CSR REPORT 2010
Report on Corporate Social
Responsibility Activities

IEditorial Policy
Toppan is disclosing information in the hopes of encouraging dialogues on socialand environmental activities with more people, especially people who have aninterest or stake in Toppan’s corporate social responsibility (CSR) activities.
IPeriod Covered
This report mainly covers activities in fiscal 2009 (from April 2009 to March 2010),
though information on prior and later years is also included in parts.
IScope and Boundary of this Report
In principle, this report covers the social and environmental activities of Toppan
Printing Co., Ltd. (“the Company”) and Group entities consolidated for accounting
purposes. Most of the information on personnel applies to personnel within Toppan
Printing Co., Ltd., the parent company. The boundaries of the environmental
performance data and environmental accounting are presented on P. 44.
ISelecting the Information for this Report
In choosing the information to present in this CSR report, Toppan assessed the“materiality” of the information for society and the Company itself.
To assess whether information can be considered material for society, Toppan
holds in-house discussions on the following points: independent reviews and thirdparty opinions, questionnaire responses to CSR reports from inside and outside
the Company, other opinions gleaned from dialogues inside and outside theCompany, the content of various guidelines (such as the Environmental Reporting
Guidelines [fiscal 2007 version] from the Ministry of the Environment of Japan and
the GRI Sustainability Reporting Guidelines 2006 from the Global Reporting
Initiative [GRI]), questionnaire items from third-party organizations, and CSR-related
information from media and news agencies.
IGuidelines Observed
This report complies with the GRI Sustainability Reporting Guidelines 2006 and is
rated B+ among the levels defined in the guidelines.
IReliability
KPMG AZSA Sustainability Co., Ltd. provides independent assurance for thisreport. As a testament to the reliability of the sustainability information in this report,
Toppan is authorized to attach the following mark. This means that the report
meets the standards for sustainability report assurance and registration establishedby The Japanese Association of Assurance Organizations for Sustainability
Information (http://www.j-sus.org/).

IEye-friendliness and Readability
This report considers eye-friendliness and readability in accordance with Toppan’s
in-house guidelines. It also incorporates universal-design displays for as many
people as possible, regardless of individual differences in color perception. The
universal design in this report has been reviewed and certified by the Color
Universal Design Organization (CUDO), a nonprofit organization, on entrustment
by Toppan.
IURLs for Relevant Information•CSR information: http://www.toppan.co.jp/english/csr/
This site posts the latest information on ISO 14001 certification, data on the
Global Reporting Initiative (GRI) content index, the CSR Procurement Guidelines,
and other forms of CSR information. If erroneous entries or misprints are foundafter CSR reports are issued, the related information will be shown here.
•IR information: http://www.toppan.co.jp/english/ir/
Details on corporate governance can be found at the following URLs.
Corporate governance reports: http://www.tse.or.jp/listing/corpgov/ (in Japanese)
Financial statements: http://info.edinet-fsa.go.jp/ (in Japanese)
IPublication Dates
Previous report: October 2009
Current report: October 2010
Next report: October 2011 (planned)
IContact Information
CSR Promotion Department, Legal Affairs Division, Toppan Printing Co., Ltd.
(Tokyo, Japan)
Email: csr@toppan.co.jp

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

Contents

Executive Message

2

Group Business Outline

4

Highlights 2009–2010
Special Report 1:
Promoting Conservation and the Sustainable
Use of Biodiversity

6

Special Report 2:
Pioneering Frontiers in Medical Applications for
Printing Technologies

8

Results for Fiscal 2009 and Future Measures

10

Stakeholder Dialogue

12

CSR Management
Toppan’s Social Responsibility

14

Corporate Governance

16Compliance Promotion Activities

18

Information Risk Management

20

Conduct Guidelines and Information
Management Policy

22

Social Report
For Customers

24

With Business Partners

28

With Communities

30

With Employees

34With Shareholders and Investors

42

Environmental Report
Overview of Environmental Activities

44

Review of Fiscal 2009 Results and Future Targets

46

Environmental Management

50

Environmental Conservation Activities

56

Environmentally Friendly Products andEnvironment-related Business

60

Environmental Data

63

Third-party Opinion and Independent Assurance
Third-party Opinion

68

Independent Assurance

69

Company Reaction to the Third-party Opinion andIndependent Assurance

71

Group Business Structure

72

TOPPAN CSR REPORT 20101

Executive Message

Contributing to Fulfilling Lifestyles

Commemorating Toppan’s 110th Year in
Business
The Lehman Shock in 2008 triggered a major crisis in the
global economy. The extensive stimulus measures orchestrated by the world’s leading nations have panned out well,
returning the global economy back on course in a gradualupswing. The Japanese economy showed signs of upward
momentum in 2009 but fell far short of a full-fledged
recovery. Sluggish consumer spending and other factors
continue to weigh down heavily on economic activity.
Toppan’s efforts to increase profitability within this severe
environment were successful. By adopting the following
three strategies, we managed to bring about a turnaround
during the year: carrying out structural reform “with nothingsacred,” accelerating our globalization, and bolstering ourmanagement as a group.
It is a great pleasure to report the commemoration of
Toppan’s 110th anniversary in June 2010. I deeply appreciate the ongoing cooperation of all our stakeholders—ourcustomers, shareholders and investors, business partners,
communities, and employees.
Since its foundation in 1900, Toppan has striven to live
by its Corporate Philosophy of contributing “to a fulfilling
lifestyle as a mainstay of information and culture” throughbusiness operations centered around printing technologies.
The market environment surrounding us today is shifting
drastically on many levels in response to major social­developments such as digitization for information distribution, economic growth in emerging countries, and thedeclining birthrate and aging population at home inJapan.
In June 2010, the 110th anniversary of our founding,I assumed the post of President & Representative Director.
In watching the changes in today’s market environment
from my perspective as a leader of Toppan, I have come tobelieve that they bring us a rare opportunity to pursue New
Challenges and Innovation as we strive to realize sustainable development in the future. I will lead Toppan to further
development through the promotion of four major initiatives:
driving on with reforms of our operational structure, bolstering our management as a group, accelerating our globalizedbusiness operations, and creating new businesses.

2 TOPPAN CSR REPORT 2010

Towards a Sustainable Society
Then again, a company cannot actualize sustainable development all on its own. A company can only survive as apart of society interconnected with others. When I consider
this, I recognize that the best possible approach for fulfilling
corporate social responsibility is to support the sustainable
development of society itself.
TOPPAN VISION 21 is positioned as the foundation for
all of our corporate activities at Toppan. This vision consistsof a Corporate Structure (the Corporate Philosophy, theCorporate Creed, and a set of Conduct Guidelines defining
the values and standards the Company should respect) andfive Business Fields based on the Corporate Structure.
In my view, the goal of our social responsibility activities
is to realize the Corporate Structure, an ideal framework forgrowing in harmony with the environment and society.
Let me reiterate our firm commitment to thoroughly carrying out Toppan’s social responsibility towards the realizationof a sustainable society.
Toppan has been participating in the United Nations
Global Compact and supporting the 10 principles of the
Global Compact on human rights, labour, environment,
and anti-corruption since September 2006. The Company
continues to espouse the United Nations Global Compact
as an invaluable guideline and arranges various activities tofulfill Toppan’s social responsibility.

Staying Aware of Broader Social Issues andAddressing Them
I believe it vital for Toppan, as a promoter of sustainable
society, to find ways to address broader social issues
through its business operations.
Modern society is rife with global problems, some of themenormous, such as global warming and economic disparities. Under the Millennium Development Goals, the United
Nations and international community struggle to eradicate
extreme poverty and hunger, promote gender equality andthe empowerment of women, reduce child mortality, andcombat HIV/AIDS, malaria, and other diseases. As a nation,
Japan is faced with a host of serious issues of its own, froma declining birthrate and aging population to food safety.

By providing our own innovations to help solve social
issues, I am convinced that we can find shortcuts towards
the realization of a sustainable society while securing footholds towards sustainable development for ourselves as acorporation.
Toppan has examined and prepared a set of five bylaws
under The Toppan Group Declaration on the Global Environment and the Company’s environmental management rules.
With these bylaws, we are further strengthening ourapproaches to the major social challenge of conserving the
global environment. They include, specifically, the Bylaw on
Global Warming Mitigation, the Bylaw on the Building of a
Recycling-oriented Society, the Bylaw on Chemical Substance Management, the Bylaw on Pollution Control, andthe Bylaw on Biodiversity. Since their enactment on April 1,
2010, we have been intensifying our environmental conservation activities based on the bylaws in all the relevant
areas.
In the area of global warming mitigation in particular, we
will bolster our efforts to reduce carbon dioxide emissions
by optimizing and streamlining production at operationalsites across Japan in conjunction with our ongoing drive inmanagement structure reforms. We will also introduce newmeasures in paper resource procurement and land usage
for the conservation of biodiversity.
Toppan has engaged in research and development inmedical fields since 1999 by applying microfabrication, surface treatment, formation, coating, and other technologies
it has acquired in the course of the printing business. In
fiscal 2009 we developed a new, low-cost, high-precision
technique for gene analysis capable of analyzing mutatedgenotypes of cancerous tissue caused by acquired genemutations. This is a method for finding and selecting pharmaceutical agents with the greatest possible therapeutic
effects and mildest possible side effects prior to treatment
based on the genetic profiles of individual patients.
The advance of personalized medicine, a clinical methodology for administering the most effective agent for thepatient as an individual, will help doctors and hospitals combat today’s ever rising healthcare expenditures, one of themost pressing issues facing modern society.

To Our Stakeholders
The first step in fulfilling our social responsibility is to consider what society demands of us. This alone, however, is
not enough: every idea we have must be crosschecked withthe voices of the stakeholders around us.
Toppan will fully disclose information as a starting point
for communication with stakeholders in the years ahead
and is eager to hear your candid opinions. We will maintainour work to serve society as a trustworthy, respected, androbust corporation committed to the creation of fulfilling
lifestyles in a sustainable world. We rely on your ongoingsupport and guidance.

August 2010

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

TOPPAN CSR REPORT 20103

Group Business Outline

Corporate Profile
Corporate nameToppan Printing Co., Ltd.
Head office
1, Kanda Izumi-cho, Chiyoda-ku,
Tokyo 101-0024 Japan
Phone +81-3-3835-5111
Established
January 17, 1900
President & Representative Director
Shingo Kaneko

Group Profile
Number of employees(Nonconsolidated)
8,769(as of the end of March 2010)
Number of employees(Consolidated)
47,650(as of the end of March 2010)
Capital (Nonconsolidated)
104.9 billion yen

The Toppan Group comprises Toppan Printing Co., Ltd. and 202 relatedcompanies (177 subsidiaries and 25 affiliates) engaged in manifold businesses in three main fields: Information & Networks, Living Environment,
and Electronics.
The positioning of Toppan and its related companies in these fields isoutlined on P. 72.

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

ISecurities and Cards

ICommercial Printing

IPublications Printing

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

IPackaging

IHigh-performance Components

Electronics

IFor Displays

IFor Semiconductors

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

4 TOPPAN CSR REPORT 2010

IIndustrial Materials

Personal Service

Next-generation Products

IShufoo!—an online mall ofdigital flyers (in Japanese)IHydrogen sensor

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

Providing high-performanceindustrial materials with links
to the next generation by developing fields of business withgrowth potential

Net Sales
1,800
1,500

Operating Income■Consolidated ■Nonconsolidated (Billion yen)
1,670.3 1,617.3
1,548.2 1,557.8
1,506.7

1,200
900

947.1

948.7

1,022.9

967.6

885.9

80

69.3

30.3

2005

2006

2007

2008
2009
(Fiscal year)

0

38.2

31.6 29.1

2006

38.5

2007

21.9
20 15.1

26.0
20.2

25.2
11.7 12.4

10

7.8
2005

■Consolidated ■Nonconsolidated (Billion yen)

30

60
38.0

50
40

72.1

20

300

15.3

2008
2009
(Fiscal year)

5.8

0
–10

2005

2006

2007

–7.7
2008
2009
(Fiscal year)

Number of Employees by Business
Field (Consolidated)

Number of Employees
60,000■Consolidated ■Nonconsolidated (Billion yen)
91.0

40

600

0

100

Net Income or Loss

■Consolidated ■Nonconsolidated (Employees)

Electronics
6,323(Employees)
Company-wide positions 1,046

LivingEnvironment
12,010Information & Networks
28,271

47,522 47,650

50,00040,000 35,954 36,757 38,570
30,00020,00010,0000

10,582

10,899 11,181 11,548

2005

2006

2007

8,769

2008
2009
(Fiscal year)

Net Sales by Business Field

Capital Expenditures

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

Electronics
246.2 (17%)(Billion yen)

150
120

133.7
119.2
92.0

90

72.9

(Billion yen)
(%)
3.0
2,000
1,837.7 1,787.4
1,727.6
1,681.7 1,665.6
2.1
2.0
1,500
1.5
0.9

68.0

0.7

1,000

1.0

60

–0.4

LivingEnvironment
366.3 (24%)

Information & Networks
894.1 (59%)

Net Sales by Region
Asia, excluding Japan110.4 (7%)

0

500

30
0

2005

2006

2007

2008
2009
(Fiscal year)

R&D Expenses(Billion yen)
Other regions 26.1 (2%)(Billion yen)
27.5

29.1

2005

2006

2007

2008 2009(Fiscal year)

29.7

28.7
24.4

(Billion yen)
1,000
800

918.0

803.6

940.3

867.7

400

7

200

0

2005

2006

Notes:
1. Net sales do not include consumption taxes.
2. The number of employees is the number of employees working at the Company. The number of non-regular employees for fiscal 2009 stood at 7,967
on a consolidated basis (the average number of employees throughout the
fiscal year, including part-time workers but excluding temporary staff).

2007

2008
2009
(Fiscal year)

0

4.0
1.6
-1.0

2005

2006

(%)
8.0
6.0

1.9
14

874.0

4.8
3.2

600

21

Japan 1,370.1 (91%)–1.0

Net Assets & Return on Equity (ROE)

35
28

0

2007

2008 2009(Fiscal year)

2.0
0
–2.0

3. Net assets have been calculated based on the “Accounting Standard for
the Presentation of Net Assets in the Balance Sheet” and the “Guidanceon the Accounting Standard for the Presentation of Net Assets in the
Balance Sheet” since fiscal 2006.

TOPPAN CSR REPORT 20105

Special Report 1

Promoting Conservationand the Sustainable Use of
Biodiversity
A company cannot run businesses without benefits from biodiversity* for the procurement of
its raw materials or the use of the environments surrounding its operational sites.
Toppan now takes an assertive approach to the conservation and sustainable use of biodiversity.

Establishing a Bylaw on Biodiversity
Toppan established its Bylaw on Biodiversity on April 1,
2010. This is a part of the bylaws to assure the implementation of Group-wide environmental conservation initiatives
based on the fundamental principles of The Toppan Group
Declaration on the Global Environment and the Company’senvironmental management rules.
As a company operating in the printing industry, Toppan
runs businesses with considerable impacts on biodiversity in processes such as raw material procurement (e.g.,paper), water use, the discharge of effluent and chemical
substances, and the use of the land and environment in andaround its operational sites.
With regard to paper, the Bylaw on Biodiversity requires
the Company to take an assertive approach to the sustainable use of forest resources by avoiding and minimizing
impacts on biodiversity. With regard to the use of waterand chemical substances, the bylaw prescribes reinforcements in existing management practices. And with regard
to land use, it specifies the need for impact assessmentson biodiversity in advance.
Toppan will be stepping up initiatives for biodiversity

conservation and the sustainable use of natural resources
through the observation of the Bylaw on Biodiversity.

Developing and Marketing Eco Products
CartocanCartocan is a paper-based beverage container produced
from more than 30% domestic lumber, including lumber
harvested from forest-thinning operations in Japan. Thinning is a necessary operation in forest management. The
thicker canopy of an un-thinned forest inhibits the growth oftrees and deprives the forest bed of sunlight. This, in turn,inhibits the growth of the smaller plants vital for preventing
soil runoff. When poorly grown trees are properly thinned,
the space cleared around them gives other trees better
opportunities to grow. Nurturing sound forests and conserving soil and water resources can create and maintaina friendly habitat for diverse living things.
Cartocan obtained the forest-thinning product markdesignated by Japan’s National Federation of Cooperative
Associations for Forest Owners in December 2003. Soon
thereafter, in April of the next year, the Morikami (Forest

Basic Policy on Biodiversity (excerpted from the Bylaw on Biodiversity)(1) The conservation of biodiversity is a part of management and is to be positioned as an important element of it.
(2) In the procurement of raw materials, we will take a proactive approach to sustainable use by avoiding or minimizing the impact on
biodiversity.
(3) We will proactively undertake social contribution activities related to biodiversity.
(4) In our initiatives, we will use preventative and adaptive methods and take a long-term perspective.
(5) In our initiatives, we will give consideration to cooperation with various stakeholders with links to biodiversity such as local residents.
(6) In undertaking the conservation and sustainable use of biodiversity, we recognize that it contributes to the prevention of global
warming and other efforts.

6 TOPPAN CSR REPORT 2010and Paper) Conference was founded to promote the use ofenvironmentally friendly paper-based containers for beverages. Toppan engages in various activities to contributeto the sound maintenance of forest resources in Japan incooperation with Cartocan users, the Forestry Agency ofJapan, and other parties concerned.
To further extend the benefits of Cartocan, Toppan established a system for the recycling of empty Cartocans into
ECO-GREEN toilet paper in January 2002. ECO-GREEN is
composed of about 50% used Cartocan material. Toppan
purchased 165,760 rolls (approx. 46.8 tons) of ECO-GREEN
in fiscal 2009.
Expanding Forest-certified Paper SalesIn May 2002, Toppan became the first company to acquire
the Forest Stewardship Council™ (FSC™) Chain of Custody(CoC) certification in the field of commercial printing inJapan. Toppan customers have been offered the opportunity to have their products made with FSC-certified paper.
More recently, Toppan acquired CoC certifications in securities printing and publications printing, as well. Toppan’s
forest-friendly proposals are ongoing in many fields.

Organizing Communication Activities
Exhibiting at the Biodiversity EXPOThe Biodiversity EXPO 2010 in Fukuoka was held in Japanin February 2010 as a forum for information exchange,intercommunion, and the revitalization of business activities
related to biodiversity. Five companies in the Toppan Group
produced a joint exhibit at the expo to converse extensively
with other exhibitors and visitors of every variety.
Joining a Consortium
In April 2010, Toppan joined the Japan Business Initiative forConservation and Sustainable Use of Biodiversity (JBIB), a
consortium of companies dedicated to the promotion of biodiversity conservation initiatives in line with the trends of industry
and government agencies.
http://www.jbib.org/en/*Biodiversity: Can be categorized into three levels, namely, ecosystem diversity(forest, satoyama**, river, marsh, tidal flat, coral reef, etc.), species diversity(animal, plant, microorganism [bacterium, etc.]), and genetic diversity (diversifiedtraits in the members of a species, such as differences in body shape, bodymarkings or coloration, patterns of behavior, etc. due to genetic variation). Humanbeings can only enjoy the blessings of nature if nature’s diverse parts link together
in sustainable balance.
**Satoyama: A habitat rich in biodiversity within a landscape carefully managed by humans for mixed uses such as forestry, rice paddies, reservoirs, grasslands, etc.

Logo forforest-thinning
products

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

TOPPAN CSR REPORT 20107

Special Report 2

Pioneering Frontiers in
Medical Applications for
Printing Technologies
Printing technologies have rich potential for application to fields far more diverse thanthe printing fields generally expected. Medicine is one of the areas in which Toppan has been
assiduously pursuing new applications for these technologies.

DNA as a Medium
The information flowing through modern society is served
through media of various forms, from newspapers andother printed materials to television, mobile phones, andthe Internet. The varieties of information distributed among
companies and consumers via these media are stupefying. Toppan has used its original expertise in printing tocontribute to the creation and development of many of themedia we now rely on.
DNA is a medium for transmitting genetic information,
information on life. It is the blueprint for a living organism, storing all of the genetic data as code. The accurate
unscrambling of genetic codes requires state-of-the-art
technologies. Toppan’s corporate goal, as defined in the
Corporate Philosophy, is to “contribute to a fulfilling lifestyleas a mainstay of information and culture.” To fulfill this aspiration, the Company has developed technologies for bothanalyzing genetic information transmitted within DNA andapplying the analytical results effectively in medicine.

Towards the Realization of Personalized
Medicine
When patients undergo personalized medicine, they receive
optimal individualized therapies suitable for their own physical characteristics. A genotype testing of a patient before
prescribing medication will enable a doctor to assess whichdrugs will have favorable or adverse effects. This information
will be key for choosing the most appropriate medications
and optimal doses.
If adopted widely, personalized medicine will help tominimize the administration of drug regimens likely to beless efficacious or to have side effects. This, in turn, will
help prevent and alleviate pain and anxiety for patients and

8 TOPPAN CSR REPORT 2010

limit healthcare expenditures through enhancements in theefficiency of medical care.
In its pursuit for personalized medicine, Toppan has collaborated with RIKEN, Japan and other entities to develop
a genotype analysis system with single nucleotide polymorphism (SNP)* chips for the testing of patient genotypes
before the administration of medication.
In fiscal 2007, Toppan, RIKEN, and RIKEN Venture Capital Co., Ltd. jointly founded RIKEN GENESIS CO., LTD., aprovider of genotype analysis services on contract and amarketer of devices and chips for genotype analysis.

Developing a New Technique for the Genetic
Testing of Cancerous Tissue
In fiscal 2009, Toppan developed the Fluorescent Preferentially Homoduplex Formation Assay (PHFA) method, a new
analysis technique for the genetic testing of cancerous
tissue. A joint study on the Fluorescent PHFA method with
the University of Chicago has confirmed that the techniqueis effective for low-cost, high accuracy genotyping of cancerous tissue from patients.
Scientists now understand that the variations in drug
efficacies from person to person are attributable not only todifferences in congenital genotypes, but also differences inacquired gene mutations. This understanding has prompted
studies to clarify how mutated genotypes relate to the effectiveness of medicines for cancers of various organs causedby acquired gene mutations.
Molecularly targeted anticancer drugs are an effectivemode of cancer treatment. One of their major benefits is
minimal side effects. In some cases, however, differencesin the genetic mutations of cancers hinder the effectiveness of these drugs, even in patients with cancers of thesame organ. To administer molecularly targeted antican-

cer drugs, it thus becomes very important to genotype thebiopsy specimens of the cancer and identify the mutations
before selecting the anticancer drug expected to be highly
efficacious.
Genetic analysis of cancerous tissue involves the selective detection of genes from cancer cells in specimens withboth tumor cells and non-tumorous cells from normal surrounding tissue. In some cases, the existing analysis techniques are too insensitive to detect the target cancer genes.
Existing analysis techniques also tend to be too costly toadopt for widespread clinical use, requiring complicated,time-consuming procedures and expensive reagents.
To resolve these obstacles, Toppan has established theFluorescent PHFA method for gene analysis. This innovative technique enables low-cost testing by applying an
extremely simple principle for analyzing mutations simply
through thermal treatment. The study conducted with the
University of Chicago has confirmed that the Fluorescent
PHFA method is more accurate than traditional analysis
techniques.

Genotype analysis system with SNP chips

Towards the Widespread Use of theFluorescent PHFA Method
With its Fluorescent PHFA method, Toppan will target thecommercialization and sale of testing reagents for cancer
treatment through joint initiatives with RIKEN GENESIS CO.,LTD. Toppan and RIKEN GENESIS will also be developing
automated testing devices and applying the Fluorescent
PHFA method to fields other than cancer treatment.
The device development in this research is supported by
a Grant for the Practical Application of Industrial Technology
from the New Energy and Industrial Technology Development Organization (NEDO) of Japan, from August 2009 to
February 2011.

Research and development of the Fluorescent PHFA method*SNP: The individual variations from person to person at birth derive from differences in the estimated 3 billion base pairs in the genome sequence. A single
nucleotide polymorphism (SNP) is a site in the genome sequence where a single
nucleotide varies from person to person. Differences in SNPs cause individual
variations, including variations in drug sensitivity and disease susceptibility. By
examining these differences, physicians can tailor drug regimens and therapies
to individual patients.

TOPPAN CSR REPORT 20109

Results for Fiscal 2009 and Future Measures

Stakeholders

TopicsAction Points

Targets

Complying with laws,
regulations, and corporate
ethicsHeightening awareness of laws, regulations,and the Conduct Guidelines throughcompliance promotion activities—

Reinforcing information risk
management

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

Conserving the global environment(See PP. 46–48 for the results ofenvironmental activities and future
measures)

All stakeholders

Customers—

Ensuring product safety•Preventing accidents relevant to the Product Liability (PL) Act andthe revised Consumer Product Safety Act of Japan

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

Assuring product safety andquality / Providing products andservices to help solve social
issues•Embarking on energy-related businesses for the future•Expanding businesses in the life sciences
Providing products and services to help
solve social issues•Realizing a society where a diversity of people can enjoy fulfilling
lifestyles (spreading universal design)•Passing down cultural assets as virtual reality (VR) reproductions

Business partners

Communities

Shareholders andinvestors

Establishing a trusted supply
chain

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

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

Social contributions•Continually arranging social contribution programs to help solve
social issues

Community contributions•Expanding opportunities to communicate with communities andmaking contributions responsive to community needs

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

IR activities•Enhancing IR activities

Merit-based personnel policies•Operating personnel treatment systems properly

Contributing to society,community, and culture

Disclosing information ina fair and open manner andimproving transparency•Respecting basic human rights•Ensuring occupational safety and health•Reinforcing countermeasures against fires and disasters•Promoting healthcare and health enhancement•Arranging measures for mental healthcare
Realizing a safe and secure working
environment

Employees•Supporting work-life balance by 1) shortening total working hours•Supporting work-life balance by 2) creating a working environment
where employees can strike a balance between working and raisingchildrenRespecting and leveraging
human assets•Creating a better working environment through partnerships
between labor and management•Proactively appointing female employees to higher positions•Supporting second careers for retired employees•Promoting employment of persons with disabilities
Leveraging diverse human assets•Providing an open environment and information for recruitment•Supporting individual career development•Properly leveraging the abilities and skills of non-regular employees
Developing and fostering human assets

10 TOPPAN CSR REPORT 2010

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

Main Activities and Achievements in Fiscal 2009•Distributed the Conduct Guideline Handbook, a collection of actual cases
to explain the seven Basic Principles of the Conduct Guidelines•Organized education on the prevention of improper transactions for
employees in the sales departments (18 sessions; 1,807 trainees)•Arranged an e-learning-based educational program on compliance with
the Subcontract Law of Japan, mainly for employees in the production
control departments (3,550 trainees)•Organized group education for all employees using the revised Information Security
Management Guidebook and the newly issued Close Calls on the Job, Vol. 3•Carried out Company-wide system asset audits and assembled a USB
flash drive quarantine system•Integrated a risk assessment function within the department-based
information management ledger system—

Self Evaluation

Main Measures in Fiscal 2010

For Details

A•Introduce revised Conduct Guidelines (planned in July) at U.S. subsidiaries
and renew related tools•Ensure proper subcontract transactions in the ordering departments

PP. 18–19

A•Arrange follow-up training programs for 110 employees designated as
ISMS-qualified staff and assign them as internal assistant auditors•Intensify information management in the manufacturing departments(for production systems, website development, and operation processes)•Build the PDCA management structure at Group companies

PP. 20–21——

PP. 44–67•Incorporated product safety as a checkpoint for internal ISO 9001 QMS
audits; audited the levels of establishment and operation of the QMSs;
verified that no quality-related accidents occurredA•Revised the standardized in-house textbooks on general printing andpackaging products for the sales departments•Carried out internal QMS audits at 29 operational sites designated aspriority targets and verified the effectiveness of their QMSs

A

•Recorded a power output well beyond the desired value in tests on a newmaterial for the electrolyte membrane in the fuel cell
•Provided medical research in Japan and overseas with genotype analysis
systems with SNP chips for the support of their clinical studies•Established the Toppan Declaration on Universal Design and revised
Toppan’s Seven Principles on Universal Design•Screened The Ashura Statue and The Recreated Kohfukuji Chukondo
virtual reality (VR) productions at “The National Treasure ASHURA and
Masterpieces from Kohfukuji” exhibition (held at the Tokyo National
Museum and Kyushu National Museum in Japan); created four VR
productions, including Genre Scenes in Kyoto (Funaki version)•Promoted the commercial use of VR productions for rental, sightseeing,
and other businesses•Assessed the current status of about 200 equipment suppliers and about
1,100 material suppliers; established and operated the Business Partner
Database•Installed and operated the Supplier Hotline•Completed a project to inform about 1,200 business partners of the revisedStandards for the Chemical Components of Raw Materials Ver. 2.0•Informed business partners of amendments to the green procurement
guidelines by product type in accordance with the revisions mentioned above•Launched a vaccine donation drive using proceeds from collected PET
bottle caps, but failed to get any other program started•Extended community contributions at operational sites throughenvironmental beautification activities, blood donation drives, plant tours,
hands-on training sessions, disaster- and crime-prevention activities, etc.
<Printing Museum, Tokyo>•Organized a typographic printing workshop at Bunkyo Muse Festa inJapan (180 participants)•Ran collaborative coursework with neighboring elementary schools at the
Printing Museum<Toppan Hall>•Sponsored 29 concerts, including nine special performances to discoverand foster talented young musicians; rented the hall out for concert
performances by neighboring elementary schools

B
A•Review the rules on product safety and sort out the challenges thedivisions face•Continue to organize product quality education with standardized
in-house textbooks for the sales departments•Point out weaknesses to operational sites through QMS audits withranking evaluations and request the sites to upgrade their QMSs byremedying their weak points•Prototype an electrolyte membrane in an experimental size and evaluate
the prototype to improve the membrane performance•Acquire data on SNP chips and SNP analysis systems used at medical
institutes towards the practical application of the systems and chips

PP. 24–25

PP. 26–27
PP. 8–9

A•Constructively disclose the details of universal design efforts

P. 27

A

•Create two new VR productions of cultural assets•Develop new products for the secondary use of VR content

P. 26

A

•Interview major business partners of the purchasing departments to keep
track of the progress of their CSR initiatives•Check compliance with the procurement guidelines at the Company bymonitoring major business partners of the purchasing departments

A•Inform every new business partner of the Standards for the ChemicalComponents of Raw Materials Ver. 2.0

B•Review the Toppan Charity Concerts to identify the optimal conditions forthe staging of more concerts in the futureA•Maintain various community contributions responsive to community needs
at operational sites across JapanA<Printing Museum, Tokyo>•Hold an exhibition: Printing Museum, Tokyo 10th Anniversary Exhibition•Develop educational activities in collaboration with educational institutes
and organize hands-on learning programs at the Printing Workshop

B•Participated in conferences for foreign institutional investors twice a year

A

•Held public meetings to announce financial results, provided individual
consultations with investors, and arranged small-scale meetings•Partly revised the ability-based grade system for managerial staff in order
to align human asset fosterage opportunities with treatment and leveragesystems•Enlightened employees on basic human rights through rank-based andnew employee training sessions•Launched a Safety Project to facilitate prompt Group-wide reporting of
the details of accidents and reviews of disaster reports to prevent
recurrences•Reexamined fire- and disaster-prevention structure according to therevised Fire Service Act of Japan•Offered the Lifestyle Improvement Support Service (for 548 employees
across the Group)•Held Art Salon sessions (18 sessions; 62 participants on a cumulativebasis)•Significantly decreased the number of employees working long hours throughstrict working-hour control by managerial staff, continuously operated
working systems introduced on trial bases, undertook measures determinedby the labor-management committees to shorten working hours, and so on•Confirmed labor-management cooperation in the shaping of theCompany’s responses to the revised Labor Standards Act of Japan•Expanded and upgraded systems to create a working environment where
employees can strike a balance between working and raising children(extended period for childcare leave system; relaxed the requirements forthe leave system due to morning sickness; etc.)•Convened labor-management committees for working hour reductions five times
to deliberate the Company’s responses to the revised Labor Standards Act•Confirmed the implementation of reinforced measures to eliminate
occupational accidents at labor-management committees for the creationof a working environment amenable to enhanced job satisfaction•Attained a 4.1% ratio of female managerial and supervisory staff (as ofApril 1, 2010)

A<Toppan Hall>•Sponsor 32 concerts, including eight special performances to discoverand foster talented young musicians; work out a plan to allow students to
use the hall as a practice space during summer vacation•Review Toppan Story, a newsletter for shareholders, to find ways toenrich its contents•Hold public meetings to announce financial results; visit and consult withinvestors individually

A•Construct a framework to encourage employees to develop individualcareers, and examine and undertake follow-up measures

A•Expand the scope of trainees by introducing a preparatory training
session for new managers, and so on•Formulate basic policies on safety and health; take countermeasures againstrecurrence using an occupational accident database; introduce a newoccupational risk assessment; open Anzen Dojo, a safety training facility•Enlighten employees on disaster preparedness by opening a disasterprevention space•Offer systematic healthcare guidance for employees in need of lifestyle
improvements (lifestyle-related health-problem preemption actions, etc.)•Hold Art Salon sessions in more diverse regions; improve the counselingsystem for mental healthcare•Promote working hour reduction through the positive use of various
working systems of multi working shift, flextime and off-hour working
schedules per month or year, half-day compensatory leave, and special
shortened working hours•Strengthen managerial working-hour control to limit overtime work to 60
hours a month•Keep every employee informed of the expanded and upgraded childcareleave-related systems (since May 2010): extra childcare leave for papas
and mamas, extended period for childcare leave system, childcare
flextime working system, etc.
•Continue to hold routine business councils and convene labormanagement committees to help create a working environment amenable
to enhanced job satisfaction•Ginger up internal recreational events jointly held by labor andmanagement

B
B
B
A

A

A

A
A

•Leverage female talent through positive action•Reemployed 72 retired employees as senior workers or part-timers

A•Joined in company orientation sessions sponsored by the public job-placement
offices in Japan to promote the employment of persons with disabilities•Attained a 1.89% ratio of employees with disabilities in the total workforce(as of June 1, 2010)

A•Ran various internship programs, including practical training sessions,lectures, and online training courses (3,066 interns on a cumulative basis)

A•Encouraged employees to take on new positions through the Challenging
Job System

A•Maintain the Senior Reemployment System as a tool for leveraging theexperiences and specialized knowledge of veteran employees•Diligently facilitate the hiring of persons with disabilities in cooperation withlocal public job-placement offices in Japan•Maintain a 1.8% ratio of employees with disabilities in the total workforce,as designated by the relevant law in Japan•Continue to run various internship programs•Increase opportunities to meet students through company orientation
sessions, seminars in universities and colleges, and so on•Maintain the Challenging Job System as a tool for encouraging employees
to develop their own careers effectively•Establish a framework for properly operating the associate employee systemthrough training sessions in the general affairs departments and audits•Introduced an associate employee system on April 1, 2010

A

•Began to operate the in-house education management system, Career Navigator•Rotated a total of 592 managerial and non-managerial staff between divisions, etc.

S

•Enrich measures to foster human assets active in global businesses

PP. 28–29

PP. 32–33

PP. 30–31

P. 42

P. 34

PP. 35–37

PP. 38–39

PP. 40–41

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

TOPPAN CSR REPORT 201011

Stakeholder Dialogue

Toppan has been setting up a framework for dialogue on
corporate social responsibility (CSR) with key external
experts since fiscal 2004, drawing great benefits from theirviews on ways to facilitate its CSR activities.
In fiscal 2007 and 2008, Toppan convened a series of
CSR Promotion Study Group meetings in a fresh bid toimprove the PDCA cycle of its CSR activities using theknowledge gained through stakeholder dialogues outside the Company. Study group participants in fiscal 2008
offered diverse views on the overall picture of the action
points Toppan expects to become relevant for society andthe Company (see the list on the right).
From among these action points, Toppan selected two
points it has been seeking to address for some years as
discussion topics for fiscal 2009: ideal work-life balance
and CO2 emission reduction as it relates to the incoming
medium-term environmental target.
Mr. Yukio Okubo, General Manager of Works Institute
Recruit Co., Ltd. offered opinions on ideal work-life balance in succession to the meetings of the CSR Promotion Study Group. Mr. Jiro Adachi, executive director of theJapan Center for Sustainable Environment and Society, anon-government organization, gave us his views on CO2emission reduction and Toppan’s incoming medium-term
environmental target (Mr. Adachi joined the dialogue in fiscal
2006).
Action Points Toppan Expects to Become More Relevant
for Society and the Company
Labor◆ Supporting work-life balance(improving productivity andfostering the next generation)◆ Creating better working
environments through partnerships
between labor and management◆ Promoting positive action
Global◆ Establishing a trusted supply ◆ Providing an open environment forrecruitment
chain◆ Promoting employment of persons■ Upgrading environmental
with disabilities
management systems at◆ Supporting second careers foroverseas production sites
retired employees
Environment■ Mitigating global warming
through the developmentof energy-saving measures■ Promoting waste reduction
and recycling

Capturing growing businesses■ Expanding environmental contribution via thedevelopment and marketing of eco products ◆ Social field◆ Providing products and services to help solve ■ Environmental fieldsocial issues

Opinions from Stakeholders (Abstract)
Work-Life Balance (WLB)
I An important operating routine in advancing WLB is to keep constantwatch of your progress in the following five stages: establishing necessary working environments for better WLB, disseminating the company’s measures throughout the workforce, managing and applying
the related systems, enhancing employee motivation, and improving
productivity at the company. You also need to keep an eye on the current situation and take necessary steps whenever the need arises.
I The ideal WLB varies from person to person and closely depends
on factors such as generation, rank, childcare burdens, and the like.
The models and targets should therefore be defined for different groupsof employees.

CO2 Emission Reduction and the Incoming Medium-term
Environmental Target
I CO2 emission reduction requires higher efficiencies in production andenergy consumption. Alongside your existing goal for total emission
volume, you can adopt the efficiency goal of becoming the world’s mostefficient producer and energy consumer in the printing industry.
I The prospects for achieving great technological innovations in a shorttime are remote. It may be effective, however, for you to establish an
ultra-long-term vision with the intent of enhancing employee motivation
towards technological innovation, promptly adopting an innovation
when one finally arrives, and raising your emission reduction target toa level that can be expected with the innovation.

Mr. Yukio Okubo
General Manager, Works Institute Recruit Co., Ltd. Founded the Works
Institute, Recruit Co., Ltd. and became General Manager in 1999.
Specializes in human resource management, labor policies, and career
issues.

Mr. Jiro Adachi
Executive director, Japan Center for Sustainable Environment andSociety (non-government organization). His books include Environmental
Tax—Taxation and Financial Reform and Sustainable Welfare Society(Tsukiji-shokan).

12 TOPPAN CSR REPORT 2010

CSR Management

Toppan’s Social Responsibility
Basic Approach to CSR

14

Corporate GovernanceCorporate Governance

16Compliance Promotion Activities
Compliance Promotion Activities

18

Information Risk Management
Information Risk Management

20

Conduct Guidelines andInformation Management Policy

22

CSR Management

Toppan’s Social Responsibility

Basic Approach to CSR
PointsIToppan’s social responsibility is to realize an ideal “Corporate Structure.” This, together with
“Business Fields,” forms TOPPAN VISION 21.
IToppan has established eight material topics to address through its CSR activities towards
the realization of the Corporate Structure.

Toppan’s Social Responsibility:
Realizing an Ideal “Corporate
Structure”

TOPPAN VISION 21 expresses thebasic concept and directionality of theactivities undertaken by Toppan to growin harmony with society and the global
environment. The vision consists of a
“Corporate Structure” and a set of “Business Fields.” The Corporate Structure ismade up of three elements: Toppan’s
Corporate Philosophy, the Corporate
Creed, and the Conduct Guidelines.
These elements specify a complete setof values, standards, and guidelines forthe business operations of the Toppan
Group. The Group will fulfill its social
responsibilities by realizing the Corporate Structure.
The Toppan Group regularly enlightens its employees on the basic tenetsof TOPPAN VISION 21 (including the
Corporate Structure) through communication in workplaces, training sessions,and a variety of educational tools.

Corporate Philosophy
The Corporate Philosophy, the top-level
concept, underpins all corporate activities at Toppan and defines Toppan’s
most important values and ideas.

Corporate Philosophy

Corporate Creed

Conduct Guidelines

Each of us shallTo build our customers’ trust though
sincerity, enthusiasm, and creativity inall our corporate endeavors.

Chapter 1: Basic Principles

Humankind and Earth today face a hostof issues. The international community
is striving to address environmental
challenges, health-related problems,poverty, and human rights abuses. In
Japan, as in many other developed
nations, birthrates are declining and the
population is ageing.
Toppan believes it has a responsibility
to help solve these problems in cooperation with all of its stakeholders throughbusiness operations conducted under
its founding Corporate Philosophy ofcontributing “to a fulfilling lifestyle as amainstay of information and culture.”
Toppan contributes as an essential
corporate citizen with an active commitment to realizing sustainable development for society and itself.

reciprocate our customers’continued trust,create dedicated products byharnessing our vibrant knowledge
and technology,
and contribute to a fulfilling
lifestyle asa mainstay of information and culture.
Established in June 2000

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

To strive for total innovation from a
global perspective by conducting
marketing and technologicaldevelopment rich in originality.
To conduct fair and open business
operations while acknowledging oursocial responsibilities and aspiring forharmony with our global environment.
To create a positive working
environment by maximizing ourindividual talents and strengths
as a team.
To enhance our corporate
standing and promote the continual
development of the Toppan Groupthrough the exploration of new
possibilities.

Corporate Creed and Conduct Guidelines
The Corporate Creed expresses thestandards that the Toppan Groupapplies to its corporate activities. Built
on the Corporate Philosophy and Corporate Creed, the Conduct Guidelines
express the behavioral norms based on
every employee’s compliance with laws,
regulations, and corporate ethics.
The Group reviews its Conduct
Guidelines every year to examine theneed for revisions. This is done in theconviction that the guidelines will evolve
over time to rationally adapt to the various changes underway in corporate andsocial environments.

1. Respecting basic human rights
2. Maintaining public order andstandards of decency
3. Complying with laws and ethics
4. Conducting fair business
operations
5. Striving to improve quality
6. Appropriate management anddisclosure of information
7. Environmental and safety
considerations
Chapter 2: Specific Conduct Guidelines
Section 1: Building customer trust
Section 2: Reforming operations
Section 3: Fulfilling corporate
responsibilities
Section 4: Creating a positive work
environment
Section 5: Developing the Toppan
Group
Established in June 2000; revised in April 2006

Established in June 2000

14 TOPPAN CSR REPORT 2010

For more detailed information on the Conduct
Guidelines, please see P. 22.

Basic Approach to CSR

Toppan’s Relationships with
Stakeholders

Promotion Structure
The CSR management divisions of thehead office are working in collaboration
with each other under the President &Representative Director and the Director
in charge of CSR. They convene routine
CSR promotion department meetings
to assess the progress of their promotion efforts and discuss ways to resolve
related challenges.

Material Topics andPromotion Structure
Eight Material Topics
To help realize the Corporate Structure,
Toppan has sought out stakeholder
views and established eight material
topics to address through its CSR activities. Action points and goals are now
set for each material topic and reviewed

Eight Material Topics

Toppan’s CSR Promotion Structure
President & Representative Director

Eight Material Topics

Director in charge of CSR

Establishing a trusted
supply chain

Communities

Contributing to society,community, and culture

Shareholders
and Investors

Disclosing information
in a fair and open
manner and improving
transparency

Employees

Respecting andleveraging human assets

Conserving the global environment

Towards therealizationof theCorporate
Philosophy
Corporate
Creed
Conduct
Guidelines

Business
Partners

CSR promotion department meeting

Reinforcing information risk management

Corporate
Structure

Complying with laws, regulations, and corporate ethics

Customers

Assuring product safety
and quality / Providing
products and services tohelp solve social issues

Administration
Legal Affairs Division

Toppan’s Social Responsibility

Stakeholder

through the assessment of their achievement levels (➞P. 10).

CSR Management

To operate businesses and stay viable
as a corporation, Toppan must build
strong ties with its various stakeholders.
And to realize its ideal “Corporate Structure,” the Company must listen closely
to stakeholder opinions and precisely
understand stakeholder demands.
Toppan has defined five categories
of stakeholders, each of them vital forits business operations or potentially
impacted by them: customers (companies, consumers), business partners,
communities, shareholders/investors,
and employees. The Company discloses information to the stakeholders
in these categories and engages themin dialogue.
Stakeholder dialogues are a very
effective way to regularly grasp social
needs. Toppan promotes and upgrades

its CSR activities by incorporating stakeholder dialogues into the PDCA cycle.
In addition to its regular dialogues
in the course of business, Toppan has
been holding special dialogues with representatives from the five stakeholder
categories and with influential experts
on social issues. The dialogues beganin fiscal 2004 and have continued into
fiscal 2009, reaping valuable ideas
on ways to facilitate its CSR activities(➞P. 12).

Secretary Department
Public Relations DivisionCorporate Planning
Division
Personnel & Labor
Relations Division
Finance & Accounting
Division
Corporate Manufacturing,Technology & Research Division
Purchasing Division

TOPPAN CSR REPORT 201015

CSR Management

Corporate GovernanceCorporate Governance
PointsIToppan has strengthened the governance structure through the establishment of a Management Audit
Office, Compliance Department, and Ecology Center under the purview of a Board of Corporate Auditors
according to the Companies Act of Japan.
IToppan advances corporate management under the Related Company Administration Regulationsprescribed for the propriety of operations within the Toppan Group.

Corporate GovernancePresident & Representative Director. The
goal is to lay weight on managerial efficiency
in business judgment. Directors from thehead office and other directors acting as
division chiefs come to these meetings
to discuss and examine measures andpolicies directly related to the Company’sbusinesses from various perspectives.

Toppan is equipped with a Board of
Corporate Auditors under the Companies Act of Japan and has strengthened
its governance structure by establishinga Management Audit Office, ComplianceDepartment, and Ecology Center.
The Company advances its corporate
management under the Related Company Administration Regulations prescribed for the propriety of operations
within the Toppan Group.

Corporate Auditors, Board of
Corporate Auditors, and Audit FirmThree of the five corporate auditors are
external (as of the end of March 2010).
The corporate auditors regularly holdboard meetings, attend meetings of theBoard of Directors and Management
Committee, and carry out audits for operational sites. They audit and advise theCompany from a preventive perspective
to ensure the legality and effectivenessof the operations of the directors anddepartments and smooth and appropriate corporate management in line withcompany policies and regulations.

The Directors, Board of Directors,
and Various Meetings
Toppan has 28 directors on its board(as of the end of March 2010). Board
meetings are held monthly and whenever a pressing matter requires action
or deliberation.
Especially important management
themes are deliberated beforehand by
the Management Committee, a bodymade up of directors selected by the

Toppan strives to audit effectively
through the cooperative efforts of theBoard of Corporate Auditors, the audit
firm KPMG AZSA & Co., and internal
audit-related departments in the Company (notably, the Management Audit
Office). The Board of Corporate Auditors of the Toppan Group also regularly
meets to improve the effectiveness of
the audits by the corporate auditors on
a Group-wide basis. Toppan has had
KPMG AZSA verify the propriety of theCompany’s accounts through audits toenhance the reliability and transparencyof the Company’s financial information.
Two of the three external corporate auditors were newly appointed and registeredas independent directors in March 2010.
Remuneration to Directors andCorporate Auditors
In fiscal 2009, the total annual remuneration to directors was 1,065 million yen
and the total annual remuneration to cor-

Toppan’s Corporate Governance Structure
Meeting of Shareholders
Appointing or dismissing

Appointing or dismissing

Appointing or dismissing

Board of Directors
Auditing
Supervising

Crisis Management Committee

Selecting or demitting

Auditing
Special Committee(for defending against takeover bids) Advising and counseling

President & Representative Director

Responding toemergencies

Business Divisions

Relevant head office divisions (mainly
those responsible for monitoring laws
and regulations) check, evaluate, andimprove the legality and propriety ofoperations in divisions.

Management Audit Office

Investigates and audits the legality andappropriateness of operational activities

Auditing

Compliance Department

Promotes, verifies, and audits the strict
observance of laws and regulations and theestablishment of ethical business practices

Reporting

Ecology Center

Coordination, supervision, and verification of Toppan’s environmental activities
Instructing

Guiding

Other organizations for control

Chief information security
manager

Safety and Health Committee
National Eco-protection Committee

TPM National Conference

Working together

16 TOPPAN CSR REPORT 2010

AssistingNational Conduct Guidelines
Promotion Supervisors

Corporate Auditors Office

Audit firmGroup companies

Observingandguiding(Board of ) Corporate Auditors

Directors in charge
Auditing

Management Committee
Considers issues prior toboard of directors’ meetings

Corporate Governanceporate auditors was 116 million yen.
Please refer to the Status of Corporate Governance, etc. in the financial
statements for details on the method
used to determine remunerations for
directors and corporate auditors andother remuneration-related information.

Strengthening Audit
FunctionsRisk Management Structure

incurred when events at risk of occurring actually occur.
The Rules on Risk Management havebeen established to resolve mattersregarding risk avoidance and the minimization of loss when an event at risk ofoccurring actually occurs. In accordancewith these rules, the Company has set
up a risk management structure underwhich the responsibilities for risk management are allotted to specific divisions
in the head office based on the types ofrisk involved. Under this structure, thedirectors in charge of each relevant division are responsible for taking measures
to prevent, avoid, and correct each typeof risk. Toppan reviews risks to be managed once a year and examines countermeasures to be taken in line with therules. The Company also holds a regular
Risk Management Liaison Meeting forthe persons in charge of risk management in the head office divisions in orderto share information on a continuous
basis and respond to risk practically.

Risk to Be Managed and the Relevant Head Office Divisions in Charge
Risk to Be Managed

Division in Charge
Corporate Manufacturing,
Accidents or complaints related to productsTechnology & Research
Accidents related to main systems
Business System
Occupational accidents, traffic accidents, and other accidents involving employees
Personnel & Labor Relations
Incidents related to notes or accounts receivable
Finance & Accounting
Legal problems with orders received
Legal Affairs
Accidents or disasters related
Leakage of personal information or internal confidential information
Legal Affairs
to company operations
Corporate Manufacturing,
Accidents or disasters related to fires or explosions
Technology & Research
Corporate Manufacturing,
Illegal activities related to the storage of solvents, management of dangerous chemicals, etc.
Technology & Research
Damage to the company’s internal computer system due to cyber terrorism, illegal access
Defamation, slander, and other or use of company information, and leakage of personal information or internal information Business System
criminal damages
Acts of violence against the company (threats, kidnapping, robbery)
Personnel & Labor Relations
Relationships with antisocial
Unreasonable demands from antisocial organizations, transactions conducted between
Legal Affairs
organizations
business partners and antisocial organizations
Material losses or personal accidents suffered by customers or the company due to
Natural disasters
Personnel & Labor Relations
earthquakes, wind or water damage, lightning, etc.
Risk in business management Shareholder derivative lawsuits, hostile takeovers
Legal Affairs
Unlawful activities related to
Corporate Manufacturing,
Violations of the Subcontract Law of Japan, illegal transactions with business partners
external contracts
Technology & Research
Infringement of intellectual
Infringements of patents, trademarks, copyrights
Legal Affairs
property
Corporate Manufacturing,
Environmental problems
Violations of environmental laws or standards, illegal disposal of industrial waste
Technology & Research
Risk in overseas business
Product accidents, environmental problems, fires or natural disasters, damage to humanCorporate Planning
activities
or physical resources caused by international conflicts or terrorism, etc.

Accidents involving products
or product liability

TOPPAN CSR REPORT 2010

Corporate GovernanceToppan manages risk comprehensively
to avoid risk and minimize the losses

CSR Management

The Management Audit Office, a bodyestablished independently from theoperating departments, implements
fair and objective audits of the managerial operating systems and practices
throughout the Company managementfrom legal and rational viewpoints.
The office provides feedback to therelevant departments on the problems
pointed out by the audits, proposes measures for improvement when necessary,and reports the audit results to the President & Representative Director, directors
in charge of relevant departments, andcorporate auditors whenever necessary.
In fiscal 2009 the office carried out
management audits and operation audits

for 17 departments. It also conducted
operational and maintenance evaluations of the internal control over financial reporting for all of Company divisions
and subsidiaries around the world.
The Compliance Department in the
Legal Affairs Division spearheads theCompany’s initiatives to ensure thestrict observance of laws and regulations
and to firmly establish ethical businesspractices. The department facilitates thecomplete awareness of the Conduct
Guidelines and organizes employee
education on compliance with existinglaws and regulations. It also implementsinternal audits on information security(➞PP. 18–21). The Ecology Center in
the Corporate Manufacturing, Technology & Research Division supervises theCompany’s environmental activities byconducting internal audits at each operational site and monitoring the progressof improvements (➞P. 52).

17

CSR Management

Compliance Promotion Activities

Compliance Promotion Activities
PointsIToppan has introduced the Conduct Guidelines Promotion Leader system to disseminate the Conduct
Guidelines and ensure full compliance with them;Irevised the manual and held training sessions to ensure full employee awareness regarding
the revised Antimonopoly Act of Japan; andIlaunched an e-learning-based educational program on compliance with the Subcontract Law of Japan.

Disseminating the Conduct
Guidelines
The Conduct Guidelines consist of seven
Basic Principles and 43 Specific Conduct Guidelines (➞P. 22) to express the
behavioral norms by which every
employee at the Toppan Group complies
with laws, regulations, and corporate
ethics.
Conduct Guidelines Promotion
Leaders
Toppan has introduced a Conduct
Guidelines Promotion Leader system todisseminate the Conduct Guidelines in
the workplace and ensure full compliance with them. A team of Conduct
Guidelines Promotion Supervisors (the“Supervisors”) and Leaders (the “Leaders”) is deployed in every Toppan operational site, including the manufacturingsubsidiaries. The current tally for leadersin Japan stands at 598. Seven percentof these Leaders (42 in total) are female,and Toppan will press ahead with assertive efforts to increase this rate by fostering more female Leaders. A cumulative
total of 3,043 employees have worked
as Leaders since the commencement of

the system in 2004.
From fiscal 2008, the system has
been implemented throughout all Group
companies in Japan, with semiannual
specialist training sessions for Leadersheld jointly with the Group companies.
Dissemination Activities by Conduct
Guidelines Promotion Leaders
The Leaders have formulated an optimal
dissemination plan and devoted themselves to develop activities based on theplan. Their plans are tailored to thedetails of business operations, staff
compositions, and other individual factors at the workplaces where the Leaders serve. The National Meeting ofConduct Guidelines Promotion Supervisors is held each October in Japan forthe sharing and discussion of various
outstanding cases.
Using Tools to Promote the Conduct
Guidelines
Toppan gives every employee a Conduct
Guidelines Casebook, a Q&A style casebook describing actual situations that
can arise in daily work. The Leaders
make good use of the casebook to dis-seminate the guidelines and the Company uses it in rank-based complianceeducation.
The Conduct Guideline Notifications
posted on the Company intranet
heighten employee awareness and callattention to compliance-related issues.
The notifications published in fiscal 2009
provided information on topics such as
information leakage, health and safety,
and improper conduct.
In fiscal 2009, Toppan also sent every
employee a Conduct Guideline Handbook
with explanations of the seven Basic Principles of the Conduct Guidelines in a brief,easy-to-understand style. The Leaders
used this handbook as a tool to stimulate
a deepened understanding of the guidelines among all Company employees.

Operating the Toppan
Group Helpline
The Toppan Group Helpline, the Group’s
internal reporting system set up in 2003,
complies with the Whistleblower Protection Act enforced in Japan from April
2006. The Helpline was extended tocover all Group companies in 2008.
When an employee discovers a legal

Structure to Promote the Conduct Guidelines
President & Representative Director

Director in charge of Conduct Guidelines Promotion
Compliance Department

Divisions in the Company

Divisions of
the head office

Division heads
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 Supervisor
Senior General
Manager of Legal
Affairs Division

Conduct Guidelines
Promotion Leadersin sales andplanning departments

Conduct Guidelines
Promotion Leadersin administrative
departments

Conduct Guidelines
Promotion Leadersin manufacturing
departments

Conduct Guidelines
Promotion Leaders

Sales promotion
managers, etc.

Managers or
supervisors fromeach department

Educational leaders

Managers or
supervisors fromeach department

Employees

18 TOPPAN CSR REPORT 2010

Employees

Training for the Conduct Guidelines Promotion
Leaders

Conduct Guidelines Casebook (left) and Conduct
Guideline Handbook (both in Japanese)Compliance Promotion Activities

violation or injustice, he or she is toreport it to his/her superiors for deliberation. When the employee’s superiors failto settle the problem, the employee isencouraged to call the Helpline to report
the matter with his or her real name. The
Helpline is kept open for use by all directors and employees, including temporary
staff and part-time workers.
The Helpline was used in five cases
in fiscal 2009. The incidents reported
involved improper transactions, power
harassment, and other inappropriate
actions. All five cases were strictly investigated and properly handled, and necessary countermeasures were taken toprevent recurrence.

Promoting Compliance inOverseas Group Companies

Education on Compliance with the
Subcontract Law of JapanTo attain full compliance with the relevantlaws and regulations in transactions with
subcontractors, Toppan launched ane-learning-based educational programon compliance with the Subcontract
Law of Japan in November 2009. This
program was arranged mainly for
employees in the production control
departments and planning and marketing departments. In total, 3,550 employees took part in fiscal 2009. In a separate
effort, 10 major Group companies organized training sessions on the Subcontract Law and reconfirmed the flow of
subcontract transactions in compliancewith the law.

Briefing on ComplianceToppan was not involved in any violations of laws or regulations with major
impacts on society in fiscal 2009. The
Company received no criminal punishments, administrative penalties, or administrative guidance.

Toppan Group Helpline
Communicator

When a problem
is not settled

All Group employees

Compliance Promotion Activities

Education on Compliance with the
Antimonopoly Act of JapanThe Company revised its Manual onCompliance with the Antimonopoly Act
and distributed it mainly to employees inthe sales departments to fully informthem of the details of the revised Antimonopoly Act enforced in Japan in
January 2010. The Company alsoorganized 32 workshops across thecountry on the prevention of bid rigging
and cartel operation, from January to

March 2010. A total of 3,417 employees
participated.

CSR Management

By fiscal 2008, the Toppan Group had
already introduced and disseminatedConduct Guidelines for subsidiaries ineastern Asia to promote compliancemanagement in Group companies outside Japan.
Later, in fiscal 2009, the Group organized training for the Conduct Guidelines
Promotion Leaders in subsidiaries in China.

Compliance Education
Compliance Education
As in the previous fiscal year, Toppan held
the semi-annual specialist training series
for Conduct Guidelines Promotion Leaders in Japan in fiscal 2009. In the firstseries, 581 Leaders were trained in 28
sessions across the country, from May to
July 2009. In the second, 526 Leaders
were trained in 28 sessions, from November 2009 to February 2010.
Toppan also held an ongoing seriesof compliance courses in rank-based
training sessions for new employees andnewly appointed supervisors and managerial staff.

Reporting andconsultation

Superior
Reportingon progressand results,
Follow-up
communication

Internal reporting(emails or sealed
documents sent with theemployees’ real names)

Manual on Compliance with the Antimonopoly
Act (in Japanese)

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

Reporting

Investigation andcountermeasureorganizations

E-learning-based educational program on compliance with the Subcontract Law (in Japanese)

TOPPAN CSR REPORT 201019

CSR Management

Information Risk Management

Information Risk Management
PointsIToppan has issued the Information Security Management Guidebook (2009 revised edition) and Close Callson the Job, Vol. 3, and held briefing sessions on both;
Iaudited internal system assets and assembled a USB flash drive quarantine system; andIintegrated a risk assessment function within the department-based information management ledger system.

Preventing Human Error
through Total Risk Awarenessin Daily Operations

Assessing Risks under ISO/IEC 27001 and Promoting
Certification Acquisition

Reinforcing Countermeasuresagainst New Types ofComputer Viruses

As a company operating in the information communication industry, Toppan
handles a great deal of personal information and other types of data entrusted
by customers. Convinced that information security management is vital for theassurance of customer trust and confidence, Toppan treats information withthe utmost care to guarantee security.
Two in-house publications have been
issued to alert employees to the potential for mistakes and mishaps in thedaily handling of information: Information Security Management Guidebook,2009 revised edition and Close Callson the Job, Vol. 3. Toppan employees
regularly read through both publications
together at the workplace.
The Company also held 190 briefing
sessions across Japan to reliably disseminate the information-handling rules
to all employees. The briefings were set
up in a face-to-face lecture style known
to be effective in encouraging changesof mindsets through a group education
approach. Employees took tests after
the lectures to assess their understanding of the points.

In line with the in-house rules and bylaws
based on ISO/IEC 27001, the global
standard for information security management systems (ISMS), Toppan manages and controls information with aninformation management ledger systemestablished in all departments.
A risk assessment function has been
integrated within the ledger system since
fiscal 2009. Mechanisms are now inplace to automatically evaluate the propriety of data storage for information
input into the system and to encourage
the departments to improve their methods for storing information.
Toppan has also comprehensively
promoted certification acquisition for
operations in sites in the Electronics field
and in tightly secured areas designatedfor the handling of personal information
across the Company (seven operations
were certified as of March 31, 2010).
In fiscal 2009, the boundaries of two
operations were expanded as well.
Monitoring software has been installedin tightly secured areas designated for thehandling of personal information. The head
office verifies the monitoring reports.

Computer viruses frequently infect computers all over the world. Some infiltratecompany networks via infected removable memory drives such as USB flash
drives. Some are created to tamper
with information on company websites.
Broadly speaking, computer viruses are
one of the main causes of information
leakage, falsification, and manipulation.
Toppan has recently formed a task force
led by personnel working in information
systems and technology, areas in which
information management has been an
issue of strong focus for years. It has
also established a Company-wide system and rules on the safe use of information with computers to reinforce
countermeasures against computerviruses. With help from the task force,the system and rules are widely enforced
throughout the Company and its manufacturing subsidiaries.
Toppan will continue to intensify
countermeasures against computerviruses as they evolve in step with the
spread of computers and the Internet.

ISO/IEC 27001 Certification(as of March 31, 2010)
IInformation and Communication Division•TOPICA(December2001)•Asaka Securities Printing Plant, Toppan
Communication Products Co., Ltd.—Information and Communication Manufacturing
Subdivision (June 2006)•IT Development Department, Toppan Idea
Center; Contents Division, Toppan Graphic
Communications Co., Ltd. (July 2008)•Takino Securities Printing Plant, Toppan
Communication Products Co., Ltd.— Information and Communication Manufacturing
Subdivision (November 2008)
IElectronics Division
Photomask departments, Semiconductor
Related Subdivision (January 2008)
IToppan Multisoft Ltd.
Data Center (February 2008)
IMapion Co., Ltd. (August 2008)

Management Flow for the Handlingof USB Flash Drives

Information Security Management Guidebook,2009 revised edition (in Japanese)
Close Calls on the Job, Vol. 3 (in Japanese)

20 TOPPAN CSR REPORT 2010

Lending department
IRecording flash drive loan
IRecording flash drive return
USB flash drive with
anti-virus function

Business partner

Operating department
IUsing a USB flash drive
IReceiving a USB flash drivefrom a business partner
Terminal forquarantine

IQuarantining flash drive
and recording each use
or receipt

Information Risk Management

Enhancing Internal Audits
and Introducing a System
Asset Audit

Division Internal Audits
Each division conducted advisory internal audits with a standard checklist of
175 items for 228 departments, including departments in the manufacturingsubsidiaries.

In fiscal 2009, Toppan carried out internal audits on the following four procedures in order to maintain and improve
its information management structure on
an ongoing basis.

Audits on the Processes for
Handling Personal Information
The Company audited all of the processes for handling personal information. The audits were conducted froma quality-control perspective to impose
the appropriate procedures for preventing information-related accidents.

Survey of Actual Conditions
Prior to the internal audits, the Company
surveyed the entire Toppan workforce(21,617 employees in total, including
temporary staff) on the actual status ofcompliance with 41 newly establishedrules on the routine handling of information and devices. The department trends
clarified through survey results were thenused for the internal audits.

Reinforcing Quality Controlof Websites

Auditing StructureManagement Audit Office
Chief information security manager
Information Security Management Promotion Committee

Meetings of Information
Security Managers
Administrative
office(Legal affairs
departments)•Corporate planning departments •Manufacturing, technology& research departments •Business system departments•Legal affairs departments •Administrative departments
handling Web-related businesses
Manufacturing system research departments
Information, technology & research departments

Senior information security managers
Information security managers
Administrative office / Persons in charge of operations

Division internal audits

Sales and planningdepartments(Department managers)•System managers•Information security managers for supervising Web-related
businesses•Education managers•Managers supervising partner companies

Administrative
departments(Department managers)

Production control
departments(Department managers)

Head office audits

Auditingsupervisors

Toppan fosters in-house proponents of
information security management byholding training sessions for employees who seek qualification to serve asinternal assistant auditors responsible
for auditing the ISMS. Now, in the thirdyear since the inception of this fostering system, 111 Toppan employees aredesignated as ISMS-qualified staff.
The Company facilitates the use of
trained human assets as internal auditors and arranges follow-up training programs as well.

Activities in Fiscal 2009

President & Representative Director

Divisions

Strengthening Information
Management Foundations
through Human Asset
Development

Manufacturing departments(Manufacturingsubsidiaries, others)

IMeetings of Information Security Managers:
May 2009, February 2010
IRegular meetings of the Information Security
Management Promotion Committee: weekly
IInformation Security Promotion Meetings
for Related Companies: April, July, andOctober 2009
IVarious surveys•Audit on the handling of personal information:from April 2009 to February 2010
•Survey of actual conditions in Web-related
businesses: May, August, and November
2009, February 2010
•Survey of actual conditions in all tightly
secured areas: May 2009
•Report on the monitoring of all tightly secured
areas: monthly
IEducation•Regular training for information security: from
July to December 2009
•Internal auditor training: from October toNovember 2009
•Training for personnel handling Web-related
businesses: from September to October 2009
•Training for ISMS internal assistant auditor
qualification: September 2009
•Issuance of Information Security Management
Guidebook booklet: June 2009
•Issuance of Close Calls on the Job booklet:
May 2009, February 2010

TOPPAN CSR REPORT 2010

Information Risk Management

Head Office Audits and System
Asset Audits
In fiscal 2009, production system verification was added to the head officeaudit for the overall management structure at Toppan divisions. The head office
informed division senior managers ofvulnerabilities detected in their systemmanagement and worked together withthem to improve these vulnerabilities.

The Toppan Group holds a quarterly
Information Security Promotion Meeting for Related Companies in order toentrench the PDCA cycle in Group companies by checking the progress of theirmeasures in place.
The Group conducts various audits
for educational support and high-risk
operations. It has also conducted several
audits for overseas sites in Shanghai.

CSR Management

Toppan strives to ensure the security of
its websites. The Company surveys theactual conditions for security verification
on about 300 websites every quarter toprevent information leakage and tampering. It has also installed a tool to automatically detect website vulnerabilities
and a system for operating the tool.

Reinforcing Cooperation
within the Group21

CSR Management

Conduct Guidelines and Information Management Policy

Conduct Guidelines and Information Management Policy
Conduct Guidelines
Chapter 1: Basic Principles

Chapter 2: Specific Conduct Guidelines

1. Respecting basic human rights
We will act in a way that our individual talents and abilities can bedemonstrated to their maximum potential based on the concept ofrespect for people. We will respect basic human rights and in every
regard work to ensure the dignity of individuals.

Section 1: Building customer trust
1. Doing our best for the customer
2. Maintaining customer trust
3. Appropriate management of customer property
4. Protecting information about customers
5. Appropriate handling of personal information
6. Protecting confidential corporate information

2. Maintaining public order and standards of decency
We will always be aware of our involvement with society, act withgood sense, and never act in a way that disturbs public order orthat defies common sense. We will sufficiently consider the effectsof our operations on society and not act in a way that goes against
public order and standards of decency.
3. Complying with laws and ethics
We will conduct ourselves in a way that complies with the laws
and ethics in society. We will comply with overseas and domestic
laws, regulations, commercial practices, government notifications,and operational and industrial standards applicable to our corporate
endeavors. Compliance with these laws and regulations forms theminimum standard of society’s rules and we will uphold them without
fail. In addition, we will act with a high sense of ethical and moral
awareness in carrying out our operations. Even in situations whenlegal issues do not arise, we still cannot allow humanitarian, moral,
or ethical problems to develop.
4. Conducting fair business operations
We will conduct all foreign and domestic operations in a fair manner.
As an upstanding corporate citizen, we will be aware of our social
responsibilities and carry out sound operations that will not damage
our reputation in society.
5. Striving to improve quality
With regards to the “dedicated products” that we provide to customers, we will strive to improve quality based on the concept of “Total
Quality Assurance,” not just in the direct manufacturing and quality
management sections but throughout the entire Company, including
sections related to sales, research, and administration.
6. Appropriate management and disclosure of information
Fully recognizing the importance of information, all employees will
undertake its appropriate management. Even if it affects us adversely,
we will not conceal information but actively undertake its appropriate
disclosure and increase the transparency of our operations.
7. Environmental and safety considerations
We will carry out operations in harmony with the global environment.
We will protect the precious environment bequeathed to us by natureand perform corporate operations that strive for reduced use oflimited resources and facilitate recycling.
Furthermore, we will conduct safe production activities, ensure
product safety, and aim to facilitate a healthy and secure society
to live in.

Information Management Policy
1. Employees shall comply with all internal rules on information management and manage information appropriately in full observance of thelaw and social order.
2. Employees shall collect information for appropriate purposes using
appropriate methods.
3. Employees shall recognize the value of information as an asset and use
information safely and efficiently for the stated purpose of use.
4. Employees shall safely manage information handled on behalf of customers to secure customer trust.
5. To ensure the appropriate management of information at all times, theCompany and its employees shall improve its information management
system based on periodic reviews of social circumstances, technology
trends, and the latest revisions in information systems.
Established on April 1, 2001

22 TOPPAN CSR REPORT 2010

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

Revised in April 2006

Social Report

For Customers
Assuring Product Safety and Quality

24

Providing Products andServices to Help Solve Social Issues

26With Business Partners
Establishing a Trusted Supply Chain

28

With Communities
Cultural Contributions

30

Social Contributions / Community Contributions

32

With Employees
Merit-based Personnel Policies

34

Realizing a Safe andSecure Working Environment

35

Leveraging Diverse Human Assets

38

Developing and Fostering Human Assets

40

With Shareholders and Investors
Increasing Transparency andDistributing Profits Appropriately

42Social Report

For Customers

Assuring Product Safety and Quality
PointsIToppan commits to total quality assurance not just in the direct production departments, but throughout
the entire Company.
IToppan carried out head office audits of the operational status of the quality management systems of
29 ISO 9001-certified sites and routine internal audits of certified sites.

Total Quality Assurance
Every customer who has a product manufactured at a Toppan plant prescribes a
precise specification, and every specification requires a separate approach toquality assurance.
To build a product of satisfactory
quality for a customer, Toppan musthave more than just an accurate graspof the customer’s needs. The Company
must know the unspoken demands thateven the customer cannot see. Once allof the needs and demands are known,
the Company must incorporate themseamlessly into the final product.
Quality assurance for products at
Toppan is a concern for every department, not only the departments directly
responsible for production. The departments involved in marketing, R&D,
planning, design, sales, and delivery allcontribute to absolute quality. This is
why Toppan describes quality assurance
in production as a total activity (“Total
Quality Assurance”) with top priority forbusiness management.

Assuring Product Safety
and Quality
The following departments take comprehensive activities throughout the processes
to deliver wholly safe products fully compliant with the specified requirements.
Activities in the Sales and Planning
Departments
As active contributors to every process,from the submission of product plans
to final delivery, the sales and planningdepartments at Toppan keep the otherrelevant departments informed of theexact customer requirements in termsof quality, cost, and delivery (QCD). Their
participation and guidance redoubles
the assurance of high quality.
The 10 Toppan textbooks for sales
departments cover a wide range of topics such as the creation of safe products
and compliance with the Product Liability(PL) Act of Japan. Every sales department
in every division uses the textbooks for
employee education and case studies.
Activities in the R&D Departments
The Technical Research Institute has
established guidelines on research

Total Quality Assurance in Toppan’s Business Activities
Planning

Estimate
Receipt of Order

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

IHave we accurately calculated costs?

Production
Instructions

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

Production

IHave we delivered the quality the customer demands?

Inspection

IHave we properly inspected the product?

Shipment

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

24 TOPPAN CSR REPORT 2010

results for the development of products
in consideration of safety and the environment. Based on these guidelines, theinstitute researches and develops safe
products in accordance with related laws
and regulations, including the PL Act.
The product safety considerations cover
all R&D processes, from the first stageof research up to design reviews for thecommercialization of research results.
Activities in the Technology andProduction Departments
Toppan has established a unique quality assurance system in technology andproduction departments. All of thesedepartments are responsible for manufacturing products that meet the quality requirements of customers. Oncethe technology departments define theideal production conditions, the production departments refine the conditionsprescribed for eliminating production
defects through Total Productive Maintenance (TPM) and other management
techniques. Finally, the Company standardizes the refined production conditions as rules to be maintained under the
ISO 9001 quality management systems

Quality Assurance for Intellectual
Property
Quality assurance for intellectual property is a
crucial matter for Toppan, an enterprise thatworks with creativity and inventive ideas in all
business processes, from planning to shipment, in every department.
Toppan is eager to file patents to protect its intellectual properties, especiallythe technologies and business models theCompany derives from its most ingenious,
inventive concepts. At the same time, theCompany takes careful steps to avoid any
infringement of the copyrights, trademarks,and other intellectual property rights held byother companies. This is essential to protect
customer companies from the risk of trouble
or inconvenience in the course of business.
As one measure to avoid unintended
infringements, the planning departments instruct employees and business partners on
copyrights and explain actual cases.

Assuring Product Safety and Quality(QMSs) and audits the relevant departments to confirm that the rules are
enforced throughout the Company.

Improving the Effectivenessof QMSs through Audits andExpansions in the Boundaryof ISO 9001

Adopting a Certified
Approval System for
Manufacturing inFood-related Businesses

Audits on Food Container andFilling/Packing Business

Improvement by TPM Rootage by ISO
Thorough coverage through auditing

Required quality

TPM and ISO
Further
ISO (auditing)upgradesDissemination to
all employees throughstandardization and education
Verification of thorough coverage

TPM
Assessment of ideal conditions
Improvement of the conditions prescribedfor eliminating defects in manufacturing

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

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

Approach to Product Safety

For Customers

Quality Assurance Cycle in
Manufacturing Departments

Manufacturers all around the world arepressed to more strictly manage thechemical substances contained in theirproducts. Toppan established a set of
in-house guidelines for the managementof chemical substances in products in2006. More recently, throughout fiscal
2009, the Company continuously built,
maintained, and reviewed its quality
assurance systems for chemical substances in the products produced by thedivisions in the business fields of Electronics, Living Environment, and Information & Networks. Toppan has asked
its business partners to submit certifications for non-usage or exclusion of substances prohibited by the Company andto cooperate with Toppan in establishingin-house management systems of theirown. The Company has also verified thecurrent status of the management systems at its overseas operational sites.
Toppan will advance these Groupwide approaches to enhance theeffectiveness of chemical substancemanagement in fiscal 2010.

Social Report

Thirty-nine operational sites at Toppan
have acquired the ISO 9001 certification (as of March 31, 2010) and operate their quality management systems(QMSs) on an ongoing basis. External
auditors revisit these sites for routine
surveillance audits once a year and forreassessments for renewal once every
three years. The head office carried out
35 audits to confirm the operation statusof the ISO 9001 QMSs at 29 operationalsites in fiscal 2009. Routine internal
audits were also conducted at certified
sites. In addition, 17 training sessions forinternal auditors were held to improve
the quality of the internal audits. These
activities continue to enhance the effectiveness of the QMSs at Toppan.
The latest information on ISO certification is available at http://www.toppan.
co.jp/english/csr/iso.html.

The head office audits primarily seek
to verify whether the points improved
through TPM activities and defect-prevention measures are properly standardized as rules, whether the standardized
rules are accurately observed, andwhether there are possibilities for further
improvement.
In food filling and packaging, a business that requires exacting quality assurance for safety and sanitation, the audits
cover not only in-house plants, but all
operational sites, including those of production business partners. Toppan has
adopted a certified approval system toensure that operational sites can manufacture only after receiving the required
ratings based on audit results.
In fiscal 2009, the Living Environment Division (renamed from Packaging Division in fiscal 2009) continued tocollaborate with the head office in audits
to verify that all operational sites had
responsible quality assurance practices
in place.

Managing Chemical
Substances in Products

Toppan has enacted its Basic Stance andGuidelines on Product Safety Management(http://www.toppan.co.jp/english/csr/safety.
html) to respond to the Product Liability (PL)Act and Consumer Product Safety Act ofJapan. Based on the stance and guidelines,
the Company has been improving productsafety management to provide customers
with safer products. Several briefing sessions
on product safety were held in fiscal 2009 forbusiness partners entrusted with manufacturing of sales promotion (SP) products. The
Company will formulate more effective product safety mechanisms by checking the status of operation and employee education on
product safety management in each divisionin fiscal 2010.

Operational Sites Audited
Food containers•7 operational sites at divisions and manufacturing subsidiaries
Filling/packing business•5 operational sites at manufacturingsubsidiaries•12 operational sites at production business partners

TOPPAN CSR REPORT 201025

Social Report

For Customers

Providing Products and Services to Help Solve Social Issues
PointsIToppan has developed an MEA for a fuel cell with a power output well beyond the desired value ina multi-party project;
Ilaunched the mass production of solar cell back sheets at the Fukaya Plant in Saitama, Japan; andIestablished the Toppan Declaration on Universal Design and revised Toppan’s Principles on Universal Design.

Developing Technologies toHelp Solve Social Issues
The Technical Research Institute playsa central role at Toppan in exploring
untapped areas of science and pushing
forward with R&D projects on new products designed to respond to future market needs. The institute has been making
headway in research to develop highperformance products with enhanced
environmental benefits. Its productdevelopment efforts are guided by analyses carried out in close cooperation withthe sales and marketing departments tograsp the latest customer and market
trends.
Next-generation Products Developed
by Technologies Derived from Printing
Advances in technologies—surfacetreatment technology, microfabrication
technology based on prepress technology, and technologies acquired inprinting—have led to the developmentof next-generation products such as themembrane electrode assembly for fuelcells and light-extraction films for organic
electro luminescence lighting panels.

Developing ProductComponents for Reduced
Carbon Dioxide Emissions
Membrane Electrode Assembly(MEA) for the Fuel Cell
The fuel cell generates electricity througha reaction between hydrogen and oxygen. The low environmental burden
properties of the cell qualify it as an
ideal source of next-generation energy.
Toppan is developing a membrane electrode assembly (MEA) and a separator,
two core components for fuel cells, byapplying an array of proprietary technologies for inking, coating, and laminating.
The MEA consists of a catalyst layer andelectrolyte membrane for optimal powergeneration efficiency and durability.
In a NEDO* project to develop newmaterials for the fuel cell in fiscal 2009,
Toppan and other participants developed an MEA for a fuel cell with a power
output well beyond the desired value.
*New Energy and Industrial Technology Development Organization of Japan

Passing Down Cultural Assets as Virtual Reality (VR) Reproductions
Screenings of The Ashura Statue VR Production at Exhibitions in Japan
Toppan created The Ashura Statue virtual reality (VR) production, a precise reproduction of the Ashura statue (a national treasure of Japan)
digitally archived through a combination of high-definition image processing, color measurement, and three-dimensional (3D) measurement
technologies. Many of the 1,650,000 visitors who came to “The National
Treasure ASHURA and Masterpieces from Kohfukuji” (exhibits held at
the Tokyo National Museum and Kyushu National Museum in Japan)
appreciated the screenings of the VR production. The VR conversion
preserves this precious cultural asset as digital archive data viewablefrom any angle at extremely close range. Audiences can now directly
experience true-to-life impressions of the statue.
Toppan has created numerous VR productions of cultural assets inthe conviction that VR technology has great potential as a novel visual
medium for the exhibition of cultural assets.

Light-extraction Film for the Organic
Electro Luminescence Panels forLighting
The organic Electro Luminescence (EL)lighting panel has a light-emitting surface
made from organic EL, an amalgam of
special organic compounds that emit
light using electric energy. The organic
EL has the potential, in theory, to surpass
fluorescent tubes in power efficiency.
Toppan holds a stake in a corporation
exploring the business potential of theorganic EL panel and supports development by designing and producing thelight-extraction film fixed to the panel.
In fiscal 2009, this corporation createdand exhibited an organic EL lighting
panel incorporating the light-extraction
film developed by Toppan for enhanced
luminosity.
Back Sheet for the Solar Cell
One of the arch foes of solar cells
installed outdoors is water vapor in the
air. Toppan develops and produces aback sheet to prevent vapor in the airfrom infiltrating the cell. Toppan’s backsheet serves as one of the world’s high-Light-extraction Film for the Organic Electro
Luminescence Panels for Lighting
With a light-extraction film

Without a light-extraction film

Efficiently uses light energy
without waste

Lightextraction film
GlassTransparent
electrode
Organic emitting
layer (Organic EL)
Electrode
Glass

Back Sheet for the Solar Cell
Silicon element

A digital image during VR
reproduction

Digital archiving with 3D measurement technology©Toppan Printing Co., Ltd.

Photo shoot and measurement support
from Kofukuji (Kyoto)

26 TOPPAN CSR REPORT 2010

Solar light

Foreface glass

SpacerBack sheet
Water vapor

Providing Products and Services to Help Solve Social Issues

est-performance vapor barriers andimproves efficiency in the use of light byreflecting any light not converted into
electricity through silicon elements.
In fiscal 2009, Toppan completed construction of the Fukaya Plant in Saitama,
Japan and commenced the mass production of back sheets for solar cells.

ageing. With social trends like these,
the roles of universal design (UD) havebeen growing in importance.
In April 2010, Toppan establishedthe Toppan Declaration on Universal
Design, a statement of its purpose andstance in the creation of UD designs,
and added a seventh clause to Toppan’s
Principles on Universal Design (enacted
first in 2001).
Based on the declaration and principles, the Company has restructured its
UD initiatives to assign greater weight
to sensory values and customization
while maintaining emphasis on functions
such as understandability and usability.

Challenges in Universal
DesignAs Toppan sees it, universal design (UD)is a corporate social responsibility forevery company. Toppan strives to realize the fulfilling lifestyles enunciated in
its Corporate Philosophy by producing
attractive, easier-to-use products andservices customized to users in various
scenes of life.

For Customers

Toppan Declaration on Universal
Design and Toppan’s Seven
Principles on Universal Design
Improving social ethics among consumers, a shift towards consumption withemphasis on comfort and sensory values, and the advance of globalization,
declining birthrates, and population

Social Report

UD Efforts at Toppan Departments
In parallel with their perpetual endeavors to develop intuitive materials withenhanced user friendliness, the packaging departments are now pressing
ahead in the planning and developmentof packaging materials with enhanced
comfort. One recent fruit of their efforts
has been the commercialization of a
package designed to make a special
sound every time it is closed.

Departments in the Information &Networks field, meanwhile, are gearing
up their work to plan and develop attractive printed materials with higher readability and understandability. Recently
commercialized examples of their efforts
include a pop-up catalogue and Toppan
E-UD, a UD production assistance service for public relations tools.
Toppan has also been offering various survey and analysis services tohelp users resolve their problems scientifically. These activities put momentum
behind Toppan’s drive for user collaboration in UD design through the solicitation of widespread user participationin the development of UD products andservices.

Toppan Declaration on Universal Design
The starting point of our Universal Design isthe provision of dedicated products and services realized throughcompassionate consideration of users.
By engaging in repeated dialogues with people from all walks of lifeand consistently incorporating the ideas of each person,
we will create dedicated products that are
comfortable, easier-to-use, and environment- and human-friendly.
As a corporation extensively involved in human life,
we will help realize a society with a high appreciation of diversity
through approaches to Universal Design.
Established in April 2010

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

Pop-up catalogue

Packagedesigned
to makea specialsoundevery time
it is closed

Eye-tracking camera for analyzing consumer
gaze behavior

TOPPAN CSR REPORT 201027

Social Report

With Business Partners

Establishing a Trusted Supply Chain
PointsIToppan has asked equipment suppliers to cooperate with the Group’s efforts in CSR procurement; andIinformed business partners of the Group’s revised Standards for the Chemical Components of
Raw Materials Ver. 2.0.

Promoting CSR
Procurement
The Toppan Group implements CSR
initiatives in cooperation with business
partners throughout the entire supply
chain to enhance corporate value forevery counterpart. Towards this end,
the Group has established a set of CSR
Procurement Guidelines to promote CSR
procurement in collaboration with business partners involved in the provisionof raw materials and equipment and the
production and processing of products
for the Group.
These guidelines consist of the
Basic Procurement Policy and the CSR
Procurement Standards. The Basic
Procurement Policy is a conceptual
framework to be closely observed byevery employee involved in procurement
operations. The policy enunciates the six
principles: the offering of impartial opportunities; compliance with legislation andfair business dealings; strict information
control; environmental consideration;
pursuit of quality, cost, and delivery(QCD); and promotion and developmentof CSR initiatives. To deepen employee

understanding of the Basic Procurement
Policy, the Group incorporates the Conduct Guidelines, the Purchasing Rules,
and the Subcontract Law Compliance
Manual in education and training.
The CSR Procurement Standards
stipulate the requirements to be satisfied by every business partner. At thesame time, all employees in the Toppan
Group are required to adhere to thestandards.

Boundaries and Breadthof the CSR Procurement
Standards
The CSR Procurement Standards require
the close consideration of the following
issues in the course of all business activities at the Toppan Group: basic humanrights, public order, compliance withlaws and regulations, information management, the environment, QCD, andsocial contributions. The 20 standards
categorized into the eight separate
areas covered by the CSR Procurement Standards conform with Toppan’s
Conduct Guidelines and the CSR terms
established by the Japan Electronics

and Information Technology Industries
Association (JEITA). The Group asks its
business partners not just to seek cost
performance, but also to give close
consideration to society and the environment in each of the fields specified
by the 20 standards.
As a basis for business, the Toppan
Group recognizes that every business
partner must have a full understandingof the purposes of CSR procurement at
the Group, must comply fully with theGroup’s CSR Procurement Standards,
and must fully cooperate in the implementation of CSR initiatives. The business partners of the Group include raw
material and equipment manufacturers,
trading companies, sales agencies,
companies entrusted with production
and processing, companies specializedin planning and design, and providers ofservices and labor.

Complying with the CSR
Procurement Standards
and Advancing CSR
Initiatives Interactively
The Toppan Group asked equipment

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

28 TOPPAN CSR REPORT 2010

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

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

Establishing a Trusted Supply Chain

Assisting Business Partners
in the Management ofChemical Substances

One important factor in building a sustainable society is to purchase environmentally friendly products preferentially.
In conformance with the Green Standards for Offset Printing Services
established by The Japan Federation of
Printing Industries (JFPI), Toppan introduced a set of green procurement standards in April 2002 and revised them inMarch 2006. By fiscal 2009, Toppan’s
conformance ratio for offset ink hadreached 96.8%. For paper products
such as recycled paper and forestcertified paper, Toppan is consideringa revision of its in-house procurement
standards through the adoption of acomprehensive evaluation techniquestipulated under the Law on Promoting
Green Purchasing of Japan.
For its office operations, meanwhile,
Toppan established a Basic Policy ofGreen Purchasing in January 1999.
Under this basic policy, the Company
selects products that meet in-housegreen purchasing standards and purchases them on an ongoing basis.
In-house Green Purchasing
Standards and Level of Fulfillment

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

Product
Copy machines and printers
Configured to automaticallyrevert to low-power mode or
off mode
PCs
Configured to automaticallyrevert to low-power mode or
off mode
Stationery and office goods
Products listed in the ecofriendly product catalogues ofmanufacturers

Fiscal 2009
95.8%

With Business Partners

Among the CSR Procurement Standards
in place, the standard governing themanagement of chemical substanceswith the potential to harm humans isextremely important. To keep up withsocial trends and amendments in relevant laws and regulations, the Toppan
Group revised its Standards for theChemical Components of Raw Materials
into Ver. 2.0 and increased the numberof groups of designated substances to
38. These changes mark the Group’s
progress in bolstering risk management
in collaboration with business partners.
Each of the common standards for
the Group is supplemented by separate standards set for businesses that
require management systems for specific product types such as electronic
components, bank and credit cards,
and packaging for food and medical
supplies.
In fiscal 2009, the Group expanded
its management coverage to include
businesses in the fields of commercial
and publications printing.

Promoting Green
Procurement and Green
Purchasing

Social Reportsuppliers to cooperate with its CSR
procurement efforts in fiscal 2009. Everybusiness partner willing to observe theGroup’s standards of CSR procurement
submits a memorandum of cooperation
and reports the current status of its CSR
activities in a questionnaire.
The Group strictly manages the information written up in the memorandums
and questionnaires and consolidates
them into a Business Partner Database. The compiled information serves
as a valuable source for the promotion of Group activities such as opinion
exchanges on CSR initiatives with business partners.
The Group also installed the Supplier
Hotline, a portal for receiving reports
from business partners, in fiscal 2009.
The hotline is another channel for thesteady improvement of communication
with business partners.
And to ensure full compliance withthe guidelines at Toppan’s procurement
departments, the Group has expanded
the boundaries of companies participating in Business Partner Monitoring,a survey system for monitoring business
partner satisfaction.

100%

82.7%

TOPPAN CSR REPORT 201029

Social Report

With Communities

Cultural Contributions
PointsIThe Printing Museum and Toppan Hall will celebrate their 10th anniversary in 2010.
IThe Tosho Bunko Collection of The Textbook Library curated by Toppan Group’s Tokyo Shoseki Co., Ltd.
was designated as an Important Cultural Asset of Japan.

As a Mainstay ofInformation and CultureEver since its invention, printing has
contributed to the development of culture and art through the conveyance of
information. The information conveyed
through printing can amaze and leave
deep impressions. Activities to contribute to culture help Toppan live up to
its identity “as a mainstay of information and culture” under the Corporate
Philosophy.
The Printing Museum and Toppan
Hall annexed to the Toppan Koishikawa
Building in Tokyo are venues for a hostof cultural activities sponsored and organized by Toppan. Both of these facilities
will celebrate their 10th anniversary in
October 2010.
Group companies such as Tokyo
Shoseki Co., Ltd. (a publisher of school
textbooks) and froebel-kan co., ltd.
(a publisher of children’s and picture
books) have also been contributing culturally. Toppan is eager to contribute to
the growth of not only the Group, but theprinting industry as a whole.

Activities to Contribute to
CulturePrinting Museum
The Printing Museum, Tokyo pursues
activities towards the establishment of
a new academia, the “study of printing
culture,” to cultivate learning on the cultural dimensions of printing itself. The
museum produces a diverse assortmentof programs to proliferate and spread theawareness of printing culture. More than
290,000 people have visited to date.
The public can visit temporary special exhibitions and the General Exhibition Zone in the Main Exhibition Room.
The P&P Gallery, Printing Workshop,
VR (Virtual Reality) Theater, specialized
library, and museum shop are also operated onsite. A permanent installation in
the General Exhibition Zone presents
an easy-to-understand history of printing over a timeline spanning five ages,
from the birth of printing to the present. The Printing Workshop, a space foreducation and training, has been usedby over 150 institutions and organizations, including companies and schoolsof all levels, from elementary schools totechnical colleges and universities.
The museum held a textbook exhibition at the Main Exhibition room in fiscal
2009: Textbooks That Supported Modern Education in Japan—Textbooks fromthe Tosho Bunko and Printing Museum
Collection. Visitors learned all aboutschool textbooks that have supported
the development of Japan’s educational system in modern times. Mostof the textbooks and other educational
materials on exhibit were from the Tosho
Bunko Collection, a newly designated
Important Cultural Asset of Japan. The
exhibition traced the history of Japanese
textbooks up to the publication of themodern volumes commissioned by the
Ministry of Education after World War II,
revealing the roles of textbooks as a print
media and their connections with printing technologies and society at large.
The P&P Gallery, meanwhile, presents temporary standalone exhibitions
on themes mainly to do with modern
printing techniques and designs. Several exhibitions were organized in fiscal

Tosho Bunko Collection, a Newly Designated Important Cultural Asset of JapanThe Textbook Library (Tosho Bunko) curated by Tokyo
Shoseki Co., Ltd. houses about 140,000 books andother printed materials. Among them, a collection of
76,420 volumes has been designated as an Important Cultural Asset of Japan and registered as modern
schoolbook-related materials in the historic resources
category.
The Agency for Cultural Affairs of Japan decided
to award this designation for the following reasons:
IThese holdings make up the most distinguished collection of school textbooks and related materials inmodern Japan.

Textbooks That Supported Modern Educationin Japan

IThe collection mainly consists of textbooks and educational wall posters commissioned by the Ministry of
Education during the Meiji Era (1868–1912), together
with materials used in textbook publication, such as
printing samples, original drawings, and printing
blocks preserved by the company.

Nihon Ryakushi (Outline of Japanese history)

IThe library has genealogically archived a large collection of educational materials on diverse school
subjects for every grade of primary and secondary
education, including textbooks commissioned by the
Ministry of Education from the beginning of the Meiji
Era to the post-WW II period.
IThe collection serves as a fundamental resource forresearch on modern school education and has significant value, particularly from a historical perspective
in fields of education and publishing culture from the
Meiji to Showa Era (1868–1989) in Japan.

GRAPHIC TRIAL 2009

Recognizing curatorial role as one of its corporatesocial responsibilities, Tokyo Shoseki will continue tomanage and preserve the collection with great
devotion.
http://www.tosho-bunko.jp/ (in Japanese)

30 TOPPAN CSR REPORT 2010

Wall poster on ethics for the first semester ofthe first grade at Jinjo elementary schools**Compulsory education institutions from the Meiji
Era to the pre-WW II period in Japan

Cultural Contributions

2009, including GRAPHIC TRIAL 2009; A
Record of Textbooks after World War II—
Textbooks Published by Tokyo Shoseki;
and World Book Design 2008-09.

Cycle—Till Fellner plays All Beethoven
Pianosonatas

Central Contest for Book Report Drawings heldin JapanCommendation ceremony for Japan’s Nursery
Rhyme Culture AwardJ. S. Bach: Brandenburg Concerto by Akademie
für Alte Musik Berlin

Exhibition room at The Textbook Library

Froebel Boys Choir

TOPPAN CSR REPORT 2010

With Communities

Contributing to Society throughMusic
In 1959, froebel-kan co., ltd., a publisher
of children’s and picture books, organized a boys choir, a relatively rare thing inJapan, as a social and cultural project. As
many as 1,000 boys have passed throughthe ranks of the Froebel Boys Choir since
its founding. About 80 young vocalists,from three-year-olds to junior high school
students, are now members. In 2009, thechoir commemorated its 50th anniversary
by holding its 49th annual concert. The
choir members also make many kinds ofappearances, including television performances and commercials.
True to its corporate philosophy, “todevelop character through education andculture,” Tokyo Shoseki Co., Ltd. has
been a joint sponsor of Japan’s Nursery
Rhyme Culture Award, an event hosted
by the Association of Children’s Song
Writers of Japan, since 2002. The sponsors celebrate the Children’s Song Day inJapan on July 1 of every year by bestowing the award on an individual or group
who has helped to spread children’ssongs. Through this award, they hope
to pass along the nursery rhyme cultureof Japan to coming generations.

Social Report

Toppan Hall
Toppan Hall is a 408-seat symphonicconcert hall. Designed as a venue forsharing feelings and sensations, the hall
is known for the acoustical warmth of its
wood materials.
Performances of many genres havebeen held at the hall, from recitals by
world-famous musicians to special performances to discover and foster talented
young musicians. Twenty-nine concerts
were organized in fiscal 2009, including
special programs such as Cycle—Till Fellner plays All Beethoven Pianosonatas (Till
Fellner is a new generation pianist from
Vienna) and J. S. Bach: Brandenburg Concerto by Akademie für Alte Musik Berlin.
These meticulously planned concerts werehighly acclaimed demonstrations of world
trends in music. Toppan Hall has also been
lent out for the Music Competition of Japanand on many occasions for concert performances by local music colleges andelementary schools. More than 370,000
people have visited the hall to date.

Supporting and Sustaining
Education Culture
Toppan works with The Mainichi Newspapers Co., Ltd. and the Japan School
Library Association as a cosponsor of
the Central Contest for Book Report
Drawings, an annual contest to encourage students to express their impressions of books by drawing. The judgesof the 21st competition in 2009 received
520,506 picture entries from 6,813
schools.
Tokyo Shoseki Co., Ltd. opened The
Textbook Library (Tosho Bunko), Japan’s
first repository of school textbooks,
back in 1936. This library now houses
about 140,000 volumes, from historicalliterature in the Edo Period to modern
textbooks. The entire collection can bebrowsed at no charge.
The Tosho Education Award was
also established in 1984 with the aimof contributing to education. Tokyo
Shoseki commends excellent essays onteaching from among submissions fromeducational professionals across Japanevery year. The essays are compiled ina collection and distributed to teachers
around the country to help propagate
excellent teaching methods.

31Social Report

With Communities

Social Contributions / Community Contributions
PointsIToppan held the third series of Toppan Charity Concerts.
IAn accumulated total of 14,375 Toppan employees took part in environmental cleanup and beautification
activities at 31 operational sites in Japan. Meanwhile, an accumulated total of 2,862 employees donatedblood at 31 operational sites.

Toppan Charity Concerts
The Toppan Charity Concerts are annual
events in Japan to address social issuesof global relevance. The third concert
series was held in fiscal 2009.
The concerts are organized to help
raise child literacy rates across theworld. After deducting honorariums forthe performers, the ticket revenue fromthe concerts is donated to the Office of
the United Nations High Commissioner
for Refugees (UNHCR) via “Japan for
UNHCR,” an NPO acting as the official
recipient for the office in Japan. The
donations are used to fund education
for child refugees.
In fiscal 2009, the Company sponsored the concerts on March 5 and 6,
2010. Thanks to the high turnout over
the two days, Toppan brought in asmuch as 2,339,000 yen in donation
funds for UNHCR.

plant tours and hands-on training sessions, establish cooperative structures
for natural disaster response, and open
their facilities to residents from surrounding communities.
Blood Donation Drives and Activities
for Cleanup and Beautification of
the Environment
Thousands of Toppan employees participate in activities to contribute to communities each year.
An accumulated total of 14,375
employees took part in environmental
cleanup and beautification activities at
31 operational sites in fiscal 2009. In
addition, a cumulative total of 2,862
employees donated blood at 31 operational sites.

Toppan operational sites perform various community contribution activities inJapan on a voluntary and ongoing basis.
Employees at the sites beautify the environment around plants and cooperate
in local events. The sites also organize

Plant Tours, Hands-on Training
Sessions, and Job-hunting Support
Programs
Toppan holds meetings to report its environmental efforts to residents from surrounding communities. It also arranges
programs to foster the next generationand organizes sessions to support
young job-hunters.
Upon request from participant groups,

Yurie Miura

Explaining environmental efforts to residents fromsurrounding communities

Harmony with Communities

Toppan hosts plant tours, shows introductory videos on its production systems
and processes for printed materials,
gives participants opportunities to experience actual work, and organizes various other programs.
The Company welcomed 1,367 people to plant tours and hands-on training
sessions at 26 operational sites in fiscal
2009.
Disaster-prevention Activities in
Cooperation with Communities
Toppan cooperates with local fireresponse squads to help step up
disaster-prevention measures at its
operational sites and in neighboring
communities.
Two employees at the Itabashi Plant
registered in fire-response squads andtook part in a range of activities, including special, year-end/new-year patrol,
fire-prevention education for the community, inspection of fire-fighting instruments, and a fire-pump operationcompetition for firefighters.
Shiga Plant and the head office also
participated in the activities of local fireresponse squads.

Plant tour

Community Contribution Activities
in Japan in Fiscal 2009
Operational
Participants
Sites

Tsugio Tokunaga

32 TOPPAN CSR REPORT 2010

Cleanup around a plant

Environmental
cleanup andbeautification
activities
Blood donation
drivesPlant tours andhands-on training
sessions

31

14,375

31

2,862

26

1,367

Social Contributions / Community Contributions

Other Activities
The head office organized an Art Salon
program for members of neighborhood
associations for the elderly in fiscal 2009.
Art Salon is a business operated by theInstitute of the Formative Art Co., Ltd., a
Toppan Group affiliate. The Institute hasdeveloped various curricula for the Art
Salon to stir the senses and activate thebrain and mind through artistic and creative work such as painting. Participants
speak highly of the experience.

Initiatives in the U.S. and Europe
Toppan Printing Co. (America), Inc.
made donations to the American Cancer
Society and planted 600 trees as part ofan Earth Day Program to contribute to
the environment.

With Communities

Initiatives in Asia
Every year, employees from Toppan CFI(Taiwan) Co., Ltd. volunteer to help farmers plant rice seedlings in rural paddy
fields for one day during the planting
season. The rice produced from theirsupport is donated to organizations
that support the children of disadvantaged families. Previously, Toppan CFI(Taiwan)’s Tainan Plant cooperated with
the Tainan Visually Impaired Masseurs
Association and provided opportunities
for visually impaired masseurs to give
massages to company employees atthe plant. In fiscal 2009, the plant hired
several masseurs directly as company
employees and began donating service
fees received from other employees tosocial welfare organizations. As study

support for children, company employees went to elementary schools andhelped teachers conduct special lessons
such as scientific experiments and group
works.
As a regular ongoing activity, P.T.
Toppan Printing Indonesia invited children from orphanages in nearby areas
to its operational site. Toppan Printing
Indonesia provides donations and commemorative gifts (stationery, bags, etc.)
and brings the children and its employees together for a meal.

Social Report

Initiatives at Group Companies in
JapanGroup Companies in Japan have also
been eager to organize various community contributions, including environmental cleanup and beautification activities,
blood donation drives, plant tours, handson training sessions, job-hunting support,
and disaster-prevention activities. A major
aim of these and various other activities
the Group companies undertake is tomeet the needs of neighboring communities. Proceeds from bazaars held at inhouse events are donated to local social
welfare councils, and city employees areinvited to gatherings with community
members for discussions.

Initiatives Overseas
Toppan also carries out communitybased activities overseas in consideration of the local laws, customs, andcultures of each region.
Toppan undertakes a range ofactivities, including volunteer activities,
blood donation drives, charitable donations, and plant tours for the families of
employees.

Donated rice (Toppan CFI [Taiwan])

Study support at an elementary school(Toppan CFI [Taiwan])

Welcoming children to an operational site
(Toppan Printing Indonesia)

TOPPAN CSR REPORT 201033

Social Report

With Employees

Merit-based Personnel Policies
IToppan values employees as precious company assets or “human assets”; andIoperates personnel and labor systems and creates working environments to encourage employees to work
vigorously, earnestly, and with strong motivation.

PointsBasic Concept of Human
Assetsthe formulation of a personnel system
for the strict and appropriate enforcement of rewards and penalties, andthe establishment of an open and fairenvironment.

Toppan values its employees as precious company assets (“human assets”)
and recognizes how deeply it depends
on them. From this perspective, theCompany supports the motivated, vigorous, and earnest work of the Toppan
workforce. The Company keenly understands the importance of the motivation
to take on new challenges, the drive towork vigorously with a healthy body andmind, and earnest commitment to follow
through on tasks to completion. Whenemployees work vigorously, earnestly,
and with strong motivation, Toppan isconvinced that they show their true abilities to the full.
Toppan strives to improve the abilities
and draw out the organizational powersof every employee through the stages ofhiring, appointment, training, leveraging,and treatment. To do so, the Company
places high priority on communication
between superiors and subordinates in a
spirit of mutual trust, employee progress
towards goals with well-defined visions,

Basic Thinking on Personnel
Policies
Toppan recognizes that it can build thetrust and respect of society, customers,
and other stakeholders by encouraging
all of its employees to pursue the realization of TOPPAN VISION 21 through“conduct of high value.” In keeping withthis conviction, the Company’s personnel policies for hiring, appointment,
training, leveraging, and treatment are
all based on “conduct of high value” and“abilities and skills.” The term “conductof high value” describes the concrete
employee actions that go into the realization of the Corporate Philosophy andCorporate Creed. “Abilities and skills,”
meanwhile, are indispensable to thepractice of valuable conduct. A basic
framework for abilities and skills is set
for each job type and department.

Employee Data
Number of
Employees(as of March 31)
Fiscal 2007
Fiscal 2008
Fiscal 2009

Operating the Personnel System
Properly in Cooperation with theLabor Union
The labor union surveys non-managerial
staff with questionnaires to gauge how
thoroughly the Company informs themof the evaluation criteria it uses to set
annual salaries and bonuses. The questionnaire assesses: 1) the alignment ofjob goals and the degrees to which thegoals are achieved; 2) the status of opinion exchanges with superiors on issues
to be solved or improved in the future;and 3) the degree to which employees
are satisfied with their feedback interviews. The questionnaire results arereported to management and used
for comprehending and reviewing theoperation of the personnel system. Thisapproach helps management develop
and operate the personnel system effectively in cooperation with employees at
all times.

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

Management
Supervisors
Class

Directors

Total
Employees

AverageTenureAverage
Age

Male

29

1,840

2,205

10,18015.5

39.1

Female

1

21

89

1,001

9.2

31.6

Male

28

1,836

2,244

10,437

15.3

39.2

Female

1

26

108

1,111

9.0

31.7

Male

27

1,670

1,853

7,672

14.4

40.0

Female

1

30

104

1,097

8.5

31.5

Number of Recruits*1
RegularSales, admini- Male
recruitment ofstration, etc. Female
new university
Male
graduates andTechnical
post-graduates
FemaleNew graduates from highschools and National
Colleges of Technology

Male
FemaleTotal number of regular recruits(percent female)
Mid-career recruitment ofexperienced personnel

Fiscal
2008
132
75
146
31
156

Fiscal
2009
136
72
150
36
155

Fiscal
2010
57
20
56
21
0

17

24

9

557
(22.1%)

573(23.2%)

163(30.7%)

61

13—*1 The number of employees presented for fiscal 2009 includes employees
who are now working at subsidiaries that were spun off on April 1, 2009.

34 TOPPAN CSR REPORT 2010

Reasons for Leaving*2
Personal reasons
Retirement
Requested by the company
Other
Total
Turnover rate

Sum Total
Employees

Part-timeWorkers

TemporaryStaff

11,181

1,273(average fromJanuary to March)

11,548

1,208

1,666

8,769

541

144

2,039

Fiscal 2007 Fiscal 2008 Fiscal 2009
307 (74)218 (40)110 (40)150 ( 2)144 ( 3)118 ( 0)0 ( 0)
0 ( 0)
0 ( 0)
47 ( 3)33 ( 1)50 ( 4)504 (79)395 (44)278 (44)
4.4%
3.4%
3.1%

*2 The number of female employees who left the company is shown inparentheses.
Average Annual
SalaryTotal

Fiscal 2007

Fiscal 2008

Fiscal 2009

6,699,674 yen

6,561,080 yen

6,442,189 yen

Realizing a Safe and Secure Working Environment
PointsIToppan held a training session for persons in charge of safety throughout the Group;
Iendeavored to shorten total working hours and attained steady reductions in the number of employees
who worked long hours and the average hours of overtime worked; andIexamined measures for nursing care support and next-generation fosterage, along with necessary
responses to the amendments of relevant laws in Japan, through joint deliberation of labor and management.

Respecting Basic Human
RightsThe Conduct Guidelines call for theassurance of the dignity of individuals
under all circumstances, and no invidious discrimination on the basis of race,
ethnicity, nationality, religion, gender,or physical characteristics. To raiseesteem for basic human rights, including the prevention of sexual and power
harassment, Toppan has been promoting awareness-raising activities in rankbased training for employees. Some 845
employees participated in fiscal 2009.
To resolve and prevent troubles withsexual harassment, inappropriate employee
conduct is reprimanded under employment regulations based on the Basic Policy
on Sexual Harassment at the Workplaceestablished in 1999. Sexual harassment
counselors are also deployed.
No instances of child labor or forcedlabor have ever occurred in the Company.

Occupational Safety and Health
Deaths from
Frequency
Occupational
Rate*3
Accidents
2007
2008
2009

0
0
0

0.39
0.19
0.09

Severity
Rate*4
0.01
0.001
0.003

*3 Number of occupational accidents requiring
employee leave, per million working hours(reflects the frequency of occupational
accidents)*4 Number of workdays lost as a consequenceof occupational accidents, per thousandworking hours (reflects the severity of occupational accidents)

Countermeasures against Disasters

Countermeasures against
Pandemic Influenza

Under the basic plan for countermeasuresagainst disasters, Toppan has implemented comprehensive disaster-preparedness measures inalliance with Toppan Security Service Co., Ltd.
Since fiscal 2007, the Company has been holding disaster-preparedness drills in conjunction
with an emergency life-saving drill that includes
training sessions on the use of Automated External Defibrillators (AEDs). The Company’s fireresponse squads have also participated in Selfdefense Fire Training Competitions held by local
fire departments in Japan.
In the meantime, an evacuation drill has been
held in the head office to rehearse for the eventuality of a large-scale inland earthquake in Tokyo.
This drill includes simulations of the steps to betaken to establish a disaster-countermeasure office. The Company has checked the initial actions
to be taken primarily by its own fire-response
squads in the event of an actual disaster as a
strategy for reducing the time required to identify
personnel under disaster conditions.
Toppan is also installing a Group-wide safety
confirmation system to check employee safety
at the early stages of disasters and convey appropriate instructions to employees on initial
response actions required. Measures have also
been taken to reserve stockpiles for disasters.
As part of this effort, Toppan is cooperating with
the Japanese Consumers’ Co-operative Union
in a project to install vending machines that will
dispense food, beverages, and goods for freeduring power failures caused by disasters.

Healthcare and HealthEnhancement
Toppan arranges regular medical
checkups and screenings for lifestylerelated diseases in order to maintainand enhance the health of employees
by preventing and promptly detecting
health problems. Working in cooperation
with the Toppan Group Health Insurance
Union and 56 in-company clinics acrossJapan, the Company has been offeringa Lifestyle Improvement Support Service
and carrying out other measures for
employees at risk of lifestyle-related diseases. Through the service, employees
in need of lifestyle improvements havereceived guidance on preemptive actions
to stave off health problems.

With help from information gathered from relevant
authorities, Toppan has prepared a manual on
health-control measures to prevent infections
and the spread of pandemic influenza. In accordance with this manual, the Company has beenstockpiling masks and other necessary articles;
encouraging employees to take up preventive
practices such as gargling and hand washing;
restricting business trips; establishing a routine
for sterilization with ethyl alcohol before entry
into the Company’s premises; and taking various other countermeasures.

With Employees

Labor and management at the Toppan
Group make every effort to secure substantial occupational safety through thecoordinated endeavors of the manufacturing and technology departments andthe general affairs departments. Whenever an accident occurs, employees
throughout the Group receive informationon the details and causes of the problem.

safety through all-hands safety improvement activities. The technology departments, meanwhile, lead Group-wide
initiatives to identify the potential causesof occupational accidents as thoroughly
as possible in advance, from the point ofequipment installation. Proactive safety
checks and improvements are essential
steps for preventing accidents.

Social Report

Occupational Safety and
HealthEach operational site uses the information to plan out customized countermeasures to ensure that similar accidents will
never recur on its premises.
Despite these efforts, the numberof occupational accidents occurring
across the Group has not actually been
decreasing. To bring about better results,
the Group decided to hold a new training
session for persons in charge of safety
at all Group companies as a means ofreinforcing safety and health management structure and improving individual
management skills. This session enhanced safety activities throughout theGroup by facilitating the prompt andbrisk sharing of information.
The Toppan Group has long acted toeliminate occupational accidents, mainly
through the periodic work of the Safety
and Health Committee, the body responsible for organizing safety educationand establishing safeguards within theGroup. The manufacturing departments
have set up their own Safety and Health
Subcommittees to bolster the total productive maintenance (TPM) activities.
These subcommittees seek to secure

Training session for persons in charge of safety

TOPPAN CSR REPORT 201035

Social Report

With Employees

Measures for Mental
Healthcare
For the development of a company,
every employee must be healthy in mind
and body and demonstrate his or her
thriving potential and skills to the utmost.
The maintenance and enhancement of
employee mental health are critical tothat end.
The maintenance of employee
health—a vital component of corporate
activities at Toppan—is a mission sharedby personnel of every rank. Labor andmanagement have exchanged their frankviews on mental healthcare measures
on a repeated basis. In 2008, several
rules were appended to the employment
regulations to help the Company provide
a working environment to which employees can more readily return from mental
healthcare leave. These rules include aclear set of criteria for deciding whenan employee should return to work,measures to prevent the recurrence ofleave, and programs to support employees once they return to work. Toppan
also decided to hold regular mental
health checkups for all employees as ameans of preventing and promptly car-ing for mental problems. In 2009, theCompany introduced Art Salon, an art
session to refresh employee minds andbodies through the creative work ofpainting. Eighteen annual sessions were
held in 2009, and many of the employees who took part were pleased with theexperience. Employees are also encouraged to freely consult with counselorsin newly established counseling rooms
in all regions where Toppan sites operate. And for guidance from professional
viewpoints, the Company has concluded
advisory agreements with mental healthcare specialists to secure a ready sourceof advice and instruction.

Supporting Work-Life Balance
Efforts to Shorten Total Working Hours
Excessive overtime is a longstanding
issue for Toppan. Labor and management
have jointly examined the actual overtime
practices at each operational site andresponded with measures to control thenumbers of hours worked. For the time
being, however, the characteristics of theprinting industry still stand in the way offundamental solutions. In October 2008,
Toppan launched a Company-wide effort

Overview of Mental Healthcare System
Primary
Prevention:

Proactive measure

Secondary
Prevention:

Early detection

Regular mental health checkups,
including stress checks
Mental healthtraining
IIn rank-based
training
IIncorporation
into optional(group) training

to eradicate extended overtime work as
a top-priority issue for supporting better work-life balance and maintaining
employee health. Senior management
seeks to bring Toppan closer to its ultimate goal of eradicating extended overtime by collaborating with managers andemployees in implementing measures
to improve operating effectiveness byreviewing the ways individuals work andthe ways management administrates;
to equalize overtime hours by adjusting
operations within the departments; andto introduce new working systems suchas flextime and off-hour working schedules on a trial basis.
In fiscal 2009, the Company analyzed the actual overtime practices andreviewed the use of the newly introduced
working systems at the business councils and labor-management committees.
Labor and management also convened
standing committees for working hour
reductions to exchange straightforward
opinions on efforts to shorten overtime
working hours still further and deliberate the Company’s measures to comply
with the revised Labor Standards Act ofJapan. As a result of these initiatives, theAnnual Paid Leave Used

MedicalTreatment:
Early cure

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

Contracts with mental healthcare specialists

Fiscal 2007
Fiscal 2008
Fiscal 2009

Average Paid
Leave Used
(Days)
7.7
8.1
7.7

Average
Ratio*1
41.4%
43.5%
40.8%

Cooperation with medical and counseling institutions outside Toppan*1 Average ratio = average paid leave used / average paid leave granted

Guidance and information about consultants
outside Toppan (contracted with the Toppan
Group Health Insurance Union)

Employees Taking Maternity orChildcare Leave•A clear set of criteria
for deciding when an
employee on leaveshould return•A new rule forpreventing therecurrence of mental
healthcare leave

Introduction of programs to support
employees returning from mental healthcare leaveCounseling rooms
Art Salon, an art session for employees
Appointment
and deploymentof a person totake charge ofmental healthenhancement
at everyoperational site

36 TOPPAN CSR REPORT 2010

Steps to allay
anxiety after
resignation

Financial assistance fromthe Toppan Group
Fraternal Benefit Society
and like sources for fixed
periods after resignation

Fiscal 2007
Fiscal 2008
Fiscal 2009

Employees
TakingMaternity
Leave
37
42
45

Employees
TakingChildcare
Leave*2
63 (2)
74 (2)
72 (0)*2 The number of male employees who tookchildcare leave is shown in parentheses.

Realizing a Safe and Secure Working Environment

number of employees who worked longhours was reduced by about 95% in fiscal
2009 compared with fiscal 2007, the year
before the measures were introduced.
The average hours of overtime worked
also decreased by more than 10%.
The enforcement of the revised Labor
Standards Act certainly requires further
restraint of long working hours. Toppan
continues to tackle the issue with wholehearted commitment through measures
such as the full-fledged institution of theworking systems now in place on a trial
basis.

according to their needs and situations.

Labor-Management
Partnership

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

Childcare Leave

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

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

Employees can accumulate up to 50 days of annual paid leave (exercisable within two years from the date they are granted).
Employees are eligible to use their stock leave for treatments for themselves or their dependents, healthcare for their families,
or recovery from unexpected disasters.
Both mothers and fathers are eligible for fulltime childcare leave consecutively up until the first March 31 after their childreaches the age of 12 months (Ten male employees have taken childcare leave so far, on a cumulative basis). Employees onleave receive 10% of their regular salaries from the Company (until their child reaches the age of 18 months) and subsidiesof 30,000 yen a month from the Toppan Group Fraternal Benefit Society. They can also work for shorter hours (maximum
reduction of two hours per day) or select a flextime or off-hour working schedule from the date of their return to the job until
their child completes the third year of elementary school. The Company subsidizes certain childcare costs and provides
childcare-related information through a consultation office.
Rehiring is guaranteed for an employee who resigns to deliver and raise a child, provided that the employee has worked for
Toppan for more than three consecutive years up to the date of resignation. A resigned employee who meets these conditions
will remain eligible for rehiring until May 1 of the year when the child enters elementary school.
Employees are entitled to take leave for nursing care. The maximum consecutive leave and maximum reduction in a working
day are one year and two hours, respectively, for every family member requiring the nursing care. The Toppan Group Fraternal
Benefit Society pays a 30,000-yen subsidy per month as assistance during the nursing care leave. The Company subsidizes
certain nursing care costs and provides nursing care-related information.
Employees can take up to 10 days of leave a year, regardless of the number of children they are raising. These days can betaken in half-day allotments when necessary.
In principle, employees can take volunteer leave to engage in socially beneficial activities for a maximum of one year. Employees
on volunteer leave receive an allowance.
An employee can adjust daily working hours upward or downward by up to one hour to avoid rush-hour commutes during
pregnancy and by up to two hours for childcare (until his or her child completes the third year of elementary school).
The Company pays every employee with children a monthly allowance of 20,000 yen for each child. This allowance isdiscontinued on the first April 1 to arrive after the child’s 18th birthday. (No limit for the number of children is applied.)
The Toppan Group Fraternal Benefit Society subsidizes 50% of babysitter expenses (up to a 5,000-yen limit per day) forup to 90 days a year.
The Toppan Group Health Insurance Union offers a supplementary allowance in addition to a lump-sum allowance forchildbearing and childrearing. It also provides one-year free subscriptions to the monthly childrearing magazine Baby andMommy and runs a consultation office for employees with questions about the health of the body and mind.

TOPPAN CSR REPORT 2010

With Employees

In keeping with the perception that laborand management are partners in sharedideals, the Company management andthe labor union trust and respect eachother’s positions. The two parties workon various issues together on an equal
footing and hold events of different
sorts, including recreational activities
for employees.
Business councils are convened asforums on Company-wide and operational site bases to discuss wide-ranging
managerial issues. Several types of committees to deliberate individual issues
are also convened. Standing committees, for example, meet to discuss
issues such as working hour reductions,wages, welfare, and safety and health,and special committees meet whenevernecessary to address more novel issues
facing the Company.
Toppan has adopted a union shop
system. In principle, all non-managerial
employees are members of the labor
union.

Social Report

Efforts to Foster the Next Generation
In addition to making efforts to shorten
total working hours, Toppan has striven
for years to create a working environment in which employees can achieve
better work-life balance. It does so by
providing systems for childcare andnursing care leave, for reduced working
hours, and for a higher family allowancefor dependents.
A rehiring system for employees who
resign from the Company to deliver andbring up children has been establishedsince fiscal 2006. Now, in the fourth year ofsystem operation, 15 resigning employees
have registered for future rehiring. Toppan
has made other institutional improvements
as well. The eligibility period for reduced
working hours for employees with childcare responsibilities is now extended tothe end of the child’s third year of elementary school, a point in time beyond
the requirements of the relevant law inJapan. A staggered working-hour systemfor expectant mothers and childrearing
parents has also been introduced.
Since fiscal 2010, Toppan has
extended the period of childcare leave
up until the first March 31 after theemployees’ child reaches the age of 12months. This change satisfies therequirements of the revised Act on the
Welfare of Workers Who Take Care ofChildren or Other Family Members
Including Child Care and Family Care
Leave of Japan and addresses difficulties that parents face in Japan, whereentry to daycare services is often impossible midway through the year. On a
more general level, the Company has
revised various leave systems for maternity, childrearing, and child healthcare tohelp employees take leave more easily

37

Social Report

With Employees

Leveraging Diverse Human Assets
PointsIThe number of female managerial and supervisory staff stood at 149 (4.1%) as of April 1, 2010.
IThe percentage of persons with disabilities in the total workforce was 1.89% as of June 1, 2010.
IToppan introduced an associate employee system for promoting highly motivated, capable non-regular
employees whom the Company expects to become active contributors.

Promoting Diversity*1
Creating a Workplace Smartly
Designed to Leverage Female Talent
Toppan has promoted positive action*2
to leverage female talent for creating newvalue. To better respond to customer
and social needs, the Company must
develop new products and services fromfeminine perspectives.
Toppan proactively appoints female
employees to managerial and supervisory positions. Those efforts haveincreased the number of female managerial and supervisory staff to 149, or to
4.1% of the total number of managers
and supervisors (as of April 1, 2010). This
trend is an encouragement for female
employees and tends to activate energy
in the workplace overall. In parallel with
its vigorous attempts to promote managerial advancement for women, Toppan
has upgraded and expanded various
systems to create working environments in which female employees cantake full advantage of their capacities atwork as businesswomen and at homeas mothers. The Company will maintainits efforts to build workplace environments in which female employees can*1 Diversity: “Diversity is a ‘strategy of utilizing
a variety of human resources.’ Avoiding thehitherto established standards within firms
and society and taking into consideration thevalues and concepts of various attributes (gender, age, nationalities, etc.), this is a strategy
which responds to the changes in businessenvironment in a rapid and smooth manner toachieve firm growth and individual happiness.”(Source: Regression to the Origin—The Directionsof Diversity Management from Japan Federationof Employers’ Associations, May 2002)*2 Positive action: A concept incorporated in the
Equal Employment Act of Japan, a Japaneseequivalent to the concept of affirmative action
from the U.S. Positive action takes the form of
aggressive measures to encourage women to
demonstrate their abilities and effectively use
them in society. The ultimate goal is to do awaywith the gap between men and women in
employment.

contribute more energetically and freely.
Supporting Second Careers
To support second careers in company
life, Toppan offers diverse options for
retired employees by developing suitable
work categories. The Company builds
up a structure to use the knowledge,
experience, techniques, and skills that
employees acquire through long yearsof work.
Toppan operates a Senior Reemployment System to offer retired employees
extended tenure at the Company on a
post-retirement basis until they reach theage of 65. Seventy-two of 118 employees who retired in fiscal 2009 were
reemployed as senior workers or parttimers in the same year and now remain
with the Company.
Ongoing Success in the
Employment of Persons with
Disabilities
In 1993, Toppan founded Tokyo Metropolitan Government (T.M.G.) Prepress
Toppan Co., Ltd., a special subsidiarythat employs persons with disabilities.
Since then, Toppan’s ongoing measures
Female Managerial and Supervisory
Staff(Staff)180

Female supervisory staff
Female managerial staff

150

136

140

110

110

120

60

91

30
0

Providing an Open Environment for
Recruitment
Toppan offers various employment
opportunities for persons of both genders and persons of many nationalities, ages, and levels of physical ability.
Recruitment takes mainly two forms: hiring of new graduates from universities
and high schools every April, and midcareer hiring of experienced personnel
year round.
Prior to recruitment screening, Toppan
determines the forms of talent it actuallyrequires based on the results of
employee consciousness surveys and areview of the behavioral characteristics
of outstanding achievers and performers. In screening candidate recruits, theCompany tries to estimate if their competencies and potentialities are suitable.
Recruitment screenings are conductedin seven venues in Japan to provide a
Employees with Disabilities
Employees(as of April 1)
149

112

90

to promote the hiring of persons withdisabilities have been handled mainly
via this company. As of June 1, 2010,
persons with disabilities accounted
for 1.89% of the total workforce at
Toppan.

115

21

26

30

34

2007

2008

2009

2010

Percentage
of Total
Workforce*3

2008

151

1.83%

2009

160

1.90%

2010

183

1.89%

*3 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 Law for Employment Promotion, etc. of
the Disabled of Japan.

(Source: The Dictionary of Human Resourcesand Labor by the head office of the Japan Business Federation [Nippon Keidanren])

T.M.G. Prepress Toppan Co., Ltd.

38 TOPPAN CSR REPORT 2010

Leveraging Diverse Human Assets

more open environment for hiring. The
Company has also run various internshipprograms to boost student awarenessabout work, including practical training
sessions, lectures, workshops, andonline training courses. A cumulative
total of 3,066 interns participated inthese programs in fiscal 2009.
Toppan hired 13 experienced personnel in fiscal 2009. These persons cometo the Company with a rich variety ofexperience and skills suitable for the pursuit of Toppan’s business strategies.

Systems for Selfdetermination on the
Career Path

The Toppan Group organized a joint company orientation session to give students
the opportunity to understand the integrated
strength of the Group. A cumulative total of
500 students participated in fiscal 2009. Eachof the seven Group companies that took partin the session presented participants with adescription of its business and attractive
points. The sessions awakened the interestof the students and convinced many of them
to apply for recruitment screening at thesecompanies.

Introducing an Associate
Employee System
Toppan has introduced an associate
employee system, a new employment
system for outstanding non-regular
employees, including part-time workers and temporary staff. In this system,
highly motivated, capable non-regular
employees whom the Company expects
to become active contributors for years
to come are offered positions as associate employees with no contractual periods set. With this system, Toppan seeks
to promote human assets with superior
levels of experience and performance,
stimulate the motivation of non-regular
employees, and fulfill its corporate social
responsibilities as a provider of employment stability and professional development. The system also offers a wide
range of working choices for employees harmonious with their own working
values in different situations. Toppan will
use the associate employee system as ameans for providing every employee withenhanced job satisfaction.

Internship

TOPPAN CAFÉToppan’s internship program provides students with opportunities to experience work
as it really is. Participants gain insight into
work at Toppan through lectures on marketing theory and printing techniques, as well
as experience in planning. The program also
gives interns the chance to actually experience a day’s work by accompanying Toppan
staff in the sales and planning departments.
When interns complete the program, theyleave with a palpable understanding of thework experience at Toppan.

The TOPPAN CAFÉ is not a company orientation session per se. It can be better described
as a series of roundtable meetings where students meet with Toppan employees to discuss and share their concerns and difficulties
as job hunters. The purpose is to ease thecommon anxieties and troubles of newcomers to the labor market. Some 217 students
took part in the meetings in fiscal 2009.

TOPPAN CSR REPORT 2010

With Employees

Joint Company Orientation
Session on the Toppan GroupInternal Venture System
The Internal Venture System aims at
discovering human assets abounding in entrepreneurial spirit, cultivatinga problem-solving, can-do mindset in
employees, and creating next-generation
businesses. Fifty-six projects have been
proposed under the system so far. This
has led to the founding of one company(Toppan Character Production Co., Ltd.),
the initiation of two in-house businesses,
and the adoption of one proposal into
an existing company project. The inhouse awards commend projects withexcellent outcomes in order to stimulate
employee motivation and to strengthen

opportunities for the advancement of theawarded projects in the future.

Social Report

Toppan is establishing an ideal working environment for employees whoare eager to shape their own careers.
The Company offers employees various
opportunities to take on new challenges
through the Challenging Job System,
in-house staff recruitment system, andoverseas study support system.
In the Challenging Job System,
employees are encouraged to cultivatea problem-solving, can-do mindset byconsidering their own medium-to-longterm career aspirations and developing

skill-enhancement plans necessary forthat end. Employees voluntarily reporttheir own work experiences, official
qualifications, language abilities, andthe names of the departments and divisions to which they would like to betransferred. Before voluntarily submitting reports, they have the opportunity
to exchange opinions with superiors ininterview settings and personally makecomments and requests with regard toCompany-wide affairs, in addition totheir own career plans.

39Social Report

With Employees

Developing and Fostering Human Assets
PointsIToppan introduced an in-house education management system, Career Navigator, for an enrichededucational environment;
Icontinued to rotate human assets for integrated strength enhancement; andIstarted basic education on globalization for all employees in fiscal 2009.

Concept of Human
Asset Development andFosterage
Toppan’s rank-based training helps
employees understand the roles andresponsibilities of each rank and appreciate and practice “conduct of high value.”Toppan offers a wide variety of training
programs systematically to encourage
employees to acquire the “abilities andskills” required by each workplace. In fiscal 2009, Toppan constructed the Career
Navigator, an in-house education systemequipped with a database for managing
education-related information uniformly
throughout the Group. With this system,
Toppan provides all Group companies
with basic Company-wide education
via an e-learning platform to ensurethat every employee acquires the basic
knowledge required of a member of the
Toppan Group.
Organizing Rank-based Training andSupporting Self-development
A cumulative total of 2,514 employees
participated in rank-based training sessions held by the head office in fiscal
2009. The head office welcomes Group
company employees to the sessions. In
addition to the department-based training sessions planned out by the relevant

divisions of the head office, the divisional
training sessions equip employees withpractical skills essential for performing
tasks.
The Toppan Business School, meanwhile, offered self-development training
to a cumulative total of 10,387 employees in fiscal 2009. The programs at theschool are customizable to employee
career designs with optional (group)
courses and the Challenge School(correspondence learning courses).
The newly introduced Career Navigator system supports employees in theirefforts for self-development. By accessing the Career Navigator over the intranet, employees and their superiors canview available courses, file applications,and check course progress and histories.
Organizing E-learning-based
Programs
Toppan’s e-learning system offers basic
education courses on CSR, TOPPANVISION 21, the environment, and globalization, as well as a course on profit
creation in business.

Coordinating Human Asset
Development and Leverage
To fulfill its priority themes of integrated
strength enhancement and Total Quality
Assurance, Toppan must draw out thepotential of every employee and leverage
diversified abilities and skills to the utmost.
Toppan fosters human assets by rotating
employees systematically into different
regions, job categories, and product specialties in order to give individuals experiences in various operations throughout
their career paths and help them apply
their diversified experiences to operations
at different workplaces. The employee
rotations extending outside the Company
encourage people-to-people exchanges
throughout the Group companies forenhanced cooperation and integrated
strength of the Group. In the wider context of the Group as a whole, the rotations
support employees in advancing individualcareers, foster Group management perspectives, and optimize personnel positioning across the Group. In the first two
years after hiring, some new employees
are rotated systematically between divisions in Tokyo and regional divisions inJapan. The experience of work in otherparts of the Company cultivates young
employees with strong potential toenhance Toppan’s integrated strength.

Toppan’s Human Asset Development Program
Earning the trustof customers“Conduct of High Value” Based on the Corporate Philosophy and Corporate Creed
Strengthening business
Fulfilling corporate
Strengthening
foundationssocial responsibility
organization

Knowledge andinformation skills“Abilities and Skills” for “Conduct of High Value”
Ability to identify and
Ability toTechniques andformulate tasks
accomplish tasksknow-howRank-based Training
INew division manager training
INew department manager training
INew manager training
INew supervisor training

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

Communication andtraining skills

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

Basic Company-wide Education

Training to Meet Special Needs

Training by the Divisions

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

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

ITraining in each division and at each
workplace

40 TOPPAN CSR REPORT 2010

Improving corporate value

Selective Training
IExecutive business school
ITraining to nurture industry-leading
talentITraining for employees in production
control departments
ITraining for new supervisors intechnology departments
IIndividual department-based training(Purchasing, Secretary, Personnel &Labor Relations, Technology &Research, and other divisions)Toppan Business School
IOptional training
IChallenge School
IVideo libraryDeveloping and Fostering Human Assets

Personnel Rotation*1

Results in Human Asset
Development

Employees
Transferred

Percentage
of Total
Workforce

People-to-People Exchange with
Overseas Group Companies
Toppan temporarily assigns employees
to posts in overseas Group companies
as a means of promoting people-topeople exchange internationally. The
Company also accepts employees fromoverseas Group companies as trainees
through its education and skill training
systems. Fourteen personnel from Siam
Toppan Packaging Co., Ltd. of Thailand
received education and skill training infiscal 2009.
Fostering Human Assets Active in
Global Businesses
Toppan highly values its system to support overseas study for the fosterage ofhuman assets who can play active roles
in global businesses. Employees havethe opportunity to participate in the following specialist training programs: theMBA abroad program to foster experts

Funds Spent Usage Rate ofon Training Toppan Training
per Employee
Center*2

Fiscal 2007

595

5.3%

Fiscal 2008

556

4.8%

Fiscal 2007

41,300 yen

66.4%

Fiscal 2009

592

6.8%

Fiscal 2008

35,325 yen

59.2%

Fiscal 2009

41,789 yen

68.8%*1 Only includes rotations among different divisions to develop human assets for integrated
strength enhancement and Total Quality
Assurance.

Retention Rate for Recruits

in business management, the study
abroad program for engineers to foster
technical human assets and build overseas networks, IT training in India forin-house IT specialists, and the support
system for short-term overseas training
to foster human assets in the sales andplanning departments.
Toppan’s globalization training is a setof individualized courses to help candidates for overseas assignments andemployees from departments involvedin overseas businesses acquire basic
skills for working internationally (such as
cross-cultural communication, proposing and presenting in other languages,
facilitating and managing conferences,and negotiating and persuading overseas businesspeople). A cumulative
total of 138 employees have participatedsince the launch of the training in 1996
and have worked in overseas Group
companies or departments involved inoverseas businesses.
As a means of accelerating globalization throughout the Group, Toppan
started a basic education course on
globalization in fiscal 2009. A total of
22,084 Group company employees havecompleted the course so far. The Company has also expanded opportunities tolearn foreign languages via e-learning.

With Employees

development” and regularly check theemployee’s accomplishments. Training
sessions for Brothers and Sisters arealso held to improve the level of thefosterage system. As a result of thesemeasures, the retention rate for recruits
at Toppan has remained consistently
high, at about 90%.

Social Report

Assigning and Fostering New
Employees
Employees hired mainly through regular
recruitment will have at least three opportunities to confer with supervisors on thedivisions likely to be the most suitablefor his or her career plans: once at the
point of recruitment, once during orientation just after entry into the Company,
and once shortly after the first assignment is decided. Later, after one year on
assignment, an employee will haveanother chance to meet with supervisors
to discuss how well he or she is positioned in the current workplace. After
this interview, the Company formallydetermines the division or department towhich the employee should be assigned.
Toppan regards the first three years
after recruitment as the fosterage period
for new employees and establishes an
early career planning system to help new
employees learn about themselves andachieve individually affirmed career ideals. A senior associate in the employee’s
workplace is appointed as a “Brother”
or “Sister” responsible for training andfostering new employees mainly throughon-the-job training (OJT). The employee,
the employee’s immediate superior, andthe Brother or Sister prepare an action
plan “design sheet for ability and skill*2 The usage rate is calculated by dividing thenumber of days the facility was actually used(including use by subsidiaries and affiliatedcompanies) by the number of days it wasavailable.

Trainees from Siam Toppan Packaging receiving
education and skill training(Percentage of fiscal 2007 hires still working at Toppan)
Male

FemaleHired on April 1, 2007

499

127

Still with Toppan as ofApril 1, 2010

450

116

Retention rate

90%

91%

Average total for males
and females

90%

Percentage who leave
the Company before
working three years

10%

Globalization training

TOPPAN CSR REPORT 201041

Social Report

With Shareholders and Investors

Increasing Transparency and Distributing Profits Appropriately
PointsIToppan adheres to the investor relations (IR) motto of fair and open disclosure of management activities; andIannounces financial results via the IR website, newsletters for shareholders, public meetings, etc.
IToppan distributed an annual dividend of 22.00 yen per share for fiscal 2009.

Increasing theTransparency ofManagement Activities
Adhering to its investor relations (IR)motto of fair and open disclosure ofmanagement activities, Toppan thoroughly discloses information throughvarious communication tools designed
for different types of stakeholders.
Disclosing IR Information
Under the in-house Basic Policy on IR,
Toppan has built an exclusive IR website
to ensure fairness, transparency, andpromptness in its disclosure of IR information. Toppan has been announcing its
financial results quarterly via the Company’s website and Toppan Story, anewsletter for shareholders. Public
meetings with top management havealso been held to explain the Company’s
second-quarter and full-year results. All
documents distributed at these meetings are posted on the Company’s IR
website.
Basic Policy on IR
1. Information Disclosure Standards
Toppan discloses all information required
under the Rules on Timely Disclosure established by the Tokyo Stock Exchange. It alsouses its website in a positive and fair manner
to disclose useful information not required by
the rules, in order to help shareholders andinvestors fully understand the Company.
2. Information Disclosure Methods
Information applicable to the Rules on Timely
Disclosure is disclosed on the Timely Disclosure network (TDnet) provided by Tokyo
Stock Exchange under the rules. Information
disclosed on TDnet is posted on the Company’s website as soon as possible.
The Company’s website does not include
all of the information disclosed by the Company and may include expressions different
from the expressions used in other sources.

Stock Ownership andShareholder Profile
As of the end of March 2010, the total
number of outstanding common shares
was 699,412,481 and the total numberof shareholders was 44,410. Financial
institutions, individual investors andothers, foreign companies, and othercompanies make up 39.60%, 25.04%,
19.06%, and 14.39% of the shareholders, respectively. The principal shareholders are listed below.
Dividend Policy
Toppan seeks to improve its dividend
payout with a consolidated dividend
payout ratio of 30% or more as a guidebased on comprehensive considerationof the consolidated financial performance of each fiscal year, the dividend
payout ratio, and internal reserves.
Through this approach, it strives to provide stable profit returns to its valued
shareholders and realize sustainablegrowth of the Company.

Sufficient reserves will be allotted tocapital investment and research anddevelopment for expanding businessfields with growth potential, with theobjective of enhancing corporate value.
The Company will also allocate retained
funds to increase investment efficiency
from a long-term perspective.
Toppan believes that its policy on
profit distribution will help to enhance
its corporate structure and increase
future profitability, and thereby enable
the Company to return profits to its
shareholders.
The annual dividend per share for fiscal 2009 was 22.00 yen.
Meeting of Shareholders
A total of 212 shareholders participatedin the ordinary general meeting held in
June 2010. Toppan has established asystem that allows shareholders whochoose not to attend the meeting to
exercise their voting rights online or inwriting.

Stock Ownership Profile
Financial instruments firms(securities companies)
13,388,185 shares
1.91%

Foreign companies
133,308,028 shares
19.06%

By Type of
Shareholder

Other companies
100,656,199 shares
14.39%

Total
699,412,481
sharesFinancial
institutions
276,964,792 shares
39.60%

Individual investors,
others175,095,277 shares
25.04%

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

Less than 1,000 shares
2,096,948 shares
0.30%

1,000 shares or more
69,843,985 shares
9.99%

By Numberof Shares Held
Total
699,412,481
shares1,000,000
shares ormore
494,001,564 shares
70.63%

Number of Shares Held
(1,000 shares)
35,91332,64831,972
22,886
15,62815,62814,566
13,077
8,882
8,764

10,000 shares or more
28,843,537 shares
4.12%
50,000 sharesor more13,651,807 shares
1.95%
100,000 sharesor more90,974,640 shares
13.01%

Percentage of Total (%)
5.57
5.06
4.96
3.55
2.42
2.42
2.26
2.03
1.38
1.36

Note: As of March 31, 2010. The 54,420,000 shares of treasury stock are included in the “individual
investors, others” category in the graph entitled “By Type of Shareholder” and in the “1,000,000
shares or more” category in the graph entitled “By Number of Shares Held.” These shares are
excluded from the above list entitled “Principal Shareholders.” The percentages of shares heldby principal shareholders are calculated by subtracting the number of treasury shares from thetotal number of outstanding common shares.

42 TOPPAN CSR REPORT 2010

Environmental Report

Overview of Environmental Activities
Toppan’s Environmental Activities

44

Review of Fiscal 2009 Results and Future Targets
Environmental Targets and Results for Fiscal 200946

Environmental Investments andConservation Benefits

49

Environmental Management
Environmental Management Structure

50

Environmental Management Activities

52

Environmental Communication Activities

54

Environmental Conservation Activities
Mitigating Global Warming and Saving Energy

56

Resource Circulation

57

Pollution Prevention and Chemical SubstanceManagement and Reduction

58

Approach to Logistics

59

Environmentally Friendly Products andEnvironment-related Business
Developing and Assessing Environmentally
Friendly Products

60

Environmentally Friendly Printing Services

62

Environmental Data
Environmental Data

63

Environmental Report

Overview of Environmental Activities

Toppan’s Environmental Activities
PointsIToppan takes an assertive approach to conserve the global environment based on The Toppan Group
Declaration on the Global Environment.
IPaper accounts for the greater portion of material input and total waste generation at Toppan,
while activities in the Electronics field account for the greater portion of water consumption andeffluent discharge.

The Toppan Group
Declaration on the Global
Environment
With the growing awareness of environmental conservation throughout theworld in the 1990s, the scope of environmental issues to be tackled bycompanies grew significantly. Toppan
reorganized its previous structure forenvironmental conservation by establishing the Ecology Center in 1991 andpromulgating Toppan’s Declaration on
the Global Environment, a basic philosophy for environmental conservation
activities, in 1992. The Company has
promoted environmental initiatives basedon the declaration ever since.
Toppan has taken an important stepto help realize a sustainable world inwhich every form of life can coexist into
the future. In April 2009, it revised
Toppan’s Declaration on the Global Environment into The Toppan Group Declaration on the Global Environment, a new
basic philosophy for environmental
activities for the entire Group. The
revised declaration reflects Toppan’s
more assertive approach to the conservation of the global environment.

Overview of Environmental
Activities

Environmental Burden andEnvironmental Impact

Toppan’s environmental activities are
divided into four main areas, all centeredaround The Toppan Group Declarationon the Global Environment, Toppan’s
basic environmental philosophy.
First are the environmental management activities for systematically managing environmental initiatives, such as
the construction of an environmental
management system (EMS). Second are
the Eco-protection Activities to reduce
the environmental burden associatedwith corporate activities as much as
possible. Third are the Eco-creativity
Activities to proactively promote thedevelopment, assessment, and salesof environmentally friendly products
and technical services. Fourth are theenvironmental communication activities
for sharing awareness of environmental
conservation with stakeholders throughdialogues with local communities andeducational programs inside and outside
the Group.

The first step in reducing environmental
burden is to ascertain the environmental
impact of the Company’s overall business activities. Toppan aggregates dataon the balance of materials at each production site based on INPUT (materials
and energy used) and OUTPUT (materials discharged as a result of production)
and assesses the impacts of individualsites from various environmental standpoints. Next, it establishes environmental targets based on the results of theseassessments to clarify the priorities andverify the results of its environmental
activities.
As a company engaged in diverse
business fields, Toppan imposes environmental impacts in various forms. To
evaluate the extent and variation of its
environmental burden rationally, theCompany aggregates and ascertains its
environmental data independently in its
three main business fields: Information& Networks, Living Environment, andElectronics (➞P. 45).

The Toppan Group Declaration on 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 of limited
resources and the reduction of all types of environmental burden.
3. With foresight, we promote the development and widespread use of
products that show consideration for the environment, and contributeto the environmental activities of customers.
4. We engage in communication related to the environment with a wide
range of peoples both inside and outside the company, and strive formutual understanding.
5. We also take a proactive approach to environmental conservation incorporate activities in international society.
Established in April 1992
Revised in April 200944 TOPPAN CSR REPORT 2010

Boundaries of Environmental Performance Data andEnvironmental Accounting
While the Toppan Group comprises Toppan Printing Co., Ltd. and 202
related companies (177 subsidiaries and 25 affiliates), only Toppan Printing Co., Ltd. and 29 domestic manufacturing subsidiaries are included
within the boundaries of Toppan’s environmental performance data andenvironmental accounting.
However,
Note 1: The entity covered in “Approach to Logistics” on P. 59 is Toppan
Logistics Co., Ltd.
Note 2: Sales in the environment-related business described in “Environment-related Business” on P. 60 are the total sales of Toppan
Printing Co., Ltd., Toppan Forms Co., Ltd., Toppan TDK Label
Co., Ltd., Tamapoly Co., Ltd., Tokyo Shoseki Co., Ltd., Tosho
Printing Co., Ltd., Toppan Cosmo, Inc., and froebel-kan co., ltd.
Note 3: The table on “Capital Investment for Environmental Conservation”(P. 49), the table on “Environmental Conservation Benefit” (P. 49),
and the table on “Environmental INPUT/OUTPUT Data by Business Field” (P. 63) cover 76 companies in total, i.e., Toppan
Printing Co., Ltd. and 75 domestic and overseas Group companies with production facilities. Not all of these sites are covered, however, for two categories of data: the data on material
input cover only Toppan Printing Co., Ltd. and 29 domestic
manufacturing subsidiaries, and the data on dioxin emissions
and the handling and release of chemical substances designatedunder the Pollutant Release and Transfer Register (PRTR) law ofJapan cover only Toppan Printing Co., Ltd. and 49 domestic
subsidiaries with production facilities.

Toppan’s Environmental Activities

Major Environmental Burdens by Business Field (INPUT/OUTPUT data)
INPUT
Material Input (➞P. 63)

Total Energy Consumption (➞P. 56) Total Water Consumption (➞P. 63)

Total PRTR Handling (➞P. 58)

Information & Networks
1,353,803 (70%)

Information & Networks
4,448 (27%)

Information & Networks
1,159 (9%)

Information & Networks
1,524 (27%)

Living Environment
512,497 (27%)

Living Environment
5,176 (32%)

Living Environment
1,820 (14%)

Living Environment
2,433 (44%)

Electronics
62,440 (3%)

Electronics
6,068 (37%)

Electronics
9,402 (74%)

Electronics
1,587 (29%)

Non-production sites
0 (0%)

Non-production sites
698 (4%)

Non-production sites
328 (3%)

Non-production sites
3 (0%)

Total 1,928,740 (Unit: tons)

Total 16,390 (Unit: 1,000 GJ)

Information & Networks

Total 12,709 (Unit: 1,000 m3)

Living Environment

Total 5,547 (Unit: tons)

Electronics

Total Waste Generation (➞P. 57)

CO2 Emissions (➞P. 56)

Total Effluent Discharge (➞P. 63)

Total PRTR Release (➞P. 58)

Information & Networks
192,049 (26%)

Information & Networks
717 (6%)

Information & Networks
87 (19%)

Living Environment
101,442 (36%)

Living Environment
247,980 (35%)

Living Environment
1,339 (12%)

Living Environment
308 (66%)

Electronics
30,315 (11%)

Electronics
246,924 (35%)

Electronics
8,824 (79%)

Electronics
68 (15%)

Non-production sites
1,888 (1%)

Non-production sites
28,237 (4%)

Non-production sites
287 (3%)

Non-production sites
0 (0%)

Total 281,537 (Unit: tons)

Total 715,190 (Unit: t-CO2)

Total 11,167 (Unit: 1,000 m3)

Total 463 (Unit: tons)

IPaper used mainly in Information & Networks and Living Environment accounts for 83% of material input and 75% of total waste generation at the Company, while water consumption and effluent discharge in Electronics account for 74% of total water consumption and 79% of total effluent discharge at
the Company.
ITwo types of waste are covered in this report: industrial waste of no value, and materials of value sold or transferred as resources. Both types are generated
by or connected with business activities.
ITotal energy consumption, i.e., the quantity of electricity and fuels consumed, is about the same in each business field.

Overview of Environmental Activities

Information & Networks
147,892 (52%)

Environmental Report

OUTPUT

Note: The calorific value of 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.

TOPPAN CSR REPORT 201045

Environmental Report

Review of Fiscal 2009 Results and Future Targets

Environmental Targets and Results for Fiscal 2009
PointsIToppan’s CO2 emissions per unit of sales increased by 3.8% compared to the fiscal 2008 level.
IThe Company reduced final landfill waste disposal by 40.9% compared to the fiscal 2008 level; andIreduced the handling of chemical substances designated under the PRTR law by 8.1% comparedto the fiscal 2008 level.

Setting Environmental
Targets
Toppan specifies environmental objectives for the realization of the goals of the
Declaration on the Global Environment,
the basic philosophy governing Toppan’s
overall environmental activities in every
business field. The Medium- and Longterm Environmental Targets and concrete targets for every current fiscal year
are set under the individual environmental objectives to clarify the activities tobe taken and the criteria for assessing
achievements. Based on the objectives

and targets, Toppan promotes environmental activities with participation fromevery employee.
The Company reviews its environmental activities once every fiscal year
(ending March 31). Based on the evaluation of achievements towards the environmental targets for the current fiscal
year, the Medium- and Long-term Environmental Targets are reviewed and thetargets for the following fiscal year are
set.

Evaluating Progress
towards the Environmental
Targets
In fiscal 2009, Toppan undertook various
activities to achieve the 16 environmental targets set for the year. Ten of thetargets were reached and six were not.
The Company has succeeded inachieving its annual targets for reduced
final landfill waste disposal, an expanded
number of certified zero-emission sites,
and reduced handling of chemical substances designated under the Pollutant
Release and Transfer Register (PRTR)

Environmental Targets and Results for Fiscal 2009
Environmental Objectives

Medium- and Long-term Environmental Targets

1. Mitigation of global warming through the development ofenergy-saving measures

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

2. Promotion of waste reduction and recycling

Reduce waste generation per unit of production value by 25% by fiscal 2010
(compared to the fiscal 2000 level)
Expand the material recycling of waste
Reduce final landfill waste disposal*1 by 95% by fiscal 2010 (compared to thefiscal 2000 level)
Efficiently use the industrial waste materials generated in the manufacturing
stage and have all domestic sites certified as zero-emission sites*2 by fiscal 2010

3. Prevention of atmospheric pollution via VOC emission restraints Reduce VOC emissions into the atmosphere by 70%*3 by fiscal 2010
(compared to the fiscal 2000 level)
4. Control of risks from chemicals

Reduce the handling of chemical substances designated under the PRTR law

5. Environmental contribution via the development and marketingof eco products

Promote the sales of environmentally friendly products

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

6. Promotion of environmental communication—

7. Avoidance of environmental risk

Establish and observe appropriate in-house management guidelines thatembrace regulatory controls
Reduce the risk of soil contamination

Maintain adequate communication with stakeholders

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

9. Upgrading of environmental management systems at ouroverseas production sites—*1 Final landfill waste disposal: Direct landfill disposal + landfill disposal of residues from intermediate treatment*2 Certified zero-emission site: Operational site with a recycling rate of 98% or over (subject to approval by the Ecology Center)*3 Target in the industry: 41% reduction by fiscal 2010 (compared to the fiscal 2000 level)

46 TOPPAN CSR REPORT 2010

Environmental Targets and Results for Fiscal 2009

law of Japan.
However, Toppan fell short of achieving its targets for reduced CO2 emissions per unit of sales, reduced waste
generation per unit of production value,
an improved material recycling rate,
and reduced VOC emissions into theatmosphere. The major factors impeding these improvements were equipment
restoration works and decreased production volumes in the first-half of the
fiscal year.

Reviewing Environmental
Targets
Toppan established environmental targets for fiscal 2010 based on an evaluation of achievements towards thetargets set for fiscal 2009 (➞P. 48). In
fiscal 2010, the Company will undertake
environmental activities towards the 15
medium- and long-term targets and 15
targets for the current fiscal year.
To accomplish its medium- and longterm targets, the Company intends tocontinue supporting the mitigation of
global warming through the develop-

ment of energy-saving measures, further reducing its environmental burden
through the promotion of waste reduction and recycling, and controlling risks
from chemicals through the prevention of
atmospheric pollution via VOC emission
restraints and the reduced handling ofchemical substances designated under
the PRTR law.
Toppan will carefully consider setting
new targets beyond fiscal 2011 in tune
with the environmental policy of Japanese government and the environmental
trends in industry.

Environmental Targets for Fiscal 2009

Results and Status for Fiscal 2009

•CO2 emissions per unit of sales: Reduce by 5% comparedto the fiscal 2008 level•CO2 emissions per unit of sales: Increased by 3.8% comparedto the fiscal 2008 level

Evaluation For Details
B

P. 56

•Waste generation per unit of production value: Reduce by
5% compared to the fiscal 2008 level•Waste generation per unit of production value: Reduced by
1.4% compared to the fiscal 2008 level

B

P. 57

•Material recycling rate: 94%•Material recycling rate: 92%

B•Final landfill waste disposal: Reduce by 15% compared to
the fiscal 2008 level•Final landfill waste disposal: Reduced by 40.9% compared to
the fiscal 2008 level

S•Expand the number of certified zero-emission sites: To 45
sites (out of 56 domestic sites in total)•Expand the number of certified zero-emission sites: Increased
to 45 sites (out of 57 domestic sites in total)

A•VOC emissions into the atmosphere: Reduce by 10%
compared to the fiscal 2008 level•VOC emissions into the atmosphere: Increased by 11%
compared to the fiscal 2008 level

B•Handling of chemical substances designated under the
PRTR law: Reduce by 5% compared to the fiscal 2008 level•Handling of chemical substances designated under the PRTR
law: Reduced by 8.1% compared to the fiscal 2008 level

A•Review the criteria for environmentally friendly products•Examine designs for an LCIA method•Criteria for environmentally friendly products: Not revised•Established a Company-wide environmental impact evaluation
indicator by applying the LCIA method

B

PP. 60–61•Establish an in-house structure to calculate and label•Established a set of common rules on carbon footprints
Toppan’s “carbon footprint”(CFPs) in the industry; organized a structure responsive to•Comply with the guidelines developed under the Convention the requirements for calculating and labeling CFPs in eachon Biological Diversity
division; fostered 26 persons in charge of CFP calculation•Established a Bylaw on Biodiversity

A

PP. 6–7, 61•Provide information through exhibitions, lectures, and otherpresentations•Exhibited at Eco-Products 2009 (held on December 10 to 12,
2009)

A

P. 55

•Observe in-house management guidelines at all operationalsites and review them as necessary•Assessed the observance of in-house management guidelines
at 59 domestic sites through internal environmental audits

A

P. 52

•Monitor the operational sites, including the vacant lots ofreconditioned sites•Monitored the sites on an ongoing basis•Inspected underground tanks at all operational sites and took
necessary countermeasures based on the inspection resultsA

PP. 58, 64•Publish a CSR Report (in Japanese) in July; expand thenumber of operational sites that issue Site Eco Reports to
36 domestic sites (27 reports in total)•Issued a CSR Report (in Japanese) in July; expanded thenumber of operational sites that issue Site Eco Reports to 32
domestic sites (24 reports in total)

B

P. 55

•Conduct new employee education•Conduct environmental education via e-learning•Conducted environmental education via Company-widetraining•Revised the content of e-learning-based programs andresumed the programs in September

A

P. 53

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

•Conducted audits at two sites in Southeast Asia in March•Conducted audits at two sites in the U.S.A. in February

A

P. 52

•Observe local regulatory standards and collect monthly
environment-related data

•Periodically reported data on environment-related issues via
monthly overseas site reports

A

P. 58
Environmental Report
Review of Fiscal 2009 Results and Future Targets

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

TOPPAN CSR REPORT 201047

Environmental Report

Review of Fiscal 2009 Results and Future Targets

Environmental Targets for Fiscal 2010
Environmental Objectives and Mediumand Long-term Environmental Targets

Environmental Targets for
Fiscal 2010

Details on Specific Measures

1. Mitigation of global warming through the development of energy-saving measures
Reduce CO2 emissions per unit of sales
by 10% by fiscal 2010 (compared to thefiscal 2000 level)

CO2 emissions per unit of sales: Reduce by
1% compared to the fiscal 2009 level•Reinforce the activities of the Energy Subcommittees (energy-saving
reviews, etc.)•Share information on energy-saving to implement measures across theCompany (meetings of personnel in charge of energy-saving, etc.)•Replace existing incidental facilities with highly functional, energy-saving
alternatives

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

Waste generation per unit of production
value: Reduce by 7% compared to thefiscal 2009 level•Reduce waste generation by reducing the volumes of wastes

Expand the material recycling of waste

Material recycling rate: 94%•Search for new external recycling partners•Share information in-house

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

Final landfill waste disposal: Reduce by
16% compared to the fiscal 2009 level (Themedium-and-long-term target has alreadybeen achieved.)•Reduce the generation of non-industrial wastes•Examine recycling processing technologies and processing contractors

Efficiently use the industrial wastematerials generated in the manufacturing
stage and have all domestic sites certified
as zero-emission sites*2 by fiscal 2010

Expand the number of certified zeroemission sites: To 51 domestic sites•Encourage operational sites to separate wastes for processing as
valuable resources

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

VOC emissions into the atmosphere:
Reduce by 30% compared to the fiscal
2009 level•Properly maintain and operate VOC effluent gas-treatment equipment•Consider the introduction of alternative materials with low concentrationsof VOCs; share the information on alternative materials to prepare for
their adoption across the Company

Ascertain the handled volume of chemical
substances newly designated under the
PRTR law•Comply with the revisions of the Act on Confirmation, etc. of Release
Amounts of Specific Chemical Substances in the Environment andPromotion of Improvements to the Management Thereof and the Act on
the Evaluation of Chemical Substances and Regulation of Their
Manufacture, etc of Japan•Reduce the handling of materials containing designated chemical
substances and shift to alternative materials with low concentrations ofdesignated chemical substances

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

5. Environmental contribution via the development and marketing of eco products
Promote the sales of environmentallyfriendly products•Review the criteria for environmentallyfriendly products•Examine designs for an LCIA method•Examine, issue, and implement the revised criteria for environmentallyfriendly products•Develop an environmental impact evaluation tool in cooperation with
Tokyo City University and disclose related data

Reinforce efforts to develop, manufacture,
and assess environmentally friendly
products•Establish an in-house structure to
calculate and label Toppan’s “carbon
footprint”•Promote conservation and the sustainable
use of biodiversity•Respond to the requirements for calculating CFPs at operational sites•Establish a target for the sustainable use of forest resources affected bypaper procurement•Establish a target for biodiversity conservation with links to land use

6. Promotion of environmental
communication

Provide information through exhibitions,lectures, and other presentations•Exhibit at TOKYO PACK 2010 and take part in environmental forums,
etc.

Establish and observe appropriate
in-house management guidelines thatembrace regulatory controls

Observe in-house management guidelines
at the Group production sites•Conduct internal environmental audits to confirm the validity andobservance of the reference values established under the in-housemanagement guidelines

Reduce the risk of soil contamination

Monitor the operational sites, including thevacant lots of reconditioned sites•Investigate, inspect, and restore buried equipment (tanks, etc. for storing
heavy metals, hazardous substances, and chemicals)

Maintain adequate communication withstakeholders

Publish a CSR Report (in Japanese) inAugust; expand the number of operationalsites that issue Site Eco Reports to 38
domestic sites (30 reports in total)•Issue a CSR Report and Site Eco Reports

8. Enhancement of environmental
education and the environmental
awareness of all employees•Conduct environmental education on aregular basis (new employee and optional
training) and an as-needed basis•Conduct environmental education via
e-learning•Conduct environmental education via group training•Review and revise the content of the e-learning-based programs formore coordinated links with specialty- and rank-based training

9. Upgrading of environmental
management systems at ouroverseas production sites•Conduct internal environmental audits atoverseas production sites: Eastern Asia
•Observe local regulatory standards andcollect monthly environment-related data

•Conduct environmental audits at sites in Eastern Asia
•Collect environment-related data via monthly overseas site reports

7. Avoidance of environmental risk

*1 Final landfill waste disposal: Direct landfill disposal + landfill disposal of residues from intermediate treatment*2 Certified zero-emission site: Operational site with a recycling rate of 98% or over (subject to approval by the Ecology Center)*3 Target in the industry: 41% reduction by fiscal 2010 (compared to the fiscal 2000 level)

48 TOPPAN CSR REPORT 2010

Environmental Investments and Conservation Benefits
PointsIToppan increased capital Investment for environmental conservation by 135% in fiscal 2009 compared to
the fiscal 2008 level; andIincreased capital Investment in equipment to mitigate global warming, etc. by almost 400% compared tofiscal 2008, mainly for the installation of electric power equipment associated with the construction of newplants at two operational sites.

Capital Investment forEnvironmental Conservation

Capital Investment for Environmental Conservation (Million yen)
Item

Major Content

1,311

1,524

325

471

1,198

161

9,519

2,557

5,214

19

–5

135

3,179

1,825

17,425Effluent gas-treatment equipment (Fukaya Plant)

Fuel switchover for boilers (Ranzan Plant, Toppan
Communication Products Co., Ltd.)

Environmental Conservation Benefit
Item

Increase/
Decrease

Major Content

Total energy consumption(1,000 GJ)
Water
Water consumption (1,000 m3)CO2 emission (1,000 t-CO2)
Emission of ozone-depleting
substances (ODP-t)
AtmosphereNOx emission (tons)
SOx emission (tons)
Emission of dioxins (mg-TEQ)
Total effluent discharge (1,000 m3)
Underground penetration
Water(1,000 m3)
and soil
Onsite evaporation (1,000 m3)
environments
BOD (tons)
COD (tons)
Waste
Total generation (1,000 tons)
EnergyFiscal2009–1,021

24,999–506–5417,159
1,175

Notes: • Period covered: Last fiscal year for each company or subsidiary• See P. 58 for details on the conservation benefits gained from thereduction in PRTR release.

Review of Fiscal 2009 Results and Future Targets

Investment in
1. Investment
equipment toin equipment
prevent atmospheric
to preventand other forms ofpollution
pollution
Investment in
2. Investment
equipment toin equipment
conserve the global
to conserve
environment by
the global
mitigating global
environment
warming, etc.
Investment in
3. Investment
equipment for thein equipment
adequate treatment
to circulate
and recycling ofresources
waste materials
Investment inequipment to
4. Investment inmonitor and measureequipment forenvironmental
management
burdens and plant
activities
trees at operational
sites
Total

Total
Increase/
Fiscal Decrease Sum for
the Last
2009
fromFiscal 2008 Five Years

Highly efficient power transformers (Sakai Plant,
Toppan Electronics Products Co., Ltd.)

Environmental Report

Toppan invested 3,179 million yen in
environmental conservation in fiscal
2009, 135% more than it invested theyear before. This increase was mainly
the result of an almost fivefold year-onyear increase in the amount invested inequipment to mitigate global warming,
etc. for the conservation of the global
environment. The increased investment
for the conservation of the global environment was mainly capital investment
in electric power equipment associatedwith the construction of new plants at
two operational sites, including highly
efficient power transformers, energysaving lighting fixtures, and powermonitoring equipment. This extended
investment in global warming mitigationin the construction of new plants reflects
Toppan’s commitment to efficiency
improvements in energy consumption
and enhancements in its energy control
structure overall.
The major capital investments forfiscal 2009 were allocated to the installation and improvement of effluent gastreatment equipment at seven sites toprepare for the March 2010 expiration of
the grace period stipulated under the
VOC emission law of Japan. The investments are expected to decrease VOC
emissions into the atmosphere in fiscal
2010. Toppan also invested resources
to install warehouses for waste management and effluent-treatment facilities suchas purification tanks at new plants.
Some capital investment went towards
energy-saving improvements. The Ranzan Plant switched from LPG to LNG fuelfor its boilers, bringing about an approx.
500-ton reduction of CO2 emissions forfiscal 2009. Toppan adopted highly efficient chillers and solar-panel-equipped
outdoor lights, maintained storm drains,
created green spaces, and built fences
for beautification.
Capital investment for environmental conservation includes investment inequipment works for soil purification andremediation of groundwater pollution.

TOPPAN CSR REPORT 2010

49

0

1

–31
–5
85
–350

190
32
94
15,021

–12

43

–100
–5
–6
–36

1,889
51
19
412

Note: Since fiscal 2005, Toppan has focused solely on capital investment forenvironmental conservation and the environmental conservation benefit
obtained. This is expected to improve the accuracy of assessments andverifications of cost effectiveness by excluding reliance on estimates
insofar as possible.

Environmental Report

Environmental Management

Environmental Management Structure
PointsIToppan operates an established environmental management system (EMS) at every operational site andcontinues to improve the efficiency of these systems.
IToppan acquired ISO 14001 certification for six systems in fiscal 2009, bringing the Group total up to
69 certified systems at 105 sites (as of the end of March 2010).

Environmental Management
Toppan’s environmental management
relies on the operation of an establishedenvironmental management system(EMS) at every operational site based on
the Company’s environmental management rules. The PDCA cycle is a core
part of the EMSs and vital for the continuous improvement of the efficiency ofthe systems. To ensure the effectivenessof the PDCA cycle, top management
conducts ongoing environmental management reviews. The Ecology Center
regularly collects the environmental performance data and the Director in chargeof the Center verifies and evaluates thedata and reports evaluation results to
the Board of Directors and other management bodies. Improvements to the
EMSs are proposed and implemented
throughout the entire Company.

Features of Toppan’s Environmental
Management Systems
Toppan’s EMSs are uniquely managed.
The PDCA cycle is put into practice atevery operational site, irrespective of
the ISO 14001 certification. Fifty-sevendomestic production sites and two
research facilities have been pressing
ahead with their environmental activities to achieve the targets set under the
Eco-protection Activity Plan.
Every month, the Eco-protection Promotion Committees check the progressof the activities to ensure that any newly
arising problems are resolved as quickly
as possible. Every operational site sends
the Ecology Center reports on major
environmental performance data periodically. Results on energy are sent monthly,for example, while those on waste aresent every half-year. Toppan prepares
an effective system for evaluating progress towards its environmental targets
and reviewing the targets whenevernecessary.

ISO 14001 Certification
Sixty-nine systems at 105 sites (50 systems at 83 domestic sites and 19 systems at 22 overseas sites) in the Toppan
Group were ISO 14001 certified as ofthe end of March 2010. Six systems
acquired the certification at six sites infiscal 2009: Sodegaura Beverage Plant(of Toppan Packaging Service Co., Ltd.),
Fukuoka Plant (of Toppan Communication Products Co., Ltd.), Fukaya Plant(of the High Performance Component
Subdivision in Living Environment Division), Zama Plant (of Toppan Media
Printec Tokyo Co., Ltd.), Toppan Forms(Sanyo) Co., Ltd., and Beijing Nippo
Printing Co., Ltd.
Two domestic sites are establishingsystems to prepare for the certification.
Toppan is working towards the certification of the remaining three major sites by
fiscal 2012.

Overview of Environmental Management
The Toppan
Group Declarationon the Global
Environment
Legal requirements
Environmental aspects
Environmental impact

Medium-and
Long-term
Environmental
Targets
Environmental burden
assessment through R&D
Green procurement

Eco-protection Activities
Production sites and research facilities
Environmental
policyEnvironmental
objectives
Environmental
targets

Ecoprotection
Activity Plan

Environmental
activities

Eco-protection
Promotion
Committee
Progress review
Achievement
evaluation, review

Ecoprotection
Achievement
ReportReview

National
Eco-protection
Meeting (in Japan)
Report andshare results onenvironmental
activities

Eco-creativity Activities
Sales/marketing and R&D departments
Development
targets

R&D for environmentallyfriendly products

Research
topics

Review

System for the Developmentof Environmentally
Friendly Products
Progress review
Achievement
evaluation, review

Environmental
targets forthe current
fiscal year

Group-wide
meeting

Sales targets

50 TOPPAN CSR REPORT 2010

Sales activities forenvironment-related
business

Eco-creativity Promotion
SystemSales management

Group-wide
meeting

Total

National
Eco-creativity
Meeting (in Japan)
Report andshare results onenvironmental
activities

Environmental
management
review by top
management(as required)

Review of
Medium- andLong-term
Environmental
Targets

Review ofenvironmental
targets forthe current
fiscal year

Environmental Management Structure

Promotion Structure forEnvironmental Activities

Enhancing the Integrated Strengthof the Group
Toppan convenes a semi-annual Toppan
Group Environmental Meeting to promote Group-wide environmental man-

Environmental Management Structure

agement. Through mutual visits tooperational sites, the participating companies share information on environmental issues and the progress achieved
towards their environmental targets. The
sharing of information reinforces theGroup’s environmental risk management
and spreads measures supported by the
integrated strength of the Groupthroughout the workplaces in the Group
companies.
In fiscal 2009, the Ecology Center
carried out internal environmental audits
at the Fukushima Plant of Toppan TDKLabel Co., Ltd.
Toppan intends to further improve thelevel of environmental management by
expanding the boundaries of its internal
environmental audits and supporting theefforts of its Group companies to acquire
ISO 14001 certification in the years tocome.

Toppan Group Environmental
Meeting

Board of Directors
Director in charge of the Ecology Center

Group companies

Toppan divisions

Presidents

Division heads

Environmental
Management Officers

Environmental
Management Officers

Eco-protection
Promotion Committees

Eco-protection
Promotion Committees

9 companies in all

Environmental Management

Ecology Center

Toyo Ink Mfg. Co., Ltd.
Tosho Printing Co., Ltd.
Livretech Co., Ltd.
Toppan Forms Co., Ltd.
Toppan TDK Label Co., Ltd.
Toppan Logistics Co., Ltd.
Tamapoly Co., Ltd.
NEC Toppan Circuit Solutions, Inc.
Toppan Printing Co., Ltd.

Environmental Report

The Board of Directors is positioned as
the highest decision-making body in
Toppan’s promotion structure for environmental activities. The Ecology Center supervises environmental activities
undertaken at the divisions and Group
companies under its Director, the officer
responsible for the Company’s environment-related matters. Every division andGroup company has its own Environmental Management Officers in relevant
departments. These officers head theenvironmental activities carried out attheir departments in collaboration with
the Eco-protection Promotion Committees, the bodies responsible for theactual implementation of the activities.
In fiscal 2009, Toppan established a
new set of environmental management
rules for the construction of a further
enhanced promotion structure for environmental activities.
Toppan has established two in-housesystems to promote the balanced imple-

mentation of its Eco-protection and Ecocreativity Activities: the Eco-protection
Promotion System and the Eco-creativity Promotion System. Under these systems, the Company advances various
environmental measures with guidancefrom the Ecology Center.
Operational sites convene their own
Eco-protection Promotion Committees
while subcommittees set up under thecommittees plan out Eco-protection
Activities to address specific environmental issues. The Energy Subcommittees in these sites have continued topursue energy-saving activities.
With regard to Toppan’s Eco-creativity
Activities, every division has its own Ecocreativity Officers to develop environmentally friendly products and organize
environmental support businesses.

Energy Subcommittees
Other subcommittees

TOPPAN CSR REPORT 2010

51

Environmental Report

Environmental Management

Environmental Management Activities
PointsIToppan conducted internal environmental audits at 59 domestic sites and four overseas sites.
IToppan seeks to ensure environmental compliance through immediate corrective measures, continuous
monitoring after remediation, and additional measures when needed.

Environmental Audit
SystemToppan’s environmental audit systemfollows a three-stage screening process:a system audit by an ISO 14001 registrar, an internal audit by the Ecology
Center, and another internal audit by site
personnel. The internal environmental
audit team consists of assistant auditors
to oversee the environmental management system (EMS), in addition to theinternally certified environmental auditors. The team begins by inspecting andevaluating the status of the EMSs andcompliance with environment-relatedlaws, regulations, and in-house standards at all of the operational sites
audited. To correct the deficiencies
associated with the issues in need of
improvement pointed out during theaudits, the team requires each site tosubmit a Plan for the Improvement ofSpecified Issues (Improvement Plan).
Later, the team conducts a Review of
the Internal Environmental Audit toassess the progress towards the required
improvements.

Results of the Fiscal 2009 Internal
Audit
The internal environmental audit team
identified 690 issues in need of improvement at 59 domestic sites in fiscal 2009.
To correct the deficiencies pointed
out, each operational site follows an
Improvement Plan with a detailed list ofrequired improvements and target dates
for completion. Toppan has confirmed
the progress of improvement measureson 90 issues at six operational sites
through the Reviews of the Internal
Environmental Audit. The progress andeffects of countermeasures against theremaining 600 specified issues are to bereviewed during the internal environmental audits for fiscal 2010.
Onsite hearings and inspections arecarried out every other year, in principle,
at overseas production sites. Two sites
in Southeast Asia and two sites in the
U.S.A. were reviewed for local environmental audits in fiscal 2009. The audits
identified 23 issues in need of improvement. The priorities in the audits were
the implementation and operation of
the EMSs and compliance with local

environment-related laws, regulations,and ordinances. Other points included
the environmental impacts on water andthe atmosphere, and the regular control
of energy and waste. The overseas sites
have followed the example of the domestic sites by taking necessary proceduresto achieve better operational conditions
under the Improvement Plan.

Approach to Environmental
ComplianceToppan Group’s production sites makeevery effort to prevent environmental
pollution by observing established inhouse control standards that tend to bestricter than the national or local regulatory standards. Through this approach,the production sites seek to eliminate
all failures in complying with the environment-related laws and regulations set
by national governments and ordinances
and agreements set by the local governments where the sites operate.
The compliance status at every
domestic site is reported to the head
office via the Eco-protection Achievement Reports every April. Overseas sites,

Internal Environmental Audit System
A summary of activities conducted throughout the year to ensure
Environmental Audit Reports* compliance with about 200 items for internal environmental audits
specified by the head office
Document audit

A pre-check of the Internal Environmental Audit Reports conductedprior to the implementation of an onsite audit to clarify environmental
aspects at each operational site

Onsite audit

1) Hearings with managers and personnel in charge of environmental
matters at an operational site, based on the Manual on Hearings
for the Internal Environmental Audit
2) Verification of the status of environmental management via an
inspection within and around an operational site, based on the
Check Sheet for Inspections for the Internal Environmental Audit

Internal Environmental
Audit Reports

Summary of issues in need of improvement and general comments
for each operational site. Returned to the senior management for
feedback at each site

Plan for the Improvement ofSpecified Issues(Improvement Plan)

Description of a specific improvement plan to address issues
identified by the internal auditors as points in need of improvement.
Submitted to the head office upon confirmation by the chief of the
Eco-protection Promotion Committee at the operational site

Review of the Internal
Environmental Audit

Assessment of the progress of countermeasures against issues
identified by the internal auditors as points in need of improvement,
and the provision of appropriate guidanceInternal Environmental
Audit Result Report

A report delivered to the Senior Corporate Auditor and the Director
in charge of the Ecology Center*The operational sites that have already acquired the ISO 14001 certification report their activities in
the management review document.

52 TOPPAN CSR REPORT 2010

Internal environmental audit hearing

Internal environmental audit inspection

Environmental Management Activities

meanwhile, submit monthly overseas site
reports. The reports from both domestic and overseas sites are assessed byinternal environmental audits.

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

Solvent Leak at the Itabashi Plant
residents and conserve the environment surrounding the Itabashi Plant.

Removal of the underground tank

Fiscal 2009 Results ofEnvironmental Education
Education or Training
New employee training
General environmental
education (introductory level)
Training for newly appointed
managers
General environmental
education (intermediate level)
E-learning
Basic education on theenvironment
Optional training
Introduction to ISO 14001
Introduction to environmentrelated laws
Seminar to enhance the skillsof ISO 14001 internal auditors
Challenge School
Seven courses related to theenvironment
Internal environmental auditor
training program

Number ofTrainees404

160

21,481

15

Environmental Management

Toluene, a solvent for printing, leaked from anunderground tank at the Itabashi Plant in Japanin June 2009. (The details of the incident werereported in the CSR Report 2009 and posted on
the Company website.) Toppan took thoroughcountermeasures at the plant as soon as theleakage was detected. After removal of the underground tank containing the solvent, the soil
surrounding the tank was excavated, replacedwith good soil, and purified by pumping out thesolvent. In another incident a few months later,in September 2009, toluene was detected inspring water in Mitsugi Park, a public spacebordering the plant. The Company promptly
extended one of the water-shielding walls that
had been installed two years earlier to cover
the boundary between the plant and the park.
These walls had originally served to preventthe outflow of groundwater from the premises
in order to contain the spread of hexavalentchromium pollution discovered in the soil andgroundwater in 2007. The Company also laid
activated carbon on the boundary to prevent
toluene from flowing into the park.
Toppan sincerely apologizes for the considerable trouble caused to surrounding neighborhoods and all the other parties involved.
The Company will be taking more vigorous
steps to protect the safety of neighboring

Environmental Education
Toppan provides environmental education through comprehensive e-learningbased programs for all employees. It alsoorganizes specialized training sessions
for employees of every rank, including
new employees and newly appointed
managers.
The Company revised the content
of its e-learning-based programs in fiscal 2009. Optional training courses at
the Toppan Business School include
seminars on ISO 14001 and sessions
to foster internal environmental auditorsand enhance their skills. Personnel fromthe Ecology Center lecture trainees inseminars and sessions held regularly
throughout the year.
Toppan uses this education as anopportunity to raise the environmental
awareness of employees and maintainand improve the level of the Company’senvironmental activities on a continuous
basis.

Environmental ReportCompliance Status in Fiscal 2009
One production site in Japan recorded aconcentration of odor exceeding the regulatory standards set under the Offensive
Odor Control Law. Five production sites,
meanwhile, recorded levels of BOD andnormal hexane exceeding the regulatory
standards set for water contaminants
under the Water Pollution Control Law
and Sewerage Law. Toppan immediately
took corrective measures for every case,including steps to revise the control
methods for equipment. After implementing these corrective measures, theCompany also revised its control procedures for more frequent equipment
checks to ensure that recurrences arereliably prevented.
Toppan also received complaints offoul odor and noise, problems caused
by insufficient control of effluent gastreatment equipment at several sites.
All of these sites resolved the problems

through immediate corrective measures.
Full reports on the incidents were presented to the relevant authorities.
Regarding the pollution of soil andgroundwater environments, the Company continues to monitor groundwater
after soil remediation (➞P. 64).

8
50
42
176

Extension work of the water-shielding wall

TOPPAN CSR REPORT 201053

Environmental Report

Environmental Management

Environmental Communication Activities
PointsIToppan strives to share environmental conservation awareness with stakeholders throughcommunication activities; andIengages in assertive communication for risk control with communities around its plants via dialogues,site tours, and Site Eco Reports.

In-house Communication
Activities
Environmental Meeting
Toppan has held a National Eco-protection Meeting in Japan to report anddiscuss environmental activities twice ayear since 1992. Meeting participants
report environmental performance data,
present actual measures undertaken
at operational sites to promote similaractions throughout the Company, anddescribe the latest revisions of environment-related laws and the countermeasures required for compliance with them.
Every operational site convenes an Ecoprotection Promotion Committee, on amonthly basis in principle, in accordancewith its environmental management system for the sharing of information on
daily activities to reduce environmental
burden. These gatherings are part of amultiple-layer meeting regime throughout Toppan to maximize the sharing anddissemination of environmental awareness and information on environmental
challenges and solutions.

National Eco-protection Meeting held in Japan

Eco-protection Promotion Committee

54 TOPPAN CSR REPORT 2010

Environment Month
The Ministry of the Environment of Japan
has designated June as “Environment
Month,” a time for promulgating intensive
environmental actions in Japan. Toppan
undertakes a number of activities each
June to deepen employee awareness ofthe environment, create comfortable andenvironmentally friendly workplaces, andmaintain and enhance positive relationships with communities.
An environmental slogan coined bya Toppan employee is posted at each
operational site in Environment Month toimprove environmental awareness among
employees. In fiscal 2009, Toppan joinedin the GPN 5 Million Mass-action Project, a campaign by the Green Purchasing Network (GPN) of Japan to promote
mass action for green purchasing.

in the summer (known in Japan as “CoolBiz”) and heavy clothing in the winter(“Warm Biz”).

Communication Activities
outside the Company

Energy-Saving Month
To bolster energy-saving endeavors,
Toppan continues to take part in activities for Energy-Saving Month, an event
advocated by the Ministry of Economy,
Trade and Industry of Japan, in summer
and winter. The Company also encourages its employees to wear light clothing

Environment-related Awards
Toppan received several more environment-related awards from government
institutions in Japan in fiscal 2009 in recognition of its steady and ongoing activities to reduce environmental burden.
The Niigata Plant of Toppan Electronics Products Co., Ltd. received an award
from an environmental conservation
association in Kaetsu, the region to thenorth of Niigata Prefecture, Japan, in
recognition of its dedicated chemical
substance management and communication for risk control with local governments and neighboring communities.
The Itabashi Plant of Toppan Printing
Co., Ltd., meanwhile, received an award
from Itabashi city for the Promotion of
Activities to Mitigate Global Warming at
the Itabashi Green Curtain Contest in2009.
The Fukuoka Plant of Toppan Packaging Products Co., Ltd. received aEnvironmental Slogan

Pro-Green Activities

By the beginning of every June, Environment
Month, Toppan solicits environmental slogans
from employees. One slogan is selected as
the “most outstanding,” two are selected as“outstanding,” and five are selected as “notable.” The most outstanding slogan is posted
at every operational site. Employees submitted 5,168 slogans in fiscal 2009 and 6,700
slogans in fiscal 2010.

In fiscal 2008, Toppan launched Pro-Green
Activities, a series of stable and familiar solutions to various environmental challenges, forthe spread of augmented cost-reduction andmorale-improving effects in corporate operations. The head of each operational site
across Japan runs and oversees the ProGreen activities at the workplace and directsa regimen of self-styled eco activities toposition environmental considerations asstable and familiar elements of employee
operations.
As a measure for morale improvement infiscal 2009, Toppan ran a greeting campaign
to revitalize communication among employees and facilitate smoother daily operations
across the Company. In addition, environmental measures introduced to resolve various challenges at the site level have brought
about considerable cost reductions.

n The Toppan Group’s environmental slogan
for fiscal 2010:“Don’t need that light? Turn it off now.
Never postpone action against global
warming.”Environmental Communication Activities

commendation from the Japan Association for Safety of Hazardous Materials inrecognition of its efforts to establish asecurity control structure by accelerating
projects for the prevention of disasters
and the safety management of hazardous substances.

Issuing Site Eco Reports
Toppan’s ISO 14001-certified sites
have been issuing Site Eco Reports on
their environmental activities since fiscal 2000. As periodic communications
directed towards local municipalities andresidents in surrounding communities,
24 reports were issued at 32 domestic
sites in fiscal 2009.
When issuing reports, operational sites
fully consider the understandability andreadability based on Toppan’s in-house
Guidelines for Creating Environmental
Reports for Operational Sites.

Eco-Products 2009

Toppan Lecturers at Major Seminars
in Fiscal 2009
2009
May

Lecture for seminars
commemorating joint hostingof A-PACK 2009 Osaka and
FOOTE-Kansai 2009 in Japan

November CFP briefing for the Japan
Federation of Printing Industries
CFP briefing for the Printers
Association of Japan
International seminar on
environmentally friendly
printing at the Korean Printers
Association

Environmental Management

Hands-on tour for residents from surrounding
communities

In December 2009, Toppan Printing Co., Ltd.
and three Group companies (Toppan Forms
Co., Ltd., Tamapoly Co., Ltd., and froebel-kan
co., ltd.) held a joint exhibit at Eco-Products
2009 in Japan to show off good examplesof the total environmental solutions from the
Toppan Group. Under the catchy caption“Here! Eco products,” they demonstrated
the environmental efficiency of the Cartocan
and the features of the solar cell back sheet,a renewable energy-related component.

Organizing and Participating in
Seminars and Environment-related
Exhibitions
Toppan wants the public outside theCompany to understand its environmental efforts. The Company participates inenvironment-related exhibitions and dispatches lecturers to seminars held by
various organizations.
In fiscal 2009, presenters from Toppan
traveled to South Korea to explain thelatest Japanese trends in environmentally friendly printing. Toppan lecturers
also described the new environmental
approaches taken by corporations, suchas initiatives on carbon footprint (CFP)and biodiversity conservation, at seminars across Japan.
Toppan’s environmentally friendly
products are on permanent display at
PLAZA21 in the Toppan Koishikawa
Building in Tokyo, a communication
venue set up to present case examplesof the integrated strength of the Group.

Environmental Report

Communicating with Local
Communities
The communities around Toppan’s plants
filed 19 complaints and inquiries at nine
domestic sites in fiscal 2009, indicatingthat many stakeholders were inconvenienced. The complaints had mainly
to do with noise and foul odors. Whilemost of the noise-related problems were
promptly solved, the Company has had
to continuously implement measures forthe remediation of odor-related problems
at two operational sites.
To mitigate noise, Toppan has suspended the use of devices responsible
for noise, installed soundproof sheetsand rubber, and reviewed its checklists
for preventing equipment malfunctions.
To mitigate odors, the Company has
improved its systems for the proper
management of routine operations byrevising its methods for the operationand control of effluent gas-treatment
equipment and deodorizing equipment.
The Company has also stepped up its
comprehensive routine inspections andother measures to prevent the recurrenceof odor- and noise-related problems.
Toppan will continue to engage inenvironmental management throughdedicated communications with residents in surrounding communities.

December CFP briefing for the Japan
Federation of Printing Industries
2010
March

Biodiversity workshop of the
Eco Management Forumsponsored by Nikkei Business
Publications

Site Eco Reports (in Japanese)

TOPPAN CSR REPORT 201055

Environmental Report

Environmental Conservation Activities

Mitigating Global Warming and Saving Energy
PointsIToppan streamlined the operation of equipment to reduce energy consumption.
ICO2 emissions per unit of sales increased by 3.8% compared to fiscal 2008,
mainly due to decreases in orders received and declines in the unit prices of products.

Energy-saving Activities
Toppan undertakes energy-saving activities to reduce the emissions of carbon
dioxide (CO2) and other greenhousegasses under the established mediumand-long-term target of reducing CO2
emissions per unit of sales by 10% by
fiscal 2010, compared to the fiscal 2000
level. The Company sets a yearly target
to accomplish the medium-and-longterm target. To meet this target, every
production site sets individual targets foremissions per unit of production value
and emissions per unit of production
volume by product type.
CO2 emissions per unit of sales in fiscal 2009 were increased by 3.8% compared to fiscal 2008, failing short of thetargeted reduction of 5%. A substantial
decrease in orders received from thesecond-half of fiscal 2008 to the firsthalf of fiscal 2009 and declines in product unit prices cancelled out the CO2
reduction effects achieved through fuelswitchovers, efficiency improvement ofwaste heat boilers, and other energysaving measures.
Compared to the fiscal 2000 level,
CO2 emissions per unit of sales in fis-cal 2009 were increased by 10.6%. For
fiscal 2010, Toppan seeks to reduce
CO2 emissions per unit of sales by 1%
compared to fiscal 2009. To accomplish
this target, the Company will reinforce
its energy-saving activities by further
streamlining equipment operation andtaking a more assertive approach tothe installation of equipment such asenergy-saving devices.
Details of the Activities
Toppan worked to reduce energy consumption by extensively reviewing andadjusting equipment operation in anenvironment of reduced equipment use
in fiscal 2009, a year with sharply lower
orders received. To adjust to the actual
conditions of use, the Company has
controlled equipment operation by suspending the operation of unnecessary air
conditioning, fans, and pumps, reducing
the numbers of operated machines, andreviewing preset baselines for temperature, pressure, and other conditions in
the operating environment. The Company has also reduced energy consumption in standby mode by powering
off equipment whenever possible during

Energy Consumption(1,000 GJ)
28,00021,000(GJ/million yen)
20

17.04

16.40

16.30

17,796

18,34815
17,182

16,39014,023

2005

2006

2007

2008

CO2 emissions
CO2 emissions per unit of sales

0.67

2009
(Fiscal year)

0.73

900

5

2000

1,200

10

7,000

0

(1,000 t-CO2)
1,500(t-CO2/million yen)
1.00

16.98

14.47
16,35014,000CO2 Emissions

Energy consumption
Energy consumption per unit of sales
16.46

lunch breaks, holidays, and other idle
periods.
To more thoroughly share and disseminate information on effective practices throughout the Company, Toppan
sought cooperation from external equipment manufacturers that have alreadydeployed excellent energy-saving measures. The chief means of informationexchange were plant visits by Toppan
to these manufacturers and return visits by these manufacturers to Toppan.
Following on from fiscal 2008, “green
curtains,” natural sources of shade forsaving energy, have been installed at 27
domestic sites in fiscal 2009.
From fiscal 2010, Toppan plans toreplace its existing boilers, refrigerating machines, and other machines withhigh-efficiency alternatives and to harness waste heat from thermal-storage
combustion units for heating. The
Company will consider plans for installing more LED lights and other high-efficiency devices, expanding the use of theequipment for renewable energy generation such as solar panels, and adopting
unused energy sources (➞P. 63).

0

650

730

0.75

785

0.72

805

0.71

0.74

0.80
0.60

751

715

600

0.40

300

0.20

0

2000

2005

2006

2007

2008

2009
(Fiscal year)

0

Note: Energy consumption associated with fuel consumption is calculated using the conversion factor specified in the year 2000 amendment of the Law
Concerning the Rational Use of Energy of Japan. The energy consumption associated with electricity consumption, however, is calculated uniformly as
0.00983 GJ/kWh. CO2 emissions are calculated by the method specified in the Guidelines for Calculating Greenhouse Gas Emissions from Businesses(2003) from the Ministry of the Environment (MOE) of Japan. The CO2 emissions associated with electricity consumption, however, are calculated
uniformly as 0.378 t-CO2/1,000 kWh. When calculated by another MOE method specified in the Ministerial Ordinance Concerning the Calculation ofGreenhouse Gas Emissions from Business Activities of Specified Dischargers (the latest amendment on March 31, 2010), CO2 emissions in fiscal 2009amounted to 765,936 t-CO2. The Company does not use the fiscal 1990 CO2 emissions as the base year value, as problems with the measurement
accuracy and expansions and revisions in the data boundaries would make a retroactive calculation highly contingent on elaborate estimates. Theenergy type ratio and other detailed data are shown on P. 65.

56 TOPPAN CSR REPORT 2010

Resource Circulation
PointsIToppan certified and registered 45 sites as “zero-emission sites” out of 57 domestic sites in total; andIreduced final landfill waste disposal by 40.9% compared to fiscal 2008 and by 96.1% compared tofiscal 2000, attaining the medium-and-long-term target before the deadline set.

Waste Reduction Activities

targeted reduction of 5% year-on-year.
This result was mainly attributable to thesubstantial decline in orders received
continuing from fiscal 2008. The overall reduction compared to fiscal 2000
stood at 19.3% in fiscal 2009, a level
somewhat behind the 25% reduction set
as the medium-and-long-term target for
fiscal 2010.
The Company will accelerate its
efforts for the control of waste generation and the recycling of waste throughthe improvement of waste liquid treatment and other waste-reduction measures (➞P. 63).

Targeting Zero Emissions
and Recycling Waste
Toppan began certifying “zero-emission sites” in fiscal 2001. The recycling
rate has great influence on the degree
to which the Company can expect
to achieve its zero-emission targets.
Toppan, therefore, defines zero-emission
sites as operational sites with recycling
rates of 98% or over and zero-emission
approval by the Ecology Center in thehead office. The center certified andregistered 45 zero-emission sites out

Total Waste Generation, Final Landfill Waste Disposal,
and Recycling Rate
Total waste generation
Final landfill waste disposal
Recycling rate (recycling / total waste generation)
92.9

96.3

98.0

98.2

98.8

(%)
100
99.0
80

400
337.2

330.9

325.0

333.6

300

313.8

60
40

200

20

100
24.0
0

281.5

2000

3.8
2005

2.0
2006

1.8
2007

1.6
2008

0.9
0
2009
(Fiscal year)

Waste Generation Per Unit of
Production Value(tons/
million yen)
1.0

0.879

0.8
0.6

0.696

0.719

0.709

2007

2008

2009
(Fiscal year)

0.4
0.2

0

2000

Environmental Conservation Activities(1,000tons)
500

of Toppan’s 57 domestic sites for fiscal
2009 (➞P. 65). The Company will work
towards the target of 51 certified sites
in fiscal 2010.
Toppan recorded a 92% material
recycling rate in fiscal 2009, failing tomeet the 94% target set.
To further improve the material recycling rate in coming years, the Company
intends to optimize waste treatment bysearching for new external recycling
partners and sharing information
in-house.

Environmental Report

Waste paper derived primarily fromoperational sites in the Information &Networks and Living Environment fields
comprises the largest portion (75%) of
the total waste generated at the Toppan
sites. This is followed by waste plastics
from plants in the Living Environment
field and waste acids and alkalis suchas waste etchant from plants in the Electronics field.
As its medium-and-long-term target, Toppan aims for the reduction of
final landfill waste disposal by 95%
by fiscal 2010, compared to the fiscal
2000 level. In fiscal 2009, the Company
reduced final landfill waste disposal by
40.9% relative to the fiscal 2008 level,
far surpassing the 15% target set for
the year. Overall, final landfill waste disposal was reduced by 96.1% by fiscal
2009 compared to the fiscal 2000 level.
This reduction surpasses the mediumand-long-term target before the deadline set.
On the other hand, the waste generation per unit of production value in fiscal
2009 was reduced by 1.4% relative tothe fiscal 2008 level, falling short of theNote: Final landfill waste disposal is direct landfill disposal plus landfill disposalof residues from intermediate treatment. This includes the residues
discharged from recycling processes.

TOPPAN CSR REPORT 201057

Environmental Report

Environmental Conservation Activities

Pollution Prevention and Chemical Substance Management and Reduction
PointsIToppan reduced the handling of chemical substances designated under the PRTR law by 8.1% comparedto fiscal 2008 and recorded an 11% increase in VOC emissions into the atmosphere due to a suspensionof VOC effluent gas-treatment equipment for restoration works; andIassessed the risk of fluid leakage from buried pipes and underground tanks at operational sites andtook necessary countermeasures.

Preventing Pollution
Every production site gleans an accurate
picture of the use and discharge ofmaterials (notably chemical substances)and identifies its own environmental
burden. Based on the results, the Ecoprotection Promotion Committee atevery site sets in-house control standards even more stringent than the legal
requirements. By complying with thesestandards, Toppan production sites
work vigorously to reduce their environmental burdens and prevent pollution.
Preventing Atmospheric Pollution
and Protecting the Ozone Layer
To prevent atmospheric pollution,
Toppan controls boilers and other equipment responsible for smoke and soot byswitching fuels and managing operations
under appropriate combustion conditions. The Company has also introduced
VOC effluent gas-treatment equipment
for the thorough control of atmosphericpollutants. VOC emissions into the atmosphere in fiscal 2009 were increased by
11% compared to fiscal 2008, missing
the 10% reduction targeted for the year.
Efforts to reduce emissions were mostly
VOC and Toluene Emissions into the
Atmosphere(tons)
24,000VOCs

Toluenehindered by a suspension of VOC effluent gas-treatment equipment for restoration works.
For ozone-layer protection, all equipment that uses specified chlorofluorocarbons at Toppan plants is controlled inconformance with the relevant laws andregulations. The step-by-step replacement of this equipment is now being
considered.
Preventing Water and Soil Pollution
To prevent pollution in the water environment, Toppan manages wastewater at
its plants by installing wastewater treatment facilities designed to ameliorate
specific production processes. Wastewater recycling systems have been introduced at production sites with intensive
water consumption in the Electronics
field. These systems enable the sites
to recover and reuse wastewater andreduce the levels of water consumption
and effluent discharge.
Toppan assessed the risk of fluid
leakage from the buried pipes andunderground tanks owned by all of
its operational sites in fiscal 2009.
Pipes and tanks at any risk of leakage
NOx and SOx Emissions(tons)
250

20,549NOx
222

Toppan works to reduce the handling ofchemical substances designated under
the Pollutant Release and Transfer
Register (PRTR) law of Japan.
The handling of these substances
was reduced by 8.1% in fiscal 2009,
surpassing the targeted reduction of 5%
year over year. The total transfer was
also decreased by 6.7%, while the total
release increased by 13.4%, comparedto the fiscal 2008 levels. As describedearlier, the increase in the release mainly
resulted from a substantial increase intoluene emissions due to the suspensionof VOC effluent gas-treatment equipment. In fiscal 2010, Toppan will ascertain the handled volume of chemical
substances newly designated under the
PRTR law to prepare for consistent
reductions after fiscal 2011 (➞P. 66).

Chemical Substances Designatedunder the PRTR Law(tons)
8,000

SOx

Total transfer
Total handling
6,893
6,850

Total release

6,035
174

6,000

5,547

150

150

2,000

12,0006,159

7,851 7,326

8,140

100
59

6,000

0

Managing Chemical
Substances

208

200

18,000were replaced, repositioned at groundlevel, or modified by other necessary
countermeasures.

50

2000

449

362

412

2007

2008

2009
(Fiscal year)

Note: Emissions into the atmosphere are calculated in conformance with the standards
established by the Japan Federation of
Printing Industries (JFPI) and the Japan
Electronics and Information Technology
Industries Association (JEITA).

58 TOPPAN CSR REPORT 2010

44

1,000
32

893

31
672

0

2006

2007

2008

2009
(Fiscal year)

Note: Calculated based on the Environmental
Reporting Guidelines (fiscal 2007 version)and the Environmental Activities Evaluation
Program (April 2002) issued by the Ministryof the Environment of Japan.

0

2006

726

678

633

526

408

463

2007

2008

2009
(Fiscal year)

Note: Calculated based on data on the handling,
release, and transfer of chemical substances designated under the PRTR law at each
operational site. Dioxins are excluded due
to a difference in the counting unit.

Approach to Logistics
PointsIToppan Logistics’ energy consumption per unit of transport volume increased by 3.4% comparedwith fiscal 2008.
IThe company reduced CO2 emissions by 9.6% compared with fiscal 2008.
IThe company continues to pursue enhancements in the safe operation of company-owned vehicles.

Reducing CO2 Emissions
Toppan Logistics Co., Ltd., the logistics
specialist for the Toppan Group, isreducing the volume of CO2 emitted fromcompany vehicles in a coordinated effort
with its shippers, Toppan Group companies. Under the revised Energy Conservation Law of Japan, a “designatedshipper*1” is required to reduce energy
consumption per unit of transport volume by an average of 1% a year for five
years*2, starting from fiscal 2006.

In fiscal 2010, Toppan Logistics willcontinue to increase the number ofGPS-equipped vehicles for the vehicle
allocation tracking support system.
This will enhance the load efficiency of
every truck and improve transportation
efficiency.

Energy Consumption Per Unit ofTransport Volume

Fuel Efficiency of Company-owned
Vehicles*1 Designated shipper: Any entity engaging in
the transport of more than 30 million tonkilometers of freight per year.
*2 The annual average of energy consumption perunit of transport volume: An average year-onyear reduction rate. The result for fiscal 2009,
calculated based on the revised Energy
Conservation Law of Japan, was a 1.2%
reduction.

Per unit of transport volume
Year-on-year reduction rate
4.8

75

(%)
6

4.59

4
4.5

2.1
70

(km/L)
5.0

68.46

65.99
63.82

65

4.20

2

67.05

0

60

4.0

–2
3.5

55
0

4.25

4.36

–3.4
2006

2007

2008

2009
(Fiscal year)

G Mark certificate
3.52

–4
–6

3.0

2001

2006

2007

2008

2009
(Fiscal year)

Environmental Conservation Activities(kL/million tonkilometers)
80

Toppan Logistics operates a safe transportation management system under thecomprehensive law on driving transport
safety enforced in Japan from 2006. The
company strictly controls vehicle operations in compliance with the law.
In pursuit of enhanced safe operations of company-owned vehicles,
Toppan Logistics extended the boundaries of the G Mark certification (a markfor excellence in operational safety oftrucks evaluated and administered by
the Japan Trucking Association; theKawaguchi and Sagamihara sites havealready acquired the mark) to cover the
Niiza site in fiscal 2009.
Drivers from Toppan Logistics participated in the 2009 Belt-up 100 Campaign, a campaign held in Saitama,
Japan to evaluate the rate of safety belt
use and the effectiveness of various
measures for safe transportation. The
safety records of these drivers earned
the company an award for excellent site
operations for the third year in a row.

Environmental Report

Improving Transport Efficiency
In spite of the company’s efforts towards
a targeted reduction of 1%, energy consumption per unit of transport volume
at Toppan Logistics in fiscal 2009 was
65.99 kL/million ton-kilometers, a 3.4%
increase compared with fiscal 2008. CO2
emissions were 33,433 tons, or 9.6%
lower than the fiscal 2008 level.

Promoting Green Managementcertified Initiatives
Toppan Logistics has acquired the GreenManagement Certification granted by
the Foundation for Promoting Personal
Mobility and Ecological Transportation ofJapan. To earn this certification, an entity
needs to satisfy 36 or more of the 66
criteria on environmental consciousness
specified in a manual issued by the foundation. Toppan Logistics succeededagain in renewing the certification in fiscal 2009 by promoting trucking operations with lower environmental burden.
The company nurtures an eco-driving
consciousness in drivers by holding
regular study sessions to review data
recorded by digital tachometers on theroad. These approaches help to improve
the fuel efficiency of company-owned
vehicles.

Securing Safe
Transportation

Plaque for the Belt-up Award for excellent site
operations

TOPPAN CSR REPORT 201059

Environmental Report

Environmentally Friendly Products and Environment-related Business

Developing and Assessing Environmentally Friendly Products
PointsIToppan has developed a total of 98 environmentally friendly products as of the end of March 2010.
IToppan undertook an experimental initiative for emission trading and carbon offset; andIformulated an in-house structure to calculate CO2 emissions up to the delivery of products and services.

Basic Thinking on
Environmentally Friendly
Products
Toppan develops environmentally friendly
products in accordance with its own setof criteria established in closer consideration of the social demand for products and services from the divisions andToppan’s 14 Environmental Points basedon ISO 14021. The Ecology Center
assesses newly developed products inorder to certify and register those thatmeet the criteria for “environmentallyfriendly products.” Four products wereregistered in fiscal 2009. One of the targets for fiscal 2009 was to review thecriteria for environmentally friendly products and revise the criteria based on thereview results. Toppan managed to
examine a way to express the criteria innumerical values, but it was unable torevise the criteria itself. Toppan will continue its review of the criteria and press
forward with revisions in the near
future.
The Company has developed 98
environmentally friendly products as ofthe end of March 2010 (➞P. 67).

Environment-related
Business

The Green Bankbook is a highly recyclable bankpassbook with PVC-free magnetic tape and acover made from a paper-cloth instead of a conventional textile cloth.

The solar cell back sheet is a lightweight, highly
weather-resistant film designed to protect thebacks of solar panels and enable the panels to
operate stably for extended periods of use.

Toppan Material Wood is a recycled industrial
material made entirely from waste wood andwaste plastic. This industrial material can be recrushed and recycled without any change of its
original form or function.

The companies of the Toppan Group,
like Toppan itself, consider ways to conserve the global environment as they
conduct their corporate activities. Eachcompany assertively develops, produces, and markets eco-friendly products in line with its own Eco-productStandards carefully formulated in consideration of the demands from society
and the features of its products and services. The total sales of the environmentrelated businesses of the Group stoodat 224.7 billion yen in fiscal 2009.
Total sales decreased from the previous year, but the Group embarked on
new business ventures such as the production of solar cell back sheets.
The Toppan Group will examine a way
to standardize the criteria for environmentally friendly products on a Groupwide basis in pursuit of improved anduniform environmental efficiency for
products and services.

Toppan’s 14 Environmental Points and Environmental Considerations
Life Cycle
Stage
Products anddistribution

Use

After use

ISO 14021
Environmental
Labeling Type II

Toppan’s 14 Environmental
Points for Environmentally
Toppan’s Standard
Friendly Products
1. Use of safe materials
Toppan will not use substances banned by industrial organizations or substances that
could potentially contaminate products manufactured at the Company with environmental hormones.
Recycling rate
2. Use of recycled materials Toppan will not produce products from recycled materials that could potentially containenvironmental hormones or substances banned by industrial organaizations.
Resource reduction 3. Resource-saving
The consumption of resources is reduced during the materials production and logistics
processes.
4. Reduced energy conThe consumption of energy and water is reduced during the production and logistics
sumption in production
processes.
Recovered energy 5. Use of recovered energy
Products are produced with surplus energy or energy recovered from waste materials.
Reduced solid
6. Reduced solid waste
The generation of solid waste is reduced through modifications of production prowaste
cesses, product designs, and packaging. (Byproducts reused in processes are notincluded in this category.)
Energy-saving
7. Energy-saving
Energy consumption is reduced during product operation.
8. Reduced release of
Products release the lowest possible levels of chemical substances.
chemical substances
Long-life products
Reusable/refillable

9. Long product life
10. Reusability

Recyclable

11. Recyclability
12. Suitability for disposal

Easy detachment
designDegradability

60 TOPPAN CSR REPORT 2010

13. Easy separation anddisassembly
14. Biodegradability

Product lifetimes are extended by improving durability and adopting scalable designs.
Products can be reused or refilled for uses related to the purposes for which they wereoriginally intended or for other purposes of the Company. Systems and infrastructures
are provided for collection and reuse.
Systems and facilities are provided for product recycling. Recyclable parts are indicatedas such.
The materials used discharge the lowest possible levels of harmful gases during incineration. Landfill waste is carefully treated to prevent all forms of soil contamination.
Product designs enable easy separation and disassembly. The parts and materials
used support product recycling.
The biodegradable and photodegradable materials used in the products break down
naturally and are assimilated back into the environment.

Developing and Assessing Environmentally Friendly Products

Using an Emission Trading
SchemeIn fiscal 2009, Toppan undertook an
experimental initiative to create “zero CO2emission plants and offices” through acarbon offset program for the Sodegaura
Beverage Plant of Toppan Packaging
Service Co., Ltd. and the office buildingsof the head office in Akihabara, Tokyo.
To qualify these sites as zero CO2emission plant and offices, Toppan offset
approximately 7,600 tons of CO2 emitted
from these sites by amortizing the emissions through the purchase of an equalamount of CO2 in Certified Emission
Reductions (CERs; Kyoto mechanism
credits), an emission trading scheme.

Calculating and Labeling
Carbon Footprint

Establishing an Evaluation
Method Well Suited to thePrinting Businesses
In cooperation with Norihiro Itsubo, an
Associate Professor from Tokyo City
University, Toppan has introduced aCalculation of CO2 Emissions Derived from the Manufacturing of theJapanese Version of this Report (15,000 copies)

5,420 kg

Paper

65 kg

Ink
CTP plate

Environmental Impact andEnvironmental Efficiency
Environmental Impact*1
Environmental Efficiency*2

120

Production
19%

100

100

99.3
90.9

198.0

80

50 plates

88.3

220
210
200

191.5

➞5,521 kg-CO2

190

60

Energy consumption
during production

186.5

40
20

176.4

180
170

Plate-making
Printing

2,571 kWh

Raw-material
procurement
80%

Binding➞1,290 kg-CO2
Transport

6 t-kmEmitted 6,906 kg-CO2 in total

0

2006

2007

2008

2009
(Fiscal year)0*1 The value in fiscal 2006 = 100 (baseline)*2 Net sales / environmental impact(460 g-CO2 per copy)➞95 kg-CO2
The calculation of CO2 emissions covers plate-making, printing, and binding processes. The stages ofsales, use, disposal, and recycling are not included. Values published from manufacturers and industry
organizations are used as CO2 emission factors.

TOPPAN CSR REPORT 2010

Environmentally Friendly Products and Environment-related BusinessTransport
1%

Raw-material consumption

Life-cycle Impact assessment Method
based on Endpoint modeling (LIME),an LCA method for the quantitative andintegrated assessment of environmental
impact. With this method, Toppan seeks
to grasp and reduce environmental
impact caused by energy and resource
inputs into business activities and CO2,
VOCs, and other substances released
as a result of business activities. LIME
is a method for continuously evaluating
environmental efficiency for every fiscal year. The environmental efficiency
is calculated by dividing net sales by an
integrated environmental impact indicator with the value for fiscal 2006 set asa baseline. Based on the evaluation
results, the Company will formulate
actual measures to further reduce its
environmental burden.
In fiscal 2010, Toppan will be applying this evaluation method to the environmental impact assessment of packaging
materials for food and consumer electronics, publications and printed materials
such as magazines and books, color filters installed in LCD televisions, and othermajor products in the business fields.
The scope of application is expected tosteadily expand in the future.

Environmental Report

The Carbon Footprint Pilot Program
launched by the Ministry of Economy,
Trade and Industry of Japan provides a
new set of methods for calculating andlabeling CO2 emissions derived fromproducts and services. Toppan has
been taking part in the formulation of
Product Category Rules (PCRs) for publication and commercial printed materials (intermediate goods) and containers

and packaging under this program since
fiscal 2008.
Toppan established an in-housestructure responsive to the calculation
requirements for each of its products
under the PCRs in fiscal 2009. The CO2
emissions derived from this CSR report,
for example, have been calculated based
mainly on paper, ink, and other raw
materials procured and the energy consumption during production. (From thecalculation, one copy of this report emitted 460 g-CO2.)
The CO2 emissions from the production of printed products are derived primarily from paper. To reduce this sourceof emission, Toppan is developing products that require fewer raw materials andreducing materials used in manufacturing. The Company will launch initiatives
to link its energy-saving activities with
its efforts for reducing CO2 emissions
derived from manufacturing.

61

Environmental Report

Environmentally Friendly Products and Environment-related Business

Environmentally Friendly Printing Services
PointsIToppan offers a lineup of environmentally friendly products and services attuned to every stage of printed
material production, from raw material selection, design, and plate-making to printing and processing.
IToppan planned out the production of this CSR report to ensure its recyclability as paper for printing.

GPN Purchasing Guidelines
for Offset Printing Services
As a member of the Green Purchasing
Network (GPN) of Japan, Toppan tries
to minimize the environmental impact ofprinting and provides printing services
based on the GPN Purchasing Guidelines for Offset Printing Services. The
Company offers environmentally friendly
technologies and materials for every
step of the printing process designatedunder the guidelines, from the selectionof papers and inks to surface treatment
and binding. Many local governments
and companies involved in green purchasing have adopted these services.
Production and Plate-making
Toppan saves natural resources andenergy by excluding filming and development processes through the full digitalization of every stage, from productionof the original manuscript and artwork toplate-making.

Using Environmentally Friendly Inks
Soybean oil ink developed by Toppan
contains virtually no aromatic hydrocarbon, an organic compound harmful toboth the human body and the earth’s
atmosphere. Toppan has also commercialized a vegetable-oil printing ink
recycled from used soybean oil collectedfrom school cafeterias, restaurants, andother sources.
In addition, the Company is spreading
the use of environmentally friendly inks
by printing with vegetable-oil inks designated by the Japan Printing Ink Makers
Association (JPIMA). All products printed
with these inks bear the “VEGETABLEOIL INK” mark from the JPIMA.
Providing Environmentally Friendly
Paper
The selection of printing paper contributes greatly to the conservation of forest resources and biodiversity. Toppan’senvironmentally friendly paper lineup
includes tree-free paper, FSC-certified
paper, and paper made with pulp fromforest-thinning operations.

Waterless Printing System
The waterless printing system repels ink
with a layer of silicon instead of a layer ofwater. This eliminates the use and discharge of dampening water, an industrial
chemical with an organic solvent isopropyl alcohol (IPA) component.
Recyclable Methods for Binding andProcessing
Fragmentation-resistant hot-melt is anadhesive suitable for use on paper to berecycled. It can be completely removed
from printed materials without fragmenting during recycling. Toppan has also
developed methods for binding andprocessing to confer outstanding recyclability. With Eco-binding, for example,
printed materials can be bound without
the stitching wire used in conventional
saddle stitching.

Recyclable Printed Materials
In a move to increase the paper-to-paper recycling rate, The Japan Federation of Printing
Industries (JFPI) and relevant industries jointly
issued a set of “Guidelines for recyclable print
productions” in March 2009. The guidelinesclassify papers, inks, and processed materials
based on the component properties obstructive to recycling and clarify the recyclability ofa printed material made from various classified
materials.
The usage rate of waste paper for printed
materials for publication and other purposes iscurrently limited to about 30%. Some printing
materials degrade the quality of recycled paperor cause problems in the processes to produce
them. To enhance the usage rate, the printed
materials themselves must have improved
recyclability.
Toppan is generalizing recyclable printing incooperation with client companies and business partners.
Source: “Guidelines for recyclable print productions” issued by The Japan Federation of
Printing Industries and the Paper Recycling Promotion Center of Japan in March
2009

62 TOPPAN CSR REPORT 2010

Printing Materials(papers, inks, and processing materials)

Recyclable Printed
Materials

Ranking of waste paper recyclability
Rank AFor paper:

Production

Does not inhibit recycling into paper
and paper board.

Fully recyclable
into paper

Rank BFor paper: � For paper board:(paper, paper board)

Recyclability A
This printed material
can be recycled into
paper for printing.

For paper board:

Intended Purposeof Recycled Paper

Recycling

Paper
Newspapers,
flyers,magazines,
books, etc.

Inhibits recycling into paper, but notrecycling into paper board.

Rank CFor paper: � For paper board: �Recyclability B
This printed material
can be recycled into
paper board.

Inhibits recycling into paper andpaper board.

Rank D
Production
For paper: � For paper board: �
Cannot be recycled into paper or
paper board: Interspersed tracematerials cannot be removed.

Fully recyclable
into paper board

Paper board
Paper boxes,
picture books,
cardboard
Recycling containers,
paper tubes,
etc.

This CSR report has been awarded a Recyclability A ranking.

Environmental Report

Environmental Data

Environmental INPUT/OUTPUT Data by Business Fieldn Combined Results by Business Field
Category

Chief Component

Material

INPUTOUTPUT

Total input (tons)
Papers (tons)
Plastic (tons)
Glass (tons)
Ink, solvent (tons)
Other (tons)
EnergyTotal energy consumption (1,000 GJ)
Primary energy [fuel] (1,000 GJ)
Secondary energy [electricity, steam] (1,000 GJ)
Water
Water consumption (1,000 m3)
Industrial water (1,000 m3)
Municipal water (1,000 m3)
Groundwater (1,000 m3)
Rainwater (1,000 m3)
Use of water circulated on premises (1,000 m3)
ChemicalHandling of chemical substances designated under thesubstance
PRTR law (tons)
Atmosphere CO2 emission (t-CO2)
Emission of ozone-depleting substances (ODP-kg)
NOx emission (kg)SOx emission (kg)
Emission of dioxins (mg-TEQ)
Release of chemical substances designated under the PRTR law (tons)
Total effluent discharge (1,000 m3)
Water
and soilPublic water system (1,000 m3)
environments
Sewage system (1,000 m3)
Underground penetration (1,000 m3)
Onsite evaporation (1,000 m3)
BOD (kg)
COD (kg)
Nitrogen discharge (kg)
Phosphorous discharge (kg)Release of chemical substances designated under the PRTR law (kg)
Waste
Total generation (tons)
Recycled (tons)
Final landfill waste disposal (tons)

Information &LivingNon-production
Electronics
Networks
Environment
Sites
1,353,803
512,497
62,4400
1,323,718
285,505402
03,283
167,995
5,171
0
1
0
31,5850
13,84736,5552,203
012,95422,442
23,079
0
7,719
6,552
9,983
745
2,011
1,906
907
131
5,708
4,646
9,076
614
3,421
2,017
11,389
332
998
539
1,914
0
1,022
667
266
317
1,396
812
9,208
0
5
0
0
15
0
33
26,121
0
1,530
2,487
1,587
3
347,612444
75,043
146
4
86
2,821
1,235
1,586
3
535
1,304
4,340
473
56
3,901
252,799
249,866
2,241

312,851
91
89,60920,077
90
315
1,445
893
552
39
458
3,140
2,332
5,699
1,014
70
121,334
117,294
3,427

483,133
21
21,742
11,8630
68
10,463
8,418
2,046
1
855
46,587
11,964
12,810470
279
35,68133,811881

31,002
0
3,617
34
0
0
291
0
291
0
41
0
0
0
0
0
2,432
1,593
28

Total
1,928,740
1,609,625
176,449
31,58652,60558,47524,9994,955
20,044
17,1593,451
2,272
11,41620
26,154
5,607
1,174,599
556
190,011
32,12094
469
15,021
10,545
4,475
43
1,889
51,031
18,63618,982
1,540
4,250
412,246
402,564
6,577

Note: CO2 emissions are calculated by the method specified in the Guidelines for Calculating Greenhouse Gas Emissions from Businesses (2003) from the
Ministry of the Environment of Japan. The calorific value of the primary energy input associated with electricity consumption is calculated uniformly as
0.00983 GJ/kWh. The data for overseas sites, however, are calculated based on other definitions.

Mitigation of Global Warming through the Development of Energy-saving Measures

Information &Networks
LivingEnvironment

Non-production
sites
Total

Koishikawa: Adopted LED lights—–2,290–3,200–4,050–1,000Main Plans for Fiscal 2010
Kawaguchi: Replace once-through boilers
Takino: Replace chillers
Fukuoka: Review the operation control for air
conditioners
Satte: Use waste heat from effluent gas-treatment
equipment for heating
Gunma: Replace refrigerating machines
Sendai: Introduce a humidification system with water
Kumamoto: Replace refrigerating machines
Mie: Review the operation of fan filter units
Niigata: Review the preset temperatures for air
conditioners
Koishikawa: Introduce a “free cooling” system

Reduction Target(t-CO2/year)–2,470–3,230–3,500–1,000–10,540—–10,200

Reduction Result(tons/year)

Main Plans for Fiscal 2010

Reduction Target(tons/year)

Promotion of Waste Reduction and Recycling
Main Measures in Fiscal 2009
Information &Networks

LivingEnvironment

Electronics
Non-production
sites
Total

Sakado: Progressed in the reduction of defective
platesKawaguchi: Reduced the generation of waste
machine oil and waste ink
Toppan Seihon: Changed wooden pallet suppliers
Gunma: Reduced the generation of waste oil
through the distillation of solvents; reduced
the volume of ash through improvements in
incineration efficiency
Fukusaki: Separated incinerated ash for processing
as recyclable resources
Mie: Reviewed the treatment methods for waste
alkalisShiga: Separated and internally treated waste
liquids
Reduced the generation of non-industrial wastes—–4,190–2,030–4,110–100–10,430

Sakado: Proceed further in the reduction of defective
platesKawaguchi: Reduce the generation of waste
machine oil and waste ink
Ebie: Reduce the generation of non-industrial wastes
Gunma: Reduce the generation of waste oil throughthe distillation of solvents; reduce thevolume of ash through improvements in
incineration efficiency
Chitose: Halt the generation of sludge by dismantlingeffluent treatment equipment
Mie: Review the treatment methods for waste alkalis
Shiga: Review the treatment methods for waste liquids;
reduce the generation of non-industrial wastes
Reduce the generation of non-industrial wastes—–2,000–2,000–3,200–100–7,300Note: Includes measures to reduce waste generation per unit of production value, improve the material recycling rate, reduce final landfill waste disposal, andexpand the number of certified zero-emission sites.

TOPPAN CSR REPORT 2010

Environmentally Friendly Products and Environment-related Business/
Environmental Data

Electronics

Ranzan: Installed heat pump chillers
Sakado: Modified air conditioners to improve theirenergy-saving features
Nagoya: Took countermeasures against air leakage
Gunma: Improved the thermal efficiency of waste
heat boilers
Sendai: Regulated the air capacity of air conditioners
Fukuoka: Recovered heat from heat pipes
Mie: Optimized the frequency of air release from ovens
Asaka: Suspended the operation of clean rooms
Niigata: Reduced the number of chilled-water
pumps

Reduction Result(t-CO2/year)

Environmental Report

Main Measures in Fiscal 200963

Environmental Report

Environmental Data

ISO 14001 Certification (69 systems at 105 operational sites, as of March 31, 2010)n Toppan Printing Co., Ltd. and Manufacturing Subsidiaries
Operational Site
Registration
Registrar(Division or Manufacturing Subsidiary)
Date
Shiga Plant (Toppan Electronics Products Co., Ltd.)JQA
Jul. 1998
Kumamoto Plant (Toppan Electronics Products
JQA
Nov. 1998
Co., Ltd.)
Toppan Cosmo, Inc. [Kashiwa Plant and Satte
JQA
Mar. 2000
Plant of Toppan Decor Products Inc.]
Niigata Plant (Toppan Electronics Products Co., Ltd.),
JQA
Apr. 2000
Niigata Plant (NEC Toppan Circuit Solutions, Inc.)
Sakado Site
JQA
Oct. 2000
Ranzan Plant (Toppan Communication Products
JQA
Nov. 2000
Co., Ltd.)
Akihabara Office (Living Environment Division)
JQA
Mar. 2001
Itabashi Site (Information and Communication
JQA
Feb. 2002
Division) [including Toppan Seihon Co., Ltd. andToppan Display Co., Ltd.]
Fukusaki Plant (Toppan Packaging Products Co.,
JQA
Jul. 2002
Ltd.) [including Toppan Packs Co., Ltd. and the
Wakayama Plant of Toppan Plastic Co., Ltd.]
Toppan Graphic Co., Ltd.
JQA
Aug. 2002
Takino Plants (Information and Communication
JQA
Oct. 2002
Division, Living Environment Division)
Gunma Plant (Toppan Packaging Products Co., Ltd.)JQA
Jul. 2003
Asaka Plants (Information and Communication
JQA
Dec. 2003
Division, Electronics Division)
Toppan Electronics Fuji Co., Ltd.
JQA
Jun. 2004
Hiroshima Office (Chugoku & Shikoku Subdivision),
SAI
Oct. 2004
Fukuyama Plant (Toppan Nishinihon Insatsu Kako
GLOBAL
Co., Ltd.)
Kansai Division
JQA
Nov. 2004
Higashinihon Division
JQA
Mar. 2005
Technical Research Institute
JQA
May 2005
Sapporo Plant, Chitose Plant (Hokkaido Division)
JSA
Jun. 2005
Mie Site (Electronics Division)
JQA
Jan. 2006
Koshigaya Plant, Kawaguchi Plant, Sagamihara
SAI
Dec. 2006
Plant (Toppan Plastic Co., Ltd.)GLOBAL
Ranzan Plant, Kyushu Plant (Toppan Packaging
JQA
Feb. 2007
Service Co., Ltd.)
Sagamihara Plant (Toppan Packaging Products
SAI
Mar. 2007
Co., Ltd.)GLOBAL
Saga Plant (Toppan Nishinihon Insatsu Kako
SAI
Nov. 2007
Co., Ltd.)GLOBAL
Fukuoka Plant (Toppan Packaging Products
SAI
Oct. 2008
Co., Ltd.)GLOBAL
Sodegaura Beverage Plant (Toppan Packaging
SAI
Apr. 2009
Service Co., Ltd.)GLOBAL
Fukuoka Plant (Toppan Communication Products
SAI
Oct. 2009
Co., Ltd.)GLOBAL
Fukaya Plant [including the Satte Site]
JQA
Mar. 2010(High Performance Component Subdivision of the
Living Environment Division)n Domestic Group Companies
Operational Site (Group Company)
Toyama Plant [including the Manufacturing
Department 3 and Inspection Department](NEC Toppan Circuit Solutions, Inc.)
Total Media Development Institute Co., Ltd.
Hino Plant (Toppan Forms Co., Ltd.)
Head office and head office plant, Saitama Plant(Livretech Co., Ltd.)
Fukushima Plant, Takino Plant (Toppan TDK Label
Co., Ltd.)

Registrar
JQA

Registration
Date
Aug. 2000

JSA
JQA
JCQA

Mar. 2001
Jun. 2001
Jul. 2001

JQA

Nov. 2001

Operational Site (Group Company)

Registrar

Registration
Date
Oct. 2002

Nishigaoka Site [including the Kawaguchi transport
JQA
department] (Toppan Logistics Co., Ltd.)
Tosho Printing Co., Ltd. [including Creative Center
JQA
May 2003
Co., Ltd., Tosho Bindery Co., Ltd., and Tosho
Bookbinding Co., Ltd.]
Mito Plant (Toppan Prosprint Co., Ltd.)
JSA
Jan. 2004
Fussa Plant (Toppan Forms Co., Ltd.)JQA
Feb. 2004
R&D Center (Toppan Forms Co., Ltd.)JQAMar. 2004
Saitama Plant, Miyagi Plant, Sano Plant (Toppan
JQA
Apr. 2004
Containers Co., Ltd.)
Hamamatsu Plant, Media Plant, Shizuoka Plant,
JQA
Aug. 2004
Nagoya Plant (Toppan Forms Tokai Co., Ltd.)
Kyushu Plant (Toppan Forms Nishinihon Co., Ltd.)JQA
Jan. 2005
Sagamihara Plant, Kita Plant, Nishi Plant, Nishi
JCQA Jan. 2005
Warehouse (Toppan TDK Label Co., Ltd.)
Koto Plant (Toppan Prosprint Co., Ltd.)JQAMar. 2005
Head office, Plate-making Center, Kobe Plant,
JQA
Jun. 2005
Kyoto Plant (Kansai Tosho Printing Co., Ltd.)
Hino Plant (Toppan Media Printec Tokyo Co., Ltd.)
JSA
Nov. 2005
Kawamoto Plant (Toppan Forms Co., Ltd.)JQA
Aug. 2006
Esaka Center, Osaka Plant, Settsu Plant, Kobe
JQA
Apr. 2007
Plant, Ibaraki Logistics Center, KCF Co., Ltd.
operational site (Toppan Forms Kansai Co., Ltd.)
Head office, Kansai branch, Atsugi site (Toppan
SAI
Mar. 2009
Techno Co., Ltd.)GLOBAL
Zama Plant (Toppan Media Printec Tokyo Co., Ltd.)JACO Sep. 2009
Toppan Forms (Sanyo) Co., Ltd. [including the
JQA
Oct. 2009
Sanin Center]n Overseas Group Companies
Group Company
Toppan Photomasks France SAS
Toppan Photomasks, Inc. (Santa Clara, RoundRock)
Siam Toppan Packaging Co., Ltd.
Toppan Printing Co., (H.K.) Ltd.
Toppan Printing Co. (America), Inc.
Toppan Chunghwa Electronics Co., Ltd.
Toppan Printing Co., (Shenzhen) Ltd.
Toppan Photomasks Germany GmbH
Toppan CFI (Taiwan) Co., Ltd.
P.T. Toppan Printing Indonesia
Toppan Photomasks Korea Ltd.
Toppan Photomasks Co., Ltd., Shanghai
Toppan Printing Co., (Shanghai) Ltd.
Toppan SMIC Electronics (Shanghai) Co., Ltd.
SNP Leefung Printers (Shanghai) Co. Ltd.
SNP Yau Yue (Shenzhen) Paper Products Co., Ltd.
Shanghai Toppan Printing Co., Ltd.
Beijing Nippo Printing Co., Ltd.
SNP Leefung Packaging & Printing (Dongguan)Co., Ltd. (Packaging Division)
SNP Leefung Printers Ltd. (Export Division—book
printing) [SNP Leefung Packaging & Printing(Dongguan) Co., Ltd. (Export Division—book
printing)]

LRQA
LRQA

Registration
Date
Oct. 2000
Nov. 2001

MASCI
DNV
DNV
SGS
SSCC
LRQA
SGS
LRQA
LRQA
LRQA
CEC
BSI
CCCI
SGS
NQA
SGS
MIC

Apr. 2002
May 2002
Dec. 2002
Oct. 2003
Dec. 2003
Oct. 2004
Nov. 2004
Nov. 2004
Feb. 2005
Feb. 2005
Feb. 2006
Feb. 2007
Apr. 2007
Nov. 2007
Jul. 2008
Sep. 2009
Jan. 2009

CNAS

Mar. 2009

Registrar

Note: The company names accord with those mentioned in the registration
certificate.

Purification of Soil and Groundwater Pollution Monitored by Voluntary Investigation
Operational Site
Nagoya Plant (Nishi Ward,
Nagoya City, Aichi)
Shiga Plant (Higashi-omi
City, Shiga)

DetailProgress in Fiscal 2009
Soil pollution by hexavalent chromium (Detected by a voluntary Remediation work is completed; groundwater is being
investigation during disposal into underground pits)
continuously monitored
Soil pollution by hexavalent chromium (Detected by a voluntary Remediation work is completed; groundwater is being
investigation of areas where substances of concern were
continuously monitored
formerly used)
Asaka Plant (Niiza City,
Groundwater pollution by VOCs (Detected by a voluntary
Groundwater is being continuously monitored
Saitama)investigation of well water on the plant premises)
Toppan Electronics, Inc. (TEI) Soil pollution by heavy metals (lead, etc.) and VOCs
Remediation work is completed; VOC concentrations
Miramar Plant (San Diego
are now being monitored
County, California, USA)
Itabashi Plant (Itabashi Ward, Groundwater pollution by hexavalent chromium (Detected by a Arbitrated by the Pollution Examination Commissioner ofTokyo)
voluntary investigation of well water on the plant premises)
the Tokyo Metropolitan Government in April 200964 TOPPAN CSR REPORT 2010

Energy Type Ratio and Consumption

Promotion of Waste Reduction and Recycling (45 plants certified in July 2009)n Ratio by Energy Type for Fiscal 2009
(in terms of caloric value)n Zero-emission Sites (TZERO-09)

LPG 0.5%

Diesel oil and gasoline
0.0%

Kerosene 0.9%
A fuel oil 1.2%

Purchased
electricity
75.5%

Natural gas
21.9%

Note: The calorific value of the primary energy input associated with electricity consumption is
calculated uniformly as 0.00983 GJ/kWh.

n Electricity Consumption
(GWh)
1,500
1,326

1,376

1,305

1,260

1,000

500

0

2006

2007

2008

2009
(Fiscal year)n Natural Gas Consumption(1,000 Nm3)
100,000
90,414

93,94980,04560,00040,000

0

2006

2007

2008

2009
(Fiscal year)

n Kerosene Consumption(kL)
10,000

8,000

7,469

6,000
5,033
4,000

4,237

3,848

2008

2009
(Fiscal year)

903.0
427.2
11,650.8
4,958.8
8,146.6
290.1
3,571.5
14,660.3
9,276.7
27,425.2
42,070.8
27,806.5
20,234.8

902.6
418.8
11,641.9
4,957.5
8,127.5287.4
3,550.9
14,613.5
9,271.2
27,425.2
42,070.8
27,788.1
20,234.8

99.96%
98.03%
99.92%
99.97%
99.77%
99.07%
99.42%
99.68%
99.94%
100.00%100.00%99.93%
100.00%9,258.8
4,479.8
3,502.7
249.8
475.4
111.7
131.1
425.0
205.9
1,007.2
6,608.5
9,781.5
1,234.2
13,599.4
5,153.1
1,172.3

9,201.1
4,420.7
3,431.5
249.5
473.3
111.7
131.1
425.0
205.9
1,007.2
6,608.5
9,685.4
1,234.2
13,599.4
5,153.1
1,157.0

99.38%
98.68%
97.97%
99.88%
99.56%
100.00%100.00%100.00%100.00%100.00%100.00%99.02%
100.00%100.00%100.00%98.69%

5,480.7
2,511.9
3,605.5
5,361.2
5,797.3
202.9
5,537.2
4,139.2
4,578.3
2,652.9
3,927.4
1,953.7
45.4
74.4

5,462.5
2,482.3
3,575.5
5,358.3
5,797.3
202.6
5,520.2
4,065.2
4,501.0
2,652.9
3,924.3
1,949.9
44.8
74.4

99.67%
98.82%
99.17%
99.95%
100.00%99.87%
99.69%
98.21%
98.31%
100.00%99.92%
99.80%
98.68%
100.00%Notes: • Two criteria were set for certifying operational sites as zero-emission sites in July 2009. 1) For
first-time certification, a site is required to have attained a recycling rate of 98% or over in fiscal
2008. 2) For ongoing certification, a site is required to have attained an average recycling rateof 98% or over during fiscal 2007–2008.
• The performance data above are the results for fiscal 2008. Though its recycling rate has been
confirmed to fall below 98%, the Miyagi Plant of Toppan Containers Co., Ltd. is certified asa zero-emission site. This site retains the designation because it underwent an assessment
for ongoing certification and maintained an average recycling rate of over 98% during fiscal
2007–2008.
• The operational site designated as the “Packaging Division (Sagamihara Plant)” up to fiscal 2008
was divided into two sites, the Sagamihara Plant of Toppan Packaging Products Co., Ltd. andthe Sagamihara Plant of Toppan Packs Co., Ltd., as a result of a spin-off of the manufacturing departments at Toppan. These two sites are still counted as a single site, however, in theregistration for zero-emission site certification.

Environmental Data

20,000Technical Research Institute
Asaka Securities Printing Plant(Toppan Communication Products Co., Ltd.)
Ranzan Plant (Toppan Communication Products Co., Ltd.)Asaka Plant (Toppan Electronics Products Co., Ltd.)
Niigata Plant (Toppan Electronics Products Co., Ltd.)Mie Plant I (Toppan Electronics Products Co., Ltd.)
Kumamoto Plant (Toppan Electronics Products Co., Ltd.)
Toppan Electronics Fuji Co., Ltd.
Toyama Plant (NEC Toppan Circuit Solutions, Inc.)
Itabashi Site (Information and Communication Division)
Asaka Site (Information and Communication Division)
Sakado Site (Information and Communication Division)
Kawaguchi Site (Information and Communication Division)
Itabashi Plant (Toppan Seihon Co., Ltd.)
Sagamihara Plant (Toppan Packaging Products Co., Ltd.)
Sagamihara Plant (Toppan Packs Co., Ltd.)
Saitama Plant (Toppan Containers Co., Ltd.)
Sano Plant (Toppan Containers Co., Ltd.)
Miyagi Plant (Toppan Containers Co., Ltd.)
Kumagaya Site (Toppan Containers Co., Ltd.)
Koshigaya Plant (Toppan Plastic Co., Ltd.)
Sagamihara Plant (Toppan Plastic Co., Ltd.)
Wakayama Manufacturing Department (Toppan Plastic Co., Ltd.)
Ranzan Plant (Toppan Packaging Service Co., Ltd.)
Kyushu Plant (Toppan Packaging Service Co., Ltd.)
Kashiwa Plant (Toppan Decor Products Inc.)
Satte Plant (Toppan Decor Products Inc.)
Itami Plant (Toppan Packaging Products Co., Ltd.)
Toppan Harima Products Co., Ltd.
Takino Plant (Toppan Communication Products Co., Ltd.)Takino Plant (Toppan Packaging Products Co., Ltd.)Takino Securities Printing Plant (Toppan Communication
Products Co., Ltd.)
Nagoya Plant (Chubu Division)
Matsuzaka Plant (Toppan Packaging Products Co., Ltd.)
Mikkabi Plant (Toppan Chubu Insatsu Kako Co., Ltd.)
Fukuoka Plant (Toppan Packaging Products Co., Ltd.)
Fukuoka Plant (Toppan Communication Products Co., Ltd.)
Saga Plant (Toppan Nishinihon Insatsu Kako Co., Ltd.)Tamana Plant (Toppan Nishinihon Insatsu Kako Co., Ltd.)
Fukuyama Plant (Toppan Nishinihon Insatsu Kako Co., Ltd.)
Sendai Plant (Higashinihon Division)
Sapporo Plant (Hokkaido Division)
Mito Plant (Toppan Prosprint Co., Ltd.)
Koto Plant (Toppan Prosprint Co., Ltd.)
Sansei Printing Ltd.
Fukuren Co., Ltd.

Generation Recycled Recycling(tons)(tons)
Rate (%)
432.4
432.4 100.00%
3,806.2
3,742.1
98.32%

Environmental Report

85,58380,000Operational Site

2,000

0

2006

2007

TOPPAN CSR REPORT 201065

Environmental Report

Environmental Data

Pollution Prevention and Chemical Substance Management and Reductionn PRTR Results for Fiscal 2009
PRTR
No.
16
24
30
40
45
46
61
63
64
68
69
108
179
207
218
224
227
231
232
304
310
311

(Unit: kg/year)

Chemical Substance

Handle2-amino ethanol
51,289Linear alkylbenzenesulfonate and chlorides
2,183
Bisphenol A type epoxy resin (liquid)
2,550
Ethyl benzene
27,071Ethylene glycol monomethyl ether
6,480
Ethylene diamine
5,480
4,283
e-caprolactam
Xylene61,601Silver and water-soluble compounds
1,248
Chrome and trivalent chromium compounds
19,036
Hexavalent chromium compounds
18,965Inorganic cyanogens compounds
3,323
Dioxins
1,098 (mg-TEQ)
Copper salts (water-soluble, except complex salts)
1,205,306
1,3,5-tris(2, 3-epoxypropyl)-1,3,5-triazine7,198
2,4,6(1H,3H,5H)-trione
1,3,5-tri-methyl benzene
6,714
Toluene3,936,786
Nickel
97,664
Nickel compounds
33,306
Boron and its compounds
1,798
Formaldehyde
45,446Manganese and its compounds
9,583
Total
5,547,309

Release

1. Atmosphere

2. Water

0
0
0
5,378
324
0
0
6,689
0
6
0
0
90 (mg-TEQ)
284
0

0
0
0
5,378
324
0
0
6,689
0
0
0
0
90 (mg-TEQ)
0
0

0
0
0
0
0
0
0
0
0
6
0
0
0
284
0

1,012
449,255
0
14
32
32
13
463,0391,012
445,354000320458,789

0
0
0
14
32
0
13
349

3. Soil

Total Transfer

015,580
0
851
0
765
0
164
0
1,015
0
5,420
0
577
0
215
0
0
0
6,460
0
1,257
0
41
0 1,008 (mg-TEQ)
0190,289
0
2,286
0
3,901
0
0
0
0
0
3,901

5,701
367,67470
30,082
2
94
4,168
632,710Notes:• Periodcovered:April1,2009–March31,2010 • Substancesdesignated:The22substancesshownabove;thePRTRnumbersarethosedesignatedbythepreviousversionoftheActonConfirmation,
etc. of Release Amounts of Specific Chemical Substances in the Environment and Promotion of Improvements to the Management Thereof of Japan.
 • Operationalsitescovered:Sitesthathandlemorethan1.0tonofClassIdesignatedchemicalsubstancesperyear.(OrspecifiedClassIdesignated
chemical substances in excess of 0.5 tons per year.) • Thetotaltransferisthesumoftransfersintowasteandsewagesystems.

Atmospheric Emissions

Waste Generation and Recycling by Typen Ratio of Greenhouse Gas Emissions by Type(in tons of CO2 equivalent)(Unit: ratio: %Fiscal Year
2006
2007
2008
2009

CO2
99.93
99.93
99.93
99.92

CH4
—
—
—
—

N 2O
0.07
0.07
0.07
0.08

n Ratio of Greenhouse Gas Emissions by Source(in tons of CO2 equivalent)(Unit: ratio: %Fiscal Year
2006
2007
2008
2009

Electricity
Use
64
65
66
66

Fuel Use
31
32
31
30

Waste
Incineration
44
4
4n Fiscal 2009 Results
total: t-CO2)
Total
785,562805,109751,901
715,729

total: t-CO2)
Total
785,562805,109751,901
715,729

Note: Calculated by the method specified in the Guidelines for Calculating
Greenhouse Gas Emissions from Businesses (2003) from the Ministryof the Environment of Japan.

Cartocann ECO-GREEN Purchasing
Fiscal Year
Case

2006
2,413

2007
2,675

2008
2,753

2009
2,634

Note: ECO-GREEN is a toilet paper composed of about 50% used Cartocan paper.

66 TOPPAN CSR REPORT 2010

Type of
Generation
Recycling
Ratio
Primary Reusage
Waste(tons)
Rate
Waste paper
210,928
74.9%
99.6%
Recycled paper
Waste plastic
24,9148.8%
98.4% RPF, plastic materials
Waste acid
12,385
4.4%
98.8%
Neutralizer
Waste alkali
7,746
2.8%
97.7%
Neutralizer
Waste oil
7,633
2.7%
97.6%
Recycled oil, fuelSludge7,521
2.7%
95.4% Roadbed materials
Metal chip
5,057
1.8%
99.6%
Metal materials
Wooden chip
1,908
0.7%
99.5% Chip, paper materials
Cinder
1,812
0.6%
76.1% Roadbed materials
Glass chip
736
0.3%
97.4%
Glass materials
Flora or fauna
133
0.0%
99.5%
Feed
residuum
Other
764
0.3%
82.9%
—
Total
281,537 100.0%
99.0%—

Environmentally Friendly Products
n List of Environmentally Friendly Products (as of the end of March 2010)
Business
Field

Product

Environmental Point

Ecothrough card
Paper IC Card
Bulky Waste Processing
Sticker
Card for ETC
Rewritable Paper
Ultra-thin DM
Green Bankbook
Eco Pack (life-size POP
display)
Paper Desk Calendar
Ecology Calendar
Eco POP

Product

Environmental Point

Biodegradable Package
Cylindrical Paper Cartridges

Biodegradability
Resource-saving (reduced
use of energy in logistics)
Suitability for disposal
Resource-saving
Resource-saving
Resource-saving
Easy separation anddisassembly
Resource-saving
Resource-saving
Use of safe materials
Recyclability
Resource-saving
Easy separation anddisassembly
Easy separation anddisassembly
Resource-saving
Reduced release ofchemical substances
Biodegradability
Resource-saving
Recyclability
Resource-saving(reduced energy expended
in manufacturing)
Recyclability
Suitability for disposal
Easy separation anddisassembly
Resource-saving

Coated Barrier Film
GL-C Bottle
GX film
Jar Plus
Tray AllGL Film Lined Paper Cup
Double-Wall Barrier Cup
Oil-Proof Paper
Functional Coated Paper
In-Mold Barrier Cup
Tamper-Evident Recyclen
Cap
Easy peel-off thermo-cap
for PET bottles
Ecoband
Water-based Cold Seal
Biodegradable Plant Pot
Barrier Cup (NSP Process)
Plastic Clip
Notchless Easy-cut
Container (AL type)Packaging

Recycled PET Clear Case
ALUGLAS
Stripping and heat-sensitive
label for glass bottles
Food container made fromheat-resistant paper
Paper carton with tamper
evident closure
One-piece occlusionpreventive plug for TL-PAKs
Sealed paper tray
Flexible packaging materialusing paper
Clear UV-Blocking Film
Injection-molded articles ofbiomass-plastics
EL-CaseOil-proof paper for fluorinefree cardboard
Paper cup made from pulp
from forest-thinningGL-compliant back sheet forsolar cells
Paper composite container

Cylindrical paper-complex
container
High Resistance Flexible
Pouch
Folding Pouch (for refilling)

Resource-saving
Resource-saving
Resource-saving
Suitability for disposal
Resource-saving
Easy separation anddisassembly
Use of safe materials
Resource-saving
Suitability for disposal,
long product life
Resource-saving,recyclability
Resource-saving,recyclability
Resource-saving,recyclability
Reduced release ofchemical substances, use ofsafe materials
Easy separation anddisassembly, resourcesaving
Resource-saving

Environmental Data

Pouch-type fragrance
container
Resource-saving Cartocan(rectangular type)Packaging materials
using low-migration typeadhesives
Delayed-tack label for glass
bottles (film type)

Resource-saving

Environmental Report

Suitability for disposal
Use of recycled materials
Resource-saving (reduced
use of materials)
Securities
and Cards
Suitability for disposal
Long product life
Resource-saving
Recyclability
Resource-saving (reduced
use of materials)
Use of recycled materials
Use of recycled materials
Use of recycled materials,
suitability for disposal,energy-saving
Suitability for disposal
Commercial Cerap
Eco Pack Stand
Resource-saving
Printing
Eco Pack Multipanel
Reusability
Eco Floor Sticker
Suitability for disposal
Eco Pack End Panel
Resource-saving
Eco Pack Stand, Round-type Resource-saving
EPOP
Use of safe materials
Eco Pack Multipanel Mini
Reusability
Multicube POP
Reusability
Recycled vegetable-Oil Ink
Use of recycled materials
Polyurethane Reactive
Easy separation and easy
disassembly
Publications Hot-Melt
Printing
Non-Vinyl Chloride
Suitability for disposal
Lenticular Lens
Disk Tottokun Series
Recyclability
Halogen-free printed wiring Suitability for disposal
board
Anti-reflection film
Use of safe materials
Color filter (resin blackUse of safe materials
Electronics
matrix [BM])Palladium-plated leadframe Use of safe materials
Lead-free solder coated
Use of safe materials
printed wiring board
GL Family
Suitability for disposal
Standing pouch for refill
Resource-saving (reduced
use of materials)
Bottled Pouch
Resource-saving (reduced
use of materials)
Plastic Container Made from Use of recycled materials
Recycled Materials
Ecogloss (environmentallyResource-saving (reduced
friendly gloss finishing)use of exhaustible materials),use of recycled materials
Recording Media Packaging Resource-saving (reduced
use of exhaustible materials)
TT Paper Can
Easy separation anddisassembly
NeovertUse of recycled materials
Ecotainer
Resource-saving (reduced
use of exhaustible
resources)
TL-PAK
Resource-saving (reduced
use of exhaustible
resources)
Packaging EP-PAK (EP-GL)
Resource-saving (reduced
energy usage in logistics)
EP-PAK (Al)Resource-saving (reduced
energy usage in logistics)
Stand-up Laminated Tube
Resource-saving (reduced
use of materials)
Recyclen Cap
Easy separation anddisassembly
AP Cartons
Resource-saving (reduced
use of energy in logistics)
Micro-FluteResource-saving (reduced
use of energy in logistics)
TP-Tray
Recyclability
Corrugated Absorber
Recyclability
AD-CaseResource-saving (reduced
use of materials)
CartocanRecyclability
Paper Cup Made from
Use of recycled materials
Recycled Paper
Cup made from Tree-Free
Resource-saving (use ofpaper
byproducts)

Business
Field

Resource-saving

In-mold Decorated
Components
Aluminum-free Dead-fold
Lid Material
Solar cell back sheet
Special Shaped Pouch with
Embossing and Lasercutting
Heat-insulating Paper with
Foamed Layer

Easy separation anddisassembly
Reduced release ofchemical substances
Suitability for disposal
Energy-saving
Easy separation anddisassembly
Reduced energy
consumption in production

TOPPAN CSR REPORT 201067

Third-party Opinion
Companies nowadays are focusing on
online disclosure of their CSR reports.
When these reports are issued in print,
they tend to be shorter in length andto resemble public relations pamphlets.
All too often they fail to disclose clear
information on materiality. Online, thereports tend to enumerate informationin limited detail. More companies must­recognize the importance of activity promotion and information disclosure as
the two core focuses of CSR. Toppan
continues to devote close attention to
information disclosure via the publicationof CSR reports in printed form. I applaud
Toppan’s efforts to communicate with its
stakeholders through a well-establishedmethod for information disclosure.
In the Executive Message, the Com­pany President & Representative Director makes definite statements on strategic
targets such as the acceleration of globalized business operations. He also
accurately recognizes the social issues
to be addressed based on the Millennium Development Goals. The steps
taken to help resolve social issues form
the basis of CSR, and the potential fields
for CSR seem to expand without limit.
In addition to the improvement andreshaping of its existing activities, I
expect Toppan to be flexible in planningout future CSR strategies for the expansion of ongoing activities, developmentof new social businesses, and otherrelated initiatives.
The ISO 26000 guidance standard onsocial responsibility for entities will soon
be issued. This will not be a standard
directly linked to a certification system,
but corporations and industries will beable to freely establish certification organizations. While no trend to establish

such organizations is foreseen in Japan,
several organizations seem to have been
set up recently in China. Even without
a formal certification system, the ISO
26000 will surely become an important
standard in light of its content levels. The
companies of the Toppan Group should
consult the guidance standard as they
upgrade their CSR initiatives.
Toppan is highly motivated in environmental activities and has formulatedcomprehensive in-house bylaws encompassing diverse areas. The Special Report
on “Promoting Conservation and theSustainable Use of Biodiversity,” a very
timely article, presents the Basic Policy
regarding Toppan’s Bylaw on Biodiversityand describes the Company’s relevantbusiness operations. Toppan’s participation in the Japan Business Initiative
for Conservation and Sustainable Use of
Biodiversity will help reinforce the futureenvironmental activities of the Company,
especially those undertaken collaboratively and in partnerships. Other activities the Company promotes based on the
Bylaw on Global Warming Mitigation andvarious other in-house bylaws also raise
my expectations for the future.
The labor disputes Japanese com­panies and other expatriate companies
have been confronting in China serve
as valuable lessons in global business
operations. These Japanese compa­
nies lack diversity. Japanese expatriate
employees make up most of the key
personnel in China. The gap between
their salaries and the low salaries paid
to the Chinese employees has been
excessive. Japanese companies needto localize their operations more completely. Although I believe the overseas
sites run by Toppan are somewhat lesssusceptible to these problems thanks to
the Company’s stance towards personnel, a meaningful step for Toppan in the
coming year will be to enhance theworking environment by acquiring the
SA 8000 certification on labor conditions, a certification commonly soughtby companies running businesses in
China and other emerging countries.
The associate employee system
introduced by Toppan has significantly
reduced the numbers of part-time workers and temporary staff employed. I takethis to be a proactive approach to the
proposed regulation before its adoption.
Toppan will confront various mediumterm challenges to be addressed inassociation with the shift from fixed-term
to long-term employment. I expect theCompany to enhance its working environment by improving its treatment of
employees overall, upgrading educationand training programs beyond the scopeof on-the-job training, and expanding thecoverage of its welfare and benefit systems. In all of these efforts, the overriding goal for Toppan should be to provide“decent working conditions” (working
conditions with human rewards).
Overall, Toppan has maintained ahigh level of quality for its CSR reports.
The above suggestions, including therecommendations on global CSR initiatives into the future, are based on acomprehensive evaluation of the CSR
report for fiscal 2010.

Yoshiki Midorikawa
Director, Green Consumer Research Group
Co-chair, The Valdez Society

ProfileMr. Midorikawa worked for many years in the Kanagawa prefectural government in Japan, mainly
in labor and consumer administration. After retiring from the prefectural service, he served as
Executive Officer of the Kanagawa Prefecture
Small and Medium Business Management Association. Mr. Midorikawa’s NGO/NPO achievements include the founding of the Green Consumer Research Group in 1991 and participationin The Valdez Society, a body that researches
and proposes concepts and solutions related tocorporate environmental responsibilities throughcollaboration between citizens and companies(Mr. Midorikawa joined in 1991). He has authored
several books in Japanese, including CSR Practice Methods with Visible Effects (co-authored),
CSR Management (co-authored), and the Green
Consumer Shopping Guide (co-authored).

68 TOPPAN CSR REPORT 2010

Independent Assurance
The conclusions of our assurance engagement are stated in
our Independent Assurance Report. The following summarizes
improvements from the previous year and recommendations
for further improvements, as identified in the course of our
assurance procedures.
The Law Concerning the Rational Use of Energy and the
Law Concerning the Promotion of the Measures to Cope with
Global Warming of Japan were revised to expand the boundaries for energy consumption and greenhouse gas emissions
to be reported by company rather than by operational site. In
response, Toppan reviewed its reporting boundaries to confirm
whether any of the operational sites or subsidiaries subject tocoverage were excluded or overlapped. The review identified
that several operational sites and non-production businessactivities were excluded from the boundaries. While theseexclusions had no significant impacts on the overall environmental performance indicators, the Company took various
steps to appropriately manage this issue, mainly by including
the data on these sites and activities in its environmental performance indicators from the last fiscal year. As Toppan
streamlines its operational sites and reforms the organizational
structure of the Group, it must continuously monitor its reporting boundaries in order to ensure that no operational sites will
overlap or be excluded from the reporting boundaries. And
when an operational site or business activity formerly excluded
from the boundaries is to be included in coming fiscal years,
the Company should carefully handle the retrospective adjustment of the data up until the base year on performance indicators for which the Company has set current-year targets
against base-year data.
The boundaries of the “Environmental INPUT/OUTPUT Data
by Business Field” on page 63 basically encompass major
manufacturing sites around the world. On the other hand, theboundaries of data presented in the environmental report pages,
including the “Environmental Targets and Results for Fiscal 2009”
on pages 46–48, cover only Toppan Printing Co., Ltd. and its
major domestic manufacturing subsidiaries, as a rule. We could
not see any clear-cut steps taken to solve this issue from theprevious fiscal year. Readers may find the data difficult to grasp
if indicators based on several different boundaries are presented
in the same report. We expect Toppan to consider an expansion of the boundaries of its environmental report in the future.
This would improve the consistency between the environmental
performance indicators and financial performance indicators.
Personnel indicators are also generally intended for Toppan
Printing Co., Ltd. alone. The reporting boundaries of personnel
data are still a challenge for the Company to address. Toppan
is targeting a 30% overseas sales ratio and faster expansions
in global business operations through corporate acquisitions
and other means. As the Company’s presence overseas grows,
more international stakeholders, including the employees ofoverseas subsidiaries, will be using Toppan’s CSR reports. The
Company has been responding to globalization throughadvanced approaches in CSR
reporting. From fiscal 2008, forexample, it started preparing CSR
reports in conformity with GRI
Sustainability Reporting Guidelines 2006, a major global standard for CSR reporting. We expect
Toppan to examine expansions in
the boundaries of personnel data,
as well.

Ryota AndoKPMG AZSA Sustainability Co., Ltd.
(KPMG AZSA & Co. group)

Level of Compliance with GRI Sustainability Reporting Guidelines 2006
tions will identify their current levels of
improvement, and helps readers easily
understand the degree to which a reportcomplies with the guidelines.
This report is rated B+ among thelevels defined in the G3 Guidelines.

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

B

B+

A

A+

Same as requirementfor Level B

Report on all criteria
listed for Level C plus:
1.2
3.9, 3.13
4.5-4.13, 4.16-4.17
Management
Approach Disclosuresfor each Indicator
Category

Management
Approach disclosed
for each Indicator
Category

Report Externally Assured

Not Required

C+

Report Externally Assured

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

Report Externally Assured

G3 Performance
Indicators & Sector
Supplement
Performance Indicators

OUTPUT

G3 Management
Approach
Disclosures

OUTPUT

G3 Profile
Disclosures

OUTPUT

Report Application Level

Standard Disclosures

Global Reporting Initiative (GRI) is a
nonprofit organization established to formulate international guidelines for sustainability reporting. Entities of every typecan use these guidelines in their work tocreate their own sustainability reports.
GRI prepares Sustainability Reporting
Guidelines in collaboration with various
stakeholders. The first edition of theguidelines was issued in 2000; the third(G3 Guidelines), in 2006.
Toppan understands that intensive
stakeholder engagement was required to
produce the guidelines. For this reason,
the Company treats the guidelines as animportant reference for understanding thetypes of information readers want toknow.
The G3 Guidelines require reportingorganizations to declare the extents towhich they have applied the guidelines.
This ensures that the reporting organiza-

Report on each coreG3 and Sector
Supplement*
indicator with due
regard to themateriality Principle
by either: a) reportingon the indicator or b)
explaining the reason
for its omission.
*Sector supplement in final version

Report on a minimum of
20 Performance
Indicators, at least one
from each of: economic,
environment, humanrights, labor, society,product responsibility.

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

TOPPAN CSR REPORT 201069

70 TOPPAN CSR REPORT 2010

Company Reaction to the Third-party Opinion andIndependent Assurance
As in earlier years, Toppan received athird-party opinion on this CSR Report2010 from Mr. Yoshiki Midorikawa (director of the Green Consumer ResearchGroup and co-chair of The Valdez
Society) and independent assurance
from KPMG AZSA Sustainability Co.,
Ltd. The Company would like to thankboth Mr. Midorikawa and KPMG AZSA
for the concrete and stimulating opinions
they have offered over their many years
of involvement in the publication of thereports.
KPMG AZSA Sustainability Co., Ltd.
pointed out the need to expand thereporting boundaries. Toppan has been
establishing new companies and operational sites and advancing organizational
reforms throughout the Group based on
its four management challenges: driving on with reforms of the operational
structure, bolstering management as agroup, accelerating globalized business
operations, and creating new businesses. Now, in a parallel effort, Toppan

is considering how to expand its reporting boundaries, as recommended.
Mr. Midorikawa offered suggestions
on the associate employee system
Toppan introduced in fiscal 2010 andthe globalization of CSR initiatives withreference to global standards such as
ISO 26000 and SA 8000.
As a dedicated proponent of respect
for people, Toppan has positioned“respecting and leveraging humanassets” as one of its CSR material topics. In the associate employee system,
highly motivated, capable part-timeworkers, temporary staff, and other nonregular employees whom the Company
expects to become active contributors
for years to come are offered positions
as associate employees with no contractual periods set. This system further
evinces the Company’s commitment tofulfilling its corporate social responsibilities for employment stability and professional development. Toppan will verify
and review the operating situation of the

new system to realize a working environment where all employees work withsatisfaction.
Another essential step for Toppan, in
fulfilling its social responsibilities towards
the realization of sustainable development for both society and the Company,
is to crosscheck its thoughts with thevoices from stakeholders.
Stakeholder dialogues and the disclosure of CSR-related information arevital parts of corporate communication
on CSR. The most effective approaches
for both have been evolving and diversifying year by year due to the widespreaduse of the Internet. In fiscal 2010,
Toppan will continue to review ways toshape a reader-friendly CSR report in
careful consideration of coming trends
like these, the suggestions from Mr.
Midorikawa and KPMG AZSA, and theopinions of the stakeholders who readthe CSR report.

Questionnaire enclosed here: Please let us know your opinions
We welcome feedback from readers. Stakeholder opinions are used to enhance the understandability and relevancy
of our corporate social responsibility (CSR) initiatives and information disclosure for both stakeholders and the people
inside Toppan. Please take a few minutes to answer the questionnaire enclosed here.

TOPPAN CSR REPORT 201071

Group Business Structure

Customers
Toppan Group Structure
Manufacturing Companies

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

Manufacturing Companies
Living Environment 24%

Toppan Packaging Products
Co., Ltd.
Toppan Plastic Co., Ltd.
Toppan Packs Co., Ltd.
12 other companies
Toppan Yau Yue Paper Products
Ltd. (PRC)
2 other companies

Manufacturing and Sales
Companies

Sales Companies

Toppan Forms Co., Ltd.

Total Media Development InstituteCo., Ltd.

Tosho Printing Co., Ltd.
4 other companies

Electronics 17%

Toppan Seimitsu Kako Co., Ltd.
6 other companies

Toppan Multisoft Ltd.
Tokyo Shoseki Co., Ltd.
24 other companies

Toppan Printing Co., (H.K.) Ltd. (PRC)
Toppan Printing Co., (Shenzhen)Ltd. (PRC)
Toppan Printing Co., (Shanghai)Ltd. (PRC)
10 other companies*Toppan Leefung Changcheng
Printing (Beijing) Co., Ltd. (PRC)
2 other companies

Manufacturing and Sales
Companies
Toppan TDK Label Co., Ltd.
Toppan Containers Co., Ltd.
Tamapoly Co., Ltd.
Toppan Prosprint Co., Ltd.
1 other company*Toyo Ink Mfg. Co., Ltd.
3 other companies

Toppan Interamerica Inc. (USA)
7 other companies

Toppan Electronics Products
Co., Ltd.

Toppan Travel Service Corp.

Toppan Printing Co. (America), Inc.
(USA)

P.T. Toppan Printing Indonesia(Indonesia)

Manufacturing Companies

froebel-kan co., ltd.

Manufacturing and Sales
Companies
NEC Toppan Circuit Solutions, Inc.

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

Information & Networks 59%

Toppan Communication Products
Co., Ltd.

*Toppan M&I Co., Ltd.
6 other companies
Toppan Leefung Pte. Ltd.
(Singapore)Toppan Printing Co. (Australia)
Pty. Ltd. (Australia)
28 other companies

Sales Companies
Toppan Cosmo, Inc.
4 other companies

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

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

Products
Materials
Service

Notes:• No symbol: subsidiary—177 companies *: affiliates—25 companies (as of the end of March 2010)• Toppan Group’s business activities are usually divided into five fields. Here, however, they are divided into three fields based on the current sizes of thebusinesses and other factors.
• The composition ratios given under each business field are percentages of overall sales contributed. (“Net Sales by Business Field” are shown on P. 5.)• Among Toppan’s subsidiaries, Toppan Forms Co., Ltd. and Tosho Printing Co., Ltd. are listed on the first section of the Tokyo Stock Exchange.
• SNP Corporation Pte. Ltd. was renamed Toppan Leefung Pte. Ltd. on October 1, 2009.
• Toppan operational sites span across 21 countries and regions, including Japan.

72 TOPPAN CSR REPORT 2010

CSR REPORT 2010

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