CSR REPORT 2017

Report on Corporate Social Responsibility Activities

Continuously contributing
to fulfilling lifestyles
as a mainstay of
information and culture
All of us within the Toppan Groupwill recognize the issues facing society andwork with stakeholders to find solutions.

United Nations Global Compact
The United Nations Global Compact is a voluntarypolicy initiative through which businesses andorganizations enlist their participation in the establishment of a globally recognized practical framework under which every business and organizationcommits to the vision of sustainable developmentby implementing responsible, creative leadershipinitiatives and acting as a responsible member ofsociety. Toppan participates in the United Nations
Global Compact, supports its 10 principles in thefour areas of human rights, labour, environment,
and anti-corruption, and implements those principles in its own corporate activities.
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 and­occupation.
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.

CSR Report 2017
The Toppan Group considers stakeholders’ interests and reports its­corporate social responsibility (CSR) activities in line with the seven core
subjects set under the International Organization for Standardization(ISO) 26000 standard, a globally recognized set of guidelines on social
responsibility.
IP eriod Covered: This report mainly covers activities in fiscal 2016 (from
April 2016 to March 2017), though information on prior and later years
is also included in parts.
IS cope and Boundary: Toppan Printing Co., Ltd. and its Group entities
consolidated for accounting purposes. The information on personnel
principally applies to personnel within Toppan Printing Co., Ltd., the­parent company. The environmental performance data covers Toppan
Printing Co., Ltd. and 15 manufacturing subsidiaries in Japan.
IP ublication Dates (English version)
Previous report: November 2016
Current report: December 2017
Next report: November 2018 (planned)IR elated Information
CSR information: http://www.toppan.co.jp/english/csr.html*Including Toppan CSR Report 2017: Detailed Data
IR information: http://www.toppan.co.jp/english/ir.html
IG uidelines
This report was edited according to the Environmental Reporting
Guidelines (fiscal year 2012 version) issued by the Ministry of the­­Environment of Japan. The report also presents information in line with
General Standard Disclosures required by the Global Reporting Initiative(GRI) G4 Sustainability Reporting Guidelines.
IC ontact Information
CSR Promotion Department, Public Relations Division
Toppan Printing Co., Ltd. (Tokyo, Japan)
Email: csr@toppan.co.jp

CONTENTS

SpecialReport1

Group Business Outline 

02

Executive Message 

04

Toppan’s Corporate Social Responsibility Activities:
Digest 2016 

06

Special Report 1 08

Boosting the Spread of
Sustainable Packaging

P.

08

Boosting the Spread of Sustainable Packaging
Special Report 2 

12Supporting Reconstruction in Kumamoto with
Cutting-edge Technologies that Preserve Cultural Heritage
for Future Generations
Special Report 3 

14

For Greater Independence andSocial Participation of Persons with Disabilities

SpecialReport2

Toppan’s CSR 

16Content Index in Line with Seven Core Subjects
under ISO 26000 & the SDGs 

18

Organizational Governance 

19

Human Rights 

22Labor Practices 

24Fair Operating Practices 28Consumer Issues 32Community Involvement and Development 

36

The Environment 38  Toppan’s Environmental Activities 38  Environmental Management Activities 38  Toppan’s Environmental Burden and Environmental Impact  40  Eco-protection Activities 40  Eco-creativity Activities 

44  Environmental Communication Activities 

44

Independent Assurance 46

Independent Assurance Report 

47

Sustainable Development Goals 

48

Labels 

49

Supporting Reconstruction in
Kumamoto with Cutting-edge
Technologies that Preserve
Cultural Heritage for
Future Generations
P.

12SpecialReport3

For Greater Independence
and Social Participation of
Persons with Disabilities P.

14

TOPPAN CSR REPORT 201701

Group Business Outline
Corporate Profile

Business Fields

Corporate name

Information &Communication

Toppan Printing Co., Ltd.
Head office

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

Providing solutions to enhance the value of information and deliver it effectively
to customers who requiresmooth communication.

Established

1900
President & Representative Director

Shingo Kaneko
Number of employees (nonconsolidated)

9,551 (as of the end of March 2017)
Number of employees (consolidated)

50,705 (as of the end of March 2017)
Capital (nonconsolidated)

104.9 billion yen

Living & Industry
Providing a wide range of
products and services tocreate living environmentsthat offer comfort andpeace of mind.

Group Profile
The Toppan Group (“the Group”) comprises Toppan Printing Co., Ltd. (“theCompany”) and 175 related companies (150 subsidiaries and 25 affiliates)­engaged in manifold businesses in threefields: Information & Communication,
Living & Industry, and Electronics.
Detailed information on related companies can be found in the financial statements posted on the Toppan website(http://www.toppan.co.jp/ir/material/
report.html [in Japanese]).

02

TOPPAN CSR REPORT 2017

Electronics
Using advanced technology and manufacturing
capabilities to develop
products related to displays and semiconductors.

Group Business Outline

DATAn Net Sales

1,431.5 billion yen(billion yen) ■ Consolidated ■ Nonconsolidated

2,000
1,500

1,502.3

1,000

1,532.0

819.9

1,526.9815.7

1,474.6

781.5(billion yen)

Information &Communication
883.7 (62%)

Electronics
147.8 (10%)

Asia, excluding Japan
142.0 (10%)

Other regions
57.7 (4%)

Living &Industry
400.0 (28%)
2012

2013

2014

2015

n Net Income(billion yen) ■ Consolidated ■ Nonconsolidated

60

15

40.8

35.7

32.0

7.7

4.4
2012

6.8

2013

12.7

10.1

2014

2015

n Total Assets & Return on Assets (ROA)

1,997.9 billion yen / 1.7%

32.5 billion yen(billion yen)(billion yen) ■ Consolidated ■ Nonconsolidated

51.6

48.5
45

Japan
1,231.7 (86%)

2016(fiscal year)

51.6 billion yen

0(billion yen)

845.4

773.6

n Operating Income

30

n Net Sales by Region

1,431.55000n Net Sales by Business Field

2016(fiscal year)35
35.2 32.5
30
22.8
25
20.6 19.2
20 18.515.1
15
11.1
10
6.5
5
0
–1.4
–5
2012
2013
2014
2015
2016
(fiscal year)

(%)

2,500
2,000

1,633.0 1,712.3

1,500

1.2

1,000

1.2

4.0
1,994.6 1,876.5 1,997.9
3.0
1.8
1.2

0
–1.0

2012

2013

2014

1,171.9 billion yen / 3.3%

64.9 billion yen

19.3 billion yen(billion yen)(billion yen)

1,250
1,000

888.4

1,082.8 1,066.8
3.8

913.1

1,171.9 5.0

100

4.0

80

3.3

72.1

76.1
63.2

64.9

20

40

10

250

1.0

20

5

0
2016
(fiscal year)

0

0

2012

2013

2014

2015

n Number of Employees

2012

48,999

2015

19.0

17.9

2012

2013

2014

2015

19.3

2016
(fiscal year)

02016(fiscal year)

Company-wide positions
1,275■ Consolidated ■ Nonconsolidated
48,7512014

19.8

n Number of Employees by
Business Field (consolidated)

50,70550,000 48,878

2013

20.6

15

60

2.0

2.7

2016
(fiscal year)

25
76.8

3.0

2.7

2.5

2015

n R&D Expenses

500

750

1.0

0

n Capital Expenditure

(%)

2.0

500

n Net Assets & Return on Equity (ROE)(billion yen)

1.7

46,70550,70540,000Electronics
9,721

Information &Communication
28,17530,00020,00010,000
0

8,587
2012

8,604
2013

8,900
2014

8,993
2015

9,551

Living &Industry
11,5342016(fiscal year)

TOPPAN CSR REPORT 201703

Executive Message

Contributing to Fulfilling Lifestyles
The speed with which the various economies around theworld recovered varied in 2016. Growth in the U.S. pickedup after plateauing in the first half, while China and theemerging markets that depend upon it grew at a slow pace.
Recovery in Japan was moderate in general in fiscal
2016, with business earnings and employment and income
environments showing signs of improvement. The domestic
economy was clouded, however, by uncertainties in theworld economy, volatile financial and capital markets, andother unpredictable elements.
While corporate advertising expenditure expanded­primarily online, slackened demand for paper-based printing businesses and other negative trends continued toconstrain markets in the printing industry.
In spite of a slight decline in net sales amid this­challenging environment, our operating income increased­y ear-on-year in fiscal 2016, exceeding our publishedforecasts.
As the President & Representative Director, I am developing a constellation of initiatives to achieve the three main
management challenges of our Group: “advancing ourGroup-wide structural reform,” “creating new businesses
and new markets,” and “accelerating global businessexpansion.” In fiscal 2016 I took a step to further our endeavors for creating new businesses and new markets.

Designing Infinite Possibilities
We position TOPPAN VISION 21 as the foundation for allof our corporate activities. This vision consists of a
Corporate Structure (the Corporate Philosophy, Corporate
Creed, and Conduct Guidelines defining the values andstandards we should respect) and a set of Business Fields
based on the Corporate Structure.
In fiscal 2016 we redefined our business fields.
Specifically, we set out our Technology & Expertise basedon resources in five business segments and establishedfour growth fields on which to focus in terms of Markets &Customers: Healthcare & Life Sciences, Education &Cultural Exchange, Urban Space & Mobility, and Energy &Food Resources. This has been conceptualized as “designing infinite possibilities,” our management theme for 2017.
“Infinite possibilities” represent “value for tomorrow,” while“designing” broadly embodies the processes of planningand creativity. We will grow as a corporation that createssocial value by designing infinite possibilities—discovering
the value of the future and making it real with planningand creativity.

04

TOPPAN CSR REPORT 2017

Evolving as a Corporation that Grows
Steadily with Society
In parallel with these economic growth strategies for tomorrow, I am convinced that we will have to execute a rigorous
sustainability strategy to fulfill our social responsibility as acorporation committed to solving social issues and driving
our growth in step with all of society.
Toppan has been participating in the United Nations
Global Compact and supporting its 10 principles on humanrights, labour, environment, and anti-corruption since
September 2006. I will continue espousing the United
Nations Global Compact and directing our corporate social
responsibility (CSR) activities based on this global policy
initiative.
As an invaluable guideline to fulfill our social responsibility, we incorporated the International Organization forStandardization (ISO) 26000 Guidance on Social Respon­
sibility (globally recognized standard for organizations) into
our CSR management practices in fiscal 2011. We havebeen pushing forward with CSR activities accordingly by
piecing together a clear picture of the social issues weshould help solve and the social responsibilities we should
fulfill. The ISO 26000 standard condenses various social
issues to address. Our measures to tackle these issues
correspond to the requirements of the United Nations
Global Compact.
At the United Nations (UN) Headquarters in September
2015, the countries of the UN adopted a series of
Sustainable Development Goals (SDGs) as core steps for“Transforming our World: the 2030 Agenda for Sustainable
Development.” We will be analyzing how our Group’s businesses are relevant to the 17 SDGs in order to identify
material issues to target more assertively in our ongoing
CSR activities and to plot out a clear roadmap towards
achieving those targets.

Solving Diverse Social Challenges
Among the 17 SDGs, environmental challenges mainly pertinent to Goals 12, 13, and 15 have tremendous significancefor our Group. In Packaging & Converting, one of our fivebusiness segments, we have been developing sustainable
packaging and engaging in businesses to p
­ ropose newvalue-added creation using sustainable packaging.
Good examples are new forms of packaging made withGL BARRIER, a transparent film with barrier performancerivaling that of aluminum-based packaging materials. Toppan
is now proposing GL BARRIER-based packaging as a sub-

Executive Message

stitute for bottles and cans. Although bottles and cans canstore contents for long periods, their heavier weights push
up costs and CO2 emissions during transportation. Our GL
BARRIER packaging contributes to sustainable societies byreducing CO2 emissions and food waste.
Back in 1997, we also began archiving digital imagesof precious cultural properties to be sustained as legacies
to posterity. Our archiving system applies core technologies
for high-definition digitalization, color management, anda host of other long-held technologies we have developed
through printing processes. In 2011 we created Kumamotojo:
Unraveling the mystery of the invincible castle, a VR
­recreation of Kumamoto Castle, an important heritage sitein Japan that suffered serious damage in the earthquakesof April 2016. The VR production is a compendium of
high-definition archived data compiled from thousands ofdigital photographs of the castle tower structures, from thestone walls to the details of the donjon. From June to July
2016, the Tokyo National Museum (TNM) and Toppan
Printing Co., Ltd. jointly held charity screenings at the
TNM & TOPPAN MUSEUM THEATER. The full proceedsfrom the screenings were donated to the Kumamoto
Earthquake Donations for Rebuilding Kumamoto Castle, afund started to support Kumamoto City’s castle reconstruction efforts.
I value our employees as precious “human assets” of
the Toppan Group and have been accelerating diversity
management endeavors in the hope of actualizing a growthstrategy focused on human asset diversity. We are working
for the employment of persons with disabilities as part ofthese efforts. Toppan’s special subsidiary, Tokyo Metropolitan
Government (T.M.G.) Prepress Toppan Co., Ltd., provides
workplaces and support to persons with disabilities tofacilitate their self-reliance and seamless participation insociety. Prepress Toppan is committed to designing workplace environments and arranging various other infrastructures and initiatives to enhance the self-reliance of all
persons so as to enable them to develop their skills withothers and explore their individual potential regardless ofthe types of disabilities they live with or how seriously theirdisabilities affect their lives.

With Our Stakeholders
At Toppan we would like to continue disclosing information
through this CSR report, one of our most valuable tools
for communicating with our stakeholders. I am eager tohear your candid opinions about this report.
We will keep up our work towards the creation of fulfilling
lifestyles in a sustainable society. We rely on your ongoingsupport and guidance.
August 2017

Shingo Kaneko
President & Representative Director
Toppan Printing Co., Ltd.

TOPPAN CSR REPORT 201705

Toppan’s Corporate Social Responsibility Activities

Digest 2016
The Toppan Group engages incorporate social responsibility (CSR)

Human Rights

activities in line with action points andtargets established based on

P. 22–

Action Points

the seven core subjects under ISO 26000.

IH
 eightening awareness of the I W
 orking for equal opportunity inimportance of respecting
individual career development
basic human rights
and helping employees pursueIP roviding an open
their own career paths
environment and informationIS upporting second careers forfor recruitment
retired employeesIP roactively appointing female I P romoting the employment of
employees to higher positions
persons with disabilities
I Supporting para-sports

The following two pages enumerate
the main activities undertaken under
the core subjects.

Main Results in Fiscal 2016
Average monthly number ofpage views of SPORTRAIT,
Toppan’s para-sports
information website

Number of female
managerial andsupervisory staff(nonconsolidated)

5,781PVs

348*April 2016–March 2017(excluding August–
September 2016)*As of April 2017

Organizational
GovernanceP. 19–

Labour Practices

P. 24–

Action Points

Action Points

I Developing CSR management based on ISO 26000
I Facilitating business continuity management (BCM) activitiesIR einforcing countermeasuresIS upporting work-life balanceagainst disastersIC reating a better working
 romoting healthcare andenvironment through partnerships I P
health enhancement
between labor and management
 rranging measures forIE nsuring occupational health and I A
mental healthcare
safety and reinforcingID eveloping and fosteringcountermeasures against fires
human assets*

Main Results in Fiscal 2016
Reduction in the number of
directors through theintroduction of an executive
officer system

Main Results in Fiscal 2016

7

20,519Number of employees who
have completed e-learningbased, Group-wide basic
education on BCM

Ratio of males among employees who
have taken childcare leave

57.7

%

Ratio of employees who
have undergone stresschecks96.9%*Toppan values its employees as precious “human assets.”

06

TOPPAN CSR REPORT 2017

Toppan’s Corporate Social Responsibility Activities: Digest 2016

The Environment

P. 38–

Consumer Issues

P. 32–

Action Points

Action Points

I Reduce CO2 emissions
I Reduce final landfill waste disposal
I Reduce VOC emissions into the atmosphereIE nsuring consumer safety through the strict prevention of qualityrelated accidents
IE valuating environmental impact (disclosing CFP)
IE
 stablishing a management structure towards the complete
elimination of information security accidents

Achievement rate for the
reduction target for final
landfill waste disposal

Main Results in Fiscal 2016
Achievement rate for theCO2 emission reduction
targetEmissiontarget%achieved

Disposaltarget130

550

Actualemissions

125.6

kilotons

Number of products registered in
the carbon footprint of products(CFP) system

14

tons

kilotons

561

Main Results in Fiscal 2016

97

Number of regular training
sessions on information
security management

Actualdisposal

371

tons

98.1

% achieved

Fair Operating Practices

P. 28–

Community Involvement
and Development

Action Points

Action Points

IH eightening awareness of laws, regulations, and the Conduct
GuidelinesIC omplying with transaction-related laws and regulations
IP romoting CSR initiatives in the supply chainIA rranging social contribution programs tohelp solve social issues

Main Results in Fiscal 2016

Main Results in Fiscal 2016

Number of employees who haveworked as Conduct Guidelines
Promotion Leaders

8,322

Cumulative total donations raisedby the Toppan Charity Concert series,
a fundraising activity to support
education to improve literacy indeveloping countries*Cumulative total from fiscal 2004 to
fiscal 2016

Number of employees
who have participatedin training sessions oncompliance with the
Subcontract Law of
Japan

1,053

P. 36–

ABC

21.33

million yen*Cumulative total from fiscal 2007 to fiscal 2016

TOPPAN CSR REPORT 201707

Special
Report1

Boosting the Spread of
Sustainable Packaging
Containers and packaging are indispensable in daily life. The Toppan Group is making themsustainable in collaborative partnerships with stakeholders throughout the value chain.

The Various Roles of Containers andPackagingContainers and packaging are used in daily life forwide-ranging functions. One major role is to protect packaged products against the external environment. Others
include the packaging of products conveniently in smaller
portions to make them easy to carry or sell and the displayof information on product usage or precautions.
Despite their manifold functions, containers and packaging must be disposed of as waste once the products
they contain are used or consumed. Broad sections ofsociety, therefore, require manufacturers to develop­containers and packaging that minimize their impacts on
the global environment without sacrificing safety or
convenience.
n Containers and Packaging Account for 54.7% of
the Volume of All Household Waste

Papers: 10.7%

Other thancontainers
and packaging:
45.3%
Other: 0.0%
Metals: 3.8%

Containers
andpackaging:
54.7%
Plastics: 38.1%

Glasses: 2.1%

Source: S tudy on the Use and Discharge of Containers and Packaging
2016 from Japan’s Ministry of the Environment

08

TOPPAN CSR REPORT 2017

Containers and packaging are also helping to reducefood loss, a form of waste that has been drawing significant
attention in recent years. They can preserve freshness forlonger periods and extend best-before dates thanks to a
combination of container and packaging technology withfood processing technology. Small portions and individual
packages, meanwhile, allow consumers to purchase anduse only the amounts they need.

The Global Challenge of Reducing theEnvironmental Burden of Containers andPackaging
The European Union (EU) now places a new model called
the “circular economy” at the core of its growth strategy.
The Circular Economy Package adopted by the European
Commission in December 2015 is a collection of major
action plans to achieve the circular economy. Five priority
areas are assigned: plastics, food waste, critical raw­materials, construction and demolition, and biomass andbio-based materials. The EU is calling on each member
state to set targets and develop necessary legislation for
implementation towards the fulfillment of the goals.
n EU Waste Reduction Targets in Circular Economy
Package
I Recycle 65% of municipal waste by 2030
I Recycle 75% of packaging waste by 2030
I Reduce landfill to a maximum of 10% of municipal waste by 2030
Source: Press release issued by the European Commission

Special Report 1: Boosting the Spread of Sustainable Packaging

Toppan’s Vision for Sustainable Packaging
Containers and Packaging for a Sustainable
Society
Toppan has a vision for containers and packaging. At thevery least, they must serve all necessary functions expectedof packaging without using materials in excessive volumes
or of unduly high quality for the products being packaged.
Toppan’s ideal containers and packaging also ensure safety
and security for every user and reduce environmental burden to the minimum possible levels. Toppan is confident
that targeting such containers and packaging will contribute to the creation of a sustainable society.

Sustainable packaging at this level can be achieved only
through cooperation with various stakeholders in the value
chain. Outside the scope of design and production, Toppan
is organically linking manufacturers, distributors, consumers, and other stakeholders to facilitate the shift to sustainable packaging in terms of products and systems. The
Group will remain dedicated to the creation of a sustainable
society by building up and refining its efforts to make thefinite infinite.
n Vision for Containers and Packaging
Attuned to a
recycling-oriented
society

Sustainable Packaging:
A Scheme to Make the Finite Infinite
Low cost, little
burdenSecurity, safety,
people-first

Minimize total costs

Duly consider users

Appropriate
packaging
Avoid using materials
in excessive volumes orof unduly high quality
for the product being
packaged

CompletefunctionsServe all necessaryfunctions

Source: Japan Packaging Institute

Shift to sustainable
packagingn Toppan’s Vision for Sustainable Packaging

Sustainable society

Packaging optimization—the process of maintaining andimproving packaging functions while reducing raw materials consumed—has been a global issue in recent years.
Toppan continues tracking this international trend anddeveloping proposals for sustainable packaging basedon the Group’s own guidelines in line with the concepts of
the ISO 18600 series standards on Packaging and theEnvironment.
The Group proposes packaging designs optimized tothe entire lifecycles of products marketed by customer
companies. Quality preservation and water and energy
consumption during use are carefully controlled with nosacrifice of packaging functions through excessive reductions of packaging weight. In designing sustainable packaging, the Group also pursues the effective use of
inexhaustible and recycled resources and the sustainable
use of forest resources for the procurement of paper. The
Toppan Group designates these policies as the Guidelines
for Environmentally Friendly Packaging and offers
eco-packaging proposals accordingly.

Minimize
environmental
burdenContent
manufacturers

Distributors

ToppanConsumers

Environment

SocietyRawmaterial
manufacturers

EconomyCollaborative partnerships
in the value chainn Guidelines for Environmentally Friendly Packaging
Design encompassing the entire lifecycle of products

Packaging optimization

Reduce, replace
Reuse, recycle

Optimize design focused on quality
preservation, energy consumption,etc. during use without sacrificing
packaging functions through excessive reductions of weight
Promote 4R design of packaging
to encourage the effective use ofresources

Use of sustainable resources
Use of biomass resources
Effective use of recycledresources

Propose packaging focused on theeffective use of inexhaustible andrecycled resources and the sustainable use of forest resources

Use of properly procured
paper

Evaluate environmental burden by life-cycle assessment (LCA) methods

TOPPAN CSR REPORT 201709Technologies and Innovations for
Sustainable Packaging
GL BARRIER:
A World-class Transparent Barrier Film
Each year, about 1.3 billion tons of unconsumed food—leftovers, food past its consume-by date, etc.—goes towaste on our planet. Toppan harnesses its packaging
expertise to combat the global challenge of reducing
food waste.
GL BARRIER, a transparent barrier film from Toppan,offers world-class barrier performance in food packaging
rivaling that of aluminum foil. The film protects packaged
food from degradation due to oxygen, aridity, and­moisture, enabling longer periods of quality-preserving
storage compared to containers lined with other protective materials. While the prolonged storage periods
reduce material procurement costs and inventory-related
loss, the streamlined layer structure lightens the packaging weight, which lowers energy consumption intransportation.
In April 2016, Toppan completed a new plant in the
U.S. State of Georgia in anticipation of growing demand
for transparent barrier films. By supplying films directly

to North American and European packaging manu­
facturers, the U.S. plant will lower transportation costs
and guarantee a steady supply of the transparent barrier films.

A film suitable for printing, lamination, and other treatments, developedwith Toppan’s original coating and clear vapor deposition technologies

Mechanically Recycled PET Film:
A PET Film Produced from Used PET Bottles
Mechanical recycling is a method to obtain a high-quality
reproduced resin by eliminating impurities from a recycledmaterial through the cleaning and crushing of used
polyethylene terephthalate (PET) bottles followed by­high-temperature, reduced-pressure treatment for a given
length of time.
Toppan calls the PET film it produces from mechanically recycled PET resins “mechanically recycled PET
film.” The film is now applied as a printing base or as abarrier material for various pouches.
Mechanically recycled PET film is composed of 80%
recycled resin, a percentage unsurpassed in almost anyother recycled PET film ever made. The film matches thetransparency and other physical properties of conventional petroleum-based PET films but emits about 24%
less CO2 in the pre-manufacturing stage. Assessments
based on the guidelines from the Ministry of Health,Labour and Welfare of Japan verify that mechanicallyrecycled PET film satisfies performance levels of quality
and safety required for use in food packaging.

10

TOPPAN CSR REPORT 2017

GL-AR-NF, one of the GL BARRIER films developed by Toppan. A
mechanically recycled PET film is used as the substrate of this transparent barrier film for use in retort pouches.

Special Report 1: Boosting the Spread of Sustainable Packaging

BIOAXX®:
Packaging Series Using Biomass-based Plastics
Biomass-based plastic is a packaging material made fromrenewable plant-derived resources instead of exhaustible
fossil resources. The absorption of atmospheric CO2­during plant growth is estimated to offset any CO2 emissions from incineration of the packaging.
Toppan has been developing and commercializing
packaging composed of biomass-based plastics since1991, including BIOAXX®, a series of laminated packaging
materials made from plant-derived raw materials. Toppan
developed a biomass polyethylene (PE) film with a­thickness of less than 40µm in 2012. This material isadaptable for the flexible packaging of s­ undry products
from non-food products to foods and medicines.

Adaptable for sundry products from stand-up refill pouches for­toiletries to foods, medicines, and paper cups

Cartocan®: A Paper-based Beverage Container Produced with
Lumber Harvested from Forest-thinning Operations
In pursuing the environmentally responsible use of paper,
society expects businesses to principally use pulp derived
from recycled paper. When a business uses virgin pulp, thedesired choices are environmentally friendly paper suchas forest-certified paper, tree-free paper, or paper madefrom pulp derived from lumber harvested from thinningor other forest maintenance operations. The Toppan Groupestablished Paper Procurement Guidelines for the
Sustainable Use of Forest Resources in September 2011.
Cartocan®, Toppan’s paper-based beverage container,
was placed on the market in 1996. The container uses
GL BARRIER, Toppan’s original transparent barrier film,
and is produced from pulp derived from at least 30%
lumber from Japanese forests, including lumber fromforest-thinning operations. The assertive use of domestic
lumber promotes forestal cycles and sounder forest­nurturing across Japan.
Toppan donates some of the proceeds from Cartocan®
container purchases by beverage manufacturers to theGreen Fund, a program that funds volunteer organizations

involved in forest maintenance throughout Japan. Cartocan®
is also collectable through the same recycling routes as
beverage cartons and can be recycled into toilet paper.

Aseptic filling enables the shipping and storage of Cartocan® at room
temperature and sales through various channels such as mail orderand vending machines

TOPPAN CSR REPORT 201711

Special
Report2

Supporting Reconstruction in
Kumamoto with Cutting-edge
Technologies that Preserve Cultural
Heritage for Future Generations
The 2016 Kumamoto earthquakes caused tremendous damage to valuable culturalproperties along with local infrastructure. The Toppan Group is committed tocontributing to the restoration of Kumamoto’s historic landmarks for future generations.
Daitenshu, a greater donjon of Kumamoto Castle, as of May 2017 (Photo courtesy of Kumamoto Castle Office)Devastating Kumamoto Earthquakes
Two major earthquakes struck Kumamoto on April 14 and16, 2016. This was the first time for two successive quakes
to register a score 7, the highest rating on the Japan
Meteorological Agency (JMA) Seismic Intensity Scale, since
the current JMA seismic degrees were adopted. The damage was catastrophic. About 180,000 people were forced
to stay at evacuation centers immediately after the earthquakes. As of April 2017, about 47,000 people remain in
temporary houses or other facilities awaiting reconstructionof essential infrastructure and their former homes.
Kumamoto Castle, a symbol and spiritual pillar of­Kumamoto, was not spared from the earthquakes. The
severe damage led to the complete or partial collapse of all
13 of the castle structures registered as important culturalproperties of Japan. Kumamoto Castle is one of the threemost impressive castles in Japan, along with the Nagoya
Castle in Aichi Prefecture and Osaka Castle in Osaka
Prefecture. Kiyomasa Kato, a local warlord renowned for his
skill in designing medieval fortresses, built the original castle
on the hilltop of Mt. Chausu in the center of Kumamoto
City from 1601 to 1607. The castle has much to offer visitors, with graceful outer contours and massive stone walls
thought to be the sturdiest ever built in a Japanese fortress.
The reconstruction of Kumamoto Castle has been accelerated as a project emblematic of quick recovery for the
citizens of Kumamoto City and Prefecture. Donations­
streamed in from across Japan to fund reconstruction after
the earthquakes. Toppan is working to support the restoration of Kumamoto alongside many others.

12

TOPPAN CSR REPORT 2017

Toppan VR and Digital Archiving for the
Restoration and Reconstruction of Cultural
Properties
Toppan has been digitalizing precious cultural properties
in high-definition images using archiving technologies
developed based on its long-held printing technologies. At
the core are techniques for high-definition digitalization,color management, and three-dimensional geometricmeasurements. These digital archiving technologies makeup the framework for Toppan VR (virtual reality), a tool forpresenting digital archive data to the world. Toppan VR
generates realistic images in real time, delivering a freely
moveable virtual experience of unparalleled presence andimmersion—the feeling of actually “being there.” Toppan
has digitally archived dozens of precious cultural properties
and world heritage sites around the globe. In 2011, Toppan
produced Kumamotojo: ­Unraveling the mystery of theinvincible castle, a VR r­ecreation of Kumamoto Castle in
the form it once took during the Edo Period (1603–1867).
The Uto Turret and other castle structures that have­survived the centuries have been captured in detail byhigh-definition photography, while the structures no longer
existing are reproduced under the scholarly guidance ofexperts on the castle and its history. The VR production isbased on about 40,000 detailed digital photographic
images of the castle tower’s stone walls, Uto Turret, donjon,
Honmaru Goten Palace, and other structures.

Special screening of Kumamotojo: Unraveling the mystery of the invincible castle, a VR production, at TNM & TOPPAN MUSEUM THEATER, Tokyo National Museum

Kumamotojo: Unraveling the mystery of theinvincible castle, a VR Production Specially
Screened at Tokyo National Museum
From June 22 to July 10, 2016, Tokyo National Museum(TNM) and Toppan Printing Co., Ltd. arranged special
screenings of the VR production Kumamotojo: Unravelingthe mystery of the invincible castle at the TNM & TOPPANMUSEUM THEATER in the Tokyo National Museum. Proceedsfrom the screening were donated to support the restorationof Kumamoto Castle from the serious damage caused by theearthquakes of April 2016. The VR production presented
Kumamoto Castle’s well-fortified structure in a different
arrangement from the earlier production screened at the
Wakuwakuza History and Cultural Experience exhibit in
Sakuranobaba Johsaien, the tourist facility next to the castle.
The VR production was screened at the museum theater 42
times for 2,488 visitors over a period of two weeks, each timewith an opening video message from Kazufumi Onishi, Mayorof Kumamoto City. TNM and Toppan donated 1,244,000 yen,
the full proceeds from audiences, to the Kumamoto
Earthquake Donations for Rebuilding Kumamoto Castle, afund set up by Kumamoto City, Kumamoto Prefecture.

sections. Tens of thousands of stones and stone fragments
fell from the walls during the earthquakes, leaving about athird of the walls damaged. The first phase of the restoration project will focus on identifying the original positionsof the collapsed stones and replacing them as they were.
The works will require sufficient pre-quake photographic
images of the walls to locate the placement of the stones,
followed by a long series of complicated operations to
identify the original positions using these images. Toppan
and researchers from Kumamoto University are now developing a stonewalling identification system to model theoriginal stone placement in the wall structure. The system
combines a computer vision technology from Kumamoto
University with Toppan’s image-processing technology
and some 40,000 digital images detailing the stone walls,
Uto Turret, and other structures photographed before theearthquakes to create the VR production of the castle. This
identification system will serve as a key tool in the stone
wall restoration works in the decades to come.

Joint Efforts with Kumamoto University to
Restore the Stone Walls of Kumamoto Castle
Full-fledged reconstruction to restore the severely affected
Kumamoto Castle has just begun. By current estimates,
the restoration works may continue for more than twentyor thirty years.
The stone walls of the castle, known for their beautiful
rising musha-gaeshi curves, have collapsed in about 50

Presenting a register of donations to Kazufumi Onishi, Mayor of Kumamoto City (left)

A portion of the documentary photography

Screenshots in the stonewalling identification system

TOPPAN CSR REPORT 201713

Special
Report3

For Greater Independence and Social
Participation of Persons with Disabilities
The Toppan Group provides workplaces and support for persons withdisabilities to facilitate their enhanced independence and seamless participation in society.

Pursuing Diversity Management
The Toppan Group’s broad-ranging businesses centeredaround printing technology take in orders for products andservices from more than 20,000 customers from sectors
and industries of every kind. Toppan relies on a diverse
workforce to respond flexibly to the demands and­expectations of its huge and varied customer base. This
is why the Toppan Group is committed to diversity
management.
The employment of persons with disabilities is part ofthis effort. Toppan is working to employ persons with­disabilities across the Group in cooperation with its special subsidiary, Tokyo Metropolitan Government (T.M.G.)­Prepress Toppan Co., Ltd.
Prepress Toppan is a joint public-private venture ofTokyo Metropolitan Government, Itabashi City, and Toppan
Printing Co., Ltd. The company was founded as a special
subsidiary of Toppan in June 1993.

Based on the Philosophy of Normalization
As a practitioner of equal opportunity under the philosophyof normalization, Prepress Toppan provides workplaces
and support to persons with disabilities to enhance their
independence and participation in society. Physical limitations should never confine a person’s abilities or ­possibilities.
All individuals can learn work, develop technical skills,
and constantly upgrade themselves with a positive, forward-looking mindset. They can also take pleasure and

14

TOPPAN CSR REPORT 2017pride in their work as a form of social participation. Prepress
Toppan is realizing these ­ideals by enhancing many aspectsof the workplaces it provides.
Its facilities, for example, are designed to provide fullaccessibility for orthopedically impaired employees withfloor plans that allow many people with severe disabilities
to work. The working environments are comfortable forindividuals of all kinds, with ample workplaces, spacious
common areas, and accessible features such as sliding
doors with sensors and restrooms at floor level (without
steps) for the passage of wheelchairs. Prepress Toppan,
meanwhile, works to maintain the mental and physicalhealth of employees by arranging monthly visits and healthcare consultations by industrial physicians, mental healthcare services from industrial counselors, and much more.
For employees with hearing impairments, the company
is stepping up initiatives to facilitate communication, including an application to automatically convert voice to text inworkplace meetings, and a five-minute assembly held eachmorning in sign language.

Enhancing the Independence of People
with Disabilities
Prepress Toppan runs a primary business in prepress, aseries of processes encompassing the desktop publishing(i.e., typesetting and editing) of various printed materials(books, magazines, photography books, brochures, flyers,etc.) and the development of automatic software for typesetting. Apart from its primary business, the company isSpecial Report 3: For Greater Independence and Social Participation of Persons with Disabilities

also entrusted with document digitization and various otherkinds of back-office operations by the parent company,
Toppan Printing. The parameters of employees’ disabilities
are taken into account to enable all employees to realize
their full abilities in positions right for them.
The personnel evaluation system is wholly based oncompetency. Whether an employee has a disability, or the
degree of an employee’s disability, is disregarded. Of theseven managerial positions established at Prepress Toppan,
three (two males and one female) are occupied by persons
in wheelchairs.
The company’s employees take part in the Tokyo
Abilympics (skills competition for persons with disabilities)
every year. Competitors from Prepress Toppan won silver
medals in website creation in 2016 and in desktop publishing and PC data entry in 2017.
The company is pressing forward with measures
focused on the self-reliance of persons with disabilities,
including fire-extinguishing training for in-house firefighting
teams and first aid workshops using automatic external
defibrillators (AEDs) at annual emergency drills.
Prepress Toppan strives to create high-quality products
through mutual cooperation among employees while
enhancing their skills, empowering each to overcome individual difficulties and explore individual potential regardlessof whether his or her experience is any way influenced
by disability.
The Toppan Group will continue improving work environments for people with difficulties and investing greater
efforts into the employment of persons with disabilities.

n Composition of Employees in T.M.G. Prepress
Toppan Co., Ltd.
Headcount

Number of
Persons with
SevereDisabilities

Limb or trunk dysfunction

44

34

Internal dysfunction

3

2

Persons
Hearing impairment
withdisabilities Visual impairment

108Type of Disability

1–

Mental disability

7–Intellectual disability

14

6Persons with disabilities in total

79

50

Persons without disabilities

21

Total number of employees

100–(As of June 1, 2017)■ Employees with Disabilities: 79

Male 56
10

Female 23
20

30

40

50

60

70

80

90

■ Average Age of Employees with Disabilities

Male: 38.9
Female: 39.1
10

20

30

40

■ Service Years of Employees with Disabilities(by gender)
12

9

20 years or over:
32 employees

20
10
12

U Male U Female

Less than 5 years:
23 employees

14

2

5 to 9 years:
10 employees

10 to 19 years: 14 employees

Office floor with ample space

Hallway wide enough for wheelchairs to easily
pass each other

Mirror that can be lowered by persons in wheelchairs

Five-minute morning assembly held in sign
languageAward ceremony for Tokyo Abylimpics

Fire-extinguishing drill by an in-house firefighting team

TOPPAN CSR REPORT 201715

Toppan’s CSR
Evolving as a Corporation that Creates
Social Value
TOPPAN VISION 21 sets forth the basic concepts anddirection for the ongoing growth of the Toppan Group in
harmony with society and the global environment. The
vision consists of a “Corporate Structure” and a set of“Business Fields.”
n Corporate Structure
The Corporate Structure is made up of three elements:
Toppan’s Corporate Philosophy, the Corporate Creed, andthe Conduct Guidelines. The Corporate Philosophy specifies ideals and the most important values and concepts
for the Group. The Corporate Creed expresses the standards to be kept foremost in mind when performing business
operations. The Conduct Guidelines set out the basic concepts and behavioral norms for Toppan employees bothas businesspeople and as members of society.
n Business Fields
The Toppan Group redefined its Business Fields in fiscal
2016, dividing them into two categories: “Technology &Expertise” and “Markets & Customers.” The former category encompasses accumulated Toppan knowledge and­technologies classified into five resource-based segments.
The latter focuses on four key fields for growth: Healthcare& Life Sciences, Education & Cultural Exchange, Urban
Space & Mobility, and Energy & Food Resources.

Toppan’s CSR Activities
The Toppan Group undertakes corporate social responsibility (CSR) activities in accordance with the principles of
the United Nations Global Compact and the guidelines of
the ISO 26000 Guidance on Social Responsibility, a globally

recognized standard for organizations. ISO 26000 encourages organizations to address seven core subjects: organizational governance, human rights, labour practices, theenvironment, fair operating practices, consumer issues,and community involvement and development.
n Committing to Achieving SDGs
Japan and 192 other countries adopted the Sustainable
Development Goals (SDGs), a set of shared global development agendas, at the UN General Assembly held in
September 2015. The SDGs encompass 17 goals and 169
targets focused on social issues for the international community to commit to achieving by 2030. Private businesses
around the world are expected to join policy initiatives tohelp solve the social issues under the SDGs. Toppan ismaking headway in its journey to evolving as a corporationthat creates social value by incorporating the SDGs into
the Group’s CSR activity targets.
n Material Issues
Based on the seven core subjects under ISO 26000,
the Toppan Group has assessed CSR-relevant issues
according to two criteria, the “influence on stakeholder
assessments and decisions” and “Toppan’s economic,
environmental, and social impacts.” The Group has identified the following as issues expected to become morematerial: human rights, human resource development anddiversity, the environment, promoting social responsibility
in the value chain, and privacy (personal information
protection).
Toppan will be reviewing the 17 SDGs to select material
issues for the Group to target by analyzing the relevant
connections between the SDGs and the business activities
and newly designed Business Fields of the Group. The
Toppan Group plans to develop a clear roadmap in fiscal
2017 to achieve these targets.

n Toppan’s New Business Fields

Markets &Customers

TOPPAN CSR REPORT 2017

Electronic Devices

Energy & Food Resources

Performance Materials

Urban Space & Mobility

Packaging & Converting

Healthcare & Life Sciences

Information Management

Five Segments
Toppan resources classified into five different segments
Creative Communication

Four Growth Fields
Four fields on which to focus
Education & Cultural Exchange

16

Technology &ExpertiseToppan’s CSR

n Toppan’s Approach to CSR

Sustainable societies
A corporation that creates social value

Corporate
Structure
Corporate
Philosophy

Customers(client companies,
consumers)

Corporate CreedBusiness partners

Conduct Guidelines

Employees

Markets &Customers

Technology &Expertise

Four Growth Fields

Five Segments

Shareholders andinvestors

Business
FieldsTOPPAN VISION 21
http://www.toppan.co.jp/
english/corporateinfo/vision/rinen.html

Communities

Principles guiding the CSR activities

United Nations Global Compact
Universal principles to be espousedby corporations
10 principles in four areas
Guidance on CSR activities

CSR activity goals

ISO 26000

Sustainable Development Goals (SDGs)

Globally recognized standard onsocial responsibility
Seven core subjects

17 action goals for the realization ofsustainable societiesn Material Issues based on ISO 26000

Issues Expected to Become More Material

Influence on
stakeholder
assessments
and decisions

I Human rights
I Human resource
development anddiversity
I The environment

I Promoting social
responsibility in thevalue chain
I Privacy (personal
information protection)

Issues Judged to be Fundamentally
Material for Toppan as a Group of Companies
I Labour practices
I Fair operating practices
I Consumer issues

I Community involvementand development

Toppan’s economic, environmental, and social impacts

TOPPAN CSR REPORT 201717

Content Index in Line with
Seven Core Subjects underISO 26000 & the SDGs

n 17 Goals Encompassed by the SDGs*2*2 See page 48 for detailed information on the United Nations Sustainable
Development Goals (SDGs).

*1Detailed information on results in fiscal 2016 and future targets and measures
can be found in the Toppan CSR Report 2017: Detailed Data posted on the
Toppan website (http://www.toppan.co.jp/english/csr/csrreport.html).
Seven Core Subjects and Issues

Organizational governance

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: F undamental principles andrights at work

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 the workplace

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

Consumer issues
Issue 1: F air marketing, factual and unbiased
information and fair contractual
practices
Issue 2: P rotecting consumers’ health andsafetyIssue 3: Sustainable consumption

Issue 4: C onsumer service, support, andcomplaint and dispute resolution
Issue 5: C onsumer data protection andprivacy
Issue 6: Access to essential services
Issue 7: Education and awarenessCommunity involvement and development
Issue 1: Community involvement
Issue 2: Education and culture
Issue 3: E mployment creation and skills
development
Issue 4: Technology development and access
Issue 5: Wealth and income creation

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

TOPPAN CSR REPORT 2017

I Corporate Governance 
I CSR Initiatives
I Risk Management Structure IB usiness Continuity
Management 

12 16

IR
 especting Basic Human Rights IC ollective Labor Agreement IW orking for Equal Opportunityand Eliminating Discrimination 

8 10
8 10

Pages

12
13

P. 19–

5 8 10P. 22–

IB asic Approach Regarding
Human AssetsIL abor-Management Partnership 
I Supporting Work-Life Balance IO ccupational Health and Safety IM easures for Mental Healthcare ID eveloping and Fostering
Human Assets ID isseminating the Conduct
Guidelines IT oppan Group Helpline IC ompliance Education IP romoting CSR Procurement IA ssuring Product Safety andQuality IP rotecting Consumers by
Safeguarding their Personal
Information
IU niversal Design Initiatives IC ontributing to Sustainable
Consumption IC ommunity Involvement andDevelopment 

8
8
3 8
3 8

P. 24–

4 8

5 10
10 16
10 16
8 10 12 16

P. 28–

912

P. 32–

2 9 123 4 5 17

Issue 6: Health
Issue 7: Social investment

The environment

18

SDGs*2

For Details

P. 36–

IT
 oppan’s Environmental Activities
IE nvironmental Management
Activities IT oppan’s Environmental Burden
and Environmental Impact IE co-protection Activities IE co-creativity Activities IE nvironmental Communication
Activities 

4
12
12 15
12
12

P. 38–

Organizational GovernanceCorporate GovernanceToppan operates corporate activities under the purview of an
Audit & Supervisory Board. The supervisory functions of theBoard of Directors and audit functions of the audit & supervisory board members ensure the legality of the execution of
the operations of the directors. Toppan has strengthened
governance in corporate management in keeping with the
Basic Policy on Corporate Governance established on
November 26, 2015. The Toppan Group, meanwhile, practices
governance aimed at maximizing the corporate value of theentire Group under the Related Company Administration
Regulations prescribed for the advancement of fair management for the Group. In structuring corporate management,
Toppan has appointed three external directors (including two
independent external directors) to reinforce supervisory functions. These external directors provide pertinent advice andinputs independently from the management.

n Audit & Supervisory Board, Board Members,
and Audit Firm
As of the end of March 2017, Toppan has five audit & supervisory board members, including three external auditors, ofwhom two are independent officers. Along with their own
board meetings, the board members attend various meetings,
including meetings of the Board of Directors and Management
Committee and important meetings on risk management. They
systematically carry out audits for operational sites and Group
companies in close cooperation with the audit firm and internal
audit-related departments of the Company. By these means,they audit and advise the Company from a preventive perspective to ensure the legality of the operations of the directors
and departments and smooth and appropriate corporate management in line with company policies and regulations. They
also regularly convene a meeting of audit & supervisory boards
from related companies to improve the effectiveness of theaudits by board members across the Group.
Toppan has had KPMG AZSA LLC verify the propriety of theCompany’s accounts through audits to enhance the r­ eliability
and transparency of the Company’s financial information.

n Directors, Board of Directors, and Various Meetings
Toppan has 19 directors, including three external directors, on
its board (as of the end of March 2017). Board meetings are held
monthly and whenever a pressing matter requires action or deliberation. Especially important matters are deliberated beforehandby the Management Committee, a body made up of directors
appointed by the President & Representative Director. The

Organizational Governancegoal is to lay weight on managerial efficiency in business decision-making. Toppan put in place a new corporate governancestructure in fiscal 2016 by introducing an executive officer
system and establishing an advisory committee to deliberateon the nomination of directors and the remuneration they receive.

n Corporate Governance Structure (as of March 31, 2017)
Meeting of Shareholders
Appointing or dismissing

Appointing or dismissing

Appointing or dismissing

External directors (including two independent directors) Board of Directors
Auditing

Advisory Committee forSupervising
Advising Nomination and Remuneration

Crisis Management Committee

Selecting or
dismissing

Special Committee(for defending against takeover bids)

President & Representative Director
Investment & Legal Review Council

Audit Firm

Directors in Charge
Executive Officers in Charge
Business Divisions
Group Companies

Management Committee

Monitoring
andguiding

Guiding

ComplianceDepartment

Spearheads, monitors, and verifies thestrict observance of business-related
laws and regulations and the establishmentof ethical business practices
Oversees, monitors, and verifies

Ecology Center environmental activities across the Group
Instructing

Other organizations for control

Chief Information Security Manager

Safety and Health Committee

TPM National Conference (in Japan)

National Eco-protection Committee (in Japan)

Auditing
ReportingAssistingNational Conduct Guidelines
Promotion Supervisors (in Japan)

Monitors and verifies the legality andappropriateness of operational activities

Office of the Audit &Supervisory Board Members

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

Management
Audit Office

Audit & Supervisory Board

Executive Officer Committee

Auditing

Auditing
Advising
and counseling

Working together
The latest information on corporate governance can be found on the Toppan website (http://www.toppan.co.jp/ir/management.html [in Japanese]).

TOPPAN CSR REPORT 201719

n Strengthening Audit Functions
The Management Audit Office is a body established independently from the business divisions of the Company.
Working from legal and rational viewpoints, the office conducts
fair and objective audits on the administrative and operational
systems and practical status of the Company’s management
activities. The office provides feedback to the relevant departments on problems, proposes measures for improvement, andreports the audit results to the President & Representative
Director, directors in charge of relevant departments, and audit& supervisory board members. The office carried out 30­management and operation audits in fiscal 2016. It also conducted maintenance and operational evaluations of internal
controls over financial reporting for all business divisions andmain subsidiaries.
The Compliance Department in the Legal Affairs &Intellectual Property 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 withapplicable laws, and implements internal audits on information
security (➞PP. 28, 32). The Ecology Center in the Manufacturing
Management Division oversees environmental activities acrossthe Group, conducts internal audits at operational sites, andmonitors the progress of their improvements (➞P. 38).
n Remuneration to Directors and Audit & Supervisory
Board Members
In fiscal 2016 the total annual remuneration to directors was
1,083 million yen and the total annual remuneration to audit& supervisory board members was 114 million yen. Pleaserefer to the section on corporate governance, etc. in the­securities report (in Japanese) for details on the method
used to determine remunerations and remuneration-related
information.

CSR Initiatives
n Promotion Mechanism
The divisions of the head office work in collaboration with eachother to promote CSR activities under the President &­Representative Director and the Director in charge of CSR.
Each division confirms the materiality of action points inline with the seven core subjects set under ISO 26000. The
divisions devise action plans and carry out measures basedon shared information about the issues they are addressing
and the progress they are making. The head office divisions
also coordinate and share information with Group companies
to advance Group-wide CSR initiatives.
Every year Toppan organizes a training course on CSR
management for new employees (324 persons completed
the course in fiscal 2016) and e-learning-based, Group-wide

20

TOPPAN CSR REPORT 2017

basic education for employees at the Company and main
Group companies (20,276 persons completed the course in
fiscal 2016).

Risk Management Structure
Toppan manages risk comprehensively to avoid risk and­minimize loss incurred when an event at risk of occurring actually occurs.
The Rules on Risk Management have been established toaddress matters regarding risk avoidance and the minimizationof loss when a potentially damaging event 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 various types of risk to be managed oncea year and examines countermeasures to be taken in line withthe rules. The Company also holds a regular Risk Management
Liaison Meeting for the persons in charge of risk managementin the head office divisions in order to share information on acontinuous basis and respond to risk practically.

Business Continuity Management
To prepare for the possible occurrence of a wide-scale disaster, the Toppan Group institutes business continuity management (BCM) activities under the Basic Plan for Countermeasuresagainst Earthquake Disasters. These activities aim to minimize
damage to the Group and maintain a steady supply of products and services to customers.
The Toppan Group repeats various BCM drills at every site
to enhance Group-wide competence for business continuity.
In fiscal 2016 Toppan held e-learning-based, basic training for
all Group employees in Japan (completed by 20,519 persons)to ensure awareness among employees on business continuity
management.
The lessons learned from the Great East Japan Earthquake
disaster of 2011 have renewed the Group’s awareness of theimportance of a stable supply chain for effective BCM. In fiscal
2016 the Group surveyed the business continuity competencies of 184 material suppliers by questionnaire to ascertain
their current BCM measures. An expert was also invited to thehead office to lecture at a training session for 23 business
partners on business continuity management.
The Toppan Group seeks to coexist with communities
through ongoing BCM activities.

n CSR Promotion Structuren Types of Risk to Be Managed and the Relevant Head Office Divisions in Charge
Types of Risk to Be Managed

President & Representative Director

Product accidents or quality-related accidents (Manufacturing
Management Div.)
Accidents related to main computer systems (ICT Management Div.)

Director in charge of CSR

Occupational accidents, traffic accidents, or other accidents involving
employees (Personnel & Labor Relations Div.)CSR promotion departments
Administration
Public Relations Division
Secretary Office
Corporate Planning
Division
Personnel & Labor
Relations Division
Legal Affairs & Intellectual
Property Division
Finance & Accounting
Division
Manufacturing
Management Division
Business Development& Research Division

BCM drill (Fukuoka Plant)

Incidents related to notes or accounts receivable (Finance & Accounting Div.)
Accidents or disasters
related to company
operations

Legal problems with orders received (Legal Affairs & Intellectual Property Div.)

Leakage of personal information, internal confidential information, etc.
(Legal Affairs & Intellectual Property Div.)
Accidents or disasters related to fires or explosions (Manufacturing
Management Div.)
Illegal activities related to the storage of solvents, management of
dangerous chemicals, etc. (Manufacturing Management Div.)
Damage to the company’s internal computer system due to cyber terrorism,
illegal access or use of company information, or leakage of personal
Defamation, slander, or
information, internal confidential information, etc. (ICT Management Div.)other criminal damages
Acts of violence against the company (threats, kidnapping, or robbery)(Personnel & Labor Relations Div.)
Unreasonable demands from antisocial organizations or transactions
Relationships with
conducted between business partners and antisocial organizations
antisocial organizations(Legal Affairs & Intellectual Property Div.)
Material losses or personal accidents suffered by customers or the
Natural disasters
company due to earthquakes, wind or water damage, lightning, etc.
(Personnel & Labor Relations Div.)
Risk in business
Shareholder derivative lawsuits or hostile takeovers (Legal Affairs &management
Intellectual Property Div.)
Unlawful activities related
Violations of the Subcontract Law of Japan or illegal transactions withto external contracts
business partners (Manufacturing Management Div.)Infringements of intellectual Infringements of patents, trademarks, or copyrights (Legal Affairs &property rights
Intellectual Property Div.)
Violations of environmental laws, regulations, or standards or illegal
Environmental problems
disposal of industrial waste (Manufacturing Management Div.)
Product accidents, environmental problems, fires or natural disasters, orRisk in overseas businessdamage to human or physical resources caused by international
activities
conflicts, terrorism, etc. (Corporate Planning Div.)BCM training session for business partners

Organizational Governance

Product accidents or
product liability

Comprehensive disaster-preparedness drill(Akihabara)Countermeasures against Disasters
The Toppan Group takes comprehensive disaster-preparedness measures throughout the operational sites across Japan under the Basic Plan for­Countermeasures against Earthquake Disasters. The basic plan specifies that Toppan employees are to: 1) take safety-first actions based on the conceptof respect for people; 2) fulfill social responsibilities by maintaining steady supplies of products and services that society needs most; and 3) cooperatewith governments and communities to minimize damage and provide aid for affected people.
In fiscal 2016 the Toppan Group adopted a further practical approach to the possible occurrence of a wide-scale disaster based on the experience of
responding to the earthquakes that struck Kumamoto Prefecture in April 2016. The Group prepared two wide-scale disaster scenarios: one hitting eastern Japan and the other hitting western Japan. Inter-operational-site drills were organized in March 2017 to enable staff in one region to verify the safetyof all Group employees across the areas potentially stricken by disasters in another region. In conjunction with these drills, Toppan built a system for thehead office to purchase supplies for Group-wide deployment in the event of a disaster by confirming the current status of stockpiled emergency supplies
in real time. The head office site in Akihabara and other main Group sites also organize regular comprehensive disaster-preparedness drills to rehearse
the actions to be taken during actual wide-scale disasters: the initial damage assessment and safety verification, the evacuation procedures, the employees’ journeys back home from their workplaces on foot, and the distribution of stockpiled supplies.
The regular repetition of these drills will keep all Toppan employees on alert and provide them with the know-how necessary for dealing with emergency
situations quickly and properly.

TOPPAN CSR REPORT 201721

Human Rights
Respecting Basic Human Rights
The Toppan Group operates business under the foundational
concept of respect for people. The Conduct Guidelines, which
set out behavioral norms for Toppan personnel, call for
respecting basic human rights (such as respecting personalqualities and individuality; prohibiting discrimination and­harassment; and prohibiting child labor and forced labor[➞P. 31]). Based on The Toppan Group Declaration on the
Global Environment and the Basic Policy on Biodiversity, theGroup promotes environmental conservation initiatives to avoid­negative impacts on the lives of people living near its operational sites (➞P. 38).
Toppan has been carrying out education on human rights
through CSR training for new employees and e-learning-based
programs on CSR and the environment for all employees of
the Group. To disseminate initiatives for respecting humanrights throughout the entire supply chain, the Group sets forth
an article on respecting basic human rights in the Toppan
Group CSR Procurement Guidelines and asks business­partners to comply with this article (➞P. 30).
Toppan has also set up dual hotlines through which­employees and business partners can promptly report humanrights issues or violations.

Collective Labor Agreement
The Toppan Printing Labour Union and the management haveconcluded a collective labor agreement in order to stabilize
labor-management relations, maintain and improve 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 contribute to society through business operations and collectively
work for the benefit of the Company and long-term stabilityof the livelihood of employees. Labor and management both
uphold this policy as a common goal. Article 2 of the agreement clearly states that the union has all the rights establishedby law, specifying that the Company shall respect the union’s
rights to organize and collectively bargain and act.
The Toppan Printing Labour Union is run by members from
Toppan and nine Group companies. The union and the management have concluded an agreement to impose a uniform
set of liability-related clauses (rules governing union activities
and labor-management negotiations) on all 10 companies.

22

TOPPAN CSR REPORT 2017

Working for Equal Opportunity andEliminating Discrimination
Toppan pursues diversity management to innovate and create
value by engaging diverse human resources and nurturing
their competence to its full potential.
n Positive Action
Toppan promotes positive action to bring out the full potential
of individual employees and assign them to more diverse positions regardless of gender. Women play important roles in wider
arenas as the Company has appointed more female employees
to managerial positions based on their skills and motivation.
n Self-determination on the Career Path / In-house Staff
Recruitment / Second Careers
Toppan has established the Challenging Job System, a self-directed program to encourage employees to report their medium-to-long-term career development plans. The combined
effects of the Challenging Job System and an in-house staff
recruitment system nourish a problem-solving, can-do mindset
to facilitate the placement of the right person in the right position across the Company. Toppan has also implemented various career development measures, such as a training program
to help employees consider their own career paths going forward. For retired employees in their second careers in company
life, the Company offers working options well suited to theirknowledge, experience, skills, and motivation. Seventy-one of
85 employees who retired in fiscal 2016 were reemployed.
n Employment of Persons with Disabilities
Toppan promotes the hiring of persons with disabilities in collaboration with a special subsidiary, Tokyo Metropolitan
Government (T.M.G.) Prepress Toppan Co., Ltd. Toppan and
T.M.G. Prepress Toppan maintain the hiring and employmentof persons with disabilities by devising procedures and routines adjusted to their capabilities to empower them to perform
wide-ranging jobs in the workplace.
n Providing an Open Environment for Recruitment
Toppan hires diverse persons of both genders and of manynationalities, ages, and levels of physical and mental ability
through recruitment channels such as the regular hiring of new
graduates from universities and high schools and the hiring of
persons with disabilities and experienced personnel in the
middle of their careers. To make contact with diverse persons,
Toppan publicizes its working styles in company orientation
sessions and via the Company website and other media.
Toppan also holds multiple job-specific screenings in Japan
to offer recruits a wider choice of employment opportunities
in accordance with their own aspirations and vocational aptitudes. In fiscal 2016 the Company ran internship programswith practical training sessions for 92 students.

n Initiatives for Respecting Basic Human Rights
Participating in the United Nations Global Compact
Toppan participates in the global policy initiative and respects basic human rights in a proactive manner.

Respect for people
A universal concept highly valued by Toppan

Establishing and disseminating
the Conduct Guidelines

Organizing training
and education

Toppan specifies respect for basic humanrights in the Conduct Guidelines—itslisting of behavioral norms for
employees—and disseminates thisprinciple across the Group.

Toppan respects personalqualities and individuality, and hires
and treats employees without
discrimination of any kind.

Toppan carries out education on humanrights in rank-based training.

Promoting CSR procurement

Operating hotlines

Contributing to society(

PP. 28, 31)(

P. 30)(

Toppan cites respect for basic
human rights as a guiding principle in
its CSR procurement guidelines andasks business partners to comply
with the guidelines.

PP. 28, 30)(

Human Rights

Working for equal opportunityand eliminating discrimination

P. 36)

Toppan supports people’s livelihood
mainly through educational cooperationand the donation and supply of money
and goods throughout the world,
especially in developing countries.

Toppan operates dual hotlines
through which both employees andbusiness partners can reporthuman rights issues or violations.

In fiscal 2016 Toppan participated in working groups on due diligence for human rights organized by the Global Compact Network Japan.
Toppan gathered information and held opinion exchanges with other members on respect for basic human rights.

n Female Managerial andSupervisory Staff■ Female supervisory staff■ Female managerial staff(as of April)

348

350

299

300
250

n Number of Recruits

251

233

267

200

226

150
100
50
0

Sales,
administration, etc.
Technical

Regular recruitment of new graduatesfrom high schools and colleges oftechnology

MaleMid-career recruitment of experienced
personnel

52

59

73

81

2014

2015

2016

2017 (year)n Employment of Persons with
Disabilities

Fiscal 2016

Fiscal 2017

88

98

105

Female

50

73

65

Male

102

102

115

Female

40

35

36

Male

5

3

1

Female

21

33

33

306
(36.3%)

344(41.0%)

355(37.7%)

Total number of regular recruits(percentage of women)

192

181

Regular recruitment of new
graduates fromuniversities andgraduate schools

Fiscal 2015

Male

27

56

—

Female29

20—

Recognized in the Health & Productivity “White 500” Category

2015

2016

2017

Employees

247

250

253

Percentage
of total
workforce*

2.10%

2.07%

2.06%

*The percentage is calculated based on the
total number of regular employees (as of June1) as a denominator. The total number waspresented in the Disabled Persons Employment Report in accordance with Article 8 of
the Japanese Law for Employment Promotion,etc. of the Disabled.

Toppan Printing Co., Ltd. was recognized as an outstanding organization engaging in health and productivity management under the
Certified Health and Productivity Management Organization Recognition Program operated by the Japanese Ministry of Economy, Tradeand Industry (METI). METI established this program in 2017 to highlightexcellent enterprises advancing health and productivity management.
The ministry’s aim is to facilitate an environment where these enterprises gain enhanced public recognition for their strategic health andproductivity management practices to safeguard and maintain theiremployees’ health from a management perspective.
Toppan was recognized in the large enterprise category (“White500”) under the program in 2017.

TOPPAN CSR REPORT 201723

Labor Practices
Basic Approach Regarding Human Assets
Toppan values its employees as precious “human assets” andunderstands how deeply it depends on them. From this perspective, the Company supports the motivated, vigorous, andearnest work of the Toppan workforce. The Company keenly
understands the importance of the motivation to take on new
challenges, the drive to work vigorously with a healthy bodyand mind, and an earnest commitment to follow through ontasks to completion. When employees are vigorous, earnest,
and have strong motivation, Toppan is convinced that theirtrue abilities come through in full force.

Labor-Management Partnership
Toppan’s labor union and management respect each other’s
positions as partners with shared ideals. They have been working
together on various issues on an equal footing. Business councils
are convened as Company-wide and operational site forums todiscuss wide-ranging managerial issues. Several special committees are also convened to deliberate pertinent issues of theday. Standing committees meet to discuss longstanding issues
such as working hour reductions, wages, and health and safety.
Individual labor-management committees meet when necessary
to discuss specially designated subjects such as the creation ofa working environment amenable to enhanced job satisfaction.
Toppan has adopted a union shop system. In principle, allnon-managerial employees belong to the labor union as members.

Committing to Health Management
Based on the long-held fundamental concept of respect forpeople, the Toppan Group is active in launching various measures for employee healthcare in cooperation with the Toppan
Group Health Insurance Union.
In October 2015 the Group announced a Health Manage­
ment Declaration to clarify future health management policies
for maintaining and enhancing the health of Group employees.
From a viewpoint of health and productivity management, thisdeclaration visualizes and reorganizes health promotion measures and action plans previously organized by the Group andthe health insurance union independently.
The Health Management Declaration enunciates dual
focuses. The first is to promote enhanced health for employees
and their families through various approaches such as activities
to support work-life balance. The second is to contribute tosociety through health-related businesses that support community health promotion activities around the world.
The Group has also formulated a health management promotion structure by putting the President & Representative
Director in charge of health management and creating a Health

24

TOPPAN CSR REPORT 2017Management Promotion Council. The council engages in constructive arguments on healthcare measures from various
aspects under the direction of representatives from the Groupand health insurance union. The healthcare guidance provided
in the Health Management Handbook for Group employees
illustrates the diverse outputs from the council.
Toppan will develop measures for the health maintenanceand enhancement of Group employees in cooperation withthe labor union, operational sites, clinics, and other organizations instituted in the Group.
n Supporting Work-Life Balance
Senior management, managers, and employees have been
jointly implementing measures to shorten working hours witha view to achieving better work-life balance and maintaining
employee health. They have steadily reduced overtime hours
by adjusting operations within departments and improving
operating effectiveness through reviews of the ways individuals
work and management administrates.
At the ongoing business councils and labor-management committees, labor and management exchange opinions and deliberatemeasures to further shorten overtime working-hours and comply
with the revised Labor Standards Act of Japan. They also analyze
actual overtime practices and review the use of newly introduced working systems. Labor and management at each
operational site have been discussing approaches to create more
accommodating workplace environments that encourage employees to take leave. The measures they have devised and implemented are tailored to the actual working conditions at their sites.
n Efforts to Support Employees with Children
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,
reduced working hours, higher family allowances for dependents, and employee benefits of other forms.
From fiscal 2015 Toppan began paying a full salary for the first
five days of childcare leave taken by male employees, in orderto support employees with children by encouraging the useof the childcare leave system. In fiscal 2016 the eligibility period
for preferential work shifts such as reduced working hours for
employees with childcare responsibilities was extended to the endof a child’s fourth year of elementary school (surpassing the agethree requirement imposed under the applicable Japanese law).
Toppan has also been gradually enhancing the “Hagukumi(nurturing) Program” since fiscal 2012. This program supports
the wellbeing of employee parents by providing therapeutic
activities for parents on childcare leave, activities to share theknow-how necessary for maintaining good balance between
working and raising children, and activities to give employees
in various positions opportunities to learn about and consider
the importance of work-family balance. The Hagukumi
Program received the Minister of State for Gender Equality
Award at the Kids Design Award 2016 in Japan.

n Number of Personnel (as of March 31)
Directors
Fiscal 2014
Fiscal 2015
Fiscal 2016

Management
Supervisors
Class

Total
Employees

AverageTenureAverage
Age

Male

26

1,933

1,826

7,586

15.1

42.6

Female

0

52

180

1,314

9.8

34.0

Male

26

1,989

1,843

7,576

15.4

42.9

Female

0

59

192

1,417

9.8

34.2

Male

18

2,158

1,932

7,930

15.1

43.4

Female

1

71

224

1,621

9.3

34.3

n Reasons for Leaving*1

Dispatched
Staff

8,900

681

112

8,993

562

203

9,551

502

237

Fiscal 2015

204 (48)

184 (39)

Fiscal 2016
206 (54)*2

Retirement

86 ( 5)94 ( 0)85 ( 1)

Requested by thecompany0 ( 0)

0 ( 0)

0 ( 0)

Other

83 ( 0)92 ( 3)83 ( 3)Total

373 (53)

370 (42)374 (58)

4.1%

4.0%

3.8%

*1 The number of female employees who left the Company is shown in­parentheses.
*2 Six female and 26 male employees took advantage of Toppan’s support
system for employees who pursue new careers after leaving the Company.

Fiscal 2014

Fiscal 2015

Fiscal 2016

8.3

8.6

9.6

43.3%

45.1%

50.8%

Average paid leaveused (days)
Average ratio*

3*3 Average ratio = average paid leave used / average paid leave granted

n Employees Taking Maternity or Childcare Leave

n Average Annual SalaryFiscal 2014

Fiscal 2015

Fiscal 2016

Employees taking
maternity leave

81

85

105

136 (3)295 (160)

300 (173)

Fiscal 2014

Fiscal 2015

Fiscal 2016

Employees taking
childcare leave*4

6,647,468 yen

6,697,391 yen

6,956,597 yen*4 The number of male employees who took childcare leave is shown inparentheses.

n Hagukumi (nurturing) Program
A scheme to support the
wellbeing of employee parents

Hagukumi Program

I To provide therapeutic activities for parents on childcare leaveIT o share the know-how necessary for maintaining good­balance between working and raising childrenIT o give employees in various positions opportunities to learn
about and consider the importance of work-family balance

Hagukumi Art Salon

Hagukumi Seminar

Hagukumi Circle(from fiscal 2012)(from fiscal 2013)(from fiscal 2014)IT o strengthen bonds
between parents andchildrenIT o stimulate interaction
among employees
currently on childcareleaveIT o cope with anxieties
about returning to work

To learn and enhance understanding about goodbalance between work andparenting throughout theworkplaceTo build a network of working parent employees whowish to discuss their concerns about work and parenting and share ideas andtips on work-family balance

Labor Practices

Fiscal 2014

Average annual
salaryPart-timeWorkersn Annual Paid Leave Used

Personal reasonsTurnover rate

Sum Total
Employeesn Structure for Health Management
Promotion
Head of health management(President &Representative Director)
Health management
promotion supervisor(Director in charge of personnel
and general affairs departments)
Collaborating in
implementing
measures

Health Management
Promotion Council
Health insurance union andpersonnel and generalaffairs departments at
the head office
Collaborating

General affairs
departments at
operational sites
Toppan Printing
Labour Union
Safety and
Health Committee
Industrial
physicians
Clinics andmedical specialists
Industrial
counselors

Collaborating

Departments
Public relations
involved in healthcare
department
Collaborating
businesses
Detailed information on Toppan’s main leave systems and family benefits is shown in the Toppan CSR Report 2017: Detailed Data posted on the Toppan
website (http://www.toppan.co.jp/english/csr/csrreport.html).

TOPPAN CSR REPORT 201725

n Efforts to Support Employees Bearing Nursing Care
Responsibilities
Toppan’s labor union and management employ systems to help
employees maintain good balance between work and care athome. These systems create an environment where employees
can concentrate on work without worrying about care for family
members at home. By reviewing the results of employee questionnaires on nursing care, Toppan has relaxed the eligibility
requirements for nursing-care-related systems, designed ways
to enable employees to more flexibly adjust their working hours
for care, enhanced financial support during nursing care leave,and provided more information on work-care balance. Alongwith system enhancements in these four areas, the Company
allows care-giving employees to commute to and from workby Shinkansen bullet train in certain cases.

Occupational Health and Safety
Back in 2010, Toppan formulated a Basic Policy on Healthand Safety that enunciated a “safety first” principle as the top
priority in business operations. The Group has been working
to completely eliminate occupational accidents since. Safety
masters, safety engineers (SEs), and other safety experts havebeen deployed to operational sites across Japan to build safety
promotion systems. Toppan has also upgraded the intrinsic
safety of machines and equipment and organized full-fledged
safety education of various types centered around foreman
training. Through these and other safety efforts, the total number of occupational accidents was reduced at Group sites infiscal 2016. Employees, however, were still prone to accidents
in work areas, and the number of accidents requiring leaveincreased. A severe accident regrettably occurred at a Group
company in autumn of 2016.
Toppan will redouble its efforts in safety promotion activities,risk assessment activities, and other safety initiatives and provide
more guidance from safety masters and SEs. The Group willcontinue taking steps to organize education for improved safety
awareness among employees onsite, eliminate prohibited
actions at the workplace, renovate workshops to better accommodate older employees, and pursue various other safetymeasures. Anzen Dojo safety training facilities outfitted to simulate dangers and alert employees at the workplace have been
set up at the Takino Plant in Hyogo Prefecture and Fukuoka
Plant in Fukuoka Prefecture, in addition to the original facility at
the Kawaguchi Plant in Saitama Prefecture. Toppan is planningsimilar initiatives for Group overseas sites in the years to come.

Measures for Mental Healthcare
The maintenance of employee mental health is a keystone for
Toppan to propel corporate activities. The Company defines
a healthy employee as a person sustained by a strong moti-

26

TOPPAN CSR REPORT 2017

vation to take on new challenges, an ambition to work vigorously, and an earnest commitment to follow through on tasks
to completion.
Toppan undertakes various measures to prevent mental
health problems at work. For example, the Company provides
a stress check system and e-learning-based programs to help
employees better perceive and cope with the stresses affecting
them; operates Art Salon, a workshop to refresh employee
minds and bodies through the work of artistic creation; organizes rank-based training and distributes handbooks to preventor promptly detect and treat mental problems; opens counseling rooms where employees can receive advice fromin-house counselors; and concludes advisory agreements withmental healthcare specialists. Employment regulations defining
rehabilitation programs to support employees returning frommental healthcare leave also enable employees to return towork more seamlessly.
Toppan recognizes that the most effective strategy to administer fundamental prevention measures for mental health problems is to enhance job satisfaction by giving employees bettermeans to understand themselves and communicate moreskillfully. The Company has been organizing mental healthcare
programs such as workshops arranged in cooperation withworkplaces.

Developing and Fostering Human Assets
n Concept of Human Asset Development and Fosterage
Mindful of how deeply it depends on its employees, Toppan
fosters individuals with ambition and integrity who will go on
to become the driving force towards the realization of TOPPANVISION 21. Toppan would like to contribute to society as acorporation blessed with human assets with excellent communication skills and heightened awareness and sensibilities.
n Various Programs to Develop Human Assets
Toppan has set up a human asset development platform called
the Toppan University. This platform is striving to foster top leaders while supporting the skill improvement and career enhancement of employees through basic and special programs, aleadership program, and a personal empowerment program.
The Toppan Business School (group training) and Challenge
School (correspondence learning courses), meanwhile, offer
self-development training for employees. A cumulative totalof 9,367 people trained under these programs in fiscal 2016.
Employees also have ready access to basic, Group-wide education via the e-learning system. A cumulative total of 110,293
people took part in e-learning programs in fiscal 2016.
To foster human assets for global business, the Company
operates a trainee system to provide employees with practicaltraining in day-to-day business activities overseas. Eighty
employees have been deployed as trainees under the systemsince fiscal 2011. The selective training on globalization

launched in fiscal 2010 has supported a cumulative total of
585 candidates for overseas assignments. Since fiscal 2012,15 employees have attended advanced short-term open
programs at the International Institute for Management­
Development (IMD) in Lausanne, Switzerland, one of theworld’s top-ranked business schools.
Toppan has been organizing specialized training since 2014

to bolster employee commitment to solving social issues in
Minamisoma City, Fukushima Prefecture, an area seriously
affected by the Great East Japan Earthquake of 2011. Toppan
employees have also worked as Japan Overseas Cooperation
Volunteers for the Japan International Cooperation Agency(JICA) to help address social issues for the international community while developing themselves as individuals.

n The Four Approaches Applied in Toppan’s Employee Support Systems to
Maintain Good Balance between Work and Care at Home

Ways to more
flexibly adjust
working hours for
care

INursing care leave
IReduced working hours for nursing care (reduced working hours,
flexible work schedules, reduced number of prescribed working days
per week)*Nursing care leave and reduced working hours for nursing care can be taken
in installments.
*Employees are allowed to switch between the two systems.
IDays off for nursing care
ICommuting by Shinkansen bullet train for family care reasons

Deaths fromoccupational
accidents
Frequency rate*1
Severity rate*2

2014

2015

2016

0

0

0

0.05

0.05

0.000

0.000

0.001

0.000

*1 Number of occupational accidents requiring employee leave, per million cumulative
actual working hours (reflects the frequencyof occupational accidents)*2 Number of workdays lost as a consequenceof occupational accidents, per thousand
cumulative actual working hours (reflects theseverity of occupational accidents)

Financial support during IAllowance for nursing care leave (40% of the employee’s average wage)
nursing care leave
IEntitlement for paid days off for nursing care

Provision of
information on
work-care balance

ILaunch of a website to provide information on work-care balanceThis site provides employees with general knowledge about work-carebalance and information on support systems available at the Company,
public nursing-care-related systems, and so on.
ILaunch of a nursing-care consultation desk by outside experts
The Company commissions an external professional body to offer unlimited, free-of-charge nursing-care consultation to employees on a contract
basis. Employees can also use fee-based agency services such as
watch-over visits or administrative processes handled by dedicated staff
at care facilities and hospitals.

Fundamental
prevention

Line Care (bymanagers andsupervisors)

Care Using
Care Using
Resources within Resources outside
the Workplace
the Workplace

I Assertion
I Careerdevelopment

I Dialogue skills
ITargetmanagement
IOperational
reform andimprovement

IParticipation in
in-houseseminars

I Selfdevelopment

IAttendance
management
IImprovement of
workplaces

IParticipation in
IParticipation
rank-basedin external
training programs
seminars
IActivities by the
Safety and HealthCommittee

Creation of job
satisfaction

Primary
prevention
Prevention
Stress checksystemSecondary
prevention

Test administration
and understandingof current conditions

Tertiary
prevention
Steps to limit severity
and prevent recurrence

IParticipation inexternal
seminars

Improvement of
workplaces

Interviews andguidance

I Early counselingand consultation

IRecommendation for early
consultation

IConsultation
with industrial
physicians andpublic healthnursesIHospitals andEAP*3

I Ongoingtreatment

IReturn-to-work
program
IPersonnel
reassignment

IPeriodic
interviews byindustrial
physicians

ITreatment by
a generalphysician

Early detectionand early response

Anzen DojoStrengthening the Environment toDevelop Human Assetsn Overview of Mental Healthcare Activities
Self-care

Labor Practices

Eligibility
requirements fornursing-carerelated systems

All eligible members from employee families are in need of long-term care or
support under one of the following conditions:
I“In need of long-term care” as specified in the Child and Family Care
Leave Act of Japan
I“In need of long-term care” as specified in the Long-term Care
Insurance System of Japan
I“In need of support” as specified in the Long-term Care Insurance
System of Japann Occupational Health and Safety*3 Employee assistance program (EAP): The EAP shown above refers to a program of counseling andtraining sessions by an external specialist body under contract with the Company and the Toppan
Group Health Insurance Union.

Toppan has established training centers in
Kawaguchi City, Saitama Prefecture andYugawara Town, Kanagawa Prefecture tonurture human assets. These centers arevenues for various training sessions andinteraction between Toppan personnel.
The Company also operates an education
management system to help employees
enhance their abilities and skills. E-learning
programs are arranged and employees
can review the records on their own training online. Training tools and informationon learning courses are also provided.
Toppan launched the Human Resource
Development Laboratory, a research baseestablished in April 2017 to develop new
personnel training programs that apply
brain and neurosciences. This laboratory
will be used as a platform to design andimplement programs that foster humanassets with excellent communication skills
and heightened sensibilities. The Company
plans to improve individual productivity andfacilitate the individual development of the
Toppan workforce via this platform.

Human Resource Development Laboratory

TOPPAN CSR REPORT 201727

Fair Operating Practices
Disseminating the Conduct Guidelines

Endeavors for Strict Compliance

In June of the year 2000, the centennial of Toppan Printing
Co., Ltd., Toppan established the Conduct Guidelines, a setof normal standards of behavior based on the Corporate
Philosophy and legal compliance (➞P. 31).
In November 2010 Toppan completely revised the guidelines into the Toppan Group Conduct Guidelines, a set ofcommon principles that all Group companies around the world
are required to observe for the assurance of strict compliance.
These Group-wide guidelines are reviewed every year to adjust
to changes in business environments, social conditions, andother circumstances relevant to the Group.

n Training for Conduct Guidelines Promotion Leaders
As in previous years, Toppan held group training for Conduct
Guidelines Promotion Leaders in fiscal 2016. The training wasscheduled in two phases. In the first, 614 Leaders were trainedin 47 sessions across Japan from May to September 2016.
In the second, 523 Leaders were trained in 42 sessions from
November 2016 to March 2017.
The Group devises ways to enhance the effectiveness of training
at the sessions through activities such as group discussions
using case methods describing actual incidents and accidents.

n Conduct Guidelines Promotion Leader System
The Toppan Group operates a Conduct Guidelines Promotion
Leader system. In this system, every Group site assigns a
Conduct Guidelines Promotion Supervisor (the “Supervisor”) andLeaders (the “Leaders”) for disseminating the Conduct Guidelines
and ensuring full guideline compliance. Supervisors and Leaders
implement ongoing activities directly connected with their daily
business operations. Seven hundred and forty-one Leaders were
deployed across the Group in fiscal 2016, including 82 women(11.1% of the Leaders). A cumulative total of 8,322 employees
have worked as Leaders since the system was launched in 2004.
The Leaders organize Conduct Guideline read-throughs, facilitate
discussion using concrete cases, and implement other measuresto activate compliance awareness among their colleagues.
n Tools to Promote the Conduct Guidelines
Toppan gives every employee in Japan a Conduct Guidelines
Casebook, a Q&A style casebook describing situations that
can arise in daily work. The casebook is used in various guideline promotion activities. The Leaders, for example, use it todisseminate the guidelines at their workplaces.
The Group also posts regular Conduct Guideline Notifica­tions
on themes relevant to the guidelines in order to heighten employee
awareness and call attention to compliance-related issues.

Toppan Group Helpline
When an employee discovers a legal violation or improper conduct somewhere in the Toppan Group, he or she is to report
it to his/her superior for deliberation as a basic rule. If theemployee’s superior fails to resolve the problem, the employee
is encouraged to call the Toppan Group Helpline, the Group’s
internal reporting system. The helpline is open for use by all
Group employees, including dispatched staff and part-timeworkers. The Helpline was used in two cases in fiscal 2016,
including one involving power harassment. Both cases were
properly handled and followed up with necessary countermeasures to prevent recurrence.

28

TOPPAN CSR REPORT 2017n Compliance Seminar
In fiscal 2016 Toppan invited an outside lecturer (Mr. Tadashi
Kunihiro, T. Kunihiro & Co. Attorneys-at-Law) to lead a seminaron the theme of “making compliance into a company strength.”
Seven hundred and forty-eight Group personnel attended in
total, mainly directors and managerial staff. A poster with amessage from the management highlighting the importanceof compliance was also produced.
n Compliance with Transaction-related Laws and Regulations
Toppan regularly organizes transaction-related training, andmonitors and audits how business transactions are being handled in Japan. Both activities are key to preventing improper
import and export transactions and ensuring compliance with
the Subcontract Law. In fiscal 2016, a total of 149 employees
participated in group sessions focused on export controls
under the Foreign Exchange and Foreign Trade Act; 1,053
employees were trained on compliance with the subcontract
law; and 8,432 employees took a course on export controls
via the e-learning system. The Group also audited the observance of export controls in 15 departments and compliancewith the subcontract law in 34 departments.
n Anti-Corruption
Toppan participates in the United Nations Global Compact
and conforms to its anti-corruption principle by stipulating the“prohibition of bribery and inappropriate entertainment practices” in the Toppan Group Conduct Guidelines. In fiscal 2016
the Group established a set of anti-bribery rules and formulated a compliance framework led by the Director in chargeof Legal Affairs as the chief anti-bribery manager. Group
employees will be apprised of further intensive actions against
bribery through internal training sessions developed in cooperation with relevant departments.
n Briefing on ComplianceToppan was not involved in any serious incidents or violationsof laws or regulations in the course of business in fiscal 2016.

n Structure to Promote the Conduct Guidelines
President & Representative Director

Director in charge of Conduct Guidelines Promotion
Compliance Department,
Legal Affairs & Intellectual Property Division

Business divisions

Head office divisions

Division heads

Conduct Guidelines
Promotion Supervisor
Senior General Manager ofLegal Affairs &Intellectual Property 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 administrative
departments
Supervisors fromeach department

Conduct Guidelines
Promotion Leadersin sales and planningdepartments
Supervisors fromeach department

Conduct Guidelines
Promotion Leadersin manufacturing
departments
Supervisors or educational
leaders from each department

Conduct Guidelines
Promotion Leaders
Supervisors fromeach department

Employees

Employees

Fair Operating Practicesn Toppan Group Helpline
Communicator

When the problem
remains unresolved

Any Group employee
Reporting andconsultation

Reporting on
progress andresults, follow-up
communication

Superior
Internal reporting(an email or sealed document sentin the name of an employee)

Poster promoting compliance(in Japanese)

Approach to Intellectual Property

ReceiverPresident & Representative Director
or Senior Member of the Audit & Supervisory Board
Toppan Printing Co., Ltd.
Instructions

Lecturer at the compliance seminar

Reporting

Department responsible forinvestigation and countermeasures

Protection and management of intellectual property is a crucial issue for
Toppan, a group of companies operating in the three fields of Information& Communication, Living & Industry, and Electronics. The Group devotes
strict attention to measures to prevent the infringement of copyrights,
trademarks, and other intellectual property rights of third parties whileobtaining patents for its own technologies and business models.
Apart from in-house special training, Toppan holds regular training
sessions for employees of the Toppan Group and its business partners.
Participants in these sessions acquire basic legal knowledge on intellectual property rights by reviewing case histories in design work andother operations involving intellectual property issues within the Group.

TOPPAN CSR REPORT 201729

Promoting CSR Procurement
The Toppan Group implements CSR initiatives in cooperationand collaboration with business partners throughout the entire
supply chain. The Toppan Group CSR Procurement Guidelines
are a set of principles the Group observes to drive thisendeavor. These guidelines consist of the Basic Procurement
Policy, a conceptual framework to be closely observed byevery Toppan employee involved in procurement operations,and the CSR Procurement Standards, a set of requirements
to be satisfied by every business partner. In January 2014 theGroup revised them into guidelines stipulating standards ofaction pertaining to human rights, labor, the environment, andanti-corruption, the four issues globally emphasized in CSR
initiatives. By fiscal 2015 Toppan had briefed 2,068 business
partners on the guidelines. The Group held briefing sessions
for another seven partners in fiscal 2016.
Turning to the environment, the Toppan Group promotes
CSR procurement in line with specific standards such as theStandards for the Management of Chemical Components of
Raw Materials and the Paper Procurement Guidelines for the
Sustainable Use of Forest Resources.

n Verifying the Legality of Lumber as a Paper Material
The Toppan Group promotes the sustainable use of forest
resources by monitoring paper suppliers (business partners)
to ensure that the lumber they use for paper production islegally obtained. The Group surveyed 26 sites of 20 business
partners around the world in fiscal 2016 and confirmed that
all of the procured lumber was obtained legally. In yen terms,
these 26 partner sites supplied 99.6% of the paper used by
Toppan in fiscal 2016.
n Promoting Compliance in Procurement Departments
The Toppan Group regularly monitors whether its procurement
departments operate properly in accordance with the Basic
Procurement Policy in their transactions with business
partners.
The Group asked 10 business partners to fill out questionnaires in fiscal 2016 (a cumulative total of 96 partners since2008) and used the results to improve compliance in procurement operations. Toppan has also set up the Supplier Hotline*,a portal for receiving reports from business partners, on its
website.
*http://www.toppan.co.jp/english/corporateinfo/our_suggestion/supplier_hotline.html

n Toppan Group CSR Procurement Guidelines
Basic Procurement Policy
I We fairly and impartially offer opportunities to all business partners andpotential business partners.
I We comply with domestic and overseas laws and regulations and conduct
fair business transactions based on corporate ethics.
I We strictly control the information obtained through procurement activities.
I We work to conserve the environment and reduce impact on the­environment.
CSR Procurement Standards
1. Basic Procurement Standards
1) Maintenance and improvement of quality
2) Appropriate pricing
3) Stable supply
4) Product safety
5) Management of information
6) Compliance with laws and social norms
7) Fair business activities
8) Protection of and respect for intellectual property rights
9) Protection of people reporting improper conduct
10) Disclosure of information
2. Procurement Standards Concerning Human Rights, Labor, the Environment, and Anti-Corruption
1) Human Rights
	Business partners should respect the human rights of all people related
to their business activities. They should also ensure that their activities
do not infringe human rights directly or indirectly.

I We pursue QCD (Quality, Cost, Delivery) in order to meet the needs of themarket.
I We work to foster mutual cooperation and build relationships of trust withbusiness partners.
I We promote CSR initiatives throughout the entire supply chain.

2) Labor(1) Prohibition of forced labor(2) Prohibition of child labor(3) Non-discrimination(4) Prohibition of harassment(5) Respect for workers’ rights(6) Ensuring occupational health and safety(7) The payment of appropriate wages(8) Management of appropriate working hours(9) Consideration for job security and fulfillment of the obligations of an
employer3) The Environment	Business partners should comply with local environment-related laws
and regulations and work to prevent pollution of the atmosphere, water,and soil. They should also continuously measure and assess the use anddischarge of resources and work to reduce impacts on the environment.
4) Anti-Corruption	Business partners should prohibit and prevent conduct such as bribery,corruption, inappropriate provision or receipt of profits, extortion, andmisappropriation.

30

TOPPAN CSR REPORT 2017

Conduct Guidelines
Basic Principle 1: Respecting basic human rights
1. Recognizing the diverse values of individuals and respecting personal qualities and individuality
2. Prohibition of discrimination of any kind
3. Prohibition of sexual and power harassment
Basic Principle 2: H aving high ethical standards and acting asa responsible member of society
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
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 5: S triving to improve quality and providing creations
that contribute to customer satisfaction
1. Making our best efforts for the customer and building a relationship of trust
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
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: P roactively 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: B uilding trust from society through social
contribution activities and appropriate disclosureof information
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

Fair Operating Practices

Basic Principle 3: C omplying with laws and company rules andconducting fair business operations
Legal compliance1. Prohibition of collusion and cartels
2. Prohibition of improper conduct in dealings with business partner c­ ompanies
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 business
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. 
Appropriate 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 4: Avoiding all links with antisocial groups
1. Prohibition of any dealings with antisocial groups
2. Prohibition of involvement in antisocial activities
3. Prohibition of provision of unjust benefits

Basic Principle 10: B ringing 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

Toppan Group Basic Policy on Information Security
As a group of companies operating in the information communication industry, each of us at the Toppan Group carries out Group-wide information security
management in the recognition that the management of information necessary for business is a significant managerial challenge for us as a means to reciprocate our customers’ trust and promote the ongoing growth of the Toppan Group.
1. We manage information necessary for our business appropriately in observance of our in-house rules, the law, and the principles of social order.
2. We collect information for appropriate purposes using appropriate methods.
3. We safely manage the information entrusted to us by customers in order to reciprocate our customers’ trust.
4. We are deeply aware of the risks to the information assets we handle, such as illegal access, loss, damage, falsification/manipulation, and leakage of information, and take necessary and reasonable safety measures against these risks. We deal with and rectify any problems that occur promptly and in an
appropriate manner.
5. We establish, operate, maintain, and continuously improve information security management systems.
Established on April 1, 2001

Revised on August 1, 2011

TOPPAN CSR REPORT 201731

Consumer Issues
Assuring Product Safety and Quality
Quality assurance for products at the Toppan Group is a concern for every department, not only the departments directly
responsible for production. The departments involved in­marketing, R&D, planning, design, sales, and shipment allcontribute to quality. This is why Toppan describes quality
assurance as a total activity (“total quality assurance”) andstrives to improve product quality and manage product safety
throughout the Group.
n Product Safety
The Toppan Group has established a Basic Stance on Product
Safety Management and Basic Guidelines on Product Safety
Management to secure the safety management of the products it manufactures. Every Group site continues improving
its quality management system (ISO 9001) to bolster productsafety management. Two hundred and twenty employees took
part in training sessions for internal auditors in fiscal 2016.
n Certified Approval System for the Production ofFood Packaging
Food packaging requires exacting quality assurance for safety
and sanitation. The Toppan Group has adopted a certified
approval system to ensure that the operational sites of Toppan
and partner companies can manufacture containers andpackages only after undergoing audits with checklists in­­conformance with the Quality Assurance Guidelines for Food
Packaging. Toppan audited packaging operations for 16 sites
inside and outside the Group in fiscal 2016.
n Reinforcing Food Defense
The Toppan Group has worked to ensure food safety by preventing contamination of food during packaging production
processes. In recent years the Group has been reinforcing fooddefense to secure safety from hazards that can be deliberately
exploited to contaminate food products using toxins or otherharmful substances. The Group refines incoming security
checks, installs more security cameras to monitor food processing operations, deepens communication between management
and employees, strengthens food defense training, and so on.
n Controlling Chemical Substances in Products
The Toppan Group intensively promotes product safety­management in all production processes from raw material
procurement to product shipment by controlling various chemical substances whose use is prohibited or restricted. Whileadhering to green procurement standards prescribed by clientcompanies, the Group has established its own set of Green
Procurement Standards attuned to the features of products
manufactured at plants across its business fields. The Group
controls chemical substances in products throughout theentire supply chain.

32

TOPPAN CSR REPORT 2017

Protecting Consumers by Safeguarding
their Personal Information
Toppan has solidified safeguards to prevent leaks and outflowsof the ever-diversifying forms of personal information handledwithin the Group by restricting the handling of personal information to tightly secured areas that satisfy rigorous criteria for
qualification audits. The Group has also worked for thoroughsecurity control in operation design and quality assurance withsafe, secure systems and processes designed to manage
personal information.
n Monitoring the Handling of Personal Information
In fiscal 2016 Toppan expanded the number of tightly secured
areas to 73 throughout the Group. Toppan’s audit criteria now
include new items associated with the individual i­dentification
numbers recently established under the Social Security and
Tax Number System of Japan. With updated criteria, theToppan Group audits both of the sites that handle individual
identification numbers. Day-to-day inspections are also carriedout across the Group to detect abnormal behaviors throughthe sorting of various operation logs (records) of individual
operators in chronological order.
n Protecting Personal Information against Cyber Attacks
Two specialized organizations are in place at the Toppan Groupto enhance ICT security measures: TOPPAN-CERT (the computer emergency response team) and the anti-virus task force.
In fiscal 2016 Toppan scaled up security drills for defense
against a series of targeted email attacks to cover all Groupsites. The drills sought to heighten awareness on security
dangers among employees and fully inform them of how to
respond effectively to targeted email attacks.
n Completing Internal Training
The Toppan Group promotes awareness of the importance of
information security management through face-to-face grouptraining for each and every employee.
To comply with the amended Act concerning Protection of
Personal Information to be partially enforced in Japan in 2017,
Toppan cataloged various issues facing the Group and provided training sessions for the relevant Group personnel infiscal 2016.
n Enhancing Corporate Value for Customers throughBPO Solutions
The Toppan Group is accelerating business process outsourcing (BPO). Toppan’s BPO business supports a wide range of
operations, including the handling of personal information forcustomers, mainly companies and municipalities, at service
sites such as administration and contact centers. In fiscal 2016
the Group established the BPO Square Asaka as a core basefor next-generation BPO solutions for clients.

n Basic Stance on Product Safety
Managementn Number of Domestic Sites with Tightly Secured Areas Designatedfor the Handling of Personal Information (as of March 31, 2017)

We promote product safety management
throughout the Group by securing safety andimproving the quality of our products based on the
Basic Principles of Conduct Guidelines andthe principles of corporate social responsibility as
a protector of user safety and health.

Hokkaido (4 areas)

Kansai (14 areas)
Chugoku & Shikoku (3 areas)

Tohoku (5 areas)

Kyushu (2 areas)

Kanto (43 areas)n Audits for the Food Filling/Packing
Businesses
Audit Points• Agreements with client companies• Quality assurance systems• Management of equipment and inspection devices• Management of safety and sanitation• Steps to prevent the admixture of different
products• Steps to safeguard against insect infestations• Steps to prevent the admixture of foreign
substances• Steps to prevent the outflow of defective products• Steps to prevent contamination• Traceability• Food defense• Education and training• Maintenance of systems and frameworks for
product safety and quality
Operational Sites Audited
Food filling/packing businesses• 4 sites run by manufacturing subsidiaries• 12 sites run by production business partners

Chubu (2 areas)n Tightly Secured Areas at Toppan Group Companies with
ISO/IEC 27001 Certification (as of March 31, 2017)
I Information & Communication Division, Toppan Printing Co., Ltd.; ICT Infrastructure
Technology Center, ICT Management Division, Toppan Printing Co., Ltd.; Toppan
Communication Products Co., Ltd.; Toppan Joho Kako Co., Ltd.
*The “TOPICA server hosting service,” a service certified from December 2001, wasintegrated into the coverage for the above certification on February 17, 2017.
I Kyushu, Chugoku & Shikoku Team and ISMS Promotion Committee, Information
Security Management, Nishinihon Division, Toppan Printing Co., Ltd.
I Kansai Production Department, Toppan Graphic Communications Co., Ltd.
I Higashinihon Division, Toppan Printing Co., Ltd.
I Takino Plant, Toppan Communication Products Co., Ltd.; Takino Manufacturing
Department, Toppan Joho Kako Co., Ltd.; Production Technology Team, Technology,
Kansai Information & Communication Subdivision, Toppan Printing Co., Ltd.

n BPO Bases across Japan
Honjo

Anti-virus
Task ForceTOPPAN-CERT

Hamura(Tokyo)I Investigate and take action
I Expedite the creation ofan environment that iswhen an incident occurs
both virus-resistant and
I Collect and analyze exterInformation
rigorously protected bynal information (vulnerability
exchange
virus shields
information, security trends,
I Respond to virus-relatedetc.) and report the results
incidents and issues
to related departments Coordination
using anti-virus software
across the GroupI Exchange information andcoordinate with computer
security incident response
teams outside the Group

Cyber attacks(Tokyo)Hiroshima

Fukuoka

BPO
SquareAsaka

Takino(Hyogo)Sakado(Saitama)

Consumer Issues

n Protecting Personal Information against Cyber Attacks

SapporoSendai

NagoyaOsaka

Monitor and protect computer systems with
two specialized organizations to defend against
cyber attacks and other security threats
Viruses

Toppan Group ICT Environment
Internal systems

Systems forclient companies

PlantsTOPPAN CSR REPORT 201733

Universal Design Initiatives

Contributing to Sustainable Consumption

Universal design (UD) is one of the primary corporate social
responsibilities for Toppan, a group of companies that havebeen designing and producing attractive, easy-to-use packaging and communication tools for as many people as possible. In keeping with the Toppan Declaration on Universal
Design and Toppan’s Seven Principles on Universal Design,
the Group promotes UD initiatives that assign greater weight
to sensory values and customization while also emphasizing
functions such as understandability and usability.

The Toppan Group markets environmentally friendly products and services designed to contribute to sustainableconsumption.

http://www.toppan.co.jp/ud/ (in Japanese)n Examples of UD Initiatives
Toppan Printing Co., Ltd. has been working with Mirairo Inc.
since fiscal 2015 in a business alliance to distribute a Universal
Manners Test (operated by the Japan Universal Manners
Association) and offer consultations to client companies whoseek to develop products and services that accommodate theviewpoints of persons with disabilities and the elderly. Morethan 280 Group employees have passed the Universal
Manners Test Grades 2 and 3 as of April 2017. In August 2016
Toppan invited Toshiya Kakiuchi, President of Mirairo Inc., tohost an employee seminar entitled “‘Barrier Value’ for the
future: UD for a 40-million-consumer market.” Toppan also
held similar seminars at Group-produced exhibitions at customer sites to facilitate enhanced awareness on the significance of universal manners. Beyond these educational
activities, the Group is working to offer society proposals andproduct development focused on universal manners.
In the realm of food packaging, S & B Foods Inc., PIJIN
Co., Ltd., and Toppan Printing Co., Ltd. received the 41st
Kinoshita Prize in Packaging Technology for the “Meisho(craftsman) Series,” a lineup of tube spice products sold by
S & B Foods. This award is organized by the Japan Packaging
Institute (JPI). Packages of the Meisho Series are printed withQR Codes* to direct consumers to product information in anyof four languages: English, Chinese, Korean, or Japa­nese. A
quick scan of the code with a smartphone a­utomatically
retrieves the information in the same language set for thephone. With this multilingual packaging provided by PIJIN and
Toppan, food manufacturers in Japan can use their products
to deliver information on traditional Japanese food culture in
multiple languages.
*QR Code is a trademark of DENSO WAVE Incorporated.

34

TOPPAN CSR REPORT 2017n EP-PAK Fold & Tear: Paper Container Easily­Disassembled after Use
Toppan’s paper-based liquid container, EP-PAK Fold & Tear,
won the Chairperson’s Award from the Eco-Products Awards
Steering Committee at the 13th eco products awards in 2016.
The container is easily broken down for recycling after use.
The original EP-PAK with Toppan’s unique spout preserves
liquid content with outstanding reliability, enabling long-term
storage at room temperature. Segregation of used cartons for
disposal, however, has been hampered by EP-PAK’s toughbody and tightly sealed structure. The properties most requisite for preserving the quality of packed liquids have posed
challenges in the recycling process.
EP-PAK Fold & Tear offers improved recyclability while
retaining the advantages of the original EP-PAK. The container
can now be easily separated into two halves by hand by foldingback and forth along the perforated line formed on the upper
portion with the spout. The Eco-Products Awards Steering
Committee recognized this highly recyclable EP-PAK Fold &Tear as a product designed in anticipation of the coming­sustainable society.
n Quantifying CO2 Emissions Associated with Eventsand Applying for Carbon Offset Certifications by
Proxy to Help Clients Mitigate Global Warming
Toppan methods for carbon footprint of products (CFP)
assessments are now employed to quantify CO2-equivalentgreenhouse gas (GHG) emissions and prepare applications
for carbon offset certifications associated with events. The
scope of this quantification and application service previously
covered products and services, but not events. The Grouphas developed a unique approach to quantifying GHG emissions associated with events, covering difficult-to-quantify
emissions associated with the movement of participants. The
service adopting this approach was applied to educational
events for Group employees in model cases before being provided to clients. Toppan purchased a carbon-absorption credit
from forests owned by Kumamoto Prefecture to offset GHG
emissions at the events and support the recovery of Kumamoto
from the earthquake disaster of April 2016. Toppan’s carbon
offsetting services now extend beyond printed materials to theuse of various other means to help advance activities to mitigate global warming.
In fiscal 2016 Toppan conducted CFP quantifications on
the CO2-equivalent GHG emissions of 14 products and services and applied for carbon offset certifications for eight
products and services, including a quantification and certification for the educational events described above.

n Toppan’s Seven Principles on Universal Design
1. Design products and services that are more responsive to people withdifferent physical abilities and perceptions.
2. Facilitate communication using multiple channels for communication,
including visual, aural, and tactile channels.
3. Make products easier to use by making them easier to understand.
4. Make products that are easier to move, easier to approach, andrequire less strength (remove the physical 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 requiredby society.
7. Engage in design that appeals to the senses with consideration for
comfort, enjoyment, and beauty.
Established in 2001

Revised in April 2010

No scissors!
Can be separated
by hand
Simulation of the experience of the elderlyin the Universal Manners Test

Multilingual packages for Meisho Series
tube spice products

EP-PAK Fold & Tearn Framework for CFP and Carbon Offsetting

Carbon Footprint of Products (CFP)
Quantify CO2-equivalent greenhouse gas (GHG)
emissions throughout the entire life cycle ( – ) ofa product and display the CFP data on printed materials

shop

brochure

Raw material
procurement

Production

Distribution

Use andmaintenancecollection
box

Consumer Issues

brochures

Disposal andrecycling

Carbon Offsetting
Partially or completely “offsetting” difficult-to-reduce
GHG emissions with equivalent credits (GHG-emission reduction values
and/or GHG absorption values) earned elsewhere.

TOPPAN CSR REPORT 201735

Community Involvement and Development
Community Contribution and Involvement
The Toppan Group has supported the communities in which
it operates by addressing local issues and contributing to sustainable development. Domestic and overseas sites in theGroup have engaged in contribution activities forged throughdialogues with neighboring communities. Their dialogue issustained through manifold activities, including collaborative
works in organizations that bring together the opinions of community members.
n Dialogues with Communities
Toppan sites take part in the meetings and activities of various
community organizations. Group sites have shaped businessactivities and community contribution activities by soundingout opinions from their communities. Conferences are also
held at the sites to inform neighborhoods of production operations and environmental initiatives, to answer questions from
community members, and to elicit opinions. The Group sites
also offer local residents facilities such as meeting rooms andplaygrounds.
In fiscal 2016 an operational site in Meiwa Town, Gunma
Prefecture invited students from neighboring elementary
schools on plant tours to learn about the packaging manufacturing process and participate in a tree-planting event
organized by the Meiwa workforce. Toppan personnel engaged
in productive exchanges with the local residents and wereasked to arrange similar meetings in the future.
n Fostering Future Generations and Contributing to
Education
Many operational sites at the Toppan Group organize programs to foster the children and young people who one day
will be sustaining society and communities. Japanese sites
arrange various activities such as plant tours, work experience
programs, internships, and off-site lectures.
Group sites in Bunkyo and Itabashi Cities within Tokyo
cooperate with local elementary schools by organizing the“Printing School,” a workshop class where students create
guidebooks to promote the shopping districts in their towns.
Younger employees from Toppan lecture on efficient methods
to mine and edit data. The students learn more about work-­
oriented mindsets by interviewing shopkeepers and gain
­exposure to the challenges of phrase-making and persuasive
expression in their work by editing the guidebook content. The
guidebooks are published and delivered in and around the
local shopping streets. The Printing School workshop received
the Kids Design Association (KDA) Chairman’s Award at the10th Kids Design Award sponsored by Japanese non-profit
organization KDA.
Toppan Printing Co., Ltd. has worked for many years
with the Japan School Library Association and The Mainichi
Newspapers Co., Ltd. as a cosponsor of the Central Contest

36

TOPPAN CSR REPORT 2017

for Book Report Drawings, an annual contest that cultivates
the reading and creative skills of children by encouraging themto express their impressions of books by drawing. The judgesof the 28th competition in 2016 received 701,239 picture
entries from 6,955 schools. Toppan produced and distributed
a calendar decorated with the prize-winning works to schools
and other educational facilities across Japan. The schools of
the prize-winning students also received replicas of famous
Japanese-style paintings produced with Toppan’s technology.
A Group company called Froebel-Kan Co., Ltd. operates
the Froebel Kodomo Plaza, a space for preschool-aged children to enjoy. Froebel-Kan facilitates communication in thecommunity by providing the Plaza as a secure space wherechildren can play freely in safety.
n Employment Support
Toppan Group sites organize workplace-training programs
across Japan to give students working experience and help
them cultivate working values. A site in Osaka City arrangeda program for computer science students from vocational
technical schools in fiscal 2016. The workshop encouraged
students to explore the possibility of working in the printing
industry by considering their own occupational aptitudes andfuture career trajectories.

Cooperating with International
Communities to Address Social Issues
Convinced that cooperative solutions to global issues are vitalfor its community contribution activities, Toppan has beenorganizing the Toppan Charity Concert series since fiscal 2007.
This series aims to support global initiatives to raise literacy
rates in developing countries. Literacy is the ability to read,
write, and calculate with proficiency sufficient to function wellin daily life.
Upon completing the 10th Toppan Charity Concert series
in fiscal 2016, Toppan had donated an accumulated total of
21,332,183 yen to the Office of the United Nations HighCommissioner for Refugees and the Asia-Pacific Cultural
Centre for UNESCO (ACCU). The funds provided to the
ACCU have been used for literacy education and classes onmaternal and child health for mothers raising young children
in Cambodia. From fiscal 2015, Toppan has been inviting­personnel from a Cambodian NGO working on the literacy
initiative to greet the concert audiences and engage in discussion on the operation of the classes in the years to come.
A Toppan site in Thailand, meanwhile, contributed funds
to an organization operating support projects for HIV carriers.

Traffic safety campaign (Niigata)

Plant tour for elementary school students(Gunma)Local portable shrines on display in the site lobby(Tokyo)Printing School for students from elementary
schools, a workshop class to make guidebooks
for local shopping streets (Tokyo)

Award certificate received for the Printing Schoolat the 10th Kids Design Award (Tokyo)

Central Contest for Book Report Drawings

Calendar with pictures expressing impressions ofbooks

Froebel Kodomo Plaza (Tokyo)

The TSUKEMEN trio at the Toppan Charity
ConcertDiscussion with Cambodian NGO members

Contribution to support projects for HIV carriers(Thailand)

Community Involvement
and Development

Cleanup around the site (Hokkaido)

TOPPAN CSR REPORT 201737

The Environment
Toppan’s Environmental Activities
n Four Environmental Activity Areas
The Toppan Group promotes environmental initiatives basedon The Toppan Group Declaration on the Global Environment,a basic philosophy for the environmental conservation activitiesof the Group.
Toppan’s environmental activities are divided into fourareas—Environmental Management, Eco-protection, Ecocreativity, and Environmental Communication. The Group
enacted a set of five bylaws to strengthen the Eco-protection
Activities performed to minimize environmental burden associated with the Group’s corporate operations: the Bylaw on
Global Warming Mitigation, the Bylaw on the Building of a
Recycling-oriented Society, the Bylaw on Chemical SubstanceManagement, the Bylaw on Pollution Control, and the Bylaw
on Biodiversity. The Toppan Group has taken steps to conserve the global environment in each of the areas based on
the five bylaws.
The Toppan Group Declarationon the Global 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.
Basic Principles
1. We observe all laws, regulations and in-company rules relating to
the environment.
2. For the future of the Earth, we strive for the effective utilization oflimited resources and the reduction of all types of environmental
burden.
3. W ith foresight, we promote the development and widespread useof products that show consideration for the environment, andcontribute to the environmental activities of customers.
4. We engage in communication related to the environment with awide range of peoples both inside and outside the company, andstrive for mutual understanding.
5. We also take a proactive approach to environmental conservationin corporate activities in international society.
Established in April 1992
Revised in April 2009

Environmental Management Activities
n Operating Environmental Management Systems
The Toppan Group operates established environmental management systems based on its environmental management rules.
Fifty-eight Group sites in Japan undertake environmental
activities to achieve the targets set under the Eco-protection
Activity Plan. The Ecology Center collects environmental­performance data as the organization responsible for overseeing the Group’s environmental activities. The center then

38

TOPPAN CSR REPORT 2017

evaluates and verifies the data and reports the results to theBoard of Directors and other management bodies. Points ofimprovement for the continuous upgrading of environmental
management are proposed and implemented throughout theentire Group.
The 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. Toppan underwent­management system audits for 39 systems and carried out
internal audits at the 58 sites in fiscal 2016. Necessary procedures were taken to correct the deficiencies pointed out
during the audits.
n Improving Environmental Literacy
The Toppan Group implements various measures to improvethe environmental literacy of its employees based on social
trends related to the environment, priority topics for year-by-year
environmental activities, and other environment-related issues.
In fiscal 2016 Toppan held sessions for rank-based training,
optional training, and internal auditor training, along withGroup-wide e-learning-based training. Ongoing group training
in rank-based education is arranged in conjunction withe-learning programs focused on Eco-creativity Activities for
employees in sales departments.
n Calculating Scope 3 Emissions
The Toppan Group calculated its scope 3 emissions (entire
value chain greenhouse gas [GHG] emissions) in fiscal 2016
to identify the categories of corporate activity that represented
larger sources of GHG emissions and to establish priority­targets in its emission reduction strategy. This calculation
showed that category 1 (manufacturing of products purchasedby Toppan), categories 4 and 9 (transportation and distributionof products purchased and sold by Toppan), category 12 (endof-life treatment of products sold by Toppan), and other­categories related to raw material consumption collectively
accounted for the largest share of the Group’s GHG
emissions.
The Toppan Group will continue monitoring and evaluating
GHG emissions across the value chain and work to reduce
environmental burden incurred throughout the life cycle andproduction process of every product.
n Readjusting the Environmental Targets for Fiscal 2020
Through intensive measures undertaken up to fiscal 2015, theToppan Group’s medium-and-long-term environmental targets
for reducing CO2 emissions and final landfill waste disposal
were achieved five years in advance of the 2020 deadline. The
previous targets were a 20% reduction of CO2 emissions compared to the fiscal 2008 level and an 87% reduction of final
landfill waste disposal. The Group is now pursuing the newgoals of reducing CO2 emissions by 30% and final landfill
waste disposal by 95% compared with fiscal 2008.

n Medium-and-long-term Environmental Targets for Fiscal 2020
Mitigation of global warming

Action for buildinga recycling-oriented society

Conservation of theatmospheric environment

I Reduce CO2 emissions by 30%
compared to the fiscal 2008 level(751 kilotons 530 kilotons: –221 kilotons)IR educe final landfill waste disposal by
95% compared to the fiscal 2008 level(1,584 tons 80 tons: –1,504 tons)IR educe VOC emissions into theatmosphere by 70% compared to
the fiscal 2008 level(7,326 tons 2,198 tons: –5,128 tons)n Values, Results, and Evaluation of Environmental Targets for Fiscal 2016 andEnvironmental Target Values for Fiscal 2017
Fiscal 2016

Management
Indicators

Environmental Targets

Achievement
Evaluation
Rates

Environmental
Target Values for
Fiscal 2017

TargetValuesResults

550
kilotons

561
kilotons

98.1%

B

550 kilotons

 itigation of globalMwarming

I Reduce CO2 emissions

I CO2 emissions

Action for buildinga recycling-oriented societyIR educe final landfill
waste disposalIF inal landfill waste
disposal

130
tons

97
tons

125.6%

S

100 tons

Conservation of theatmospheric environmentIR educe VOC emissions
into the atmosphereIV OC emissions into
the atmosphere

3,400
tons

3,403
tons

99.9%

B

3,200 tons

Evaluation criteria: S, Results achieved far surpass the targets (achievement rate [%] 105); A, Targets achieved (100 achievement rate [%] < 105);
B, Activities fully carried out, but targets unachieved (70 achievement rate [%] < 100); C, Activities insufficient (achievement rate [%] < 70)
Achievement rates: 200 – (values actually achieved / target values) × 100 [%]n Calculating Scope 3 Emissionsn Scope 1-3 Greenhouse Gas
Emissions

Scope 3
I Extraction of raw materials

Othercategories*
Category
12

Scope 2
Suppliers, etc.
I Production of raw
materials, etc.

Category
9
Category
4

I Consumption ofelectricity supplied by entities
outside the reporting company
I Consumption of heating andcooling supplied by entities
outside the reporting
company

3,826
kilotons

Scope 1I Transportation anddistribution of raw
materials, etc.

3,878
kilotons

Scope 3Category
1

The reporting
company itself
I Fuel combustion
I Emissions from industrial
processes

I Employee commuting
I Sales activities, businesstravelI End-of-life treatmentof sold products andgoods
Scope 2355
kilotons

345
kilotons

209
kilotons Fiscal 2015

I Transportation anddistribution of soldproducts and goods

Users of products
and goods
I Use of sold products
and goods

Fiscal 2016

206
kilotons*Categories 2, 3, 5, 6, 7, 8

TOPPAN CSR REPORT 2017

The Environment

Scope 139

Toppan’s Environmental Burden andEnvironmental Impact
The Toppan Group applies the LIME* life-cycle assessment(LCA) method to consolidate INPUT and OUTPUT data on
environmental burden associated with business activities intoa single index of environmental impact.
This assessment provides a holistic view of the environmental impact of all of the Group’s business activities as abenchmark for establishing medium-and-long-term environmental targets and checking the effectiveness of environmental
measures. Toppan has managed to reduce its environmental
impact every year through the ongoing Eco-protection
Activities. In fiscal 2016 the Group attained a 42% reduction
compared to the fiscal 2006 level.
Toppan Printing Co., Ltd. received the Encouragement
Prize from the Life Cycle Assessment Society of Japan (JLCA)
at the 13th LCA Society of Japan Awards held in fiscal 2016.
The JLCA Awards commend companies, organizations, andresearchers who make intensive efforts in applying LCAs to
reduce environmental burden. This was the second prize
Toppan has received from the society, following the JLCA
Chairman’s Award in fiscal 2012. The JLCA awarded Toppan
mainly in recognition of three points: first, comprehensive environmental activities based on solid LIME-based quantificationsof environmental impact associated with the Company’s overalln Types of Environmental Impact by Business Field
100%
Other

Other

Photochemical
oxidants

80%

Environmental impact

Other

60%
GlobalwarmingGlobalwarmingGlobalwarming

40%

20%

Resource
consumption

Resource
consumption

Resource
consumption

Information &Communication

Living & Industry

Electronics

0%

Note: Every business field shows comparatively high global warming effects
from energy consumption for electricity used for power and air-conditioning and for natural gas used for heat sources. The Living &Industry field shows significant impacts from photochemical oxidants,
pollutants formed by reactions between sunlight and VOCs released
into the atmosphere. The Toppan Group includes these indicators
among medium-and-long-term environmental targets and has taken
steps to reduce environmental impacts of these types.

40

TOPPAN CSR REPORT 2017business operations, along with assurances of the effectiveness of the activities; second, prolonged initiatives significantly
reducing the Company’s environmental impact over the previous 10 years, along with assertive disclosure of the resultsof the initiatives; and third, environmental assessments of
the Company’s new plants, intensive environmental impact
assessments applying various schemes such as a water footprint (WFP) measurement, and efforts to enhance the availability of lumber from forest-thinning operations.
*Life-cycle Impact assessment Method based on Endpoint modeling(LIME): A version of the damage-oriented environmental impact assessment method adjusted for application in Japan based on the domestic
environmental background. Damage derived from impact categories isquantified for each part of the environment to be protected (e.g., humanhealth, biodiversity). Once the damage is quantified, the environmental
impacts of multiple factors are integrated into a single index.

Eco-protection Activities
n Mitigating Global Warming and Saving Energy
The Toppan Group has been reducing total emissions of­carbon dioxide (CO2) to help mitigate global warming.
In fiscal 2016 Toppan controlled peak power demand insummer using the nationwide demand-monitoring system theGroup operates in Japan. The head office set targets for power
demand values in January 2016 to enable individual sites tocontrol electricity consumption year round through energy-­saving measures. To reduce unnecessary or nonessential useof electricity, the Group has redressed demand-and-supply
imbalances and suspended the use of any equipment thatstays running continuously during vacations.
Toppan also attained a significant energy-saving effect by rearranging the air piping at the Ranzan Plant in Saitama Prefecture.
In spite of these efforts, rising production volumes pushed
the Group’s CO2 emissions up to 561 kilotons in fiscal 2016,a level higher than the targeted limit of 550 kilotons for theyear. The Toppan Group will bolster energy-saving activities
to unfailingly achieve the target in the years to come.
n Improving Transport Efficiency in Logistics
Toppan Logistics Co., Ltd., the logistics specialist for the
Toppan Group, is working with shippers from Toppan Group
companies to reduce the energy consumption per unit oftransport volume by company vehicles and the total volumeof CO2 emissions from transport.
Energy consumption per unit of transport volume in fiscal
2016 was 58.73 kL/million ton-kilometers, a 0.2% reduction
from fiscal 2015, missing the year-by-year reduction target of
1% prescribed by the Act on the Rational Use of Energy ofJapan. CO2 emissions, meanwhile, totaled 34,611 tons, a
3.2% increase from the fiscal 2015 level.
Toppan Logistics will work to accomplish the targets forfiscal 2017 by optimizing transportation conditions and further
improving transportation efficiency.

n Major Types of Environmental Burden by Business Field in Japan (INPUT/OUTPUT data)

INPUT
Material Input

Total Energy Consumption

Information &Communication
714,652 (57.4%)

Information &Communication
3,209 (25.0%)

Living & Industry
504,542 (40.5%)

Total Water Consumption

Total PRTR Handling

Living & Industry
5,527 (43.0%)

Information &Communication
775 (11.6%)
Living & Industry
1,557 (23.2%)

Information &Communication
398 (9.0%)
Living & Industry
1,942 (43.9%)

Electronics
25,661 (2.1%)

Electronics
3,490 (27.2%)

Electronics
4,029 (60.1%)

Electronics
2,083 (47.1%)

Non-production sites
0 (0%)

Non-production sites
616 (4.8%)

Non-production sites
338 (5.1%)

Non-production sites
2 (0.0%)Total 1,244,854 (Unit: tons)

Total 12,842 (Unit: 1,000 GJ)

Total 6,699 (Unit: 1,000 m3)

Total 4,424 (Unit: tons)

CO2 Emissions

Total Effluent Discharge

Total PRTR Release

OUTPUT
Total Waste Discharge
Information &Communication
106,025 (46.6%)

Information &Communication
420 (8.2%)

Information &Communication
28 (19.6%)

Living & Industry
101,011 (44.4%)

Information &Communication
135,896 (24.2%)
Living & Industry
259,470 (46.3%)

Living & Industry
872 (17.0%)

Living & Industry
111 (78.7%)

Electronics
16,731 (7.4%)

Electronics
140,285 (25.0%)

Electronics
3,525 (68.9%)

Electronics
2 (1.3%)

Non-production sites
3,806 (1.7%)

Non-production sites
24,879 (4.4%)

Non-production sites
302 (5.9%)

Non-production sites
0 (0.4%)

Total 227,573 (Unit: tons)

Total 560,530 (Unit: t-CO2)

Total 5,119 (Unit: 1,000 m3)

Total 142 (Unit: tons)

Notes: I E
 nergy consumption associated with fuel consumption is calculated using the conversion factor specified in the year 2000 amendment of the Act on
the Rational Use of Energy of Japan. The primary energy input associated with electricity consumption is calculated uniformly as 0.00983 GJ/kWh.
Some of the material inputs are calculated from estimated values based on production values.
I “ Waste” in this report includes industrial waste of no value and waste materials of value sold or transferred as resources (both generated in association
with business activities).
IT otal energy consumption is the quantity of electricity and fuels consumed.
IT otal values may not exactly match the sum totals of individual values, as decimals are rounded up or down.

n CO2 Emissions(1,000 t-CO2)
1,000
750

751
593

500

554

561

2015

2016 (fiscal year)

250
0
2008

2014

Note:	CO2 emissions are calculated by the method specified in the Guidelines for Calculating Greenhouse Gas Emissions from Businesses(2003) issued by 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 2016 totaled 685,303t-CO2 when calculated using the effective emission factor from another MOE method
specified in the Ministerial Ordinance Concerning the Calculation ofGreenhouse Gas Emissions from Business Activities of Specified
Dischargers (the latest amendment on April 30, 2015).

The Environment

JLCA Awards

Air piping rearrangement (Ranzan Plant)

LED lights installed on high ceilings (Satte Plant)

TOPPAN CSR REPORT 201741

n Building a Recycling-oriented Society
In a drive to use limited resources more effectively, the Toppan
Group works to reduce the discharge of waste, increase
the recycling rate, and apply appropriate waste treatment
methods.
Waste paper derived from operational sites primarily in the
Information & Communication and Living & Industry fields
makes up the largest portion (73.3%) of the total waste discharged at Group sites. This is followed by waste plastics fromplants in the Living & Industry field and waste acid from theElectronics field. The Group has striven to increase the material
recycling rate by processing waste paper into recycled paper,
separating waste plastics and processing composite plastics
into pellets, and implementing other recycling methods. Waste
acid, meanwhile, has been treated in-house to lower volumes
for disposal. These measures reduced the final landfill waste
disposal in fiscal 2016 to 97 tons.
The Toppan Group will continue reducing waste discharge
and promoting material recycling.
n Preventing Pollution
The Eco-protection Promotion Committee at each Group sitein Japan sets in-house control standards more stringently than
the regulatory standards require. By complying with thesestandards, the Toppan Group works to reduce environmental
burden and prevent pollution.
To prevent atmospheric pollution, the Group controls boilers
and other plant facilities responsible for air pollutants by­managing operations under appropriate combustion conditions. The Group enhances the efficiency of effluent-gas treatment in plant facilities subject to requirements under the Air
Pollution Control Act by reusing recovered solvents and precisely controlling combustion facilities. While toluene emissions
into the atmosphere remained almost unchanged in fiscal
2016, atmospheric VOC emissions were reduced from thefiscal 2015 level.
To prevent water pollution, the Group has installed wastewater treatment facilities designed to cope with specific water
consumption and pollutant conditions at individual sites.
Wastewater recycling systems have also been installed atElectronics plants that discharge effluents in significant
amounts. By recovering and reusing wastewater via thesesystems, the plants have been working to reduce the levelsof water consumption and effluent discharge.
The Toppan Group also checks plant facilities subject tothe Water Pollution Control Law in compliance with the regulatory regime for facility structures. The Group will monitor
every facility, including those not subject to the law, to prevent
groundwater pollution caused by the leakage of chemicals
and other liquids. Any equipment or components with undue
wear will be replaced.

42

TOPPAN CSR REPORT 2017n Controlling Chemical Substances
The Toppan Group has striven to reduce the consumption ofchemical substances in order to mitigate the impacts of thesesubstances on the environment. The Group continues reducing the consumption of chemical substances designated under
the Pollutant Release and Transfer Register (PRTR) law ofJapan and introducing safer substitutes by setting priorities interms of both the type and range of application. In spite ofthese measures, the rise in production volumes in fiscal 2016
increased the amount of PRTR-designated chemical substances handled by the Group by 13% compared to the fiscal
2015 level.
Group production sites have also been appropriately controlling chemical substances based on established management procedures.
n Controlling Water Risk
The Toppan Group conserves water resources by operating
wastewater recycling systems to recover and reuse wastewater at Electronics plants that discharge effluents in significant
amounts. The Group also monitors the amounts of water consumed in office buildings, welfare facilities, cafeterias, andother premises to reduce the levels of water consumption andeffluent discharge. Through these efforts, water consumption
per unit of sales totaled 7.59 m3/million yen in fiscal 2016.
n Approach to Environmental ComplianceToppan used its in-house environmental database for Groupsites in Japan to identify any risk of exceeding the limits stipulated under laws, ordinances, agreements, and other applicable regulations in fiscal 2016. Preventive measures against
unduly high risks were taken to ensure that none of the regulatory limits would be broached. As a consequence, no excessive levels relative to the regulatory standards were recorded
throughout the Group in fiscal 2016. As a preventive action
against environmental pollution, the Group also reviews drills
for coping with potential emergencies and accidents during
production operations whenever necessary.
Communities around Toppan plants filed three complaints
at three sites in fiscal 2016. Two involved noise and the other
involved inconvenience to community members related toodor. The Group has responded by reviewing the operationalrules for plant facilities responsible for noise and instituting astricter regime for maintaining and inspecting facilities. To
control odor, the Group has reinforced maintenance and­inspection procedures for deodorizing equipment. Toppan
will continue enhancing the quality of environmental management through earnest dialogue with residents in surrounding
communities.

n VOC and Toluene Emissions into the Atmosphere*1n Total Waste Discharge andFinal Landfill Waste Disposal(1,000 tons)
350(tons)(1,000 tons)■ Total waste discharge (left axis)■ Final landfill waste disposal (right axis)

280

242.2

231.1

227.6

140
70

0.4
2008

2014

1.5

5,000

1.0

2,500

0.5

0.2

0.1

0
2015

100
95
90

93.0

99.6

99.7

91.8

162

126

128

2008

2014

2015

2016
(fiscal year)

n Chemical Substances Designated under the PRTR Law*2(tons)

99.7

90.8

1,500

0

0
2015

Total transfer

Total release

4,463

3,917

4,424

3,000

80

2014

Total handling

6,000

85

2008

3,403

362

4,500

92.4

3,684

*1 Emissions into the atmosphere are calculated in conformance with thestandards established by the Japan Federation of Printing Industries(JFPI) and the Japan Electronics and Information Technology Industries
Association (JEITA).

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

98.8

3,935

0

0

2016 (fiscal year)n Recycling Rate and Material Recycling Rate(%)

7,500 7,326

2.0

1.6

Toluene

2.5

313.8

210

VOCs

10,0002016 (fiscal year)

1,654

1,402

1,895

185

139

142

2014

2015

2016 (fiscal year)*2 Dioxins are excluded because of a difference in the calculation unit.

n Purification of Soil and Groundwater Pollution
Operational Site

Current Progress*3

DetailItabashi Plant (Itabashi City, Tokyo)

Groundwater pollution by hexavalent chromium and toluene

Continuously monitored

Niigata Plant (Shibata City, Niigata)

Soil pollution by fluorine and fluorine compounds

Continuously monitoredn Soil Pollution Remediation for Redevelopment in Conformance with Applicable Laws, Regulations, and Ordinances
Operational Site
Itami Plant (Itami City, Hyogo)

Chemical Substances Subject to Remediation
Lead, fluorine and fluorine compounds

Remediation Measures
Excavation and removal

Current Progress*3
Remediation partially completed*3 As of March 2017

The Environment

TOPPAN CSR REPORT 201743

n Promoting the Conservation of Biodiversity
Biodiversity Conservation at Operational Sites
The Fukaya Plant in Saitama Prefecture has promoted biodiversity conservation within its premises in collaboration with
the Environmental NPO “SHU” since fiscal 2012. The NPO andplant worked together in the 9-10th phases of their wildlife-­
support project in fiscal 2016. Children participating in summer
learned about diverse forms and shapes of leaves gatheredfrom the woods by tracing the contours of the leaves and thenstamping the outlines on fabric in various colors to make­“stencil towels.” In the following winter, participants cleaned
up birdhouses for woodpeckers and Japanese Tits and­surveyed the nesting rate at birdhouses installed a year earlier.
A high rate of about 80% was confirmed.
Recognizing these conservation activities at the plant, theAssociation for Business Innovation in harmony with Nature
and Community (ABINC) commended the Fukaya Plant withan Excellent Prize, the top prize awarded at the 1st ABINC
Awards in 2016. Employees at the Fukaya Plant commemorated the achievement by planting spiketail seeds and seedlings taken from the northern Tone River basin.
Personnel from a site in Nagoya, Aichi Prefecture also
planted orange seedlings obtained from Mikkabi, a town
famous for the production of mandarin oranges in Shizuoka,
the prefecture neighboring Aichi. Swallowtail butterflies flying
nearby the site are expected to use the orange bush as an
egg-laying area.
Biodiversity Conservation outside Operational Sites
Toppan Group employees in Hokkaido Prefecture tuned in to
the sights, sounds, smells, and textures of the woods in
Asahiyama Memorial Park in Sapporo City. They revisited theurban park in fiscal 2016 to document their perceptions of therich natural environment through various activities, including
a workshop to craft birdcalls from fallen trees gathered in thewoods.
Toppan employees and their families have also been
observing aquatic life at Yanase River in Saitama Prefecturesince 2013. In fiscal 2016 guides from the Saitama Ecosystem
Conservation Society instructed participating families how towatch organisms in water from the river surface using
glass-bottomed hydroscopes. Methods to collect aquaticorganisms were also taught. After one society member showed
the way to drive a casing net, a selected group of participants
tried to harvest water creatures with the net. Once the organisms were collected, the families transplanted them to amini-aquarium where creatures of about twenty different species, some of them rare, were identified. Participants learned
that freshwater fish (lake and river fish that never migrate tosalt water) and amphidromous fish (fish that migrate from fresh
water to salt water) both inhabit streams far away from thesea. The Toppan Group will continue conserving biodiversity
throughout Japan

44

TOPPAN CSR REPORT 2017

Eco-creativity Activitiesn Developing and Approving Environmentally
Friendly Products
Toppan has established the Toppan Standards for Environ­mentally Friendly Products, a set of criteria covering five stagesof the product life cycle. A total of 87 products were registered
as “environmentally friendly products” as of the end of
March 2017.
The Company has approved and registered eight “exceptional environmentally friendly products” (as of the end of
March 2017) that are recognized by third-party organizationsor that have undergone life-cycle assessment for quantificationof environmental burden across the life cycle.
n Environment-related Businesses at
Group Companies
Like Toppan itself, the companies of the Toppan Groupdevelop, produce, and market eco-friendly products in linewith standards they formulate themselves in consideration ofsocial demands.
The total sales of environment-related businesses—including, most notably, sales of environmentally friendly products
satisfying the in-house criteria of the Toppan Group—were
509.4 billion yen in fiscal 2016.

Environmental Communication Activities
n Presenting at Eco-Pro 2016
The long-held “Eco-Products” fair was reborn as “Eco-Pro” inDecember 2016. The Toppan Group, an exhibitor at Eco-Pro
2016, set up a section focused on four topics covering
expanded themes: Healthy, longer lives of tomorrow; Comfort,
smart communities of tomorrow; Global-connecting living of
tomorrow; and Non-consuming lifestyles of tomorrow. The
booth was also outfitted with a virtual reality (VR) dome,­augmented reality (AR) system, and platform stage. Toppan
presented products and services jointly developed, marketed,and operated by the Group in collaboration with client­companies, organizations, and other entities. Visitors to thebooth experienced Toppan products and services designed
for tomorrow.
n Issuing Site Eco Reports
Toppan Group’s ISO 14001-certified sites in Japan issue Site
Eco Reports directed towards local municipalities and residents in surrounding communities. Thirty-seven reports from49 sites were issued in fiscal 2016.

Creating stencil towels (Fukaya Plant, Saitama)

Swallowtail butterfly’s larva on the leaf of a tree
planted in Nagoya, Aichi

Eco-Pro 2016

Studying the woods in Asahiyama Memorial
Park in Hokkaido

Making a mini-aquarium at Yanase River in
Saitama

Eco-Pro 2016n Toppan Standards for Environmentally Friendly ProductsLife Cycle Stage

Toppan Standards for Environmentally Friendly Products

TOPPAN CSR REPORT 2017

The Environment

Large Categories
Small Categories
Reduced use of hazardous substances Reduced use of hazardous substances and volatile solvents (excluding banned substances)
Use of waste paper
Use of recycled materials
Use of recycled plastics
Use of materials with lower
Reduced consumption of energy and water
Raw material
environmental burden
procurement
Resource-saving efforts
Reduced use of materials in production
Use of lumber from forest-thinning operations, use of forest-certified paper, use of tree-free paper
Alternatives to petroleum-based materials and mineral resources
Use of sustainable resources
Effective use of biomass resources
Reduced energy consumption in
Reduced energy consumption through changes in product design and production
production
processes (excluding reduction through changes in equipment)
Use of recyclable energy
Use of green electricity
Implementation of carbon offsets
Same as left
Production
Reduced water consumption in
Reduced water consumption through changes in product design and production
production
processes (excluding reduction through changes in equipment)
Reduced generation of waste in
Waste reduction (excluding reuse of waste inside plants)
production
Improvement in transport efficiency
Product design for improved loading ratio
Distribution
Optimization of transportation
Selection of more environmentally friendly transportation
Reduced release of chemical
Reduction of chemical substances potentially released from products
substances during use
Use
Extension of product life
Prolonged product life through improvement in durability and enhancement of functions
Reduced environmental burden
Reduced consumption of energy and water during use
during use
Improvement in reusability
Reuse
Easy separation and disassembly for reuse
Improvement in recyclability
Recycling
Easy separation and disassembly for recycling
Disposal & recycling
Recyclability through existing recycling routes (excluding waste paper collection routes)
Environmentally friendly disposal
Reduced emissions of hazardous gases during disposal
Use of recyclable materials that can be degraded and returned to nature (biodegradability,
Use of biodegradable materials
photodegradability, etc.)
Proof of environmental Visualization of environmental burden Carbon footprint of products (CFP), life-cycle assessment (LCA), water footprint (WFP)
friendlinessLabeling with environmental logos
Examples: Eco Mark, Forest Thinning Mark, etc.

45

Independent Assurance
Over several years Toppan CSR Reports presented results
and future targets & measures of the Group’s corporate social
responsibility (CSR) activities in line with the core subjects set
under ISO 26000. The CSR Report 2017 stretches the envelope to cover the link between the activities implemented by
the Group and the individual goals encompassed in the United
Nations Sustainable Development Goals (SDGs).
This expanded coverage clearly demonstrates the connections between the initiatives Toppan has been developing andthe social issues the international community is called upon
to address by achieving the SDGs. Toppan is expected to go
further in reviewing the material issues to be addressed in theGroup’s CSR activities vis-à-vis the SDGs and identifying thebusiness fields where the Group can create shared value from

SDG standpoints. We believe that information on the resultsof these endeavors in future reports will effectively show
Toppan’s contributions to achieving specific SDGs on which
the Group focuses.
Since fiscal 2011 the Toppan Group has been pursuing
three medium-and-long-term environmental targets to beachieved by fiscal 2020. The Group achieved two of the threegoals well in advance of their deadline and readjusted thosetargets into more ambitious values in fiscal 2016. We commend Toppan for its determination to keep up the progress insetting targets.

Tomonori Yoshida
KPMG AZSA Sustainability Co., Ltd.

Indicators in this Report Assured by an Independent Assurance Provider
Pages

Indicators Assured by an Independent Assurance Provider
Number of retired employees; number of reemployed employees
Number of female managerial and supervisory staff
Human Rights
23 Number of employees with disabilities; percentage of employees with disabilities
Number of Recruits
Number of Personnel
Reasons for Leaving
25 Average Annual Salary
Annual Paid Leave Used
Employees Taking Maternity or Childcare Leave
Labor Practices
Number of employees who participated in the Toppan Business School
Number of employees who learned in basic, Group-wide education programs via the e-learning system
26
Number of employees deployed overseas under the trainee system to acquire practical training in overseas businesses
Number of employees who participated in selective training on global business27 Occupational Health and Safety
Number of Conduct Guidelines Promotion Leaders; ratio of female Leaders
Number of employees who participated in training sessions for Conduct Guidelines Promotion Leaders
28 Number of employees who participated in training sessions on compliance with the Subcontract Law of Japan
Fair Operating Practices
Number of employees who participated in training in group sessions or via the e-learning system on export
controls under the Foreign Exchange and Foreign Trade Act of Japan
30 Number of business partners surveyed to verify the legality of lumber used for paper production
Number of employees who participated in training sessions for internal auditors
Consumer Issues
32
Number of operational sites audited for their packaging operations using the quality audit checklist
Number of systems that received management system audits; number of operational sites that received
38
internal environmental audits
Environmental target values and results for fiscal 201639
Scope 1-3 Greenhouse Gas Emissions
40 Energy consumption per unit of transport volume; CO2 emissions from transport
Major Types of Environmental Burden by Business Field in Japan (INPUT/OUTPUT data)
41
CO2 Emissions
Number of production sites that recorded levels exceeding applicable regulatory standards
42
The Environment
Number of complaints from communities around Toppan sites
Total Waste Discharge and Final Landfill Waste Disposal
Recycling Rate and Material Recycling Rate
43 VOC and Toluene Emissions into the Atmosphere
Chemical Substances Designated under the PRTR Law
Purification of Soil and Groundwater Pollution
Number of approved and registered environmentally friendly products
44
Total sales of environment-related businesses
Some data in the Toppan CSR Report 2017: Detailed Data posted on the Toppan website are also assured by the assurance provider.
22

Toppan is authorized to attach the mark on the left as a testament to the reliability of the sustainability information presented in this report.
Any report bearing this mark meets the Sustainability Reporting Assurance and Registration Criteria established by The Japanese Associationof Assurance Organizations for Sustainability Information.

46

TOPPAN CSR REPORT 2017

Independent Assurance Report

TOPPAN CSR REPORT 201747

Sustainable Development Goals
One hundred and ninety-three countries gathered for theUnited Nations (UN) Sustainable Development Summit at the
UN General Assembly held in September 2015 unanimously
adopted “Transforming our World: the 2030 Agenda for
Sustainable Development.” The Sustainable Development
Goals (SDGs) are set under the 2030 Agenda, an action planfor people, planet, and prosperity. The SDGs encompass 17
goals and 169 targets on social issues for the international

community to commit to achieving by 2030. Companies are
expected to contribute to the 15-year SDGs through theircorporate activities and business enterprises in collaborative
partnerships with various other stakeholders.
Toppan is addressing the SDGs as inclusive targets for
initiatives to fulfill its corporate responsibilities as a social­benefactor committed to helping solve pressing challenges
for global sustainable development.

Goal 1 End poverty in all its forms everywhere
Goal 2 End hunger, achieve food security and improved nutrition and promote sustainable agriculture
Goal 3 Ensure healthy lives and promote well-being for all at all ages
Goal 4 Ensure inclusive and equitable quality education and promote lifelong learning opportunities for all
Goal 5 Achieve gender equality and empower all women and girls
Goal 6 Ensure availability and sustainable management of water and sanitation for all
Goal 7 Ensure access to affordable, reliable, sustainable and modern energy for all
Goal 8 Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all
Goal 9 Build resilient infrastructure, promote inclusive and sustainable industrialization and foster innovation
Goal 10 Reduce inequality within and among countries
Goal 11 Make cities and human settlements inclusive, safe, resilient and sustainable
Goal 12 Ensure sustainable consumption and production patterns
Goal 13 Take urgent action to combat climate change and its impacts
Goal 14 Conserve and sustainably use the oceans, seas and marine resources for sustainable development
Goal 15 Protect, restore and promote sustainable use of terrestrial ecosystems, sustainably manage forests, combat desertification, and halt and reverse landdegradation and halt biodiversity loss
Goal 16 Promote peaceful and inclusive societies for sustainable development, provide access to justice for all and build effective, accountable and inclusive

institutions at all levels
Goal 17 Strengthen the means of implementation and revitalize the global partnership for sustainable development

48

TOPPAN CSR REPORT 2017

Labels*Every label shown here is a sample.

Name

Logo

Meaning

Management Organization

Logo for Green
Purchasing Network
Printing Services

A Green Purchasing Network (GPN)
member or a company engaged in green
purchasing in compliance with GPN’s
Ordering Guidelines for Printing Services

Green Purchasing Network ofJapan

FSC® trademark(Forest Management
certification system)

A product (wood product, paper, etc.)
made from lumber, etc. harvested from
responsibly managed forests

Forest Stewardship Council ®

Logo for Gold
Standard credits

Internationally recognized carbon offset
credits provided by the Gold Standard
Foundation*. Available to institutions as amechanism for contributing to climate
security and sustainable development on
a high level in association with the UN
Sustainable Development Goals (SDGs)*An organization established in 2003 by
the World Wide Fund for Nature (WWF)and operated with more than 80 NGO
supporters as of 2017

CUD logo

A printed material, product, etc. recognizedby the Color Universal Design Organization as a creation that conforms withcolor universal design principles incorporating eye-friendly displays in consideration of as many different types of people
as possible, regardless of individual
differences in color perception

http://www.gpn.jp/english/
index.html

www.fsc.org

The Gold Standard Foundation’s
headquarters
https://www.goldstandard.org/

Color Universal Design
Organization
http://www2.cudo.jp/
wp/?page_id=1936

Toppan’s environmental logo

TOPPAN CSR REPORT 201749