CSR REPORT 2011
Report on Corporate Social
Responsibility Activities

IEditorial Policy
Toppan is disclosing information in the hopes of encouraging dialogues on socialand environmental activities with more people, especially people who have aninterest or stake in Toppan’s corporate social responsibility (CSR) activities. From
this year, the Company has begun to edit the CSR report in line with the sevencore subjects set under ISO 26000, a guidance standard on social responsibility. Detailed information such as environmental data is posted on the Toppan
website.
IPeriod Covered
This report mainly covers activities in fiscal 2010 (from April 2010 to March 2011),
though information on prior and later years is also included in parts.
IScope and Boundary of this Report
In principle, this report covers the social and environmental activities of Toppan
Printing Co., Ltd. (“the Company”) and Group entities consolidated for accounting
purposes. Most of the information on personnel applies to personnel within Toppan
Printing Co., Ltd., the parent company. The scope of the environmental performance data is presented on P. 32.
ISelecting the Information for this Report
In choosing the information to present in this CSR report, Toppan assessed the“materiality” of the information for society and the Company itself.
To assess whether information can be considered material for society, Toppan
holds in-house discussions on the following points: comments from an independent assurance provider and third-party opinions, questionnaire responses to CSR
reports from inside and outside the Company, other opinions gleaned from dialogues inside and outside the Company, the content of various guidelines (suchas the Environmental Reporting Guidelines [fiscal year 2007 version] from the
Ministry of the Environment of Japan and the Sustainability Reporting Guidelines
2006 from the Global Reporting Initiative [GRI]), questionnaire items from thirdparty organizations, and CSR-related information from media and news agencies.
IGuidelines Observed
This report has been prepared in accordance with the Sustainability Reporting
Guidelines 2006 at an application level B+ as defined by the GRI.
IReliability
KPMG AZSA Sustainability Co., Ltd. provides independent assurance for thisreport. As a testament to the reliability of the sustainability information presented
in the report, Toppan is authorized to attach the following mark. Any report bearing this mark meets the standards for sustainability report assurance and registration established by The Japanese Association of Assurance Organizations for
Sustainability Information (http://www.j-sus.org/).

IEye-friendliness and Readability
This report considers eye-friendliness and readability in accordance with Toppan’s
in-house guidelines. It also incorporates universal-design displays for as manydifferent types of people as possible, regardless of individual differences in color
perception. The universal design in this report has been reviewed and certified by
the Color Universal Design Organization (CUDO), a nonprofit organization, on
entrustment by Toppan.
IURLs for Relevant Information• CSR information: http://www.toppan.co.jp/english/csr/
This site posts details on CSR activities (CSR Report 2011: Detailed Data), thelatest information on ISO 14001 certification, the GRI content index, the CSR
Procurement Guidelines, and other forms of CSR information. If erroneous entries
or misprints are found after CSR reports are issued, the related information will
be shown here.
• IR information: http://www.toppan.co.jp/english/ir/
Details on corporate governance can be found at the following URLs.
Corporate governance reports: http://www.tse.or.jp/listing/corpgov/ (in Japanese)
Financial statements: http://info.edinet-fsa.go.jp/ (in Japanese)
IPublication Dates
Previous report: October 2010
Current report: December 2011
Next report: October 2012 (planned)
IContact Information
CSR Promotion Department, Legal Affairs Division, Toppan Printing Co., Ltd.
(Tokyo, Japan)
Email: csr@toppan.co.jp

The United Nations Global Compact sets forth 10 principles in the four areas of human rights, labour, environment, and anti-corruption.
Toppan supports and implements the 10 principles as a socially responsible corporation.
Human Rights
Principle 1: Businesses should support and respect the protection of internationally proclaimed human rights; andPrinciple 2: make sure that they are not complicit in human rights abuses.
LabourPrinciple 3: Businesses should uphold the freedom of association and the effective recognition of
the right to collective bargaining;
Principle 4: the elimination of all forms of forced and compulsory labour;
Principle 5: the effective abolition of child labour; andPrinciple 6: the elimination of discrimination in respect of employment and occupation.
Environment
Principle 7: Businesses should support a precautionary approach to environmental challenges;
Principle 8: undertake initiatives to promote greater environmental responsibility; andPrinciple 9: encourage the development and diffusion of environmentally friendly technologies.
Anti-Corruption
Principle 10: Businesses should work against corruption in all its forms, including extortion and bribery.

Contents

Executive Message

2

Group Business Outline

4

Special Report:
Community Involvement and Cooperation

6

Results for Fiscal 2010 and Future Measures

8

Toppan’s CSR Activities

10

Initiatives at Toppan andSeven Core Subjects under ISO 26000

12Organizational Governance13

Human Rights

16

Labor Practices

18

Fair Operating Practices

22

Consumer Issues

26

Community Involvement and Development

30

Environment
Toppan’s Environmental Activities

32

Environmental Targets and Results(for the Medium-and-long-term and Fiscal 2010)33

New Medium-and-long-term Environmental
Targets and Environmental Targets for Fiscal 201135

Toppan’s Environmental Burden

36

Environmental Management Activities

38

Eco-protection Activities(Mitigating global warming, building a recyclingoriented society, preventing pollution, controllingchemical substances, conserving biodiversity)

40

Eco-creativity Activities

45

Environmental Communication Activities

46

Independent Assurance

47

Independent Assurance Report

48

Group Business Structure

49

TOPPAN CSR REPORT 20111

Executive Message

Contributing to Fulfilling Lifestyles

To begin, allow me to offer my deepest condolences to thefamilies and friends of those who perished in the Great East
Japan Earthquake of March 2011. I also would like toextend my sympathies to all people affected by the ­disaster,and to express my strong hopes for restoration without
delay.
The buildings and facilities of the Toppan Group were damaged at three plants: one in Sendai, Miyagi Prefecture, one
in Ishinomaki, Miyagi Prefecture, and one in Mito, Ibaraki
Prefecture. Production had to be suspended at theseplants for safety verification and restoration. While normal
operations are currently restored at almost all buildings andfacilities, our business results have been considerably
affected. Reduced shipments from disaster-affected raw
material suppliers in the printing industry forced us to cut
production, and restraint in sales promotion activities
resulted in declines in orders received.
We are building a more robust supply system by restructuring our business continuity plans (BCPs) into more
­effective ones based on lessons learned from this earthquake disaster. The severe economic environment is likely
to persist for some time to come in Japan. All employeesof the Toppan Group will work together to surmount thedifficulties.

To Be a Robust Group of Companies
Trusted and Respected by Society
TOPPAN VISION 21 is positioned as the foundation for allof our corporate activities. This vision consists of a Corporate Structure (the Corporate Philosophy, the Corporate
Creed, and a set of Conduct Guidelines defining the values
and standards we should respect) and five Business Fields
based on the Corporate Structure.
I will be taking three measures to make TOPPAN VISION
21 a reality. The first measure is to advance our Group-wide
structural reform by reorganizing our manufacturing andplanning departments in pursuit of enhanced productivity
and reduced costs and by promoting business operations
that respond to customer needs more promptly and accurately. The second is to create new businesses and newmarkets by intensively devoting managerial resources togrowth fields expected to become important sources of

2

TOPPAN CSR REPORT 2011

profit in the future. The third is to accelerate global businessexpansion with an eye to alliances and M&As with goodstanding companies in the growing markets of emerging
countries mainly in Asia.
In creating new businesses and markets, we will focus
on solar cell back sheets, lithium-ion battery-related components, and other clean energy systems by applying thetechnologies we have acquired in the printing business.
This will lead to the implementation of CSR activities in our
primary lines of business.
To enhance compliance with laws and regulations, we
reviewed and extensively revised the Conduct Guidelines,
an integral part of our Corporate Structure, in November
2010. Toppan has implemented the revised Conduct
Guidelines into all Group companies in and outside Japanto further improve compliance across the Group.
Through these efforts, we are able to develop sociallyand environmentally balanced corporate activities in parallel with operations in pursuit of economic profits. We would
like to press ahead as a robust group of companies that istrusted and respected broadly by society.

Towards a Sustainable Society
Fiscal 2010 was the final year for the completion of theMedium- and Long-term Environmental Targets we set in
fiscal 2001. For the mitigation of global warming, we targeted a reduction of CO2 emissions per unit of sales by
10% by fiscal 2010, compared to the fiscal 2000 level,
and undertook wide-ranging energy-saving measures. As
it turned out, CO2 emissions per unit of sales in fiscal 2010
actually increased by 10.6% compared with fiscal 2000.
Changing economic conditions and business expansion
during the decade caused us to miss this target by asignificant margin. Last fiscal year we formulated new
medium-and-long-term targets to be pursued from fiscal
2011 to 2020. The calculation basis for the target on CO 2
emissions has been shifted from emissions per unit ofsales to total emissions. The target set for fiscal 2020 is
a total reduction of CO2 emissions by 11% compared withfiscal 2008. We at the Toppan Group will work together
with positive intent to strengthen our efforts to attainthis target.
The Printing Museum, Tokyo and Toppan Hall, facilities

established in 2000 as projects to mark Toppan’s 100th
anniversary, celebrated their 10th anniversary in 2010. Overtheir first decade, these facilities have welcomed about
730,000 visitors on a cumulative basis. The Printing
Museum received a Printing Culture Promotion Award in
the Mécénat Grand Prize category at the Japan MécénatAwards 2010 in recognition of the social significance of its
activities to popularize printing culture and to collect andconserve precious print-related technologies and materials
that have been vanishing in today’s rapidly changing printing world. In addition to researching and disseminating
information on printing culture, the museum organizes
activities placing importance on communication with neighboring communities. Since opening in 2000, it has supported a number of programs for extracurricular study, work
experience education, and integrated learning by elementary and junior high school students in Bunkyo Ward, Tokyo.
Besides these projects at schools, the museum holds
courses as part of a lifelong learning program for community members hosted by Bunkyo Ward. It will continue
these collaborative activities in educational fields for thecommunity in the years to come.

the social responsibilities we should fulfill. As a first step inthis direction, we have closely aligned this CSR report, avaluable social communication tool, with the seven core
subjects addressed in ISO 26000. I am eager to hear yourcandid opinions about this report.
We will keep up our work to create fulfilling lifestyles ina sustainable world. We rely on your ongoing support andguidance.
September 2011

To a New Stage of CSR Management
Toppan has been participating in the United Nations Global
Compact and supporting the 10 principles of the Global
Compact on human rights, labour, environment, and anticorruption since September 2006.
For the fulfillment of our social responsibility, I will continue to espouse the United Nations Global Compact as
an invaluable guideline for shaping our CSR activities.
In November 2010, ISO 26000 was issued as an international standard on social responsibility for organizations.
Many developing countries took part in the formulation of
ISO 26000 from the early stages, along with multiple stakeholders such as consumers, governments, industries, labor
unions, NGOs, and experts. The standard condenses
various social issues to be solved. From my perspective,
it can also serve as an instrument for implementing theUnited Nations Global Compact. We will incorporate ISO
26000 in our CSR management, reconsider our CSR initiatives, and push forward with activities after ascertaining
a clearer picture of the social issues we should solve andShingo Kaneko
President &Representative Director
Toppan Printing Co., Ltd.

TOPPAN CSR REPORT 20113

Group Business Outline

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 & Representative
Director
Shingo Kaneko

Group Profile
Number of employees(nonconsolidated)
8,633 (as of the end of March 2011)
Number of employees(consolidated)
48,197 (as of the end of March 2011)
Capital (nonconsolidated)
104.9 billion yen

The Toppan Group comprises Toppan Printing Co., Ltd. and 191 relatedcompanies (163 subsidiaries and 28 affiliates) engaged in manifold businesses in three main fields: Information & Networks, Living Environment, andElectronics.
The positioning of Toppan and related companies in these fields is outlined on P. 49.

Business Fields
Information & Networks
Providing solutions to increase thevalue of information and effectively
deliver information for customers who
require smooth communication

Securities and Cards

Commercial Printing

Publications Printing

Living Environment
Providing customers around the world
with products and services optimal for
creating fulfilling lifestyles in fields suchas medicine, food, and housing

Packaging

Functional Product and Energy Related Industrial Materials

Electronics

Display Related

Semiconductor Related

Working with leading-edge technologies to provide electronic components
with strong potential to be adopted as de facto standards

4

TOPPAN CSR REPORT 2011

Personal Service

Next-generation Products

Shufoo!—an online mall for
digital flyers (in Japanese)

Hydrogen sensor

Providing consumers with Toppan’s original brand of innovative information services anddevices to enrich the links between people and goods

Providing high-performance in­dustrial materials with links to
the next generation by developing
fields of business with growthpotential

QConsolidated Q Nonconsolidated(Billion yen)
2,000(Billion yen)

QConsolidated Q Nonconsolidated

69.3

1,670.3 1,617.3

1,506.7 1,556.4

1,022.9 967.6

948.7

885.9

895.5

500

30

60
40

45.0

38.2
30.3

2008

2009

2010
(Fiscal year)

Number of Employees(Employees)

36,757

2007

25.2

20.2
11.7 12.4 12.1

2008

6.6
2009

5.8
0.5

–10
2006

2010
(Fiscal year)–7.7
2007 2008

2009

2010
(Fiscal year)

Number of Employees by Business Field (Consolidated)

Q Consolidated Q Nonconsolidated(Employees)

47,522 47,650 48,197

Electronics
6,958

50,00040,000

2006

26.0

0

15.3

0
2007

20
10

31.6 29.1

7.8
2006

38.5

72.1

20

0

QConsolidated Q Nonconsolidated(Billion yen)
40

80

1,557.8
1,500
1,000

Net Income or Loss

Operating Income

Net Sales

Company-wide
positions
868

38,57038570

30,00020,00010,00010,899 11,181 11,548

8,769

8,633

2009

2010
(Fiscal year)

0
2006

2007

2008

Living Environment
11,693

Information & Networks
28,678Net Sales by Business Field

Capital Expenditure

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

Electronics
286.3 (18%)

150

2,000

3.0

133.7
120

72.9

1,681.7 1,665.6 1,694.3
2.0

1.5

92.0
68.0

60

65.0

1,000

0.7

0.7

0

–0.4

0
2006

2007

2008

2009

2010
(Fiscal year)

1.0
0

500

30
Information & Networks
894.7 (58%)

2.1

1,500

90

Living Environment
375.3 (24%)

1,837.7 1,787.4

2006

2007

2008

2009

–1.0
2010
(Fiscal year)

Net Sales by Region

R&D Expenses

Net Assets & Return on Equity (ROE)(Billion yen)(Billion yen)(Billion yen)Asia, excludingJapan
167.0 (11%)

Other regions
48.5 (3%)

35
28

1,000
29.1

29.7

28.7

800
24.4

21

23.4

14

600

940.3
9,403

8.0
867.7

2007

2008

2009

2010
(Fiscal year)

1.6
−1.0

2006

6.0
4.0

2007

2008

1.6

2.0
0

0
2006

864.0

3.2

200

0

874.0

4.8

400

7

Japan 1,340.8 (86%)

918.0

(%)

2009

–2.0
2010
(Fiscal year)

Notes:
1. Net sales do not include consumption taxes.
2. The number of employees is the number of employees working at the Group. The number of non-regular employees for fiscal 2010 stood at 9,215 on a consolidated basis (the average number of employees throughout the fiscal year, including part-time workers but excluding temporary staff).

TOPPAN CSR REPORT 20115

School play every other year!!

Swimming class is really good fun at
Kanatomi Elementary School!

Picture postcards created by
fifth graders in a special classcalled “Let’s present first graders with picture postcards
showing good and fun things
about our school” (see theopposite page).

Special Report

Community Involvement
and Cooperation
Collaborative Activities in Educational Fields
Toppan, a company running dozens of operational sites across Japan,
wishes to fulfill its responsibility as a member of the community where each
operational site operates, through devoted involvement and cooperation withthe community. This special report describes how Toppan contributes to
educational programs for today’s children, a generation that soon will besustaining and enriching local industries and communities.

You can pal up with the kids
in different grades!

6

TOPPAN CSR REPORT 2011

We’re pumped up for an athletic meet!

You can make a lot of friends!!

Collaborative Learning Project with
Kanatomi Elementary School
Bunkyo Ward’s Kanatomi Elementary School is located inTokyo near the Toppan Koishikawa Building, the building towhich the Printing Museum and Toppan Hall, a symphonicconcert hall, are annexed.
A good many publishing- and printing-related companies
based in Bunkyo Ward give the neighborhoods a tone of
their own. Toppan has been supporting learning programs
at Kanatomi Elementary School since 2001, the year following the completion of the Toppan Koishikawa Building.
Students gain a deeper understanding of local industries
by attending classes organized by the museum curators attheir schools and by taking part in tours and printing workshops held at the Printing Museum. Toppan also encourages
students to learn printing-related knowledge and technologies for the creation of various communication tools.
One of Toppan’s chief goals in designing these programs
is to spark the interest of children in local industries suchas publishing and printing. When these children grow, theirinterest may attract them to the very same industries as
valuable human resources.

show new students various fun things about the school. Thisputs the newcomers at ease on their first day, a time ofmingled hopes and concerns.

Exploiting the Features of the Printing
Industry for Communities
Toppan has been hosting this project for a decade now. The
young children who took part in the first year are alreadyabout to join the working world. Some of the graduates still
greet the museum curators with hellos around town.
Toppan organizes sundry programs apart from thisproject. The Company holds a printing workshop for neighborhood children and the general public during summer
vacation; supports regional studies by college students; andgives volunteer sightseeing guides registered in Bunkyo
Ward opportunities to learn about the mechanisms of printing and the role of printing as a local industry.
Toppan’s operational sites will contribute to the development of the communities, making best use of the featuresof the printing industry.

Grade-appropriate Classes
Printing House, a printing
workshop in the Printing
Museum, organizes tours
and hands-on programsfor general visitors, alongwith the printing classes
for students.

I For second graders: Adventure of discovery: let’s
explore town (one-hour program)Staying at school, the students learn about the Printing
Museum in detail and gain hands-on experience in the fundamentals of printing by making mini-calendars with stamps.
I For fourth graders: Let’s print together with friends(two-hour program).
Touring the museum, the students study printing history, theroles of printing, and techniques such as letterpress printing
with type. After the tour, they set their own names in type
and print them on postcards.
I For fifth graders: Let’s present first graders with picture postcards showing good and fun things about our
school (ten-hour program)
The fifth graders study ideas and methods for communication via printing from various printed materials such asmagazines, books, leaflets, and posters. By reviewing actual
works in print, they examine the most effective ways tovisually deliver messages and information. Which is more
appropriate, pictures or letters? What colors attract the mostattention? What words or phrases will people keep close to
their hearts? (And so on.).
In the next stage they gather as a group to discuss themessages and pictures for their own postcards and workout the layouts and designs. Finally, they set their messages
in type and print them with a letterpress printing press.
The picture postcards the fifth graders prepare in thisclass are presented to new first graders at an entrance ceremony and posted on a bulletin board at school. The cards

Offering a Valuable Experience for
Elementary School Students
Printing Class at Kanatomi Elementary School
I teach a printing class at Kanatomi Elementary School. When I
ask the fifth graders, “Is there a printing company in your neighborhood?” they cheerfully wave their hands in the affirmative. Printing has a well-established presence as a local industry in Tokyo.
Publishers, printers, and printing agencies are clustered together
in many neighborhoods of Bunkyo Ward, where the Toppan
Koishikawa Building is located. I tell the fifth graders that Kanatomi
Elementary School and the Printing Museum are both in an areastrongly related to publishing and printing.
During the class I explain that the task of printing is to give out
information. Then I have the students discuss what techniques
they can apply to accomplish this task. A PC or printer will neverconvey the experience of actually picking up pieces of type, setting them, and printing manually, page by page, with a letterpress
printing press.
The Printing Museum will continue to contribute to the com­munity through educational programs designed to convey the roleand fun of printing.

Shotaro Kawai
CuratorPrinting Museum

See “Community Involvement andDevelopment” on page 30 for details
about other activities for communities.
TOPPAN CSR REPORT 20117

Results for Fiscal 2010 and Future Measures
Stakeholders

All stakeholders

Customers

TopicsAction Points

Targets

Complying with laws, regulations, andcorporate ethics

Heightening awareness of laws, regulations,and the Conduct Guidelines throughcompliance promotion activities—

Reinforcing information risk
management

Establishing an information security
management structure towards thecomplete elimination of information-related
accidents—

Formulating business continuity plans(BCPs) and facilitating business
continuity management (BCM)

Formulating effective, optimal BCPs acrossthe Group to enhance corporate value• Selecting model businesses for BCPs and formulating BCPs individuallyConserving the global environment(See PP. 33–35 for the results ofenvironmental activities and future measures)—

Ensuring product safety• Preventing accidents relevant to the Product Liability Act and the revised
Consumer Product Safety Act of Japan

Securing quality assurance andenhancement• Enhancing customer satisfaction (analyzing the degree of customer
satisfaction under the ISO 9001 QMSs and applying the results tobusiness operations)• Preventing serious quality-related accidents concerning the performanceand functions of products

Assuring product safety and quality;
providing products and services tohelp solve social issues• Embarking on energy-related businesses• Expanding businesses in the life sciences
Providing products and services to help
solve social issues• Helping to realize a society where a diversity of people can enjoy fulfilling
lifestyles (spreading universal designs)• Passing down cultural assets as virtual reality (VR) reproductions

Business partners

Communities

Shareholders andinvestors

Establishing a trusted supply chain

Promoting CSR procurement centeredaround communication with suppliers• Facilitating closer communication with business partners

Enhancing chemical substance management
through strengthened cooperation with
suppliers• Informing business partners of the Standards for the ChemicalComponents of Raw Materials (Ver. 2.0) designated by Toppan

Social contributions• Continually arranging social contribution programs to help solve social
issuesCommunity contributions• Expanding opportunities to communicate with communities and making
contributions responsive to community needs

Cultural contributions• Contributing to society through the provision of high-quality informationand elevating the roles of printing and related industries• Strengthening cooperation with communities and cultural facilities acrossthe world• Contributing to communities and supporting educational institutions

IR activities• Enhancing IR activities

Merit-based personnel policies• Operating personnel treatment systems properly

Contributing to society, community,and culture

Disclosing information in a fair andopen manner and improving
transparency• Respecting basic human rights• Ensuring occupational safety and health• Reinforcing countermeasures against fires and disasters• Promoting healthcare and health enhancement
Realizing a safe and secure working
environment

Employees• Supporting work-life balance by 1) shortening total working hours• Supporting work-life balance by 2) creating a working environment
where employees can strike a balance between working and raisingchildrenRespecting and leveraging humanassets• Creating a better working environment through partnerships between
labor and management• Proactively appointing female employees to higher positions• Supporting second careers for retired employees

Leveraging diverse human assets• Promoting employment of persons with disabilities• Providing an open environment and information for recruitment• Supporting individual career development
Developing and fostering human assets

8

TOPPAN CSR REPORT 2011

• Fostering self-reliant employees based on “conduct of high value,” a key
concept in human asset development

Main Activities and Achievements in Fiscal 2010
• Extensively revised the Conduct Guidelines on November 1• Held 26 briefing sessions on compliance with the Subcontract Law of Japan for
employees in the planning and ordering departments (1,135 trainees)• Arranged an e-learning-based educational program on compliance with the
Subcontract Law of Japan for employees in the sales departments (2,950 trainees)• Reinforced management at manufacturing departments to eliminate vulnerabilities• Carried out audits on the handling of personal information and system asset audits
from a quality control viewpoint• Conducted a questionnaire survey on the actual conditions of information handling(about 20,000 respondents) and face-to-face group training (283 sessions acrossJapan)

Self Evaluation

Main Measures in Fiscal 2011A

• Redesign tools to promote the Conduct Guidelines; implement the Conduct
Guidelines in overseas Group subsidiaries• Ensure proper subcontract transactions; build proper relationships with partnercompaniesA• Strengthen quality control for information security in operations entrusted to Toppan• Establish rules on dealing with new media such as social media and smartphones• Accelerate PDCA management with a focus on priority measures at Group
companies• Organized BCP-related education and an earthquake disaster drill (in February)A• Reconstruct the BCPs and facilitate BCM at key divisions, etc.

• Revised the rules on product safety and informed all divisions of the revisions• Organized education on product safety at five regional divisions in JapanB• Continue certification screenings of partner companies in the food container andfilling/packing businesses by operational sites, and also perform regular audits• Strictly manage chemical substances in products• Made ranking evaluations of operational sites through QMS internal audits andprovided feedback via audit reports• Proposed improvements using a corrective action check sheet in QMS internal
auditsA• Carry out follow-up audits to prevent any recurrence of serious quality-related
accidents that occurred in fiscal 2010

B

• Continue to prototype a practical-sized CCM and evaluate its performanceA• Conduct experimental studies at medical institutes and companies around the world
and consider developing overseas businessesA• Incorporate color universal design into Toppan’s annual and CSR reports

A• Develop next-generation flagship VR content independently• Create VR content jointly with the Tokyo National MuseumA• Continue monitoring compliance in procurement operations at Toppan• Verify and reassess improvements at business partners who have received lower
ratings in the questionnaire survey on the current status of their CSR activitiesA• Hold briefings for business partners in the Information & Networks field to fully informthem of the details of chemical substance management in productsB• Carry out medium-and-long-term recovery assistance measures for the areas
stricken by the Great East Japan EarthquakeA• Maintain various contributions responsive to community needs at operational sites
across JapanA<Printing Museum, Tokyo>• Create original content and broadly disseminate information• Reinforce educational and promotional activities and press ahead with culturalalliances

B<Toppan Hall>• Continue to sponsor more special performances for the discovery and fosterage oftalented young musicians• Allow elementary schools in Tokyo’s Bunkyo and Chiyoda Wards to use the hallA

• Facilitate communication with capital markets by announcing medium-and-longterm management strategies• Prototyped a practical-sized electrolyte membrane with a catalytic layer for fuel cells
and evaluated its performance• Proved the diagnosability of somatic cell mutagenesis and the parsability of prostatecancer through a collaborative study with medical institutes run by universities andother entities around the world• Supported an international conference held by the International Association for
Universal Design (IAUD) from October 31 to November 3 and helped to put universal
design into widespread use• Created and screened Todaiji-temple—The world of the Great Buddha and Kumamotojo:
Unraveling the mystery of the invincible castle, two new virtual reality (VR) productions• Presented Toppan VR productions to 1.64 million viewers (a cumulative total of 7.11
million viewers since fiscal 2000)• Monitored compliance in procurement operations at Toppan by having 19 major
business partners complete a questionnaire; issued instructions for improvements
to Company procurement departments that received lower survey ratings• Expanded the boundaries of CSR procurement initiatives (to cover 192 business
partners involved in the provision of equipment for the Group)• Organized training on CSR procurement for about 340 business partners at seven
operational sites in the Living Environment field and gave briefings on the need to
manage chemical substances in products• Held the Toppan Charity Concerts, shortening the original two-day program to one
day because of the Great East Japan Earthquake• Extended community contributions at operational sites through environmental
beautification activities, blood donation drives, plant tours, hands-on training
sessions, disaster- and crime-prevention activities, etc.
<Printing Museum, Tokyo>• Received a Printing Culture Promotion Award in the Mécénat Grand Prize category
at the Japan Mécénat Awards 2010
• Welcomed the 300,000th visitor to set foot in the Printing Museum over the decadesince the museum was opened (cumulative total)<Toppan Hall>• Sponsored or co-sponsored 31 concerts and held six special performances todiscover and foster talented young musicians; welcomed the 410,000th audience
member to visit Toppan Hall over the decade since the hall was opened (cumulative
total)• Redesigned Toppan Story, a shareholder newsletter, to enrich both the quality andquantity of its content• Held more than 200 individual consultations with institutional investors and analysts• Considered comprehensive personnel policies covering every stage of employment
from hiring to retiringA• Launched labor management training for managerial staff (325 participants)A• Formulated the Company-wide Basic Policy on Safety and Health; issued thedeclaration on safety by the President & Representative Director at the businesscouncil• Opened Anzen Dojo, a safety training facility, at the Kawaguchi Training Center inAugust; held 122 safety training sessions by the end of March 2011 (2,830
participants)• Effectively used emergency stockpiles (water and food) after the Great East Japan
Earthquake struck• Increased the rate of employees examined in the regular health checkups to 100%
• Duplicated last year’s progress in decreasing the number of employees working longhours through various initiatives such as strict working-hour control by managerial
staff, the operation of various working systems, and measures determined bylabor-management committees at divisions to shorten working hours• Reviewed and extended the childcare-leave systems to enable employees to use
the systems longer. With the extension, the revised systems remain in effect until an
employee’s child finishes the third year of elementary school, regardless of theemployee’s gender (for more flexible working styles during the period of childrearing)• Held the Parent-child Art Workshop in Summer Vacation at an in-house facility toenhance family communication for employees and their families• Reached a labor-management agreement on the promotion of Company-widesafety and health activities to eliminate occupational accidents, at labormanagement committees for the creation of a working environment amenable toenhanced job satisfaction• Held a recreational sports event for employees and their families jointly arranged bylabor and management on September 5 (4,400 participants)• Attained a 4.4% ratio of females among managerial and supervisory staff (as of April
1, 2011)A

B
A• Promote measures to attain strict safety concerning equipment operation; expand
Anzen Dojo at the Kawaguchi Training Center; enrich safety-related education
content• Run Anzen Dojo at operational sites across Japan; continue to hold safety andhealth meetings• Take countermeasures against large-scale disasters across the Group as initial BCP
actions• Offer systematic healthcare guidance for employees in need of lifestyle improvements(actions to preempt lifestyle-related health problems, etc.)

A• Impose managerial working-hour controls to limit overtime work to 60 hours a month• Consider structuring a new working management system to realize more appropriate
control of working hours

A• Keep every employee informed of childcare-leave-related systems• Continue to hold the Parent-child Art Workshop

A• Continue to hold routine business councils and convene labor-management
committees for the creation of a working environment amenable to enhanced job
satisfaction• Ginger up recreational events jointly held by labor and management

A• Reemployed 66 retired employees as senior workers or part-timersA• Facilitated information sharing with local public job-placement offices in Japan todiligently hire persons with disabilities; attained a 1.97% ratio of employees withdisabilities in the total workforce (as of June 1, 2011)A• Welcomed about 2,700 students on a cumulative basis to internship programs withworkshops, practical training sessions, and online training coursesA• Expanded report items in the Challenging Job System (for self-determination on the
career path)• Rolled out various measures further across the Group and strove to improve thequality of Group-wide human assets• Continue to examine the Company’s comprehensive personnel policies• Consider personnel treatment systems with an eye to leveraging the abilities andskills of human assets throughout the Group• Organize education on the concept of respect for people in rank-based training,
Company-wide basic education, and so on

AA• Leverage female talent through positive action• Maintain the Senior Reemployment System as a tool for leveraging the experienceand specialized knowledge of veteran employees• Diligently facilitate the hiring of persons with disabilities in cooperation with local
public job-placement offices in Japan• Maintain a 1.8% ratio of employees with disabilities in the total workforce, as
designated by the applicable law in Japan• Participate in joint company orientation sessions and seminars in universities andcolleges; increase opportunities to meet students via OB and OG recruiters• Strengthen public relations for global and Group recruiting activities• Maintain the Challenging Job System and leverage it for the appointment of
employees• Establish and upgrade various programs and infrastructures, and deploy themacross the Group

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

TOPPAN CSR REPORT 20119

Toppan’s CSR Activities

Toppan’s Ideal “Corporate Structure”
TOPPAN VISION 21 sets forth the basic concept and directionality for the sustainable development of the Group in harmony with society and the global environment.
The vision consists of a “Corporate Structure” and a set of“Business Fields.” The Corporate Structure specifies ideals
and important values and concepts for the Toppan Group.
The Group believes that endeavors to realize the Corporate
Structure will support the sustainable development of Toppan
and society as a whole.

 orporate Philosophy, Corporate Creed,C
and Conduct Guidelines
The Corporate Structure is made up of three elements:­Toppan’s Corporate Philosophy, the Corporate Creed, and theConduct Guidelines. These elements specify a complete setof values, standards, and guidelines for the operations of the
Toppan Group.
Toppan established the Corporate Philosophy, the top-level
concept underpinning all of Toppan’s corporate activities, topromote Toppan’s continual development as a socially valuable corporation. The Corporate Creed expresses the standards to be kept foremost in mind when performing business
operations. Built on the Corporate Philosophy and Corporate
Creed, the Conduct Guidelines set out the basic concepts andbehavioral norms for Toppan employees both as businesspeople and as members of society.

Toppan’s Ideal “Corporate Structure”
Corporate Philosophy
Each of us shallreciprocate our customers’continued trust,create dedicated products byharnessing our vibrant knowledge
and technology,

Corporate Creed

Conduct Guidelines

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

Chapter 1: Basic Principles
1. Respecting basic human rights
2. Having high ethical standards
and acting as a responsible
member of society
3. Complying with laws andcompany rules and conducting
fair business operations
4. Avoiding all links with antisocialgroups
5. S triving to improve quality andproviding creations that
contribute to customer
satisfaction
6. R ecognizing the importance of
information related to businessand managing it appropriately
7. P roactively undertaking
conservation of the global
environment
8. Embracing change and taking
on new challenges
9. B
 uilding trust from society
through social contribution
activities and appropriate
disclosure of information
10. Bringing together individual
strengths to fully exploit the
integrated strength of the group

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

and contribute to a fulfilling lifestyle asa mainstay of information and culture.

Established in June 2000

To conduct fair and open business
operations while acknowledging oursocial responsibilities and aspiring forharmony with our global environment.
To create a positive working
environment by maximizing ourindividual talents and strengths
as a team.

TOPPAN VISION 21
http://www.toppan.co.jp/english/
corporateinfo/vision/corp_image/rinen.html

To enhance our corporate
standing and promote the continual
development of the Toppan Groupthrough the exploration of new
possibilities.

Established in June 2000; revised in
November 2010
Established in June 2000

10

TOPPAN CSR REPORT 2011

See page 25 for Chapter 2: Specific Conduct
Guidelines.

Dialogue with Stakeholders

Commitment to ISO 26000

Toppan has links with various stakeholders when conducting
its corporate activities. The Company has defined five categories of stakeholders who are either vital for its business operations or potentially impacted by them: customers (clientcompanies, consumers), business partners, communities,
shareholders/investors, and employees.
To realize its ideal “Corporate Structure,” Toppan must continually engage stakeholders in dialogue and reflect their opinions in the shaping of corporate activities satisfactory to all
stakeholders.
Stakeholder dialogues are a very effective way to graspsocial needs. Toppan has promoted and upgraded its CSR
activities by incorporating stakeholder dialogues into the PDCA
cycle. In addition to regular dialogues with the five categories
of stakeholders in the course of daily business, Toppan holds
meetings with representatives from each stakeholder category
and with experts and organizations deeply knowledgeable onsocial issues. These meetings began in fiscal 2004 and havecontinued into fiscal 2010, reaping valuable ideas on ways tofacilitate Toppan’s CSR activities.

ISO 26000 Guidance on Social Responsibility was issued in
November 2010. This standard provides guidance on the principles of social responsibility—what it means and how it applies
to organizations. Any type of organization of any size can use
it. Unlike other standards on quality or environmental management, this standard focuses on stakeholder opinions: no certification is granted by third-party organizations.
ISO 26000 has been formulated through the consensus ofvarious stakeholders. Governments and various types oforganizations and entities from all over the world engage inthe standard-making process. This standard therefore typifies
social demands. As such, ­Toppan believes that sincerely
responding to these demands will be vital for Toppan’s efforts
to realize the Corporate Structure.
As a first step to accommodating ISO 26000, Toppan hasedited this CSR report to summarize CSR activities undertaken
in fiscal 2010 in line with the seven core subjects of social
responsibility defined under the standard. In fiscal 2011,­Toppan will crosscheck with ISO 26000 to identify how the
Company can best upgrade its CSR activities.

Toppan’s Stakeholders

Seven Core Subjects

Customers(client companies, consumers)

Holistic
approachCommunity
involvement andHuman rights
development
Organizational
governance

Shareholders andinvestors

TOPPANBusiness partners

ConsumerissuesORGANIZATION

Fair operating
practices

Labourpractices

The environment

Interdependence
Employees

Communities

Source: Chart from the ISO 26000 English/Japanese bilingual version(Japanese Standards Association), with partial revisions

TOPPAN CSR REPORT 201111

Initiatives at Toppan andSeven Core Subjects under ISO 26000
ISO 26000
Seven Core Subjects

Organizational
governance

12

IssuesOrganizational governance

For Details

Pages

ICorporate Governance
ICSR Initiatives
IRisk Management Structure
IBusiness Continuity Management (BCM)

P. 13−

Human rights

Issue 1: Due diligence
Issue 2: Human rights risk situations
Issue 3: Avoidance of complicity
Issue 4: Resolving grievances
Issue 5: Discrimination and vulnerable groups
Issue 6: Civil and political rights
Issue 7: Economic, social and cultural rights
Issue 8: Fundamental principles and rights at work

IRespecting Basic Human Rights andSetting Up a Reporting System
ICollective Labor Agreement
IWorking for Equal Opportunity andEliminating Discrimination

P. 16−

Labour practices

Issue 1: Employment and employment relationships
Issue 2: Conditions of work and social protection
Issue 3: Social dialogue
Issue 4: Health and safety at work
Issue 5: Human development and training in theworkplace

IBasic Concept of Human Assets
ILabor-Management Partnership
ISupporting Work-Life BalanceIOccupational Safety and Health / Healthcare
and Health Enhancement
IMeasures for Mental Healthcare
IDeveloping and Fostering Human Assets

P. 18−The environment

Issue 1: Prevention of pollution
Issue 2: Sustainable resource use
Issue 3: Climate change mitigation and adaptation
Issue 4: Protection of the environment, biodiversity andrestoration of natural habitats

IToppan’s Environmental Activities
IEnvironmental Targets and Results (for the
Medium-and-long-term and Fiscal 2010)
INew Medium-and-long-term Environmental
Targets and Environmental Targets for Fiscal
2011
IToppan’s Environmental Burden
IEnvironmental Management Activities
IEco-protection Activities
IEco-creativity Activities
IEnvironmental Communication Activities

P. 32−

Fair operating
practices

Issue 1: Anti-corruption
Issue 2: Responsible political involvement
Issue 3: Fair competition
Issue 4: Promoting social responsibility in the value chain
Issue 5: Respect for property rights

IDisseminating the Conduct Guidelines
IToppan Group Helpline
IImplementing the Conduct Guidelines inOverseas Group Companies
ICompliance Education
IEducation on Compliance with the
Subcontract Law of JapanIPromoting CSR Procurement
IConduct Guidelines and Information
Management Policy

P. 22−

Consumer issues

Issue 1: Fair marketing, factual and unbiased informationand fair contractual practices
Issue 2: Protecting consumers’ health and safety
Issue 3: Sustainable consumption
Issue 4: Consumer service, support, and complaint anddispute resolution
Issue 5: Consumer data protection and privacy
Issue 6: Access to essential services
Issue 7: Education and awareness

IAssuring Product Safety and Quality
IChallenges in Universal Design
IProtecting Personal Information
IContributing to Sustainable Consumption

P. 26−

Community
involvement anddevelopment

Issue 1: Community involvement
Issue 2: Education and culture
Issue 3: Employment creation and skills development
Issue 4: Technology development and access
Issue 5: Wealth and income creation
Issue 6: Health
Issue 7: Social investment

IAssistance for the Areas Distressed by theGreat East Japan Earthquake
ICommunity Contribution and Involvement

P. 30−TOPPAN CSR REPORT 2011

Organizational Governance
Points oppan has strengthened the governance structure through the establishment of a Management Audit Office,T
Compliance Department, and Ecology Center under the purview of a Board of Corporate Auditors according
to the Companies Act of Japan.
Toppan develops governance aimed at maximizing the corporate value of the entire Group under the Related
Company Administration Regulations.

Corporate GovernanceCorporate governance provides the foundation for addressing
the seven core subjects.
Toppan has strengthened the governance structure throughthe establishment of a Management Audit Office, ComplianceDepartment, and Ecology Center under the purview of a Boardof Corporate Auditors according to the Companies Act ofJapan. Toppan develops governance aimed at maximizing thecorporate value of the entire Group under the Related Company Administration Regulations prescribed for the advancement of fair management for the Group.

Organizational Governance he Directors, Board of Directors, and Various
T
Meetings
Toppan has 26 directors, including two outside directors, on
its board (as of the end of March 2011). Board meetings areheld monthly and whenever a pressing matter requires action
or deliberation. Especially important management themes aredeliberated beforehand by the Management Committee, abody made up of directors selected by the President & Representative Director. The goal is to lay weight on managerial
efficiency in business decision making.

 orporate Auditors, Board of Corporate Auditors,C
and Audit Firm
As of the end of March 2011, Toppan has four corporate auditors, including two external auditors, of whom one is an independent director. Along with board meetings, the corporate
auditors attend meetings of the Board of Directors and Management Committee and important meetings on the environment. They systematically carry out audits for operational sites
and related companies in close cooperation with the audit firm
and internal audit-related departments in the Company.
Through these tasks, they audit and advise the Company froma preventive perspective to ensure the legality of the operationsof the directors and departments and smooth and appropriate
corporate management in line with company policies andregulations. They also regularly convene a board of corporate
auditors of related companies to improve the effectiveness of
the audits by the corporate auditors across the Group.
Toppan has had KPMG AZSA LLC verify the propriety of theCompany’s accounts through audits to enhance the reliability
and transparency of the Company’s financial information.

Corporate Governance Structure
Meeting of Shareholders
Appointing or dismissing

Appointing or dismissing

Appointing or dismissing

Board of Directors
Auditing

Auditing
Supervising

Crisis Management Committee

Selecting or dismissing

Special Committee (fordefending against takeover bids)

President & Representative Director

Responding toemergencies

Advising andcounselingManagement Committee

Directors in charge
Auditing

Business Divisions

Independently check, evaluate,
and make improvements
under the direction of
departments responsible
for laws and regulations

Management Audit Office

Investigates and audits the legality andappropriateness of operational activities

Auditing

Compliance Department

Promotes, monitors, and verifies strict
observance of business-related laws
and regulations and the establishmentof ethical business practices

Reporting

Ecology Center

Coordinates, supervises, and verifies
Toppan’s environmental activities

Guiding

Instructing
Other organizations for control

Chief information
security manager

Safety and Health Committee

TPM National Conference

National Eco-protection Committee

AssistingNational Conduct Guidelines
Promotion Supervisors

Corporate Auditors Office

Audit firmGroup companies

Observingandguiding(Board of) Corporate Auditors

Considers issues prior toboard of directors’ meetings

Working together

TOPPAN CSR REPORT 201113

Organizational Governance

Strengthening Audit Functions
The Management Audit Office is a body established independently from the business divisions. Working from legal andrational viewpoints, the office conducts fair and objective audits
on the administrative and operational systems and practicalstatus of the Company’s management activities. The officeprovides feedback to the relevant departments on problems,
proposes measures for improvement, and reports the audit
results to the President & Representative Director, directors incharge of relevant departments, and corporate auditors. In
fiscal 2010, the office carried out 32 management audits andoperation audits. It also conducted maintenance and operational evaluations of internal controls over financial reporting
for all Company divisions and major subsidiaries.
The Compliance Department in the Legal Affairs Division
spearheads the Company’s initiatives to ensure the strict
observance of laws and regulations and to firmly establish
ethical business practices. The department facilitates the complete awareness of the Conduct Guidelines, organizes
employee education on compliance with applicable laws, andimplements internal audits on information security (➞PP. 22,
28). The Ecology Center in the Manufacturing & Technology
Division supervises environmental activities by conducting
internal audits at operational sites and monitoring the progressof improvements (➞P. 32).

CSR Promotion Structure

Remuneration to Directors and Corporate Auditors
In fiscal 2010, the total annual remuneration to directors was
1,088 million yen and the total annual remuneration to corporate auditors was 124 million yen. Please refer to the Status
of Corporate Governance, etc. in the financial statements fordetails on the method used to determine remunerations andother remuneration-related information.

CSR Initiatives
Structure
Under the President & Representative Director and the Director in charge of CSR, the CSR management divisions of thehead office work in collaboration with each other to promote
CSR activities. These divisions convene regular CSR promotion
department meetings to assess the progress of their activities
and discuss ways to resolve related challenges.
Material Topics
To help realize the Corporate Structure, Toppan has sought
out stakeholder views and established eight material topics toaddress through CSR activities. Action points and goals areset for every material topic, and achievement levels are confirmed in order to review every goal and action (➞P. 8).
After fiscal 2011, Toppan will review the existing topics andidentify new areas on which to focus in light of the seven core
subjects set under ISO 26000.

Material Topics

President & Representative Director

Corporate
Structure

Secretary Department

Towards therealizationof thePublic Relations DivisionCorporate
Philosophy,

Corporate Planning
Division

Corporate
Creed, andPersonnel & Labor
Relations Division

Conduct
Guidelines

Business
partners

Establishing a trusted
supply chain

Communities

Contributing to society,community, and culture

Shareholders
and investors

Disclosing information ina fair and open manner andimproving transparency

Employees

Respecting and leveraging
human assets

Finance & Accounting
Division
Manufacturing &Technology Division
Business Development &Research Division
Purchasing Division

Stakeholders

14

TOPPAN CSR REPORT 2011

Eight Material Topics

Conserving the global environment

Legal Affairs Division

Reinforcing information risk management

CSR promotion department meeting
Administration

Assuring product safety andquality / providing products
and services to help solve
social issues

Complying with laws, regulations, and corporate ethics

Director in charge of CSR

Customers

Risk Management Structure

Business Continuity Management (BCM)

Toppan manages risk comprehensively to avoid risk and minimize the losses incurred when events at risk of occurring
actually occur.
The Rules on Risk Management have been established toresolve matters regarding risk avoidance and the minimizationof loss when an event at risk of occurring actually occurs. In
accordance with these rules, the Company has set up a risk
management structure under which the responsibilities for risk
management are allotted to specific divisions in the head officebased on the types of risk involved. Under this structure, thedirectors in charge of each relevant division are responsible
for taking measures to prevent, avoid, and correct each typeof risk.
Toppan reviews risks to be managed once a year and examines countermeasures to be taken in line with the rules. The
Company also holds a regular Risk Management Liaison Meeting for the persons in charge of risk management in the head
office divisions in order to share information on a continuous
basis and respond to risk practically.

Earthquakes are more frequent in Japan than in almost every
other country in the world. To prepare for a possible operational
shutdown in the aftermath of a large-scale earthquake, Toppan
has been consolidating a structure to resume business operations as rapidly as possible in a post-disaster environment.
In fiscal 2010, the Group began to formulate business continuity plans (BCPs) on a full-scale basis. Starting with the Tokyo
metropolitan district, Toppan is laying down BCPs for the business fields of Information & Networks, Living Environment, andElectronics, as well as for the departments handling information systems.

Risk to Be Managed and the Relevant Head Office Divisions in Charge
Risk to Be Managed
Accidents involving products or
product liability

Accidents or complaints related to products (Manufacturing & Technology Div.)
Accidents related to main systems (Business System Div.)
Occupational accidents, traffic accidents, and other accidents involving
employees (Personnel & Labor Relations Div.)
Incidents related to notes or accounts receivable (Finance & Accounting Div.)

Accidents or disasters related
to company operations

Defamation, slander, and othercriminal damages
Relationships with antisocialorganizations
Natural disasters

Legal problems with orders received (Legal Affairs Div.)
Leakage of personal information or internal confidential information (Legal
Affairs Div.)
Accidents or disasters related to fires or explosions (Manufacturing &Technology Div.)
Illegal activities related to the storage of solvents, management of dangerous
chemicals, etc. (Manufacturing & Technology Div.)
Damage to the company’s internal computer system due to cyber terrorism,
illegal access or use of company information, and leakage of personal
information or internal information (Business System Div.)
Acts of violence against the company (threats, kidnapping, robbery)(Personnel & Labor Relations Div.)
Unreasonable demands from antisocial organizations, transactions conducted between business partners and antisocial organizations (Legal Affairs Div.)
Material losses or personal accidents suffered by customers or the company
due to earthquakes, wind or water damage, lightning, etc. (Personnel &Labor Relations Div.)

Risk in business management

Shareholder derivative lawsuits, hostile takeovers (Legal Affairs Div.)

Unlawful activities related toexternal contracts
Infringement of intellectual
property

Violations of the Subcontract Law of Japan, illegal transactions withbusiness partners (Manufacturing & Technology Div.)

Environmental problems
Risk in overseas businessactivities

Infringements of patents, trademarks, copyrights (Legal Affairs Div.)
Violations of environmental laws or standards, illegal disposal of industrial
waste (Manufacturing & Technology Div.)
Product accidents, environmental problems, fires or natural disasters,
damage to human or physical resources caused by international conflicts or
terrorism, etc. (Corporate Planning Div.)Countermeasures against Disasters
Toppan has carried out comprehensive disaster-preparedness measures throughout its
operational sites under a basic plan for countermeasures against disasters.
The foremost aims of the countermeasures against disasters at the Group are toensure the safety of all Toppan employees
and their families and to provide aid for affected people in general. A safety confirmation system composed of multiple communication channels such as email and mobile
phone has been in place since 2011 as a tool
to allow employees to immediately confirm
their safety in the event of a wide-scale disaster such as an earthquake. All operationalsites reserve stockpiles of food and otherrequisites for commuters who have no means
to return to their homes. The Group has also
been preparing procedures to minimize damages to business operations, preserve company assets, and provide assistance to customers and disaster-affected people andareas in cooperation with companies andresidents in the community as a socially responsible corporation. In parallel with thesedisaster-preparedness measures, measures
are also being taken to raise awareness of
disaster-mitigation procedures among individual employees. Through the regular repetition of evacuation drills and other various
drills in fire- and disaster-preparedness, every
employee will have the know-how to deal withemergency situations quickly and properly.

TOPPAN CSR REPORT 2011

Organizational Governance

After the Great East Japan Earthquake
Toppan was beset with various difficulties, including damage
at several plants, when the Great East Japan Earthquake
struck. The Group has managed to solve these difficulties in
the post-quake period. To secure business sustainability, thelessons learned from the disaster will be fully reflected in the
BCPs the Group designs. Toppan will construct a Group-widebusiness continuity management structure through the swift
implementation of BCPs across the Group and the ongoing
review and improvement of those plans.

15

Human Rights
PointsB ased on the concept of respect for people, Toppan is committed to respecting basic human rights inside andoutside the Company and has prepared an environment and systems for this purpose.
Inside the Company, Toppan concludes a collective labor agreement and promotes policies for equal opportunity
and measures to eliminate discrimination.

Respecting Basic Human Rights andSetting Up a Reporting System

Collective Labor Agreement

Human Rights

Toppan places great value on the concept of respect for people. This is a universal value for the Company. The Conduct
Guidelines call for the recognition of the diverse values of individuals and respect for individuality. The guidelines prohibit
any violation of basic human rights through discrimination
based on race, ethnicity, nationality, religion, gender, age,physical characteristics, or any other attribute.
Toppan has been promoting awareness-raising activities inrank-based training for employees to raise esteem for basic
human rights. One such activity is to protect the working environment from the influences of sexual and power harassment
and another is to develop prompt solutions for any harassmentthat may occur.
To resolve and prevent troubles with sexual harassment,
inappropriate employee conduct is reprimanded under employment regulations based on the Basic Policy on Sexual Harassment at the Workplace established in 1999. Sexual harassment
counselors are also deployed.
No instances of child, forced, or compulsory labor haveever occurred in the Company.

The Toppan Printing Labour Union and the management of
the Company have concluded a collective labor agreement inorder to stabilize labor-management relations, maintain andimprove working conditions, and secure the corporate concord. The agreement sets forth a fundamental policy between
labor and management, the rules governing union activities
and labor-management negotiations, and employment conditions such as wages and working hours.
As a fundamental policy between labor and management,
Article 1 of the collective labor agreement, the General Principles, stipulates that the Company and union shall contributeto society through business operations and collectively workfor the benefit of the Company and long-term stability of
employees’ livelihood. Labor and management both upholdthese as common goals. Article 2 of the agreement specifies
that the Company shall respect the union’s rights to organize
and collectively bargain and act. It clearly states that the union
has all the rights established by law. The effective period of
the collective labor agreement is two years. When neither theunion nor the Company indicates its intention to revise or­terminate the agreement at least thirty days before its expiration, the agreement will remain in effect for no more thananother six months after the expiration date.

Initiatives for Respecting Basic Human Rights
Participating in the United
Nations Global Compact
Toppan participates in the global policy initiativeand respects basic human rights in a proactive
manner with other business participants.

Establishing and disseminating the
Conduct Guidelines (PP. 22, 25)
In the Conduct Guidelines, Toppan’s listing of
behavioral norms for employees, Toppan
specifies respect for basic human rights anddisseminates this principle across the Group.

Working for equal opportunity andeliminating discrimination
Toppan respects personal qualities andindividuality, and hires and treats employees
without discrimination of any kind.

Respect forpeoplePromoting CSR procurement
P. 24)

Organizing training and education

Toppan specifies respect for basic human rights in
its CSR Procurement Guidelines and requires its
business partners to comply with the guidelines.

Toppan organizes training sessions for new
employees to educate them about respect forbasic human rights in easy-to-understand lessons.

(Setting up a reporting system(

PP. 22, 24)

Toppan operates a hotline via which
employees and business partners canreport inappropriate actions.

16

TOPPAN CSR REPORT 2011

Contributing to society(

P. 30)

Toppan supports people’s livelihood through educational
cooperation in developing countries and donations andthe supply of goods throughout the world.

Working for Equal Opportunity andEliminating Discrimination

Employment of Persons with Disabilities
Toppan promotes the hiring of persons with disabilities mainly
via Tokyo Metropolitan Government (T.M.G.) Prepress Toppan
Co., Ltd., a special subsidiary that employs persons with disabilities. As of June 1, 2011, persons with disabilities accounted
for 1.97% of the total workforce at Toppan.

Positive Action
Toppan has promoted positive action aiming at the creationof new services and businesses. To better respond to customer and social needs, the Company needs to develop new
products and services from feminine perspectives. Toppan
has 161 female managerial and supervisory staff (as of April2011).
 elf-determination on the Career Path /S
Second Careers
Toppan has established the Challenging Job System, a program
to encourage employees to consider their own work experiences, official qualifications, and the departments and divisions
to which they would like to be transferred. Employees thinkcarefully about their own medium-to-long-term career development and the skill-enhancement plans necessary to move themon track. The system cultivates a problem-solving, can-do
mindset that kicks in when employees reach the new positions
to which they aspire. For retired employees in their second
careers in company life, the system offers working options
matched to their career aspirations and the knowledge, experience, and skills they have acquired through long years ofservice. Seventy-eight of 89 employees who retired in fiscal
2010 were reemployed and now remain with the Company.

Female Managerial and Supervisory Staff(Staff)160

Female supervisory staff
Female managerial staff (as of April)
161
149
140
136

120
80

110

124

115

110

0

Number of Recruits*1

Regularrecruitment of
new university
graduates andpost-graduates

Fiscal 2009

Fiscal 2010

Fiscal 2011

Male
Sales,
administration, etc. Female

136

57

51

72

20

23

Male

150

56

83

Female

36

21

22

Male

155

0

3

Technical

New graduates from high schools andNational Colleges of Technology

40

Female

24

9

13

573
(23.0%)

163(30.7%)

195(29.7%)

13

18

—

26

30

34

37

Total number of regular recruits (percent female)

2008

2009

2010

2011 (Year)

Mid-career recruitment of experienced
personnel

Employment of Persons with
Disabilities

Human Rights

Providing an Open Environment for Recruitment
Toppan offers various employment opportunities for persons ofboth genders and persons of many nationalities, ages, and levels of physical ability. Recruitment takes mainly three forms:
regular hiring of new graduates from universities and highschools; mid-career hiring of experienced personnel year round;and hiring of persons with disabilities year round. To hire newgraduates from universities, Toppan conducts screenings inseven geographical areas across Japan. The Company also setsby-job-type screenings in Japan and recruitment screenings
outside of Japan. All graduates screened are given the chance
to choose in accordance with their own aspirations and vocational aptitudes. Before the screenings, Toppan determines thetalent requirements based on the results of employee consciousness surveys and a review of the behavioral characteristics ofoutstanding achievers in the Company. During the screening,
Toppan tries to estimate if the recruits have suitable competencies and potentialities. The Company also runs internship programs to boost student awareness about work. A cumulative
total of about 2,700 students participated in workshops, practical training sessions, and online training courses in fiscal 2010.

*1 The number of employees presented for fiscal 2009 includes employees who are now working at
subsidiaries that were spun off on April 1, 2009.

2009

2010

2011

Employees

160

183

199

Percentage
of total
workforce*2

1.90%

1.89%

1.97%

*2 The percentage is calculated based on the
total number of regular employees (as ofJune 1) as a denominator. The total number
was presented in the Disabled Persons Em­
ploy­ment Report in accordance with Article
8 of the Law for Employment Promotion,etc. of the Disabled of Japan.

TOPPAN CSR REPORT 201117

Labor PracticesT oppan recognizes how deeply it depends on employees and encourages them to work vigorously andearnestly with strong motivation.
Toppan establishes labor-management relationships in which labor and management stand on
equal footing and trust and respect each other.
Toppan has been implementing initiatives to support better work-life balance and has substantiallydecreased the average hours of overtime worked.

PointsLabor Practices

Basic Concept of Human Assets

Labor-Management Partnership

Toppan values its employees as precious company assets(“human assets”) and recognizes how deeply it depends onthem. From this perspective, the Company supports the motivated, vigorous, and earnest work of the Toppan workforce.
The Company keenly understands the importance of the motivation to take on new challenges, the drive to work vigorouslywith a healthy body and mind, and earnest commitment tofollow through on tasks to completion. When employees arevigorous, earnest, and have strong motivation, Toppan is convinced that they show their true abilities to the full.
Toppan strives to improve the abilities and draw out theorganizational powers of every employee through the stagesof hiring, appointment, training, and treatment. To do so, it
places high priority on communication in a spirit of mutual
trust, career progress in the directions in which employees
envision, clearly defined rewards and penalties, and the establishment of an open and fair environment. At the beginning offiscal 2011, ­Toppan reinforced its function to control humanresource development throughout the Group. The Company
plans to develop the Group further by fostering more people
who can create new businesses and markets.

As partners in shared ideals, Toppan’s labor union and management have trust in each other and respect for each other’s
positions. The two parties work on various issues together onan equal footing and hold events of various sorts, including
recreational activities for employees. Placing safety and healthactivities as a top priority for both labor and management infiscal 2010, Toppan opened Anzen Dojo, a safety training facility outfitted to simulate occupational accidents for enhanced
safety awareness. Labor and management cosponsored­Toppan Sports Festival 2010 at the Seibu Dome in Saitama
Prefecture and welcomed 4,400 participants, including theemployees and their families from Group companies in theTokyo metropolitan area.
Business councils are convened as Company-wide andoperational site forums to discuss wide-ranging managerial
issues. Several types of special committees to deliberate individual issues are also convened. Standing committees meetto discuss issues such as working hour reductions, wages,
welfare, and safety and health. Likewise, individual committees
meet when necessary to discuss specially designated subjects, such as the creation of a working environment amenable
to enhanced job satisfaction. Toppan has adopted a union
shop system. In principle, all non-managerial employees
belong to the labor union as members.

Number of Employees (as of March 31)Directors

A spin-off of subsidiaries on April 1, 2009 substantially altered the number of employees.

Management
Supervisors
Class

Total
Employees

Average Age

Fiscal
2008

Male

28

1,836

2,244

10,437

15.3

39.2

Female

1

26

108

1,111

9.0

31.7

Fiscal
2009

Male

27

1,670

1,853

7,672

14.4

40.0

Female

1

30

104

1,097

8.5

31.5

Fiscal
2010

Male

26

1,686

1,800

7,512

14.4

40.7

Female

0

33

114

1,121

8.7

32.2

Reasons for Leaving*1
Fiscal 2009

Fiscal 2010

Personal reasons

218 (40)110 (40)

116 (38)

Retirement

144 ( 3)118 ( 0)89 ( 0)

Requested by thecompany0 ( 0)

0 ( 0)

0 ( 0)

Other

33 ( 1)50 ( 4)60 ( 2)Total

395 (44)278 (44)265 (40)

3.4%

3.1%

3.0%

*1 T he number of female employees who left the company is shown in­parentheses.

Average Annual Salary
Total

Sum Total
Employees

Part-timeWorkers

TemporaryStaff

11,548

1,208

1,666

8,769

541

144

8,633

647

47

Annual Paid Leave Used

Fiscal 2008

Turnover rate

18

AverageTenureFiscal 2008

Fiscal 2009

Fiscal 2010

6,561,080 yen

6,442,189 yen

6,680,897 yen

TOPPAN CSR REPORT 2011

Fiscal 2008
Average paid
leave used (days)
Average ratio*2

Fiscal 2009

Fiscal 2010

8.1

7.7

7.8

43.5%

40.8%

40.7%

*2 Average ratio = average paid leave used / average paid leave granted

Employees Taking Maternity or Childcare Leave
Employees taking
maternity leave
Employees taking
childcare leave*3

Fiscal 2008

Fiscal 2009

Fiscal 2010

42

45

72

74 (2)

72 (0)

94 (1)*3 The number of male employees who took childcare leave is shown in­parentheses.

Supporting Work-Life BalanceEfforts to Foster the Next Generation
Toppan has striven to create a working environment in which
employees can achieve better work-life balance. It does so by
providing systems for childcare and nursing care leave, for
reduced working hours, and for a higher family allowance fordependents. A rehiring system for employees who resign fromthe Company to deliver and bring up children has been in placesince fiscal 2006. Now, in the fifth year of system operation,
17 resigning employees have registered for future rehiring.
Toppan has made other institutional improvements, as well.
For example, the eligibility period for reduced working hours
for employees with childcare responsibilities is now extended
to the end of the child’s third year of elementary school, a point
in time beyond the requirements of the applicable law in Japan.
A staggered working-hour system for expectant mothers andchildrearing parents has also been introduced.
In fiscal 2010, Toppan extended the period of childcare
leave up until the first March 31 after the employee’s childreaches the age of 12 months. This change satisfies therequirements of the revised “Act on the Welfare of Workers
Who Take Care of Children or Other Family Members IncludingChild Care and Family Care Leave” of Japan. It also addresses
difficulties that parents face in Japan, where entry to daycare
services is often impossible midway through the year. With a
new extension of the Company’s systems for reduced working
hours and other childcare supports, these systems now remainin effect up until an employee’s child finishes the third year ofelementary school, even in cases where the employee’s spousehas time to devote to childcare.

Labor Practices

 fforts to Shorten Working Hours
E
Excessive overtime is a longstanding issue for Toppan. Every
operational site has examined and implemented measures tocontrol the numbers of hours worked. For the time being,
however, the Company has yet to achieve fundamental solutions, due to characteristics of the printing industry and otherfactors. In October 2008, Toppan launched a Company-wide
effort to eradicate extended overtime work as a means ofachieving better work-life balance and maintaining employee
health.
Senior management, managers, and employees jointly
undertake initiatives to improve operating effectiveness byreviewing the ways individuals work and the ways managementadministrates; to equalize overtime hours by adjusting operations within the departments; and to introduce new working
systems such as flextime and irregular working schedules.
At the ongoing business councils and labor-management
committees, senior management and labor exchange opinions
and deliberate on measures to further shorten overtime working hours and to comply with the revised Labor Standards Act
of Japan. They also analyze the actual overtime practices andreview the use of the newly introduced working systems.
As a result of these initiatives, the number of employees
who worked long hours was reduced by about 95% in fiscal
2010 compared with fiscal 2007, the year before the measures
were introduced. The average hours of overtime worked also
decreased by more than 15%.

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

Childcare Leave

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

Leave for Child
Healthcare
Volunteer Leave
Staggered Work-hours
Dependent Family
Allowance
Partial Subsidization ofBabysitter Expenses
Other Systems

Employees can accumulate up to 50 days of annual paid leave (exercisable within two years from the date they are granted).
Employees are eligible to use their stock leave for treatments for themselves or their dependents, healthcare for their families, or
recovery from unexpected disasters.
Both mothers and fathers are eligible for fulltime childcare leave consecutively up until the first March 31 after their child reaches
the age of 12 months (Eleven male employees have taken childcare leave so far, on a cumulative basis). Employees on leavereceive 10% of their regular salaries from the Company (until their child reaches the age of 18 months) and subsidies of 30,000
yen a month from the Toppan Group Fraternal Benefit Society. They can also work for shorter hours (maximum reduction of twohours per day) or select a flextime or irregular working schedule from the date of their return to the job until their child completes
the third year of elementary school. The Company subsidizes certain childcare costs and provides childcare-related information
through a consultation office.
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 up to the date of resignation. A resigned employee who meets these conditions
will remain eligible for rehiring until May 1 of the year when the child enters elementary school.
Employees are entitled to take leave for nursing care. The maximum consecutive leave and maximum reduction in a working
day are one year and two hours, respectively, for every family member requiring the nursing care. The Toppan Group Fraternal
Benefit Society pays a 30,000-yen subsidy per month as assistance during the nursing care leave. The Company subsidizes
certain nursing care costs and provides nursing care-related information.
Employees can take up to 10 days of leave a year, regardless of the number of children they are raising. These days can betaken in half-day allotments when necessary.
In principle, employees can take volunteer leave to engage in socially beneficial activities for a maximum of one year. Employees
on volunteer leave receive an allowance.
An employee can adjust daily working hours upward or downward by up to one hour to avoid rush-hour commutes during
pregnancy and by up to two hours for childcare (until his or her child completes the third year of elementary school).
The Company pays every employee with children a monthly allowance of 20,000 yen for each child. This allowance isdiscontinued on the first April 1 to arrive after the child’s 18th birthday. (No limit for the number of children is applied.)
The Toppan Group Fraternal Benefit Society subsidizes 50% of babysitter expenses (up to a 5,000-yen limit per 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 childrearing. It also provides one-year free subscriptions to the monthly childrearing magazine Baby andMommy and runs a consultation office for employees with questions about the health of the body and mind.

TOPPAN CSR REPORT 201119

Occupational Safety and Health /Healthcare and Health Enhancement

Measures for Mental Healthcare

Labor Practices

Labor and management at Toppan have integrally propelled
activities to enhance occupational safety and health. The
Safety and Health Committee of each operational site plays acentral role in these activities with the goal of completely eliminating occupational accidents. While occupational accidents
have yet to be completely eliminated, these efforts have
reduced both the frequency and severity rates to low levels.
Toppan formulated the Company-wide Basic Policy on
Safety and Health in June 2010. These policies strictly affirm
that business operations should place top priority on safety
and clearly spell out the actions all operational sites should
carry out. The Company is working to enhance the safety
awareness of individual employees by organizing education
throughout the operational sites. Danger simulation programs
are also arranged using specialized hardware to simulate accidents involving fire, explosion, and the jamming of body partsin machines. In parallel, Toppan established the Health and
Safety Promotion Department at the head office in October2010. This department supports the safety and health promotion activities at all operational sites, quickly and proactively
provides necessary information, and implements various safety
and health measures across the Company. All operational sites
in the Company work in a concerted manner to completely
eliminate occupational accidents.

Occupational Safety and Health

Overview of the Mental Healthcare System

2008

2009

2010

0

0

0

Frequency rate*1

0.19

0.09

0.00

Severity rate*20.001 0.003

0.00

Deaths fromoccupational accidents

Labor and management regard the maintenance of employee
health as a shared mission vital for the corporate activities at
Toppan and have regularly met to exchange frank views on
mental healthcare measures.
In fiscal 2008, several rules were appended to the employment regulations to help the Company provide a working environment to which employees can more readily return frommental healthcare leave. These rules define a clear set of criteria for deciding when an employee should return to work,measures to prevent the recurrence of leave, and programs
to support employees once they return to work. Toppan also
holds regular mental health checks for all employees to preventand promptly care for mental problems.
In a fiscal 2009 project conducted with the Institute of theFormative Art Co., Ltd. within the Toppan Group, the Company
introduced Art Salon, an art session to refresh employee minds
and bodies through the creative work of painting. Sessions
have been held at operational sites across Japan from fiscal
2010 onward, delighting many of the employees who havetaken part. Employees are also encouraged to freely consult
with counselors in counseling rooms in all regions where­Toppan sites operate. In addition, the Company has concluded
advisory agreements with mental healthcare specialists tosecure a ready source of instruction and advice from professional viewpoints.

*1 Number of occupational accidents requiring
employee leave, per million working hours(reflects the frequency of occupational­accidents)*2 Number of workdays lost as a consequenceof occupational accidents, per thousandworking hours (reflects the severity of occupational accidents)

Primary
Prevention:

Proactive measures

Secondary
Prevention:

Early detection

Regular mental health checks,
including stress checks
Mental healthtraining
I In rank-based
training
I Incorporation
into optional(group) training

MedicalTreatment:
Early cure

Steps to Prevent
Recurrence:

Support for returning
employees (fresh starts)

Contracts with mental healthcare specialists

Cooperation with medical and counseling institutions outside Toppan
Guidance and information about consultants
outside Toppan (contracted with the
Toppan Group Health Insurance Union)•A clear set of criteria
for deciding whenan employee on
leave should return•Rules for preventing
the recurrence ofmental healthcare
leave

Programs to support employees
returning from mental healthcare leaveCounseling rooms
Art Salon, an art session for employees
Appointment
and deploymentof a person totake charge ofmental healthenhancement
at everyoperational site
Danger simulator at Anzen Dojo

20

TOPPAN CSR REPORT 2011

Steps to allay
anxiety after
resignation
Financial assistancefrom the Toppan Group
Fraternal Benefit
Society and othersources for fixed
periods after resignation

Developing and Fostering Human Assets
 oncept of Human Asset Development and FosterageC
Toppan’s rank-based training helps employees understand theroles and responsibilities of each rank and appreciate andpractice “conduct of high value.” The Company offers a wide
variety of training programs to encourage employees to acquire
the “abilities and skills” required by each workplace. Information on individuals and organizations is consolidated into a
database as basic data used at each workplace for the sustainable growth of the business.
Toppan rotates employees systematically to foster humanassets, help employees advance in their careers, and optimize
personnel positioning across the Group.

Fostering New Employees
Toppan regards the first three years after recruitment as thefosterage period for new employees and establishes an early
career planning system to help new employees learn about
themselves and achieve individually affirmed career ideals. A
senior associate in the employee’s workplace is appointed asa “Brother” or “Sister” responsible for training and fostering
new employees mainly through on-the-job training (OJT). With
help from the employee’s immediate superior, the Brother or
Sister prepares a “design sheet for ability and skill development”
and regularly checks the employee’s progress.
Fostering Human Assets Active in Global Businesses
Toppan has set up an assortment of systems to support overseas study for human assets who can play active roles in
global businesses. The Company’s globalization training course
has supported a cumulative total of 151 candidates for overseas assignments as trainees from the launch of the programin 1996 up to the first half of fiscal 2010. To expand this training, the Company opened the course to all who wanted toapply in the second half of fiscal 2010 and invited a broader
range of employees to participate. As a result, 52 employees
completed the new training course in the first year.

Labor Practices

 rganizing Rank-based Training and Various
O
Education Systems
A cumulative total of 2,380 employees participated in rankbased training held by the head office in fiscal 2010. The head
office welcomes Group company employees to the sessions.
In addition to the department-based training planned out by
the relevant divisions of the head office, divisional training isprovided to equip employees with practical skills essential for
performing tasks in each business field.
The Toppan Business School, meanwhile, offered selfdevelopment training to a cumulative total of 10,171 employees in fiscal 2010. The programs at the school are customizable to employee career designs with optional (group) courses

and the Challenge School (correspondence learning courses).
Employees also have ready access to basic, Company-wide
education via Toppan’s e-learning system.

Systematic Human Asset Development Programs“Conduct of High Value” Based on the Corporate Philosophy and Corporate Creed
Earning the trust ofcustomers

Strengthening businessfoundations

Knowledge andinformation skills

Ability to identify andformulate tasks

Fulfilling corporatesocial responsibility

Strengtheningorganization

Improving corporate value“Abilities and Skills” for “Conduct of High Value”
Ability toaccomplish tasks

Rank-based Training
INew division manager training
INew department manager training
INew manager training
INew supervisor training

INew employee Company-widetraining
IEarly career planning
IOJT brother/sister training

Techniques andknow-how

Skills in communication andfostering subordinates

Department-based Training
ISelected training for section
managers in sales departments
ISelected training for mid-level staff insales departments
ITraining for new section managers intechnology and manufacturing
departments

Basic Company-wide Education (e-learning)

Training for Globalized Businesses

Training by the Divisions

IBasic education on CSR
IBasic education on TOPPAN VISION 21
IBasic education on the environment
IEducation on profit creation inbusiness
IBasic education on globalization

IMBA abroad training
IStudy abroad program for engineers
IIT training in India
IShort-term overseas study
IGlobalization training

ITraining in each division and at each
workplace

Selective Training

ITraining for employees in production
control departments
ITraining for new supervisors intechnology departments
IIndividual department-based training(Purchasing, Secretary, Personnel &Labor Relations, Technology &Research, and other divisions)Toppan Business School
IOptional training
IChallenge School
IVideo library

IExecutive business school
ITraining to nurture industry-leading
talent*Operated together with Toppan Mind Wellness Co., Ltd. (in the Toppan Group), an education consultation company entrusted with training projects insideand outside the Company.

TOPPAN CSR REPORT 201121

Fair Operating Practices
PointsToppan revised the Conduct Guidelines in the 10th year after their establishment.
Toppan organized education on compliance with the Subcontract Law of Japan andchecked how subcontract transactions were being handled.
T oppan expanded the boundaries of its CSR procurement initiatives.

Disseminating the Conduct Guidelines
In June of 2000, the year of its 100th anniversary, Toppan
established the Conduct Guidelines to express the behavioral
norms by which every employee in the Group should comply
with laws, regulations, and corporate ethics. Toppan revised
the Conduct Guidelines in 2010, the 10th year of their existence, to position them as a cornerstone for the further development of the Group.
The revised guidelines are designed to be shared by all
Group companies around the world as an instrument for theassurance of full compliance.

Fair Operating Practices

Conduct Guidelines Promotion Leader System
Toppan has introduced a Conduct Guidelines Promotion
Leader system to disseminate the Conduct Guidelines in theworkplace and ensure full compliance with them. Conduct
Guidelines Promotion Supervisors (the “Supervisors”) andLeaders (the “Leaders”) are deployed at every Toppan operational site, including the manufacturing subsidiaries. The current tally for Leaders across the Group stands at 751. Sevenpoint five percent of these Leaders (56 in total) are female, andToppan will resolutely continue to increase this rate by fostering more female Leaders. A cumulative total of 3,794 employees have worked as Leaders since the system was launchedin 2004.

 issemination Activities by Conduct Guidelines
D
Promotion Leaders
The Leaders formulate plans to disseminate the Conduct
Guidelines and devote themselves to developing activities
based on the plan. Their plans are tailored to the details of
business operations, staff compositions, and other individual
factors at the workplaces where the Leaders serve.
Tools to Promote the Conduct Guidelines
Toppan gives every employee a Conduct Guidelines Casebook,a Q&A style casebook describing actual situations that canarise in daily work. The Leaders make good use of the casebook to disseminate the guidelines and the Company uses it
in rank-based compliance education. The Conduct Guideline
Notifications posted on the Company intranet heighten
employee awareness and call attention to compliance-related
issues. The notifications published in fiscal 2010 provided
information on topics such as information leakage, health andsafety, quality problems, and improper conduct.

Toppan Group Helpline
The Toppan Group Helpline, the Group’s internal reporting
system set up in 2003, complies with the Whistleblower Protection Act enforced in Japan from April 2006. The Helpline
was extended to cover all Group companies in 2008. Whenan employee discovers a legal violation or improper conduct,
he or she is to report it to his/her superiors for deliberation.
When the employee’s superiors fail to settle the problem, theStructure to Promote the Conduct Guidelines
President & Representative Director
Director in charge of Conduct Guidelines Promotion
Compliance Department, Legal Affairs Division

Divisions in the Company

Divisions of the head office

Division heads

Conduct Guidelines
Promotion Supervisor
Senior General Manager
of Legal Affairs Division

Conduct Guidelines Promotion Supervisors
Person in charge of management: Business Strategy Department GM
Person in charge of education: General Affairs Department GM

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 supervisorsfrom each department

Educational leaders

Managers or supervisorsfrom each department

Employees

22

TOPPAN CSR REPORT 2011

Employees

employee is encouraged to call the Helpline to report the matter with his or her real name. The Helpline is kept open for use
by all directors and employees, including temporary staff andpart-time workers.
The Helpline was used in five cases in fiscal 2010. The
incidents reported involved sexual and power harassment andother inappropriate actions. All five cases were strictly investigated and properly handled, and necessary countermeasures
were taken to prevent recurrence.

Implementing the Conduct Guidelines inOverseas Group Companies
By fiscal 2009, the Toppan Group had introduced and disseminated the Conduct Guidelines at Group companies ineastern Asia. In fiscal 2010, the Group began to revise theguidelines already implemented in these companies, basedon revised Conduct Guidelines designed to be shared by theentire Group. As soon as these revisions are completed, theGroup holds briefing sessions in every country and region toensure full compliance at these overseas Group c­ ompanies.

Education on Compliance with the
Subcontract Law of Japan
Toppan has organized education on compliance with the Subcontract Law of Japan to attain full compliance with the law
in transactions with subcontractors. In fiscal 2010, 26 sessions
mainly for employees in the planning and sales promotion
departments and manufacturing subsidiaries were held in Japan
from October 2010, with 1,135 participants. In a separate
effort, the Company checked how subcontract transactions
were being handled in 47 sections throughout the country.
Toppan also launched an e-learning-based educational
program for sales departments on compliance with the law inNovember 2010. In total, 2,950 employees took part in fiscal
2010.

Compliance Education
As in the previous fiscal year, Toppan held the semi-annual
specialist training series for Conduct Guidelines Promotion
Leaders in fiscal 2010. The series were scheduled in twophases. In the first, 575 Leaders were trained in 33 sessions

Briefing on ComplianceToppan was not involved in any violations of laws or regulations
with major impacts on society in fiscal 2010. The Company
received no criminal punishments, administrative penalties, or
administrative guidance.

Toppan Group Helpline

Approach to Intellectual Property

Communicator
All Group employees

When a problem is
not settled

Reporting andconsultation
Reporting on
progress andresults, follow-up
communication

Superior
Internal reporting(emails or sealed documents sentwith the employees’ real names)

Fair Operating Practices

Compliance Education

across Japan, from May to September 2010. In the second,
520 Leaders were trained in 31 sessions, from November 2010
to February 2011.
Toppan also held ongoing compliance education in various
rank-based programs, including a training course for new
employees.

Protection and management of intellectual property is a crucial issue for
Toppan, a company engaged in planning and development in diverse
business fields such as Information & Networks, Living Environment,
Electronics, Personal Service, and Next-generation Products. The Company devotes strict attention to measures to prevent the infringement of
copyrights, trademarks, and other intellectual property rights of third
parties while obtaining patents for its own technologies and businessmodels.
As one measure, Toppan regularly holds training sessions for business partners of the planning departments, in addition to the sessions for
employees. Participants in these sessions acquire basic knowledge oflaws on intellectual property rights by reviewing actual cases involving
troubles in design work and the like.

ReceiverPresident & Representative Director
or Senior Corporate Auditor
Toppan Printing Co., Ltd.
Instructions

Reporting

Department responsible forinvestigation and countermeasures

TOPPAN CSR REPORT 201123

Promoting CSR Procurement

Fair Operating Practices

24

The Toppan Group implements CSR initiatives in cooperation
with business partners throughout the entire supply chain toenhance corporate value for every counterpart. Towards thisend, the Group has established a set of CSR Procurement
Guidelines.
These guidelines consist of the Basic Procurement Policy
and the CSR Procurement Standards. The Basic Procurement
Policy is a conceptual framework to be closely observed byevery Toppan employee involved in procurement operations.
The CSR Procurement Standards stipulate the requirements
to be satisfied by every business partner. At the same time, allemployees in the Toppan Group are required to adhere to thestandards.

This database serves as a valuable information resource forestablishing a trusted supply chain between Toppan and its
business partners.
In fiscal 2010, Toppan expanded the boundaries of its CSR
procurement initiatives and collected memorandums andquestionnaires from 192 major business partners involved in
the provision of equipment for the Group.
The Group also held briefing sessions at seven operationalsites for about 340 business partners involved in the production. The briefings were designed to deepen the understanding of the business partners and encourage them to fully implement measures addressing issues such as occupational safety
and the management of waste, chemical substances, andinformation security.

 omplying with the CSR Procurement Standards andC
Enhancing CSR Interactively
The Toppan Group launched CSR procurement initiatives infiscal 2007. Since then, every business partner willing to cooperate with the Group’s CSR endeavors has submitted a memorandum of cooperation and reported the current status of its
CSR activities in a questionnaire.
Toppan compiles the information written up in the memorandums and questionnaires into a Business Partner Database.

Promoting Compliance in Procurement Departments
The Toppan Group has established a Supplier Hotline, aportal for receiving reports from business partners, on its
website. The Group regularly conducts Business Partner
Monitoring, a system surveying business partner satisfaction
by questionnaire.
In fiscal 2010, the Group asked 19 business partners to fillin the questionnaire. Toppan analyzed the results and devisedcountermeasures for issues that came to light in the surveys.

Toppan Group CSR Procurement Guidelines (revised from the Procurement Guidelines in May 2007)
Basic Procurement Policy
IWe impartially offer opportunities to all suppliers.
IWe comply with all domestic and overseas legislation and perform fair business dealings based on corporate ethics.
IWe strictly control the information obtained through our procurement activities.

IWe give full consideration to impacts on the environment.
IWe pursue QCD (Quality, Cost, Delivery) in order to meet the needs of themarket.
IWe implement CSR initiatives throughout the entire supply chain.

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 orgroup.
(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 with thelaws 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.
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 andstrives 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.

TOPPAN CSR REPORT 2011

Conduct Guidelines and Information Management Policy
Conduct Guidelines
Here are the specific conduct guidelines presented after Chapter 1 of the Conduct Guidelines (described on page 10).
Chapter 2: Specific Conduct Guidelines
Chapter 2 defines the specific conduct practices that we should undertake based on the Basic Principles provided in Chapter 1.
Basic Principle 1: Respecting basic human rights
1. Recognizing the diverse values of individuals and respecting personalqualities and individuality
2. Prohibition of discrimination of any kind
3. Prohibition of sexual and power harassment

Basic Principle 4: Avoiding all links with antisocial groups

Basic Principle 2: H aving high ethical standards and acting asa responsible member of society

Basic Principle 5: Striving to improve quality and providing creations
that contribute to customer satisfaction

In the conduct of business
1. Acting with pride as a member of the Toppan Group
2. Prohibition of tacit approval of illegal conduct and rule violations
3. Respect for foreign cultures and customs

1. M aking our best efforts for the customer and building a relationship oftrust
2. Striving to improve quality in every process
3. Fully ensuring the safety and security of products and services
4. Prohibition of the infringement of the intellectual property rights of others

In our private lives
4. Prohibition of conduct that causes distress to other people
5. Prohibition of drink-driving
6. Prohibition of the possession and use of illegal drugs
7. Prohibition of gambling
Basic Principle 3: Complying with laws and company rules andconducting fair business operations

Compliance with company rules
12. Maintaining discipline and order in the workplace
13. Prohibition of other work without the company’s permission
14. Prohibition of conduct that causes a conflict of interests with the company
15. Prohibition of receipt or provision for personal gain or rebate
16. A ppropriate management of assets entrusted to the company by­customers
17. Appropriate management and use of company assets
18. Prohibition of prejudicial treatment of persons that have reported problems
via the appropriate procedure
19. Fulfilling duties with integrity
20. Reporting promptly and appropriately

Basic Principle 6: R ecognizing the importance of information related
to business and managing it appropriately
1. Protecting information regarding customers
2. Protecting the company’s confidential information
3. Appropriate handling of personal information
4. Striving for the appropriate management of information and records
Basic Principle 7: Proactively undertaking conservation of the global
environment
1. Striving to reduce the environmental burden of business activities
2. Promoting businesses with consideration for the environment
Basic Principle 8: Embracing change and taking on new challenges
1. Making proposals that embrace change to customers
2. Advancing technical development that meets the needs of customers
3. Having an awareness of problems and striving to improve the status quo
4. Striving to enhance one’s knowledge, skills and techniques
5. Securing and using intellectual property
Basic Principle 9: Building trust from society through social contribution
activities and appropriate disclosure of information

Fair Operating Practices

Legal compliance1. Prohibition of collusion and cartels
2. Prohibition of improper conduct in dealings with business partner companies
3. Prohibition of improper conduct against competitors
4. Prohibition of false transactions
5. Respecting business partners’ standpoints and building appropriate relationships with customers
6. Prohibition of bribery and inappropriate entertainment practices
7. Prohibition of illegal political contributions or donations
8. Prohibition of insider trading
9. Prohibition of illicit import and export transactions
10. Prohibition of child labor and forced labor
11. Compliance with international rules and local laws in overseas business1. Prohibition of any dealings with antisocial groups
2. Prohibition of involvement in antisocial activities
3. Prohibition of provision of unjust benefits

1. Proactively participating in the company’s activities to contribute to society
and local communities
2. Contributing to the development and passing on of skills and culture
3. Disclosing information appropriately and enhancing the transparency ofbusiness activities
Basic Principle 10: Bringing together individual strengths to fully
exploit the integrated strength of the group
1. Striving to create a lively and vibrant workplace
2. Striving to create a safe and clean workplace
3. Taking pride in the Toppan Brand and striving to cultivate it
4. Group companies working together to maximize integrated strength
Established in June 2000

Revised in November 2010

Information Management Policy
1. Employees shall comply with all internal rules on information management and manage information appropriately in full observance ofthe law 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 of customers to secure customer trust.
5. To ensure the appropriate management of information at all times, the Company 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 on April 1, 2001

TOPPAN CSR REPORT 201125

Consumer Issues
PointsToppan has been proactively fostering human assets responsible for product safety management.
Toppan has redesigned its universal design (UD) initiatives.
Toppan handles personal information with the utmost care to guarantee security.

Assuring Product Safety and Quality
Quality assurance for products at Toppan is a concern forevery department, not only the departments directly responsible for production. The departments involved in marketing,
R&D, planning, design, sales, and delivery all contribute toquality. This is why Toppan describes quality assurance in production as a total activity (“Total Quality Assurance”) and strives
to improve product quality and control product safety.

Consumer Issues

Product Safety
Toppan has established its Basic Stance on Product Safety
Management and Basic Guidelines on Product Safety Management to strengthen product safety management. The latterprovides guidelines for the following measures: namely, theestablishment of a structure to secure product safety by identifying and evaluating the risk of improper use or other productrelated mishaps and complying with laws and regulations
relevant to products manufactured by each division; information collection and provision and actual measures in the caseof product-related accidents or problems; and product recall
procedures.
To support product safety management, Toppan strives toimprove product quality on an ongoing basis. Every operationalsite has acquired the ISO 9001 certification for its quality management system (QMS) and works to update it. In fiscal 2010,
a total of 255 employees took part in Toppan’s training sessions for internal auditors at operational sites.

Basic Stance on Product Safety
Management
We promote product safety
management throughout
the Group by securing safety andimproving the quality of our products
based on the Basic Principles ofConduct Guidelines andthe principles of corporate social
responsibility as a protector ofuser safety and health.


Certified
Approval System for Manufacturing inFood Packaging
Food packaging requires exacting quality assurance for safety
and sanitation. Toppan has adopted a certified approval system to ensure that the operational sites of Toppan and partnercompanies can manufacture containers and packages only
after receiving the required ratings in the audits. The audits
are conducted based on the Quality Assurance Guidelines for
Food Packaging using a checklist. In fiscal 2010, Toppan carried out 34 audits at operational sites inside and outside theCompany.
Management of Chemical Substances in Products
Toppan intensively promotes product safety management inall manufacturing processes, from material procurement toproduct shipment, by controlling various chemical substances
whose use is prohibited or restricted. While adhering to green
procurement standards prescribed by customers, the Company has established a set of Green Procurement Standards
attuned to the features of products manufactured by every
division in the business fields of Electronics, Living ­Environment,
and Information & Networks. Toppan manages chemical substances in products throughout the whole supply chain.

Audits for the Food Containerand Filling/Packing Businesses
Audit Points•Agreement with customers•Quality assurance system•Management of equipment andinspection devices•Management of safety and sanitation•Steps to prevent the admixture ofdifferent products•Steps to prevent the admixture offoreign substances•Steps to prevent the outflow of
defective products•Steps to prevent contamination•Traceability•Security•Education and training•Maintenance of systems andframeworks

Operational site audit

Operational Sites Audited
Food containers•12 operational sites at divisions andmanufacturing subsidiaries
Filling/packing business•5 operational sites at manufacturingsubsidiaries•16 operational sites at production
business partners
Training session for internal auditors

26

TOPPAN CSR REPORT 2011

Challenges in Universal Design
As Toppan sees it, universal design is a corporate social
responsibility for every company. Toppan strives to realize thefulfilling lifestyles enunciated in its Corporate Philosophy by
producing attractive, easier-to-use products and services suitable for users in various scenes of life.

Consumer Issues

 oppan Declaration on Universal Design andT
Toppan’s Seven Principles on Universal Design
The roles of universal design (UD) have been growing in importance in parallel with social trends such as enhanced social
ethics among consumers, a shift towards consumption with
an emphasis on comfort and sensory values, and declining
birthrates and population ageing.
In April 2010, Toppan established the Toppan Declaration
on Universal Design, a statement of the Company’s purpose
and stance in the creation of universal designs, and revised
Toppan’s Principles on Universal Design (first enacted in2001).
Based on the declaration and principles, Toppan has redesigned its UD initiatives to assign greater weight to sensory
values and customization while maintaining emphasis on functions such as understandability and usability.

Examples of Universal Design
In parallel with their work to develop packaging materials withhigher understandability and usability, packaging departments
are now pressing ahead in the planning and development ofmaterials with enhanced comfort. One example has been thecommercialization of a sound-making package.
Departments in the Information & Networks field, meanwhile, are gearing up their work to plan and develop attractive
printed materials with higher readability and understandability.
Recent examples of their development efforts include easily
assembled point-of-purchase (POP) displays for enhanced
work efficiency and easier-to-understand application forms thatprevent incomplete or erroneous entries.
Toppan has also been offering various survey and analysis
services to help users resolve their problems scientifically.
These activities put momentum behind Toppan’s drive for user
collaboration in universal designs through the solicitation ofwidespread user participation in the development of UD products and services.

Toppan Declaration on Universal Design
The starting point of our Universal Design isthe provision of dedicated products and services realized throughcompassionate consideration of users.
By engaging in repeated dialogues with people from all walks of lifeand consistently incorporating the ideas of each person,
we will create dedicated products that are
comfortable, easier-to-use, and environment- and human-friendly.

Eco-POP display (2009 product)

As a corporation extensively involved in human life,
we will help realize a society with a high appreciation of diversity
through approaches to Universal Design.
Established in April 2010

Toppan’s Seven Principles on Universal Design
1. Design products and services that are more responsive to people with different physical abilities
and perceptions.
2. Facilitate communication using multiple channels for communication, including visual, aural, andtactile channels.
3. Make products easier to use by making them easier to understand.
4. Make products that are easier to move, easier to approach, and require less strength (remove thephysical burdens).
5. Design products that are safe to use procedurally, functionally, structurally, materially, and environmentally.
6. Provide products at a reasonable price and in the amounts required by society.
7. Engage in design that appeals to the senses with consideration for comfort, enjoyment, and beauty.
Established in 2001 Revised in April 2010

Soundmaking
package

International
conference
held by theInternational
Association
for Universal
Design (IAUD)

TOPPAN CSR REPORT 201127

Protecting Personal Information
Toppan handles a great deal of personal information entrusted
to the Company by customers, in the course of arranging andsending direct mail, issuing and processing cards, and conducting campaign secretariat affairs and web-related operations. Toppan treats all personal information with the utmost
care in the belief that the trust and confidence of customers
hinge on Toppan’s responsible management of the information
entrusted by customers.
 einforcing Management at Manufacturing
R­Departments
Toppan recognizes the risk of personal information leaks inevery business operation. In response, the Company haslaunched a special cross-sectional project to eliminate vulnerabilities in the procedures of hardware management, softwaredevelopment and installation, and service operation and­maintenance.

Consumer Issues

I Shoring up Vulnerabilities in Production Systems in
the Information & Networks Field
The Company has sequentially upgraded systems for managing non-functional requirements such as multiplexing, data
backup, and maintenance in an effort to eradicate potential
weakness in the hardware and networks used to handle personal information.
I Building a Diagnostic System for Detecting Website
Vulnerabilities
Toppan has built a new diagnostic system to enable specialty
departments to detect website vulnerabilities and prevent personal information leaks caused by illegal attacks. With thissystem, the Company has started to review its existing website
systems and perform pre-launch diagnoses of new projects
entrusted to the Company.
I Shoring up Vulnerabilities in Operational Processes
Among operations involving the use of personal information,
Toppan has laid down a set of guidelines applicable to the
production of mail magazines and important goods to beposted, in an effort to prevent operational accidents. The
guidelines have been disseminated across the Company.

 onducting Audits on Personal Information HandlingC
and System Assets
Toppan conducts various special audits independently fromthe internal audits carried out within divisions. These audits
include a technical-oriented audit on servers essential to production, and a quality-oriented audit to prevent accidents byassuring the propriety of procedures in all operational processes involving the handling of personal information.
 ontinuing Actual Condition Surveys andC
Face-to-face Group Education
The prevention of personal information leakage depends on
not only established information-protection systems, but also
a high level of employee awareness. To maintain this awareness, Toppan takes strident steps to disseminate the related
rules to all employees and encourage vigilant mindsets.
I Surveying Actual Conditions to Confirm that Rules
are Being Followed
Toppan sends out anonymous questionnaires to assess how
information and devices are handled in actual practice on a
day-to-day basis. In fiscal 2010, the Company collected
20,074 responses and analyzed the data to clarify department
trends. The survey results are used for the internal audits andas an informational tool for improving practices.
I Arranging Face-to-face Group Education to
Enhance AwarenessToppan considers group education in a face-to-face lecture
style to be the most effective approach to encourage heightened awareness in employees. In fiscal 2010, the Company
held 283 briefing sessions in this style across Japan.
I Issuing Educational Booklets for Read-throughs at
the Workplace
In addition to group education in a face-to-face setting, Toppan
also publishes educational booklets with details on relevant
issues employees can check whenever necessary.
Two such publications were issued in fiscal 2010: the Information Security Management Guidebook (2010 additional
edition) and Close Calls on the Job, Vol. 4.
Activities in Fiscal 2010

Information Security
Management
Guidebook(2010 additional­edition; in Japanese)

28

TOPPAN CSR REPORT 2011

Close Calls on the Job, Vol. 4 (on potential mistakes
and mishaps at production sites and in the handlingof manuscripts and artwork; in Japanese)

Meetings of Information Security Managers: May 2010,
March 2011
Projects for reinforced management at manufacturing
departments: from April 2010 to February 2011; once amonth
Various surveys
IAudits on the handling of personal information: from April
2010 to February 2011
ISystem asset audits: from September to November 2010ISurvey of the actual conditions of information security
management: August 2010
Education
IRegular training for information security: from June to
December 2010
IInternal auditor training: from October to November 2010
IIssuance of Information Security Management Guidebook(2010 additional edition) booklet: June 2010
IIssuance of Close Calls on the Job, Vol. 4 booklet:
September 2010

Contributing to Sustainable Consumption
Toppan produces a host of environmentally friendly products
designed to contribute to a sustainable society.
Toppan Material Wood from Toppan Cosmo, Inc. is a recycled industrial material, a molded compound of waste plastic
and powdered waste wood discharged from plants and­construction sites. This industrial material is made almost
exclusively from recycled waste and can be recycled again
after use.
Toppan also manufactures and sells electronic paper.
Uniquely, electronic paper saves the image on the display evenwhen the power is turned off. This reduces power consumption, as the display works without constant power. Better still,electronic paper can be used to display different images again
and again. Thanks to these features, electronic paper is
expected to be used for sundry industrial applications suchas inventory tags, electronic labels, and displays for homeelectric appliances, in addition to consumer application in e-bookterminals.
Toppan will strengthen its efforts to develop more sustainable, environmentally friendly products.

CO2 Emissions Associated with the­Manufacturing of the Japanese Versionof the CSR Report (15,000 copies)

Ratio by Life Cycle Stage
Use, maintenance/
management 0%

Disposal, recycling 2%

Distribution 11%

Raw-material procurement
Paper, ink, CTP
plates, etc.

Consumer Issues

Reporting Carbon Footprint
A carbon footprint is a measure of CO2 emissions associatedwith a product or service. It is a single number anyone canunderstand. Within the framework of carbon footprint reporting, an individual consumer is expected to switch to more
eco-friendly products as a purchaser.
Toppan has been participating in the Carbon Footprint Pilot
Program undertaken by the Ministry of Economy, Trade andIndustry of Japan. The Company has collaborated with theministry in the formulation of Product Category Rules (PCRs)for publication and commercial printed materials (intermediate
goods), containers and packaging, and printed materials foradvertisement and business. Toppan established an in-housestructure responsive to the calculation requirements under the
PCRs and trained persons in charge from fiscal 2008 to 2010.
In fiscal 2011, the Company is applying for approval to put the
carbon footprint label on its pamphlets and the Japanese­version of this CSR report (637 g-CO2 emitted per copy).
Data on manufacturing processes collected for carbon
footprint calculations will help Toppan visualize its energy consumption and thereby implement more effective activities tosave energy and reduce CO2 emissions. Meanwhile, paper
accounts for a large part of the CO2 emissions associated withthe manufacturing of printed products. Toppan is therefore
seeking productivity enhancements to reduce the amounts ofpaper wasted.

7,155 kg-CO2

Production
12%

Production
Prepress, printing,binding, etc.
Toppan Material Wood

1,143 kg-CO2

Distribution
Transport, etc.

1,098 kg-CO2

Use, maintenance/management
Reading, etc.

Raw-material procurement 75%

0 kg-CO2

Disposal, recycling
Transport, treatment,
etc.

Total
Products using electronic paper*In April 2011, Toppan Printing Co., Ltd. agreed
to collaborate in an electronic paper projectwith Chi Lin Technology Co., Ltd., a core company of the Chi Mei Group in Taiwan.

161 kg-CO2

Emitted 9,557 kg-CO2
in total(637 g-CO2 per copy)*This calculation covers the printed version in
Japanese only. The PDF, digital catalogue, andEnglish-language versions are excluded fromthe calculation.

TOPPAN CSR REPORT 201129

Community Involvement and Development
Points

The entire Toppan Group has assisted the areas distressed by the Great East Japan Earthquake.
The Group supports educational programs for children in the communities where Toppan operationalsites are located.
The Group eagerly cooperates with and participates in community organizations.

Assistance for the Areas Distressed by theGreat East Japan Earthquake

Community Involvement and Development

The Tohoku-Pacific Ocean Earthquake of March 11, 2011
caused unparalleled damage to eastern Japan. The Toppan
Group promptly supported the people in the disaster-stricken
areas.
In addition to money contributions, the Group donatedmany thousands of school textbooks, picture books, sketchbooks, and puzzles to make up for shortages in affectedschools and towns. It also donated LCD TVs to the evacuation
centers for disaster victims established in Saitama Prefecture.
The Higashinihon Division of Toppan Printing Co., Ltd. in
Izumi Ward of Sendai, Miyagi Prefecture called upon likeminded employees to take part in volunteer activities such as
dirt removal and cleanup in Ishinomaki and surrounding areas
on weekends.
The Toppan Group will offer medium-and-long-term assistance for the distressed areas. Employees of the Group operate the Book Wagons, mobile libraries traveling around areas
with temporary housing for disaster victims. The employees
will also continue to collect in-house contributions, and the
management at these companies match the contributions withthe companies’ own funds.
Book Wagon: http://bookwagon.jp/ (in Japanese)

Volunteer activities in the areas distressed by
the Great East Japan Earthquake

Community Contribution and Involvement
 upporting Educational Programs for Elementary
S
School Students in Nagoya
The Chubu Division of Toppan Printing Co., Ltd. in Nagoya,
Aichi Prefecture produced learning materials for career education in collaboration with Nagoya City Hirata Elementary School
and a nonprofit organization called the Crossover Education
Network, “Everyone is a Hero.”This social contribution project is the fruit of the combined
enthusiasm of the NPO and Toppan employees, crystallizedwith various concepts on social contribution brainstormed byyoung employees.
To attain its purpose of cultivating human resources of the
future, these learning materials describe real-life working
scenes that enlighten children on job satisfaction and theimportance of hard work. Toppan first asked teachers about
the learning content they wished to convey to their classes,
then provided related information on products manufactured
at ­Toppan plants, detailed descriptions of jobs in sales, production, and other operations, and the mindsets and viewpoints of employees working in these operations.
In fiscal 2011, the Company will begin collaborating with
Nagoya City Ukino Elementary School in a project to offer
learning programs for students of all ages, from first grade tosixth.

Book Wagon

Learning materials for career education in colla­bo­ra­tion with Hirata Elementary School in Nagoya

Toppan Group Relief Activities for the Great East Japan Earthquake (excerpted)
All Group companies: Operate the Book Wagons, mobile libraries traveling aroundareas with temporary housing for disaster victims; have prepared and distributed
calendars in partnership with Japan Graphic Designers Association Inc.
Toppan Printing Co., Ltd.: Provides information delivery capacity to stores in thedisaster-stricken areas via the service of Shufoo!, an online mall for digital flyers.
Toyo Ink SC Holdings Co., Ltd.: Has made donations.
Tosho Printing Co., Ltd.: Has donated everyday commodities to the affected areas.
Tokyo Shoseki Co., Ltd.: Has replaced about 220,000 school textbooks lost in thedisaster.
Toppan Forms Co., Ltd.: Has donated proceeds from the sale of creative works.
Toppan TDK Label Co., Ltd.: Has produced “Ganbappe (hang in there), Fukushima!”
stickers as a rallying cheer for Fukushima Prefecture, where the company’s plant islocated.

30

TOPPAN CSR REPORT 2011

froebel-kan co., ltd.: Plans to donate 1% of the sales proceeds from the picture
books and storybooks it publishes and releases from April to December 2011.
Bitway Co., Ltd.: Has donated funds raised through Handy Comic, a mobile
phone website.
Mapion Co., Ltd.: Donates proceeds from the sale of charity avatars for a mobile
phone game, matched by funds from the company.
Institute of the Formative Art Co., Ltd.: Has distributed 2,000 sets of stationery topeople staying in evacuation centers and disaster-affected students (via Tohoku
Fukushi University).
Toppan Leefung Pte. Ltd. (overseas subsidiary): Has donated contributions from
employees matched in equal amounts with company funds.
See http://www.toppan.co.jp/oshirase/oshirase20110627.html (in Japanese)for further details on the relief activities.

 articipating in and Communicating with Community
P
Organizations
Toppan runs many offices and plants across Japan. All of themengage in residents’ associations and other community organizations in order to hold dialogues and sound out the needsof members of the communities.
In fiscal 2010, Toppan cosponsored local events at therequest of the communities, took part in local fire-response
squads, and provided meeting venues for the events held byresidents’ associations.

 ontributing to Communities at Overseas
C
Operational Sites
Toppan’s overseas operational sites in China, Thailand, theU.S., Australia, and other locations also support their communities. The operational site in Thailand gave scholarships
and stationery to elementary school students living in the vicinity of the industrial complex. An operational site in China contributed to local environmental improvement through seacoast
cleanup and afforestation projects in and around villages along
the mountains.

Work experience program (Kashiwa Plant)

Toppan Charity Concert

Work experience program (Shiga Plant)

Donation to a local elementary school (Siam
Toppan Packaging Co., Ltd. in Thailand)

Community Involvement and Development

Supporting Educational Programs and Job Hunting
Toppan organizes tours and internships at operational sites
across Japan to nurture human resources and provide work
experience opportunities to students.
In fiscal 2010, Toppan plants in Sendai, Niigata, Itabashi,
Fukuoka, and many other locations welcomed students fromelementary and other schools for plant tours. The Kashiwa
and Shiga Plants gave students the chance to actually experience work at the plants.
To foster awareness about work, the Toyama, Kumamoto,and Takino Plants offered internships and held plant tours forhigh school students about to enter the business world.

Helping Developing Nations Raise Literacy Rates
In fiscal 2010, Toppan sponsored the fourth series of Toppan
Charity Concerts, annual concerts to help raise literacy rates
across the world. On March 10 in 2011, violinist Rina Matsuda
gave a recital. Toppan brought in approximately one million
yen in donations for the Asia-Pacific Cultural Centre for
UNESCO (ACCU).
ACCU uses these funds for educational assistance toimprove the literacy of females, especially child-rearing mothers, in developing nations in Asia. Functional literacy helps
mothers better protect the health and safety of their families
and sets them on track to having their own children receive
literacy education.

Tree-planting program (Toppan Leefung Pte.
Ltd. in Hong Kong)

TOPPAN CSR REPORT 201131

Toppan’s Environmental Activities
PointsT oppan proactively promotes environmental initiatives based on The Toppan Group Declaration on the
Global Environment.
Toppan operates environmental activities in four areas: environmental management, Eco-protection,
Eco-creativity, and environmental communication.

Overview of Environmental Activities
Toppan established the Ecology Center in 1991 and promulgated Toppan’s Declaration on the Global Environment, a basic
philosophy for environmental conservation activities, in 1992.
Toppan has promoted environmental initiatives based on the
declaration ever since. In April 2009, the Company revised
Toppan’s Declaration on the Global Environment into The­Toppan Group Declaration on the Global Environment, a new
basic philosophy for environmental activities for the entire
Group. The revised declaration reflects Toppan’s desire to help
realize a sustainable society by taking a more assertive
approach to the conservation of the global environment. The
Company specifies environmental objectives for the realizationof the goals of the Declaration on the Global Environment.
Medium-and-long-term environmental targets are set for the

The Toppan Group Declarationon the Global Environment

163 consolidated subsidiaries

Established in April 1992
Revised in April 200920 domestic manufacturingsubsidiaries*1 within thescope of the Company’senvironmental targets
19 domestic subsidiaries*2
outside the scope of theCompany’s environmental targets

29 overseas subsidiaries*1 Manufacturing subsidiaries that shareimportant roles in the Company’senvironmental conservation are
included within the scope.
*2 The subsidiaries to be included within
the scope are selected based on theautonomy and independency of theirenvironmental activities.

28 affiliated companies

Basic Principles
1. We observe all laws, regulations and in-company rules relating to theenvironment.
2. For the future of the Earth, we strive for the effective utilization oflimited resources and the reduction of all types of environmental­burden.
3. W ith foresight, we promote the development and widespread use of
products that show consideration for the environment, and contribute to the environmental activities of customers.
4. We engage in communication related to the environment with a wide
range of peoples both inside and outside the company, and strive formutual understanding.
5. We also take a proactive approach to environmental conservation incorporate activities in international society.

Scope of Environmental Performance Data

Toppan Printing Co., Ltd. (“the Company”)

Environment

As responsible members of international society,we who work within the Toppan Group
strive to realize a sustainable society
through forward looking corporate activities with consideration
for the conservation of the global environment.

coming decade and concrete targets are set for each current
fiscal year based on individual environmental objectives. Thismethodical approach to goal setting enables Toppan to clarify
the activities to be taken and the criteria for assessing achievements (➞PP. 33–35 for the environmental targets).
Toppan’s environmental activities are divided into fourareas—environmental management, Eco-protection, Ecocreativity, and environmental communication. To intensify the
Eco-protection Activities, the Company enacted a set of fivebylaws: the Bylaw on Global Warming Mitigation, the Bylawon the Building of a Recycling-oriented Society, the Bylaw on
Chemical Substance Management, the Bylaw on Pollution
Control, and the Bylaw on Biodiversity. Toppan has taken steps
to conserve the global environment in each of four activity
areas based on the five bylaws.

192 Group entities in all
Scope

Environmental management activities
Activities for systematically managing environmental initiatives

Eco-protection Activities
Activities to minimize CO2, waste, chemical substances,and other environmental burdens associated withcorporate operations

Eco-creativity Activities
Activities to proactively promote the development,
assessment, and sales of environmentally friendly
products and technical services

Environmental communication activities
Activities for sharing environmental awarenesswith stakeholders

32

TOPPAN CSR REPORT 2011

PP. 33–35
Environmental targets: 21 companies ( , )P. 36	“Major Environmental Burdens by Business Field in Japan (INPUT/OUTPUT data):” 21 companies ( , )P. 37	“Ratio of Domestic and Overseas Environmental Burdens:”
69 companies ( – )			Domestic (within the scope of the environmental targets): 21
companies ( , )			Domestic (outside the scope of the environmental targets): 19
companies ( )			 Overseas: 29 companies ( )		“Environmental Impact and Environmental Efficiency:” 21 companies( , )		“Environmental Impacts by Business Field:” 21 companies ( , )PP. 40–42
All the charts: 21 companies ( , ), but;		“Improving Transport Efficiency in Logistics” on P. 40: Toppan Logistics Co., Ltd. only
P. 45	Total sales of the environment-related businesses: 8 companies( , Toppan Forms Co., Ltd., Toppan TDK Label Co., Ltd., Tamapoly
Co., Ltd., Tokyo Shoseki Co., Ltd., Tosho Printing Co., Ltd., Toppan
Cosmo, Inc., and froebel-kan co., ltd.)

Environmental Targets and Results (for the Medium-and-long-term and Fiscal 2010)
PointsToppan’s carbon dioxide (CO2) emissions per unit of sales increased by 11% compared to the fiscal 2000 level.
Toppan reduced final landfill waste disposal by 97% compared to the fiscal 2000 level.
Toppan reduced volatile organic compound (VOC) emissions into the atmosphere by 81% compared to the fiscal
2000 level.

Evaluating Achievement of the Mediumand-long-term Environmental Targets

trend in the portion of highly recyclable paper among the total
waste discharged, along with the lower recycling volume ofnon-industrial waste, the main waste discharged at Toppan
offices. The Company will continue to promote waste reduction
and recycling through the strict separation of waste.

As the medium-and-long-term environmental targets werescheduled to be achieved by fiscal 2010, Toppan evaluatedthe results for the last decade based on the results for fiscal
2010. The Company has achieved eight targets out of the 12
medium-and-long-term targets over the period from fiscal
2001 to fiscal 2010.
The Company has succeeded in recording an 81% reduction in VOC emissions into the atmosphere compared to thefiscal 2000 level, significantly surpassing the targeted reductionof 70% (➞P. 34).
Meanwhile, Toppan’s CO2 emissions per unit of sales havetaken an upward turn. The effects of energy-saving activities
have not been sufficient to offset the factors that push CO2emissions up.
In addition, Toppan has not attained three of the wasterelated targets set under the medium-and-long-term targets—for example, those that relate to the expansion of material recycling and the increase of the number of certified zero-emission
sites—though it has come closer to reaching the targets.
Progress in waste reduction was held back by the declining

Results

During the last fiscal year, Toppan undertook various activities
to achieve the 15 environmental targets set for fiscal 2010.
Nine of the targets were reached.
The Company has reduced final landfill waste disposal by
31% compared with fiscal 2009, substantially surpassing the
16% reduction targeted for the year.
Toppan has also established an in-house structure to conduct life cycle assessments (LCAs) and calculate carbon footprints (CFPs) in line with the growing expectations of society(➞P. 34).
Toppan’s CO2 emissions per unit of sales, meanwhile,increased by 0.1% compared with the previous year. The Company will institute every measure necessary to reduce CO2
emissions further into the future.

Evaluation

Environmental Targets for
Fiscal 2010

Results

Evaluation

For
Details

P. 40

Environment

Environmental Objectives and Mediumand-long-term Environmental Targets

Evaluating Achievement of theEnvironmental Targets for Fiscal 2010

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 the fiscal
2000 level)

Increased by 11%

B

Reduce by 1% compared to thefiscal 2009 level

Increased by 0.1%

B

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

Reduced by 24%

B

Reduce by 7% compared to thefiscal 2009 level

Reduced by 6%

B

Expand the material recycling of waste*1

The material recycling
rate decreased by
2 points comparedwith fiscal 2008; theexpansion target was
not achieved

B

Material recycling rate: 94%

92%

B

Reduce final landfill waste disposal*2 by
95%*3 by fiscal 2010 (compared to the fiscal
2000 level)

Reduced by 97%

S

Reduce by 16% compared to thefiscal 2009 level

Reduced by 31%

S

Efficiently use the industrial waste materials
generated in the manufacturing stage andhave all domestic sites certified as zeroemission sites*4 by fiscal 2010

51 sites out of
58 domestic sites

B

51 domestic sites

51 domestic sites

A

P. 41

*1 Established in fiscal 2007; calculation method revised in fiscal 2008
*2 Final landfill waste disposal: Direct landfill disposal + landfill disposal of residues from intermediate treatment*3 Target revised (because the medium-and-long-term target at the time, a 90% reduction compared with the fiscal 2000 level, was achieved in fiscal 2006)*4 Certified zero-emission site: Operational site with a recycling rate of 98% or over (subject to approval by the Ecology Center)
Evaluation criteria: S, Results achieved far surpass the targets; A, Targets achieved; B, Activities fully carried out, but targets unachieved;
C, Activities insufficient

TOPPAN CSR REPORT 201133

Environmental Objectives and Mediumand-long-term Environmental Targets

Results

Evaluation

Environmental Targets for
Fiscal 2010

Results

Evaluation

For
Details

3. Prevention of atmospheric pollution via VOC emission restraints
Reduce VOC emissions into the atmosphereby 70% by fiscal 2010 (compared to the fiscal Reduced by 81%
2000 level)

S

Reduce by 30% compared to
the fiscal 2009 level

Reduced by 35%

A

P. 42

Ascertain the handling amount ofchemical substances newly
designated under the PRTR law

IAscertained thehandling amountIComplied with therevisions of the “Acton Confirmation, etc.
of Release Amountsof Specific Chemical
Substances in theEnvironment andPromotion of
Improvements to theManagement
Thereof” and the “Acton the Evaluation ofChemical Substances and Regulation of
Their Manufacture,etc.” of Japan

A

P. 42

P. 45

4. Control of risks from chemicals

Reduce the handling of chemical substances
designated under the PRTR law*5, *6

Reduced by 20%
compared with fiscal
2006*7A

5. Environmental contribution via the development and marketing of eco products
Promote the sales of environmentally friendly
products

Total sales of registeredenvironmentally friendly
products increased by
271% compared withfiscal 2000

Environment

A

IReview the criteria for environmentally friendly products
IExamine designs for an LCIA*8
methodIConsidered new
criteria
IConducted product
LCAs

B

Reinforce efforts to develop, manufacture,
and assess environmentally friendly products

The total number ofregistered environmentally friendly products
increased by 140%
compared with fiscal
2000

A

IEstablish an in-house structure
for reporting Toppan’s “carbon
footprints (CFPs)”
IPromote conservation and thesustainable use of biodiversity

ITook measures tomeet the requirements for calculating
CFPs
IConducted traceability surveys on raw
materials used bypaper manufacturersA

6. P romotion of environmental­communication—*9—

Provide information throughexhibitions, lectures, and otherpresentations

Exhibited at TOKYOPACK 2010 and
Eco-Products 2010

A

P. 46

A

P. 38

P. 29
P. 44

7. Avoidance of environmental risk

Establish and observe appropriate in-housemanagement guidelines that embrace
regulatory controls

Built an audit systemA

Observe in-house management
guidelines at the Group production sites

Conducted internal
environmental audits toconfirm the observanceof the reference values
established under the
in-house management
guidelines

Reduce the risk of soil contamination

Monitored andremedied soil contamination

A

Monitor the operational sites,
including the vacant lots ofreconditioned sites

Investigated, inspected, and repaired buried
equipment

A

P. 43

Maintain adequate communication withstakeholders

Shifted from an
Environmental Reportto a CSR ReportA

Publish a CSR Report (in Japanese) in August; expand thenumber of operational sites thatissue Site Eco Reports to 38
domestic sites (30 reports in total)

Issued a CSR Report(in Japanese) in August;issued Site Eco Reports
at 37 domestic sites(29 reports in total)

B

P. 46

—

IConduct environmental
IConducted in April
education on a regular basis
and June(new employee and optional
training) and an as-needed basis
IConduct environmental
IConducted in
education via e-learning
October

A

P. 39

—

IConduct internal environmental
audits at overseas production
sites: Eastern Asia
IObserve local regulatory
standards and collect monthly
environment-related data

B

P. 39

8. Enhancement of environmental­education and the environmental
awareness of all employees

9. Upgrading of environmental­management systems at ouroverseas production sites——

Conducted internal
environ­mental audits
at seven sites in PRC*5 P RTR is an acronym for Pollutant Release and Transfer Register; chemical substances designated under the PRTR law refer to chemical substances designated under the “Act on Confirmation, etc. of Release Amounts of Specific Chemical Substances in the Environment and Promotion of Improvements to theManagement Thereof” of Japan.
*6 Established in fiscal 2007
*7 Based on formerly designated chemical substances*8 Life Cycle Impact Assessment (LCIA)*9 The mark “—” indicates that no medium-and-long-term target was set under the relevant environmental objective (only the target for fiscal 2010 was set).
Evaluation criteria: S, Results achieved far surpass the targets; A, Targets achieved; B, Activities fully carried out, but targets unachieved;
C, Activities insufficient

34

TOPPAN CSR REPORT 2011

New Medium-and-long-term Environmental Targets and Environmental Targets for Fiscal 2011
PointsT oppan has established medium-and-long-term environmental targets for fiscal 2020 on CO2 emissions,final landfill waste disposal, and VOC emissions into the atmosphere.
Toppan has shifted the CO2 emission target from a per-unit-of-sales basis to a total-emission basis.

Establishing Medium-and-long-term
Environmental Targets for Fiscal 2020

Establishing Environmental Targets for
Fiscal 2011

To move closer to the realization of the goals of The Toppan
Group Declaration on the Global Environment, Toppan has
established a new set of medium-and-long-term environmental targets for fiscal 2020 based on achievements under theformer medium-and-long-term targets (➞PP. 33–34). The
Company has set a total-emission target for mitigation of global warming and determined to boost efficiency in energy use.
In view of the current conditions facing society, Toppan
assumes that the mitigation of global warming is a material
issue for the global community.
Taking environmental impacts specific to the printing industry into account, Toppan has also set two new targets to promote the building of a recycling-oriented society and conservation of the atmospheric environment. These two targets are
specified as items in the voluntary action plan of the Japan
Federation of Printing Industries (JFPI).

Fiscal 2011 is the first year in Toppan’s journey to attain thegoals of the new medium-and-long-term targets. Toppan has
established 11 targets for the year, with three related to theabove-mentioned medium-and-long-term targets and eight
set under in-house environmental management rules andbylaws.
The focus for the Company in fiscal 2011 will be to prevent
environmental risk. Specifically, every operational site will seek
to preempt risk by reviewing how it sets its own control standards. Toppan will also go ahead with biodiversity conservation
initiatives for paper procurement and land use.

Medium-and-long-term Environmental Targets for Fiscal 2020

I Reduce CO2 emissions by 11% comparedto the fiscal 2008 level(751 kilotons ➞ 669 kilotons: –82 kilotons)

2. Action for building a recyclingoriented society(Target for fiscal 2020)

3. Conservation of the atmosphericenvironment (Target for fiscal 2020)

I Reduce final landfill waste disposal by 87%
compared to the fiscal 2008 level(1,584 tons ➞ 206 tons: –1,378 tons)

I Reduce VOC emissions into the­atmosphere by 70% compared to thefiscal 2008 level(7,326 tons ➞ 2,198 tons: –5,128 tons)

Environment

1. M
 itigation of global warming(Target for fiscal 2020)

Environmental Targets for Fiscal 2011
Environmental Targets

Management Indicators

Target Values

1. Mitigation of global warming
IReduce CO2 emissions

ICO2 emissions

2. Action for building a recycling-oriented society
IReduce final landfill waste disposal

IFinal landfill waste disposal

639 tons

3. Conservation of the atmospheric environment
IReduce VOC emissions into the atmosphere

IVOC emissions into the atmosphere5,500 tons

4. Waste reduction
IReduce waste generation per unit of production value
IImprove material recycling rate

IWaste generation per unit of production value
IMaterial recycling rate

5. Chemical substance management
6. Initiatives to conserve biodiversity
I Paper procurement; conservation at operational sites
7. Environmental contribution through productsID evelop and expand the sales of environmentally friendly
products

740 kilotons

0.656 tons/million yen
92.7%

IHandling amount of chemical substances designated under
the PRTR law

9,236 tons

IUsage rate of certified paper and recycled paper; land use
assessment
IOperational sites for biodiversity conservation

Continuous improvement

ISales of environmentally friendly products (Cartocan, etc.)

230 billion yen

One site

8. Facilitation of environmental communication
I Maintain adequate communication

IIssuance rate for Site Eco Reports

95%

9. Prevention of environmental risk
I Establish and observe new in-house control standards

IRate of establishment of new in-house control standards

100%

10. Enrichment of environmental education

IParticipation rate in e-learning-based programs

11. E
 nvironmental conservation at overseas production
sites

IEstablishment of in-house standards

100%
In-house standards to be
examined

TOPPAN CSR REPORT 201135

Toppan’s Environmental BurdenA s one step in reducing environmental burden, Toppan assesses the environmental impact of the Company’s overallbusiness activities.
Paper accounts for the greater portion of material input and total waste discharge at Toppan, while activities in theElectronics field account for the greater portion of water consumption and effluent discharge.

PointsMajor Environmental Burdens by Business Field in Japan (INPUT/OUTPUT data)

INPUT
Material Input

Total Energy Consumption

Total Water Consumption

Total PRTR Handling

Information & Networks
853,977 (58.9%)

Information & Networks
4,285 (25.8%)

Information & Networks
1,122 (8.1%)

Information & Networks
1,289 (14.9%)

Living Environment
551,988 (38.0%)

Living Environment
5,371 (32.4%)

Living Environment
1,876 (13.6%)

Living Environment
2,680 (30.9%)

Electronics
44,467 (3.1%)

Electronics
6,241 (37.6%)

Electronics
10,479 (75.8%)

Electronics
4,709 (54.2%)

Non-production sites
0 (0%)

Non-production sites692 (4.2%)

Non-production sites
347 (2.5%)

Non-production sites
3 (0%)

Total 1,450,432 (Unit: tons)

Total 16,589 (Unit: 1,000 GJ)

Environment

Information & Networks

Total 13,824 (Unit: 1,000 m3)

Living Environment

Total 8,681 (Unit: tons)

Electronics

OUTPUT
Total Waste Discharge

CO2 Emissions

Total Effluent Discharge

Total PRTR Release

Information & Networks
143,386 (51.6%)

Information & Networks
184,556 (25.5%)

Information & Networks
718 (5.8%)

Information & Networks
64 (16.1%)

Living Environment
100,156 (36.0%)

Living Environment
255,675 (35.4%)

Living Environment
1,342 (10.9%)

Living Environment
321 (80.5%)

Electronics
32,475 (11.7%)

Electronics
254,010 (35.2%)

Electronics
9,986 (81.0%)

Electronics
13 (3.3%)

Non-production sites
1,828 (0.7%)

Non-production sites
27,949 (3.9%)

Non-production sites
279 (2.3%)

Non-production sites
1 (0.1%)

Total 277,845 (Unit: tons)

Total 722,190 (Unit: t-CO2)

Total 12,325 (Unit: 1,000 m3)

Total 399 (Unit: tons)

I Paper used in Information & Networks and Living Environment accounts for 81% of material input and 74% of total waste discharge at the Company, while­water consumption and effluent discharge in Electronics account for 76% of total water consumption and 81% of total effluent discharge.
I “Waste” in this report includes industrial waste of no value and materials of value sold or transferred as resources, both generated from business activities.
I Total energy consumption, i.e., the quantity of electricity and fuels consumed, is about the same in each business field.
Note: Energy consumption associated with fuel consumption is calculated using the conversion factor specified in the year 2000 amendment of the Law­Concerning the Rational Use of Energy of Japan. The calorific value of the primary energy input associated with electricity consumption is calculated­uniformly as 0.00983 GJ/kWh. Some of the material inputs are calculated from estimated values based on production values.

36

TOPPAN CSR REPORT 2011

Environmental Burden and Environmental
ImpactRatio of Domestic and Overseas Environmental Burdens
Overseas 23%

Domestic(within the scope ofthe environmental targets)
63%

Environmental Impacts by Business Field

Domestic(within the scope ofthe environmental targets)
56%

EnergyCO2 Emissions

Domestic(outside the scope ofthe environmental targets)
12%

QEnvironmental impact*2
100

80
60
202

79.5

218
201

195
170

183

0

0
2006

2007

2008

2009

Other

GlobalwarmingGlobalwarming40%

Globalwarming

20%
Biologicalresources

Biologicalresources

Biologicalresources
Electronics

IIn Living Environment, the chart shows a significant impact from photochemical oxidants, pollutants formed by reactions between sunlight and
VOCs released into the atmosphere. This underlines the importance of­installing solvent treatment equipment.
IIn Electronics, the chart shows a high impact of energy consumption on
global warming. This underlines the importance of energy saving in clean
rooms and other facilities with high energy-loads.

245
220

206

40
20

85.3

60%

Other
Photochemical
oxidants

Information & Networks Living Environment

270
90.7

Other
80%

0%

Environmental efficiency*3
97.7

100%

Environmental impact

OUTPUT data

Environmental Impact and Environmental Efficiency
100

LIME*1 is a method for producing an environmental impact
index. Multiple factors with impacts on the environment, including resources (such as paper) and energies (such as electricity) input into operations and waste and VOCs output frommanufacturing, are weighted based on scientific and statisticalfindings, and integrated into a single index as an environmental impact.
To comprehend and reduce the integrated environmental
impact of its operations, Toppan regularly discloses the environmental impact of its business operations and its environmental efficiency (net sales per unit of environmental impact).
In fiscal 2010, the Company lowered its environmental impact
by 20% compared to the fiscal 2006 level. This reduction was
attained by the reduction of VOC emissions through the installation of solvent treatment equipment in the Living Environment
field and reduced energy consumption in the fields of Information & Networks and Electronics.

Overseas 32%

INPUT data

Domestic(outside the scope ofthe environmental targets)
14%

LIME for Assessing Environmental Impact

Environment

Every operational site at Toppan aggregates its environmental
burden via data on INPUT (materials and energy used) anddata on OUTPUT (materials discharged as a result of production), then assesses its impacts from various environmental
standpoints. Toppan establishes environmental targets andpriorities in activities based on the results of these assessments
and verifies the results of the environmental activities. Toppan
classifies its environmental burden data (on domestic Group
entities within the scope of the Company’s environmental targets) into the three business fields of Information & Networks,
Living Environment, and Electronics. The assessments of environmental burden by business field are shown on the opposite
page. Activities in Information & Networks and Living Environment account for 97% of material input at the Company. Paper
accounts for 81% of the material input and 74% of the total
waste discharge. Water consumption in Electronics, meanwhile, accounts for 76% of the total water consumption and
81% of the total effluent discharge, making up a significant
portion of the total.
The environmental burden associated with domestic activities is more significant than that associated with overseas
activities, as shown in the chart below. Henceforth, the ratioof Toppan’s overseas environmental burden is expected to riseas the Company accelerates its global operations. Toppan willcontinue to control environmental burden overseas as strictly
as it does in Japan.

2010 (Fiscal year)*1 L ife-cycle Impact assessment Method based on Endpoint modeling(LIME): A Japanese version of the damage-oriented environmental impact assessment method, developed based on the environmental background of Japan. Damages derived from impact categories are quantified
for each part of the environment to be protected (e.g., human health, biodiversity, etc.). Once the damages are quantified, the environmental impacts of multiple factors are integrated into a single index.
*2 The value in fiscal 2006 = 100 (baseline)*3 Net sales / environmental impact

TOPPAN CSR REPORT 201137

Environmental Management Activities
PointsT oppan operates an established environmental management system (EMS) at every operational site andcontinues to upgrade these systems.
Toppan conducted internal environmental audits at 57 domestic sites and seven overseas sites.

Structure to Promote Environmental
Management Activities
Toppan’s environmental management relies on the operationof established environmental management systems (EMSs)
based on the Company’s environmental management rules.
The Company continues to upgrade these systems by practicing the plan-do-check-act (PDCA) cycle. To ensure the effectiveness of the PDCA cycle, top management conducts ongoing environmental management reviews. The Ecology Center
regularly collects environmental performance data. Each timeit does, the Director in charge of the Center evaluates andverifies the data and reports the evaluation and verification
results to the Board of Directors and other management bodies. Improvements to the EMSs are proposed and implemented
throughout the entire C­ ompany.

Environment

 eatures of Toppan’s Environmental Management
F
Systems
Toppan’s EMSs are uniquely managed. The PDCA cycle isput into practice at every operational site, irrespective of theISO 14001 certification. Fifty-seven domestic sites have beenpressing ahead with their environmental activities to achieve
the targets set under the Eco-protection Activity Plan.
The Eco-protection Promotion Committees check the
progress of the activities every month to ensure that any newly

arising problems are resolved as quickly as possible.
Every operational site sends the Ecology Center reports on
major environmental performance data periodically. Resultson energy are sent monthly, for example, while those on waste
are sent every half-year. Toppan prepares an effective systemfor evaluating achievement of its environmental targets andreviewing the targets whenever necessary.

Environmental Audit System
Toppan’s environmental audit follows a three-stage screening
process: a management system audit by an ISO 14001 registrar, an internal audit by the Ecology Center, and anotherinternal audit at the individual site.
At the internal audits by the Ecology Center, internally certified environmental auditors and assistant auditors appointed
to oversee the environmental management system (EMS)
inspect and evaluate the status of the EMSs, compliance withenvironment-related laws, regulations, and in-house standards,
environmental impact on water and the atmosphere, and daily
control of energy and waste at all of the operational sites
audited. Every site audited prepares a Plan for the Improvement of Specified Issues (Improvement Plan) pointed out­during its audit and works to correct the deficiencies. At sites
where the Ecology Center deems it to be necessary, the­auditors conduct an additional Review of the Internal Environ-

Overview of Environmental Management

ActionPlan

Management review

IAscertain environmental factors
IIdentify legal requirements and otherrelevant requirements and determine
applicable procedures
IEstablish objects and targets andformulate a detailed implementation plan

IIssue instructions for evaluating andimproving the EMSs (task for top
management)

Environmental
Management

Check

38

IContinuous improvement via the
PDCA cycle

Do

Monitoring and measuring

Implementation and operation

IAssess compliance status
IConfirm nonconformity and takecorrective and preventive measures
IManage records
IConduct audits (system audit, internal
environmental audit by the Ecology
Center, internal environmental audits at
individual sites)

IDetermine resources, roles,
responsibilities, and authorities
ICultivate capacity, organize educationand training, and encourage awareness
IStimulate communication
IManage documents
IControl operations
IPrepare and respond to emergencies

TOPPAN CSR REPORT 2011

mental Audit to assess the progress towards the required
improvements.

Internal environmental audit interview

Toppan provides environmental education through comprehensive e-learning-based programs for all employees. It also organizes specialized training sessions for employees of every rank,
including new employees and newly appointed managers.
In fiscal 2010, the Company arranged e-learning programs
covering the impacts of environmental accidents and methodsof accident prevention.
Personnel from the Ecology Center lecture trainees in sessions of the optional courses at the Toppan Business School
held each year. Lecture topics include an introduction to­environment-related laws, an introduction to ISO 14001, andmethods to enhance the skills of internal ISO 14001 auditorspresented in a seminar form.
Meanwhile, the correspondence learning Challenge School
offers 14 courses related to the environment.
Toppan uses these education activities as opportunities toenhance the environmental knowledge and awareness of
employees, and maintain and improve the level of the Company’s environmental activities on a continuous basis.
Environment

Results of Fiscal 2010 Internal Audits
The internal environmental auditors identified 596 issues inneed of improvement at 57 domestic sites in fiscal 2010. To
correct the deficiencies pointed out, each operational site­follows an Improvement Plan with a detailed list of required
improvements and target dates for completion. Toppan has
confirmed the progress of improvement measures on 28 issues
at two operational sites through the Reviews of the Internal
Environmental Audit. The progress and effects of countermeasures against the remaining 568 specified issues are to
be reviewed during the internal environmental audits for fiscal
2011.
Onsite interviews and inspections are also carried out foroverseas production sites every other year, in principle.
Seven sites in China were reviewed for local environmental
audits in fiscal 2010. The audits identified 43 issues in needof improvement. The overseas production sites have followed
the example of the domestic sites by taking necessary procedures to achieve better operational conditions under improvement plans.

Environmental Education

Internal environmental audit inspection“Introduction to environment-related laws,” presented by Toppan personnel

Fiscal 2010 Results of Environmental Education
Education or Training

Number ofTrainees

New employee training: General environmental education (introductory level)

159

Training for newly appointed managers: General environmental education(intermediate level)

180

E-learning: Basic education on the environment
Toppan Business School

22,97634

Challenge School: 14 courses related to the environment

93

Internal environmental auditor training program

113

TOPPAN CSR REPORT 201139

Eco-protection ActivitiesT oppan defines its Eco-protection Activities as activities to minimize the environmental burden associated withcorporate operations.
Toppan undertakes initiatives aimed at mitigating global warming, building a recycling-oriented society, preventing
pollution, controlling chemical substances, and conserving biodiversity.

PointsMitigating Global Warming
In consideration of social conditions today, Toppan has shifted
its target on CO2 emission control from a per-unit-of-sales
basis to a total-emission basis in fiscal 2011. This target will
guide Toppan’s future efforts to reduce the emissions of CO2
and other greenhouse gases.

Environment

Developing Energy-saving Activities
Toppan extensively reviewed equipment operation in fiscal
2010, continuing initiatives adopted in the previous fiscal year.
Prominent adjustments were a suspension of unnecessary
air-conditioning, fans, and pumps, reductions in the numberof operated machines, and a review of preset baselines fortemperature, pressure, and other conditions. Despite these
efforts, CO2 emissions per unit of sales in fiscal 2010 increased
by 0.1% compared with fiscal 2009, missing the targeted
reduction of 1% for the year. (When rounded off, the fiscal
2010 result stands at 0.74 t-CO2/million yen, more or lessunchanged from fiscal 2009 [see the chart below]). Toppan
will reinforce its energy-saving activities to reliably accomplish
the targets.
In fiscal 2011, the Company will streamline equipment
operations to reduce loss and waste as a means of further
reducing CO2 emissions. Efforts will also be taken to replace

Energy Consumption(1,000 GJ) QEnergy consumption

Energy consumption (GJ/million yen)
per unit of sales
20

28,00021,00014,000

17.04

16.40

17,796

18,348

16.30

16.98

17.03

14.47

15
17,182

16,39016,58914,023

10

7,000

5

0

0
2000

2006

2007

2008

2009

2010 (Fiscal year)

CO2 Emissions(1,000 t-CO2) QCO2 emissions

CO2 emissions (t-CO2/million yen)
per unit of sales
1.00

1,500
0.75

1,200
0.67
900
600

785

0.72
805

650

0.71

0.74

0.74

715

722

0.60
751

0.40

300

0.20

0

0
2000

40

0.80

2006

2007

TOPPAN CSR REPORT 2011

2008

2009

2010 (Fiscal year)

existing air conditioners, refrigerating machines, boilers, andother machines with high-efficiency alternatives, and to installmore LED lights, light-blocking window films, heat-shield coatings, and equipment for renewable energy generation such as
solar panels.
Improving Transport Efficiency in Logistics
Toppan Logistics Co., Ltd., the logistics specialist for the­Toppan Group, is reducing the energy consumption per unitof transport volume by company vehicles and the volume of
CO2 emitted from these vehicles in a coordinated effort with
its shippers, Toppan Group companies.
Energy consumption per unit of transport volume in fiscal
2010 was 65.1 kL/million ton-kilometers, a 1.4% reduction
compared with fiscal 2009 (exceeding the targeted reductionof 1% for the year). CO2 emissions were 33,419 tons, or 0.04%
lower than the fiscal 2009 level. Key factors behind this success were the promotion of modal shifts, the reduced use of
air transportation, and enhancements in transportation efficiency by truck through adjustments of load capacities, numbers of shipments, and truck sizes. In fiscal 2011, Toppan
Logistics will improve transportation efficiency by further optimizing conditions.

Note: E nergy consumption associated with fuel consumption is calculatedusing the conversion factor specified in the year 2000 amendment of
the Act on the Rational Use of Energy of Japan. The energy consumption associated with electricity consumption, however, is calculated uniformly as 0.00983 GJ/kWh.
CO 2 emissions are calculated by the method specified in the
Guidelines for Calculating Greenhouse Gas Emissions from Businesses (2003) from the Ministry of the Environment (MOE) of Japan. The
CO2 emissions associated with electricity consumption, however, arecalculated uniformly as 0.378 t-CO2/MWh.
CO2 emissions in fiscal 2010 amounted to 725,612 t-CO2 whencalculated by another MOE method specified in the Ministerial Ordinance Concerning the Calculation of Greenhouse Gas Emissions
from Business Activities of Specified Dischargers (the latest amendment on March 31, 2010).

Building a Recycling-oriented Society
In an ongoing drive to use limited resources more effectively,
operational sites at Toppan have striven to reduce the discharge of waste and other types of environmental burden,press ahead with recycling, and conduct appropriate waste
treatment. As a result of these efforts, the Ecology Center ofthe head office has certified and registered 51 sites as “zeroemission sites*1” out of 58 domestic sites in total.
Reducing and Recycling Waste
Waste paper derived from operational sites primarily in the
Information & Networks and Living Environment fields makes
up the largest portion (74%) of the total waste discharged at

Recycling Rate and Material Recycling Rate*2(%)

Fiscal 2010 Results of Waste Discharge and Recycling

Recycling rate (recycling / total waste discharge)
Material recycling rate

100

98.8

99.3

Type of
Waste
Waste
paper
Waste
plastic

Waste
discharged(tons)

Ratio

Recycling
Rate

204,527

73.6%

99.8%

Recycled paper

Primary Reusage

26,619

9.6%

98.8%

Plastic materials,
RPF

Waste acid

13,940

5.0%

99.3%

Neutralizer

Waste oil

7,841

2.8%

99.1%

Recycled oil, fuelSludge

7,524

2.7%

97.9%

Roadbedmaterials

Total Waste Discharge and Final Landfill Waste Disposal

Waste alkali

6,639

2.4%

97.1%

Neutralizer(1,000 tons) QTotal waste discharge

Waste
metal
Wood
waste

5,346

1.9%

97.2%

Metal materials

2,269

0.8%

98.5%

Cinder

1,749

0.6%

76.1%

Other

691

0.3%

77.7%

—

Glass chip

567

0.2%

93.5%

Glass materials

Food waste

133

0.1%

99.0%

Feed

277,845100%

99.3%*4

—

96
94
92

93.0

92.4
91.5

92.9

0
2000

350 337.2 24.0

2006

330.9

2007

2008

2009

2010 (Fiscal year)

QFinal landfill waste disposal (1,000 tons)

333.6

25
313.8
281.5

280

277.8

20

210

15

140

10

70

5
2.0

1.8

0
2000

2006

2007

1.6

0.9

2008

2009

0.6

Environment

98.0

98

98.2

99.0

Toppan sites. This is followed by waste plastics from plants in
the Living Environment field and waste acids and alkalis suchas waste etchant from plants in the Electronics field. Toppan
has worked to increase the recycling rate for waste plastics
by separating refuse and processing composite plastic into
RPF*3 and to reduce the discharge of waste acids and alkalis
by applying internal chemical treatments.
The Company intends to reduce the discharge of nonindustrial waste through more intensified waste separation at
offices and other non-production sites. It also seeks to optimize
waste treatment by searching for new external recycling partners and sharing information via in-house systems.

Chip,paper materials
Roadbedmaterials

02010 (Fiscal year)

Total

Waste Discharge Per Unit of Production Value(tons/million yen)
1.0
0.879
0.751

0.8

0.696

0.719

0.709

2007

2008

2009

0.665

0.6
0.4

*1 Certified zero-emission site: Operational site with a recycling rate of 98%
or over (subject to approval by the Ecology Center)*2 M aterial recycling: Defined by Toppan as “the reuse of waste as raw­materials” (refers to recycling methods other than thermal recycling)*3 Refuse Paper & Plastic Fuel (RPF): Solid fuel primarily made from refuse
paper and plastic waste*4 Recycling rate versus total waste discharge at Toppan

0.2
0
2000

2006

2010 (Fiscal year)

TOPPAN CSR REPORT 201141

Preventing Pollution
Every Toppan site ascertains actual conditions by measuring
its environmental burden. The Eco-protection Promotion Committee at each site sets in-house control standards at levels
even more stringent than the regulatory standards require.
By complying with these standards, Toppan sites work vigorously to reduce environmental burden and prevent pollution
at the sites.

Environment

 reventing Atmospheric Pollution and ProtectingP
the Ozone Layer
To prevent atmospheric pollution, Toppan controls boilers andother equipment responsible for smoke and soot by switchingfuels and managing operations under appropriate combustion
conditions. In fiscal 2010, the Company installed VOC effluentgas treatment equipment at facilities subject to the requirements stipulated under the Air Pollution Control Law of Japan.
As a result, VOC emissions into the atmosphere in fiscal 2010
were reduced by 35% compared with fiscal 2009. The Company will continue to thoroughly control atmospheric pollutantsin the coming years.
For ozone-layer protection, all equipment that uses specified chlorofluorocarbons at Toppan plants is controlled in conformance with the applicable laws and regulations.

VOC and Toluene Emissions into the
Atmosphere*1
VOCs(tons)

ToluenePreventing Water and Soil Pollution
To prevent water pollution, Toppan has installed wastewater
treatment facilities designed to cope with specific conditionsof water consumption and pollutants at individual plants.
Wastewater recycling systems have been introduced at plants
in the Electronics field that discharge effluents in significant
amounts. By recovering and reusing wastewater via thesesystems, the plants have been reducing the levels of water
consumption and effluent discharge.
For the prevention of soil pollution, Toppan has surroundedstorage facilities for chemical solvents with barriers to halt theleakage and outflow of fluids. The Company also regularly
inspects tanks, pipes, and other relevant equipment to prevent
soil pollution from fluid leakage.

Controlling Chemical Substances
Under the revised Pollutant Release and Transfer Register(PRTR) law of Japan enforced from 2009, the number of designated chemical substances to be reported increased from
354 to 462. In its calculation of the fiscal 2010 results, Toppan
quantified the data of chemical substances designated under
the revised law. The figure for fiscal 2010 in the chart below
shows a year-on-year reduction in the total release of the formerly designated chemical substances into the atmosphere
and water and soil environments. Toppan will pursue consistent reductions in the release of chemical substances designated under the PRTR law in the years to come.

NOx and SOx*2 Emissions*3(tons)

Chemical Substances Designated under
the PRTR Law (Formerly DesignatedChemical Substances)*4, *6

NOx

SOx

250

24,00020,549200

18,000Total
release

6,893

208

6,035

6,000

174
150

5,547

5,479

143

12,000

1,000
6,159

0
2000

7,326

100

8,140
5,320

362

412

377

2008

2009

2010
(Fiscal year)

Total handling (tons)

8,681

Total transfer (tons)

3,119

Total release (tons)

399

TOPPAN CSR REPORT 2011

50

726
44

748

678

633

408

463

395

2008

2009

2010
(Fiscal year)

500
32

31

31

0

Fiscal 2010 Results of Chemical
Substances Designated under the
PRTR Law (Currently DesignatedChemical Substances)*5, *6

42

Total
transfer

8,000

150

6,000

Total
handling(tons)

526
0

2007

2008

2009

2010
(Fiscal year)2007*1 Emissions into the atmosphere are calculated in conformance with the standards established by theJapan Federation of Printing Industries (JFPI) and the Japan Electronics and Information Technology
Industries Association (JEITA).
*2 NOx: Nitrogen oxides; SOx: Sulfur oxides*3 Calculated based on the Environmental Reporting Guidelines (fiscal year 2007 version) and the Environmental Activities Evaluation Program (April 2002) issued by the Ministry of the Environment of Japan.
*4 Calculated based on data on the handling, release, and transfer of chemical substances formerly
designated under the PRTR law at each operational site (fiscal 2010 results are reference values).
*5 Calculated based on data on chemical substances designated under the revised PRTR law at each
operational site.
*6 Dioxins are excluded because of a difference in the counting unit.

Approach to Environmental Compliance
Compliance with Regulatory Standards in Fiscal 2010
Four production sites in Japan recorded odor levels exceeding
the regulatory standards set under the Offensive Odor Control
Law. Seven production sites, meanwhile, recorded excessive
water temperatures or excessive levels of BOD, n-hexane
extractable material, and suspended solids relative to theregulatory standards set for water contaminants under the
Water Pollution Control Law and Sewerage Law. Toppan
immediately took corrective measures for every case, including steps to revise the control methods for equipment. After
implementing these corrective measures, the Company
reviewed control procedures and took necessary actions toensure that recurrences are reliably prevented.
Regarding the pollution of soil and groundwater environments, Toppan has taken the countermeasures shown in thetable below and has continuously monitored groundwater
since the measures were completed.

Emergency Responses
At every production site, chemical solvents are conveyed into
the premises in tank trucks and transferred to storage tanks
on a daily basis. Leakage accidents during the operations pose
the risk of soil and water pollution.
Toppan has therefore prepared oil absorbents, sandbags,
and other necessary safeguards to prevent the outflow of solvents in the event of an emergency or accident during production operations. Emergency-preparedness drills have also been
held regularly. The Company formulates procedures to prevent
environmental pollution during emergencies. The effectivenessof the procedures is verified during the drills and defective
points are corrected.

Purification of Soil and Groundwater Pollution
Operational Site

DetailProgress in Fiscal 2010

Asaka Plant(Niiza City, Saitama)

Groundwater pollution by VOCs
(Voluntary investigation of well water Continuously monitored
on the plant premises)

Toppan Electronics, Inc.
(TEI) Miramar Plant(San Diego County,
California, USA)

Soil pollution by heavy metals(lead, etc.) and VOCs

Remediation work completed

Itabashi Plant(Itabashi Ward, Tokyo)

Groundwater pollution by hexavalent chromium and toluene

Groundwater pumped and purified;continuously monitored

Emergency-preparedness drill to cope with ahypothetical leakage scenario

Environment

Communication with Surrounding Communities
Communities around Toppan’s plants filed nine complaints andinquiries at seven domestic sites in fiscal 2010, indicating thatmany stakeholders were inconvenienced. The complaints
mainly had to do with noise and foul odors. While most of thenoise-related problems were promptly solved, the Company
has had to continuously implement measures for the remediation of odor-related problems at two operational sites.

To mitigate noise, Toppan has suspended the use of facilities and equipment responsible for noise and reviewed checklists for preventing equipment malfunctions. To mitigate odors,
the Company has reviewed methods for operating and controlling effluent-gas treatment equipment and deodorizing equipment, and has properly managed the routine operation of thesame. The Company has also stepped up comprehensive
routine inspections and other measures to prevent the recurrence of odor- and noise-related problems.
Toppan will continue to engage in environmental management through dedicated communications with residents insurrounding communities.

Soil Pollution at Kansai Divisionin Ebie
In advance of groundbreaking, Toppan Printing
Co., Ltd. conducted a soil investigation
required by applicable laws and regulations
at the site where it plans to construct the Ebie
Plant (tentative name) in Osaka. The Company
detected hexavalent chromium and lead atlevels in excess of the regulatory standards in apart of the surface-layer ground. The relevant
local authority received Toppan’s report on thedata in October 2010.
After due consultation with the regulating
authority, Toppan went on to investigate
groundwater contamination and to measure thedepth and horizontal distribution of soil pollution.
The additional investigations verified the absenceof groundwater contamination and precisely
quantified the extent of soil pollution. Before
beginning construction, Toppan excavatedand removed contaminated soil and took
other antipollution measures according to thecountermeasure plan submitted to the authority.

Inspection of effluent-gas treatment equipment

TOPPAN CSR REPORT 201143

Promoting the Conservation of Biodiversity
Verifying the Legality of Paper Materials
To consider biodiversity in paper procurement, Toppan uses
paper made with lumber derived from responsibly managed
forests. In fiscal 2010, the Company carried out traceability
surveys for 60 paper manufacturers around the world on theuse of wood chip and pulp as raw materials for paper. Thesesurveys proved the legality of the paper materials. Toppan willconduct the same surveys every year and strive to enhance
the accuracy of traceability further.

Environment

Expanding Forest-certified Fields
Toppan has engaged in green purchasing and green procurement via various approaches, including the use of paper types
produced by sustainability-conscious processes, such as recycled paper, forest-certified paper, and paper made with pulp
from forest-thinning operations. Regarding the forest management certification scheme in particular, Toppan became thefirst company in Japan to acquire the Forest StewardshipCouncil (FSC™) Chain of Custody (COC*) certification in thefield of commercial printing (certified in May 2002). Morerecently, Toppan acquired FSC COC certifications in securities
printing, publications printing, and décor materials, as well. In
March 2011, the Sagamihara Plant acquired COC certificationsin the field of containers and packaging from the FSC and theProgramme for the Endorsement of Forest Certification
Schemes (PEFC*). The Company will endeavor to expand thesales of printed materials using these types of certified paper.

 ctively Utilizing Lumber Harvested fromA
Forest-thinning Operations
Toppan encourages the conservation of forests in Japan by
actively utilizing lumber harvested from forest-thinning operations. Thinning is a process to keep spaces between trees byclearing out poorly grown trees. The ecological benefits of thethinning operation help to nurture sound forests and conserve
biodiversity.
Cartocan, Toppan’s paper-based beverage container, is
produced from pulp using more than 30% domestic lumber,including lumber harvested from forest-tinning operations.
­Toppan is authorized to display the forest-thinning productlogo on its Cartocan and has been contributing to the soundmaintenance of forest resources in Japan.
Since 2007, the Takino Plant has endorsed a pallet project
operated by FoE Japan, an international environmental NGO.
Many of the pallets used at the plant are made with lumber
harvested from forest-thinning operations.
Promoting Pro-Green Activities
Since fiscal 2008, Toppan operational sites across Japan havepromoted Pro-Green Activities, a series of solutions andimprovements in response to environmental challenges, as ameans of augmenting improvements throughout the Company.
Initiatives have been launched in fiscal 2011 to promote activities for the consideration of biodiversity as a common goal forall of the operational sites, including activities to encouragebiodiversity consciousness in land use.

Joining in a Hands-on Satoyama Event
Toppan employees and their families took partin an event called the “Exciting Projects for Kids:
Spring potato harvest and work & play withbamboo in Miwa satoyama*” in Kanagawa Prefecture, Japan. Participants enjoyed close contact with nature under the guidance of the event
host, the Environmental NPO “SHU,” a specified
nonprofit corporation. The event enhanced
awareness of the great significance of nature.

*Satoyama: A richly biodiverse habitat within alandscape carefully managed by humans formixed uses such as forestry, rice paddles, reservoirs, grasslands, and so on.

CartocanForest StewardshipCouncil™ (FSC)
forest management
certification
A scheme for approving
responsible forest management under the principles
and standards establishedby the FSC™.

Logo for forest-thinning
products
A logo designated by the
National Federation of Cooperative Associations for Forest
Owners under the guidance of
the Forest Agency and Ministry of Agriculture, Forestry and
Fisheries in Japan. The logo is displayed on products developed with the sundry aims of spreadingawareness and wider proliferation of forest-thinning
operations, promoting the use of lumber harvested
from forest-thinning operations, and offering consumers a wider choice of eco-options.

Programme for theEndorsement of Forest
Certification Schemes(PEFC) forest certification
A forest certification scheme
covering the world’s largest
certified forest area, managed by the PEFC council(international headquarters
based in Switzerland).

*Chain of Custody (COC) certification: A scheme for approving comprehensive product management toeffectively prevent the admixture of pulpwood from responsibly managed forests with pulpwood from noncontrolled sources during any part of the production process from manufacturing to distribution.

44

TOPPAN CSR REPORT 2011

Eco-creativity Activities
PointsT oppan has registered a total of 103 environmentally friendly products.
Toppan has assessed the environmental impact of products based on LIME.

Developing and Certifying Environmentally
Friendly Products
Toppan develops eco-friendly products in accordance with
Toppan’s 14 Environmental Points based on ISO 14021 andeach division’s own set of criteria. Newly developed products
meeting the criteria are certified and registered as “environmentally friendly products.” Three products were registered infiscal 2010, bringing the total up to 103 as of the end of March
2011. Toppan will press on with environmental conservation
activities through the development and sales of environmentallyfriendly products.

Environment-related Businesses at Group
Companies

Toppan’s 14 Environmental Points andEnvironmental Considerations
ISO 14021 Environmental
Labeling Type II

Production
anddistribution

Recycling rate

Toppan’s 14 Environmental
Points for Environmentally
Friendly Products
1. Use of safe materials

Resource reduction

2. Use of recycled materials
3. Resource-saving
4. Reduced energy­consumption in production

Use

Recovered energy

5. Use of recovered energy

Reduced solid waste

6. Reduced solid waste

Energy-saving

7. Energy-saving
8. Reduced release ofchemical substances

After use

Long-life products

9. Long product life

Reusable/refillable

10. Reusability

Recyclable

11. Recyclability
12. Suitability for disposal

Easy detachment design

13. Easy separation anddisassembly

Degradability

14. Biodegradability

LCA of Cartocan based on LIME
100%
Environmental impact

Life Cycle
Stage

From fiscal 2008, Toppan has been making environmental
impact assessments based on LIME*1 under the guidance of
Mr. Norihiro Itsubo, Associate Professor of Tokyo City University. LIME quantitatively assesses the environmental impact
associated with activities for producing individual products.
The Company aims to formulate a model in which a comprehensive environmental impact assessment of production
activities (➞P. 37) and a life cycle assessment*2 (LCA) of products can be made.
In fiscal 2010, Toppan assessed two of its environmentallyfriendly products: Cartocan, a paper-based beverage containerand KAMICARD, a paper-based IC card. The assessment ofCartocan indicated that lumber, a raw material of paper,
accounted for the larger portion of the environmental impactof the product and that the use of lumber harvested fromforest-thinning operations reduced the impact by about 20%
versus the impact in the case of no use (shown in the chart
below).
In fiscal 2011, the Company will expand the scope ofassessment to cover containers, packages, publications, andcommercial printed materials in order to establish a methodby which to quantitatively assess the environmental impact ofToppan’s environmentally friendly products.

Environment

The companies of the Toppan Group, like Toppan itself, haveforged ahead with corporate activities geared to conserving
the global environment. Each company develops, produces,and markets eco-friendly products in line with its own Ecoproduct Standards formulated in consideration of products,
services, and social demands. The total sales of products
satisfying the criteria of individual Group companies and­Toppan itself in environment-related businesses stood at 239.4
billion yen in fiscal 2010.

Life Cycle Assessment of Products

80%
60%

LumberLumber40%
20%
0%

Other than lumber(CO2, etc.)

Other than lumber(CO2, etc.)

In the case of no-use oflumber harvested fromforest-thinning operations(Assuming 100%use of natural wood)

In the case of 30%
use of domestic lumber,including lumber harvested
from forest-thinning
operations in Japan*1 LIME: See P. 37 for details.
*2 Life Cycle Assessment (LCA): An assessment method for quantifying­resources input to a product and emissions and discharges associatedwith the product, at all stages of the product life cycle, from raw material
procurement through to manufacturing, distribution, use, disposal, andrecycling.

TOPPAN CSR REPORT 201145

Environmental Communication Activities
PointsToppan sites in Japan issue Site Eco Reports to facilitate communication with stakeholders.
Toppan presented its eco-friendly products at Tokyo International Packaging Exhibition 2010 (TOKYO PACK 2010)and Eco-Products 2010.
T he Higashinihon Division received an Outstanding Energy-Efficient Factory Award 2010 from the Director General of
the Tohoku Bureau of Economy, Trade and Industry of Japan.

Communication outside the Company
Issuing Site Eco Reports
Toppan’s ISO 14001-certified sites in Japan have been issuing
Site Eco Reports to disclose environmental burden data andthe details of their environmental activities since fiscal 2000.
As periodic communications directed towards local municipalities and residents in surrounding communities, 29 reports
from 37 sites were issued in fiscal 2010.
Meeting Residents to Report Environmental Activities
The Kawaguchi Plant invites residents from surrounding communities every year to brief them on its environmental efforts
and take them on plant tours.
In a meeting held to report its environmental activities inAugust 2010, the plant passed out copies of the Site Eco
Report to participant residents and presented products manufactured at the plant and examples of environmental efforts,
including works to install environment-oriented equipment. The
plant intends to foster dedicated communication with residents
from surrounding communities by continuing these activities
in the years ahead.
Environment

46

Site Eco Reports (in Japanese)

TOKYO PACK 2010

Meeting to report environmental activities

Eco-Products 2010

TOPPAN CSR REPORT 2011

Presenting at Various Exhibitions
In fiscal 2010, Toppan exhibited at TOKYO PACK 2010 heldat Tokyo Big Sight. At Eco-Products 2010, the Company presented eco-friendly products in an exhibit entitled “Tuning into
the voice of society—eco-Monozukuri at Toppan.”
Major Environment-related Awards
The Higashinihon Division of Toppan Printing Co., Ltd. received
an Outstanding Energy-Efficient Factory Award 2010 from the
Director General of the Tohoku Bureau of Economy, Trade andIndustry of Japan. The award was conferred in recognition of
the division’s various energy-saving activities, including, prominently, the application of inverter control for air-conditioner
fans and fuel saving through the installation of heat exchangers for the exhaust air of drying devices.
As an outstanding role model for energy-saving management in a factory setting, the division will intensify its energysaving efforts by focusing on efficiency improvements forequipment with high power loads, applying outstanding
energy-saving measures throughout the division, reducing
energy consumption per unit of production value through­productivity enhancements, and undertaking various othermeasures.

Commendation ceremony for the Award fromthe Director General of the Tohoku Bureau of
Economy, Trade and Industry of Japan

Independent Assurance
The conclusions of our assurance engagement are stated in
our Independent Assurance Report. The following summarizes
improvements from the previous year and recommendations
for further improvements, as identified in the course of our
assurance procedures.
Toppan has downsized its CSR report by about 30 pages
from last year’s edition, mainly by posting detailed supplementary data on its website. By rearranging the report to align withthe seven core subjects addressed in ISO 26000, we believe
the Company has enhanced the readability of the report without sacrificing the quantity of data or level of conformance with
the Global Reporting Initiative (GRI) Sustainability Reporting
Guidelines.
Reliability of the data disclosed in the report was also
improved through various developments, most notably, thestrengthened head office control over environmental performance data from overseas subsidiaries.
There are still limits, however, in the disclosure of environmental and personnel indicators. These data generally cover
only Toppan Printing Co., Ltd. and several domestic subsidiaries. Now that the Company has developed business operations
globally, it seems that we can no longer overlook its overseas
subsidiaries. We assume that henceforth, stakeholders andsociety at large will increasingly require Toppan to disclose
performance data covering all domestic and overseas consolidated subsidiaries, along with the Company itself.

KPMG AZSA Sustainability Co., Ltd.
(KPMG AZSA & Co. group)

Shinichiro Akasaka

Indicators in this Report Assured by an Independent Assurance Provider
Pages
17

Human Rights

18
19

Labor Practices

20
21
22
23

Fair Operating Practices

24
26

Consumer Issues

33

Environmental Targets and Results (forthe Medium-and-long-term and Fiscal
2010)

34
36
37
39

Toppan’s Environmental Burden

Number of internal environmental audits conducted; Fiscal 2010 Results of Environmental Education

Eco-protection Activities

Energy Consumption; CO2 Emissions; energy consumption per unit of transport volume and CO2 emissions in logistics
Recycling Rate and Material Recycling Rate; Total Waste Discharge and Final Landfill Waste Disposal; Waste Discharge
Per Unit of Production Value; Fiscal 2010 Results of Waste Discharge and Recycling; total number of registered zeroemission sites
VOC and Toluene Emissions into the Atmosphere; NOx and SOx Emissions; Chemical Substances Designated under the
PRTR Law (Formerly Designated Chemical Substances); Fiscal 2010 Results of Chemical Substances Designated under
the PRTR Law (Currently Designated Chemical Substances)
Compliance with Regulatory Standards in Fiscal 2010; number of complaints and inquiries from communities aroundToppan’s plants; Purification of Soil and Groundwater Pollution
Number of companies subject to Toppan’s traceability surveys

Eco-creativity Activities

Number of newly registered environmentally friendly products; total sales of environment-related businesses

41

43
44
45

Ratio of Domestic and Overseas Environmental Burdens; Environmental Impact and Environmental Efficiency

Environmental Management Activities

40

42

Indicators Assured by an Independent Assurance Provider
Number of Recruits; Female Managerial and Supervisory Staff; Employment of Persons with Disabilities
Number of Employees; Reasons for Leaving; Average Annual Salary; Annual Paid Leave Used; Employees Taking
Maternity or Childcare Leave
Rate of decrease in the average hours of overtime worked (in fiscal 2007, fiscal 2010); number of employees who haveresigned from the Company and registered to join the rehiring system for employees who resign from the Company forthe delivery and upbringing of children
Occupational Safety and Health
Number of employees who participated in rank-based training sessions; number of employees who participated in the
Toppan Business School; number of employees who participated in the globalization-training course
Number of Conduct Guidelines Promotion Leaders; ratio of female Leaders
Number of employees who participated in the specialist training series for Conduct Guidelines Promotion Leaders;
number of employees who participated in the e-learning-based education program on compliance with the Subcontract
Law of Japan
Number of companies that submitted memorandums of cooperation and reported the current status of their CSR
activities in questionnaires, in cooperation with the Toppan Group’s CSR procurement initiatives
Number of employees who participated in training sessions for internal auditors; results of the audits conducted using
a quality audit checklist
Results of the progress towards the medium-and-long-term environmental targets for fiscal 2010; results of the progress
towards the environmental targets for fiscal 2010
*Only the numerical results are assured.
Major Environmental Burdens by Business Field in Japan (INPUT/OUTPUT data)

Some data in the CSR Report 2011: Detailed Data (on the Toppan website) are also assured by the assurance provider.

Level of Conformance with the GRI Sustainability Reporting Guidelines 2006

OUTPUT

G3 Performance
Indicators & Sector
Supplement
Performance Indicators

OUTPUT

Not Required
G3 Management
Approach
Disclosures

C+

Report on a minimumof 10 Performance
Indicators, including
at least one from eachof: social, economic,
and environment.

B

B+

A

A+

Same as requirementfor Level B

Report on all criteria
listed for Level C plus:
1.2
3.9, 3.13
4.5-4.13, 4.16-4.17
Management
Approach Disclosuresfor each Indicator
Category
Report on a minimum of
20 Performance
Indicators, at least one
from each of: economic,
environment, humanrights, labor, society,product responsibility.

Management
Approach disclosed
for each Indicator
Category
Report on each coreG3 and Sector
Supplement*
indicator with due
regard to themateriality Principle
by either: a) reportingon the indicator or b)
explaining the reason
for its omission.

Report Externally Assured

C
Report on:
1.1
2.1-2.10
3.1-3.8, 3.10-3.12
4.1-4.4, 4.14-4.15

Report Externally Assured

OUTPUT

G3 Profile
Disclosures

Standard Disclosures*Please access http://www.toppan.co.jp/
english/csr/ for the GRI content index.

Report Application Level

Report Externally Assured

This report is at an application level B+ as
defined by the GRI Sustainability Reporting
Guidelines 2006 (G3 Guidelines).

*Sector supplement in final version

TOPPAN CSR REPORT 201147

Independent Assurance Report

48

TOPPAN CSR REPORT 2011

Group Business Structure

Customers
Toppan Group Structure
Manufacturing Companies

Toppan Graphic Communications
Co., Ltd.
8 other companies
Toppan Forms Tokai Co., Ltd.
11 other companies
T.F. Company, Ltd. (PRC)
8 other companies*Data Products Toppan Forms Ltd.
(Thailand)
9 other companies

Manufacturing and Sales
Companies
Toppan Forms Co., Ltd.
Tosho Printing Co., Ltd.
3 other companies
Toppan Printing Co. (America), Inc.
(USA)
Toppan Printing Co., (H.K.) Ltd.
(PRC)
Toppan Printing Co., (Shenzhen)Ltd. (PRC)
11 other companies*Toppan Leefung Changcheng
Printing (Beijing) Co., Ltd. (PRC)
2 other companies

Manufacturing Companies
Living Environment 24%

Toppan Packaging Products
Co., Ltd.

Manufacturing and Sales
Companies
Toppan TDK Label Co., Ltd.

Toppan Plastic Co., Ltd.

Toppan Containers Co., Ltd.

Toppan Packs Co., Ltd.
8 other companies

Tamapoly Co., Ltd.

Toppan Yau Yue Paper Products
Ltd. (PRC)
2 other companies

Toppan Prosprint Co., Ltd.
1 other company*Toyo Ink Mfg. Co., Ltd.
(Currently Toyo Ink SC Holdings
Co., Ltd.)
3 other companies
P.T. Toppan Printing Indonesia(Indonesia)
Toppan Interamerica Inc. (USA)
7 other companies

Manufacturing Companies
Toppan Electronics Products
Co., Ltd.

Electronics 18%

Toppan Seimitsu Kako Co., Ltd.
6 other companies

Manufacturing and Sales
Companies
NEC Toppan Circuit Solutions, Inc.

Sales Companies
froebel-kan co., ltd.
Total Media Development InstituteCo., Ltd.
Toppan Travel Service Corp.
Toppan System Solutions Co., Ltd.
Tokyo Shoseki Co., Ltd.
26 other companies

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

Information & Networks 58%

Toppan Communication Products
Co., Ltd.

*Toppan M&I Co., Ltd.
8 other companies
Toppan Leefung Pte. Ltd.
(Singapore)
28 other companies

Sales Companies
Toppan Cosmo, Inc.

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

Toppan CFI (Taiwan) Co., Ltd.
Toppan Photomasks, Inc. (USA)
9 other companies*Advanced Mask Technology
Center GmbH & Co. KG(Germany)
1 other company

Products
Materials
Service

Notes:
INo symbol: subsidiary—163 companies *: affiliates—28 companies (as of the end of March 2011)
IToppan Group’s business activities are usually divided into five fields. Here, however, they are divided into three fields based on the current sizes of the­businesses and other factors.
IThe composition ratios given under each business field are percentages of overall sales contributed. (“Net Sales by Business Field” are shown on P. 5.)
IToppan Forms Co., Ltd., Tosho Printing Co., Ltd., and Toyo Ink Mfg. Co., Ltd. (currently Toyo Ink SC Holdings Co., Ltd.) are listed on the first section of the­Tokyo Stock Exchange.
IToppan operational sites span 15 countries and regions, including Japan.

TOPPAN CSR REPORT 201149

CSR REPORT 2011

As a member of GPN, we incorporate
Green Purchasing in our printing services.

This report incorporates eye-friendly displays as a consideration
for as many different types of people as possible, regardless of
individual differences in color perception. Monitors from the Color
Universal Design Organization (CUDO), a nonprofit organization,
have reviewed and certified this report for its universal design.

http://www.toppan.co.jp/english/© TOPPAN 2011.12 K I Printed in Japan