CSR REPORT 2014
Report on Corporate Social
Responsibility Activities

IEditorial Policy
Toppan prepares this corporate social responsibility (CSR) report in the hopes ofencouraging dialogues with a wide range of people, especially those who have aninterest or stake in Toppan’s CSR activities. Toppan reports its activities in line withthe seven core subjects set under the International Organization for Standardization (ISO) 26000, an international standard on social responsibility formulated bymultiple global stakeholders.

IReliability
KPMG AZSA Sustainability Co., Ltd. provides independent assurance for this report.
As a testament to the reliability of the sustainability information presented in thereport, Toppan is authorized to attach the following mark. Any report bearing thismark meets the Sustainability Reporting Assurance and Registration Criteria established by The Japanese Association of Assurance Organizations for Sustainability
Information (http://www.j-sus.org/).

IPeriod Covered
This report mainly covers activities in fiscal 2013 (from April 2013 to March 2014),
though information on prior and later years is also included in parts.
IScope and Boundary of this Report
In principle, this report covers the CSR activities of Toppan Printing Co., Ltd. (“theCompany”) and Group entities consolidated for accounting purposes. Most of theinformation on personnel applies to personnel within Toppan Printing Co., Ltd.,the parent company. The scope of the environmental performance data on pages
34-41 includes Toppan Printing Co., Ltd. and 18 domestic manufacturing subsidiaries subject to the Company’s environmental targets. These subsidiaries shareimportant roles in the Company’s environmental conservation efforts. The environmental performance data of NEC Toppan Circuit Solutions, Inc. has been
­excluded since October 2013, when all shares of that company were sold. The
environmental performance data of the Toppan Group, including the overseas
subsidiaries, are reported in CSR Report 2014: Detailed Data.
ICSR Report 2014: Detailed Data
A PDF file with detailed and reference data not shown in this report is downloadable from Toppan’s CSR website: http://www.toppan.co.jp/english/csr/.

IEye-friendliness and Readability
This report considers eye-friendliness and readability in accordance with Toppan’s
in-house guidelines. It also incorporates universal-design displays for as many different types of people as possible, regardless of individual differences in color perception. The universal design in this report has been reviewed and certified by the
Color Universal Design Organization (CUDO), a nonprofit organization, on entrustment by Toppan.
IURLs for Relevant Information•CSR information: http://www.toppan.co.jp/english/csr/
(If erroneous entries or misprints are found after CSR reports are issued, the related
information will be shown here.)•IR information: http://www.toppan.co.jp/english/ir/•Corporate governance reports: http://www.tse.or.jp/listing/corpgov/ (in Japanese)•Financial statements: http://disclosure.edinet-fsa.go.jp/ (in Japanese)
Publication Dates (English version)

ISelecting the Information Presented in this Report
In choosing the information for this report, Toppan assesses the “materiality” ofthe information for society and the Company itself. Toppan considers the following
points in particular: Opinions gleaned from dialogues; information from NPOs,
NGOs, CSR-related organizations, and news agencies; responses to its CSR
report questionnaires; and questionnaire topics from third-party organizations.
IGuidelines and Standards Considered•The United Nations Global Compact•ISO 26000•Global Reporting Initiative (GRI) Sustainability Reporting Guidelines 2006
•Environmental Reporting Guidelines (fiscal year 2012 version) from the Ministry of
the Environment of Japan

Previous report: October 2013
Current report: October 2014
Next report: October 2015 (planned)

Contact Information
CSR Promotion Department, Public Relations Division
Toppan Printing Co., Ltd. (Tokyo, Japan)
Email: csr@toppan.co.jp

The United Nations Global Compact is a voluntary policy initiative for businesses and organizations to enlist their participation in theestablishment of a globally recognized practical framework under which every business and organization commits to the vision ofsustainable development by implementing responsible, creative leadership initiatives and acting as responsible members of society.
Toppan participates in the United Nations Global Compact, supports the 10 principles of the Global Compact in the four areas of humanrights, labour, environment, and anti-corruption, and implements these principles in its own corporate activities.
Human Rights
Principle 1: Businesses should support and respect the protection of internationally proclaimed human rights; andPrinciple 2: make sure that they are not complicit in human rights abuses.
LabourPrinciple 3: B usinesses should uphold the freedom of association and the effective recognition of
the right to collective bargaining;
Principle 4: the elimination of all forms of forced and compulsory labour;
Principle 5: the effective abolition of child labour; andPrinciple 6: the elimination of discrimination in respect of employment and occupation.
Environment
Principle 7: Businesses should support a precautionary approach to environmental challenges;
Principle 8: undertake initiatives to promote greater environmental responsibility; andPrinciple 9: encourage the development and diffusion of environmentally friendly technologies.
Anti-Corruption
Principle 10: Businesses should work against corruption in all its forms, including extortion and bribery.

CONTENTS

Group Business Outline

2

Executive Message

4

Toppan’s CSR Activities

6

Special Report 1: S upporting Employees withChildren

8

Special Report 2: C
 SR Procurement: Working with
Suppliers to Comply with Global
CSR Standards

10

CSR Activity Digest 201312

Initiatives at Toppan and the Seven Core Subjects
under ISO 26000
14
Organizational Governance15

Human Rights

18

Labor Practices

20

Fair Operating Practices

24

Consumer Issues

28

Community Involvement and Development

32

The Environment
Toppan’s Environmental Activities

34

Environmental Management Activities

35

Toppan’s Environmental Burden andEnvironmental Impact

36

Eco-protection Activities

37

Eco-creativity Activities /Environmental Communication Activities

41

Independent Assurance

42

Independent Assurance Report

43

Group Business Structure

44

TOPPAN CSR REPORT 20141

Group Business Outline

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

Group Profile
Number of employees(nonconsolidated)
8,604 (as of the end of March 2014)
Number of employees(consolidated)
48,751 (as of the end of March 2014)

The Toppan Group comprises Toppan Printing Co., Ltd. (“the Company”)
and 180 related companies (154 subsidiaries and 26 affiliates) engaged inmanifold businesses in three fields: Information & Communication, Living
Environment, and Material Solutions.
The positioning of the Company and related companies in these fields
is outlined on page 44.

Capital (nonconsolidated)
104.9 billion yen

President & Representative
Director
Shingo Kaneko

Business Fields
Information & Communication
Providing solutions to increase the value of information and effectively deliver information for customers who require smooth communication.

Secure Business

Content Business

Living Environment

Material Solutions

Providing a wide range of products and services to create living environments that offer comfort and peace of mind.

Using printing technologies to develop products related to displays, semiconductors, functional products, energy, and more.

Packaging

2

Marketing

TOPPAN CSR REPORT 2014

Display Related

Semiconductor Related

Functional Product and Energy
RelatedInterior Décor Materials

Net Sales(billion yen)

Q Consolidated Q Nonconsolidated

2,000

Operating Income or LossNet Income or Loss(billion yen)(billion yen)

Q Consolidated Q Nonconsolidated

60

1,500 1,506.7

1,556.4 1,510.4 1,502.3 1,532.0

45.0

45
38.2

895.5

885.9

849.2

819.9

815.7

15

24
31.5

30
1,000

4.4

2010

2011

2012

2013
(fiscal year)

2009

16

20.6 19.2

18.5

15.1

11.7 12.4 12.1

7.7

2010

2011

0.5

0

–7.1

–15
2009

32.0

8

0

0

35.7

15.3
6.6

500

Q Consolidated Q Nonconsolidated

32

–3.2

–8
2012

2013
(fiscal year)

3.0

2009

2010

2011

2012

2013
(fiscal year)

Number of Employees by Business Field (consolidated)

Number of Employees
Q Consolidated Q Nonconsolidated
50,00047,650 48,197 47,872 48,878 48,751

Material Solutions
8,576

Company-wide
positions
1,035

40,00030,00020,00010,000

8,769

8,633

8,508

8,587

8,604

0
2009

2010

2011

2012

2013
(fiscal year)

Information &Communication
29,984

Living Environment
9,156

Net Sales by Business Field

Capital Expenditure

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

Material Solutions
352.1 (23%)

80

76.8
68.0

60

65.0

66.8

1,665.6 1,694.3

72.1

1,500

40

0.7

1,712.3
2.0
1.2
1.0

0.7
0.2

0

500

20
Information &Communication
907.3 (59%)

1,586.8 1,633.0
1.2

1,000

Living Environment
272.5 (18%)

(%)

3.0

2,000

100

0

0
2009

2010

2011

2012

2009

2013
(fiscal year)

2010

2011

2012

−1.0
2013
(fiscal year)

Net Sales by Region

R&D Expenses

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

Other regions
56.1 (4%)

Asia, excludingJapan
193.7 (12%)

35
28

800

24.4
21

23.4

21.4

20.6

19.8

864.0

866.2

888.4

2009

2010

2011

2012

2013
(fiscal year)

8.0

4.0
1.6

0.4

2009

2010

2.7
2.0

1.6

0

0

0

913.1

6.0

2.5

200

7

1,282.1 (84%)

874.0

600
400

14

Japan

(%)

1,000

2011

2012

–2.0
2013
(fiscal year)

Note: The number of employees is the number of employees working at the Group. The number of non-regular employees for fiscal 2013 stood at 7,627 on aconsolidated basis (the average number of employees throughout the fiscal year, including part-time workers but excluding temporary staff).

TOPPAN CSR REPORT 2014

3

Executive Message

Contributing to Fulfilling Lifestyles

Movements were mixed in the global economy for fiscal
2013. In the U.S., steady personal consumption kept theeconomy on a recovery track. In Europe, however, lingering uncertainty over the Southern Europe debt crisis thwarted
hopes for a complete recovery from long-term stagnation.
Growth also slowed in China and Southeast Asia.
Japan’s economy moved into a gradual recovery trend.
The government’s economic policies helped correct the
drastically elevated yen, while consumer spending andcorporate earnings both recovered. Over the longer term,
however, pressures such as sharply rising prices for raw
materials and fuel cloud the outlook for the Japanese
economy.
In light of this, we have been striving to improve ourbusiness performance by addressing three management
challenges. The first challenge is to advance our Groupwide structural reform. Improvements in management­efficiency will enable us to establish a stronger, sounderbusiness structure that will keep us profitable in today’s
drastically changing markets and shift our management
focus to enhanced value for our corporation and busi-

4

TOPPAN CSR REPORT 2014

nesses. The second is to create new businesses and newmarkets by developing business models that meet theever-changing demands of our time using the printing­technologies we have cultivated since our founding. The
third is to accelerate global business expansion targeting­sustainable operations by taking advantage of businessalliances and M&As and by restructuring our sales andproduction structures mainly in Asia and other growing
markets.
Our business slogan for 2014 is “Full speed ahead—
Let’s accelerate growth with printing technologies.” We
continue taking on new challenges based on this slogan.
By steering growth in the directions mapped out for thethree management challenges, we are shifting into higher
gear to gain momentum for a significant leap forward.

To Create Business Opportunities forFaster Growth
Paradigm shifts in our business environment will bring
opportunities for us to grow faster. We define these changes
as “three revolutions:” 1) the energy revolution, the changeover from fossil resources to renewable energy; 2) the
packaging revolution, the replacement of glass b­ ottles andmetal cans with new types of packaging across the globe;
and 3) the information revolution, the switch from paperbased media to digital media such as the Internet andsmartphones.
I believe we can exploit the huge opportunities thesethree revolutions bring by engaging highly diverse humanresources and building an environment in which they canfully demonstrate their abilities and skills.
At Toppan we do business with companies in every sortof industry. By engaging human resources with greater
diversity, we can propose total solutions for the many
­different challenges our client companies face and devise
custom-fit solutions to the unique problems individual companies come up against.
In fiscal 2013 Toppan became one of the “Diversity
Management Selection 100,” a group of companies­
selected and awarded by the Ministry of Economy, Tradeand Industry of Japan in recognition of their use of diverse
human resources to innovate. We will continue pursuing
diversity management in the years to come.

To Be a Company that Grows Steadily
with Society

childcare leave and improved the system of reduced working hours for employees with childcare responsibilities.
A childrearing support program was launched in fiscal 2012

TOPPAN VISION 21 is positioned as the foundation for allof our corporate activities. This vision consists of a Corporate Structure (the Corporate Philosophy, the Corporate
Creed, and a set of Conduct Guidelines defining the values
and standards we should respect) and business fields
based on the Corporate Structure.
In striving to make TOPPAN VISION 21 a reality, I am
convinced that we must accomplish the three management
challenges and fulfill our social responsibility as a corporation in order to help solve social issues and drive our growthin step with all of society.
The United Nations Global Compact is an invaluable
guideline for us as we undertake our journey towards thisend. Toppan has been participating in the United Nations
Global Compact and supporting the 10 principles of the
Global Compact on human rights, labour, environment,
and anti-corruption since September 2006. I will continue
espousing the United Nations Global Compact and shaping our corporate social responsibility (CSR) activities
accordingly.
The International Organization for Standardization (ISO)
26000 Guidance on Social Responsibility (international
standard for organizations) was issued in 2010 to provide
guidelines with which every type of organization should
comply in order to operate in socially responsible ways.
The standard condenses various social issues to beaddressed. Convinced that any help towards solving theseissues will bring us closer to implementing the United
Nations Global Compact, we incorporated ISO 26000 into
our CSR management practices in fiscal 2011 and havebeen pushing forward with CSR activities by piecing
together a clear picture of the social issues we should help
solve and the social responsibilities we should fulfill.

to help working parents cope with the stresses of parenting and to relieve the anxieties of employees on childcare
leave who are worried about their return to the workplace.
In fiscal 2013 we invited a lecturer to hold a seminar inthis program. A large number of both female and male
employees engaged in parenting attended. This indicatesa growing interest in work-family balance among our
employees.
We have also been facilitating CSR procurement incooperation with business partners in an effort to fulfill our
corporate social responsibilities not only within the Group,
but throughout the entire supply chain. We revised andrenewed the Toppan Group CSR Procurement Guidelines
in January 2014 to work on newly defined issues that ourcustomers and international social standards require companies to address. The Basic Procurement Policy wasrevised and the CSR Procurement Standards were reorganized into two categories aligned with the latest global
standards: the Basic Procurement Standards and the­Procurement Standards Concerning Human Rights, Labor,
the Environment, and Anti-Corruption. Every business partner is asked to comply with the revised guidelines. We, inturn, will collaborate more closely with business partners
throughout the entire supply chain to better fulfill our corporate social responsibilities.

Towards a Sustainable Society
We support employees with families to help them strike abalance between work and parenting. This support exemplifies our efforts to create an environment in which humanresources of great variety can exploit their abilities to thegreatest possible extent. We have extended the period ofWith Our Stakeholders
At Toppan we would like to continue disclosing information
through this CSR report, one of our most valuable tools forcommunicating with our stakeholders. I am eager to hear
your candid opinions about this report.
We will keep up our work towards the creation of fulfilling lifestyles in a sustainable society. We rely on your ongoing support and guidance.
July 2014

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

TOPPAN CSR REPORT 2014

5

Toppan’s CSR Activities

Toppan’s Ideal “Corporate Structure”
TOPPAN VISION 21 sets forth the basic concept and directionality for the continual growth of the Toppan Group in harmony
with society and the global environment.
The vision consists of a “Corporate Structure” and a setof “Business Fields.” The Corporate Structure specifies ideals
and important values and concepts for the Group.
Toppan believes that endeavors to realize the Corporate
Structure will support the sustainable development of theGroup and society as a whole.

 orporate Philosophy, Corporate Creed, andC
Conduct Guidelines
The Corporate Structure is made up of three elements: Toppan’s
Corporate Philosophy, the Corporate Creed, and the Conduct
Guidelines. These elements specify a complete set of values,
standards, and guidelines for the operations of the Toppan
Group.
Toppan established the Corporate Philosophy, the top
concept underpinning all of Toppan’s corporate activities, topromote continual development as a socially valuable corporation. The Corporate Creed expresses the standards to be
kept foremost in mind when performing business operations.
Built on the Corporate Philosophy and Corporate Creed, theConduct Guidelines set out the basic concepts and behavioral
norms for Toppan employees both as businesspeople and as
members of society.

Toppan’s Ideal “Corporate Structure”
Corporate Philosophy
Each of us shallreciprocate our customers’continued trust,create dedicated products byharnessing our vibrant knowledge
and technology,

Corporate Creed

Conduct Guidelines

To build our customers’ trust though
sincerity, enthusiasm, and creativity inall our corporate endeavors.

Chapter 1: Basic Principles
1. Respecting basic human rights
2. H
 aving high ethical standards
and acting as a responsible
member of society
3. C omplying with laws andcompany rules and conducting
fair business operations
4. A
 voiding all links with antisocialgroups
5. S triving to improve quality
and providing creations
that contribute to customer
satisfaction
6. R ecognizing the importance of
information related to businessand managing it appropriately
7. P roactively undertaking
conservation of the global
environment
8. E
 mbracing change and taking
on new challenges
9. B
 uilding trust from society
through social contribution
activities and appropriate
disclosure of information
10. B ringing together individual
strengths to fully exploit the
integrated strength of the group

To strive for total innovation froma global perspective by conducting
marketing and technologicaldevelopment rich in originality.

and contribute to a fulfilling lifestyle asa mainstay of information and culture.

Established in June 2000

To conduct fair and open business
operations while acknowledging oursocial responsibilities and aspiring forharmony with our global environment.
To create a positive working
environment by maximizing ourindividual talents and strengths
as a team.

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

To enhance our corporate
standing and promote the continual
development of the Toppan Groupthrough the exploration of new
possibilities.

Established in June 2000; revised in
November 2010
Established in June 2000

6

TOPPAN CSR REPORT 2014

See page 27 for Chapter 2: Specific Conduct
Guidelines.

CSR Activities
Corporate social responsibility (CSR) activities are prominent
among Toppan’s many endeavors to realize the ideal Corporate
Structure the Group envisions. As measures seeking to incorporate social demands into business operations, CSR activities
are vital for Toppan’s growth as a corporation in harmony withsociety and the global environment.
The United Nations Global Compact is an invaluable guideline for the Group as it undertakes CSR activities. In designingconcrete activities, Toppan also closely refers to the ISO 26000
Guidance on Social Responsibility, an international standard
formulated through the consensus of diverse stakeholders
around the world. This standard typifies demands from society
at present.
ISO 26000 provides guidance on the principles of social
responsibility—what it means and how it applies to organizations. Any type of organization of any size can use it. This
standard encourages organizations to address its seven core
subjects—organizational governance, human rights, labour
practices, the environment, fair operating practices, consumer
issues, and community involvement and development—andemphasizes stakeholder engagement through dialogue.
Toppan will promote CSR activities with this guidance inmind and disclose the results via this CSR report in line withthe seven core subjects.

Dialogues with Stakeholders
Toppan has recognized categories of stakeholders who areeither vital for its business operations or potentially impacted
by them: customers (client companies, consumers), business partners, communities, shareholders/investors, andemployees.
To shape CSR activities satisfactory to all stakeholders,
Toppan attaches great importance to stakeholder dialogues
and reflects stakeholder opinions in its activities.
Along with the regular dialogues with its stakeholders in thecourse of daily business, Toppan has been holding meetings
with representatives from each stakeholder category and withexperts and organizations deeply knowledgeable on social
issues since fiscal 2004. In fiscal 2011, Toppan began taking
part in the ISO 26000 Working Group organized by Global
Compact Network Japan. In fiscal 2013, Toppan entereddialogues with experts and NGOs on topics related to the
supply chain, consumer issues, human rights, and community
involvement.

Toppan’s Stakeholders and the Seven Core Subjects under ISO 26000

Customers(client companies,
consumers)

Employees

TOPPAN
Corporate
Structure

Labourpractices

Human rights

The environment

Community
involvement anddevelopment

Organizational governanceFair operating
practices

Consumer issues
Shareholders andinvestors

Business partners

Stakeholders

Communities

Seven core subjects
Dialogues

TOPPAN CSR REPORT 20147

Special
ReportSupporting Employees withChildrenToppan continues taking a proactive approach to address growing social demands for the creation of structures inwhich more diverse people, especially women, young people, and the elderly, can play active roles. In fiscal 2013 theCompany launched a new “Hagukumi (nurturing) Program” to further facilitate support activities for employee parents
to help them fully apply their abilities and skills.

Incentives to Support Balance between
Working and Parenting
The participation of more diverse people in economic activities
is one of the most important challenges under Japan’s recent
growth strategy. Japan understands the need to create anenvironment in which working parents can engage in both
work and childcare without undue stress—especially working
mothers. More and more parent employees at Toppan havebeen signing up for childcare leave or working for reduced
hours in recent years.

Numbers of Employees Taking Childcare Leave andWorking for Shorter Hours

Employees taking childcare leave
Employees working for shorter hours

200

167

160

149
129

120
94
80
40

63

Toppan continues making various efforts to create an environment in which a greater diversity of people can apply theirabilities to maximum potential. For better balance between
work and parenting, the Company introduces employee support systems that surpass legal requirements in Japan.
For parents, for example, Toppan has extended the periodof childcare leave up to the end of the first March after theemployee’s child reaches the age of 12 months. This eases
difficulties parents face in Japan, where entry to daycare services is often impossible midway through the year. The eligibility period for reduced working hours for employees withchildcare responsibilities is set to continue up to the end of
the child’s third year of elementary school (➞P. 21).

8

TOPPAN CSR REPORT 2014

94

114

114

2011

2012

124

93

74

72

2008

2009

48

0
2007

Toppan’s Continuous Efforts

75

2010

2013 (fiscal year)

In fiscal 2012, a total of 14 parents and children joined the
Hagukumi (nurturing) Art Salon, a therapeutic activity organizedby Toppan in Tokyo for parent employees on childcare leave.
Children and parents from each family collaborated in teams
to create artworks in four separate sessions. This salon is
structured as a program to strengthen bonds between parents
and children, relieve the stresses of parenting, and stimulateinteraction among different parents on leave. The participantsalso receive a Hagukumi Newsletter with information andadvice to help them smoothly return to the workplace. The
newsletter updates parents on current developments within
the Company, information on various support systems usefulfor parents on childcare leave, and messages of encouragement from colleagues.

New and Improved Hagukumi Program
In fiscal 2013, Toppan upgraded the Hagukumi (nurturing)
Program and conducted the three activities described below.
This program aims to cope with the stresses employees onchildcare leave so often feel about returning to the workplace
and to relieve the uncertainties of working parents about their
future careers. The program also provides opportunities forworking parents to share useful skills for attaining work-familybalance and for Company coworkers to enhance understanding about the importance of this balance.

Hagukumi (nurturing) Program

Hagukumi Art Salon
ITo strengthen bonds between parents
and children
ITo stimulate interaction among employees currently on childcare leave
ITo cope with anxieties about returning towork
Hagukumi Seminar
To learn and enhance understanding about
good balance between work and parenting
throughout the workplace

Hagukumi Seminar
The Hagukumi Seminar was designed as an activity to makecolleagues throughout the workplace more aware of the importance of work-family balance for working parents. The 131
seminar participants in fiscal 2013 included not only working
parents, but also managers, and coworkers who hope to­balance work and parenting in the future.
The seminar consisted of sundry activities such as a lectureby an invited lecturer, a panel discussion of participants who
had experienced life as working parents, and small group­discussions to think about how employees can improve balance between work and parenting as individuals. Participants
rated the event favorably and clearly learned more about theissues involved in work-family balance. Participants commented that it eased their worries about taking maternity andchildcare leave and returning to work after the leave; madethem realize how important it is to think about working styles
from personal, subjective viewpoints; and helped them tounderstand that instead of fretting over the pressures subordinates with children face, steps should be taken to sound out
their working aspirations and help them move in the right directions in their careers.

Hagukumi Circle
To build a network of working parent
employees for discussing concerns about
work and parenting and sharing tips on
work-family balance

Hagukumi Art Salon
In fiscal 2013, the Company increased the Art Salon venues tothree—Tokyo, Osaka, and Fukuoka—and signed up a total of
28 parents and children for art sessions. Feedback from participants was consistently positive: (e.g.) “It was interesting to
see my kid so deeply focused”; “Talking with other employees
on childcare leave helped me prepare mentally for my upcoming return to work”; “I received a warm message from my boss.”
Panel discussion

Hagukumi Art Salon

Hagukumi Circle
As a pilot activity to develop the Hagukumi Circle, several small
groups of working parent employees were asked to gather atlunch to form a network for discussing their everyday concernsand sharing tips on maintaining a balance between work andparenting. The Company used feedback gleaned from theparticipants of this preliminary circle activity last year to develop
a better way to operate the Hagukumi Circle when it starts up
on a full scale in fiscal 2014.

Towards the Future

Hagukumi Newsletters (in Japanese)

In fiscal 2014, Toppan will continue holding the Hagukumi Art
Salon and Hagukumi Seminar and will officially start up the
Hagukumi Circle. These activities will ease mental burdens forworking parents and further the sharing of knowhow on
work-family balance. The Company will also spread enhanced
awareness on the importance of work-family balance throughout all of its workplaces. Toppan is determined to create anenvironment in which diverse human resources can fully apply
their abilities and skills in their careers.

TOPPAN CSR REPORT 20149

Special
ReportCSR Procurement: Working with Suppliers
to Comply with Global CSR Standards

When applying CSR procurement at a company, every party throughout the supply chain needs to implement CSR initiatives. The Toppan Groupissued a revised set of CSR procurement guidelines in fiscal 2013 incorporating the requirements stipulated under the United Nations Global
Compact and the ISO 26000 international standard for organizations on social responsibility. Coinciding with this, Toppan continues engaging
business partners in related CSR procurement briefings and dialogues and sending them questionnaires to assess the status of their CSR practices.

Toppan’s Ongoing Efforts in CSR
Procurement

Issuing New Guidelines Pursuant to
Global Standards

As a corporate initiative, CSR procurement extends to laborand environmental management and other elements of­corporate social responsibility at partner companies. In the
1990s, overseas companies faced a new wave of social andlegislative demands requiring them to extend their CSR activities throughout the entire supply chain. The same demands
soon spread to Japan.
In May 2007, Toppan issued the first version of the Toppan
Group CSR Procurement Guidelines to improve mutual­corporate values in cooperation with collaborating business
partners. In the years since, every business partner willing tocooperate with the Group’s CSR procurement initiatives has
submitted a memorandum of cooperation and reported its
CSR activities in questionnaires. Toppan has checked the­current status of business partner practices with these questionnaires and visited partners to conduct onsite inspections
and face-to-face interviews whenever necessary.

The Toppan Group revised its CSR procurement guidelines
and issued a second version in January 2014.
The Toppan Group CSR Procurement Guidelines consist of
the Basic Procurement Policy, a conceptual framework to beclosely observed by every Toppan employee involved in procurement operations, and the CSR Procurement Standards, a
set of requirements to be satisfied by every business partner.
Two major revisions are adopted in the new guidelines. The
first revision is the addition of an article related to the fosterageof mutual cooperation and relationships of trust with business
partners in the Basic Procurement Policy to be observed by
Toppan employees. So far the Group has provided complianceeducation for employees involved in procurement operations
and has established and operated the Supplier Hotline, a portal for receiving reports from business partners on rule violations or improper conduct by Toppan. With this new article inplace, the Group expects version 2 of the guidelines to renew
employee awareness on the need for building mutual cooperation and relationships of trust.
The second revision is a composition change of the CSR
Procurement Standards to improve their clarity. Specifically,
the standards were reorganized into two categories: the Basic

We want companies to implement
CSR initiatives throughout theentire supply chain

requirements& dialogue

Consumers

requirements& dialogue

Client companies

requirements& dialogue

ToppanBusiness partners

All of the parties above perform CSR practices through a process of “requirements & dialogue”

10

TOPPAN CSR REPORT 2014

Major Revisions to the CSR Procurement Guidelines
Toppan Group CSR
Procurement Guidelines
Version 1

Toppan Group CSR Procurement Guidelines
Version 2

Basic Procurement Policy

Basic Procurement Policy“We work to foster mutual cooperation and build relationships oftrust with business partners” (added)

CSR Procurement
Standards
1. Basic human rights
2. P
 ublic order,
compliance with laws,
fair business activities
3. Management anddisclosure of information
4. The environment andsafety5. Improving quality
6. Appropriate pricing
7. Stable supply
8. Social contributions

CSR Procurement Standards
1. B asic Procurement
Standards
1) M aintenance andimprovement of quality
2) Appropriate pricing
3) Stable supply
4) Product safety
5) Management of information
6) C ompliance with laws andsocial norms
7) Fair business activities
8) Protection of and respect for
intellectual property rights

Procurement Standards and the Procurement Standards Concerning Human Rights, Labor, the Environment, and Anti-Corruption. The former stipulates underlying conditions generally
required in all business transactions, such as: product safety;
management of information; and compliance with laws andsocial norms. The latter focuses on the major four issues globally emphasized in CSR initiatives. Toppan has been participating in the United Nations Global Compact and supportingthe 10 principles of the Global Compact on human rights,
labour, environment, and anti-corruption since September
2006. Toppan incorporated the concept of the ISO 26000
international standard for organizations on social responsibility in its CSR management practices in fiscal 2011 and has
been pushing forward with CSR activities by piecing together
a clear picture of the social issues the Group should help solve
and the social responsibilities it should fulfill. The two revisions
to the guidelines are further attempts by the Group to closely
tie its responses to global demands in CSR procurement to
the globalization of Toppan’s business activities overall. Toppan
Printing Co., Ltd. was the first company in Japan’s printing
industry to establish guidelines clearly stipulating good practices in the realms of human rights, labor, environment, andanti-corruption (➞PP. 18, 26).

9) P rotection of people
reporting improper conduct
10) Disclosure of information
2. Procurement
Standards Concerning
Human Rights, Labor,
the Environment, andAnti-Corruption
1) Human Rights
2) Labor3) The Environment4) Anti-Corruption

United Nations
Global Compact
ISO 26000
Other conduct
guidelines
established bysuppliers

Future Approach
The Toppan Group will continue holding briefing sessions forbusiness partners and sending out questionnaires in fiscal 2014
to enhance mutual understanding and review the current CSR
practices of business partners.
When questionnaire results come in, the Group also plans
to hold individual dialogues with business partners to facilitate
the establishment of a reliable supply chain for society at large.

Briefing session for business partners

More Efforts in Fiscal 2013
In addition to the issuance of the Toppan Group CSR Procurement Guidelines Version 2, Toppan held briefing sessions forbusiness partners in operational sites across Japan from January to March in 2014. Over the course of about an hour, thetypical length of a session, participants shared views on
demands from international communities for CSR initiatives
throughout the entire supply chain, major CSR issues of special
focus, and details on version 2 of the guidelines. Questions andinquiries from business partners were also encouraged. About
1,200 partner companies took part in the sessions, in total.
After each session, Toppan conducts questionnaires toreview the activities business partners are undertaking in therealms of human rights, labor, environment, and anti-corruption.

Toppan Group CSR Procurement Guidelines (Toppan website)
http://www.toppan.co.jp/english/csr/policy.html

TOPPAN CSR REPORT 201411

CSR Activity Digest 2013
Results in Fiscal 2013 and Future Measures in Line with the Seven Core Subjects under ISO 26000
Seven Core Subjects

Action Points and Targets for Fiscal 2013
Developing CSR management based on ISO 26000

Organizational
governance

Formulating business continuity plans (BCPs) across the Groupand facilitating business continuity management (BCM) on an
ongoing basis
Heightening awareness of the importance of respecting basic
human rights• Continue organizing various training sessions to nurture businesspeople
guided by the concept of respect for people

Providing an open environment and information for recruitment• Facilitate the hiring of human assets endowed with latent talents andmotivations advantageous for careers in a global business environment

Proactively appointing female employees to higher positions

Human rights

Working for equal opportunity in individual career development
and helping employees pursue their own career paths
Supporting second careers for retired employees

Fair operating practices• Develop new job positions for employees with disabilities; strengthen support
systems to hire more persons with disabilities

Properly operating personnel treatment systems• Rearrange working conditions and personnel treatment systems to enhance
the Company’s capacity to respond to environmental changes in business;
introduce new systems and schemes and consider support plans for individualcareer development

Supporting work-life balance 1)➞ Shortening total working hours• Create new ways of working based on job specifications, work styles, and thelike by adopting a new personnel treatment system in sales and planningdepartments• Hold opinion-exchange discussions on ways to encourage employees to takeleave, including the creation of more accommodating workplace environments

Supporting work-life balance 2)➞ Creating a working environment where employees canstrike a balance between working and raising children• Consider the introduction of a teleworking system for employees who want tocome to the office but are prevented from doing so by childcare obligations

Creating a better working environment through partnerships
between labor and management• Increase opportunities for opinion exchanges between labor and management,
including division tripartite conferences, business councils at individual
divisions, and labor-management committees for the creation of a working
environment amenable to enhanced job satisfaction• Continue holding and gingering up recreational events jointly organized bylabor and management

Ensuring occupational health and safety and reinforcing
countermeasures against fires• Introduce risk assessment on a full scale in a bid to make machines andequipment intrinsically safer• Switch to less hazardous cleansing agents at the workplaces that use organic
solvents for offset printing and like processes

Reinforcing countermeasures against disasters• Install Company-wide task force functions in the Kansai area in Japan• Share information about stockpiled emergency supplies and management
ledgers for supplies at the main sites in Japan• Continue organizing initial action drills; perform checks

Promoting healthcare and health enhancement• Offer systematic healthcare guidance for employees with health risks
associated with lifestyle-related diseases (healthcare guidance on thepreemption of lifestyle-related diseases, lifestyle improvement programs)

Arranging measures for mental healthcare• Continue conducting mental health training and providing employees with
opportunities to consult with counselors

Developing and fostering human assets• Upgrade practical programs to address business challenges and programs tonurture leaders; strengthen the fosterage of human assets with the skills andmotivations necessary to work in a global business environment

See page 35
Heightening awareness of laws, regulations, and the Conduct
Guidelines• Reinforce measures to prevent improper conduct by enhancing the activities of
the Conduct Guidelines Promotion Leaders• Implement the Conduct Guidelines in overseas Group companies

Complying with transaction-related laws and regulations• Ensure proper subcontract transactions and build proper relationships withbusiness partners

Promoting CSR initiatives in the supply chain• Establish new CSR Procurement Guidelines with CSR procurement criteria
based on internationally accepted auditing standards and notify business
partners about the new guidelines

Ensuring consumer safety through the strict prevention ofquality-related accidents• Help operational sites visualize and quantify risks in their business process
outsourcing (BPO) operations• Upgrade the quality assurance system for businesses related to packaging for
food, medical, and pharmaceutical products• Continue disseminating information on Ver. 3.1 of the Toppan Group’sStandards for the Management of Chemical Components of Raw Materials

Disclosing environmental information• Operate the internal carbon footprint of products (CFP) system (monthly
progress meetings, management reviews, regular audits)• Foster human assets to engage in CFP operations such as CFP quantificationand verification

Establishing an information security management structure
towards the complete elimination of information-related
accidents• Instruct 62 tightly secured areas designated for the handling of personal
information on conformance with the revised criteria• Organize education for all employees on the proper handling of personal
information and carry out internal audits for all departments across Japan

Arranging social contribution programs to help solve social
issues• Sponsor the 7th series of Toppan Charity Concerts• Consider social contribution programs in which Toppan employees take part

Consumer issues

Community involvementand development

12• Appoint more female employees to higher positions and leverage female
talent; create working environments where employees can strike a balance
between working and raising children•U se the system for career self-determination (Challenging Job System) as a tool to deploy
human assets based on individual capabilities and motivation and to appoint at least 20%of employee applicants to the departments or divisions where they would like to work•A
 rrange rotations and training to provide employees opportunities to develop their capabilities• Use the newly introduced Senior Reemployment System as a tool forleveraging the knowledge, experience, and expertise of veteran employees

Promoting the employment of persons with disabilities

Labour practices

The environment

Main Measures in Fiscal 2013
• Implement e-learning-based, Company-wide basic education on CSR
management at more Group companies• Implement BCM at the regional sites, Group companies, and other Group
entities that have yet to formulate BCPs (by formulating a basic plan andaction procedure manual, organizing drills, and conducting related activities)• Organize BCM- and BCP-related education and develop human assets toengage in BCM and BCPs

TOPPAN CSR REPORT 2014

Results in Fiscal 2013

Self Evaluation• Deepened the understanding of ISO 26000 via e-learning-based, Companywide basic education for Toppan and Group company employeesA• Formulated BCPs at all of the main sites in Japan• Organized BCM simulations and various other drills at the main sites in Japan• Acquired the Business Continuity Advancement Organization (BCAO) BusinessContinuity Specialist Grade I and II certifications

A•O
 rganized education on respect for basic human rights through basic Company-widetraining and rank-based training; disseminated the principle of respect for basic
human rights through the activities of the Conduct Guidelines Promotion Leaders• Made provisional offer of employment to 3 Americans at the Boston Career
Forum held in the U.S. for bilingual job-seekers (e.g., Japanese students
learning overseas and international students learning in Japan)

A
A

Action Points, Targets, and Main Measures for Fiscal 2014
• Implement e-learning-based, Company-wide basic education on CSR management at more Group companies• Review and prepare various BCM procedures and other BCM materials;
implement preliminary business continuity measures; organize BCM simulationsand various other drills• Organize BCM- and BCP-related education and develop human assets toengage in BCM and BCPs
• Continue organizing various training sessions to nurture businesspeople guided
by the concept of respect for people• Promote the hiring of human assets who possess latent talents and motivations
advantageous for careers in a global business environment (including international
students learning in Japan)• Take positive actions to appoint more female employees to higher positions,leverage female talent, and create working environments where employees canstrike a balance between working and raising children• Attained a 5.7% ratio of females among managerial and supervisory staff(as of April 1, 2014)A• Appointed 244 employee applicants (18.9% of all applicants) to the departments or divisions where they wished to work (as of April 2014)A• Make proactive use of the Challenging Job System to appoint at least 20% of
employee applicants to the departments or divisions where they would like to workA

• Promote systems to support second careers for retired employees and to offer
working options well suited to the motivation of more experienced employeesA• Diligently facilitate the hiring of persons with disabilities by sharing information
with local public job-placement offices across Japan• Reviewed personnel treatment systems for managerial staff at Group
companies

A•C onvened special labor-management committees to discuss new ways of working
in sales and planning departments and updated personnel treatment systems
based on evolving working styles; adopted a new working system in July 2013
• Discussed ways to encourage employees to take leave during opinion
exchanges at labor-management committees for the creation of a working
environment amenable to enhanced job satisfaction• Hold career seminars; devise schemes to contribute to individual careerdevelopment• Consider and implement measures to maintain employee motivation and provide
follow-up

A• Facilitate appropriate supervision of working hours using the employment
management system• Implement measures based on labor-management discussions on ways toencourage employees to take leave, including the creation of more accommodating workplace environments• Introduced a teleworking system in February 2014
• Held the Hagukumi (nurturing) Seminar in December 2013 and Hagukumi Art
Salon in February and March 2014A

• Arranged regular opportunities for opinion exchanges between labor andmanagement, including division tripartite conferences and labor-management
committees for the creation of a working environment amenable to enhanced
job satisfaction• Held division-based recreational events jointly organized by labor andmanagement

A• Reduced the number of occupational accidents by 20%• Improved the Anzen Dojo safety training facility at the Kawaguchi Plant in
Saitama Prefecture; established a dojo at Fukuoka Plant in Fukuoka Prefecture• Selected new cleansing agents for offset printers to prepare for gradual
adoption during fiscal 2014

B

• Introduced a new Senior Reemployment System on April 1, 2013 in line with theamendment to the Law concerning Stabilization of Employment of Older Persons in Japan• Attained a 2.09% ratio of employees with disabilities in the total workforce (asof June 1, 2014)• Appointed employees with disabilities to sections that had not previously hired
employees with disabilities and developed new job positions for them•O
 rganized drills for the establishment of disaster task forces at the main sites in Japan• Organized a comprehensive disaster-preparedness drill in Akihabara on March
11, 2014 (evacuation drill, distribution of stockpiled supplies, communication
drill using the safety confirmation system, walk-home drill)• Attained a regular medical check-up ratio of 57.3% for the dependents of
employees (a 3 point improvement from the ratio in the previous year)• Held various meetings to encourage more people to come in for healthcheck-ups for lifestyle-related diseases•O perated Art Salon at 17 regional sites across Japan (1 more site than in fiscal 2012)• Distributed a new handbook for managerial and supervisory staff to provide
guidance on handling mental healthcare for their subordinates• Educated 141 managerial staff via programs aimed to strengthen fundamental
capabilities; added 7 courses to the training programs organized by divisions
outside the Tokyo metropolitan district• Sent 4 employees to an overseas business school; put 101 employees throughthe selective training on globalization• Held 77 training sessions for 1,205 Leaders from Toppan and Group companies• Examined the content of a Chinese version of the Conduct Guidelines
Casebook, a Q&A style booklet describing practices related to the Conduct
Guidelines• Held training sessions for 1,571 employees mainly in production control
departments at Toppan divisions and Group companies and interviewed
employees at 17 sites across Japan• Revised the Toppan Group CSR Procurement Guidelines and issued a second
version in January 2014
• Held briefing sessions for about 1,200 business partners working with
Toppan’s procurement and production control departments; sent out
questionnaires to review the CSR activities business partners are promoting• Established a set of guidelines for risk analysis on BPO operations and sent
the guidelines to divisions across Japan• Conducted audits for 5 primary food filling/packing plants based on the revised
auditing criteria; improved control and maintenance levels for facilities andoperational conditions• Revised the Toppan Group’s Standards for the Management of Chemical­Components of Raw Materials from Ver. 3.1 to Ver. 3.2; revised the Green
Procurement Standards at each division to satisfy the Ver. 3.2 standards•G ained CFP registration for 5 products, including an in-house newsletter and eco calendar• Underwent a regular CFP audit in November 2013; added 1 new site to thescope of the Company’s CFP system certification• Registered 3 employees for engagement in CFP quantification for the Company’ssystem certification; trained 3 employees for engagement in CFP verification

A

A

A

A

B

A

• Continue holding the Hagukumi Seminar and Hagukumi Art Salon; organize
these activities in more areas in Japan• Operate the Hagukumi Circle, a network of employees balancing work andchildcare• Increase opportunities for opinion exchanges between labor and management,
including division tripartite conferences, business councils at individual divisions,and labor-management committees for the creation of a working environment
amenable to enhanced job satisfaction• Continue holding and gingering up recreational events jointly organized by laborand management (including one Company-wide event to be held in October 2014)• Promote safety activities across operational sites based on the analyses of
workplace safety awareness surveys• Enrich rank- and job-based safety education with a textbook for foremen• Complete the switch from cleansing agents previously used at offset printing
workplaces to new agents not restricted under the Ordinance on Prevention ofOrganic Solvent Poisoning (“Organic Solvent Ordinance”) in Japan• Organize startup drills for alternate functions of the Company-wide task force inthe Kansai area in Japan• Continue organizing initial action drills in Akihabara; hold assembling drills for thetask force crew
• Improve the medical check-up ratio by intensively encouraging insured membersof employee families to come in for regular medical check-ups• Cooperate with the Toppan Group Health Insurance Union to formulate andimplement a Data Health Plan
• Continue operating Art Salon• Arrange mental health check-ups jointly with the regularly scheduled medical
check-ups• Upgrade support programs via various channels such as the Toppan Business
School; expand learning opportunities and enrich learning content• Dispatch employees outside the Company to strengthen the fosterage of humanassets with the skills and motivations necessary to work in a global businessenvironment• Reinforce measures to prevent improper conduct by upgrading training
programs for the Conduct Guidelines Promotion Leaders and undertaking otherrelevant activities• Implement the Conduct Guidelines in overseas Group companies• Continue organizing training on compliance with the Subcontract Law of Japanfor Toppan and Group company employees and continue interviews to check
how subcontract transactions are being handledA• Apply the Toppan Group CSR Procurement Guidelines to business partners
working with Toppan Group companiesA•P repare a manual for applying failure mode and effective analysis (FMEA, a step-by-step
approach for analyzing possible points of malfunction or failure) to product design andmanufacturing processes; provide guidance on FMEA in general; establish standards for
applying risk assessment procedures and help operational sites use the standards•R enew the Quality Assurance Guidelines for Food Packaging; establish a set of
guidelines for food defense and carry out audits based on the established guidelines• Establish auditing standards for primary food filling/packing sites; help the sites
use the standards during their internal auditsA• Apply for CFP registration for 6 products during the course of the year
• Organize CFP education for employees in sales departments• Completed qualification reviews under the revised criteria for 28 tightly secured
areas scheduled for review in fiscal 2013
• Held 442 training sessions on cyber security for all employees across Japan•S
 urveyed the actual day-to-day security practices of 21,237 employees across JapanA• Sponsored the concerts for two days as scheduled and donated nearly
2 million yen to the Asia-Pacific Cultural Centre for UNESCO• Listed up action themes but had yet to formulate a concrete program in which
Toppan employees could take part• Comply with the various modifications to the laws, regulations, and standards
related to personal information• Organize education for all employees on the proper handling of personal
information and confidential information and carry out internal audits for all
departments across JapanB• Sponsor the 8th series of Toppan Charity Concerts• Consider new social contribution programs to support literacy and othereducational initiatives

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

TOPPAN CSR REPORT 201413

Initiatives at Toppan and
the Seven Core Subjects under ISO 26000
Seven Core Subjects

Organizational
governance

Human rights

IssuesOrganizational governance

Issue 1: Due diligence
Issue 2: Human rights risk situations
Issue 3: Avoidance of complicity
Issue 4: Resolving grievances

For Details

Pages

I Corporate Governance
I CSR Initiatives
I Risk Management Structure
I Business Continuity Management

P. 15−I Respecting Basic Human Rights
I Collective Labor Agreement
I Working for Equal Opportunity andEliminating Discrimination

P. 18−I Basic Approach Regarding Human Assets
I Labor-Management Partnership
I Supporting Work-Life Balance
I Occupational Health and Safety
I Measures for Mental Healthcare
I Developing and Fostering Human Assets

P. 20−I Toppan’s Environmental Activities
I Environmental Management Activities
I Toppan’s Environmental Burden andEnvironmental Impact
I Eco-protection Activities
I Eco-creativity Activities
I Environmental Communication Activities

P. 34−

Issue 5: Discrimination and vulnerable groups
Issue 6: Civil and political rights
Issue 7: Economic, social and cultural rights
Issue 8: Fundamental principles and rights at work

Labour practices

Issue 1: Employment and employment relationships
Issue 2: Conditions of work and social protection
Issue 3: Social dialogue
Issue 4: Health and safety at work
Issue 5: H uman development and training in theworkplace

The environment

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

Fair operating
practices

Issue 1: Anti-corruption
Issue 2: Responsible political involvement
Issue 3: Fair competition
Issue 4: P romoting social responsibility in the value
chain
Issue 5: Respect for property rights

I Disseminating the Conduct Guidelines
I Toppan Group Helpline
I Compliance Education
I Promoting CSR Procurement

P. 24−

Consumer issues

Issue 1: F air marketing, factual and unbiased
information and fair contractual practices

I Assuring Product Safety and Quality
I Universal Design Initiatives
I Protecting Personal Information
I Contributing to Sustainable Consumption

P. 28−I Community Involvement and Development
I Cooperating with International
Communities to Address Social Issues

P. 32−

Issue 2: Protecting consumers’ health and safety
Issue 3: Sustainable consumption
Issue 4: C onsumer service, support, and complaintand dispute resolution
Issue 5: Consumer data protection and privacy
Issue 6: Access to essential services
Issue 7: Education and awarenessCommunity
involvement anddevelopment

Issue 1: Community involvement
Issue 2: Education and culture
Issue 3: Employment creation and skills development
Issue 4: Technology development and access
Issue 5: Wealth and income creation
Issue 6: Health
Issue 7: Social investment

14

TOPPAN CSR REPORT 2014

Organizational Governance
Points oppan has strengthened its governance structure through the establishment of a Management Audit Office,T
Compliance Department, and Ecology Center under the purview of a Board of Corporate Auditors according to
the Companies Act of Japan.
Toppan implements governance aimed at maximizing the corporate value of the entire Group under the Related
Company Administration Regulations.

Corporate GovernanceCorporate governance provides the foundation for addressing
the seven core subjects.
Toppan has strengthened its governance structure throughthe establishment of a Management Audit Office, ComplianceDepartment, and Ecology Center under the purview of a Boardof Corporate Auditors according to the Companies Act ofJapan. Toppan implements governance aimed at maximizing
the corporate value of the entire Group under the Related
Company Administration Regulations prescribed for theadvancement of fair management for the Group.

Organizational Governance he Directors, Board of Directors, andT
Various Meetings
Toppan has 26 directors, including two outside directors, on
its board (as of the end of March 2014). Board meetings areheld monthly and whenever a pressing matter requires action
or deliberation. Especially important management themes aredeliberated beforehand by the Management Committee, abody made up of directors selected by the President & Representative Director. The goal is to lay weight on managerial
efficiency in business decision making.

 orporate Auditors, Board of Corporate Auditors,C
and Audit Firm
As of the end of March 2014, Toppan has five corporate auditors, including three external auditors, of whom two are independent officers. Along with their own board meetings, thecorporate auditors attend meetings of the Board of Directors
and Management Committee and important meetings on risk
management. They systematically carry out audits for operational sites and Group companies in close cooperation withthe audit firm and internal audit-related departments of theCompany. Through these tasks, they audit and advise theCompany from a preventive perspective to ensure the legalityof the operations of the directors and departments and smooth
and appropriate corporate management in line with company
policies and regulations. They also regularly convene a boardof corporate auditors from related companies to improve theeffectiveness of the audits by corporate auditors acrossthe Group.
Toppan has had KPMG AZSA LLC verify the propriety of
the Company’s accounts through audits to enhance the reliability and transparency of the Company’s financial information.

Corporate Governance Structure
Meeting of Shareholders
Appointing or dismissing

Appointing or dismissing

Appointing or dismissing

Board of Directors
Auditing

Auditing
Supervising

Crisis Management Committee

Selecting or dismissing

Special Committee (fordefending against takeover bids)

President & Representative Director

Advising and counselingManagement Committee
Considers issues prior toboard of directors’ meetings

Responds toemergencies

Business divisions

Independently check, evaluate,
and make improvements under
the direction of departments
responsible for laws andregulations

Management Audit Office

Investigates and audits the legality andappropriateness of operational activities

Auditing

Compliance Department

Promotes, monitors, and verifies the strict
observance of business-related laws andregulations and the establishment of
ethical business practices

Reporting

Ecology Center

Guiding

Instructing
Other organizations for control

Chief information
security manager

Safety and Health Committee
National Eco-protection Committee

TPM National Conference

AssistingNational Conduct Guidelines
Promotion Supervisors

Coordinates, supervises, and verifies
Toppan’s environmental activities

Corporate Auditors Office

Audit firmGroup companies

Observingandguiding(Board of) Corporate Auditors

Directors in charge
Auditing

Working together

TOPPAN CSR REPORT 201415

Organizational GovernanceStrengthening Audit Functions
The Management Audit Office is a body established independently from the business divisions. Working from legal andrational viewpoints, the office conducts fair and objective audits
on the administrative and operational systems and practicalstatus of the Company’s management activities. The officeprovides feedback to the relevant departments on problems,
proposes measures for improvement, and reports the audit
results to the President & Representative Director, directors incharge of relevant departments, and corporate auditors. The
office carried out 26 management and operation audits infiscal 2013. It also conducted maintenance and operational
evaluations of internal controls over financial reporting for all
business divisions and main subsidiaries.
The Compliance Department in the Legal Affairs Division
spearheads the Company’s initiatives to ensure the strict
observance of laws and regulations and to firmly establish
ethical business practices. The department facilitates thecomplete awareness of the Conduct Guidelines, organizes
employee education on compliance with applicable laws, andimplements internal audits on information security (➞PP. 24,
30). The Ecology Center in the Manufacturing Management
Division supervises environmental activities, conducts internal
audits at operational sites, and monitors the progress ofimprovements (➞P. 34).

Remuneration to Directors and Corporate Auditors
In fiscal 2013, the total annual remuneration to directors was
1,127 million yen and the total annual remuneration to corporate auditors was 108 million yen. Please refer to the section
on corporate governance, etc. in the securities report (in Japanese) for details on the method used to determine remunerations and remuneration-related information.

CSR Initiatives
Promotion Mechanism
Under the President & Representative Director and the Director in charge of CSR, the divisions of the head office work incollaboration with each other to promote CSR activities.
Each division confirms the materiality of its action points inline with the seven core subjects set under ISO 26000. The
divisions devise action plans and carry out measures basedon shared information about the issues they are addressing
and the progress they are making. The head office divisions
also coordinate and share information with Group companies
to advance Group-wide CSR initiatives.

Risk to Be Managed and the Relevant Head Office Divisions in Charge
Risk to Be Managed
Accidents involving products or
product liability

Accidents related to main systems (ICT Management Div.)CSR Promotion Structure

Occupational accidents, traffic accidents, or other accidents involving
employees (Personnel & Labor Relations Div.)
Incidents related to notes or accounts receivable (Finance &Accounting Div.)

President & Representative Director
Director in charge of CSR

Accidents or disasters related tocompany operations

CSR promotion departments
Administration
Legal Affairs Division
Secretary OfficePublic Relations DivisionCorporate Planning
Division
Personnel & Labor
Relations Division
Finance & Accounting
Division
Manufacturing
Management Division
Business Development& Research Division

16

TOPPAN CSR REPORT 2014

Accidents or complaints related to products (Manufacturing
Management Div.)Defamation, slander, or othercriminal damages
Relationships with antisocialorganizations

Natural disasters

Legal problems with orders received (Legal Affairs Div.)
Leakage of personal information, internal confidential information, etc.
(Legal Affairs Div.)
Accidents or disasters related to fires or explosions (Manufacturing
Management Div.)
Illegal activities related to the storage of solvents, management of
dangerous chemicals, etc. (Manufacturing Management Div.)
Damage to the company’s internal computer system due to cyberterrorism, illegal access or use of company information, leakage of
personal information, internal information, etc. (ICT Management Div.)
Acts of violence against the company (threats, kidnapping, robbery)(Personnel & Labor Relations Div.)
Unreasonable demands from antisocial organizations, transactions
conducted between business partners and antisocial organizations(Legal Affairs Div.)
Material losses or personal accidents suffered by customers or thecompany due to earthquakes, wind or water damage, lightning, etc.
(Personnel & Labor Relations Div.)
Operational shutdowns due to large-scale earthquakes or otherunexpected events (Legal Affairs Div.)

Risk in business management

Shareholder derivative lawsuits, hostile takeovers (Legal Affairs Div.)

Unlawful activities related toexternal contracts
Infringement of intellectual
property

Violations of the Subcontract Law of Japan, illegal transactions withbusiness partners (Manufacturing Management Div.)

Environmental problems
Risk in overseas businessactivities

Infringements of patents, trademarks, or copyrights (Legal Affairs Div.)
Violations of environmental laws or standards, illegal disposal ofindustrial waste (Manufacturing Management Div.)
Product accidents, environmental problems, fires or natural disasters,
damage to human or physical resources caused by international
conflicts or terrorism, etc. (Corporate Planning Div.)

Business Continuity Management

Toppan manages risk comprehensively to avoid risk and mini­
mize the losses incurred when an event at risk of occurring
actually occurs.
The Rules on Risk Management have been established toaddress matters regarding risk avoidance and the minimizationof loss when a potentially damaging event occurs. In accordance with these rules, the Company has set up a risk management structure under which the responsibilities for risk
management are allotted to specific divisions in the head officebased on the types of risk involved. Under this structure, thedirectors in charge of each relevant division are responsible
for taking measures to prevent, avoid, and correct each typeof risk.
Toppan reviews risks to be managed once a year and examines countermeasures to be taken in line with the rules. The
Company also holds a regular Risk Management Liaison Meeting for the persons in charge of risk management in the head
office divisions in order to share information on a continuous
basis and respond to risk practically.

As a preparation for operational shutdowns after large-scale
earthquakes, Toppan institutes business continuity management (BCM) activities under the Basic Plan for Countermeasures against Disasters. These activities aim to maintain thesteady provision of products and services to customers by
restoring business operations as rapidly as possible wheneveran emergency shutdown occurs. The Toppan Group has introduced its BCM activities at the main operational sites in theTokyo metropolitan district and implements them throughout
the whole Group, including regional sites and Group companies, to prepare for the contingency of large-scale earthquakes
throughout Japan.
A new data center with superior earthquake resistance wascompleted in fiscal 2013 to safeguard the Group-wide IT infrastructure. Toppan repeated various BCM drills across its operational sites to enhance Group-wide competence for business
continuity. Toppan also invited outside professionals to giveseminars (133 participants) and held training sessions for new
employees (272 participants) to improve employee awarenessof BCM.
The Toppan Group seeks to coexist with communities asa social benefactor through these ongoing BCM activities.

Countermeasures against Disasters
To ensure the safety of all Toppan employees and their families and provide aid for
affected people in general, the Group has
carried out comprehensive disaster-preparedness measures throughout its operational sites under the Basic Plan for Countermeasures against Disasters.
Every site operates its own system topromptly confirm employee safety in theevent of a wide-scale disaster, organizes
safety-confirmation drills, and reserves stockpiles of food and water for commuters who
have no means to return to their homes.
Toppan has also been preparing countermeasures against disasters to minimize
damage to the Group, to carry on providing
products and services for customers, andto assist disaster-affected people andareas in cooperation with local communities
as a socially responsible corporation.
On March 11, 2014 (the third anniversary of the Great East Japan Earthquake),
Toppan organized a comprehensive dis­
aster-preparedness drill simulating the contingency of a large-scale earthquake in­Akihabara, where the head office is based.
The Group reconfirmed the actions to betaken during an actual emergency, from theinitial damage assessment and safety confirmation to the evacuation, walk-home, anddistribution of stockpiled supplies.
The regular repetition of disaster-preparedness drills will keep every employee on
alert and prepared to apply the know-how
necessary for dealing with emergency situations quickly and properly.

Seminar by an outside professional

Simulation drill (Sagamihara Plant)

Comprehensive disaster-preparedness drill (Akihabara)

Task force operation drill (Kumamoto Plant)

TOPPAN CSR REPORT 2014

Organizational GovernanceRisk Management Structure17

Human Rights
Points ased on the concept of respect for people, Toppan is committed to respecting basic human rights inside andBoutside the Company.
Toppan participates in global policy initiatives such as the United Nations Global Compact and engages in
dialogues on human rights.
In fiscal 2013, Toppan became one of the “Diversity Management Selection 100,” a group of companies selectedby the Ministry of Economy, Trade and Industry of Japan.

Collective Labor Agreement

Toppan operates business under the foundational concept ofrespect for people. The Conduct Guidelines, which set out
behavioral norms for Toppan personnel, call for respecting
basic human rights (respecting personal qualities and individuality; prohibiting discrimination and harassment; prohibiting
child labor and forced labor; and so on [➞P. 27]). Based on
The Toppan Group Declaration on the Global Environment andthe Basic Policy on Biodiversity, Toppan promotes environmental conservation initiatives to avoid negative impacts on
the lives of people living near its operational sites (➞P. 34).
The Group has been carrying out education on human rights
in rank-based training for employees to prevent issues fromarising. To disseminate initiatives for respecting human rights
throughout the entire supply chain, Toppan sets forth an article
on respecting basic human rights in the Toppan Group CSR
Procurement Guidelines and asks business partners to comply with this article (➞PP. 10, 26).
Toppan has also set up dual hotlines through which employees and business partners can promptly report inappropriate
actions.

The Toppan Printing Labour Union and the Company’s management have concluded a collective labor agreement in orderto stabilize labor-management relations, maintain and improve
working conditions, and secure the corporate concord. The
agreement sets forth a fundamental policy between laborand management, the rules governing union activities andlabor-management negotiations, and employment conditions
such as wages and working hours.
As a fundamental policy between labor and management,
Article 1 of the collective labor agreement, the General Principles, stipulates that the Company and union shall contributeto society through business operations and collectively workfor the benefit of the Company and long-term stability of theemployees’ livelihood. Labor and management both upholdthese as common goals. In addition to clearly stating that theunion has all the rights established by law, Article 2 of theagreement specifies that the Company shall respect the union’s
rights to organize and collectively bargain and act.
The Toppan Printing Labour Union is run by members fromnine Toppan Group companies. The union and the Company
concluded a revised labor agreement in fiscal 2012 to impose
a uniform set of liability-related clauses (rules governing union
activities and labor-management negotiations) on all nineGroup companies.

Human Rights

Respecting Basic Human Rights

Initiatives for Respecting Basic Human Rights

Participating in the United Nations Global Compact
Toppan participates in the global policy initiative and respects basic human rights in a proactive manner.

Respect for people
A universal concept highly valued by Toppan

Establishing and disseminating
the Conduct Guidelines( PP. 24, 27)

Working for equal opportunityand eliminating discrimination

Organizing training
and education

Toppan specifies respect for basic
human rights in the Conduct
Guidelines—its listing of behavioral
norms for employees—and disseminates
this principle across the Group.

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

Toppan organizes training sessions
for new employees to educate them
about respect for basic human rights
in easy-to-understand lessons.

Promoting CSR procurement( PP. 10, 26)

Operating hotlines( PP. 25, 26)

Contributing to society( P. 32)

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

Toppan operates dual hotlines
through which both employees andbusiness partners can report
inappropriate actions.

Toppan supports people’s livelihood
through educational cooperation indeveloping countries and the
donation and supply of money andgoods throughout the world.

In fiscal 2013, Toppan participated in a working group on
due diligence for human rights organized by the Global Compact Network Japan.
The Company gathered information and held opinion exchanges with other members on respect for basic human rights.

18

TOPPAN CSR REPORT 2014

Working for Equal Opportunity andEliminating Discrimination

options well suited to their knowledge, experience, skills, andmotivation. Seventy-six of 88 employees who retired in fiscal
2013 were reemployed and now remain with the Company.

Toppan pursues diversity management to innovate and create
value by engaging diverse human assets and nurturing theircompetence to its full potential. In fiscal 2013, Toppan Printing
Co., Ltd. became one of the “Diversity Management Selection
100,” a group of companies selected by the Ministry of Economy, Trade and Industry of Japan.

Employment of Persons with Disabilities
Toppan promotes the hiring of persons with disabilities in­collaboration with a special subsidiary, Tokyo Metropolitan
Government (T.M.G.) Prepress Toppan Co., Ltd. The Company
offered a greater range of positions for intellectually disabled
employees in fiscal 2013, including positions in document
digitalization.

Positive Action
Toppan promotes positive action to bring out the full potential
of individual employees, regardless of gender, and assign themto more diverse positions. The Company continues to create
positive working environments and appoint female employees
to managerial positions based on their skills and motivation.
I n-house Staff Recruitment / Self-determination on
the Career Path / Second Careers
Toppan has established the Challenging Job System, a self-­
directed program to encourage employees to report theirwork experience, official qualifications, medium-to-long-term
career development plans, and the departments and divisions
to which they would like to be transferred. The combined
effects of the Challenging Job System and an in-house staff
recruitment system nourish a problem-solving, can-do mindset, which facilitates the placement of the right person in theright position across the Company. For retired employees intheir second careers in company life, Toppan offers working
Female Managerial and Supervisory Staff
250
200
150
100

161

124

197

176

181

150

133

Fiscal 2012
Regularrecruitment of
new university
graduates andpost-graduates

37

43

47

52

2012

2013

2014 (year)

Employment of Persons with
Disabilities
2012

2013

2014

Employees

197

221

247

Percentage
of total
workforce*

1.91%

2.13%

2.09%

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

Fiscal 2014

60

80

69

24

39

42

Male

105

70

94

Female

26

30

33

Male

0

4

1

Technical

11

14

11

226
(27.0%)

237(35.0%)

250(34.4%)

Male

16

18

—

Female8

11—FemaleTotal number of regular recruits(percent female)2011

Fiscal 2013

Male
Sales,
administration, etc. Female

Regular recruitment of new­graduates from high schools andcolleges of technology

500Number of Recruits

Q Female supervisory staff
Q Female managerial staff (as of April)233

Human Rights

Providing an Open Environment for Recruitment
Toppan hires persons of both genders and of many nationalities, ages, and levels of physical and mental ability throughthree recruitment channels: the regular hiring of new graduates from universities and high schools, mid-career hiring ofexperienced personnel, and hiring of persons with disabilities.
The Company offers employment opportunities for recruits tochoose in accordance with their own aspirations and vocational aptitudes through job-specific screenings in Japan andthe recruitment of global personnel all over the world. Toppan
takes part in forums around the world to make contact withmore human assets suited to careers in a global businessenvironment. Toppan also ran internship programs for 111
students in a series of six-day practical training sessions infiscal 2013.

Mid-career recruitment of experienced personnel

Toppan Becomes One of the Diversity Management Selection 100
Toppan recently became one of the “Diversity Management Selection 100,” a group of companies
selected by the Ministry of Economy, Trade and Industry of Japan. The ministry aims to broaden
the foundations of human resource diversity by selecting andrecognizing the companies of the Diversity Management­Selection 100 for their track records in innovation through theengagement of diverse human resources. Toppan’s efforts topromote diversity have been extensive, and the ministry gavehigh marks to the Company’s initiatives to harness the uniquecapabilities and perspectives of women employees, especiallyin the areas of product and service development.

TOPPAN CSR REPORT 2014

19

Labor Practices
 oppan recognizes how deeply it depends on its people and encourages employees to work vigorously andTearnestly with strong motivation.
Toppan’s labor union and management engage in dialogues at business councils and various committees.
Their initiatives seek to support work-life balance, promote occupational health and safety, maintain the mental
health of employees, and develop and foster human assets.

PointsLabor Practices

Basic Approach Regarding Human Assets

Labor-Management Partnership

Toppan values its employees as precious company assets, as“human assets,” and recognizes how deeply it depends onthem. From this perspective, the Company supports the motivated, vigorous, and earnest work of the Toppan workforce.
The Company keenly understands the importance of the motivation to take on new challenges, the drive to work vigorouslywith a healthy body and mind, and an earnest commitment
to follow through on tasks to completion. When employees
are vigorous, earnest, and have strong motivation, Toppan isconvinced that they show their true abilities to the full.
Toppan strives to improve the abilities of every employee
through the stages of hiring, appointment, training, and treatment and to bring these abilities together to strengthen theorganization as a whole. To do so, Toppan places high priority
on communication in a spirit of mutual trust, career progressin the directions in which employees envision, clearly defined
rewards and penalties, and the establishment of an open andfair working environment. Through these efforts, Toppan will
invigorate human resources and the organizations they form
and foster talented individuals who can create new enginesof further growth for the Company as a whole.

As partners with shared ideals, Toppan’s labor union andmanagement have trust in each other and respect for eachother’s positions. Together they have been working on various
issues on an equal footing and holding a host of recreationaland other activities for employees. Recent examples include
Company-wide and site-specific sports festivals held for large
numbers of employees and their families to encourage themto enjoy closer people-to-people interactions.
Business councils are convened as Company-wide andoperational site forums to discuss wide-ranging managerial
issues. Several special committees are also convened to deliberate pertinent issues of the day. Standing committees meet to
discuss longstanding issues such as working hour reductions,wages, and health and safety. Individual labor-management
committees meet when necessary to discuss specially designated subjects such as the creation of a working environment
amenable to enhanced job satisfaction.
In the committee convened to deliberate working hour
reductions in fiscal 2013, labor and management discussed
ways to establish a teleworking system for employees whowant to come to the office but are prevented from doing soby their obligations outside of work. A new teleworking system was introduced in February 2014. Toppan has adopted aunion shop system. In principle, all non-managerial employees
belong to the labor union as members.

Number of Personnel (as of March 31)
Management
Supervisors
Class

Directors
Fiscal 2011
Fiscal 2012
Fiscal 2013

Total
Employees

26

1,687

1,749

7,363

14.9

41.3

Female

0

39

121

1,145

9.2

32.8

Male

25

1,769

1,790

7,417

15.0

41.8

Female

0

41

133

1,170

9.6

33.3

Male

26

1,822

1,779

7,395

15.3

42.2

Female

0

47

148

1,209

9.9

33.6

Fiscal 2012

Fiscal 2013

Personal reasons

131 (48)

180 (53)

188 (52)*2

Retirement

80 ( 1)69 ( 2)88 ( 1)

Requested by
the company

0 ( 0)

0 ( 0)

0 ( 0)

Other

84 ( 1)83 ( 4)90 ( 3)Total

295 (50)332 (59)366 (56)

3.4%

3.7%

4.1%

Turnover rate

Sum Total
Employees

Part-timeWorkers

Temporary
Staff

8,508

730

68

8,587

708

75

8,604

705

71

Annual Paid Leave Used

Fiscal 2011

*1 The number of female employees who left the company is shown inparentheses.
*2 Twenty-fix males and two females took advantage of Toppan’s support
system for employees pursuing second careers.

Average Annual Salary

20

Average
Age

Male

Reasons for Leaving*1

Total

AverageTenureFiscal 2011

Fiscal 2012

Fiscal 2013

6,397,624 yen

6,414,340 yen

6,711,582 yen

TOPPAN CSR REPORT 2014

Average paid
leave used (days)
Average ratio*

3

Fiscal 2011

Fiscal 2012

Fiscal 2013

8.2

8.1

8.0

42.4%

41.9%

41.7%

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

Employees Taking Maternity or Childcare Leave
Fiscal 2011

Fiscal 2012

Fiscal 2013

Employees taking
maternity leave

58

68

76

Employees taking
childcare leave*4

114 (2)114 (3)124 (4)*4 The number of male employees who took childcare leave is shown inparentheses.

Supporting Work-Life BalanceEfforts to Foster the Next Generation
Toppan has striven to create a working environment in which
employees can achieve better work-life balance. It does soby providing systems for childcare and nursing care leave,
reduced working hours, higher family allowances for dependents, and employee benefits of other forms. Under the rehiring
system for employees who resign from the Company to deliverand bring up children, 24 resigning employees have registeredfor future rehiring as of April 2014.
Toppan has also made institutional improvements for its
childcare leave system. For parents, for example, the Company
has extended the period of childcare leave up to the first March
31 after the employee’s child reaches the age of 12 months,
a point in time beyond the requirements of the applicable law
in Japan. This change eases difficulties parents face in Japan,
where entry to daycare services is often impossible midway
through the year. Meanwhile, the eligibility period for reduced
working hours for employees with childcare responsibilities is
set to continue up to the end of the child’s third year of elementary school (again surpassing legal requirements in Japan),even in households where the employee’s spouse has time to
devote to childcare. In April 2014, child healthcare leave was
extended to enable employees to take leave up to the end of
the child’s third year of elementary school. Among the 10 daysof leave a year, five days can be taken as paid leave.

Labor Practices

 fforts to Shorten Working HoursE
The special demands of the printing industry have made it asignificant challenge for Toppan to reduce the excessive overtime hours worked by employees. Toppan has been instituting
Company-wide measures to eradicate extended overtime work
as a means of achieving better work-life balance and maintaining employee health.
Senior management, managers, and employees jointly
undertake various initiatives to improve operating effectivenessby reviewing the ways individuals work and the ways management administrates; to equalize overtime hours by adjusting
operations within departments; and to introduce new working
systems such as flextime and irregular working schedules.
At the ongoing business councils and labor-management
committees, labor and management exchange opinions anddeliberate measures to further shorten overtime working-hours
and comply with the revised Labor Standards Act of Japan.
They also analyze the actual overtime practices and review theuse of the newly introduced working systems. The Company
renewed its work-attendance management system in fiscal
2012 and enabled departments to manage working hours ina more timely and detailed fashion.
Special labor-management committees were convened
in fiscal 2013 to discuss new ways of working in sales and­planning departments and updated personnel systems basedon evolving working styles. As a result, the Company adopted
a new working system in sales and planning departments inJuly 2013.

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

Childcare Leave

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

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

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

TOPPAN CSR REPORT 201421

Labor Practices

Occupational Health and Safety

Measures for Mental Healthcare

Back in 2010, Toppan formulated a Basic Policy on Health and
Safety based on a “safety first” theme and clarified the actions
to be taken at each operational site towards the complete
elimination of occupational accidents. The Company hasorganized rank-based safety training mainly on legal and regulatory compliance and has undertaken various initiatives suchas safety promotion and risk assessment activities led by safety
promotion leaders. Through these efforts, the number of occupational accidents has been gradually reduced. The safety
promotion team at the head office and safety promotion leaders at operational sites will work together to continue organizing safety education and upgrading the intrinsic safety ofmachines and equipment.
In fiscal 2013, Toppan continued enriching the educational
content of the Anzen Dojo, a safety training facility in Kawaguchi, Saitama Prefecture. The Company also established an
Anzen Dojo website to open the dojo to trainees outside­Toppan. Danger simulators similar to the dojo in Kawaguchi
will be introduced at new safety training facilities in Fukuoka
and Osaka Prefectures to improve occupational safety awareness among Toppan employees. The Company will also promote safety activities based on workplace safety awarenesssurveys.

Labor and management undertake various measures to maintain the health of the employees, the key drivers of Toppan’s
corporate activities. Several rules have been included in theemployment regulations to enable employees to more readily
return from mental healthcare leave. These rules define a clear
set of criteria for deciding when an employee should return towork, measures to prevent the recurrence of leave, and programs to support employees once they return to work. Rankbased training is offered to prevent mental illness or to promptly
detect and treat mental illness if it develops. The Company
also opens counseling rooms, concludes advisory agreementswith mental healthcare specialists, holds regular mental healthcheck-ups for all employees, and undertakes various othermeasures. In fiscal 2013 the Company produced and distributed a new handbook for managerial and supervisory staff toencourage them to improve working environments and consult
with subordinates wishing to discuss their mental health.
Toppan and a Group company called Institute of the Formative Art Co., Ltd. jointly operate Art Salon, a workshop torefresh employee minds and bodies through the creative
work of painting. Art Salon sessions are held all around Japan.
Toppan and the institute also hold the Summer Holiday Art
Salon for Parents and Children, an art-making workshop for
employees and their families.

Occupational Health and Safety

Overview of the Mental Healthcare System

2011

2012

2013

0

0

0

Frequency rate*1

0.10

0.05

0.20

Severity rate*2

0.004

0.00

0.002

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

Primary
Prevention:

Proactive measures

Secondary
Prevention:

Early detection

Regular mental health check-ups,
including stress checks
Mental healthtraining
I In rank-based
training
I Incorporation
into optional(group)training

MedicalTreatment:

Early recovery

Steps to Prevent
Recurrence:

Support for returning
employees (fresh starts)

Contracts with mental healthcare specialists

Cooperation with medical and counseling institutions outside Toppan
Guidance and information about
consultants outside Toppan(contracted with the Toppan Group
Health Insurance Union)• A clear set of criteria
for deciding whenan employee on
leave should return• Rules for preventing
the recurrence ofmental healthcare
leave

Programs to support employees
returning from mental healthcare leaveCounseling rooms
Art Salon, an art session for employees
Appointment anddeployment of aperson to takecharge of mental
health enhancement
at every operational
site

22

TOPPAN CSR REPORT 2014

Steps to allay
anxiety after
resignation
Financial assistancefrom the Toppan Group
Fraternal Benefit Society
and similar sources for
fixed periods after
resignation

Developing and Fostering Human Assets
 he Concept of Human Asset Development andT
Fosterage
Mindful of how deeply it depends on employees, Toppan fosters human assets with ambition and integrity. Toppan would
like to contribute to society as a corporation blessed withhuman assets with excellent communication skills and heightened awareness and sensibilities. The Company has set up
human asset development platform called the Toppan University. This in-house virtual university supports life-long learning,skill improvement, and career enhancement while striving tofoster top leaders.

Fostering Human Assets for Global Business
Toppan has been operating a trainee system to provide employees with practical training in day-to-day business activities overseas since fiscal 2011. Thirty-nine employees have been deployedas trainees under the system, as of the end of fiscal 2013.
Three of them worked as Japan Overseas Cooperation Volunteers for the Japan International Cooperation Agency (JICA).
The selective training on globalization launched in fiscal 2010
has supported a cumulative total of 435 candidates for overseas assignments so far. Five employees in the advanced-learning course for the selective training have attended short-term
open programs at IMD in Lausanne, Switzerland, one of theworld’s top-ranked business schools, since fiscal 2012.
 trengthening the Environment to Develop Human
S
AssetsToppan has established training centers in Kawaguchi, Saitama
Prefecture and Yugawara, Kanagawa Prefecture to nurtureindividuals who will shape Toppan’s future. These centers arevenues for various training sessions and interaction between
Toppan personnel. The Company runs an intranet to help
employees enhance their abilities and skills online. Employees
visit the intranet to read posts on human asset development
programs and review the records on their own training.

Labor Practices

Various Education Systems
Along with rank-based and department-based training, thehead office organizes selective training courses planned out
to foster leaders of tomorrow. For new employees, Toppan
regards the first three years after recruitment as a Company-­
wide development period. To help new employees acquirenecessary skills, Toppan organizes Company-wide training andon-the-job training (OJT) with help from the immediate superiors of new employees.
Meanwhile, the Toppan Business School (group training)
and the Challenge School (correspondence learning courses)
offer self-development training for employees. A cumulative
total of 9,359 people trained in these schools in fiscal 2013.
Employees also have ready access to basic, Company-wide

education via the e-learning system. A cumulative total of
87,834 people took part in e-learning programs in fiscal 2013.

Systematic Human Asset Development Programs
Earning the trust ofcustomers“Conduct of High Value” Based on the Corporate Philosophy and Corporate Creed
Strengthening business
Fulfilling corporate
Strengthening
foundationssocial responsibility
organization

Improvingcorporate value

Knowledge andinformation skills“Abilities and Skills” for “Conduct of High Value”
Ability to identify and
Ability toTechniques andformulate tasks
accomplish tasksknow-how

Skills in communicationand fostering subordinates

Rank-based Training
I New division manager training
I New department manager training
I New manager training
I New supervisor training

I New employee Company-widetraining
I Early career planningI OJT brother/sister training

Department-based Training
I Selective training for section
managers in sales departments
I Program to strengthen sales
departments
I Training for new section managers
in technology and manufacturing
departments

I Training for employees in
production control departments
I Training for new supervisors intechnology departments
I Individual department-based training(purchasing, secretary, personnel &labor relations, technology &research, etc.)

Basic Company-wide Education (e-learning)

Globalization Training

Training by Divisions

Toppan Business School

I Basic education on TOPPANVISION 21
I Basic education on CSR
I Basic education on the environment
I Education on profit creation inbusiness
I Basic education on globalization

I MBA abroad training
I Study abroad program forengineers
I IT training in India
I Short-term overseas study
I Selective training on globalization

I Training in each division and each
workplace

I Group training
I e-learning
I Dispatching human assets outside
the Company

Selective Training

I Executive business school
Challenge School
I Training to nurture industry-leading talent
I Program to develop human assets who
can create new businesses and markets
Operated together with Toppan Mind Wellness Co., Ltd., an education consultation company within the Group entrusted with training projects inside andoutside the Company.

TOPPAN CSR REPORT 201423

Fair Operating Practices
Points oppan organized training on compliance with the Subcontract Law, the Act Concerning Special Measures forT
Pass-on of Consumption Tax, and other transaction-related laws and regulations in force in Japan.
T oppan educated employees and audited operations as measures to prevent improper export and import transactions.
T oppan has been monitoring the supply chain to ensure that paper suppliers legally obtain the lumber they use asa raw material for paper production.

Disseminating the Conduct Guidelines
In June of the year 2000, the centennial of Toppan Printing
Co., Ltd., Toppan established the Conduct Guidelines, a setof normal standards of behavior based on the Corporate Philosophy and the spirit of legal compliance. In November 2010,
Toppan completely revised the Conduct Guidelines as a setof common principles that all Group companies around theworld are required to observe for the assurance of total Groupwide compliance.

Fair Operating Practices

Conduct Guidelines Promotion Leader System
Toppan operates a Conduct Guidelines Promotion Leader
system. In this system, every Group site assigns a Conduct
Guidelines Promotion Supervisor (the “Supervisor”) and Leaders (the “Leaders”) for disseminating the Conduct Guidelines
and ensuring full guideline compliance. Supervisors and Leaders implement ongoing activities directly connected with their
daily business operations. Seven hundred and fifty-six Leaders
were deployed across the Group in fiscal 2013, including 65
women (8.6% of the Leaders). A cumulative total of 6,051
employees have worked as Leaders since the system waslaunched in 2004. Toppan will continue with measures todeploy many more Leaders and to resolutely foster and assign
more female Leaders.

 issemination Activities by the Conduct Guidelines
D
Promotion Leaders
The Leaders formulate action plans tailored to the details of
business operations and conditions, staff compositions, andother individual factors at the workplaces where they serve.
The Leaders organize Conduct Guideline read-throughs, facilitate discussion using concrete cases, and implement otheractivities to enhance compliance awareness among their­colleagues.
At the Meeting of Conduct Guidelines Promotion Supervisors held each October, Supervisors from operational sites
throughout Japan report their activities and discuss and shareoutstanding cases and measures.
Tools to Promote the Conduct Guidelines
Toppan gives every employee a Conduct Guidelines Casebook, a Q&A style casebook describing actual situations that
can arise in daily work. The Company uses the casebook for
rank-based education and the Leaders use it to disseminate
the guidelines at their workplaces. Toppan also posts regular
Conduct Guideline Notifications on topics relevant to theguidelines in order to heighten employee awareness andcall attention to compliance-related issues. The notifications
posted in fiscal 2013 covered topics such as information leakage, unlawful conduct, and accidents and problems related
to products and services.

Structure to Promote the Conduct Guidelines
President & Representative Director

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

Divisions in the Company

Divisions of the head office

Division heads

Conduct Guidelines
Promotion Supervisor
Senior General Manager
of Legal Affairs Division

Conduct Guidelines Promotion Supervisors
Person in charge of management: Business Strategy Department GM
Person in charge of education: General Affairs Department GM

Conduct Guidelines
Promotion Leadersin sales and planningdepartments
Sales promotion
managers, etc.

Conduct Guidelines
Promotion Leadersin administrative
departments
Managers or supervisorsfrom each department
Employees

24

TOPPAN CSR REPORT 2014

Conduct Guidelines
Promotion Leadersin manufacturing
departments

Conduct Guidelines
Promotion Leaders

Educational leaders

Managers or supervisorsfrom each department
Employees

Toppan Group Helpline
When an employee discovers a legal violation or improper
conduct somewhere in the Toppan Group, he or she is toreport it to his/her superior for deliberation, in principle. If theemployee’s superior fails to resolve the problem, the employee
is encouraged to call the Toppan Group Helpline, the Group’s
internal reporting system. The helpline is kept open for use
by all Group employees, including temporary staff and parttime workers.
The helpline was used in two cases in fiscal 2013. One of
the incidents reported involved the use of improper procedures
to cope with a quality-related accident. Both cases were strictly
investigated and properly handled, and necessary countermeasures were taken to prevent recurrence.

Compliance Education

 ducation on Compliance with Transaction-relatedE
Laws and Regulations
Toppan regularly organizes transaction-related training andchecks and audits how business transactions are being handled in Japan. Both measures are key to preventing improper
export and import transactions and ensuring compliance with
the Subcontract Law and the Act Concerning Special Measures for Pass-on of Consumption Tax. In fiscal 2013, a totalof 325 employees participated in group sessions focused onexport controls under the Foreign Exchange and Foreign Trade
Act; 1,571 employees were trained on compliance with the
Subcontract Law and the Act Concerning Special Measuresfor Pass-on of Consumption Tax; and as many as 6,120 employees took a course on export controls via the e-learning system.
Briefing on ComplianceToppan was not involved in any serious accidents or violationsof laws or regulations in the course of business in fiscal 2013.

Toppan Group Helpline

Fair Operating Practices

Training for Conduct Guidelines Promotion Leaders
As in previous years, Toppan held group training for Conduct
Guidelines Promotion Leaders in fiscal 2013. The training wasscheduled in two phases. In the first, 664 Leaders were trainedin 41 sessions across Japan from May to August 2013. In thesecond, 541 Leaders were trained in 36 sessions from November 2013 to March 2014.

Toppan devises ways to enhance the effectiveness of training at the sessions through activities such as group discussions using case methods describing actual incidents andaccidents.

When the problem
remains unresolved

Communicator
Any Group employee

Reporting andconsultation
Reporting on
progress andresults, follow-up
communication

Superior
Internal reporting(emails or sealed documents sentwith an employee’s name)Training for Conduct Guidelines Promotion Leaders (Kumamoto Plant)

Approach to Intellectual Property

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

Reporting

Department responsible forinvestigation and countermeasures

Protection and management of intellectual property is a crucial issue
for Toppan, a company operating in the three fields of Information &Communication, Living Environment, and Material Solutions. The­Company devotes strict attention to measures to prevent the infringement of copyrights, trademarks, and other intellectual property rightsof third parties while obtaining patents for its own technologies andbusiness models.
Along with special training for employees, planning departments regularly hold training sessions for business partners. Participants in thesesessions acquire basic knowledge of laws on intellectual property rights
by reviewing actual cases involving problems in design work and the like.

TOPPAN CSR REPORT 201425

Promoting CSR Procurement
The Toppan Group implements CSR initiatives in cooperationand collaboration with business partners throughout the entire
supply chain. The Toppan Group CSR Procurement Guidelines
are a set of principles the Group observes to drive thisendeavor. These guidelines consist of the Basic Procurement
Policy, a conceptual framework to be closely observed by every
Toppan employee involved in procurement operations, andthe CSR Procurement Standards, a set of requirements to besatisfied by every business partner. In January 2014 the Grouprevised them into guidelines stipulating human rights, labor,
the environment, and anti-corruption, the four issues globallyemphasized in CSR initiatives. Toppan also held briefing sessions for business partners and conducted questionnaires toreview the status of their measures to address corporate social
responsibility (➞PP. 10, 18).
Turning to the environment, the Toppan Group promotes
CSR procurement in line with the Standards for the Management of Chemical Components of Raw Materials and thePaper Procurement Guidelines for the Sustainable Use of­Forest Resources.

Verifying the Legality of Lumber as Paper Material
Toppan promotes the sustainable use of forest resources bymonitoring paper suppliers (business partners) to ensure thatthe lumber they use for paper production is legally obtained.
Toppan surveyed 50 sites of 45 business partners aroundthe world in fiscal 2013 and confirmed that all of the procured
lumber was obtained legally. Toppan provided the results fromthese inspections to the CDP Forest program, an initiative tocollect information on corporate practices concerning the sustainable use of forests and timber products conducted by CDP,
an organization through which companies can disclose theirenvironmental information to global investors.

Fair Operating Practices

Promoting Compliance in Procurement Departments
The Toppan Group regularly checks whether its procurement
departments operate properly in accordance with the Basic
Procurement Policy in their transactions with business partners. The Group asked 15 business partners to fill out questionnaires in fiscal 2013 and used the results to improve­compliance in procurement operations.
The Group has also established the Supplier Hotline, a portal
for receiving reports from business partners, on its website.

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

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

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

26

TOPPAN CSR REPORT 2014

Conduct Guidelines and Information Management Policy
Conduct Guidelines
Here are the specific conduct guidelines presented after Chapter 1 of the Conduct Guidelines (described on page 6).
Chapter 2: Specific Conduct Guidelines
Chapter 2 defines the specific conduct practices that we should undertake based on the Basic Principles provided in Chapter 1.
Basic Principle 1: Respecting basic human rights
1. Recognizing the diverse values of individuals and respecting personalqualities and individuality
2. Prohibition of discrimination of any kind
3. Prohibition of sexual and power harassment
Basic Principle 2: H aving high ethical standards and acting asa responsible member of society
In the conduct of business
1. Acting with pride as a member of the Toppan Group
2. Prohibition of tacit approval of illegal conduct and rule violations
3. Respect for foreign cultures and customs
In our private lives
4. Prohibition of conduct that causes distress to other people
5. Prohibition of drink-driving
6. Prohibition of the possession and use of illegal drugs
7. Prohibition of gambling

Compliance with company rules
12. Maintaining discipline and order in the workplace
13. Prohibition of other work without the company’s permission
14. Prohibition of conduct that causes a conflict of interests with the company
15. Prohibition of receipt or provision for personal gain or rebate
16. Appropriate management of assets entrusted to the company by customers
17. Appropriate management and use of company assets
18. Prohibition of prejudicial treatment of persons that have reported problems
via the appropriate procedure
19. Fulfilling duties with integrity
20. Reporting promptly and appropriately

1. Prohibition of any dealings with antisocial groups
2. Prohibition of involvement in antisocial activities
3. Prohibition of provision of unjust benefits
Basic Principle 5: S triving to improve quality and providing creations
that contribute to customer satisfaction
1. Making our best efforts for the customer and building a relationship of trust
2. Striving to improve quality in every process
3. Fully ensuring the safety and security of products and services
4. Prohibition of the infringement of the intellectual property rights of others
Basic Principle 6: R ecognizing the importance of information related
to business and managing it appropriately
1. Protecting information regarding customers
2. Protecting the company’s confidential information
3. Appropriate handling of personal information
4. Striving for the appropriate management of information and records
Basic Principle 7: P roactively undertaking conservation of the global
environment
1. Striving to reduce the environmental burden of business activities
2. Promoting businesses with consideration for the environment
Basic Principle 8: Embracing change and taking on new challenges
1. Making proposals that embrace change to customers
2. Advancing technical development that meets the needs of customers
3. Having an awareness of problems and striving to improve the status quo
4. Striving to enhance one’s knowledge, skills and techniques
5. Securing and using intellectual property
Basic Principle 9: Building trust from society through social contribution
activities and appropriate disclosure of information
1. Proactively participating in the company’s activities to contribute to society
and local communities
2. Contributing to the development and passing on of skills and culture
3. Disclosing information appropriately and enhancing the transparency ofbusiness activities

Fair Operating Practices

Basic Principle 3: C omplying with laws and company rules andconducting fair business operations
Legal compliance1. Prohibition of collusion and cartels
2. Prohibition of improper conduct in dealings with business partner companies
3. Prohibition of improper conduct against competitors
4. Prohibition of false transactions
5. Respecting business partners’ standpoints and building appropriate relationships with customers
6. Prohibition of bribery and inappropriate entertainment practices
7. Prohibition of illegal political contributions or donations
8. Prohibition of insider trading
9. Prohibition of illicit import and export transactions
10. Prohibition of child labor and forced labor
11. Compliance with international rules and local laws in overseas business

Basic Principle 4: Avoiding all links with antisocial groups

Basic Principle 10: B ringing together individual strengths to fully
exploit the integrated strength of the group
1. Striving to create a lively and vibrant workplace
2. Striving to create a safe and clean workplace
3. Taking pride in the Toppan Brand and striving to cultivate it
4. Group companies working together to maximize integrated strength
Established in June 2000

Revised in November 2010

Toppan Group Basic Policy on Information Security
As a group of companies operating in the information communication industry, each of us at the Toppan Group carries out Group-wide information security
management in the recognition that the management of information necessary for business is a significant managerial challenge for us as a means to reciprocate our customers’ trust and promote the ongoing growth of the Toppan Group.
1. We manage information necessary for our business appropriately in observance of our in-house rules, the law, and the principles of social order.
2. We collect information for appropriate purposes using appropriate
methods.
3. We safely manage the information entrusted to us by customers in orderto reciprocate our customers’ trust.

4. We are deeply aware of the risks to the information assets we handle, suchas illegal access, loss, damage, falsification/manipulation, and leakage of
information, and take necessary and reasonable safety measures against
these risks. We deal with and rectify any problems that occur promptly andin an appropriate manner.
5. We establish, operate, maintain, and continuously improve information
security management systems.
Established on April 1, 2001

Revised on August 1, 2011

TOPPAN CSR REPORT 201427

Consumer Issues
Points oppan received two awards for its universal design (UD) initiatives in fiscal 2013.
T
Toppan works to continue acquiring information security management system (ISMS) certifications in order tofurther secure personal information.
A Toppan-made calendar became Japan’s first calendar to acquire Carbon Offset certification.

Assuring Product Safety and Quality
Quality assurance for products at Toppan is a concern for every
department, not only the departments directly responsible for
production. The departments involved in marketing, R&D, planning, design, sales, and delivery all contribute to quality. This
is why Toppan describes quality assurance in production as a
total activity (“total quality assurance”) and strives to improve
product quality and manage product safety.

Consumer Issues

Product Safety
Toppan has established a Basic Stance on Product Safety
Management and Basic Guidelines on Product Safety Management to secure the safety management of the products it
manufactures. The latter provides guidelines for the following
measures: the establishment of a structure to secure productsafety by identifying and evaluating the risk of improper use
or other product-related mishaps and complying with laws
and regulations relevant to products manufactured by eachdivision; information collection and provision and actual measures in the case of product-related accidents or problems; andproduct recall procedures.
Every Toppan site continues improving its quality management system (ISO 9001) to bolster product safety management. One hundred and eighty-six employees took part intraining sessions for internal auditors at operational sites infiscal 2013.

Basic Stance on Product Safety
Management
We promote product safety
management throughout
the Group by securing safety andimproving the quality of our products
based on the Basic Principles ofConduct Guidelines andthe principles of corporate social
responsibility as a protector ofuser safety and health.

 ertified Approval System for Manufacturing in FoodC
PackagingFood packaging requires exacting quality assurance for safety
and sanitation. Toppan has adopted a certified approval system to ensure that the operational sites of Toppan and partner companies can manufacture containers and packages
only after receiving the required ratings in audits. The audits
are conducted based on the Quality Assurance Guidelines
for Food Packaging using a checklist. Toppan carried out 17
audits at 17 operational sites inside and outside the Company
in fiscal 2013.
Management of Chemical Substances in Products
Toppan intensively promotes product safety management inall manufacturing processes, from raw material procurement
to product shipment, by controlling various chemical substances whose use is prohibited or restricted. While adhering
to green procurement standards prescribed by client companies, the Group has established a set of Green Procurement
Standards attuned to the features of products manufactured
at plants in the business fields of Material Solutions, Living
Environment, and Information & Communication. Toppan manages chemical substances in products throughout the entire
supply chain.

Audits for the Food Filling/
Packing Businesses
Audit Points• Agreement with customers• Quality assurance system• Management of equipment andinspection devices• Management of safety and sanitation• Steps to prevent the admixture ofdifferent products• Steps to prevent the admixture offoreign substances• Steps to prevent the outflow of
defective products• Steps to prevent contamination• Traceability• Security• Education and training• Maintenance of systems andframeworks

Audit for a food filling/packing site

Operational Sites Audited
Food filling/packing businesses• 5 operational sites at manufacturingsubsidiaries• 12 operational sites at production
business partners

Training session for internal auditors

28

TOPPAN CSR REPORT 2014

Universal Design Initiatives
Universal design (UD) is one of the prime corporate social
responsibilities for Toppan, a company that designs and produces packaging and communication tools consumers see
and use every day.
Toppan strives to help realize the fulfilling lifestyles enunciated in the Corporate Philosophy by providing people withattractive, easier-to-use products and services. In keeping with
the Toppan Declaration on Universal Design and Toppan’s Seven
Principles on Universal Design, the Company promotes UD
initiatives that assign greater weight to sensory values andcustomization while emphasizing functions such as understandability and usability.
http://www.toppan.co.jp/ud/ (in Japanese)

Consumer Issues

Examples of Universal Design
In the Living Environment field, Toppan has been applying
its unique research and development abilities to devise UD
proposals that enhance the inherent brand values of client
products.
In fiscal 2013, Toppan redesigned the container for “moony
baby wipes” in collaboration with Unicharm Corporation, themanufacturer of the product. This new container has multiple
finger grips to allow users to hold the container with one hand.
The container also has a special pushup button at the bottom

to push up the wipes and make them easier to pull out when
they start to run short.
In fiscal 2013, Toppan won the 37th Kinoshita Prize sponsored by the Japan Packaging Institute in recognition of an
outstanding achievement in R&D for packaging. The prizewinning packaging was “Sosogi Jozu,” a stand-up pouch developed using a proprietary bag-making technology to makerefilling easier. Unilever Japan KK has adopted Sosogi Jozu
for refill bags for its hair care products. Its “LUX” brand earned
the chief’s award from the Bureau of Manufacturing Industries
under the Ministry of Economy, Trade and Industry of Japan
at the Japan Packaging Competition sponsored by the Japan
Federation of Printing Industries. The wide spout of Sosogi
Jozu opens automatically when torn at the top, for easier refill
pouring.
In the field of Information & Communication, Toppan assigns
high value to diversity awareness, enhanced user-friendliness,and continuity. Departments in this field offer UD proposals toclient companies to help them design manuals and communication tools that are easier-to-use, superior in quality, andaccessible to more people. Their proposals are total solutions
for continuous usage covering the whole process from analyses of existing problems and the development and implementation of in-house training programs to specialist support
for the editing, design, and production of tools and manuals.

Toppan’s Seven Principles on
Universal Design
1. Design products and services that are
more responsive to people with different
physical abilities and perceptions.
2. Facilitate communication using multiple
channels for communication, including
visual, aural, 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 lessstrength (remove the physical burdens).

Unicharm moony baby wipes

Unilever Japan LUXThe pushup button at the bottom pushes up
the wipes and makes them easier to pull out
when they start to run short.

The wider spout opens automatically when torn
at the top, for easier refill pouring.

5. Design products that are safe to use procedurally, functionally, structurally, materially, and environmentally.
6. Provide products at a reasonable priceand in the amounts required by society.
7. Engage in design that appeals to thesenses with consideration for comfort,
enjoyment, and beauty.
Established in 2001
Revised in April 2010

TOPPAN CSR REPORT 201429

Protecting Personal Information
Toppan treats all personal information entrusted to the Company safely and securely in order to protect the interests andrights of individuals, to reciprocate the trust of customers, andto cope with the growth of more-personalized communication
services.
 trictly Managing the Handling of Personal
S
Information
Personal information entrusted to Toppan by customers isnever handled outside tightly secured areas that have passed
qualification reviews based on stringent security criteria.
­Toppan operates 58 qualified areas across Japan as of March
31, 2014.
More of these areas are working to acquire information
security management system (ISMS) certifications in addition
to PrivacyMark accreditation. Toppan’s tightly secured areasat the Higashinihon Division acquired the ISMS certification in
fiscal 2013.

Tightly Controlled High-security Service
The Gift Card ASP Service is a real-time balance management
service jointly operated by Fujitsu FIP Corporation and Toppan
for the settlement of gift card transactions. In August 2013
this service became the first payment service in Japan toacquire a rating of AAAis, the highest rating for information
security.

Consumer Issues

 ublishing In-house Educational Tools for Use
P­Outside the Company
The Close Calls on the Job series has long been used as a
key in-house educational tool at Toppan’s workplaces acrossJapan. Edited under the supervision of professionals, thisseries was published by PHP Institute, Inc. in December 2013as a handbook exclusively for corporate customers. The bookcompilation of the series covers topical themes such as precautions for the use of smartphones and social media.
This book presents examples of misunderstandings andmistakes in actual situations when workers are misled into
thinking “It’s too late to ask” or “I can just wing it!” Materials
are presented in the form of questions and answers accompanied by options and explanations. The book sells outside
Toppan and remains in use as an in-house educational toolacross Toppan Group companies in Japan.

Number of Domestic Sites with Tightly Secured Areas Designated for
the Handling of Personal Information (as of March 31, 2014)

Kansai (14 areas)

Hokkaido (3 areas)

Chugoku & Shikoku(1 area)

Tohoku (4 areas)

Kyushu (2 areas)
Kanto (32 areas)

An easy-to-understand introduction to information security (in Japanese; published by PHPInstitute, Inc. with editorial support from Toppan
Printing Co., Ltd.)

Chubu (2 areas)

Tightly Secured Areas at Toppan Group Companies with ISO/IEC 27001:2005 Certification (as of March 31, 2014)
IInformation and Communication Division (IT Solutions, IT Solution Department, Toppan Idea Center; Service Integration Department, IT Service Division,
Toppan System Solutions Co., Ltd.), Toppan Printing Co., Ltd.
IInformation and Communication Division, Toppan Printing Co., Ltd.; Toppan Communication Products Co., Ltd.; Toppan Joho Kako Co., Ltd.
IOji Security Room, Data Center, Toppan System Solutions Co., Ltd.
IKyushu, Chugoku and Shikoku Team and ISMS Promotion Committee, Information Security Management, Nishinihon Division, Toppan Printing Co., Ltd.
IHigashinihon Division, Toppan Printing Co., Ltd.

30

TOPPAN CSR REPORT 2014

Contributing to Sustainable Consumption
Toppan produces a host of environmentally friendly products
designed to contribute to a sustainable society.
In the field of flexible packaging materials, Toppan worked
together with Toyobo Co., Ltd. to develop a mechanically­recycled PET film for laminated packaging materials in 2012.
This film is composed of more recycled resin than almost anyother recycled PET film ever made: 80%. CO2 emissions in thefilm production stages up to final manufacturing can be
reduced by about 24% compared with conventional petroleum-based PET films.
A new material composed of this mechanically recycled
PET film and a biomass polyethylene (PE) film developed by
Toppan in 2011 was adopted for powder detergent packaging
in September 2013. The biomass PE film is partially composedof a raw material derived from sugarcane and has a biomass
ratio of up to 50% (by weight). The packaging material madefrom these two films retains the physical properties of existing
packaging materials in terms of shock resistance, tensile
strength, laminating strength, and so on.

Consumer Issues

Powder detergent packaging made from­mechanically recycled PET film and biomass
polyethylene (PE) film

Carbon Offsetting Based on the Carbon Footprint of
Products

The carbon footprint of products (CFP) is a method to disclose
CO2-equivalent greenhouse gas (GHG) emissions associatedwith a product or service throughout its entire life cycle, fromraw-material procurement to disposal and recycling. The CFP
is expressed as a single number anyone can understand. In
fiscal 2012 Toppan acquired the CFP system certification in
two fields: publication and commercial printed materials (intermediate goods) and printed materials for advertisement andbusiness.
In fiscal 2013, Toppan participated in the Pilot Project for
the “Carbon Offset Products Making Use of the Carbon
Footprint” Program of 2013 operated by the Ministry of­­Economy, Trade and Industry of Japan. This project aims toestablish a framework under which participating enterprises
offset the GHG emissions of their products or services withcredits equivalent to their CFPs (“carbon offsets”) and label
their products with the Carbon Offset mark. Toppan calculated
the CFP of the Toppan ecollable Calendar, offset that amount,
and acquired the Carbon Offset certification. The Toppan ecollable Calendar was the first calendar in Japan to acquire thiscertification.
Toppan will offer the CFP registration and disclosure service
to client companies as a means of disseminating more products with CFP labels.

Toppan ecollable Calendar

TOPPAN CSR REPORT 201431

Community Involvement and Development
Points oppan Group domestic and overseas sites have been engaging in diverse community contribution activities
T
based on dialogue with neighboring communities.
Toppan sponsored the 7th Toppan Charity Concert series to help enhance literacy in developing countries.

Community Contribution and Involvement
The Toppan Group has supported the communities in which
it operates by addressing local issues and contributing to sustainable local development as a community member. Its
domestic and overseas sites have engaged in contribution
activities forged through constant dialogues with neighboring
communities. Their dialogue is sustained through manifold
activities, including involvement in organizations that bring
together the opinions of community members.

Community Involvement and Development

32

Dialogues with Communities
Toppan sites participate in the activities of local resident associations and other community organizations. The sites haveshaped business activities and community contribution activities by referring to the opinions sounded out from their communities. Meetings and conferences are also held at the sites
to inform neighborhoods of production operations and environmental initiatives, to answer questions from community
members, and to elicit opinions.
In fiscal 2013, an operational site in Sakado City, Saitama
Prefecture invited some 370 visitors from neighboring communities into its premises for a plant tour organized jointly withresident associations. Participants shared an enriching experience with Toppan personnel by touring the plant, seeing thefacilities and products manufactured, receiving reports onenvironmental efforts, and taking part in a bookmaking workshop program.

Fostering Future Generations and Contributing to
EducationMany operational sites at the Toppan Group organize programs
to foster the children and young people who one day will besustaining society and communities. Japanese sites arrange
plant tours, work experience programs, internships, and othersimilar activities.
An operational site in Asaka City, Saitama Prefecture helda plant tour as a general study activity for local elementary
school students to enrich their education. The tour formed
part of a special class designed to get the children to think
about issues of the global environment and how they cancontribute to environmental conversation.
Forming Cooperative Relationships in Emergencies
Toppan and local communities have been taking joint steps tominimize damage caused by large-scale disasters.
Under an agreement signed by an operational site in­Fukushima Ward, Osaka City (Osaka Prefecture) with neighboring communities, the site will open part of its premises asa tsunami evacuation building, a temporary shelter for local
residents, if a large-scale disaster involving a tsunami strikes
the surrounding area. The site also organized disaster drills
with 149 participants in fiscal 2013.

Awards for Blood Donation Drives
Toppan had the honor of receiving the “Promoting
Blood Donations Award” from the Emperor Showa
Memorial Fund for Blood Programme at the “49thNational Awards Ceremony for the Promotion of
Blood Donation” (sponsored by the Ministry of
Health, Labour and Welfare of Japan and the Japanese Red Cross Society) held on July 5, 2013. The
Emperor Showa Memorial Fund for Blood Programme was founded by the Japanese Red Cross
Society with money donated from the Emperor­Showa. Each year the fund bestows the “Promoting
Blood Donations Award” to commend the outstanding achievements of individuals and groups in disseminating the blood donation philosophy and indeveloping activities to promote blood donation.
Toppan has undertaken Company-wide blood donation drives across its operational sites in Japan for
45 years, since 1967. This activity was highly lauded
as a cooperative effort for the stable supply of blood
products for blood transfusion. The 2013 award waspresented by the Crown Prince of Japan, the Honorary
Vice-President of the Japanese Red Cross Society.

TOPPAN CSR REPORT 2014

Plant tour for neighboring communities(in Saitama)

Plant tour for elementary school students(in Saitama)

Roundtable conference with community
members (in Niigata)Class for elementary school students invited
to the site (in Aichi)

Tie-up Activities with Local Cultural Events
Toppan has proactively engaged in activities to pass on local
traditional culture to coming generations in the communities
neighboring its operational sites.
An operational site in Taito City, Tokyo works to strengtheninteraction with the Taito community and to pass down thelocal culture and traditions. Each year portable shrines are
displayed in the site’s lobby before local residents parade themthrough the streets in a seasonal festival. An operational sitein Higashi-Omi City, Shiga Prefecture, meanwhile, takes partin the traditional Higashi-Omi Giant Kite (Odako) Festival. The
site encourages employees to submit kite designs and thenholds workplace votes to select winning designs. Giant kites
fashioned from the winning designs are flown during the festival.

Toppan announced its participation in the United Nations
Global Compact in September 2006 and pledged support for
its principles. Convinced anew that cooperative solutions to
global issues are vital for its community contribution activities,
the Company launched the Toppan Charity Concert series in
the next year, fiscal 2007. This series aims to support global
initiatives to raise literacy rates in developing countries. Literacy is the ability to read, write, and calculate with proficiency
sufficient to function well in daily life.
The first two of the eight Millennium Development Goals(MDGs) seek to eradicate extreme poverty and hunger andachieve universal primary education. To realize the MDGs, a
set of common goals of the international community, Toppan
regards literacy as an essential skill enabling people in developing countries to stand on their own feet. The annual concert
series is a fundraising mechanism to support literacy.
Toppan sponsored the 7th Toppan Charity Concert series
in fiscal 2013 and donated 1,939,000 yen to the Asia-Pacific
Cultural Centre for UNESCO (ACCU). The funds are now being
used for literacy education and classes on maternal and childhealth for mothers raising young children in Cambodia.

Work experience program (in Chiba)

Toppan kite at the Giant Kite Festival(in Shiga)

Literacy class in Cambodia ©ACCU

Local portable shrine exhibition (in Tokyo)

Visit to a welfare facility for the elderly(in Thailand)

A mother and her child learning together in theliteracy class ©ACCUTOPPAN CSR REPORT 2014

Community Involvement and Development

Initiatives at Overseas Sites
Community contribution activities are also conducted at overseas sites.
At a site in Thailand, 35 employees visited a welfare facility
for the elderly on a mission “to fill hearts with love.” During
the visit they sang songs, played games, and lunched withresidents. The site also donated daily necessities to the welfare
facility.

Cooperating with International
Communities to Address Social Issues

33

The Environment
Points he Toppan Group has established a set of medium-and-long-term environmental targets for fiscal 2020 andTpresses ahead with activities in four areas: Environmental Management, Eco-protection, Eco-creativity, andEnvironmental Communication.
The Group has calculated its entire value chain greenhouse gas emissions (scope 3 emissions) and identified
which activity categories represent larger sources of emission.

Toppan’s Environmental Activities
Four Environmental Activity Areas
The Toppan Group promotes environmental initiatives basedon The Toppan Group Declaration on the Global Environment,a basic philosophy for the environmental conservation activitiesof the Group.
Toppan’s environmental activities are divided into four areas—
Environmental Management, Eco-protection, Eco-creativity,and Environmental Communication. The Group enacted a setof five bylaws to strengthen the Eco-protection Activities performed to minimize environmental burden associated with theGroup’s corporate operations: the Bylaw on Global Warming
Mitigation, the Bylaw on the Building of a Recycling-oriented
Society, the Bylaw on Chemical Substance Management, theBylaw on Pollution Control, and the Bylaw on Biodiversity. The
Toppan Group has taken steps to conserve the global environment in each of the areas based on the five bylaws.

The Toppan Group Declarationon the Global Environment
As responsible members of international society,we who work within the Toppan Group
strive to realize a sustainable society
through forward looking corporate activities with consideration
for the conservation of the global environment.
Basic Principles
1. We observe all laws, regulations and in-company rules relating to theenvironment.
2. For the future of the Earth, we strive for the effective utilization of limited
resources and the reduction of all types of environmental burden.
3. W ith foresight, we promote the development and widespread use of
products that show consideration for the environment, and contribute to the environmental activities of customers.
4. We engage in communication related to the environment with a wide
range of peoples both inside and outside the company, and strive formutual understanding.
5. We also take a proactive approach to environmental conservation incorporate activities in international society.
Established in April 1992
Revised in April 2009

The Environment

Calculating Scope 3 Emissions
More and more businesses around the world nowadays are quantifying and managing their value
chain greenhouse gas (GHG) emissions associated with every stage of operation from raw material
procurement to the distribution and disposal of products (scope 3), in addition to direct emissions(scope 1) and indirect emissions associated with purchased electricity consumption (scope 2).
The Toppan Group has calculated its scope 3 emissions in fiscal 2012 and 2013 to identify thecategories of corporate activity that represent larger sources of GHG emissions and to establish
priority targets in its emission reduction strategy. This calculation shows that raw material consumption in category 1 (manufacturing of products Toppan has purchased), categories 4 and 9 (transportation and distribution of these products), category 12 (end-of-life treatment of products Toppan hassold), and other categories collectively accounts for the largest share of Toppan’s GHG emissions.
The Group will continue monitoring and evaluating GHG emissions across its value chain andwork to reduce environmental burden incurred throughout the life cycle and production process ofevery product.

Scope 3

Scope 2

Scope 1-3 Greenhouse Gas Emissions
Othercategories*

Category
12
Category
9
Category
4

Scope 3
4,396
kilotons

4,186
kilotons

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

I End-of-life treatment ofsold products and goods

Category
1

Scope 1
Suppliers, etc.
IProduction of raw
materials, etc.

The reporting
company itself

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

I Fuel combustion
I Emissions from industrial processes
I Transportation anddistribution of raw
materials, etc.

I Transportation anddistribution of soldI Employee commuting
products and goods
I Sales activities,business travel

Scope 2445
kilotons
Scope 1
232
kilotons

413
kilotons
220
kilotons
Fiscal 2012

Fiscal 2013
*Categories 2, 3, 5, 6, 7, 8

34

TOPPAN CSR REPORT 2014

Environmental Management Activities
Operating Environmental Management Systems
The Toppan Group operates established environmental management systems (EMSs) based on its environmental management rules.
Sixty-nine Group domestic sites undertake environmental
activities to achieve the targets set under the Eco-protection
Activity Plan. The Ecology Center collects environmental performance data as the organization responsible for supervising
the Group’s environmental activities. The center then evaluatesand verifies the data and reports the results to the Board of
Directors and other management bodies. Points of improvement for the continuous upgrading of environmental management are proposed and implemented throughout the entire
Group.
The environmental audit follows a three-stage screening
process: a management system audit by an ISO 14001 registrar, an internal audit by the Ecology Center, and anotherinternal audit at the individual site. Toppan underwent man-agement system audits for 48 systems and carried out internal
environmental audits at 69 operational sites in fiscal 2013.
Necessary procedures were taken to correct the deficiencies
pointed out during the audits.
Improving Environmental Literacy
The Toppan Group implements various measures to improvethe environmental literacy of its employees based on social
trends related to the environment, priority topics for year-byyear environmental activities, and other environment-related
issues.
Toppan arranged Group-wide e-learning programs in fiscal
2013, along with sessions for optional training, rank-based
training, and internal auditor training. The Group focused
closely on rank-based education by organizing e-learning programs for managerial staff and training sessions for employees
in manufacturing and technology departments. Briefing­sessions on chemical substance control were also held at 23
sites to improve the reliability of control measures.

1. Mitigation of global warming
IReduce CO2 emissions by 11%
compared to the fiscal 2008 level(751 kilotons
669 kilotons: –82 kilotons)

2. A
 ction for building a
recycling-oriented society

3. C onservation of the atmosphericenvironment

IReduce final landfill waste disposalby 87% compared to the fiscal
2008 level(1,584 tons
206 tons: –1,378 tons)

IReduce VOC emissions into theatmosphere by 70% compared to
the fiscal 2008 level(7,326 tons
2,198 tons: –5,128 tons)

The Environment

Medium-and-long-term Environmental Targets for Fiscal 2020

Values, Results, and Evaluation of Environmental Targets for Fiscal 2013 and Environmental Target Values for Fiscal 2014
Environmental Targets

1. Mitigation of
global warming
2. Action forbuilding
a recyclingoriented society

3. Conservation of
the atmosphericenvironment

IReduce CO2 emissions

Management
Indicators

Fiscal 2013
TargetValuesResults

Achievement
Evaluation
Rates

Environmental
Target Values for
Fiscal 2014

ICO2 emissions

688 kilotons

632 kilotons

108.1%

S

620 kilotons

ICO2 emissions perunit of sales

0.75 tons/
million yen

0.72 tons/
million yen

103.9%

A

0.70 tons/
million yen

IReduce final landfill waste
disposal

IFinal landfill waste
disposal

455 tons

483 tons

93.8%

B

375 tons

IReduce waste generation
per unit of production value

IWaste generation perunit of production
value

0.735 tons/
million yen

0.731 tons/
million yen

100.5%A—

IReduce VOC emissions into
the atmosphere

IVOC emissions into
the atmosphere

4,762 tons

4,238 tons

111.0%

S4,527 tons

IVOC emissions into
the atmosphere perunit of production
value

0.0128 tons/ 0.0121 tons/
million yen
million yen

105.5%

S—

Evaluation criteria: S, Results achieved far surpass the targets (achievement rate [%] 105); A, Targets achieved (100 achievement rate [%]B, Activities fully carried out, but targets unachieved (70 achievement rate [%] 100); C, Activities insufficient (achievement rate [%] 70)
Achievement rates: 200 – (values actually achieved / target values) × 100 [%]105);

TOPPAN CSR REPORT 201435

Toppan’s Environmental Burden andEnvironmental Impact*Life-cycle Impact assessment Method based on Endpoint modeling (LIME):
A version of the damage-oriented environmental impact assessment­method adjusted for application in Japan based on the environmental
background domestically. Damage derived from impact categories is quantified for each part of the environment to be protected (e.g., human health,biodiversity). Once the damage is quantified, the environmental impacts ofmultiple factors are integrated into a single index.

100%
Other
80%
Environmental impact

The Toppan Group applies the LIME* life-cycle assessment
method to consolidate INPUT and OUTPUT data on environmental burden associated with business activities into a single
index of environmental impact.
This assessment provides a holistic view of the environmental impact of all business activities at the Group and serves
as a benchmark for establishing medium-and-long-term environmental targets and checking the effectiveness of environmental measures. Toppan has managed to reduce its environmental impact every year. In fiscal 2013, the Group attained a
30% reduction compared to the fiscal 2006 level.

Types of Environmental Impact by Business Field
Other

Other

Photochemical
oxidants

60%
Globalwarming40%

GlobalwarmingGlobalwarming

20%
Resource
consumption

Resource
consumption

Resource
consumption

Information &Communication

LivingEnvironment

Material
Solutions0%Note: In the Living Environment field, the chart shows a significant impact
from photochemical oxidants, pollutants formed by reactions between
sunlight and VOCs released into the atmosphere. In the Material
Solutions field, the chart shows the comparatively high global warming effects from energy consumption in clean rooms and other facilities with high energy-loads. The Toppan Group includes these indicators among its medium-and-long-term environmental targets andhas taken steps to reduce environmental impact of these types.

The Environment

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

INPUT
Material Input

Total Energy Consumption

Total Water Consumption

Total PRTR Handling

Information &Communication
760,166 (56.0%)
Living Environment
557,764 (41.1%)

Information &Communication
3,729 (25.9%)
Living Environment
4,386 (30.4%)

Information &Communication
915 (12.0%)
Living Environment
1,755 (23.0%)

Information &Communication
865 (16.4%)
Living Environment
2,060 (39.1%)

Material Solutions
38,340 (2.8%)

Material Solutions
5,645 (39.2%)

Material Solutions
4,589 (60.2%)

Material Solutions
2,341 (44.4%)

Non-production sites
0 (0%)

Non-production sites
657 (4.6%)

Non-production sites
367 (4.8%)

Non-production sites
2 (0.0%)Total 1,356,270 (Unit: tons)

Total 14,417 (Unit: 1,000 GJ)

Total 7,627 (Unit: 1,000 m 3 )Total 5,269 (Unit: tons)

OUTPUT
Total Waste Discharge

CO 2 Emissions

Total Effluent Discharge

Total PRTR Release

Information &Communication
128,191 (50.1%)
Living Environment
93,919 (36.7%)

Information &Communication
160,651 (25.4%)
Living Environment
212,744 (33.6%)

Information &Communication
547 (8.6%)
Living Environment
1,292 (20.4%)

Information &Communication
51 (20.8%)
Living Environment
171 (70.1%)

Material Solutions
30,443 (11.9%)

Material Solutions
232,456 (36.8%)

Material Solutions
4,146 (65.4%)

Material Solutions
22 (8.8%)

Non-production sites
3,338 (1.3%)

Non-production sites
26,554 (4.2%)

Non-production sites
355 (5.6%)

Non-production sites
0 (0.2%)

Total 255,891 (Unit: tons)

Total 632,404 (Unit: t-CO 2)

Total 6,340 (Unit: 1,000 m 3 )Total 243 (Unit: tons)

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

36

TOPPAN CSR REPORT 2014

Eco-protection Activities

kilotons for the year. The Itabashi Plant of Toppan Printing
Co., Ltd. and the Kawaguchi Plant of Toppan Communication­Products Co., Ltd. both received awards at the “Kanto EfficientElectricity Use Awards” sponsored by the Kanto Branch of theJapan Electric Association: the former received a special award
conferred by the chief of the Kanto Bureau of Economy, Tradeand Industry; the latter received the top award for outstanding
performance.
Improving Transport Efficiency in Logistics
Toppan Logistics Co., Ltd., the logistics specialist for the­Toppan Group, is working with shippers from Toppan Group
companies to reduce the energy consumption per unit of­transport volume by company vehicles and the total volumeof CO2 emissions from transport.
Energy consumption per unit of transport volume in fiscal
2013 was 58.2 kL/million ton-kilometers, 1.3% higher than thevolume recorded in fiscal 2012. The energy consumption perunit of transport volume for the five years from fiscal 2009 to
fiscal 2013 was reduced by an average of 3.1% per year,
surpassing the targeted average reduction of 1%. CO2­emissions were 34,886 tons, or 28.4% lower than the fiscal
2012 level.
Toppan Logistics will work to accomplish the targets forfiscal 2014 by optimizing transportation conditions and further
improving transportation efficiency.

The Environment

Mitigating Global Warming and Saving Energy
The Toppan Group has been reducing the total emissions ofcarbon dioxide (CO2) to help mitigate global warming.
The Group continued engaging in diverse activities throughout Japan in fiscal 2013 to cope with the power-supply shortages after the Great East Japan Earthquake of 2011. The
nationwide demand-monitoring system introduced a year
earlier continued operating as a tool for controlling peak power
demand in summer and winter. The electricity consumption
data compiled for each site via this system enables the Groupto review power contracts and encourage energy-saving
efforts on a site-by-site basis.
The Toppan Group also installed heat-radiation-prevention
materials for piping, painted heat-shield coatings on foldedplate roofs and other buildings, and replaced older utility facilities (installed more than 15 years ago) with high-efficiency
alternatives.
The Group is switching from mercury-vapor lamps and­fluorescent lights to LED lights gradually across operationalsites. All fluorescent lights were replaced by LED lights at thehead office in fiscal 2013. In September the Group installed
solar panels capable of generating 88 kW of electricity at the
Toppan Technical Research Institute’s Experiment Center.
As a result of these efforts, CO2 emissions in fiscal 2013
were reduced to 632 kilotons, below the targeted limit of 688

CO2 Emissions(1,000 t-CO 2)

Q CO 2 emissions

CO 2 emissions
per unit of sales(t-CO 2 /million yen)

1,500
1,200

1.00
0.71

0.75

0.76

0.72

900

0.80
0.60

751
600

695

679

300

632

0.40
0.20

0

0
2008

2011

2012

2013 (fiscal year)

Note: CO2 emissions are calculated by the method specified in the Guidelines for Calculating Greenhouse Gas Emissions from Businesses(2003) from the Ministry of the Environment (MOE) of Japan. The CO2
emissions associated with electricity consumption, however, are calculated uniformly as 0.378 t-CO2/MWh.
CO2 emissions in fiscal 2013 amounted to 806,900 t-CO2 whencalculated using the effective emission factor from another MOE
method specified in the Ministerial Ordinance Concerning the Calculation of Greenhouse Gas Emissions from Business Activities of Specified Dischargers (the latest amendment on March 31, 2010).

Solar panels (Experiment Center, Toppan Technical Research Institute)

All fluorescent lights at the head office replacedwith LED lights

TOPPAN CSR REPORT 201437

The Environment

Building a Recycling-oriented Society
In a drive to use limited resources more effectively, the Toppan
Group works to reduce the discharge of waste, increase
the recycling rate, and apply appropriate waste t­reatment
methods.
Waste paper derived from operational sites primarily in the
Information & Communication and Living Environment fields
makes up the largest portion (75.4%) of the total waste discharged at Group sites. This is followed by waste plastics fromplants in the Living Environment field and waste acids such aswaste etchant from plants in the Material Solutions field. The
Group has striven to increase the material recycling rate byprocessing waste paper into recycled paper, by separating
waste plastics and processing composite plastic into pellets,and by implementing other recycling methods. Waste acids,
meanwhile, have been processed internally with chemicaltreatment. A change in the method for treating particulates
discharged from incinerators resulted in a 100 ton increase in
the final landfill waste disposal in fiscal 2013, compared withthe year before. To reduce the landfill disposal, the Groupbegan reusing these particulates as a humidity control agent
for solid fuels in February 2014.
The waste volume, separation conditions, and other waste
profiles for each office were reported at periodic meetings ofthe Health and Safety & Fire- and Disaster-preparedness
Committees held at offices throughout fiscal 2013. The
reported data is provided as feedback to workplaces in orderto heighten awareness among employees. Through thesePreventing Pollution
The Eco-protection Promotion Committee at each Group site
sets in-house control standards more stringently than the regulatory standards require. By complying with these standards,
the Toppan Group works to reduce environmental burden andprevent pollution.
To prevent atmospheric pollution, the Group controls boilers and other plant facilities responsible for air pollutants bymanaging operations under appropriate combustion conditions. In fiscal 2013 the Group continued enhancing efficiency
in effluent-gas treatment by precisely controlling the plantfacilities subject to the requirements stipulated under the Air
Pollution Control Act of Japan. VOC and toluene emissions
into the atmosphere in fiscal 2013 were both reduced compared with the fiscal 2012 levels.
To prevent water pollution, the Group has installed wastewater treatment facilities designed to cope with specific water
consumption and pollutant conditions at individual sites.
Wastewater recycling systems have been installed at Material
Solutions plants that discharge effluents in significant amounts.
By recovering and reusing wastewater via these systems, theplants have been working to reduce the levels of water consumption and effluent discharge.

Total Waste Discharge and Final Landfill Waste Disposal

VOC and Toluene Emissions into the Atmosphere*(1,000 tons) Q Total waste discharge(tons)Q Final landfill waste disposal (1,000 tons)

350

efforts, Toppan Printing Co., Ltd. received the Award for Excellence from Chiyoda City in Tokyo at the “FY 2014 Awards for
Outstanding Waste Administrators for Large-scale Commercial Buildings.”

VOCs

2.5

10,0002.07,500 7,326

Toluene

313.8
280
210

267.6

265.1

255.9

1.6

1.5

4,888

5,000
140
0.6

70

0.4

0.5

0

0.5
0

2008

2011

2012

2013 (fiscal year)

Recycling Rate and Material Recycling Rate(%)

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

100
95

98.8
93.0

99.4

2008

2011

91.5

99.6

99.5

92.7

92.5

2012

2013 (fiscal year)

90
85
80
0

38

4,530

4,238

1.0

TOPPAN CSR REPORT 2014

2,500

0

362

317

281

221

2008

2011

2012

2013
(fiscal year)*Emissions into the atmosphere are calculated in conformance with thestandards established by the Japan Federation of Printing Industries (JFPI)
and the Japan Electronics and Information Technology Industries Association (JEITA).

The Toppan Group has also been striving to prevent groundwater pollution by checking facilities subject to the requirements stipulated by the revised Water Pollution Control Law
of Japan and taking other preventive measures based on theregulatory regime.
Controlling Chemical Substances
The Toppan Group has striven to reduce the consumption ofchemical substances to mitigate the impacts of these substances on the environment. For chemical substances designated under the Pollutant Release and Transfer Register (PRTR)
law of Japan, the Group continues reducing their consumption
and introducing safer substitutes by setting priorities in termsof both the type and range of application. These measures
helped the Group achieve a year-on-year reduction of 21.6%
in the handling amount of chemical substances designatedunder the PRTR law, surpassing the target for fiscal 2013.
Group production sites have also been appropriately
managing chemical substances based on established control
procedures.

Chemical Substances Designatedunder the PRTR Law*1(tons)

Total
handling

10,000

7,500

7,228

Total
transfer

Total
release

6,720
5,269

5,000

2,500 2,010

2,111

346

300

243

2011

2012

2013
(fiscal year)

0

1,891

The Environment

Approach to Environmental Compliance
In fiscal 2013 in Japan, one production site recorded VOCemission levels exceeding the regulatory standards set underthe Air Pollution Control Act. Four production sites, meanwhile,
recorded excessive levels of pH, BOD, or n-hexane extractable substances relative to the regulatory standards set forwater contaminants under the Sewerage Act. Regarding noise,

one production site exceeded the regulatory standards set
under the Noise Regulation Act. The Toppan Group took immediate corrective measures for every case, including steps toinspect facilities and revise the methods for facility control.
Since implementing these corrective measures, the Group has
reviewed control procedures and taken necessary actions toreliably prevent recurrences. As a preventive action against
environmental pollution, the Group holds regular drills to copewith potential emergencies and accidents during production
operations. Emergency-preparedness procedures are reviewed
whenever the results of the drills call for them.
In fiscal 2013, the Toppan Group introduced new control
standards to promptly detect malfunctioning equipment or
abnormalities in production processes and take required corrective measures. The Group has been advancing trend management based on the new standards using an in-house­environmental database to ensure that none of the regulatory
limits are exceeded.
Communities around Toppan plants filed four complaints
and inquiries at four sites in fiscal 2013. Three of them involved
inconveniences to community residents related to noise. The
Group has reviewed operation rules and either installed­sound-insulation facilities or assessed plans to install them.
The facilities g­ enerating noise are more strictly maintained andinspected to prevent noise-related problems. The Toppan
Group will continue enhancing the quality of its environmental
management through earnest dialogue with residents in surrounding communities.

Purification of Soil and Groundwater Pollution
Operational Site

DetailCurrent Progress*2

Itabashi Plant(Itabashi City, Tokyo)

Groundwater pollution byhexavalent chromium andtolueneContinuously monitored

Niigata Plant(Shibata City, Niigata)

Soil pollution by fluorine and its
compounds

Continuously monitored

Asaka Plant(Niiza City, Saitama)

Groundwater pollution by VOCs
(voluntary investigation of well
water on the plant premises)

Monitoring completed: Standard
values continuously met

Toppan Technical ResearchInstitute (Kita-Katsushika
District, Saitama)

Soil pollution by fluorine andfluorine compounds

Continuously monitored after
remediation*2 As of March 2014*1 Dioxins are excluded because of a differencein the counting unit.

TOPPAN CSR REPORT 201439

Promoting the Conservation of Biodiversity
IBiodiversity Conservation at Operational Sites
The Fukaya Plant in Saitama Prefecture has promoted biodiversity conservation within its premises in collaboration with
the Environmental NPO “SHU” since fiscal 2012. In fiscal 2013
the NPO and plant worked together in the summer to enlarge
conserved forest areas in the 3rd phase of a wildlife-support
project, “Paradise for Wild Birds.” Participants spotted acorn
seedlings and budding orchids, tangible effects of the program,in forest areas developed in fiscal 2012. They collaborated
again in the winter in the 4th phase to clean up the birdhouses
installed in fiscal 2012. Great Tits had nested in about 80% of
the birdhouses, creating a wonderful opportunity to view bird
nests in their natural state.
IImproving Land-use Practices at Operational Sites
Since fiscal 2010, a cumulative total of 13 operational sites
have applied the land-use assessment method* to monitor
organisms within their premises and to assess the degree towhich their land-use methods contribute to biodiversity.

IBiodiversity Conservation outside Operational Sites
The Saitama Ecosystem Conservation Society and the Asaka
Plant in Saitama Prefecture pooled their forces in a project tomake a mini-aquarium and observe creatures living in Yanase
River upstream of the plant. Participants collected aquaticorganisms to inhabit the mini-aquarium and learned how to
distinguish species and how the organisms living in a water
habitat can serve as a measure of water quality. Toppan
employees, meanwhile, planted trees and toured a waste incineration plant at Umi-no-Mori in Tokyo. The Umi-no-Mori sea
forest is a living example of a recycling-oriented zone whereplanting activities are transforming a waste island into a beautiful forest. The employees took part in a planting festival sponsored by Tokyo Metropolitan Government to plant saplings oflocal species that tolerate salty wind and bear blossoms andfruits attractive to birds. The plant tour spurred participants torethink the problems of urban waste.
*Based on a set of Guidelines for Sustainable Business Site Management®
established by the Japan Business Initiative for Biodiversity (JBIB)The Environment

40

Making signs for Paradise for Wild Birds

Creature watching at Yanase River

Planting trees at Umi-no-Mori (Sea Forest) inTokyo

Birdhouses for wild birds, with employees andtheir families joining in

Making a mini-aquarium at Yanase River

Incineration plant tour

TOPPAN CSR REPORT 2014

Environmental Communication Activities eveloping and Approving Environmentally FriendlyD
Products
In fiscal 2013 Toppan replaced Toppan’s 14 Environmental
Points (in-house criteria for approving eco-friendly products
set under ISO 14021) by establishing Toppan Standards forEnvironmentally Friendly Products, a new set of criteria covering five stages of the product life cycle. A total of 94 products
were registered as “environmentally friendly products” as ofthe end of March 2014.
Toppan will approve and register “exceptional environmentallyfriendly products” that are recognized as eco-friendly by thirdparty organizations or that have undergone life cycle assessmentfor quantification of environmental burden across the life cycle.

Presenting at Eco-Products 2013
At the Eco-Products 2013 fair in December 2013, Toppan
proposed new environmental solutions based on its own­“ecollable” concept oriented towards a sustainable society. By
combing “ecology,” “collaboration,” and “able,” the Company
intends to show that eco-tasks unachievable by any one actor
can be achieved through the collaborative actions of governments, companies, organizations, consumers, and otherstakeholders. These entities may work together for the development of new environmental technologies and the creationof new society-wide schemes to resolve environmental challenges. Toppan presented environmental solutions such as
packaging materials for lithium-ion batteries, the eco-friendly
Cartocan, and smart community initiatives. These products
and initiatives exemplify the endeavors Toppan has realized
through collaboration with client companies, organizations,
governments, and other entities in development, sales, andoperation.
In the “ecollable” booth, the Company set up a display on
packaging production processes using recycled resins androlled films that visitors could touch. Staff from companies andgovernments collaborating with Toppan publicly discussed
viable strategies for creating new society-wide eco-schemes.

Environment-related Businesses at Group Companies
Like Toppan itself, the companies of the Toppan Groupdevelop, produce, and market eco-friendly products in linewith standards they formulate themselves in consideration ofsocial demands.
The total sales of environment-related businesses—including, most notably, sales of environmentally friendly products
satisfying the in-house criteria of the Toppan Group—stood at
244.6 billion yen in fiscal 2013.
Toppan Standards for Environmentally Friendly ProductsLife Cycle Stage

Toppan Standards for Environmentally Friendly Products

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

TOPPAN CSR REPORT 2014

The Environment

Eco-creativity Activities

41

Independent Assurance
As seen in the Global Reporting Initiative (GRI) Guidelines
revised in May 2013, companies nowadays are required toassess the impacts throughout their value chains along withthe environmental and social impacts associated with the directbusiness operations of their own groups. Companies are also
required to take appropriate measures to address their impacts
in proportion to the influences they confer and to disclose
their policies, actions, performance, and other relevant facts.
Toppan has revised the Toppan Group CSR Procurement
Guidelines and newly disclosed greenhouse gas emissions
across its entire value chain (scope 3 emissions). This seems
to be a key step for meeting the social requirements describedabove. In coming reports we expect the Company to disclose
more detailed information on its efforts to address the impacts
throughout its value chain and the results it achieves.

The environmental performance data disclosed in this CSR
report had to be rearranged for better alignment with organizational restructuring. Overall, the data aggregation seems tohave been completed without any major disruptions. For dataon social performance, we believe that it will be an essential
challenge for the Company to expand the boundaries of reporting from Toppan Printing Co., Ltd. alone to more companies
within the Group. When reviewing material issues for the entire
Group in the future, we recommend that the Toppan Groupidentify the spheres in which impacts occur for each material
issue and redefine the organizations to be covered in reporting.

Shinichiro Akasaka
KPMG AZSA Sustainability Co., Ltd.

Indicators in this Report Assured by an Independent Assurance Provider
Pages

19

Human Rights

20

21

Labor Practices

Indicators Assured by an Independent Assurance Provider
Number of female managerial and supervisory staff
Number of employees with disabilities; percentage of employees with disabilities
Number of retired employees; number of reemployed employees
Number of Recruits
Number of Employees
Reasons for Leaving
Average Annual Salary
Annual Paid Leave Used
Employees Taking Maternity or Childcare Leave
Number of employees who have resigned from the Company and registered to join the rehiring system for
employees who resign from the Company for the delivery and upbringing of children

22

Occupational Health and Safety

23

Number of employees who participated in the Toppan Business School
Number of employees who participated in basic, Company-wide education (via e-learning programs)
Number of employees who were deployed overseas under the trainee system to acquire practical training inoverseas business
Number of employees who participated in selective training on globalization

24

Number of Conduct Guidelines Promotion Leaders; ratio of female Leaders25

Number of employees who participated in training sessions for Conduct Guidelines Promotion Leaders
Number of employees who participated in training sessions on compliance with the Subcontract Law and the
Act Concerning Special Measures for Pass-on of Consumption Tax in Japan
Number of employees who participated in training (in group sessions or via the e-learning system) on export
controls under the Foreign Exchange and Foreign Trade Act in Japan

Fair Operating Practices

26

Number of business partners surveyed to verify the legality of lumber used for paper production

28

Consumer Issues

Number of employees who participated in training sessions for internal auditors
Results of audits conducted based on the Quality Assurance Guidelines for Food Packaging using the quality
audit checklist

34

Toppan’s Environmental Activities

Greenhouse gas emissions in fiscal 2012 and 201335

Environmental Management
Activities
Toppan’s Environmental Burden andEnvironmental Impact

36
37

Major Types of Environmental Burden by Business Field in Japan (INPUT/OUTPUT data)
CO2 Emissions

38
Eco-protection Activities
39

41

Environmental target values and results for fiscal 2013

Eco-creativity Activities

Total Waste Discharge and Final Landfill Waste Disposal
Recycling Rate and Material Recycling Rate
VOC and Toluene Emissions into the Atmosphere
Number of production sites that recorded noise or chemical-substance levels exceeding applicableregulatory standards
Number of complaints and inquiries from communities around Toppan sites
Chemical Substances Designated under the PRTR Law
Purification of Soil and Groundwater Pollution
Number of approved and registered environmentally friendly products; total sales of environment-related
businesses

Some data in the CSR Report 2014: Detailed Data posted on the Toppan website are also assured by the assurance provider.

42

TOPPAN CSR REPORT 2014

Independent Assurance Report

TOPPAN CSR REPORT 201443

Group Business Structure

Customers
Toppan Group Structure
Manufacturing Companies

Toppan Graphic Communications
Co., Ltd.
8 other companies
Toppan Forms Central Products
Co., Ltd.
11 other companies
T.F. Co., Ltd.

9 other companies∗Data Products Toppan Forms
Ltd.
7 other companies

Manufacturing Companies
Toppan Packaging Products
Co., Ltd.

Manufacturing and Sales
Companies

Total Media Development InstituteCo., Ltd.

Tosho Printing Co., Ltd.
2 other companies

Toppan Travel Service Corp.

Toppan Printing Co. (America),
Inc.

Tokyo Shoseki Co., Ltd.
24 other companies

Toppan Printing Co., (H.K.) Ltd.
13 other companies∗Zhejiang Matsuoka Printing
Co., Ltd.
1 other company

Manufacturing and Sales
Companies
Toppan TDK Label Co., Ltd.

Living Environment 18%

Toppan Containers Co., Ltd.

Toppan Packs Co., Ltd.
5 other companies

Toppan Prosprint Co., Ltd.
1 other company

Toppan Yau Yue Paper ProductsLtd.
2 other companies∗Toyo Ink SC Holdings Co., Ltd.
1 other company

Manufacturing Companies

Manufacturing and Sales
Companies

Material Solutions 23%

Toppan Decor Products Inc.
5 other companies

Froebel-Kan Co., Ltd.

Toppan Forms Co., Ltd.

Toppan Plastic Co., Ltd.

Toppan Material Products
Co., Ltd.

Sales Companies

P.T. Indonesia Toppan Printing
10 other companies

Tamapoly Co., Ltd.
Toppan CFI (Taiwan) Co., Ltd.
Toppan Photomasks, Inc.

∗Toppan M&I Co., Ltd.
8 other companies

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

Information & Communication 59%

Toppan Communication Products
Co., Ltd.

Toppan Leefung Pte. Ltd.
24 other companies

Sales Companies
Toppan Cosmo, Inc.
Toppan Electronics (Taiwan)Co., Ltd.
1 other company

Toppan Interamerica Inc.
10 other companies∗Advanced Mask Technology
Center GmbH & Co. KG
4 other companies

Products
Materials
Service

Notes:
INo symbol: subsidiaries—154 companies *: affiliates—26 companies (as of the end of March 2014)
IThe composition ratios given under each business field are percentages of overall net sales contributed. (“Net Sales by Business Field” are shown on page 3.)
IToppan Forms Co., Ltd., Tosho Printing Co., Ltd., and Toyo Ink SC Holdings Co., Ltd. are listed on the first section of the Tokyo Stock Exchange.
IToppan operational sites span 13 countries and one region.

44

TOPPAN CSR REPORT 2014

http://www.toppan.co.jp/english/© TOPPAN 2014.10 K I Printed in Japan