e t

o

th

10

English edition

2 017

Osaki Forest Bldg., 2-18-1 Higashi-Gotanda, Shinagawa-ku, Tokyo
141-8640, Japan
Tel: +81-3-4514-2026 Fax: +81-3-3280-8125

http://www.toyo-seikan.co.jp/e/Published : January 2018

Fu

t

.

Sustainability Report

Environmental Management Department,
Procurement, Environment & Quality Assurance Division
Toyo Seikan Co., Ltd.

e

re

0

ion, Challeng

u

Y

ea

'
rs

n
Co

but
tri

100
100 Years’ Contribution,
Challenge to the Future.

CONTENTS
03

Editorial Policy

Reporting Content

Scope of the Report

We have decided the matters to be

Activities of Toyo Seikan Co., Ltd. and Toyo Seikan Business Group companies, plus
some activities of the Toyo Seikan Group.

Guidelines 2012, taking into account the

Publication

feedback through, for example, questionnaire

October 2017 (English edition: January 2018)

Publication Guidelines“Environmental Reporting Guidelines 2012” (Ministry of the Environment, Governmentof Japan)Toyo Seikan Sustainability Report

A Century of Changes and Challenges

13

Toyo Seikan Green Challenge 2050
Feature2

Message from the President

07

Overview of Toyo Seikan

15

Relations with the Environment

09

Realizing Toyo Seikan Group Vision27

Relations with Society

10

Promoting Environmental Management

34

Third Party Opinion

Gas Barrier Packaging in Our Lives

Explanatory Notes for the Report
Sustainability Report(printed edition)

Sustainability Report(PDF file for download)

Organization names used throughout this report
are defined below.
Toyo Seikan GroupToyo Seikan Group Holdings, Ltd. and its subsidiaries
and associates

large amount of internal and external

Toyo Seikan Business Groupsurvey on our past reports. The reportToyo Seikan Co., Ltd. and its Group companies

primarily summarizes non-financial(social and environmental) information of
Toyo Seikan.

1105

items listed in the Environmental Reporting

Period Covered

April 1, 2016, to March 31, 2017 (also contains some information up to July 2017)01

included in this report mainly from the

Feature1

Toyo Seikan
http://www.toyo-seikan.co.jp/e/eco/report/report.html

Toyo Seikan Co., Ltd. (non-consolidated basis)Toyo Seikan Sustainability Report02Fe a t u re 1

T o yo S eik a n C e nt enary

A Century of Changes

and Challenges

Toyo Seikan has been supplying safe and reliable packages ever since its founding in 1917,
under the corporate philosophy of “contributing to the happinessand prosperity of mankind through packaging technology.”
One hundred years of expertise in the manufacture of packaging containers lives on as Toyo Seikan,Great
Hanshin-Awaji (Kobe)
Earthquake

constantly changing and attempting fresh challenges,
helps to enrich society through the creation of packages that are ever evolving.

Japan-China
Treaty of Peace andFriendship signed

Looking ahead, we will continue our endeavors to support the creation of a sustainable society
while meeting the expectations of customers and society.

Japa n / Wor ld
League of
Nations
established

ʼ19
1917

ʼ20

February 26
failed coupd’étatPacificWar
begins

ʼ36

ʼ41

Tokyo
TV
Tower
broadcasts opens
begin

ʼ58
ʼ53

Tomei
Tokyo
Olympic Expressway
Games completed
held

64
ʼ62 ʼ

ʼ69

ʼ

Can manufacturing
began with an inverted
bodymaker introduced
from the United States.

Founder:Tatsunosuke Takasaki

During a visit to the UnitedStates to acquire
advanced-nation canningtechnology, Tatsunosuke
Takasaki recognized theimportance of separating"can making" and "canning".
On his return to Japan, heestablished Toyo Seikan as
a mutual can making plant
for all can users.

Toyo S e ik a n
03

Toyo Seikan Sustainability Report

ʼ87

91

ʼ90 ʼ

ʼ95

09
08 ʻ

5 ʻ

ʻ0
1 ʻ02

200

ʻ11

14
12 ʼ

ʻ

Beginsmanufacturing
stay-on tab(SOT) ends

Beginsmanufacturing
MULTI-BLOCK
bottles
MULTI-BLOCK is amulti-layer bottle with an
oxygen-scavenging layer
sandwiched between
layers of a resin withsuperior oxygen barrier
properties.

Beginsmanufacturing
OXYDECOXYDEC is a transparent
multi-layer film consistingof layers of film laminatedwith an adhesive withoxygen-absorbing
properties.
See page 14

See page 13

Manufacturing beganwith a Mills rotary
blow molding machine
introduced from theContinental Can
Company (US)Beginsmanufacturing
DWI cans

Toyo Seikan led the worldin developing andcommercializing a retort
pouch. Just like canning,it allowed pressurized
thermal sterilization (retort
sterilization), enabling
distribution and storage atroom temperature.

ʼ16

ʼ74

Aluminum ends with atab that does not come
off when opened were
manufactured to stoppull tab littering.

Begins manufacturing retort pouches

Toyo Seikan Co., Ltd. founded

73
70 ʼ

ʼ82

Beginsmanufacturing
plastic bottles(for detergent)

Begins manufacturingcans with automatic
can making machine

The plant in the early years

ʼ78

Oil crisis

Japanese
National Railways
privatized

LehmanBrothers
collapse

FIFA
World Cup
Korea/Japan
held

G7 Ise-Shima
Summit held

Tokyo
Great
Skytree
East Japan opens
Earthquake

Toyo Seikan concluded
a technical license
agreement with US
firm Standun toacquire technology
for two-piece canmaking equipment andbegins manufacturing
drawn and wall-ironed(DWI) cans.

Begins manufacturing Toyo Seam cansTin-free steel (TFS) was developed
as a can material alternative to tin
plate. As conventional soldering andwelding technologies could not be
used to make TFS cans, Toyo Seikan
developed a unique method involving
thermo-compression bonding using
nylon film as an adhesive. This
resulted in the Toyo Seam can.
*The cans on either end are conventional soldered cans.

Beginsmanufacturing
PET bottles(for soy sauce)
Polyethylene
terephthalate(PET), then used
to make clothing,
was adopted asa material forbottles.

Beginsmanufacturing
TULC
TULC, the Toyo Ultimate Can, achieveda major reduction in environmental
impact through a fundamental overhaulof materials and production processes.
Because it was made of steel (TFS) with
polyester film thermally laminated toinner and outer surfaces, those surfaces
required no coating and therefore
eliminated associated curing processes,
dramatically reducing CO 2 emissions.
The polyester film also played a lubricatingrole, removing the need for washingafter forming. This virtually eliminatedsolid waste generated during treatmentof water used for washing.

Begins manufacturing
PET bottles for beverages
Following revisions to the Food Sanitation
Act permitting the use of various plastic
containers for soft drinks, PET bottles wereadopted for the beverage sector.

Beginsmanufacturing
aTULC
Toyo Seikan began
manufacturing apolyester-laminatedaluminum two-piececan based on the TULC
concept with its low
environmental impact.

NS System starts up

A new filling system, the NS System (NS:non-sterilant), started up, realizing both
aseptic filling of beverages at room
temperature and no sterilant use forwashing the inside of PET bottles.

Begins manufacturing
Diamond-Cut Cans

Diamond-Cut Cans adopted the shape of “Miurafold”, a technique born from space engineeringresearch, for their side wall to increase thepaneling strength (resistance to denting). This
resulted in an approx. 30% lighter and moreresource-efficient can than existing three-piececans without sacrificing can strength.

Toyo Seikan Sustainability Report04

Message from the President

100 Years’ Contribution andChallenge to the Futurecommence in 2020. Despite the US’s withdrawal from

impacts from Toyo Seikan’s business activities—global

us. During the year, a wide range of social issues, notabout the effective reduction of CO 2 emissions, global

fulfillment of our mission as a packaging manufacturer

slowdowns in China and other emerging economies, theagainst global warming as a business opportunity.

Looking back on FY2016, it was very much a turbulent

year with various changes in the environment surrounding
limited to economic ones, were highlighted, including

United Kingdom’s decision to leave the European Union,
policy shifts in the United States under a new president,
and political instability particularly in the Middle East

companies in Europe and the US are viewing the fightRegardless of the policies the US Government chooses totake, they see a close link between their own corporate

activities and CO 2 reductions and are making an appeal

that resulted in rising number of refugees.

to their stakeholders.

the centennial anniversary of the founding. Ever since

Development Goals (SDGs). There are 17 goals and ain 1917, the company has upheld a fundamental philosophy

Toyo Seikan needs to address. Take Goal 12, for example:

FY2017 is a milestone year for Toyo Seikan to celebrate

the founder, Tatsunosuke Takasaki, founded Toyo Seikanof perpetually contributing to society in keeping with theFounding Spirit. With our repeated reformations andchallenges under this philosophy, we have continuously

evolved our packages in line with the times and delivered
them to the market. To keep growing as an enterpriseby constantly sending out innovative technologies andAiding those efforts are a set of UN-driven Sustainable

number of them are closely tied to social issues that

“Ensure sustainable consumption and production patterns.”
Possible measures to accomplish this goal will include

achieving sustainable management and efficient utilizationof natural resources, as well as minimizing food losses
in production and supply chain.

These goals and measures have reminded us that

products for the next 100 years, we declared in the Toyo

there are issues we ought to address at each stage—

Management Plan that we would “transform successfully

relation to packaging containers for food and beverage,

Seikan Business Group’s vision for the 4th Mid-Terminto a ‘resilient company’ that is competitive and able togenerate profit sustainably, and take the first steps into
the next 100 years.” While we are surrounded byincreasingly difficult business environment, we intend to
persistently follow a growth path with sights set on
stepping up to the next stage.

Social issues that Toyo Seikan
must address looking ahead to the future
Drawn up in December 2015, the Paris Agreement on

initiatives for combating global warming came into effectin 2016, and global efforts to mitigate climate change will05

the Paris Agreement that have raised significant concerns

Toyo Seikan Sustainability Report

production, consumption and post-consumption —in

which are core products of Toyo Seikan. Moreover, as

warming, exhaustible resources and water. Alongside
to ensure the safe delivery of contents to consumers,
Toyo Seikan has long been undertaking initiatives tolessen our environmental impact, such as throughimplementation of the 3Rs (reduce, reuse andrecycle) of packaging.

To further broaden our perspective toward

such initiatives, Green Challenge 2050 will

present the connection between our day-to-day
operations and their environmental impact inan easy-to-understand manner, so that not

only each employee but also each stakeholder
can see the results of those initiatives. For

the very reason that the issue is closely tied
to our actual business, a 50% reduction in
the environmental impact is indeed achallenge, a huge goal. This activity is not

only a significant management strategy, butalso a growth strategy enabling Toyo Seikan
to evolve globally.

By developing and providing products

an upshot of resolving such social issues, we believeand services of a high value that only we can(Goal 6) and the conservation and effective use of

toward the realization of a sustainable society

we can also contribute to ensuring access to safe water
marine and forest resources (Goals 14 and 15).

Environmental management
centered on the Green Challenge 2050
In 2016, the Toyo Seikan Business Group formulated

Green Challenge 2050, an environmental vision prescribinga specific goal of halving the impact on the three key

environmental dimensions that are subject to significant

deliver, Toyo Seikan is intent on pushing

while contributing to social advancement andthe happiness of humankind.

We look forward to your continued support

and guidance.

Ichio Otsuka

President and Representative Director
Toyo Seikan Co., Ltd.

Toyo Seikan Sustainability Report06

O v e rv ie w o f T o y o S e i kan
Toyo Seikan Co., Ltd.
E s t a b lis hed

June 25, 2012 (Founded : 1917)

P r e sident
Ichio Otsuka
C a p ital

1,000 million yen

H e a d Office

Osaki Forest Bldg., 2-18-1
Higashi-Gotanda, Shinagawa-ku,
Tokyo 141-8640, JapanB u s inesses- Design, development, manufacturing and sales of
packaging containers made of metals, plastics andtheir composite materials- Sales and technical service of food machinery andpackaging systems

P l a n t s / offic es

Head Office, Technical Headquarters, Chitose Plant,
Sendai Plant, Ishioka Plant, Kuki Plant, Saitama Plant,
Kawasaki Plant, Yokohama Plant, Shizuoka Plant,
Toyohashi Plant, Shiga Plant, Ibaraki Plant, Osaka Plant,
Hiroshima Plant, Kiyama Plant

Toyo Seikan Business Group(23 Group Companies of Toyo Seikan)

Packaging Business

400

300

Toyo Seikan Co., Ltd.

Toyo Seikan in Numbers

Net Sal es(billion yen)

297.5 296.8

273.7

200

Honshu Seikan Co., Ltd.
Ryukyu Seikan Kaisha, Ltd.

100

Nippon National Seikan Co., Ltd.

years in businessToyo Seihan Co., Ltd.
Fukuoka Packing Co., Ltd.

0

2014

PET Refine Technology Co., Ltd.

2015

2016

(FY)

Japan Bottled Water Co., Ltd.
TM Pack Co., Ltd.
Bangkok Can Manufacturing Co., Ltd. (Thailand)
Toyo Seikan (Thailand) Co., Ltd.

Others(filled beverages,
various materials, etc.)

15

Global Eco-can Stock (Thailand) Co., Ltd.
Toyo Seikan Guangzhou Co., Ltd. (China)

10

Toyo Pack (Changshu) Co., Ltd. (China)
Asia Packaging Industries (Vietnam) Co., Ltd.
Asia Packaging Industries (Vietnam) Trading Co., Ltd.
Yangon Can Manufacturing Co., Ltd. (Myanmar)

9.5

11.9

Metal
products

20%

5

40%

40%

0
2014

2015

2016

(FY)

1967

tons

3,199 52

Machinery & Equipment BusinessToyo Seikan Group Engineering Co., Ltd.
Kanagata (Thailand) Co., Ltd.

employees

3.8

5

-9.6
2014

Logistics Business

2015

2016

(FY)

(as of April 1, 2017)(Employees)

Toyo Mebius Logistics (Thailand) Co., Ltd.

overseas(on a non-consolidated basis)-41,000
tons year-on-year

Domestic

644,000 tons
Overseas

121,000 tons

We have successfully reduced CO 2 emissions by 41,000 tons year-on year
as a result of upgrading to energy-saving equipment and improving
production efficiency at domestic and overseas plants/offices.

Empl oyees

Toyo Mebius Co., Ltd.

assigned

CO 2 emissions from manufacturing operations

-2.3

-10

employees

All 3,199 employees with different personalities pursue locally-oriented businesses.

0

-5

2017

632,000
including

10

1992

Production volume in FY2016 was 632,000 tons withmetal and plastic products accounting for 80%.

Plastic products

2.3

1942

Production volume

P r oduction V olum e(by weight)

20

Next Can Innovation Co., Ltd. (Thailand)100

In 2017, Toyo Seikan celebrated the centenary of its founding. The Company was founded in
1917 as the Japan’s first manufacturer specializing in packaging products. The company has
been providing safe and reliable packaging over the last 100 years.

(billion yen)(billion yen)

5,000
4,000

3,916

3,000

sites

1,000
0
(As of April 1, 2017)57

ISO 14001-certified plants / offices

3,386 3,199

2,000

Toyo Seikan Sustainability Report

1917

O rdi nary I ncome

T&T Enertechno Co., Ltd.

Net I ncome or Loss

07

100

Start

2014

2015

2016

(FY)

Toyo Seikan’s Saitama Plant first acquired ISO 14001 certification in 1999. Currently a total of
57 plants/offices in Japan, including group companies, are certified, and engage in businessactivities with due consideration to the environment.
Toyo Seikan Sustainability Report08R e a liz i n g T o y o Se i kan Grou p V i si o n
In April 2013, Toyo Seikan Group shifted to a holding

Management Plan, is historic for Toyo Seikan as we

Under this new structure, the Group established “Growing

The company is committed to work together to makecompany structure to enhance group collaboration.

2022,” its mid- to long-term vision to “grow into a global

commemorate the centennial anniversary of our founding.

Pr om oting Envir onm ental M anagem ent
Toyo Seikan Group established its environmental policies in 2002, and formulated the Toyo Seikan Group

Environmental Vision in 2004 to specify environmental management activities; the latter was revised in 2016.

FY2017 worthy of representing our first step toward thenext 100 years by generating profit exceeding the plancompany with core packaging operations expanding

Toyo Seikan Group Environmental Philosophy

through the successful transformation into a “resilient

into peripheral businesses,” and has formulated andcompany” and taking full advantages of business

implemented Toyo Seikan Group 4th Mid-Term

restructuring.

Management Plan for FY2016–FY2018.

FY2017, the second year of the 4th Mid-Term

All Toyo Seikan Group companies are keenly aware that preservation and qualitative improvementof the global environment are the top priority issue common to all humanity.
We strive to contribute to the improvement of lifestyle of human beings,
while taking an environmentally-friendly stance in every aspect of our corporate activities.

Toyo Seikan Group 10-Year Vision for Growth
Toyo Seikan Group Environmental Vision

4th Mid-Term Management Plan
Basic Policy

2nd Mid-Term
Management Plan

3rd Mid-Term
Management Plan

Future Vision of
Toyo Seikan GroupStrengthen the Group’s
collective strength based on“people” and “technology”

Achieve dramatic growthof the Group under
the holding company system

Grow into a global company
with core packaging operations
expanding into peripheral businesses

Secure stable profits
from existing domestic
businesses

Strengthen profitability ofexisting domestic businesses(FY2010–FY2012)

Solidifying the foundations
for growth
Define and promote Group strategies
under the holding company system
Further restructure the existing
businesses mainly focusing on thedomestic packaging segments
Expand business areas in the value
chain focusing on packaging
containers
Enhance the soundness of assets andfinances in preparation for future
growth investment

Strategically shift growth
focus to overseas
businesses and new
businesses(FY2013–FY2015)

Strategically invest byaddressing the specifics ofoverseas markets
Promote commercializationof new businesses

Toyo Seikan Group will contribute to the realization of a sustainable society
from the three dimensions in the value chain-products, services and systems we provide,
by mobilizing our engineering technologies and making use of global technologies.

(FY2022)

Packaging business
Steel plate-related business
Functional materials-related businessLife scienceNewbusinesses

Electricity/electronics,
information and communication,and energy“Low-carbon society”
where CO 2 emissions
are significantly reduced

where blessings from nature
can be indefinitely enjoyedEnvironment
Shifted toa holding company structure

Enhance the Group’s corporate value
under the holding company structure

Toyo Seikan has established a new three-year mid-term plan for Toyo Seikan Co., Ltd. and its Group companies, toachieve Toyo Seikan Group’s 4th Mid-Term Management Plan.

Environmental Targets: Eco Action Plan 2022
Toyo Seikan has been working for the achievement of its Environmental Vision by setting new long-term targets

toward 2050 together with specific mid-term targets toward 2022 (Eco Action Plan 2022).
Long-Term and Mid-Term Targets in the Three Dimensions

Low-carbon
society

Toyo Seikan Business Group: Vision for the 4th Mid-Term Management Plan
Transform successfully into a “resilient company” that is competitive and able to generate profit sustainably,
and take the first steps into the next 100 years
Taking on challenges: New ways of buying, making and selling

Long-term
targets

Aim to halve CO 2 emissions
by FY2050

Basic Policy
Domestic businesses

We will flexibly respond to changing market structure and customer needs,
and strive for stable earnings and enhanced competitiveness.
Restructuring to consolidate facilities and realize a low-cost production system
Establishing foundations in each business for achieving sustained growth andsecuring stable revenue
Making all Group companies profitable and raising the value of the GroupToyo Seikan Sustainability Report

where limited resources
are effectively used

Packaging and containers

Toyo Seikan Business Group Mid-Term Management Plan (FY2016–FY2018)09“Resource-circulating society” “Society in harmony with nature”

Resource-circulating
society
Minimize the volume of
new resource inputs andstrive to switch to recycled
and renewable materials

Overseas businesses

We will establish Toyo Seikan Business Group’s presencein Asia and acquire new markets and customers.
Enhancing initiatives with existing customers, and actively promoting increased
sales to new customers, to meet the demand for container packaging in Asia, ina region expected to experience continuous growth into the future.

Mid-term
targets

Reduce CO 2 emissions by
14% by FY2022

Reduce material inputs
by 3%
Promote green
procurement of materials

Base year: FY2013

Society in harmony
with nature
Contribute to the realization of a society
where humans and all other living things
on the planet can co-exist harmoniously
on a sustainable basis, while considering
the product life cycles in procurement,
development, manufacturing, sales andcustomer service activities.
Minimize environmental risks
Reduce environmental pollutants
Promote purchasing of certified
products
Promote external communication
Promote biodiversity conservation

Toyo Seikan Sustainability Report10

To y o Se i k a n G r e e n C ha l l e n g e 2 0 5 0

Determination of Action Item for Reducing Environmental Impact
Toyo Seikan’s packaging products consist of raw materials such as metals, plastics, coatings and inks. To curb theeffects of climate change, we need to reduce CO 2 emissions not only from the packaging production process, but also

throughout the entire value chain. For this reason, we will advance efforts from a variety of perspectives, as listed below:(1) Increase the recycled material ratio(2) Reduce the package weight while ensuring usability and safety(3) Apply biomass-derived materials(4) Improve productivity(5) Utilize renewable energy(6) Increase the ratio of materials using low-carbon energy

These initiatives benefit not only the reduction of CO 2 emissions, but also the reduction of use of non-renewable

resources and the production using sustainable resources.

We regard reduction in water-related risks as another important social issue, as the risks are increasing for water

resources that are essential to our daily lives with notable signs of climate change and industrial development.

Toyo Seikan aims to realize a sustainable society by reducing CO 2 emissions along with reducing the use of

non-renewable resources and water through our technical innovation.

Green Challenge 2050 Three Initiatives

ReduceCO 2 emissions by

Reduce exhaustible
resource usage by

50 ％Reducewater usage by

50 ％

5 0％

Green Challenge 2050 Initiatives

TargetIn line with the Paris Agreement, the Sustainable Development Goals (SDGs) and the Toyo Seikan Group’s Eco Action

Plan 2022, Toyo Seikan formulated an environmental vision, Green Challenge 2050, in FY2016 and commenced efforts toachieve the targets. We approach this with enthusiasm as a company that can make a difference to the society and gain

2050

2030

Determination of Action Items

2050 after cross-checking international social issues and the Company’s

To be addressed as a priority issue by setting a long-term target

issues with the SDGs. We will contribute to the sustainable development

Very important

Water-relatedrisks

Pollution prevention
Chemical management

Toyo Seikan Sustainability Report

ClimatechangeEffectively using water resources

Halve CO 2 emissions

Halve non-renewable resource use*2030 : CO2 reduction by 20%*2022 : CO2 reduction by 14%

Halve the water use under a quantitativeindex reflecting the water balance*2030: Achieve more advanced resource circulation(including the value chain)(apply recycled and bio-based materials)*2030: Minimize the net water loss,
including the loss in the value chain

Pursue further advancement of resource circulation through innovation in production technology and 3R’s system
Build on eco-friendly design (attempt zero-impact packaging; switch to new, low-impact packaging)
Expand application of bioplastics
Enforce use of recycled materials and further raise
the usage ratio

Commercialize processes and products that do
not use water (or dramatically reduce the wateruse)

Expand the use of renewable energy
Improve the productivity through AI and IoT

2020

Develop packaging with a higher ratio of recycled material
Adopt renewable energy and upgrade to energy-saving equipment
Switch to fuel-efficient vehicles
Improve productivity (reduce spoilage rate) and further streamline production
planning and management
Consider increasing the ratio of materials that make use of low-carbon energy

Track water risks and develop processes toreduce water usage (package manufacturing
and filling)

Introduce eco-friendly design (package weight reduction and material selection using LCA)

Raw material
procurement
risks due toresource
EnergyInnovation
depletion
procurement

Globalization

Communication for Green Challenge 2050

3R
promotion

To communicate Green Challenge 2050, panels were displayed at all

Diversity
Human rights
Contribution
to the community

plants/offices of Toyo Seikan and Toyo Seikan Business Group, and businesscard-size portable cards were distributed to all employees. The entire workforce
Important

11

Adoption of
non-petroleum
materials

Disclosure

Important

Eight goals of SDGs that Toyo Seikan can contribute tothrough Green Challenge 2050 activities

To be addressed as an environmental activity

Public concernof the society by implementing Green Challenge 2050 action items.

Using sustainable resources

Ensure application of eco-friendly design (reduce package weight considering the value chain; switch
to new, low-impact packaging)
Expand the use of materials using low-carbon energy

Identifying Materiality (Important Issues) Common to Society and the Company
We have established the vision and targets of Green Challenge

Realizing a low-carbon society

Achieve increased efficiency in productiveenergytrust by tackling social issues through business activities.

Base year: FY2013

Importance for Toyo Seikan

Very important

will come together to advance activities toward achieving the targets.

Toyo Seikan Sustainability Report12For Wasabi and Mustard
Lamicon Tube
Lamicon Tubes are a

multi-layer tube with an

oxygen barrier resin that iscoextruded into the tube
shape. They are mainly

used for condiments likewasabi and mustard.

For Oils
SiBARD
SiBARD containers are

PET bottles having a siliconoxide (SiOx) film with highgas barrier properties

coated on the bottle internalsurface. They are used forcooking oil.

For Corned Beef
Oxyguard
Oxyguard containers
are made with aniron-based

oxygen-scavenging
material. They areused for corned beef
and cooked rice.

Feat ure 2

Ga s B a r r i er
P a c k a g in g
i n O u r L i v es

In contrast to cans and glass bottles,
plastic packaging allows gases such as oxygen and water
vapor to pass through, albeit in small amounts.
Gas barrier packaging—plastic with added gas barrier functionality—
makes it possible to minimize permeation of food-degrading oxygen.
This allows for extended shelf life, leading to reduced food waste.
Toyo Seikan has developed many types of gas barrier packaging,which we encounter frequently in our daily lives.

For
Mochi Rice Cakes
OXYDECOXYDEC is a transparent

multi-layer film consisting oflayers of film laminated with anadhesive with oxygen-absorbing
properties. As the packaging
film itself absorbs oxygen,oxygen-scavenging sachets are
not required, reducing waste. It

For Jelly and Miso

For Mayonnaise

Lamicon Cup containers are cups
or trays formed from laminated

MULTI-BLOCK is a multi-layer

sheet with a middle layer of resinbottle with an oxygen-scavenging

with oxygen barrier properties.

layer sandwiched between layers

They are used for food items suchof a resin with superior oxygen

as fruit jelly (small containers)

barrier properties. They are used

and miso (large containers).

as a container for mayonnaise.

Commendations

Voice"OXYDEC" Transparent Oxygen-Absorbing Packaging MaterialAwarded jointly to Toyo Seikan Group
Holdings, Ltd. and Toyo Seikan Co., Ltd.

Kinoshita Prize: Sponsored by the Japan Packaging lnstitute.
Awards are presented for notable achievements inpackaging-related R&D, improvements and rationalization,and creation of new domains.

13

Toyo Seikan Sustainability Reportmochi rice cakes.

Lamicon Cup

MULTI-BLOCK

40th Kinoshita Prize(R&D Category)is used for individually packaged

Japan Packaging Contest 2016
Technical Packaging Award
Awarded jointly to Sato Foods Co., Ltd.,
Toyo Seikan Group Holdings, Ltd.
and Toyo Seikan Co., Ltd.

Keizo Kanzaki

Operating Officer
Deputy Head ofTechnical Headquarters
General Manager ofFundamental
technologies
Department

Toyo Seikan and Barrier Packaging
Toyo Seikan’s involvement with barrier packaging originates from the development ofplastic packaging products such as Lamicon Bottle and Oxyguard. One drawback ofplastic containers, when compared with cans and glass bottles, is that they are permeable
to oxygen. To overcome this disadvantage and contribute to enriching people’s lives, Toyo
Seikan’s development team has developed various types of barrier packaging making useof, for example, resins with superior oxygen barrier properties and oxygen-absorbing
materials. Through technological development, we will continue to put forth innovativetechnologies and products in order to meet the expectations of customers and society.

Toyo Seikan Sustainability Report14

Management System
Integrated Management System
Toyo Seikan
for Quality, Environment and Food Safety
Toyo Seikan has introduced an environmental

management system (ISO 14001) to each plant/office on

efficiency of operations. The integrated system was certified
in 2013.

This has allowed integrated operations of items thatare common to the three systems.

The integrated management system has been deployeda gradual basis since 1999, and obtained a certification

not only at Toyo Seikan but also at Toyo Seikan Business

Moreover, Toyo Seikan built an “integrated management

and Ryukyu Seikan. This has contributed to the efficient

covering all the plants/offices in 2007.

system” that combines the environmental management

system with the quality management (ISO 9001) and foodsafety management (FSSC 22000) systems for enhanced

Group companies: Honshu Seikan, Nippon National Seikan

introduction and implementation of quality, environmental
and food safety measures from top management down
to individual departments at each plant/office.

Quality, Environment and Food Safety Policy
Integrated Management System Policy (Quality, Environment and Food Safety)
1. Basic principles
Toyo Seikan Co., Ltd. will contribute to the happiness and prosperity of mankind by delivering safe, secure andeco-friendly products, systems and services with attractive quality that can be trusted by our customers.
2. Basic policies(1) Each and every employee working for Toyo Seikan will deliver safe, secure and eco-friendly products, systems andservices with attractive quality that satisfy our customers.
(2) Each and every employee working for Toyo Seikan will strive to prevent environmental pollution and reduce
environmental impact in every activity of our business.
(3) We will have sincere dialogue (communication) with stakeholders to continuously pursue better systems that
improve the quality, environment and food safety.
(4) We will comply with relevant laws and regulations as well as contracts.

ENVIRONMENT
Relations with the Environment

Toyo Seikan will contribute to the preservation of the global environment through Green Challenge 2050 initiatives.

Toward the Realization of a Low-Carbon Society
CO 2 Emissions Acrossthe Entire Value Chain

Toyo Seikan Business GroupAt Toyo Seikan Business Group, a large percentage

of CO 2 emissions across the entire value chain comefrom materials and energy.

In its environmental vision, Green Challenge 2050,

Toyo Seikan Business Group aims to reduce CO2 emissions

15

Toyo Seikan Sustainability Reportby 50% compared to the 2013 level by 2050. However,

emissions grew year-on-year in FY2016 due to an increasein the number of units sold. A large proportion of those

CO2 emissions were derived from materials and energy.

Therefore, in addition to upgrading to energy-saving

facilities and lightweighting containers and packaging,
we will work to reduce material-derived emissions anddevelop new technologies.

Toyo Seikan Sustainability Report16

E n v i r o n m e nt
Greenhouse Gas Emissions
from Business Activities of Toyo Seikan Business Group
Scope1
Scope2(ten thousand tons,
CO2 equivalent)

400

CO 2 Emissions
from Logistics

Scope 3 (production material input)
Scope 3 (others)

Toyo Seikan Business Group

Logistic-related CO 2 emissions from Toyo Seikan

Business Group in FY2016 amounted to 46,375 tons, up
from the previous year. At Toyo Seikan, which accounts

300

for a large portion of those emissions, CO 2 emissions

grew due to an increase in long-distance transportation

200

for reasons such as consolidation of production lines.

100

2014

2015

2016

Transportation Using Rail Containers
Toyo Seikan is currently consolidating production sites as part of a major realignment of production facilities

associated with business structural reform. Total transport distance and CO 2 emissions are expected to stay thesame or slightly increase; however, we will further pursue reducing inventories, effective utilization of thecompany’s warehouses, reducing inventory transfers and improving the ratio of direct delivery to customers.
discussed since last year as an alternative

through the introduction of new truck models.
2013

Toyo Seikan Co., Ltd.

Rail freight transport, which has been

We will continue to strive to reduce CO 2 emissions

0

TOPICSmeans of transportation of can ends between
Kanto and Kansai regions, is scheduled to(FY)start on a trial basis from December 2017.

The full-scale employment will lead to an annual

CO 2 Emissions
from Business Activities

reduction of transportation equivalent to aroundToyo Seikan Business Group

470 trucks.

Container design

In order to reduce energy-derived CO 2 emissions,

Toyo Seikan Business Group has made progress in

upgrading to energy-saving facilities and improving the
productivity. As a result, CO 2 emissions from domestic

New truck model introduced by Toyo Mebius Co., Ltd.

operations amounted to 644,000 tons in FY2016.

CO 2 Emissions from Toyo Seikan Business GroupCO2 emissions(thousand tons)

Overseas

1,000

800

122

Domestic (Toyo Seikan Business Group)

129

122

760
664

200
0

711

2013

610

2014

Domestic (Toyo Seikan)

684

540

580

2015

40

644

2016

Toyo Seikan Business Group

80

60

121

600
400

CO 2 Emissions from Logistics of Toyo Seikan Business GroupCO2 emissions(thousand tons)

49.4
43.0

47.1
40.4

45.7
38.3

Toyo Seikan

46.4
37.5

Recognition of
Eco-friendly Products

20

(FY)

0

Eco-friendly Products
Law. In FY2016, we recognized 34 eco-friendly products.
Toyo Seikan GroupAll products of Toyo Seikan Group are considerate

2013

2014

2015

2016

(FY)

Energy Saving Activities in Can Manufacturing Lines

as “eco-friendly products.” They include products that

employ technologies unique to Toyo Seikan Group.

laws and regulations. We also recognize certain products

containing fewer substances designated by the PRTR

Toyo Seikan is switching the material of oven conveyor nets on its can
Products particularly eco-friendly
that employ unique technologies

Metal net previously used would cool down at the exit of the drying ovenand therefore draw away the heat from the oven when entering the oven again.
Less heat is drawn away by using resin net, reducing gas consumption.
of the net following the switch to the resin.

All plants equipped with drying oven are subject to the above-mentioned

switch and we expect CO 2 reduction of around 9,000 tons. As this measurehas had significant impact, we will deploy it to other Toyo Seikan BusinessGroup companies.

17

Toyo Seikan Sustainability Reportwith significant reduction of environmental impact that

The process of recognizing eco-friendly and excellent

eco-friendly products continues.

Metal net

manufacturing lines from metal to high heat-resistant resin.

Electricity used to move the net has also been reduced due to weight reduction

We have also established a new standard for recognizing“excellent eco-friendly products”—eco-friendly products

materials or manufacturing energy, as well as products
Toyo Seikan Co., Ltd.

business group companies.

to the environment as they comply with environmental

achieve major reductions of, for example, required raw
TOPICS

Six of them were recognized by Toyo Seikan and its

Resin net

Essential Requirements
for Toyo Seikan Group Products
Compliance with environmental laws
and regulations
Conformance with the Toyo SeikanGroup Basic Procurement Policy and
the Toyo Seikan Group Procurement
Action Policy

Excellent
eco-friendly
products
Eco-friendly
products
Toyo Seikan Group
products

Selected Recognition Criteria
Reduction of material/raw material
usage
Reduction or elimination of specified
chemical substance* usage
Reduction of energy consumption in
manufacturing
Reduction of waste
Extension of product life

*Specified chemical substance:
Substances designated by the PRTR Law,heavy metals, etc.

Toyo Seikan Sustainability Report18

E n v i r o n m e nt

Material Flow

3Rs of Packaging
Weight Reduction of Beverage Packaging in FY2016

Steel cans

11%
6%
9%

(compared to FY2004)

Aluminum cans(compared to FY2004)

PET bottles(compared to FY2004)

Weight Reductionof Packaging (Reduce)

TOPICS

Toyo Seikan Business Group makes every effort to track its material flow (i.e. the overall environmental impact ofHonshu Seikan Co., Ltd.

Weight Reduction Example

reductionbusiness activities) to enable efficient action for reducing environmental impact.

[Toyo Seikan Business Group FY2016 Material Flow]

Using thinner sheet to make cans reduces

INPUT

the amount of metal resources required. Honshu

reduction

Seikan has made progress on reducing theweight of metal cans.

For example, the company has successfully

reduction

Energy input

coatings, liquid soap and food, by 15%. This

Fuel(crude oil equivalent)
57,000 kl

Plastic
287,000 tons

Total energy consumption
11,800,000 GJ

Others
23,000 tons

for a wide range of applications including

so that the cans retain the same strength.

Honshu Seikan looks to continue weight

Toyo Seikan Business Group is working to reduce theWater
4,203,000 m 3Electricity(purchased)
1,002,000,000 kWh

with innovative modification to the can shapeweight of containers and packaging to ensure effective

Raw material input

reduced the weight of 18-liter steel cans, used

was achieved by employing thinner steel sheet
Toyo Seikan Business GroupToyo Seikan Business Group

Metal
307,000 tons

reductions through its own eco-friendly productdesign and manufacturing process improvements.

use of limited resources.

In regard to beverage packaging, we achieved an

11.6% reduction for steel cans in FY2016 compared to

FY2014 by using thinner steel sheet for the eco-friendly

Toyo Seikan Business Group

Vertical beadfor reinforcement

product TULC than when it was first developed. Also,

aluminum cans became 6.2% lighter than they were in

FY2014 in the same way, using thinner aluminum sheet
than before. PET bottles were made 9.4% lighter by

Convex beadfor reinforcement

OUTPUT

cutting down on resin use, for example through improvements
in bottle configuration and forming conditions.

Products

Weight Reduction in Beverage Packaging
Weight (%)(Base year: FY2004)

100

Steel

Aluminum

100.0

93.8

95

88.4

85

2004

2010

2011

2012

2013

2014

2015

Metal products
256,000 tons

Total waste emissions
100,000 tons

Plastic products
251,000 tons

Chemical releases
and transfers
242 tons

Others(filled beverages, various materials, etc.)
125,000 tons

90.6

90

0

PET bottles

Emissions

BeforeCO 2 (production)
644,000 tons

Finaldisposal volume
5,400 tons
Circulative
resources
95,000 tons

After2016 (FY)CO 2(logistics)
46,000 tons

Customers

19

Toyo Seikan Sustainability Report

StoresToyo Seikan Sustainability Report20

E n v i r o n m e nt
Toyo Seikan has established environmental targets from environmental management priority items and material flow,

and is promoting to improve environmental performance.

FY2016 Environmental Activity Report
Production Activities
Category

Product Development and Sales, Environmental Management, and Environmental Communications Toyo Seikan

Toyo Seikan

Item name

Reduceenergy consumption
per unit(per unit of output)

Targets and results
(%)

100

100

98

Assessment

Targets

96

97

★★★

50
0

2009
(Base year)

2013

2014

2015

2016

Targets

(%)

150
100

100

99

103

100

2009

2013

2014

Results

90 93

CO 2 emissions from logistics
(%)

100

100

84

79

2015

2016

Targets75★★☆

Production
activities

Reducematerial usage
per unit(per unit of output)

(%)

100

2009

100

2013

2014

90

★★☆

0

2009

2013

2014

150
100

Toyo Seikan Sustainability Report

2016

100

2009

100

100

116

90

89

86

2013

2014

2015

2016

125

104

107

★☆☆

150
100

The target was missed by a significant
margin as changes to recycling
market conditions resulted in theconversion of valuable resources
into wastes.

(FY)

Results

101 95★★★

The target was achieved due to a
progress in switching to toluene-freeink.
*For materials with annual transaction volumeof 10kg or more

2010

2013

2014

2015

139

141

138

2016

Targets

100

(FY)

★★☆

2013

2014

2015

★★★

Provided LCA data and support forcalculation to development departments
Introduced aluminum cans with lighter
tabs
Developed high speed co-injection
molding system

Promote salesof eco-friendly
products

Make progress on switching to lightweightpackaging
Communicate and raise awareness abouteco-friendly products internally★★★

Switched to lightweight packaging
Held meeting to explain eco-friendlinessstandards for packaging

Promote container
recycling activities

Participate in committees within, and support
activities of, packaging recycling organizations★★★

Participated in committee activities within,
and actively supported public relations,awareness-raising and survey activitiesof, packaging recycling organizations

Promoteenvironment
risk management

Reduce the number of chemical spill accidents
on company premises
Assess environmental risks for businesslocations★★★

No environmental accidents with serious consequences
occurred. The number of chemical spills declined tothree from the previous year’s five.
Implemented and reviewed accident countermeasures
Shared information on environmental accidents that
occurred at group companies with business locations
and implemented recurrence prevention measures

Promotechemical substancemanagement

Look into integrated implementation of chemical
substance management related to occupationalsafety and chemical substance management
related to environmental and other legislation★★★

Established rules for chemical substancerisk assessments
Organized data for unified managementof chemical substances pertaining toenvironment-related legislation and chemical
substances covered by working environment
measurement

Utilize LCA

Disclose environmental superiority data ofproducts and raise awareness for suchproducts
Utilize LCA data for development activities
Establish functional value assessment
methodology for eco-efficiency★★★

Promoted LCA data utilization at sales anddevelopment departments
Tentatively determined eco-efficiency functional
value
Made improvements in issues identified in functional
value assessment case studies, and madefurther improvements to assessment methods

Promotebiodiversity
activities

Gather information on biodiversity★★★

Exchanged information with Japan
Business Initiative for Biodiversity (JBIB)
participants and partook in activities

Support environmental
activities ofbusiness group companies

Share information on environmental matterswith business group companies
Provide support primarily throughenvironmental risk management★★★

Communicated information on revisions toenvironmental laws and regulations to businessgroup companies
Shared information on environmental accidents
that occurred at group companies with businessgroup companies and implemented recurrence
prevention measures

Promoteenvironmental
communications

Disclose environmental information
Create environmental lecture programs for classrooms
Highlight environmental activities at environmental
events and raise external awareness for such activities
Implement in-house education★★★

Published Sustainability Report 2016
Created and implemented new programfor classrooms
Exhibited at environment-related events
Implemented in-house education for
employees’ families using the Toyo Seikan
Environmental Posters by Children

Results

132141

50
2009

Use LCA data in product development
Develop products taking into account materials,
manufacturing processes and recyclability
while maintaining packaging functions

Environmental
management50
0Productivity improved, but the target
was missed due to higher production
volume of welded cans than originallyplanned.

2016

(FY)

The target was missed despite theprogress on reducing emissions
generated at locations with highsolvent usage.

Environmental
communications

Achievements

Developeco-friendly
products

Results

81

Targets(%)

150

Despite expansion of in-house warehouses
resulting in less transportation to external
warehouses, the target was missed as
long-distance transportation increased
in response to a growing demand.

(FY)

50

0

21

89 92

2015

Assessment

Results

Targets(%)

Reduce
VOC emissions

(FY)

50

0

ReducePRTR substancerelease and transfer
volume(compared to FY2010)

2016

★★☆

(%)

Reducetotal waste
emissions89

Despite achieving the target for energy
consumption per unit, the target for
CO 2 emissions was missed due to
production volume increase.

FY2016 target

Results

Targets

94

Item nameProduct
development
and sales

(FY)

69 76

2015

Category*Calculated using FY2014’s CO2 emission
factor for electricity

50
0

The target was achieved as a resultof productivity improvements andrealignment of production lines, etc.

(FY)

50
0

Achievements

Results

96 95

CO 2 emissions from business activities

ReduceCO 2 emissions

Assessment: (vs. FY2016 target) ★★★ = Achieved, ★★ = Slightly missed, ★= Not achieved

Toyo Seikan Sustainability Report22

E n v i r o n m e nt
Compliance withLaws and Regulations

Waste Reduction Activities
Reduction of
Total Waste Emissions

Toyo Seikan Business Group strives to reduce andrecycle the waste that each plant/office generates.

Total waste emissions in FY2016 increased by 9% fromaccordingly. We also endeavor to comply with strict

Toyo Seikan Business Group was not involved involuntary standards we have put in place ourselves.

further minimize our environmental impact.
Waste Emissions and Landfill

Waste emissions(tons)

25,00020,000the previous year as the adverse market conditions resulted

15,000Landfill was reduced by 11% from the previous year as a

5,000

in a drop in sales of waste plastic.

18,281

10,0006,605

0result of active recycling of dewatered sludge into materials.

2013

18,5206,273
2014

Appropriate Management of Chemical Substances

Landfill

21,19919,439

6,066

5,385

2015

2016

Reduction of PRTR SubstanceReleases and Transfers(FY)

Toyo Seikan

Toluene contained in inks and solvents used for film

TOPICS

products accounts for half of all PRTR substance

TM Pack Co., Ltd.

Promoting Sale of Tea Dregs (Green Tea Leaves/Barley) Using In-house Transportation
In June 2013, TM Pack began the production of tea beverages with green andbarley teas as its main products. The total volume of tea dregs generated during the
manufacturing and brewing process amounts to around 3,200 tons per year. In

November 2016, TM Pack changed how these tea dregs are disposed of in order toreduce associated costs. Under the new disposal system, tea dregs are sold tohorticultural farms as soil conditioner instead of being collected by industrial waste

working to convert to toluene-free materials, but inbut switched to toluene-free materials in ordertypes of materials, dramatically reducing releases anda feat of a kind that Toyohashi Plant had never

FY2016 progress was made in converting even more

to help the environment. It was a complete switch,transfers.

attempted before, but manufacturing, SCM andenergy, and industrial waste disposal costs.

150

tons of tea dregs, setting a target of reducing annual costs by around ¥40 million.

204

200

storage and transportation phases.

Toyo Seikan Business Group makes efforts to prevent

upgrading and routinely examining facilities. We also

carry out regular drills assuming emergency situations

to prevent the expansion of the damages of accidents.
No accidents with serious consequences for theenvironment occurred during FY2016. The number ofaccidents halved to six from the previous year’s twelve.

23

Toyo Seikan Sustainability Report

Chemical spills

2015

2016

Noise

15

10

Toyo Seikan

Abnormal wastewater

5
2014

2,500
2,000

2015

Honshu Seikan Co., Ltd.

Prevention of Chemical Substance Outflows
In anticipation of the possibility of a chemical

spill occurring inside its liquid waste storeroom,

Honshu Seikan Hyogo Plant has installed underground
premises. As part of more robust safety measures,
work was carried out in FY2016 to increase the

VOC Emissions(tons)TOPICSpits in the storeroom to prevent outflows from company

to solvent-free adhesives and solvent recovery.

1,500

12

Left to right: Fukabori ofTechnical Headquarters,
and Yokota (quality),
Maeda (manufacturing) andassistant manager Inaishi(SCM) of Toyohashi Plant(FY)

reduce VOC emissions, for example through switching

21

2013

2014

VOC emissions. However, we are making efforts toChange in Number of Environmental Accidents

0

2013

products, which has increased and thereby increasing

recurrence of environmental accidents.

15

2010

amount of solvent is used in the production of filmContinued efforts involving corrective action and20

toluene-free materials and with efforts to reducematerials such as coatings, inks and adhesives. A large

reviews of its effectiveness will be made to prevent

25

considerate plant by continuously using

194

materials like solvents. At Toyo Seikan, this applies toaction prevented outflows from company premises.

(Accidents)

Toyohashi Plant aims to be an environmentally

219

Volatile organic compounds (VOCs) are found in

substances like oils and chemical agents, but quick

chemical spills and other environmental accidents by

212

Reduction of VOC Emissions

Five accidents were chemical-related spills, involving

Environmental risks exist in various situations such

220

50

Addressing Environmental Risks

as production facilities as well as production management,

Headquarters, worked together to achieve it.

ink usage and releases.

0

Toyo Seikan Business Groupquality sections, with the support of Technical100

Horticultural farm where tea dregs were scattered

Toyohashi Plant in the past mainly used inks

harmful substance toluene in its printing processes,

250

In FY2017, TM Pack will carry out this activity with an aim of selling around 1,800

Use of Toluene-free Inks and Solventsof film products increasing, we had already been

(tons)

company dump trucks. This has reduced three kinds of costs, namely transportation,

Toyo Seikan Co., Ltd.

releases and transfers by Toyo Seikan. With production

PRTR Substance Releases and Transfers

Transportation of tea dregs using company trucks

TOPICSand solvents containing a large amount of thecontractors. The tea dregs no longer need to be dried, and are transported using

Reducing
Environmental Risks

changes to local ordinances applicable to individual
business locations, and modify areas of compliance

any legal violations during FY2016. Efforts were madeWe will continue efforts to reduce waste, seeking toToyo Seikan Business Groupto gather information on law revisions, including
Toyo Seikan Business Group

space inside the underground pits after confirming
2,224

2,278

2,234

the storage condition and other aspects.

2,287

Underground
pits

1,617

1,000

6
2016

500
(FY)

0

After the work
2009

2013

2014

2015

2016

(FY)

Toyo Seikan Sustainability Report24

E n v i r o n m e nt
To promote procurement of eco-friendly materials,

Toyo Seikan has established the Toyo Seikan Green

Reduction of Water Consumption
Water Management
at Plants

FY2014, we reviewed chemical substances covered bytreatment efficiency and ensure thorough management
Toyo Seikan Business GroupThe plants of Toyo Seikan Business Group use water

resources for processes like product washing and cooling.
Water usage in FY2016 was 4.203 million m 3, resulting ina further reduction from the previous year achieved

through efforts such as ensuring efficient use of water

resources, efficient production and reusing wastewater.
Plants manage wastewater in accordance with

self-imposed wastewater standards, which are stricter

than the regulated criteria. After treatment, the water isreturned to the environment, for example into the sea,rivers or streams. We will continue efforts to improve
TOPICS

Procurement Guidelines (for Chemical Substances). In

of chemical substances in wastewater as we strive toprevent water pollution and conserve water resources.

(thousand m )

5,000

3,638

4,000

4,411

3,000

In FY2016, risk assessments for chemical substances

had to be carried out in line with "Legislation for Partial
Revisions to the Industrial Safety and Health Act".

management of chemical substances pertaining toToyo Seikan Business Group

4,768

examine substance content in supplied items.

Accordingly, changes were made to allow integrated

Water Consumption
3

the guidelines and conducted a survey of suppliers to

3,178

4,304
2,956

Toyo Seikan

environment-related legislation and chemical substances
related to occupational safety.

4,203

Toyo Seikan Basic Procurement Policy
Procurement departments shall procure required materials withthe right quality, price and delivery times from the global market
in line with the Toyo Seikan Corporate Code of Conduct andin-house regulations, in compliance with relevant laws andregulations, and based on fair transactions. Departments shallcarry out procurement activities in a way that assists the creationof an enriched and fulfilling, sustainable society by contributing tosafety and peace of mind, minimizing environmental impact andproviding ease of use and enjoyment through business activities
revolving around manufacturing of containers and packaging.

2,759

2,000
1,000
0

2013

2014

2015

2016

Communicating with the Community(FY)

As an activity supporting the education of children

Nippon National Seikan Co., Ltd.

who represent future generations, Toyo Seikan Business

Reduction of Water Usage by Utilizing Water Treatment Outflow

Group provides lectures in classrooms at elementary,junior high and high schools to teach children about

Nippon National Seikan reduced annual water usage by aroundenvironmental issues through packaging. Other activities

14,000m by making use of outflow from the water treatment facility.
3

include participation in environmental events.

Wastewater generated during washing processes for aluminum beverage

issues. In 2017, four companies—Toyo Seikan Group

Holdings, Toyo Seikan, Toyo Glass and Tokan Kogyo—

set up a stall for introducing eco-friendly products, empty
can fishing and glass bottle workshops among otheractivities. It was an ideal opportunity for visitors to become
more familiar with packaging.

cans is purified by the water treatment facility before discharging into a
stream. Water treatment used to require a large volume of municipal

water for preparation of bentonite (clay that adsorbs oil, fat and impurities)

Left to right: Assistant manager Takatsuka,
Hasegawa, Doi and Shimizu

tanks. Recent facility improvements have made it possible to pump up

Toyo Seikan

Toyo Seikan commenced lectures in classrooms in

2011. In FY2016, we held lectures on the packaging 3Rs

and reuse purified water that was previously discharged into the stream.

at six schools.

Eliminating the need for municipal water in tank preparation led to a cost

We create programs incorporating the requests ofreduction of ¥3.56 million. To enable ongoing, considerate use of watereach school by meeting with teachers prior to the lectures.

resources, Nippon National Seikan will also strive to maintain facilities
while continue working to reduce water usage.

Lectures in Classrooms

Outflow tank

Bentonite preparation tank

SAITAMA Environment Fair

Toyo Seikan

Toyo Seikan participated in the SAITAMA Environment

Fair, an environmental event organized by Saitama

Green Procurement
Procurement Framework

Toyo Seikan GroupToyo Seikan Group has established the Toyo SeikanGroup Basic Procurement Policy and the Toyo SeikanGroup Procurement Action Policy, and makes sure to remain
humble and engage at all times in proper transactions
with suppliers as important partners who help sustain
our business activities.

Toyo Seikan carries out procurement in line with these25

Toyo Seikan Sustainability Report

Prefecture. The company ran a packaging eco-quiz andcan handicraft workshop.
policies and in accordance with its own Procurement
Management Regulations.

Green Procurement

Toyo Seikan

Toyo Seikan has set up a central chemical substancemanagement working group to promote appropriate

management of chemical substances used by plants
and minimize their environmental impact.

Participation in Environmental Events
Shinagawa ECO Festival[Toyo Seikan Group Holdings,
Toyo Seikan, Toyo Glass, Tokan Kogyo]

Toyo Seikan GroupThe Shinagawa ECO Festival, held in May each year,

aims to call attention to environmental activities of community
organizations and other parties and to broaden networks
for intergenerational exchange through environmental

Toyo Seikan Sustainability Report

26Corporate GovernanceToyo Seikan has put in place organizational foundations

Strategic Planning and Execution
through Management Meetings

for the improvement of corporate value, and appropriate
decision-making.

Toyo Seikan

The Company has adopted an Operating Officer

Corporate Governance System

Toyo Seikan

The Board of Directors of Toyo Seikan is comprisedof seven (7) Directors. The term of office for Directors is
set at one year to clarify the management responsibilityof the Directors and to flexibly build a management

system that can quickly respond to changes in the business

System for a clear separation of management’s decision-

making/supervisory functions and the business executionfunction. We have also established the “Management

Meeting” comprising President, Senior Executive Officers
and Executive Officers for more speedy decision-making
on corporate strategy.

environment. In addition, Toyo Seikan has adopted an

Implementation of
Corporate Governance

Audit and Supervisory Board system, and two (2) Audit

and Supervisory Board Members audit the execution ofduties by Directors and financial status of the company.

Toyo Seikan

In FY2016, the Board of Directors met 17 times todiscuss and make decisions on matters stipulated by laws
and regulations and important business matters, andsupervised the execution of business. The Company also

held other meetings, including 35 Management Meetings
and those of important committees such as the Integrated
Risk Management Committee, in an effort to ensure
implementation of sound corporate governance.

Corporate Governance System

General Meeting of Shareholders

Relations with Society

Election anddismissal

Board ofDirectors
Representative
Director

Audit

Cooperation

Election anddismissal

CSR Promotion Committee
Integrated Risk Management Committee

Sales Reformation
Division

Compliance Promotion Committee

Management
Meeting

Information Management Committee

General Affairs Dept.
(auditing dept.)

Audit

Operating
Officers

Central Integrated Management System Committee

Respective
Divisions

Central Safety and Health Committee

Accounting
Audit

Accounting Auditors

SOC I E T Y

Audit and Supervisory Board Members

Election anddismissal

Toyo Seikan considers it a corporate mission to contribute to society through its business activities, and will
therefore contribute to the realization of an affluent society, placing value on its relations with stakeholders.
Cooperation

27

Toyo Seikan Sustainability Report

Audit

Toyo Seikan Group Holdings Internal Audit Office

Cooperation

Toyo Seikan Sustainability Report28Society
CSR Management

Toyo Seikan

To gain the trust of all stakeholders, it is importantfor us to contribute to society by creating products andservices that possess new value, through ongoingtransformation and challenges in line with the basic

philosophy represented in our Founding Spirit.

Using the basic CSR Policy of Toyo Seikan Group asa model, Toyo Seikan will work constantly to build trustwith stakeholders, tying those efforts into the company’s
CSR management.

Compliance
Under the corporate philosophy of “contributing to thehappiness and prosperity of mankind through packaging
technology” and the Toyo Seikan Group management

Basic CSR policy of the GroupThe Toyo Seikan Group defines CSR as “a commitment to contribute to the happiness and prosperity of mankind
through sincere and fair business activities.” All employees of the Group understand its CSR initiatives and respondto all stakeholders.
All stakeholders

We will respect basic human rights and diversity of all people,
communicate faithfully and act with such awareness.

Customers

We will provide safe and secure products, system and services
to ensure customer satisfaction.

Suppliers

We will conduct impartial, fair and transparent business activities
always with good ethics.

philosophy established in April 2016, Toyo Seikan isengaged in corporate activities with all employees being

aware that they must constantly create new value while
respecting dignity and always striving to be fair andunbiased in every way.

Compliance Promotion Organization

Toyo Seikan

The Compliance Promotion Committee, chaired by

an officer appointed by the President and comprising

Shareholders and investors

We will strive to enhance corporate value,
and manage and disclose information appropriately.

Employees

We will create a safe, hygiene and vibrant workplace.

entrench compliance awareness, ensure prevention andLocal communities

We will co-exist harmoniously with local societiesand promote interaction with local communities.

corrections and prevent recurrence across the organization

Global environment

We will actively strive to preserve the global environment
and improve environmental quality.

heads of divisions or persons designated by them, hasbeen established to promote activities to instill andearly detection of violations, identify causes, and makeperson at each plant/office to advance compliance education

awareness at domestic group companies. Meanwhile, at

Toyo Seikan Group

training for employees, managers, senior management

and others as part of efforts to raise and enhance awarenessabout compliance.

risks that may adversely affect Toyo Seikan’s business
operations, to secure stable operating foundations.

Risk Management

Toyo Seikan

For risk prevention and emergency response, Toyo

Seikan has established the Basic Risk Management
Rules and the Basic Crisis Management Rules, andemergency situations.

In FY2016, we reviewed which risks to be covered,

which meeting to be responsible for each risk, andwhich department to be in charge of each risk. BusinessTraining for new hires (held in Apr. 2016)
Legal training for newly appointed group company
officers (held in Jul. 2016)
Group compliance training (held in Oct. 2016)
Online compliance course for newly appointed managers

and management risks, and financial and accounting
risks have been added as new risk categories. The

above-mentioned meetings and risks are listed below.

Compliance Promotion MonthToyo Seikan

Since 2007, the Toyo Seikan Group has designatedevery October as “Compliance Promotion Month”. In

FY2016, we undertook compliance activities, featuring“respect for human rights and individuality” and “proper

Management Meeting(1) Business and management risk

(2) Financial and accounting risk

(3) Debt collection risk

Integrated Risk Management Committee(4) Risk of natural disasters and accidents(7) Manufacturing and quality risk

29

Toyo Seikan Sustainability Report(5) Compliance risk
(8) Environmental risk

(6) Information security risk
(9) Country risk

made progress in instilling and entrenching complianceoverseas group companies, the compliance system has
been inadequate, even though we now have more thanToyo Seikan Group provides various compliancesystematically manages risks to respond to normal andToyo Seikan Group has been conducting Group

compliance promotion activities since 2005, and has

In addition, the committee chairperson appoints one

Compliance Education

We manage risks by dealing with a wide range ofToyo Seikan Groupin a flexible manner.

activities at the site.

Risk Management

Global Compliance Activities

management and disclosure of information”.

Compliance promotion activities conducted by Toyo

40 group companies overseas as a result of proactive
global expansion. As the significance of overseas

business is expected to be further emphasized, we havedecided to implement global compliance activities

assuming risks inherent in overseas markets. We beganat our group companies in Thailand in account of thenumber of companies we have there, sales scale, etc.

Besides identifying the risks in Thailand and ascertaining
what was being done to address those risks, training

sessions were held locally for Thai managers and Japanesepersonnel.

Having judged that bribery would become a majorrisk for overseas operations, we commenced related

activities in FY2016, including gathering information onbribery risk and examining possible approaches.

Accepting Fair Trade Inspection with Seriousness,
Toyo Seikan
Aiming to Strengthen Compliance
In April 2017, Toyo Seikan was subject to an on-site

Seikan include publication of the fifth edition of theinspection by the Japan Fair Trade Commission in relation

departmental compliance guidelines, and display ofwith the investigation, which is still in progress. We will make

Corporate Code of Conduct, collation and checking of
educational posters, as well as holding compliance quiz

event for employees and a compliance slogan competition.

to Antimonopoly Act. The company is readily cooperating
efforts to strengthen compliance as we strive to preventa recurrence and regain trust.

Toyo Seikan Sustainability Report30Society
Human Development Initiatives andCareer-Path Support Tailored to Various Needs

Together with Employees
To be able to “contribute to the happiness andprosperity of mankind” in line with the fundamental

principles behind Toyo Seikan’s founding, we seek people

to motivate employees to acquire new knowledge andpartake in a wide range of roles.

Human Resources Development

Toyo Seikan

In order to pursue management centered on "people"

who will grow and develop through ongoing changes andand "technology", the company supports the development

people with diverse and unique talent—such as those

providing not just classroom lectures but also on-the-job

new challenges. Our aim is to create workplaces where

who come up with innovative technologies and ideas, or
who eagerly look to try new things—can play an activerole, utilizing the full extent of their abilities.

safe and hygienic work environment.

In the area of safety, we endeavor to lower the risk ofare being developed. In FY2016, 235 employees underwent

danger by raising employees’ sensitivities to dangers,

For new hires in production departments, basic

facilities in relation to operations that could potentiallyreviewing work methods and making improvements tothis training.

systematic on-the-job training is supplemented by extensive

the full understanding and awareness of the guidelines.

which allows them to thoroughly master the basic principles

off-the-job training at the Technical Education Center,lead to a serious occupational accident.
We also have an incentive system in place to encourage

Supervisors, too, evaluate employees fairly based onof manufacturing in their first three years of employment.

employees to obtain official qualifications and licenses

through “feedback meetings” including their strengths

overseas with production equipment, packaging containerswork. Successful employees are paid a monetary award

employees set their own tasks and review their own

efforts to develop human resources able to work at theand weaknesses and what are expected of them. Having
performance helps to develop independent-minded
human resources.

Pursuing a Corporate Culture that
Embraces and Benefits from Diversity

We anticipate there will be a growing need to furnish

and associated manufacturing technologies. As part offrontline of our global operations, we are sending employees

In the rapidly changing business environment now,the company has enhanced the collective strength of theGroup and advanced into new fields, such as new andoverseas businesses. We must have diverse abilities, values

and ideas in order to survive in the future, and to constantly
contribute to society. Toyo Seikan is expanding recruitmentof mid-career and foreign workers with the aim of securingpersonnel who can flexibly respond to changes.

We also support the work-life balance of employees,

for instance through post-retirement employment as

relating to their jobs and improve the standard of theircorresponding to the qualification. Efforts are made toenhance the system by reviewing applicable qualifications

formulate action plans that incorporate quantitative targets.

Toyo Seikan Sustainability Report

accidents caused by younger employees, those withlimited experience, and part-time or temporary personnel,

provide education using case studies of actual accidents

studying within a foreign culture, employees acquire

we provide support for foreign language learning as wellbroader vision and different perspectives from which to makesense of new trends, allowing them to develop into humanresources who can make a difference at the forefront ofour global expansion.

To help employees naturally familiarize themselves

expansion and development of our overseas business,

specific dangers for use in actual on-site training andcaused as training materials.

In the area of health, we view the health of employees

as pre-departure training prior to an overseas posting to

as one of our top management priorities and strive toand other aspects of the destination. We have introduced

and provide education relating to health management soteach them about culture, religion, customs, public safety
language training for new employees, and sessions forprevent illness and injury. We also put in place structuresthat employees will take responsibility for managing theirjunior employees promoting cross-cultural understanding,own health. Specifically, we implement activities that aim

overseas business at an early stage.

our employees. They include provision of health guidancein order to encourage them to turn their attention to

Internship Program

to promote mental and physical health maintenance ofand support based on the results of routine health

Toyo Seikan

Toyo Seikan provides opportunities for work experienceequipment, they get a feel for the work environment. We

an activity plan, while group companies individually

recurrence of similar accidents. To lower the risk ofwith foreign cultures and thereby contribute to further

for female employees. In response to the Japanese Act

effective from April 2016, Toyo Seikan Group has presented

through “disaster case studies,” thereby preventing

so they can develop a global perspective and gain

to overseas universities with packaging studies departments

to students with an interest in manufacturing. Experiencing

for Promoting Women’s Active Participation in the Workforce,cross-organizational implementation of measures

we establish on-the-job training work manuals indicating

special employees after mandatory retirement age of 60,

if they so desire, and extensive childcare support programs

Information about accidents at other plants is

promptly shared to improve sensitivities and enable fullas our business evolves.

firsthand experience of packaging trends. Living andToyo Seikan GroupToyo Seikan

company so that employees can work comfortably in amachines. Through hands-on experience with machines

Further growth will be achieved by each and every

these guidelines and convey the results of such evaluations“I was able to envisage what it is like to work.
It was a truly valuable experience.”

We pursue safety and health activities throughout the

To ensure the transfer of skills, we have establishedin addition to lectures, the next generation of engineers

employee’s making efforts in their daily work based on“I realized the joy of making things throughhands-on experience in development workat a packaging manufacturer.”Safe, Hygienic andEnergetic Workplace

Nurturing Engineers
Who Will Support the Next Generation"Motivation" and "pride" are essential elements forthe conduct expected of people in each job rank or role.

Selected Comments from Students Participatedin the Internship Program

training.

the Technical Education Center equipped with training

resources it seeks and sets out specific guidelines forDistance learning courses: Full reimbursement of program
fees to those who complete courses(A total 2,014 courses were taken in FY2016)of employees with a desire to better themselves by

Toward the Development of
Toyo Seikan
Human Resources Sought by Toyo Seikan
human growth. The company defines the type of human31

The company offers 447 distance learning courses

Voice

an actual job and coming into contact with manufacturing

accepted seven students for the FY2016 summer internship,
giving them a chance to envision their own views on

examinations; stress checks and seminars encouraging

self-care and care by the organization as ways to promotemental health; measurement of work environments andchemical substance risk assessments for the purpose of
preventing occupational illness; and support for giving
up smoking in collaboration with our health insurance
association.

employment and career options.

Toyo Seikan Sustainability Report32Thir d- Par ty Opinion

Societyon Toyo Seikan Sustainability Report 2017
Norihiro Itsubo

Quality Assurance
Delivering Safety and Reliability

Toyo Seikan

Many products made by Toyo Seikan are containers

for food, beverage, household commodities and otherproducts closely tied to our daily lives. We make surenever to stray from the philosophy of the company founder,
Tatsunosuke Takasaki—“humans need food to live andtherefore people who work with food in their jobs must
be sound of mind.”

Toyo Seikan has also obtained ISO 9001 (quality

efforts to enhance safety and reliability.

In addition, we liaise with material suppliers, outsourcing

partners and other related companies, which are vital tobuilding quality into products, about activities aimed to
improve quality.

Initiatives for Realizing
Suitable Production Environments

Toyo Seikan

To ensure that our manufacturing operations canmanagement system) and FSSC 22000 (food safety

earn the trust of customers, we are strengthening security

management systems and makes ongoing improvements

defense against intentional contamination of packaging

management system) certifications for its quality-related
to product quality and quality assurance mechanisms toenable delivery of “safer, more reliable packaging products”.

Ensuring Appropriate
Quality Assurance

Toyo Seikan

diverse situations, such as for items, like canned food,consumed after long periods of storage; beverages, like

soft drinks in PET bottles, sipped directly from the container;and substances in spray cans containing flammable gas.
To prevent defects and problems, we are building quality
assurance structures for carrying out appropriate

examination, taking into account all processes covering

materials and customers right up to consumption by end
users.

In regard to new products and products with revised

specifications, we perform proper quality assurance

activities involving appropriate reviews for each stage.

If a problem were to occur, we would promptly takesuitable action, thoroughly investigating the cause,

implementing temporary and permanent measures asappropriate to prevent a recurrence, and standardizing.

Sound Quality Management

Toyo Seikan

Packaging production processes and packaging

products themselves undergo a variety of inspections
according to criteria determined under parameters

including dimensions, appearance and functionality. We

also incorporate in-line inspection devices into productionlines and look to improve accuracy through system

upgrades and other methods. In this way, we continue

Toyo Seikan Sustainability Reportmeasures prior to entry to production plants as a foodcontainers by suspicious persons.

And by implementing the 6Ss—seiri (tidiness), seiton(orderliness), seiso (cleaning), seiketsu (cleanliness),shitsuke (discipline) and saho (courtesy)— , and paying

Our packaging products are used in various ways in

33

Professor, Faculty of Environmental Studies
Dean, The Graduate School ofEnvironmental and Information Studies
Tokyo City University

attention to the hygiene of products, we will make itpossible to deliver even higher levels of safety andreliability.

Congratulations on your centennial anniversary.
With features that look back on the past 100 years
and outline a future vision looking ahead to 2050, thisreport offers a self-evaluation of current activities fromboth past and future perspectives with extensive coverage
worthy of a commemorative issue.
Above all, I was very intrigued by the developmentof containers and packaging manufactured by Toyo
Seikan over the last 100 years. Explanations about
topics such as launch of can manufacturing with
automatic can making machine as well as manufacturingof retort pouches and PET bottles, and Toyo Seikan’s
original technologies like the TULC and NS System
are presented alongside historical social events in acompact format.
Green Challenge 2050 sets a numerical target of
reducing CO 2 emissions, including those from thevalue chain, by 50% by 2050. Conveying the intention
to comprehensively tackle water and resource issues
with specific targets adds to a favorable impression.
With a road map for achieving targets also presented,
the management team has a clearly defined vision,
based on which we can sense their desire for sustainablebusiness management.
Contributions to environmental protection throughbusiness activities are also innovative. Over the last
12 years, weight of steel/aluminum can and PET bottle
has been reduced by 10%. One of the success stories
is the redesigning of 18-liter can, achieving a 15%
weight reduction. These facts show that innovation has
been made constantly at Toyo Seikan. A goodorganizational framework is in place where targets
are introduced from the top down, while innovation ispursued from the bottom up.
I would like to make the following suggestions toassist further improvements.

Cooperating with other companies
through supply chains and life cycles

Activities up to procurement of raw materials create
the greater part of the environmental impact of packaging,regardless of the type of package. Therefore, reducing
the weight of packaging and increasing the recycling
rate go hand in hand. Packaging weight has been
drastically reduced thanks to efforts by the industry,including Toyo Seikan Group. The recycling rate isapproximately 90% for PET bottles, and exceeds 90%
for both steel and aluminum cans. The Circular Economy

Package promoted by the European Commission is
drawing keen attention right now. It aims to raise therecycling rate for packaging to 75%. Japan, where
European targets are well outperformed, is set to be abenchmark for those efforts. In Europe, measures are
driven by the private sector, creating anticipation ofsubstantial business opportunities for the Japaneseindustry. Japanese packaging manufacturers are
expected to collaborate with waste collectors andrecyclers to transfer their business model that reduces
raw materials and increases the recycling rate to Europe
and the rest of the world.

Clarifying the relationship with SDGs
Many corporations have already stated the connection
between the SDGs and their main business. The SDGs
are valid as basic information for determining materiality,
and they are expected to be effective as a tool forcommunication within and outside the group. As
packaging can help reduce food losses, Toyo Seikan
can contribute to the achievement of Goal 2 (achieve
food security and improved nutrition). Reducing raw
materials and increasing the recovery rate are strongly
related to Goal 12 (ensure sustainable consumption andproduction patterns). Targets specified in Green Challenge
2050 will link to solutions for Goal 6 (water), Goal 13(climate change), Goal 14 (marine ecosystems) and
Goal 15 (terrestrial ecosystems). I believe that clearly
defining the connection between international goals
and the company’s main business will add impetus tothe overseas expansion of its business.

Enhancing the social dimension
The report provides information on activities relating
to governance, compliance and quality assurance.
On the other hand, there is a strong expectation that
Toyo Seikan will contribute to solutions for hunger andpoverty as a packaging manufacturer with a mission
to secure stable supply of food. These issues demandan even higher level of materiality determination, andI believe this will uncover a way to achieve sustainable
management looking ahead to the next 100 years.
Having reached the centennial milestone, I lookforward to further evolution of Toyo Seikan as a company
that drives the creation of a sustainable society throughGreen Challenge 2050.

Toyo Seikan Sustainability Report

34

e t

o

th

10

English edition

2 017

Osaki Forest Bldg., 2-18-1 Higashi-Gotanda, Shinagawa-ku, Tokyo
141-8640, Japan
Tel: +81-3-4514-2026 Fax: +81-3-3280-8125

http://www.toyo-seikan.co.jp/e/Published : January 2018

Fu

t

.

Sustainability Report

Environmental Management Department,
Procurement, Environment & Quality Assurance Division
Toyo Seikan Co., Ltd.

e

re

0

ion, Challeng

u

Y

ea

'
rs

n
Co

but
tri