CSR REPORT 2004
Report on Corporate Social
Responsibility Activities

What is Toppan’s Social Responsibility?
What exactly is Corporate Social Responsibility (CSR)? This is a question withno easy answers. The size, values, and industry in which a company operates
all have a bearing on its CSR.
For Toppan, the question becomes: What is the social responsibility ofa leading company in the information communications industry? During fiscal
2003 Toppan reviewed its past activities and defined the roles it should playand social responsibilities it should fulfill in the future.
This CSR Report 2004 provides an overview of Toppan’s independent visionof social responsibility and current endeavors to fulfill this responsibility.
The company welcomes the comments and views of readers.

■ Contents

Executive Message --------------------------------------------------------------------------------------------------------------------------------- 2
Business Activities and Social Responsibility ------------------------------------------------ 4
Toppan’s History and Value System ------------------------------------------------------------------------------ 4
Business Fields and Society ------------------------------------------------------------------------------------------------------- 6
Corporate Governance and CSR Activities----------------------------------------------------------- 8
Comprehensive Corporate Governance -------------------------------------------------------------- 10
CSR Activity Highlights ---------------------------------------------------------------------------------------------------------------- 12
Topics 2003------------------------------------------------------------------------------------------------------------------------------------------------- 12
Roundtable Discussion: What We Expect from CSR --------------------------- 17
Social Report ------------------------------------------------------------------------------------------------------------------------------------------------ 23
Compliance -------------------------------------------------------------------------------------------------------------------------------------------------- 24
Improving Customer Satisfaction -------------------------------------------------------------------------------- 30
Respecting and Leveraging Human Assets ------------------------------------------------------- 36
Activities for Society and Culture----------------------------------------------------------------------------------- 42
Social Activity Highlights ------------------------------------------------------------------------------------------------------------ 46
Environmental Report------------------------------------------------------------------------------------------------------------------- 47
Toppan’s Environmental Vision ---------------------------------------------------------------------------------------- 48
Environmental Management Activities ------------------------------------------------------------------ 54
Eco-protection Activities------------------------------------------------------------------------------------------------------------- 58■ To the Readers

Eco-creativity Activities ----------------------------------------------------------------------------------------------------------------- 64

This CSR Report 2004 is a communication tool to disclose information to
stakeholders and solicit their comments. The report was prepared with the following points in mind.
(Please refer to P. 79 for an explanation of the scope of the report and otherdetails.)

Environmental Communication Activities ---------------------------------------------------------- 70

IReadability
To identify the requirements of prospective readers, Toppan referred to a setof reporting guidelines issued by the Ministry of Economy, Trade and Industry in2001 (Environmental Reporting Guidelines 2001—With Focus on Stakeholders).
Clarity and readability were foremost considerations in planning out the organization of the material, layout, color schemes, typeface, and font sizes.
IReliability
AZSA Sustainability Co., Ltd. (formerly the Environmental Management Department of Asahi & Co) has provided an annual independent review of Toppan
reports on the environment and social responsibility from fiscal 2000 onward(starting with the 2001 report). This year, Toppan also sought the opinions of an
authority in the CSR field and held a roundtable discussion with experts in several
industries.
ICompleteness and Materiality
The contents of this report were strictly chosen on the basis of Toppan’s businesses, the following sets of guidelines, and feedback returned from surveys
on socially responsible investment:•Environmental Reporting Guidelines (fiscal year 2003 version) of the Ministryof the Environment•Environmental Performance Indicators for Businesses (fiscal 2002 version) of
the Ministry of the Environment•Environmental Accounting Guidelines (2002 version) of the Ministry of theEnvironment•Sustainability Reporting Guidelines 2002 from the GRI (Global Reporting
Initiative)
In addition to appearing in print once yearly, this report is available on the
Toppan website, along with environmental performance data on each site, thelatest information on ISO 14001 certification throughout the company, andother timely data. The Toppan website is regularly updated.
URL for CSR Report
http://www.toppan.co.jp/english/corporate/csr/index.html

Environmental Activity Highlights --------------------------------------------------------------------------------- 73
Independent Review/Third-party Opinion -------------------------------------------------- 74
Independent Review ------------------------------------------------------------------------------------------------------------------------ 74
Third-party Opinion--------------------------------------------------------------------------------------------------------------------------- 76
Data Report ---------------------------------------------------------------------------------------------------------------------------------------------------- 77
Basic Reporting Data ----------------------------------------------------------------------------------------------------------------------- 78
Social Performance Data ------------------------------------------------------------------------------------------------------------ 80
Environmental Management Data ------------------------------------------------------------------------------- 84
Eco-protection Data ------------------------------------------------------------------------------------------------------------------------- 86
Eco-creativity Data ------------------------------------------------------------------------------------------------------------------------------ 90
Environmental Communication Data ----------------------------------------------------------------------- 91
GRI Guidelines Reference Index --------------------------------------------------------------------------------------- 92■ Publication Dates

Published in December 2004 (Toppan published the Environmental Report from2000 to 2003). Toppan plans to publish the next report in December 2005.

■ Inquiries on Content and Contact Information
Toppan Printing Co., Ltd. (Tokyo, Japan)
Compliance Department, Legal Affairs Division
E-mail: compliance@toppan.co.jp

1Toppan’s Mission for Society
Since the founding of the Toppan Printing Limited Partnership in
1900, its printing-based businesses have been closely tied withthe development of Japan’s information culture. Working in partnership with its customers, shareholders, business partners, local
communities, and stakeholders in every field, Toppan has grown
together with Japan.
When Gutenberg invented the printing press some 500 years
ago, he created a medium to spread information and humanemotions with an efficiency and speed previously unknown. With
the birth of printing, people on different continents could see
the same information at the very same time. Within a matter of
decades, printing became a crucial medium for communication in
the development of society and industry. Wherever there has
been printing, culture has flourished.
Our company was founded by a group of printing engineersfrom the Printing Bureau of the former Finance Ministry whowanted to contribute broadly to society through printing technology. Nowadays, more than a century later, printing plays thesame role in society and the company serves the very same purposes that its founders intended. The change has come in thetechnologies: with the rapid emergence of IT, digitalization, andnew media, the techniques used to convey and express information through printing have evolved dramatically. The social mission of the Toppan Group of today is to convey information,
foster culture, and contribute to fulfilling lifestyles through its
printing-focused businesses. We envision a day when our products and services help all members of society lead rich andrewarding lives. The Toppan Group transmits information and culture that link people to people, people to companies, and companies to companies.

Contributing to Fulfilling Lifestyles
Keeping the Trust of Society
To benefit society most, the Toppan Group must continue to earn
the trust of the people around it. Economic goals must be alignedwith a tremendous range of activities to conserve the environment, uphold human rights, and benefit society in other ways.
We recognize that a voluntary commitment to defining a path toco-exist with society and the environment is indispensable.
In 2000, as Toppan reached the centenary of its founding, wedefined our vision of the future in Toppan Vision 21. In the years
to come, every activity that Toppan undertakes will be in some2

Executive Message

way directed towards this vision. Toppan Vision 21 is made up
of a number of core components that interrelate in importantways. At the top of the hierarchy are the Corporate Structure andBusiness Fields. The former includes a Corporate Philosophy, aCorporate Creed, and a set of Conduct Guidelines that express
our most important values and standards. The latter, the Business
Fields, directly reflect the foregoing.
The Corporate Creed is a set of five fundamental principles
based on the Toppan Corporate Philosophy. Each of these serves
as a standard for the corporate activities that Toppan undertakes
on a group-wide level.
When translated into action, the Corporate Creed places theutmost importance on the following:
1. Building a relationship of trust with customers.
2. Developing our business with a global perspective and reinforcing our strengths in marketing and technology.
3. Recognizing our social responsibilities as a corporate citizen,
particularly in bettering the environment and upholding corporate ethics.
4. Creating a corporate atmosphere in which individual abilities
are respected and leveraged as a strength for the whole team.
5. On the basis of the foregoing, striving to increase the value of
our company, pursuing possibilities, and becoming a company
that all of our shareholders and other stakeholders value.
In our ongoing efforts to clearly define our Corporate Social
Responsibility (CSR), we have established a new framework for our
corporate commitment by rethinking our activities from the past,
particularly those closely shaped by our Corporate Philosophy andCorporate Creed. This framework will become even more important for the management of the company as we push ahead in
our efforts to earn unqualified trust as a corporate citizen.

The Six Major Themes of Toppan’s CSR
Toppan has compiled a list of six overriding themes to guide its
activities in the realms of economy, society, and the environment.
Through this approach, the Toppan Group will be renewing its
commitment to return greater rewards to stakeholders based on
its Corporate Creed.
ICorporate Governance: We will perform our management
activities rapidly and efficiently with a robust commitment toforming clear managerial strategies, strengthening our supervisory and auditing capabilities in corporate management, andimproving the transparency of our managerial activities.
ICompliance: We will conduct our corporate activities in strict
observance of corporate ethics and all applicable legislation andregulations. All employees will follow our corporate Conduct
Guidelines with an unwavering sense of ethics and morality.

IImproving Customer Satisfaction: We will strive to see things fromthe customer’s perspective. Through our work with knowledge
and technology, we will devote ourselves to the creation of
products that bind us to our customers in a relationship of trust
based on responsibility, passion, and skill.
IRespecting and Leveraging Human Assets: Through our strict
commitment to human asset development and respect for individuals, we will foster employees that continue to expand theirabilities and meet their full potential. The people within the
Toppan Group will share both their work and enjoyment withina corporate atmosphere that is gratifying and rewarding toinhabit.
IActivities for Society and Culture: As a leader in the information
communications industry, we will develop activities to promotesocial and cultural progress. We will also work to create a richcultural environment in partnership with local communities.
ICommitment to the Environment: Under the initiatives set forthin Toppan’s Declaration on the Global Environment (1992), we
will continue to alleviate the environmental burden of our operating activities by proposing, developing, and providing environmentally-friendly products and services that coexist in balancewith our irreplaceable global environment.

On the Publication of This Report
To explain our commitment fully, this year we decided to publish
this CSR Report in place of the environmental report that Toppan
has been publishing annually since 1998. Through reading thisreport, we hope that a great many customers and others will cometo understand and appreciate the activities of the Toppan Group.
The Toppan Group will continue to shape and reshape its activities to meet the priorities described above in an ongoing effort tobuild a Toppan that society recognizes as a true and worthy corporate citizen. The details of our progress will be fully reported ina document like this each year.
We hope to merit the unwavering support and guidance of ourcustomers, stakeholders, and society as a whole in the coming years.
September 2004

Naoki Adachi
President & CEO
Toppan Printing Co., Ltd.

3

Toppan’s History and Value System
Since its founding in 1900, Toppan has fostered the advancement of society with its printing-focusedbusinesses. As Toppan reached its centenary at the turn of the millennium, it devised a new system ofvalues to define its roles and contributions as one of Japan’s leaders in information communicationsin the 21st century. We call these values Toppan Vision 21.

Toppan’s History
Toppan was founded in 1900 by a group of printing engineersfrom the former Finance Ministry who wanted to build an industry
around the most advanced steel-based printing machine of thetime, the Erhört Letterpress. The age was one of flourishing technology and industry. The Europeans of the day were flocking
to the International Paris Exhibition, while Japan was steadilybuilding up its modern industries in the aftermath of the Meiji
Restoration.
Japan’s printing industry of the early 20th century contributed
to society in three significant ways. Firstly, printing was used tocreate banknotes, bonds and securities, important ingredients inthe establishment of modern capitalism; secondly, it was used to
publish newspapers, the medium for public discussion on the

progress of civilization; thirdly, it was used to publish translations,novels and magazines that enlightened the populace and encouraged the establishment of the modern state.
Over the 100 years since its beginnings, Toppan has expanded
its operations and worked for the betterment of society in many
new areas while maintaining its focus on printing. Toppan has
continued to advance our information culture by printing books,
magazines, pamphlets, calendars, food packages, wallpaper, andcountless other items essential to daily life. In the field of electronics, Toppan enriches lifestyles by manufacturing products such as
photo-masks and color filters.
In the second half of the 1990s, the information technology
revolution gained momentum and accelerated the dismantling ofborders between markets. With the increased diversification of
information media and migration from analogue to digital technologies in the printing industry, the information processing technologies used in printing became highly sophisticated. The result
was a flourish of new activity in the printing industry in the muchbroader context of information communications.
To continue growing and fulfilling its social responsibilities as
a leader in the information communications industry in the 21st
century, Toppan created Toppan Vision 21, a declaration of thecompany’s vision, at its centenary in 2000.

The Erhört Letterpress—
the origin of the company’s
name (letterpress = Toppan)

Corporate Philosophy

Head office and factory of
the newly founded company(1900)

Each of us shallreciprocate our customers’ continued trust,create dedicated products byharnessing our vibrant knowledge and technology,
and contribute to a fulfilling lifestyle as
New and reprinted
magazines from the postwar
period (1945–1948)

Banknotes issued justafter the war

4

a mainstay of information and culture.

Business Activities and Social Responsibility
Toppan’s History and Value System

Toppan’s Ideas
The Toppan Vision 21 declaration is based on Toppan’s new
Corporate Structure and Business Fields. The Corporate Structure, inturn, is made up of three elements: Toppan’s Corporate Philosophy,
its Corporate Creed, and its Conduct Guidelines. These elements
specify the complete system of values and standards of the
Toppan Group.
Corporate Philosophy
The Corporate Philosophy underpins Toppan’s corporate activities
and defines its most important values and thinking. Each of thesix lines of the Corporate Philosophy has the following meaning:
Toppan and all of its members shall:
IShare these values and bear the responsibility of upholdingthem.
INurture and develop a relationship of trust with customers.
IContinue and strengthen its operations through the ever moreskillful use of color (the property crucial for creativity, detail, andfaithful reproduction in printing), knowledge (marketing andplanning), and techniques (technology).
ITake pride in its products and services and recognize theirimportance as creations for the customer.

Corporate Creed

IRecognize the universal role of printing as a medium for information and culture.
ICreate fulfilling lifestyles within society by giving shape to theaspirations to communicate both on individual and corporate
levels.
Corporate Creed and Conduct Guidelines
The Corporate Creed expresses standards that Toppan applies
to its activities. The Conduct Guidelines build on the Corporate
Philosophy, elaborate the Corporate Creed, and express the
behavioral norms for individual employees on the basis of compliance and corporate ethics.
Under no circumstances will any member of the Toppan Group
engage in an operational activity that infringes the rules of societyor poses any risk of environmental or social harm. Further, thegroup understands that any faltering in the development of its
operational activities may make it difficult to guarantee a profitable return for society.
The Conduct Guidelines are to be closely observed by every
employee if Toppan is to fulfill its social obligations as a corporate
citizen. The strict enforcement of these guidelines will continue
indefinitely.

Conduct Guidelines
Chapter 1

To build our customers’ trust throughsincerity, enthusiasm, and creativity
in all our corporate endeavors.
To strive for total innovation from a global
perspective by conducting marketing andtechnological development rich in originality.
To conduct fair and open business operations
while acknowledging our social
responsibilities and aspiring for harmony
with our global environment.

Basic Principles
1. Respecting basic human rights
2. Maintaining public order and standards ofdecency
3. Complying with laws and ethics
4. Conducting fair business operations
5. Appropriate disclosure of information
6. Environmental and safety considerations
Chapter 2

To create a positive working environment by
maximizing our individual talents andstrengths as a team.
To enhance our corporate standing andpromote the continual development of
the Toppan Group throughthe exploration of new possibilities.

Outline of Conduct Guidelines
Section 1 Building customer trust
Section 2 Reforming operations
Section 3 Fulfilling corporate responsibilities
Section 4 Creating a positive work
environment
Section 5 Developing the Toppan Group5

Business Fields and Society
Toppan has developed a rich array of technologies to enable printing on diverse materials and to expand
the applications of information communications in this new information age. Toppan strives to enrich society
by disseminating its vibrant knowledge and technology.

Expanding Fields of Business
Through ongoing research and development to meet customer
needs, Toppan continues to conceive new products and services,to produce them with ever greater technical skill, and to market
them with increasing efficiency. In parallel with its work to develop
new printable metals, plastics, and other materials, Toppan is creating printing technologies for a growing range of electrical components, holograms, and other innovative applications. And witheach new product Toppan develops, the services to accompany
them have developed into new business activities. To take one
example, the planning, special processing, and filling of foodpackaging have grown into important operations for the company.
Toppan’s original businesses, the printing of cigarette papers
and textbooks, have expanded into six business areas over the last
100 years: securities and cards, commercial printing, publications
printing, packaging, industrial materials (building materials), andelectronics.
Restructuring Toppan’s fields of business
Toppan Vision 21 is a vision of Toppan positioned to thrive as it
moves further into the 21st century in an environment of globalization, advancing information technology, evolving industry
structures, environmental plight, diversifying lifestyles and value
systems, and a dramatically changing business climate. Threestrategies form the core of this vision.

IEstablishing independence and originality
IPromoting software or service-based businesses
ITransformation into a global company
As a first step in forming Toppan Vision 21, Toppan has reconsidered its six main areas of business and allocated them into
three new fields: Information & Networks, Living Environment,
and Electronics. In addition, the company added Personal Services
and Next-generation Products, as two entirely new fields to be
expanded in the coming years. In all five of these newly defined
fields, the company introduced the concepts of “soft” and “service-based” businesses to its range of operations and laid downplans to strengthen them. Personal Services consists of services
that Toppan offers directly to individuals, while Next-generation
Products refer to the development of functional industrial materials that link with the next generation. With the establishment ofthese five business fields, Toppan seeks to become a global leader
in the information communications industry.
IInformation & Networks: supporting the businesses of our customers with services to process, manage, and administer content such as images, text, and acoustics; and enabling theefficient creation of new value through the use of this content.
ILiving Environment: providing products and services that contribute to comfortable lifestyles while meeting the needs ofboth individuals and society from environmental and otherstandpoints.

■ Toppan’s Business Fields

Nextgeneration
Products
Electronics

Packaging

LivingEnvironment

Vibrant
Knowledge
andTechnology Personal Services

Electronics

Information & Networks

Industrial materials

Securities and cards

6

Optronics

Commercial printing

Publications printing

E-businessBusiness Activities and Social Responsibility
Business Fields and Society

IElectronics: providing high-performance parts and electronics
products and services in the fields of semiconductors and displays.
IPersonal Services: providing valuable information, products, andservices to individual users by leveraging our information technologies, digital and security technologies, and marketing skills.
INext-generation Products: developing high-performance industrial materials for markets with large growth potential based ontechnologies such as coding and photo-lithography.
Transformation into a global company
Toppan has operated and staffed locally incorporated companies
and representative offices in Asia, the Americas, Europe, andOceania for many years. As a next step, the company plans tostrengthen the functionality of this industrial network in ways thatenable these overseas sites to interact more organically. Toppan is
also actively pursuing information exchanges on the latest technologies by forming technology partnerships and joint operations
with strong overseas enterprises. Toppan is leveraging its businessactivities in a globalizing market with plans to evolve into a global
corporation that can surmount the barriers of country, language,
and geographical distances as borders are dismantled in markets
for technology, human assets, capital and other business resources.

The Relationship with Stakeholders
Without strong ties to stakeholders, Toppan’s businesses would
quickly cease. The company recognizes the importance of maintaining good communications and building closer relationships oftrust with stakeholders. In a structured approach to these ends,
Toppan has defined five categories of stakeholders upon whom
its business activities deeply depend: customers, business partners,
communities, employees, and shareholders.
Giving shape to ideas: a company that realizes possibilities
The Toppan of the 21st century serves a customer base of morethan just companies: Toppan serves people, finds the possibilities
in every customer’s ideas, and realizes them one by one. By opening up new worlds of possibility for customers, the company
delights and surprises society itself. Internally, Toppan also strives
to realize the ideas of its own employees and the possibilities theyhold. This is a corporate stance that Toppan is already taking.

■ Relationships between Toppan and Stakeholders
Customers
Toppan’s customers are not just theenterprises with which Toppan does
business, but all individuals in society.
Toppan strives to merit the trust of its
customers by satisfying their requirements, staying attuned to the latest
changes in the environment, and adapting to the trends of the times with sincerity, enthusiasm, and creativity.

Shareholders
A complete and accurate understanding of Toppan’s activities is crucial toshareholders and investors. Toppan
understands this and goes to great
lengths to disclose its corporate information and explain its activities ina timely and appropriate manner. By
developing its businesses and increasing its corporate value, Toppan aims
to be appreciated by shareholders andsociety alike.

Business Partners
Another crucial ingredient in strong
customer trust is a steady relationshipof trust and cooperation with the suppliers that provide the raw materials,
the plants that manufacture products
in tie-ups with Toppan, and the othercompanies with which Toppan does
business. Toppan is building a system
to foster good trading relationships by
conducting business on an equal footing with its partners in a fair and open
manner.

Employees

Communities

The efforts of its employees are the single largest resource for Toppan’s business. Toppan strives to create a lively,energizing workplace and cultivate theindividual abilities of its employees asa token of its respect for them andgratitude for their contributions.

The business conducted by Toppan
affects local communities and theglobal environment in many ways.
Toppan strives to conserve the environment, win the trust of communities, and benefit society as a corporate
citizen.

7

Corporate Governance and CSR Activities
Toppan’s social responsibilities multiply as its business activities expand. In response, Toppan is pushing
to strengthen its corporate governance system and completely rethink its relationship with society andthe issues to be addressed. Toppan’s system to promote CSR activities is rapidly evolving.

Toppan Corporate GovernanceA central part of Toppan’s business strategy is to continuously
develop, increase its corporate value, and win the approval ofshareholders, customers, and ultimately, society as a whole. To
succeed at this strategy, Toppan’s management has embraced an
extremely serious commitment to the strengthening of corporate
governance.
Toppan has adopted an audit system in accordance withJapanese Commercial Law. The company has strengthened its
corporate governance system by establishing an Internal Auditor’s
Office and Compliance Department to fortify its system of internal
regulation. A corporate governance system must be compatible
with the details of a company’s business activities and scale.
Toppan believes that it can most effectively align its corporate
governance system compatibly with its businesses by imposing a
regimen of internal audits.
Board of Directors
Toppan’s Board of Directors consists of 31 directors, including one
outside director (as of the end of March 2004). Meetings of theBoard of Directors are held regularly each month, and wheneverpressing business requires action or deliberation. With regard toimportant business matters, the company applies a business deci-sion-making process that pursues efficiency via the work of aManagement Committee made up of executives from the head
office. In addition, Toppan has established a Center Head Committee made up of division chiefs and executives from the head
office to directly implement activities and review them from various perspectives.
Corporate Auditors and auditing firms
Toppan has adopted an audit system that requires regular inspections to assess whether all aspects of company operations are carried out smoothly and properly from a preventative perspective inaccordance with the company’s overall strategy and the legal
compliance of all directors and departments. Two of the four
Corporate Auditors appointed at Toppan are external. In addition
to meetings of the Board of Corporate Statutory Auditors every
three months, the meetings of the Board of Directors and meetings on the environment and other important issues are also
attended by a corporate auditor. The Corporate Auditors are additionally responsible for inspecting plants and other operating sites,
as well as auditing and appraising management.
The Corporate Auditors regularly receive advice from a financial
auditor, KPMG AZSA & Co. (formerly Asahi & Co), on methods toimprove company administration based on the results of financial
audits.

■ Toppan’s Corporate Governance System■ Toppan’s System for Promoting CSR

Meeting of Shareholders
Appointment or dismissal

Appointment or dismissal

President & CEO

Appointment or dismissal

Administration Office
Legal Affairs Division

Working
together

Board of Corporate
Statutory Auditors

Board of Directors

Internal auditors
External auditors

Directors
Outside directors

Audit Firms

Auditing

IInvestigates andaudits the legality
and appropriatenessof operational
activities

8

IConsiders issues
prior to board of
director meetings
IMeetings attended
by full-time
corporate statutory
auditors

Working together

Internal Auditor’s
OfficeManagement
Committee

Administrative
Departments
Supervising directors

Secretary Department
Information &Publicity DivisionCorporate Planning Division
Personnel &Labor Relations Division
Finance & Accounting Division

ComplianceDepartment

IPromotes strict
observance of laws
and regulations andthe establishment of
ethical businesspractices

Corporate Manufacturing
Technology & Research Division
Purchasing DivisionInternational Division

Business Activities and Social Responsibility
Corporate Governance and CSR Activities

System for Promoting CSR

Six Major Themes

To promote CSR on a wider scale, the President & CEO of Toppan
is leading the move to develop activities through collaboration
between related departments. The first step in this effort has been
to begin emulating the Corporate Structure described in the
Toppan Vision 21 declaration, the conceptual framework thatdefines what CSR is for the company and enables further consideration of its meanings. Next, on the basis of this Corporate
Structure, Toppan has reconsidered its commitment to every Toppan
activity from a CSR perspective. Lastly, to enable greater efficiency
and internal transparency regarding the company’s commitments,
the company has reviewed each of the current approaches fromthe perspectives of each of the related departments.
To further promote the environmental activities on which
Toppan has long focused, Toppan set up an Ecology Center under
the Corporate Manufacturing Technology & Research Division in1991. In April 1992, Toppan established the Toppan Declarationon the Global Environment as its fundamental environmental philosophy. To realize these goals through action, the company
embarked on environmental activities involving all employees.
Toppan’s commitment to CSR will continue to grow in the
future.

To heighten the impact and effectiveness of its CSR activities in
the future, Toppan has reviewed its social responsibilities andidentified the important issues to be addressed. Toppan knows ofmany ways that its business activities contribute to society. In
keeping with the provisions of its Corporate Philosophy, Corporate
Creed, and Conduct Guidelines to enhance these contributions,the company has identified six issues that should be addressed:
Corporate Governance, Compliance, Improving Customer Satisfaction, Respecting and Leveraging Human Assets, Activities forSociety and Culture, and Commitment to the Environment.
Toppan has identified specific issues within each of these six
topics and focused on their relative significance for the economy,society, and the environment—the three “bottom lines” that help
the company verify the adequacy of each of the issues identified.
Through these commitments, Toppan will seek to maintain thesustainability of its business operations and pursue its goal of creating value. This is how Toppan aims to continue growing andearning the trust of society as a solid corporate citizen.

■ Six Major Themes and Measures to Accomplish Them
Major Themes

Measures

Related Pages

Corporate Governance

IStrengthening audit and control functions
IPreparing a risk management system
IIncreasing the transparency of management activities

P. 10–

IEducation regarding the Conduct Guidelines andstrict enforcement
IInformation risk management
IApproach to the supply chain

P. 24–

IStrengthening quality assurance for products
IResearch and development aimed at value creation
IProducts and services developed with society in mind

P. 30–

IDevelopment and training of human assets
IHealth and safety, health management
IWelfare system

P. 36–

Activities for Society and Culture

IAdvancement of printing culture and its traditions
ISharing of impressions
ITree planting activities
IGreater symbiosis with local areas

P. 42–

Commitment to the Environment

IEnvironmental management activities
IEco-protection activities
IEco-creativity activities
IEnvironmental communication activities

P. 47–

Compliance

Improving Customer Satisfaction

Respecting and Leveraging Human Assets

9Comprehensive Corporate GovernanceToppan is striving to meet its social responsibilities promptly and thoroughly by strengthening
the auditing function of its business operations, maintaining a risk management system,
and improving both the compliance and transparency of its corporate activities.

Strengthened Auditing and Corporate Oversight Functions
Auditing by the Internal Auditor’s Office
The Internal Auditor’s Office assesses every site and plant in operation, principally through audits of management and operations.
Management auditing is conducted to verify and evaluate compliance with business goals, the effectiveness of risk controls, and avariety of other management areas with an emphasis on process.
Operational auditing confirms the status of compliance with laws
and internal regulations, mechanisms to prevent improper activities,
and the absence of outstanding problems with efficiency or accuracy
in company operations. Proposals for improvement are issued whennecessary. The audit results are reported to the President & CEOof Toppan and the directors in charge of the audited departments.
Thorough compliance
The Compliance Department, created in April 2003, spearheads
Toppan’s efforts to ensure compliance with laws and to firmly
establish corporate ethics systems throughout the company. The
department also takes charge of accurately determining the levelof conformance with regulations on compliance and suggesting
improvements. Systematic training and education based on the
Conduct Guidelines are continuously provided to Toppan employees and Group companies. Toppan has also established theToppan Helpline, an internal reporting system already proving
effective as a reinforcement for the compliance function.

Risk Management System
Companies nowadays are vulnerable to new types of crises asadvances in information technology have ushered in a new wave
of computer-related crimes, as well as issues to do with intellectual property rights and the ownership of technologies. The pressing concerns of the environment also continue to weigh moreheavily nowadays, and the pressures of compliance demand theconstant attention of management. As these issues grow inimportance, the establishment of outstanding crisis management
policies becomes all the more urgent.
From 1993, a newly established Company-wide Crisis Management Committee at Toppan began setting up a regimen of crisis
management measures. Later, in 2002, the company launched a
Crisis Management Project to correct inadequacies that it perceived in its crisis-prevention measures. Toppan is now reformulating a comprehensive risk management system that incorporates
the functions of both crisis management and risk management.
Managing and understanding risks
In creating its comprehensive risk management system, Toppan
began by identifying the most threatening risks to the company—
the risks that require tight and absolute control. As shown in thechart below, Toppan has instituted a systematic method of risk
management that allots the responsibility of risk response to specific departments based on the types of risks involved.

■ Risks to be Managed and the Divisions in Charge of Risk Response
Risk to be managed
Accidents or complaints related to products

Corporate Manufacturing
Technology & Research

Accidents or disasters related tocompany operations

Accidents related to a basic process

Business Innovation

Accidents at the workplace, traffic accidents, other accidents involving employees

Personnel & Labor Relations

Debt-related incidents

Finance & Accounting

Legal problems with orders received

Legal Affairs

Leakage of personal information or internal confidential information

Legal Affairs

Leakage of personal information or internal confidential information through a computer
network

E-business

Damage to the company’s computer system for customers due to cyber terror, illegal
access, illegal usage, etc.

E-business

Accidents or disasters related to fires or explosions

Corporate Manufacturing
Technology & Research

Illegal activity related to the storage of solvents, management of hazardous chemicals, etc.

Corporate Manufacturing
Technology & Research

Damage to the company’s internal computer system due to cyber terror, illegal access,illegal usage, or leakage of personal information or internal confidential information

Business Innovation

Defamation, slander, or othercriminal damages

Crimes against the company (threats, bribery, theft)

Personnel & Labor Relations

Natural disasters

Material losses or personal accidents sustained by customers or the company due toearthquakes, wind or water damage, lightning, etc.

Personnel & Labor Relations

Unlawful activities related toexternal contracts

Violations of Subcontract Act, illegal activity with suppliers

Corporate Planning

Infringement of intellectual property

Infringement of patents, trademarks, copyrights

Legal Affairs

Environmental problems

Violations of environmental laws or standards, illegal disposal of industrial waste

Corporate Manufacturing
Technology & Research

Risks related to overseas operations

Accidents involving products, sexual harassment, environmental problems, fires, natural
disasters, etc.

International

Material or personal losses sustained by customers or the company due to international
strife, terror, etc.

10

Division

Accidents involving products/
product liability

Business Activities and Social Responsibility
Comprehensive Corporate GovernanceImproving the Transparency of Management
Toppan is working to improve the transparency of its management activities in order to earn the ongoing the trust of society.
Much of this effort focuses on the active disclosure of information. From its very beginnings, Toppan has actively created anddistributed communication tools to satisfy the needs of its stakeholders and uphold its priority of communicating with society.
With these tools, Toppan reliably fulfills its duty of explaining its
operations with timely and appropriate information.
Strengthening IR activities
Many of the IR activities undertaken at Toppan focus on communication and information disclosure to shareholders. In keepingwith its Basic IR Policy, Toppan uses its websites to ensure fairness
and transparency in its disclosure of IR information. In April 2004,
Toppan began providing a rich and easily accessible source of company information by launching a website devoted to IR activities.
Toppan has been announcing its financial results on a quarterly
basis since fiscal 2003. Public meetings with institutional investors
and analysts are also held in May and November to explain thecompany’s interim and full year results. All documents distributedat the meetings are posted on the company website for the benefit of those unable to attend. Toppan also publishes a quarterly
newsletter for shareholders, Toppan Story, and an annual reportin English.

IR website
http://www.toppan.co.jp/ir**Information also available in English:
http://www.toppan.co.jp/english/ir/index.html■ Basic IR Policy

1. Standard for Information Disclosure
Toppan complies fully with the Tokyo Stock Exchange’s rules on timely disclosure. With regard to information not covered under the rules on timely
disclosure, Toppan maintains a policy of actively and fairly disclosing all
information of potential use to shareholders and investors in understanding Toppan’s businesses. The principal channel for disclosure is the company website.
2. Methods of Information Disclosure
As stipulated under the Tokyo Stock Exchange’s rules on timely disclosure,
information required to be released will be posted on the TDnet network
operated by the Exchange. All information released through TDnet will
also be promptly posted on the company website.

■ Toppan’s Information Tools for Stakeholders

For All Stakeholders

For Customers

Corporate guide
CSR report

Various reports on business
operations

Various reports on business fields

Various brochures on products

Website, etc.

Various newsletters, etc.

For Shareholders

For Business Partners

Shareholder newsletter Toppan
Story

Procurement guidelines website
Purchasing Guidelines, etc.

Recent financial data
Annual report (in English), etc.

For Employees

For Communities

Internal newsletter CONVEX

Plant guides

Overseas internal newsletter
Interlink

Operational site report

Pamphlets on welfare benefits,
etc.

Annual report Printing Museum,
etc.

11

CSR Activity Highlights
Topics
2003

Topic 1CSR Communication Fair
CSR is now becoming a key corporate issue. Many firms are publishing CSR reports and establishing
CSR promotion departments, but by their own admission, the choice of appropriate CSR activities
can often be confusing. As a leader in information technology, Toppan has helped clarify CSR
to others in the industry by holding a CSR Communication Fair.

2

Day 2: Audiences had the opportunity to review
lifestyles and work habits as speakers discussed
issues that influence the quality of work.
Discussion topics ran the gamut from working
environments for employees to the importanceof the population problem in creating sustainable societies.

1

Day 1: Speakers described the many benefitsof CSR in raising corporate value. Their presentations covered many of the latest developments in Europe, the region most actively promoting CSR, and developments in socially
responsible investing (SRI), another area ofconsiderable interest for many companies.

Tackling CSR together
Toppan held a weeklong CSR Communication Fair from January 26 to January 30,
2004, at the PLAZA21 showroom on
the 2nd floor of the Toppan Koishikawa
Building. The goals of the event were toemphasize the importance of communication with stakeholders in the promotion of CSR activities and to convey thisimportance to as many people and companies as possible.
Seminar audiences had the opportunity
to exchange frank opinions with representatives from NPOs, academics, and otherexperts on CSR heading up the seminarprograms. As many as 11 programs were
held under the five core themes thatcompanies must address in promoting
CSR: Management, Quality of Works,

12

Environmental Reports, Advertising andPublic Relations, and Relationships.
Other events included an exhibition of
CSR reports from inside and outside Japan,
as well as a panel presentation entitled“The Concept and Function of CSR Communication from the Toppan Perspective.”
Many visitors expressed a growing interest in CSR issues and carefully read actual
reports in a hands-on workshop.

3

Day 3: The focus of discussions turned toenvironmental reports. Environment goo, an
organization that operates a portal site relating to environmental issues, fielded questions from corporate managers in charge of
producing these reports.

Raising the “receptiveness” ofcompanies and reinforcing thetrust of stakeholders
As companies strive to build trust with
their stakeholders and raise their corporate
value through communications, Toppan
believes that they must embrace theopinions of their stakeholders. To improvetheir ability to do so—or what Toppan
calls “receptiveness”—companies must
distribute information through CSR communication and actively collect feedback
from stakeholders with a full recognitionof the value of stakeholder opinions andthe intention to use them as a guideline
for improvement.
The process is very similar to the PDCA
(Plan-Do-Check-Action) management cycle
used for environmental activities, but with

CSR Activity Highlights
Topics 2003

■ Theme of CSR Communication Fair

■ CSR Communication Fair Overview
Dates: January 26 (Mon.) – January 30 (Fri.), 2004
Organizer: Toppan Printing Co., Ltd.
Cooperating Organizations: Environment goo, Nikkei Ecology,
Nikkei Eco Management Forum
Site: Toppan Koishikawa Building, 2F PLAZA21“CSR Communication = Creating a Network of Trust and Quality”■ Main Programs of CSR Communication Fair
January 26 (Monday): Management• CSR Progress in the EU
Latest information from the EU (presented by the
KPMG Group)• CSR & SRI
What do fund managers think about CSR?
January 27 (Tuesday): Quality of Works• Nurturing the Next Generation and New Directions
for Corporate Measures
The corporate responsibility to nurture the next
generation• Global Compact—Human Rights and Labor
Practices
The corporate vision under the Global Compact
The difference between legal compliance andhuman rights problems

4• Employability
CSR involves far more than just management
mechanisms
The importance of raising the quality of the individual worker
January 28 (Wednesday): Environmental Reports• Feedback Meeting on the Environment goo
Awards
The future of environmental communication
through interactive media• Environmental Report Symposium 2003
The Environment goo survey and its bearing on
future environmental reports*The Wednesday program was organized byEnvironment goo

Day 4: The theme shifted to advertising andpublic relations, two key aspects of CSR
strategy. Ad creators led a discussion oncommunication methods that resonate withstakeholders.

an important difference. In the “Check”
component of the cycle, CSR places far
greater importance on the tasks of disclosing information to stakeholders, receiving
feedback, and making reforms.
Toppan intends to use the many opinions generated by the CSR Communication Fair as a resource to increase its
knowledge and technology in the information communications industry. Meanwhile, Toppan will continuously support
companies to raise their “receptiveness”—the single-most important quality forany enterprise seeking to develop its CSR
communication activities, build a networkof trust and quality with its shareholders,and enhance its corporate value throughthe CSR approach.

January 29 (Thursday): Advertising and Public
Relations• Messages to Society through Public Service
Announcements
The history and meaning of public service
announcements
The power of their message. Distinctions fromadvertisements for products• CC Tool Relationship and 2003 Report Analysis
The future of corporate public relations
January 30 (Friday): Relationships• Community Communication
The importance of community communication
based on corporate-NPO collaborations• Communication with Stakeholders
Open discussion
CSR communication means creating a network oftrust and quality

Visitors to the 1st floor lobby of the Toppan
Koishikawa Building perused panel displays on
Toppan’s CSR Initiatives and The Concept andFunction of CSR Communication from the
Toppan Perspective.

5

Day 5: Participants explored the ways thatcompanies build relationships with stakeholders and the types of CSR communication thatcan raise trust to a higher level.

CSR booklet published
In July Toppan published CSR Communication, a booklet reporting the contentsof the seminars at the CSR Communication Fair.
One of the goals of Toppan’s CSR
activities is to share the benefits of thefair with as many people as possible.

Title: CSR Communication
Published: July 15, 2004
Publisher: Toppan Printing Co., Ltd.
Binding: A5 size, 228 pages
Copies published: 3,00013Topics
2003

Topic 2

Award for Distinction as a Corporate Citizen from Bunkyo Ward
In January 2003, Bunkyo Ward of Tokyo
conferred Toppan its Award for Distinction as a Corporate Citizen in recognitionof the company’s exemplary social contributions as a widely trusted partner in thelocal community.
The award was presented principally
to honor Toppan for the social contributions of the Toppan Hall and the Printing
Museum, Tokyo, two facilities located in
the Toppan Koishikawa Building in Bunkyo
Ward.
Through visits to the Printing Museum,a great many people in the community
have learned about the role and significance of printing in the development of
human civilization. The museum has beenhighly praised for its comprehensive activities, particularly its hands-on learning
workshops for elementary school students and others from Bunkyo Ward.
Toppan Hall, meanwhile, fosters interest in classical music and nurtures young
talent in the community by hosting musical events. The Hall holds about 40 events
each year, drawing interest from all overJapan and even overseas.
In keeping with its function as a venue
for communication with the local community, the Toppan Koishikawa Building
has abundant public space. Toppan is
also working in cooperation with local citizens in Bunkyo Ward to support the“Fumi no Miyako—Ichiyo Monogatari”

project in honor of Ichiyo Higuchi, a local
authoress from the Meiji Era.

Toppan President & CEO Adachi receivinga plaque and certificate from the Bunkyo Wardchief Kemuriyama

Topic 3

Institution for Digitization of the Palace Museum Heritage
Toppan has joined hands with the Palace
Museum, the largest national museum in
China, in a project to preserve and circulate cultural artifacts using digital technologies. On October 23, 2003, the Palace
Museum opened a new institution, theInstitution for Digitization of the Palace
Museum Heritage, and announced plans
to present a large-scale virtual reality presentation entitled “The Palace VR: The
Forbidden City—the Emperor’s Palace.”
The institute will be engaging in thefollowing activities in the coming years:
IRecording and storing three-dimensional
measurements of the palace buildings
and artifacts
IVisually rendering the palace buildings
and artifacts
The institute will also be fosteringexpertise on the use of digital technology
at the Palace Museum.

A VR reproduction of the Hall of Supreme Harmony as it stood in the 18th century© 2003 The Palace Museum Digital Institute

The Digital Institute completed on the palacegrounds

14

High-definition VR theater with giant screen(4.2 × 13.5 m)

CSR Activity Highlights
Topics 2003

Topic 4

GX Film Wins Kinoshita Award
With the help of its advanced thin-film
manufacturing and coating technologies,
Toppan has developed an advanced GX
film that forms a unique barrier layer overfilm substrates.
The environmentally-friendly GX film
shields against moisture with the same
outstanding effectiveness as aluminum
foil, but requires less energy to incinerate.
The non-metallic transparent materials
composing the film make it possible toverify the contents of packages with the
naked eye and perform content analyses
with a metal detector. The film offers ahighly stable packaging solution for food,household articles, pharmaceuticals, andelectronic parts.
In recognition of the superior properties
of GX film, the Japan Packaging Instituteconferred the film its 28th KinoshitaAward in the R&D Category in May 2004.
Each year, the Kinoshita Award goes out
to outstanding achievements in the worldof packaging technology R&D, in memoryof its namesake, Matasaburo Kinoshita,
the late chairman of the association.

Highly functional GX film

Toppan receives an award for its GX film
from the Japan Packaging Instituteto this effort. These measures, in combination with the improved processing efficiency of the installed equipment, led to
far better emission control.
For fiscal 2004, Toppan targets a reduction in atmospheric toluene emissions ofaround 1,500 tons from the fiscal 2003
level. To help achieve this target, waste
gas processing equipment will be installedat four more plants.
Toppan plans to sustain these efforts
over the medium and long term. Startingfrom fiscal 2003, the company has tar-geted a 90% reduction in atmospheric
toluene emissions compared to the fiscal
2001 level by the end of fiscal 2005.
Toppan will strive to meet all of its targets
by developing more new technologies,
introducing more equipment, and promoting new activities to reduce environmental burden.

Non-toluene ink

Waste gas processing equipment installedat the Gunma plant

Topic 5

Reducing the Use of Toluene
Toppan is promoting activities to reduce
the use of toluene, a Class I designatedchemical substance under the PRTR Law,by setting environmental targets for all
the companies in the Group.
For fiscal 2003, the company set thegoal of reducing atmospheric emissionsof toluene by 40% compared to theemission level of fiscal 2002. The actual
result was a 38.8% reduction, or a 98%
achievement rate. The goal would havebeen easily achieved had it not been for
delays in approvals for the installation ofwaste gas processing equipment in certain plants. As a result, operation of theequipment had to be postponed to fiscal
2004.
While Toppan fell about 1% short ofreaching the target, the reduction of
more than 2,000 tons of toluene emissions represents a major achievement in
reducing an environmental burden. The
expanded use of non-toluene ink andthe introduction of new toluene emission
processing equipment contributed greatly

15Topics
2003

Topic 6

Trading Greenhouse Gas Emissions
Trading greenhouse gas emissions:a trial business
Reducing the emissions of greenhousegases requires significant financial resources. When acting individually, companies face limits in the scope of emission-control activities they can pursue. To
surmount this problem, some enterprises
have taken up the practice of trading
emission allowances. Through the mechanisms of market economics, companies
in various industries pool their efforts tomeet the emission targets collectively
with minimal economic sacrifice on an
individual basis. Companies have alsoteamed up with the Japanese Ministry of
the Environment to form a trial businessfor the trading of greenhouse gas emissions through fiscal 2003 and 2004.
Toppan is taking part in this trial.
■ An Overview of Trading inGreenhouse Gas Emissions
Trading of emission amounts

Reduction amountEmissionamountEmissionallowance

Reduction amountEmissionamountEmissionallowance

Company A

Trading of emission
allowances

Company B

Company A can purchase the emission allowanceof Company B, a trading partner that has reduced
its emissions to below the level targeted.

The 54 companies taking part in the trial
business include 31 companies with individually set emissions targets for greenhouse gases, 11 companies undertaking
in-house emission-control projects, and12 companies working to verify emission
amounts, monitor emission reductions,and trade the emissions. Project participants are developing optimal methods tocalculate emission levels, verify emissions
directly, trade emission allowances, andconfirm the status of targets.
Overview of the trial businessTo survey the emission sources for thesix greenhouse gases stipulated in the
Kyoto Protocol, Toppan investigated fiveplants engaged in Toppan’s Information& Networks, Living Environment, andElectronics businesses. Of the 64 emission
sources tested, the survey found that its
emission research was applicable to 26.
The largest emission sources were confirmed to be related to fuel oil and electricity usage, and nearly all of the greenhouse gas emitted was carbon dioxide.
Through its participation in the trial
business, Toppan has mastered the basic
methods to calculate the levels of greenhouse gases discharged from its facilities.
From this point forward, Toppan is readyto begin the trading of emission allowances. Toppan failed to meet the strict
emission targets set under the trial busi-■ Sources of Greenhouse Gas Emissions: Examples
SourceEmitted greenhouse gas
CO2Fuel oil usage (gas, heavy oil, kerosene, gasoline, etc.)

A

Electricity usage

A

CH4

N2O

A

A

Dryer usageAA

Use of household appliances (stove, kettle, etc.)

A

A

Driving car

AA

Wastewater processing to prevent water pollution

A

A

A

A

Use of air-conditioner and refrigerator

A

PFCs

Greenhouse gas% of total

Carbon dioxide

CO2

99.6%

Methane

CH4

0.21%

Nitrogen dioxide

N2O

0.17%

Hydrofluorocarbons

HFCs

below 0.1%

Perfluorocarbons

PFCs

below 0.1%

Sulphur hexafluoride

SF6

below 0.1%

■ Greenhouse Gas Emission Ratio(by Emission Source)
Other 0.3%

A
A

Note: CO2 emissions from the use of electric power are not direct emissions at the place of use, but indirect emissions causedby fuel consumption in electricity generation.

16■ Overall Greenhouse Gas Emissions(by Gas Type)A

Use of transformer equipment with SF6
Use of cleanser containing PFCs

SF6

Future measures
The trial business to trade emissions has
already demonstrated the value of greenhouse gas reduction as an economic
investment that provides further incentive
to implement energy-saving measures.
Toppan will be incorporating the tradingmechanism in its overall strategy for theongoing reduction of greenhouse gas
emissions. The government/industry collaboration in trading emissions and reducing greenhouse gases has provided alearning opportunity that will lead to thedevelopment of better emission-control
systems in the future. Toppan researchers
will be studying all the issues arising fromthe current project, as well as new issues.

Incineration ofindustrial waste 6.5%

Home generator usage

Incineration of industrial waste

HFCs

ness—targets stricter than actual conditions—but it compensated for the surplus by emission trading.

Fuel oil usage
39.2%

Electricity usage
54.0%

Note: Covers the five plants surveyed for trial business.

CSR Activity Highlights

Roundtable Discussion

What We Expect from CSR
On July 27, 2004, five speakers from the CSR Communication Fair were invited to
the Toppan Koishikawa Building for a roundtable discussion on public expectationsof Toppan’s CSR efforts. After a tour of the Printing Museum and PLAZA21 showroom,
Hideto Kawakita opened the discussion as moderator. The participants expressed many
valuable opinions from their various standpoints.

CSR is something created byeach company

to fulfill a common CSR standard. Too

independently select the measures it

many different conditions apply.

needs to take. We can’t dismiss standard-

Each person, each company, should

ization unless we meet our corporate

Hideto Kawakita: To start off this round-establish its own framework of social

responsibilities in the ways best for us.

table discussion, I would like to hear yourresponsibility. That’s the opinion I think

Kawakita: Mr. Kumon, can we hear yourviews on the exact meaning of CSR. Mr.

Japanese companies should voice on thisperspective as an executive in charge of

Shibusawa, what do you think?

issue.

CSR?

Ken Shibusawa: The standardization of

Masayasu Ishida: I agree completely.

Masato Kumon: At my company we’ve

CSR has recently been an issue of con-

Take corporate governance as an exam-

been having detailed discussions on whatsiderable debate. Some are even asking

ple. Some Japanese companies use a

CSR actually is. The reports, GRI guidelines,

whether social responsibility should becommittees system while others conductand other standards are certainly usefulincorporated into ISO and other standards.

audits. It would be unfair to pressure thebenchmarks, but we often encounter

This push to standardize is basically com-latter to switch to the committees systemitems that don’t apply to our company or

ing out of the West, and most Japanese

as a standardized form for CSR. That

to what we do. We also spend a lot ofcompanies oppose it. While I certainly see

would be a great mistake.

time trying to decide which of our activi-

the need for standardized CSR and SRI, I

This doesn’t mean that companies

ties can be considered “CSR activities.” Itthink the current efforts are fraught withshould have an easy time of it. Every cor-would be helpful to have specific exam-

dangers. Two companies working in

poration must carefully arrange its own

ples of what CSR means for companies inentirely different fields cannot be expected

CSR issues, its own CSR concepts, anddifferent industries.

17

Roundtable Discussion

What We Expect from CSR

I would like to see Toppan clearly articulate what CSR means to Toppan.

Inform readers of results rather
than systems

departments that administer operations
that go beyond products and systems, it’s

Tsutomu Iijima: To create somethingoriginal, a first and vital step is to find out

Kawakita: Ms. Furuya, what items do

insufficient to profess P without pressing

what hasn’t yet been recognized. Our

you think should be included in a CSR

ahead to the stages of D (do), C (check),company is taking that step now. We’rereport?

and A (action). I’d like to see more effort

asking: What haven’t we yet identified?

Yukiko Furuya: CSR reports should focus

in these areas.

Kawakita: I think of the contents of aon the issues being addressed, the mea-

Ishida: And we hope to make more effort.

CSR report as a corporate philosophy. Asures being taken to address them, theKawakita: I think it’s helpful to write

company’s corporate philosophy andobjective disclosure of information, andabout mistakes, as well. Companies some-declarations summarize its social respon-

the advantages and disadvantages oftimes fail at what they attempt due tosibilities. If a company defines its original

those measures. It’s important that peo-insufficient effort or poor understanding.

position in its philosophy, the mostple don’t perceive CSR as a kind of PR tool.

A company that frankly discloses its fail-important point is the actual effort to live

Ishida: We have tried hard to fill Toppan’sures but reaffirms its commitment to suc-by that philosophy. This is especially true

Environmental Reports with just that kindceed in the future will gain people’s trust.

in the areas of compliance and the envi-

of content. With our CSR Report we’llThat’s something easy to understand inronment: every company must choose aneed to go even further.

a report.

level of commitment, describe it in its

Kawakita: The CSR reports should inform

conduct guidelines, and follow through.

readers of results rather than systems.

I try to learn the concrete measures

People would find it tedious to readcompanies take to fulfill their corporate

through long descriptions of the various

declarations.

Instilling the corporate
philosophy in every individual

systems and policies put into effect. People

Shibusawa: I often ask myself, who isThis is one reason why I value Toppan’s

want to know what the company is actu-

the corporation? When people talk about

CSR report so highly. It derives its major

ally accomplishing with its various systems

CSR, sometimes they’re just reciting thethemes from the contents of Toppan’s

and policies.

words. How deeply do employees actu-

Corporate Philosophy, Corporate Creed,

18

companies are embarrassed to skip. For

I’d like to see the company do more inally consider the “social responsibility” ofand Conduct Guidelines.

the areas of personnel and corporate

their corporation? I don’t want to see

Ishida: Thank you.

ethics. All too often Toppan’s explana-“CSR” become just another slogan trum-

tions of its PDCA cycle end at the P (plan-

peted by the CEOs.

ning) stage. PDCA shouldn’t be touted as

Ishida: The employees of a corporationa kind of “theme”; it should be a process

should be universally aware of their cor-

Ken Shibusawa

Yukiko Furuya

Hideto Kawakita

CEO and founder of Shibusawa & Co., offering
consulting services on alternative investments.
Previously with JP Morgan, Goldman Sachs,
and Moore Capital Management. Director of
Keizai Doyukai and Director of Shibusawa
Eiichi Memorial Foundation.
A frequent writer and lecturer.

Representative of the ComplianceManagement Research Group in the East
Japan Branch of the Nippon Association ofConsumer Specialists. Began consulting
on CS management and compliancemanagement in 1997.

CEO of IIHOE: International Institute for
Human, Organization and the Earth.
Formally worked as international recruiting
officer, as secretary for Diet members, Chief
Representative of Operation Raleigh Japan.
Founded IIHOE in 1994, to support nonprofit
management and corporate environmental/social management.

CSR Activity Highlights
Roundtable Discussion: What We Expect from CSR

Ishida: This is a very serious issue forporate philosophy. If they’re not, their
management has failed.

Together with stakeholders

Toppan. You’re right that our business is
set up as a B2B structure. But we have to

Iijima: The corporate philosophy, social
responsibility, and so forth are more than

Iijima: A skillful facilitator is very helpful inunderstand the situation of C, the con-just individual topics for in-house semi-

instilling a corporate philosophy through-sumer, to maintain trust in developing

nars. Every employee must understandout the ranks of a company. Facilitators

our business with other businesses.

the importance of these issues as expres-don’t have to be employees. A good

And as a printing company we mustsions of corporate value that protect theapproach would be to hold stakeholders

respond carefully to CSR issues thatway they live and even give them pride.

meetings and create the CSR report in col-involve the end user—the consumer—

If this awareness can be instilled, thenlaboration with stakeholders.

and we must directly bear the burden of

the corporate philosophy takes on a lifeof its own.

Most companies have tried to address

our social responsibility.

CSR management from within the scopeWith this in mind, we completely

This isn’t about memorizing the corpo-

of corporate governance. This approach

understand the importance of creating a

rate values, but living them. CSR should-

is far too narrow. When you consider CSR

structure in which we can obtain feed-n’t be taught directly, but incorporated in

activities from the viewpoint of the wholeback from consumers.

a system of active study for the employ-of society, the most important point is to

Furuya: The “customer first” principle noees. Management and study should becreate activities that everyone can do. A

longer sets companies apart. So many

enjoyable from the outset, and the con-

CSR report functions as one index of this.

companies nowadays tout “customer

tents should be well considered. Courses

First, we need to design a model study

first” as a public relations slogan. I’d likeoutside of the company, courses for

program based on careful considerations

to see more specific management mecha-

employees when they’re on their own,of the learning content we need. Next,

nisms and measures that meet standards.

are ideal.

we have to consider the scheduling, theSlogans alone don’t build trust.

Ishida: You’ve talked about “enjoyablevenue, and the ways we can apply thestudy.” This year at Toppan we’ve insti-

program to people.

tuted an e-learning course to study the

Kumon: What mechanisms does Toppan

Conduct Guidelines, or the company’s

apply to absorb the opinions of its con-CSR.

sumers and stakeholders? It must be chal-

Shibusawa: Who are the CSR reports

lenging for a company with a B2B struc-for? Many companies seem to use themture and customers with overlapping

for public relations, but I wonder about

interests. Do concerns about Toppan’s

their audiences. Are they for investors?

position make this difficult?

End consumers?

Tsutomu Iijima

Masato Kumon

Masayasu Ishida

President of CO-WORKS. Environmental
strategist and planner. Worked as a development adviser to Matsushita Electric Works,
Ltd., Nissan Motor Co., Ltd. and other companies in different industries. Participated inenvironmental development and design forbasic framework policies on regional development projects.

Executive General Manager of theEnvironmental Affairs Department of Suntory,
Ltd. Responsible for promoting the environmental conservation activities of the Suntory
Group, including the education of the next
generation on water source cultivation andother environmental measures. Actively serves
as a council member in the Global Reporting
Initiative Japan and as a supporter of several
other industrial organizations.

Senior Managing Director of Toppan Printing
Co., Ltd., in charge of Information & Publicity
and Legal Affairs divisions. Formerly worked in
the Secretary Department, in the International
Business Law Center, and as President ofToppan Co., Ltd., President of Toppan Hall
Co., Ltd., and President of Toppan Character
Production Co., Ltd. Currently manages CSR
promotion activities.

Who is the CSR report for?

19

Roundtable Discussion

What We Expect from CSR

Ishida: We produce our Environmental

report could easily surpass 100 pages.

Report for a wide segment of society,Ishida: That’s actually happened. The CSR

Complete protection of
consumers

including all Toppan’s stakeholders. For

Report for 2004 is about 100 pages.

our CSR Report and other major publica-

Kumon: There’s a limit to what the aver-Kawakita: I’d now like to turn the dis-

tions, we take a more focused approach,age consumer can absorb. It will be diffi-

cussion to the specific CSR activities

reconsidering our purposes and carefully

cult to make the report both comprehen-

expected of Toppan. Ms. Furuya?

defining target readerships. Should wesive and readable.

Furuya: How does Toppan realize the

distribute our annual report exclusively to“customer first” principle?

investors? Should we write up our financial results exclusively for the analysts?

Toppan needs concrete policies, guide-A report worthy of Toppan

Toppan has assessed the current situationlines, or standards in this area. Your
Conduct Guidelines state that the com-and is now making a new start.

Kumon: Back in the showroom we saw

pany will respect “the rights and interests

Shibusawa: If I gave last year’s Environ-an exhibit on on-demand printing andof others,” but you make no mention ofmental Report to my wife, an average

single-copy books. What would it be like“consumer rights.” The Basic Consumer

consumer, she wouldn’t be able to under-

to create an on-demand CSR report tai-Protection Law was passed in 1968, andstand it. The contents are too specialized.

lored for the target reader? A service likethe Basic Consumer Law revised thisyear makes direct mention of the “rights

Wouldn’t it be better, after you’vethat would give Toppan the chance todone all these good things, to write up

show off its advanced capabilities andof consumers” for the first time ever inthe report in simpler terms that everyone

worthiness as a corporate citizen.

this country. Consumers have become

can understand? Today, for example, we

Ishida: That’s an interesting idea.

important.

toured the Printing Museum and corpo-

Iijima: I just visited an exhibit on the

Corporations like to think in terms ofrate showroom. The clearly presented dis-dawn of printing in Japan at the Printing“customer needs” instead of “customer

plays showed me how interesting theMuseum. It gave me a sense that printing

rights,” a concept that strikes them as

printing industry really is.

can be used to bring more fairness toslightly aggressive. But however you

Ishida: Up until recently, Toppan devel-

society as an equitable form of communi-

phrase it, the thinking is changing.

oped its business under a B2B structure.

cation. It also seemed to be a good repre-

Kawakita: Mr. Kumon, what do you

We’re now placing more of an emphasis

sentation of CSR at Toppan—a represen-think?

on C with plans to widen the scope oftation I couldn’t easily find before. The

Kumon: Above all else, it’s about safety

our B2C business in the future. To do so

exhibit also gave me a powerful sense ofand trust. Besides packaging materials,

we need to think much more about thethe visions that the very first printers had,

our company frequently asks Toppan toaverage consumer.

hundreds of years ago. If you can some-manufacture custom products in small

Kumon: Now that you’ve evolved fromhow express those same visions in yourlots. Internal and external regulations

the Environmental Report to the CSR

CSR Report, I think readers will easily

apply to the raw materials for these prod-

Report and adopted the triple-bottom-

grasp Toppan’s CSR.

ucts, as well. I’d like to see greater trace-line approach, you have so much material

The tumultuous expansion of the print-

ability of foreign procurement. Whento cover. With everything included, theing industry is important, and the chal-

Toppan holds product campaigns, I wantlenge to enter new areas

to see the company take scrupulous careis appealing. But morein protecting personal information andimportant for Toppan’s

information on customers.

CSR are the roots of

Ishida: Of course these are all very impor-

Toppan’s business, tech-tant issues to Toppan. Personal informa-

nological innovation intion should never be leaked; materials

printing, and the estab-should never be untraceable. As a com-lishment of fair and equi-pany that provides products and services

table communication inin food, apparel and housing industries,

society.

Toppan places special emphasis on foodsafety and the security of personal information.
Unless a company has been Privacy
Mark certified, it won’t be entrusted with

20

CSR Activity Highlights
Roundtable Discussion: What We Expect from CSR

the business of handling personal infor-

store information, we try

mation. And that’s not all. We’ve reached

to build as much trust as

an era in which transactions begin withpossible. We gain part ofcompanies taking technical, systematicthat trust by developing

and consistent measures to meet theirtechnologies that guard

responsibilities.

against inadvertent leaks.

When a company considers introduc-

We also create manying a new technology, it has to incorpo-

rules to ensure that therate a mechanism for foresight in its busi-

procedures taken com-ness model. Take the introduction of RFID

plement the security pro-tags for the traceability of food as an

vided by the technology.

example. Before introducing the technol-

There are also official

ogy, Toppan must anticipate its effects on

certifications that further

the market many years into the future.

complement our efforts,

Iijima: I’d like to hear more comprehen-

as well as in-house rules that apply exclu-

sive communication on Toppan’s efforts

sively to Toppan.

Toppan is doing a great deal toenlighten the public on the company’s

to guarantee safety for all of its customers.

We also realize that top managementrole in society. Even so, I don’t think con-This process of guaranteeing safety forneeds a sharp awareness of the issues it

sumers have a clear picture of how

individuals hasn’t been widely discussed

seeks to instill through the ranks of the

Toppan’s businesses work. This is proba-

in Japan. As I’m given to understand, thecompany through in-house training. At

bly significant in terms of your manage-

process begins with the guarantee ofToppan we send our top executives

ment strategy, too.

bodily safety, which in turn leads toaround the country to witness the activi-

Kawakita: This brings us to the topic of

the assurance of freedom of thought,

ties of all of our plants firsthand and sharesocial contribution. Mr. Kumon, what canwhich in turn leads to freedom of action.

their own knowledge on quality issues

you tell us about social contribution from

Complete bodily safety creates a trustwith the workforce of 30,000 men andyour perspective as an executive of athat enables a person to think freely, andwomen in the Toppan Group.

company that operates a major concert
hall?

the ability to think freely enables a person
to act freely. In the case of the consumer,
freedom of action leads to consumer

Social contributions are a social
responsibility

Kumon: Now we’re in the process ofchanging our corporate slogan to “Livingwith water. Suntory.” This is a declaration

activity.
With regard to food products, someFuruya: A few points on consumer edu-of the entire Suntory Group. We actively

sort of project that allows all of the stake-cation. We talked before about e-learn-

support organizations in both water andholders to confirm the assurance of safety

ing, but I don’t see how this relates toforestry fields and undertake our own

would help people understand.

the consumer outside the company.

programs to cultivate water resources.

Kawakita: There are also issues of secu-

Educating consumers through e-learning

Naturally there’s an element of self inter-rity with newly developed technologies,

would be an outstanding social contribu-

est here, as well. We have very good rea-

universal design, and so on. Some newtion. Providing know-how and informa-

son to invest considerable management

technologies are harder to use but givetion to consumers would be one type ofresources in the conservation of ourthe consumer the satisfaction of being

CSR activity.

biggest resource, water.

safe and secure. How closely should we

For me, CSR in a word is “symbiosis.”

Having declared our commitment toconsider security when developing a new

Take the environment as an example. All

conserving forests and cultivating watertechnology? Can the security itself pro-of us are responsible for the environment,

resources as a routine part of our busi-

vide amenity? Does the security itself

companies and consumers alike. But con-ness, we consider these activities not justallow consumers to use products freesumers lack the know-how and informa-a social contribution, but a social respon-from worry, just as they do with universal

tion to help form environmental mea-

sibility of the entire Suntory Group. That’s

design products?

sures. If companies were to provide thisour current thinking. But if society sees

Ishida: Our preparations for storing per-know-how, consumers could fulfill their

these activities as a social contribution, of

sonal information are a good example ofresponsibility in collaboration with com-course that’s fine with us.

how we develop security for a new tech-panies. This is another type of CSR

nology. When we work out systems to

Toppan should consider.

As I’m sure you know at Toppan, acommitment to forestry-related activities

21

CSR Activity Highlights
Roundtable Discussion

What We Expect from CSR

it seems the concept is often only taken

meet their legal obligations. For a corpo-

halfway. To go further, we need a solid

ration to reach the “excellent” level world-on the concept. So let me recap.

wide, it must go to great lengths to achieve

To reach the first level of CSR, compa-

universal good in many areas. Just tonies must “respond to requests” and fol-give one example, its senior management

low guidelines. To reach the second level,

must actively encourage its employees tothe “commendable” level, companies

use their welfare benefits. I hope to see

must broaden their CSR approach toToppan provide depth and aspire to reach

include not just consolidated subsidiaries

the “excellent” level worldwide.

makes much more sense. Cultivating tim-in Japan, but overseas subsidiaries andber resources isn’t just a social contribu-

marketing affiliates. To reach the thirdtion, but a responsibility to society.

level, the “excellent level,” companies
must provide depth.

Taking the challenge to a global
level

While a good many companies havestriven to reach the “commendable” and“excellent” levels on the environmental

Kawakita: I’d like to finish off this round-front, regrettably few have done so withtable discussion with a few comments on

activities focused on human resources

the concept of CSR. Many companies

and compliance. In these areas, it would

have been taking an interest in CSR, butseem, companies are satisfied merely to■ Conclusion
I’d like to thank the participants of thisroundtable discussion for their valuable
opinions on the concept of CSR as it
applies to Toppan. Our company will be
deeply considering the views expressed
here today as it promotes its CSR activities in the future.
Through its focus on its core businessof printing, Toppan has advanced thedevelopment of information and culture.
Our corporate mission is to facilitate thedissemination and exchange of information and ideas as the nurturer of a fulfilling society. To achieve this mission wemust continue to pursue efficient management and symbiosis with society andthe environment under the guidance ofour many stakeholders.
The content and design of our approach
to CSR activities have been set downin our Corporate Philosophy, Corporate
Creed, and Conduct Guidelines. To promote CSR activities effectively, Toppan
understands the importance of satisfying
the ground rules.
The opinions from the roundtable participants will be of great value as we
design our future CSR activities. Here is a22

brief recap of the views expressed.
To start off the discussion, Mr.
Shibusawa pointed out that CSR is not an
issue that can end in the top ranks ofcompany management. Toppan posts its
CSR in company-wide bulletins and takes
many other steps to instill the concepts of
CSR in all of its people. In the future,
Toppan plans to create an educational
venue where employees can study CSR in
greater depth.
Ms. Furuya discussed the rights of consumers. The protection of consumer rights
is part of our basic thinking, along withsociety and the environment. Toppan
will continue to do everything within its
power to maintain safety and trust in its
products.
Mr. Iijima explained the notion of guaranteeing safety of individuals. The idealof “living together with society” can beaccomplished through fairness in communicating with society, and Toppan willcontinue to pursue this ideal through its
CSR measures.
Mr. Kumon explained the difference
between social contributions and social
responsibility. Toppan will take this view

into earnest consideration as it forms its
future CSR activities.
Finally, Mr. Kawakita, the moderator ofthe discussion, pointed out that theobjective of a CSR report is not to explain
systems, but to explain results. As wecompile our CSR Report we will not only
explain our results, but also report on the
progress and process of verification of
our CSR activities.
I would like to sincerely thank everyone
for attending this roundtable discussion
and sharing their opinions with Toppan.
Masayasu Ishida

Social Report
The Corporate Creed is a clearly defined specification of the form Toppan should assume as a social
enterprise. This section describes four activities Toppan is undertaking to meet its social responsibilities
and put the Corporate Creed into action—Compliance, Improving Customer Satisfaction,
Respecting and Leveraging Human Assets, and Activities for Society and Culture.

Compliance ———————————————— P. 24

Information management measures and initiatives forthorough compliance with laws and corporate ethics

Improving Customer Satisfaction ———— P. 30

Product development activities and mechanisms
to guarantee the quality, safety, and functionality of
products and services

Respecting and Leveraging——————— P. 36
Human Assets

Policies to nurture and effectively use human assets,
and measures to create a safe and pleasant work
environment

Activities for Society and Culture ———— P. 42

Social and cultural contributions that reflect Toppan’sbusiness activities and Corporate Philosophy

Customers

Business
Partners

Shareholders

Employees

Communities

Social ReportComplianceToppan has set down rules and established firm positions to ensure that its employees, management,
and business partners abide by laws and social standards in the day-to-day conduct of business.

Basic Stance on ComplianceTo Toppan, compliance means morethan simple compliance with the law.
Compliance requires that management and employees observe all legal
standards, social standards, and internal corporate rules in their actions
as individuals and citizens. In short,
Toppan sees compliance as faithfuladherence to the company’s Conduct
Guidelines.
Toppan and its employees neverengage in actions that contravene theConduct Guidelines. If ever requested
to act improperly or illegally in thecourse of business, Toppan respondswith an emphatic “No.” With these
Conduct Guidelines, Toppan is building a company trusted by society.

Rules
Corporate Articles ofPhilosophy Incorporation
Corporate Board of
Director rules
CreedWork rules

Conduct
Compensation rules
Guidelines

Labor agreements, etc.

Philosophy/
PolicesOrganization
Administration

Regulations(common nationwide regulations, etc.)
Concerning information security management
Concerning insider trading prevention management, etc.

Detailed Regulations(standards, manuals, etc.)
Manual on observing the Antimonopoly Act
Manual on observing the Subcontract Act, etc.

Business■ Conduct Guidelines

Chapter 2 Outline of Conduct Guidelines
Section 1 Building customer trust
1. Doing our best for the customer
2. Maintaining customer trust
3. Appropriate management of customer
property
4. Protecting information about customers
5. Appropriate management of information on
our customers’ clientele
Section 2 Reforming operations
1. Acting in accordance with international rules
2. Striving to improve knowledge, skills, andtechnology
3. Fulfillment of work responsibilities
4. Protecting confidential corporate information
5. Securing and utilizing intellectual property
6. Respecting the rights and interests of others

Section 3 Fulfilling corporate responsibilities
1. Compliance with antitrust laws
2. Fair treatment among support companies
3. Unlawful acts against corporate competitors
4. Non-solicitation or provision for personal gainor rebate
5. Prohibition of bribery
6. Appropriate entertainment practices
7. Prohibition of illegal political contributions anddonations
8. Prohibition of providing unjust benefits
9. Prohibition to support antisocial activities
10. Prohibition of insider trading
11. Prohibition of unlawful export transactions
12. Prohibition of child labor
13. Curtailment and reduction of environmental
impact
14. Promotion of environmentally friendly
activities

Section 4 Creating a positive work
environment
1. Striving for a lively and vibrant workplace
2. Striving for a safe and clean workplace
3. Following company rules
4. Protecting corporate property
5. Avoiding conflicts of corporate interests
6. Prevention of discriminatory practices
7. Prevention of sexual harassment
8. Prohibition of private activities
9. Appropriate use of the Internet
10. Appropriate management of information andrecords
11. Prevention of participation in illegal conduct,
false reports, and concealment
12. Protection of identity or person who reports
misconduct
Section 5 Developing the Toppan Group
1. Taking pride in the Toppan brand
2. Developing the Toppan brand
3. Strengthening cooperation between groupcompanies
4. Appropriate disclosure of information
5. Appropriate relationship with shareholders

Established on June 2, 2000 Revised on July 1, 200324

Social ReportCompliance

Awareness and Thorough Implementation of Conduct Guidelines
For a company to fulfill its social responsibility, every one of its employees must fully comply with corporate
ethics in the areas in which it does business. Toppan continually reviews its guidelines for corporate ethics—
the Conduct Guidelines—and endeavors to instill them universally throughout its workforce.

Establishing a System for Legal
Compliance
In April 2003, Toppan established aCompliance Department within its Legal
Affairs Division as an instrument to promote compliance with laws and corporate
ethics. In addition to ensuring universal
compliance with the Conduct Guidelines,
the Compliance Department manages
shareholder meetings and other stockrelated matters, guarantees information
security, and oversees employee education on laws and regulations. As themain promoter of CSR activities within
the company, this section reviews social
responsibility measures undertaken in earlier years, reshapes them to fit the current
definitions of CSR and issues facing thecompany, and launches them anew tofurther advance CSR.

The Role of Conduct Guidelines
As a code of conduct based on the
Corporate Philosophy and Corporate
Creed, the Conduct Guidelines ensurethat the employees of Toppan universallyrespect the law and corporate ethics intheir day-to-day actions. The scope of theConduct Guidelines covers all of Toppan’sbusiness activities. The company is also
considering measures to promote compliance with the Corporate Guidelines
among all employees of the Group.
Revision of Conduct Guidelines
While the Corporate Philosophy andCorporate Creed encompass universal
values, the Conduct Guidelines must becontinuously reshaped to fit the latest
changes in the business environment. In
July 2003, three years after introducing
its Conduct Guidelines, Toppan added aseries of new provisions to strengthen
compliance and align the guidelines moreclosely with the Corporate Philosophy
and Corporate Creed.
Following revision, the guidelines were
published in a booklet and distributed to
all company employees. Toppan also held
seminars for about 2,200 managers at all
21 of the company’s operational sites.

Henceforth the Conduct Guidelines will
be reviewed once a year.

A Structure to Promote theConduct Guidelines
Conduct Guidelines Promotion
Leaders
In establishing its structure to promote
the observance of laws and corporate
ethics, Toppan has carefully endeavored
to ingrain its Conduct Guidelines into thedaily work environment. In 2004, thecompany newly appointed a “Promotion
Leader” at every operational site tosupervise the promotion of the Conduct
Guidelines.
In their capacity as champions of ethicalawareness at Toppan workplaces, these
Promotion Leaders will draw attention
to guideline-related issues and launchvarious strategies to raise awareness. A
higher awareness of the Conduct Guidelines throughout the company ranks will
foster a clearer understanding of Toppan’s
position on ethical issues.

mechanisms to respond to possible violations of the law. The Toppan Helpline isopen not only to regular employees, but
contract employees and temporary workers as well. Employees can also reportquestionable activity using a dedicatede-mail address set up for that purpose.
Toppan strictly safeguards the privacyof persons reporting questionable activity. As the Conduct Guidelines state,whistle-blowers have every protection of
the company.
Company-wide education
As another step towards the realizationof Toppan Vision 21, Toppan holds basic
compliance training for employees with afocus on instilling the Conduct Guidelines. The training is provided at all stagesof an employee’s career based on rank.
Some is incorporated into the company’s
routine education for newly appointed
supervisors and managers; some is provided periodically to address important
themes such as information security andrecent revisions of laws.

Toppan Helpline
To earn the ongoing trust of society,Toppan must quickly identify any illegal
activity related to its business and respondwith action. The Toppan Helpline and theToppan Internal Reporting System established in August 2003 are important new■ Summary of Conduct Guidelines Promotion Activities
Continual development

Maintaining the trust of society

IInstituting measures to
Actionprevent recurrence

Plan

IEstablishing a Conduct
Guidelines promotion plan(annual plan; medium- andlong-term plans)Do

ICreating education tools
IComprehensive education(specialist training)
Ie-learning

Conduct
Guidelines
IQuestionnaires
Check
IAwareness surveys

Conduct Guidelines
Promotion Leader(systematic
foundation)

Conduct Guidelines Promotion Supervisor/
Conduct Guidelines Promotion Leader

Specialist training

Employees

e-learning

25

Information Risk Management
Toppan has established an Information Security Management Committee, a Personal Information Management
Committee, and Information Management Policy to improve the management of information security laterally
across the company. Toppan also introduced a system for the auditing of information security in 2003,
with plans to expand the system for complete coverage of the company in the future.

Obligations in the Information
Communications Industry
As part of the information communications industry, Toppan appreciates theextreme importance of information management for securing customer trust.
Information leaks, theft, and loss are justsome of the risks associated with thisindustry. To manage customer information and internal confidential information
safely and properly, the company adheres
to an ongoing management cycle of establishing information-management policies,
laying down rules, educating the workforce, auditing operations, and reviewing
management policies and processes on aregular basis.

Stance on Information
Management
Toppan has publicly released its Information Management Policy (Information
Security Policy) for employees and otherinterested parties to peruse. The scope ofToppan’s risk management system has
been considerably expanded through theestablishment of a new system of rules
on information management and the
procurement of the ISMS (Information
Security Management System) and Privacy
Mark certifications. When changes inthe business environment require, Toppan
reviews and revises all aspects of its information risk management system, including the relevant policies and rules.

Instituting a management structureand developing it laterally
The Information Security Management
Committee and Personal Information
Management Committee have been
established as decision-making bodies todeliberate policies, rules, and other major
issues laterally across the company. The
committees meet regularly twice a year
and on an as-needed basis to ensure theeffective sharing and thorough management of information.
A unified management stanceToppan is establishing a unified system for
information risk management that reduces
the burden on individual departments byeliminating procedural redundancies in
the information-security protocols for theprotection of personal information, forcompliance with the Privacy Mark standards, and for Toppan’s web-related business. The company has also introduced adaily routine for the handling of information management to raise the level of
security and thereby streamline the auditing function.

Information Security
Information security policy
In April 2001, Toppan instituted its Information Management Policy as a comprehensive revision and improvement of theRules on the Management of Confidential
Information established in May 1991.
■ Information Management Policy
1. Employees shall comply with all internal rules
on information management and manage
information appropriately in full observanceof the law and social order.
2. Employees shall collect information for appropriate purposes using appropriate methods.
3. Employees shall recognize the value of information as an asset and use information
safely and efficiently for the stated purposeof use.
4. Employees shall safely manage information
handled on behalf of customers to secure
customer trust.
5. To ensure the appropriate management of
information at all times, the company andits employees shall improve its information
management system based on periodic
reviews of social circumstances, technology
trends, and the latest revisions in information systems.

Systemization of rules on information
security
Rules on information security have been
established in layers. The current structure is made up of eight company-wide
rules (including the Rules on Information
Handling) and four rules applied to specific businesses. In addition, every operational site has established an independent
set of rules to raise the level of security
management.

■ Rules on Internal Information Management
Rules on the procurement, development, and protection of information systems

Information
Management Policy

Rules on the security of computer rooms and information-processing devices
Rules on the management of e-mail operations
Rules on information handlingRules on Information
Security Management

Rules on the use of electronic mailRules on the security of information regarding hiring and resignation
Rules on the security of information regarding the outsourcing of information systems

Rules on the Management of
Personal Information

Rules on the security of information regarding connections with outside systems
Rules on Internet usage
Rules on information security auditing

Rules to Prevent
Insider Trading

Rules on information security education
Rules on the operation of individual services

26

Social ReportComplianceObtaining and maintaining ISMS
certification for information security
management
In December 2001, Toppan’s TOPICA
website hosting environment was conferred the very first ISMS certification to
be awarded in the Japanese printing
industry. Among the Group companies,
Toppan Forms Co., Ltd. obtained the certification for two of its data centers in
February 2003. Toppan and its affiliates
will continue to reinforce their information security systems.
Regular auditing of information
security
In December 2003, Toppan began a series
of information security audits mainly at its
head office using an auditing manual andchecklist as tools. From the second half offiscal 2004, the company and its head
office plan to begin independent auditingof all operational sites in a concerted
effort to further improve the security of
information management.
Awareness and understanding
through e-learning
Toppan has also developed its own elearning program to educate employees
on information security online. Since thecompany-wide launch in July 2004, theprogram has been closely monitored
using surveys, tests and other tools togauge the level of employee awareness.
The information collected is used to revise
the learning materials and operation
methods.

Screenshot: e-learning in action (in Japanese)Protecting Personal Information
Personal information protection policy
In February 1999, the Information Security
Management Committee laid down thefollowing information security policy.
■ The Personal information protection
Policy of Toppan Printing Co., Ltd.
1. We hold great respect for the dignity of theindividual and shall fully comply with ourinternal rules, all relevant laws, and the principles of social order as we endeavor to protect the personal information entrusted toour company.

After this incident, Toppan began
launching measures to obtain Privacy
Mark certification universally throughout
the company. The Nishinihon and Chubu
Divisions applied for the certification in
March and July of 2004, and all of theother Toppan divisions are expected tofollow suit by the end of the year.
■ Privacy Mark

2. We are acutely aware of the risks thatthreaten the personal information entrusted
to our company and shall take all reasonablemeasures to protect it from wrongfulaccess, loss, destruction, manipulation, leakage, and all other forms of damage.
3. We shall only collect personal information
for the purposes of the company’s business,
excluding all information not required forthe company’s business. The collection, use,and disclosure of personal information by
our company shall be fair and appropriate at
all times.
4. When customers entrust our company withpersonal information, our thorough information management will secure their confidence that the information is fully protected.
5. We shall create an internal corporate system
to protect personal information, operate thissystem effectively, and reform it as needed.

Obtaining and maintaining Privacy
Mark certification for the
management of personal information
In 2000, Toppan’s Securities Printing
Division became the first business in theJapanese printing industry to attain
Privacy Mark certification. The certification has since been awarded to Toppan’sCommercial Printing Division (certified in2001), ten operational sites of Toppan
Forms Co., Ltd. (June 2001 onward), andToppan NSW Co., Ltd. (February 2004).
In July 2003, a faulty adhesive used in abatch of return envelopes for credit card
application forms resulted in a loss of
documents containing personal customer
information at post offices. The design ofreturn envelopes usually has no bearing
on the handling, processing, and storageof personal information. In this case,however, it had a very important bearing.
The incident prompted a thorough reevaluation of the way personal information is handled at Toppan, with a focus
on employee education and measures toprevent a recurrence.

Personal information management
in web businesses: results of threesurveysCompanies face a growing risk of information leakage from networks, especiallythrough websites. Between November
2002 and September 2003, Toppan conducted three company-wide caravans andsurveys on the guidelines for handlingpersonal information for web business asa way to instill awareness among employees and confirm the status of compliance.
Each of the surveys focused on a major
policy: the conclusion of contracts with
subcontracting partners (first survey), theconfirmation of website safety using
checklists (second survey), and the documentation of work histories (third survey).
According to the results of the thirdsurvey, the average implementation of
Toppan’s major policies, including theconclusion of contracts and safety confirmation using checklists, rose considerably. Toppan is now preparing for an
audit of the company’s personal information management system from thesecond half of fiscal 2004. Preparations
include ongoing work, current initiatives,
and the development of new auditing
manuals and checklists based on the
know-how so far collected.

27

Measures on the Supply Chain
A great many business partners and suppliers collaborate with Toppan to ensure that business and trade areconducted fairly over the entire supply chain. In 2003, Toppan held an Outside Creator Training course withbusiness partners and revised its Procurement Guidelines from a CSR perspective.

Relationship with Suppliers

Fair Outsourcing

Toppan must build trusting relationships
and cooperative systems with its raw
materials suppliers and other business
partners to carry out its businesses. One
strategy Toppan uses to build this trust
is to form a comprehensive perspective
on fair and equitable trade from the supplier’s position.
Toppan also believes that CSR must
apply to the entire supply chain if thecompany is to be trusted by its customers.
A CSR failure on the part of just one company can do tremendous harm. Just one
bad link in the supply chain will result in aloss of trust among customers and society.
To prevent this from happening, thesupply chain itself runs in parallel with achain of CSR assurance. Toppan actively
fulfills its CSR responsibilities with thefirst-tier suppliers with whom it trades
directly. The first-tier suppliers, in turn, do
the same with the second-tier suppliers,
and the process continues down the supply chain.

Compliance with Subcontract Act
Toppan depends on the support of agreat many companies—trusted partners
with whom business must be conductedwith high transparency. Among the regulations governing subcontracting operations, Toppan takes particular care tocomply with the Act against Delays inPayment of Subcontract Fees, etc. to
Subcontractors (Subcontract Act).
In March 2004, however, Toppan
received a warning from the Fair Trade
Commission that a part of its subcontracting dealings were illegal. The company acted swiftly to reform the areas ofnoncompliance and prevent recurrence.
Soon afterwards, following the revision of
Subcontract Act in April 2004, Toppan
conducted a thorough awareness campaign on the main points of the revised
law. Over the span of several months,
around 2,240 Toppan employees in chargeof subcontracting attended 22 seminars
across Japan.
Toppan also published a Subcontract
Act Compliance Manual with detailed
descriptions of the sections of the lawthat have a strong bearing on thecompany’s business. The manual was
distributed to all concerned employees,■ Overview of Supply Chain Management Based on CSR

CSR

RequestSupplier analysis
Subcontract Act
complianceTraining foroutsourcing
companies
Request

Order

Order

SurveyCustomer

Supplying products
and services

28

CSR

CSR

Management
RequestFirst-tiersupplier

Order

Second-tiersupplier

Supplier

Supplier

Business
partnerBusiness
partner

Raw materials supply
Supply of outsourced work

Raw materials supply
Supply of outsourced work

including those at Group companies. These
measures are helping to build strong trading relationships between Toppan and its
business partners.
Basic trade contract
Toppan is concluding basic trade contracts with its longstanding partners inbusiness as another means to preserve
fairness in its dealings. Each contract
clearly lays out the basic items for trade
and the rights and obligations of both
Toppan and its partners. The objectives
are to prevent problems in trade and support highly transparent business for bothparties.
In April 2003, Toppan revised the contract to include more items on legal compliance and the protection of personal
information protection from a CSR standpoint. As of this writing, the new contract
has been concluded with about 12,000
companies. The mutual respect for thisbasic trade contract will ensure the fairness of business.
Outside creator training
Toppan outsources design and othertypes of work to a great many outside
creators. In doing so, the company takes
care to prevent the infringement of intellectual property rights by screening thework of outside creators as thoroughly as
it screens work created in-house. If an
outside creator infringes the copyrights ofa third party, Toppan’s holds itself directly
accountable to the end customers inconvenienced by the infringement.
From September 2003, outside creators
were invited to a joint study campaign tolearn about intellectual property rights andother issues with Toppan employees incharge of outsourcing. Altogether, about
500 participants attended 18 sessions.
Toppan will continue holding awarenesscampaigns on new themes of social
importance in an effort to maintain fairoutsourcing based on the mutual enlightenment of both Toppan and outside
creators.

Social ReportComplianceFair Procurement Activities
Basic Procurement Policy and Supplier
Selection Standards
Each year, Toppan’s purchasing department purchases some 260 billion yen
worth of materials and equipment fromabout 3,400 suppliers. Printing paper, ink,
metals, glass, and petrochemical products
are procured in vast quantities, as are
printing machines and an abundance ofother production equipment. As an extension of the Conduct Guidelines, Toppan
has set down a set of Purchasing Rules toensure that it fulfills its social responsibilities in the field of procurement.
In addition, all employees involved in
procurement activities are trained in areas
such as fair trade, legal compliance, confidentiality, and environmental approaches
in an effort to support supply chain compliance.
As a premise to conducting businesswith suppliers, partners that do businesswith Toppan must meet Toppan’s stan-dards in the areas of legal compliance,
confidentiality, and the environment. To
this end, Toppan has publicly released a
set of Procurement Guidelines based on
its Basic Procurement Policy and Supplier
Selection Standards. By understanding
and cooperating with these guidelines,
Toppan’s suppliers fulfill their social
responsibilities as partners.

Basic Procurement Policy website
http://www.toppan.co.jp/aboutus/tech_info/
policy/index.html (in Japanese)■ Procurement Guidelines
Basic Procurement Policy
IToppan will provide procurement opportunities in a fair manner to suppliers that meet its Supplier
Selection Standards.
IToppan will conduct its procurement activities fairly in keeping with the principles of fair trade andin full compliance with both domestic and international laws.
IToppan will strictly manage Information acquired in the course of procurement and make every
reasonable effort to maintain confidentiality.
IToppan will make every effort, in conducting its procurement activities, to protect and preserve
resources and the environment.
Supplier Selection Standards
Toppan provides fair and equal business opportunities to suppliers that meet the following standards.
Once suppliers are selected, Toppan continually assesses their performance based on its original
selection standards in a cooperative effort to realize an even better trading relationship.
Legal ComplianceFulfills social responsibilities and complies with both domestic andinternational law

Quality

Meets Toppan’s standards and provides stable quality

Price

Offers products at prices equal to or lower than those of competitors

SupplyMeets Toppan’s delivery requests and provides a stable supply of products

Toppan reviews the performance and management stance of its suppliers by evaluating the following
items.
Management Foundation

Maintains a sound corporate financial baseTechnical Ability

Actively improves conventional technologies and develops new products
and technology

Information Supply Ability

Provides necessary and effective information in a timely and appropriatemannerConfidentiality

Strictly manages information acquired through trade and maintains
confidentiality

Concern for Environment

Conducts business with sufficient concern for resource protection andenvironmental preservation

CSR Measures

Takes CSR measures and discloses them

Supplier Analysis
Toppan evaluates supplier candidates
based on the Basic Procurement Policy
and Supplier Selection Standards. Besides
the crucial factors of cost, quality, anddelivery, the social responsibility measuresof candidates are duly considered in theevaluation process. In the case of major
suppliers, this evaluation is regularly
repeated through a process Toppan refers
to as Supplier Analysis. The results of theanalysis promote improvements in quality, cost reductions, and shorter delivery
schedules, enabling Toppan to meet thedemands of its customers while continually improving its cooperation with suppliers fulfilling social responsibilities.

Conducting Fair Trade
Toppan provides an internal elective training program on legal basics for employees in charge of sales, planning, andpromotion activities. The training aids theemployees in carrying out fair and prompt
business dealings, as well as responding
appropriately to customers with questions about transactions. The same program is provided at Group companies.
The main training topics include thebasics of intellectual property rights, legal
knowledge needed for contracts, theAntimonopoly Law and its role in supporting fair trade in the company, the Act
against Delays in Payment of Subcontract
Proceeds, etc. to Subcontractors, and the
Act against Unjustifiable Premiums andMisleading Representations. Actual cases
within the company and recent court
decisions are reviewed using easy-tounderstand teaching methods and student exercises. By nurturing a workforce
well versed in fair trade issues and recent
legal cases, this ongoing legal training
program will be encouraging fair trade in
the company for years to come.

29

Social Report

Improving Customer Satisfaction
Toppan believes in the concept of Complete Quality Assurance—the total guarantee of quality
in every operation, from research and development to planning, design, manufacture, sales,and service. In keeping with this approach, Toppan seeks to satisfy its customers as a company
that creates new demand and proposes new ideas while considering society and sustainability.

Customer Satisfaction
at Toppan

IQuality assurance

Sales

Planning/
DesignManufacture

Shipment/
Service“Work”

Society Needs

IDemand creation/Idea proposal

IT

Environmental
consideration

Security

Universal
design■ Quality Assurance in Toppan’s Business Activities

Planning

Quote ➝ Order

Manufacturing Order30

ICan we accurately understand the customer’s demands?
IDo we ever discover needs that don’t occur to thecustomers themselves?
IDo we conduct accurate and appropriate costcalculations?

IDoes the manufacturing order to the plant satisfy quality(Q), cost (C), and delivery (D) requirements?

Product Planning

IDo we have the technological development ability togenerate new manufacturing methods?

Manufacture

IAre we effectively meeting the levels of quality required
to satisfy the customer?

Inspection

IAre we conducting our inspections properly?

Shipment

IDo we deliver the product on schedule?

Improving
Customer
Satisfaction

Improving Customer Satisfaction

Customer Needs

For companies that gain the bulk of
their business from customer orders,the highest achievement is to satisfy
customers by meeting their demands
with good products at good prices. For
Toppan, a B2B supplier, the goals areslightly different. As declared in its
Corporate Philosophy, Toppan defines
a “good product” as “a product created with dedication.”
A “work” can be a service createdthrough investment of passion andideas or some form of software created through an investment of intelligence and skill. With this in mind,
Toppan encourages customers toapply their marketing expertise bycooperating in product development,
and innovates technologies by harnessing their technological development strengths. As mentioned before,
Toppan’s uses these approaches to“Create New Demand” and “Propose
New Ideas” that benefit both society
and the future.

Social Report
Improving Customer Satisfaction

Strengthening Quality Assurance

Toppan strives to deliver trusted products of the highest quality to its customers on a consistent basis.
To do this, the company is promoting a set of unique TPM activities that consolidate the latest approaches
to zero loss in production systems, quality management, process reform, and quality assurance.

Quality Assurance at Toppan
To build a deeply trusting relationshipwith customers, a company must provide
superior products and services that thecustomer can trust. The very existence ofa company hinges on “Complete Quality
Assurance”—a failsafe system to ensure
the prompt delivery of secure and functional products at a fair price.
The manufacturing and quality assurance departments are by no means the
only parts of Toppan involved in quality
assurance. In fact, the efforts are sharedby many departments, with all employees
cooperating as a team to firmly establish
Complete Quality Assurance.

TPM Promotion
In a company-wide bid to return to theroots of product creation, all of Toppan’s
departments are collaborating in TPM.
TPM—Total Productive Maintenance—isa proprietary system that targets zeroproduction loss through a fusion of quality management, IE (Industrial Engineering), and ISO 9000s standards. TPM
dramatically improves production efficiency through modifications in equipment and human resources. With those
improvements Toppan can reform its corporate structure and improve its competitiveness in quality, cost, and delivery. The

system is now deployed in all of Toppan’s
plants. Successful results will require thesynergistic energies of all departments,
including manufacturing, development,
and management, as well as all employees, from top management down throughthe company ranks.
Of the 40 domestic plants operatedby Toppan and its affiliates* in fiscal
2003, 29 have been conferred the TPM
Award by the Japan Institute of Plant
Maintenance. In addition, four of those
29 plants have received the Award for
Excellence in Consistent TPM Commitment as a commendation for their further
progress in plant maintenance.
Note: Subsidiaries that receive management guidance from Toppan Printing Co., Ltd.

ISO 9000s certification
Toppan was among the first companies
in the Japanese printing industry to begin
working towards the ISO 9000s certification. Quality management has been built
up gradually, and the management systems in use at the certified sites havebeen introduced laterally to as manyother operational sites across the company as possible.
In the near future, Toppan plans toearn the certification at all of its operational sites. The sites now in the processof establishing the necessary systems will
be certified in fiscal 2005 at the latest.
Other sites, those that have yet to obtain■ Quality Assurance at Toppan

TPM(Total Productive Maintenance)Continual
management of
stable equipment

Fostering employees
who focus on
Toppan’sequipment
own TPMand quality
High-quality products
created by people
and equipment

ISO 9000s
Safe and clean
work environment

certification, are soon to follow along thesame track.
The latest information on certificationof operational sites is available on the company website.
■ ISO 9000s certification status information
http://www.toppan.co.jp/aboutus/tech_info/iso/(in Japanese)

IE activities
IE activities use technical solutions toimprove productivity. More efficient production systems are achieved throughthe elimination of redundant and inefficient practices in the areas of humanresources, equipment, and information.
As part of its TPM effort, Toppan is promoting IE to establish a firm regime ofefficiency at all of its workplaces. Mechanisms to manage the flow of goods makeup an important part of the effort, as do
quality assurance methods such as the
ISO standards and efficient work procedures to keep costs down.

Activities in the Food BusinessAs a major packager of foods, Toppan
handles two very important steps in theassurance of food safety: preventing theadherence of foreign matter to the containers that it produces, and preventing
foreign matter from entering supplierprovided ingredients when food products
are being packaged.
Special audits are conducted to ensure
the preventative control of foreign matterat all of Toppan’s food packaging andcontainer manufacturing plants, as well as
the plants of business partners. Rigorous
controls are applied to prevent contamination from bacteria and foreign mattersuch as insects, metal particles from manufacturing equipment, and debris from
employees and their clothing.

IE(Industrial Engineering)31Creating Value through Research and Development
As an avid proponent of the “customer first” principle, Toppan offers a host of high added-value products,
systems and services geared to meet future needs. To accomplish this, the company continually works tostrengthen ties outside the company while advancing independent research on cutting-edge ideas.

Basic Stance on Research andDevelopment
Working through its Technical ResearchInstitute, Toppan takes an ambitious andfree-thinking approach to research inuncharted fields and the development of
new products geared to meet futureneeds. Product development begins withjoint surveys by the R&D, sales, and sales
promotion departments to determine thelatest market trends and customer needs.
Efforts to enhance performance and create new product systems culminate in
the development of next generation products with high value added and environmentally-friendly features. In the fieldof production technology, manufacturing
departments cooperate in developing automated and labor-saving production line
technologies while reforming the manufacturing process. These efforts have led
to cost reduction, shorter delivery times,
and higher quality.
All of these initiatives depend on strong
cooperation within the company and withpartners outside the company. Toppan
collaborates in research projects with government research bodies such as the New
Energy and Industrial Technology Development Organization, as well as laboratories in universities such as the Universityof Tokyo, Tokyo Institute of Technology,
Tohoku University, Yamagata University,and Hiroshima University. Outside Japan,
Toppan is now involved in projects with
the Massachusetts Institute of Technology
and Oxford University.
Toppan harnesses the benefits of its
technologies for society by actively collab-

orating in technical tie-ups and technology export programs inside and outside
the country.

Progress in Electronics
Technology
Basic technology for liquid crystal
displays
Toppan holds a large share of the market
for color filters used in liquid crystal displays for thin-screen televisions and personal computers. To meet the market
demand for higher quality, larger, andmore reasonably priced filters, Toppan
has developed a slit application method
to make the application process for thecolor resistors more efficient.
Other new developments include apermeable screen and the application ofa low-cost and high quality micro-display
method for rear-projection televisionscreens with fine pitch and high contrast.
Research and development ofsemiconductor materials
In the field of semiconductors, the rapid
miniaturization of circuit patterns andother elements requires the constantdevelopment of more precise patterningtechnologies. Toppan has successfully
developed photomasks and stencil masks
for the fabrication of circuit patterns forstate-of-the-art semiconductor productsin the 65-nm and lower range (one nanometer is one billionth of a meter). Theseadvances will contribute to the further
miniaturization of devices such as household electronic appliances.
Toppan has also been making head-■ Main Examples of Technology Export
Optigraphics Corp. (Texas).......................................................Three-dimensional printing technology
Siam Toppan Packaging Co., Ltd. (Samutprakarn, Thailand) .....Paper container manufacturing technology
Telstra Corp. Limited (Melbourne) ...........................................Prepaid card manufacturing technology
Blue Ridge Paper Products, Inc. (Virginia).................................Large-sized stopper manufacturing
technology for paper containers for liquids
Weaver Popcorn Co., Inc. (Indiana)..........................................Technology for microwavable packaging
materials
Balzers Process Systems GmbH (Alzenau, Germany) ...............Technology for a membrane-forming
processAllied Material Technology Corp. (Taipei) ................................Liquid crystal color filter manufacturing
technology
Avery Dennison Corporation (California) .................................Manufacturing technology for lowresistance conductive membranes

32

way in the technologies used to incorporate resistors, capacitors, and other passive parts into the substrates of smaller
cellular phones and other devices.

Semiconductor photomask

New Media
Electronic paper
Electronic paper is a completely new formof reflective display that combines thevirtues of electronic displays and paper.
Toppan teamed up with E Ink Corporation of the U.S. to develop a frontplate
laminate, a key part of the electronic
paper display. Later, in April 2004, Sony
Corporation adopted the frontplate laminate for its e-Book reader, a move that
positioned Toppan as the world’s firstprinting company to mass-produce electronic paper.

e-Book reader from Sony Corporation

25GB paper discToppan and Sony Corporation haveinvented a 25GB paper disc, a read-onlyrecording medium composed of morethan 51% paper. The large capacity ofthese discs reduces the material usage
per unit of stored information. The discs
can also be cut with scissors when nolonger needed, providing an advantage
from the standpoint of information security. Commercial development of thesediscs is now underway.

Social Report
Improving Customer Satisfaction

Virtual Reality

25GB paper discForging into New Fields
DNA biochips
In recent years, the medical industry
has started to make use of cellular-levelbiotechnology, the foremost example
being DNA technology. Toppan is meetingthe challenge with research and development into biotech applications for its
technologies in the printing, electronics,
and packaging fields.
As one example, Toppan is conducting
joint R&D with a U.S. firm on a DNA
analysis chip that searches for the causesof disease. DNA analysis using the newchip will provide physicians with a moredetailed understanding of drug effects on
individual patients. The company expects
the technology to lead to rapid advancesin patient-tailored drug regimens administered with optimal safety and efficacy.
Other measures
In other fields, Toppan is collaboratingwith universities and manufacturers tofind potential applications for new generations of IC tags and similar devices thatcan be attached to goods as sensors.
Toppan researchers are also studying
energy-related technologies and effective
ways to harness power from sunlight andother natural sources.

Virtual reality (VR) is already being applied
for military simulations and aircraft pilot
training, as well as industrial design andother areas. Toppan began developing
VR applications to digitally preserve artworks and other cultural assets in fields
such as education. In 1997, the company
launched research on a new VR creationand expression technology capable ofcreating virtual duplicates of cultural artifacts with the extreme accuracy and resolution to be expected from one of theworld’s top printing companies. The newtechnology has already been used tocreate VR representations of the Sistine
Chapel, Toshodai-ji temple, Nijo-jo Castle,
and the Forbidden City Palace.
Joint development of scalable VR
When VR technology and networking
technology eventually fuse, the applications of VR are expected to multiply.
Before this becomes possible, however, agood many technological roadblocks will
have to be cleared.
Toppan and others are now overcoming some of the challenges. In fiscal 2001,
the company commenced joint researchon scalable VR with the National Instituteof Information and Communications
Technology, the University of Tokyo, andTsukuba University. This project will soon
move past elemental research into the
networking of actual VR content.
VR applications at museums
In 2003, Toppan tested its scalable VR
technology in a virtual exhibit on Mayan
Civilization at the National Science
Museum, Tokyo. In one part of the exhibit,
virtual artifacts from ancient Mayan
Civilization were projected onto a largescreen VR display that created a sense of
intimacy between audience and artifact.
Close by, visitors interfaced with a seriesof networked PCVR terminals with interactive displays of lifelike environmentsfrom the days of the Mayans.

VR presentation during the Mayan Civilization
exhibitCreator and copyright: National Institute ofInformation and Communications Technology
Cooperation: Honduran Institute of Anthropology
and History

Applications for school study
Scalable VR is also being used for educational testing. In one testing environment
for students in elementary school, largescreen presentations were combined withspecialized terminals for individual study
groups in the same room. The combination of two VR environments in a single
area encouraged study groups working
separately to observe each other’s activities and absorb information peripherally
through a new channel. The result was arich form of learning distinct from thatprovided in conventional educational programs using VR technology.
Future research goals
VR research will provide applications in agreat many fields besides education.
Entertainment and social welfare are just
two areas with nearly limitless possibilities. All of society will benefit from therich and intelligent living environments tobe created with VR technologies.
Based on its current CG and VR technologies, Toppan plans to research anddevelop a next-generation “expression
technology” that can be used to convey
information. The foundations of this technology will be developed in the near
future through active collaborations with
the University of Tokyo, Tsukuba University,
Waseda University, and other research
institutions strong in basic technology.

33

Products and Services that Reflect Social Concerns
Toppan is creating products and services that contribute to society, particularly in the fields of
security technology and universal design.

Secure Communication
Toppan’s printing business got its start in
the printing of securities, an operationthat requires sophisticated anti-counterfeiting technology. Now, many decades
later, counterfeiting and the illegal use of
securities have grown into major social
problems. Clients require ever higher levelsof security, demanding the developmentof ever more robust security technologies.
Toppan has always been active indeveloping new anti-counterfeiting technologies. These technologies, together
with new forms of highly secure printing,are crucial at the Toppan plants responsible for the printing of securities andcards. The technologies are also flexible
enough for application in other areas in
the securities business besides printing.
Brand protection
Products distributed outside of Japan are
frequent targets of brand counterfeiting.
To neutralize this danger, Toppan provides various industries with anti-counterfeiting technologies based on holographic
technologies and other strategies.
Toppan’s robust security technologies
combine sophisticated techniques inpapermaking, plate-making, printing, andprocessing that are highly resistant tofraudulent reproduction, even as counterfeiting technology itself advances. Toppan
also continues to develop compound
security methods that combine technologies easily recognized by consumers
along with hidden technologies difficult
for counterfeiters to detect.

Crystagram hologram

34

Passport business
Since 1996, Toppan has been providing
the U.S. and other countries with passport-issuing machines and holograms toprevent forgery and manipulation. These
products have won renown for theirsuperb forge-proof technologies, andmany clients appreciate the added security of having all phases of production—from the development and manufactureof equipment and ink to the design ofholograms and plate-making and printing—performed exclusively in-house at
Toppan.
As passports adopt more IC technologies and visas adopt RFID, the integrationof Toppan technology will lead to further
improvements in security for both individuals and nations.
Information management operation
business
The outsourcing of operations to thirdparty firms is now accepted as an effective
way to enhance management efficiency.
For a company that handles and processes
important information for other companies, however, secure outsourcing is only
feasible with strict information management. Toppan solves this issue by providing clients with Cert@id, an affordable
and user-friendly outsourcing service
secured by Public Key Infrastructure (PKI)
encryption. This is just one of Toppan’s
many total support solutions now simplifying life for the customer.
IC card businessSociety, corporations, and individuals
have suffered huge losses from cardrelated crimes such as forgery, manipulation, and identify theft. To meet thegrowing demand for security, a new generation of IC cards is spreading throughthe market. Toppan developed its first IC
card ahead of competitors as far back as
1983. As a leader in the field, the company has proposed a succession of businesses based on this technology in theyears since.
With the inauguration of the Basic
Resident Registers Network System inJapan, Toppan has endeavored to streamline resident services and simplify operations by developing and manufacturing

basic resident cards. This is one way that
Toppan is providing comprehensive support for the independent use of IC cards
and other applications.

Total Solutions Using IC Tags
People think of IC tags as an enabling
technology working at the core of society
in the future. While this is certainly true,
IC tags have the potential to contribute inmany other ways, as well. The attachment of IC tags to manufactured goods,
for example, makes the goods easier torecycle and separate at disposal. IC tags
are already employed in the pedestrian
ITS systems installed in cities to help thevisually challenged navigate their way
around public spaces.
Thanks to its strengths in the development of leading technologies and applications, Toppan is now able to provide
total IC tag solutions with its Tjunction
and TesStar tags developed in-house. The
IC tags of the future will be built into theinfrastructure of the society as cohesive
tools that strengthen the ties between
companies and consumers and align theeconomic and environmental goals ofcommunities and corporations. Toppan
plans to accelerate the development of IC
tags outside the company by taking partin various governmental tests.

TesStar IC tag and reader

Social Report
Improving Customer Satisfaction

Universal Design
Amidst rising concern over the “graying”
of society and the infrastructural barriers
restricting the socially disadvantaged inJapan, Toppan launched its ongoing Universal Design Project in April 2001, well inadvance of similar projects organized byother companies. Toppan practices universal design to maximize its benefits as adiscipline that identifies barriers in conventional designs and provides alternative
designs suitable for use by all.
The company has laid down six principles based on the universal design concept
and promotes measures to incorporate
universal design more extensively in its
products, spaces, environments, services,
and information-delivery methods.
■ Toppan’s Six Principles on Universal
Design1. Design products and services that are more
responsive to people with different physicalabilities and perceptions.
2. Facilitate communication using multiple channels for communication, including visual, oral,
and tactile channels.
3. Make products easier to use by making
them easier to understand.
4. Make products that are easier to move, easier to approach, and require less strength(remove the physical burdens).
5. Design products that are safe to use procedurally, functionally, structurally, materially,and environmentally.
6. Provide products at a reasonable price andin the amounts required by society.

Creating color change models toreflect aging
In the years leading up to 2001, Toppan
affiliate Toyo Ink Mfg. Co., Ltd. teamed
up with Katsunori Okajima, AssistantProfessor of the National Defense Academy (currently at Yokohama National
University), to research changes in color
vision with aging. Scientists used tobelieve that the crystal lens of the eyeyellows with age and ultimately bathes
the visual fields of elderly people in a
faint yellow hue. However, according torecent research by Toppan and Professor
Okajima, elderly subjects with healthyeyes suffer no yellowing, but rather a difficulty in perceiving blues and other colors under low-brightness conditions. The
results of this research are now being
used in the universal design of packaging

and printed matter, as well as in consulting work.

Promoting the wider acceptance ofuniversal design
Toppan introduced its activities to promote universal design as a printing company at its well-received “Idea” exhibitionon universal design held in September–
October 2001. Later, the company set up
a universal design page on the Toppan
website to publicize its the measures outside the company. An interactive “packaging clinic” was added to the page in
April 2004.

The picture changes with age: a comparison ofviews seen from young (upper photo) and elderlyeyes (lower photo)

Universal design of packaging
Toppan uses its Universal Design Diagnostic System for Packaging (PAT.P) to formulate new proposals. The system is atool to create optimal packaging from theuser’s perspective by diagnosing the use
and handling of packages during thephases of the “package life cycle” fromthe purchase of the packaged product tothe use, storage, and disposal of the
package. Toppan also provides independently developed packaging.

Toppan universal design website
http://www.toppan.co.jp/ud/index.html(in Japanese)

Universal design packaging clinic website
http://www.toppan.co.jp/ud/clinic/index.html(in Japanese)

UD SELECTION standing pouch

35

Social Report

Respecting and Leveraging Human Assets
Toppan employees regard themselves as “human assets”—a pool of people who keep constant sight of theirgoals, solve problems, and take the initiative to act independently without awaiting instructions from others.
Toppan’s core structure relies on its people as its most precious asset. The optimal system for respecting andleveraging human assets requires a safe and healthy work environment, thorough management of employee
health, and comprehensive systems for employee compensation, benefits, and welfare.

Basic Thinking on Human
AssetsIDesigning a compensation and benefits system that rewards“accomplishment”•Redesign the basic structure of the personnel employee structure•Create a new employee evaluation program that links compensation not only
to an employee’s “Action,” but “Goals and Results” as well
•Revise the retirement pay system to provide more incentives for long-term
employment

Employee
Compensation

IRaise corporate competitiveness by optimizing human assets andorganization with clear standards•Base the hiring, placement, and development of human assets on a firmly
grounded system for developing “ability and skill”•Clarify the “role and action” of an employee along with an employee’s“ability and skill”; achieve balance in compensation and benefits onthat basis

Optimum
Organization

Labor-related Policies

The skills and abilities required forthe various job categories at Toppan
are carefully systemized, and policies
are in place to nurture important
human assets. Human development
at Toppan is a process closely tiedwith the company’s extended personnel system. As soon as employees join
the company they are given ample
opportunities to improve their abilities and skills—opportunities extending far beyond mere training andeducation.
Toppan also recognizes the importance of ensuring a safe and pleasantwork environment and continuously
reviewing its systems for employeecompensation, benefits, and welfare.

IStrengthen business competitiveness through human assets
development

Human Asset
Development•Strengthen the function of the Personnel Development Center•Provide practical training on a continual basis•Maintain an environment that encourages personnel development

GlobalEnvironment
Maintenance

Service

Approach for
global personnel

Maintain the working
and living environmentsof employees

Strengthen the service
function of the Personnel &Labor Relations Division■ Toppan Vision 21 and the Human Assets Education Cycle
Toppan Vision 21
Corporate Philosophy
Corporate Creed
Conduct Guidelines
Business fields

Accomplishments

Goals

Results
Improvement

Management
policies

Creating Value through Actions

Business
policies

IEarning the trust of customers
IStrengthening business foundations
IFulfilling corporate responsibility
IStrengthening organization
IImproving corporate value

Medium-term
planTerm plan
Department
plan

36

ActionAbilities and Skills
IKnowledge and information skills
ITechniques and know-how
ICommunication and learning abilities
IAbility to identify and formulate tasks
IAbility to accomplish tasks
IBasic skills

Strength of
Individual

Realizing a positive
cycle between individualand organization

Strength ofOrganization

Maintaining the Work Environment

Social Report
Respecting and Leveraging Human Assets

Training and Developing Human Assets

Human assets at Toppan are developed over a multi-staged process linking hiring, assignment, training,utilization, and treatment. In each stage, Toppan implements a new set of policies tailored to maintain andnurture its human assets to the maximum benefit for all. The aim is to enhance the abilities and skills of
employees while improving the results of the company.

Basic Thinking on Human
Assets Development■ Flow of Human Asset Development and Measures
Hiring

The tremendous forces of globalization,
the “graying” of society, and rapid technological progress continue to reshapethe environment in which companies dobusiness. A properly functioning company(organization), meanwhile, is an aggregation of employees (individuals) who create an environment in which improved
individual abilities improve the results of
the organization, and vice versa. To attainthis condition, a good company works
actively to enhance the individual skills
and abilities of its employees, while good
employees strive to bring value to themselves and to the company as humanassets. The company must maintain anenvironment to make this possible throughvarious management systems.
At Toppan, the human assets whobring value to the company are the mostprecious assets of all. From hiring to
the later stages of assignment, training,development, and compensation, Toppan
takes steps to maintain a workplace environment that instills employees with adeep and eager commitment to work.
Creating Value through Actions for
ToppanIEarning the trust of customers
IStrengthening business foundations
IFulfilling corporate responsibility
IStrengthening organization
IImproving corporate value
Abilities and Skills Toppan Needs
IKnowledge and information skills
ITechniques and know-how
ICommunication and learning abilities
IAbility to identify and formulate tasks
IAbility to accomplish tasks
IBasic skills

Reformulating the employeecompensation and benefits system
Toppan is designing a new system for compensation and benefits that encourages
greater productivity. “Accomplishments,”
as Toppan defines them, are the “goals”
and “actions” that ultimately improve thecompany results. These goals and actions
are concrete manifestations of the Corporate Philosophy, Corporate Creed, Conduct
Guidelines and Business Fields laid out in
the Toppan Vision 21 statement.

Assignment•Hiring opportunities are being expanded, including year-roundhiring and global hiring.
•Working environments are opened to non-employees throughinternships and other programs.
•Physically challenged employees make up 1.97% of the workforce,
surpassing the legally mandated quota of 1.8%.
•New hires are interviewed at the time of hiring, time ofassignment, and one year after assignment to ensure that they areplaced in the most suitable positions.
•Employees are also interviewed and asked to provide feedback toensure optimal assignment when they are being moved within thecompany.

Training•Education programs utilize rank-based training, division/
department-based training, elective training (Toppan Business
School), and special needs training.

Utilization•Systems provide for regular job rotation, the Challenge Job System(self-declaration), internal recruiting, the creation of internal
venture firms, and other measures.

Compensation•From goals to action to results—the pathway to “Accomplishment.”
The company is redesigning its compensation system and othersystems to reward accomplishment and encourage the desire to
work.

HiringToppan offers employment opportunities
in spring, autumn, and also at other timesof the year. The largest influx of new
employees comes during the hiring season in April.
Internships
Toppan introduced an internship systemin fiscal 2001 to give students a taste ofreal working environments. Each year thecompany hires from 120 to 150 students
to work as temporary interns in the
research and development, planning anddesign, and other departments (about 20
to 25 interns per department). Toppan
also holds business seminars for people
who miss the opportunity to serve asinterns.
Employment for the physicallychallenged
Toppan began hiring people with physicalchallenges early on through Tokyo Metropolitan Prepress Toppan Co., Ltd. a thirdsector business mandated by the Tokyo
Metropolitan Government as a special

subsidiary for the physically challenged.
As a result, physically challenged employees make up 1.97% of Toppan’s workforce, surpassing the legal quota.

Measures for Personnel
Assignment
Candidates for employment at Toppan
are interviewed at least three times
before the company makes a hiring decision, with most of the interviews taking
place during the regular hiring. Employees
are encouraged to discuss their placement in the company on a formal basis
three times: once during the actual hiring, once during the initial training after
entering the company, and once after theemployee is assigned to a division.
After the first year of employment,
new hires are interviewed once more
to determine whether they are suitably
placed in their current divisions. If theemployees and company are both satisfied, the placements are formally decided.

37

Measures to Nurture Human
AssetsToppan supports its endeavors to train
human assets with systems that nurture“skilled and able” employees who can“create value through actions.” One such
system, a series of human assets development programs, has been established toclearly show the skills and abilities that
employees can acquire. These programs
are divided into rank-based training,department-based training, elective-based
training at the Toppan Business School,
and training for special needs.

Toppan Business School Guide

Rank-based education teaches employees to “create value through actions”
with an enlightened awareness of theirroles, responsibilities, and obligations to
the organization. Toppan’s departmentbased and election training programs
focus on practical abilities and skills.
Human Assets Development
Committee
Formerly, each division at Toppan conducted its own human assets development to strengthen its competitiveness.
The Toppan of today is building its
strengths comprehensively through theenhanced functions of its Head Office
Ability Development Department.
The management structure overseeing
human assets development has also beensignificantly changed. Functions formerly
placed under the exclusive control of personnel departments are now managed by
the Human Assets Development Committee, a relatively new entity made up ofrepresentatives from each department.

This new system ensures that Toppan’s
training programs respond to the immediate needs of each department.
An environment for human assets
development
In July 2004, the newly establishedToppan Training Center commenced operations as an employee training base geared
for intensive and integrated training. The
center is annexed with a lodging wing
and located conveniently near Tokyo at
the head office plant of Toppan Graphic
Co., Ltd. in Kawaguchi City, Saitama Prefecture. Toppan expects that the inauguration of this new facility will expand andenhance human asset activities across theentire Toppan Group.

■ Toppan’s Human Assets Development Programs
Training center with lodging wing
Rank-based Training

Creating Value
through Actions
IEarning the trust ofcustomers
IStrengthening businessfoundations
IFulfilling corporate
responsibility
IStrengthening organization
IImproving corporate value

Abilities and Skills
Toppan Needs
IKnowledge andinformation skills
ITechniques and know-how
ICommunication andlearning abilities
IAbility to identify andformulate tasks
IAbility to accomplish tasks
IBasic skills

INew department
manager training
INew manager training
INew supervisor training
IOJT Brother/Sistertraining
INew employee training
IRecruit training

Management
development training
Selective department
manager and assistantdepartment manager
training
Executive business school

Understanding, learning, and acquiring the requisite skills
and abilities for each rank (including roles, responsibilities,
and obligations)

Department-based
Training
IAssistant manager
training at eachdepartment
IMid-career training at
each department
INew employee training
at each department

Special Needs Training
IEnvironmental
education, information
security
IOverseas study

Toppan Business School

Individual Training

ILearning programs fordifferent skills andabilities
ITechnical, researchtraining for manufacturing departments
ITraining for sales
departments

ITraining in each division
and at each work site

Acquiring the skills and abilities required at each businessdivision and department

38

Measures to Leverage Human
AssetsThe optimal environment for using humanassets at Toppan is partly the outcome of
the company’s system for appropriate job
rotation on an as-needed basis.
In 2002, Toppan introduced a system
to dynamically rotate highly capable
employees among different business divisions. The objective of this “phase rotation” system is to train a new breed ofhighly versatile employees capable ofhandling various tasks outside of theirhome divisions. This effort is expected toaid in the establishment of a comprehensive order-receiving system that can better respond to the company’s demands.
At manufacturing facilities, job rotation
helps employees gain work experience inall the various manufacturing processes.
The promotion of multi-skilled employees
benefits both productivity and the employees themselves.
Human assets training in other work
environments at Toppan adopts a goal-

Social Report
Respecting and Leveraging Human Assets

based approach and encourages employees to take advantage of a growing rangeof work experiences.
Challenge Job System
To encourage the optimal use of humanassets, Toppan invites employees todeclare the positions they want. Under its
Challenge Job System introduced in fiscal
2003, Toppan interviews and surveys
employees in the sales, technical, andadministration departments and provides
them with tools to help them form theirown careers. Information gleaned fromthe employee surveys is used for the planning of job rotations.
Providing various employment
opportunities
Toppan introduced its Senior Employee
System and Specialist Employee System
early on as mechanisms to improve its useof human assets.
Under the Senior Employee System, veteran employees past the retirement ageof 60 are reemployed as senior employees in departments that have a need.
Under the Specialist Employee System,
Toppan hires employees with highly specialized knowledge on a contract basis for
fixed periods of time. The benefits of specialist employees are determined basedon a combination of work abilities andresults.
Mobile use of human assets
Toppan Human Information Services Co.,
Ltd.—THIS—is a personnel subsidiary dedicated to the management of personnel
information from Toppan and affiliates,
as well as payroll and other personnelrelated tasks. THIS also manages a personnel dispatch service to help Group
employees find new positions. This new
operation, the rapid dispatch of required
personnel to Toppan work sites, is leading
to the establishment of a mobile system of
human assets management.
Internal Venture System
In fiscal 2001, Toppan launched an
Internal Venture System to support thecreation of next-generation businesses
and encourage employees with entrepreneurial drive. By the end of fiscal 2003,

employees had submitted 40 proposals
for new ventures. Of these proposals, one
has been adopted as an internal product,
two have been turned into internal businesses, and a fourth has evolved into
a new subsidiary, Toppan Character
Production Co., Ltd.
Use of female employees
Toppan recognizes its utilization of female
employees as an important issue in thedevelopment of human assets. Currently,
as many as 40 women occupy top managerial and supervisory positions within
Toppan. As existing systems are refined,
the company will be introducing new
mechanisms and considering more active
forms of preferment for female employees.

work-shift schemes to suit the schedulingdemands of their tasks. Monthly working
hours are determined in advance by a
Manufacturing Committee made up ofrepresentatives from management andlabor. All working schedules are rigorously controlled.
Employees in sales and production
management departments sometimes
need to work long hours to respond to
the demands of customers. Among its
various steps to cope with this issue,
Toppan has appointed a special committee of representatives from management
and labor for the express purpose of
shortening working hours.

Labor-management Relations
Holiday/Working Systems
To encourage employees to take time off,
Toppan is implementing a Memorial
Holiday System that recognizes anniversaries and other important days. In fiscal
2003, the ratio of paid holidays taken to
overall paid holidays granted was 38.2%.
Working systems
Toppan introduced flexible working hours
in 1988 to accommodate the company’s
special requirements as an extendedhours business. The R&D department andseveral other departments have since
adopted “Super Flex,” a new working
system with no fixed times for startingand ending work.
Workers at the manufacturing departments at plants and other sites worklate-night shifts and use various other

Toppan has established a Management
Conference as a forum for discussion
between labor and management, as well
as a number of specialized committees todiscuss the compensation system, working
hours, welfare benefits, and other issues.
On October 1, 2001, independent labor
unions for the Hokkaido, Tohoku, andNishinihon Divisions merged with the
Toppan Labor Union (Parent company
only) to create a single nationwide union.

■ Long-term Holiday and Work Leave Systems
Stock Holiday

Under normal circumstances, paid holidays left unused for two years are nolonger valid. However, Toppan’s employees can accumulate up to 50 days of
paid leave for recuperation from an illness, the care of an ailing spouse,nursing, or recovery from an unexpected crisis.

Childcare Leave

Toppan grants parents an extended childcare leave for up to one year (up toa child’s first birthday), with the choice of working a shortened workday upon
their return to work. Forty-eight Toppan employees took advantage of thesystem in fiscal 2003, including one male.

Nursing Leave

Employees with ailing relatives can take optional nursing leave for up to
one year, or opt to shorten their workday by as much as two hours.

Volunteer Leave

Under special circumstances, employees working for socially redeeming
causes are permitted to take up to one year of volunteer leave with partial
compensation. Employees used this system to participate in overseas youth
activities in fiscal 2003.

39

Health and Safety, Health Management, Welfare
Toppan goes to great lengths to provide safe work environments in which employees can function
comfortably and securely. Employees and their families can also expect outstanding health andwelfare benefits through the ongoing efforts of the Toppan Group Health Insurance Society
and Toppan Group Welfare Organization.

Health and Safety
Health and Safety Committee
The Health and Safety Committee discusses the issues of labor safety, health,and accident prevention at the workplace. Once a month, labor and management come together to review hazardous
operations and hazardous work sites inan effort to improve the work environment based on internal standards and thestipulations of the Industrial Safety and
Health Law.
Toppan’s factories and plants also convene independent committees to discussspecific aspects of their working environments and measures to meet legal
requirements.
Fire and disaster prevention
Toppan takes a vigilant stance against
fires and disasters. Flammable materials
are handled with extreme care, electricalmachinery and production equipment areclosely inspected on a daily basis, and fire
drills are carried out several times a year
to boost preparedness. In the event ofan actual emergency, Toppan Security

Service Co., Ltd. responds together withfire response squads to ensure optimal
disaster control at each operational site.
The fire-response squads take part in
a competition sponsored by local fire
departments and regularly win championships and other honors during exercise
competitions.

Competition for fire-response squads

Labor accident status
In fiscal 2003, Toppan employees wereinvolved in nine labor accidents that
resulted in injuries requiring time off fromwork. On a company-wide basis, thistranslated into a frequency rate of 0.30
and severity rate of 0.01. The company
will press forward with its endeavors toeliminate accidents and improve labor
safety.

Health Management
Regular health and lifestyle illness
checkups
All Toppan employees undergo regular
health checkups once a year as part of
the health management program (twicea year for employees handling organic
solvents). Employees under 35 years oldundergo general checkups, and those
35 and older undergo a comprehensive
screening for lifestyle-related diseases.
Thorough efforts by site managers to promote the health examinations led to100% participation in fiscal 2003.
Toppan and its health insurance society
also subsidize health examinations for
employees’ spouses aged 35 years orabove.
Mental healthToppan recognizes that mental health is
as important as physical health. With thisin mind, the company provides a freeconsultation service with employees via
telephone and the website in cooperation
with the Toppan Group Health InsuranceSociety. The system allows employees to■ Toppan Group Health Insurance Society
The Toppan Group Health InsuranceSociety, one of the oldest organizationsof its type in Japan, was formed in 1926
after the enactment of the Health
Insurance Law. The association now
serves about 80,000 members, including 37,000 employees from the Toppan
Group and 43,000 dependents.
The principal function of the association is to improve the health of employ-

Association newsletter HOKEN

40

ees and their families through activities
to promote health and prevent illness.
As side benefits of these efforts, theassociation reduces healthcare costs for
employees, funds its own operation,and enhances productivity for Toppan.

■ Main Activities of Toppan Group Health Insurance Society
Medical treatment facilities

Directly operates 60 medical treatment offices nationwide toprovide regular checkups and screenings for lifestyle-relateddiseases for employees.

Supports health promotion
efforts at operational sites

Supports health promotion activities at operational sites to achievea healthy working atmosphere.

Supports family health

Subsidizes and supports sports events and medical exams to
improve the QOL of the insured and their dependents.

Develops health solutions

Supports comprehensive activities to promote health atoperational sites by collecting and analyzing health data.

Health public relations

Expands knowledge on health-related issues through public
relations activities, with a focus on the newsletter HOKEN and the
Association website.

Home treatment support

Supports programs for elderly members covered under the
association’s medical care plan and their families. The associationcooperates with 50 other health associations in sponsoring anursing education program that seeks to raise awareness about
nursing insurance and encourage participation. As of this writing,
3,721 participants have taken part in 35 sessions held in major
cities across Japan.

Recreation facilities

Directs the operation of four recreation facilities and membershipcontracts with 31 others to promote employee health and leisure.

Social Report
Respecting and Leveraging Human Assets

freely consult on relationship problems,childcare concerns, difficulties in nursing
their elderly relatives, and any other issues
that may be troubling them.
Preventing secondhand smoke
As a company that relies heavily on theuse of organic solvents at its operationalsites, Toppan has long established separate smoking areas at its plants and factories to ensure safety. And with theenactment of the Health Promotion Law
in May 2003, more stringent measures toseparate smoking areas are now been
imposed at the head office and all otheroperational sites. Henceforth Toppan will
be adopting a zero tolerance policy
towards secondhand smoke.
Other health promotion activities
Toppan works with the health insurance
society to plan and hold health promotion
lectures and other events at each operational site. The company also appoints“Health-up Leaders” to provide information, train employees on a regular basis,and nurture health promotion managers
at the workplace.

established. In other areas, Toppan offers
employees various forms of financial support while contributing to the Toppan
Group Employees Shareholding Association, Toppan Group Insurance and otherbenefit systems.

Training for Health-up LeadersWelfareToppan operates a number of systems toprovide welfare benefits to employees.
The Toppan Group Welfare Organization,in turn, offers welfare programs for the
benefit of employees and their families.
All Toppan employees are free to use
sports centers and recreation facilities
either operated directly or contracted by
the company. In the area of social insurance, all systems required have been fully

Tennis tournament on the grounds of
the Technical Research Institute■ Toppan Group Welfare Organization
In keeping with its philosophy of “cooperative creation,” Toppan and its employees have created the Toppan Group
Welfare Organization, another sourceof welfare benefits offered in addition
to the standard benefit packages provided by the company itself. Foundedin April 1996, the organization operates

on the philosophy of mutual aid
between the members and their families, supporting programs to stabilize lifeand enrich the lifestyles of members of
every age.
Benefits include compensation payments, loans, and other forms of financial
support, as well as services to promote

the health and enrich the lifestyles ofmembers and their families. The organization is particularly active in “lifedesign” activities for members.
In the future, the organization plansto put more effort into life stage support and add to the compensation andloan benefits being offered.

■ Life Design Support Programs

Toppan Group Welfare
Organization guidebook
TOPPIA GUIDE BOOK

Life plan support system

Holds life planning seminars for employees aged 53 and over andtheir spouses.

Study support system

Creates tie-ups with culture schools and partially subsidizes school
fees for employees and their families.

Housing introduction
systemOffers discount prices to employees purchasing, moving, or
rebuilding their homes.

Second life support system

Offers various information for retirees to promise employees
healthy and happy retirements.

Post-retirement medical aid
system

A savings plan to encourage employees to save more once theyreach the age of 50 and build up adequate cash reserves to fundnecessary medical care during their early years of retirement (up to
the age of 70). The welfare organization contributes a part of the
medical aid savings on behalf of employees who switch to thepost-retirement medical aid system.

Good living support system

A consultation system to provide timely advice to employees on
everyday life issues such as marriage, housing, the law, taxes,
nursing, funerals, and ceremonies.

41

Social Report

Activities for Society and Culture
Many of Toppan’s social and cultural activities contribute to a fulfilling lifestyle. Besides operating
cultural facilities such as the Printing Museum and Toppan Hall, the company supports various cultural
events and promotes cultural activities in local communities. As one of the world’s largest printing
companies, Toppan actively fulfills its social responsibility to protect forests.

Basic Thinking on Activities forSociety and Culture
IContributing to the Traditions andDevelopment of Printing Culture•Operating the Printing Museum•Operating The Textbook Library (Tosho Bunko)•Developing industry groups, etc.

Toppan’s Activities for Society and Culture

The Corporate Philosophy exhorts thecompany “to contribute to a fulfilling
lifestyle as a mainstay of informationand culture.” Social and cultural activities are some of the most importantmeasures the company takes.
The Toppan Koishikawa Building is
the hub of culture at Toppan Printing
Co., Ltd. The many cultural activities
held there in the Printing Museum
and Toppan Hall typify the company’sefforts to interact with local communities and share its facilities. These
endeavors receive high praise fromsociety.
As a major consumer of paper,
Toppan fully appreciates its social
mission to protect forests. To fulfill
this mission, Toppan actively undertakes numerous forestry protection
activities.

ISharing Emotions•Operating Toppan Hall
•Cultivating aesthetic appreciation in young
people, etc.

IProtecting Forestry Resources•Promoting tree plantation businesses, etc.

ILiving in Harmony with Local
Communities•Plant tours•Sponsoring and participating in local
community events•Opening company facilities to the public, etc.

■ Cultural Facilities in the Toppan Koishikawa Building

1–21F Offices

Printing Museum: Library

Toppan Hall

1F

Printing Museum:
Prologue Exhibition Zone

Printing Museum:
Main Exhibition Room
(General Exhibition Zone)

B1F

Printing Museum: VR Theater

42

Printing Museum:
Printing Workshop

Social Report

Contributing to the Traditions and Development of Printing Culture

Activities for Society and Culture

Toppan was founded to make printing technology useful for all of society and continues to expand
its businesses based on this principle. As one of the largest printing companies in the world,
Toppan is entrusted with the social mission of disseminating the culture of printing and supporting
the progress of the printing industry.

Printing Museum
In October 2000, Toppan opened thePrinting Museum, Tokyo as a way of sharing the historical significance of printing
and the tremendous contributions ofprinting to the development of humancivilization. The public can visit the General
Exhibition Zone in the Main Exhibitions
Room year round, as well as Temporary
Exhibitions held several times annually.
The museum also includes the Printing
Workshop, VR Theater, specialized library,
and museum shop. The library contains
books and magazines on printing andprinting-related fields, with a document
search corner and reading room. By theend of the third year of operation in
September 2003, more than 100,000
visitors had visited the museum.
General study for students
Local elementary and middle schools use
the Museum Printing Workshop for new
learning programs (general study), while
companies use it as a venue for trainingclasses on printing. Starting from 2001, a
year before the general study program
began, the Kanatomi Elementary School
in Bunkyo Ward, Tokyo commenced aseries of hands-on learning programs at
the workshop for its students. The programs offer classes on the history andtechnology of printing, as well as sociocultural topics such as the role of poster
art. Students are encouraged to experience the entire printing process, from thefirst stage of creative conception to thechoosing of paper and inks, ink preparation, and the printing itself.
All told, more than 150 companies,
specialist schools, and other organizations make use of the workshop.

General study program for Kanatomi Elementary
School in Bunkyo Ward, Tokyo

Preserving Textbooks for
Posterity
The Textbook Library, an institution
opened by Tokyo Shoseki Co., Ltd. in
1936, now houses about 150,000 textbooks, the largest collection in Japan.
Every variety of textbook is represented,
from the very newest editions to antiqueteaching materials from the public district
schools and private temple schools of the
Edo Period. Researchers, students, andthe general public are all free to browse
the collections. No admission is charged.
The Textbook Library also undertakes
activities to support progress in education,
including the annual Tosho Education
Award commenced in 1984. Every year,
the library selects the best essay on teaching from among many outstanding submissions and honors the author at theaward ceremony. The winning essay,
together with the other submissions, arepublished in an annual collection for theteaching community. The library also
cosponsors the Nursery Rhyme CultureAward with The Association of Children’s
Song Writers in Japan to nurture the tradition of nursery rhymes.

The Development of
the Printing Industry
As an industry leader, Toppan has always
striven to modernize the printing industry
and promote information culture in
Japan. Toppan Chairman & Representative Director Hiromichi Fujita has spearheaded efforts to develop the industry
through his activities as the chairman of
the Japan Federation of Printing Industries*1 as a keynote speaker at the 2001
World Print Congress*2 (since 1995) andas a co-chairman of the 2002 COMPRINT*3 conference.
The decision to hold the 1st World
Printing Technicians Conference*4 ofSeptember 2003 in Japan was based on a
proposal by Chairman Fujita. Printing
technicians gathered from around theworld to forge a vision of the printing
industry in the 21st century from a global
viewpoint. The conference encouraged afree exchange of ideas, along with theopportunity to showcase the tremendous
potential of the Japanese printing industry to the rest of the world.

1st World Printing Technicians Conference
The Textbook Library*1 Japan Federation of Printing Industries
Founded in 1985 by 10 printing companies as avehicle to raise the printing industry to a higher
level and improve lifestyle culture. The federation
undertakes various activities to address the mission
and tasks of the industry as a creator of information value in the 21st century.

*3 COMPRINTIn keeping with its name, a hybrid of “Communication” and “Print,” this international conference
addresses the status and outlook of the communications industry with a focus on printing
and the debate of strategic policies. The meeting
was merged into the WPC after 2002.

*2 World Print Congress (WPC)
Jointly organized by printing federations fromaround the world every four years to address
issues directly facing the industry and discuss theimportant topics to do with marketing, technology,
and management in the 21st century. The next
congress will be held in South Africa in January
2005.

*4 World Printing Technicians Conference (WPTC)
A conference proposed by Toppan Chairman
Hiromichi Fujita at the 7th World Print Congressin Beijing in 2001. As Chairman Fujita proposed,
the WPTC serves as a forum for technical discussion among the world printing industry on threefronts: 1) further implementation of IT, 2) moreaggressive action to solve environmental problems,and 3) the standardization of printing technology.

43

Sharing Emotions
As a leader in the information communications industry, Toppan believes that the communications of
the future must have the power to stir human emotion. This makes Toppan’s support for music andthe visual arts all the more crucial.

Toppan Hall
Among the many arts that stir humanemotion, music is one of the most ubiquitous and beloved. Toppan Hall is a meeting place where classical musicians cometogether with the audience to shareemotion. Toppan opened the hall in 2000
to commemorate its 100th anniversary.
Today it serves as a kind of cultural retreat:a place for soothing refuge in the highly
advanced and often chaotic informationsociety of the present.
A hall opened to the public
Since its opening, Toppan Hall has hosted
some 40 events a year. The concerts contribute to the local community, nurture
young artists, and spread the appreciation of classical music among younger
fans. The Toppan Hall impresarios support up-and-coming young musicians at
the free Lunchtime Concerts and similar
events. More than 140,000 people have
now attended performances in the hall.
Thousands among them have praised theoutstanding acoustic design, as have themany artists from Japan and the rest of
the world who have performed there.
The hall has also garnered attention outside of Japan for its superb acoustics during performances of chamber music.

The hall has been constructed with abarrier-free design, including wheelchairaccessible areas.

Calendar of award-winning submissions for theBook Report Drawing Contest

Barrier-free design

Co-sponsoring the Book Report
Drawing Contest
Since 1989, Toppan has assisted The
Mainichi Newspapers Co., Ltd. and Japan
School Library Association as a co-sponsor of their annual drawing contest to
encourage youths to express their impressions of books through drawing. The contest accepts submissions from students inthe lower and higher grades of elementary school, middle school, and highschool. About 430,000 submissions from
more than 7,000 schools were received
for the 15th contest in 2003. The young
creators of the prize-winning drawings
are conferred the Toppan Printing Co.,
Ltd. Award, a reproduction of a famous
painting printed using Toppan’s new
Primagraphie technology.
The top 12 submissions from thewinners of the Excellence Awards are
reprinted in a calendar distributed free ofcharge to schools and other institutions
nationwide.

Toppan Hall

The 15th Book Report Drawing Contest

Lunchtime Concert

44

Choral Groups
In 1959, Froebel-Kan Co., Ltd. organized
the Froebel Boys Choir to foster young
men with refined sensibilities in a country
where boys choirs were relatively rare.
Since its founding, as many as 1,000 boys
have passed through its distinguishedranks. The choir now has about 80 young
vocalists, ranging from 3-year-olds to second-year students in middle school.
The boys give one annual performance,
as well as special concerts, recitals in prefectural culture centers, and studiorecitals for TV commercials. Concert audiences praise them lavishly.

Froebel Boys Choir

Social Report

Tree Planting and Harmony with Local Communities

Activities for Society and Culture

As a major consumer of paper, Toppan works vigilantly to protect and nurture forests through direct andindirect initiatives. In addition, all of Toppan’s operational sites in Japan are involved in communication
activities with their local communities.

Tree-planting Businesses
Funding for GPFL in Australia
In 1997, Oji Paper Co., Ltd. and Nissho
Iwai Corp. (now Sojitz Corp.) jointly
formed the Green Triangle Plantation
Forest Company of Australia Pty. Ltd.
(GPFL), a tree-planting business focusedon the production of hardwood chipin the State of Victoria, Australia (The
Hokkaido Electric Power Co., Inc. joined
the joint-venture in the year 2000). With
more than 5,990 hectares of new forest
already planted as of the end of 2003,
the company continues to make good
progress towards its target plantation of
10,000 hectares by 2006. From 2007, theventure will begin felling trees and replanting saplings to maintain the plantation.
From 2001, Toppan also began participating in a project to develop methods tomonitor the amounts of CO2 absorbed byforests, in cooperation with the National
Institute for Environmental Studies,
Mitsubishi Research Institute, Inc., and Oji
Paper Co., Ltd. GPFL contributes to thisproject by providing a research field fordata measurement in Australia.

Investment in PPT of Australia
In fiscal 2004, Toppan plans on taking
a capital stake in Plantation Platform ofTasmania Pty. Ltd. (PPT), a plantation business in the State of Tasmania, Australia.
PPT was founded in 1999 as a joint venture of Daio Paper Corporation and sevenother Japanese companies seeking toestablish a hardwood plantation in northeast Tasmania in collaboration with theTasmanian Forestry Commission. The venture aims to plant 7,500 hectares oftrees by the end of 2014. The first 2,000
hectares were planted between 2000 and
2003.
Japan Overseas Plantation Center for
PulpwoodIn fiscal 1999, Toppan became a supporting member of the Japan Overseas
Plantation Center for Pulpwood, an organization promoting sound economic development and environmental preservation
in local communities around the world.
The center actively surveys and researches
commercial tree plantations overseas.

Harmony with Local
Communities
All of Toppan’s operational sites organize
activities to deepen their ties with thelocal communities in which they operate.
Most of the sites invite neighbors fromthe community to take on-site tours, andmany hold annual beer festivals in Julyor August. Others organize get-togethers
between employees and neighbors tonurture friendships. These and other activities have made the sites popular destinations for local people seeking relaxation
and recreation. Needless to say, the men
and women of Toppan also take part incommunity events outside the company.
Public space at the Toppan
Koishikawa Building
The Toppan Koishikawa Building (Bunkyo
Ward, Tokyo), completed in May 2000,
features an approximately 3,000 m2
expanse of “public green space” lushly
planted with some 5,500 trees andshrubs. Employees and the public are
encouraged to visit.

■ Tree Planting Sites in Australia

Public space at the Toppan Koishikawa Building

Plantation of GPFL

Plantation of PPTMultipurpose facilities andgymnasiums open to the public
The gymnasium at the Itabashi plant(Itabashi Ward, Tokyo) and multipurpose
facility “Yuai Fraternity Plaza” at Toppan’s
Asaka plant (Niiza City, Saitama Prefecture) are open to the local communities
as well as Toppan employees. The facilities are used to host local sports events,
rehearsals for musical ensembles (including employee groups), and other functions that require community spaces ofthese types and are much appreciated.

45

Social Activity Highlights
Instilling the Corporate Philosophy with the CONVEX Newsletter
Toppan uses an internal newsletter as another medium to encourage the fulfillment of CSR.

Bringing the Corporate
Philosophy Closer to Employees

Corporate Philosophy
Each of us shall

The corporate philosophy Toppan Vision
21 is the embodiment of Toppan’s mostimportant values and the future directions of Toppan’s businesses. Beginningfrom October 2001, Toppan’s newsletter
CONVEX has been running “Think! Toppan
Vision 21 is for Everybody!”, a special
feature on the Corporate Philosophy. The
aim is to encourage employees to live thephilosophy with a profound understanding of its purposes and beneficiaries.
Guest contributors—employees fromdifferent divisions, positions, work types,
ranks, and genders—write out what
Toppan calls “My Mission” statements,
detailed descriptions of how they infuse
the Corporate Philosophy into their own
work. Over the past two and a half years,
CONVEX has published the My Mission
statements of 175 employees. The authorsof the statements strengthen their own
resolutions by committing them to paper,
while readers discover how the corporate
mission extends into the day-to-day activities of every type of employee within thecompany.

reciprocate our customers’ continued trust,create dedicated products byharnessing our vibrant knowledge and technology,
and contribute to a fulfilling lifestyle as, shallreciprocate the continued trust of
create dedicatedbyharnessing,
and contribute to a fulfilling lifestyleas a member of Toppan,a mainstay of information and culture.
“Work” for mea mainstay of information and culture.
Important parts of the Corporate Philosophy areleft blank so that employees can apply the statement to their own working situations and ponder
their roles more deeply.

Feature Articles on CSR
CONVEX runs feature articles on CSR topics in the hope of deepening the involvement of the Toppan workforce in CSR
activities. In the October 2003 issue, forexample, readers learned about the
Toppan Helpline and the importance ofcompliance in an article on “Expanding
the Conduct Guidelines.” Later, in the
March 2004 issue, readers were updated
on the latest news from the ComplianceDepartment and special reports fromthe authorities on compliance in an 8-pagefeature article on “Understanding Corporate Social Responsibility and Toppan’s
Measures.” Toppan will continue using
its internal communications tools to bring
CSR closer to its employees.

CONVEX newsletters (in Japanese)46,

Environmental Report
Living in harmony with the environment is clearly stated as one of the goals of the Corporate Creed.
A Declaration on the Global Environment has been made, and specific measures to meet the company’senvironmental responsibilities are being carried out in the four fields of Environmental Management,
Eco-protection, Eco-creativity, and Environmental Communication Activities.

Toppan’s Environmental Vision ————— P. 48

An overview of the environmental impacts of businessactivities, Toppan’s environmental action plan basedon the Declaration on the Global Environment, andmajor results

Environmental Management—————— P. 54
Activities

The systems forming the foundation of allenvironmental activities, and the organizational
creation of environmental measures

Eco-protection Activities ————————— P. 58

Activities to reduce environmental burdens at plants,
offices, and logistics departments

Eco-creativity Activities —————————— P. 64

Environmentally-friendly products, technologies,
and services to contribute to the realization ofa recycling-oriented society

Environmental Communication————— P. 70
Activities

Communications activities creating relationships
among a wide range of interested parties both insideand outside the company

Environmental Report

Toppan’s Environmental Vision
Toppan has set forth a Declaration on the Global Environment on the basis of its Corporate Philosophy andCorporate Creed. The declaration forms the foundation of the Environmental Action Plan, the company’s
framework for the promotion of specific environmental activities from fiscal 2004 onward.

Toppan’s Environmental Burden
and Environmental Impact■ Input/Output Data

INPUT

To effectively reduce the burden it
places on the environment, a company must accurately understand theimpacts imposed by all of its processes
and operations. Toppan compiles an
Eco-balance sheet on the input (useof materials, energy, etc.) and output(emissions created by production) of
every production plant, and the sites
themselves conduct multifaceted environmental assessments. Environmental
targets are set based on the results,
priority activities are decided, and theresults of activities are verified.
As a company operating highly
diverse businesses, Toppan impacts theenvironment in a variety of ways. To
track these impacts accurately, thecompany compiles and analyzes data
separately in its three core businessesof Information & Networks, Living
Environment, and Electronics.

Information & Networks

OUTPUT

EnergyTotal energy consumption(1,000 GJ)
Electric energy (1,000 GJ)
Fossil fuel energy (1,000 GJ)

Atmosphere
18,423
13,544
4,879

Information&
Networks
Water

Water system and soil

Water consumption (1,000 m3) 14,698
Industrial-use water (1,000 m3) 1,418
3,145
Municipal water (1,000 m3)
10,135Groundwater (1,000 m3)(Utilization of rainwater)
15(1,000 m3)(Utilization of water circulated
787
on premises) (1,000 m3)

Total water discharge (1,000 m3) 12,011
Public water system (1,000 m3) 8,721
3,290
Sewage system (1,000 m3)
Underground penetration
62(1,000 m3)
3
2,099
On-site evaporation (1,000 m )245
BOD discharge (tons)
125
COD discharge (tons)
44
Nitrogen discharge (tons)
3
Phosphorous discharge (tons)

LivingEnvironment

Electronics

Main raw materials
Paper, plastic film (1,000 tons)
Ink (1,000 tons)
Solvents (1,000 tons)

Waste
1,645
32
18

Waste discharge (tons)
Recycling (tons)
Final landfill waste (tons)

Information & Networks
Offset Printing Process

Editing

The text and images to be printed areedited on a computer through digitalprocessing. A mockup is printed out by
a proof-use printer and reviewed (proofread) before the print data are sent on
to the plate-making process.

Platemaking

A printing plate is created from the print
data. Text from the print data is combined with digital images in a prescribedlayout and output (printed and developed) on four separate plates, one foreach basic color.

EnergyTotal energy consumption (1,000 GJ)

6,699

Water
Water consumption (1,000 m3)

2,237

OUTPUT
Atmosphere
CO2 emission (t-CO2)
Emission of substances destructive tothe ozone layer (ODP-t)
NOx emission (tons)
SOx emission (tons)
Emission of dioxins (g-TEQ)

315,7823
102
1

Printing

0.009

Four colored plates (yellow, magenta,
cyan, and black) are placed in the offset
printing machine and the inks are printed
onto the paper and dried. A large volume of materials can be printed.

Water system and soil
Total water discharge (1,000 m3)

1,673

Underground penetration (1,000 m3)

12

On-site evaporation (1,000 m3)522

BOD discharge (tons)

130

COD discharge (tons)

21

Nitrogen discharge (tons)

8

Phosphorous discharge (tons)

1

Finishing

Waste
Total waste discharge (tons)
Recycling (tons)
Final landfill waste (tons)

48

464,038
449,304
14,734

Notes: *The input and output data cover the Toppan Group (see P. 78). Besides the three core businesses, data from
non-manufacturing sites are also included in Toppan’s total.
*Main raw materials values from overseas subsidiaries and independent subsidiaries are partially excluded.

INPUT

Operations in the Information & Networks
are based on information technology andinclude commercial printing, publications
printing, and the securities and card businesses. The main business activity is offset
printing, and the main equipment used
for this operation is the offset rotary press.
On the input side, the large-scaleconsumption of paper indirectly impacts
the environment by depleting resources
through the felling of forests. In the bookbinding operations after printing, waste
paper is generated as an output when
the paper is cut to form books.
In terms of energy, power motors andink drying machines consume large
amounts of electricity and gas as inputs
and discharge gas emissions as an output.

853,359
CO2 emission (t-CO2)
Emission of substances
5
destructive to the ozone layer(ODP-t)224
NOx emission (tons)
67
SOx emission (tons)
0.013
Emission of dioxins (g-TEQ)

224,643
222,229
2,413

Deliveryto thecustomer

The printed material is bound by the
bookbinding process, cut, or treatedby a surface-processing treatment, etc.
according to specifications.

Printed and processed products such asmagazines, books, catalogs, pamphlets,
flyers, securities, and gift certificates aredelivered to the customer.

Environmental Report
Toppan’s Environmental Vision

Living Environment

Living Environment
Gravure Printing Process

INPUT

Operations in the Living Environment field
include packaging and the manufactureof materials for industrial use. The business itself is focused on the developmentof products that can contribute to more
comfortable lifestyles. A major area of
operations in this field is gravure printing,a process mainly involving the coating ofprinting plates with copper and chrome
plating. While the water discharge fromthe plating process can be easily renderedharmless, the liquid discharge from themaintenance equipment and the sludge
produced after the wastewater treatment
both burden the environment. In theprinting that follows, the ink is diluted byorganic solvents, printed on paper, anddried by vaporation using hot air. The
heat energy needed for the drying is an
input; the gas emissions from drying are
an output.
Paper and plastic are also consumed
and discharged during these operations.

Electronics

Total energy consumption (1,000 GJ)

5,181

Water
Water consumption (1,000 m3)

Platemaking

A printing plate is created from the print
data by corrosion or engraving. Text
from the print data is combined withdigital images in a prescribed layout andoutput (printed and developed) on separate plates, one for each color.

2,064

OUTPUT
Atmosphere
CO2 emission (t-CO2)

262,015

Emission of substances destructive tothe ozone layer (ODP-t)

2

NOx emission (tons)

86

SOx emission (tons)
Emission of dioxins (g-TEQ)

49

Printing

0.004

Once the color plates are placed in theprinting machine, inks of four different
colors are layered on top of one another,
printed onto films or paper, and dried. Alarge volume of materials can be printed.

Water system and soil
Total water discharge (1,000 m3)

1,530

Underground penetration (1,000 m3)

44

On-site evaporation (1,000 m3)395

BOD discharge (tons)

20

COD discharge (tons)

20

Nitrogen discharge (tons)

10

Phosphorous discharge (tons)

1

Finishing

Waste
Total waste discharge (tons)
Recycling (tons)
Final landfill waste (tons)

174,075
169,073

Deliveryto thecustomer

5,002

The printed films or papers are either combined with other films and processed, or
treated by surface-processing treatment to
add strength and required properties. In
the final stage, the printed matter is cut,stamped, and processed as required tomeet the specifications of the end product.
The printed and processed products
include films and paper for various typesof packaging products, containers, wallpapers, and cosmetic sheet metal usedas building materials.

Electronics
Color Filter Production

INPUT

In the Electronics field, Toppan supports
the IT industry by producing parts forsemiconductors and displays. The company designs and manufactures a hostof electronic components and devices,
including photomasks used in the manufacture of semiconductors, LSI (largescale integrated circuit) package-related
products, color filters for liquid crystal
displays, and printed wiring boards forvarious electronic units. Production facilities for these precision products require
extremely clean environments. Among the
inputs is the consumption of energy for
air-conditioning to maintain the plant
humidity and temperature at a fixed level.
Among the outputs, the discharge ofchemicals for processing and the wastewater generated from repeated washings
account for most of the environmental
burden in the Electronics business.

Editing

The text and images to be printed areedited on a computer through digitalprocessing. A mockup is printed out by
a proof-use printer and reviewed (proofread) before the print data are sent on
to the plate-making process.

EnergyEnergyTotal energy consumption (1,000 GJ)

5,819

Water
Water consumption (1,000 m3)

Formationof theblack matrix

10,062

Resistdeposition
OUTPUT
Low-pressure
dryingAtmosphere
CO2 emission (t-CO2)0

NOx emission (tons)

31

Emission of dioxins (g-TEQ)

Color resist is applied to the substrate.

The color resist is dried.

245,185

Emission of substances destructive tothe ozone layer (ODP-t)
SOx emission (tons)

A black matrix made of a low-reflection
chrome or resin is formed on a glass
substrate (the black matrix improves thedisplay contrast, making it easier to read).

Exposure

A part of the pattern is exposed andinsolubilized.

Development

All film is removed except the exposed
pattern.

17
0.000

Water system and soil
Total water discharge (1,000 m3)
Underground penetration (1,000 m3)
On-site evaporation (1,000 m3)

8,518
5

Baking

1,128

BOD discharge (tons)

86

COD discharge (tons)

80

Nitrogen discharge (tons)

22

Phosphorous discharge (tons)

1

Formation oftransparent
electrodes

The remaining pattern is baked andattached to the substrate. (The five steps
from resist deposition to baking arerepeated for each RGB three color).
Transparent electrodes are formed.

Waste
Total waste discharge (tons)

62,152

Recycling (tons)

54,933

Final landfill waste (tons)

7,219

Formation ofphoto spacer

A transparent photo spacer is formed to
improve the uniformity of the liquid crystal layer, if necessary.

49

Environmental Targets under the Declaration on the Global Environment
Based on its Environmental Action Plan, Toppan specifies a concrete action to realize the goals of
its Declaration on the Global Environment. The company has also reviewed and established
Medium-term Environmental Targets, Long-term Environmental Targets, and Environmental
Targets for the current fiscal year.

Declaration on the Global
Environment
In 1991, Toppan established the Ecology
Center and assigned it the role of overseeing environmental activities. The following April, the company laid out the
Toppan Declaration on the Global Environment, a comprehensive environmental
philosophy appended with explanationsof methods to be used to translate thatphilosophy into action. Since then, thedeclaration has guided the efforts of all
employees of the Group as they work
together to advance Toppan’s environmental activities under the leadershipof the Ecology Center.
In September 2000, areas of the Toppan
Declaration on the Global Environment
were revised to reflect reformed management policies. The Environmental Action
Plan is reviewed on a regular basis, andthe Environmental Targets are treated as
an index of Toppan’s environmental management as the company forges ahead
with its ongoing reforms.
The Toppan Declaration on the Global
Environment will be completely revised
whenever social attitudes on the global
environment undergo a significant change.
The Company’s environmental activities will
be continuously improved on every front.

Environmental Action Plan andEnvironmental Targets
Based on its Environmental Action Plan,
Toppan specifies concrete policies for allof its businesses to achieve the targetsof the Declaration on the Global Environment. The Environmental Action Plan
specifies Medium- and Long-term Environmental Targets and Environmental
Targets for the current fiscal year. The
Declaration on the Global Environment
provides the company with a road map
for expanding its environmental activities
and encouraging employees to take anactive role.

■ Toppan’s Environmental Action Plan
Toppan Declaration on the Global Environment

1. Each of our employees recognizes
the importance of global
environmental issues and endeavors
to conserve the global environment.

2. We actively promote energy/
resource conservation and recycling
as means of conserving the global
environment.

3. We abide by the law and social order,
striving to prevent environmental
pollution.

Activities

Medium- and Long-term Environmental Targets

Employee education &development•Enhance employee awareness on environmental issues and promote
corporate-wide activities to preserve the environment

Social contributions•Participate voluntarily in social activities and actively contribute to
the cause of environmental conservation

Energy/resource
conservation•Raise the environmental burden improvement ratio (net sales/
CO2 emissions) by 20% (over the level in fiscal 2000)

Reduction ofgreenhouse gases

Sorting waste &recycling

Prevention ofenvironmental
pollution•Reduce final landfill waste disposal by 90% by fiscal 2010 (fromthe level in fiscal 2000)•Realize zero-emissions target in all domestic operational sites by fiscal
2010 through the effective use of industrial waste generated in
production•Comply with in-house control standards that embody the legal
regulations•Communicate appropriately with stakeholders•Reduce VOC atmospheric emissions by 90% by fiscal 2005 (from thelevel in fiscal 2001) (for the 12 sites emitting large amounts of VOC)Management ofchemicals•Reduce toluene atmospheric emissions by 90% by fiscal 2005 (from thelevel in fiscal 2001) (for the 12 operational sites emitting large amounts
of toluene)•Realize zero-emission of dichloromethane by the end of fiscal 2005

4. Through our business operations,
we actively support our customers’
activities to conserve the global
environment.

•Expand proposals on environmentally-friendly printing technologies,
products, and services
Commitment to Ecocreativity Activities

5. In our research, we endeavor todevelop products and technologies
that help conserve the global
environment.

6. We implement corporate activities
designed to further global
conservation in the context of
an international society.

Planning, research,and development ofenvironmentallyfriendly products
and technologies•Participate in and operate the Green Standard Guideline for the Printing
Industry•Develop environmentally-friendly products and disclose environmental
information•Comply with local regulations, international conventions, etc.
Conservation of the
global environment
at overseas
operational sites*Partially applicable to overseas subsidiaries. Not applicable to independent subsidiaries.

50•Expand environmental communication activities•Establish environment management systems in overseas production
plantsEnvironmental Report
Toppan’s Environmental Vision

The company considers one fiscal year
as one cycle for its environmental activities and reviews its environmental activities within that time frame. Once theEcology Center collects records on theactivities for the year, the Chief Environmental Manager evaluates the results,
reviews the Medium- and Long- term
Environmental Targets, and sets up specific Environmental Targets for the following fiscal year.

Evaluation criteria

Evaluation and Review of Toppan’s
Progress in Achieving Its Targets
Toppan laid out a total of 20 environmental targets for fiscal 2003 and undertook various programs and activities toattain them. As of the end of the year, 11of the targets were reached and nine
have not yet been achieved.
The Environmental Action Plan for fiscal 2004 has been reconsidered based on
the level of achievement of the fiscal
2003 targets. Specifically, two mediumand long-term environmental targets
were reformulated and one target was
newly established, completing a set of 17

S: Achievements significantly above target

Environmental targets for fiscal 2003

A: Target fully accomplished

Evaluation

Medium- and Long-term Environmental
Targets and 20 Environmental Targets topursue throughout the year.
As an added mechanism to realize thesustainable development of its businessthrough environmental management,
Toppan has introduced an Environmental
Efficiency Index to measure its progress
towards this goal from this fiscal year.
Verifications of environmental efficiency
will be based on yearly changes in results.
The environmental burden improvement
index will help Toppan set its environmental targets by clarifying the progressof environmental management.

B: Tackled actively, but did not achieve target

C: Insufficient effort

Environmental targets for fiscal 2004

B

•Educate some 5,600 employees for basic environmental education
via the e-learning system•Continue funding of forestation activities and participation in forest
protection fundA

•Continue funding forestation activities and participation in the forest
protection fund•Basic unit of sales to energy consumption: Maintain fiscal 2000 levels*Review Medium- and Long-term Environmental Targets by December
2003 (internal amount ➝ sales amount)

B•CO2 emissions: Maintain fiscal 2000 levels ➝ measures by energysaving activities and fuel replacement*Review Medium- and Long-term Environmental Targets by December
2003 (absolute figure ➝ basic unit)

B•Educate 5,000 employees via the e-learning system•Final landfill waste disposal: 10% reduction from the level in fiscal 2002

S

•Increase the number of zero-emission sites recognized to 20•Raise the company’s environmental burden improvement ratio(net sales/CO2 emissions) by 9% over the level in fiscal 2003
*Reduce the basic unit of internal production at plants by 5% fromthe level in fiscal 2003

•Reduce by 10% (from the level in fiscal 2003)•Increase the number of zero-emission sites recognized to 20

B•Comply with and review in-house control standards in all operationalsites ➝ checked by in-house environmental audit

A•Comply with and review of in-house control standards in all operational
sites•Plants publishing site reports: Expand to 9

A

•Plants publishing site reports: Expand to 12——•Atmospheric emissions of VOC: Reduce by 80% (from the level in fiscal
2001)•Atmospheric emissions of toluene: Reduce by 40%(from the level in fiscal 2002)

B•Atmospheric emissions of toluene: Reduce by 45% (from the level infiscal 2003)•Atmospheric emissions of dichloromethane: Reduce by 10%(from the level in fiscal 2002)

S•Atmospheric emissions of dichloromethane: Reduce by 40% (from thelevel in fiscal 2003)•Sales from Environmental Business: Increase to 53.5 billion yen(10% over the level in fiscal 2002)

B•Sales from Environmental Business: Increase to 57.0 billion yen (10%over the level in fiscal 2003)•Sales from Environmental Activities: Increase to 115.0 billion yen(10% over the level in fiscal 2002)

S•Sales from Environmental Activities: Increase to 136.0 billion yen (10%over the level in fiscal 2003)•Promote environmental communication by participating in Eco-Products
2003

A•Promote environmental communication by participating in Eco-Products
2004•Deploy recycling systems for Cartocan (paper-based beveragecontainers) in plants located in Tokyo region

A•Deploy recycling systems for Cartocan (paper-based beveragecontainers) in 15 plants in Japan•Relevance ratio to Toppan’s Green Procurement Standard: Increase by
5 points (over the ratio in fiscal 2002)

B•Relevance ratio to Toppan’s Green Procurement Standard: Increase by
5 points (over the ratio in fiscal 2003)•Develop an LCA evaluation for environmentally-friendly products inthree business fields (Information & Networks, Living Environment,
Electronics)

B•Improve LCA education and develop the LCA evaluation ofenvironmentally-friendly products in the Information & Networks, Living
Environment, and Electronics businesses•Register 3 more environmentally-friendly products (total: 60 products)

S•Register 3 more environmentally-friendly products (total: 73 products)•Conduct in-house environmental audits in 3 plants in Asia and 2 plants
in the U.S.

B

•Conduct in-house environmental audits in 3 plants in Asia and 2 plants
in the U.S.

•Comply with local regulatory standards, prepare monthly reports
on environment-related information

A•Comply with local regulatory standards and prepare monthly reports
on environment-related information•Introduce and operate environmental management systems at
11 overseas production plants

A•Introduce and operate environmental management systems at
11 overseas production plants

51

Environmental Achievements in Fiscal 2003
Toppan set a total of 20 Environmental Targets for fiscal 2003 and undertook various programs to attain them.
This section describes and evaluates the company’s achievements and activities for this year.

Major Achievements

Major Issues

Major achievements in Eco-protection
Reducing final landfill waste disposal
Thanks to the promotion of zero-emissions, the company was able to reduce
final landfill waste disposal by 25.4%
compared to the previous fiscal year. This
well exceeded the targeted reduction.
Reducing atmospheric emissions ofdichloromethane
Dichloromethane is used at printing plants
mainly as a cleanser. Efforts by the company to switch to other cleansers led toa 23.0% reduction in the atmosphericemissions of dichloromethane in fiscal
2003 compared with the previous fiscal
year. This well exceeded the targeted
reduction.
Major achievements in Eco-creativity
Promotion of Environmental Business
Sales from environmental activities in fiscal 2003 jumped by 18.1% to 123.5 billion yen year on year, well exceeding thetargeted increase of 10%. This successcan be mainly credited to expanded
orders of printed matter made from environmentally-friendly raw materials.
Wider lineup of environmentallyfriendly products
Toppan introduced 13 new environmentally-friendly products in fiscal 2003, farsurpassing its target of three. As of March
2004, Toppan had 70 environmentallyfriendly products on the market.
■ Sales of Environmentally-friendly
Products(million yen)

60,00051,96848,57850,00044,59740,00040,05830,00020,00010,000
0

2000

2001

2002

2003
(fiscal year)

52

Major Issues in Environmental
Management
Environmental education via
e-learning
Toppan provides environmental education to its employees via an e-learning
system. The company fell slightly short oftraining a targeted 5,000 employees under
the program during fiscal 2003 (4,878
employees trained). A follow-through will
be conducted in fiscal 2004 for the 406
employees who did not complete thetraining.
Some 5,500 have completed the training over the past two years, and the company plans to educate another 5,600 in
fiscal 2004 alone.
Major Issues in Eco-protection
Energy usage
Toppan adopted widespread energy-efficiency measures in an attempt to maintain its basic unit of energy usage at the
fiscal 2000 level. Despite these efforts,
the result was a 14.9% increase in fiscal
2003, mainly due to the opening of new
production plants and renovation of existing facilities. With the rise in the basic
unit of energy usage, emissions of CO2
also increased by 6.5% compared withthe fiscal 2000 level.
In fiscal 2004, Toppan will be bolstering its energy management system inorder to improve energy efficiency andensure conformance with the company’s
energy-efficiency standards when new
facilities are introduced.
Zero-emission sites
Operational sites with a recycling rate of
98% or above are candidates for zeroemission certification. Of the 23 candidates
for fiscal 2003, 17 satisfied the zero-emission criteria in the categories of recycling
maintenance and reformed sorting standards.
In fiscal 2004, the 29 sites that achieved
recycling rates of 98% or better in fiscal
2003 will be subjected to internal environmental audits as part of the certification review.

Atmospheric emissions of toluene
The 38.8% reduction in toluene emissions in fiscal 2003 was below target, buttoluene emissions fell by more than 2,000
tons.
In fiscal 2004, the installation of new
gas-emission-processing equipment atfour plants is expected to reduce toluene
emissions by about 1,500 tons and meet
the targeted 45% reduction from thelevel in fiscal 2003.
Major Issues Concerning
Eco-creativity
Environmental Business
Toppan fell short of its target of a 10%
increase in sales in Environmental Businesses over the previous fiscal year. Results
were nonetheless favorable: increasedorders for environmentally-friendly products boosted sales by 7.0%, to 52.0 billion yen.
Toppan aims to meet its goal of a 10%
year-on-year increase in fiscal 2004 by
speeding up the development of environmentally-friendly products.
Toppan Green Procurement Standard
These procurement standards are being
applied to offset printing operations. The
compliance ratio for paper rose by 4.4%
in fiscal 2003, short of the 5-point
increase targeted for the year. As thecompliance ratio for ink is already high(94.2%), the company is aiming to maintain this rate.
Toppan hopes to achieve a 5-point
improvement in the compliance ratio in
fiscal 2004 by pressing ahead with its current activities and promoting environmentally-friendly printing services.
Promoting Life Cycle Assessment(LCA)
The LCA method was used to assess interior housing materials in the Living Environment field and LCD color filters in theElectronics field. No assessments have yet
been completed in the Information &Networks field.
In fiscal 2004, Toppan plans to complete
an LCA in the Information & Networks
field and expand the number of products
covered in all of its assessments.

Environmental Report
Toppan’s Environmental Vision

Environmental Accounting

Toppan introduced environmental accounting in fiscal 1998 as a tool for effective decision-making
in environmental management. The company began to include overseas subsidiaries in its environmental
accounting from fiscal 2001 in order to expand the scope of the accounting and disclose more detailed
information to stakeholders.

Results for Fiscal 2003
Environmental conservation cost
Compared to the previous fiscal year, theaggregated results for fiscal 2003 show
an investment increase of 2,769 million
yen and an expense increase of 570 million yen.
A major part of the increased investment was used to fund the introductionof wastewater processing equipment at
newly completed production plants in theElectronics field. Toppan also outlaid newinvestments to install processing equipment for gas emissions from the printing-and-drying processes in the Living Environment field.
The increase in environment conservation expenses in fiscal 2003 mainly stems
from the introduction of environmental
conservation equipment over the past
several years. At the same time, comprehensive measures to separate waste generated from production processes havedramatically cut the expenses associatedwith waste processing and boosted therecycling ratio.
Economic benefit and environmental
conservation effect
The economic benefit of environmental

business was as high as 544 million yen(+7.3%) in fiscal 2003, thanks chiefly toincreased sales of environmentally-friendly
products.
The environmental conservation effects
for the year were dramatic. Emissions of
dioxins were reduced by 94% from fiscal
2003, down to 0.19 g-TEQ, through theremodeling and shutdown of Toppan
Group incinerators. Emissions of NOx and
SOx were reduced by 45 tons and 15
tons, respectively. Toppan’s efforts to
reduce the emissions of these substances
will continue in the future.

■ Toppan Group’s Environmental Accounting for Fiscal 2003
Environmental Conservation Cost

(unit: millions of yen)

Change (current term–
previous term)

Current term
Item

Description of major contents(1) Total internal cost

Investment

Expenses

Investment

Expenses

5,113

9,609

2,638

777

1. Pollution prevention cost

Cost for pollution prevention, such as atmospheric pollution
prevention

3,629

4,018

1,931

774

2. Global environmental
conservation cost

Cost for global environmental conservation, such as global
warming prevention

708

624

493

88

3. Waste treatment andrecycling cost

Cost for adequate treatment and recycling of waste materials

775

4,967

213

▲86

(2) Upstream/downstream cost

Cost for green procurement, containers/packages recycling, etc.

—

453

—

20

(3) Administration cost

Cost for obtaining certification for environmental management
systems, maintenance, tree-planting at sites, etc.

229

875

156

▲52

(4) R&D cost

Cost for research and development of environmentally-friendly
products, etc.

132

767

▲24

▲119

(5) Social activity cost

Cost for donations, support, etc. for environmental conservation
organizations, etc.

—

9

—

▲1

(6) Environmental damage
remediation cost

Cost for restoring damage such as soil pollution, and others

—

0

—

▲54

5,474

11,712

2,769

570

Total
Total investment for the period covered

Economic Benefit
Item(1) Energy-saving

85,108(unit: millions of yen)

Description ofmajor contents
Reduced amount related
to energy-saving(current term–
previous term)

26

▲80

(2) Sales ofcommodities

Sales amount of thewaste from plants

1,782(3) Environmental
business

Profit amount related tosales of environmentallyfriendly products

7,991(4) Subsidies

Subsidies related toenvironmental
countermeasures

ChangeCurrent
term

4

269

Environmental Conservation EffectDescription of major contents

Reduction

Environmental
burden forfiscal 2003

EnergyTotal energy consumption (1,000 GJ)▲975

18,423Water

Water consumption (1,000 m3)▲571

14,698

Atmosphere

CO2 emission (1,000 t-CO2)

▲35

853

Emission of substances destructive tothe ozone layer (ODP-t)

0.55

4.63

NOx emission (tons)

45

224

SOx emission (tons)

15

67

Emission of dioxins (g-TEQ)

0.19

0.013

Total water discharge (1,000 m3)▲708

12,011

Underground penetration (water)(1,000 m3)

▲10

62

Item

544

4

Notes : *Entities covered: Toppan Group (see P. 78)*Period covered: April 2003 to March 2004 (January 2003 to December 2003 foroverseas subsidiaries)*Total values may not match, as decimals were rounded up or down.
*The “▲” symbol denoting a negative value indicates an increase from theprevious year.

1,796

Water systemand soil

Waste

On-site evaporation (water) (1,000 m3)

▲325

2,099

Discharge of water-polluting
substances (tons)

▲71

417

Total generation (1,000 tons)

▲56

464

53

Environmental Report

Environmental Management Activities
Toppan has created an environmental management system to enhance the efficiency of its
environmental activities and promote the use of the PDCA cycle as an underpinning to environmental
action. This section gives a detailed overview of Toppan’s environmental management system.

Summary of the Environmental
Management System
Toppan’s environmental management
relies on the operation of an established management system that covers the sales, sales promotion, andR&D departments in addition to theactual production plants. At one level,
executives conduct ongoing environmental management reviews to ensurethat the PDCA cycle, a core part ofthis system, continues to improve theefficiency of environmental measures.
Meanwhile, data on the actual resultsof environmental measures are collected by the Ecology Center in thehead office, evaluated and verified by
the Chief Environmental Manager,
and reported to top management.
After further reviews, the improvements to the system are promoted
throughout the entire company.

Plan
Environmental
targets forplantsDo

ActionEnvironmental
activities

Review by plant
management

Plant

Check
Environmental
auditing

Plan

Plan

Environmental
targets for
department

Environmental
targets for
department

ActionAction
Do

Review by
department
management

Environmental
activities

Do

Review by
department
management

Environmental
activities

Sales and Sales
Promotion
Departments

R&D Department

Check

Check

Environmental
auditing

Environmental
auditing■ Overview of Environmental Management

Environmental
aspects

ToppanDeclaration on
the Global
Environment

Environmental
impactGreenpurchasing

Cohabitation
with local
community

54

Environmental
Communication Activities

Information
sharing

Eco-creativity Activities

Environmental
Targets

Production plants/Research centers
Environmental
policyEnvironmental
objectives

Eco-protection
Activity Plan

Eco-protection
Promotion
Committee

Environmental
activities

Environmental
targets

Eco-protection
Achievement
ReportProgress review
Achievement
evaluation/review

National
Eco-protection
Meeting
Chaired by
the Chief
Environmental
Manager(semiannually)

Review

LCA
evaluation

Mediumand Long-term
Environmental
Targets

Eco-protection Activities

Legal
requirements

Sales/SP and R&D departments
Development
targets

R&D of environmentallyfriendly products

Subject of
research

Review

Targeted
sales

Sales activities forEnvironmental Business(As required)Development system forenvironmentally-friendly products
Progress review
Achievement evaluation/review

National
Meeting on
Eco-creativity
Datacollection

Promotion system for
Eco-creativity Activities
Sales management

Chaired by
the Chief
Environmental
Manager

Communication
targets

Consciousness
surveyEnvironmental
PR

Revision ofMedium- andLong-term
Environmental
Targets(semiannually)

All departments
Internal communication activities
External communication activities
Activities with local communities
Social contribution activities

Environmental
management
review by top
management

Data
collection

National
Eco-protection
MeetingNational
Eco-creativity
Meeting(semiannually)

Revision ofEnvironmental
Targets

Environmental Report

Environmental Management Structure and Promotion System

Environmental Management Activities

Toppan is building up an ISO 14001-based environmental management system as a framework for its
Eco-protection and Eco-creativity Activities. The company also started the Toppan Group Environmental
Meeting in fiscal 2003 to reinforce the environmental management structure of the Toppan Group.

Environmental Management
Structure
Features of Toppan’s environmental
management
In every Toppan production plant, R&D
department, sales department, and sales
promotion department inside and outsideof Japan, the company has set up an environmental management system under thecontrol and leadership of the President& CEO and the Chief Environmental
Manager. The Ecology Center, a part of
the Corporate Manufacturing, Technology& Research Division at the head office, isdirectly responsible for operating the system. The center works to instill the environmental policies and environmental
targets among the employees of the various divisions and production plants, aswell as to convey environmental information from the divisions and production
plants back to top management.

The internal Eco-protection Promotion
System and internal Eco-creativity Promotion System have been established tomove the Eco-protection and Eco-creativity Activities at Toppan efficiently forward.
These systems are advancing various environmental activities under the direction of
the Ecology Center.
Reinforcing the comprehensive
strength of the Group
Toppan reviewed its environmental management structure as a corporate groupand organized the Toppan Group Environmental Meeting in June 2003 under the
auspices of the Meeting with Heads
of Affiliated Companies. The executives
heading Toppan’s affiliated companies
gather semiannually at this meeting todiscuss their shared environmental issues
and develop measures to harness theircomprehensive strengths.

Systems to Promote
Environmental Activities
Many of Toppan’s Eco-protection Activities
are launched independently at the plantlevel. Toppan plants convene their own
Eco-protection Promotion Committees,
each with its own subcommittees toaddress specific issues. The company’s
strong focus on energy-saving activities
has led to a considerable strengthening
and review of the Energy Subcommittees
since the beginning of fiscal 2003.
With regard to Toppan’s Eco-creativity
Activities, each division has establishedan Eco-creativity Promotion System todevelop environmentally-friendly products
and environmental support businesses.

■ Environmental Management Structure
Naoki Adachi President & CEO
Meetings with Heads ofAffiliated Companies
Toppan Group
Environmental Meeting
Corporate auditor
Toppan GroupEco Products Meeting

Domestic and overseas
production plants

Hideaki Kawai
Chief Environmental Manager
and Senior Managing Director

Directors at head office

Corporate Manufacturing
Technology & Research Division
Ecology Center

Related departments
at head office

R&D departments

Sales and sales
promotion departments

IFrequency: Biannually
National Eco-protection Meeting IMajor Objectives: Reporting and discussing
achievements of environmental activities
Tokyo Eco-protection
Meeting

IFrequency: Whenever necessary
IFunction: Advisory meeting on
company-wide environmental measures

Environmental ISO
Secretariat Meeting

IFrequency: Annually
IFunction: Strategy meeting on
management of ISO 14001

Eco-protection
Promotion Committee
Energy Subcommittee

Other Subcommittees

IFrequency: Monthly in principle
IFunction: Operational administration ofenvironmental management system
IFrequency: Monthly in principle
IFunction: Streamlining of energy use
IEstablished at each site, depending onsite-specific environmental features(type, scale, etc.)

National Eco-creativity Meeting

Tokyo Eco-creativity
Meeting

Eco-creativity Promotion System
Environmentally-friendly ProductDevelopment System at each division

LCA Working Group

IFrequency: Biannually
IMajor objectives: Reporting anddiscussing achievements ofenvironmental activities
IFrequency: Biannually
IFunction: Advisory meeting on
company-wide environmental
measuresIFunction: Promotion of
Eco-creativity of divisions
IFunction: Planning, development
and evaluation, registration,
qualification of environmentallyfriendly products
IFunction: Execution of LCA of
products

Note: Excluding overseas subsidiaries and independent subsidiaries.

55

Environmental Management System
Toppan’s environmental management system proposes environmental activities at each production plant.
In addition, Toppan promotes comprehensive in-house environmental auditing covering all operationalsites of the company. In fiscal 2003, six domestic and two overseas production plants were awarded
ISO 14001 certification.

Toppan’s Environmental
Management System
Toppan’s environmental management system is uniquely structured. At every operational site, the company’s PDCA Cycle
concept is put into practice irrespective ofISO 14001 certification. Forty-eight production plants and two research centers
in Japan are pressing ahead with theirenvironmental activities to achieve the targets set under the Eco-protection Activities
Plan.
Once each year, management confirms
and reviews the company’s environmental activities to ensure their continual
improvement. The basic data collected in
the review help Toppan formulate its Environmental Policy, Environmental Objectives, and Targets for the following year.
Status for obtaining ISO 14001
certification
The 22 operational sites awarded ISO
14001 certification by the end of fiscal
2003 included nine sites in the Information & Networks business, nine sites inthe Living Environment business, and foursites in the Electronics business. With the
new ISO certifications in fiscal 2003, thenumber of Toppan employees (including
subsidiaries engaged in production activity) working under ISO 14001 certification
reached about 15,000.
Among the Toppan Group companies,
Toppan Forms Co., Ltd. has obtained two
certifications, one at its Fussa plant andone at its R&D Center. Outside of Japan,
Toppan Chunghwa Electronics Co., Ltd.,and Toppan Printing Co., (Shenzhen) Ltd.
obtained the certification in fiscal 2003.
This brings the tally up to five certified
production plants overseas.

In-house Environmental
Audit System
Toppan’s in-house environmental audit
system follows a two-stage screening
process: a document audit and an on-site
audit. The in-house environmental audit
team consists of provisional auditors of
the Environmental Management System
and internal environmental auditors. This
team begins by inspecting and evaluating
the structural status of systems, the compliance with environment-related rules
and regulations, and the compliance within-house standards at all the operationalsites audited. Next, the team compiles the
In-house Environmental Audit Reports, areport specifying any necessary improvements pointed out during the audit, andsubmits it to the director in charge. The inhouse environmental audits are reviewed
within the same fiscal year in order toraise the level of compliance for the following fiscal year.
In fiscal 2003, the in-house environmental audit team audited 50 operationalsites in Japan and compiled a list of 390
areas in need of improvement. To correctthese deficiencies, each operational site
is now following an Improvement Plan
that lists the required improvements
and schedules deadlines for completion.
Toppan has confirmed the progress ofimprovement measures on 121 items at
11 operational sites through an in-houseenvironmental audit review.
Local hearings and inspections are carried out every other year at overseas production plants in the Americas and Asia.
In fiscal 2003, local environmental auditing was carried out at three production
plants in Asia. The company examined
the status of environmental management
and operations with respect to: 1) theunderstanding, operation, and confirmation of compliance with local environment-related laws and regulations; 2) theenvironmental impact on atmosphere
and water; and 3) the daily control ofwaste materials. The inspection identified
23 items requiring further improvement.
To improve the operational conditions,the overseas plants have used the sameprocedures employed under the Improvement Plan for domestic plants.

In-house environmental audit inspection■ Review of the In-house Environmental Audit
To ensure compliance with about 200 items for in-house environmental
In-house Environmental auditing specified by the head office, a summary of activities conductedAudit Reportthroughout the year is submitted to the head office in June of thefollowing fiscal year, in principle.
A review of the in-house environmental audit report is conducted prior to
the implementation of an on-site audit to clarify environmental aspects at
Document audit
each site.

On-site audit(1) Hearings with executives and staff in charge of environmental mattersat the operational site, based on the Manual on Hearings for the Inhouse Environmental Audit.
(2) Four-point evaluation (0, 1, 2 and 3) on applicable items, based on
Evaluation Standards for the In-house Environmental Audit.
(3) Verification of the state of environmental management via an
inspection within and around the operational site, based on the
Manual on Inspections for the In-house Environmental Audit.

Summary and evaluation Summary of issues in need of improvement, along with an evaluation
results of the in-house score and general comments. Returned to the operational site for
feedback.
environmental audit
Improvement Plan forSpecified Issues
In-house environmental audit hearing

56

In-house Environmental
Audit Reports
Review of In-house
Environmental Audit

Description of a specific improvement plan in response to issues in need of
improvement, as pointed out by the audit. Submitted to the head officeupon confirmation by executives at the operational site.
Delivered to the Auditor and the Chief Environmental Manager.

Conducted to assess progress and give appropriate guidance on issues
found in the audit to be in need of improvement.

Environmental Report

Environmental Education, Environmental Compliance,and Emergency Response

Environmental Management Activities

Toppan provides a comprehensive curriculum on environmental education to maintain and improve the scopeand quality of its environmental activities. The curriculum focuses closely on environment compliance, i.e.,compliance with all laws and regulations related to the environment. The company also provides emergency
training and carries out drills to ensure that its workforce can cope with accidents that threaten the environment.

Environmental Education
To maintain and improve the quality andscope of its environmental activities,
Toppan believes that its employees needto reach a new level of awareness. For
this purpose, the company provides asystematic range of educational opportunities to raise the environmental consciousness of its entire workforce, fromnew recruits to top managers.
Toppan provides its recruits with various
environmental education opportunities
to enlighten them on the relationships
between the printing industry and environment. Regular employees and newly
appointed supervisors can also learn
about specialized environmental issues bytaking elective training programs or thesupervisor’s training course. At the site
level, employees receive environmental
training focused on the environmental
burden of the specific production activities in which they engage. This training
also encompasses countermeasures todeal with environmental burden undertaken by the company to heighten
the environmental consciousness of the
Toppan workforce. Each educational program is reviewed on a regular basis. In fiscal 2004, the elective education program
will be opening a course to improve theskills of internal ISO 14001 auditors.
e-learning
Mindful of the importance of enhancing
education across the entire company,
Toppan introduced an e-learning system
supported by web-based training in fiscal
2002. This system offers educational
opportunities for all employees without
any constraints on time or place, andthe network platform supports two-way
communications for Q&A and other formsof dialog-based learning. Thanks to thissystem, employees can learn environmental issues effectively within a short time.
Some 5,500 employees have been
educated through the e-learning systemin the past two years, and the company
plans to educate another 5,600 by thesame method in fiscal 2004.
Toppan will continue to review andstrengthen its environmental education

program by constantly reviewing its environmental education system.

Approach to Environmental
Compliance
Compliance with environmentrelated laws and regulations
Toppan’s production plants comply withall environmental laws, regulations andagreements set by national and local governments. The plants also comply with
Toppan’s anti-pollution guidelines, which
are usually stricter than those set by government.
The compliance status at domestic
operational sites is reported to the head
office in Eco-protection Achievement
Reports every April. Overseas operationsites, meanwhile, submit Monthly Overseas
Operational Site Reports, and complianceat both domestic and overseas sites isconfirmed by in-house environmental
audits.
In a fiscal 2003 review of compliancestatus, all of Toppan’s Japanese production plants were found to be fully compliant with the standards on atmosphericemissions.
The biological oxygen demand (BOD)of wastewater from two sites exceeded
the legal limit, but corrective measures
quickly brought these levels back within
the standard.
The environmental standards for soil
were exceeded in two cases in fiscal
2001, one case in fiscal 2002, and one
case in fiscal 2003. Toppan is now dealing with the problem by soil remediation(excavation and backfilling), and further
remediation and surveys will be conducted in fiscal 2004.
Toppan received administrative notifications for exceeding the noise standards
twice in fiscal 2002. Both cases werecaused by malfunctions in outdoor facilities. Toppan immediately installed noiseinsulation materials and reported theimproved status to the relevant local governments. No administrative notifications
were issued for noise in fiscal 2003.
No lawsuits, penalties, or civil fines
were filed or imposed in fiscal 2003.

Response to Stakeholder
Requests
The communities around Toppan’s plants
filed a total of 40 complaints and inquiries
in fiscal 2003, inconveniencing many
stakeholders. The complaints dealt mainlywith noise and odors, two forms of urban
pollution. While most of the problems
were promptly solved, several require further efforts. Toppan will continue tomake capital investments in efforts toimprove facilities and deepen communication with local residents.

Emergency Response
Chemical solvents are handled and used
on a daily basis at each operational site.
Some types of accidents that occur during handling and use pose the risk of soil
and water pollution, particularly thosethat occur when the solvent is beingtransferred from tank trucks to tanks.
Toppan is now installing pollution-preventive devices and preparing oil fences,
sandbags, and other measures to preventthe outflow of solvents in the event ofleaks or similar accidents at sites susceptible to environment impact.
Periodic drills are carried out to prepare
the workforce for emergency action. The
procedural manuals are also regularly
evaluated and updated to ensure that theyremain effective for actual emergencies.

Leakage monitoring well at base of solvent tank57

Environmental Report

Eco-protection Activities
The efforts at Toppan to reduce the environmental burden of business activities are called Eco-protection
Activities. At every logistics department, every plant, and every office, the people of Toppan aspire
to conserve the global environment and foster a recycling-oriented society.

Green Procurement of raw materials

Overview of Eco-protection
Activities

IProduction plants

Resourcesaving

Waste
management

Pollution
prevention

Managementof chemical
substances

ILogistics department

IOffices

Protective Improvement of Measures
Recycling,energy-saving, measures for distribution
adopted insystems
offices andetc.
operations
equipment

Measuresadopted in
facilities■ Activities of the Eco-protection Promotion Committee

National Eco-protection
Meeting (semiannually)

Management

Data collection and reporting

Ecology Center

Company-wide
environmental
targets

Reporting
Conveying
information

Guidance andsupportReporting

Eco-protection
Promotion Committee
Specific
targets at
production
plants

Revision oftargets if
necessary

Analysis ofmeasures

Verification of environmental activities in regular Eco-protection
Promotion Meetings
Items subject to verification
1. Reporting of activity achievements and measures taken for
Eco-protection issues
2. Information on environmental concerns outside the company
3. Progress of the Eco-protection Activity Plan (Environmental
Management Program)
4. In-house nonconformities and irregularities in environmental
conservation
5. Reporting on other environment-related information
6. Reporting on the environmental management system
7. Other issues specific to production plants, such as ecologicalconservation of the premises and/or the surrounding areas

Issues requiring modification

58

Ecoprotection
Achievement
Report(annually)

Recording ofactivity status

Improvement of environmental performance

Energy-saving

Green Purchasing of office supplies

To reduce the environmental burden
generated by production activities,
every Toppan production plant has
set up its own Eco-protection Promotion Committee in conformity withthe company’s Eco-protection Committee Operational Policies to reduce
the environmental burden at the site
level.
Every office at Toppan conducts
Green Purchasing and active Office
Eco-protection measures focused onrecycling and energy-saving. Many
office sites have also introduced systems to effectively use rainwater.
Toppan Logistics Co., Ltd., the logistics specialist in the Group, promotes
eco-driving by encouraging the introduction of low-emission vehicles andother environmentally-friendly practices in the transportation operationsof the Group.

Environmental Report
Eco-protection Activities

Energy-saving and Prevention of Global Warming
Toppan’s use of energy and emissions of CO2 both increased in fiscal 2003. Fortunately, however,improvements in Toppan’s energy management system during the year are certain to strengthen
the company’s ability to implement energy-saving policies and analyze the causes of fluctuations
in energy usage. Efforts to advance Toppan’s reform activities and build up the foundations of
its management system will continue.

Energy-saving Activities
Basic policy on energy-saving activities
Toppan is constantly striving toward
more effective ways to use energy in aneffort to reduce greenhouse gas emissions, including CO2 (carbon dioxide)
emissions. Toppan has established the following medium- and long-term environmental targets:
IBy fiscal 2010, Toppan seeks to increase
its environmental burden improvement
index (sales/CO2 emissions) by 20% relative to the level in fiscal 2000.
This targeted reduction is tied to Japan’s
target for reduced CO2 emissions under
the Kyoto Protocol. The company also set
targets for each fiscal year based on themedium- and long-term targets. To meet
Toppan’s overall targets for the year,
every production facility sets individual
targets per basic unit of production value
and per basic unit of production volume.
In fiscal 2003, Toppan reviewed its management system for the rationalization ofenergy use. As first steps to reinforce
its rationalization efforts, the company
has overhauled its Energy Management
Policy, appointed personnel to handle
energy management at each production
plant, and scheduled regular meetingsof the Energy Subcommittee, a newly
formed committee overseeing the Energy-saving Activities. Equipment management
activities are also being reviewed at eachproduction plant to ensure compliancewith the Energy-saving Law. Part of thiseffort includes the Energy-saving Review,a specialized review to identify and correct
any problems.
Environmental management at Toppan
is implemented through ISO protocols
and measures to cut costs and renderother improvements through total productivity maintenance (TPM). In the sameway, Toppan’s energy-saving activities
will be implemented through the application of the PDCA cycle by the Energy
Subcommittee for continual reform.
Fiscal 2003 achievements
Toppan set the following targets for energy
consumption and CO2 emissions in fiscal
2003:
IBasic unit of sales to energy consumption:
Maintain the fiscal 2000 level
ICO2 emissions:
Maintain the fiscal 2000 level
Actual results for the year fell short oftargets:
IBasic unit of sales to energy consumption: 14.9% increase compared to thelevel in fiscal 2000
ICO2 emissions: 6.5% increase compared to the level in fiscal 2000
Difficult business conditions limited thegrowth of sales for Toppan in fiscal 2003.
The company responded by opening newplants to provide new products and services. The inputs consumed and outputs
generated in the construction of theseplants heavily impacted the company’s■ Energy Consumption
16,000

Energy-saving inspection at site

14,00013,921

14,152

14,607

Approach to reducing greenhousegas emissions
The Kyoto Mechanisms are a set of threemechanisms designed to help countries
meet their greenhouse gas reduction targets under the Kyoto Protocol: joint
implementation, clean development, andemissions trading.
Toppan embarked on the use of the
Kyoto Mechanisms by participating in agovernment trial project on the trading ofgreenhouse gas emissions between fiscal
2003 and 2004. Toppan has studied andexchanged opinions on the project incooperation with the Ministry of theEnvironment and other participating companies with a view towards eventual
implementation. The trading of greenhouse gas emissions will allow trading
between companies that have failed tomeet their targets and companies thathave reduced their emissions beyond
their targets.
Judging from the outlook on nationalenergy policies, Japan cannot be sureof achieving the Kyoto Protocol targets.
From fiscal 2004, Toppan will introduce
various measures to reduce greenhousegas emissions.

■ CO2 Emissions(1,000 GJ)

18,000environmental results for the year. Midway
through the year, however, the completion of plant construction substantiallyreduced the environmental burden, andin the last six months of fiscal 2003,
Toppan improved its index and cleared
the fiscal 2000 level.

15,090(1,000 t-CO2)

800
700

641

652

669

2000

2001

2002

683

600

12,000500

10,000
400
8,000
300

6,000
4,000

200

2,000

100

0

2000

2001

2002

2003
(fiscal year)

Energy-saving review

02003(fiscal year)

Note: Excluding certain overseas subsidiaries and independent subsidiaries. For calculating energy consumption and CO2
emissions, the company referred to the Ministry of the Environment’s Guidelines for Greenhouse Gas Emissions
Calculations from Businesses.

59

Managing Waste
Through its skillful management of waste materials, Toppan has reduced its final landfill waste disposal
amount by 25.4% compared to the previous fiscal year and increased the number of zero-emission sites
to 17. Toppan will continue to actively promote the reuse of waste as a recycled resource.

Development of Zero-emissions
TargetWaste Reduction Activity
Waste paper, a waste product derived
primarily from Toppan’s Information &Networks and Living Environment fields,comprises 66.1% of the total waste discharged from Toppan’s operational sites.
Waste acids (such as waste etchantfrom plants in the Electronics field) andwaste plastics (from plants in the Living
Environment field) also make up substantial portions of the total waste discharge.
As an incentive for improved waste
management performance, the company
has set a target to reduce its final landfill
disposal (direct landfill disposal amount +landfill disposal amount of residues fromintermediate treatment) by 90% in fiscal
2010, relative to the level in fiscal 2000.
In fiscal 2003, company-wide efforts tothoroughly sort and recycle wastes led toa 25.4% reduction in final landfill disposal relative to the fiscal 2002 level. This
far surpassed the 10% reduction targeted for the year.

Reuse of Waste as Recycled
Resources

In a move to standardize its approach towaste reduction, Toppan launched activities to achieve zero-emission targets at anumber of plants selected as “zero-emission models” in 1999. Based on the results
achieved at these model plants, Toppan
began certifying “zero-emission plants”
in November 2001.
Toppan encountered obstacles in achieving its zero-emission targets when external factors beyond the company’s control
began dictating the regeneration-andreuse rate (recycling rate). As a solution,
Toppan reviewed its certification criteria
and redefined zero-emission plants asplants with a regeneration-and-reuse rateof 98% or more. The Ecology Center inthe head office certified 17 sites on thebasis of these new criteria at the Toppan
National Eco-protection Meeting held in
November 2003.

Two important tasks in the work towards
zero-emission efforts are to use wastes
more effectively in-house and to develop
recycling through external communication. Toppan is committed to reusing thewaste from each process throughout thecompany.
In fiscal 2003, Toppan reused 7,086
tons of waste solvent and harnessed theheat from the incineration of 13,660 tonsof waste collected in-house. The company consigns the recycling of acids tothird parties and distributes the recycled
acid to suppliers. In fiscal 2003, 7,775
tons of acid was recycled and put backinto circulation.

■ Waste Disposal Flow
Sorting andintermediate processing

Total waste generation

Sorted waste collection areas at Toppan
Electronics Fuji Co., Ltd.

Heat
recovery

Recycled(97.1%)

Heat
releaseRegeneration(78.5%)

Incinerated
on site■ Total Waste Discharge and Final
Landfill Waste/Recycling Rate
Cinders
Total waste discharge
Final landfill waste
Recycling rate (recycling amount/total waste discharge)(1,000 tons)

500

92.9

95.1

96.0

400
337.2 344.7

350.1

97.1

355.0

(%)

100
80

300

60

200

40
20

100
0

24.0

16.8

14.0

2000

2001

2002

10.5
0
2003
(fiscal year)

Note: Past data have been adjusted based on a revision of
the scope of coverage.

60

Wastepaper, plastics, etc.
Total amount ofwaste discharge
OthersGlass chips
Wooden chips
Cinders
Metal chips
Waste alkali
SludgeWaste oil
Waste acid
Waste plastic
Wastepaper

0.3%
0.3%
0.6%
0.8%
1.4%
2.3%
2.7%
5.7%
6.4%
13.4%
66.1%

Heat
recoveryand others(18.6%)

Waste acid, waste alkali,
metal chips, etc.
Heat release

Cinders, sludge, etc.
Landfill(2.9%)
Waste plastics,
metal chips, etc.

(% by weight ratio)

Environmental Report
Eco-protection Activities

Pollution Prevention and Chemical Substance Management

Toppan is working to reduce its burden on the environment and prevent pollution by complying with legal
regulations and establishing more stringent control standards of its own. Based on the PRTR Law, Toppan is
actively promoting the management of chemical substances.

Pollution Prevention Activities
Toppan is now developing activities toprevent pollution and minimize the environmental burden of its production activities. Through these efforts, the company
will acquire an accurate picture of theactual state of the various environmental
burdens at each operational site. The
company is working actively to reduce its
burden on the environment and prevent
pollution by complying with in-house
control standards (established by the Ecoprotection Promotion Committee for each
operational site) even more stringent thanthe legal regulations.
Preventing atmospheric pollution andprotecting the ozone layer
To prevent atmospheric pollution, Toppan
controls smoke-producing facilities suchas boilers and incinerators by switchingfuels and managing operations underappropriate combustion conditions. At
the same time, the company has introduced waste gas processing equipment
for the thorough control of atmosphericpollution prevention.
Substantial progress has been achievedin ozone protection. In March 1994,
Toppan abolished the use of specific
CFCs (chlorofluorocarbons) and 1,1,1trichloroethane, two ozone-depleting substances mainly used in cleaning processes.
Toppan regularly updates and replaces
the remaining refrigerating machines thatstill use CFCs throughout the company(two units abolished in fiscal 2003, 15
units currently in use). Another solid
achievement in ozone-protection for fiscal 2003 was a 28% reduction in theemissions of HCFCs (hydrochlorofluorocarbons), a family of CFC-substitutes usedin cleaning processes.

Preventing water pollution
Toppan reduces water pollution at its
plants by installing wastewater treatment
facilities designed to ameliorate the environmental burden imposed by specificproduction processes.
In December 2003, the company introduced a fully closed wastewater treatment
system at a plant newly commissioned tofabricate color filters in Mie Prefecture(Seki Town, Suzuka County). The system
recycles 2,500 m3 of wastewater per day,reducing the overall amount of wastewater discharged and ensuring the efficient use of water resources. The Mieplant also operates monitoring devices
24-hours a day to ensure that BOD (biological oxygen demand) and COD (chemical oxygen demand) levels never rise
above the acceptable ceilings establishedby the company and the local municipality. The daily pollution levels of COD,
nitrogen, and phosphorous are reported
to Seki Town once a month.

Achievements in fiscal 2003
The atmospheric emissions of 11 of the 21
specified chemical substances monitoredby the company in fiscal 2003 declined
from their levels the year before. Emissionsof toluene and dichloromethane, twosubstances subject to environmental targets, plunged by 38% and 23%, respectively. Emissions of seven of the substancesdischarged into waterways were reduced.
Three of them were almost completely
eliminated.
Toppan will continue its planning forongoing reductions in the use and emission of the chemical substances specified
by the PRTR.

■ Toluene Emission into
the atmosphere(tons)

8,000
6,676
6,000

5,349
5,763

4,000

Wastewater recycling facilities at Mie plant

Preventing soil pollution
Toppan’s principal safety concern in managing its chemical solution storage tanks
is to prevent the leakage of fluids. Walls
have been constructed around the storage
tanks, and workers regularly inspect thetanks and piping to detect cracks andother flaws before soil pollution can occur.

3,296

2,000

0

2000 2001 2002 2003 2004 2005
(fiscal year)

Note: Covers operational sites that handle at least 1.0 ton
annually.

■ Dichloromethane Emission into
the atmosphere(tons)

60
50

49.9

Managing Chemical Substances
40

Waste gas combustion facility at Sendai plant

Toppan has managed its chemical substances in conformity with the PRTR Law
since the law went into force in July
2000. Management systematically studies
the status of chemical usage and explores
the feasibility of introducing alternatives
to improve compliance with environmental targets.

30
20

32.3
25.6
19.8

10
0

2000 2001 2002 2003 2004 2005
(fiscal year)

Note: Covers all sites with data on handling.

61

Office Eco-protection Activities
As the name suggests, the “Office Eco-protection Activities” are the recycling, energy-saving, and resourcesaving measures undertaken at Toppan’s offices. Office Eco-protection starts with environmental awarenessamong office people. Toppan offices have also been practicing Green Procurement since fiscal 2002.

Office Eco-protection

Green Purchasing

The amount of scrap paper recycled at
offices increased in fiscal 2003, but therecycling rate actually declined to 56.0%,
reverting back to pre-fiscal 2002 levels.
This sharp drop was mainly due to a major
restructuring operation that required theincineration of many tons of documents
to protect confidential information.

Green Procurement

If Toppan is to contribute meaningfully tothe achievement of a recycling-oriented
society, the company believes that as apurchaser it must place priority on environmentally-friendly products. Management established its Basic Policy on Green
Purchasing in January 1999 and promptly
initiated Green Purchasing throughout thecorporation. Under the Green Purchasing
policy, Toppan continually selects andpurchases products that meet its in-house
Green Purchasing standards, especially inthe designated product categories ofoffice paper, copiers and printers, personal computers, stationery, office supplies, and toilet paper.

Since April 2002, the Toppan Group has
introduced a Green Procurement systemthat conforms to the Green Standard forOffset Printing Services established by theJapan Federation of Printing Industries.
The compliance rate for paper used by
the company rose from 18.3% in fiscal
2002 to 22.7% in fiscal 2003, fallingslightly short of target. Toppan aims for a
5-point increase in fiscal 2004 throughcontinued promotion of these activities.
The compliance rate for ink was 94.2% in
fiscal 2003, and the company intends tomaintain this high rate.

■ In-house Green Purchasing Standards and Achievements
Paper sorting station in Hiroshima Sales Building

Designatedproducts

Fiscal 2002

Fiscal 2003

98.6%

98.3%

Copiers and Must have an automatic sleep or shutdown function after
printers
remaining idle for a specified period.

97.9%

90.8%

Personalcomputers

Must have a fully incorporated automatic sleep or shutdown
function after remaining idle for a specified period, withlimited electricity consumption in sleep mode.

100.0%

100.0%

Toilet paper

Must be made of 100% recycled paper, with a white-sheenof 80% or less.

100.0%

100.0%

Stationery
and officesupplies

Must bear an appropriate certification (Eco-Mark, Green Mark,etc.) or classification as an environmentally-friendly product inthe manufacturer’s catalog.

86.6%

92.6%

Officepaper■ Waste Paper Recycling Ratein Office Buildings
(%)

100

80

69.4
61.9

67.0
56.0

60

Paper

20

2000

2001

2002

2003
(fiscal year)■ Utilization of Rainwater
10,000

Honjo GC Building
Toppan Koishikawa 9,391
Building

8,000

7,701

8,716

2,754

3,223

3,704

2,000

0

2000

2001

Level 2

Remarks

Must be made of
100% recycled paper

Must be made of atleast 70% recycledpaper

Tree-free paper and paper
made from tree-thinnings
are included in the calculated
percentage of recycled paper

2. Consideration ofwhite-sheen

Must be approximately
70% or less(up to + 4%)

Must be approximately
80% or less(up to + 4%)

Excluding high quality coloredpaper and special paper

3. Consideration of
coating

Must be 12 g/m2 orless (8 g/m2 max. forone side)Must be 30 g/m2 orless (17 g/m2 max.
for one side)

Offset printing ink*
Level 1

4,651
3,258

Level 1
1. Use of recycled
paper

(m3)

6,000

4,000

Must be made of 70% or more recycled paper, with a whitesheen of 80% or less.

■ Toppan’s Green Procurement Standard

40

0

2002

2003
(fiscal year)

Level 2

1. Non-use of
substances harmful
to human bodyMust conform to the NL (Negative List) designated by
the Japan Printing Ink Manufacturers’ Association

2. Non-use ofchlorinated resin

Must not include chlorinated resin

3. Consideration of
PRTR-designatedsubstances

Consideration of PRTRdesignated substancesMust identify the PRTRdesignated substances used
(MSDS to be prepared)

4. Limitation of VOC(Volatile Organic
Compound)emission

The proportion of petroleum
solvent is 15% or less(except for rotary press ink)

Must be aroma-free ink,
soy ink, or recycled vegetableoil ink*Note: Excluding gold, silver and pearl inks.

62

Rate achieved

Purchase standards

Remarks

Environmental Report
Eco-protection Activities

Efforts in Logistics

Toppan Logistics Co., Ltd. handles the distribution and logistics of the Toppan Group. The main environmental
challenge in logistics is to reduce the environmental burden caused by transportation. Among other activities,
this Group is actively introducing low-emission vehicles, eco-driving, and management systems.

Issues and Efforts inDistribution Departments
The logistics departments of the Toppan
Group are undertaking and developing
various activities to reduce atmosphericpollutants, including CO2, NOx, and PM
emitted from company trucks.
Utilizing the environmental
management system
The efforts by Toppan Logistics Co., Ltd.
to reduce atmospheric pollutants andprotect the environment center on theoperation of its environmental management system.
The Kawaguchi site earned ISO 14001
certification in October 2002 and the
Nishigaoka area is preparing to obtain
this certification in fiscal 2005. The transportation departments obtained the GreenManagement certification from the EcoMo
Foundation in October 2004.
CO2 reduction results
The Toppan Group continuously operates
its Environmentally Balanced Logistics
Management system in order to further
reduce CO2 reduction.
As an initial goal for fiscal 2010, theGroup targets a 10% reduction of CO2
by unit energy consumption compared to
the fiscal 2002 level. Consumption in fiscal 2003 dropped by 4% year on year. As
specific measures to cut CO2 emissions,
the Group is reducing the number of vehicles, shortening transport distances, andadopting alternative transport energies.
Consolidated shipments of different
types of goods from multiple production
plants in a certain area have markedly
reduced the number of vehicles used. The
Group is also shortening transport distances by running daily transport simulations to determine the most efficientroutes.

Improving fuel efficiency
The Toppan Group targets a 20% improvement in fuel efficiency over the fiscal
2001 level. An improvement of 13.3%
was obtained in fiscal 2003.
Eco-drive activities remain the focus of
the Group’s efforts in fiscal 2004. The
Group is now building on its success with
its own vehicles by promoting lateral ecodrive activities at 10 cooperating transport companies. Each of these companies
will set its own targets and use its own
methods for management. From fiscal
2005, the program will be adopting standardized methodologies and gradually
expanded to other transport companies.
■ Measures for Improving Fuel Efficiency
1. Hold eco-drive seminars (semiannually)
2. Hold training sessions (semiannually)
Trainees drive the test course before andafter training by a professional driver. Uponcompletion of the second driving trial, they
compare data on their driving performance
before and after the training to learn how
they improved (Effect Realization Training)
3. Driving monitoring (daily)
The actual driving techniques being used aredetermined from tachograph analysis of
idling stops, sudden braking, sudden acceleration, etc.
4. Feedback on problem areas (as needed)
Instructors meet with drivers and coach themon the techniques they need to improve
5. Disclosure of achievements (monthly)
Improvements in fuel efficiency are posted
monthly for individual drivers (Achievement
Confirmation)
6. Roll-call chart (daily)

Eco-drive seminar

Eco-drive road training

Introducing low-emission vehicles
Vehicles owned by Toppan Logistics Co.,
Ltd. are being converted to low-emission
vehicles (adapted to the standards ofeight municipalities surrounding Tokyo)
throughout the company. The introduction rate in fiscal 2003 was 100%, including CNG (compressed natural gas) vehicles.

Low-emission vehicle■ Fuel Efficiency
4.0(km/R)

3.91
3.9

3.84

3.8
3.7
3.6
3.5

3.42 3.42

3.50

3.4
3.3

3.39

3.2
3.1

2001 2001 2002 2002 2003 2003
first second first second first second
half half half half half half
(fiscal year)

CNG vehicle mark

Waste reduction
The main types of waste generated in thelogistics departments are wastes used in
the transport of goods and office-related
scrap paper. The Kawaguchi site hasachieved 100% recycling of its waste andis making headway towards its goal of
converting most of its waste into commodities. In fiscal 2003, the amount ofwaste converted into commodities roseby 75.7% over the fiscal 2002 level.

63

Environmental Report

Eco-creativity Activities
Toppan’s “Eco-creativity Activities” are an array of environmental businesses that provide environmentallyfriendly products, technologies, and services. The product life cycle from production to disposal is classified
into 14 steps, each with its own environmentally-friendly features.

Overview of Eco-creativity
Activities
IDevelopment of environmentallyfriendly products•Product assessment•LCA (Life Cycle Assessment)•Environmental Labeling Type II

The Environmental Business (Eco-business) at Toppan is designed to help
create a recycling-oriented society
through the supply of environmentally-friendly products, technologies,
and services based on environmentally-friendly business activities conducted by the company globally. Eachdivision actively promotes this business by undertaking what Toppan
calls Eco-creativity Activities.
Eco-creativity Activities are broadly
categorized into two different areas.
The first covers research and development of environmentally-friendly products. Product developers begin by
preparing Evaluation Standards (guidelines) that take full account of productlifecycles. The second area encompasses
environmental support businesses tosupport environmental initiatives incollaboration with customers, NPOs,
and other organizations.

IPromotion of environmentallyfriendly printing services•GPN’s Order Guidelines for Offset
Printing Services•JFPI’s Green Standard for Offset
Printing Services•Environmentally-friendly ink,
waterless printing methods

ISupport for environmental
businesses•Organization of environmentrelated events•ecollable Net•Support for the preparation ofenvironmental reports

Support forenvironmental
activities of customers
through the supply ofenvironmentallyfriendly products
and services

IEfforts to build up a recyclingoriented society•Waste paper recycling system•Packaging material recycling
system■ Environmentally-friendly Product Management Flow
Division
Planning and development ofenvironmentally-friendly products

Evaluation
Standards(guidelines)

Evaluation ofenvironmentally-friendly products

Labeling
Resource-saving(reduced use of materials)

Application for registration asenvironmentally-friendly products

Use of raw materials is reduced, andthe packing material is incorporated in
the display. Recyclable as cardboard.

Application
for
Registration

Pamphlet

Ecology Center

PamphletVerification of the division’s evaluation
Manufacture of
the products
Registration ofenvironmentally-friendly products
Database entry ofregistration data

Approval of the Toppan Label for
Environmentally-friendly Products
Environmentally-friendly products (Type-II label)

64

Approval of the
Toppan Label for
Environmentallyfriendly Products

Product sample

Environmental Report
Eco-creativity Activities

Development of Environmentally-friendly Products
Toppan has established an original set of evaluation standards based on the concepts of the ISO 14021
self-declaration labeling system for planning and development. The products developed on the basis ofthese standards have been highly praised in the market.

Toppan’s Basic Thinking on
Environmentally-friendly Products

Toppan’s 14
Life
ISO 14021
Environmental Claims
Toppan’s Standards
Cycle Environmental
for its EnvironmentallyStage Labeling Type II
friendly Products
1. Use of safe materials The company will not use substances banned byindustry organizations or substances that may resultin the contamination of any of the materials used in
the company’s products with environmental hormones.
Production and distribution

Recycling rate

2. Use of recycledmaterials

Toppan will not produce products from recycled materials
that do or may contain environmental hormones orsubstances banned by industry organizations.

Resource
reduction

3. Resource-saving

The consumption of resources is reduced during
the materials production and logistics processes.

4. Reduced energy
consumption in
production (newly
set from fiscal 2004)

The consumption of energy and water is reduced
during the production and logistics processes.

Recoveredenergy5. Use of recovered
energyProducts are manufactured with surplus energy orenergy recovered from waste materials.

Reduced solid
waste

6. Reduced solid waste

The generation of solid waste is reduced throughmodifications of the production process, productdesign, and packaging. (By-products reused inprocesses are not included in this category.)

Energy-saving

7. Energy-saving

Energy consumption is reduced during product operation.

8. Reduced release ofchemical substances

The products release the lowest possible levels ofchemical substances.

Long-life
products

9. Long product life

Product lifetimes are extended by improving durability
and adopting scalable designs.

Reusable/
Refillable

10. Reusability

The products can be reused or refilled for their originalor related purposes. Systems and infrastructures areprovided for collection and reuse.

Recyclable

11. Recyclability

Systems and facilities are provided for product recycling.
Recyclable parts are indicated as such.

12. Suitability fordisposal

The materials used discharge the lowest possible levelsof harmful gas during incineration. Landfill waste is
carefully treated to prevent all forms of soil pollution.

Easy
detachment
design13. Easy separation anddisassembly

Product designs enable easy separation anddisassembly. The parts and materials used support
product recycling.

Separability

14. Biodegradability

The biodegradable or photodegradable materials
contained in the products break down naturally andare assimilated back into the environment.

Use
After use

14 Environmental Claims for planningand development
Toppan plans and develops its environmentally-friendly products in accordancewith the environmentally-friendly productmanagement flow described on P. 64.
The design and development procedures conform with a set of 14 Environmental Claims in the Evaluation Standards(guidelines) developed independently by
Toppan based on ISO 14021 standards.
Each division carries out its own evaluation, and the Ecology Center performs a
final inspection to ascertain whether thedeveloped products meet all the criteria
for registration as environmentally-friendly
products. Only products that pass the
final inspection can be registered as environmentally-friendly products.
In addition to adding environmental
labels to clarify the features of its environmentally-friendly products, Toppan has
publicly disclosed its 14 Environmental
Claims to ensure accountability. Seventy
environmentally-friendly products wereregistered as of the end of March 2004.

■ Toppan’s 14 Environmental Claims and Environmental Features

Recycled
materials

Recycled vegetable-oil ink

Rewritable paper and printerResource-saving

Eco Pack Stand (round type)Long-lifeSafematerials

PURE ALL (kitchen cabinets)

Suitability for disposal

Low-halogen printed wiring board

Suitability
for disposal

Resource-saving

Double-wall barrier cups

65

Evaluation of Environmentally-friendly Products
Toppan’s environmentally-friendly products are evaluated quantitatively by life cycle assessment (LCA)
in accordance with ISO 14040 standards.

Toppan’s LCA Activities
Quantitative evaluation based on
ISO 14040
Every good company takes steps tounderstand the impact of its products on
the global environment. Toppan does soquantitatively by performing environmental evaluations utilizing LCA in compliance with ISO 14040.
Toppan performed two major LCAs in
fiscal 2003. The first was performed to
calculate the waste processing burden in
the life cycles of Ecofoil products, a familyof interior housing materials in the Living
Environment field. The second was performed in the Electronics field to quantify
the CO2 emissions throughout the life
cycles of the color filters used in LCD displays. No LCAs have yet been completed
in the Information & Networks field, but
the process is continuing and the company is preparing to expand the assessments to other products.

Quantitative evaluation using LIME
Toppan is now researching a method toquantitatively evaluate the environmental
impact of its products using the Japaneseversion of LIME (Life-cycle Impact assessment Method based on Endpoint modeling) developed under the national LCA
project. Though LIME is still less familiar
than LCA, it makes the environmental
burden easier to grasp by expressing it asa pecuniary sum (yen).
In fiscal 2003, Toppan used LIME to
calculate the environmental impacts ofvinyl chloride sheets and non-vinyl chloride sheets (Toppan Ecofoil ) for housing
interiors. The calculations covered two
different methods of disposal: landfill
waste disposal and incineration. In bothcases, Ecofoil was confirmed to have alighter impact on the environment thanthe conventional vinyl chloride sheets.
The calculations also revealed that theincineration of the vinyl chloride sheets
has an extremely high impact on the environment.
Toppan has been conducting LIME forother environmentally-friendly products,
as well.
■ Comparison of Disposal Methods
Using LIME■ LCA Standards Sheet

20,000Establishing purpose
and scope

16,000(yen/1,000 m)
Disposal
Waste product transport 18,494
Use
Product transport
Assembly
Material production

Product Assessment
Control and evaluation ofenvironmental impact
Toppan had developed its own method
to evaluate the environmental burden of
its catalogs and POP displays qualitatively
using radar charts.
Material
Recycling/
disposition

Use

1.00
0.80
0.60
0.40
0.20
0.00

Evaluation
Conventional
type
Theoreticalmaximum
Manufacturing
process

Distribution

Efforts by Toppan Group
Companies
Products based on original standards
Toppan Group companies are also working to achieve a sustainable society
through productive activities that conserve the global environment. Each Group
company is committed to the development of environmentally-friendly products based on original standards in its
field of operation.
Suitability fordisposal

12,000Analyzing inventory

Interpreting
results

8,000

4,000

Evaluating impact

0

2,442

2,610

2,900

Ecofoil
EcofoilVinyl
Vinyl
landfill incineration chloride chloride
landfill incineration

Easily detachable label from Toppan Label Co., Ltd.

Recycled
materials

LCA data and report

66

Toppan Ecofoil (door material)

Nursery Woody Chair from Froebel-Kan Co., Ltd.

Environmental Report
Eco-creativity Activities

Promoting Environmentally-friendly Printing Services
Toppan provides its environmentally-friendly printing services to respond to the demands of society.
Every process is approached from an environmentally-friendly stance, from the initial design andselection of environmental inks and papers to the latter stages of printing, binding, and processing.

Introducing GPN’s Order
Guidelines for Offset Printing
Services
Environmentally-friendly from paper
to production
As a member of the Green Purchasing
Network (GPN), Toppan minimizes theenvironmental impact of printing andprovides printing services based on the
Guidelines for Ordering Offset Printing
Services. The company applies environmentally-friendly technologies at every
step in the process, from the selection ofdesignated inks and papers to surface
processing, binding, and packaging.
Many local governments and companies
involved in green purchasing activities
have adopted these services.

■ Green Purchasing Network (GPN)A nationwide network founded in 1996 topromote Green Purchasing. As of July 1, 2004,
membership totaled 2,803 organizations,
including 2,184 companies, 356 administrative organizations, and 263 private organizations. The network announced its Order
Guidelines for Offset Printing Services (GPNGL14) in December 2001.

Examples of Cutting-edge
Environmentally-friendlyPrinting Services
Design and plate-making
Toppan’s “Perfect Digital Process” employs
the most sophisticated plate-making andprinting techniques in the industry. This
relatively new technology takes conventional DTP (desktop publishing) to thenext level in terms of saving resources
and labor.
Toppan’s Advanced Technology
IColor Management System (CMS): A computer-based color management technology
for printing
IDigital photography technology: A photographic technology that requires no film
IDDCP (Direct Digital Color Proof): A color
proof technology that generates far less film
at the plate-making stage
ICTP (Computer to Plate): A plate technologythat sends digital data directly to the printing plate

Using environmentally-friendly inks
Toppan has developed a soybean oil ink
that contains virtually no aromatics, aclass of organic compound thought to beharmful to both life and the atmosphere.
The company has also commercialized arecycled vegetable oil ink made from usedsoybean oil collected from school cafeterias, restaurants and other such sources.

Toppan’s environmentally-friendly
paper
Printing paper is a commodity made fromforest resources. Three types of printing
paper in use today help conserve forest
resources: recycled paper, tree-free paper,and paper made from tree-thinnings.
Waterless printing system
In lieu of water, the waterless printing
system uses a silicone layer that repels
ink. This eliminates the need for dampening water containing
IPA (isopropyl alcohol),an organic solvent, andthe resulting dischargeof liquid waste.
Environmental-friendly bookbinding
and finishing processes
Fragmentation-resistant hot-melt is anadhesive suitable for use on paper to berecycled. Besides offering strong cohesion, it can be completely removed fromprinted materials without fragmenting
during recycling. Toppan has also developed Eco-binding and other bookbinding
and manufacturing processes that confer
outstanding recyclability to bound printed
materials by eliminating the use of stitching (wire).

■ Environmental Considerations in Producing this Report
Toppan actively applies various environmentally-friendly technologies andmethods in the printing of the Toppan
CSR Report. The printing of this year’s
main section on 100% recycled paper
markedly expanded Toppan’s experience in collecting used paper fromthe market. The Data Report is madeexclusively from paper made from
10% tree-thinnings and 90% recycled
paper collected from the market. The
use of paper made from tree-thinnings nurtures the forests of Japan.

■ Environmental Considerations in the Toppan CSR Report 2004
Process

Specific measures

Environmental consideration

Photography

Use of digital photography wheneverpossible

Elimination of filming anddevelopment processes(photographs used in data form)

Design andediting

Digital processes by DTP

Reduction of mid-process materials

Plate-making

Plate-making by CTP

Elimination of films for plate-making

Printing

Sheet-fed press waterless printing

Reduction of IPA use
Elimination of waste fluids

Paper

Cover:

70% recycled paper, 30% nonchlorine bleached pulp paper
Main section: 100% recycled paper
Data Report: Printing paper made 10%tree thinnings and 90%
recycled paper

Forest resource-saving andencouragement of forest nurturing

Ink

Recycled vegetable oil ink made for waterlessprinting

Resource-saving, use of recycledmaterials

Bookbinding
and finishing

Fragmentation-resistant Hot-Melt (EVA-base)

Improved recycling efficiency

67

Environmental Support Business
The Eco-Workshop, the ecollable Net, and Toppan’s services to support the preparation of CSR andenvironmental reports provide rich solutions for customers seeking to expand their own environment
activities. Toppan bases its customer solutions on its extensive experience in communicating withcustomers over the years.

Support in Preparing CSR/
Environmental Reports

Eco-Workshop
In Toppan’s unique Eco-Workshops forchildren, 12 artists renowned for their use
of natural and recycled materials teachlessons on nature and the environment
through craft-making each year. At EcoProducts 2003, visitors learned how tocreate Christmas ornaments from scrap
poster paper at the Toppan Booth (instructor: Eriko Teranishi).
In the Eco-Workshops held so far in
shopping centers and event halls, participants have learned how to create stone
art paintings, “objet” art from driftwood,and sculptures using recyclable milk cartons. The workshops are popular amongwhole families as enjoyable “eco events.”

Making Christmas
ornaments

In the late 1990s, the environmental
report emerged as an important communication tool to promote dialog on theenvironment between companies andstakeholders. The number of companies
publishing such reports has since beensteadily growing. From around 2003,
many companies began replacing theirenvironmental reports with reports on
Corporate Social Responsibility (CSR),
expanding the scope of coverage fromthe environment to social and economic
issues. This evolution stems naturally
from the globalization of business andthe emergence of economic, social, andenvironmental issues that require new
relationships among companies andstakeholders, including all entities in the
supply chain.
Toppan has built up a wealth of experience in five years of running its environmental-report support business. Recent
research on CSR trends and guidelines
has been especially useful to Toppan in its
work to assist companies creating theirown CSR reports.

ecollable Net
Toppan’s ecollable Net is a networkbased environmental monitoring systemdesigned to bridge the gaps separating
businesses, administrative departments,
and Green Consumers (consumers whotake an interest in environmental activities) by soliciting the latter to respond topolls on the web. The ecollable Net wasdeveloped in collaboration with Chubu
Recycle, an environmental NPO that continues to work with Toppan in the operation of the network.
The support and approval from Green
Consumers help Toppan achieve balanced
growth in its environmental activities.

ecollable Net website
http://ecollable.eal.or.jp/ (in Japanese)■ Spreading the Circle! FSC-certified Products
Toppan’s Commercial Printing Division
was awarded the Chain of Custody(CoC) certification by the Forest Stewardship Council (FSC), an international
environmental NGO, in May 2002. This
was the first such authorization awardedin the printing business sector in Japan.
The Commercial Printing Division was
also awarded the FSC certification inwooden processing in February 2003.
With this certification, Toppan is authorized to affix the FSC logo on bothprinted matter (paper) and a variety of
products made entirely of wood, including POP displays, display stands, andnovelty items. More and more companies are adopting FSC-certified paper for
their corporate communications tools,
especially environmental reports.

68

Among processed wood products,
Toppan has completed testing of display
stands for exhibition booths and established a system for taking orders from
customers.
Toppan will be widening this circleof FSC-certified products once its sales
activities are fully underway.

*FSC Forest Certification System
A certification system for well-managed forests
based on the 10 principles and standards of forestry
management set down by the Forest StewardshipCouncil. Wood processing and wood manufacturing
sites have also adopted systems to separately manage wood materials from FSC-certified forests andindicate the amounts of FSC-certified materials contained in their final products. This FSC CoC (Chainof Custody) certification gives assurance that FSCcertified products are made at well-managed manufacturing sites. The age of forest “traceability” hasfinally arrived.

FSC-certified display standEnvironmental Report
Eco-creativity Activities

Efforts to Create a Recycling-oriented Society
Toppan is fully aware of the importance of taking the initiative in reducing, reusing, and recycling
to achieve a sustainable society, and undertakes a host of activities in these areas.

Establishment of a Printed
Material Recycling System

Cartocan Recycling
In-house paper recycling
Toppan understands the importance of
reducing waste by converting used products into materials for new products. The
Packaging Division developed a recycling
system to manufacture toilet paper fromused Cartocans in January of 2002. The
company engages in production and filling operations for Cartocan, one of its
main packaging products.
The Cartocan recycling system salvages
the paper from unwashed Cartocans andre-commercializes the recycled material.
ECO-GREEN, an environmentally-friendly
toilet paper, is made from about 50%
used Cartocans. Toppan purchased 1,473
cases (60 rolls a case) of ECO-GREEN in
fiscal 2003, making it the nation’s largest
user of the product.

Recycling printed materials into
original printing paper
Recycling must be earnestly adopted inevery part of life before a truly recyclingoriented society can be achieved. Toppan
has been promoting a self-completing
recycling system for printed materials thatencourages activities conducive to resource
conservation.
Yet this is a system that can only bear
fruit if the paper manufacturers share
Toppan’s goal of creating a recycling-oriented society. Discarded printed materials
recovered from consumers by paper manufacturers are recycled into Toppan’s
original printing paper and redelivered toconsumers in the form of new printed
materials.
The company has promoted the collection of catalogs and is now studying
whether it can promote the collection ofother printed materials in other businesses as well.

Activities in the Chubu region
The Chubu Division of Toppan is presently
operating the printed material recycling
system in collaboration with the Tokai
Co-op Consumers’ Co-operative Federation, along with its member co-ops: Meikin
Coop, Co-op Gifu, Mikawa Citizens’ Coop, and Co-op Mie. During fiscal 2003,
the system recovered 2,878 tons of usedpaper, an approximately 22% increaseover the previous fiscal year.

■ Catalog Recovery at the Tokai
Co-op(tons)

3,000

2,878

2,500

2,352
2,086

2,000

1,796

1,500
1,000
500

2000

2001

2002

2003
(fiscal year)■ Recycling System■ Used-paper Recycling System
Sorting for disposal
Old catalogs
Customers’
sales offices

Collection
Automatic
Used Cartocan
vending
recycling bin
machineat the office

Product delivery
trucks collect old
catalogs fromeach sales office

Customers’ sales offices
collect old catalogs when
distributing new catalogs

OfficeUsers
Regenerated as
toilet paper for
re-commercialization

Paper
manufacturer

Distribution
New catalogs

Toppan prints on
the recycled paper
and uses it for
new catalogs

Delivered tothe customers’
logistics centers

New catalogs delivered
to the customer
Gathered by
used-paper
collectors(Recycled paper)
Processed in therecycling plants ofpaper makers
Cartocans and ECO-GREEN

69

Environmental Report

Environmental Communication Activities
To add substance to its environmental activities, Toppan must develop an awareness of environmental
practices not only among its employees, but also among the many people outside the company with whom
it does business. Toppan’s communication activities are geared to raise environmental awareness both
inside and outside the company and stimulate environmental communication activities at a variety of levelsin the wider community.

Overview of Environmental
Communication Activities
Environmental Communication Activities play a major role in Toppan’senvironmental management. Desired
results hinge on close cooperation
within the company, as well as active
collaboration between Group companies. Assuredly, however, the effectsof Toppan’s environmental communication must extend far beyond theGroup. As a responsible corporate citizen, Toppan uses its activities toforge a unified commitment towards
the building of a sustainable, recycling-oriented society among citizens,
industry, government, and academia.
A great many of Toppan’s communication activities are conceived as
drivers for environmental management.

Communication
outside the company

Communication
inside the company

Social contribution
activities

ICustomers

Disclosure of information
Lectures and seminars
Participation in expositions

ILocal communities

Forestation project
Forestation fundSupport for NPOs
Logos
Awareness-raisingAward system

Disclosure of information
Community-friendly plantParticipation in local events■ Categories of Environmental Communication Activity
IEstablished Toppan Declaration on
the Global Environment
IEstablished the Ecology Center
IStructure and operation of theenvironmental management
systemIEnvironmental accounting,environmental education,
environmental compliance
IEco-protection Activities at
production sites
IOffice Eco-protection Activities
IIntroduced low-emission vehicles;
promoted eco-driving
IDeveloped Toppan
Environmentally-friendly Products
IEvaluated products based on LCA
and prior product assessments
IPromoted environmentally-friendly
printing service
IPromoted a support business for
preparing environmental reports
IAdopted Toppan’s Environmental
Logo
IIntroduced the Toppan
Environmental Link
IEstablished the President’s Ecology
Awards70

STAGE 1

Environmental
Corporatization
Initiatives to develop
environmentally-friendly
products and technologies,
and reduce environmental
burdenIIssued the Environmental Report
and Site Reports
IEnvironmental declaration
through the Toppan Label for
Environmentally-friendly Products
IProduction Phase forEnvironmental Communication
IRisk communication
IActivities for symbiosis with local
communities
IEcosystem-saving activities

STAGE 2

Environmental Citizenship
Environmental activities in local
communities based oncollaboration with citizens
STAGE 3

Environmental Socialization
Forming a system fora sustainable, recycling-oriented
society

IExhibitions at Eco-Products 2003
IOperated the Environmental
monitoring system, ecollable Net
IOperated the Tokai Co-op catalog
recycling system
IOperated the Cartocan recycling
systemIDonated to the Forest Fund(forest-saving and environmental
education funds)
IInvested in a joint forestation
venture in Australia

Environmental Report

Communication Inside the Company

Environmental Communication Activities

The information-sharing system on the Toppan intranet raises employee awareness of environmental
issues and the environmental philosophy of the company. The President’s Ecology Awards recognize
outstanding environmental activities.

Adoption of Toppan’s
Environmental Logo
Environmental awareness of every
employee
Every employee within Toppan must
share an awareness of environmental
issues if the company is to fully understand its own impacts and promote comprehensive environmental activities. The
Toppan environmental logo adopted in
1999 is now printed on in-house publications, business cards, stationery, and othermaterials to remind employees of theconstant need for environmental action.
■ Toppan’s Environmental Logo

Toppan aspires to devote increasing attention
to the global environment through its Eco-protection and Eco-creativity Activities. The Environmental Logo expresses both the Corporate
Philosophy and Conduct Guidelines. Toppan’senvironmental efforts and actions are symbolized as a seed that will germinate and grow.
The stalk shooting out of the seed symbolizes
the “E” of ecology, and its two leaves represent Toppan’s Eco-protection and Eco-creativity Activities.

gan for the month, two outstanding slogans, and five exemplary slogans.
During energy-saving month, each operational site posts inspirational posters andslogans to promote energy-saving activities. When the month comes to an end,
each site publishes details of its energysaving measures in activity reports distributed throughout the entire company.

Poster for Earth Month

Toppan Environmental Link
The Toppan Environmental Link website
was set up on the in-house intranet in May
2001 as a channel for sharing environmental information and raising employee
awareness on the environment. Links toenvironmental information and data on
environmentally-friendly products insideand outside the company are provided.
Toppan began reviewing the system infiscal 2003 and has provided interactive
input to stimulate in-house communication activities.

Principal In-house
Communication Activities
Earth Month and energy-saving
monthsThree months of the year have been
accorded environmental themes to mobilize the involvement of the entire Toppan
workforce: June is “Earth Month”;
February and August are “energy-saving
months.”To prepare for the various activities
conducted during Earth Month, Toppan
selects environmental slogans submitted
by Group members in a company-sponsored contest. The No. 1 slogan is printed
on posters and distributed for display
throughout the month. The creators of
the winning slogans receive cash prizes,
as well. In the fiscal 2004 contest, Toppan
chose eight winning slogans from among
4,392 submissions sent in: the No. 1 slo-

Toppan Environmental Link (in Japanese)

Environmental Meetings of
the Toppan Group
Toppan holds regular environmental meetings with Group companies to ensure acommon approach to environmental
issues. The largest of the meetings are
the National Eco-Protection Meeting andNational Eco-creativity Meeting. Others
include the Tokyo Eco-protection Meeting,Tokyo Eco-creativity Meeting, Environmental ISO Secretariat Meeting, Energy
Subcommittee, and Toppan Group Environmental Meeting. Participating members from the Group share information,
collaboratively develop effective activities,

and launch new Group-wide initiatives toimprove environmental performance.
Eco-creativity Hearing
The Eco-creativity Hearing was formed
in fiscal 2003 as a venue to share information on Eco-creativity Activities. The
Ecology Center holds the hearing witheach division on a rotating basis to disseminate important and useful information throughout the company. The
hearing is expected to stimulate Eco-creativity Activities by enabling prompt support in each division and the lateralexpansion of the most effective activities
throughout the company.
President’s Ecology Awards
Toppan newly incorporated the Ecology
Awards in its biannual lineup of President’s Awards as a strategy to stimulate
the environmental efforts of employees.
The award recognizes individuals or groupsof employees who make distinguishedcontributions to environmental conservation. Some employees are awarded
for proposing innovative environmental
reforms that lead to tangible benefits inother areas of the company. Others arehonored for taking out patents or developing utility models and other inventions
that advance environmental conservation
technologies and products.
Ecology Awards have been conferredin recognition of a cost-cutting program
based on the introduction of solid fuelproduction (RPF) and an effort to enhance
the Toppan brand image by assuring that
Toppan became the first company in theprinting industry to earn FSC-CoC certification. Toppan’s environmental activities
progressed considerably in fiscal 2003,
but none stood out sufficiently to meritan Ecology Award for the year. The
momentum behind Toppan’s environmental efforts is nonetheless mounting.

71

Communication Outside the Company
Toppan actively discloses its environmental information through its Environmental Report, Site Reports,
the Toppan Label for Environmentally-friendly Products, and other means. The company is also participating
in seminars and exhibitions on environmental themes and developing new systems for risk communicationin accordance with the PRTR Law.

Environmental Information
Disclosure
Ongoing publication of theEnvironmental Report
Toppan has been disclosing environmentrelated information in its Environmental
Report since 1998. The same report has
also been available in English since 2000.
Both the Japanese and English versions
are posted on the company website.
The Environmental Report 2003 received
the Excellence Award at the 7th Environmental Report Awards held by Toyo
Keizai Inc. in recognition of its superior
disclosure of information.

Environmental Report 2003 conferred the
Excellence Award at the 7th Environmental
Report Awards■ URL for previous Environmental Reports
http://www.toppan.co.jp/english/corporate/environmental/index.html■ URL for CSR Report
http://www.toppan.co.jp/english/corporate/
csr/index.html

Issuance of Site Reports
Since fiscal 2000, Toppan’s ISO 14001certified operational sites have beenissuing Site Reports, periodic communications directed to municipalities and residents in surrounding areas.
■ Contact address for Site Reports
eco@toppan.co.jp

Adoption of the Toppan Label for
Environmentally-friendly Products
In fiscal 2000, the company began applying its Label for Environmentally-friendly
Products to all products that meet
Toppan’s in-house standards for environmental friendliness. These labels explain
the company’s environmental efforts inplain language.
By the end of March 2004, as manyas 70 products were internally qualified
to bear the Toppan Label for Environmentally-friendly Products.
72■ Toppan Label for Environmentallyfriendly Products
Non-chlorine-basedmaterials
The card emits extremely low levels of
noxious gas when incinerated for disposal
after use.

Seminars
To promote a fuller understanding of theenvironmental efforts outside the company, Toppan participates in a great many
lectures and seminars, including its own
programs and the seminars and conferences of trade and industrial organizations.
Environment-related exhibitions
Toppan is a frequent sponsor of environmental trade fairs, as well as an active
participant.
In July 2004, the company held theCommunication & Environmental Exhibition at its PLAZA 21 KANSAI showroom
in Osaka. The exhibition was divided into
two parts: the “Nature and Environment”
pavilion focusing on the global environment, and the “Living Environment” showcasing people-friendly products. Visitors
learned about Toppan’s many environmental initiatives, near-term environmental trends within the company, and thecomprehensive strengths of the Toppan
Group in this field.

■ Exhibiting at Eco-Products 2003
Toppan was an exhibitor at Eco-Products
2003 in December 2003. Four major
companies within the Group—Toppan
Forms Co., Ltd., Toppan Label Co., Ltd.,
Froebel-Kan Co., Ltd., and Tokyo ShosekiCo., Ltd.—exhibited their own environmentally friendly products and explained
Toppan’s Group-wide environmental
approach to interested visitors.
The Toppan booth, known then as“Eco House,” showcased three “lifestylescenes,”—a kitchen, study, and livingroom furnished with Toppan’s environmentally-friendly products and constructed from Toppan’s environmentally-friendly materials. The company
also hosted a number of environmental
events at a mini “Eco Plaza” in the exhibition hall.

Risk communication policy
Until recently, Toppan had each of its sites
respond to inquiries from local residents.
The newly enforced PRTR law requires
companies to account for the environmental impacts imposed by their businessactivities more transparently. Toppan now
meets this requirement in two ways:
firstly, through environmental assessments
to elucidate the current status of its environmental activities; secondly, throughreviews of its risk-communication methods to keep people outside of the company informed.
Toppan will continue to inform people
in local communities through the disclosures in its Site Reports and events suchas its environmental seminars.

Environmental seminar for local residents

Environmental Activity Highlights
Cartocan Drink Containers—a Gift from the Forest
Toppan seeks to create fully recyclable products made from environmentally-friendly materials—
in other words, products friendly to the environment in every way.

Association to Promote Forestfriendly Paper Beverage Containers
In April 2004, Toppan joined with 30
companies from the beverage, paper, andother industries to form the Association
to Promote Forest-friendly Paper BeverageContainers. The association works to conserve Japan’s environment by expanding
both the demand for, and supply of,
Cartocan paper drink containers.
Toppan’s Cartocan is an eco-friendly
container composed of more than 30%
paper materials from Japanese forests,
including tree-thinnings and waste timber. The sale of containers made fromthese materials helps secure the funds
needed to maintain forestry domestically.
Wide adoption of the Cartocan is seen as
one way to nurture the forests of Japan.
The association also supports awareness campaigns for the wider usage of
paper drink containers through tie-ups
between the Forestry Agency and relatedorganizations and companies. The association will be actively collecting and disseminating information for its campaigns
and promoting support businesses toexpand demand and supply.

Tree-thinning Product Mark
Cartocan is now authorized to bear thetree-thinning product mark, an ecofriendly mark that broadens awarenesson tree-thinnings, encourages their use,and helps consumers make the best environmental choices.
Cartocans are made mostly from papermaterials. At first thought, the use of
paper materials for containers may seemto conflict with the goal of nurturing
forests. However, the wider use of timber, a raw material for paper-based containers, brings in the funds needed tosupport a sound and smooth cycle ofplanting, nurturing, and felling in Japanese
forests. Most of the timber resources
consumed in Japan are procured at low
prices from forests overseas. Without
more funds flowing into the Japanese
lumber industry, a sound cycle of forest
management will be impossible to achieve.

Cartocan’s tree-thinning product mark■ Cartocan’s Place in the Wood Production Cycle
Planting

Cost
Purchase ofsaplings, etc.

IncomeUse of timber

Cartocan, a product made from woodbiomass resources such as tree-thinnings
and waste wood, is the only drink container in Japan to display the tree-thinning product mark.

Cartocan Recycling
Like paper milk cartons, Cartocans are
made of high quality paper, a constituent
that makes them highly recyclable. They
also can be collected and combusted as athermal resource.
Material recycling
IHome route: After use as a drink container, consumers rinse the pack thoroughly, cut it open, allow it to dry, anddrop it off at a collection point at asupermarket or local government office.
IBusiness route: Working in collaboration with drink producers and recycled
paper manufacturers, Toppan has established a model recycling system for the
Kanto region.
Thermal recycling
IThermal incineration: The heat generated during incineration is collected
and reused as an energy source forroom or water heating. Incineration of
Cartocans produces only about 2.2%
ash by weight.
ISolid fuel: Waste paper left over fromthe production of Cartocans is turned
into solid fuel for heating, electricity
generation, and other uses. The Sagamihara plant commenced operations as asolid fuel pilot plant in April 1999.

Cost
Tree-thinning operations, etc.
IncomeUse of tree-thinnings
Nurturing
CartocanFelling
The Cartocan also combats the greenhouse effect. The use of Japanese tree-thinnings and waste wood preserves andnurtures Japan’s forests. When forests expand over a wider area, they absorb greater volumes of CO2, the principal
manmade source of global warming.

73

Independent Review
AZSA Sustainability Co., Ltd., an independent auditing firm, was commissioned to review
the CSR Report 2004 to help Toppan improve its clarity, accessibility, and relevance for readers.

In 2000, Toppan proclaimed its Toppan
Vision 21 statement, a detailed vision of
the Toppan of the future. The embodiment of this vision is laid out in the CSR
Report in the form of the Corporate
Philosophy, Corporate Creed, and Conduct
Guidelines. Toppan’s frequent pledges toreciprocate the trust of its customers andfulfill its social responsibility as a good
corporate citizen express the gist of thisvision. Toppan continues to recognize theimportance of the links between its businesses and society.
A string of corporate abuses in recent
years has stirred an unprecedented interest in corporate social responsibility
among stakeholders and society. Toppan
has responded by aligning its many activities with the principles of its Corporate
Philosophy and outlining the details of its
activities in the CSR Report 2004.
AZSA Sustainability Co., Ltd. (formerly
the Environmental Management Department of Asahi & Co) has provided an
independent review of Toppan’s environmental reports since the 2001 issue. Overeach of the past four years, AZSA has
rated Toppan highly for its cooperation
with AZSA’s review and commitment tosincerely disclose the details and results of
its environmental conservation activities.
The scope of the report covers animmense network of some 100 operatingsites inside and outside of Japan. To
maintain uniform standards throughout
this network, Toppan has developed aset of common environmental performance indexes, environmental accounting indexes, easy-to-use guidelines, andprocedural handbooks on data-collection(with examples using data from actual
sites) for use in both the in-house auditing of sites worldwide and the specialized
auditing of sites to collect information to
be disclosed in the Environmental Report.
These materials and the in-house audits
by Toppan have been very helpful for
AZSA in developing its review procedures
and reviewing the sites that it cannot visit
physically.
The Air Pollution Control Law of Japanrequires companies to disclose a designated set of regulated atmospheric pollutants from certain types of facilities. The
disclosure efforts by Toppan go wellbeyond meeting this legal requirement.
Each year, the company calculates anddiscloses the emissions of SOx, NOx, andall major atmospheric pollutants.
Turning to the subject of soil pollution,
Toppan targets a 90% reduction in thegeneration of final landfill waste by 2010
in comparison with the fiscal 2000 level.
The Company includes landfill waste generated both directly and via intermediate
processes (e.g., via recycling) in its calcu-

lations. This strict approach in the measurement of environmental burden is also
reflected in Toppan’s data calculations inenvironmental accounting. When budgeting for environmental activities, Toppan
earmarks the environmental conservation
ratio and strictly defines a range of maintenance costs for environmental conservation facilities and their maintenance.
The CSR Report published from thisyear combines all of the content previously issued in its Environmental Reports
with detailed explanations of Toppan’s
other activities as a corporate citizen. The
CSR Report includes in-depth explanations of the approaches and policies that
led to its creation, as well as generaldescriptions of Toppan’s CSR activities
in every business field. The goal is tocomprehensively disclose information andinform readers of Toppan’s policies andsystems.

Review at Asaka plants■ Independent Review Procedure
IDiscussion and planning

A hearing to review improvements from the previous year; examination of methods and scope of
aggregation; determination of the schedule and the sites to be reviewed

ITop management interview

The President & CEO gives his Executive Message in the CSR Report 2004; Toppan’s basic thinking on
Corporate Social Responsibility (CSR) is confirmed; the evolution of the Environmental Report into the
CSR Report is fully described

IExamination at head officeToppan Printing Co., Ltd.
(Nonconsolidated) and Group
companies in and outside Japan

A hearing on data-collection methods, including internal rules; examination of analytical methods andevidence (with questions and answers); examination of the calculation accuracy and appropriatenessof methods; examination of consistency among data (including descriptions)

IOne-site review

Asaka plants/Securities Printing Division/Commercial Printing Division/Electronics Division/
Tamapoly Co., Ltd.

Final review of the script

IReview at head office

Confirm data on the entire Group and perform a final check on the CSR Report content

Internal review at AZSA
Sustainability Co., Ltd.

IInternal review meetings

Before submitting the independent review, AZSA reviewers uninvolved in the Toppan review examine
the review procedure, examine the review results, and draw up their conclusions about the CSR
Report 2004

Planning

Implementation

Submitting the Independent ISubmission of the Independent
Review Report
Review Report
Meeting the examiner

74

IBriefing on the findings in the
independent review

The independent reviewer submits the Independent Review Report to Toppan

The independent reviewer reports the findings of the review to ToppanAs the very first CSR Report from
Toppan, this year’s report takes a morecomprehensive form than it will in the
future. From 2005 onward, the content
will be much more selectively focused on
the most important issues facing thecompany. Many of reports will coveractivities at the site level, with news
about the people who actually put thecompany’s policies into action. Toppan
may also add overviews of economic performance in terms of the relationshipbetween the direct and indirect economic
actions of the company and stakeholders,as suggested in the GRI guidelines.
In the past, Toppan has relied exclusively on reader surveys and independent
reviews to collect feedback on its reports.
From this year the company has also heldroundtable discussions to sample thirdparty opinions from experts and others.
These external views should help thecompany improve its reports yearly.

Maho Yao
Manager
AZSA Sustainability Co., Ltd.

■ Toppan’s Response
Toppan began publishing the Environmental Report in 1998. A few years later,
just after the publication of the Environmental Report 2001, Asahi & Co (currently
AZSA Sustainability Co., Ltd.) began an
independent review of the environmental
performance and environmental accounting indices used to quantify the results ofToppan’s environmental activities.
AZSA Sustainability Co., Ltd. has also
reviewed this first CSR Report.
With this year’s CSR Report, Toppan
sought to combine the environmental
content covered in its earlier Environmental Reports with a complete overview
of the company’s social activities in non-environmental areas as well. The CSR
activities now underway are a realizationof Toppan Vision 21, the statement on
the shape of the company in the future.
The disclosure of these activities gives our
stakeholders a fuller picture of Toppan asa corporate citizen.
On the environmental front, theToppan Declaration on the Global Environment is the basis on which the company
sets independent standards for measuring environmental burden and disclosing
its results—standards that go well beyond
those required by law. Toppan will continue to strictly manage these activities
and strengthen the roles of its overall CSR

activities in its business operations.
Going forward, Toppan aims to serve
society as an ideal corporate citizen by
establishing an independent approach to
CSR, actively undertaking measures tofulfill its social responsibilities, and disclosing those efforts in this report. As always,
the issues pointed out in the independent
review will be reflected in the planning of
future activities.

75

Third-party Opinion
A new horizon for Japanese-style CSR

Amidst the current CSR boom, many

company spend more time describing

ment to take the lead and evolve into a

companies are proudly proclaiming theirmeasures that “do no harm,” or measures

major benefactor of society. This step

commitment to “social responsibility” andthat “contribute to society” and “doadvances CSR to an unprecedented level.

turning out reports on their CSR endeav-good”? Social responsibility tends to be

Toppan has created a Japanese-style CSR

ors. A close reading of these reports isdefined narrowly by terms such as “legal

destined to gain strong recognition in theprobably the best way to appraise theircompliance,” “corporate ethics,” “humanworld’s capital markets.

actual resolve. In reading the CSR Reportrights,” and “environmental protection.”

Behind this advancement are the2004, I was once again impressed by the

The CSR Report 2004 frames “social“human assets” of Toppan. The people ofremarkable resolve of Toppan in this new

responsibility” in a more positive light.

Toppan are the company’s truest creation

realm of CSR.

The ultimate purpose of CSR activities forand its ultimate “social contribution.”

How can we distinguish between a

Toppan is to “create a fulfilling society.”company with a strong resolve and a

The third point is how the company

company without one? Here I can sug-

actually realizes its “social contributions.”

gest three points check.

Back during the philanthropy boom,

First, what reasons does the company

companies set aside shares of their profits

cite for taking an interest in CSR? If theto sponsor cultural activities. While cer-company explains that CSR is crucial for

tainly helpful to society, their efforts rep-

its survival or investor recognition, its

resented just one of many forms of

motivations are likely to be focused inward,“social contribution.” A company whollyon its own interests. A company withcommitted to social contribution will doresolve and a clear corporate philosophy

so through its business activities; throughmeets its social responsibilities without

the very products and services that it pro-having to be reminded. Within a com-vides to society. The notion that thispany truly committed to the social good,should begin with Japanese-style man-August 2004

words like “responsibility” and “obliga-

agement is reiterated throughout thistion” evolve into words like “principle”

report. The same notion sits at the heart

Professor,
Tama University
Graduate School
President,
Thinktank SophiaBankand “mission.” The Corporate Philosophyof Toppan’s Corporate Philosophy andHiroshi Tasaka

introduced at the beginning of the CSR

the tenet that Toppan employees “create

Report 2004 and the frequent use of

dedicated products.” Under the ideal form

the word “mission” throughout its pagesof Japanese-style management, employ-

convey the company’s resolve.

ees pour their hearts into the products

The second point is how the company
defines “social responsibility.” Does thethey create.
This report reflects Toppan’s commit-

Took his doctorate from The University of Tokyoin 1981. Awarded a Doctor of Engineering. Fellowof The Japan Research Institute, Limited. Professor
at Tama University Graduate School. President of
The Thinktank SophiaBank. President of The Japan
Social Entrepreneur Forum (JSEF). Outside director
and advisor to companies in the fields of information, logistics, finance, education, and environment.

■ Toppan’s Response
Hiroshi Tasaka, a professor at the Tama
University Graduate School and President& CEO of The Thinktank SophiaBank,
Limited, has provided valuable feedbackon the CSR Report 2004.
CSR has seen something of a boom
among companies these days. As a leader
in the printing industry, Toppan makes it
its mission “to facilitate the disseminationand exchange of information and ideas as
the nurturer of a fulfilling society. To fulfill
this mission, the company serves society
by “creating dedicated products.” The76

basic policy behind the promotion of
CSR activities is to realize this Corporate
Philosophy.
Professor Tasaka pointed out threesigns of a company’s resolve to fulfill CSR,
namely awareness of social responsibility,
making positive contributions, and contributing through business activities.
Toppan makes these an essential part ofits CSR measures as it works to become atrue benefactor of society.
Professor Tasaka also touched on theimportance of human assets, describing

them as the ultimate creation and contribution to society. Toppan holds precisely
this view. As the creators of Toppan’s
independent CSR initiatives, the employees of Toppan must be driven by a strong
desire to carry out CSR. Toppan also fully
understands that the success of its CSR
hinges on a positive working environment for its employees.
Toppan would like to sincerely thankProfessor Tasaka for offering his constructive opinions on this CSR Report.

Data Report
Toppan’s Corporate Creed asserts that the company will undertake fair and open corporate activities.
This Data Report presents the internal standards and quantitative data compiled based on reporting
guidelines issued by the Ministry of the Environment and GRI and corporate social responsibility
questionnaires produced by a number of research organizations.

Basic Reporting Data ——————————— P. 78

Corporate profile, the scope of the report,
and other basic details on the reporting process

Social Performance Data ————————— P. 80

Data on the economic and social aspects of the report,
including data on finances, ethics, and personnel

Environmental Management Data ——— P. 84

Detailed information on environmental management,
environmental accounting, and other management
systems

Eco-protection Data ———————————— P. 86

Information on environmental performance,
including data on various environmental burdens

Eco-creativity Data/—— P. 90
Environmental Communication Data

Status of environmental communication activities andenvironmentally-friendly products

GRI Guidelines Reference Index ————— P. 92

Chart showing conformity with GRI (Global Reporting
Initiative) Sustainability Reporting Guidelines 2002

Basic Reporting Data

Corporate Profile
Corporate nameToppan Printing Co., Ltd.

Head office

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

Established

January 17, 1900

President & CEO

Naoki Adachi

Number of employees (Nonconsolidated) 11,512 (end of March 2004)
Number of employees (Consolidated)32,178 (end of March 2004)

Capital (Nonconsolidated)

104.9 billion yen

Group Profile
The Toppan Group comprises Toppan Printing Co., Ltd. and 143 related companies (122 subsidiaries and 21 affiliates) engaged in a wide scope of businesses in the three fields of Information & Networks, Living Environment, and Electronics.
The position of Toppan and its affiliated companies with respect to these business fields is outlined below.
■ Toppan Group Structure
Toppan Printing Co., Ltd.

Information & Networks

Living Environment

Manufacturing Companies

Manufacturing Companies

Toppan Display Co., Ltd.

Toppan Plastic Co., Ltd.

Toppan Graphic Co., Ltd.

Toppan Kansai Packs Co., Ltd.

19 other companies

Tama Processing Co., Ltd.

3 other companies

Toppan Graphic Communications Co., Ltd. 16 other companies∗ Hino Offset Printing Co., Ltd.

2 other companies

Manufacturing and Sales Companies

Hamamatsu Toppan Forms Co., Ltd.

10 other companies

Toppan Label Co., Ltd.

T. F. Company, Ltd.

7 other companies

Toppan Containers Co., Ltd.

8 other companies

Tamapoly Co., Ltd.

∗ Korea Toppan Forms Co., Ltd.

∗ Toyo Ink Mfg. Co., Ltd.

Manufacturing and Sales Companies
Toppan Forms Co., Ltd.

2 other companies∗ Tosho Printing Co., Ltd.

Toppan Interamerica Inc.

∗ Tokyo Magnetic Printing Co., Ltd.

2 other companies

P. T. Toppan Sampoerna Indonesia
5 other companies

Sales Companies

Toppan Printing Co. (America), Inc.

Toppan Cosmo, Inc.

1 other company

Toppan Printing Co., (H. K.) Ltd.
Toppan Printing Co., (Shenzhen) Ltd.
Toppan Printing Co., (Shanghai) Ltd.

Electronics
3 other companies

Sales Companies

Niigata Toppan Printing Co., Ltd.

Froebel-Kan Co., Ltd.

Toppan Shiga Seimitsu Co., Ltd.

Total Media Development Institute Co., Ltd.

NEC Toppan Circuit Solutions, Inc.
16 other companies∗ Toppan M & I Co., Ltd.
∗ Tokyo Shoseki Co., Ltd.
Toppan Printing Co. (Australia) Pty. Ltd.

4 other companies

Manufacturing and Sales Companies

Toppan Travel Service Co., Ltd.
Toppan Multisoft Ltd.

Manufacturing Companies

Toppan CFI (Taiwan) Co., Ltd.

3 other companies

Sales Companies
2 other companies

Toppan Electronics (Taiwan) Co., Ltd.

3 other companies

1 other company

Notes: •No symbol: subsidiary—122 companies; ∗(asterisk): affiliate—21 companies (March 31, 2004)•While Toppan’s business operations activities are divided into five fields, only three main categories are adopted for consolidated environmental accounting.
This decision was made on the basis of the scale of sales.
•Among Toppan’s subsidiaries, Toppan Forms Co., Ltd. is listed on the First Section of the Tokyo Stock Exchange.

78

Data Report
Basic Reporting Data

Scope of the Report
The scope of the environmental performance data and environmental accounting is determined based on
the importance of each subsidiary in the field of environmental conservation. The main financial data coverconsolidated subsidiaries. In principle, personnel-related data cover only Toppan Printing Co., Ltd.
■ Locations of Production Plants(plants of Toppan Printing Co., Ltd. and its affiliates*1)*1 Subsidiaries that receive management guidance from Toppan Printing Co., Ltd.

Plant

Plant

Location

Plant

Location

Mie

NEC Toppan Circuit Solutions, Inc.

Niigata

Shiga plant

Shiga
Osaka

Toppan Printing Communications
Co., Ltd.

SaitamaKansai plant (Commercial Printing)(Osaka)Toppan Graphic Co., Ltd.

SaitamaKansai plant (Commercial Printing)(Takino)Hyogo

Takino plant (Securities)

Hyogo

Takino plant (Packaging)

Hyogo

Toppan Seihon Co., Ltd.

Tokyo

Fukusaki plant

Hyogo

Toppan Electronics Fuji, Co., Ltd.

Shizuoka

Itami plant

Hyogo

Mikkabi Toppan Printing Co., Ltd.

Shizuoka

Fukuoka plant No.1

Fukuoka

Osaka Toppan Display Co., Ltd.

Osaka

Fukuoka plant No.2

Fukuoka

Toppan Harima Products Co., Ltd.

Hyogo

Kumamoto plant

Kumamoto

Kannabe Toppan Co., Ltd.

Location

Sapporo plant

Hokkaido

Matsuzaka plant

Chitose plant

Hokkaido

Sendai plant

Miyagi

Gunma plant

Gunma

Kashiwa plant

Chiba

Satte plant

SaitamaRanzan plant

Saitama

Asaka plant (Securities)

Saitama

Asaka plant (Commercial Printing)

Saitama

Asaka plant (Electronics)

SaitamaItabashi plant

Tokyo

Sagamihara plant

Kanagawa

Niigata plantNiigata

Nagoya plant

Aichi

Toppan Plastic Co., Ltd.

Saitama

Toppan Packaging Service Co., Ltd.

Saitama,
Chiba

Hiroshima

Toppan Saga Yoki Co., Ltd.

Saga

Kumamoto Toppan Co., Ltd.

Kumamoto■ Overseas Production Plants (plants of overseas subsidiaries)
Plant

Location

Toppan Printing Co., (Shanghai) Ltd.

ShanghaiToppan Printing Co., (Shenzhen) Ltd.

ShenzhenToppan Printing Co., (H. K.) Ltd.

Hong Kong

P. T. Toppan Sampoerna Indonesia

Jawa Barat,
Indonesia

Plant

Location

Plant

Location

Siam Toppan Packaging Co., Ltd.

Samutprakarn,
ThailandToppan Chunghwa Electronics
Co., Ltd.

TaiwanToppan Printing Co. (America), Inc.

New Jersey

Toppan PAP (Taiwan) Co., Ltd.

TaiwanToppan Interamerica Inc.

Georgia

Toppan CFI (Taiwan) Co., Ltd.

TaiwanToppan Optical Products, Inc.

California

79

Social Performance Data

Main Financial Data
■ Sales■ Ordinary Income
Consolidated

14,000Consolidated

Nonconsolidated

312

700
9,693

635

300

620

600

9,602

9,146

9,117

(100 million yen)731

12,00010,000Nonconsolidated

350

800

12,973

12,516

Consolidated(100 million yen)(100 million yen)

12,938 12,961■ Net Income
Nonconsolidated

8,000

250

507

484

500

200

411

400

348

344

6,000

291

278

207

214

2002/3

2003/3189

183

150 147

300
4,000
2,000
0

100

200

50

100
2001/3

2002/3

2003/30

2004/3

2001/3(term)

2003/3

2004/30

2001/3

2004/3(term)(term)■ Sales by Segment (consolidated)■ Number of Employees
Consolidated(million yen)

Electronics
229,280

2002/335,000Information &Networks739,850

Nonconsolidated(employees)

32,16331,61033,292

32,17830,00025,00020,00015,00013,026

12,74812,053

11,512

10,0005,000
LivingEnvironment
328,2250

2001/3

2002/3

2004/3(term)

Hiring and Employment

Human Asset Development■ Number of Employees■ Supporting employees in career planning
Toppan provides its employees with the opportunity to declare theircareer plans and the types of work they want to perform. A number ofcareer paths are offered. Career development and career training programs are also established under the company’s career planning system. Employees are free to access information on skill development
and self-awareness.

Number of
employees

AveragetenureTurnoverrate

Fiscal 2002
as of end of March 2003

12,053(8.1% women)

15.5 years

3.7%

Fiscal 2003
as of end of March 2004

11,512(7.9% women)

15.5 years

3.6%■ Employees by Type(persons)

Management class Supervisor
Executives

Fiscal 2002
as of end of
March 2003

29

Fiscal 2003
as of end of
March 200431

(assistant manager (supervisory,
and above,
includingcontract
including contract
employees)
employees)

1,977

Temporary,part-time

2,465

782

2,334

849

(0.8% women)
1,897■ Educational opportunities to support independent study
The Toppan Business School provides elective group training in some
60 courses, distance learning through the Toppan Challenge School,
and a video library. The company covers half of the program fees for
employees enrolled at The Toppan Challenge School and supports
independent study.
■ Results and Plans in Human Asset Development(1.0% women)■ Recruits (regular hiring, including the hiring of new graduates)80

2003/3

Sales,
administration

Technical

Fiscal 2002

105

120

23.1%

Fiscal 2003

105

120

23.6%

% womenFiscal 2003

Fiscal 2004

Funds spent on training per employee

29,000 yen

45,000 yen(estimated)

Average training days per employee

0.89 day—(Results for fiscal 2002 were not compiled for either of the above)■ Personnel evaluation system
Salary revisions, bonuses, and promotions are decided through a merit
review process. Employees and superiors discuss the results of themerit reviews and future goals in feedback interviews.

Data ReportSocial Performance Data

Respecting and Supporting Human Assets

Workplace Health and Safety■ Policy on providing equal employment opportunities andeliminating discrimination
The policy on providing equal employment opportunities and eliminating discrimination is clearly set down in writing and disclosed publicly.
The policy applies to the entire Group, including foreign and domestic
subsidiaries.
Special items: respect for human rights; compliance with laws andethical standards; prohibition of child labor; prohibition of discrimination on the basis of ethnicity, race, nationality, gender, physical circumstances, or other reasons; prohibition of sexual harassment.

General health and safety managers are appointed to take responsibility for health and safety. Their responsibilities are clearly set forth in
the health and safety rules of each operational site. The Health and
Safety Committee plans education for the workforce as needed,
including training for new recruits.
Clear goals are set for each operational site, and health managers
and industrial health staff conduct regular checks to confirm the existence of safeguards at hazardous areas and risk points. Toppan regularly monitors and collects information on labor accidents.

■ Employment of women
Toppan sets specific quantitative targets for the employment of womenat an annual forum devoted to this issue. A sexual harassment consultation office has also been established.

Deaths from work accidents

Work Holiday and Leave Systems

Fiscal 2002 Fiscal 2003
00Frequency rate*1

0.55%

0.30%

Severity rate*2

0.02%

0.01%

*1 Frequency rate: number of employees injured in labor accidents per 1 million working
hours (reflects the frequency of labor accidents)*2 Severity rate: number of workdays lost per 1,000 working hours (reflects the severity oflabor accidents)■ Maternity leave
Both contract and part-time employees can take up to six weeks ofleave before childbirth and another eight weeks after.
■ Childcare leave
Regular, full-time employees can take up to 12 months of childcare
leave. In fiscal 2003, one male employee also used the system.
Employees receive a small portion (10%) of their regular salary during
the leave. Employees can also apply to shorten or extend the leave.
Toppan subsidizes some childcare costs and provides information
through its consultation office. Employees can consult with the company to discuss their career plans before they return to work.
■ Nursing care leave
Regular, full-time employees can take up to 12 months of nursing careleave. Leave can be taken once per family member needing care. The
company subsidizes some nursing costs and provides information
through its consultation office.
■ Emergency care leave
Employees can take up to five days of unpaid leave a year.
■ Other systems
Reduced working hour systems are available to support childcare andnursing. All employees can take advantage of the flextime work system and the company’s “refresh holiday” system.
■ Status of Work Holiday and Leave Systems
Fiscal 2002 Fiscal 2003
Average ratio of annual paid holiday used

38.6%

38.2%

Employees using the maternity leave system

32

35

Employees using the childcare leave system

37

48

81

Information Risk Management■ Privacy Mark Certification
Company

Operational site

Date obtained/applied for

Certification type

Securities Printing Division

March 2000 (obtained)

A190005 (03)Commercial Printing Division

May 2001 (obtained)

A190018 (02)Nishinihon Division

March 2004 (applied for)

Chubu Division

July 2004 (applied for)—

General Production Division

June 2001 (obtained)

A190019 (02)IMS Business Division

July 2003 (obtained)

A190050 (01)Kansai Business Division

November 2002 (obtained)

A190027 (01)Chubu Business Division

April 2003 (obtained)

A190039 (01)Nishinihon Business Division

April 2003 (obtained)

A190040 (01)

Toppan Forms Operation Co., Ltd.

August 2002 (obtained)

A820089 (01)

Toppan Forms Logistics and Services Co., Ltd.

August 2002 (obtained)

A450002 (01)

Toppan Printing Co., Ltd.

Toppan Forms Co., Ltd.

—

Toppan Forms Services (Kansai) Co., Ltd.

Entire company

August 2002 (obtained)

A190028 (01)

Toppan Forms Process Co., Ltd.

Entire company

June 2003 (obtained)

A190047 (01)

Toppan Forms (Hamamatsu) Co., Ltd.

Shizuoka plant No. 2

August 2002 (obtained)

A190029 (01)February 2004 (obtained)

A820186 (01)

Toppan NSW Co., Ltd.

(as of September 2004)■ ISMS Certification
Company

Operational site

Date obtained

Certification typeToppan Printing Co., Ltd.

E-business Division (TOPICA service)

June 2002 (Ver. 1.0)

CR-I0001

Toppan Forms Co., Ltd.

Tokyo Data CenterFebruary 2003 (Ver. 1.0)

JQA-IM0049

Kansai Business Division, Kansai Data Center

January 2004 (Ver. 1.0)

JQA-IM0137

Strengthening Quality Assurance■ Basic Stance on Product Safety Management
1. Basic philosophy on product safety management
Toppan prevents product-related accidents and protects the health and safetyof the users of its products through the following steps:• Recognize the importance of product safety.
• Promote measures to improve Toppan’s product safety management.
• Contribute to society through Toppan’s product safety management.
2. Guidelines on product safety management
1. The entire company and all of its departments individually recognize theimportance of product safety and carry out safety management fromtheir own standpoints.
2. Efforts to manage the safety of products are automatically incorporated
into TQC, TPM, ISO and other activities to strengthen quality management
and quality assurance while improving the nature of the activities.
3. In regard to the maintenance of product quality and other systems, thecompany acts efficiently and effectively by incorporating the ISO 9000
series and other approaches to quality assurance.
4. The head office and all of the company’s divisions cooperate in building
consistent quality assurance measures. The head office assumes
responsibility for comprehensive measures (basic approach to productsafety, collection of information on specific cases, establishment andimplementation of corporate-wide policies on product management,
external affairs, etc.) and the divisions assume responsibility for specificmeasures (design standards for each product, etc.).

82

5. The head office and all of the company’s divisions actively collectinformation on the Product Liability Law. The head office disseminates
information to the divisions as a central information source.
6. Prevention of product-related accidents is a fundamental corporate
policy. Toppan closely adheres to this policy throughout all stages ofoperation, starting from development and design, in all if its work withaffiliates, business partners, customers, and others.
7. Quality assurance activities are carried out from the user’s viewpoint as
the company strives to prevent the production of defective products.
8. The company cooperates actively and sincerely with the product safety
management activities of customers as part of its social responsibility.
9. The company responds appropriately and sincerely to the opinions,complaints, and requests from users in its capacity as a “protector of
the user.”
10. The company creates an overall quality assurance structure throughcooperative activities between the existing Crisis Management
Committee and Confidential Information Management Committee.

Data ReportSocial Performance Data

■ ISO 9001 Certification within the Toppan Group
Division

Operational site

Registrar

Registration date(Revision date)

Electronics Division

Asaka plant, Shiga plant

JQA

1993.11 (2003. 6)

Interior Decor Materials Division

Kashiwa plant, Satte plant

JQA

1994.12 (2001.12)

JQA

1995. 3 (2003. 4)

Optronics Division
Electronics Division

Kumamoto plant

JQA

1995. 4 (2003.11)

Packaging Division, Kansai Division

Takino packaging plant, Fukusaki plant, Itami plant

JQA

1995. 4 (2003.10)

Chubu DivisionMatsuzaka plant, Mikkabi Toppan Printing,
Nagoya plant

JQA

1997. 7 (2003.10)

Information & Publications Division

Compact Disk Manufacturing Department

JQA

1998. 6 (2002. 9)

Nishinihon Division, Kyushu Division

Fukuoka plant No. 2, Securities Department

JQA

1999. 3 (2003. 7)

JQA

2000.11 (2003.11)

Hokkaido Division
Securities Printing Division

Asaka plant (Securities), Ranzan plant, Kansai
Securities Printing Division, Takino plant (Securities),
Securities Printing R&D Department

JQA

2002. 4 (2003.10)

Electronics Division, Display Department

Shiga plant No. 2, Niigata plant, Mie plant

JQA

2002. 6

Kyoto sales office, Yaesu sales office

JQA

2002. 6

Amagi plant

JQA

2004. 6

Nishinihon Division, Kyushu Division
Group company

Operational site

Toppan Graphic Communications Co., Ltd.

Registrar

Registration date(Revision date)QCB JAPAN

2004. 3Toppan Electronics Fuji Co., Ltd.

JQA

1993.12 (2003. 5)

NEC Toppan Circuit Solutions, Inc.

Reliability Center for Electronic
Components of Japan

1993. 4 (2003.12)

Kumamoto Toppan Co., Ltd.

JQA

1997.11 (2003.11)

Toppan Plastic Co., Ltd., Kansai Branch

Fukusaki plant, Wakayama Manufacturing Department

JQA

2001.10 (2003.12)

Toppan Prosprint Co., Ltd.

Mito plant

JQA

2001.11 (2004. 4)

JQA

2003. 1

Quality Certification Bureau Inc.

2004. 2Toppan Technical Design Center Co., Ltd.
Toppan Display Co., Ltd.

Registrar

Registration date(Revision date)Toppan Printing Co., (Shenzhen) Ltd.

SQCC

1995.11 (2001.10)

Toppan Printing Co. (America), Inc.

DNV

2000. 7

Toppan Printing Co., (Shanghai) Ltd.

Overseas subsidiaryTÜV Anlagentechnik GmbH

2001. 9Toppan Chunghwa Electronics Co., Ltd.

RWTUV2002. 5Toppan Printing Co., (H. K.) Ltd.

DNV

2002. 5

P. T. Toppan Sampoerna Indonesia

LRQA

2002. 9Toppan CFI (Taiwan) Co., Ltd.

SGS

2003.1283

Environmental Management Data

Organizational Structure■ Toppan Group Environmental
Meeting
Toyo Ink Mfg. Co., Ltd.
Tosho Printing Co., Ltd.
Tokyo Shoseki Printing Co., Ltd.
Toppan Forms Co., Ltd.
Tokyo Magnetic Printing Co., Ltd.
Toppan Label Co., Ltd.
Toppan Logistics Co., Ltd.
Tamapoly Co., Ltd.
NEC Toppan Circuit Solutions, Inc.
Toppan Printing Co., Ltd.
10 companies overall

Toyo Ink Mfg. Co., Ltd.
Tosho Printing Co., Ltd.
Tokyo Shoseki Printing Co., Ltd.
Toppan Forms Co., Ltd.
Toppan Cosmo, Inc.
Toppan Label Co., Ltd.
Tokyo Magnetic Printing Co., Ltd.
Total Media Development Institute Co., Ltd.
Toppan Logistics Co., Ltd.
Toppan Multisoft Ltd.

1. Reporting of activity achievements andmeasures taken for Eco-protection issues

Basic Stance and Rules P. 48–P. 57
The Basic Environment Law
Law for Promotion of Nature Restoration
The Basic Law for Establishing the RecyclingBased Society
Legislation to Implement a Basic Law on Energy
PolicyLaw Concerning Increasing the Desire forEnvironmental Conservation and Promoting
Environmental Education
Law Concerning the Promotion ofEnvironmentally Conscious Activities ofSpecified Businesses through the Promotion of
the Provision of Environmental Information
Eco-protection Fields P. 58–P. 63
Air Pollution Control Law
Water Pollution Control Law
Sewerage Law
Septic Tank Law
Law Concerning Special Measures forConservation of the Environment of the Seto
Inland Sea
Soil Contamination Countermeasures Law
Offensive Odor Control Law
Noise Regulation Law
Vibration Regulation Law
Industrial Water Law
Law Concerning the Rational Use of Energy
Law Concerning the Promotion of theDevelopment and Introduction of Alternative
EnergyLaw Concerning the Promotion of the Use of
New Energy
Waste Disposal and Public Cleaning Law
Law for the Control of Export, Import, andOthers of Specified Hazardous Wastes andOther Wastes
Construction Materials Recycling Act
Law Concerning Special Measures against PCB
waste
Law Concerning Reporting, etc. of Releases tothe Environment of Specific Chemical
Substances and Promoting Improvements intheir Management
Law Concerning Special Measures against
Dioxins
Law Concerning Special Measures for Total
Emission Reduction of Nitrogen Oxides from
Automobiles in Specified Areas
Law Concerning the Protection of the Ozone
Layer through the Control of Specified
Substances and Other Measures
Law Concerning the Promotion of the
Measures to Cope with Global Warming
Factory Location Law
Landscape Law
City Planning Law
Urban Green Law
Law Concerning the Improvement of Pollution
Prevention Systems in Specific Factories
Eco-creativity Fields P. 64–P. 69
Law Concerning the Promotion of Procurementof Eco-Friendly Goods and Services by the Stateand Other Entities
Law for the Promotion of Effective Utilizationof Recyclable Resources
Law for the Promotion of Sorted Collection andRecycling of Containers and Packaging
Law for the Conservation of Endangered
Species of Wild Fauna and Flora(1) Results in waste disposal and recycling(2) Results in energy saving(3) Status of observance of in-house standards
on atmosphere, water, and others
2. Information on environmental concerns
outside the company(1) Information on the establishment andrevision of environment-related laws andregulations(3) Guidelines, requests, and information fromgovernment administrations, including
local municipalities(4) Complaints, requests, and feedback fromlocal residents and others
3. Progress of the Eco-protection Activity Plan
(Environmental Management Program)
4. In-house nonconformities and irregularities
in environmental conservation(1) Reporting on troubleshooting analyses andrecommendations on improvement plans(correction or prevention) for cases inquestion(2) Disseminating information on problems
common to different departments

Tamapoly Co., Ltd.
Froebel-Kan Co., Ltd.
NEC Toppan Circuit Solutions, Inc.
Toppan Printing Co., Ltd.
14 companies overall■ Eco-creativity Promotion System
Eco-creativity Project

Commercial Printing Commercial Printing
Division
Eco-Project
Kansai Commercial Eco-creativity Promotion
Printing Sub-division Committee

84■ Major Environment-related Laws
Involving the Printing Industry inJapan(2) Information on contractors for industrial
waste disposal consignment■ Toppan Group Eco-products Meeting

Securities Printing
Division■ Verification of Environmental
Activities in Eco-protection
Promotion Meetings

5. Reporting on other environment-related
information(1) Adopting or changing the use of chemical
substances(2) Changing or newly installing production
processes and facilities
6. Reporting on the environmental
management system(1) Content of in-house environmental
auditing(2) Content of internal environmental auditing
7. Other issues specific to the production
plant, such as ecological conservation of
the premises and/or the surrounding areas

Electronics Division

Eco-creativity Promotion(Electronics)

Information &Publications Division

Eco-promotion Project

Packaging Division

Package and Environment
2000 ProjectInterior Decor
Materials Division

Eco-creativity Promotion
Committee

Managers

151

Optronics Division

Eco-creativity Promotion
Committee

Supervisors

109

Employees

68

Chubu Division

Chubu Eco-Project

Total

328

Nishinihon Division

Nishinihon Eco-creativity
Committee

Tohoku Division

Tohoku Eco-creativity
Project

Hokkaido Division

Eco-creativity Committee

E-business Division

Eco-creativity Promotion
Project

Technical ResearchInstitute

Research InstituteEco-creativity Promotion
Committee■ Registered In-house Environmental
Auditors
Position

Personnel(as of June 30, 2004)

Data Report
Environmental Management Data

Environmental Accounting■ ISO 14001 Certification
Division
Electronics Division
Electronics Division

Operational site
Shiga plant
Kumamoto plant

Main productRegistrar

Electronics productsElectronics products

JQA
JQA

Registration date(Revision date)
1998. 7
1998.11(2001.12)

Interior Decor Materials
Division

Satte plant/Kashiwa plant

Electronics Division

Niigata plant, and NEC
Toppan Circuit Solutions,
Inc. Niigata plantCommercial Printing
Toppan Printing
Division
Communications Co., Ltd.
Securities Printing Division Ranzan plant
Packaging Division
Akihabara office/Ebie officeInformation &Publications Division
Packaging Division

Itabashi plant/
Toppan Seihon Co., Ltd.
Fukusaki plant

Information &Publications Division
Commercial Printing
Division/Securities
Printing Division/
Packaging Division
Packaging Division
Securities Printing
Division/Commercial
Printing Division/
Electronics Division
Electronics Division

Toppan Graphic Co., Ltd.
Kawaguchi plant/Oji plant
Takino plantGroup company
Total MediaDevelopment InstituteCo., Ltd.
Toppan Forms Co., Ltd.
Toppan Label Co., Ltd.
Toppan Logistics
Co., Ltd.
Toppan Forms Co., Ltd.
Toppan Forms Co., Ltd.
Toppan Containers
Co., Ltd.

Wallpapers, decorative
paper/film for furniture,
decorative sheets
Electronics products

JQA

2000. 3
(2000.6)

JQA

Globalenvironmental
conservation:
12.9%

Pollution
prevention:
66.3%

Total
investment:

2000. 45.474

(2002.10)

billion yen
Books, magazines,
catalogs
Credit cards, IC cards
Planning, development,
design, sales, prepress of
packages
Books, magazines

JQA

Soft packaging materials,
paper cups, plastic
products
Books, magazines

2000.10(2002.12)

JQA
JQA

2000.112001. 3

JQA

2002. 2

JQA

2002. 7

JQA

2002. 8
(2004.7)

Waste treatment
and recycling: 14.2%■ Breakdown of Environmental
Conservation Cost for Fiscal 2003
Global environmental
conservation: 5.3%
Research &development:
6.5%

2002.10JQA
JQA

2003. 7
2003.12Toppan Electronics Fuji
Co., Ltd.

Electronics products

JQA

2004. 6

Management
activities:
7.5%

Operational site

Main productRegistrar

Registration date(Revision date)

Pollution
prevention:
34.3%

Consulting for museums
and related facilities

JSA

2001. 3Business forms
Self-sealing labels
Storage andtransportation of products
Business forms
R&D
Cardboard andcardboard boxes

JQA
JQA
JQA

Gunma plant
Asaka plant

Entire company

Hino plant
Fukushima plant
Kawaguchi site
Fussa plant
R&D Center
Saitama plant/
Miyagi plant

Main productToppan Printing Co. (America), Inc.
Toppan Chunghwa Electronics Co., Ltd.
Toppan Printing Co., (Shenzhen) Ltd.

(2002.4)

2001. 6
2001.11
2002.10(2003.10)

JQA
JQA
JQA

2004. 2
2004. 3
2004. 4

Registration
date
MASCI
2002. 4
DNV
2002. 5

Registrar

Paper cartons and fine cardboard
Books, magazines, commercial
printed matter
Commercial printed matter
Electronics parts
Books, paper containers, cards

DNV
SGS
SSCC

2002.122003.10
2003.12(26 systems/35 sites as of July 31, 2004)

Contents
Partial conformance with the standard
Efforts may be required for full conformity with thestandard
Notable achievement through actions performed in
the field of environmental management

Note: Excluding certain overseas subsidiaries and independent subsidiaries.

Upstream &downstream cost: 3.9%
Social activities: 0.1%
Environmental damage
remediation: 0.0%

Total:

11.712billion yen■ Number of Issues Highlighted under ISO 14001 (Fiscal 2003)

Excellent point

Research &development: 2.4%

JQA

Siam Toppan Packaging Co., Ltd.
Toppan Printing Co., (H. K.) Ltd.

Minor nonconformance
Point for observation

Management
activities: 4.2%

Commercial printed
materials, securities,
paper containers forliquids
Soft packaging materials
Securities, commercial
printed materials,
electronics products

Overseas subsidiary

Item■ Breakdown of Environmental
Conservation Investment for
Fiscal 2003

Number of issues
highlighted
14
152
17

Waste treatment
and recycling:
42.4%■ Calculation Standards for Environmental
Accounting for Fiscal 2003
1. Reference guidelines
Ministry of the Environment Environmental
Accounting Guidelines (2002 version)
2. Calculation standards for environmental
conservation costa) Investment: Based on the prices of theenvironmental protection facilities obtainedin fiscal 2002.
b) Cost: Depreciation of environmental
protection facilities (according to ordinaryaccounting), operational costs (including
electricity, fuel and repairs), and othermaintenance costs.
c) Composite cost: For more detailed
information related to environmental
works, the percentage related toenvironmental conservation is defined in
the in-house guidelines for aggregation.
3. Calculation standards for economic benefit
The economic benefit (effect on business) isbased solely on the actual effect and does notinclude surmised effects.
a) Energy-saving: energy savings (converted
to annual amount) × unit priceb) Environmental business: sales ofenvironmentally-friendly products × profit
margin4. Calculation standards for environmental
conservation effect
The environmental conservation effect is avalue calculated by comparing the amount ofbusiness activities quantified during a stable
period (a period with average fluctuation inbusiness) with the amount quantified during
the targeted period.

85

Eco-protection Data

Energy Type Ratio and Consumption (excluding certain overseas subsidiaries and independent subsidiaries)■ Energy Used by Type for Fiscal 2003
(converted into heating values)
LPG 1%

Light oil and gasoline
Less than 1%

A-grade heavy oil 2%
Kerosene 3%■ Electricity Consumption■ City Gas Consumption
(GWh)

1,200
1,011

1,000

1,042

1,010

1,091

(1,000 m3)

90,00078,59780,00071,20170,00060,000800

82,30761,08850,000600

40,00030,000400

20,000City gas
22%

Electricity
71%

200

10,000

0

2000

2001

2002

0

2003

2000

2001

2002

■ Kerosene Consumption■ A-grade Heavy Oil Consumption(kR)

18,00016,00016,00014,536

14,00013,17912,59913,27512,00010,00010,000

8,000

8,000

6,000

6,000

4,000

4,000

2,000

2,000

0

2000

2001

2002

2003

0

5,261

11,228
7,787

2000

2001

2002

2003
(fiscal year)

86(certified in November of 2003)

Total recycled
waste (tons)
Fiscal 2002
12,426.1

Recycling ratio(%)
Fiscal 2002
98.91

Toppan Printing Communications Co., Ltd.

24,358.5

24,305.3

99.78

Kumamoto plant (Electronics)

17,531.1

17,236.7

98.32

Itabashi plant (Publications Printing)

18,593.2

18,361.4

98.75

Toppan Graphic Co., Ltd.

50,206.3

50,133.5

99.85

Toppan Seihon Co., Ltd.

32,823.1

32,688.9

99.59

Oji plant (Toppan Graphic Co., Ltd.)3,806.0

3,793.6

99.67

Sano plant (Toppan Containers Co., Ltd.)3,306.8

3,295.0

99.64

254.7

254.4

99.90

23,306.6

22,908.4

98.29

652.9

643.8

98.61

Sodegaura beverage plant (Toppan Packaging
Service Co., Ltd.)

3,000

1,000

Total waste
generated (tons)
Fiscal 2002
12,562.9

Sagamihara plant (Packaging)

3,596

2,000

■ Plants Certified for Zero-emissions

San-ei Shiki Ltd.

4,550

4,000

Managing Waste

Asaka plant (Commercial Printing)

5,570

5,000

13,690(fiscal year)

Plant(tons)

6,000

15,892

14,00012,000■ LPG Consumption(kR)

18,0002003(fiscal year)(fiscal year)

Sagamihara plant (Toppan Plastics Co., Ltd.)

110.0

110.0

100.00

Oyodo plant (Osaka Toppan Display Co., Ltd.)4,098.2

4,086.0

99.70

Itami plant (Packaging)

9,311.8

9,275.0

99.61

Kansai commercial printing plant (Takino site)(Commercial Printing)

10,048.9

9,952.6

99.04

Takino packaging plant (Packaging)

3,927.0

3,923.6

99.91

Fukuoka plant No. 2 (Nishinihon)

5,440.0

5,360.0

98.53

0

2000

2001

2002

2003
(fiscal year)

Data Report
Eco-protection Data

Prevention of Pollution and Management of Chemical Substances■ Summary of PRTR Investigation Results at Toppan Fiscal 2003
PRTR No.

Chemical substances(unit: kg/year)

Released
amount

1. Atmosphere

2. Water

3. SoilTransferred
amount insewerage system

Transferred
amount for
disposal

1

Zinc compounds (water-soluble)

11

0

11

0

0

1,792

16

2-aminoethanol

0

0

0

0

373

692

24

n-alkylbenzensulfonic acid and its salts

0

0

0

0

0

12,39440Ethylbenzene

60,37760,377000

13,17443

Ethylene glycol

0

0

0

0

0

28

44

Ethylene glycol monoethyl ether

350

350

0

0

0

1,282

46

Ethylenediamine

63

Xylene

64
68

0

0

0

0

0

1,104

75,01275,01200

015,147

Silver and its water-soluble compounds

0

0

0

0

0

0

Chromium and chromium (III) compounds

49

0

49

0

6

20,183
4,914

69

Chromium (VI) compounds

0

0

0

0

5

108

Inorganic cyanide compounds

0

0

0

0

0

101

132

1,1-dichloro-1-fluoroethane (HCFC-141b)

17,37817,378

0

0

0

4,448

145

Dichloromethane

18,09018,090

0

0

0

4,658

172

N,N-dimethylformamide

0

0

0

0

0

31,000179

Dioxins—(10.3 mg)

(0.062 mg)——(1,339.8 mg)

207

Copper salts (water-soluble)

338

0

338

0

288

305,563224

1,3,5-trimethylbenzene

4,305

4,305

0

0

0

7,002

227

Toluene3,295,938

3,295,938

0

0

218

1,878,396

230

Lead and its compounds

17

0

17

0

0

1,239

231

Nickel

0

0

0

0

0

80

232

Nickel compounds

85

0

85

0

0

806,084

254

Hydroquinone

57

57

0

0

1,641

12,159270

Di-n-butyl phthalate

0

0

0

0

0

89

272

Bis (2-ethylhexyl) phthalate

0

0

0

0

0

1,207

304

Boron and its compounds

210

0

210

0

0

2,342

309

Poly (oxyethylene) = nonylphenyl ether

6,565

6,565

0

0

0

3,091

310

Formaldehyde

119

119

0

0

0

262

311

Manganese and its compounds

459

0

459

0

0

9,914

313

Maleic anhydride

0

0

0

0

0

0

Notes: *Period of computation: April 1, 2003 to March 31, 2004.
*Subjects of notification: 30 substances above.
*Operational sites covered: Operational sites that handle 1.0 t/year or more of specified class I designated chemical substances annually (and 0.5 t/year or more of class I designatedchemical substances). Excluding certain overseas subsidiaries and independent subsidiaries.
*The amount transported out from the operational sites as wastes (including inverse onerous contract and charge-free recycling) is accounted for as a transferred amount for disposal.

Atmospheric Emissions (excluding certain overseas subsidiaries and independent subsidiaries)■ Ratio of Greenhouse Gases(unit: ratio: % total: t-CO2)

Fiscal
year

CO2

CH4

N2O

Total

2000

99.89

0.00

0.11

641,227

2001

99.89

0.00

0.11

652,256

2002

99.90

0.00

0.10

668,964

2003

99.91

0.00

0.09

682,959

Note: Ratio by CO2 conversion■ Breakdown of Greenhouse Gas
Emissions by Source
Fiscal Electricity
year
use

■ NOx and SOx Emissions(unit: ratio: % total: t-CO2)

300

Fuel
use

Waste
incineration

Total

250
200

2000

60

35

5

641,227

2001

59

36

5

652,256

2002

59

36

5

668,964

2003

60

35

5

682,959

NOx

237

244

SOx (tons)

243
201

150
100

Note: Ratio by CO2 conversion

76

68

59

50
0

2000

2001

2002

45

2003
(fiscal year)

87Input/Output Data by Site
■ INPUT
Site
Location

Overall

Main productAsakaplants

SapporoSendai

Gunma

TPC*1

RanzanSapporo City,
Hokkaido

Sendai City,
MiyagiOra County,
Gunma

Sakado City,
SaitamaHiki County,
Saitama

Catalogs

Catalogs,
packaging

Packaging

Books,
catalogs

Securities

Niiza City,
SaitamaSecurities,
catalogs,
electronicparts

Total energy consumption (1,000 GJ)

18,423

94

194

687

864

157

1,098

Electric energy (1,000 GJ)

13,544

69

139

500

558

90

858

Fossil fuel energy (1,000 GJ)

4,879

25

55

187

306

67

240

Water consumption (1,000 m3)

14,698

14

37

559

169

38

782

Industrial-use water (1,000 m3)

1,418

—

11

243

—

—

—

Municipal water (1,000 m3)

3,145

7

26

108

169

38

26

Groundwater (1,000 m3)

10,135

7

—

208

—

—

756

(Utilization of rainwater) (1,000 m3)

15

—

—

—

—

2

—

(Utilization of water circulated onpremises) (1,000 m3)

787

—

—

34

—

—

—

853,359

3,943

8,174

45,37337,133

7,458

45,525

5

—

0

0

0

0

1

Atmosphere NOx emission (tons)

224

1

2

25

8

11

17

SOx emission (tons)

67

0

—

7

—

0

0

Emission of dioxins (g-TEQ)

0.013

—

—

0.002

—

—

0.002

Total water discharge (1,000 m3)

12,011

10

27

463

66

17

543

Public water system (1,000 m3)

8,721

—

—

463

—

—

7

Sewage system (1,000 m3)

3,290

10

27

—

66

17

536

62

—

—

—

—

—

16

2,099

3

9

95

103

23

224

BOD discharge (tons)

245

—

2

5

10

—

50

COD discharge (tons)

125

—

—

—

—

—

—

Nitrogen discharge (tons)

44

—

—

8

—

—

11

Phosphorous discharge (tons)

3

—

—

0

—

—

1

Waste discharge (tons)

464,038

2,440

3,883

6,186

25,254446

16,187

Recycling (tons)

449,304

2,428

3,370

5,687

25,253320

16,093

Final waste landfill (tons)

14,734

12

513

499

0

126

94

EnergyWater■ OUTPUT
CO2 emission (t-CO2)
Emission of substances destructive
to the ozone layer (ODP-t)

Underground penetration (1,000 m3)
Water
systemand soil

Waste

On-site evaporation (1,000 m3)*1 TPC: Toppan Printing Communications Co., Ltd.
*2 On April 1, 2004, the Itabashi plant became Toppan Printing Itabashi Co., Ltd.
Note: Items marked “—” are not covered under the laws and ordinances governing the site. A zero indicates a negligible measured value (close to zero).
Fifteen major sites in Japan are included.

88

Data Report
Eco-protection Data

Satte

Itabashi*2

Kashiwa

Satte City,
Saitama
Wallpaper,
optical parts

Kashiwa City,
Itabashi
Chiba
Ward, Tokyo
Decorative
papers for
Booksbuilding
interiors

Fukuoka
No. 1

Kumamoto

Kanzaki
Kato County,
Nagoya City, Yokaichi City,County, Hyogo
Hyogo
Aichi
Shiga

Koga City,
Fukuoka

Tamana City,
Kumamoto

NagoyaShiga

Catalogs

Takinoplants

FukusakiElectronicparts

Packaging

Securities,
catalogs,
packaging

PackagingElectronic
parts

Others75 sites

465

493

1,145

162

1,086

536

524

338

689

9,891

282

232

485

118

941

497

430

165

550

7,630

183

261

660

44

145

39

94

173

139

2,261

98

223

405

80

1,930

148

47

72

1,875

8,221

—

—

338

—

—

130

—

—

—

696

98

21

67

—

27

18

47

16

—

2,477

—

202

—

80

1,903

—

—

56

1,875

5,048

—

—

—

—

—

—

—

—

—

13

—

—

—

—

341

—

—

—

—

413

20,797

23,59952,506

7,133

46,05836,94822,394

15,24730,487450,584

—

—

1

—

—

0

0

—

—

3

7

6

34

1

9

13

4

6

2

78

0

2

—

0

0

3

0

0

17

38

—

—

—

0.005

—

0.001

—

—

—

0.003

37

147

342

72

1,567

125

28

57

1,833

6,677

37

110

—

72

1,567

125

4

31

1,833

4,472

—

37

342

—

—

—

24

26

—

2,205

—

—

—

—

—

—

—

0

—

46

61

76

63

8

363

23

15

15

42

976

0

3

46

1

10

1

—

—

8

109

0

—

—

2

13

1

—

—

—

109

0

1

—

1

5

—

—

—

11

7

0

0

—

0

0

—

—

—

0

2

4,767

4,011

18,096

4,164

8,549

6,208

15,721

4,858

17,620325,649

4,222

3,605

18,085

4,137

6,709

5,093

15,615

3,777

17,410317,500

545

406

11

27

1,840

1,115

106

1,081

210

8,150

89

Eco-creativity Data/Environmental Communication Data

Development of Environmentally-friendly Products■ List of Environmentally-friendly Products (as of end of March 2004)
Business
field

Toppan’s environmentallyfriendly product

Main environmental claims

Business
field

Toppan’s environmentallyfriendly product

Securities
Printing

Ecothrough Card

Suitability for disposal

Packaging

TT Paper Can

Paper IC Card

Use of recycled materials

Easy separation anddisassembly

BE Card

Biodegradability

NeovertUse of recycled materials

Eco Holosticker

Biodegradability

Ecotainer

Bulky Waste Processing Sticker

Resource-saving (reduced
amount of materials used)

Resource-saving (reduced useof exhaustible resources)

TL-PAK

Recycleco Gift Card

Use of recycled materials

Resource-saving (reduced useof exhaustible resources)

Card for ETC

Suitability for disposal

EP-PAK (EP-GL)

Resource-saving (reduced
energy usage in logistics)

Hanshin Expressway Public
Corporation Mutlipass

Use of recycled materials

EP-PAK (Al)Resource-saving (reduced
energy usage in logistics)

Rewritable Paper

Long-life productsStand up Laminated Tube

Resource-saving (reduced
amount of materials used)

Commercial Toppan Green Paper 100
Printing
Toppan Green Paper Bagasu

Use of recycled materials

Recyclen Cap

Eco Pack (life-size POP display)

Resource-saving (reduced
amount of materials used)

Easy separation anddisassembly

AP CartonsAiba Environmentally-friendly
Exhibit System

Reusability

Resource-saving (reduced
energy usage in logistics)

Micro-FlutePaper Desk Calendar

Use of recycled materials

Resource-saving (reduced
energy usage in logistics)

Ecology Calendar

Use of recycled materials

TP-Tray

Recyclability

Eco POP

Use of recycled materials,
Suitability for disposal,
Energy-saving

Corrugated Absorber

Recyclability

AD-CaseResource-saving (reduced
amount of materials used)

Eco Pack Stand

Resource-saving

CartocanRecyclability

Eco Pack Multipanel

Reusability

Use of recycled materials

Eco Floor Sticker

Suitability for disposal

Paper Cup made from recycled
paper

Cerap

Suitability for disposal

Eco Pack End Panel

Resource-saving

Cup made from Tree Free
paper

Resource-saving (use of
by-products)

Eco Pack Stand, Round-type

Resource-saving

Biodegradable Package

Biodegradability

Cylindrical Paper Containers

Resource-saving (reduced
energy usage in logistics)

Coated Barrier Film

Suitability for disposal

GL-C Bottle

Resource-saving

GX Film

Resource-saving

Jar Plus

Resource-saving

Tray All

Easy separation anddisassembly

Gl Film Lined Paper Cup

Resource-saving

Double-Wall Barrier Cup

Resource-saving

Oil-Proof Paper

Use of safe materials,
Suitability for disposal

Functional Coated Paper

Recyclability

In-Mold Barrier Cup

Resource-saving

Tamper Evident Recyclen Cap

Easy separation anddisassembly

Lenticular Screen

Resource-saving, Use of safe
materials

Antireflection Film

Resource-saving

Publications Recycled Vegetable-Oil Ink
Printing
Polyurethane Reactive-Hot
MeltElectronics
Interior
Decor
Materials

Packaging90

Use of recycled materials

Main environmental claims

Use of recycled materials
Easy separation anddisassembly

Non-Vinyl Chloride Lenticular
Lens

Suitability for disposal

Low-halogen Printed–wiring
board

Suitability for disposal

Toppan Ecowall

Reduced release of chemical
substances

Toppan Ecofoil

Reduced release of chemical
substances

Functional Ecofoil (Airfeel,
Mirrafeel, Purefeel)

Suitability for disposal

NaturArt

Reduced release of chemical
substances

Coordination Floor

Reduced release of chemical
substances, Long-life products

PURE ALLUse of safe materials,
Suitability for disposal

GL Family

Suitability for disposal

Standing Pouch for Refill

Resource-saving (reduced
amount of materials used)

Bottled Pouch

Resource-saving (reduced
amount of materials used)Thin-Wall Bottle

Resource-saving (reduced
amount of materials used)

Plastic Container made from
Recycled Materials

Use of recycled materials

Ecogloss (environmentallyfriendly gloss finishing)

Resource-saving (reduced useof exhaustible resources), Useof recycled materials

Recording Media Packaging

Resource-saving (reduced useof exhaustible resources)

Optronics

Data Report
Eco-creativity Data/Environmental Communication Data

Experimental LIME Data
■ Ecofoil■ Vinyl Sheet

Outside Cost Comparison by Process
Incineration 38%

Material production 55%

Material production
51%

Landfill disposal
34%

Landfill
disposal

Product transport 2%
Waste product transport 2%

Assembly 7%

Material production
32%

Material production
8%
Assembly 3%

Landfill
disposal

Assembly 7%

Producttransport 2%

Landfill disposal
40%

Incineration

Waste
producttransport
2%

Outside Cost Comparison by Process

Waste
producttransport
3%

Incineration

Assembly
22%

Producttransport 3%

Incineration 89%

Environmental Communication■ Prizewinning Slogans in Fiscal 2004
No. 1 Slogan“Save energy your way. Cool down
the overheated Earth”■ Main Awards Received for Toppan’s Environmental
Conservation Activities
AwardsSeiji Yanagisawa (Securities
Printing Division)

July 1991

Minister of International Trade and Industry’s Award for Plants
Distinguished in Greening Activities—Fukusaki plant“Foster an environmental culture.
Leave a pleasant Earth for the future”

Hiroshi Ueno (Toppan Containers
Co., Ltd.)

February
1992“Making products means making theenvironment: An Eco company that
supports the Earth”

Yasumitsu Araki (Information &Publications)

Director’s Award, Kanto Bureau of International Trade andIndustry for Plants Distinguished in Energy Management—
Itabashi plantFebruary
1995

Encouragement Award, Saitama Prefecture Global
Environmental Awards—Toppan Graphic Co., Ltd.

Outstanding Slogans

April 1996 Fuji Sankei Group Award, the 5th Global Environment Awards

Exemplary Slogans

February
1999

The Highest Award, Chairman’s Awards, Committee on the
Rationalization of Energy Consumption in the Kanto Region—
Toppan head office, Akihabara“Recycle more. Keep the Earthnatural for the future”

Nobuaki Nishioka (Packaging
Division, Kansai Division)“Understanding is not enough.
Compliance with environmental rules
produces new value”

Hiroaki Toyama (Kansai
Commercial Printing Sub-division)“Each person who makes anenvironmental improvement is achampion of the Earth”

Minoru Hatano (Toppan Hokkaido
Insatsukako Co., Ltd.)“A will to protect the environment
and the knowledge to nurture it:
A little effort goes a long way”

Kazuki Yoshino (Packaging
Division, Manufacturing andTechnology Division)■ Toppan’s Participation in Environment-related Organizations“Conserve electricity, save energy,
and recycle: It all goes together.
One day, one ecology.”

Taichi Sato (NEC Toppan Circuit
Solutions, Inc.)

Organization
Green Marketing Association

Title
Fiscal year
1999
IThe planning, creation, production, and sales of Toppan
brand paper TOPPAN GREEN PAPER 100
IIntroduction of environmental accounting and publishing ofEnvironmental Report
IEnhancement of the company’s environmental brand image
through the holding of the environmental communication
exhibition
IDevelopment of environmentally-friendly Ecogloss products
ILowering costs through the introduction of solid fuelproduction (RPF)
IIntroduction and stable operation of new wastewater
processing system during the move of Toppan Gravure
Prepress Co., Ltd.

2001

IEnhancement of environmental management through the
publication of Environmental Report 2001

2002

IIntroduction of an environmentally-friendly gravure printing
system at the Matsuzaka plant
IEnhancement of the company’s environmental brand image
by the acquisition of the printing industry’s first Chain of
Custody (CoC) certification from the Forest StewardshipCouncil (FSC)

2003

March
2003

Kanagawa Prefecture Pollution Prevention Service Award(Sagamihara plant)

May 2004 Excellence Award at the 7th Environmental Report Awards■ President’s Awards (Ecology Awards)

2000

December The Excellence Award at the 5th Environmental Report Awards
2001
2001

Organization
Network for Sustainability
Communication

WWF (the World Wide Fund for
Nature) Japan

Collect-and-Use Recycling
Association

Nikkei BP Eco Management Forum

Environmental Management andCommunication Study Group

Green Purchasing Network
UNU Zero Emissions Forum

Special Project on Eco-Efficiency
and Eco-Design

Global Reporting Initiative Forum
Japan

Japan for Sustainability

Society for Chemical Risk

Japan LCA Forum■ Number of Environmental Reports Published(copies)

Fiscalyear
Japanese

1999

2000

2001

2002

20,00020,00020,00015,0002004(planned)
15,00015,000English

—

2,000

5,000

3,000

3,000

2003

3,000

Note: Became the CSR Report from 2004.

■ Number of Site Reports PublishedFiscal year

2000

2001
2

(operational sites)

2002
5

2003
7

9

2004
(planned)12

INo awards presented

91

GRI Guidelines Reference Index

Vision and Strategy

Economic Performance Indicators

Social Performance Indicators

1.1.

P. 2–3

Core Indicators

Core Indicators

1.2.

P. 2–3Customers

Employment

Additional Indicators

Additional Indicators

EC1. P. 80

LA1. P. 80

ProfileEC2. —

LA2. P. 80

2.1.

P. 78

Suppliers

2.2.

P. 4, 6–7

EC3. P. 29

2.3.

—

EC4. —

LA4. —

2.4.

P. 78

Employees

Health and Safety

2.5.

P. 78–79

EC5. —

LA5. P. 40, 81

LA14. —

2.6.

P. 8

Providers of Capital

LA6. P. 40

LA15. P. 40, 81

2.7.

P. 6–7EC6. —

LA7. P. 81

2.8.

P. 78–80

EC7. —

LA8. —

2.9.

P. 7

Public Sector

2.10. P. 1

EC8. —

2.11. —

EC9. —

2.12. —

EC10. —

2.13. P. 79

Indirect Economic Impacts

2.14. —

LA12. P. 39–40, 81

Labor/Management Relations
EC11. —

LA3. P. 39

LA13. —

Training and Education
EC12. —

LA9. P. 80

LA16. P. 38–39, 80
LA17. P. 38–39, 80

Diversity and Opportunity
LA10. P. 36–39, 80–81
EC13. —

2.15. —

LA11. P. 80
Human Rights: Strategy and Management

2.16. —

Environmental Performance Indicators

HR1. P. 5, 24–25, 81

2.17. P. 1

Core Indicators

HR2. P. 28–29

2.18. P. 1, 85

Materials

HR3. P. 28–29

2.19. —

EN1. —

Non-discrimination

2.20. P. 1

EN2. P. 60, 62

HR4. P. 5, 24–25, 81

2.21. P. 1

EnergyFreedom of Association and Collective Bargaining

2.22. P. 1

EN3. P. 48–49, 59, 86, 88–89 EN17. P. 59–63

HR5. P. 39

EN4. —

EN18. —

Child Labor

EN19. —

HR6. —

Governance Structure andManagement Systems

Water

3.1.

P. 8

EN5. P. 48–49, 88–89

3.2.

Additional Indicators

HR8. P. 5, 24–25, 36–38

Forced and Compulsory Labor
EN20. —

HR7. —

P. 8

EN21. —

Disciplinary Practices

3.3.

P. 55

EN22. P. 48, 62

3.4.

P. 8–10

Biodiversity

3.5.

—

EN6. —

EN23. —

3.6.

P. 8, 55

EN7. —

EN24 —

3.7.

P. 2–5, 24, 50

EN25. —

3.8.

—

EN26. —

HR12. —

3.9.

P. 7

EN27. —

HR13. —

3.10. —

EN28. —

3.11. —

EN29. —

HR9. —
HR10. P. 25
Security Practices
HR11. —
Indigenous Rights

HR14. —
Community

3.12. —

Emissions, Effluents, and Waste

3.13. P. 10, 24–29, 56–57

EN8. P. 16, 48–49, 59, 63, 86, 88–89

3.14. —

EN9. P. 16, 48–49, 59, 63, 86, 88–89

3.15. P. 43, 67, 73, 91

EN10. P. 16, 48–49, 59, 63, 86, 88–89

3.16. P. 28–29, 82

EN11. P. 48–49, 60, 88–89

EN31. —

SO3. P. 24

3.17. —

EN12. P. 48–49, 88–89

EN32. —

Competition and Pricing

SO1. P. 56, 72
EN30. P. 16, 48–49, 59, 63, 86, 88–89

SO2. P. 5, 24–25, 28–29
Political Contributions

3.18. —

EN13. —
3.19. P. 25, 36–37, 54, 56, 58, 64 Suppliers
3.20. P. 27, 31, 56, 80–81, 85

SO4. P. 14–15, 91

Bribery and Corruption

SO5. —
SO6. —
SO7. P. 24, 28–29

EN33. —

Products and Services

Customer Health and Safety
PR1. P. 30–31

EN14. P. 66–67

PR4. —
PR5. —

EN15. —

PR6. P. 27, 64–67, 71–73, 82, 90

Compliance

Products and Services

EN16. P. 84

PR2. —

Transport

PR7. —
PR8. P. 30–31

EN34. P. 63

AdvertisingOverall

PR9. —
EN35. P. 53, 85

PR10. —
Respect for Privacy
PR3. P. 26–27, 82

Note: The above reference index indicates pages containing information relating to required items under the GRI guidelines.
These references are not to be construed as guarantee that the information is based on the guidelines.

92

PR11. —

CSR Report 2004

Questionnaire on the CSR Report 2004
Thank you for reading Toppan’s CSR Report 2004. We would appreciate it if you could answer
the following questions and fax the completed questionnaire to the number below.
All feedback received will be helpful in the production of the next CSR Report.

Compliance Department, Legal Affairs Division, Toppan Printing Co., Ltd.

FAX

+81-3-3835-1447

Q1. What did you think about the readability of the CSR Report?
Toppan’s stance on social responsibility
Descriptions of Toppan’s activities

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Average

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Very hard to understandQ2. What was your impression of the contents of the report?
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Q3. Which of the following topics in the CSR Report made a strong impression? (Please circle all that apply.)
1. Executive Message
4. Roundtable Discussion:
What We Expect from CSR
7. Respecting and Leveraging Human Assets
10. Environmental Management Activities
13. Environmental Communication Activities

2. Business Activities and Social Responsibility
5. Compliance3. Topics 2003
6. Improving Customer Satisfaction

8. Activities for Society and Culture
11. Eco-protection Activities
14. Other (9. Toppan’s Environmental Vision
12. Eco-creativity Activities)

Q4. How do you rate Toppan’s social responsibility efforts? Please tell us the reason for your rating.
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Good

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Reason(s):Q5. Please let us know what other kinds of information you would like to see in this report.
Do you have any other ideas on ways to improve the report?

Q6. From what perspective did you read this CSR Report?
As a CSR specialist
As a corporate employee in charge of CSR activities
As a shareholder or investor
As a student
As a resident living near Toppan facility
As a member of an environmental NPO, etc.

As a civil servant in public administration
As a journalist
Other ()

Q7. How did you first learn about this CSR Report?
Toppan’s website

Newspaper

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Q8. Did you have any other impressions or opinions about this report? Please let us know.

Thank you very much for your cooperation. Please tell us about yourself.
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FemaleOccupation/Company nameDept./Title)