DNP Group CSR Report 2017
CONTENTS
Information Disclosure Philosophy / Editorial Policy◆ DNP ensures accountability by properly disclosing
information about its corporate activities.

02

Information Disclosure Policy / Editorial Policy
Corporate Profile“Today’sInnovation isTomorrow’s
Basic”
11
12

03
05
07
09

Top Message
Three Corporate Responsibilities
Value Creation in Step with Society
New Value to Realize a Sustainable Society

About the Cover Design
Our cover for this year’s report conveys
DNP’s commitment to offering a wide
range of “pluses” for society and theenvironment, under our corporate
philosophy, “connecting individuals
and society, and providing new value.”In this way, we aim to contribute to thedevelopment of a sustainable society.

Special Features: DNP’s New Value Creation

23

41
42

groovisions

Groovisions is a design studio established in
1993. It is active in a variety of areas, primarily
graphics and motion graphics, but also music,
publishing, products, interiors, fashion and theweb. Groovision’s main works include stage
visuals for Pizzicato Five, editorial design for themagazines Kokoku Hihyo and Metro Min., motion
graphics for Expo 2005 Aichi Japan, show window
direction for Maison Hermès, and the 301st Ginza
Graphic Gallery Exhibition.

28
29

Ensuring Information Security◇ Issued: August 2017 (Next scheduled issue: August
2018)

30

Environmental Conservation and the Realizationof a Sustainable Society

31
32
33
34

Social Contribution as a Good Corporate Citizen
Proper Disclosure of Information
Compliance with the Law and Social Ethics
Development of a System for BusinessContinuity

FY2016 (Apr. ’16–Mar. ’17) CSR Management Report
Third-Party Opinion
A Message from the CSR/Environmental Committee Chairman

Annual Reports(booklet/PDF)

Corporate Profile (as of March 31, 2017)
Head Office:Promoting Social Responsibility through the
Supply Chain

Environmental
Reports(PDF)

http://www.dnp.co.jp/csr/enquete/ (Japanese only)

Please let us know your opinions and impressions.

Company Name: Dai Nippon Printing Co., Ltd.

Detailed information is provided in
our Environmental Report.

CSR Reports(this report/PDF)

Information about social responsibility

Survey on the DNP Group CSR Report 2017

Number of Employees: 38,808 (Consolidated)
10,800 (Non-consolidated)

1-1, Ichigaya Kagacho 1-chome,
Shinjuku-ku, Tokyo 162-8001,
Japan
Tel: +81-3-3266-2111

Realization of a Safe and Vibrant Workplace
Ensuring the Safety and Quality of Our Products
and Services

CSR and
Environment
sections of website

Group Companies:

Consolidated subsidiaries: 106
Equity-method affiliates: 16

Financial Data: (FY ending March 2017)

Website:http://www.dnp.co.jp/eng/

Net Sales

Established:

October 1876

Operating Income¥31.4 billion (down 30.9% year-on-year)

Incorporated:

January 1894

Ordinary Income¥36.7 billion (down 30.2% year-on-year)

Paid-in Capital:¥114,464 million¥1,410.1 billion

Net income attributable to shareholders of the parent¥25.2 billion (down 24.9% year-on-year)

Business Segments:
Percentage of total sales

Information Communication

DNP Group
Environmental Report 2017 (PDF)
http://www.dnp.co.jp/eng/csr/

Publishing, commercial printing,smart cards, network business,
imaging communication, etc.

Printing

Lifestyle and Industrial
Supplies
Packaging, interior and exteriormaterials for houses, industrial
supplies, etc.

Electronics
Display components, electronic
devices, optical film, etc.

Beverages Beverages(down 3.1% year-on-year)

1

2

56.6%

12.0%
4.0%

“honto” hybrid-type generalbookstore

2

Smart cards and related
products

3 Ki-Re-i ID photo booth
5

27.4%

1
3

7

4

8

11

6

9

10

4 PET bottles and preforms
5

Aseptic filling systems for
PET bottles

6

Automotive interiormaterials

7

Exterior materials forbuildings

8

Semiconductor
photomasks

9Master template for nanoimprinting

10

Optical film for flat panel
displays

11 Soft drinks

02
Information Disclosure Policy / Editorial Policy,
Corporate Profile

Report on Activities under each Principal Theme

35

Respect for Human Dignity and Diversity

Financial and non-financial information to meet stakeholder needs isprovided in an easy-to-understandform via a range of media◆ This report describes the role DNP plays in society,from the perspective of business activities andassociated processes.

In this report, “DNP” indicates the DNP Group, as distinct from Dai Nippon Printing
Co., Ltd. The designation “DNP Group” shall be used in contexts where weemphasize the Group as a whole.

Establishing Principal Themes

25
26
27

http://www.dnp.co.jp/eng/◇ Scope of report:
All companies and divisions of the DNP GroupSpecial Feature 2: Focus on Cases

CSR Activities at DNP

DNP information database for presenting
financial and non-financial information◆ Information relating to social responsibility isdisclosed in our CSR Report, Environmental Report,
and the CSR and Environment sections of our
website.

However, reporting is not confined to this period regarding some important matters.

Special Feature 1: Special Dialogue

Toward a Rewarding Future for All

DNP Corporate Site

◇ Period covered by this report:
April 1, 2016 to March 31, 2017 (FY2016)

Realizing a Sustainable Society18◆ Based on this approach, we use websites andvarious media to appropriately disseminate financial
and non-financial information so that all of society
can understand our company in a multi-faceted andintegrated way.

“Today’s
Innovation isTomorrow’s
Basic”Top Message

Creating New Value to Realize a
Sustainable Society

area of knowledge and communication that are contributing to

In 2016, DNP celebrated the 140th anniversary of its founding.

Tackling Sustainable Development Goals

In the wake of the Meiji restoration in 1876, Shueisha,
DNP’s predecessor, was established with the conviction that
“Scholarship, the arts and sciences are the pillars of the nation.
Learning is brought to fruition through books, and books are
created through printing. Therefore, printing is the business ofcivilization.”
From then until today, based on our founding commitment,
DNP has contributed to the development of society, and has
applied and evolved printing and information technologies ina wide range of areas, including publishing and commercial
printing, packaging, interior and exterior designs, displayrelated products, and electronic devices.
Furthermore, DNP established four growth areas in DNPGroup Vision 2015: Knowledge and Communication, Foodand Healthcare, Lifestyle and Mobility, and Environment
and Energy. We arrived at these four areas by identifyingpressing social challenges needing domestic and international
solutions, and selecting business areas where we believe that
DNP’s human and technological strengths can be leveraged tocreate new value.

This CSR report includes a special focus on cases in thethe formation of a sustainable society.

Social contribution as a good corporate
citizen
DNP engages in social contribution activities as a corporate
citizen. For example, since 2013, DNP employees have been
performing local volunteer work to support recovery fromToday’s society faces such global challenges as climate

the Great East Japan Earthquake. As part of this work, theychange and increasing income inequality. These challenges

provided support for temporary housing cleanup work andare considered by some to threaten the viability of humanity

for the fishing industry in Ishinomaki, Miyagi Prefecture.

and the planet itself. In September 2015, the UN General

Numerous DNP employees also assisted with the clearing ofAssembly unanimously adopted Sustainable Development

temporary disaster shelters in Mashiki, Kumamoto Prefecture,

Goals (SDGs), and resolved to work collectively toward thoseafter their use, and helped support farmers in Aso in the wakegoals throughout global society.

of the April, 2016 Kumamoto Earthquakes. Further social

Enterprises are also being called upon to demonstrate

support in disaster areas will be necessary for recovery goingcreativity and innovation in helping to meet these challenges.

forward, and though our capacity is modest, we will continue a

In carrying out their business activities, enterprises arevariety of efforts to help the affected areas and people achieve

dependent on society for such essentials as human and material

recovery.

resources as well as energy. Enterprises are only viable whensociety is sound. Consequently, the soundness of society mustnot be negatively affected by the process of pursuing thosebusiness activities.
Nevertheless, as enterprises extend their activities acrossthe globe, they are faced as never before with environmental
destruction, human rights violations, labor issues, and otherchallenges.
its CSR Procurement Criteria in 2006, and since then has
collaborated with its suppliers to act with integrity. Moreover,
we are reinforcing these efforts in step with related laws anddevelopment.
In 2016, we performed a thorough review of our CSR
Procurement Criteria, revised them into our current DNPGroup Procurement Guidelines, and began considering thebest form of global management.
With respect to the environment, we have been working to
reduce our environmental impact over the entire process, fromraw material procurement to usage and disposal, to contributeto the formation of a sustainable society.
In FY2016, we began working to meet our FY2020
environmental goals, and were successful in meeting all of ourgoals for the year in such areas as global warming prevention
and reductions in water usage and industrial waste output.

efforts.
For example, DNP was awarded the 9th Annual Work-Life
Balance Award, sponsored by the Japan Productivity Center’sCouncil for Promotion of Work-Life Balance. The award
was in recognition of DNP’s measures to promote workstyleinnovation, diversity, and realization of a healthy and lively
workplace.
Furthermore, at the 26th Grand Prize for the Global Environment Award, hosted by the Fujisankei Communications
Group, DNP was awarded the Japan Business Federation
Chairman’s Award. The award was given to DNP in recognition of its development of a lighting film that can be affixed
to windows to brighten interiors, along with a variety of otherhighly functional films that aim to reduce the impact on theenvironment and help realize a sustainable society.
These honors reflect the dedication of DNP’s forty thousand
employees to its founding ideals and the manifold results each
was able to achieve in his or her capacity. We also believe theseawards reflect the significant contributions that society expects
from us.
DNP will continue to face social challenges squarely, andwill work to be an enterprise that is trusted by society.

Going forward, we will promote a variety of measures from a
medium- and long-term perspective, with the goal of achieving
even greater results.

President

Yoshitoshi Kitajima

04“Today’s Innovation is Tomorrow’s Basic”

regulations and such social trends as international standards

DNP has been recognized by society for its contribution

Top Message

To address these challenges appropriately, DNP established

Recognition from society

“Today’s
Innovation isTomorrow’s
Basic”

Three Corporate Responsibilities—Aiming to maintain the trust of our stakeholders and society—
DNP believes that its corporate social responsibility (CSR) is to maintain the trust of all of its stakeholders.
To meet the manifold expectations of society, to realize a sustainable society and corporate growth, and be
an enterprise trusted by society, DNP is committed to fulfilling three important obligations: value creation,
integrity in conduct, and transparency (accountability).

1

DNP Group Vision 2015 / Code of Conduct

Three Corporate Responsibilities

Value
Creation

Use P&I Innovations to
expand business,
primarily around four
growth areas.

Business
VisionGuiding
Principles

DNP Group Code of Conduct

Integrity in
Conduct

6. Realization of a ‘universal society’
1. Contributing to the development of society
7. Ensuring the safety and quality of our
2. Social contribution as a good corporate citizen
products and services
3. Compliance with the law and social ethics
8. Ensuring information security
4. Respect for human dignity and diversity
5. Environmental conservation and the realization 9. Proper disclosure of information
10. Realization of a safe and vibrant workplaceof a sustainable society

Corporate Governance and Internal Controls System

Management Committee

Inspection(Autonomous
implementation, inspection,
review, improvement)

Guidance
Training

Open Door RoomInformation Disclosure
Committee
CSR-Environment Committee
Information Security Committee
Invention Remuneration
Arbitration Committee
Central Disaster
Prevention Committee
Legal and other main divisions

Reporting
Coordination

Audit
Guidance

Board of Statutory Auditors
Audit
Reporting Assistance Audit Unit

Group Companies

Reporting
Auditors Office

ReportingBusiness Divisions

Head Office

Finally, the third vital corporate responsibility is “being
a company that is accountable and highly transparent.”
DNP achieves accountability by encouraging all
employees, during the course of their regular duties,
to engage in TAIWA with stakeholders, listen to theiropinions, and provide correct information themselves.

Corporate Ethics Committee(Oversight of internal controls)(Accountability)

Operating Units

Transparency

Directors andCorporate Officers
in Charge

To realize its Group Vision, DNP has
established a structure for appropriate
management decision-making, precise
and speedy operational implementation,and oversight and auditing of such
implementation, which we continually seek
to upgrade and improve. In June 2016, tofurther reinforce that structure, we moved toa 12-member board of directors, including
two external directors. Furthermore, in
FY2016, based on the principles of thecorporate governance codes increasingly
being adopted in Japan, we announced abasic policy of actively promoting TAIWA(the Japanese word for dialogue) withshareholders and investors. Moreover, advice
and proposals from the Advisory Committee,
made up of independent external directors,
regarding selection of candidates for director
and director compensation, began to beconsidered and reviewed at management
meetings, followed by discussion anddecision by the board of directors.

06“Today’s Innovation is Tomorrow’s Basic”

Audit

Board of Directors
Advisory Committee

Audit
Accounting Auditors“Today’s Innovation is Tomorrow’s Basic”

General Meeting of Shareholders
Audit

President and Overseeing Directors in Charge

Three Corporate Responsibilities

TAIWA andCooperation

Three Corporate Responsibilities

Three Corporate Responsibilities

2

The DNP Group connects
individuals and society,and provides new value.

DNP Group Vision 2015

Three Corporate Responsibilities

The second responsibility is “practicing fairness andimpartiality in value creation processes.” No matter how
superior or useful to society the value produced is, value iscompromised if, for example, environmental damage occurs
or laws are broken during the value creation process.
Therefore, DNP seeks to fulfill this responsibility by ensuringthat all employees always conduct business with integrity inaccordance with the DNP Group Code of Conduct.

3

Corporate
Philosophy

As preconditions for faithfully fulfilling our Three
Responsibilities, we have established the DNP Group Vision
2015, the foundation of our business activities, and the DNPGroup Code of Conduct, setting forth the conduct withintegrity that all employees must adhere to. The Group Visioncomprises the three elements of Corporate Philosophy,
Business Vision, and Guiding Principles, showing ourcommitment to society, to drive the creation of significant
value that contributes to solving the challenges faced bysociety.

The first and most fundamental responsibility of acorporation to society is “providing new value to society.”
We must make a connection between the offering ofproducts and services necessary to the sustainable
development of society and the growth of the company.
DNP will continue to provide high value which contributes tothe solution of social problems through our Business Vision.

05

The fundamental points of reference for fulfilling these obligations are the DNP Group Vision 2015 and the
DNP Group Code of Conduct. We continue to uphold our founding commitment to “Run a civilized business,”
and this commitment is the basis of a wide range of activities designed to provide new value to society. To
support these activities, we have established a system of corporate governance and internal controls, which
we continually seek to upgrade and improve.

“Today’s
Innovation isTomorrow’s
Basic”

Value Creation in Step with Society
A History of Creating Today’s Standards, by DNP
Since our founding in 1876, we have confronted numerous social problems and issues that had to be addressedto build society amid changing times, and we have delivered product, service, and mechanism solutions to themarket. By quietly drawing close to consumers, enterprises, and society, and promoting new forms of innovation,
we create new values that become the standards of today.

1870
SocialMeiji Restoration, Westernization,
developments
and Modernization

1950
High-growth era

1960
Era of mass
production starts

1970
Second baby boom

DNP’s
CSR andenvironmental
developments

1876
Founded Shueisha (the predecessor
to DNP), began letterpress printing

1945-49
Printed paper currency

1980
Bubbleeconomy1990

2000
Propagation of the Internet
and mobile phones

Diversifying
lifestyles

1993

1972

Launched proprietaryenvironmental
management system

Established Environment
Department

1958
Succeeded in producing prototypes of
shadowmasks used in color televisions

1973-74
Began full-scale production ofmagnetic bankbooks and cards

1983
Developed smart cards

1964
Printed official poster for the Tokyo
Olympics

Began response to climate change

2004

Established CSR
Department

2008

Established CSR Principal Themes

2003
Developed photovoltaic cell materials

PET bottle

Development of the lightweight, eco-friendly
PET plastic bottle, along with more efficienttransportation cost, helps keep beverages
fresh.
1999
Commercialized Li-ion battery pouch

DNP contributes to wider utilization ofrenewable energy by bringing enhanced
functionality and reduced cost to photovoltaic cell materials, including materials
for enhanced conversion efficiency.
2004
Succeeded in forming capillary bloodvessel patterns

DNP not only manufactures smart cards, it has
been involved in OS and application development,
and is a leader in transaction safety.
1983-85
Developed dye-sublimation andthermal transfer printing media

With success in forming capillary blood vessel
patterns, DNP aims to contribute to the life
sciences through applied printing technology.
2010
Introduced e-book sales service

Shueisha was founded with a strong
commitment to the elevation of knowledge
and culture through letterpress printing.
“Self-Help” by Samuel Smiles was abest-seller in Japan and inspired many
young readers. It was the first Westernstyle book produced entirely in Japan,
with cardboard covers developed by
Shueisha.

The company also experimented with printing
on paper containers, vinyl, cellophane, andother materials, expanding its services as a
packaging manufacturer. The evolution of
packaging materials has also played a role in
the popularization of instant ramen noodles,
which are now popular around the globe.

Design: Yusaku Kamekura
Photo direction: Jo Murakoshi
Photo: Osamu Hayasaki

Thermal transfer printing media makes
possible printing of now-ubiquitous bar
codes, while dye-sublimation thermaltransfer printing media led to the boom insticker-printing machines.

These pouches can be easily configured
for specific applications and are now widelyused as a primary component in electricand plug-in hybrid vehicles.

DNP’s hybrid-type bookstores, launchedin 2012, let readers choose the media they
prefer for reading: paper books or e-books.

08“Today’s Innovation is Tomorrow’s Basic”“Today’s Innovation is Tomorrow’s Basic”

DNP was first in Japan to succeed in applied development of the photomechanicalprocess, making domestic production ofcolor televisions possible.

2010

Value Creation in Step with Society

Value Creation in Step with Society

1951
Fully entered the fields of paper
containers and film packaging

Began issuing the DNPGroup Environmental
Report

The trend toward online banking raised thecurtain on the cashless era, with magnetic
cards as a symbol.

In 1946, the Ichigaya, Shibata, and Akita
Plants were placed under the control of the
Ministry of Finance and began printing theSeries A 10-yen note.
1877
Printed a revised and translated
edition of “Self-Help” written by
Samuel Smiles

1998

1997
Developed aseptic PET plastic bottle
filling system
Preform

07

DNP has created packaging, interior and exterior materials
for houses, business forms, smart cards, electronicsrelated materials, information media supplies, and otherproducts and services that are essential for everyday life.
Now we are branching out into media that combine paperand electronics; into the energy field, including photovoltaic
cell materials; the life sciences field, including regenerationof capillary blood vessels; and more.

When it was founded, DNP aimed to “Run a civilizedbusiness.” It supported the foundation building of publishingand information distribution that were essential for Japan’s
modernization. The company’s goal was to engage inbusiness that contributed to modern civilization, and it might
be said that its founding ideal was to contribute to social
development. For approximately seven decades, DNP was
mainly engaged in the printing of published materials, but
after 1950, it extended its printing technology to other fields.

“Today’s
Innovation isTomorrow’s
Basic”New Value to Realize a Sustainable Society
Working Tirelessly to Make Today’s Innovation Tomorrow’s Basic
In 2015, we announced the new DNP Group Vision 2015, which will serve as the basis of our entire range ofcorporate activities. That same year, the 2030 Agenda for Sustainable Development and the Paris Agreement—
global accords aimed at achieving a sustainable society—were adopted. To achieve an eco-friendly society withmutual respect for human diversity, DNP is working tirelessly to create new value, so that today’s innovation canbecome tomorrow’s basic.

2015

2020

The 2030 Agenda for Sustainable Development /Paris Agreement adopted

2030

Opening of the Olympic and Paralympic GamesTokyo 2020

2050

Sustainable Society**Sustainable society: a society that meets the needs of the current
generation without negatively impacting future generations

DNP Group Vision 2015
Business Vision

Guiding Principles

The DNP Group connects
individuals and society,and provides new value.

Use P&I Innovations to expand
business, primarily aroundfour growth areas.

TAIWA and Cooperation

Business Strategy
Knowledge andCommunication

Food and
Healthcare09

Lifestyle andMobility

Environment
and Energy

Growth as an
Enterprise

By combining

1. Value creation through business expansion
centered on growth areas
2. Delivering value to global markets
3. Enhanced value through thorough structural
innovation
DNP has selected specific social challenges
it has the capability to help solve, and has
established growth areas associated withthose challenges

the DNP Group’s
various strengths withoutside ideas, we will create
new value that generates
enterprise growth and

New Value
That Becomes
Tomorrow’s BasicStrengths for Value Creation
Diverse human resources

Diverse supplier relationships

Diverse intellectual property

Diverse business areas

Diverse technology

Tangible and intangible assets

Diverse client relationships

Diverse research areas

Internal/external collaborative power

Sustainable Development Goals(SDGs)In September 2015, all 193 membersof the United Nations adopted the 2030
Agenda for Sustainable Development.
The Agenda’s action plan consists of
Sustainable Development Goals (SDGs).
With the entire world working toward the
17 goals and 169 targets, the hope is torealize a world where no one will be left
behind.
The future society depicted in the
DNP Group Vision 2015 is sustainable,that is, it is an abundant society in which
SDGs have been achieved. As such,
DNP is independently working toward
these SDGs through all aspects of its
business activities.

challenges.

Addressing Social
IssuesSpecifically, we are reviewing all
current CSR activities and businesses
from an SDG standpoint, and will adopt
the same standpoint when considering
new activities and businesses. By
offering society useful new value throughthis process, we will contribute torealizing these SDGs.
We also believe that broadly
publicizing SDGs is a corporate
responsibility. DNP’s booth at EcoPro
2016, held in December of that year,
featured SDG video presentations
as well as exhibits spotlighting therelationship between DNP products andservices and SDGs.

DNP booth at
EcoPro 201610
“Today’s Innovation is Tomorrow’s Basic”“Today’s Innovation is Tomorrow’s Basic”

addresses social

New Value to Realize a Sustainable Society

New Value to Realize a Sustainable Society

Corporate Philosophy

“Today’s
Innovation isTomorrow’s
Basic”

To

2020

and Beyond
Special Features: DNP’s New Value Creation
Today’s society faces many challenges that call out for solutions.
Unless the whole world works together to solve these issues, people’s lives will end up constrained, and it
will likely become difficult for us to bequeath the precious planetary environment, on which our lives depend,undamaged to future generations.
Now, with this reality before our eyes, the world is joining hands, and collaboration to solve these issues is
accelerating.
DNP is doing its part by striving to bring people and society together to provide new value, and contributing to
the realization of a sustainable society.
“Today’s Innovation is Tomorrow’s Basic”

P12-17 Special Dialogue(facilitator)

Executive Director,
CSO Network Japan

Kazuhiko Sugita

Motoharu Kitajima

Mitsuya Ikawa

Takeo Tanaka

Chairman
CSR-Environment Committee
Corporate Officer,
Dai Nippon Printing Co., Ltd.

General Manager,
Olympic & Paralympic Promotion TeamManaging Director,
Dai Nippon Printing Co., Ltd.

Deputy Director, Administration Bureau
Deputy Director,
Games Operations Bureau I
Tokyo Organising Committee of the
Olympic and Paralympic Games

General Manager, Sustainability Dept.
Games Operations Bureau I
Tokyo Organising Committee of the
Olympic and Paralympic Games

Special Dialogue

As an official partner for printing services of the Tokyo 2020 Games, DNP is set to provide a wide range ofSpecial Feature 1: Realizing a Sustainable Society

Special Features: DNP’s New Value Creation

11

We are doing this by promoting innovation through new ideas and creating new products, services, andmechanisms that will be regarded as essential for daily life by people in the society of the future.
In 2020, people from all over the world will gather in Tokyo to celebrate a sporting event held with an emphasis
on sustainability, and this should serve as an opportunity for society to move further in more sustainabledirections.
Our two-part Special Feature takes a closer look at the new value DNP is striving to create in support of 2020and beyond.

Kaori Kuroda

support for smooth management and successful hosting of the games.

12

Realizing a Sustainable Society
The Significance of the Olympic and Paralympic Games Tokyo 2020

pursuing an operational plan that stresses sustainability.
DNP, which is striving to create new value to address social problems, invited several key individuals from theP18-22 Focus on Cases

organizing committee to exchange perspectives on its activities as a Tokyo 2020 Official Partner, in order to gain
insights into how we should contribute to the realization of a sustainable future society.

Tokyo 2020 Official Partner ( Printing Services)“Today’s Innovation is Tomorrow’s Basic”“Today’s Innovation is Tomorrow’s Basic”

The Tokyo 2020 Games aim to be sustainable, and the Tokyo 2020 Organising Committee has formulated and is“Today’s
Innovation isTomorrow’s
Basic”

Special Dialogue

The Tokyo 2020 Games
as a major example ofsustainability

Kazuhiko Sugita: Printing uses

value. Last year, we applied thishave to build a sustainable society.

large amounts of raw materials,

approach to create drink coasters

These two developments signify

including

Kaori Kuroda: A major trend towardthat agreement has been reached

Furthermore,andfilms.

to be used in-house. In our capacity

ink

and

solvent

as a Tokyo 2020 Official Partner

creation of a sustainable society isdeveloping. One example of thisto begin moving toward this goal.

containing a variety of chemicals

for printing services, we will further

There was actually another major

are used in the process of creating

bolster our activities to benefit theis the Paris Agreement adopted atpiece of news in September 2015,

printed materials. Because we areenvironment.

the 2015 United Nations Climate

as the UN was adopting SDGs.

in that kind of business, we have a

Tanaka: With respect to waste,

Change Conference, also known

Japan’s

Pensionresponsibility to society to reduce

one of the challenges of the Tokyo

as COP21, held in December 2015.

Investment Fund (GPIF) signed theour impact on the environment, and2020 Games will be the huge waste

We recently heard President Trump

UN’sannounce that the US will withdraw

Investment (PRI). These principles

from the accords, but the trend

prioritize investment in companies

toward sustainability seems unlikely

fromto change. The IOC is also strongly

social, and corporate governance—stressing the importance of holding

standpoint. This decision by GPIF,a sustainable games. With the Tokyo

which is one of the world’s largest

2020 Games just three years away, I

pension funds, is clearly going towould first of all like to ask how theinfluence future investment patterns.

organizing committee sees this.

In view of these developments, I

Mitsuya Ikawa: As the NLI Researchthink it is fair to say that movements

Institute report points out, 2015 wastoward sustainability in Japan anda turning point in the overall trend

globally have entered a new stage

toward sustainability. Two significant

since 2015.

events took place that year. One

Takeo Tanaka: In 1990, the IOC

was the unanimous adoption of

proclaimed the environment as a

the 2030 Agenda for Sustainable

third pillar of the Olympic Movement,

Development at the UN Sustainable

after sports and culture. Moreover,

Development Summit. The Agenda

among the 40 recommendations

lays out 17 Sustainable Development

contained in Olympic Agenda 2020,

Goals (SDGs) with 169 targets. The

adopted by the IOC in December

other event was, as Ms. Kuroda

2014,

mentioned, the adoption of the

support for a sustainable Olympics.

Paris Agreement. There is a global,

The Agenda calls for including

shared awareness that if we are tosustainability in all aspects of thepass on the planetary environment

games (Recommendation 4) as well

Government

Principles

an

are

for

Responsible

ESG—environmental,

clear

statementsofas within the Olympic Movement’s
daily operations (Recommendation
5). The Tokyo 2020 Games will
be held against a background ofthese international trends and IOC
policies, but to ensure that thegames

emphasize

sustainability,

the organizing committee is in theprocess
measures.

offormulating

specificof food. During the London 2012

Design: Yusaku Kamekura
Photo direction: Jo Murakoshi
Photo: Osamu Hayasaki

Games, an estimated 15 million
meals were supplied, with two million

Supporting the gameswith advanced printing
technologies

meals delivered to the Olympic Village

Kuroda: In October 2016, DNP
became an official partner of theTokyo 2020 Games. What are you
planning as you work toward asustainable hosting of the games?
Motoharu Kitajima: Sustainability
is being pursued in a wide rangeof fields. In DNP’s case, we are
a Tokyo 2020 Official Partner for

1964, with poster and ticket printing.
Today,

printing

technology

hasadvanced to an unimaginable degreecompared to what we had then, andwe can now offer highly advanced
printing services that deliver security
and peace of mind with suchfeatures as personal data protection
and counterfeiting prevention. Our
goal is to make the greatest possible
contribution to the success of thegames by applying our cutting-edge
technology and expertise.

a sustainable procurement code in

amount of discarded food. During

March 2017 which will contribute to

the Tokyo 1964 Games, freezing

SDG 12, which calls for responsible

technology became a legacy. I hopeconsumption and production. The

fresh foods can be preserved longer

code applies to procurement by theduring the Tokyo 2020 Games withorganizing committee, but we hopeadvances in film technology.

enterprises and local governments

at the distribution and consumption

government has also announced

stages.

a policy of pursuing these SDGs

Ikawa When you consider Japan’snationwide. How do SDGs figure intechnologies and services in light of

we have been promoting efforts in

the Tokyo 2020 Games?

the SDGs, Japan has reason to be

this direction for a long time. We

Tanaka: After the IOC released its

proud of many when compared toestablished Group Guidelines for

Olympic Agenda 2020, it created anthose of other countries. Although

Procurement of Paper for Printing

IOC Sustainability Strategy. SDGs

SDG 6 calls for clean water andand Converting in 2012 to contributewere positioned at the core of thesanitation, Japan’s water is alreadyto the sustainable use of forest

Olympic Movement, and several ofvery pure and its toilets are extremely

resources, and we are committed tothese were given special emphasis,clean. This will certainly be evident tousing paper from certified forests. We

including goodhealth and well-being

foreign visitors not only in the Olympic

are also using specialized equipment(SDG 3); quality education (SDG

Village, but in stations and airports,

to recycle and reuse solvents at our4); gender equality (SDG 5); peace,

hotels, and elsewhere in the cities.

manufacturing plants. Along withjustice and strong institutions (SDG

We hope that nations upgrading

efforts to reduce waste products, we16); and partnerships for the goals

their water supply and drainage

are recycling margins and surplus(SDG 17). In January 2017, theinfrastructure will take notice of

portions of paper from our plants,

organizing committee issued the firstJapan’s advanced technology.

and have built an “upcycle” system

draft of a sustainable management

Kuroda: DNP’s brand statement is

for remanufacturing paper with newplan for the Tokyo 2020 Games.

“Today’s Innovation is Tomorrow’sinterest in the games, includingrole in the Olympic Games Tokyo

shelf life and thereby reduce thea moment ago. The Japanese

announcement materials to generate

nation. We also played a supporting

SDGs as we do so. We also publishedthe manufacturing stage but alsoofmaterials for visitors from every

meals with a special film to extend

Kuroda: SDGs were mentioned

technology, as well as their safe
creationthe plan, and will link the contents tobelieve that referring to the codeanti-counterfeiting
andloss, it should be possible to coverConsidering what can andshould be done, with SDGs as
metrics

print event tickets and personal IDs

management,

Going forward, we will add detail towill also use the code actively. We

printing services. Our role is toincorporating

alone. As a measure to combat food

Coasters manufactured with DNP’s recycling system

will contribute to the realization ofa sustainable society, not only at

14“Today’s Innovation is Tomorrow’s Basic”“Today’s Innovation is Tomorrow’s Basic”

paper

Special Feature 1: Realizing a Sustainable Society

Special Feature 1: Realizing a Sustainable Society

13

intact to the next generation, we will

“Today’s
Innovation isTomorrow’s
Basic”

Special Dialogue

Basic.”

I

believeyourongoing

the SDG outlook.

where DNP can exhibit its uniqueand specifying measures to avoid or

inclusive design, and a barrier-freequite

Kuroda: How does DNP measurestrengths. We believe SDGs are an

cut those emissions, as well as how

environment, and we have included

consistent with SDGs. How do you

the effectiveness of its current

effective index for determining theresidual emissions can be offset.

persons with disabilities in ourview this?

corporate activities in contributing todirections we should take and the

We are taking a similar approach todeliberation process. We learned that

Kitajima: DNP has so far tended

a sustainable society through SDGs?

challenges we should address withresource management, calculating

we can achieve better results with a

Sugita: Mapping the SDG concept

our inherent strengths.

estimated waste emissions andmore detailed grasp of degrees ofonto DNP’s current activities is very

considering how those emissions

disability, and that there are multiple

revealing. For example, we are using

might be cut. This is the process

options for achieving those results.

we’re in the middle of at thisIkawa: So concrete preparations

moment. It’s especially important

should be made based on detailed

corporate

activities

areour technology and expertise to

Joining hands to achievesustainability

create a cultural heritage archive.

that everyone gets involved. The

information.

andefforts to manage the games are

medals for the games will be madeKitajima: Yes, it’s important toworking to convey them to a wide

already under way. Can you give us

from metal taken from the so-called

conduct

audience is consistent with SDG

some examples?

“urban mine” of currently unused

gathering, manage the information4, which calls for quality education.

Tanaka: The first draft plan for thesmall home appliances and mobilesafely and reliably, and respond to it

SDG 11—creating sustainable cities

games that I mentioned, which aims

phones. Even after the games

in a meticulous manner. Additionally,

and communities—includes a target

for an emphasis on sustainability, is

are over, we hope their legacy will

many people with disabilities fromfor the preservation of the world’s

based on five major themes: climate

get lots of people thinking about

Europe and the US make their way

cultural heritage, which is alsochange and carbon management;sustainability.

around without an assistant, which

DNP employees experience using wheelchairs

to develop products and services

consistent with what DNP is doing.

resource

Ikawa: ISO 20121 is an international

means we have to be very thoroughactivities and a huge amount offrom a standpoint of how they solve

With respect to SDG 12, which calls

atmosphere, water, greenery, andstandardin our preparations.

volunteer activity is essential for the

problems for our clients. But lifestyles

for responsible consumption andbiologicalmanagement that was used, for

Sugita: I’ve heard that the term

games. Ninety thousand publically-and values are changing greatly, andproduction and which Mr. Tanaka

human rights, labor, and fair businessexample,2012“Paralympics” first came into use atrecruited

many social problems are reflected

mentioned just now, our printing

practices; and engagement, that

Games. When the IOC selected

the Tokyo 1964 Games. In that sense,

support at approximately 40 venues

in the SDGs. We want to adjust ourbusiness is actively making use ofis, participation, collaboration, andTokyo to hold the games, we

the Tokyo 2020 Games seem quitewith competition in about 340 sport

point of view and not only consider

materials derived from vegetable oil.

messaging. In the second draft,declared that we would also use

significant. We’re getting help from acategories. Sports volunteers are

our clients, but look beyond themFor example, we print with vegetable

which we are working on now, we arethis standard. Going forward, we will

number of consulting organizations

not yet nearly as active in Japan as

to end-user consumers and society,oil-based ink, and can do so on

specifying how carbon management

formulate specific measures in line

for our own efforts in this cause.

they are in Europe and the US. We’reand create value in collaboration

film manufactured from blackstrap

should be promoted to deal with

with the standard, with the goal that

The law against discrimination on

hoping the Olympic and Paralympic

with our partners to help solve social

molasses, a byproduct of sugarclimate change, using numericalpeople will judge the Tokyo 2020

the basis of disabilities was enacted

Games Tokyo 2020 will be an

problems. We believe this value-cane processing. As we review ourobjectives and concrete measures.

Games as being the most advanced

in 2016. We hope the barrier-freeopportunity for sports volunteering

creation aspect of our corporate

business activities from an SDG

We are calculating estimated CO2

games so far in terms of attention

trend will accelerate as the games

to root itself in society.

activities is definitely consistent withperspective, it will become clear

emissions for the games as a whole,

paid to sustainability.

approach.

Tanaka: We hope to generate moreculturalheritagemanagement;
diversity;

respect

the
for

for
at

sustainable
the

event

Londondetailed

information

volunteers

will

providerecognition of the importance ofUniversal design requires
detailed information collection
and utilization

An intangible legacy isimportant for creating futureliving environments

TAIWA, or dialogue, in Japan. As

Kuroda: The Paralympics have

Kuroda: The Tokyo 2020 Games

involvement by all of our stakeholders

been a major topic in Japan since

will be an enormous event, but

is important. We’ve invited comments

around the time of the London 2012

beyond that, I think they will be anfrom the public and are incorporating

Games. Tell us something about theopportunity for Japan as a nation andthe opinions of individuals from

Paralympics.

a society to take a new step toward

many

Ikawa:

This

a

of

standpoints.

Wea sustainable future. Mr. Tanaka justhope the process of dialogue itself

mentioned the term “legacy,” what

will become established as one ofaccommodations for the athletes.

sort of legacy do you think the Tokyo

the legacies of the games. Also,

We want the Olympic Village to meet2020 Games will leave behind withwithin our mechanism to ensure theall the athletes’ needs.

respect to realizing a sustainableeffectiveness of the procurement

society?

code, we have set up a channel for

Ikawa: I’m also involved in volunteer

complaints. I was very impressed

incorporate

area

different

with

Kitajima:

anprocurement code, it’s clear that

includinglot

is

we develop our operating plan andchallenges,

We

are

working

universal

todesign,16“Today’s Innovation is Tomorrow’s Basic”“Today’s Innovation is Tomorrow’s Basic”

Kuroda: I believe that concrete

treasuredSpecial Feature 1: Realizing a Sustainable Society

Special Feature 1: Realizing a Sustainable Society

15

Progressively preserving humanity’s

“Today’s
Innovation isTomorrow’s
Basic”

Special Dialogue

to read in DNP’s 2016 CSR reportof the due diligence you carry out
relating to human rights. I hope
you will extend these efforts further
to include mechanisms for relief.
I also understand that “relief” wasa keyword at the UN Forum on
Business and Human Rights, held in
November 2016, and it occasioned
much discussion. I believe these will
also become part of the legacy of thegames.
Sugita: If we look beyond the Tokyo
2020 Games to the society of the
future, I think the intangible legacy
will be even more important than
the tangible legacy. The medals
themselves,

made

from

metalsrecycled from the “urban mine,”
are an example of the tangible, but
possible the creation of such medals
is a kind of intangible legacy. We
need to look not only at our own
procurement, but that of our entire
supply chain, in terms of whether or
not it takes environmental protection
andcreationofasustainable

society adequately into account.
We regard human rights, whichanother important theme. We wantto contribute to the creation of social
mechanisms by fostering this sort ofintangible legacy.

Innovation is Tomorrow’s Basic.”
My final question is, what is DNP’sguiding vision for creating tomorrow’s
sustainable society, and how do you
plan to leverage that vision as aTokyo 2020 Official Partner?
Kitajima: Mr. Ikawa earlier statedthat 2015 was a watershed year for
global promotion of sustainability.
That same year was a major turning
point for DNP as well. In October
2015, we revised our Group Visionandestablished

ourCorporate

Philosophy as “The DNP Group
connects individuals and society,and provides new value.” In termsof our Business Vision, we will use
P&I Innovations to expand business,
primarily around four growth areas:
Knowledge

andCommunication,

Food

and

Healthcare,andMobility,andLifestyleEnvironment

and Energy. Moreover, we haveestablished TAIWA and Cooperationas our guiding principles. Simply put,
this means DNP will use the evolutionof innovation to offer new value tohelp meet the challenges that must
be overcome if a sustainable society
is to be realized, which is the topic
of today’s dialogue. Listening tothis discussion, I’m struck by how
much the DNP vision shares with thevision of a sustainable society that

how we can contribute and act as areliable partner.
Kitajima:

When

Tomorrow’sdelivering

weBasic,
new

value

refer
we
we

to

mean
have

created to consumers, and ultimately

Focus on Cases

establishing that value as part of theculture. That’s what DNP is striving
to accomplish.
Kuroda:This

discussion

hasconvinced me that the Tokyo 2020
Games, which will be a focus of
global attention and full of excitement
for everyone, will also be a major step
toward the creation of a sustainable
society. I also believe that everyone
at DNP will contribute greatly to

Toward a Rewarding
Future for All
Creating new value in the field of Knowledge and Communication

creating and delivering value, andcreating both an intangible andtangible legacy.
This concludes our discussion, andI'd like to thank everyone for their
participation.

DNP is creating new value aimed at realizing a future society where everyone can live rewarding lives, in safety
and with peace of mind.
We consider every aspect of our business activities in terms of Sustainable Development Goals (SDGs), and weare working to create products, services, and mechanisms useful to the future, as well as to lay the foundations
for a society that is friendly to people and the environment.
By leveraging DNP’s accumulated strengths and promoting new forms of innovation, we will contribute to therealization of a world that reflects the SDG ideal of “no one will be left behind.”

the Tokyo 2020 Games are aimingfor. As an official partner, we hope

P19

Universal Design

P20

Regional Co-creation Business

Sugita: DNP is in the process of

P21

IoST (Internet of Secure Things®)

creating new value to address social

P22

Settlement Services

to gain a wide range of experienceand learning while acting in a reliablecapacity.

issues, but we still have much to learn
and many challenges to overcome.
The upcoming Tokyo 2020 Gamesare an opportunity for us to consider

18“Today’s Innovation is Tomorrow’s Basic”“Today’s Innovation is Tomorrow’s Basic”

were also mentioned just now, as

Kuroda: DNP’s motto is “Today’s

Special Feature 2: Toward a Rewarding Future for All

Special Feature 1: Realizing a Sustainable Society

17building a social system that makes

Delivering new value toconsumers and establishing it
as part of the culture

“Today’s
Innovation isTomorrow’s
Basic”

Focus on Cases

Facilitating participation for all through theprinciples and technology of universal design

Bringing creative ability and attractive
content to urban design of the future

A society where everyone can live actively and with peace of mind will require mutual understanding andcommunication that conveys information and thoughts clearly and appropriately. By promoting accurate, clear,user-friendly communication for everyone in all kinds of situations, without barriers of language or disability, of age
or gender, DNP is working to help build a world where the ideals of the UN’s Sustainable Development Goals—“No
one will be left behind”—can become reality.

One of the challenges facing Japan is to reverse the concentration of people and economic activity in Tokyo, andstimulate the nation’s outlying regions.
To contribute to the creation of attractive living environments that will help revitalize rural Japan, DNP is leveraging
its creative strengths and the resulting content to expand into the regional co-creation business.

Achieving Universal Design (UD)*through understanding of diversity
and user verification*Universal design (UD): design of equipment, buildings, living spaces, information, etc. withuser-friendliness for as many as possible built in from the start

Regional co-creation through the
popularity of comics and sports
An increasing number of local governments are using thepower of sports for such purposes as attracting tourists andgenerating employment. The Japan Sports Agency is alsousing strategic combinations of local resources and sports
to promote regional economic revitalization. In June 2017,
DNP started marketing a publication in comic-format entitled"Creating Regional Futures through Sports", which wasorginally planned and supervised by the Japan Sports Agency,
for both East and West Japan versions. This publication
introduces successful instances of regional revitalization
with sports as the principal tool. The aim of presenting

these cases in an easily understood format was to foster
participation by local governments throughout Japan, andthereby achieve regional revitalization. To build the attractive
living environments of the future, DNP believes it is essential
to appeal to children, who are the coming generation. In
addition to sales through book stores nationwide, “Creating
Regional Futures” is available at “honto”, a hybrid-type
general bookstore offering both electronic and paper editions.
In addition, the combined strength of the DNP Group will be
leveraged to mount a broad-based promotional effort. Goingforward, DNP will leverage its creative strength to help identify
attractive regional aspects and disseminate information about
them, thereby contributing to regional revitalization.

19

Special Feature 2: Toward a Rewarding Future for All

Special Feature 2: Toward a Rewarding Future for All

In 2008, DNP announced its Declaration of Universal
Design and its Five Principals of Universal Design. It
has promoted UD across a wide range of businesses,
including packaging, printed materials, websites, videos,and spaces. One example is Color Universal Design(CUD), which focuses on the use of color and contrast
to ensure information access for all, including individuals
with some form of color blindness.
In 2013, DNP Communication Design (DCD) was

recognized as the first enterprise to receive the newlyestablished Color Universal Design Management System(CUDMS) Certification from the non-profit Color Universal
Design Organization. And in 2015, DNP was also the firstenterprise to receive user-verified UD certification from
Jitsuken, an organization that conducts research into
the UD user experience. Publications that bear thesecertification marks make it possible for more people
to have easy access to information. Moreover, DCD ismaking ongoing efforts to enhance understanding ofdiversity and UD, including regular diversity workshops
and CUD seminars with a wide range of invited speakers.

20“Today’s Innovation is Tomorrow’s Basic”“Today’s Innovation is Tomorrow’s Basic”

MS-01000000
CUDMS certification markUser-verified UD certification markDiversity study group

Masakazu Matsukawa
General Manager, 1st Directions Dept. Tokyo 1st Planning Division, DNP Communication Design Co., Ltd.

Voice

UD is a 21st-century social concept. The 20th century saw the advent of many things that made life moreconvenient, including information. If the initial designs were not sufficiently tested, people were expected to use
the item in a way that conformed to it. On the other hand, those who could not do so were expected to put up
with the inconvenience. In the 21st century, computer and information technology have made life both freer andfaster-paced. Things that are difficult to use and understand are being weeded out, and replaced by the conceptthat things should conform themselves to people. We are working actively to understand human diversity andsolve problems before they happen with UD based on thorough user testing. By pursuing manufacturing thattakes everyone into account, DNP is contributing to the realization of a society in which everyone can participate.

Keynote address by Daichi Suzuki, Japan Sports Agency Commissioner, at a seminar on regional revitalization throughsports held at DNP Plaza (June 29, 2017)

Naoki Wakabayashi
General Manager, Business Development Division, Publishing & Media Services Operations

Planning and Supervision:
Japan Sports Agency

Voice

In line with the Japan Sports Agency’s strategic synthesis of local resources and sports to promote regional
economic revitalization, we proposed that DNP not only print the books, but promote them through our regional
co-creation business. To reach more people in local communities with sports content, we published the books
in retail format, so more young people would take a look at them and consider how their own communities
could be stimulated through sports. The books’ appeal lie in the way they were produced by local university andvocational school students under the direction of professional editors, utilizing the communicative power of comic
books, with rich storytelling that conveys the local experience. Going forward, this approach will contribute to therevitalization of other local communities and to conveying their appeal.

“Today’s
Innovation isTomorrow’s
Basic”

Focus on Cases

Adding S (secure) to IoT for a societyof safe, reliable data exchange

Richer lifestyles with diversified,secure settlement services

The Internet of Things (IoT), in which appliances, machines, and other devices exchange data, is expected toenrich the lives of consumers and greatly raise enterprise productivity. However, if IoT is to serve as social
infrastructure in a safe, secure way, security measures will be critical for protecting it from a variety of threats.
Using advanced security technology accumulated over 140 years of controlling and managing important
information, DNP can protect the information that things and people exchange over the Internet.

Settlement services are part of the infrastructure necessary for economic activity. They are also an importantmeans for making life richer and more convenient for consumers. Broadening access to settlement services
also expands participation in economic activity for everyone.
By combining its accumulated security technology with advanced digital technology to provide diversified,secure settlement services, DNP is working to build a society where more people can participate in economic
activity, including people without ready access to retail shopping as well as senior citizens.

IoST(Internet of Secure Things®)

How IoST protects data sent to and from things③
Aggregated clouddata analysis

21

Diversified settlement services
based on security technology
Electronic settlement brings us closer to the cashlesssociety. The Japanese government has included
electronic settlement in its growth strategy through 2020
and is calling for its promotion. Using security technology
accumulated through its smart card business, DNP iscontributing to creation of a cashless society by offering
settlement infrastructure and solutions. DNP’s Global
Brand Prepaid Cards electronic settlement service, which
can be used for prepayment at retailers belonging to suchinternational networks as VISA, Mastercard, and JCB,

is just one example. In collaboration with Nihon Unisys,
DNP offers a cloud-based solution for card issuers whoneed the basic functions required to obtain and manageinternational-brand prepaid services. Global Brand
Prepaid Cards can be used anywhere in the world, andunlike a credit card, there is no pre-screening, and wider
eligibility by age, opening the way to cashless settlementscommensurate with individual ability to pay. Goingforward, there will be even more options for settlement,such as Apple Pay, from smartphones as well as wearable
and other smart devices. DNP will continue to offer
settlement methods suited to increasingly borderless,diverse lifestyles through multiple settlement platforms.

IoST platform and IoT services

DNP
IoST platform

IoT service

22

Encryption key②
Aggregate data
to cloud via
the Internet

Cloud

AI/machinelearning/
deep learning

Individual
data
writing

IoST①
Sensor datafrom things

Certification
IoST cloudHigh-security
IC chip④
Actuate depending
on results(optimized feedback)Encryption key,etc. renewal/
maintenancerequests“Today’s Innovation is Tomorrow’s Basic”“Today’s Innovation is Tomorrow’s Basic”

Data

Special Feature 2: Toward a Rewarding Future for All

Special Feature 2: Toward a Rewarding Future for All

IoT is transforming society. With advances in technology,
it is becoming possible to monitor and control devices,and to charge fees based on degree of use. At thesame time, attacks on data generated by IoT devices,using improper alteration of data and imposter devices,
are becoming a growing threat, and society increasingly
requires stronger security.

Among the many possible pathways to such security,
DNP has chosen to use the expertise and technology
it has accumulated through its smart card business asa base for IoT plus S (secure) services. Specifically, theservices are provided through a device-resident IC chiplike those embedded in ATM cards and smartphone SIMs.
Each chip carries an encryption key to prevent alterationof data exchanged over the Internet, and eliminate thepossibility of imposter devices. By leveraging its security
expertise, DNP is creating Tomorrow’s Basic, a society
where the convenience of IoT will be part of everyday life.

IoT
service cloud
Encrypted
communication

Secure data
communication
IoT device

Supply &implementation

Noriyuki Imai
General Manager of IoST Platform Division, Communication & Information Center, Information Innovation Operations

Voice

IoT devices are poised for explosive growth, with 53 billion devices in existence by 2020, according toInformation and Communications in Japan 2015, a white paper issued by Japan’s Ministry of Internal Affairs andCommunications. Using technical expertise in software development, card development, manufacturing, andissuance, and network issuance and verification acquired through its smart card business, DNP is managing IoT
device data securely to make possible safe, secure, and reliable information communications. And with respect toa wide range of consumer and social areas, DNP is leveraging its strengths to create new value and new services
aimed at serving as the foundations for diverse activities by consumers and society.

DNP Cloud Payment Service for smart devices

Masaki Kawanishi

Voice

General Manager, Marketing & Economic Platform Division, Communication & Information Center, Information Innovation Operations

Ahead of the 2020 Tokyo Olympic games, the government of Japan has designated a transition to cashless
settlement as part of its national growth strategy. This is just one sign that the move to electronic settlement
is certain to accelerate. “Electronic settlement” covers a wide range of settlement modalities: plastic cards,
smartphones and other smart devices, Internet-based electronic commerce, and more. With the evolution oftechnology, electronic settlement pathways seem certain to diversify rapidly. Going forward, DNP will incorporate
new technology into its existing expertise to offer new settlement services. And as we move toward a cashlesssociety, we are contributing to the formation of new economic infrastructure for Japan by continuing to offer
settlement services that are safe and convenient for all consumers.

CSR Activities at DNP
Establishing Principal Themes—Continually promoting high-priority activities—
Enterprises depend on society for the human resources, raw materials, energy, and other inputs required to carryout their business activities, and this is only possible when society is sound. To ensure that both society and DNP
can continue to grow in a sustainable manner, the company has identified 11 Principal Themes that it is pursuingthrough its activities.
●Management policies●Nature and scope ofbusiness

Contributing to the Development of Society

The United Nations●
Global Compact●Strengths

SDGs●

・Assets

ISO26000●・Human resources

ESG/SRI●・Manufacturing sites
and sales offices
・R&D facilities

See pages 11-22

Responsibility #2

Respect for Human
Dignity and Diversity

Stakeholder●
opinions

・Intellectual property

See page 25

etc.

Realization of a
Safe and Vibrant
Workplace
See page 26

・P&I innovation

Ensuring the Safety andQuality of Our Products
and Servicesetc.

Principal CSR activity themesContinuous
improvement

Ensuring Information
Security
See page 28

See page 27

Promoting Social
Responsibility throughthe Supply Chain
See page 29

See page 31

Responsibility #3

Proper Disclosure ofInformation

See page 30
Starting on page 25, we
provide an overview ofactivities in FY2016 (Apr. ’16–
Mar. ’17) for each Principle
Theme. A detailed CSRManagement Report (targets
and results) is provided
starting on page 35.

See page 32

Foundations of the Three Corporate Responsibilities

The UN’s Global Compact (GC) calls upon enterprises and organizations to demonstrate responsible, creative leadership, act asa good member of society, and take the initiative to participate in the creation of global structures to realize sustainable growth.
In July 2006, DNP announced its support for GC and its 10 principles relating to human rights, labor, the environment, and anticorruption, and is working to reflect their spirit in its group management. We also participate in Global Compact Network Japan, a
network of local enterprises that support GC, and are undertaking to coordinate with other Japanese enterprises while promoting
GC support activities.

Compliance with the Law
and Social Ethics
See page 33

Development of a
System for BusinessContinuity
See page 34

24
CSR Activities at DNP

CSR Activities at DNPSocial Contribution as aGood Corporate Citizen

Environmental
Conservation andthe Realization of a
Sustainable Society

Establishing Principal Themes

Establishing Principal Themes

23

DNP has established 11 Principal Themes to be promoted
in our CSR activities.
In establishing the Principal Themes, we consider DNP’s
management policies, our strengths, and other relevant
factors. We then identify issues for consistent, focusedaction, and carry out a multi-faceted examination of theirimportance and priority. At the same time, we establish
the Principal Themes for our CSR activities throughcomprehensive analysis from a social perspective. Ourreference points here include relevant international
treaties and agreements, centering on the 10 principles of
the UN Global Compact, Sustainable Development Goals(SDGs), and ISO 26000 international guidelines for social
responsibility; social challenges regarded as important forsocially responsible investing (ESG/SRI); and stakeholder
opinion.
DNP establishes targets relating to each of its Principal
Themes, and works through the PDCA (Plan-Do-CheckAction) cycle every year, checking and evaluating ourachievements, and setting targets for the following
fiscal year. This helps us to continually improve our CSR
activities.

Responsibility #1

Report on Activities under Each Principal ThemeTOPICS

Offer workstyle innovation to enable DNP to
respond swiftly and flexibly to changing social
environments, and implement measures toimprove job satisfaction for every employee so as
to generate popular momentum toward creating
an invigorated, high-performance company.

FY2016(Apr. ’16–Mar. ’17)
Targets● Continue activities in each organization basedon plans to realize workstyle innovation.
● Continue progress survey of workstyleinnovation; carry out improvements based on
the results.

FY2016 Results● Continued activities in each organization
based on plans to realize workstyle innovation.
Labor and management monitored progress
twice through the Productive Time Resources
Project.
● Carried out progress survey of workstyleinnovation; implemented improvements
based on the results, as well as further
encouragement measures.

FY2017
Targets● Continue activities in each organization basedon plans to realize workstyle innovation.
● Enrich full participation of worksite unit activities
and achieve target for mutually confirming andsupporting use of paid leave.

The goal of DNP’s workstyle innovation activities, whichbegan in 2009, is to efficiently use time resources
to enhance job value-added and enrich employees’
personal lives. Each worksite unit is promoting their own
activities, drawing up plans in line with policies set by the
top management of their operation or group company,
for full participation with independent efforts.
To further encourage workstyle innovation at each
worksite during FY2016, the Workstyle Innovation
GOOD AWARD was introduced. This award recognizes
outstanding workstyle innovations, selected by
employee vote, from a wide range of activity cases.
Grand prizes were awarded in three divisions—
Manufacturing, Sales, and Staff—and an awards
ceremony was held.
◆M anufacturing Division: Paid Leave Utilization
Project
Promoting the use of paid leave for section staff bychanges in leaders’ working system◆S ales Division: Automating Routine Work
Enhanced operational efficiency through revised
management processes, from order receipt toprogress monitoring◆S taff Division: Improving Maintenance Operations
using IoT
Enhanced operational efficiency and techniquetransmission for maintenance by linking distant sites
with tablet terminals and video communication

FY 2016

Mid-Range
TargetRespect for Human Dignity and Diversity

Encourage diversity in employment:● Greater participation by women● Employment for persons with disabilities● Greater participation by contracted employees
and senior staff● Employment of non-Japanese citizens● Trained 22 female mentors and 16 promotion
leaders through DNP’s Diversity Promoter
Training Program.
● Established headquarters Diversity Promotion
Office and divisional and group company
Diversity Promotion Committees.
● Carried out career development support
training for all managers overseeing female
employees with executive potential.

FY2017
Targets

Implement measures in accordance with the Act
to Advance Women’s Success in Their Working
Life (action plan goal: double the number of female
section heads or higher by the end of FY2018).

TOPICS

Activities to promote greater
participation by women

DNP respects human diversity and works to promote theformation of new values through mutual acceptance ofdifferences.
In April 2016, DNP formulated an action plan based on
the Act to Advance Women’s Success in Their Working
Life, and established a head office Diversity Promotion
Office as well as Diversity Promotion Committees in each
operation and group company.
Action Plan
◆ Establish training programs to enable women to
assume key management posts.
◆ Introduce and review a mentoring system bymanagers to support mid- to long-term careerdevelopment for female employees.
◆ Create mechanisms to encourage active development
and advancement for female employees.
◆ Workstyle innovation to actively support work-lifebalance.
◆ Improve workstyle for female employees, including
reduction of overtime.
Efforts in line with the action plan during FY2016 included
career development support training for 245 managers
overseeing female employees with executive potential. The
training covered such topics as career plan development
for subordinates and mentoring skills. At the same time,
we carried out training for next-generation female leaders,
as well as diversity promotion leadership training fordivision managers, who are responsible for promoting
diversity within their units. We are also actively promoting
development and promotion of female employees.

Award ceremony

Number of WorkstyleInnovation GOOD
AWARD entries

122

Realization of a Safe andVibrant Workplace

DNP believes that to provide useful newvalue to society, enterprises must above allprovide safe and vibrant work environments
for their employees.
We focus on what is needed to generate
motivation in each of our diverse employees
and enable them to fully demonstrate theircapabilities, and based on an understandingof current conditions, we formulate
measures for improvement.

26
CSR Activities at DNP

Implement measures in accordance with the Act
to Advance Women’s Success in Their Working
Life.

FY2016 Results

CSR Activities at DNP

FY2016(Apr. ’16–Mar. ’17)
Targets

25

TARGETS & RESULTS

Workstyle Innovation
Workstyle Innovation GOOD AWARD

Realization of a Safe and Vibrant Workplace

245

Number of managers
participating in careerdevelopment support training
for subordinates

TARGETS & RESULTS

Mid-Range
TargetRespect for Human Dignity
and Diversity

The DNP Group Code of Conduct states that
respect for human rights is of the utmost
importance. It stipulates respect for diversity
and requires disciplined action in its support.
As such, we are making active efforts topromote diversity and achieve normalization,
introduce measures to promote greater
participation by women, and provide
employment and expanded job scope topersons with disabilities.

CSR Activities at DNP

Report on Activities under Each Principal Theme● Held three internal training courses.
● Served as member, Nippon CSIRT*
Association.

Raise level of understanding and training withrespect to network security measures.

* CSIRT: Computer Security Incident Response TeamFY 2016TARGETS & RESULTS

FY2016 Results●H eld Product Safety Innovation Practices
Committee (four meetings), to verify and improve
operational flow. Created English-language productsafety training materials for international production
locations, and enhanced training by local staff.
● Held inter-departmental Frontline Practices
Committee meetings (64 meetings).
●S urveyed all group companies to assess
implementation status of design reviews in new
business, and shared successful model cases;
strengthened process from the development stage.

FY2017 Targets● Reinforce quality assurance and product safety
management structures across the Group, as
well as inter-departmental activities to enhancequality and product safety and ensure preventionof major product quality accidents and accidents
relating to product safety.
● Continue holding inter-departmental Frontline
Practices Committee meetings.
● Through quality system verification, strengthen
efforts from the development stage to improve
quality and safety in new businesses.

Inter-departmental activities toenhance safety, quality, and efficiency

One of DNP's basic policies is to gain the trust of society
by providing products and services that combine printing
and information technologies to solve social problems,and by maintaining and enhancing the quality of those
products and services. As such, DNP is pursuing
product- and service-related quality activities in each of its
business areas. In addition, we established a department
to coordinate such activities across the entire Group, andto prevent the occurrence of major accidents, we arepromoting reinforced design management and quality
enhancement activities to prevent recurrence.
Sharing successful model cases relating to production
processes is a key aspect of inter-departmental quality
enhancement activities. Through the implementation ofeffective methods from other business areas within theGroup, overall manufacturing safety and product quality
is enhanced. Furthermore, manufacturing specialists
from other business areas serve as members on Frontline
Practices Committees, which develop improvement
measures in each factory through actual use of machinery.
This inter-departmental approach facilitates improvementsfrom a wider base of expertise and is proving highly
effective. In FY2016, approximately 1,100 people from 190
company units served on these committees.
Moreover, employees are engaged in unit-specific,
independent e-learning to enhance their understanding
and awareness of product safety and product liability.
During FY2016, 22,788 employees completed at least oneof these courses.

Strengthening cyber security
measures

As attacks on computer networks become moresophisticated and complex, conventional responses inwhich the threat is prevented from gaining entry to the
network, are becoming inadequate. At DNP, our security
solutions provide multilevel protection, including inboundmeasures to cover the vulnerability of conventional PCs
and guard against viruses and other threats; internalmeasures, which limit the scope of damage if the
network is breached; and outbound measures, which
prevent improper movement of information outside the
network. DNP practices Security By Design, with security
features incorporated from the system development
stage, and regularly monitors in-use systems forvulnerabilities. In this and other ways, we are constantly
prepared to deal with new threats. We are also working
to educate our employees, including inviting them toparticipate in educational programs covering defense
against cyber attacks, at our group company Cyber
Knowledge Academy.
In addition, DNP is a member of the Nippon CSIRT
Association, which facilitates information sharing andcollaboration across enterprise boundaries.
Through these activities, we will undertake to further
reinforce our security, detect incidents immediately, andrespond rapidly to meet the escalating threat of cyberattacks.

28

Ensuring Information
Security

Ensuring information security and protecting
personal information are becoming
increasingly important. At DNP, we handle
a large volume of personal information andother information assets. As such, managing
and protecting information assets is a
critical theme, and can be considered oursocial responsibility. DNP has positioned
information security as one of our mostimportant management issues, and we areworking to strengthen our structures andtrain our employees.

Internal training
courses on network
security held

3

CSR Activities at DNP● Continue Product Safety Innovation Practices
Committee meetings; check and improve
operational flow. Enhance product safety
management at international manufacturing sites
and prevent product accidents.
● Improve product quality management throughmeetings of the inter-departmental Frontline
Practices Committee.
● Strengthen efforts from the development stage toimprove quality and safety in new businesses.

TOPICSTOPICS

Ensuring Information Security

In order to meet the expectations of enterprises,
consumers and society, carry out inter-departmental
activities involving all DNP employees anddepartments worldwide, maintain and enhance
production quality, and create products with theworld’s highest levels of quality and safety.

FY2016(Apr. ’16–Mar. ’17)
Targets

CSR Activities at DNP

Mid-Range
TargetEnsuring the Safety and Quality of Our Products and Services

27

Raise the level of understanding and training withrespect to network security measures.

FY2017
Targets

Approx.

Recognize network security risks and take proper
measures.

FY2016
Results

1,100

Number of interdepartmental Frontline
Practices Committee
meeting participants(worldwide)

TARGETS & RESULTS

FY2016(Apr. ’16–Mar. ’17)
Targets

At DNP, we believe it is our responsibility
to prioritize safety and quality above all
else in the products we manufacture. The
basic approach in DNP’s safety and quality
efforts is to first consider the situation
where the product or service is used. Taking
the consumer’s perspective, we consider
the ease of use of our products and makesuccessive improvements.

Mid-Range
TargetEnsuring the Safety andQuality of Our Products
and Services

CSR Activities at DNP

Report on Activities under Each Principal ThemeTARGETS & RESULTS

FY2016 Results● Revised CSR Procurement Criteria.
● Carried out regular investigations based onGroup Guidelines for Procurement of Paper for
Printing and Converting and TAIWA with key
suppliers, and obtained written confirmation ofguideline conformance.
● Carried out TAIWA with International NGOs.

FY2017 Targets● Conduct and announce results of suppliersurvey relating to conflict minerals.
● CSR Procurement Guidelines
・Carry out compliance survey and engage in
TAIWA with key suppliers.
・Expand the number of manufacturingsubcontractors subject to the survey.
・Reinforce CSR Procurement activities atinternational business locations.
● Guidelines for Procurement of Paper for Printing
and Converting・Engage in TAIWA with key suppliers and confirm
guideline conformance.

DNP lighting film for windows efficiently reflects andscatters sunlight to make rooms brighter. The film
has also proven effective in reducing lighting-related
energy consumption and making interior spaces more
comfortable, and was recognized with the Japan
Business Federation Chairman's Award at the 26th
Grand Prize for the Global Environment Award.
The film can be sandwiched between sheets of glass orapplied to windows on site. When used on the side of abuilding that receives the least amount of sunlight, roombrightness is doubled,*1 and energy (costs) required
for lighting can be reduced by as much as 13%*2.
The product incorporates optical design technology
developed in part through the manufacture of opticalfilms for displays, as well as microfabrication technology,
allowing optimization of the optical properties andstructure of the film. The result is efficient reflection andscattering of sunlight throughout the room environment
year-round. Effective use of natural light reduces energy
consumption and makes for greater comfort, and more
and more homes, offices, shops, hospitals, and otherlocations are enjoying these benefits.
DNP has positioned Environment and Energy as abusiness growth area, and is developing new products
and services to support both economic growth andpreservation of the environment.

● Reduce greenhouse gas emissions by
20% worldwide compared to FY2005 by
FY2030.
● Reduce greenhouse gas emissions by
10% worldwide compared to FY2005 by
FY2020.
[Reference value]
FY2005 emissions:

1,110,000 tons
FY2016 emissions:

929,000 tons
(16.3% decrease compared to FY2005)%

TOPICS

Comparison of room brightness without (left) and with (right) DNP lighting film

*1 DNP test result. Maximum value from measurements taken
through 6:00 p.m., June 5, 2015
*2 D
 NP test result. Measurements taken through 6:00 p.m., July21, 2014

Promoting CSR Procurement throughexternal collaboration

In 2006, DNP established its Group CSR Procurement
Criteria, and began conducting annual suppliercompliance surveys. Through these and other efforts, wehave promoted CSR activities continuously throughout
our supply chain. At the same time, with progressive
globalization and increasingly complex supply chains,
it is more than ever incumbent upon enterprises tomanage risk in such areas as human rights and theenvironment. To reflect these international trends andmount advanced efforts with deeper collaboration,
we clarified the criteria in FY2016, and changed theirname to the DNP Group CSR Procurement Guidelines.
Moreover, in line with our responsibilities as anenterprise using paper as a key material, we issued
the DNP Group Guidelines for Procurement of Paper
for Printing and Converting in 2012, whose goal is tomake effective use of sustainable forest resources. We
regularly survey our key suppliers and engage in TAIWA
to ensure their understanding and conformance to theguidelines. In FY2016, we expanded the guidelines'
scope of implementation, and began obtaining written
conformance confirmation from each supplier. In
addition, to enhance the quality of activities in support of
the guidelines, we engage in ongoing TAIWA with WWF(World Wide Fund for Nature) Japan for insights into thelatest social trends, and exchange opinions on such
subjects as our regular survey methods and their results.

13

26th Grand Prize
for the Global Environment Award

Environmental
Conservation andthe Realization of a
Sustainable Society

DNP receives the benefits of nature in all of its businessactivities, from raw material procurement to manufacturing
and waste disposal. Therefore, we are making a Groupwide effort in our environmental activities, always bearing
in mind coexistence with the global environment, andaiming to help build a sustainable society.

Effect of DNP
lighting filmon energy
consumption

30%
reduction*

CSR Activities at DNP

FY2016(Apr. ’16–Mar. ’17)
Targets

CSR Activities at DNP● Improve effectiveness of CSR Procurement
Criteria. Consider status survey and review of
criteria to align content with international trends.
● Enhance effectiveness of Group Guidelines
for Procurement of Paper for Printing andConverting.
Revise survey content in light of social trends
and conduct regular investigations. Based on
results, carry out TAIWA with key suppliers andInternational NGOs.

For the entire DNP Group, includinginternational companies:

DNP lighting film recognized at the26th Grand Prize for the Global
Environment Award

Environmental Conservation and the Realization of a Sustainable Society

29

DNP and its suppliers will understand theimportance of CSR, and act with integrity and inaccordance with the CSR Procurement Guidelines
to improve compatibility with social expectations
across the whole supply chain, thereby achieving
sustainable growth both for the enterprise andsociety, which is the basis for business activities.

FY2016 Results

100

TARGETS & RESULTS

Mid-Range
TargetPromoting Social Responsibility through the Supply Chain

At DNP, we are working with our
suppliers throughout the supply
chain to improve compatibility withsocial expectations. These efforts
will be meaningless if we deviate
from social norms in processes
such as raw material procurement
or manufacturing. We carry out
various types of management withthe aim of realizing both high value
creation and high complianceawareness.

Mid- to Long-Range Target

Percentage of key
suppliers conformingwith Group Guidelines for
Procurement of Paper for
Printing and Converting

Promoting Social
Responsibility throughthe Supply Chain

TOPICSCSR Activities at DNP

2

Report on Activities under Each Principal ThemeTARGETS & RESULTS
TOPICS

Raise information disclosure to the level demanded
by society, compare current status with level to beachieved, and ascertain issues.

FY2016 Results

Through survey results, including surveys carried out
at IR/CSR meetings and surveys concerning socially
responsible investing (SRI), we sorted issues to be
met in the area of expected information disclosure,and examined the future direction of the information
to be disclosed.

FY2017 Targets● Make appropriate, timely disclosure of positive
and negative social impacts from our businessactivities.
● Prepare for disclosure of combined financial andnon-financial information relating to our value
creation process.

FY 2016

TOPICSTARGETS & RESULTS
Expand the impact of social contribution activities tofacilitate realization of a sustainable society.
● Promote the five activity themes* of the DNPSocial Contribution Activities Policy (throughFY2019).
・Group programs: 2.5% employee participation
rate (1,000)
・Location-specific programs: 100%
implementation rate

31

FY2016 Results● Group programs:
Participating employees: 243, cumulative totalof 374
Locations implementing first time: 4

FY2017 Targets● Enhance Group programs.
・Number of participants: 200 in single fiscal year,
cumulative total of 574.
・Continue expanding Group programs to locations
throughout Japan.

*Environmental conservation, communities, nurturing the next generation, art and culture,humanitarian aid

Employee fundraising

For the third year in a row, the DNP CSR Report 2016 andits Environmental Report 2016 received Excellence Awards
at the 20th Environmental Communication Awards,
hosted by the Ministry of the Environment and the Global
Environmental Forum.
These awards are given in recognition of excellence inenvironmental reports, environmental activity reports,
and television commercials dealing with the environment,
to encourage enterprises and others to engage inenvironmental management and communication, andimprove their level of environmental information disclosure.
The award recognized DNP's establishment of a FY2030
goal for the reduction of greenhouse gas emissions
through Scope 3 measures, including reductions at its
principal international business locations; its FY2020
goal for reductions in water usage, also being pursued atinternational locations; its receipt of an A List evaluation forthe second year running from the authority on international
evaluation organization, CDP; and furthermore, its readerfriendly editorial approach with clearly stated management
policies and principal CSR themes organized by business
content, with goals, initiatives, and metrics supported by
topical information.

Environmental Communication Awards
Excellence Award
Environmental Report Division
Award ceremony

The earthquakes that struck Kumamoto in April 2016 caused
immense damage, centering on but not limited to Kumamoto
Prefecture. In accordance with internal policy, fundraising tosupport recovery from the disaster was carried out at businesslocations nationwide, as well as through the Federation of
Dai Nippon Printing Group Labor Unions. A total of ¥20
million was contributed to Japan Platform, an emergency
humanitarian aid organization who provide local support.
Approximately half the funds were contributed by employees,
and the remainder consisted of matching gifts. At the sametime, employee cafeterias in 34 business locations nationwide
began featuring “recovery support menus,” and a portion ofrevenues from the menus, matched with corporate funds andtotaling approximately ¥2 million, was contributed to Chance
for Children, a public interest incorporated association providing
educational support to children in the disaster area.
In addition, in October 2016, our employees carried out local
volunteer work in the disaster area. Sixteen employees from
Kyushu, western Honshu, and the Kansai and Kanto regions
performed various tasks, including helping to dismantle a shelterin Mashiki, Kumamoto Prefecture, and assisting strawberry
farmers affected by the quakes and the subsequent eruption of
Mt. Aso, to remove accumulated volcanic ash from greenhouses.

32
CSR Activities at DNP

FY2016(Apr. ’16–Mar. ’17)
Targets

CSR Activities at DNP● Enhance Group programs to promote changes in
employee awareness.
・Number of participants: 200 in single fiscal year,
cumulative total of 350 from FY2015.
・Continue expanding Group programs to locations
throughout Japan.

Assisting recovery from the 2016
Kumamoto Earthquakes

Recognized at the Environmental
Communication Awards for the third
consecutive year

Proper Disclosure of Information

Mid-Range Target

Social Contribution as a Good Corporate Citizen

243

Enhance corporate transparency and reinforce
DNP’s position as a company trusted by the
public by providing stakeholders with the timely,
appropriate information they need.

FY2016(Apr. ’16–Mar. ’17)
Targets

DNP aims to contribute broadly
to the realization of a better
society by effectively utilizing
our management assets(including human resources,
knowledge, technology andfacilities), optimizing our business
management and operations,and striving for collaborationand cooperation with outsideorganizations. In addition, we
support the social contribution
activities of employees as a way of
promoting each employee’s selfrealization and personal growth.

Number ofGroup program
participants

Mid-Range
TargetSocial Contribution
as a Good Corporate
Citizen

CSR Activities at DNP

Proper Disclosureof Information

DNP believes that transparent information
disclosure is one of the key requirements tobe an enterprise trusted by society. We willtake the initiative in making timely, appropriate
disclosure to all stakeholders concerning thefull range of our business activities, to fulfill
our responsibilities as an enterprise to provide
information. We will also listen closely to
stakeholder opinions, and by deepening our
TAIWA with them, build sound relations of trust.

3

Environmental
Communication Awards

Environmental Report
Category
Excellence Awardyears
in a rowReport on Activities under Each Principal ThemeTARGETS & RESULTS

FY2016 Results● Ongoing implementation of Autonomous
Corporate Ethics Training and level-based andother types of training.
● Based on analysis of the results of risk
self-evaluations at international locations,characterized management risk and promoted
formulation of response measures.
● Top management of each organization
autonomously checked improvement of issues
relating to internal controls on a regular basis,and strengthened management.
● Formulated basic proposal for basic anticorruption policies and regulations.

FY2017
Targets●C ontinue to implement Autonomous Corporate
Ethics Training and similar efforts.
●A nalyze and assess risk at all international
locations; implement ongoing risk response.
●F ormulate and disseminate a basic policy, etc. forcorruption prevention, and ensure compliance.

Continuous efforts to strengthen risk
response

CSR Activities at DNP

At DNP, we are making continuous domestic andinternational efforts to promote our mid-range target of“disseminating and inculcating DNP’s corporate ethics,
and enhancing the effectiveness of internal controls andrisk management.”
Autonomous Corporate Ethics Training sessions were
held in FY2016 for the 14th consecutive year. Senior
management personnel in divisions, Group companies,
and other units acted as lecturers to explain in easily
understood terms to the staff of their own units thechallenges facing them, and their solutions. In addition
to the training, employees are engaged in a variety ofongoing activities to disseminate and inculcate DNP’scorporate ethics and thereby strengthen internal controls.
In addition, we are striving to appropriately manage
heightened international and domestic risk themes. For
example, DNP furthered preparations to formulate policies
and rules regarding corruption prevention. Furthermore,each international location worked to respond to risk bycarrying out self-evaluations, and to achieve more effective
management based on the results of those evaluations, incoordination with headquarters senior management andinternational Group companies. In FY2016, based on risk
survey results, we considered management risk relating
to human and labor rights, in addition to ongoing efforts inthe area of information security risk.
In FY2017 and beyond, DNP will maintain these efforts
toward improvement from a global perspective.

Collaborating withlocal communities

DNP continuously enhances and strengthens its disaster
preparedness to ensure personal safety and continuity ofcorporate functions in the event of disasters and emergencies.
DNP had already formulated the Large-scale Earthquake
Response Plan, but the plan was revised following the March2011 Great East Japan Earthquake, which demonstrated
once again the importance of ongoing preparedness. Further
revisions were carried out in FY2016 in view of damage from
subsequent earthquakes, including the April 2016 Kumamoto
Earthquakes, and the situation in society. The latest revisions
bolster the wide-area joint support framework and add
measures for accommodating individuals stranded and unable
to return home after a major disaster.
The influence of climate change has recently brought morewind and flood damage from large typhoons, tornados, andintense rainfall. DNP believes that disasters caused by unusual
weather conditions will increase in frequency, and is bolstering
its preparedness with such steps as formulating Flooding
Response Management Standards and examining thepossibility of adopting and utilizing a new forecasting system.
Going forward, DNP will carefully monitor local risk andprepare for all types of natural disaster as well as military
conflicts brought on by unstable international conditions,and create a structure to enable all of its business locations
to promptly gather information and take interim response
measures. We are also strengthening our wide-area joint
support framework to promote rapid recovery.

34

Development of a System
for Business Continuity

Emergencies that disrupt our businessactivities will affect not only DNP but ourvarious stakeholders. Our goal is a structurethat will enable us to quickly assess the typeand extent of a threat, and take appropriate
countermeasures to effect prompt recovery if
an unexpected event occurs that affects our
corporate continuity.

Strengthening
Disaster
Resilience

CSR Activities at DNP

FY2016(Apr. ’16–Mar. ’17)
Targets● Continue to implement Autonomous Corporate
Ethics Training and similar efforts.
● Analyze and assess risk at our international
business locations and promote risk mitigation
measures.
・Formulate and disseminate Group basic policies
and compliance items for addressing bribery risk.
・Enhance content of risk self-evaluation, withongoing implementation.
● Under the direction of the Head Office Corporate
Ethics Committee, enhance and strengtheninternal controls within the Group.

33

TOPICS● Strengthen measures to cope with large-scaledisasters.
● Promote specific, practical activities to lower risk
based on disaster management plans covering
climate change and local disaster risk at each
workplace.

Strengthening broad-based disaster
preparedness

Development of a System for Business Continuity

Disseminate and inculcate DNP’s corporate ethics,
and enhance the effectiveness of internal controls
and risk management.

companies● Revised Large-scale Earthquake Response Plan.
● Carried out disaster preparedness drills in the
Ichigaya area.
● In coordination with government, enhanced
preparedness to accommodate persons
stranded in Ichigaya and unable to return homefollowing a disaster.
● Enhanced wind and flood preparedness.

FY2017
Targets

Mid-Range
TargetCompliance with the Law and Social Ethics

TARGETS & RESULTS

22

Broaden perspective to include community
contribution, and realize further improvements in the
Ichigaya site’s disaster response capabilities.

FY2016 Results

In carrying out its business activities, we at DNP believe
we can earn the trust of society by having a mindset
that is always fair and impartial, and by contributing
to the maintenance and development of orderly, free,competitive markets. We are working to inculcate andfirmly establish corporate ethics and respect for laws
and regulations throughout the Group to maintain andenhance DNP's relationship of trust with society.

FY2016(Apr. ’16–Mar. ’17)
Targets

Compliance with the
Law and Social Ethics

Mid-Range Target

Number of international
business locations thathave carried out risk
analysis and evaluation

Strengthen the DNP Group’s ability to withstandnatural disasters.
● Strengthen each workplace’s ability to withstandnatural disasters based on the Disaster
Response Work Plans and Business Continuity
Plan.
● Strengthen disaster defense measures in
Ichigaya to protect DNP’s central functions.

TOPICSCSR Activities at DNPCSR Management Report
CSR
Theme

Mid-Range Target

Compliance with the
Law and Social Ethics
Development of a System
for Business Continuity

Foundations of the Three Corporate Responsibilities

Disseminate and inculcate DNP’scorporate ethics, and enhance theeffectiveness of internal controls and risk
management.

Strengthen the DNP Group’s ability towithstand natural disasters●S trengthen each workplace’s ability
to withstand natural disasters basedon the Disaster Response Work Plans
and Business Continuity Plan.
●S trengthen disaster defense
measures in Ichigaya to protect
DNP’s central functions.
●E stablish a wide-area joint support
framework for disaster situations.
●S trengthen disaster damage
reduction measures for information
systems.
[Realizing Our Group Vision]

FY2016 (Apr. ’16–Mar. ’17)
Annual Targets

Develop capability for an early grasp ofissues for people and society, create
products and services to provide
new value, and contribute to social
development.

Results●C ontinue to implement Autonomous Corporate Ethics Training and similar efforts.
●A nalyze and assess risk at our international business locations and promote risk
mitigation measures.
∙F ormulate and disseminate Group basic policies and compliance items foraddressing bribery risk.
∙ Enhance content of risk self-evaluation, with ongoing implementation.
●U nder the direction of the Head Office Corporate Ethics Committee, enhance andstrengthen internal controls within the Group.

●O ngoing implementation of Autonomous Corporate Ethics Training
and level-based and other types of training.
●B ased on analysis of the results of risk self-evaluations atinternational locations, characterized management risk andpromoted formulation of response measures.
●T op management of each organization autonomously checked
improvement of issues relating to internal controls on a regularbasis, and strengthened management.
●F ormulated basic proposal for basic anti-corruption policies andregulations.

●P romote concrete, practical risk mitigation activities based on plans formulated byeach organization and worksite.
●B roaden perspective to include community contribution, and realize further
improvements in the Ichigaya site’s disaster response capabilities.
●T hrough disaster response conferences among sites of the wide-area response
network, develop and enhance total disaster response capability.
●E xpand use of FMC* service.
●C onsider introducing IT service to enable employees to work from home during
large-scale disasters.
●S trengthen Ichigaya, Tokyo’s backup structure for use as system backup for plants.

●R evised Large-scale Earthquake Response Plan.
●C arried out disaster preparedness drills in the Ichigaya area.
● In coordination with government, enhanced preparedness toaccommodate persons stranded in Ichigaya and unable to returnhome following a disaster.
●E nhanced wind and flood preparedness.
●E ngaged in support activities in the Kumamoto Earthquakes
disaster area.
●3 0% year on year increase in users connected to the FMC service.
●B uilt an environment for field testing of an IT service to enable
employees to work from home during large-scale disasters.

* An extension telephone service using mobile phones that enables calling with in-house extensions while out of theoffice.

●P romote company-wide dissemination and implementation of P&I Innovations withthe aim of “providing new value.”●P romote development and support of company-wide systems and structures toaccelerate realization of our Group Vision.

Promote development of products and businesses to realize our growth strategy[Progress in relation to growthstrategy]○ Target achieved or making steady progress toward target△ Efforts to be continued into the next fiscal year as target not yet achieved●K nowledge and communication
Support cultural development, promote communication with consumers anddevelop new products and services to provide valuable information safely andsecurely in the optimal form.
●F ood and healthcare
Develop new products and services to facilitate safe and high-quality life as well as
lifelong health maintenance in an aging society.
●L ifestyles and mobility
Contribute to achieving comfortable personal spaces and a smart society adapted
to the diversifying values of consumers.
●E nvironment and energy
Develop new products and services that aim to realize a sustainable society andpromote respect for the global environment and energy/resource conservation.

●P romoted inculcation of P&I Innovations through level-based
training.
●P romoted inter-worksite collaboration, industry-university
collaboration, mergers and acquisitions, and open innovation tocreate places for innovation to occur, thereby effectively promoted
P&I Innovations.

● Developed YORIP ("Side Trip") travel app to contribute to regional
revitalization. Coordinated with local government and promotional
events.
●D eveloped Your Manager monitoring system for accurate
medication dosing for in-home treatment of the elderly and begandemonstrations through industry-university collaborations.
●D eveloped DNP Super Weatherable Hard Coat Transfer Film andother products that contributes to production of lighter automobiles,
thus reducing energy consumption and CO2 emissions.
●B egan offering CrackProof, an anti-tampering and personal dataprotection system for applications in on-board control devices
becoming increasingly prevalent in automotive electronic safetysystems; developed DNP Multi-Peer VPN server system for data
communication encryption, verification, and management.
●C reated resource recycling system for excess paper from plants
to promote sustainable use of forest resources (eligible for FSC
certification mark).

Evaluation

× Efforts insufficient

FY2017 (Apr. ’17–Mar. ’18)
Annual Targets○●C ontinue to implement Autonomous Corporate Ethics
Training and similar efforts.
●A nalyze and assess risk at all international locations;
implement ongoing risk response.
●F ormulate and disseminate a basic policy, etc. forcorruption prevention, and ensure compliance.

○●S trengthen measures to cope with large-scale disasters.
∙ Equip and enhance collaboration and support structure
between operating locations in case of wide-area disaster.
∙ Strengthen Ichigaya and Kashiwa area backup structures
for plant systems.
∙ Strengthen disaster response capabilities in Ichigaya area.
∙ Expand use of FMC service.
∙ Implement work-from-home IT service.
∙ Strengthen structure and environment to ensure
continuous provision of IT services even if data center isaffected by disaster.
●P romote specific, practical activities to lower risk basedon disaster management plans covering climate change
and local disaster risk at each workplace.

○●P romote sales and production activity acceleration andintegration measures (structures and systems) to realize
the DNP Group Vision.

Promote products, services, and business models aimed
at achieving DNP's growth strategy○●K nowledge and communication
Support cultural development, promote communication
with consumers and develop new products and services
to provide valuable information safely and securely in the
optimal form.
●F ood and healthcare
Develop new products and services to facilitate safe andhigh-quality life as well as lifelong health maintenance inan aging society.
●L ifestyles and mobility
Contribute to achieving comfortable personal spaces
and a smart society adapted to the diversifying values ofconsumers.
●E nvironment and energy
Develop new products and services that aim to realize asustainable society and promote respect for the global
environment and energy/resource conservation.

Respect for Human Dignity andDiversity

Responsibility #2

Establish an organization conducive tooverseas expansion.

●P romotion of the building of an organizational structure based on our international
strategy.

●S trengthened organizational structure in Singapore and elsewhere
to contribute to economic growth in the Asian region.

●P romote building an organizational structure based on our
new international strategy.

Review and develop management
structure in line with trends ininternational human rights standards;
in accordance with that review, takevarious opportunities to promote
understanding and compliancewith such standards on the part of
employees and suppliers.

●C ontinue to ascertain human rights risks in our business activities.
●C onsider and implement risk mitigation measures based on analysis of the humanrights risk survey results.
● In activities such as level-based group training, place particular focus on risk
associated with human rights issues.

●C arried out interview survey concerning human rights at four
divisions and their purchasing departments.
●B olstered CSR procurement management to enhance risk
prevention.
●C arried out activities such as level-based group training (25 times)
with focus on human rights education.

○●C onsider methods to perform human rights due diligence.
● Implement specific risk mitigation measures based on risk
survey analysis.
●C ontinue activities such as level-based group training withfocus on human rights risk issues.

● Implement measures in accordance with the Act to Advance Women’s Success in
Their Working Life.
●A chieve an employment rate of 2% for persons with disabilities through suchmeasures as development of job categories and normalization training.

● Trained 22 female mentors and 16 promotion leaders through DNP’s
Diversity Promoter Training Program.
●E stablished headquarters Diversity Promotion Office and divisional
and Group company Diversity Promotion Committees.
●C arried out career development support training for all managers
overseeing female employees with executive potential.
●E mployment rate for persons with disabilities: 1.93%.

△● Implement measures in accordance with the Act toAdvance Women's Success in Their Working Life (action
plan goal: double the number of female managers by theend of FY2018).
●A chieve an employment rate of 2% for persons withdisabilities though such measures as development of job
categories and year-round employment screening.

Encourage diversity in employment:●G reater participation by women●E mployment for persons withdisabilities●G reater participation by contracted
employees and senior staff●E mployment of non-Japanesecitizens

36
CSR Management Report

CSR Management Report

Contributing to the Development of Society

Responsibility #1

35

Promote the creation of an environment
to accelerate the realization of the DNPGroup Vision 2015.

Evaluation Targets

Evaluation Targets

CSR
Theme
Respect for Human Dignity andDiversity
Realization of a Safe and Vibrant Workplace

Responsibility #2

FY2016 (Apr. ’16–Mar. ’17)
Annual Targets

Results

× Efforts insufficient

Evaluation

FY2017 (Apr. ’17–Mar. ’18)
Annual Targets○●C ombine global training system and new jumpstart global
workforce development training to strengthen junioremployee development.

Ensuring Information Security●C ontinue employee training in cross-cultural understanding and respect for diversity.
Continue personnel development at international business locations. Disseminate
and promote our global training system.

●C ontinued such programs as cross-cultural management, crosscultural understanding, and global communication.
●P lanned jumpstart global workforce development training for junioremployees.
●U tilized global training system to allow younger employees to gaininternational experience. Dispatched four employees to North
America and Southeast Asia.

●E xpand the use of fairtrade-certified products to DNP locations nationwide, andraise awareness within the company.
●S trengthen collaboration with outside partners and make new efforts.

●C ontinued Fairtrade Month Campaign at 28 employee cafeterias
nationwide; sold fairtrade-certified products in collaboration withpartner companies.
● In collaboration with Art Coffee Co., Ltd., developed certified coffee
drip pouch, which Art Coffee launched in December 2016. Beganinternal company sales in March 2017.

○●E xpand internal consumption of fairtrade-certified
products.
∙ Serve 100,000 cups of coffee annually.
∙ Expand number of certified products sold internally.
●E ncourage propagation of fairtrade internally andexternally.
∙ Leverage knowledge acquired through internal
consumption to implement fairtrade promotion activities
in collaboration with external partners.

Develop personnel to drive the fulfillmentof our Corporate Philosophy.

● Implement a goal management and evaluation system and align organizational andindividual goals.

● Implemented goal management and evaluation system, and revised
the merit rating system to enable more appropriate personnel
reviews.
●C onducted general training relating to goal setting and evaluation;
carried out workshops in each department to undertake operations
suited to actual conditions in each organization.

○●E ncourage understanding and use of new goal
management system and merit rating system.
● Implement training with theme of solving social problems.

Offer workstyle innovation to enable
DNP to respond swiftly and flexibly tochanging social environments, andimplement measures to improve job
satisfaction for every employee so
as to generate popular momentum
toward creating an invigorated, highperformance company.

●C ontinue activities in each organization based on plans to realize workstyleinnovation.
●C ontinue progress survey of workstyle innovation; carry out improvements basedon the results.
●C onsider revision of nursing care-related systems. Maintain policies to promotebalance of work and nursing care responsibilities, and participation by male
employees in child rearing.

●C ontinued activities in each organization based on plans to realize
workstyle innovation. Labor and management monitored progress
twice through the Productive Time Resources Project.
●C arried out progress survey of workstyle innovation; implemented
improvements based on the results, as well as further
encouragement measures.
●N ursing care-related systems were revised. Seminars were heldon themes such as promoting balance of work and nursing care
responsibilities, and participation by male employees in child rearing.

○●C ontinue activities in each organization based on plans torealize workstyle innovation.
●E nrich full participation of worksite unit activities andachieve target for mutually confirming and supporting useof paid leave.
●C ontinue to promote balance of work and nursing care
responsibilities, and participation by male employees inchild rearing.

○●P rioritize elimination of machine-related accidents,
promote risk assessment and facility safety measures
based on safety standards for in-house equipment, andstrengthen education/guidance.
●B ased on stress check results, create structure topromote independent efforts at every workplace.
● In light of results from first model business for healtheducation, implement second model business for healtheducation with more effective content.

●H eld Product Safety Innovation Practices Committee (four meetings), toverify and improve operational flow. Created English-language productsafety training materials for international production locations, andenhanced training by local staff.
●H eld inter-departmental Frontline Practices Committee meetings (64meetings).
●S urveyed all Group companies to assess implementation status
of design reviews in new business, and shared successful modelcases; strengthened process from the development stage.

○● Reinforce quality assurance and product safety
management structures across the Group, as well asinter-departmental activities to enhance quality andproduct safety and ensure prevention of major productquality accidents and accidents relating to product safety.
● Continue holding inter-departmental Frontline Practices
Committee meetings.
● Through quality system verification, strengthen efforts
from the development stage to improve quality and safety
in new businesses.

●P romoted adoption of thin client PCs (cumulative total of 4,414
terminals).
●P romoted introduction of SSFC-based printing management
systems (cumulative total of 406 systems).
●D eveloped auto-encryption folder and enhanced user environment.

○●C reated Introduction to Information Security 2016 educational tool innine languages.

○● Trained all employees through e-learning.
●H eld internal training courses (three times).
●D isplayed educational materials using in-house digital signage
system (three types).
●S erved as member, Nippon CSIRT* Association○

Enhance development of an in-house
workforce able to make contributions to
the global community.

Help alleviate poverty for producers indeveloping nations.

Carry on the creation of workplaceenvironments where employees canwork with peace of mind, free fromhealth hazards. This will be achieved
based on plans to prevent work-related
accidents and promote/maintain health.

●M ake elimination of machine-related accidents a top priority, promote risk
assessment and facility safety measures based on safety standards for in-houseequipment, and strengthen education/guidance.
●P romote mental health measures based on the results of organization analysis of
the FY2015 survey.
● Implement testing of model business for health education.

In order to meet the expectations ofenterprises, consumers and society,carry out inter-departmental activities
involving all DNP employees anddepartments worldwide, maintain andenhance production quality, and create
products with the world’s highest levelsof quality and safety.

●C ontinue Product Safety Innovation Practices Committee meetings; check andimprove operational flow. Enhance product safety management at international
manufacturing sites and prevent product accidents.
● Improve product quality management through meetings of the inter-departmental
Frontline Practices Committee.
●S trengthen efforts from the development stage to improve quality and safety in new
businesses.

●A im for strong information security
and efficient, highly productive work.
●T o respond to globalization,
extend DNP's information security
management protocol to every
country in which it operates, inaccordance with local rules andregulations.
●R ecognize network security risks andtake proper measures.
●P romote protection of personal data.

●C ontinue introduction of thin client PCs to make it possible to conduct businesssecurely anywhere, inside or outside of the company.
● Improve document digitization processes by applying PDCA cycle. As part of thiseffort, continue introduction of SSFC-based (Shared Security Formats Cooperation)*
printing management systems.
●S et up an encryption environment for confidential digital documents as a measure
to improve information security.

●B ased on safety standards for in-house equipment, promoted
risk identification, equipment safety measures, and managementof residual risk; implemented check and follow up through plantinspections; commenced equipment safety education for managers
and staff.

Note: Number of work accidents: down 2% from FY2016; lost time work accident occurrence rate:
0.21 (both record low figures).

● Implemented response measures based on organizational analysis
of FY2015 stress check.
●T ested first model business for health education as a measure toheighten employee health awareness.

* System linking various kinds of security-related equipment using smart cards●E xpand educational tools to cover various languages and provide training aimed atpromoting information security management at international Group companies.

●R aise the level of understanding and training with respect to network security measures.

*CSIRT (Computer Security Incident Response Team)● To ensure secure internal and external conduct ofbusiness, promote introduction of thin client PCs● Revamp office environments and cut back on the use of
paper.*● Expand educational tools to cover multiple languages andprovide training aimed at promoting information security
management at international Group companies.
●R aise the level of understanding and training with respect tonetwork security measures.
● Formulate internal rules in response to revisions in the Act
on the Protection of Personal Information and JISQ15001.
* Reduce paper usage by making the working environment conducive to electronic
communication and data storage.

38
CSR Management Report

CSR Management Report

Ensuring the Safety and Qualityof Our Products and Services

37

Mid-Range Target○ Target achieved or making steady progress toward target△ Efforts to be continued into the next fiscal year as target not yet achieved

Evaluation Targets

CSR
Theme

Mid-Range Target

Promoting Social Responsibility
through the Supply Chain

Responsibility #3

Social Contribution as a Proper Disclosureof Information
Good Corporate Citizen

Responsibility #2

DNP and its suppliers will understandthe importance of CSR, and act withintegrity and in accordance with the
CSR Procurement Guidelines to improvecompatibility with social expectations acrossthe whole supply chain, thereby achieving
sustainable growth both for the enterpriseand society, which is the basis for businessactivities.

Expand the impact of social contribution
activities to facilitate realization of asustainable society●P romote the five activity themes of the
DNP Social Contribution Activities Policy(through FY2019).
∙ Group programs: 2.5% employee
participation rate (1,000).
∙ Location-specific programs: 100%
implementation rate.

Enhance corporate transparency andreinforce DNP’s position as a company
trusted by the public by providing
stakeholders with the timely, appropriate
information they need.

FY2016 (Apr. ’16–Mar. ’17)
Annual Targets●C onducted supplier survey relating to conflict minerals.
● Improved effectiveness of CSR Procurement Criteria.
∙ Conducted compliance survey of suppliers and subcontracted
manufacturers.
∙ Engaged in TAIWA with main suppliers and WWF Japan.
∙ Used e-learning on a trial basis to orient subcontracted
manufacturers.
∙ Revised procurement criteria in light of international trends.
● Improved effectiveness of Group Guidelines for Procurement of Paper
for Printing and Converting.
∙ Conducted regular surveys and engaged in TAIWA with main
suppliers. Obtained written confirmation of guideline conformance∙ Engaged in TAIWA with WWF Japan.

●E nhance Group programs to promote changes in employee awareness.
∙ Number of participants: 200 in single fiscal year, cumulative total of 350 from
FY2015.
∙ Continue expanding Group programs to locations throughout Japan.
●C onsider a system for compiling and sharing Group activity results, andconduct a results survey.

● Group programs:
Participating employees: 243, cumulative total of 374.
Locations implementing first time: 4.
● Added information gathering function relating to social contribution
activities to in-house environmental management system; surveyed
status of activities at all locations.

●R aise information disclosure to the level demanded by society, compare current
status with level to be achieved, and ascertain issues.

● Through survey results, including surveys carried out at IR/CSR
meetings and surveys concerning socially responsible investing(SRI), we sorted issues to be met in the area of expected information
disclosure, and examined the future direction of the information to bedisclosed.

Targets through FY2020 (Apr. ’20–Mar. ’21)

Evaluation Targets

FY2005 emissions: 1.110 million tons

Reduce greenhouse gas emissions by 10% over FY2005, by 20% in FY2030(including international locations).

FY2016 emissions: 0.929 million tons

Reduction of environmental impact
incurred during transport

Reduce per-unit fuel use for transport by 1% per annum and 10% compared to
FY2010.

FY2016 per-unit: 1.48 kl/100 million yen

VOCs(Volatile Organic Compounds)

Reduction of industrial waste

Reduce emissions of all VOCs (except for methane) by 35% compared to
FY2010.
Comply with local laws and regulations and introduce technology and othermeasures to reduce, as much as practical, VOC emissions at our international
business sites.
Reduce per-unit waste emissions (waste emissions/production) by 20% worldwide
from FY2010.
Maintain zero emissions at all DNP Group sites in Japan.

Reduction of water usage
Development and sales of environmentallyconscious products and services

Environmental conservation

Office environment

Reduce per-unit water use by 25% over FY2010 worldwide.
Achieve 600 billion yen in sales of environmentally conscious products andservices.

FY2010 per-unit: 1.61 kl/100 million yen
FY2010 emissions: 6,729 tons
FY2016 emissions: 4,141 tons

FY2010 per-unit: 0.424 tons/10 million yen
FY2016 per-unit: 0.349 tons/10 million yen
FY2016 landfill waste rate: 0.05%
FY2010 per-unit use: 10.8 m3/million yen
FY2016 per-unit use: 8.2 m3/million yen
FY2015 total sales: 570.8 billion yen
FY2016 total sales: 589.8 billion yen

FY2017 (Apr. ’17–Mar. ’18)
Annual Targets○● Conduct and announce results of supplier survey relating
to conflict minerals.
● CSR Procurement Guidelines∙ Carry out compliance survey and engage in TAIWA withkey suppliers.
∙ Expand the number of manufacturing subcontractors
subject to the survey.
∙ Reinforce CSR Procurement activities at international
business locations.
● Guidelines for Procurement of Paper for Printing andConverting
Engage in TAIWA with key suppliers and confirm guideline
conformance.

○● Enhance Group programs:∙ Number of participants: 200 in single fiscal year,
cumulative total of 574.
∙ Continue expanding Group programs to locations
throughout Japan.
● Monitor and analyze business division and Group
company activities, and formulate a strategy andframework to strengthen activities in FY2018 and beyond.

○● Make appropriate, timely disclosure of positive andnegative social impacts from our business activities.
● Prepare for disclosure of combined financial and nonfinancial information relating to our value creation process.

Evaluation
16.3% decreaseover FY2005◎

8.1% decreaseover FY2010○

38.5% decreaseover FY2010◎

Maintained operation of VOC recovery equipment at PT DNP Indonesia’s
Karawang Plant.

FY2015 landfill waste rate: 0.06%

Evaluation◎ Results greatly exceeded targets ○ Target achieved or making steady progress△ Active efforts being made, but target not yet achieved × Efforts insufficient

Results

Global warming prevention

× Efforts insufficient○

18% decreaseover FY2010◎

Maintained zero
emissions◎

24% decreaseover FY2010◎

3.3% increaseover FY2015○

Maintain the maximum concentration of air emissions subject to emissions
regulations at 70% of the required standard or less.

FY2016 target (company standard) achievement rate: 99%

Maintain the maximum concentration of water emissions subject to emissions
regulations at 70% of the required standard or less.

FY2016 target (company standard) achievement rate: 98%

Maintain the maximum concentration of odors at our site perimeters at 70% of
the required standard or less.

FY2016 target (company standard) achievement rate: 98%

Maintain the maximum level of noise at our site perimeters at 70% of the required
standard or less.

FY2016 target (company standard) achievement rate: 99%

Maintain the maximum level of vibration at our site perimeters at 70% of therequired standard or less.

FY2016 target (company standard) achievement rate: 100%

Increase the rate of the fractional recovery of waste paper to more than 70% ofthat for general waste.

FY2016 recovery of waste paper: 83.1%

40
CSR Management Report

Responsibility #2

CSR Management Report

Environmental Conservation and the Realization of a Sustainable Society

39

Environmental Theme

Results●C onduct and announce results of supplier survey relating to conflict minerals.
● Improve effectiveness of CSR Procurement Criteria[Domestic: Suppliers]∙ Improve response rate for compliance survey.
∙ Carry out TAIWA with main suppliers to investigate the content of the awarenesssurvey and compliance survey of the applicable companies.
[Domestic: Manufacturing subcontractors]∙ Expand applicability, and provide feedback.
[International]∙ Consider status survey and review of criteria to align content with international
trends.
● Enhance effectiveness of Group Guidelines for Procurement of Paper for Printing
and Converting.
Revise survey content in light of social trends and conduct regular investigations.
Based on results, carry out TAIWA with key suppliers and International NGOs.

FY2016 (Apr. ’16–Mar. ’17) Environmental Activity Annual Targets and Results
CSR
Theme

○ Target achieved or making steady progress toward target△ Efforts to be continued into the next fiscal year as target not yet achieved

Detailed information is provided in ourEnvironmental Report

○
○
○
○
◎
◎

DNP Group Environmental Report2017 (PDF)
http://www.dnp.co.jp/eng/csr/

Third-Party Opinion
CSR Review Forum JapanOn July 11, 2017, we engaged in
discussion with the staff of DNP's
CSR and Environmental Department
predominantly on the two points
below, and afterward we reviewed the
CSR Report. Following is a summaryof the opinions expressed during thediscussion.
1. Meeting social challenges
through core business activities,
and making disclosure
2. CSR procurement progress
1. Summary Opinions Concerning the
CSR Report

direct solutions to social challenges.
Perhaps it would be useful to, forexample, solicit internal input to select thebusiness activities to be highlighted in thereport, from the perspective of meetingsocial challenges.
Moreover, the goal of individual SDGs
is linked to a wide range of human rights.
We look forward to a report that draws
connections between activities by the DNPGroup that respect human rights, such as
CSR procurement, and business activities
to meet social challenges that are basedon SDG concepts, and how these parallel
categories of activity relate to each other.

A Message from the
CSR-Environment
Committee Chairman

3. CSR Procurement

Tomohiko Yamaguchi
Supervising Reviewer,
CSR Review Forum Japan

Kaori Kuroda
Executive Director,
CSO Network JapanThe first half of the report deals withthe ways in which DNP is contributing
to meeting social challenges throughits business activities. In particular, thefirst special feature explains how thecompany's targeted directions align withthose of global society. In the second half,
DNP profiles what management is doing.
I believe this is an excellent report, bothin terms of a social statement and as an
example of internally directed messaging.
With respect to concrete activities,
DNP lays out 11 Principal Themes andarranges them in chapters, which makes
them easy for readers to follow. Especiallywith respect to the current status of theiractivities, the reader can see how they arecarrying out CSR procurement, which is an
important social obligation for enterprises
today.
2. Meeting Social Challenges throughCore Business Operations

41

Representative,
Consumer Conference for Sustainability

Yoko Doi
Deputy Director,
Fundraising Dept.
Amnesty International Japan

4. The DNP Group's Environmental
Activities
Judging from the separately-issued
Environmental Report, the DNP Group's
activities to lower its environmental impact
is excellent. Through their well-practiced
PDCA management system, they aresteadily reducing their impact. According
to the Scope 3 disclosure in last year's
Environmental Report, 63% of greenhousegas emissions in the entire value chain
are from the DNP Group's upstream
emissions. The effort taken to assess thestatus of these emissions is praiseworthy.
However, the weight of efforts to reduce
environmental impact should be allocatedaccording to the results of these statusassessment efforts. Environmental impact
and social impact are linked, and we lookforward to seeing effective efforts based on
Scope 3 data.

Satoru Inoue
CSR-Environment Committee Chairman,
Managing Director

Basic”. At the same time, in the latter
half of the report, we presented cases showing how our awareness ofsocial challenges is shaping the way
we conduct business.
We highly value the comments
we receive from the members of the
CSR Review Forum regarding ourefforts, both through discussion andwritten opinions. I would like to thankthem again for their input, which indicates that we are making a clear
distinction in our report between thegoals to meet the challenges facing
the world and the directions ourbusinesses are taking, and that in ourbusiness process, we are engaging
with the problems of raw materials
procurement and climate change ina manner that directly faces the challenges these represent for society.
We also received a recommendation
to further demonstrate, through ourbusiness activities, our capabilities
for meeting the profound challenges
facing society. We will continue totake this valuable input into accountsincerely, along with opinions we
receive from our stakeholders, tobecome a company that can makecontributions to society.

The Japanese print edition of the DNP Group CSR Report 2017 has been certified with the following marks as a print document
showing consideration for the environment and universal design.

This printed document is suitable forrecycling into print-quality paper.

Used in: printing ink

No.090010

Paper

Printing plates

FSC-certified paper, forest thinning support paper(Forest Neighborhood Association)

Filmless system using CTP output
Perfect binding using recyclable hot melt adhesive

Binding

This report took 1,800 kWhof electricity to print and bind,which was generated using
natural energy sources.

Forest Neighborhood Association A2 matte
FSC-certified MX (Mitsubishi Paper Mills Limited)
This report is printed on paper madefrom forest thinnings to help promotehealthy forests and encourage greateruse of thinnings as a material.

Spine glue: Asahi Melt RP 5200
(made by Asahi Chemical Synthetic Co., Ltd.)Side glue: Asahi Melt RP S310
(made by Asahi Chemical Synthetic Co., Ltd.)

Ink

Recycling-friendly ink:
NS PVF K (DIC Graphics Corporation)

Compliant with Color Universal Design
PS17-0018

This report has been recognized by the Color Universal Design Organization as having a design whose colors have beenchosen to be easily perceptible by the majority of people.

The CSR Report carbon footprint has been calculated and indicated, and will be offset.

A0366

The Carbon Footprint of Products (CFP) mark indicates the total amount of greenhouse gas (converted to amount ofCO2) emitted in the entire lifecycle of this CSR Report, from materials procurement to disposal and recycling. The calculated CFP amount (740 grams per printed report) is fully offset by carbon credits for a net zero footprint, earning it
the Acorn Mark.

42
A Message from the CSR-Environment Committee Chairman

Third-Party Opinion

Yukiko Furutani

It is clear from the reports that making
SDGs the company's goal provides a path
to realizing sustainability. The way they
are promulgating this both internally andexternally shows that SDGs will be DNPGroup policy going forward, and the basis
for their decision-making.
Moving forward, however, with respect
to the business activities they have chosen
to reach these SDGs, it will be important todisclose to what degree they are currently
practicing the activity, which challenges
they may be encountering, and how
effective the activity is proving.
As it was pointed out last year, it will
be difficult for DNP to realize sustainability
in its business operations unless it has
discussions within each of its divisions andwith large numbers of employees regarding
such questions as: What are the criticalchallenges facing society? What can DNP
do to help meet these challenges? How
can they develop businesses to do so? We
look forward to seeing the fruits of these
discussions in next year's report.
The four cases spotlighted in the second
special feature are all related to Knowledge
and Communication; however, since
DNP is engaged in so many businesses
relating to knowledge and communication
in society, we had the impression thatperhaps there were others offering more

Society's environmental challenges areconcentrated in the origins of procured
materials. We are very pleased to see
revised procurement guidelines that
address existing challenges.
Going forward, while it may be difficult,the DNP Group must closely investigate
suppliers to solve existing challenges.
As previously dicussed, when surveying
suppliers, it might be a more effective
way to meet these challenges if suppliers
were chosen based on location, industry,and business type, or where social andenvironmental risk appear high, and toengage in TAIWA with them and survey
them meticulously, rather than choosing
suppliers to survey based on volume ofmaterials procurement.
This approach would greatly increase
the burden on those responsible for
procurement, and would probably
require them to revise their operationalorganization, but we hope thatprocurement departments can collaborate
internally with the CSR department toimplement the needed action.

When I learned of the Sustainable
Development Goals adopted by
the UN in 2015 and considered
how DNP might contribute to theirachievement, it seemed to me that
it would be necessary for us to work
steadily to fulfill three responsibilities: to provide new value to society;practice fairness and impartiality invalue creation processes; and be acompany that is accountable andhighly transparent. As the entire DNPGroup faces the numerous social
challenges indicated by the SDGs,
etc. and works to create businesses,
products, and services that contribute to meeting those challenges,
it will also work to ensure that thecreation processes do not impose aburden on society.
In this year's CSR Report, we
looked back on the history of 140
years of delivering value to society,keeping in mind the importance of
not imposing a burden on society
through the creation processes. As
we looked back, we considered how
our accumulated strengths could
be leveraged to continue deliveringvalue into the future. We touchedon this in the first half of the report,“Today’s Innovation is Tomorrow’s