp from forest-thinning operations*2 Excluding colored tree-free papers and specialized papers *3 Not applicable to gold, silver, and pearl ink

In-house Green Purchasing Standards and Level of Fulfillment
Product

Purchasing Standard

OA paper
Copy machines/printers

Recycled component to exceed 70%, whiteness not to exceed 80%
Configured to automatically revert to low-power mode or off mode when not used for a
specific period of time
Configured to automatically revert to low-power mode or off mode when not used for a
specific period of time, and to maintain low energy consumption when in low-power mode
100% recycled paper, whiteness below 80%
Products endorsed with environmentally-friendly qualifications such as the Eco Mark or
Green Mark, and products listed in the eco-friendly product catalogues of manufacturers

PCs
Toilet paper
Stationery/office goods

80

TOPPAN CSR REPORT 2007

Performance
Fiscal 2004 Fiscal 2005 Fiscal 2006
98.9%
98.5%

99.7%
93.7%

99.7%
96.4%

100.0%

100.0%

100.0%

100.0%
94.6%

100.0%
96.8%

99.9%
95.8%

Organizational Structure■Toppan Group Environmental Meeting
Toyo Ink Mfg. Co., Ltd.
Tosho Printing Co., Ltd.
Tokyo Shoseki Printing Co., Ltd.
Toppan Forms Co., Ltd.
TMP Co., Ltd.
Toppan Label Co., Ltd.
Toppan Logistics Co., Ltd.
Tamapoly Co., Ltd.
NEC Toppan Circuit Solutions, Inc.
Toppan Printing Co., Ltd.
10 companies in total■Toppan Group Eco-products Meeting
Toyo Ink Mfg. Co., Ltd.
Tosho Printing Co., Ltd.
Tokyo Shoseki Printing Co., Ltd.
Toppan Forms Co., Ltd.
Toppan Cosmo, Inc.
Toppan Label Co., Ltd.
TMP Co., Ltd.

Total Media Development Institute Co., Ltd.
Toppan Logistics Co., Ltd.
Toppan Multisoft Ltd.
Tamapoly Co., Ltd.
froebel-kan co., ltd.
Toppan Printing Co., Ltd.
13 companies in total■List of Environmentally-friendly Products
Business
FieldsSecurities
and Cards

Toppan’s Environmentallyfriendly Products
Ecothrough card
Paper IC Card
Bulky Waste Processing Sticker
Recycleco Gift Card
Card for ETC
Rewritable Paper
Toppan Green Paper 100
Eco Pack (life-size POP display)
Paper Desk Calendar
Ecology Calendar
Eco POP

Commercial
Printing

Bottled Pouch
Thin-Wall Bottle
Plastic Container Made from
Recycled Materials
Ecogloss (environmentallyfriendly gloss finishing)
Recording Media Packaging

Packaging

NeovertEcotainer
TL-PAK
EP-PAK (EP-GL)
EP-PAK (Al)Stand-up Laminated Tube
Recyclen Cap
AP Cartons
Micro-Flute
TP-Tray

Suitability for disposal
Use of recycled materials
Resource-saving (reduced
use of materials)
Use of recycled materials
Suitability for disposal
Long product life
Use of recycled materials
Resource-saving (reduced
use of materials)
Use of recycled materials
Use of recycled materials
Use of recycled materials,
suitability for disposal,energy saving
Suitability for disposal
Resource-saving
Reusability
Suitability for disposal
Resource-saving
Resource-saving
Use of safe materials
Use of recycled materials
Easy separation and easy
disassembly
Suitability for disposal
Suitability for disposal
Resource-saving, use ofsafe materials
Resource-saving
Suitability for disposal
Resource-saving (reduced
use of materials)
Resource-saving (reduced
use of materials)
Resource-saving (reduced
use of materials)
Use of recycled materials
Resource-saving (reduced
use of exhaustible materials),use of recycled materials
Resource-saving (reduced
use of exhaustible materials)
Easy separation anddisassembly
Use of recycled materials
Resource-saving (reduced
use of exhaustible resources)
Resource-saving (reduced
use of exhaustible resources)
Resource-saving (reduced
energy usage in logistics)
Resource-saving (reduced
energy usage in logistics)
Resource-saving (reduced
use of materials)
Easy separation anddisassembly
Resource-saving (reduced
use of energy in logistics)
Resource-saving (reduced
use of energy in logistics)
Recyclability

Toppan’s Environmentallyfriendly Products
Corrugated Absorber
AD-CaseCartocanPaper Cup Made from Recycled
Paper
Cup made from Tree-Free
paper
Biodegradable Package
Cylindrical Paper Cartridges
Coated Barrier Film
GL-C Bottle
GX film
Jar Plus
Tray AllGL Film Lined Paper Cup
Double-Wall Barrier Cup
Oil-Proof Paper
Functional Coated Paper
In-Mold Barrier Cup
Tamper Evident Recyclen Cap
Easy peel-off thermo-cap for
PET bottles
Ecoband
Water-based Cold Seal

Packaging

Biodegradable Plant Pot
Barrier Cup (NSP Process)
Plastic Clip
Notchless Easy-cut Container(AL type)
Recycled PET Clear Case
ALUGLAS
Stripping and heat-sensitive
label for glass bottles
Food container made fromheat-resistant paper
Paper carton with temper
evident closure
One-piece occlusion-preventive
plug for TL-PAKs
Sealed paper tray
Flexible packaging materialusing paper
Clear UV-Blocking Film
Injection molded articles ofbiomass-plastics
EL-CaseLarge octagonal container forbusiness use
Oil-proof paper for fluorine-free
cardboard
Paper cup made from pulp fromforest-thinningGL-compliant back sheet forsolar cells
Paper composite container
Pouch-type fragrance container
Resource-saving Cartocan(rectangular type)Environmental Points
Recyclability
Resource-saving (reduced
use of materials)
Recyclability
Use of recycled materials
Resource-saving (use of
byproducts)
Biodegradability
Resource-saving (reduced
use of energy in logistics)
Suitability for disposal
Resource-saving
Resource-saving
Resource-saving
Easy separation anddisassembly
Resource-saving
Resource-saving
Use of safe materials
Recyclability
Resource-saving
Easy separation anddisassembly
Easy separation anddisassembly
Resource-saving
Reduced release of chemical
substances
Biodegradability
Resource-saving
Recyclability
Resource-saving (reduced energy
expended in manufacturing)
Recyclability
Suitability for disposal
Easy separation anddisassembly
Resource-saving
Resource-saving
Resource-saving
Resource-saving
Resource-saving
Suitability for disposal
Resource-saving
Easy separation anddisassembly
Easy separation anddisassembly, recyclability
Use of safe materials

Environmental Data

TT Paper Can

Business
FieldsEnvironmental Report

Cerap
Eco Pack StandEco Pack Multipanel
Eco Floor Sticker
Eco Pack End Panel
Eco Pack Stand, Round-type
EPOP
Recycled vegetable-Oil Ink
Publications Polyurethane Reactive Hot-Melt
Printing
Non-Vinyl Chloride Lenticular Lens
Low-halogen Printed-wiring
Electronics board
Lenticular Screen
Optronics
Anti-reflection film
GL FamilyStanding pouch for refill

Environmental Points

Resource-saving
Suitability for disposal, longproduct life
Resource-saving, recyclability
Resource-saving, recyclability
Resource-saving, recyclability

TOPPAN CSR REPORT 200781

Environmental Report■ISO 14001 Certification

Environmental Data

(49 systems, 63 operational sites
as of April 1, 2007)

Division/Operational Site
Shiga Plants (Electronics Division/Semiconductor
Solutions Division/Optronics Division)
Electronics Division (Kumamoto Plant)
Toppan Cosmo, Inc. (Kashiwa Plant/Satte Plant,
Toppan Decor Products Inc.)
Electronics Division (Niigata Plant) and NEC
Toppan Circuit Solutions, Inc. (Niigata Plant)
Sakado Site
Securities Printing Division (Ranzan Plant)
Packaging Division (Akihabara Office/Ebie Office)*
Itabashi Site (including Toppan Seihon Co., Ltd.)
Fukusaki Site (including Wakayama Plant, Toppan
Plastic Co., Ltd.)
Toppan Graphic Co., Ltd.
Takino Plants (Commercial Printing Division/
Securities Printing Division/Packaging Division)
Gunma Site (including Tatebayashi Plant)
Asaka Plants (Information & Publications
Division/Securities Printing Division/Semiconductor
Solutions Division)
Toppan Electronics Fuji Co., Ltd.
West Chugoku & Shikoku Subdivision (Hiroshima
Office/Kannabe Toppan Co., Ltd.)
Kansai Area (Kansai Commercial Printing
Subdivision/East Chugoku & Shikoku
Subdivision/Kansai Securities Printing Subdivision)*
Tohoku Division
Technical Research InstituteHokkaido Division (Sapporo Plant/Chitose Plant)
Electronics Division (Mie Plant I)
Optronics Division (Satte Plant)
Toppan Plastic Co., Ltd. (Koshigaya Plant/
Kawaguchi Plant/Sagamihara Plant)
Toppan Packaging Service Co., Ltd. (Ranzan Plant)
Packaging Division (Sagamihara Plant)

JQA

Registration
Date
Jul. 1998

JQA
JQA

Nov. 1998
Mar. 2000

JQA

Apr. 2000

JQA
JQA
JQA
JQA
JQA

Oct. 2000
Nov. 2000
Mar. 2001
Feb. 2002
Jul. 2002

JQA
JQA

Aug. 2002
Oct. 2002

JQA
JQA

Jul. 2003
Dec. 2003

Registrar

Overseas Subsidiary

Registrar

Siam Toppan Packaging Co., Ltd.
Toppan Printing Co., (H.K.) Ltd.
Toppan Printing Co. (America), Inc.
Toppan Chunghwa Electronics Co., Ltd.
Toppan Printing Co., (Shenzhen) Ltd.
Toppan CFI (Taiwan) Co., Ltd.
P. T. Toppan Printing Indonesia
Toppan Printing Co., (Shanghai) Ltd.
Toppan SMIC Electronics (Shanghai) Co., Ltd.

MASCI
DNV
DNV
SGS
SSCC
SGS
LRQA
CEC
BSI

Registration
Date
Apr. 2002
May 2002
Dec. 2002
Oct. 2003
Dec. 2003
Nov. 2004
Nov. 2004
Feb. 2006
Feb. 2007■Major Environment-related Laws Involving the Printing Industry
in Japan
Basic Stance and Rules
The Basic Environment Law
Law for Promotion of Nature Restoration
The Basic Law for Establishing the Recycling-oriented Society

JQA
JQA

Jun. 2004
Oct. 2004

JQA

Nov. 2004

JQA
JQA
JSA
JQA
JQA
QMI

Mar. 2005
May 2005
Jun. 2005
Jan. 2006
Mar. 2006
Dec. 2006

JQA
QMI

Feb. 2007
Mar. 2007*“Ebie Site” consists of the Ebie Office, the Kansai Commercial Printing
Subdivision, and the Kansai Securities Printing Subdivision.
Note: The Information and Communication Division was formed through a mergerof the Securities Printing Division and the Commercial Printing Division on
April 1, 2007.

Legislation to Implement a Basic Law on Energy Policy
Law Concerning Increasing the Desire for Environmental Conservation andPromoting Environmental Education
Law Concerning the Promotion of Environmentally Conscious Activities ofSpecified Businesses through the Promotion of the Provision ofEnvironmental Information
Eco-protection Field
Air Pollution Control Law
Water Pollution Control Law
Sewerage Law
Septic Tank Law
Law Concerning Special Measures for Conservation of the Environment of
the Seto Inland Sea
Soil Contamination Countermeasures Law
Offensive Odor Control Law
Noise Regulation Law
Vibration Regulation Law
Industrial Water Law
Law Concerning the Rational Use of Energy

Group Company/Operational Site
NEC Toppan Circuit Solutions, Inc. (Toyama Plant)
Total Media Development Institute Co., Ltd.
(Entire company)
Toppan Forms Co., Ltd. (Hino Plant)
Toppan Label Co., Ltd. (Fukushima Plant)
Toppan Logistics Co., Ltd. (Nishigaoka Site,
including the Kawaguchi transport department)
Toppan Prosprint Co., Ltd. (Mito Plant)
Toppan Forms Co., Ltd. (Fussa Plant)
Toppan Forms Co., Ltd. (R&D Center)
Toppan Containers Co., Ltd. (Saitama Plant/
Miyagi Plant/Sano Plant)
Toppan Forms Tokai Co., Ltd. (Nagoya Plant)
Toppan Forms Kansai Co., Ltd. (Osaka Plant)
Toppan Forms Nishinihon Co., Ltd. (Kyushu Plant)
Toppan Prosprint Co., Ltd. (Koto Production
Center)Toppan Forms Kansai Co., Ltd. (Settsu Plant)
Toppan Forms Co., Ltd. (Kawamoto Plant)
Toppan Forms Kansai Co., Ltd. (Kobe Plant)

Registration
Registrar
Date
Jan. 1997
JQA
Mar. 2001
JSA
JQA
JQA
JQA

Jun. 2001
Nov. 2001
Oct. 2002

JSA
JQA
JQA
JQA

Jan. 2004
Feb. 2004
Mar. 2004
Apr. 2004

JQA
JQA
JQA
JQA

Aug. 2004
Dec. 2004
Jan. 2005
Mar. 2005

JQA
JQA
JQA

Mar. 2006
Aug. 2006
Sep. 2006

Law Concerning the Promotion of the Development and Introduction of
Alternate Energy
Law Concerning the Promotion of the Use of New Energy
Waste Disposal and Public Cleaning Law
Law for the Control of Export, Import, and Others of Specified Hazardous
Wastes and Other Wastes
Construction Materials Recycling Act
Law Concerning Special Measures against PCB waste
Law Concerning the Recovery and Destruction of Fluorocarbons(Fluorocarbons Recovery and Destruction Law)
Law Concerning Reporting, etc. of Releases to the Environment of SpecificChemicals and Promoting Improvements in their Management
Law Concerning Special Measures against Dioxins
Law Concerning Special Measures for Total Emission Reduction of Nitrogen
Oxides from Automobiles in Specified Areas
Law Concerning the Protection of the Ozone Layer through the Control ofSpecified Substances and Other Measures
Law Concerning the Promotion of Measures to Cope with Global Warming
Factory Location Law
Landscape Law
City Planning Law
Urban Green Law
Law Concerning the Improvement of Pollution Prevention Systems in
Specific Factories
Eco-creativity Field
Law Concerning the Promotion of Procurement of Eco-friendly Goods andServices by the State and Other Entities
Law for the Promotion of Effective Utilization of Recyclable Resources
Law for the Promotion of Sorted Collection and Recycling of Containers
and Packaging
Law for the Conservation of Endangered Species of Wild Fauna and Flora82

TOPPAN CSR REPORT 2007

Energy Type Ratio and Consumption

LPG 0.9%

Diesel oil and gasoline
0.0%

Kerosene 1.5%
A fuel oil 1.6%

Purchased
electricity
73.2%

City gas
22.8%■Fiscal 2006 Results of Toppan’s Environmental Education
Training or Education

Contents

New employee training

General environmental education (introductory level)414

New manager training

General environmental education (intermediate level)235

e-learning*

Environmental issues involving corporations andToppan Group activities

Toppan Business School■Energy Used by Type for Fiscal 2006
(in terms of caloric value)

Introduction to ISO 14001

Optional training

Challenge School

(GWh)
1,500
1,326

2003

2004

2005

2006
(Fiscal year)■City Gas Consumption(1,000 Nm3)
100,000
85,26788,33390,41478,77560,000

Four courses related to the environment

16Internal environmental auditor training program

158

1

Securities Printing Division(Asaka Securities Printing Plant)

2

Securities Printing Division (Ranzan Plant)3Electronics Division (Kumamoto Plant)

4

NEC Toppan Circuit Solutions, Inc.
(Toyama Plant)

5
6
7
8

2003

2004

2005

2006
(Fiscal year)

13,275
11,334
9,968

10,000
8,000

7,469

6,000
4,000
2,000

2003

2004

2005

Total Waste
Total Waste
Generation (tons) Recycling (tons)
4,657.7

Recycling
Rate (%)

4,647.5

99.78%

877.1

877.1

100.00%12,877.1

12,750.5

99.02%

3,838.1

3,826.6

99.70%

Optronics Division (Satte Plant)

1,650.6

1,628.4

98.66%

Optronics Division (Shiga Plant)

558.7

558.7

100.00%Information & Publications Division (Itabashi Site)

17,426.2

17,352.9

99.58%

Information & Publications Division (Asaka Site)

11,987.9

11,987.5

100.00%9

Sakado Site

27,331.1

27,331.1

100.00%Toppan Graphic Co., Ltd. (Kawaguchi Site)

46,860.1

46,860.1

100.00%11

Toppan Graphic Co., Ltd. (Oji Site)

3,468.6

3,468.6

100.00%12

Toppan Seihon Co., Ltd.

30,528.6

30,493.3

99.88%

13

Packaging Division (Sagamihara Plant)

22,200.3

22,114.8

99.61%

14

Toppan Containers Co., Ltd. (Saitama Plant)

9,202.8

9,094.6

98.82%

15

Toppan Containers Co., Ltd. (Sano Plant)

4,008.9

3,949.3

98.51%

16

Toppan Containers Co., Ltd. (Kumagaya Site)

288.2

287.5

99.76%

17

Toppan Plastic Co., Ltd. (Sagamihara Plant)

58.4

58.4

100.00%18

Toppan Packaging Service Co., Ltd.
(Ranzan Plant)

532.9

524.1

98.35%

19

Toppan Decor Products Inc. (Kashiwa Plant)

3,620.0

3,601.4

99.49%

20

Toppan Decor Products Inc. (Satte Plant)

4,571.5

4,571.5

100.00%21

Packaging Division (Itami Plant)

9,611.2

9,481.3

98.65%

22

Toppan Harima Products Co., Ltd.

266.4

266.4

100.00%23

Commercial Printing Division(Kansai Commercial Printing Subdivision Plant[Takino Site])

12,427.7

12,420.6

99.94%

24

Packaging Division (Takino Packaging Plant)

3,447.5

3,424.7

99.34%

25

Securities Printing Division(Takino Securities Printing Plant)

1,402.3

1,397.3

99.64%

26

Chubu Division (Nagoya Plant)

4,119.5

4,068.4

98.76%

27

Mikkabi Toppan Printing Co., Ltd.

2,834.7

2,813.9

99.27%

28

Nishinihon Division(Fukuoka Plant Manufacturing Department 2)

5,949.8

5,870.8

98.67%

29

Toppan Saga Yoki Co., Ltd.

249.9

249.0

99.64%

30

Kumamoto Toppan Co., Ltd.

4,580.5

4,574.3

99.86%

31

Tohoku Division (Sendai Plant)

3,995.3

3,921.1

98.14%

32

Hokkaido Division (Sapporo Plant)

2,693.2

2,691.2

99.93%

Environmental Data

12,000(Certified December 2006)10■Kerosene Consumption

034

Promotion of Waste Reduction and Recycling

20,000(kL)
14,000Seminar to enhance the skills of ISO 14001 internal
auditors

Environmental Report

40,000010Operational Site

500

80,0007

Discovery of energy-saving projects (pneumatic systems)■Zero-emission Sites

1,182

1,000

0

33

Introduction to LCA*Toppan reviewed and reorganized its terminal PC networks for business operations mainly in the sales andplanning departments in fiscal 2006. To avoid system complexity and confusion, the Company decided not to
conduct e-learning training in fiscal 2006.

■Electricity Consumption

1,134

0
(Sum total: 20,123)42

Introduction to environment-related laws

Internal environmental
auditor training

1,091

Number of Trainees

2006(Fiscal year)

Notes: The calorific value associated with electricity
consumption is calculated uniformly as
0.00983 GJ/kWh.
Excludes figures for overseas subsidiaries andcertain independent subsidiaries.

TOPPAN CSR REPORT 200783

Environmental Report

Environmental Data

Preventing Pollution/Management and Reduction of Chemical Substances■Fiscal 2006 Toppan PRTR Survey and Results
PRTR No.

(Unit: kg/year)

Releases

Chemical1. Atmosphere

2. WaterTransfer as
Waste

3. Soil

16

2-amino ethanol

0

0

0

0

39

24

Linear alkylbenzenesulfonate and chlorides

0

0

0

0

13,14940

Ethyl benzene

11,296

11,296

0

0

1,696

45

Ethylene glycol monomethyl ether

482

482

0

0

1,248

46

Ethylene diamine

0

0

0

0

962

63

Xylene14,72014,720

0

0

2,726

64

Silver and water-soluble compounds

0

0

0

0

0

68

Chrome and trivalent chromium compounds

20

0

20

0

11,48569

Hexavalent chromium

0

0

0

0

1,167

108

Inorganic cyanogens compounds

0

0

0

0

180

132

1,1-dichloro-1-fluoroethane (HCFC-141b)

3,842

3,842

0

0

515

172

N,N-dimethylformamide

0

0

0

0

1,158

179

Dioxins(28 mg-TEQ)(28 mg-TEQ)

00(190 mg-TEQ)

207

Water-soluble copper compounds

571

0

571

0

120,150218

1,3,5-tris (2,3-epoxy propyl)-1,3,5-triazine-2,4,6(1H,3H,5H)-trione

0

0

0

0

0

224

1,3,5-tri-methyl benzene

227

Toluene

231
232
254
304

4,075

4,075

0

0

6,445

635,793635,79300504,561

Nickel

0

0

0

0

0

Nickel compounds

44

0

44

0

212,324

Hydroquinone

0

0

0

0

1,378

Boron and its compounds

37

0

37

0

3

309

Poly (oxyethylene) nonylphenyl ether

542

542

0

0

2,115

310

Formaldehyde

107

107

0

0

13

311

Manganese and its compounds

128

0

128

0

11,174

671,659

670,858801

0892,489

Total

Notes: Period covered: April 1, 2006–March 31, 2007
Substances designated: The 24 substances shown above
Operational sites covered: Sites that handle more than 1.0 ton of Class I designated chemical substances over the year. (Or specified Class I designated chemical
substances in excess of 0.5 tons per year.)Excludes figures for overseas subsidiaries and certain independent subsidiaries.
Materials transported out from operational sites are listed under “Transfer as Waste” even if they are sold as resources.

Atmospheric Emissions

Waste Disposal and Recycling by Type

■Ratio of Greenhouse Gas Emissions by Type(in tons of CO2 equivalent)(Unit: ratio: % total: t-CO2)

Disposal(tons)
243,723

73.7%

Ratio

Recycling Rate Primary Reusage

Fiscal Year

CO2

CH4

N2O

Total

Waste paper

99.7%

Recycled paper

2003

99.91

—

0.09

675,533

Waste plastic

25,318

7.7%

96.7%

2004

99.91

—

0.09

687,427

RPF, plastic
materials

Waste acid

18,695

5.6%

92.7%

Neutralizer

2005

99.92

—

0.08

710,446

Waste oil

10,723

3.2%

90.1%

Recycled oil, fuel

2006

99.93

—

0.07

768,430

Waste alkali

10,600

3.2%

92.3%

Neutralizer

Sludge

9,792

3.0%

92.7%

Roadbedmaterials

Metal chips

5,537

1.7%

99.6%

Metal materials

2,176

0.7%

99.6%

Chips, papermaterials

1,900

0.6%

74.6%

Roadbedmaterials■Ratio of Greenhouse Gas Emissions by Source(in tons of CO2 equivalent)(Unit: ratio: % total: t-CO2)
Fuel Use

Waste
Incineration

Total

Wooden
chips

61

34

5

675,533

Cinders

62

33

4

687,427

2005

63

33

4

710,446

2006

65

31

4

768,430

Fiscal Year

Electricity
Use

2003
2004

Notes: Calculated by referring to the Ministry of the Environment’s Guidelines for
Calculating Greenhouse Gas Emissions from Businesses (2003).
Excludes figures for overseas subsidiaries and certain independent
subsidiaries.

84

Type of Waste

TOPPAN CSR REPORT 2007

Glass chips

763

0.2%

92.9%

Glass materials

Others

1,692

0.5%

81.5%

—

Total

330,918

100%

98.0%

—

Note: Excludes figures for overseas subsidiaries and certain independent
subsidiaries.

Conduct Guidelines and Information Management Policy
Conduct Guidelines
Chapter 1: Basic Principles
1. Respecting basic human rights
We will act in a way that our individual talents and abilities can bedemonstrated to their maximum potential based on the concept ofrespect for people. We will respect basic human rights and in every
regard work to ensure the dignity of individuals.
2. Maintaining public order and standards of decency
We will always be aware of our involvement with society, act withgood sense, and never act in a way that disturbs public order or that
defies common sense. We will sufficiently consider the effects of ouroperations on society and not act in a way that goes against publicorder and standards of decency.
3. Complying with laws and ethics
We will conduct ourselves in a way that complies with the laws andethics in society. We will comply with overseas and domestic laws,
regulations, commercial practices, government notifications, andoperational and industrial standards applicable to our corporate
endeavors. Compliance with these laws and regulations forms theminimum standard of society’s rules and we will uphold them without fail. In addition, we will act with a high sense of ethical andmoral awareness in carrying out our operations. Even in situations
when legal issues do not arise, we still cannot allow humanitarian,moral, or ethical problems to develop.
4. Conducting fair business operations
We will conduct all foreign and domestic operations in a fair manner. As an upstanding corporate citizen, we will be aware of oursocial responsibilities and carry out sound operations that will notdamage our reputation in society.
5. Striving to improve quality
With regards to the “dedicated products” that we provide to customers, we will strive to improve quality based on the concept of“Total Quality Assurance,” not just in the direct manufacturing andquality management sections but throughout the entire Company,
including sections related to sales, research, and administration.
6. Appropriate management and disclosure of information
Fully recognizing the importance of information, all employees
will undertake its appropriate management. Even if it affects us
adversely, we will not conceal information but actively undertake its
appropriate disclosure and increase the transparency of our operations.
7. Environmental and safety considerations
We will carry out operations in harmony with the global environment. We will protect the precious environment bequeathed to us
by nature and perform corporate operations that strive for reduced
use of limited resources and facilitate recycling. Furthermore, we willconduct safe production activities, ensure product safety, and aim
to facilitate a healthy and secure society to live in.

Section 2: Reforming operations
1. Complying with international rules and respecting the culture
and commercial practices of overseas countries
2. Striving to improve knowledge, skills, and technology
3. Fulfillment of work responsibilities
4. Securing and utilizing intellectual property
5. Respecting the rights and interests of others
6. Striving to improve the current situation and targeting new
possibilities
Section 3: Fulfilling corporate responsibilities
1. Compliance with antitrust laws
2. Prohibition of unlawful practices in dealings with support
companies
3. Prohibition of unlawful acts against corporate competitors
4. Prohibition of receipt or provision for personal gain or rebate
5. Prohibition of bribery
6. Prohibition of inappropriate entertainment practices
7. Prohibition of illegal political contributions and donations
8. Prohibition of providing unjust benefits
9. Prohibition of support for antisocial activities
10. Prohibition of insider trading
11. Prohibition of unlawful import and export transactions
12. Prohibition of child labor and forced labor
13. Curtailment and reduction of environmental impact
14. Promotion of environmentally friendly activities
Section 4: Creating a positive work environment
1. Striving for a lively and vibrant workplace
2. Striving for a safe and clean workplace
3. Following Company rules
4. Protecting corporate property
5. Avoiding conflicts of corporate interests
6. Prevention of discriminatory practices
7. Prevention of sexual harassment and power harassment
8. Prohibition of private activities
9. Appropriate use of the Internet
10. Appropriate management of information and records
11. Prevention of tacit approval, false reporting, and concealmentof illegal conduct
12. Prevention of retaliation against a person who reports misconduct
Section 5: Developing the Toppan Group
1. Taking pride in the Toppan brand
2. Developing the Toppan brand
3. Strengthening cooperation between Group companies
4. Appropriate disclosure of information
5. Promoting communication with shareholders and investors
Established June 2000
Revised April 2006

Chapter 2: Specific Conduct Guidelines
Section 1: Building customer trust
1. Doing our best for the customer
2. Maintaining customer trust
3. Appropriate management of customer property
4. Protecting information about customers
5. Appropriate handling of personal information
6. Protecting confidential corporate information

Information Management Policy
1. Employees shall comply with all internal rules on information management and manage information appropriately in full observance of thelaw and social order.
2. Employees shall collect information for appropriate purposes using
appropriate methods.
3. Employees shall recognize the value of information as an asset and use
information safely and efficiently for the stated purpose of use.
4. Employees shall safely manage information handled on behalf ofcustomers to secure customer trust.
5. To ensure the appropriate management of information at all times, theCompany and its employees shall improve its information management
system based on periodic reviews of social circumstances, technology
trends, and the latest revisions in information systems.
Established April 1, 2001

TOPPAN CSR REPORT 200785

Independent Review and Third-party Opinion

Independent Review and Third-party Opinion

Independent Review
The conclusion of our independent review is presented in
the Independent Review Report. The following summarizes
the improvements from the previous year and opportunities
for further improvement identified in the course of ourreview.
Toppan set new environmental targets this year for
reduced consumption of chemical substances designatedunder the PRTR law and reduced waste generation per unitof production value. We laud Toppan for pursuing its
cleaner production targets by placing an emphasis on
reduced generation of pollutants and wastes as opposedto the end-of-pipe treatment of pollutants and wastes generated.
The policies and procedures for specifying emission
sources and selecting applicable formulas and emission
factors are sometimes unclear, especially those for the emissions of atmospheric pollutants. We also found inconsistencies in interpretation among operational sites. We expect
Toppan to formulate clearer policies and communicate
them to every operational site.
Responding to the recently published third edition of the
Sustainability Reporting Guidelines (G3 Guidelines) from the
Global Reporting Initiative (GRI) and the newest edition of
the Environmental Reporting Guidelines from Japan’s
Ministry of the Environment, the definitions of the performance indicators and calculation methods will converge
among all companies. Based on these guidelines, Toppan
should conduct an overall review of its calculation methods
and definitions of the indicators, especially the environmental performance indicators.
In the social field, Toppan established a set of CSR
Procurement Guidelines in May 2007 to deploy CSR in the
supply chain. The results of the application of these guidelines should appear in the next CSR report.

Kazuhiko Saito
Manager, KPMG AZSA
Sustainability Co., Ltd.
(KPMG AZSA & Co. group)

Independent Review Process
Planning

IDiscussion and planning

Hearing to review improvements from the previous year; examination of methods andscope of aggregation; determination of the schedule and the sites to be reviewed

Implementation

IInterview with responsible
personnel

Interview with those responsible for CSR activities; confirmation of Toppan’s basic thinking
on corporate social responsibility (CSR) and reporting policies in relation to the CSR Report
2007

IHead office review of Toppan
Printing Co., Ltd. (parent)
and Group companies in andoutside Japan

Hearing on data-collection procedures, including internal controls; implementation ofanalytical procedures and questioning and vouching procedures; examination of thecalculation accuracy and propriety of procedures; examination of consistency among data(including descriptions)

IOn-site review

Itabashi Plant, Manufacturing Subdivision, Information & Publications Division, Toppan
Printing Co., Ltd.

Final review of the script

IReview at the head office

Confirmation of data on the entire Group and final confirmation of the CSR report content

Internal review at
KPMG AZSA Sustainability
Co., Ltd.

IInternal review meetings

The internal review of the procedure and results by an internal independent reviewer andthe drafting of the conclusions on the CSR Report 2007 prior to the submission of the
Independent Review Report

ISubmission of theSubmission of the
Independent Review Report
Independent Review Report

Reporting

86

TOPPAN CSR REPORT 2007

IBriefing on the findings ofthe independent review

Submission of the Independent Review Report to Toppan
Reports on the findings of the review to Toppan

Third-party Opinion
Corporate malfeasance and accidents
with products have been frequent inmany industries in recent years. New systems must be created to cope withmounting issues in all areas, from corporate governance to employment andlabor, procurement, and information
management. The fundamental principleof CSR is to avoid creating social problems, while solving social challenges
proactively. How does Toppan involve
itself in social issues?
To serve its social mission as a mainstay
of information and culture, Toppan
includes in its CSR report an article on
the Stakeholder Dialogue and “Special
Reports” on information security andUniversal Design, areas closely related
to the Company’s core business. These
articles give me an understanding ofToppan’s basic stance towards CSR.
Toppan received many specific proposals
and suggestions during the Stakeholder
Dialogue. I expect Toppan to use theresults of the dialogue as a guideline forformulating and publicizing new policies
and strategies as foundations for the promotion of stakeholder engagement.
In combination with the aforesaid, a
Company-wide structure to promote CSR
activities will be a key for further progresson the CSR front. The Compliance Department made valiant efforts to promote
activities by undertaking administrative
operation in coordination with the relevant divisions of the head office. Compliance, however, comprises only one
part of a company’s social responsibility
to observe laws, regulations, and corporate ethics. One way to heighten the levelof CSR activities at Toppan would be to
set up a division to promote CSR with
controlling functions, in order to reinforce the Group-wide foundations of CSR

management. Such a structure would
allow Toppan to pursue continuous
improvement by establishing Key Performance Indicators (KPIs). The Company
would evaluate itself based on stakeholder dialogue and the results of surveys
to assess the satisfaction level among all
stakeholders.
Social Report
The Social Report this year is more clearlystructured than last year’s, and exhaustively organized by stakeholder type.
Information disclosure of activities andperformance for each stakeholder type isconsiderably thorough, with detailed andspecific efforts covered. I was impressedby the activities for reinforcing Total
Quality Assurance reported in the section“For Customers,” and by the investigationof compliance with the CSR Procurement
Standards reported in the section “WithBusiness Partners.” The descriptions on
the various difficult issues involving
employment and labor in this year’s
report increased the length of the section
entitled “With Employees” to eight pages.
Toppan’s motivated stance toward information disclosure in these areas is laudable. The report mentions the Company’s
eagerness to shorten working hours andclearly states that Toppan has confirmed
no unlawful contracts to date. Futurereports should go into greater detail on
the actual working hours of employees,
the mental health of employees, and themeasures to address the issues of regularand non-regular employees. With thesefeatures, the CSR report from Toppan will
be an excellent “labor CSR report”
unmatched by any other CSR report yet
produced in Japan. I also expect theCompany to realize the “decent work”
proposed by the International Labour

Organization (ILO) under a clearly planned
and long-running strategy.
Environmental Report
Performance has improved considerably
and an abundance of detailed information is presented, particularly with respect
to environmental management. Whatremains to be seen are ever more detailed
self-evaluation criteria in the PDCA review
table summarizing Toppan’s targets andresults. The information on the volume of
total material input, a value expected tobe approximated by the volume of total
waste generation, is not presented quantitatively. In areas where quantitative disclosure is appropriate, the report shouldpresent the quantitative information withan explanation on how the values are
estimated.

Yoshiki Midorikawa
Director, Green Consumer Research Group
Co-chair, The Valdez Society

Discussion on the details of CSR Report 2007
(April 2007)

ProfileMr. Midorikawa worked for many years in the
Kanagawa prefectural government, mainly inlabor and consumer administration. After retiringfrom the prefectural service, he served as Executive Officer of the Kanagawa Prefecture Small andMedium Business Management Association. Mr.
Midorikawa’s NGO/NPO achievements include thefounding of the Green Consumer Research Groupin 1991 and participation in The Valdez Society,a body that researches and proposes concepts
and solutions related to corporate environmental
responsibilities through collaboration between
citizens and companies (Mr. Midorikawa joined in1991). He has authored several books, including
CSR Practice Methods with Visible Effects (coauthored) and CSR Management (co-authored).

TOPPAN CSR REPORT 200787

Independent Review and Third-party Opinion

Company Reaction to the Independent Review and Third-party Opinion

Company Reaction to the Independent Review andThird-party Opinion
KPMG AZSA Sustainability Co., Ltd.
has independently reviewed Toppan’s
Environmental Reports published from2001 onward, including the CSR Report
2007 this year. Mr. Yoshiki Midorikawa,director of the Green Consumer ResearchGroup and co-chair of The Valdez
Society, has provided a third-party opinion for the 2005, 2006, and 2007
reports. Toppan would like to thank
KPMG AZSA and Mr. Midorikawa for
their concrete and stimulating opinions.
Over the four years since it began
working with CSR specifically, Toppan
has found that there is growing expectation and demand from society for companies not only to comply with laws,
regulations, and ethics, but also to solve
social issues through business operations.
This year’s CSR report features “Special
Reports” on information security andUniversal Design (UD), two areas closely
related to Toppan’s operations in theinformation communication industry. In
the section on Stakeholder Dialogue, thereport explores how Toppan is to workwith UD in the future.
Mr. Midorikawa suggested that Toppan

develop the stakeholder dialogues as afoundation for stakeholder engagement
by formulating and publicizing policies
and strategies based on the results ofthese dialogues. Toppan will again disclose its efforts and achievements in UD
in the CSR report for the next year. Mr.
Midorikawa also suggested that Toppan
introduce a comprehensive structure topromote CSR on a Group-wide basis.
Toppan will be holding repeated discussions, the first of which will focus on themost effective and efficient structures forthe promotion of CSR.
The Social Report this year discloses
information by stakeholder type. The sections on labor (employees) are more
extensive and informative, and a section
on CSR procurement activities is added.
KPMG AZSA pointed out the need, in
future reports, to disclose informationon actual conditions once the CSR
Procurement Guidelines are fully implemented. Mr. Midorikawa added that
Toppan can elevate its information disclosure by describing the working hours,
the mental health of employees, andToppan’s efforts to address the issues ofregular and non-regular employees.
Toppan will consider the informationneeds of its stakeholders as it studies
these points and suggestions.
In its review of the Environmental
Report, KPMG AZSA pointed out theneed to strengthen the managerial function of collecting and aggregating data,
especially data on the emissions ofatmospheric pollutants. Toppan will
improve the reliability of its data by constantly reviewing its aggregation system.
Mr. Midorikawa lauded Toppan forsome of its improvements in environmental performance and the abundance ofthe environmental management data
used. For further improvement, he suggested that Toppan provide further detailregarding the self-evaluation criteria in
the table summarizing the targets andresults and disclose quantitative information on the total material input.
Toppan welcomes the proposals andopinions made on its behalf. The Company will broaden information disclosure
and improve its future CSR activities on
an ongoing basis.

Editor’s Postscript
This report is the fourth CSR report produced. Mr. Yoshiki Midorikawa provided
a third-party opinion, and he and otherexternal experts offered editorial guidance
to help Toppan make the report easy-toread and easy-to-understand for its valued
readers.
The content of the earlier Social Reports
was arranged by the six Toppan priority
themes in CSR. This year’s report isarranged by stakeholder type, in keepingwith Toppan’s renewed focus on stakeholders and its own responsibilities tothem. In the future we will be reviewing

88

TOPPAN CSR REPORT 2007

the six priority themes in CSR with external
stakeholders through the discussions of the“materiality” required by the G3 Guidelines
from the GRI.
From the viewpoint of Universal Design(UD), the use of colors, font sizes, and othergraphical features of the report werereviewed to improve readability. We discovered many things during our meetings withthe members of the Color Universal Design
Organization. We realized that CSR is the
product of collaboration with stakeholders.
During the Stakeholder Dialogue, we
received views and opinions on Toppan’s

efforts for UD from external experts. This
report features the “Special Report” and anarticle on those UD efforts.
It would be impossible for Toppan togive a full account of its activities in the limited space provided here. Even so, we hopethat this report will help you understandour CSR activities. We look forward tohearing your opinions and comments.

Global Reporting Initiative (GRI) Content Index
Vision and Strategy
1.1
1.2
ProfileOrganizational Profile
2.1
2.2
2.3
2.4
2.5
2.6
2.7
2.8
2.9
Report Scope
2.10
2.11
2.12
2.13
2.14
2.15
2.16
Report Profile
2.17
2.18
2.19
2.20
2.21
2.22

P.24–27
P.2–3

P.1
P.4
P.4–5
P.5
P.4–5
P.4–5
P.4–5, 24–27
P.4–7
P.26
P.1
P.1, 5—
P.1, 5
P.5
P.5
P.69
Used as reference
P.65
P.76
P.1
P.1
P.7, 41, 45, 71

Governance Structure and Management Systems
Structure and Administration
3.1
P.30–31
3.2
P.30
3.3
P.30
3.4
P.30–31
3.5
P.31
3.6
P.27, 30, 67
3.7
P.24, 60
3.8
P.30
Stakeholder Engagement
3.9
P.26
3.10
P.14–19, 26, 30, 38, 44–45, 48–49, 54, 58, 71
3.11
P.14–19, 38, 71
3.12
P.14–19, 38, 71
Overarching Policies and Management
Systems
3.13
3.14
3.15
3.16
3.17
3.18
3.19
3.20

P.32–37, 45, 68–69
P.27
P.47
P.30–31, 44–45, 75–77, 79
P.77
P.1, 5
P.27–29, 31–32, 35–37, 62–64, 66
P.37, 40–41, 66, 82

Economic Performance Indicators
Customers
EC1
EC2
Suppliers
EC3
EC11
EC4
Employees
EC5
Providers of Capital
EC6
EC7
Public Sector
EC8
EC12
EC9
EC10
Indirect Economic Impact
EC13

P.6–7
P.6
—
—
—
—
P.7, 58
P.7, 58—————

Environmental Performance Indicators
Materials
EN1—
EN2
P.45, 78, 80
EnergyEN3
P.61, 72, 80, 83
EN17
—
EN18
—
EN4
—
EN19
—
Water
EN5
P.61, 80
EN20
—
EN21
P.61, 80
EN22
P.80
Biodiversity
EN6
—
EN23
—
EN7
—
EN24
—
EN25
—
EN26
—
EN27
—
EN28
—
EN29
—
Emissions, Effluents and Waste
EN8
P.72, 75, 80, 84
EN30
—
EN9
P.74, 80
EN10P.61, 74, 80
EN11
P.61, 73, 80
EN31
—
EN12
P.61, 80
EN32
—
EN13
P.22, 68–69, 74
Suppliers
EN33—
Products and Services
EN14
P.76–78, 81
EN15
P.20, 79
Compliance
EN16
P.22, 68–69
Transport
EN34
P.75
Overall
EN35
P.65

Notes: This table displays the pages on which the corresponding content for the required GRI Guidelines can befound. It does not necessarily certify that the guidelines are being met.
Idenotes optional items.

Social Performance Indicators
Employment
LA1
P.50
LA2
P.50, 53
LA12
P.56–57
Labor/Management Relations
LA3
—
LA4
P.57
LA13
—
Health and Safety
LA5P.32, 56
LA14—
LA6P.51, 56–57
LA15
P.51, 56–57
LA7
P.56
LA8
—
Training and Education
LA9
P.52–53, 83
LA16
P.50–57
LA17
P.50–55
Diversity and Opportunity
LA10
P.32, 35, 50, 52–54
LA11
P.50, 54
Human Rights: Strategy and Management
HR1
P.25, 32, 35, 54, 56, 85
HR8
P.34–35, 56
HR2
P.44–45
HR3
P.44–45
Non-Discrimination
HR4
P.25, 32, 35, 54, 56, 85
Freedom of Association and Collective Bargaining
HR5
P.3, 56–57
Child Labor
HR6
P.3, 25, 32, 35, 54, 56, 85
Forced and Compulsory Labor
HR7
P.3, 25, 32, 35, 54, 56, 85
Disciplinary Practices
HR9
P.35
HR10
P.35
Security Practices
HR11—
Indigenous Rights
HR12
—
HR13
N/A
HR14
—
Community
SO1
P.22, 46–49, 68–69, 71
SO4
P.3
Bribery and Corruption
SO2
P.25, 31–32, 35, 85
Political Contributions
SO3
P.25, 31–32, 35, 85
SO5P.25, 31–32, 35, 85Competition and Pricing
SO6P.25, 31–32, 35, 85
SO7P.25, 31–32, 35, 85
Customer Health and Safety
P.R1
P.31, 36–37, 40–41
P.R4
P.40–41
P.R5—
P.R6
P.41, 45, 78–79
Products and Services
P.R2
—
P.R7
—
P.R8
—
Advertising
P.R9
—
P.R10
N/A
Respect for Privacy
P.R3
P.37
P.R11
P.37

TOPPAN CSR REPORT 200789

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